| Document and Entity Information | ||
| 9 Months Ended
May. 09, 2010 | May. 28, 2010
| |
| Document Type | 10-Q | |
| Amendment Flag | false | |
| Document Period End Date | 2010-05-09 | |
| Document Fiscal Year Focus | 2,010 | |
| Document Fiscal Period Focus | Q3 | |
| Trading Symbol | COST | |
| Entity Registrant Name | COSTCO WHOLESALE CORP /NEW | |
| Entity Central Index Key | 0000909832 | |
| Current Fiscal Year End Date | --08-30 | |
| Entity Filer Category | Large Accelerated Filer | |
| Entity Common Stock, Shares Outstanding | 439,132,186 |
| CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | ||
| In Millions | 9 Months Ended
May. 09, 2010 | 12 Months Ended
Aug. 30, 2009 |
| CURRENT ASSETS | ||
| Cash and cash equivalents | $4,413 | $3,157 |
| Short-term investments | 854 | 570 |
| Receivables, net | 818 | 834 |
| Merchandise inventories | 5,546 | 5,405 |
| Deferred income taxes and other current assets | 426 | 371 |
| Total current assets | 12,057 | 10,337 |
| PROPERTY AND EQUIPMENT | ||
| Land | 3,402 | 3,341 |
| Buildings, leasehold and land improvements | 8,932 | 8,453 |
| Equipment and fixtures | 3,486 | 3,265 |
| Construction in progress | 150 | 264 |
| Total Property, Plant and Equipment | 15,970 | 15,323 |
| Less accumulated depreciation and amortization | (4,912) | (4,423) |
| Net property and equipment | 11,058 | 10,900 |
| OTHER ASSETS | 784 | 742 |
| TOTAL ASSETS | 23,899 | 21,979 |
| CURRENT LIABILITIES | ||
| Short-term borrowings | 30 | 16 |
| Accounts payable | 5,975 | 5,450 |
| Accrued salaries and benefits | 1,437 | 1,418 |
| Accrued sales and other taxes | 349 | 302 |
| Deferred membership fees | 921 | 824 |
| Current portion of long-term debt | 80 | |
| Other current liabilities | 1,477 | 1,191 |
| Total current liabilities | 10,189 | 9,281 |
| LONG-TERM DEBT, excluding current portion | 2,132 | 2,130 |
| DEFERRED INCOME TAXES AND OTHER LIABILITIES | 606 | 464 |
| Total liabilities | 12,927 | 11,875 |
| COMMITMENTS AND CONTINGENCIES | ||
| EQUITY | ||
| Preferred stock $.005 par value; 100,000,000 shares authorized; no shares issued and outstanding | ||
| Common stock $.005 par value; 900,000,000 shares authorized; 440,575,000 and 435,974,000 shares issued and outstanding | 2 | 2 |
| Additional paid-in capital | 4,107 | 3,811 |
| Accumulated other comprehensive income | 151 | 110 |
| Retained earnings | 6,614 | 6,101 |
| Total Costco stockholders' equity | 10,874 | 10,024 |
| Noncontrolling interests | 98 | 80 |
| Total equity | 10,972 | 10,104 |
| TOTAL LIABILITIES AND EQUITY | $23,899 | $21,979 |
| CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | ||
| May. 09, 2010
| Aug. 30, 2009
| |
| Preferred stock, par value | 0.005 | 0.005 |
| Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
| Preferred stock, shares issued | ||
| Preferred stock, shares outstanding | ||
| Common stock, par value | 0.005 | 0.005 |
| Common stock, shares authorized | 900,000,000 | 900,000,000 |
| Common stock, shares issued | 440,575,000 | 440,575,000 |
| Common stock, shares outstanding | 435,974,000 | 435,974,000 |
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) | ||||
| In Millions, except Share data in Thousands | 3 Months Ended
May. 09, 2010 | 3 Months Ended
May. 10, 2009 | 9 Months Ended
May. 09, 2010 | 9 Months Ended
May. 10, 2009 |
| REVENUE | ||||
| Net sales | $17,385 | $15,477 | $52,663 | $48,001 |
| Membership fees | 395 | 329 | 1,158 | 1,043 |
| Total revenue | 17,780 | 15,806 | 53,821 | 49,044 |
| OPERATING EXPENSES | ||||
| Merchandise costs | 15,494 | 13,776 | 46,971 | 42,823 |
| Selling, general and administrative | 1,789 | 1,655 | 5,439 | 4,998 |
| Preopening expenses | 3 | 9 | 17 | 29 |
| Provision for impaired assets and closing costs, net | 3 | 7 | 5 | 15 |
| Operating income | 491 | 359 | 1,389 | 1,179 |
| OTHER INCOME (EXPENSE) | ||||
| Interest expense | (27) | (25) | (77) | (75) |
| Interest income and other, net | 10 | 6 | 58 | 39 |
| INCOME BEFORE INCOME TAXES | 474 | 340 | 1,370 | 1,143 |
| Provision for income taxes | 163 | 128 | 484 | 422 |
| Net income including noncontrolling interests | 311 | 212 | 886 | 721 |
| Net income attributable to noncontrolling interests | (5) | (2) | (15) | (9) |
| NET INCOME ATTRIBUTABLE TO COSTCO | $306 | $210 | $871 | $712 |
| NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO: | ||||
