Costco Wholesale Corporation Reports First Quarter Fiscal Year 2012 Operating Results

ISSAQUAH, WA--(Marketwire - Dec 8, 2011) - Costco Wholesale Corporation ("Costco" or the "Company") (NASDAQ: COST) announced today its operating results for the first quarter (twelve weeks) of fiscal 2012, ended November 20, 2011.

Net sales for the quarter increased thirteen percent to $21.18 billion from $18.82 billion during the first quarter of fiscal 2011. Comparable sales for the first quarter of fiscal 2012 were as follows:

	12 Weeks
U.S.	10%
International	11%
Total Company	10%

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.	6%
International	10%
Total Company	7%

Net income for the quarter was $320 million, or $.73 per diluted share, compared to $312 million, or $.71 per diluted share, for the first quarter of fiscal 2011. First quarter results were negatively impacted by a $24 million charge relating to the settlement of an income tax audit of the Company's 50% owned Mexico joint venture. The impact on net income attributable to Costco was $12 million, or $.03 per diluted share. Also negatively impacting this year's results was a $17 million charge, or $.04 per diluted share, for contributions to the Yes on 1183 Coalition in support of an initiative reforming alcoholic beverage laws in Washington State. (The initiative was approved by a 59% to 41% margin.) These contributions were not tax deductible under U.S. tax laws.

Costco currently operates 596 warehouses, including 433 in the United States and Puerto Rico, 82 in Canada, 32 in Mexico, 22 in the United Kingdom, nine in Japan, eight in Taiwan, seven in Korea and three in Australia. The Company also operates Costco Online, an electronic commerce web site, at www.costco.com and at www.costco.ca in Canada. The Company plans to open two additional warehouses in Japan prior to the end of calendar year 2011.

A conference call to discuss these fiscal 2012 first quarter results is scheduled for 8:00 a.m. (PT) today, December 8, 2011, 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), energy, and certain commodities, 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 20, 2011				November 21, 2010
REVENUE
	Net sales			$	21,181			$	18,823
	Membership fees				447				416
		Total revenue			21,628				19,239
OPERATING EXPENSES
	Merchandise costs				18,931				16,757
	Selling, general and administrative				2,145				1,941
	Preopening expenses				10				12
	Provision for impaired assets and closing costs, net				(1	)			4
		Operating income			543				525
OTHER INCOME (EXPENSE)
	Interest expense				(27	)			(26	)
	Interest income and other, net				37				5
INCOME BEFORE INCOME TAXES					553				504
	Provision for income taxes				225				172
Net income including noncontrolling interests					328				332
Net income attributable to noncontrolling interests					(8	)			(20	)
NET INCOME ATTRIBUTABLE TO COSTCO				$	320			$	312
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:
	Basic			$	0.74			$	0.72
	Diluted			$	0.73			$	0.71
Shares used in calculation (000's)
	Basic				434,222				434,099
	Diluted				440,615				441,360
Dividends per share				$	0.240			$	0.205

COSTCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in millions)
(unaudited)
Subject to Reclassifications
		November 20, 2011			August 28, 2011
ASSETS
Cash and cash equivalents		$	4,319		$	4,009
Short-term investments			1,596			1,604
Receivables, net			982			965
Merchandise inventories			7,618			6,638
Deferred income taxes and other current assets			478			490
	Total current assets		14,993			13,706
Property and equipment, net			12,381			12,432
Other assets			630			623
TOTAL ASSETS		$	28,004		$	26,761
	LIABILITIES AND EQUITY
Short-term borrowings and current portion of long-term debt		$	934		$	900
Accounts payable			7,576			6,544
Other current liabilities			4,801			4,606
	Total current liabilities		13,311			12,050
Long-term debt, excluding current portion			1,330			1,253
Deferred income taxes and other liabilities			916			885
	Total liabilities		15,557			14,188
Total Costco stockholders' equity			11,909			12,002
Noncontrolling interests			538			571
	Total equity		12,447			12,573
TOTAL LIABILITIES AND EQUITY		$	28,004		$	26,761