Exhibit 99.2
FEDERATED DEPARTMENT STORES, INC.
Consolidated Statements of Cash Flows
(Unaudited)
(millions)
39 Weeks Ended 39 Weeks Ended
October 30, 1999 October 31, 1998
Cash flows from operating activities:
Net income $ 347 $ 254
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 493 448
Amortization of intangible assets 57 20
Amortization of financing costs 5 6
Amortization of unearned restricted stock 1 1
Loss on early extinguishment of debt - 23
Changes in assets and liabilities:
Decrease in accounts receivable 109 335
Increase in merchandise inventories (1,317) (1,083)
Increase in supplies and prepaid expenses (67) (5)
Increase in other assets not separately
identified (18) (13)
Increase in accounts payable and accrued
liabilities not separately identified 741 443
Decrease in current income taxes (64) (51)
Increase in deferred income taxes 17 38
Increase (decrease) in other liabilities
not separately identified 3 (7)
Net cash provided by operating activities 307 409
Cash flows from investing activities:
Acquisition of Fingerhut Companies, Inc.,
net of cash acquired (1,539) -
Purchase of property and equipment (470) (377)
Capitalized software (34) -
Investments in affiliated companies (90) -
Disposition of property and equipment 32 28
Decrease in notes receivable - 200
Net cash used by investing activities (2,101) (149)
Cash flows from financing activities:
Debt issued 2,055 650
Financing costs (10) -
Debt repaid (158) (563)
Increase in outstanding checks 140 162
Acquisition of treasury stock - (531)
Issuance of common stock 55 44
Net cash provided (used) by
financing activities 2,082 (238)
FEDERATED DEPARTMENT STORES, INC.
Consolidated Statements of Cash Flows
(Unaudited)
(millions)
39 Weeks Ended 39 Weeks Ended
October 30, 1999 October 31, 1998
Net increase in cash $ 288 $ 22
Cash at beginning of period 307 142
Cash at end of period $ 595 $ 164
Supplemental cash flow information:
Interest paid $ 259 $ 235
Interest received 8 13
Income taxes paid (net of refunds received) 278 206
Schedule of noncash investing and
financing activities:
Debt assumed in acquisition 125 -
Equity issued in acquisition 12 -
Consolidation of net assets and debt of
previously unconsolidated subsidiary 1,132 -
Conversion of long-term debt to common stock - 344