Costco 2008 Annual Report Download - page 72

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Payment of future dividends is subject to declaration by the Board of Directors. Factors considered in
determining the size of the dividends are profitability and expected capital needs of the Company. The
Company presently expects to continue to pay dividends on a quarterly basis.
Stock Repurchase Programs
The Company’s stock repurchase activity during 2008 and 2007 is summarized in the following table:
Shares
Repurchased
(000’s)
Average
Price per
Share Total Cost
2008 ..................................... 13,812 $64.22 $ 886,950
2007 ..................................... 36,390 54.39 1,979,170
These amounts differ from the stock repurchase balances in the statements of cash flows due to
repurchases that had not settled at the end of the fiscal year. Purchases are made from time-to-time as
conditions warrant in the open market or in block purchases, and pursuant to share repurchase plans
under SEC Rule 10b5-1. Repurchased shares are retired.
Amounts remaining under stock repurchase authorizations of the Board of Directors at the end of 2008
are detailed below:
Date Authorized
Amount
Authorized
Amount
Repurchased
Amount
Remaining
Prior to September 2007 ............... $4,500,000 $4,500,000 $ —
September 2007 (expires in 2010) ....... 300,000 240,586 59,414
November 2007 (expires in 2010) ........ 1,000,000 — 1,000,000
July 2008 (expires in 2011) ............. 1,000,000 — 1,000,000
Total ............................ $6,800,000 $4,740,586 $2,059,414
Comprehensive Income
Comprehensive income includes net income, plus certain other items that are recorded directly to
stockholders’ equity. Accumulated other comprehensive income reported on the Company’s
consolidated balance sheets consists of foreign currency translation adjustments and unrealized gains
and losses on short-term investments and their related tax effects.
The following table shows the components of comprehensive income, net of related tax effects:
2008 2007 2006
Unrealized gain (loss) on short-term investments ..... $ 263 $ 6,455 $ (540)
Tax (provision) benefit ........................... (68) (2,421) 210
Unrealized gain (loss) on short term investments, net of
tax.......................................... 195 4,034 (330)
Foreign currency translation adjustment and other .... (88,756) 93,678 123,642
Tax (provision) benefit on translation gain (loss) in
relation to earnings subject to repatriation ......... 3,633 (4,386) (4,088)
Comprehensive income adjustments, net ............ (84,928) 93,326 119,224
Net income .................................... 1,282,725 1,082,772 1,103,215
Total comprehensive income ...................... $1,197,797 $1,176,098 $1,222,439
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