CVS 2013 Annual Report Download - page 72

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CVS Caremark
Notes to Consolidated Financial Statements
5 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”). On August 23, 2011, the Company’s Board of Directors authorized a share repurchase
program for up to $4.0 billion of outstanding common stock (the “2011 Repurchase Program”). On June 14, 2010,
our Board of Directors authorized a share repurchase program for up to $2.0 billion of outstanding common stock
(the “2010 Repurchase Program”). The share repurchase authorizations, each of which was effective immediately,
permitted 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. The
2011 and 2010 Repurchase Programs have been completed, as described below.
Pursuant to the authorization under the 2012 Repurchase Program, effective October 1, 2013, the Company 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, the Company received a number of shares of its
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.
Pursuant to the authorizations under the 2011 and 2012 Repurchase Programs, on September 19, 2012, the
Company entered into a $1.2 billion fixed dollar ASR agreement with Barclays. Upon payment of the $1.2 billion
purchase price on September 20, 2012, the Company received a number of shares of its common stock equal to
50% of the $1.2 billion notional amount of the ASR agreement or approximately 12.6 million shares at a price of
$47.71 per share. The Company received approximately 13.0 million shares of common stock on November 16, 2012
at an average price of $46.96 per share, representing the remaining 50% of the $1.2 billion notional amount of the
ASR agreement and thereby concluding the agreement. The total of 25.6 million shares of common stock delivered
to the Company by Barclays over the term of the September 2012 ASR agreement were placed into treasury stock.
Pursuant to the authorization under the 2011 Repurchase Program, on August 24, 2011, the Company entered into
a $1.0 billion fixed dollar ASR agreement with Barclays. The ASR agreement contained provisions that establish the
minimum and maximum number of shares to be repurchased during its term. Pursuant to the ASR agreement, on
August 25, 2011, the Company paid $1.0 billion to Barclays in exchange for Barclays delivering 20.3 million shares
of common stock to the Company. On September 16, 2011, upon establishment of the minimum number of shares