CVS 1999 Annual Report Download - page 39

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Income taxes paid were $354.5 million, $102.6 million and
$258.9 million for fiscal 1999, 1998 and 1997, respectively.
Based on historical pre-tax earnings, the Company believes
it is more likely than not that the deferred tax assets will
be realized.
Supplemental Information
Following are the components of property and equipment
included in the consolidated balance sheets as of the
respective balance sheet dates:
Following is a summary of the Company’s noncash
financing activities for the respective fiscal years:
Interest expense was $66.1 million, $69.7 million and
$59.1 million and interest income was $7.0 million, $8.8
million and $15.0 million in fiscal 1999, 1998 and 1997,
respectively. Interest paid totaled $69.0 million, $70.7
million and $58.4 million in fiscal 1999, 1998 and 1997,
respectively.
Commitments & Contingencies
In connection with certain business dispositions completed
between 1991 and 1997, the Company continues to guarantee
lease obligations for approximately 1,400 former stores.
The Company is indemnified for these obligations by the
respective purchasers. Assuming that each respective
purchaser became insolvent, an event which the Company
believes to be highly unlikely, management estimates that
it could settle these obligations for approximately $1.0
billion as of January 1, 2000.
In the opinion of management, the ultimate disposition of
these guarantees will not have a material adverse effect on
the Company’s consolidated financial condition, results of
operations or future cash flows.
As of January 1, 2000, the Company had outstanding
commitments to purchase $283.8 million of merchandise
inventory for use in the normal course of business. The
Company currently expects to satisfy these purchase
commitments by 2002.
The Company is also a defendant in various lawsuits
arising in the ordinary course of business. In the opinion
of management and the Company’s outside counsel, the
ultimate disposition of these lawsuits, exclusive of
potential insurance recoveries, will not have a material
adverse effect on the Company’s consolidated financial
condition, results of operations or future cash flows.
January 1, December 26,
In millions 2000 1998
Land $ 89.6 $ 91.0
Buildings and improvements 467.8 296.8
Fixtures and equipment 1,326.5 1,171.8
Leasehold improvements 518.5 477.4
Capital leases 2.2 2.8
2,404.6 2,039.8
Accumulated depreciation and
amortization (803.6) (688.6)
$ 1,601.0 $ 1,351.2
In millions 1999 1998 1997
Fair value of assets acquired $ —$ 62.2 $ —
Cash paid —62.2 —
Liabilities assumed $ —$— $—
Equity securities or notes
received from sale
of business $ —$ — $ 52.0
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