CVS 2010 Annual Report Download - page 64

Notes to Consolidated Financial Statements
5: BORROWING AND CREDIT AGREEMENTS
The following table is a summary of the Company’s borrowings as of December 31:
in millions 2010 2009
Commercial paper $ 300 $ 315
Floating rate notes due 2010 – 350
Floating rate notes due 2010 – 1,750
5.75% senior notes due 2011 800 800
Floating rate note due 2011 (1) 300 300
4.875% senior notes due 2014 550 550
3.250% senior notes due 2015 550 –
6.125% senior notes due 2016 700 700
5.75% senior notes due 2017 1,750 1,750
6.60% senior notes due 2019 1,000 1,000
4.75% senior notes due 2020 450 –
6.25% senior notes due 2027 1,000 1,000
6.125% note due 2039 1,500 1,500
6.302% Enhanced Capital Advantage Preferred Securities (2) 1,000 1,000
Mortgage notes payable 6 6
Capital lease obligations 151 154
10,057 11,175
Less:
Short-term debt (commercial paper) (300) (315)
Current portion of long-term debt (1,105) (2,104)
$ 8,652 $ 8,756
(1) As of December 31, 2010, the interest rate for the Company’s floating rate note due in 2011
was 1.663%.
(2) The Enhanced Capital Advantaged Preferred Securities (“ECAPS”) are due June 1, 2062, and
bear interest at 6.302% per year until June 1, 2012 at which time they will pay interest based
on a floating rate. The ECAPS pay interest semi-annually and may be redeemed at any time,
in whole or in part at a defined redemption price plus accrued interest.
In connection with its commercial paper program, the Company maintains a $1.4 billion, five-year unsecured back-up credit facility,
which expires on May 12, 2011, a $1.3 billion, five-year unsecured back-up credit facility, which expires on March 12, 2012, and a
$1.0 billion, three-year unsecured back-up credit facility which expires on May 27, 2013. 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, 2010, the Company had no outstanding borrowings against the back-up credit facilities.
The weighted average interest rate for short-term debt was 0.40% as of December 31, 2010 and 0.31% as of December 31, 2009.
On May 13, 2010, the Company issued $550 million of 3.25% unsecured senior notes due May 18, 2015 and issued $450 million
of 4.75% unsecured senior notes due May 18, 2020 (collectively, the “2010 Notes”) for total proceeds of $991 million, which was
net of discounts and underwriting fees. The 2010 Notes pay interest semiannually and may be redeemed, in whole at any time,
or in part from time to time, at the Company’s option at a defined redemption price plus accrued and unpaid interest to the
redemption date. The net proceeds of the 2010 Notes were used to repay a portion of the Company’s outstanding commercial
paper borrowings, certain other corporate debt and for general corporate purposes.
On March 10, 2009, the Company issued $1.0 billion of 6.60% unsecured senior notes due March 15, 2019 (the “March 2009
Notes”). The March 2009 Notes pay interest semi-annually and may be redeemed, in whole or in part, at a defined redemption
price plus accrued interest. The net proceeds were used to repay the bridge credit facility, a portion of the Company’s outstand-
ing commercial paper borrowings and for general corporate purposes.
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CVS Caremark 2010 Annual Report