Costco 2013 Annual Report Download - page 49

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COSTCO WHOLESALE CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(amounts in millions)
52 Weeks Ended 53 Weeks Ended 52 Weeks Ended
September 1,
2013 September 2, 2012 August 28, 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net income including noncontrolling interests . . . . . . . . . . . . . . . . . . . . . . $2,061 $1,767 $1,542
Adjustments to reconcile net income including noncontrolling interests
to net cash provided by operating activities:
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 946 908 855
Stock-based compensation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 285 241 207
Excess tax benefits on stock-based awards . . . . . . . . . . . . . . . . . . . . . (61) (64) (45)
Other non-cash operating activities, net . . . . . . . . . . . . . . . . . . . . . . . . (7) 28 23
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 (3) 84
Changes in operating assets and liabilities, net of the initial
consolidation of Costco Mexico at the beginning of fiscal 2011:
Increase in merchandise inventories . . . . . . . . . . . . . . . . . . . . . . . . . . (898) (490) (642)
Increase in accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 718 338 804
Other operating assets and liabilities, net . . . . . . . . . . . . . . . . . . . . . . 386 332 370
Net cash provided by operating activities . . . . . . . . . . . . . . . . . . . . . . 3,437 3,057 3,198
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of short-term investments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,572) (2,048) (3,276)
Maturities of short-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,141 1,821 2,614
Sales of investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 244 482 602
Additions to property and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,083) (1,480) (1,290)
Increase resulting from initial consolidation of Costco Mexico . . . . . . . . . . 0 0 165
Other investing activities, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 (11) 5
Net cash used in investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . (2,251) (1,236) (1,180)
CASH FLOWS FROM FINANCING ACTIVITIES
Change in bank checks outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (70) 457 (514)
Repayments of short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . (287) (114) (105)
Proceeds from short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . 326 114 79
Proceeds from issuance of long-term debt. . . . . . . . . . . . . . . . . . . . . . . . . 3,717 130 0
Repayments of long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 (900) 0
(Distribution to) investment by noncontrolling interests . . . . . . . . . . . . . . . (22) (161) 9
Proceeds from exercise of stock options . . . . . . . . . . . . . . . . . . . . . . . . . . 52 109 285
Minimum tax withholdings on stock-based awards . . . . . . . . . . . . . . . . . . (121) (107) (61)
Excess tax benefits on stock-based awards. . . . . . . . . . . . . . . . . . . . . . . . 61 64 45
Repurchases of common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (36) (632) (624)
Cash dividend payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,560) (446) (389)
Purchase of noncontrolling interest in Costco Mexico . . . . . . . . . . . . . . . . 0 (789) 0
Other financing activities, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (16) (6) (2)
Net cash provided by (used in) financing activities. . . . . . . . . . . . . . . 44 (2,281) (1,277)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH
EQUIVALENTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (114) (21) 54
Net increase (decrease) in cash and cash equivalents . . . . . . . . . . . . . . . 1,116 (481) 795
CASH AND CASH EQUIVALENTS BEGINNING OF YEAR . . . . . . . . . . . . 3,528 4,009 3,214
CASH AND CASH EQUIVALENTS END OF YEAR. . . . . . . . . . . . . . . . . . . $4,644 $3,528 $4,009
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the year for:
Interest (reduced by $12, $10 and $9, interest capitalized in 2013,
2012 and 2011, respectively). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 86 $ 112 $ 111
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,001 $ 956 $ 742
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND
FINANCING ACTIVITIES:
Increase in accrued property and equipment . . . . . . . . . . . . . . . . . . . . . . . $ 40 $ — $ —
Property acquired under capital leases . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 11 $ 18 $ 0
Unsettled repurchases of common stock . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0 $ 2 $ 17
Distribution declared but not paid to noncontrolling interest. . . . . . . . . . . . $ 0 $ 22 $ 0
Common stock issued upon conversion of 3.5% Zero Coupon
Convertible Subordinated Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 30 $ 2 $ 2
The accompanying notes are an integral part of these consolidated financial statements.