(Millions of Dollars)	1998	1997	1996
Operating Activities
Net earnings before extraordinary charges	$   962	$   802	$   474
Reconciliation to cash flow:
Depreciation and amortization	780	693	650
Deferred tax provision	(11)	(63)	(107)
Other noncash items affecting earnings	70	43	11
Changes in operating accounts providing/(requiring) cash:
Retained securitized receivables	(56)	(235)	(210)
Sold securitized receivables	400	400	–
Maturity of sold securitized receivables	(400)	–	–
Merchandise inventories	(198)	(220)	(13)
Accounts payable	336	199	281
Accrued liabilities	75	182	275
Income taxes payable	15	62	55
Other	(111)	(68)	(42)
Cash flow provided by operations	1,862	1,795	1,458
Investing Activities
Expenditures for property and equipment	(1,657)	(1,354)	(1,301)
Proceeds from disposals of property and equipment	107	123	103
Acquisition of subsidiaries, net of cash received	(100)	–	–
Other	(5)	–	–
Cash flow required for investing activities	(1,655)	(1,231)	(1,198)
Net financing sources	207	564	260
Financing Activities
Decrease in notes payable, net	(305)	(127)	(416)
Additions to long-term debt	600	375	700
Reductions of long-term debt	(343)	(690)	(414)
Principal payments received on loan to ESOP	8	22	40
Dividends paid	(178)	(165)	(155)
Other	55	31	11
Cash flow used for financing activities	(163)	(554)	(234)
Net increase in cash and cash equivalents	44	10	26
Cash and cash equivalents at beginning of year	211	201	175
Cash and Cash Equivalents at End of Year	$   255	$   211	$   201
Amounts presented herein are on a cash basis and therefore may differ from those shown in other sections of this Annual Report. Cash paid for income taxes was $564 million, $454 million and $352 million during 1998, 1997 and 1996, respectively. Cash paid for interest (including interest capitalized) was $393 million, $485 million and $434 million during 1998, 1997 and 1996, respectively.
See Notes to Consolidated Financial Statements.

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