COSTCO WHOLESALE CORPORATION CONSOLIDATED BALANCE SHEETS (amounts in millions, except par value and share data) September 3, 2017 August 28, 2016 $ 4,546 1,233 1,432 9,834 1,350 1,252 8,969 ASSETS CURRENT ASSETS Cash and cash equivalents ........... Short-term investments ............. Receivables, net ............ Merchandise inventories ...... Other current assets... Total current assets PROPERTY AND EQUIPMENT Land .. Buildings and improvements... Equipment and fixtures Construction in progress... 272 268 17,317 15.218 5,690 15,127 6,681 843 28,341 (10,180) 18,161 869 36,347 5,395 13,994 6,077 701 26.167 (9,124) 17.043 902 $ $ 33,163 $ Less accumulated depreciation and amortization ..... Net property and equipment. OTHER ASSETS ..... TOTAL ASSETS. LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable ... Current portion of long-term debt ........ Accrued salaries and benefits ..... Accrued member rewards Deferred membership fees ..... Other current liabilities ........ Total current liabilities......... LONG-TERM DEBT, excluding current portion OTHER LIABILITIES .... Total liabilities ..... COMMITMENTS AND CONTINGENCIES EQUITY Preferred stock $.01 par value: 100,000,000 shares authorized: no shares issued and outstanding........... Common stock $.01 par value: 900,000,000 shares authorized: 437,204,000 and 437,524,000 shares issued and outstanding... Additional paid-in capital ............ Accumulated other comprehensive loss..... Retained earnings ..... Total Costco stockholders' equity ............. Noncontrolling interests ............... Total equity ............ ... TOTAL LIABILITIES AND EQUITY ............ 9,608 86 2,703 961 1,498 2,639 17,495 6,573 1,200 25,268 7,612 1,100 2,629 869 1,362 2,003 15,575 4,061 1,195 20,831 5,800 (1,014) 5,988 10,778 301 11,079 36,347 5,490 (1,099) 7.686 12.079 253 12,332 33,163 COSTCO WHOLESALE CORPORATION CONSOLIDATED STATEMENTS OF INCOME (amounts in millions, except per share data) 53 Weeks Ended September 3, 2017 52 Weeks Ended August 28, 2016 52 Weeks Ended August 30, 2015 $ 126,172 2,853 129,025 116,073 $ 2.646 118,719 113,666 2,533 116,199 111.882 12,950 101,065 11,445 102,901 12,068 78 3,672 82 4,111 3,624 (134) (133) REVENUE Net sales ........ Membership fees .......... Total revenue....................... OPERATING EXPENSES Merchandise costs Selling general and administrative ......... Preopening expenses.................. Operating income OTHER INCOME (EXPENSE) Interest expense... Interest income and other, net. INCOME BEFORE INCOME TAXES............ Provision for income taxes ............ Net income including noncontrolling interests. Net income attributable to noncontrolling interests........ .... . NET INCOME ATTRIBUTABLE TO COSTCO .... NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO: Basic Diluted Shares used in calculation (000's) Basic ........... Diluted ............ CASH DIVIDENDS DECLARED PER COMMON SHARE... 4,039 1.325 2,714 3,619 1,243 2,376 (124) 104 3,604 1,195 2,409 (26) (35) 2,679 $ (32) 2,377 2,350 $ 6.11 $ 5.36 5.33 $ $ 6.08 $ 438,437 440,937 438,585 441,263 439,455 442,716 $ 8.90 $ 1.70 $ 6.51 COSTCO WHOLESALE CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (amounts in millions) 53 Weeks Ended September 3, 52 Weeks Ended August 28, 2016 52 Weeks Ended August 30, 2015 2017 . . $ 2,714 $ 2,376 $ 2.409 98 26 NET INCOME INCLUDING NONCONTROLLING INTERESTS Foreign-currency translation adjustment and other, net ... .. Comprehensive income ....................... Less: Comprehensive income attributable to noncontrolling interests ..... COMPREHENSIVE INCOME ATTRIBUTABLE TO COSTCO ....... 2,812 2,402 (1,063) 1,346 30 ..