Costco 1998 Annual Report Download - page 22

MERRILL CORPORATION NETWORK COMPOSITION SYSTEM BSANDFO // 1-DEC-98 23:38 DISK004:[98SEA7.98SEA2097]DU2097A.;8
IMAGES:[PAGER.PSTYLES]MRLL.BST;4 pag$fmt:mrll.fmt Free: 199DM/ 0D Foot: 0D/ 0D VJ R Seq: 1 Clr: 0
COSTCO COMPANIES A/R (Y/E 8-31-98) Proj: P1826SEA98 Job: 98SEA2097 File: DU2097A.;8
Merrill/Seattle [phone] Page Dim: 8.250N X 10.750NCopy Dim: 38. X 54.3
COSTCO COMPANIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in thousands)
52 Weeks 52 Weeks 52 Weeks
Ended Ended Ended
August 30, August 31, September 1,
1998 1997 1996
CASH FLOWS FROM OPERATING ACTIVITIES
Net income ...................................... $459,842 $ 312,197 $ 248,793
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization ........................ 196,315 181,759 161,632
Accretion of discount on zero coupon notes ............... 15,875 567 —
Net (gain) loss on sale of property and equipment and other . . (3,459) (602) 3,494
Provision for asset impairments ........................ 5,629 65,000 —
Increase (decrease) in deferred income taxes .............. 20,420 (4,322) (4,520)
Change in receivables, other current assets, accrued and other
current liabilities ................................. 60,315 66,303 105,156
Increase in merchandise inventories ..................... (255,140) (189,323) (82,411)
Increase (decrease) in accounts payable .................. 243,164 162,628 (8,345)
Other .......................................... (5,351) (3,958) 2,560
Total adjustments ................................ 277,768 278,052 177,566
Net cash provided by operating activities ............... 737,610 590,249 426,359
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment .................... (571,904) (553,374) (506,782)
Proceeds from the sale of property and equipment .......... 80,698 40,946 4,665
Investment in unconsolidated joint ventures ............... (11,595) (4,750) (5,312)
Increase in short-term investments ...................... (75,549) — —
Increase in other assets and other, net ................... (31,096) (25,995) (35,820)
Net cash used in investing activities ................... (609,446) (543,173) (543,249)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments under short-term credit facilities, net ........... (24,404) (33,990) (14,354)
Net proceeds from issuance of long-term debt ............. 9,928 461,035 141,851
Repayments of long-term debt ......................... (9,307) (471,791) (3,270)
Changes in bank overdraft ........................... (3,321) (7,244) 9,835
Proceeds from minority interests ....................... 19,580 15,119 21,832
Exercise of stock options ............................. 74,115 62,015 17,855
Net cash provided by financing activities ................ 66,591 25,144 173,749
EFFECT OF EXCHANGE RATE CHANGES ON CASH ..... (8,289) 1,333 (592)
Net increase in cash and cash equivalents ................ 186,466 73,553 56,267
CASH AND CASH EQUIVALENTS BEGINNING OF YEAR . . 175,508 101,955 45,688
CASH AND CASH EQUIVALENTS END OF YEAR ........ $361,974 $ 175,508 $ 101,955
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION:
Cash paid during the year for:
Interest (excludes amounts capitalized and paid for redemption
premiums) ..................................... $ 29,191 $ 76,233 $ 65,752
Income taxes ..................................... $257,352 $ 195,241 $ 163,004
The accompanying notes are an integral part of these financial statements.
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9 C Cs: 24104