Cover
Cover - shares | 6 Months Ended | |
Feb. 14, 2021 | Mar. 03, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Feb. 14, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Transition Report | false | |
Entity File Number | 0-20355 | |
Entity Registrant Name | COSTCO WHOLESALE CORP /NEW | |
Entity Incorporation, State or Country Code | WA | |
Entity Tax Identification Number | 91-1223280 | |
Entity Address, Address Line One | 999 Lake Drive | |
Entity Address, City or Town | Issaquah | |
Entity Address, State or Province | WA | |
Entity Address, Postal Zip Code | 98027 | |
City Area Code | 425 | |
Local Phone Number | 313-8100 | |
Title of 12(b) Security | Common Stock, $.01 Par Value | |
Trading Symbol | COST | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 442,533,785 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000909832 | |
Current Fiscal Year End Date | --08-29 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 14, 2021 | Feb. 16, 2020 | Feb. 14, 2021 | Feb. 16, 2020 | |
REVENUE | ||||
Total Revenue | $ 44,769 | $ 39,072 | $ 87,977 | $ 76,112 |
OPERATING EXPENSES | ||||
Merchandise costs | 39,078 | 34,056 | 76,536 | 66,289 |
Selling, general and administrative | 4,342 | 3,743 | 8,640 | 7,475 |
Preopening expenses | 9 | 7 | 31 | 21 |
Operating income | 1,340 | 1,266 | 2,770 | 2,327 |
OTHER INCOME (EXPENSE) | ||||
Interest expense | (40) | (34) | (79) | (72) |
Interest income and other, net | 19 | 45 | 48 | 80 |
INCOME BEFORE INCOME TAXES | 1,319 | 1,277 | 2,739 | 2,335 |
Provision for income taxes | 348 | 330 | 587 | 532 |
Net income including noncontrolling interests | 971 | 947 | 2,152 | 1,803 |
Net income attributable to noncontrolling interests | (20) | (16) | (35) | (28) |
NET INCOME ATTRIBUTABLE TO COSTCO | $ 951 | $ 931 | $ 2,117 | $ 1,775 |
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO: | ||||
Basic (in dollars per share) | $ 2.15 | $ 2.10 | $ 4.78 | $ 4.02 |
Diluted (in dollars per share) | $ 2.14 | $ 2.10 | $ 4.76 | $ 4 |
Shares used in calculation (000's) | ||||
Basic (shares) | 443,134 | 442,021 | 443,043 | 441,920 |
Diluted (shares) | 444,494 | 443,727 | 444,440 | 443,704 |
Net Sales | ||||
REVENUE | ||||
Total Revenue | $ 43,888 | $ 38,256 | $ 86,235 | $ 74,492 |
Membership fees | ||||
REVENUE | ||||
Total Revenue | $ 881 | $ 816 | $ 1,742 | $ 1,620 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 14, 2021 | Feb. 16, 2020 | Feb. 14, 2021 | Feb. 16, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME INCLUDING NONCONTROLLING INTERESTS | $ 971 | $ 947 | $ 2,152 | $ 1,803 |
Foreign-currency translation adjustment and other, net | 148 | 47 | 357 | 172 |
Comprehensive income | 1,119 | 994 | 2,509 | 1,975 |
Less: Comprehensive income attributable to noncontrolling interests | 28 | 22 | 56 | 44 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO COSTCO | $ 1,091 | $ 972 | $ 2,453 | $ 1,931 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Feb. 14, 2021 | Aug. 30, 2020 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 8,637,000,000 | $ 12,277,000,000 |
Short-term investments | 617,000,000 | 1,028,000,000 |
Receivables, net | 1,934,000,000 | 1,550,000,000 |
Merchandise inventories | 13,865,000,000 | 12,242,000,000 |
Other current assets | 1,255,000,000 | 1,023,000,000 |
Total current assets | 26,308,000,000 | 28,120,000,000 |
OTHER ASSETS | ||
Net property and equipment | 22,531,000,000 | 21,807,000,000 |
Operating Lease, Right-of-Use Asset | 2,887,000,000 | 2,788,000,000 |
Other long-term assets | 3,192,000,000 | 2,841,000,000 |
TOTAL ASSETS | 54,918,000,000 | 55,556,000,000 |
CURRENT LIABILITIES | ||
Accounts payable | 14,383,000,000 | 14,172,000,000 |
Accrued salaries and benefits | 4,132,000,000 | 3,605,000,000 |
Accrued member rewards | 1,541,000,000 | 1,393,000,000 |
Deferred membership fees | 2,048,000,000 | 1,851,000,000 |
Current portion of long-term debt | 95,000,000 | 95,000,000 |
Other current liabilities | 4,365,000,000 | 3,728,000,000 |
Total current liabilities | 26,564,000,000 | 24,844,000,000 |
OTHER LIABILITIES | ||
Long-term debt, excluding current portion | 7,522,000,000 | 7,514,000,000 |
Operating lease, liability, noncurrent | 2,651,000,000 | 2,558,000,000 |
Other long-term liabilities | 2,052,000,000 | 1,935,000,000 |
TOTAL LIABILITIES | 38,789,000,000 | 36,851,000,000 |
EQUITY | ||
Preferred stock $.01 par value; 100,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock $0.01 par value; 900,000,000 shares authorized; 442,654,000 and 441,255,000 shares issued and outstanding | 4,000,000 | 4,000,000 |
Additional paid-in capital | 6,843,000,000 | 6,698,000,000 |
Accumulated other comprehensive loss | (961,000,000) | (1,297,000,000) |
Retained earnings | 9,766,000,000 | 12,879,000,000 |
Total Costco stockholders' equity | 15,652,000,000 | 18,284,000,000 |
Noncontrolling interests | 477,000,000 | 421,000,000 |
TOTAL EQUITY | 16,129,000,000 | 18,705,000,000 |
TOTAL LIABILITIES AND EQUITY | $ 54,918,000,000 | $ 55,556,000,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Feb. 14, 2021 | Aug. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 900,000,000 | 900,000,000 |
Common Stock, Shares, Issued | 442,654,000 | 441,255,000 |
Common Stock, Shares, Outstanding | 442,654,000 | 441,255,000 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity Statement - USD ($) shares in Thousands, $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Parent [Member] | Noncontrolling Interest [Member] |
