Costco

Analysis of Costco Wholesale Corporation's Stockholders' Equity for fiscal year ending

September 3, 2006

Types of Stock:: Preferred and Common Stock

Par Value and stated value of each stock

Type of Stock Par Value Stated Value Shares Authorized Shares Issued Shares Outstanding

Common $0.005 n/a 100,000,000 0 0

Preferred $0.005 n/a 900,000,000 462,279,000 472,480,000

Book Value = {(Stockholders' Equity (-) Preferred Stock) / Avg. Outstanding Shares}

$0.0193 = ($9,143,439 / 472,480,000)

STOCKHOLDERS' EQUITY

(dollars in thousands) Sept. 3, 2006

Aug. 28, 2005

Preferred stock $.005 par value; 100,000,000 shares authorized; no shares issued and outstanding Ð'-- Ð'--

Common stock $.005 par value; 900,000,000 shares authorized; 440,230,000 and 462,279,000 shares issued and outstanding 2,312 2,362

Additional paid-in capital 2,822,652 2,096,554

Accumulated other comprehensive income 277,263 158,039

Retained earnings 6,041,212 6,624,154

Total stockholders' equity 9,143,439 8,881,109

Per the financial statement notes, the 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:

Comprehensive Income September 3, 2006 August 28, 2005

Net income $1,103,215 $1,063,092

Unrealized losses on short-term investments, net of tax benefit of $210, $2,719 in 2006 and 2005, respectively (330) (4,378)

Foreign currency translation adjustment and other, net of tax provision of $4,088, $6,037 in 2006,

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