1.0.0.3 false Summary of Significant Accounting Policies false 1 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 USDEPS Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 2 Summary of Significant Accounting Policies [Abstract] 0 mhs_SummaryOfSignificantAccountingPoliciesAbstract mhs false na duration string Summary of Significant Accounting Policies Footnote Disclosure false false false false false true false false false 1 false false 0 0 false false Summary of Significant Accounting Policies Footnote Disclosure false 3 Summary of Significant Accounting Policies 1 mhs_SummaryOfSignificantAccountingPolicies mhs false na duration string Represents disclosure of any changes in an accounting principle, including a change from one generally accepted accounting... false false false false false false false false false 1 false false 0 0 <div><div><h1 style="margin-top: 0in; margin-right: 0in; margin-bottom: 11.0pt; margin-left: 0in; text-indent: 0in; font-size: 11.0pt; font-family: 'Times New Roman','serif'; text-transform: uppercase; letter-spacing: -.15pt; font-weight: bold;"><a name="_AUC593c04f1dae64ae885069eafa49d396d"></a><a name="_Toc96255583">2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</a></h1> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: .25in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-autospace: none;">Recently Adopted Financial Accounting Standards.   Subsequent Events. In May 2009, the Financial Accounting Standards Board (“FASB”) issued a standard, which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued or are available to be issued. It requires the disclosure of the date through which an entity has evaluated subsequent events and the basis for that date; that is, whether that date represents the date the financial statements were issued or were available to be issued. The standard was effective for interim or annual financial periods ending after June 15, 2009. The Company adopted the standard in the second quarter of 2009. The Company has evaluated subsequent events through February 23, 2010, the filing date of this Annual Report on Form 10-K. The Company’s adoption of the standard did not have a material impact on its audited consolidated financial statements included in this Annual Report on Form 10-K. <p class="MsoListParagraph" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; text-indent: .25in; text-autospace: none;">  <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">Accounting for Defensive Intangible Assets. In November 2008, Authoritative Guidance was issued, which applies to all acquired intangible assets in situations in which the acquirer does not intend to actively use the asset but intends to hold the asset to prevent its competitors from obtaining access to the asset (a defensive intangible asset). The standard is effective prospectively for intangible assets acquired on or after the beginning of the first annual reporting period beginning on or after December 15, 2008. Earlier application is not permitted. The Company’s adoption of the standard in 2009 did not have an impact on its audited consolidated financial statements included in this Annual Report on Form 10-K.   <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">Determination of the Useful Life of Intangible Assets. In April 2008, the FASB issued a standard, which amends the factors that should be considered in developing renewal or extension assumptions used to determine the useful life of a recognized intangible asset and requires additional disclosure. The standard applies to all intangible assets, whether acquired in a business combination or otherwise, and is effective for financial statements issued for fiscal years beginning after December 15, 2008, and interim periods within those fiscal years. The guidance for determining the useful life of intangible assets is applied prospectively to intangible assets acquired after the effective date. The disclosure requirements apply prospectively to all intangible assets recognized as of, and subsequent to, the effective date. The Company’s adoption of this standard in 2009 did not have a material impact on its audited consolidated financial statements included in this Annual Report on Form 10-K. For additional disclosures required under this standard, see Note 7, “Goodwill and Intangible Assets.”   Disclosures about Derivative Instruments and Hedging Activities. In March 2008, the FASB issued a standard, which requires qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of gains and losses on derivative instruments and disclosures about credit-risk-related contingent features in derivative instruments.  The standard is intended to improve financial reporting relating to derivative instruments and hedging activities by requiring enhanced disclosures to enable investors to better understand their effects on an entity’s financial position, financial performance, and cash flows. The standard is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008.   Our derivatives consist of interest rate swap agreements on $200 million of the $500 million in 7.25% senior notes due in 2013. These swap agreements were entered into as an effective hedge to (i) convert a portion of the senior note fixed rate debt into floating rate debt; (ii) maintain a capital structure containing appropriate amounts of fixed and floating rate debt; and (iii) lower the interest expense on these notes in the near term.  The Company does not expect its future cash flows to be affected to any significant degree by a sudden change in market interest rates. For more information, see Note 4, “Fair Value Disclosures,” and Note 8, “Debt.”  The Company’s adoption of the standard in 2009 did not have a material impact on its audited consolidated financial statements included in this Annual Report on Form 10-K.  Additional disclosures required under the standard are included above. <p class="MsoListParagraphCxSpFirst" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; text-indent: .25in; text-autospace: none;">  <p class="MsoListParagraphCxSpLast" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; text-indent: .25in; text-autospace: none;">Business Combinations. In December 2007, the FASB issued a standard, which is intended to improve, simplify, and converge internationally the accounting for business combinations and the reporting of noncontrolling interests in consolidated financial statements. The standard requires the acquiring entity in a business combination to measure and recognize all the assets acquired and liabilities assumed in the transaction; establishes the acquisition-date fair value as the measurement objective for all assets acquired and liabilities assumed; and requires the acquirer to disclose to investors and other users the information they need to evaluate and understand the nature and financial effect of the business combination. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2008. The standard applies prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008. In April 2009, the FASB issued additional guidance, which amends and clarifies the standard to address application issues, subsequent measurement and accounting, and disclosure of assets and liabilities arising from contingencies in a business combination. The guidance is effective for acquisition dates on or after the beginning of the first annual reporting period beginning on or after December 15, 2008. The Company’s adoption of the standard did not have an impact on its audited consolidated financial statements included in this Annual Report on Form 10-K.   <p class="MsoListParagraphCxSpFirst" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; text-indent: .25in; text-autospace: none;">Noncontrolling Interests in Consolidated Financial Statements. In December 2007, the FASB issued a standard, which is designed to improve the relevance, comparability, and transparency of financial information provided to investors by requiring all entities to report noncontrolling (minority) interests in subsidiaries in the same way—as equity in the consolidated financial statements. Moreover, the standard eliminates the diversity that existed in accounting for transactions between an entity and noncontrolling interests by requiring that they be treated as equity transactions. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2008.  In addition, the standard must be applied prospectively as of the beginning of the fiscal year in which it is initially applied, except for the presentation and disclosure requirements. The Company’s adoption of the standard did not have an impact on its audited consolidated financial statements included in this Annual Report on Form 10-K.   Interim Disclosures about Fair Value of Financial Instruments. In April 2009, the FASB issued a standard, which enhances consistency in financial reporting by increasing the frequency of fair value disclosures. This standard is effective for interim and annual periods ending after June 15, 2009. The Company’s adoption of this standard in the second quarter of 2009 did not have a material impact on its audited consolidated financial statements included in this Annual Report on Form 10-K. For additional disclosures required under this standard, see Note 4, “Fair Value Disclosures.”   Employers’ Disclosures about Postretirement Benefit Plan Assets. In December 2008, the FASB issued a standard, which provides guidance on an employer’s disclosures about plan assets of a defined benefit pension or other postretirement plan.  The Company adopted the disclosures about plan assets required by the standard prospectively for the fiscal year ended December 26, 2009. See Note 9, “Pension and Other Postretirement Benefits,” for more information. The adoption of the standard did not have a material impact on the Company’s audited consolidated financial statements.   Fiscal Years. The Company’s fiscal years ended on the last Saturday in December. Fiscal years 2009, 2008 and 2007 each are comprised of 52 weeks. Unless otherwise stated, references to years in the consolidated financial statements relate to fiscal years.   <a name="OLE_LINK44"></a><a name="OLE_LINK29">Principles of Consolidation</a>. The consolidated financial statements include the accounts of the Company and all of its subsidiaries. Investments in affiliates over which the Company has significant influence, but neither a controlling interest nor a majority interest in the risks or rewards of the investee, are accounted for using the equity method. The Company’s equity investments are not significant. Intercompany accounts have been eliminated in consolidation.   