$ 2,764 2.372 5 1,332 COSTCO WHOLESALE CORPORATION CONSOLIDATED STATEMENTS OF EQUITY (amounts in millions) Common Stock Additional Other Shares (000's) Accumulated comprehensive Income (Loss) Paid-in Capital Amount Total Costco Stockholders' Equity Retained Earnings Noncontrolling Interests Total Equity BALANCE AT AUGUST 31, 2014 - 437,683 $ 2 $ 4,919 $ (76) $ $ $ 212 7.458 2.377 12,303 2.377 $12,515 2,409 (1.045) (1.045) 394 989 2,736 (122) (122) (3.456) (452) (494) (494) (2,865) (2,865) (2,865) 437.952 IIIIIIIIIIIIIII (1.121) 6,518 10,617 2,350 226 26 10,843 2.376 2.350 Net income. Foreign-currency translation adjustment and other, net Stock-based compensation Stock options exercised, including tax effects Release of vested restricted stock units (RSUS), including tax effects ..... Repurchases of common stock.. . Cash dividends declared and other... . BALANCE AT AUGUST 30, 2015 ................... Net income..... . Foreign-currency translation adjustment and other, net Stock-based compensation Stock options exercised, including tax effects ..... Release of vested RSUS, including tax effects ... Conversion of convertible notes... . Repurchases of common stock ................. Cash dividends declared and other....... .. BALANCE AT AUGUST 28 2016 Net income..... . Foreign-currency translation adjustment and other net Stock-based compensation Release of vested RSUS, including tax effects . Conversion of convertible notes.. Repurchases of common . Cash dividends declared and other... .. ..... BALANCE AT SEPTEMBER 3, 2017 ................... 459 2.749 (146) (3.184) (477) (746) (746) 437.524 (1,099) 7.686 2.679 12.079 2,679 12,332 2,714 98 518 85 518 2.673 (165) - stock (2,998) (432) (473) (3.945) (3.945) (3.945) 437 204 S4 S5.800 S (1.014) $ 5,988 $ 10.778 $ 301 $11,079 52 Weeks Ended August 30. $ 2,409 1,127 394 (86) (38) (5) (101) (890) 880 557 4,285 COSTCO WHOLESALE CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (amounts in millions) 62 Weeks 52 Weeks Ended Ended September 3, August 28, 2017 CASH FLOWS FROM OPERATING ACTIVITIES Net income including noncontrolling interests. 2,714 $ 2,376 Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities: Depreciation and amortization ..... . 1,370 1.255 Stock-based compensation ..... 514 459 Excess tax benefits on stock-based awards .. (74) Other non-cash operating activities, net.... 24 Deferred income taxes...... (29) 269 Changes in operating assets and liabilities: Merchandise inventories.... (894) (25) Accounts payable .... ... 2,258 (1.532) Other operating assets and liabilities, net... 807 547 Net cash provided by operating activities... 6.726 3.292 CASH FLOWS FROM INVESTING ACTIVITIES Purchases of short-term investments........... (1.279) (1.432) Maturities and sales of short-term investments.. 1,385 1.709 Additions to property and equipment ......... (2,502) (2.649) Other investing activities, net........ 30 Net cash used in investing activities .... (2366) (2345) CASH FLOWS FROM FINANCING ACTIVITIES Change in bank checks outstanding .... (236) Repayments of short-term borrowings..... (106) Proceeds from short-term borrowings ..... 106 Proceeds from issuance of long-term debt..... 3.782 185 Repayments of long-term debt....... (2 200) (1.288) Minimum tax withholdings on stock-based awards (202) (220) Excess tax benefits on stock-based awards ... 38 Repurchases of common stock ............ (469) (486) Cash dividend payments... (3.904) (746) Other financing activities, net. (27) Net cash used in financing activities. (3.218) (2.419) EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 25 Net change in cash and cash equivalents ............. . .. CASH AND CASH EQUIVALENTS BEGINNING OF YEAR 3.379 CASH AND CASH EQUIVALENTS END OF YEAR................. $ 4,546 $ 3.379 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid during the year for Interest (reduced by $16. $19, and $14, interest capitalized in 2017, 2016, and 2015, respectively)................. .........$ . ... 131 $ 123 Income taxes, net .......... ....