Common Stock at beginning of period (shares) at Sep. 01, 2019 | 439,625 | ||||||
Equity at beginning of period at Sep. 01, 2019 | $ 15,584 | $ 4 | $ 6,417 | $ (1,436) | $ 10,258 | $ 15,243 | $ 341 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 1,803 | 1,775 | 1,775 | 28 | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 172 | 156 | 156 | 16 | |||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 420 | 420 | 420 | ||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 2,259 | ||||||
Stock Issued During Period, Value, Stock Options Exercised | $ (327) | (327) | (327) | ||||
Stock Repurchased and Retired During Period, Shares | (262) | (262) | |||||
Stock Repurchased and Retired During Period, Value | $ (79) | (4) | (75) | (79) | |||
Cash dividends declared | (574) | (574) | (574) | ||||
Common Stock at end of period (shares) at Feb. 16, 2020 | 441,622 | ||||||
Equity at end of period at Feb. 16, 2020 | 16,999 | $ 4 | 6,506 | (1,280) | 11,384 | 16,614 | 385 |
Common Stock at beginning of period (shares) at Nov. 24, 2019 | 441,778 | ||||||
Equity at beginning of period at Nov. 24, 2019 | 16,224 | $ 4 | 6,391 | (1,321) | 10,787 | 15,861 | 363 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 947 | 931 | 931 | 16 | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 47 | 41 | 41 | 6 | |||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 118 | 118 | 118 | ||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 6 | ||||||
Stock Issued During Period, Value, Stock Options Exercised | $ (1) | (1) | (1) | ||||
Stock Repurchased and Retired During Period, Shares | (162) | (162) | |||||
Stock Repurchased and Retired During Period, Value | $ (49) | (2) | (47) | (49) | |||
Cash dividends declared | (287) | (287) | (287) | ||||
Common Stock at end of period (shares) at Feb. 16, 2020 | 441,622 | ||||||
Equity at end of period at Feb. 16, 2020 | $ 16,999 | $ 4 | 6,506 | (1,280) | 11,384 | 16,614 | 385 |
Common Stock at beginning of period (shares) at Aug. 30, 2020 | 441,255 | 441,255 | |||||
Equity at beginning of period at Aug. 30, 2020 | $ 18,705 | $ 4 | 6,698 | (1,297) | 12,879 | 18,284 | 421 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 2,152 | 2,117 | 2,117 | 35 | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 357 | 336 | 336 | 21 | |||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 465 | 465 | 465 | ||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 1,920 | ||||||
Stock Issued During Period, Value, Stock Options Exercised | $ (311) | (311) | (311) | ||||
Stock Repurchased and Retired During Period, Shares | (521) | (521) | |||||
Stock Repurchased and Retired During Period, Value | $ (189) | (9) | (180) | (189) | |||
Cash dividends declared | $ (5,050) | (5,050) | (5,050) | ||||
Common Stock at end of period (shares) at Feb. 14, 2021 | 442,654 | 442,654 | |||||
Equity at end of period at Feb. 14, 2021 | $ 16,129 | $ 4 | 6,843 | (961) | 9,766 | 15,652 | 477 |
Common Stock at beginning of period (shares) at Nov. 22, 2020 | 442,955 | ||||||
Equity at beginning of period at Nov. 22, 2020 | 15,309 | $ 4 | 6,725 | (1,101) | 9,232 | 14,860 | 449 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 971 | 951 | 951 | 20 | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 148 | 140 | 140 | 8 | |||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 123 | 123 | 123 | ||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 7 | ||||||
Stock Issued During Period, Value, Stock Options Exercised | $ 0 | 0 | 0 | ||||
Stock Repurchased and Retired During Period, Shares | (308) | (308) | |||||
Stock Repurchased and Retired During Period, Value | $ (112) | (5) | (107) | (112) | |||
Cash dividends declared | $ (310) | (310) | (310) | ||||
Common Stock at end of period (shares) at Feb. 14, 2021 | 442,654 | 442,654 | |||||
Equity at end of period at Feb. 14, 2021 | $ 16,129 | $ 4 | $ 6,843 | $ (961) | $ 9,766 | $ 15,652 | $ 477 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Feb. 14, 2021 | Feb. 16, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income including noncontrolling interests | $ 2,152 | $ 1,803 |
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities: | ||
Depreciation and amortization | 820 | 758 |
Operating Lease, Right-of-Use Asset, Amortization Expense | 77 | |
Non-cash lease expense | 124 | |
Stock-based compensation | 463 | 419 |
Other non-cash operating activities, net | (6) | 14 |
Deferred income taxes | (21) | 1 |
Changes in operating assets and liabilities: | ||
Merchandise inventories | (1,480) | (394) |
Accounts payable | (191) | 537 |
Other operating assets and liabilities, net | 442 | 580 |
Net Cash Provided by (Used in) Operating Activities | 2,685 | 2,721 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of short-term investments | (384) | (636) |
Maturities of short-term investments | 823 | 777 |
Additions to property and equipment | (1,466) | (1,260) |
Other investing activities, net | (10) | 19 |
Net Cash Provided by (Used in) Investing Activities | (1,037) | (1,100) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Change in bank checks outstanding | (67) | (17) |
Repayments of long-term debt | 0 | (1,200) |
Tax withholdings on stock-based awards | (311) | (327) |
