EXHIBIT 12.1
COSTCO WHOLESALE CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN THOUSANDS)
AUG 29, AUG 30, AUG 31, SEPT 1, SEPT 3, AUG 28,
1999 1998 1997 1996 1995 1994
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Earnings(1).................................... $ 858,866 $ 766,403 $ 520,329(5) $ 423,477 $ 368,204 $ 203,555(3)
Less: Capitalized interest..................... (4,380) (3,542) (4,097) (5,612) (3,275) (7,170)
Add: Interest on debt(2)....................... 49,907 51,077 80,378 83,690 71,186 57,642
Portion of rent under long-term operating
leases representative of an interest
factor.................................... 35,558 33,225 32,411 33,412 32,160 26,940
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Total earnings available for fixed charges..... $ 939,951 $ 847,163 $ 629,021 $ 534,967 $ 468,275 $ 280,967
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Fixed Charges:
Interest on debt(2)......................... $ 49,907 $ 51,077 $ 80,378 $ 83,690 $ 71,186 $ 57,642
Portion of rent under long-term operating
leases representative of an interest
factor.................................... 35,558 33,225 32,411 33,412 32,160 26,940
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Total fixed charges............................ $ 85,465 $ 84,302 $ 112,789 $ 117,102 $ 103,346 $ 84,582
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Ratio of earnings to fixed charges............. 11.0 10.0 5.6(6) 4.6 4.5 3.3(4)
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(1) Earnings represent income from continuing operations before provision
for income taxes and cumulative effect of accounting change.
(2) Includes amortization of debt expense and capitalized interest.
(3) Includes provision for merger and restructuring expenses of $120,000
pre-tax ($80,000 or $.36 per share after tax) related to the merger of
The Price Company and Costco Wholesale Corporation in October 1993. If
such provision for merger and restructuring expenses were excluded,
income from continuing operations before provision for income taxes for
fiscal 1994 would have been $323,555.
(4) If the $120,000 pre-tax provision for merger and restructuring expenses
were excluded, the ratio of earnings to fixed charges for fiscal 1994
would have been 4.7.
(5) Includes the effect of adopting SFAS No. 121, a $65,000 pre-tax charge
for asset impairment. If such provision were excluded, income from
continuing operations before provision for income taxes for fiscal 1997
would have been $585,329.
(6) If the $65,000 pre-tax provision for asset impairment were excluded,
the ratio of earnings to fixed charges would have been 6.2.