CVS 2003 Annual Report Download - page 48

(46) CVS Corporation 2003 Annual Report
2003 2002 2001 2000 1999
In millions, except per share amounts (53 WEEKS)(52 WEEKS)(52 WEEKS)(52 WEEKS)(53 WEEKS)
STATEMENT OF OPERATIONS DATA:
Net sales $ 26,588.0 $ 24,181.5 $ 22,241.4 $ 20,087.5 $ 18,098.3
Gross margin(1) 6,863.0 6,068.8 5,691.0 5,361.7 4,861.4
Selling, general and
administrative expenses 5,097.7 4,552.3 4,256.3 3,761.6 3,488.0
Depreciation and amortization(2) 341.7 310.3 320.8 296.6 277.9
Merger, restructuring and other
nonrecurring charges and (gains) ——343.3 (19.2) —
To t a l operating expenses 5,439.4 4,862.6 4,920.4 4,039.0 3,725.9
Operating profit(3) 1,423.6 1,206.2 770.6 1,322.7 1,135.5
Interest expense, net 48.1 50.4 61.0 79.3 59.1
Income tax provision 528.2 439.2 296.4 497.4 441.3
Net earnings(4) $ 847.3 $ 716.6 $ 413.2 $ 746.0 $ 635.1
PER COMMON SHARE DATA:
Net earnings:(4)
Basic $ 2.11 $ 1.79 $ 1.02 $ 1.87 $ 1.59
Diluted 2.06 1.75 1.00 1.83 1.55
Cash dividends per common share 0.230 0.230 0.230 0.230 0.230
Five-Year Financial Summary
BALANCE SHEET AND OTHER DATA:
To t a l assets $ 10,543.1 $ 9,645.3 $ 8,636.3 $ 7,949.5 $ 7,275.4
Long-term debt 753.1 1,076.3 810.4 536.8 558.5
To t a l shareholders’ equity 6,021.8 5,197.0 4,566.9 4,304.6 3,679.7
Number of stores (at end of period) 4,179 4,087 4,191 4,133 4,098
(1) Gross margin includes the pre-tax effect of the following nonrecurring charges: (i) in 2001, $5.7 million ($3.6 million after-tax) related
to the markdown of certain inventory contained in the stores closing as part of the strategic restructuring, discussed in Note 11 to the
consolidated financial statements, to its net realizable value.
(2) As a result of adopting SFAS No. 142, “Goodwill and Other Intangible Assets,” at the beginning of 2002, the Company no longer
amortizes goodwill and other indefinite-lived intangible assets. Goodwill amortization totaled $31.4 million pre-tax ($28.2 million
after-tax) in 2001, $33.7 million pre-tax ($31.9 million after-tax) in 2000 and $38.9 million pre-tax ($38.1 million after-tax) in 1999.
(3) Operating profit includes the pre-tax effect of the charges discussed in Note (1) above and the following merger, restructuring and other
nonrecurring charges and gains: (i) in 2001, $346.8 million ($226.9 million after-tax) related to restructuring and asset impairment
costs associated with the strategic restructuring and the $3.5 million ($2.1 million after-tax) net nonrecurring gain resulting from the
net effect of the $50.3 million of settlement proceeds received from various lawsuits against certain manufacturers of brand name
prescription drugs and the Company’s contribution of $46.8 million of these settlement proceeds to the CVS Charitable Trust, Inc. to
fund future charitable giving, and (ii) in 2000, $19.2 million ($11.5 million after-tax) nonrecurring gain representing partial payment
of our share of the settlement proceeds from a class action lawsuit against certain manufacturers of brand name prescription drugs.
(4) Net earnings and net earnings per common share include the after-tax effect of the charges and gains discussed in Notes (1) and (3) above.
(46) CVS Corporation 2003 Annual Report