Cash and Cash Equivalents. Cash includes currency on hand and time deposits with banks or other financial institutions. Cash equivalents represent money market mutual funds, a form of highly liquid investments with original maturities of less than three months. As a result of the Company’s normal payment cycle, cash disbursement accounts representing outstanding checks not yet presented for payment of $1,594.2 million and $1,411.1 million are included in claims and other accounts payable, and client rebates and guarantees payable at December 26, 2009 and December 27, 2008, respectively, including certain amounts reclassified from cash. No overdraft or unsecured short-term loan exists in relation to these negative balances.   <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;"><a name="OLE_LINK53"></a><a name="OLE_LINK22">Long-Term and Short-Term Investments</a>. The Company holds long-term and short-term investments in U.S. government securities to satisfy the statutory capital requirements for the Company’s insurance subsidiaries. The majority of these long-term and short-term investments are classified as held-to-maturity securities and reported at amortized cost. The Company has no exposure to or investments in any instruments associated with the sub-prime loan market. <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">  <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">Fair Value Measurements and Fair Value of Financial Instruments. The Company accounts for and reports the fair value of certain assets and liabilities in accordance with FASB standards. See Note 4, “Fair Value Disclosures,” for more information. <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">  <p class="MsoBodyText" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 11.0pt; font-family: 'Times New Roman','serif'; margin: 0in; color: black; text-indent: .25in;">Accounts Receivable. The Company separately reports accounts receivable due from manufacturers and accounts receivable due from clients. Manufacturer accounts receivable, net, includes billed and estimated unbilled receivables from manufacturers for earned rebates and other prescription services. Unbilled rebates receivable from manufacturers are generally billed beginning 20 days from the end of each quarter.   <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">Client accounts receivable, net, includes billed and estimated unbilled receivables from clients for the PBM and Specialty Pharmacy segments. Unbilled PBM receivables are primarily from clients and are typically billed within 14 days based on the contractual billing schedule agreed upon with each client. At the end of any given reporting period, unbilled PBM receivables from clients may represent up to two weeks of dispensing activity and will fluctuate at the end of a fiscal month depending on the timing of these billing cycles. Client accounts receivable, net, also includes a reduction for rebates and guarantees payable to clients when such are settled on a net basis in the form of an invoice credit. In cases where rebates and guarantees are settled with the client on a net basis, and the rebates and guarantees payable are greater than the corresponding client accounts receivable balances, the net liability is reclassified to client rebates and guarantees payable on the consolidated balance sheets. When these payables are settled in the form of a check or wire, they are recorded on a gross basis and the entire liability is reflected in client rebates and guarantees payable on the consolidated balance sheets. The Company’s client accounts receivable also includes receivables from CMS for the Company’s Medicare Part D Prescription Drug Program (“Medicare Part D”) product offerings and premiums from members. A component of the PBM business includes diabetes supplies dispensed by PolyMedica with the associated receivables primarily reimbursed from insurance companies and government agencies. As a result, this component of the PBM business experiences slower accounts receivable turnover.   <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">As of December 26, 2009 and December 27, 2008, identified net Specialty Pharmacy accounts receivable, primarily due from payors and patients, amounted to $483.1 million and $476.4 million, respectively. A portion of the Specialty Pharmacy business includes reimbursement by payors, such as insurance companies, under a medical benefit, or by Medicare or Medicaid. These transactions also involve higher patient co-payments than experienced in the PBM business. As a result, this portion of the Specialty Pharmacy business, which yields a higher margin than the PBM business, experiences slower accounts receivable turnover than in the aforementioned PBM cycle and has a different credit risk profile. See Note 13, “Segment and Geographic Data,” for more information on the Specialty Pharmacy segment. <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">  <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">The Company’s allowance for doubtful accounts as of December 26, 2009 and December 27, 2008 of $133.3 million and $120.0 million, respectively, includes $86.1 million and $71.9 million, respectively, related to the Specialty Pharmacy segment. The relatively higher allowance for the Specialty Pharmacy segment reflects a different credit risk profile than the PBM business, and is characterized by reimbursement through medical coverage, including government agencies, and higher patient co-payments. The Company’s allowance for doubtful accounts as of December 26, 2009 and December 27, 2008 also includes $37.4 million and $34.6 million, respectively, related to PolyMedica for diabetes supplies, which are primarily reimbursed by insurance companies and government agencies. In addition, the Company’s allowance for doubtful accounts also reflects amounts associated with member premiums for the Company’s Medicare Part D product offerings. The Company regularly reviews and analyzes the adequacy of the allowances based on a variety of factors, including the age of the outstanding receivable and the collection history. When circumstances related to specific collection patterns change, estimates of the recoverability of receivables are adjusted. The increase in the reserve balance reflects increased coverage of aged balances.   <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">Concentrations of Risks. In 2009, 2008 and 2007, the Company had one client that represented 19%, 21% and 22% of net revenues, respectively. The client has a strong investment grade rating and has consistently paid their receivable balance within the contracted payment terms. None of the Company’s other clients individually represented more than 10% of net revenues or net client accounts receivable in 2009, 2008 or 2007. <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">  <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">The Company has credit risk associated with certain accounts receivable, which consists of amounts owed by various governmental agencies, insurance companies and private patients. The Company has clients in various industries, including the automobile manufacturer industry and the financial industry, as well as governmental agencies. The Company actively monitors the status of its accounts receivable and has mechanisms in place to minimize the potential for incurring material accounts receivable credit risk. Concentration of credit risk relating to these accounts receivable, excluding the largest client noted above, is limited by the diversity and number of patients and payors. <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">  <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">As of December 26, 2009 and December 27, 2008, two brand-name pharmaceutical manufacturers represented approximately 41% and 30% of manufacturer accounts receivable, net, respectively. Both manufacturers have strong investment grade ratings and have consistently paid their receivable balance within the contracted payment terms. To date, the Company has not experienced any significant deterioration in its client or manufacturer accounts receivables. <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">  <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">The Company purchases its pharmaceuticals either from its primary wholesaler, AmerisourceBergen Corp., which accounted for approximately 62% of both the Company’s overall 2009 and 2008 drug purchases, respectively, or directly from pharmaceutical manufacturers. Most of the purchases from the Company’s primary wholesaler were for brand-name medicines. The Company believes that alternative sources of supply for most generic and brand-name pharmaceuticals are readily available, except to the extent that brand-name drugs are available to the market exclusively through the manufacturer. <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">  <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">The Company derives a substantial percentage of its Specialty Pharmacy segment revenue and profitability from its relationships with a limited number of suppliers. Specialty and generic pharmaceuticals are generally purchased directly from manufacturers. <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">  Inventories, Net. Inventories, net, are located in the Company’s mail-order pharmacies and in warehouses, consist solely of finished product (primarily prescription drugs), and are valued at the lower of first-in, first-out (FIFO) cost or market.   <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">Property and Equipment, Net. Property and equipment, net, is stated at cost, less accumulated depreciation and amortization. Depreciation is calculated using the straight-line method for assets with useful lives as follows:  buildings, 45 years; machinery, equipment and office furnishings, three to 15 years; and computer software, three to five years. Leasehold improvements are amortized over the shorter of the remaining life of the lease or the useful lives of the assets. In accordance with Authoritative Guidance on accounting for the costs of computer software developed or obtained for internal use, certain costs of computer software developed or obtained for internal use are capitalized and amortized on a straight-line basis over three to five years. Costs for general and administrative expenses, overhead, maintenance and training, as well as the cost of software coding that does not add functionality to existing systems, are expensed as incurred.   <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">Net Revenues. Product net revenues consist principally of sales of prescription drugs to clients and members, either through the Company’s networks of contractually affiliated retail pharmacies or through the Company’s mail-order pharmacies. The majority of the Company’s product net revenues are derived on a fee-for-service basis. The Company’sproduct net revenues also include revenues from the sale of diabetes supplies by PolyMedica.  