Costco 2003 Annual Report Download - page 30

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COSTCO WHOLESALE CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in thousands)
52 Weeks
Ended
August 31,
2003
52 Weeks
Ended
September 1,
2002
52 Weeks
Ended
September 2,
2001
CASH FLOWS FROM OPERATING ACTIVITIES
Net income ............................................. $ 721,000 $ 699,983 $ 602,089
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization ............................ 391,302 341,781 301,297
Accretion of discount on zero coupon notes ................. 17,852 17,233 16,654
Stock-based compensation ............................... 12,069 — —
Undistributed equity earnings in affiliates ................... (21,612) (21,485) (17,719)
Net loss/(gain) on sale of property and equipment and other ..... 4,907 4,001 (15,934)
Provision for impaired assets ............................. 4,697 — 15,231
Change in deferred income taxes .......................... 68,693 12,179 40,797
Tax benefit from exercise of stock options .................. 12,348 27,171 32,552
Change in receivables, other current assets, deferred income,
accrued and other current liabilities ...................... 232,167 129,883 (6,159)
Increase in merchandise inventories ........................ (162,759) (380,158) (271,355)
Increase in accounts payable ............................. 226,544 187,655 335,110
Total adjustments .................................... 786,208 318,260 430,474
Net cash provided by operating activities ................... 1,507,208 1,018,243 1,032,563
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment ......................... (810,665) (1,038,605) (1,447,549)
Proceeds from the sale of property and equipment .............. 51,829 32,849 110,002
Investment in unconsolidated joint venture .................... — (1,000) (28,500)
Decrease in short-term investments .......................... — 4,928 41,599
Increase in other assets and other, net ........................ (31,752) (31,987) (15,395)
Net cash used in investing activities ........................ (790,588) (1,033,815) (1,339,843)
CASH FLOWS FROM FINANCING ACTIVITIES
(Repayments)/proceeds from short-term borrowings, net ......... (58,144) (99,175) 185,942
Net proceeds from issuance of long-term debt .................. 59,424 300,000 81,951
Repayments of long-term debt .............................. (11,823) (18,540) (159,328)
Changes in bank checks outstanding ......................... (31,639) (35,136) 216,661
Proceeds from minority interests ............................ 6,087 3,908 7,119
Exercise of stock options .................................. 34,667 66,771 62,000
Net cash (used in)/provided by financing activities ............ (1,428) 217,828 394,345
EFFECT OF EXCHANGE RATE CHANGES ON CASH ....... 24,729 677 (8,985)
Increase in cash and cash equivalents ........................ 739,921 202,933 78,080
CASH AND CASH EQUIVALENTS BEGINNING OF YEAR ... 805,518 602,585 524,505
CASH AND CASH EQUIVALENTS END OF YEAR ........... $1,545,439 $ 805,518 $ 602,585
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION:
Cash paid during the year for:
Interest (excludes amounts capitalized) ..................... $ 20,861 $ 9,511 $ 14,761
Income taxes .......................................... $ 320,546 $ 351,003 $ 363,649
The accompanying notes are an integral part of these consolidated financial statements.
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