Costco 2010 Annual Report Download - page 51

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COSTCO WHOLESALE CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in millions)
52 Weeks
ended
August 29,
2010
52 Weeks
ended
August 30,
2009
52 Weeks
ended
August 31,
2008
CASH FLOWS FROM OPERATING ACTIVITIES
Net income including noncontrolling interests ............................ $1,323 $ 1,099 $ 1,295
Adjustments to reconcile net income including noncontrolling interests to net
cash provided by operating activities:
Depreciation and amortization ....................................... 795 728 653
Stock-based compensation ......................................... 190 181 166
Undistributed equity earnings in joint ventures ......................... (42) (33) (41)
Excess tax benefits on stock-based awards ........................... (10) (2) (41)
Other non-cash items, net .......................................... 2 46 4
Deferred income taxes ............................................. 7 70 21
Change in receivables, other current assets, deferred membership fees,
accrued and other current liabilities ................................. 283 142 245
Increase in merchandise inventories ................................. (213) (394) (192)
Increase in accounts payable ....................................... 445 255 96
Net cash provided by operating activities .............................. 2,780 2,092 2,206
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment, net of $24, $20, and $21 of non-cash
capital expenditures for 2010, 2009, and 2008, respectively .............. (1,055) (1,250) (1,599)
Proceeds from the sale of property and equipment ........................ 4 7 48
Purchases of short-term investments ................................... (2,693) (1,806) (1,507)
Maturities of short-term investments .................................... 1,428 1,780 1,561
Sales of investments ................................................ 309 183 165
Other investing items, net ............................................ (8) (9) (14)
Investments transferred from cash and cash equivalents ................... 0 (6) (371)
Net cash used in investing activities .................................. (2,015) (1,101) (1,717)
CASH FLOWS FROM FINANCING ACTIVITIES
Change in bank checks outstanding .................................... 5 (22) 49
Repayments of short-term borrowings .................................. (73) (1,777) (5,163)
Proceeds from short-term borrowings .................................. 81 1,669 5,250
Proceeds from issuance of long-term debt, net ........................... 0 0 103
Repayments of long-term debt ........................................ (84) (6) (69)
Cash dividend payments ............................................. (338) (296) (265)
Distribution to noncontrolling interests .................................. 0 (9) 0
Excess tax benefits on stock-based awards ............................. 10 2 41
Proceeds from stock-based awards, net ................................ 193 69 306
Repurchases of common stock ........................................ (551) (69) (895)
Other financing activities, net ......................................... 38 0 0
Net cash used in financing activities .................................. (719) (439) (643)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH
EQUIVALENTS .................................................... 11 (14) (7)
Net increase (decrease) in cash and cash equivalents ..................... 57 538 (161)
CASH AND CASH EQUIVALENTS BEGINNING OF YEAR .................. 3,157 2,619 2,780
CASH AND CASH EQUIVALENTS END OF YEAR ........................ $3,214 $ 3,157 $ 2,619
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the year for:
Interest (reduced by $11, $8, and $16 interest capitalized in 2010, 2009, and
2008, respectively) .............................................. $ 110 $ 104 $ 106
Income taxes ..................................................... $ 637 $ 565 $ 615
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES:
Common stock issued upon conversion of 3.5% Zero Coupon Convertible
Subordinated Notes ............................................... $ 1 $ 19 $ 0
Property acquired under capital leases ................................. $ 90 $ 72 $ 0
Unsettled repurchases of common stock ................................ $ 17 $ 0 $ 12
The accompanying notes are an integral part of these consolidated financial statements.
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