Costco 2012 Annual Report Download - page 49

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COSTCO WHOLESALE CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in millions)
53 Weeks
ended
September 2,
2012
52 Weeks
ended
August 28,
2011
52 Weeks
ended
August 29,
2010
CASH FLOWS FROM OPERATING ACTIVITIES
Net income including noncontrolling interests .......................... $1,767 $ 1,542 $ 1,323
Adjustments to reconcile net income including noncontrolling
interests to net cash provided by operating activities:
Depreciation and amortization ..................................... 908 855 795
Stock-based compensation ....................................... 241 207 190
Excess tax benefits on stock-based awards .......................... (64) (45) (10)
Other non-cash operating activities, net ............................. 28 23 (40)
Deferred income taxes ........................................... (3) 84 7
Changes in operating assets and liabilities, net of the initial
consolidation of Costco Mexico at the beginning of fiscal 2011:
Increase in merchandise inventories .............................. (490) (642) (213)
Increase in accounts payable .................................... 338 804 445
Other operating assets and liabilities, net .......................... 332 370 283
Net cash provided by operating activities ............................ 3,057 3,198 2,780
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of short-term investments ................................. (2,048) (3,276) (2,693)
Maturities of short-term investments .................................. 1,821 2,614 1,428
Sales of investments .............................................. 482 602 309
Additions to property and equipment ................................. (1,480) (1,290) (1,055)
Proceeds from the sale of property and equipment ...................... 11 16 4
Increase resulting from initial consolidation of Costco Mexico ............. 0 165 0
Other investing activities, net ........................................ (22) (11) (8)
Net cash used in investing activities ................................ (1,236) (1,180) (2,015)
CASH FLOWS FROM FINANCING ACTIVITIES
Change in bank checks outstanding .................................. 457 (514) 5
Repayments of short-term borrowings ................................ (114) (105) (73)
Proceeds from short-term borrowings ................................. 114 79 81
Proceeds from issuance of long-term debt ............................. 130 0 0
Repayments of long-term debt ...................................... (900) 0 (84)
Investment by (distribution to) noncontrolling interests ................... (161) 9 0
Proceeds from exercise of stock options .............................. 109 285 235
Minimum tax withholdings on stock-based awards ...................... (107) (61) (42)
Excess tax benefits on stock-based awards ............................ 64 45 10
Repurchases of common stock ...................................... (632) (624) (551)
Cash dividend payments ........................................... (446) (389) (338)
Purchase of noncontrolling interest in Costco Mexico .................... (789) 0 0
Other financing activities, net ........................................ (6) (2) 38
Net cash used in financing activities ................................ (2,281) (1,277) (719)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH
EQUIVALENTS .................................................. (21) 54 11
Net increase (decrease) in cash and cash equivalents ................... (481) 795 57
CASH AND CASH EQUIVALENTS BEGINNING OF YEAR ............... 4,009 3,214 3,157
CASH AND CASH EQUIVALENTS END OF YEAR ...................... $3,528 $ 4,009 $ 3,214
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the year for:
Interest (reduced by $10, $9, and $11 interest capitalized in 2012,
2011, and 2010, respectively) ................................... $ 112 $ 111 $ 110
Income taxes ................................................... $ 956 $ 742 $ 637
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND
FINANCING ACTIVITIES:
(Decrease)/increase in accrued property and equipment ................. $ (29) $ (10) $ 24
Property acquired under capital leases ................................ $ 18 $ 0 $ 90
Unsettled repurchases of common stock .............................. $ 2 $ 17 $ 17
Distribution declared but not paid to noncontrolling interest ............... $ 22 $ 0 $ 0
The accompanying notes are an integral part of these consolidated financial statements.
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