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CVS Caremark Reports Record Results in Fourth Quarter and Year 2008
Date:2/19/2009

he fourth quarters of fiscal 2008 and 2007 include 368 days, 364 days, 95 days and 91 days, respectively.

(2) Effective September 1, 2007, we converted a number of the PharmaCare retail pharmacy network contracts to the Caremark retail pharmacy network contract structure, which resulted in those contracts being accounted for using the gross method. This change caused total net revenues to increase by approximately $1.8 billion and $1.0 billion during the fiscal years ended December 31, 2008 and December 29, 2007, respectively.

(3) The Comparable Financial Information combines the historical Pharmacy Services Segment results of CVS and Caremark assuming the Caremark Merger occurred at the beginning of each period presented. Accordingly, the comparable results include incremental depreciation and amortization expense resulting from the fixed and intangible assets recorded in connection with the Caremark Merger and exclude merger-related expenses and integration costs. The comparable financial information has been provided for illustrative purposes only and does not purport to be indicative of the actual results that would have been achieved by the combined business segment for the periods presented or that will be achieved by the combined business segment in the future.

(4) Merger and integration costs for the fiscal quarter ended December 31, 2008 primarily include severance, system integration and facility consolidation costs. Merger and integration costs for fiscal quarter ended December 29, 2007 primarily include severance and retention, system integration and facility consolidation costs. Merger and integration costs for the fiscal year ended December 31, 2008 primarily include severance and retention, system integration and facility consolidation costs. Merger and integration costs for the fiscal year ended December 29, 2007, primarily include $80.3 million of stock option expense associated with t
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SOURCE CVS Caremark Corporation
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