Costco 2006 Annual Report Download - page 60

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Payment of future dividends is subject to declaration by the Board of Directors. Factors considered in
determining the size of the dividends are profitability and expected capital needs of the Company. The
Company presently expects to continue to pay dividends on a quarterly basis.
Stock Repurchase Programs
The Company’s Board of Directors has approved the following stock repurchase programs:
Amount
Approved Amount
Remaining
August 2005 ....................................... $1,000,000 $ —
January 2006(1) .................................... 1,000,000 625,534
July 2006(2) ....................................... 2,000,000 2,000,000
Total .............................................. $4,000,000 $2,625,534
(1) Expires in January 2009.
(2) Expires in July 2009.
During fiscal 2005, the Company repurchased 9,205,000 shares of common stock at an average price
of $44.89, totaling approximately $413,252, including commissions. During fiscal 2006, the Company
repurchased 28,407,000 shares at an average price of $51.44, totaling approximately $1,461,217,
including commissions. Purchases are made from time-to-time as conditions warrant in the open
market or in block purchases, or pursuant to share repurchase plans under SEC Rule 10b5-1.
Repurchased shares are retired.
Comprehensive Income
Comprehensive income includes net income, plus certain other items that are recorded directly to
stockholders’ equity. Accumulated other comprehensive income reported on the Company’s
consolidated balance sheets consists of foreign currency translation adjustments and unrealized gains
and losses on short-term investments.
The following table shows the components of comprehensive income, net of related tax effects:
September 3,
2006 August 28,
2005 August 29,
2004
Net income ...................................... $1,103,215 $1,063,092 $882,393
Unrealized losses on short-term investments, net of tax
benefit of $210, $2,719 and $0 in 2006, 2005, and
2004, respectively .............................. (330) (4,378) (140)
Foreign currency translation adjustment and other, net of
tax provision of $4,088, $6,037 and $0 in 2006, 2005
and 2004, respectively ........................... 119,554 146,273 94,264
Total comprehensive income ....................... $1,222,439 $1,204,987 $976,517
The favorable translation adjustments during fiscal years 2006, 2005 and 2004 were primarily due to
stronger foreign currencies.
The components of accumulated other comprehensive income, net of tax, were as follows:
September 3,
2006 August 28,
2005
Foreign currency translation adjustments and other .......... $282,112 $162,558
Unrealized losses on short-term investments ................ (4,849) (4,519)
Accumulated other comprehensive income ............. $277,263 $158,039
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