12 Weeks --------- U.S. 5% International 14% Total Company 7% =========Inflation in gasoline prices and strengthening foreign currencies had a positive impact on comparable sales. Excluding these effects, comparable sales for the twelve-week period were as follows:
12 Weeks --------- U.S. 4% International 10% Total Company 5% =========Net income for the quarter was $312 million, or $.71 per diluted share, compared to $266 million, or $.60 per diluted share, during the first quarter of fiscal 2010. Mexico's results for the prior year were accounted for under the equity method and Costco's 50% share was included in interest income and other. In the current year the joint venture results are fully consolidated and the joint venture partner's 50% share is reported as net income attributable to noncontrolling interests. The consolidation of the Mexico joint venture had no impact on net income or earnings per share attributable to Costco. Costco currently operates 582 warehouses, including 425 in the United States and Puerto Rico, 80 in Canada, 22 in the United Kingdom, seven in Korea, six in Taiwan, nine in Japan, one in Australia and 32 in Mexico. The Company also operates Costco Online, an electronic commerce web site, at www.costco.com and at www.costco.ca in Canada. A conference call to discuss these fiscal 2011 first quarter results is scheduled for 8:00 a.m. (PT) today, December 8, 2010, and is available via a webcast on www.costco.com (click on Investor Relations and "Play Webcast"). Certain statements contained in this document constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. For these purposes, forward-looking statements are statements that address activities, events, conditions or developments that the Company expects or anticipates may occur in the future. Such forward-looking statements involve risks and uncertainties that may cause actual events, results or performance to differ materially from those indicated by such statements. These risks and uncertainties include, but are not limited to, domestic and international economic conditions, including exchange rates, the effects of competition and regulation, uncertainties in the financial markets, consumer and small business spending patterns and debt levels, conditions affecting the acquisition, development, ownership or use of real estate, actions of vendors, rising costs associated with employees (including health care costs), geopolitical conditions and other risks identified from time to time in the Company's public statements and reports filed with the Securities and Exchange Commission.
COSTCO WHOLESALE CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (dollars in millions, except per share data) (unaudited) 12 Weeks Ended -------------------------- November 21, November 22, 2010 2009 ------------ ------------ REVENUE Net sales $ 18,823 $ 16,922 Membership fees 416 377 ------------ ------------ Total revenue 19,239 17,299 OPERATING EXPENSES Merchandise costs 16,757 15,081 Selling, general and administrative 1,941 1,777 Preopening expenses 12 11 Provision for impaired assets and closing costs, net 4 2 ------------ ------------ Operating income 525 428 OTHER INCOME (EXPENSE) Interest expense (26) (24) Interest income and other, net 5 18 ------------ ------------ INCOME BEFORE INCOME TAXES 504 422 Provision for income taxes 172 152 ------------ ------------ Net income including noncontrolling interests 332 270 Net income attributable to noncontrolling interests (20) (4) ------------ ------------ NET INCOME ATTRIBUTABLE TO COSTCO $ 312 $ 266 ============ ============ NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO: Basic $ 0.72 $ 0.61 ============ ============ Diluted $ 0.71 $ 0.60 ============ ============ Shares used in calculation (000's) Basic 434,099 437,173 Diluted 441,360 444,849 Dividends per share $ 0.205 $ 0.180 COSTCO WHOLESALE CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (dollars in millions) (unaudited) Subject to Reclassifications November 21, August 29, 2010 2010 ------------ ------------ ASSETS Cash and cash equivalents $ 3,739 $ 3,214 Short-term investments 1,545 1,535 Receivables, net 985 884 Merchandise inventories 6,852 5,638 Deferred income taxes and other current assets 437 437 ------------ ------------ Total current assets 13,558 11,708 Property and equipment, net 12,019 11,314 Other assets 466 793 ------------ ------------ TOTAL ASSETS $ 26,043 $ 23,815 ============ ============ LIABILITIES AND EQUITY Accounts payable $ 7,205 $ 5,947 Short-term borrowings and current portion of long-term debt 24 26 Other current liabilities 4,273 4,090 ------------ ------------ Total current liabilities 11,502 10,063 Long-term debt, excluding current portion 2,143 2,141 Deferred income taxes and other liabilities 691 681 ------------ ------------ Total liabilities 14,336 12,885 ------------ ------------ Total Costco stockholders' equity 11,199 10,829 Noncontrolling interests 508 101 ------------ ------------ Total equity 11,707 10,930 ------------ ------------ TOTAL LIABILITIES AND EQUITY $ 26,043 $ 23,815 ============ ============
Contact Information: CONTACTS: Costco Wholesale Corporation Richard Galanti 425/313-8203 Bob Nelson 425/313-8255 Jeff Elliott 425/313-8264