Costco 2006 Annual Report Download - page 72

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52 Weeks Ended August 28, 2005
First
Quarter
12 Weeks
Second
Quarter
12 Weeks
Third
Quarter
12 Weeks
Fourth
Quarter
16 Weeks Total
52 Weeks
REVENUE
Net sales .................. $11,342,611 $12,415,442 $11,750,892 $16,370,125 $51,879,070
Membership fees ........... 238,059 245,499 249,787 339,811 1,073,156
Total revenue ............ 11,580,670 12,660,941 12,000,679 16,709,936 52,952,226
OPERATING EXPENSES
Merchandise costs .......... 10,132,487 11,056,064 10,503,661 14,654,749 46,346,961
Selling, general and
administrative ............ 1,134,353 1,187,986 1,168,404 1,570,596 5,061,339
Preopening expenses ....... 10,385 22,996(a) 9,475 10,374 53,230
Provision for impaired assets
and closing costs, net ...... 2,800 4,000 3,000 6,593 16,393
Operating income ......... 300,645 389,895 316,139 467,624 1,474,303
OTHER INCOME (EXPENSE)
Interest expense ............ (9,642) (8,980) (8,476) (7,339) (34,437)
Interest income and other .... 15,590 24,779 30,159 38,568 109,096
INCOME BEFORE INCOME
TAXES ................... 306,593 405,694 337,822 498,853 1,548,962
Provision for income taxes . . . 113,440 100,242(b) 128,034 144,154(c) 485,870
NET INCOME ................ $ 193,153 $ 305,452 $ 209,788 $ 354,699 $ 1,063,092
NET INCOME PER COMMON
SHARE:
Basic ..................... $ 0.41 $ 0.64 $ 0.44 $ 0.74 $ 2.24
Diluted .................... $ 0.40 $ 0.62 $ 0.43 $ 0.73 $ 2.18
Shares used in calculation (000’s)
Basic ..................... 465,869 474,221 478,248 476,636 473,945
Diluted .................... 489,284 493,700 493,282 491,392 492,035
Dividends per share ........... $ 0.100 $ 0.100 $ 0.115 $ 0.115 $ 0.430
(a) Includes a cumulative pre-tax, non-cash charge of $15,999 related to a correction of the Company’s method
of accounting for ground leases (entered into over the past twenty years) that did not require rental payments
during the period of construction.
(b) Includes a $52,064 income tax benefit resulting primarily from the settlement of a transfer pricing dispute
between the United States and Canada (covering the years 1996-2003). An additional benefit of $2,091 was
booked in the fourth quarter bringing the cumulative benefit to $54,155.
(c) Includes a $20,592 net tax benefit with respect to unremitted earnings and a tax benefit of $13,895 associated
with lower state tax rates.
Certain reclassifications have been made to conform to the presentation adopted in the fourth quarter
of fiscal 2006.
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