Costco 2007 Annual Report Download - page 35

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Dividends
In April 2007, our Board of Directors increased our quarterly cash dividend from $0.13 to $0.145 per
share or $0.58 on an annualized basis. Our quarterly cash dividends paid in fiscal 2007 totaled $0.55
per share. In fiscal 2006, we paid quarterly cash dividends totaling $0.49 per share.
Contractual Obligations
Our commitments at fiscal year end to make future payments under contractual obligations were as
follows, as of September 2, 2007 (amounts in thousands):
Payments Due by Fiscal Year
Contractual obligations 2008 2009 to 2010 2011 to 2012
2013 and
thereafter Total
Purchase obligations
(merchandise)(1) ..... $3,626,627 $ 1,357 $ — $ — $3,627,984
Long-term debt(2) ...... 173,160 277,652 1,116,400 1,470,117 3,037,329
Operating leases(3) ..... 137,225 242,461 209,723 1,305,035 1,894,444
Purchase obligations
(equipment, services
and other)(4) ........ 350,108 40,517 1,089 — 391,714
Construction
Commitments ........ 329,941 — — — 329,941
Capital lease obligations
and other(2) ......... 3,990 1,937 686 5,193 11,806
Other(5) .............. 2,168 3,936 2,546 4,928 13,578
Total ............. $4,623,219 $567,860 $1,330,444 $2,785,273 $9,306,796
(1) Includes open merchandise purchase orders.
(2) Amounts include contractual interest payments.
(3) Operating lease obligations exclude amounts commonly referred to as common area
maintenance, taxes and insurance and have been reduced by $149,407 to reflect sub-lease
income.
(4) The amounts exclude certain services negotiated at the individual warehouse or regional level that
are not significant and generally contain clauses allowing for cancellation without significant
penalty.
(5) Consists of asset retirement and deferred compensation obligations.
Expansion Plans
Our primary requirement for capital is the domestic and international financing of land, building and
equipment costs for new and remodeled warehouses, plus the costs of initial warehouse operations
and working capital requirements.
While there can be no assurance that current expectations will be realized and plans are subject to
change upon further review, it is management’s current intention to spend approximately $1.6 billion to
$1.8 billion during fiscal 2008 for real estate, construction, remodeling and equipment for warehouse
clubs and related operations. These expenditures are expected to be financed with a combination of
cash provided from operations and the use of cash and cash equivalents and short-term investments.
Plans for the United States and Canada during fiscal 2008 are to open approximately 38 to 42 new
warehouses, inclusive of 8 to 10 relocations to larger and better-located facilities. We expect to
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