849
EXHIBIT H.8  Costco: Invested Capital and Total Funds Invested
$ million
Historical
Forecast
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
Operating cash1
2,324
2,374
2,581
2,832
3,054
3,345
3,571
3,802
4,031
4,256
4,478
4,694
4,906
5,111
5,315
Receivables, net
1,224
1,252
1,432
1,669
1,535
1,681
1,795
1,911
2,026
2,139
2,251
2,359
2,466
2,569
2,672
Merchandise inventories
8,908
8,969
9,834
11,040
11,395
12,466
13,293
14,137
14,987
15,826
16,649
17,455
18,240
19,004
19,764
Other current assets
227
268
272
321
1,111
1,217
1,299
1,383
1,466
1,548
1,629
1,708
1,785
1,859
1,934
Operating current assets
12,683
12,863
14,119
15,862
17,095
18,708
19,958
21,233
22,510
23,769
25,006
26,216
27,396
28,543
29,684
Accounts payable
(9,011)
(7,612)
(9,608)
(11,237)
(11,679)
(12,776)
(13,624)
(14,489)
(15,361)
(16,220)
(17,064)
(17,890)
(18,695)
(19,477)
(20,256)
Accrued salaries and benefits
(2,468)
(2,629)
(2,703)
(2,994)
(3,176)
(3,478)
(3,714)
(3,954)
(4,192)
(4,426)
(4,656)
(4,882)
(5,101)
(5,315)
(5,528)
Accrued member rewards
(813)
(869)
(961)
(1,057)
(1,180)
(1,292)
(1,380)
(1,469)
(1,557)
(1,644)
(1,730)
(1,814)
(1,895)
(1,975)
(2,054)
Deferred membership fees
(1,269)
(1,362)
(1,498)
(1,624)
(1,711)
(1,874)
(2,001)
(2,130)
(2,258)
(2,384)
(2,509)
(2,630)
(2,748)
(2,863)
(2,978)
Other current liabilities
(1,686)
(1,993)
(2,632)
(2,917)
(3,766)
(4,125)
(4,403)
(4,688)
(4,970)
(5,248)
(5,521)
(5,789)
(6,049)
(6,302)
(6,554)
Operating current liabilities
(15,247)
(14,465)
(17,402)
(19,829)
(21,512)
(23,545)
(25,122)
(26,730)
(28,338)
(29,924)
(31,481)
(33,004)
(34,489)
(35,933)
(37,370)
Operating working capital
(2,564)
(1,602)
(3,284)
(3,967)
(4,417)
(4,837)
(5,164)
(5,497)
(5,828)
(6,154)
(6,474)
(6,788)
(7,093)
(7,390)
(7,686)
Property, plant, and equipment
15,401
17,043
18,161
19,681
20,890
22,879
24,426
26,006
27,570
29,113
30,628
32,110
33,555
34,959
36,357
Capitalized operating leases2
2,230
2,320
2,528
2,500
2,414
2,644
2,823
3,005
3,186
3,364
3,539
3,711
3,878
4,040
4,202
Other assets3
631
700
615
544
627
687
733
781
828
874
919
964
1,007
1,049
1,091
Other liabilities3
(445)
(534)
(515)
(607)
(517)
(566)
(605)
(644)
(682)
(721)
(758)
(795)
(830)
(865)
(900)
Invested capital
15,253
17,928
17,506
18,151
18,997
20,806
22,213
23,651
25,073
26,476
27,854
29,202
30,516
31,793
33,065
Excess cash1
4,095
2,355
3,199
4,427
6,390
5,112
3,834
2,556
1,278
—
—
—
—
—
—
Foreign tax credit carryforward4
—
—
—
—
65
65
65
65
65
65
65
65
65
65
65
Total funds invested
19,348
20,282
20,704
22,578
25,452
25,983
26,112
26,272
26,416
26,541
27,919
29,267
30,581
31,858
33,130
1 Operating cash is estimated at 2% of revenues. Remaining cash is treated as excess cash.
2 Capitalized operating leases are estimated for 2019 in Exhibit 22.10.
3 Other assets and liabilities are classified as operating because no description is provided by the company.
4 Foreign tax credit carryforward is reported in Exhibit H.7.

850
EXHIBIT H.9  Costco: Reconciliation of Total Funds Invested
$ million
Historical
Forecast
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
Long-term debt and capital leases1
6,443
5,535
7,039
6,974
7,244
7,892
8,225
8,552
8,894
9,245
9,606
9,984
10,379
10,792
11,224
Capitalized operating leases2
2,230
2,320
2,528
2,500
2,414
2,644
2,823
3,005
3,186
3,364
3,539
3,711
3,878
4,040
4,202
Debt and debt equivalents
8,673
7,855
9,567
9,474
9,658
10,536
11,048
11,558
12,080
12,609
13,145
13,695
14,257
14,832
15,426
Deferred income taxes, operating3
(61)
158
76
(39)
120
162
208
265
291
340
427
489
553
620
688
Deferred income taxes, nonoperating3
(107)
(63)
(18)
40
90
90
90
90
90
90
90
90
90
90
90
Noncontrolling interests
226
253
301
304
341
341
341
341
341
341
341
341
341
341
341
Costco shareholders’ equity
10,617
12,079
10,778
12,799
15,243
14,854
14,425
14,018
13,615
13,161
13,916
14,652
15,340
15,975
16,585
Equity and equity equivalents
10,675
12,427
11,137
13,104
15,794
15,447
15,065
14,714
14,337
13,932
14,774
15,572
16,324
17,026
17,704
Total funds invested
19,348
20,282
20,704
22,578
25,452
25,983
26,112
26,272
26,416
26,541
27,919
29,267
30,581
31,858
33,130
1 Including current portion.
2 Capitalized operating leases are estimated for 2019 in Exhibit 22.10.
3 Deferred-tax liabilities, net of assets. Deferred taxes are detailed in Exhibit H.7.