$ 1,185 $ 953 SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: Property acquired under build-to-suit and capital leases............... S 1 7 $ 15 (1.501) 1,434 (2,393) (20) (2.480) (45) (51) 1.125 (178) (481) (2.865) 35 (2.324) 1.167 (418) (937) 5.738 4.801 $ $ $ 117 1,186 $ 109 Find horizontal analysis COSTCO WHOLESALE CORPORATION CONSOLIDATED BALANCE SHEETS (amounts in millions, except par value and share data) September 3, 2017 August 28, 2016 $ 4,546 1,233 1,432 9,834 1,350 1,252 8,969 ASSETS CURRENT ASSETS Cash and cash equivalents ........... Short-term investments ............. Receivables, net ............ Merchandise inventories ...... Other current assets... Total current assets PROPERTY AND EQUIPMENT Land .. Buildings and improvements... Equipment and fixtures Construction in progress... 272 268 17,317 15.218 5,690 15,127 6,681 843 28,341 (10,180) 18,161 869 36,347 5,395 13,994 6,077 701 26.167 (9,124) 17.043 902 $ $ 33,163 $ Less accumulated depreciation and amortization ..... Net property and equipment. OTHER ASSETS ..... TOTAL ASSETS. LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable ... Current portion of long-term debt ........ Accrued salaries and benefits ..... Accrued member rewards Deferred membership fees ..... Other current liabilities ........ Total current liabilities......... LONG-TERM DEBT, excluding current portion OTHER LIABILITIES .... Total liabilities ..... COMMITMENTS AND CONTINGENCIES EQUITY Preferred stock $.01 par value: 100,000,000 shares authorized: no shares issued and outstanding........... Common stock $.01 par value: 900,000,000 shares authorized: 437,204,000 and 437,524,000 shares issued and outstanding... Additional paid-in capital ............ Accumulated other comprehensive loss..... Retained earnings ..... Total Costco stockholders' equity ............. Noncontrolling interests ............... Total equity ............ ... TOTAL LIABILITIES AND EQUITY ............ 9,608 86 2,703 961 1,498 2,639 17,495 6,573 1,200 25,268 7,612 1,100 2,629 869 1,362 2,003 15,575 4,061 1,195 20,831 5,800 (1,014) 5,988 10,778 301 11,079 36,347 5,490 (1,099) 7.686 12.079 253 12,332 33,163 COSTCO WHOLESALE CORPORATION CONSOLIDATED STATEMENTS OF INCOME (amounts in millions, except per share data) 53 Weeks Ended September 3, 2017 52 Weeks Ended August 28, 2016 52 Weeks Ended August 30, 2015 $ 126,172 2,853 129,025 116,073 $ 2.646 118,719 113,666 2,533 116,199 111.882 12,950 101,065 11,445 102,901 12,068 78 3,672 82 4,111 3,624 (134) (133) REVENUE Net sales ........ Membership fees .......... Total revenue....................... OPERATING EXPENSES Merchandise costs Selling general and administrative ......... Preopening expenses.................. Operating income OTHER INCOME (EXPENSE) Interest expense... Interest income and other, net. INCOME BEFORE INCOME TAXES............ Provision for income taxes ............ Net income including noncontrolling interests. Net income attributable to noncontrolling interests........ .... . NET INCOME ATTRIBUTABLE TO COSTCO .... NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO: Basic Diluted Shares used in calculation (000's) Basic ........... Diluted ............ CASH DIVIDENDS DECLARED PER COMMON SHARE... 4,039 1.325 2,714 3,619 1,243 2,376 (124) 104 3,604 1,195 2,409 (26) (35) 2,679 $ (32) 2,377 2,350 $ 6.11 $ 5.36 5.33 $ $ 6.08 $ 438,437 440,937 438,585 441,263 439,455 442,716 $ 8.90 $ 1.70 $ 6.51 COSTCO WHOLESALE CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (amounts in millions) 53 Weeks Ended September 3, 52 Weeks Ended August 28, 2016 52 Weeks Ended August 30, 2015 2017 . . $ 2,714 $ 2,376 $ 2.409 98 26 NET INCOME INCLUDING NONCONTROLLING INTERESTS Foreign-currency translation adjustment and other, net ... .. Comprehensive income ....................... Less: Comprehensive income attributable to noncontrolling interests ..... COMPREHENSIVE INCOME ATTRIBUTABLE TO COSTCO ....... 2,812 2,402 (1,063) 1,346 30 ..