Repurchases of common stock | (186) | (77) |
Cash dividend payments | (4,740) | (573) |
Other financing activities, net | (46) | (34) |
Net Cash Provided by (Used in) Financing Activities | (5,350) | (2,228) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 62 | 9 |
Net change in cash and cash equivalents | (3,640) | (598) |
CASH AND CASH EQUIVALENTS BEGINNING OF YEAR | 12,277 | 8,384 |
CASH AND CASH EQUIVALENTS END OF PERIOD | 8,637 | 7,786 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Interest paid | 78 | 60 |
Income taxes, net | 755 | 380 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES: | ||
Cash dividend declared, but not yet paid | $ 310 | $ 287 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Feb. 14, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Policies | Note 1—Summary of Significant Accounting Policies Description of Business Costco Wholesale Corporation (Costco or the Company), a Washington corporation, and its subsidiaries operate membership warehouses based on the concept that offering members low prices on a limited selection of nationally branded and private-label products in a wide range of merchandise categories will produce high sales volumes and rapid inventory turnover. For the period ended February 14, 2021, Costco operated 803 warehouses worldwide: 558 in the United States (U.S.) located in 45 states, Washington, D.C., and Puerto Rico, 102 in Canada, 39 in Mexico, 29 in the United Kingdom (U.K.), 27 in Japan, 16 in Korea, 14 in Taiwan, 12 in Australia, three in Spain, and one each in Iceland, France and China. The Company operates e-commerce websites in the U.S., Canada, Mexico, U.K., Korea, Taiwan, Japan, and Australia. Basis of Presentation The condensed consolidated financial statements include the accounts of Costco, its wholly owned subsidiaries, and subsidiaries in which it has a controlling interest. The Company reports noncontrolling interests in consolidated entities as a component of equity separate from the Company’s equity. All material inter-company transactions between and among the Company and its consolidated subsidiaries have been eliminated in consolidation. The Company’s net income excludes income attributable to the noncontrolling interest in Taiwan. Unless otherwise noted, references to net income relate to net income attributable to Costco. These unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q for interim financial reporting pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). While these statements reflect all normal recurring adjustments that are, in the opinion of management, necessary for fair presentation of the results of the interim period, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles (U.S. GAAP) for complete financial statements. Therefore, the interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company's Annual Report filed on Form 10-K for the fiscal year ended August 30, 2020. Fiscal Year End The Company operates on a 52/53 week fiscal year basis, with the fiscal year ending on the Sunday closest to August 31. Fiscal 2021 is a 52-week year ending on August 29, 2021. References to the second quarter of 2021 and 2020 relate to the 12-week fiscal quarters ended February 14, 2021, and February 16, 2020, respectively. References to the first half of 2021 and 2020 relate to the 24 weeks ended February 14, 2021, and February 16, 2020, respectively. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates and assumptions take into account historical and forward looking factors that the Company believes are reasonable, including but not limited to the potential impacts arising from the novel |
Business Combinations
Business Combinations | 6 Months Ended |
Feb. 14, 2021 | |
Business Combinations [Abstract] | |
Business Combination Disclosure | Note 2—Acquisition of Innovel On March 17, 2020, the Company acquired Innovel Solutions for $998, using existing cash and cash equivalents. Innovel (now known as Costco Wholesale Logistics or CWL) provides final-mile delivery, installation and white-glove capabilities for big and bulky products across the United States and Puerto Rico. Its financial results have been included in the Company's consolidated financial statements from the date of acquisition. |
Investments
Investments | 6 Months Ended |
Feb. 14, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Note 3—Investments The Company's investments were as follows: February 14, 2021: Cost Unrealized Recorded Available-for-sale: Government and agency securities $ 452 $ 9 $ 461 Held-to-maturity: Certificates of deposit 156 — 156 Total short-term investments $ 608 $ 9 $ 617 August 30, 2020: Cost Unrealized Recorded Available-for-sale: Government and agency securities $ 436 $ 12 $ 448 Held-to-maturity: Certificates of deposit 580 — 580 Total short-term investments $ 1,016 $ 12 $ 1,028 Gross unrecognized holding gains and losses on available-for-sale securities were not material for the periods ended February 14, 2021, and August 30, 2020 . At those dates, there were no available-for-sale securities in a continuous unrealized-loss position. There were no sales of available-for-sale securities during the first half of 2021 or 2020. The maturities of available-for-sale and held-to-maturity securities at February 14, 2021, are as follows: Available-For-Sale Held-To-Maturity Cost Basis Fair Value Due in one year or less $ 206 $ 207 $ 156 Due after one year through five years 246 254 — Total $ 452 $ 461 $ 156 |
