COSTCO WHOLESALE CORPORATION CONSOLIDATED BALANCE SHEETS (amounts in millions, except par value and share data) September 2, September 3, 2017 2018 $ ASSETS CURRENT ASSETS Cash and cash equivalents .... Short-term investments .... Receivables, net. Merchandise inventories ..... Other current assets ...... Total current assets .... PROPERTY AND EQUIPMENT 6.055 1,204 1,669 11.040 321 20.289 4,546 1,233 1.432 9.834 272 17,317 Land Buildings and improvements. Equipment and futures Construction in progress 6,193 16.107 7.274 1.140 30.714 (11.033) 19,681 5,690 15,127 6,681 843 28,341 (10.180) 18.161 860 869 40.830 $ 36.347 $ Less accumulated depreciation and amortization Net property and equipment.. . OTHER ASSETS TOTAL ASSETS LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable 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 abilities ............... COMMITMENTS AND CONTINGENCIES EQUITY Preferred stock $0.01 par value: 100 000 000 shares authorized: no shares issued and outstanding ................ Common stock $0.01 par value: 900,000,000 shares authorized: 438,189,000 and 437 204,000 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 11,237 2.994 1,057 1,624 3,014 19,926 6,487 1.314 27 727 9,608 2,703 961 1.498 2,725 17,495 6,573 1,200 25,268 6,107 (1.199) 7.887 12.799 304 13,103 40.830 5,800 (1.014) 5,988 10,778 301 11.079 36.347 The accompanying notes are an integral part of these consolidated financial statements COSTCO WHOLESALE CORPORATION CONSOLIDATED STATEMENTS OF INCOME (amounts in millions, except per share data) 52 Weeks Ended September 2. 53 Weeks Ended September 3. 52 Weeks Ended August 28, 138,434 $ 126,172 S 2853 129.025 116.073 2,646 118.719 141,576 123,152 13,876 111.882 12.950 102.901 12,068 4.480 4.111 (159) 4,442 4039 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 1.263 3,179 3,134 7.15 $ 7.09 438,515 441.834 438.437 440,937 438.585 441.263 2.14 $ 8.90 $ 1.70 The accompanying notes are an integral part of these consolidated financial statements COSTCO WHOLESALE CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (amounts in millions) 52 Weeks Ended September 2, 2018 53 Weeks Ended September 3. 2017 52 Weeks Ended August 28. 2016 3.179 $ 2.7545 2.376 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 (192) 2.987 2.949 $ 2.764 S 2.372 The accompanying notes are an integral part of these consolidated financial statements 38 lamounts In millions) Common Stock Additional Accumulated Noncontrolling Other Comprehensive Income (Loss) Total Costco Stockholders' Equity Total 1000's) Paid-in Capital Amount Retained Earnings Interests Equity 2015 437,952 S 2 $ 5.218 S (1.121) $ 5 S 226 6,518 2.350 10,617 2.350 $10,843 2.376 459 2.749 BALANCE AT AUGUST 30. ... 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 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 (3,184) (477) (477) (746) (746) (3) (749) 437524 7,686 2.679 12 079 2.679 12,332 2.714 85 518 518 2,673 (165) (165) Stock-based compensation Release of vested RSUS including tax effects Conversion of convertible notes Repurchases of common (2,998) (432) (473) (473) (3.945) (3.945) (3.945) 437 204 (1.014) 301 5.988 3.134 10.778 3.134 11.079 3,179 45 Cash dividends declared and other BALANCE AT SEPTEMBER 3. 2017.. . Net income ..... . Foreign-currency translation adjustment and other, net Stock-based compensation Release of vested RSUS, including tax effects.. Repurchases of common (185) 547 (192) 547 2,741 (217) (217) (1.756) - (322) Cash dividends declared and other..... . . BALANCE AT SEPTEMBER 2 (296) (939) (322) (936) _ 12.799 $ (35) 304 (971) $13.103 438.189 $ 4 $ 6.107 $ (1.199) $ 7.887 $ The accompanying notes are an integral part of these consolidated financial statements 39 COSTCO WHOLESALE CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (amounts in millions) 52 Weeks Ended September 2, 53 Weeks Ended September 3. 52 Weeks Ended August 28, 3,179 $ 2.714 5 2,376 1370 1255 1,437 544 514 459 (57) 149) (29) (1.313) (25) (1.532) 1561 421 (894) 2.258 807 6.726 5.774 3.292 (1.060) 1078 12.969) (1279) 1 385 (2.502) (1.432) 1.709 (2,649) CASH FLOWS FROM OPERATING ACTIVITIES Net Income including noncontrolling interests .... Adiustments to reconcile not income including noncontrolling interests to net cash provided by operating activities: Depreciation and amortization Stock-based compensation Other non-cash operating activities, net. Deferred income taxes Changes in operating assets and liabilities: Merchandise invento Accounts payable... Other operating assets and liabilities, net.... Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES Purchases of short-term investments Maturities and sales of short-term investments Additions to property and equipment......... Other investing activities, net... Net cash used in investing activities ... CASH FLOWS FROM FINANCING ACTIVITIES Change in bank checks outstanding Repayments of short-term borrowings... Proceeds from short-term borrowings Proceeds from issuance of long-term debt. Repayments of long-term deb.... Tax withholdings on stock-based awards Repurchases of common stock ... Cash dividend payments Other financing activities, nel... Net cash used in financing activities. EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS Net change in cash and cash equivalents CASH AND CASH EQUIVALENTS BEGINNING OF YEAR CASH AND CASH EQUIVALENTS END OF YEAR (2.947) 2.366) 2.345) (236) (106) 3.782 (2.200) (202) (217) (328) (689) (41) (1.281) 185 (1 288) (220) (486) (746) (469) (3.904) (3 218) 2,419) 1.167 3.379 4,546 5 (1.422) 4,801 .379 $ 3 143 $ 131 $ SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Cash paid during the year for: Interest (reduced by $19, $16, and $19, interest capitalized in 2018. 2017, and 2016, respectively) Income taxes, net SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: Property and equipment acquired, but not yet paid........ ......$ Cash dividend declared, but not yet paid .....$ 113 250 $ $ The accompanying notes are an integral part of these consolidated financial statements. Find horizontal change Find horizontal analysis