COST Financial_Report

Va lign3dbottomfont siz e3d1xa0 td va lign3dbottomfont

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: d Sta tes (U.S.) loca tions (in 4 0 U.S. sta tes a nd Puerto Rico), 82 Ca na dia n loca tions (in 9 Ca na dia n provinces), 32 Mexico loca tions, 22 United Kingdom (U.K.) loca tions, 13 Ja pa n loca tions, 9 Ta iwa n loca tions, 8 Korea loca tions, a nd 3 Austra lia loca tions. The Compa ny a lso opera tes online businesses a t in the U.S. a nd in Ca na da .</font></p> <p style=3D'MARGIN-TOP: 18px Presenta tion</i></font></p> <p style=3D'MARGIN-TOP: 6 px <font style=3D'FONT-FAMILY: ARIAL' siz e=3D2>The consolida ted fina ncia l sta tements include the a ccounts of Costco Wholesa le Corpora tion, a Wa shington corpora tion, its wholly-owned subsidia ries, subsidia ries in which it ha s a controlling interest, consolida ted entities in which it ha s ma de equity investments, or ha s other interests through which it ha s ma jority-voting control or it exercises the right to direct the a ctivities tha t most significa ntly impa ct the entity&#x2019 Compa ny). The Compa ny reports noncontrolling interests in consolida ted entities a s a component of equity sepa ra te from the Compa ny&#x2019 between a nd a mong the Compa ny a nd its consolida ted subsidia ries a nd other consolida ted entities ha ve been elimina ted in consolida tion. The Compa ny&#x2019 noncontrolling interests in its opera tions in Costco Mexico (Mexico) (prior to the July 2012 a cquisition of the 50% noncontrolling interest described below), Ta iwa n, a nd Korea . Unless otherwise noted, references to net income rela te to net income a ttributa ble to Costco.</font></p> <p style=3D'MARGIN-TOP: 12px <font style=3D'FONT-FAMILY: ARIAL' siz e=3D2>At the beginning of fisca l 2011, the Compa ny bega n consolida ting Mexico, a t tha t time a 50% owned joint venture, on a prospective ba sis due to the a doption of a new a ccounting sta nda rd. Mexico&#x2019 2010 were a ccounted for under the equity method a nd the Compa ny&#x2019 a nd other, net.&#x201D a nd 2011, the fina ncia l position a nd results of Mexico&#x2019 opera tions a re fully consolida ted a nd the joint venture pa rtner&#x2019 to noncontrolling interests.&#x201D Mexico increa sed tota l a ssets, lia bilities, a nd revenue by a pproxima tely 3% , with no impa ct on net income or net income per common sha re a ttributa ble to Costco. The Compa ny&#x2019 method investment in Mexico a s of August&#xA0 derecogniz ed a nd the noncontrolling interest in Mexico tota ling $357 wa s recogniz ed a s pa rt of the initia l consolida tion of the joint venture on August&#xA0 consolida ted sta tements of tota l equity a nd comprehensive income.</font></p> </div><spa n></spa n></td> < /tr> < tr cla ss=3Dro> < td cla ss=3Dpl va lign=3Dtop>Acquisition of Noncontrolling Interest in Mexico</td> < td cla ss=3Dtext><div> <p style=3D'MARGIN-TOP: 18px Interest in Mexico</i></font></p> <p style=3D'MARGIN-TOP: 6 px <font style=3D'FONT-FAMILY: ARIAL' siz e=3D2>In July 2012, Costco purcha sed its former joint venture pa rtner&#x2019 interest of Mexico for $789 . In a ddition, Mexico decla red a ca sh dividend of $36 6 , 50% pa ya ble to the Compa ny a nd 50% pa ya ble to Costco&#x2019 dividend proceeds a nd existing ca sh a nd investment ba la nces to fund the purcha se.</font></p> </div&...
View Full Document

This document was uploaded on 04/07/2014.

Ask a homework question - tutors are online