Costco 2002 Annual Report Download - page 27

COSTCO WHOLESALE CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in thousands)
52 Weeks
Ended
September 1,
2002
52 Weeks
Ended
September 2,
2001
53 Weeks
Ended
September 3,
2000
CASH FLOWS FROM OPERATING ACTIVITIES
Net income ...................................................... $ 699,983 $ 602,089 $ 631,437
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation and amortization ..................................... 341,781 301,297 254,397
Accretion of discount on zero coupon notes .......................... 17,233 16,654 16,222
Net loss (gain) on sale of property and equipment and other ............. 4,001 (15,934) (5,358)
Provision for impaired assets ...................................... — 15,231 10,956
Change in deferred income taxes ................................... 12,179 40,797 8,264
Tax benefit from exercise of stock options ........................... 27,171 32,552 76,730
Change in receivables, other current assets, deferred income, accrued and
other current liabilities ......................................... 129,883 (6,159) 115,909
Increase in merchandise inventories ................................ (380,158) (271,355) (280,380)
Increase in accounts payable ...................................... 187,655 335,110 253,031
Other ........................................................ (21,485) (17,719) (10,850)
Total adjustments ............................................. 318,260 430,474 438,921
Net cash provided by operating activities ............................ 1,018,243 1,032,563 1,070,358
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment ................................. (1,038,605) (1,447,549) (1,228,421)
Proceeds from the sale of property and equipment ....................... 32,849 110,002 62,730
Purchase of minority interest ........................................ — — (51,792)
Investment in unconsolidated joint venture ............................. (1,000) (28,500) (5,000)
Decrease in short-term investments ................................... 4,928 41,599 208,959
Increase in other assets and other, net ................................. (31,987) (15,395) (32,140)
Net cash used in investing activities ................................ (1,033,815) (1,339,843) (1,045,664)
CASH FLOWS FROM FINANCING ACTIVITIES
(Repayments)/proceeds from short-term borrowings, net .................. (99,175) 185,942 9,435
Net proceeds from issuance of long-term debt .......................... 300,000 81,951 2,199
Repayments of long-term debt ....................................... (18,540) (159,328) (10,513)
Changes in bank overdrafts ......................................... (35,136) 216,661 33,746
Proceeds from minority interests ..................................... 3,908 7,119 24,856
Exercise of stock options ........................................... 66,771 62,000 98,828
Repurchase of common stock ....................................... — — (99,946)
Net cash provided by financing activities ............................ 217,828 394,345 58,605
EFFECT OF EXCHANGE RATE CHANGES ON CASH ................ 677 (8,985) 620
Increase in cash and cash equivalents ................................. 202,933 78,080 83,919
CASH AND CASH EQUIVALENTS BEGINNING OF YEAR ............ 602,585 524,505 440,586
CASH AND CASH EQUIVALENTS END OF YEAR ................... $ 805,518 $ 602,585 $ 524,505
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the year for:
Interest (excludes amounts capitalized) .............................. $ 9,511 $ 14,761 $ 21,996
Income taxes .................................................. $ 351,003 $ 363,649 $ 313,183
The accompanying notes are an integral part of these consolidated financial statements.
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