How Will The Initiative Affect Cash Flow

affected by their notes fall down. Free change emanate as net cash provided by operating activities in a Period minus payments for property and equipment made in that period. Netto stores generated positive excess cash prey of $10.9 cardinal, $14.1 billion and$11.6 billion for the years ended January 31, 2011, 2010 and 2009, respectively.
The decline in free cash flow during fiscal 2011 as compared to fiscal 2010
is principally due to our growingd investment in inventory, partially offset
by an increase in accounts payable. The increase in free cash flow in fiscal
2010 as compared to fiscal 2009 resulted primarily from improved operating
results and comparatively low inventory levels at January 31, 2010.
Free cash flow is considered a non-GAAP financial pulse. Management
believes, however, that free cash flow, which standards our ability to generate
cash from our business operations, is an important financial measure for
practise in evaluating the Companys financial exertion. Free cash flow
should be considered in addition to, rather than as a transfigure for, income
from continuing operations as a measure of our performance and net
cash provided by operating activities as a measure of our liquidity.




Additionally, our definition of free cash flow is limited, in that it does not
support residual cash flows available for discretionary expenditures due
to the fact that the measure does not deduct the payments required for
debt service and other contractual obligations or payments made for
business acquisitions. Therefore, we believe it is important to lieu free
cash flow as a measure that provides accessory information to our
entire statement of cash flows.
Although other companies draw their free cash flow, numerous methods
may exist for collusive a companys free cash flow. As a result, the method
used by our management to calculate free cash flow may differ from the
methods other companies use to calculate their free cash flow. We urge
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