| Basic | 0.69 | 0.48 | 1.98 | 1.64 |
| Diluted | 0.68 | 0.48 | 1.95 | 1.62 |
| Shares used in calculation (000's) | ||||
| Basic | 440,973 | 434,354 | 439,306 | 433,426 |
| Diluted | 448,391 | 439,997 | 446,709 | 439,995 |
| Dividends per share | 0.205 | 0.18 | 0.565 | 0.5 |
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | ||
| In Millions | 9 Months Ended
May. 09, 2010 | 9 Months Ended
May. 10, 2009 |
| CASH FLOWS FROM OPERATING ACTIVITIES | ||
| Net income including noncontrolling interests | $886 | $721 |
| Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities: | ||
| Depreciation and amortization | 549 | 487 |
| Stock-based compensation | 139 | 132 |
| Undistributed equity earnings in joint ventures | (29) | (22) |
| Excess tax benefit on stock-based awards | (9) | (2) |
| Other non-cash items, net | (6) | 63 |
| Deferred income taxes | 2 | |
| Change in receivables, other current assets, deferred membership fees, accrued and other current liabilities | 327 | 245 |
| Increase in merchandise inventories | (120) | (346) |
| Increase in accounts payable | 432 | 263 |
| Net cash provided by operating activities | 2,169 | 1,543 |
| CASH FLOWS FROM INVESTING ACTIVITIES | ||
| Additions to property and equipment, net of $45 and $23 of non-cash capital expenditures in the first thirty-six weeks of fiscal 2010 and 2009, respectively | (644) | (897) |
| Proceeds from the sale of property and equipment | 3 | 5 |
| Purchases of short-term investments | (1,221) | (1,386) |
| Maturities of short-term investments | 879 | 1,389 |
| Sales of investments | 69 | 119 |
| Other investing items, net | 2 | (3) |
| Investments transferred from cash and cash equivalents | (5) | |
| Net cash used in investing activities | (912) | (778) |
| CASH FLOWS FROM FINANCING ACTIVITIES | ||
| Change in bank checks outstanding | 116 | 4 |
| Repayments of short-term borrowings | (66) | (1,729) |
| Proceeds from short-term borrowings | 80 | 1,624 |
| Repayments of long-term debt | (83) | (4) |
| Cash dividend payments | (158) | (139) |
| Excess tax benefit on stock-based awards | 9 | 2 |
| Proceeds from stock-based awards, net | 168 | 51 |
| Repurchases of common stock | (116) | (69) |
| Other financing activities | 38 | |
| Net cash used in financing activities | (12) | (260) |
| EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 11 | (41) |
| Net increase in cash and cash equivalents | 1,256 | 464 |
| CASH AND CASH EQUIVALENTS BEGINNING OF YEAR | 3,157 | 2,619 |
| CASH AND CASH EQUIVALENTS END OF PERIOD | 4,413 | 3,083 |
| Cash paid during the period for: | ||
| Interest (reduced by $8 and $6 interest capitalized in the first thirty-six weeks of fiscal 2010 and 2009, respectively) | 110 | 106 |
| Income taxes | 346 | 316 |
| SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES: | ||
| Cash dividend declared, but not yet paid | 91 | 78 |
| Unsettled repurchases of common stock | 13 | |
| Common stock issued upon conversion of 3.5% Zero Coupon Convertible Subordinated Notes | 1 | 3 |
| Property acquired under a capital lease | $80 |
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $) | ||
| In Millions | 9 Months Ended
May. 09, 2010 | 9 Months Ended
May. 10, 2009 |
| Additions to property and equipment, non-cash capital expenditures | $45 | $23 |
| Interest, interest capitalized | $8 | $6 |
| Summary of Significant Accounting Policies | |
| 9 Months Ended
May. 09, 2010 | |
| Summary of Significant Accounting Policies | Note 1Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q for interim financial reporting pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). While these statements reflect all normal recurring adjustments that are, in the opinion of management, necessary for fair presentation of the results of the interim period, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles (GAAP) for complete financial statements. Therefore, the interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company's annual report filed on Form 10-K for the fiscal year ended August 30, 2009. The condensed consolidated financial statements include the accounts of Costco Wholesale Corporation, a Washington corporation, its wholly-owned subsidiaries, and subsidiaries in which it has a controlling interest ("Costco" or the "Company"). All material inter-company transactions