Fair Value Measurement
Fair Value Measurement | 6 Months Ended |
Feb. 14, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Note 4—Fair Value Measurement Assets and Liabilities Measured at Fair Value on a Recurring Basis The table below presents information regarding financial assets and liabilities that are measured at fair value on a recurring basis and indicates the level within the fair value hierarchy reflecting the valuation techniques utilized. Level 2 February 14, August 30, Investment in government and agency securities (1) $ 463 $ 508 Forward foreign-exchange contracts, in asset position (2) 4 1 Forward foreign-exchange contracts, in (liability) position (2) (22) (21) Total $ 445 $ 488 _______________ (1) At February 14, 2021, $2 cash and cash equivalents and $461 short-term investments are included in the accompanying condensed consolidated balance sheets. At August 30, 2020, $60 cash and cash equivalents and $448 short-term investments are included in the accompanying condensed consolidated balance sheets. (2) The asset and liability values are included in other current assets and other current liabilities, respectively, in the accompanying condensed consolidated balance sheets. At February 14, 2021, and August 30, 2020, the Company did not hold any Level 1 or 3 financial assets or liabilities that were measured at fair value on a recurring basis. There were no transfers between levels during the first half of 2021 or 2020. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Assets and liabilities recognized and disclosed at fair value on a nonrecurring basis include items such as financial assets measured at amortized cost and long-lived nonfinancial assets. These assets are measured at fair value if determined to be impaired. There were no fair value adjustments to these items during the first half of 2021 or 2020. |
Debt
Debt | 6 Months Ended |
Feb. 14, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Note 5—Debt The carrying value of the Company’s long-term debt consisted of the following: February 14, August 30, 2.300% Senior Notes due May 2022 $ 800 $ 800 2.750% Senior Notes due May 2024 1,000 1,000 3.000% Senior Notes due May 2027 1,000 1,000 1.375% Senior Notes due June 2027 1,250 1,250 1.600% Senior Notes due April 2030 1,750 1,750 1.750% Senior Notes due April 2032 1,000 1,000 Other long-term debt 861 857 Total long-term debt 7,661 7,657 Less unamortized debt discounts and issuance costs 44 48 Less current portion (1) 95 95 Long-term debt, excluding current portion $ 7,522 $ 7,514 _______________ (1) Net of unamortized debt discounts and issuance costs. The fair value of Senior Notes is estimated using Level 2 inputs. Other long-term debt consists of Guaranteed Senior Notes issued by the Company's Japan subsidiary, valued using Level 3 inputs. The fair value of the Company's long-term debt, including the current portion, was approximately $7,895 and $7,987 at February 14, 2021, and August 30, 2020, respectively. |
Equity
Equity | 3 Months Ended |
Feb. 14, 2021 | |
Equity [Abstract] | |
Stockholders' equity | Note 6—Equity Dividends The Company’s current quarterly dividend is $0.70 per share, compared to $0.65 in the second quarter of 2020. On January 21, 2021, the Board of Directors declared a quarterly cash dividend in the amount of $0.70 per share, which was paid on February 19, 2021. On December 11, 2020, an aggregate payment of approximately $4,430 was made in connection with the special cash dividend of $10.00 per share, declared on November 16, 2020. Stock Repurchase Programs Stock repurchase activity during the second quarter and first half of 2021 and 2020 is summarized below: Shares Repurchased (000s) Average Price per Share Total Cost Second quarter of 2021 308 $ 362.95 $ 112 First half of 2021 521 $ 361.52 $ 189 Second quarter of 2020 162 $ 301.50 $ 49 First half of 2020 262 $ 299.40 $ 79 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 6 Months Ended |
Feb. 14, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation Plans | Note 7—Stock-Based Compensation The 2019 Incentive Plan authorized the issuance of 17,500,000 shares (10,000,000 RSUs) of common stock for future grants, plus the remaining shares that were available for grant and the future forfeited shares from grants under the previous plan, up to a maximum of 27,800,000 shares (15,885,000 RSUs). The Company issues new shares of common stock upon vesting of RSUs. Shares for vested RSUs are generally delivered to participants annually, net of shares withheld for taxes. As required by the Company's Seventh Restated 2002 Incentive Plan and 2019 Incentive Plan, in conjunction with the 2021 special cash dividend the number of shares subject to outstanding RSUs was increased on the dividend record date to preserve their value. They were adjusted by multiplying the number of outstanding shares by a factor of 1.019 (rounded up to a whole share), representing the ratio of the Nasdaq closing price of $391.77 on November 30, 2020, which was the last trading day immediately prior to the ex-dividend date, to the Nasdaq opening price of $384.50 on the ex-dividend date, December 1, 2020. The outstanding RSUs increased