Costco 2010 Annual Report Download - page 35

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The effect of exchange rate changes, increased cash by $11 in 2010, compared to a decrease of $14
in 2009. This increase was primarily due to the strengthening of foreign currencies, primarily in
Canada, Korea, and Japan during 2010.
Dividends
In April 2010, our Board of Directors increased our quarterly cash dividend from $0.18 to $0.205 per
share. Our quarterly cash dividends paid in 2010 totaled $0.77 per share, as compared to $0.68 per
share in 2009.
Contractual Obligations
Our commitments at year-end to make future payments under contractual obligations were as follows,
as of August 29, 2010:
Payments Due by Fiscal Year
Contractual obligations 2011 2012 to 2013 2014 to 2015
2016 and
thereafter Total
Purchase obligations
(merchandise)(1) .................. $4,492 $ 1 $ — $ — $ 4,493
Long-term debt(2) ................... 111 1,073 126 1,379 2,689
Operating leases(3) .................. 162 312 282 1,572 2,328
Purchase obligations (property,
equipment, services and other)(4) .... 246 63 — — 309
Construction commitments ............ 186 — — — 186
Capital lease obligations(2) ........... 10 20 22 256 308
Other(5) ........................... 6 4 2 26 38
Total .......................... $5,213 $1,473 $432 $3,233 $10,351
(1) Includes open merchandise purchase orders.
(2) Includes contractual interest payments.
(3) Operating lease obligations exclude amounts commonly referred to as common area
maintenance, taxes, and insurance and have been reduced by $173 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 $26 in asset retirement obligations, $9 in deferred compensation obligations and
includes $3 of current unrecognized tax benefits relating to uncertain tax positions. The total
amount excludes $38 of noncurrent unrecognized tax benefits due to uncertainty regarding the
timing of future cash payments.
Expansion Plans
Our primary requirement for capital is the financing of land, buildings, and equipment costs for new and
remodeled warehouses. To a lesser extent, capital is also required for initial warehouse operations and
working capital. While there can be no assurance that current expectations will be realized and plans
are subject to change upon further review, it is our current intention to spend approximately $1,600
during fiscal 2011 for real estate, construction, remodeling, and equipment for warehouses and related
operations. These expenditures are expected to be financed with a combination of cash provided from
operations and existing cash and cash equivalents and short-term investments.
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