among the Company and its subsidiaries have been eliminated in consolidation. Costco operates membership warehouses that offer low prices on a limited selection of nationally branded and select private label products in a wide range of merchandise categories in no-frills, self-service facilities. At May 9, 2010, Costco operated 535 warehouses in 40 U.S. states and Puerto Rico (414 locations), nine Canadian provinces (77 locations), the United Kingdom (21 locations), Japan (nine locations), Korea (seven locations), Taiwan (six locations), and Australia (one location), as well as 32 locations in Mexico, through a 50%-owned joint venture. Reclassifications Certain reclassifications have been made to prior fiscal year amounts or balances to conform to the presentation in the current fiscal year. Additionally, as a result of the application of a new accounting pronouncement for noncontrolling interests in consolidated entities, discussed below in Recently Adopted Accounting Pronouncements, the Company: * Reclassified to noncontrolling interests a component of total equity, $80 at August31, 2009, which was previously reported as minority interest on the Company's consolidated balance sheet, after the correction of an immaterial error of $6 relating to the noncontrolling interest component of accumulated other comprehensive income. A new subtotal, total Costco stockholders' equity, refers to the equity attributable to stockholders of Costco; * Reported as separate captions within the condensed consolidated statements of income, net income including noncontrolling interests, net income attributable to noncontrolling interests and net income attributable to Costco; and * Utilized net income including noncontrolling interests as the starting point on the condensed consolidated statements of cash flows to reconcile net income including noncontrolling interests to cash flows from operating activities. These reclassifications d |
| Investments | |
| 9 Months Ended
May. 09, 2010 | |
| Investments | Note 2Investments The Company's major classes of investments have not changed from the annual reporting period ended August 30, 2009. The Company's investments at May 9, 2010 and August 30, 2009, were as follows: Balance SheetClassification May9, 2010: CostBasis UnrealizedGains UnrealizedLosses RecordedBasis Short-termInvestments OtherAssets Available-for-sale: U.S. government and agency securities $ 718 $ 5 $ $ 723 $ 723 $ Corporate notes and bonds 19 19 19 Asset and mortgage-backed securities 22 22 22 Total available-for-sale 759 5 764 764 Held-to-maturity: Certificates of deposit 90 90 90 Total investments $ 849 $ 5 $ $ 854 $ 854 $ Balance SheetClassification August30, 2009: CostBasis UnrealizedGains UnrealizedLosses RecordedBasis Short-termInvestments OtherAssets Available-for-sale: Money market mutual funds $ 13 $ $ $ 13 $ 13 $ U.S. government and agency securities 400 3 403 403 Corporate notes and bonds 49 1 (1 ) 49 49 Asset and mortgage-backed securities 48 1 49 46 3 Total available-for-sale 510 5 (1 ) 514 511 3 Held-to-maturity: Certificates of deposit 59 59 59 Total investments $ 569 $ 5 $ (1 ) $ 573 $ 570 $ 3 The proceeds and gross realized gains and losses from sales of available-for-sale securities during the third quarter and the first thirty-six weeks of 2010 and 2009 are provided in the following table: 12 Weeks Ended 36 Weeks Ended May9,2010 May10,2009 May9,2010 May10,2009 Proceeds $ 24 $ 26 $ 69 $ 119 Realized gains 1 1 4 3 Realized losses (1 ) (1 ) (1 ) As of May 9, 2010, and August 30, 2009, the Company's available-for-sale securities that were in continuous unrealized loss positions were insignificant. In fiscal 2008, one of the Company's enhanced money-fund investments, Columbia Strategic Cash Portfolio Fund (Columbia), ceased accepting cash redemption requests and changed to a floating net asset value. In light of the restricted liquidity, the Company elected to receive a pro-rata allocation of the underlying securities in a separately managed account. The Company assesses the fair value of these securities through market quotations and review of current investment ratings, as available, coupled with an evaluation of the liquidation value of each investment and its current performance in meeting |
| Fair Value Measurement | |
| 9 Months Ended
May. 09, 2010 | |
