Costco 2004 Annual Report Download - page 32

COSTCO WHOLESALE CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in thousands)
52 Weeks
Ended
August 29,
2004
52 Weeks
Ended
August 31,
2003
52 Weeks
Ended
September 1,
2002
CASH FLOWS FROM OPERATING ACTIVITIES
Netincome ............................................. $ 882,393 $ 721,000 $ 699,983
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization ............................ 440,721 391,302 341,781
Accretion of discount on zero coupon notes ................. 18,421 17,852 17,233
Stock-based compensation ............................... 36,508 12,069 —
Undistributed equity earnings in affiliates ................... (23,517) (21,612) (21,485)
Net (gain)/loss on sale of property and equipment and other ..... (9,122) 4,907 4,001
Provision for impaired assets ............................. 2,592 4,697 —
Change in deferred income taxes .......................... 32,496 68,693 12,179
Tax benefit from exercise of stock options .................. 22,712 12,348 27,171
Change in receivables, other current assets, deferred income,
accrued and other current liabilities ...................... 740,027 232,167 129,883
Increase in merchandise inventories ........................ (256,438) (162,759) (380,158)
Increase in accounts payable ............................. 211,990 226,544 187,655
Totaladjustments .................................... 1,216,390 786,208 318,260
Net cash provided by operating activities ................... 2,098,783 1,507,208 1,018,243
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment ......................... (705,620) (810,665) (1,038,605)
Proceeds from the sale of property and equipment .............. 55,400 51,829 32,849
Purchase of minority interest ............................... (95,153) — —
Investment in unconsolidated joint venture .................... — — (1,000)
(Increase)/decrease in short-term investments .................. (303,945) — 4,928
Decrease/(increase) in other assets and other, net ............... 837 (31,752) (31,987)
Net cash used in investing activities ........................ (1,048,481) (790,588) (1,033,815)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of short-term borrowings, net .................... (31,492) (58,144) (99,175)
Net proceeds from issuance of long-term debt .................. — 59,424 300,000
Repayments of long-term debt .............................. (6,602) (11,823) (18,540)
Change in bank checks outstanding .......................... 212,251 (31,639) (35,136)
Cashdividendpayments................................... (92,137) — —
Proceeds from minority interests ............................ 2,805 6,087 3,908
Exercise of stock options .................................. 124,744 34,667 66,771
Net cash provided by/(used in) financing activities ............ 209,569 (1,428) 217,828
EFFECT OF EXCHANGE RATE CHANGES ON CASH ....... 17,825 24,729 677
Increase in cash and cash equivalents ........................ 1,277,696 739,921 202,933
CASH AND CASH EQUIVALENTS BEGINNING OF YEAR . . . 1,545,439 805,518 602,585
CASH AND CASH EQUIVALENTS END OF YEAR ........... $2,823,135 $1,545,439 $ 805,518
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION:
Cash paid during the year for:
Interest (excludes amounts capitalized) ..................... $ 14,648 $ 20,861 $ 9,511
Incometaxes .......................................... $ 327,368 $ 320,546 $ 351,003
The accompanying notes are an integral part of these consolidated financial statements.
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