Consolidated Balance Sheets

Index 2000 - A Year of Great Achievement Financial Highlights To our Shareholders Positioned for Growth Front-End Business New Store Growth Program CVS Procare CVS.com Community Involvement Store Count by State Management's Discussion and Analysis... Management's Responsibility for Financial Reporting Independent Auditor's Report Consolidated Statements of Operations Consolidated Balance Sheets Consolidated Statements of Shareholders' Equity Consolidated Statements of Cash Flows Notes to Consolidated Financial Statements.    Significant Accounting Policies    Borrowing and Credit Agreements    Leases    Employee Stock Ownership Plan    Stock Incentive Plans    Pension Plans and Other Postretirement Benefits    Income Taxes    Commitments & Contingencies    Business Segments    Business Combinations    Reconciliation of Earnings Per Common Share    Quarterly Financial Information (Unaudited) Five-Year Financial Summary Corporate Information

In millions, except shares and per share amounts	December 30, 2000	January 1, 2000
Assets:   Cash and cash equivalents   Accounts receivable, net   Inventories   Deferred income taxes   Other current assets	$    337.3 824.5 3,557.6 124.9 92.3	$    230.0 699.3 3,445.5 139.4 93.8
Total current assets   Property and equipment, net   Goodwill, net   Other assets	4,936.6 1,742.1 818.5 452.3	4,608.0 1,601.0 706.9 359.5
Total assets	$ 7,949.5	$ 7,275.4
Liabilities:   Accounts payable   Accrued expenses   Short-term borrowings   Current portion of long-term debt	$ 1,351.5 1,001.4 589.6 21.6	$ 1,454.2 967.4 451.0 17.3
Total current liabilities   Long-term debt   Deferred income taxes   Other long-term liabilities	2,964.1 536.8 28.0 116.0	2,889.9 558.5 27.2 120.1
Commitments and contingencies (Note 8)
Shareholders' equity: Preferred stock, $0.01 par value: authorized 120,619 shares; no shares issued or outstanding	-	-
Preference stock, series one ESOP convertible, par value $1.00: authorized 50,000,000 shares; issued   and outstanding 5,006,000 shares at December 30, 2000, and 5,164,000 shares at January 1, 2000	267.5	276.0
Common stock, par value $0.01: authorized 1,000,000,000 shares; issued 407,395,000 shares   at December 30, 2000, and 403,047,000 shares at January 1, 2000	4.1	4.0
Treasury stock, at cost: 15,073,000 shares at December 30, 2000, and 11,051,000 shares   at January 1, 2000	(404.9)	(258.5)
Guaranteed ESOP obligation Capital surplus Retained earnings	(240.6) 1,493.8 3,184.7	(257.0) 1,371.7 2,543.5
Total shareholders' equity	4,304.6	3,679.7
Total liabilities and shareholders' equity	$ 7,949.5	$ 7,275.4
See accompanying notes to consolidated financial statements.