CVS 1998 Annual Report Download - page 27

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25
1998 Financial Report
Years Ended December 31,
In millions 1998 1997 1996
Cash flows from operating activities:
Net earnings $396.4 $ 76.9 $208.2
Adjustments required to reconcile net earnings to net cash
provided by (used in) operating activities:
Depreciation and amortization 249.7 242.6 262.8
Merger, restructuring and other nonrecurring charges 168.3 486.7 235.0
Deferred income taxes and other non-cash items 81.8 (218.5) 116.4
Net operating loss carryforwards utilized 7.2 69.4 15.3
Gain on sale of securities —— (121.4)
Extraordinary item, loss on early retirement of debt, net of tax —17.1 —
Income (loss) from unconsolidated subsidiary —0.3 (4.5)
Minority interest in net earnings —— 22.2
Change in assets and liabilities, excluding acquisitions and dispositions:
(Increase) in accounts receivable, net (197.9) (82.5) (0.8)
(Increase) in inventories (315.0) (566.1) (251.0)
(Increase) in other current assets, deferred charges and other assets (82.7) (74.2) (99.1)
Increase in accounts payable 52.6 174.7 176.5
(Decrease) in accrued expenses (280.4) (220.3) (215.5)
Increase (decrease) in federal income taxes payable and other liabilities 141.0 (11.9) (16.9)
Net cash provided by (used in) operating activities 221.0 (105.8) 327.2
Cash flows from investing activities:
Additions to property and equipment (502.3) (341.6) (328.9)
Acquisitions, net of cash (62.2) — (373.9)
Proceeds from sale of businesses and other property and equipment 50.5 192.7 240.4
Proceeds from sale of investments —309.7 485.8
Net cash (used in) provided by investing activities (514.0) 160.8 23.4
Cash flows from financing activities:
Additions to (reductions in) short-term borrowings 304.6 466.4 (52.0)
Proceeds from exercise of stock options 121.1 169.1 62.1
(Reductions in) additions to long-term debt (41.9) (917.2) 128.5
Dividends paid (102.5) (87.6) (137.5)
Other —— (25.8)
Net cash provided by (used in) financing activities 281.3 (369.3) (24.7)
Net (decrease) increase in cash and cash equivalents (11.7) (314.3) 325.9
Cash and cash equivalents at beginning of year 192.5 506.8 180.9
Cash and cash equivalents at end of year $180.8 $192.5 $506.8
See accompanying notes to consolidated financial statements.
Consolidated Statements of Cash Flows