by approximately 94,000. The adjustment did not result in additional stock-based compensation expense, as the fair value of the awards did not change. As further required by the Seventh Restated 2002 Incentive Plan and the 2019 Incentive Plan, the maximum number of shares issuable under each plan was proportionally adjusted, which resulted in an additional 222,000 RSU shares available to be granted. Summary of Restricted Stock Unit Activity At February 14, 2021, 11,946,000 shares were available to be granted as RSUs, and the following awards were outstanding: • 4,285,000 time-based RSUs, which vest upon continued employment over specified periods; • 29,000 performance-based RSUs, granted to executive officers of the Company, for which the performance targets have been met. The awards vest upon continued employment over specified periods of time; and • 102,000 performance-based RSUs, granted to executive officers of the Company, subject to achievement of performance targets for fiscal 2021, as determined by the Compensation Committee of the Board of Directors after the end of the fiscal year. These awards are included in the table below. The Company recognized compensation expense for these awards in the second quarter of 2021, as it is currently deemed probable that the targets will be achieved. The following table summarizes RSU transactions during the first half of 2021: Number of Weighted-Average Outstanding at August 30, 2020 5,174 $ 207.55 Granted 1,982 369.15 Vested and delivered (2,752) 235.72 Forfeited (82) 250.66 Special cash dividend 94 N/A Outstanding at February 14, 2021 4,416 $ 257.77 The remaining unrecognized compensation cost related to unvested RSUs at February 14, 2021, was $951, and the weighted-average period over which this cost will be recognized is 1.7 years. Summary of Stock-Based Compensation The following table summarizes stock-based compensation expense and the related tax benefits: 12 Weeks Ended 24 Weeks Ended February 14, February 16, February 14, February 16, Stock-based compensation expense $ 122 $ 118 $ 463 $ 419 Less recognized income tax benefit 22 21 97 87 Stock-based compensation expense, net $ 100 $ 97 $ 366 $ 332 |
Income Taxes Income Taxes
Income Taxes Income Taxes | 6 Months Ended |
Feb. 14, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 8—Taxes Other Taxes The Company is subject to multiple examinations for value added, sales-based, payroll, product, import or other non-income taxes in various jurisdictions. In certain cases, the Company has received assessments from the authorities. The possible losses or range of possible losses associated with these matters are either immaterial or an estimate of the possible loss or range of loss cannot be made at this time. If certain matters or a group of matters were to be decided adversely to the Company, it could result in a charge that might be material to the results of an individual fiscal quarter or year. |
Net Income per Common and Commo
Net Income per Common and Common Equivalent Share | 6 Months Ended |
Feb. 14, 2021 | |
Earnings Per Share [Abstract] | |
Net Income Per Common and Common Equivalent Share | Note 9—Net Income per Common and Common Equivalent Share The following table shows the amounts used in computing net income per share and the weighted average number of shares of basic and potentially dilutive common shares outstanding (shares in 000s): 12 Weeks Ended 24 Weeks Ended February 14, February 16, February 14, February 16, Net income attributable to Costco $ 951 $ 931 $ 2,117 $ 1,775 Weighted average basic shares 443,134 442,021 443,043 441,920 RSUs 1,360 1,706 1,397 1,784 Weighted average diluted shares 444,494 443,727 444,440 443,704 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Feb. 14, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10—Commitments and Contingencies Legal Proceedings The Company is involved in a number of claims, proceedings and litigation arising from its business and property ownership. In accordance with applicable accounting guidance, the Company establishes an accrual for legal proceedings if and when those matters present loss contingencies that are both probable and reasonably estimable. There may be exposure to loss in excess of any amounts accrued. The Company monitors those matters for developments that would affect the likelihood of a loss (taking into account where applicable indemnification arrangements concerning suppliers and insurers) and the accrued amount, if any, thereof, and adjusts the amount as appropriate. As of the date of this Report, the Company has recorded immaterial accruals with respect to certain matters described below, in addition to other immaterial accruals for matters not described below. If the loss contingency at issue is not both probable and reasonably estimable, the Company does not establish an accrual, but will continue to monitor the matter for developments that will make the loss contingency both probable and reasonably estimable. In each case, there is a reasonable possibility that a loss may be incurred, including a loss in excess of the applicable accrual. For matters where no accrual has been recorded, the possible loss or range of loss (including any loss in excess of the accrual) cannot, in the Company's view, be reasonably estimated because, among other things: (i) the remedies or penalties sought are indeterminate or unspecified; (ii) the legal and/or factual theories are not well developed; and/or (iii) the matters involve complex or novel legal theories or a large number of parties. The Company is a defendant in an action under the California Labor Code Private Attorneys General Act (PAGA) alleging violation of California Wage Order 7-2001 for failing to provide seating to member service assistants who act as greeters in the Company’s California warehouses. Canela v. Costco Wholesale Corp., et al. ( Case No. 5:13-CV-03598; N.D. Cal.; filed July 1, 2013). The complaint seeks relief under the California Labor Code, including civil penalties and attorneys’ fees. The Company filed an answer denying the material allegations of the complaint. The action has been remanded to state court. In January 2019, an employee brought similar claims for relief concerning Costco employees engaged at member services counters in California. Rodriguez v. Costco Wholesale Corp. (Case No. RG19001310; Alameda Superior Court). The Company filed an answer denying the material allegations of the complaint. In December 2018, a depot employee raised similar claims, alleging that depot employees in California did not receive suitable seating or appropriate workplace temperature conditions. Lane v. Costco Wholesale Corp. (Dec. 6, 2018 Notice to California Labor and Workforce Development Agency). The Company filed an answer denying the material allegations of the complaint. In October 2019, the parties reached an agreement to settle the seating claims on a representative basis, which received court approval in February 2020. In January 2019, a former seasonal employee filed a class action, alleging failure to provide California seasonal employees meal and rest breaks, proper wage statements, and appropriate wages. Jadan v. Costco Wholesale Corp. (Case No. 19-CV-340438; Santa Clara Superior Court). The complaint seeks relief under the California Labor Code, including civil penalties and attorneys’ fees. In October 2019, the parties reached an agreement on a class settlement, which received court approval in January 2021. In March 2019, employees filed a class action against the Company alleging claims under California law for failure to pay overtime, to provide meal and rest periods and itemized wage statements, to timely pay wages due to terminating employees, to pay minimum wages, and for unfair business practices. Relief is sought under the California Labor Code, including civil penalties and attorneys' fees. Nevarez v. Costco Wholesale Corp. (Case No. 2:19-cv-03454; C.D. Cal.). The Company filed an answer denying the material allegations of the complaint. In December 2019, the court issued an order denying class certification. In January 2020, the plaintiffs dismissed their Labor Code claims without prejudice, and the court remanded the action to state court. The remand is being appealed. In May 2019, an employee filed a class action against the Company alleging claims under California law for failure to pay overtime, to provide itemized wage statements, to timely pay wages due to terminating employees, to pay minimum wages, and for unfair business practices. Rough v. Costco Wholesale Corp . (Case No. 2:19-cv-01340; E.D. Cal.). Relief is sought under the California Labor Code, including civil penalties and attorneys' fees. The Company has moved for partial summary judgment, and the parties have filed competing motions regarding class certification. In August 2019, Rough filed a companion case in state court seeking penalties under PAGA. Rough v. Costco Wholesale Corp. (Case No. FCS053454; Sonoma County Superior Court). Relief is sought under the California Labor Code, including civil penalties and attorneys' fees. The state court action has been stayed pending resolution of the federal action. In June 2019, an employee filed a class action against the Company alleging claims under California law for failure to pay overtime, to provide meal and rest periods, itemized wage statements, to timely pay wages due to terminating employees, to pay minimum wages, and for unfair business practices. Martinez v. Costco Wholesale Corp . (Case No. 3:19-cv-05624; N.D. Cal.). The Company filed an answer denying the material allegations of the complaint. In April 2020, an employee, alleging underpayment of sick pay, filed a class and representative action against the Company, alleging claims under California law for failure to pay all wages at termination and for Labor Code penalties under PAGA. Kristy v. Costco Wholesale Corp. (Case No. 5:20-cv-04119; N.D. Cal.). The Company filed a motion to dismiss as to the plaintiff's amended complaint, and the case has been stayed due to the plaintiff's bankruptcy. In July 2020, an employee filed an action under PAGA on behalf of all California non-exempt employees alleging violations of California Labor Code provisions regarding meal and rest periods, minimum wage, overtime, wage statements, reimbursement of expenses, and payment of wages at termination. Schwab v. Costco Wholesale Corp. (Case No. 37-2020-00023551-CU-OE-CTL; San Diego County Superior Court). In August 2020, the Company filed a motion to strike portions of the complaint. In December 2020, a former employee filed suit against the Company asserting