$ 2,764 2.372 5 1,332 COSTCO WHOLESALE CORPORATION CONSOLIDATED STATEMENTS OF EQUITY (amounts in millions) Common Stock Additional Other Shares (000's) Accumulated comprehensive Income (Loss) Paid-in Capital Amount Total Costco Stockholders' Equity Retained Earnings Noncontrolling Interests Total Equity BALANCE AT AUGUST 31, 2014 - 437,683 $ 2 $ 4,919 $ (76) $ $ $ 212 7.458 2.377 12,303 2.377 $12,515 2,409 (1.045) (1.045) 394 989 2,736 (122) (122) (3.456) (452) (494) (494) (2,865) (2,865) (2,865) 437.952 IIIIIIIIIIIIIII (1.121) 6,518 10,617 2,350 226 26 10,843 2.376 2.350 Net income. Foreign-currency translation adjustment and other, net Stock-based compensation Stock options exercised, including tax effects Release of vested restricted stock units (RSUS), including tax effects ..... Repurchases of common stock.. . Cash dividends declared and other... . BALANCE AT AUGUST 30, 2015 ................... Net income..... . Foreign-currency translation adjustment and other, net Stock-based compensation Stock options exercised, including tax effects ..... Release of vested RSUS, including tax effects ... Conversion of convertible notes... . Repurchases of common stock ................. Cash dividends declared and other....... .. BALANCE AT AUGUST 28 2016 Net income..... . Foreign-currency translation adjustment and other net Stock-based compensation Release of vested RSUS, including tax effects . Conversion of convertible notes.. Repurchases of common . Cash dividends declared and other... .. ..... BALANCE AT SEPTEMBER 3, 2017 ................... 459 2.749 (146) (3.184) (477) (746) (746) 437.524 (1,099) 7.686 2.679 12.079 2,679 12,332 2,714 98 518 85 518 2.673 (165) - stock (2,998) (432) (473) (3.945) (3.945) (3.945) 437 204 S4 S5.800 S (1.014) $ 5,988 $ 10.778 $ 301 $11,079 52 Weeks Ended August 30. $ 2,409 1,127 394 (86) (38) (5) (101) (890) 880 557 4,285 COSTCO WHOLESALE CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (amounts in millions) 62 Weeks 52 Weeks Ended Ended September 3, August 28, 2017 CASH FLOWS FROM OPERATING ACTIVITIES Net income including noncontrolling interests. 2,714 $ 2,376 Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities: Depreciation and amortization ..... . 1,370 1.255 Stock-based compensation ..... 514 459 Excess tax benefits on stock-based awards .. (74) Other non-cash operating activities, net.... 24 Deferred income taxes...... (29) 269 Changes in operating assets and liabilities: Merchandise inventories.... (894) (25) Accounts payable .... ... 2,258 (1.532) Other operating assets and liabilities, net... 807 547 Net cash provided by operating activities... 6.726 3.292 CASH FLOWS FROM INVESTING ACTIVITIES Purchases of short-term investments........... (1.279) (1.432) Maturities and sales of short-term investments.. 1,385 1.709 Additions to property and equipment ......... (2,502) (2.649) Other investing activities, net........ 30 Net cash used in investing activities .... (2366) (2345) CASH FLOWS FROM FINANCING ACTIVITIES Change in bank checks outstanding .... (236) Repayments of short-term borrowings..... (106) Proceeds from short-term borrowings ..... 106 Proceeds from issuance of long-term debt..... 3.782 185 Repayments of long-term debt....... (2 200) (1.288) Minimum tax withholdings on stock-based awards (202) (220) Excess tax benefits on stock-based awards ... 38 Repurchases of common stock ............ (469) (486) Cash dividend payments... (3.904) (746) Other financing activities, net. (27) Net cash used in financing activities. (3.218) (2.419) EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 25 Net change in cash and cash equivalents ............. . .. CASH AND CASH EQUIVALENTS BEGINNING OF YEAR 3.379 CASH AND CASH EQUIVALENTS END OF YEAR................. $ 4,546 $ 3.379 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid during the year for Interest (reduced by $16. $19, and $14, interest capitalized in 2017, 2016, and 2015, respectively)................. .........$ . ... 131 $ 123 Income taxes, net .......... ....$ 1,185 $ 953 SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: Property acquired under build-to-suit and capital leases............... S 1 7 $ 15 (1.501) 1,434 (2,393) (20) (2.480) (45) (51) 1.125 (178) (481) (2.865) 35 (2.324) 1.167 (418) (937) 5.738 4.801 $ $ $ 117 1,186 $ 109 Find horizontal analysis