Costco 2009 Annual Report Download - page 75

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Note 6—Stockholders’ Equity
Dividends
In 2009, the Company paid quarterly cash dividends totaling $0.68 per share. In 2008 and 2007, the
Company paid quarterly cash dividends totaling $0.61 and $0.55 per share, respectively. The
Company’s current quarterly dividend rate is $0.18 per share or $0.72 per share on an annualized
basis.
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 2009, 2008, and 2007 is summarized in the following
table:
Shares
Repurchased
(000’s)
Average
Price per
Share Total Cost
2009 ......................................... 895 $63.84 $ 57
2008 ......................................... 13,812 64.22 887
2007 ......................................... 36,390 54.39 1,979
These amounts differ from the stock repurchase balances in the consolidated statements of cash flows
to the extent that repurchases 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 2009
are detailed below:
Date Authorized
Amount
Authorized
Amount
Repurchased
Amount
Remaining
Prior to September 2007 ....................... $4,500 $4,500 $ —
September 2007 (expires in August 2010) ........ 300 298 2
November 2007 (expires in November 2010) ...... 1,000 — 1,000
July 2008 (expires in July 2011) ................. 1,000 — 1,000
Total ................................... $6,800 $4,798 $2,002
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.
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