Consolidated Statements of Shareholders' Equity

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

	Fiscal Year Ended
	Shares			Dollars
In millions	December 30, 2000	January 1, 2000	December 26, 1998	December 30, 2000	January 1, 2000	December 26, 1998
Preference stock:   Beginning of year	5.2	5.2	5.3	$    276.0	$    280.0	$    284.6
Conversion to common stock	(0.2)	-	(0.1)	(8.5)	(4.0)	(4.6)
End of year	5.0	5.2	5.2	267.5	276.0	280.0
Common stock:   Beginning of year	403.0	401.4	393.7	4.0	4.0	3.9
Stock options exercised and    awards under stock plans	4.4	1.0	7.5	0.1	-	0.1
Other	-	0.6	0.2	-	-	-
End of year	407.4	403.0	401.4	4.1	4.0	4.0
Treasury stock:   Beginning of year	(11.1)	(11.2)	(11.3)	(258.5)	(260.2)	(262.9)
Purchase of treasury shares	(4.7)	-	-	(163.2)	-	-
Conversion of preference stock	0.4	0.2	0.2	9.1	4.0	4.2
Other	0.3	(0.1)	(0.1)	7.7	(2.3)	(1.5)
End of year	(15.1)	(11.1)	(11.2)	(404.9)	(258.5)	(260.2)
Guaranteed ESOP obligation:   Beginning of year				(257.0)	(270.7)	(292.2)
Reduction of guaranteed ESOP obligation				16.4	13.7	21.5
End of year				(240.6)	(257.0)	(270.7)
Capital surplus:   Beginning of year				1,371.7	1,336.4	1,154.0
Conversion of preference stock				(0.7)	0.1	0.3
Stock options exercised and    awards under stock plans				120.1	31.3	176.2
Other				2.7	3.9	5.9
End of year				1,493.8	1,371.7	1,336.4
Retained earnings:   Beginning of year				2,543.5	2,021.1	1,739.1
Net earnings				746.0	635.1	384.5
Dividends:     Preference stock, net of income      tax benefit				(14.6)	(14.7)	(13.6)
Common stock				(90.2)	(90.0)	(88.9)
Immaterial pooling of interests				-	(8.0)	-
End of year				3,184.7	2,543.5	2,021.1
Total shareholders' equity				$ 4,304.6	$ 3,679.7	$ 3,110.6
See accompanying notes to consolidated financial statements.