CVS 2012 Annual Report Download - page 70

Download and view the complete annual report

Please find page 70 of the 2012 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 92

  • 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
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92

CVS CAREMARK 2012 ANNUAL REPORT
68
Notes to Consolidated Financial Statements
7 Borrowing and Credit Agreements
The following table is a summary of the Company’s borrowings as of December 31:
In millions 2012 2011
Commercial paper $ 690 $ 750
4.875%฀senior฀notes฀due฀2014฀ ฀ ฀ ฀ ฀ ฀ 550 550
3.25%฀senior฀notes฀due฀2015฀ ฀ ฀ ฀ ฀ ฀ 550 550
6.125%฀senior฀notes฀due฀2016฀ ฀ ฀ ฀ ฀ ฀ 421 700
5.75%฀senior฀notes฀due฀2017฀ ฀ ฀ ฀ ฀ ฀ 1,310 1,750
6.6%฀senior฀notes฀due฀2019฀ ฀ ฀ ฀ ฀ ฀ 394 1,000
4.75%฀senior฀notes฀due฀2020฀ ฀ ฀ ฀ ฀ ฀ 450 450
4.125%฀senior฀notes฀due฀2021฀ ฀ ฀ ฀ ฀ ฀ 550 550
6.25%฀senior฀notes฀due฀2027฀ ฀ ฀ ฀ ฀ ฀ 1,000 1,000
Trust Preferred Securities — 50
6.125%฀senior฀notes฀due฀2039฀ ฀ ฀ ฀ ฀ ฀ 1,500 1,500
5.75%฀senior฀notes฀due฀2041฀ ฀ ฀ ฀ ฀ ฀ 950 950
Enhanced Capital Advantage Preferred Securities due 2062 (1)
41 42
2.75%฀senior฀notes฀due฀2022฀ ฀ ฀ ฀ ฀ ฀ 1,250 —
Mortgage notes payable 1 4
Capital lease obligations 171 168
9,828 10,014
Less:
Short-term debt (commercial paper) (690) (750)
Current portion of long-term debt (5) (56)
$ 9,133 $ 9,208
(1)฀฀The฀Enhanced฀Capital฀Advantage฀Preferred฀Securities฀(“ECAPS”)฀had฀a฀stated฀rate฀of฀interest฀of฀6.302%฀through฀June฀1,฀2012,฀at฀which฀time฀the฀rate฀
converted฀to฀a฀variable฀rate฀which฀was฀2.59%฀at฀December฀31,฀2012.
The Company had $690 million of commercial paper outstanding as of December 31, 2012. In connection with its
commercial paper program, the Company maintains a $1.0 billion, three-year unsecured back-up credit facility, which
expires on May 27, 2013, a $1.25 billion, four-year unsecured back-up credit facility, which expires on May 12, 2015, and a
$1.25 billion, five-year unsecured back-up credit facility, which expires on February 17, 2017. The credit facilities allow for
borrowings at various rates that are dependent, in part, on the Company’s public debt ratings and require the Company to
pay฀a฀weighted฀average฀quarterly฀facility฀fee฀of฀approximately฀0.05%,฀regardless฀of฀usage.฀As฀of฀December฀31,฀2012,฀there฀
were no borrowings outstanding under the back-up credit facilities. The weighted average interest rate for short-term debt
was฀0.35%฀as฀of฀December฀31,฀2012฀and฀0.37%฀as฀of฀December฀31,฀2011.
On฀November฀26,฀2012,฀the฀Company฀issued฀$1.25฀billion฀of฀2.75%฀unsecured฀senior฀notes฀due฀December฀1,฀2022฀(the฀
“2012 Notes”) for total proceeds of approximately $1.24 billion, net of discounts and underwriting fees. The 2012 Notes
pay interest semi-annually 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
2012 Notes were used for general corporate purposes and to repay certain corporate debt.
7