Costco 2001 Annual Report Download - page 28

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COSTCO WHOLESALE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(dollars in thousands, except per share data)
Note 1—Summary of Significant Accounting Policies (Continued)
Net Income Per Common and Common Equivalent Share
The following data show the amounts used in computing earnings per share and the effect on income
and the weighted average number of shares of dilutive potential common stock.
52 Weeks 53 Weeks 52 Weeks
Ended Ended Ended
September 2, September 3, August 29,
2001 2000 1999
Net income available to common stockholders
used in basic EPS .................... $602,089 $631,437 $397,298
Interest on convertible bonds, net of tax ...... 9,992 9,772 9,640
Net income available to common stockholders
after assumed conversions of dilutive
securities ........................... $612,081 $641,209 $406,938
Weighted average number of common shares
used in Basic EPS (000’s) ............... 449,631 446,255 439,253
Stock options (000’s) .................... 6,851 10,135 11,890
Conversion of convertible bonds (000’s) ...... 19,345 19,347 19,977
Weighted number of common shares and
dilutive Potential common stock used in
diluted EPS (000’s) ................... 475,827 475,737 471,120
The diluted share base calculation for fiscal years ended September 2, 2001, September 3, 2000 and
August 29, 1999 excludes 7,108,000, 3,659,000 and 4,797,000 stock options outstanding, respectively. These
options are excluded due to their anti-dilutive effect as a result of their exercise prices being greater than
the average market price of the common shares during those fiscal years.
The Company’s stock repurchase program that was authorized by the Board of Directors to repur-
chase up to $500,000 of Costco Common Stock over a three-year period, commencing on November 5,
1998, has expired. Under the program, the Company could repurchase shares from time to time in the
open market or in private transactions as market conditions warranted. The repurchased shares would
constitute authorized, but unissued shares and would be used for general corporate purposes including
stock option grants under stock option programs. As of September 3, 2000, the Company had repurchased
3.13 million shares of common stock at an average price of $31.96 per share, totaling approximately
$99,946 (excluding commissions). The Company did not acquire any additional shares under this program
subsequent to fiscal 2000.
Supplemental Disclosure of Significant Non-Cash Activities
Fiscal 2001 Non-Cash Activities
• None.
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