| Fair Value Measurement | Note 3Fair Value Measurement The Company follows the authoritative guidance for fair value measurements relating to financial and nonfinancial assets and liabilities, including presentation of required disclosures. This guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The guidance also establishes a fair value hierarchy, which requires maximizing the use of observable inputs when measuring fair value. The three levels of inputs that may be used are: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. Level 3: Significant unobservable inputs that are not corroborated by market data. There have been no material changes to the valuations techniques utilized in the fair value measurement of assets and liabilities presented on the Company's balance sheet as disclosed in the Company's Form 10-K for the fiscal year ended August 30, 2009. Assets and Liabilities Measured at Fair Value on a Recurring Basis The tables below present information as of May 9, 2010 and August 30, 2009, respectively, about the Company's financial assets and financial liabilities that are measured at fair value on a recurring basis, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value: May9, 2010: Level 1 Level2 Level3 Assets (liabilities): Money market mutual funds $ 2,631 $ $ Investment in U.S. government and agency securities 723 Investment in corporate notes and bonds 17 2 Investment in asset and mortgage-backed securities 22 Forward foreign exchange contracts, in asset position(1) 4 Forward foreign exchange contracts, in liability position(1) (1 ) Total $ 2,631 $ 765 $ 2 August30, 2009: Level 1 Level2 Level3 Assets (liabilities): Money market mutual funds $ 1,597 $ $ Investment in U.S. government and agency securities 403 Investment in corporate notes and bonds 35 14 Investment in asset and mortgage-backed securities 37 12 Forward foreign exchange contracts, in asset position(1) 2 Forward foreign exchange contracts, in liability position(1) (4 ) Total $ 1,597 $ 473 $ 26 (1) The asset and the liability values are included in deferred income taxes and other current assets and other current liabilities, respectively, in the accompanying condensed consolidated balance sheets. See Note 1 for additional information on derivative instruments. The Company reports transfers in and out of Levels 1, 2 and 3, as applicable, using the fair value of the individual securities as of the beginning of the reporting period in w |
| Debt | |
| 9 Months Ended
May. 09, 2010 | |
| Debt | Note 4Debt At May 9, 2010, the Company was in compliance with all restrictive covenants of its borrowings. In November 2009, the Company's Japanese subsidiary paid the outstanding principal and interest balances totaling $33 related to the 0.88% promissory notes due November 2009, originally issued in November 2002. In April 2010, the Company's Japanese subsidiary paid the outstanding principal and interest balances totaling $44 related to the 0.92% promissory notes due April 2010, originally issued in April 2003. During the third quarter of 2010, a nominal amount of the face value of the Company's 3.5% Zero Coupon Convertible Subordinated Notes (Zero Coupon Notes) was converted by note holders into 2,000 shares of common stock; and during the first thirty-six weeks of 2010, $1 in face amount of Zero Coupon Notes was converted into 16,000 shares of common stock. During the third quarter of 2009, a nominal amount of the face value of the Zero Coupon Notes was converted into 5,000 shares of common stock; and during the first thirty-six weeks of 2009, $4 in face amount of Zero Coupon Notes was converted into 82,000 shares of common stock. These amounts differ from those in the supplemental disclosure of non-cash items in the condensed consolidated statements of cash flows due to the related discount and issuance costs. The carrying value and estimated fair value of total long-term debt consisted of the following: May9, 2010 August30, 2009 CarryingValue FairValue(1) CarryingValue FairValue(1) 5.50% Senior Notes due March 2017 (2017 Senior Notes) $ 1,096 $ 1,237 $ 1,096 $ 1,213 5.30% Senior Notes due March 2012 (2012 Senior Notes) 899 975 899 973 Zero Coupon Notes 32 55 32 44 Other long-term debt 105 109 183 185 Total $ 2,132 $ 2,376 $ 2,210 $ 2,415 (1) The fair value of the Company's long-term debt is based on quoted market prices, as applicable. |
