Costco 2012 Annual Report Download - page 36

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Dividends
In May 2012, our Board of Directors increased our quarterly cash dividend from $0.24 to $0.275 per
share. Our quarterly cash dividends paid in 2012 totaled $1.03 per share, as compared to $0.89 per
share in 2011.
Contractual Obligations
As of September 2, 2012, our commitments to make future payments under contractual obligations
were as follows:
Payments Due by Fiscal Year
Contractual obligations 2013 2014 to 2015 2016 to 2017
2018 and
thereafter Total
Purchase obligations (merchandise)(1) .... $6,682 $ — $ — $ — $ 6,682
Long-term debt(2) ..................... 66 131 1,266 254 1,717
Operating leases(3) ................... 189 355 320 1,883 2,747
Purchase obligations (property,
equipment, services and other)(4) ...... 271 151 6 — 428
Construction commitments ............. 372 — — — 372
Capital lease obligations(2) ............. 14 28 30 328 400
Other(5) ............................. 10 14 18 45 87
Total ............................... $7,604 $679 $1,640 $2,510 $12,433
(1) Includes open merchandise purchase orders.
(2) Includes contractual interest payments.
(3) Operating lease obligations exclude amounts for common area maintenance, taxes, and insurance and have been reduced
by $177 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 $44 in asset retirement obligations, $41 in deferred compensation obligations and $2 of current unrecognized tax
benefits relating to uncertain tax positions. The total amount excludes $206 of deferred compensation, $58 of noncurrent
unrecognized tax benefits and $20 of other obligations 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 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 $1,800 to
$2,000 during fiscal 2013 for real estate, construction, remodeling, equipment for warehouses and
related operations, and the modernization of our information systems and related activities. 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.
We plan to open 27 to 30 net new warehouses in 2013.
We opened 16 net new warehouses in 2012, including the reopening of our Tamasakai, Japan
warehouse (damaged in the March 2011 Japan earthquake) and the relocation of our Ancaster,
Ontario warehouse to a larger and better-located facility. We spent a total of $1,480 on capital
expenditures in 2012.
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