CVS 2011 Annual Report Download - page 80

Download and view the complete annual report

Please find page 80 of the 2011 CVS annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 84

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84

CVS CAREMARK 78 2011 ANNUAL REPORTCVS CAREMARK 78 2011 ANNUAL REPORT
Five-Year Financial Summary
in millions, except per share amounts 2011 (1) 2010 (1) 2009 (1) 2008 (1) 2007 (1) (2)
Statement of operations data:
Net revenues $ 107,100 $ 95,778 $ 98,215 $ 87,005 $ 76,078
Gross profit 20,561 20,219 20,358 18,272 16,098
Operating expenses 14,231 14,082 13,933 12,237 11,309
Operating profit 6,330 6,137 6,425 6,035 4,789
Interest expense, net 584 536 525 509 435
Income tax provision(3) 2,258 2,179 2,200 2,189 1,720
Income from continuing operations 3,488 3,422 3,700 3,337 2,634
Income (loss) from discontinued operations,
net of tax benefit(4) (31) 2 (4) (125) 3
Net income 3,457 3,424 3,696 3,212 2,637
Net loss attributable to noncontrolling interest
(5) 4 3 — — —
Preference dividends, net of income tax benefit — — — (14) (14)
Net income attributable to CVS Caremark $ 3,461 $ 3,427 $ 3,696 $ 3,198 $ 2,623
Per common share data:
Basic earnings per common share:
Income from continuing operations
attributable to CVS Caremark $ 2.61 $ 2.51 $ 2.58 $ 2.32 $ 1.97
Loss from discontinued operations
attributable to CVS Caremark (0.02) — — (0.09) —
Net income attributable to CVS Caremark $ 2.59 $ 2.51 $ 2.58 $ 2.23 $ 1.97
Diluted earnings per common share:
Income from continuing operations
attributable to CVS Caremark $ 2.59 $ 2.49 $ 2.55 $ 2.27 $ 1.92
Loss from discontinued operations
attributable to CVS Caremark (0.02) — — (0.09) —
Net income attributable to CVS Caremark $ 2.57 $ 2.49 $ 2.55 $ 2.18 $ 1.92
Cash dividends per common share $ 0.50000 $ 0.35000 $ 0.30500 $ 0.25800 $ 0.22875
Balance sheet and other data:
Total assets $ 64,543 $ 62,169 $ 61,641 $ 60,960 $ 54,722
Long-term debt $ 9,208 $ 8,652 $ 8,756 $ 8,057 $ 8,350
Total shareholders’ equity $ 38,051 $ 37,700 $ 35,768 $ 34,574 $ 31,322
Number of stores (at end of year) 7,388 7,248 7,095 6,997 6,301
(1) On December 23, 2008, our Board of Directors approved a change in our fiscal year-end from the Saturday nearest December 31 of each year to December 31 of each
year to better reflect our position in the health care, rather than the retail, industry. The fiscal year change was effective beginning with the fourth quarter of fiscal 2008. As
you review our operating performance, please consider that 2011, 2010 and 2009 include 365 days; fiscal 2008 includes 368 days, and fiscal 2007 includes 364 days.
(2) Effective March 22, 2007, Caremark Rx, Inc. was merged into a newly formed subsidiary of CVS Corporation, with Caremark Rx, L.L.C., continuing as the surviving entity
(the “Caremark Merger”). Following the Caremark Merger, the name of the Company was changed to “CVS Caremark Corporation.” By virtue of the Caremark Merger,
each issued and outstanding share of Caremark common stock, par value $0.001 per share, was converted into the right to receive 1.67 shares of CVS Caremark’s
common stock, par value $0.01 per share. Cash was paid in lieu of fractional shares.
(3) Income tax provision includes the effect of the following: (i) in 2010, the recognition of $47 million of previously unrecognized tax benefits, including interest, relating to the
expiration of various statutes of limitation and settlements with tax authorities and (ii) in 2009, the recognition of $167 million of previously unrecognized tax benefits,
including interest, relating to the expiration of various statutes of limitation and settlements with tax authorities.
(4) As discussed in Note 3 to the consolidated financial statements, the results of the Theracom business are presented as discontinued operations and have been excluded
from continuing operations for all periods presented.
In connection with certain business dispositions completed between 1991 and 1997, the Company retained guarantees on store lease obligations for a number of
former subsidiaries, including Linens ‘n Things which filed for bankruptcy in 2008. The Company’s income (loss) from discontinued operations includes lease-related
costs which the Company believes it will likely be required to satisfy pursuant to its Linens ‘n Things lease guarantees.
Below is a summary of the results of discontinued operations:
Fiscal Year
in millions 2011 2010 2009 2008 2007
Income from operations of TheraCom $ 18 $ 28 $ 13 $ 11 $ 5
Gain on disposal of TheraCom 53 — — — —
Loss on disposal of Linens ‘n Things (7) (24) (19) (214) —
Income tax benefit (provision) (95) (2) 2 78 (2)
Income (loss) from discontinued operations, net of tax $ (31) $ 2 $ (4) $ (125) $ 3
127087_Financial.indd 78 3/15/12 4:26 PM
(5) Represents the minority shareholders’ portion of the net loss from our majority owned subsidiary, Generation Health, Inc., acquired in the fourth quarter of 2009.