| Equity and Comprehensive Income (Loss) | |
| 9 Months Ended
May. 09, 2010 | |
| Equity and Comprehensive Income (Loss) | Note 5Equity and Comprehensive Income (Loss) Dividends In the third quarter of 2010, the Company's Board of Directors declared a quarterly cash dividend to shareholders of record on May 7, 2010, and approved an increase from $0.18 to $0.205 per share, or $0.82 on an annualized basis. The dividend was paid on May 21, 2010. Stock Repurchase Programs The Company's stock repurchase activity during the third quarter and first thirty-six weeks of 2010 and 2009 is summarized in the following table: SharesRepurchased(000's) AveragePriceperShare TotalExpenditure Third quarter of 2010 1,925 $ 59.56 $ 114 First thirty-six weeks of 2010 2,175 59.48 129 Third quarter of 2009 50 $ 38.88 $ 2 First thirty-six weeks of 2009 895 63.84 57 These amounts differ from the stock repurchase balances in the condensed consolidated statements of cash flows to the extent that repurchases had not settled at the end of the quarter. The remaining amount available for stock repurchases under the approved plans was approximately $1,873 at May 9, 2010. Purchases are made from time-to-time as conditions warrant in the open market or in block purchases, and pursuant to share repurchase plans under SEC Rule 10b5-1. Repurchased shares are retired. From time to time, the Company purchases shares in the open market for the purpose of gifting common stock rewards to employees. In the third quarter of 2010, the Company did not purchase any shares. In the first thirty-six weeks of 2010, the Company purchased 8,000 shares, at an average price of $58.50 per share. This program is separate from the Company's publicly announced stock repurchase program discussed above. Components of Equity and Comprehensive Income The Company reports its noncontrolling interests in consolidated subsidiaries as a component of equity separate from the Company's equity. The accumulated other comprehensive income consists of foreign currency translation adjustments and unrealized gains and losses on investments and their related tax effects. The following tables show the changes in equity attributable to Costco and the noncontrolling interests of subsidiaries in which Costco has a majority, but not total ownership interest: Attributableto Costco NoncontrollingInterests TotalEquity Equity at August30, 2009 $ 10,024 $ 80 $ 10,104 Comprehensive income: Foreign currency translation adjustment and other 40 3 43 Unrealized gain on short term investments, net of tax 1 1 Net income 871 15 886 Total comprehensive income 912 18 930 Stock options exercised and vesting of restricted stock units (RSUs), including tax effects 176 176 Conversion of convertible notes 1 1 Repurchase of common stock (129 ) (129 ) Stock-based compensation 139 139 Cash dividends (249 ) (249 ) Equity at May9, 2010 $ 10,874 $ 98 $ 10,9 |
| Stock-Based Compensation Plans | |
| 9 Months Ended
May. 09, 2010 | |
| Stock-Based Compensation Plans | Note 6Stock-Based Compensation Plans In the second quarter of fiscal 2010, the Fourth Restated 2002 Stock Incentive Plan was amended following shareholder approval and is now referred to as the Fifth Restated 2002 Stock Incentive Plan (Fifth Restated 2002 Plan). The Fifth Restated 2002 Plan authorizes the issuance of an additional 18,000,000 shares of common stock for future grants in addition to grants currently authorized. Each share issued in respect of stock units is counted as 1.75 shares toward the limit of shares available. The Company issues new shares of common stock upon exercise of stock options and vesting of RSUs. Summary of Stock Option Activity The following table summarizes stock option transactions during the first thirty-six weeks of 2010: Shares(in000's) Weighted-AverageExercisePrice Weighted-AverageRemainingContractualTerm(inyears) AggregateIntrinsicValue(1) Outstanding at August30, 2009 18,742 $ 40.17 Granted(3) Exercised (4,878 ) 42.06 Forfeited or expired (4 ) 43.34 Outstanding at May9, 2010(2) 13,860 $ 39.50 3.63 $ 247 Exercisable at May9, 2010 13,729 $ 39.43 3.61 $ 245 (1) The difference between the original exercise price and market value of common stock at May9, 2010. (2) Stock options generally vest over five years and have a ten-year