Costco 2009 Annual Report Download - page 89

Note 12—Segment Reporting
The Company and its subsidiaries are principally engaged in the operation of membership warehouses
in the United States, Canada, Japan, Australia, the United Kingdom, and through majority-owned
subsidiaries in Taiwan and Korea and through a 50%-owned joint-venture in Mexico. The Company’s
reportable segments are based on management’s organization of the operating segments for making
operational decisions and assessments of financial performance, which considers geographic
locations. The investment in the Mexico joint-venture is only included in total assets under United
States Operations in the table below, as it is accounted for under the equity method and its operations
are not consolidated in the Company’s financial statements.
United States
Operations(a)
Canadian
Operations
Other
International
Operations Total
Year Ended August 30, 2009
Total revenue ........................... $56,548 $ 9,737 $5,137 $71,422
Operating income ....................... 1,273 354 150 1,777
Depreciation and amortization ............. 589 90 49 728
Capital expenditures, net ................. 904 135 211 1,250
Property and equipment, net ............... 8,415 1,394 1,091 10,900
Total assets ............................ 17,228 2,641 2,110 21,979
Net assets ............................. 7,458 1,470 1,090 10,018
Year Ended August 31, 2008
Total revenue ........................... $56,903 $10,528 $5,052 $72,483
Operating income ....................... 1,393 420 156 1,969
Depreciation and amortization ............. 511 92 50 653
Capital expenditures, net ................. 1,190 246 163 1,599
Property and equipment, net ............... 8,016 1,371 968 10,355
Total assets ............................ 16,345 2,477 1,860 20,682
Net assets ............................. 6,882 1,292 1,018 9,192
Year Ended September 2, 2007
Total revenue ........................... $51,532 $ 8,724 $4,145 $64,401
Operating income ....................... 1,217 287(b) 105 1,609
Depreciation and amortization ............. 449 73 44 566
Capital expenditures, net ................. 1,105 207 74 1,386
Property and equipment, net ............... 7,357 1,237 926 9,520
Total assets ............................ 15,577 2,280 1,750 19,607
Net assets ............................. 6,451 1,157 1,015 8,623
The material accounting policies of the segments are the same as those described in Note 1. All inter-
segment net sales and expenses are immaterial and have been eliminated in computing total revenue
and operating income.
(a) Certain home office operating expenses are incurred on behalf of the Company’s Canadian and
other international operations, but are included in the United States operations above because
those costs are not allocated internally and generally come under the responsibility of the
Company’s United States management team.
(b) Includes a $39 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 7).
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