Consolidated Statements of Cash Flows

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
In millions	December 30, 2000 (52 weeks)	January 1, 2000 (52 weeks)	December 26, 1998 (52 weeks)
Cash flows from operating activities:   Net earnings	$ 746.0	$ 635.1	$ 384.5
Adjustments required to reconcile net earnings to net cash     provided by operating activities:       Depreciation and amortization	296.6	277.9	249.7
Merger, restructuring and other nonrecurring charges	-	-	188.6
Deferred income taxes and other noncash items	43.8	124.8	80.6
Change in operating assets and liabilities, providing/(requiring) cash,     net of effects from acquisitions:       Accounts receivable, net	(86.7)	(48.9)	(197.9)
Inventories	(98.1)	(255.0)	(315.0)
Other current assets	7.0	(16.7)	(18.5)
Other assets	(50.1)	(97.9)	7.2
Accounts payable	(133.6)	166.8	52.6
Accrued expenses	59.6	(37.7)	(134.5)
Other long-term liabilities	(4.3)	(22.1)	(4.9)
Net cash provided by operating activities	780.2	726.3	292.4
Cash flows from investing activities:   Additions to property and equipment	(695.3)	(722.7)	(502.3)
Proceeds from sale-leaseback transactions	299.3	229.2	-
Acquisitions, net of cash	(263.3)	(101.1)	(133.6)
Proceeds from sale or disposal of assets	18.8	28.2	50.5
Net cash used in investing activities	(640.5)	(566.4)	(585.4)
Cash flows from financing activities:   Additions to (reductions in) short-term borrowings	138.7	(324.5)	304.6
Proceeds from exercise of stock options	97.8	20.4	121.1
(Reductions in) additions to long-term debt	(0.9)	298.1	(41.9)
Dividends paid	(104.8)	(104.7)	(102.5)
Purchase of treasury shares	(163.2)	-	-
Net cash (used in) provided by financing activities	(32.4)	(110.7)	281.3
Net increase (decrease) in cash and cash equivalents	107.3	49.2	(11.7)
Cash and cash equivalents at beginning of year	230.0	180.8	192.5
Cash and cash equivalents at end of year	$ 337.3	$ 230.0	$ 180.8
See accompanying notes to consolidated financial statements.