term. (3) The Company's last stock option grant was on October15, 2005. The tax benefits realized and intrinsic value related to total stock options exercised during the first thirty-six weeks of 2010 and 2009 are provided in the following table: 36 Weeks Ended May9,2010 May10,2009 Actual tax benefit realized for stock options exercised $ 30 $ 7 Intrinsic value of stock options exercised(1) $ 86 $ 21 (1) The difference between the original exercise price and market value of common stock measured at each individual exercise date. Employee Tax Consequences on Certain Stock Options In the third quarter of 2010, the Company recorded a $14 benefit to selling, general and administrative expense related to a reversal of an expense related to mitigating potential adverse tax consequences to our Canadian employees, previously recorded in the second quarter of fiscal 2007. Summary of Restricted Stock Unit Activity At May 9, 2010, 12,284,000 shares were available to be granted as RSUs to eligible employees and directors under the Fifth Restated 2002 Plan. The following awards were outstanding at May 9, 2010: * 8,526,000 time-based RSUs, which vest upon the achievement of continued employment over specified periods of time; * 456,000 performance-based RSUs granted to certain executive officers of the Company. The performance targets have been met. Further vesting occurs upon achievement of continued employment over specified periods of time; and * 305,000 performance-based RSUs to be granted to executive officers of the Company upon achievement of specified performance |
| Net Income Per Common and Common Equivalent Share | |
| 9 Months Ended
May. 09, 2010 | |
| Net Income Per Common and Common Equivalent Share | Note 7Net Income Per Common and Common Equivalent Share The following table shows the amounts used in computing net income attributable to Costco (net income) per share and the effect on income and the weighted average number of shares of dilutive potential common stock (shares in 000's): 12 Weeks Ended 36 Weeks Ended May9,2010 May10,2009 May9,2010 May10,2009 Net income available to common stockholders used in basic net income per common share $ 306 $ 210 $ 871 $ 712 Interest on convertible notes, net of tax 1 Net income available to common stockholders after assumed conversions of dilutive securities $ 306 $ 210 $ 871 $ 713 Weighted average number of common shares used in basic net income per common share 440,973 434,354 439,306 433,426 Stock options and RSUs 6,472 4,200 6,451 5,099 Conversion of convertible notes 946 1,443 952 1,470 Weighted number of common shares and dilutive potential of common stock used in diluted net income per common share 448,391 439,997 446,709 439,995 Anti-dilutive stock options and RSUs 1,302 9,922 1,398 6,828 |
| Commitments And Contingencies | |
| 9 Months Ended
May. 09, 2010 | |
| Commitments And Contingencies | Note 8Commitments and Contingencies Legal Proceedings The Company is involved from time to time in claims, proceedings and litigation arising from its business and property ownership. The Company is a defendant in the following matters, among others: Cases purportedly brought as class actions on behalf of certain present and former Costco managers in California, in which plaintiffs principally allege that they have not been properly compensated for overtime work. Scott M. Williams v. Costco Wholesale Corp., United States District Court (San Diego), Case No. 02-CV-2003 NAJ (JFS); Greg Randall v. Costco Wholesale Corp., Superior Court for the County of Los Angeles, Case No. BC-296369. The parties in Randall agreed on a partial settlement of the action (resolving all claims except for the claim that the Company miscalculated pay), requiring a payment of up to $16 by the Company, which was substantially paid in the first quarter of fiscal 2010. The miscalculation claim from the Randall case was refiled as a separate action by stipulation, alleging that the Company miscalculated the rates of pay for all department and ancillary managers in California in violation of Labor Code Section 515(d). On October 2, 2009, the court granted the Company's motion for summary judgment, and that ruling has been appealed. Terry Head v. Costco Wholesale Corp., Superior Court for the County of Los Angeles, Case No. BC-409805. In the Williams