CVS 1998 Annual Report Download - page 24

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22
CVS Corporation
Years Ended December 31,
In millions, except per share amounts 1998 1997 1996
Net sales $15,273.6 $13,749.6 $11,831.6
Cost of goods sold, buying and warehousing costs 11,144.4 10,031.3 8,530.7
Gross margin 4,129.2 3,718.3 3,300.9
Selling, general and administrative expenses 2,949.0 2,776.0 2,490.8
Depreciation and amortization 249.7 238.2 205.4
Merger, restructuring and other nonrecurring charges 158.3 442.7 12.8
Total operating expenses 3,357.0 3,456.9 2,709.0
Operating profit 772.2 261.4 591.9
Gain on sale of securities —— (121.4)
Dividend income —— (5.6)
Interest expense, net 60.9 44.1 75.5
Other expense (income), net 60.9 44.1 (51.5)
Earnings from continuing operations before income taxes and extraordinary item 711.3 217.3 643.4
Income tax provision (314.9) (140.8) (271.0)
Earnings from continuing operations before extraordinary item 396.4 76.5 372.4
Discontinued operations:
Loss from operations, net of tax benefit of $31.0 —— (54.8)
Gain (loss) on disposal, net of tax (provision) benefit of $(12.4), $56.2 in
1997 and 1996, respectively and minority interest of $22.2 in 1996 —17.5 (109.4)
Earnings (loss) from discontinued operations —17.5 (164.2)
Earnings before extraordinary item 396.4 94.0 208.2
Extraordinary item, loss related to early retirement of
debt, net of income tax benefit of $11.4 —(17.1) —
Net earnings 396.4 76.9 208.2
Preference dividends, net of income tax benefit (13.6) (13.7) (14.5)
Net earnings available to common shareholders $ 382.8 $ 63.2 $ 193.7
Basic earnings per common share:
Earnings from continuing operations before extraordinary item $ 0.99 $ 0.17 $ 0.98
Earnings (loss) from discontinued operations —0.05 (0.45)
Extraordinary item, net of tax benefit —(0.05) —
Net earnings $ 0.99 $ 0.17 $ 0.53
Weighted average common shares outstanding 387.1 377.2 366.9
Diluted earnings per common share:
Earnings from continuing operations before extraordinary item $ 0.98 $ 0.16 $ 0.95
Earnings (loss) from discontinued operations —0.05 (0.43)
Extraordinary item, net of tax benefit —(0.05) —
Net earnings $ 0.98 $ 0.16 $ 0.52
Weighted average common shares outstanding 405.2 385.1 383.6
Dividends per common share $ 0.225 $ 0.220 $ 0.220
See accompanying notes to consolidated financial statements.
Consolidated Statements of Operations