Specialty pharmacy product net revenues represent revenues from the sale of primarily biopharmaceutical drugs and are reported at the net amount billed to third-party payors and patients. The Company recognizes product revenues when the prescriptions are dispensed through retail pharmacies in the Company’s networks of contractually affiliated retail pharmacies or the Company’s mail-order pharmacies and received by members and patients. The Company evaluates client contracts using the indicators of Authoritative Guidance to determine whether the Company acts as a principal or as an agent in the fulfillment of prescriptions through the retail pharmacy network. The Company acts as a principal in most of its transactions with clients and revenues are recognized at the prescription price (ingredient cost plus dispensing fee) negotiated with clients, including the portion of the price allocated by the client to be settled directly by the member (co-payment), as well as the Company’s administrative fees (“Gross Reporting”). Gross reporting is appropriate because the Company (a) has separate contractual relationships with clients and with pharmacies, (b) is responsible to validate and economically manage a claim through its claims adjudication process, (c) commits to set prescription prices for the pharmacy, including instructing the pharmacy as to how that price is to be settled (co-payment requirements), (d) manages the overall prescription drug relationship with the patients, who are members of clients’ plans, and (e) has credit risk for the price due from the client. In limited instances where the Company adjudicates prescriptions at pharmacies that are under contract directly with the client and there are no financial risks to the Company, such revenue is recorded at the amount of the administrative fee earned by the Company for processing the claim (“Net Reporting”).   <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">The Company’s product net revenues also include premiums associated with the Company’s Medicare PDP risk-based product offerings. These products involve prescription dispensing for beneficiaries enrolled in the CMS-sponsored Medicare Part D prescription drug benefit. The Company’s two insurance company subsidiaries have been operating under contracts with CMS since 2006, and currently offer several Medicare PDP options.  The products involve underwriting the benefit, charging enrollees applicable premiums, providing covered prescription drugs and administering the benefit as filed with CMS.  The Company provides three Medicare drug benefit plan options for beneficiaries, including (i) a "standard Part D" benefit plan as mandated by statute, and (ii) two benefit plans with enhanced coverage, that exceed the standard Part D benefit plan, available for an additional premium. The Company also offers numerous customized benefit plan designs to employer group retiree plans under the Medicare Part D prescription drug benefit. <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">  <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">The PDP premiums are determined based on the Company’s annual bid and related contractual arrangements with CMS. The PDP premiums are primarily comprised of amounts received from CMS as part of a direct subsidy and an additional subsidy from CMS for low-income member premiums, as well as premium payments received from members. These premiums are recognized ratably to product net revenues over the period in which members are entitled to receive benefits. Premiums received in advance of the applicable benefit period are deferred and recorded in accrued expenses and other current liabilities on the consolidated balance sheets. There is a possibility that the annual costs of drugs may be higher or lower than premium revenues. As a result, CMS provides a risk corridor adjustment for the standard drug benefit that compares the Company’s actual annual drug costs incurred to the targeted premiums in the Company’s CMS-approved bid. Based on specific collars in the risk corridor, the Company will receive from CMS additional premium amounts or be required to refund to CMS previously received premium amounts. The Company calculates the risk corridor adjustment on a quarterly basis based on drug cost experience to date and records an adjustment to product net revenues with a corresponding account receivable from or payable to CMS reflected on the consolidated balance sheets.   <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">In addition to premiums, there are certain co-payments and deductibles (the “cost share”) due by members based on prescription orders by those members, some of which are subsidized by CMS in cases of low-income membership. For subsidies received in advance, the amount is deferred and recorded in accrued expenses and other current liabilities on the consolidated balance sheets. If there is cost share due from members or CMS, the amount is accrued and recorded in client accounts receivable, net, on the consolidated balance sheets.  After the end of the contract year and based on actual annual drug costs incurred, cost share amounts are reconciled with CMS and the corresponding receivable or payable is settled.The cost share is treated consistently as other co-payments derived from providing PBM services, as a component of product net revenues on the consolidated statements of income where the requirements of Authoritative Guidance are met. Premium revenues for our PDP products, which exclude member cost share, were $543 million, or less than 1% of total net revenues, in 2009, $317 million, or less than 1% of total net revenues, in 2008, and $255 million, or less than 1% of total net revenues, in 2007. <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">  The Company’s agreements with CMS, as well as applicable Medicare Part D regulations and federal and state laws, require the Company to, among other obligations: (i) comply with certain disclosure, filing, record-keeping and marketing rules; (ii) operate quality assurance, drug utilization management and medication therapy management programs; (iii) support e-prescribing initiatives; (iv) implement grievance, appeals and formulary exception processes; (v) comply with payment protocols, which include the return of overpayments to CMS and, in certain circumstances, coordination with state pharmacy assistance programs; (vi) use approved networks and formularies, and provide access to such networks to any willing pharmacy; (vii) provide emergency out-of-network coverage; and (viii) adopt a comprehensive Medicare and Fraud, Waste and Abuse compliance program. The Company has various contractual and regulatory compliance requirements associated with participating in Medicare Part D. Similar to the Company’s requirements with other clients, the Company’s policies and practices associated with executing its PDP are subject to audit. If material contractual or regulatory non-compliance was to be identified, monetary penalties and/or applicable sanctions, including suspension of enrollment and marketing or debarment from participation in Medicare programs, may be imposed. Additionally, each calendar year, payment will vary based on the annual benchmark that applies as a result of Medicare Part D plan bids for the applicable year, as well as for changes in the CMS methodology for calculating risk adjustment factors.   <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">Rebates and guarantees regarding the level of service the Company will provide to the client or member or the minimum level of rebates or discounts the client will receive are deducted from product net revenues as they are earned by the client. Rebates are generally credited or paid to clients subsequent to collections from pharmaceutical manufacturers, although there are certain instances where rebates are paid to clients on a more accelerated basis. Other contractual payments made to clients are generally made upon initiation of contracts as implementation allowances, which may, for example, be designated by clients as funding for their costs to transition their plans to the Company. The Company considers these payments to be an integral part of the Company’s pricing of a contract and believes that they represent variability in the timing of cash flows that does not change the underlying economics of the contract. Accordingly, these payments are capitalized and amortized as a reduction of product net revenues, generally on a straight-line basis, over the life of the contract where the payments are refundable upon cancellation of the contract or relate to noncancelable contracts. Amounts capitalized are assessed periodically for recoverability based on the profitability of the contract. <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">  <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">Service revenues consist principally of administrative fees and clinical program fees earned from clients, sales of prescription services to pharmaceutical manufacturers, performance-oriented fees paid by Specialty Pharmacy manufacturers, and other non-product-related revenues. Service revenues are recorded by the Company when performance occurs and collectibility is assured.   <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">Cost of Revenues. Cost of product net revenues includes the cost of inventory dispensed from the mail-order pharmacies, along with direct dispensing costs and associated depreciation. Cost of product net revenues also includes ingredient costs of drugs dispensed by and professional fees paid to retail network pharmacies. In addition, cost of product net revenues includes the operating costs of the Company’s call center pharmacies, which primarily respond to member and retail pharmacist inquiries regarding member prescriptions, as well as physician calls. Cost of product net revenues also includes an offsetting credit for rebates earned from pharmaceutical manufacturers whose drugs are included on the Company’s preferred drug lists, which are also known as formularies. Rebates receivable from pharmaceutical manufacturers are accrued in the period earned by multiplying estimated rebatable prescription drugs dispensed through the Company’s retail networks and through the Company’s mail-order pharmacies by the contractually agreed manufacturer rebate amount.   <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">Rebates receivable estimates are revised to actual, with the difference recorded to cost of revenues, upon billing to the manufacturer, generally 20 to 90 days subsequent to the end of the applicable quarter. These bills are not issued until the necessary specific eligible claims and third-party market share data are received and thoroughly analyzed. Historically, the effect of adjustments resulting from the reconciliation of rebates recognized and recorded to actual amounts billed has not been material to the Company’s results of operations.   <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">The Company’s cost of product net revenues also includes the cost of drugs dispensed by the Company’s mail-order pharmacies or retail networks for members covered under the Company’s Medicare PDP product offerings and are recorded at cost as incurred. The Company receives a catastrophic reinsurance subsidy from CMS for approximately 80% of costs incurred by individual members in excess of the individual annual out-of-pocket maximum of $4,350 for coverage year 2009, $4,050 for coverage year 2008 and $3,850 for coverage year 2007. The subsidy is reflected as an offsetting credit in cost of product net revenues to the extent that catastrophic costs are incurred. Catastrophic reinsurance subsidy amounts received in advance are deferred and recorded in accrued expenses and other current liabilities on the consolidated balance sheets. If there are catastrophic reinsurance subsidies due from CMS, the amount is recorded in client accounts receivable, net, on the consolidated balance sheets. After the end of the contract year and based on actual annual drug costs incurred, catastrophic reinsurance amounts are reconciled with CMS and the corresponding receivable or payable is settled. Cost of service revenues consist principally of labor and operating costs for delivery of services provided, as well as costs associated with member communication materials. <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">  <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">Goodwill. Goodwill of $6,333.0 million at December 26, 2009 and $6,331.4 million at December 27, 2008 represents, for the PBM segment, the excess of acquisition costs over the fair value of the Company’s net assets that had been pushed down to the consolidated balance sheets of the Company and existed when the Company became an independent, publicly traded enterprise in 2003, and, to a significantly lesser extent, the Company’s acquisition of a majority interest in Europa Apotheek in 2008, and the acquisitions of PolyMedica in 2007 and ProVantage Health Services, Inc. in 2000. Goodwill also includes, for the Specialty Pharmacy segment, a portion of the excess of the purchase price the Company paid to acquire Accredo Health, Incorporated (“Accredo”) over the fair value of tangible net assets acquired, as well as, to a significantly lesser extent, the Company’s acquisition of Critical Care Systems, Inc. (“Critical Care”) in 2007, and the acquisition of selected assets of Pediatric Services of America, Inc. in 2005. See Note 3, “Acquisitions of Businesses,” for more information on the acquisition of a majority interest in Europa Apotheek, and the PolyMedica and Critical Care acquisitions. The Company’s goodwill balance is assessed for impairment annually using a two-step fair-value based test or whenever events or other changes in circumstances indicate the carrying amount may not be recoverable, by comparing the fair value of each segment’s reporting units to the carrying value of the assets and liabilities assigned to each reporting unit.  If the carrying value of the reporting unit were to exceed the Company’s estimate of the fair value of the reporting unit, the Company would then be required to estimate the fair value of the individual assets and liabilities within the reporting unit for purposes of calculating the fair value of goodwill. The Company would be required to record an impairment charge to the extent recorded goodwill exceeds the fair value amount of goodwill resulting from this allocation.  The most recent assessment for impairment of goodwill for each of the designated reporting units was performed as of September 26, 2009, and the goodwill was determined not to be impaired, and there have been no significant subsequent changes in events or circumstances. The Company utilized the income approach methodology, which projects future cash flows discounted to present value. Discount rates were based on the estimated weighted average cost of capital at the reporting unit level and ranged from 9% to 13%. In order to validate the reasonableness of the estimated fair values, the Company performed a reconciliation of the aggregate fair values of all reporting units to market capitalization as of the valuation date using a reasonable control premium. <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">  <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">Intangible Assets, Net. Intangible assets, net, of $2,428.8 million at December 26, 2009 and $2,666.4 million at December 27, 2008 for the PBM segment primarily represent the value of Medco’s client relationships that had been pushed down to the consolidated balance sheets of the Company and existed when the Company became an independent, publicly traded enterprise in 2003, and to a lesser extent, intangible assets recorded upon the Company’s acquisition of PolyMedica in 2007 and a majority stake in Europa Apotheek in 2008. Additionally, for the Specialty Pharmacy segment, intangible assets primarily include the portion of the excess of the purchase price paid by the Company to acquire Accredo in 2005 over tangible net assets acquired. The Company’s intangible assets are initially recorded at fair value at the acquisition date and subsequently carried at amortized cost. The Company reviews intangible assets for impairment whenever events, such as losses of significant clients or specialty product manufacturer contracts, or when other changes in circumstances indicate the carrying amount may not be recoverable. When these events occur, the carrying amount of the assets is compared to the pre-tax undiscounted expected future cash flows derived from the lowest appropriate asset grouping. If this comparison indicates impairment exists, the amount of the impairment would be calculated using discounted expected future cash flows. The Liberty trade name intangible asset was assigned an indefinite life at the time of our acquisition of PolyMedica in 2007.  Subsequently in 2008, management determined that the Liberty trade name intangible asset was no longer indefinite-lived and assigned a 35-year useful life. <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">  <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">Income Taxes. Deferred tax assets and liabilities are recorded based on temporary differences between the financial statement basis and the tax basis of assets and liabilities using presently enacted tax rates.   <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">On December 31, 2006, the first day of the Company’s 2007 fiscal year, the Company adopted the provisions of a new FASB standard, which clarifies the accounting for uncertainty in income taxes recognized in companies’ financial statements.  The standard prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The evaluation of a tax position in accordance with the standard is a two-step process. The first step is recognition to determine whether it is more likely than not that a tax position will be sustained upon examination. The second step is measurement whereby a tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. The standard also provides guidance on derecognition of recognized tax benefits, classification, interest and penalties, accounting in interim periods, disclosure and transition. As a result of the implementation of the FASB’s uncertainty in income taxes standard, the Company recognized a decrease of $43.4 million in the liability for income tax contingencies, including interest, no longer required under the more-likely-than-not accounting model, and a $29.3 million corresponding increase, net of federal income tax benefit, to the December 31, 2006 (the first day of fiscal year 2007) balance of retained earnings. In May 2007, the FASB issued additional guidance on how a company should determine whether a tax position is effectively settled for the purpose of recognizing previously unrecognized tax benefits. See Note 10, “Taxes on Income,” for more information. <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">  <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">Use of Estimates. The consolidated financial statements include certain amounts that are based on management’s best estimates and judgments. Estimates are used in determining such items as accruals for rebates receivable and payable, client guarantees, depreciable/useful lives, allowance for doubtful accounts, testing for impairment of goodwill and intangible assets, stock-based compensation, income taxes, pension and other postretirement benefit plan assumptions, amounts recorded for contingencies, and other reserves, as well as CMS-related activity, including the risk corridor adjustment and cost share and catastrophic reinsurance subsidies. Because of the uncertainty inherent in such estimates, actual results may differ from these estimates. <p class="MsoBodyText" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 11.0pt; font-family: 'Times New Roman','serif'; margin: 0in; color: black; text-indent: .25in;">  <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">Operating Segments. The Company has two reportable segments, PBM and Specialty Pharmacy. See Note 13, “Segment and Geographic Data,” for more information. The PBM and Specialty Pharmacy segments primarily operate in the United States and have limited activity in Puerto Rico, Germany and the United Kingdom. <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">  <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">Earnings per Share (“EPS”). Basic EPS is computed by dividing net income by the weighted average number of shares of common stock issued and outstanding during the reporting period. The Company treats stock options and restricted stock units granted by the Company as potential common shares outstanding in computing diluted earnings per share. Under the treasury stock method on a grant by grant basis, the amount the employee or director must pay for exercising the award, the amount of compensation cost for future service that the Company has not yet recognized, and the amount of tax benefit that would be recorded in additional paid-in capital when the award becomes deductible, are assumed to be used to repurchase shares at the average market price during the period. <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">  The Company granted options of 6.6 million shares in fiscal 2009, 5.1 million shares in fiscal 2008, and 7.1 million shares in fiscal 2007.  