52 Weeks Ended 52 Weeks Ended 53 Weeks Ended September 1, 2019 September 2, 2018 September 3, 2017 REVENUE Net sales $149, 351 $126,172 Membership fees $138,434 3,142 141,576 2,853 3,352 152, 703 Total revenue 129,025 OPERATING EXPENSES Merchandise costs 132,886 123,152 111,882 14,994 13,876 12,950 86 68 82 Selling, general and administrative Preopening expenses Operating income OTHER INCOME (EXPENSE) 4,737 4,480 4,111 Interest expense (150) (159) (134) Interest income and other, net 178 121 62 INCOME BEFORE INCOME TAXES 4,765 4,442 4,039 Provision for income taxes 1,061 1,263 1,325 3,704 3,179 2,714 Net income including noncontrolling interests Net income attributable to noncontrolling (45) (45) (35) interests NET INCOME ATTRIBUTABLE TO COSTCO $3,659 $3,134 $2,679 NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO: Basic $8.32 $7.15 $6.11 Diluted $8.26 $7.09 $6.08 Shares used in calculation (000?s) Basic 439,755 438,515 438,437 Diluted 442,923 441,834 440,937 CONSOLIDATED STATEMENTS OF INCOME 52 Weeks Ended 52 Weeks Ended 52 Weeks Ended August 30, 2020 September 1, 2019 September 2, 2018 REVENUE Net sales $ $ $ Membership fees Total revenue 163,220 3,541 166,761 149,351 3,352 152,703 138,434 3,142 141,576 OPERATING EXPENSES 144,939 16,332 132,886 14,994 123,152 13,876 55 86 68 Merchandise costs Selling, general and administrative Preopening expenses Operating income OTHER INCOME (EXPENSE) Interest expens Interest income and other, net 5,435 4,737 4,480 (159) (160) 92 (150) 178 121 INCOME BEFORE INCOME TAXES Provision for income taxes Net income including noncontrolling interests Net income attributable to noncontrolling interests NET INCOME ATTRIBUTABLE TO COSTCO 5,367 1,308 4,059 (57) 4,002 4,765 1,061 3,704 (45) 3,659 4,442 1,263 3,179 (45) 3,134 $ $ $ NET INCOME PER COMMON SHARE ATTRIBUTABLE TO Basic 9.05 8.32 7.15 $ $ $ $ $ $ Diluted 9.02 8.26 7.09 Shares used in calculation (000's) Basic 442,297 443,901 439,755 442,923 438,515 441,834 Diluted Complete the following additional ratios with comments: A. Account Receivable Turnover B. Inventory Turnover C. Days' Sales in Inventory D. Total Liabilities to Total Assets Ratios E. Profit Margin Ratio F. Gross Margin Ratio (If Applicable) September 1, 2019 September 2, 2018 ASSETS CURRENT ASSETS Cash and cash equivalents $8,384 $6,055 Short-term investments 1,060 1,204 Receivables, net 1,535 1,669 Merchandise inventories 11,395 11,040 Other current assets 1,111 321 Total current assets 23,485 20,289 PROPERTY AND EQUIPMENT Land 6,417 6,193 17,136 16,107 Buildings and improvements Equipment and fixtures 7,274 7,801 1,272 Construction in progress 1,140 32,626 30,714 Less accumulated depreciation and amortization (11,736) (11,033) Net property and equipment 20,890 19,681 OTHER ASSETS 1,025 860 TOTAL ASSETS $ 45, 400 $40,830 LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable $11,679 $11,237 Accrued salaries and benefits 3,176 2,994 Accrued member rewards 1,180 1,057 1,624 Deferred membership fees Current portion of long-term debt Other current liabilities 1,711 1,699 3,792 90 2,924 Total current liabilities 23, 237 19,926 LONG-TERM DEBT, excluding current portion 5, 124 6,487 OTHER LIABILITIES 1,455 1, 314 Total liabilities 29,816 27,727 COMMITMENTS AND CONTINGENCIES EQUITY Preferred stock $0.01 par value; 100,000,000 0 0 shares authorized; no shares issued and outstanding Common stock $0.01 par value; 900,000,000 shares authorized; 439,625,000 and 438, 189,000 4 4 shares issued and outstanding 6,107 6,417 (1,436) (1,199) Additional paid-in capital Accumulated other comprehensive loss Retained earnings Total Costco stockholders? equity 10,258 7,887 12,799 15, 243 341 304 Noncontrolling interests Total equity TOTAL LIABILITIES AND EQUITY 13,103 15,584 $45,400 $40,830 CONSOLIDATED BALANCE SHEETS For the Year Ended August 30, 2020 August 30, September 1, 2020 2019 ASSETS CURRENT ASSETS Cash and cash equivalents Short-term investments $ 12,277 $ 8,384 1,028 1,060 Receivables, net 1,550 1,535 11,395 Merchandise inventories 12,242 Other current assets 1,023 28,120 1,111 23,485 Total current assets OTHER ASSETS 21,807 20,890 Property and equipment, net Operating lease right-of-use assets Other long-term assets 2,788 2,841 1,025 TOTAL ASSETS $ 55,556 $ 45,400 LIABILITIES AND EQUITY CURRENT LIABILITIES $ 14,172 3,605 11,679 3,176 1,393 Accounts payable Accrued salaries and benefits Accrued member rewards Deferred membership fees Current portion of long-term debt Other current liabilities 1,180 1,711 1,851 95 3,728 24,844 1,699 3,792 23,237 Total current liabilities OTHER LIABILITIES 5,124 7,514 2,558 Long-term debt, excluding current portion Long-term operating lease liabilities Other long-term liabilities TOTAL LIABILITIES 1,935 1,455 36,851 29,816 COMMITMENTS AND CONTINGENCIES - EQUITY Preferred stock $0.01 par value; 100,000,000 shares authoi - Common stock $0.01 par value; 900,000,000 shares authoi Additional paid-in capital Accumulated other comprehensive loss 4 4 6,698 (1,297) 12,879 18,284 6,417 (1,436) 10,258 15,243 Retained earnings Total Costco stockholders' equity Noncontrolling interests Total equity TOTAL LIABILITIES AND EQUITY 421 341 18,705 55,556 15,584 45,400 $ $