Costco 2008 Annual Report Download - page 87

52 Weeks Ended September 2, 2007
First
Quarter
12 Weeks
Second
Quarter
12 Weeks
Third
Quarter
12 Weeks
Fourth
Quarter
16 Weeks
Total
52 Weeks
REVENUE
Net sales .................... $13,852,321 $14,804,696(b) $14,341,520(b) $20,089,064 $63,087,601
Membership fees ............. 299,303 307,320 317,735 388,196(e) 1,312,554
Total revenue .............. 14,151,624 15,112,016 14,659,255 20,477,260 64,400,155
OPERATING EXPENSES
Merchandise costs ............ 12,388,958 13,251,752(c) 12,877,587(c) 17,931,405 56,449,702
Selling, general and
administrative .............. 1,382,467 1,487,991(d) 1,432,650 1,969,988 6,273,096
Preopening expenses ......... 22,727 7,486 9,022 15,928 55,163
Provision for impaired assets and
closing costs, net ........... 4,332 3,459 931 4,886 13,608
Operating income ........... 353,140 361,328 339,065 555,053 1,608,586
OTHER INCOME (EXPENSE)
Interest expense .............. (2,140) (3,620) (26,016) (32,303) (64,079)
Interest income and other ...... 27,111 36,526 42,838 59,009 165,484
INCOME BEFORE INCOME
TAXES ...................... 378,111 394,234 355,887 581,759 1,709,991
Provision for income taxes ...... 141,225 144,756 131,901 209,337 627,219
NET INCOME .................. $ 236,886 $ 249,478 $ 223,986 $ 372,422 $ 1,082,772
NET INCOME PER COMMON
SHARE:
Basic ....................... $ 0.52 $ 0.55 $ 0.50 $ 0.85 $ 2.42
Diluted ...................... $ 0.51 $ 0.54 $ 0.49 $ 0.83 $ 2.37
Shares used in calculation (000’s)
Basic ....................... 458,873 450,901 445,471 438,449 447,659
Diluted ...................... 467,836 461,575 455,889 448,733 457,641
Dividends per share ............. $ 0.130 $ 0.130 $ 0.145 $ 0.145 $ 0.55
(b) Includes a $224,384 and $228,169 decrease to net sales in the second and third quarter of 2007, respectively, to reflect
a change in the reserve for estimated sales returns (See Note 1- Revenue Recognition).
(c) Includes a $176,313 and $181,977 decrease to merchandise costs in the second and third quarter of 2007,
respectively, to reflect a change in the reserve for estimated sales returns (See Note 1- Revenue Recognition).
(d) Includes a $46,215 charge related to protecting employees from adverse tax consequences resulting from the
Company’s internal review of its historical stock option grant practices in 2006 of certain stock options (See Note 6).
(e) Includes a $56,183 decrease to membership fees to adjust for a change in method of applying an accounting principle
and for cumulative timing errors related to the calculation of deferred membership income (See Note 1- Revenue
Recognition).
Note 14—Subsequent Events
Subsequent to the end of 2008, on September 18, 2008, one of the Company’s government agency
money market funds, The Reserve U.S. Government Fund announced that the proceeds from a
redemption request for this fund would not be transmitted to an investor for a period of up to seven
calendar days after the receipt of the redemption request. On September 22, 2008, the SEC granted a
temporary order suspending shareholder redemptions as of September 17, 2008 and requiring The
Reserve to create a plan to effect an orderly disposition, subject to supervision by the SEC. As of
October 14, 2008, the plan to effect an orderly disposition of the U.S. Government Fund has not yet been
publicly disclosed. At August 31, 2008 and October 14, 2008, the Company had $171,389 and $317,197,
respectively, invested in the U.S. Government Fund. The latest per unit net asset value reported for this
fund is $1.00.
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