action, the parties have achieved a settlement, subject to final court approval. The settlement is immaterial to the Company's condensed consolidated financial statements. On December 26, 2007, another putative class action was filed, also principally alleging denial of overtime compensation. The complaint alleges misclassification of certain California managers. On May 15, 2008, the court partially granted the Company's motion to dismiss the complaint, dismissing certain claims and refusing to expand the statute of limitations for the remaining claims. An answer to the complaint was filed on May 27, 2008. Plaintiff's Rule 23 class certification motion was denied, while a Fair Labor Standards Act (FLSA) collective action was conditionally certified for notice purposes only. Jesse Drenckhahn v. Costco Wholesale Corp., United States District Court (Los Angeles), Case No. CV08-1408 FMC (JMJ). A case purportedly brought as a class action on behalf of present and former hourly employees in California, in which the plaintiff principally alleges that the Company's routine closing procedures and security checks cause employees to incur delays that qualify as uncompensated working time and that deny them statutorily guaranteed meal periods and rest breaks. The complaint was filed on October 2, 2008, and the Company's motion to dismiss was partially granted. On February 1, 2010, the court denied plaintiff's motion for class certification, and that ruling has been appealed. The court granted summary judgment against the plaintiff on his individual claim on April 19, 2010. Anthony Castaneda v. Costco Wholesale Corp., Superior Court for the County of Los Angeles, Case No. BC-399302. A similar purported class action was fil |
| Segment Reporting | |
| 9 Months Ended
May. 09, 2010 | |
| Segment Reporting | Note 9Segment Reporting The Company and its subsidiaries are principally engaged in the operation of membership warehouses in the United States, Canada, the United Kingdom, Japan, Australia, through majority-owned subsidiaries in Taiwan and Korea, and through a 50%-owned joint-venture in Mexico. The Company's reportable segments are based on management's organization of the operating segments for operational decisions and assessments of financial performance, which considers geographic locations. The investment in the Mexico joint-venture is only included in total assets under United States Operations in the table below, as it is accounted for under the equity method and its operations are not consolidated in the Company's financial statements. The accounting policies of the segments are the same as those described in the notes to the consolidated financial statements included in the Company's annual report filed on Form 10-K for the fiscal year ended August 30, 2009, after considering newly adopted accounting pronouncements described elsewhere herein. All inter-segment net sales and expenses have been eliminated in computing total revenue and operating income. UnitedStatesOperations(1) CanadianOperations OtherInternationalOperations Total Twelve Weeks Ended May9, 2010 Total revenue $ 13,652 $ 2,726 $ 1,402 $ 17,780 Operating income 298 145 48 491 Depreciation and amortization 141 24 15 180 Capital expenditures, net 104 20 14 138 Twelve Weeks Ended May10, 2009 Total revenue $ 12,660 $ 2,042 $ 1,104 $ 15,806 Operating income 263 64 32 359 Depreciation and amortization 141 19 11 171 Capital expenditures, net 167 19 40 226 Thirty-Six Weeks Ended May9, 2010 Total revenue $ 41,244 $ 8,216 $ 4,361 $ 53,821 Operating income 877 361 151 1,389 Depreciation and amortization 432 73 44 549 Capital expenditures, net 478 100 66 644 Property and equipment, net 8,512 1,471 1,075 11,058 Total assets 18,606 3,069 2,224 23,899 Total equity 7,937 1,716 1,319 10,972 Thirty-Six Weeks Ended May10, 2009 Total revenue $ 39,087 $ 6,492 $ 3,465 $ 49,044 Operating income 845 225 109 1,179 Depreciation and amortization 397 57 33 487 Capital expenditures, net 656 108 133 897 Property and equipment, net 8,232 1,301 965 10,498 Total assets 17,050 2,376 1,878 21,304 Total equity 7,203 1,270 1,091 9,564 Year Ended August30, 2009 Total revenue $ 56,548 $ 9,737 $ 5,137 $ 71,422 Operating income 1,273 354 150 1,777 Depreciation and amortization 589 90 49 728 Capital expenditures, net 904 135 211 1,250 Property and e |