For the years ended December 26, 2009, December 27, 2008 and December 29, 2007, there were outstanding options to purchase 5.1 million, 5.6 million and 6.7 million shares of Medco stock, respectively, which were not dilutive to the EPS calculations when applying the treasury stock method. These outstanding options may be dilutive to future EPS calculations. <p class="MsoBodyText" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 11.0pt; font-family: 'Times New Roman','serif'; margin: 0in; color: black; text-indent: .25in;">  <p class="MsoBodyText" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 11.0pt; font-family: 'Times New Roman','serif'; margin: 0in; color: black; text-indent: .25in;">The following is a reconciliation of the number of weighted average shares used in the basic and diluted EPS calculations (amounts in millions): <div align="center"> <table class="MsoNormalTable" border="1" cellspacing="0" cellpadding="0" style="font-size: 10.0pt; font-family: 'Calibri','sans-serif'; border-collapse: separate; border: none;"> <tr> <td width="313" valign="top" style="width: 234.9pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   Fiscal Years </td> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoNormal" align="center" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: center; white-space: nowrap;">2009 </td> <td width="16" valign="bottom" style="width: 12.35pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoNormal" align="center" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: center; white-space: nowrap;">2008 </td> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; padding: 0in 5.4pt 0in 5.4pt;">   </td> <td colspan="3" valign="bottom" style="border-top: 0px; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoNormal" align="center" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: center; white-space: nowrap;">2007 </td> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; padding: 0in 5.4pt 0in 5.4pt;">   </td> <td style="border: none; padding: 0in 0in 0in 0in; border-top: 0px;" width="1">   </td> </tr> <tr> <td width="313" valign="bottom" style="width: 234.9pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> Basic weighted average shares outstanding............... </td> <td width="16" valign="bottom" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="67" valign="bottom" style="width: .7in; border: none; border-top: 0px; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoBodyTextIndent" align="left" style="margin-top: 0in; margin-right: .6pt; margin-bottom: .0001pt; margin-left: 0px! important; font-size: 9.0pt; font-family: 'Courier New'; text-align: left; letter-spacing: -.15pt; white-space: nowrap;">481.1 </td> <td width="16" valign="bottom" style="width: 12.35pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="16" valign="bottom" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td colspan="2" valign="bottom" style="border: none; border-top: 0px; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoBodyTextIndent" align="left" style="margin-top: 0in; margin-right: .6pt; margin-bottom: .0001pt; margin-left: 0px! important; font-size: 9.0pt; font-family: 'Courier New'; text-align: left; letter-spacing: -.15pt; white-space: nowrap;">508.6 </td> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; padding: 0in 5.4pt 0in 5.4pt;">   </td> <td width="16" valign="bottom" style="width: 11.8pt; border: none; border-top: 0px; padding: 0in 5.4pt 0in 5.4pt;">   </td> <td colspan="2" valign="bottom" style="border: none; border-top: 0px; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoBodyTextIndent" align="left" style="margin-top: 0in; margin-right: .6pt; margin-bottom: .0001pt; margin-left: 0px! important; font-size: 9.0pt; font-family: 'Courier New'; text-align: left; letter-spacing: -.15pt; white-space: nowrap;">550.2 </td> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; padding: 0in 5.4pt 0in 5.4pt;">   </td> </tr> <tr> <td width="313" valign="bottom" style="width: 234.9pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> Dilutive common stock equivalents: </td> <td width="16" valign="top" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="67" valign="bottom" style="width: .7in; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> <p class="MsoBodyTextIndent" align="left" style="margin-top: 0in; margin-right: .6pt; margin-bottom: .0001pt; margin-left: 0px! important; font-size: 9.0pt; font-family: 'Courier New'; text-align: left; letter-spacing: -.15pt; white-space: nowrap;">  </td> <td width="16" valign="top" style="width: 12.35pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="16" valign="top" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoBodyTextIndent" align="left" style="margin-top: 0in; margin-right: .6pt; margin-bottom: .0001pt; margin-left: 0px! important; font-size: 9.0pt; font-family: 'Courier New'; text-align: left; letter-spacing: -.15pt; white-space: nowrap;">  </td> <td colspan="2" valign="top" style="border-top: 0px; border: none; padding: 0in 5.4pt 0in 5.4pt;">   </td> <td width="16" valign="bottom" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoBodyTextIndent" align="left" style="margin-top: 0in; margin-right: .6pt; margin-bottom: .0001pt; margin-left: 0px! important; font-size: 9.0pt; font-family: 'Courier New'; text-align: left; letter-spacing: -.15pt; white-space: nowrap;">  </td> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; padding: 0in 5.4pt 0in 5.4pt;">   </td> </tr> <tr> <td width="313" valign="bottom" style="width: 234.9pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 7.35pt; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; white-space: nowrap;">Outstanding stock options, <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 18.7pt; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; white-space: nowrap;">restricted stock units and restricted stock............. </td> <td width="16" valign="top" style="width: 11.8pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="67" valign="bottom" style="width: .7in; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> <p class="MsoBodyTextIndent" align="left" style="margin-top: 0in; margin-right: .6pt; margin-bottom: .0001pt; margin-left: 0px! important; font-size: 9.0pt; font-family: 'Courier New'; text-align: left; letter-spacing: -.15pt; white-space: nowrap;">8.9 </td> <td width="16" valign="bottom" style="width: 12.35pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="16" valign="bottom" style="width: 11.8pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoBodyTextIndent" align="left" style="margin-top: 0in; margin-right: .6pt; margin-bottom: .0001pt; margin-left: 0px! important; font-size: 9.0pt; font-family: 'Courier New'; text-align: left; letter-spacing: -.15pt; white-space: nowrap;">10.0 </td> <td colspan="2" valign="top" style="border-top: 0px; border: none; padding: 0in 5.4pt 0in 5.4pt;">   </td> <td width="16" valign="bottom" style="width: 11.8pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoBodyTextIndent" align="left" style="margin-top: 0in; margin-right: .6pt; margin-bottom: .0001pt; margin-left: 0px! important; font-size: 9.0pt; font-family: 'Courier New'; text-align: left; letter-spacing: -.15pt; white-space: nowrap;">10.7 </td> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; padding: 0in 5.4pt 0in 5.4pt;">   </td> </tr> <tr> <td width="313" valign="bottom" style="width: 234.9pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> Diluted weighted average shares outstanding ...........    </td> <td width="16" valign="top" style="width: 11.8pt; border: none; border-bottom: double windowtext 1.5pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="67" valign="bottom" style="width: .7in; border: none; border-bottom: double windowtext 1.5pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> 490.0 </td> <td width="16" valign="top" style="width: 12.35pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="16" valign="top" style="width: 11.8pt; border: none; border-bottom: double windowtext 1.5pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; border-bottom: double windowtext 1.5pt; padding: 0in 5.4pt 0in 5.4pt;"> 518.6 </td> <td colspan="2" valign="top" style="border-top: 0px; border: none; padding: 0in 5.4pt 0in 5.4pt;">   </td> <td width="16" valign="bottom" style="width: 11.8pt; border: none; border-bottom: double windowtext 1.5pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; border-bottom: double windowtext 1.5pt; padding: 0in 5.4pt 0in 5.4pt;"> 560.9 </td> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; padding: 0in 5.4pt 0in 5.4pt;">   </td> </tr> <tr> <td width="313" style="border: none; border-top: 0px;"></td> <td width="16" style="border: none; border-top: 0px;"></td> <td width="67" style="border: none; border-top: 0px;"></td> <td width="16" style="border: none; border-top: 0px;"></td> <td width="16" style="border: none; border-top: 0px;"></td> <td width="66" style="border: none; border-top: 0px;"></td> <td width="1" style="border: none; border-top: 0px;"></td> <td width="15" style="border: none; border-top: 0px;"></td> <td width="1" style="border: none; border-top: 0px;"></td> <td width="16" style="border: none; border-top: 0px;"></td> <td width="66" style="border: none; border-top: 0px;"></td> <td width="1" style="border: none; border-top: 0px;"></td> <td width="15" style="border: none; border-top: 0px;"></td> <td width="1" style="border: none; border-top: 0px;"></td> </tr> </table> </div>   <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">The decreases in the weighted average share outstanding and diluted weighted average shares outstanding for each year result from the repurchase of approximately 186.3 million shares of stock in connection with the Company’s share repurchase programs since inception in 2005 through the end of 2009, compared to equivalent amounts of 159.0 million and 111.4 million shares repurchased inception-to-date through the ends of 2008 and 2007, respectively. The Company repurchased approximately 27.3 million, 47.6 million shares and 53.3 million shares in fiscal years 2009, 2008 and 2007, respectively.   <p class="MsoBodyText" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 11.0pt; font-family: 'Times New Roman','serif'; margin: 0in; color: black; text-indent: .25in;">The above share data has been retrospectively adjusted to reflect the January 24, 2008 two-for-one stock split. See Note 1, “Background and Basis of Presentation,” for more information. <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">  <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">Other Comprehensive Income and Accumulated Other Comprehensive Income. Other comprehensive income includes unrealized investment gains and losses, foreign currency translation adjustments resulting primarily from the translation of Europa Apotheek’s assets and liabilities and results of operations, unrealized gains and losses on effective cash flow hedges, prior service costs or credits and actuarial gains or losses associated with pension or other postretirement benefits that arise during the period, as well as the amortization of prior service costs or credits and actuarial gains or losses, which are reclassified as a component of net benefit expense, and the tax effect allocated to each component of other comprehensive income.   <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">The accumulated other comprehensive income (“AOCI”) component of stockholders’ equity includes: unrealized investment gains and losses, net of tax; foreign currency translation adjustments resulting primarily from the translation of Europa Apotheek’s assets and liabilities and results of operations; unrealized gains and losses on effective cash flow hedges, net of tax; and the net gains and losses and prior service costs and credits related to the Company’s pension and other postretirement benefit plans, net of tax. The year-end balances in AOCI related to the Company’s pension and other postretirement benefit plans consist of amounts that have not yet been recognized as components of net periodic benefit cost in the consolidated statement of income. <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">  The amounts recognized in AOCI at December 29, 2007, December 27, 2008 and December 26, 2009 and the components and allocated tax effects included in other comprehensive income in fiscal 2008 and 2009 are as follows ($ in millions): <div align="center"> <table class="MsoNormalTable" border="1" cellspacing="0" cellpadding="0" style="font-size: 10.0pt; font-family: 'Calibri','sans-serif'; margin-left: 0px! important; border-collapse: separate; border: none;"> <tr> <td width="165" valign="top" style="width: 123.55pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td colspan="4" valign="bottom" style="border-top: 0px; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoNormal" align="center" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: center; white-space: nowrap;">Unrealized Gains (Losses) on Investments </td> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoNormal" align="center" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: center; white-space: nowrap;">Foreign Currency Translation <p class="MsoNormal" align="center" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: center; white-space: nowrap;">Gains (Losses) </td> <td colspan="3" valign="bottom" style="border-top: 0px; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoNormal" align="center" style="margin-top: 5.0pt; margin-right: -7.8pt; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: center; white-space: nowrap;">Net Unrealized Gains (Losses) on Effective Cash Flow Hedges </td> <td colspan="3" valign="bottom" style="border-top: 0px; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoNormal" align="center" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: center; white-space: nowrap;">Net Prior Service Benefit (Cost) </td> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoNormal" align="center" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: center; white-space: nowrap;">Net Actuarial Gains (Losses) </td> <td colspan="3" valign="bottom" style="border-top: 0px; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoNormal" align="center" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: center; white-space: nowrap;">Total <p class="MsoNormal" align="center" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: center; white-space: nowrap;">AOCI </td> </tr> <tr> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; padding: 0in 5.4pt 0in 5.4pt;"> Balances at December 29, 2007, net of tax.... </td> <td width="16" valign="bottom" style="width: 11.8pt; border-top: 0px; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: none; padding: 0in 5.4pt 0in 5.4pt;"> $ </td> <td width="76" valign="bottom" style="width: 57.05pt; border-top: 0px; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: none; padding: 0in 5.4pt 0in 5.4pt;"> — </td> <td colspan="2" valign="bottom" style="border-top: 0px; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: none; padding: 0in 5.4pt 0in 5.4pt;"> $ </td> <td width="99" valign="bottom" style="width: 74.1pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> — </td> <td width="16" valign="bottom" style="width: 11.8pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> $ </td> <td width="87" valign="bottom" style="width: 65.05pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> (4.8) </td> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: -7.0pt; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; white-space: nowrap;">$ </td> <td width="74" valign="bottom" style="width: 55.45pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> 25.5 </td> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoNormal" align="center" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: center; white-space: nowrap;">$ </td> <td width="78" valign="bottom" style="width: 58.2pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: justify; white-space: nowrap;">(14.3) </td> <td width="16" valign="bottom" style="width: 11.8pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> <p class="MsoNormal" align="center" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: center; white-space: nowrap;">$ </td> <td width="66" valign="bottom" style="width: 49.7pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: justify; white-space: nowrap;">6.4 </td> <td style="border: none; padding: 0in 0in 0in 0in; border-top: 0px;" width="8">   </td> </tr> <tr> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; padding: 0in 5.4pt 0in 5.4pt;"> Fiscal 2008 activity: </td> <td width="16" valign="bottom" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="76" valign="bottom" style="width: 57.05pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; padding: 0in 5.4pt 0in 5.4pt;">   </td> <td width="99" valign="bottom" style="width: 74.1pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="16" valign="bottom" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="87" valign="bottom" style="width: 65.05pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td colspan="2" valign="top" style="border-top: 0px; border: none; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: -7.0pt; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; white-space: nowrap;">  </td> <td width="74" valign="bottom" style="width: 55.45pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoNormal" align="center" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: center; white-space: nowrap;">  </td> <td width="78" valign="bottom" style="width: 58.2pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: justify; white-space: nowrap;">  </td> <td width="16" valign="bottom" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> <p class="MsoNormal" align="center" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: center; white-space: nowrap;">  </td> <td width="66" valign="bottom" style="width: 49.7pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: justify; white-space: nowrap;">  </td> <td style="border: none; padding: 0in 0in 0in 0in; border-top: 0px;" width="8">   </td> </tr> <tr> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; padding: 0in 5.4pt 0in 5.4pt;"> Before tax amount........................................... </td> <td width="16" valign="bottom" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="76" valign="bottom" style="width: 57.05pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> (0.3) </td> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; padding: 0in 5.4pt 0in 5.4pt;">   </td> <td width="99" valign="bottom" style="width: 74.1pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> (15.5) </td> <td width="16" valign="bottom" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="87" valign="bottom" style="width: 65.05pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> (25.0) </td> <td colspan="2" valign="top" style="border-top: 0px; border: none; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: -7.0pt; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; white-space: nowrap;">  </td> <td width="74" valign="bottom" style="width: 55.45pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> (5.0) </td> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoNormal" align="center" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: center; white-space: nowrap;">  </td> <td width="78" valign="bottom" style="width: 58.2pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: justify; white-space: nowrap;">(59.8) </td> <td width="16" valign="bottom" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> <p class="MsoNormal" align="center" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: center; white-space: nowrap;">  </td> <td width="66" valign="bottom" style="width: 49.7pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: justify; white-space: nowrap;">(105.6) </td> <td style="border: none; padding: 0in 0in 0in 0in; border-top: 0px;" width="8">   </td> </tr> <tr> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; padding: 0in 5.4pt 0in 5.4pt;"> Tax benefit..................................................... </td> <td width="16" valign="bottom" style="width: 11.8pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="76" valign="bottom" style="width: 57.05pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> 0.1 </td> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt;">   </td> <td width="99" valign="bottom" style="width: 74.1pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> — </td> <td width="16" valign="bottom" style="width: 11.8pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="87" valign="bottom" style="width: 65.05pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> 9.8 </td> <td colspan="2" valign="top" style="border-top: 0px; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: -7.0pt; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; white-space: nowrap;">  </td> <td width="74" valign="bottom" style="width: 55.45pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> 2.0 </td> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoNormal" align="center" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: center; white-space: nowrap;">  </td> <td width="78" valign="bottom" style="width: 58.2pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: justify; white-space: nowrap;">23.5 </td> <td width="16" valign="bottom" style="width: 11.8pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> <p class="MsoNormal" align="center" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: center; white-space: nowrap;">  </td> <td width="66" valign="bottom" style="width: 49.7pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: justify; white-space: nowrap;">35.4 </td> <td style="border: none; padding: 0in 0in 0in 0in; border-top: 0px;" width="8">   </td> </tr> <tr> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; padding: 0in 5.4pt 0in 5.4pt;"> Net-of-tax change................................................. </td> <td width="16" valign="bottom" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="76" valign="bottom" style="width: 57.05pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> (0.2) </td> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; padding: 0in 5.4pt 0in 5.4pt;">   </td> <td width="99" valign="bottom" style="width: 74.1pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> (15.5)(1) </td> <td width="16" valign="bottom" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="87" valign="bottom" style="width: 65.05pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> (15.2)(2) </td> <td