This excerpt taken from the CVS 8-K filed Feb 25, 2005.
(Revised - Unaudited)
Fiscal Year Ended
In millions
January 1,
2005
(52 weeks)
January 3,
2004
(53 weeks)
Reconciliation of net earnings to net cash provided by operating activities:
Net earnings
$
918.8
$
847.3
Adjustments required to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization
496.8
341.7
Deferred income taxes and other noncash items
(23.6
)
41.1
Change in operating assets and liabilities, providing/(requiring) cash, net of effects from acquisitions:
Accounts receivable, net
(48.4
)
(311.1
)
Inventories
(509.8
)
2.1
Other current assets
35.7
(3.0
)
Other assets
8.5
(0.4
)
Accounts payable
109.4
(41.5
)
Accrued expenses
(144.2
)
116.5
Other long-term liabilities
71.0
(23.8
)
Net cash provided by operating activities
914.2
968.9
(1)
During the fourth quarter of fiscal 2004, the Company changed its method of reporting cash flows under Statement of Financial Accounting Standards (“SFAS”) No. 95,
“Statement of Cash Flows,” from the indirect method to the direct method. As part of a continuing effort to make its consolidated financial statements more transparent, the Company believes that the direct method, which is the preferred
method under SFAS No. 95, will provide additional useful information about its business to investors and other interested parties. In connection with implementing this change, the consolidated statements of cash flows for all prior periods presented
have been changed to the direct method. This change does not affect the consolidated statements of operations, consolidated balance sheets or consolidated statements of shareholders’ equity.
