Costco 2010 Annual Report Download - page 82

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Note 12—Segment Reporting
The Company and its subsidiaries are principally engaged in the operation of membership warehouses
in the United States, Canada, the United Kingdom, Japan, Australia, through majority-owned
subsidiaries in Taiwan and Korea, and through a 50%-owned joint-venture in Mexico. The Company’s
reportable segments are largely based on management’s organization of the operating segments for
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. The material accounting policies of the
segments are the same as those described in Note 1. All material inter-segment net sales and
expenses have been eliminated in computing total revenue and operating income.
United States
Operations
Canadian
Operations
Other
International
Operations Total
Year Ended August 29, 2010
Total revenue .......................... $59,624 $12,051 $6,271 $77,946
Operating income ....................... 1,310 547 220 2,077
Depreciation and amortization ............. 625 107 63 795
Capital expenditures, net ................. 804 162 89 1,055
Property and equipment, net .............. 8,709 1,474 1,131 11,314
Total assets ............................ 18,247 3,147 2,421 23,815
Total equity ............................ 7,784 1,752 1,394 10,930
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
Total equity ............................ 7,458 1,470 1,176 10,104
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
Total equity ............................ 6,882 1,292 1,100 9,274
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.
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