colspan="2" style="border-top: 0px; border: none; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: -7.0pt; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; white-space: nowrap;">  </td> <td width="74" valign="bottom" style="width: 55.45pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> (3.0) </td> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoNormal" align="center" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: center; white-space: nowrap;">  </td> <td width="78" valign="bottom" style="width: 58.2pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: justify; white-space: nowrap;">(36.3)(3) </td> <td width="16" valign="bottom" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> <p class="MsoNormal" align="center" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: center; white-space: nowrap;">  </td> <td width="66" valign="bottom" style="width: 49.7pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: justify; white-space: nowrap;">(70.2) </td> <td style="border: none; border-bottom: solid windowtext 1.0pt; border-top: 0px;" width="8">   </td> </tr> <tr> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; padding: 0in 5.4pt 0in 5.4pt;"> Balances at December 27, 2008, net of tax.... </td> <td width="16" valign="bottom" style="width: 11.8pt; border-top: 0px; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: none; padding: 0in 5.4pt 0in 5.4pt;"> $ </td> <td width="76" valign="bottom" style="width: 57.05pt; border-top: 0px; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: none; padding: 0in 5.4pt 0in 5.4pt;"> (0.2) </td> <td colspan="2" valign="bottom" style="border-top: 0px; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: none; padding: 0in 5.4pt 0in 5.4pt;"> $ </td> <td width="99" valign="bottom" style="width: 74.1pt; border-top: 0px; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: none; padding: 0in 5.4pt 0in 5.4pt;"> (15.5) </td> <td width="16" valign="bottom" style="width: 11.8pt; border-top: 0px; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: none; padding: 0in 5.4pt 0in 5.4pt;"> $ </td> <td width="87" valign="bottom" style="width: 65.05pt; border-top: 0px; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: none; padding: 0in 5.4pt 0in 5.4pt;"> (20.0) </td> <td colspan="2" valign="bottom" style="border-top: 0px; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: none; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: -7.0pt; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; white-space: nowrap;">$ </td> <td width="74" valign="bottom" style="width: 55.45pt; border-top: 0px; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: none; padding: 0in 5.4pt 0in 5.4pt;"> 22.5 </td> <td colspan="2" valign="bottom" style="border-top: 0px; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: none; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoNormal" align="center" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: center; white-space: nowrap;">$ </td> <td width="78" valign="bottom" style="width: 58.2pt; border-top: 0px; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: none; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: justify; white-space: nowrap;">(50.6) </td> <td width="16" valign="bottom" style="width: 11.8pt; border-top: 0px; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: none; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoNormal" align="center" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: center; white-space: nowrap;">$ </td> <td colspan="2" valign="bottom" style="border-top: 0px; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: none; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: justify; white-space: nowrap;">(63.8) </td> </tr> <tr> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; padding: 0in 5.4pt 0in 5.4pt;"> Fiscal 2009 activity: </td> <td width="16" valign="bottom" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="76" valign="bottom" style="width: 57.05pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; padding: 0in 5.4pt 0in 5.4pt;">   </td> <td width="99" valign="bottom" style="width: 74.1pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="16" valign="bottom" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="87" valign="bottom" style="width: 65.05pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td colspan="2" valign="top" style="border-top: 0px; border: none; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: -7.0pt; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; white-space: nowrap;">  </td> <td width="74" valign="bottom" style="width: 55.45pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoNormal" align="center" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: center; white-space: nowrap;">  </td> <td width="78" valign="bottom" style="width: 58.2pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: justify; white-space: nowrap;">  </td> <td width="16" valign="bottom" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> <p class="MsoNormal" align="center" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: center; white-space: nowrap;">  </td> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: justify; white-space: nowrap;">  </td> </tr> <tr> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; padding: 0in 5.4pt 0in 5.4pt;"> Before tax amount........................................... </td> <td width="16" valign="bottom" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="76" valign="bottom" style="width: 57.05pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> (0.2) </td> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; padding: 0in 5.4pt 0in 5.4pt;">   </td> <td width="99" valign="bottom" style="width: 74.1pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> 2.9 </td> <td width="16" valign="bottom" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="87" valign="bottom" style="width: 65.05pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> 3.6 </td> <td colspan="2" valign="top" style="border-top: 0px; border: none; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: -7.0pt; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; white-space: nowrap;">  </td> <td width="74" valign="bottom" style="width: 55.45pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> (4.0) </td> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoNormal" align="center" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: center; white-space: nowrap;">  </td> <td width="78" valign="bottom" style="width: 58.2pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: justify; white-space: nowrap;">28.6 </td> <td width="16" valign="bottom" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> <p class="MsoNormal" align="center" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: center; white-space: nowrap;">  </td> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: justify; white-space: nowrap;">30.9 </td> </tr> <tr> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; padding: 0in 5.4pt 0in 5.4pt;"> Tax benefit..................................................... </td> <td width="16" valign="bottom" style="width: 11.8pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="76" valign="bottom" style="width: 57.05pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> 0.1 </td> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt;">   </td> <td width="99" valign="bottom" style="width: 74.1pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> — </td> <td width="16" valign="bottom" style="width: 11.8pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="87" valign="bottom" style="width: 65.05pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> (1.7) </td> <td colspan="2" valign="top" style="border-top: 0px; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: -7.0pt; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; white-space: nowrap;">  </td> <td width="74" valign="bottom" style="width: 55.45pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> 1.6 </td> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoNormal" align="center" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: center; white-space: nowrap;">  </td> <td width="78" valign="bottom" style="width: 58.2pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: justify; white-space: nowrap;">(11.3) </td> <td width="16" valign="bottom" style="width: 11.8pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> <p class="MsoNormal" align="center" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: center; white-space: nowrap;">  </td> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: justify; white-space: nowrap;">(11.3) </td> </tr> <tr> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; padding: 0in 5.4pt 0in 5.4pt;"> Net-of-tax change................................................. </td> <td width="16" valign="bottom" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="76" valign="bottom" style="width: 57.05pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> (0.1) </td> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; padding: 0in 5.4pt 0in 5.4pt;">   </td> <td width="99" valign="bottom" style="width: 74.1pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> 2.9(1) </td> <td width="16" valign="bottom" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="87" valign="bottom" style="width: 65.05pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> 1.9 (4) </td> <td colspan="2" style="border-top: 0px; border: none; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: -7.0pt; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; white-space: nowrap;">  </td> <td width="74" valign="bottom" style="width: 55.45pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> (2.4) </td> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoNormal" align="center" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: center; white-space: nowrap;">  </td> <td width="78" valign="bottom" style="width: 58.2pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: justify; white-space: nowrap;">17.3(5) </td> <td width="16" valign="bottom" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> <p class="MsoNormal" align="center" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: center; white-space: nowrap;">  </td> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: justify; white-space: nowrap;">19.6 </td> </tr> <tr> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; padding: 0in 5.4pt 0in 5.4pt;"> Balances at December 26, 2009, net of tax.... </td> <td width="16" valign="bottom" style="width: 11.8pt; border-top: 0px; border-left: none; border-bottom: double windowtext 1.5pt; border-right: none; padding: 0in 5.4pt 0in 5.4pt;"> $ </td> <td width="76" valign="bottom" style="width: 57.05pt; border-top: 0px; border-left: none; border-bottom: double windowtext 1.5pt; border-right: none; padding: 0in 5.4pt 0in 5.4pt;"> (0.3) </td> <td colspan="2" valign="bottom" style="border-top: 0px; border-left: none; border-bottom: