CVS Caremark Corporation (CVS)

Item 3. Quantitative and Qualitative Disclosures About Market Risk

As of September 27, 2008, the Company had no derivative financial instruments or derivative commodity instruments in place and believes that its exposure to market risk associated with other financial instruments, principally interest rate risk inherent in its debt portfolio is not material.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

As of June 28, 2008, the Company had no derivative financial instruments or derivative commodity instruments in place and believes that its exposure to market risk associated with other financial instruments, principally interest rate risk inherent in its debt portfolio is not material.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

As of March 29, 2008, the Company had no derivative financial instruments or derivative commodity instruments in place and believes that its exposure to market risk associated with other financial instruments, principally interest rate risk inherent in its debt portfolio is not material.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

As of September 29, 2007, the Company had no derivative financial instruments or derivative commodity instruments in place and believes its exposure to market risk associated with other financial instruments, principally interest rate risk inherent in its debt portfolio, is not material.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

As of June 30, 2007, the Company had no derivative financial instruments or derivative commodity instruments in place and believes its exposure to market risk associated with other financial instruments, principally interest rate risk inherent in its debt portfolio, is not material.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

As of March 31, 2007, the Company had no derivative financial instruments or derivative commodity instruments in place and believes that its exposure to market risk associated with other financial instruments, principally interest rate risk inherent in its debt portfolio is not material.

During the second quarter of 2007, the Company expects to finance a portion of the short-term borrowings that will be issued to finance the special cash dividend and share repurchase with longer-term financing.

During the third quarter of 2006, the Company refinanced a portion of the short-term borrowings issued to finance the acquisition of the Standalone Drug Business, with $800 million of 5.75% unsecured senior notes due August 15, 2011 and $700 million of 6.125% unsecured senior notes due August 15, 2016. To manage a portion of the risk associated

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

As of September 30, 2006, the Company had no derivative financial instruments or derivative commodity instruments in place and believes its exposure to market risk associated with changes in interest rates in its debt portfolio is not material.

During the third quarter of 2006, the Company refinanced a portion of the short-term borrowings issued to finance the acquisition of the Standalone Drug Business, with $800 million of 5.75% unsecured senior notes due August 15, 2011 and $700 million of 6.125% unsecured senior notes due August 15, 2016. To manage a portion of the risk associated with changes in market interest rates, during the second quarter of 2006, the Company entered into forward starting pay fixed rate swaps (the “Swaps”), with a notional amount of $750 million. The Swaps settled during the third quarter of 2006 in conjunction with the placement of the longer-term financing. As of September 30, 2006, the Company had no freestanding derivatives in place.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

The Company believes its exposure to market risk associated with changes in interest rates in its debt portfolio is not material.

During the third quarter of 2006, the Company expects to finance a portion of the short-term borrowings issued to finance the acquisition of the Standalone Drug Business, with longer-term financing. To manage a portion of the risk associated with changes in market interest rates, during the second quarter of 2006, the Company entered into forward starting pay fixed rate swaps, (the “Swaps”) with a notional amount of $750 million. The Company expects to settle these Swaps during the third quarter of 2006 in conjunction with the placement of the longer-term financing.

As of July 1, 2006, other than the Swaps, the Company had no derivative financial instruments or derivative commodity instruments in place and does not believe interest rate fluctuations through the settlement date of the Swaps will have a material impact on the Company’s consolidated results of operations or financial position.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

As of April 1, 2006, the Company had no derivative financial instruments or derivative commodity instruments in place and believes that its exposure to market risk associated with other financial instruments, principally interest rate risk inherent in its debt portfolio is not material.

During the third quarter of 2006, the Company expects to finance a portion of the short-term borrowings that will be issued to finance the Albertson’s transaction, with longer-term financing. To manage a portion of the risk associated with changes in market interest rates, subsequent to the end of the first quarter of 2006, the Company entered into forward starting pay fixed rate swaps, (the “Swaps”) with a notional amount of $570 million. The Swaps are expected to settle during the third quarter of 2006 in conjunction with the placement of the longer-term financing.

Item 7A. Quantitative and Qualitative Disclosures about Market Risk

As of December 31, 2005, the Company had no derivative financial instruments or derivative commodity instruments in place and believes that its exposure to market risk associated with other financial instruments, principally interest rate risk inherent in its debt portfolio, is not material.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

As of July 2, 2005, the Company had no derivative financial instruments or derivative commodity instruments in place and believes that its exposure to market risk associated with other financial instruments, principally interest rate risk inherent in its debt portfolio, is not material.

As of April 2, 2005, the Company had no derivative financial instruments or derivative commodity instruments in place and believes that its exposure to market risk associated with other financial instruments, principally interest rate risk inherent in its debt portfolio is not material.

Item 7A. Quantitative and Qualitative Disclosures about Market Risk

During 2004, the Company refinanced a portion of the short-term borrowings issued to finance the acquisition of the Acquired Businesses with, $650 million of 4.0% unsecured senior notes due September 15, 2009, and $550 million of 4.875% unsecured senior notes due September 15, 2004. To manage a portion of the risk associated with changes in market interest rates, the Company entered into Treasury-Lock Contracts (the “Contracts”) with total notional amounts of $600 million. The Contracts settled during the third quarter of 2004 in conjunction with the placement of the longer-term financing. The settlement of the Contracts resulted in an unrealized loss of $32.8 million net of a $12.0 million tax benefit.

As of January 1, 2005, the Company had no derivative financial instruments or derivative commodity instruments in place and believes that its exposure to market risk associated with other financial instruments, principally interest rate risk inherent in its debt portfolio is not material.