CVS 2013 Annual Report Download - page 39

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2013 Annual Report
Proceeds from sale-leaseback transactions totaled $600 million in 2013. This compares to $529 million in 2012
and $592 million in 2011. Under the sale-leaseback transactions, the properties are generally sold at net book value,
which generally approximates fair value, and the resulting leases generally qualify and are accounted for as operating
leases. The specific timing and amount of future sale-leaseback transactions will vary depending on future market
conditions and other factors.
Below is a summary of our store development activity for the respective years:
2013 (2) 2012 (2) 2011(2)
Total stores (beginning of year)
7,508 7,388 7,248
New and acquired stores (1)
213 150 162
Closed stores (1)
(19) (30) (22)
Total stores (end of year)
7,702 7,508 7,388
Relocated stores
78 90 86
(1) Relocated stores are not included in new or closed store totals.
(2) Excludes specialty mail order facilities.
Net cash used in financing activities was approximately $1.2 billion in 2013, compared to net cash used in financing
activities of $4.9 billion in 2012 and $3.5 billion in 2011. Net cash used in financing activities decreased $3.7 billion
in 2013 primarily due to greater net borrowings than in the prior year. Net cash used in financing activities increased
$1.4 billion in 2012 primarily due to $1.3 billion more repurchases of common stock than in the prior year.
Share repurchase programs – On December 17, 2013, the Company’s Board of Directors authorized a new share
repurchase program for up to $6.0 billion of outstanding common stock (the “2013 Repurchase Program”). On
September 19, 2012, the Company’s Board of Directors authorized a share repurchase program for up to $6.0 billion
of outstanding common stock (the “2012 Repurchase Program”). Each of these share repurchase authorizations,
which were effective immediately, permit the Company to effect repurchases from time to time through a combination
of open market repurchases, privately negotiated transactions, accelerated share repurchase transactions, and/or
other derivative transactions. The 2013 and 2012 Repurchase Programs may be modified or terminated by the
Board of Directors at any time.
On August 23, 2011, our Board of Directors authorized a share repurchase program for up to $4.0 billion of outstand-
ing common stock (the “2011 Repurchase Program”). This share repurchase authorization, which was effective
immediately, permitted us to effect repurchases from time to time through a combination of open market repurchases,
privately negotiated transactions, accelerated share repurchase transactions, and/or other derivative transactions. The
2011 Repurchase Program has been completed, as described below.
Pursuant to the authorization under the 2012 Repurchase Program, effective October 1, 2013, we entered into a
$1.7 billion fixed dollar accelerated share repurchase (“ASR”) agreement with Barclays Bank PLC (“Barclays”). Upon
payment of the $1.7 billion purchase price on October 1, 2013, we received a number of shares of our common stock
equal to 50% of the $1.7 billion notional amount of the ASR agreement or approximately 14.9 million shares at a price
of $56.88 per share. The Company received approximately 11.7 million shares of common stock on December 30, 2013
at an average price of $63.83 per share, representing the remaining 50% of the $1.7 billion notional amount of the ASR
agreement and thereby concluding the agreement. The total of 26.6 million shares of common stock delivered to the
Company by Barclays over the term of the October 2013 ASR agreement were placed into treasury stock.