CVS 2008 Annual Report Download - page 57

2008 ANNUAL REPORT 53
BORROWING AND CREDIT AGREEMENTS
Following is a summary of the Company’s borrowings as of the
respective balance sheet dates:
Dec. 31, Dec. 29,
In millions 2008 2007
Commercial paper $ 2,544.1 $ 2,085.0
Bridge credit facility 500.0 –
4.0% senior notes due 2009 650.0 650.0
Floating rate notes due 2010(2) 350.0 –
Floating rate notes due 2010(2) 1,750.0 1,750.0
5.75% senior notes due 2011 800.0 800.0
4.875% senior notes due 2014 550.0 550.0
6.125% senior notes due 2016 700.0 700.0
5.75% senior notes due 2017 1,750.0 1,750.0
6.25% senior notes due 2027 1,000.0 1,000.0
8.52% ESOP notes due 2008(1) – 44.5
6.302% Enhanced Capital Advantage
Preferred Securities 1,000.0 1,000.0
Mortgage notes payable 7.1 7.3
Capital lease obligations 153.4 145.1
11,754.6 10,481.9
Less:
Short-term debt (3,044.1) (2,085.0)
Current portion of long-term debt (653.3) (47.2)
$ 8,057.2 $ 8,349.7
(1) See Note 8 for additional information about the Company’s ESOP.
(2) As of December 31, 2008, the weighted average interest rate for the
Company’s fl oating rate notes due in 2010 was 2.70%.
In connection with its commercial paper program, the Company
maintains a $675 million, fi ve-year unsecured back-up credit
facility, which expires on June 11, 2009, a $675 million, fi ve-year
unsecured back-up credit facility, which expires on June 2, 2010,
a $1.4 billion, fi ve-year unsecured back-up credit facility, which
expires on May 12, 2011 and a $1.3 billion, fi ve-year unsecured
back-up credit facility, which expires on March 12, 2012. On
September 12, 2008 the Company entered into a $1.2 billion
unsecured back-up credit facility, which expires on September
11, 2009, to serve as a bridge facility to fi nance a portion of the
Longs Acquisition. The credit facilities allow for borrowings at
various rates depending on the Company’s public debt ratings
and require the Company to pay a quarterly facility fee of 0.1%,
regardless of usage. As of December 31, 2008 the Company
had $500 million of borrowings outstanding against the bridge
facility at an interest rate of 1.72%. As of December 31, 2008,
the Company had no outstanding borrowings against the other
credit facilities. The weighted average interest rate for short-term
debt was 5.36% as of December 31, 2008 and 5.30% as of
December 29, 2007.
SHARE REPURCHASE PROGRAM
On May 7, 2008, the Company’s Board of Directors authorized
effective May 21, 2008, a share repurchase program for up to
$2.0 billion of outstanding common stock. The specifi c timing
and amount of repurchases will vary based on market conditions
and other factors. From May 21, 2008 through December 31,
2008, the Company repurchased 0.6 million shares of common
stock for $23.0 million. As a result of the Longs Acquisition, the
Company elected to delay the completion of its share repurchase
program. The Company currently intends to complete its share
repurchase program in the second half of 2009.
On May 9, 2007, the Board of Directors of the Company autho-
rized a share repurchase program for up to $5.0 billion of our
outstanding common stock. The share repurchase program
was completed during 2007 through a $2.5 billion fi xed dollar
accelerated share repurchase agreement (the “May ASR
agreement”), under which fi nal settlement occurred in October
2007 and resulted in the repurchase of 67.5 million shares of
common stock; an open market repurchase program, which
concluded in November 2007 and resulted in 5.3 million shares
of common stock being repurchased for $211.9 million; and a
$2.3 billion dollar fi xed accelerated share repurchase agreement
(the “November ASR agreement”), which resulted in an initial
51.6 million shares of common stock being purchased and
placed into treasury stock as of December 29, 2007. The fi nal
settlement under the November ASR agreement occurred
on March 28, 2008 and resulted in the Company receiving
an additional 5.7 million shares of common stock, which were
placed into treasury stock as of March 29, 2008.
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