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CVS Caremark Reports Record Results in Fourth Quarter and Fiscal 2009
Date:2/8/2010

6,046 (1) On December 23, 2008, the Company's Board of Directors approved a change in the Company's fiscal year end from the Saturday nearest December 31 of each year to December 31 of each year to better reflect the Company's position in the health care, rather than the retail, industry. As you review the Company's operating performance, please consider that the fourth quarter of 2009 and 2008 include 92 days and 95 days, respectively, and the fiscal years ended December 31, 2009 and 2008 include 365 days and 368 days, respectively. (2) Net revenues of the Pharmacy Services segment include approximately $1.7 billion and $1.6 billion of Retail co-payments for the fourth quarters ended December 31, 2009 and December 31, 2008, respectively. Net revenues of the Pharmacy Services segment include approximately $6.9 billion and $6.3 billion of Retail co-payments for the fiscal years ended December 31, 2009 and December 31, 2008, respectively. (3) Intersegment eliminations relate to two types of transactions: (i) Intersegment revenues that occur when Pharmacy Services segment customers use Retail Pharmacy segment stores to purchase covered products. When this occurs, both the Pharmacy Services and Retail Pharmacy segments record the revenue on a standalone basis and (ii) Intersegment revenues, gross profit and operating profit that occur when Pharmacy Services segment customers, through the Company's intersegment activities (such as the Maintenance Choice Program), elect to pick-up their maintenance prescriptions at Retail Pharmacy segment stores instead of receiving them through the mail. When this occurs, both the Pharmacy Services and Retail Pharmacy segments will record the revenue, gross profit and operating profit on a standalone b
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SOURCE CVS Caremark Corporation
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