Kohl's 2012 Annual Report Download - page 25

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25
Key financial ratio calculations.
The following table reconciles net cash provided by operating activities (a GAAP measure) to free cash flow (a non-
GAAP measure).
2012 2011 2010
(Dollars in Millions)
Net cash provided by operating activities ....................................... $ 1,265 $ 2,139 $ 1,750
Acquisition of property & equipment.............................................. (785)(927)(801)
Capital lease & financing obligation payments............................... (111)(91)(84)
Proceeds from financing obligations............................................... 12 14 27
Free cash flow.................................................................................. $ 381 $ 1,135 $ 892
The following table includes our ROI and return on assets (the most comparable GAAP measure) calculations:
2012 2011 2010
(Dollars in Millions)
Net income...................................................................................... $ 986 $ 1,167 $ 1,120
Net interest...................................................................................... 329 299 304
Provision for income taxes.............................................................. 575 692 668
Depreciation and amortization........................................................ 833 778 750
Rent expense ................................................................................... 265 265 264
EBITDAR ....................................................................................... $ 2,988 $ 3,201 $ 3,106
Average: (a)
Total assets............................................................................... $ 14,266 $ 14,434 $ 15,090
Cash equivalents and long-term investments (b) ........................... (677) (1,421)(2,478)
Deferred tax and other assets................................................... (126) (124)(115)
Accumulated depreciation and amortization ........................... 4,943 4,473 3,980
Accounts payable..................................................................... (1,622) (1,439)(1,441)
Accrued liabilities.................................................................... (1,079) (1,068)(995)
Other long-term liabilities........................................................ (478) (458)(413)
Capitalized rent (c).............................................................................................. 2,573 2,598 2,546
Gross Investment (“AGI”) .............................................................. $ 17,800 $ 16,995 $ 16,174
Return on Assets (“ROA”) (d).................................................................... 6.9% 8.1% 7.4%
Return on Gross Investment (“ROI”) (e).............................................. 16.8% 18.8% 19.2%
(a) Represents average of 5 most recent quarter end balances
(b) Represents excess cash not required for operations
(c) Represents 10 times store rent and 5 times equipment/other rent
(d) Net income divided by average total assets
(e) EBITDAR divided by Gross Investment