COST Financial_Report

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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 costco.com in the U.S. a nd costco.ca 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&...
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This document was uploaded on 04/07/2014.

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