Costco 1999 Annual Report Download - page 20

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COSTCO WHOLESALE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share data)
52 Weeks 52 Weeks 52 Weeks
Ended Ended Ended
August 29, August 30, August 31,
1999 1998 1997
REVENUE
Net sales ..................................... $26,976,453 $23,830,380 $21,484,118
Membership fees and other ....................... 479,578 439,497 390,286
Total revenue ................................ 27,456,031 24,269,877 21,874,404
OPERATING EXPENSES
Merchandise costs .............................. 24,170,199 21,379,691 19,314,485
Selling, general and administrative .................. 2,338,198 2,069,900 1,876,759
Preopening expenses ............................ 31,007 27,010 27,448
Provision for impaired assets and warehouse closing costs . 56,500 6,000 75,000
Operating income ............................ 860,127 787,276 580,712
OTHER INCOME (EXPENSE)
Interest expense ............................... (45,527) (47,535) (76,281)
Interest income and other ........................ 44,266 26,662 15,898
INCOME BEFORE INCOME TAXES AND
CUMULATIVE EFFECT OF ACCOUNTING CHANGE 858,866 766,403 520,329
Provision for income taxes ........................ 343,545 306,561 208,132
INCOME BEFORE CUMULATIVE EFFECT OF
ACCOUNTING CHANGE ....................... 515,321 459,842 312,197
Cumulative effect of accounting change, net of tax benefit
of $78,682 .................................. (118,023) — —
NET INCOME ................................. $ 397,298 $ 459,842 $ 312,197(a)
NET INCOME PER COMMON SHARE:
Basic earnings per share:
Income before cumulative effect of accounting change . . $ 2.35 $ 2.13 $ 1.51
Cumulative effect of accounting change, net of tax ...... (0.54) — —
Net Income ................................... $ 1.81 $ 2.13 $ 1.51
Diluted earnings per share:
Income before cumulative effect of accounting change . . $ 2.23 $ 2.03 $ 1.47
Cumulative effect of accounting change, net of tax ...... (0.50) — —
Net Income ................................... $ 1.73 $ 2.03 $ 1.47(a)
Shares used in calculation (000’s)
Basic ....................................... 219,626 215,506 207,379
Diluted ...................................... 235,560 231,685 224,668
Pro forma amounts assuming accounting change had been in
effect in fiscal 1998 and 1997:
Net Income ................................... $ 515,321 $ 444,451 $ 302,969
Earnings per common share - basic ................. $ 2.35 $ 2.06 $ 1.46
Earnings per common share - diluted ................ $ 2.23 $ 1.96 $ 1.43
(a) Net income and net income per common equivalent share (diluted) would have been $350,872 and
$1.64, respectively, without the effect of adopting SFAS No. 121, using 224,668 diluted shares.
The accompanying notes are an integral part of these financial statements.
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