Costco 2013 Annual Report Download - page 34

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long-term debt, largely the issuance of $3,500 in aggregate principal amount of Senior Notes. The majority
of these proceeds were used to fund the special cash dividend. Additionally, cash used for repurchases of
our common stock was minimal in 2013. In 2012, cash used also included the repayment of long-term debt
and purchase of the non-controlling interest in Costco Mexico.
The effect of changes in foreign-exchange rates decreased cash and cash equivalents by $114 in 2013,
compared to $21 in 2012. This was predominately due to the weakening of the Canadian dollar and Japanese
yen.
Management believes that our cash position and operating cash flows will be sufficient to meet our capital
requirements for the foreseeable future. We have not provided for U.S. deferred taxes on cumulative
undistributed earnings of certain non-U.S. consolidated subsidiaries as we deem such earnings to be
indefinitely reinvested. We believe that our U.S. current and projected asset position is sufficient to meet
our U.S. liquidity requirements and we have no current plans to repatriate the cash, cash equivalents, and
short-term investments held by these subsidiaries for use in the U.S. At September 1, 2013, cash and cash
equivalents and short-term investments totaling $2,320 were held by these non-U.S. consolidated
subsidiaries.
Dividends
In April 2013, our Board of Directors increased our quarterly cash dividend from $0.275 to $0.31 per share.
Additionally, in November 2012, the Board of Directors declared a special cash dividend of $7.00 per share.
This dividend was paid in December 2012 in the amount of $3,049. Our cash dividends paid in 2013 totaled
$8.17 per share as compared to $1.03 per share in 2012.
Contractual Obligations
As of September 1, 2013, our commitments to make future payments under contractual obligations were as
follows:
Payments Due by Fiscal Year
Contractual obligations 2014 2015 to 2016 2017 to 2018 2019 and thereafter Total
Purchase obligations (merchandise)(1) . . . . . . . . . $5,573 $ 1 $ — $ — $ 5,574
Long-term debt(2) . . . . . . . . . . . . . . . . . . . . . . . . . 106 1,510 2,426 1,440 5,482
Operating leases (3) . . . . . . . . . . . . . . . . . . . . . . . 189 342 313 1,753 2,597
Purchase obligations (property, equipment,
services and other)(4). . . . . . . . . . . . . . . . . . . . . 339 76 — — 415
Construction commitments. . . . . . . . . . . . . . . . . . 465 — — — 465
Capital lease obligations(2) . . . . . . . . . . . . . . . . . . 17 33 32 338 420
Other(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 21 24 50 109
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,703 $1,983 $2,795 $3,581 $15,062
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(1) Includes only 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
$150 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 $50 in asset retirement obligations, $55 in deferred compensation obligations, and $4 of current unrecognized tax
benefits relating to uncertain tax positions. The total amount excludes $215 of deferred compensation, $53 of non-current
unrecognized tax benefits, and $24 of other obligations due to uncertainty regarding the timing of future cash payments.