double windowtext 1.5pt; border-right: none; padding: 0in 5.4pt 0in 5.4pt;"> $ </td> <td width="99" valign="bottom" style="width: 74.1pt; border-top: 0px; border-left: none; border-bottom: double windowtext 1.5pt; border-right: none; padding: 0in 5.4pt 0in 5.4pt;"> (12.6) </td> <td width="16" valign="bottom" style="width: 11.8pt; border-top: 0px; border-left: none; border-bottom: double windowtext 1.5pt; border-right: none; padding: 0in 5.4pt 0in 5.4pt;"> $ </td> <td width="87" valign="bottom" style="width: 65.05pt; border-top: 0px; border-left: none; border-bottom: double windowtext 1.5pt; border-right: none; padding: 0in 5.4pt 0in 5.4pt;"> (18.1) </td> <td colspan="2" valign="bottom" style="border-top: 0px; border-left: none; border-bottom: double windowtext 1.5pt; border-right: none; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: -7.0pt; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; white-space: nowrap;">$ </td> <td width="74" valign="bottom" style="width: 55.45pt; border-top: 0px; border-left: none; border-bottom: double windowtext 1.5pt; border-right: none; padding: 0in 5.4pt 0in 5.4pt;"> 20.1 </td> <td colspan="2" valign="bottom" style="border-top: 0px; border-left: none; border-bottom: double windowtext 1.5pt; border-right: none; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoNormal" align="center" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: center; white-space: nowrap;">$ </td> <td width="78" valign="bottom" style="width: 58.2pt; border-top: 0px; border-left: none; border-bottom: double windowtext 1.5pt; border-right: none; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: justify; white-space: nowrap;">(33.3) </td> <td width="16" valign="bottom" style="width: 11.8pt; border-top: 0px; border-left: none; border-bottom: double windowtext 1.5pt; border-right: none; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoNormal" align="center" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: center; white-space: nowrap;">$ </td> <td colspan="2" valign="bottom" style="border-top: 0px; border-left: none; border-bottom: double windowtext 1.5pt; border-right: none; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: justify; white-space: nowrap;">(44.2) </td> </tr> <tr> <td width="249" style="border: none; border-top: 0px;"></td> <td width="10" style="border: none; border-top: 0px;"></td> <td width="21" style="border: none; border-top: 0px;"></td> <td width="59" style="border: none; border-top: 0px;"></td> <td width="3" style="border: none; border-top: 0px;"></td> <td width="18" style="border: none; border-top: 0px;"></td> <td width="80" style="border: none; border-top: 0px;"></td> <td width="21" style="border: none; border-top: 0px;"></td> <td width="70" style="border: none; border-top: 0px;"></td> <td width="3" style="border: none; border-top: 0px;"></td> <td width="33" style="border: none; border-top: 0px;"></td> <td width="59" style="border: none; border-top: 0px;"></td> <td width="2" style="border: none; border-top: 0px;"></td> <td width="19" style="border: none; border-top: 0px;"></td> <td width="70" style="border: none; border-top: 0px;"></td> <td width="21" style="border: none; border-top: 0px;"></td> <td width="59" style="border: none; border-top: 0px;"></td> <td width="0" style="border: none; border-top: 0px;"></td> </tr> </table> </div>   <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 31.5pt; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-autospace: none;">(1)    This primarily represents the unrealized net foreign currency translation gains (losses) resulting from the translation   of majority-owned Europa Apotheek’s net assets acquired from the April 28, 2008 acquisition date. <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 31.5pt; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-autospace: none;">(2) The net unrealized losses on cash flow hedges consist of the unrealized loss on effective cash flow hedges of $(16.9) million, net of taxes, which settled in 2008, offset by the associated amortization of $1.7 million, net of taxes. <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 31.5pt; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-autospace: none;">(3) Net actuarial losses reflect an increase in the unfunded status of the Company’s pension plans due to reductions in pension plan assets from investment losses in 2008, and increased benefit obligations related to increased plan participants. <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 31.5pt; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-autospace: none;">(4) Consists of the amortization of the unrealized loss on the effective portion of the cash flow hedges. <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 31.5pt; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-autospace: none;">(5) Net actuarial gains primarily reflect increases in pension plan assets from investing gains in 2009. <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 9.0pt; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-autospace: none;">  <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">See Note 9, “Pension and Other Postretirement Benefits,” for additional information on the reclassification adjustments included within the components of other comprehensive income related to the Company’s defined benefit plans.  <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">  <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">Contingencies. In the ordinary course of business, the Company is involved in litigation, claims, government inquiries, investigations, charges and proceedings, including, but not limited to, those relating to regulatory, commercial, employment, employee benefits and securities matters. In accordance with the FASB’s standard on accounting for contingencies, the Company records accruals for contingencies when it is probable that a liability will be incurred and the amount of loss can be reasonably estimated.  The Company’s recorded reserves are based on estimates developed with consideration given to the potential merits of claims, the range of possible settlements, advice from outside counsel, and management’s strategy with regard to the settlement of or defense against such claims. See Note 14, “Commitments and Contingencies,” for additional information. <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">  <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">Stock-Based Compensation. The Company accounts for stock-based compensation in accordance with a standard issued by the FASB and guidance issued by the Securities and Exchange Commission (“SEC”), whichrequire the measurement and recognition of compensation expense for all stock-based compensation awards made to employees and directors, including employee stock options and employee stock purchase plans.   <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">The standard requires companies to estimate the fair value of stock-based awards on the date of grant using an option-pricing model. The portion of the value that is ultimately expected to vest is recognized as expense over the requisite service period. As stock-based compensation expense recognized in our audited consolidated statements of income for fiscal years 2009, 2008 and 2007 is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. The standard requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.   <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">In addition, the standard requires that the benefits of realized tax deductions in excess of tax benefits on compensation expense, which amounted to $64.3 million, $41.8 million and $69.9 million for fiscal years 2009, 2008 and 2007, respectively, be reported as a component of cash flows from financing activities rather than as an operating cash flow, as previously required. In accordance with Authoritative Guidance issued by the SEC, the Company classifies stock-based compensation within cost of product net revenues and SG&A expenses to correspond with the financial statement components in which cash compensation paid to employees and directors is recorded. <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">  Foreign Currency Translation. The Company’s consolidated financial statements are presented in U.S. dollars. In 2008, the Company acquired a majority interest in Europa Apotheek, a company based in the Netherlands, with the Euro as its local currency, and in 2009, the Company entered into a joint venture with United Drug plc, a company based in the United Kingdom, with the British pound as its local currency. Europa Apotheek’s assets and liabilities, and the Company’s investment in the United Drug plc joint venture are translated into U.S. dollars at the exchange rates in effect at balance sheet dates, and revenues and expenses are translated at the weighted average exchange rates prevailing during the month of the transaction. Adjustments resulting from translating net assets are reported as a separate component of AOCI within stockholders’ equity.   Recently Issued Accounting Pronouncement.   <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">Fair Value Measurements and Disclosures. In January 2010, the FASB issued a standard, which amends the existing fair value measurements and disclosure standard and provides guidance on increased disclosureson transfers in and out of Levels 1 and 2 and activity in Level 3 fair value measurements. The standard also clarifies existing fair value measurement disclosure guidance about the level of disaggregation, inputs, and valuation techniques. The new disclosures and clarifications of existing disclosures are effective for interim and annual reporting periods beginning after December 15, 2009, except for the disclosures about purchases, sales, issuances, and settlements in the roll forward of activity in Level 3 fair value measurements, which are effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. The Company does not expect the adoption of the standard to have a material impact on its consolidated financial statements. </div></div> 2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Recently Adopted Financial Accounting Standards.   Subsequent Events. In May 2009, the Financial false false Represents disclosure of any changes in an accounting principle, including a change from one generally accepted accounting principle to another generally accepted accounting principle when there are two or more generally accepted accounting principles that apply or when the accounting principle formerly used is no longer generally accepted. Also disclose any change in the method of applying an accounting principle, or any change in an accounting principle required by a new pronouncement in the unusual instance that a new pronouncement does not include specific transition provisions. Also represents all significant accounting policies of the reporting entity. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true