Equity and Comprehensive Income

9 Months Ended

May 12, 2013

Equity [Abstract]

Equity and Comprehensive Income

Note 5—Equity and Comprehensive Income

Dividends

The Company’s current quarterly dividend rate is $0.31 per share, compared to the $0.275 per share rate declared subsequent to the end of the third quarter of 2012. On November 28, 2012, the Board of Directors declared a special cash dividend of $7.00 per share, which was paid on December 18, 2012.

Stock Repurchase Programs

There was no stock repurchase activity in the third quarter of 2013. In the third quarter of 2012, we repurchased 1,488,000 shares, at an average price of $87.41, totaling $130. In the first thirty-six weeks of 2013 and 2012, we repurchased 357,000 shares and 5,369,000 shares, at an average price of $96.41 and $83.38, for a total expenditure of $34 and $448, respectively. The remaining amount available for stock repurchases under our approved plan was $3,055 at May 12, 2013. These amounts differ from the stock repurchase balances in the condensed consolidated statements of cash flows due to changes in unsettled stock repurchases at the end of the quarter. Purchases are made from time-to-time, as conditions warrant, in the open market or in block purchases, and pursuant to plans under SEC Rule 10b5-1. Repurchased shares are retired, in accordance with the Washington Business Corporation Act.

Components of Equity and Comprehensive Income

The following tables show the changes in equity attributable to Costco and the noncontrolling interests of consolidated subsidiaries and other entities in which the Company has a controlling interest, but less than total ownership:

	Attributable to Costco			Noncontrolling Interests			Total Equity
Equity at September 2, 2012	$	12,361		$	157		$	12,518
Comprehensive income:
Net income	1,422			17			1,439
Foreign-currency translation adjustment and other, net	(75		)	1			(74		)
Comprehensive income	1,347			18			1,365
Stock-based compensation	210			0			210
Stock options exercised, including tax effects	67			0			67
Release of vested restricted stock units (RSUs), including tax effects	(85		)	0			(85		)
Conversion of convertible notes	30			0			30
Repurchases of common stock	(34		)	0			(34		)
Cash dividends declared	(3,424		)	0			(3,424		)
Equity at May 12, 2013	$	10,472		$	175		$	10,647
	Attributable to Costco			Noncontrolling Interests			Total Equity
Equity at August 28, 2011	$	12,002		$	571		$	12,573
Comprehensive income:
Net income	1,100			45			1,145
Foreign-currency translation adjustment and other, net	(54		)	(18		)	(72		)
Comprehensive income	1,046			27			1,073
Stock-based compensation	179			0			179
Stock options exercised, including tax effects	89			0			89
Release of vested RSUs, including tax effects	(75		)	0			(75		)
Conversion of convertible notes	1			0			1
Repurchases of common stock	(448		)	0			(448		)
Cash dividends declared	(209		)	0			(209		)
Equity at May 6, 2012	$	12,585		$	598		$	13,183