Consolidated Statements of Cash Flows

Years Ended December 31,

In millions

1997

1996

1995


Cash flows from operating activities:

Net earnings (loss)

$37.7

$176.6

($572.8)

Adjustments required to reconcile net earnings (loss)

      to net cash (used in) provided by operating activities:

Merger, restructuring and other non-recurring charges

486.7

235.0

982.4

Depreciation and amortization

226.2

246.2

327.7

Gain on sale of securities

(30.0)

(121.4)

--

Minority interest in net earnings

--

22.2

38.4

Income (loss) from unconsolidated subsidiary

0.3

(4.5)

--

Deferred income taxes and other non-cash items

(195.1)

115.1

(89.7)

Net operating loss carryforwards utilized

69.4

15.3

18.8

Extraordinary item, loss on early retirement of debt, net of tax

17.1

--

--

Change in assets and liabilities, excluding acquisitions and dispositions:

(Increase) decrease in accounts receivable, net

(80.6)

4.6

(59.0)

(Increase) in inventories

(531.0)

(233.6)

(349.7)

(Increase) in other current assets, deferred charges and other
      assets

(66.7)

(93.5)

(32.9)

Increase in accounts payable

21.3

337.9

205.5

(Decrease) increase in accrued expenses

(224.4)

(219.9)

54.6

(Decrease) in Federal incomes taxes payable and other liabilities

(6.1)

(16.9)

(63.3)


Net cash (used in) provided by operating activities

(275.2)

463.1

460.0


Cash flows from investing activities:

Additions to property and equipment

(312.1)

(297.5)

(528.9)

Proceeds from sale of businesses and other property and
      equipment

192.7

240.4

423.6

Proceeds from initial and secondary public offerings of Linens 'n
      Things, Inc.

147.4

189.4

--

Proceeds from sale of investments

162.3

296.4

--

Acquisitions, net of cash

--

(373.9)

(4.8)


Net cash provided by (used in) investing activities

190.3

54.8

(110.1)


Cash flows from financing activities:

Dividends paid or payable

(74.6)

(132.3)

(240.0)

Additions to (reductions in) short-term borrowings

466.4

(52.0)

(148.0)

Increase (decrease) in book overdrafts

144.3

(158.2)

74.8

Repurchase of common stock

--

(11.2)

(39.1)

(Reductions in) additions to long-term debt

(911.7)

131.4

21.6

Proceeds from exercise of stock options and other issuances of
      stock

159.5

45.6

14.0

Other

(2.3)

(14.6)

(8.9)


Net cash used in financing activities

(218.4)

(191.3)

(325.6)


Net (decrease) increase in cash and cash equivalents

(303.3)

326.6

24.3

Cash and cash equivalents at beginning of year

471.8

145.2

120.9


Cash and cash equivalents at end of year

$168.5

$471.8

$145.2


See accompanying notes to consolidated financial statements

 

Please note that the 1997 Annual Report Financial Statements do not include
Arbor Drugs, Inc., which was subsequently acquired on March 31, 1998.


copyright 1998 CVS/pharmacy, Inc.

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