collective and class claims on behalf of non-exempt employees under the FLSA and New York Labor Law for failure to pay for all hours worked on a weekly basis and failure to provide proper wage statements and notices. The plaintiff also asserts individual retaliation claims. Cappadora v. Costco Wholesale Corp. (Case No. 1:20-cv-06067; E.D.N.Y.). The Company has not yet responded to the complaint. In December 2017, the United States Judicial Panel on Multidistrict Litigation consolidated numerous cases concerning the impacts of opioid abuses filed against various defendants by counties, cities, hospitals, Native American tribes, third-party payors, and others. In re National Prescription Opiate Litigation (MDL No. 2804) (N.D. Ohio). Included are federal cases that name the Company, including actions filed by counties and cities in Michigan, New Jersey, Oregon, Virginia and South Carolina and a third-party payor in Ohio, class actions filed on behalf of infants born with opioid-related medical conditions in 40 states, and class actions and individual actions filed on behalf of individuals seeking to recover alleged increased insurance costs associated with opioid abuse in 41 states and American Samoa. In 2019, similar actions were commenced against the Company in state court in Utah. Claims against the Company in state courts in New Jersey, Oklahoma, and Arizona have been dismissed. The Company is defending all of these matters. The Company and its CEO and CFO are defendants in putative class actions brought on behalf of shareholders who acquired Company stock between June 6 and October 25, 2018. Johnson v. Costco Wholesale Corp., et al. (W.D. Wash.; filed Nov. 5, 2018); Chen v. Costco Wholesale Corp., et al. (W.D. Wash.; filed Dec. 11, 2018). The complaints allege violations of the federal securities laws stemming from the Company’s disclosures concerning internal control over financial reporting. They seek unspecified damages, equitable relief, interest, and costs and attorneys’ fees. On January 30, 2019, an order was entered consolidating the actions, and a consolidated amended complaint was filed on April 16, 2019. On November 26, 2019, the court entered an order dismissing the consolidated amended complaint and granting the plaintiffs leave to file a further amended complaint. A further amended complaint was filed on March 9, which the court dismissed with prejudice on August 19, 2020. An appeal in the Ninth Circuit is pending. Members of the Board of Directors, one other individual, and the Company are defendants in a shareholder derivative action related to the internal controls and related disclosures identified in the putative class actions, alleging that the individual defendants breached their fiduciary duties. Wedekind v. Hamilton James, Susan Decker, Kenneth Denman, Richard Galanti, Craig Jelinek, Richard Libenson, John Meisenbach, Charles Munger, Jeffrey Raikes, John Stanton, Mary Agnes Wilderotter, and Costco Wholesale Corp. (W.D. Wash.; filed Dec. 11, 2018). The complaint seeks unspecified damages, disgorgement of compensation, corporate governance changes, and costs and attorneys' fees. Because the complaint is derivative in nature, it does not seek monetary damages from the Company, which is a nominal defendant. By agreement among the parties the action has been stayed pending further proceedings in the class action. Similar actions were filed in King County Superior Court on February 20, 2019, Elliott v. Hamilton James, Susan Decker, Kenneth Denman, Richard Galanti, Craig Jelinek, Richard Libenson, John Meisenbach, Charles Munger, Jeffrey Raikes, John Stanton, Mary Agnes Wilderotter, and Costco Wholesale Corp. (Case No. 19-2-04824-7), April 16, 2019, Brad Shuman, et ano. v. Hamilton James, Susan Decker, Kenneth Denman, Richard Galanti, Craig Jelinek, John Meisenbach, Charles Munger, Jeffrey Raikes, John Stanton, Mary Agnes Wilderotter, and Costco Wholesale Corp. (Case No. 19-2-10460-1), and June 12, 2019, Rahul Modi v. Hamilton James, Susan Decker, Kenneth Denman, Richard Galanti, Craig Jelinek, John Meisenbach, Charles Munger, Jeffrey Raikes, John Stanton, Mary Agnes Wilderotter, and Costco Wholesale Corp. (Case No. 19-2-15514-1). These actions have also been stayed. On June 23, 2020, a putative class action was filed against the Company, the “Board of Directors,” the “Costco Benefits Committee” and others under the Employee Retirement Income Security Act, in the United States District Court for the Eastern District of Wisconsin. Dustin S. Soulek v. Costco Wholesale, et al. , Case No. 20-cv-937. The class is alleged to be beneficiaries of the Costco 401(k) plan from June 23, 2014, and the claims are that the defendants breached their fiduciary duties in the operation and oversight of the plan. The complaint seeks injunctive relief, damages, interest, costs, and attorneys' fees. On September 11, 2020, the defendants filed a motion to dismiss the complaint, and on September 21 the plaintiffs filed an amended complaint, which the defendants have also moved to dismiss. The Company does not believe that any pending claim, proceeding or litigation, either alone or in the aggregate, will have a material adverse effect on the Company’s financial position, results of operations or cash flows; however, it is possible that an unfavorable outcome of some or all of the matters, however unlikely, could result in a charge that might be material to the results of an individual fiscal quarter or year. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Feb. 14, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 11—Segment Reporting The Company and its subsidiaries are principally engaged in the operation of membership warehouses in the U.S., Canada, Mexico, U.K., Japan, Korea, Australia, Spain, Iceland, France and China and through a majority-owned subsidiary in Taiwan. Reportable segments are largely based on management’s organization of the operating segments for operational decisions and assessments of financial performance, which consider geographic locations. The material accounting policies of the segments are as described in the notes to the consolidated financial statements included in the Company's Annual Report filed on Form 10-K for the fiscal year ended August 30, 2020, and Note 1 above. Inter-segment net sales and expenses have been eliminated in computing total revenue and operating income. Certain operating expenses, predominantly stock-based compensation, are incurred on behalf of the Company's Canadian and Other International operations, but are included in the U.S. operations because those costs generally come under the responsibility of the Company's U.S. management team. The following table provides information for the Company's reportable segments: United States Canadian Other Total 12 Weeks Ended February 14, 2021 Total revenue $ 32,127 $ 6,001 $ 6,641 $ 44,769 Operating income 790 236 314 1,340 12 Weeks Ended February 16, 2020 Total revenue $ 28,523 $ 5,231 $ 5,318 $ 39,072 Operating income 821 202 243 1,266 24 Weeks Ended February 14, 2021 Total revenue $ 63,419 $ 12,012 $ 12,546 $ 87,977 Operating income 1,638 529 603 2,770 24 Weeks Ended February 16, 2020 Total revenue $ 55,588 $ 10,358 $ 10,166 $ 76,112 Operating income 1,456 430 441 2,327 52 Weeks Ended August 30, 2020 Total revenue $ 122,142 $ 22,434 $ 22,185 $ 166,761 Operating income 3,633 860 942 5,435 Disaggregated Revenue The following table summarizes net sales by merchandise category; sales from business centers and e-commerce are allocated to the relevant categories: 12 Weeks Ended 24 Weeks Ended February 14, February 16, February 14, February 16, Foods and sundries $ 17,624 $ 14,984 $ 35,643 $ 29,516 Hardlines 8,306 6,774 15,636 12,617 Fresh foods 6,254 5,079 12,117 9,655 Softlines 5,417 4,504 10,471 8,801 Ancillary and other 6,287 6,915 12,368 13,903 Total net sales $ 43,888 $ 38,256 $ 86,235 $ 74,492 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Feb. 14, 2021 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy | Basis of Presentation The condensed consolidated financial statements include the accounts of Costco, its wholly owned subsidiaries, and subsidiaries in which it has a controlling interest. The Company reports noncontrolling interests in consolidated entities as a component of equity separate from the Company’s equity. All material inter-company transactions between and among the Company and its consolidated subsidiaries have been eliminated in consolidation. The Company’s net income excludes income attributable to the noncontrolling interest in Taiwan. Unless otherwise noted, references to net income relate to net income attributable to Costco. |
Fiscal Period, Policy | Fiscal Year End The Company operates on a 52/53 week fiscal year basis, with the fiscal year ending on the Sunday closest to August 31. Fiscal 2021 is a 52-week year ending on August 29, 2021. References to the second quarter of 2021 and 2020 relate to the 12-week fiscal quarters ended February 14, 2021, and February 16, 2020, respectively. References to the first half of 2021 and 2020 relate to the 24 weeks ended February 14, 2021, and February 16, 2020, respectively. |
Use of Estimates, Policy | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates and assumptions take into account historical and forward looking factors that the Company believes are reasonable, including but not limited to the potential impacts arising from the novel |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Feb. 14, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale and Held-to-maturity Investments | The Company's investments were as follows: February 14, 2021: Cost Unrealized Recorded Available-for-sale: Government and agency securities $ 452 $ 9 $ 461 Held-to-maturity: Certificates of deposit 156 — 156 Total short-term investments $ 608 $ 9 $ 617 August 30, 2020: Cost Unrealized Recorded Available-for-sale: Government and agency securities $ 436 $ 12 $ 448 Held-to-maturity: Certificates of deposit 580 — 580 Total short-term investments $ 1,016 $ 12 $ 1,028 |
Maturities of Available-for-sale and Held-to-maturity Securities | The maturities of available-for-sale and held-to-maturity securities at February 14, 2021, are as follows: Available-For-Sale Held-To-Maturity Cost Basis Fair Value Due in one year or less $ 206 $ 207 $ 156 Due after one year through five years 246 254 — Total $ 452 $ 461 $ 156 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 6 Months Ended |
Feb. 14, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities Measured on Recurring Basis | The table below presents information regarding financial assets and liabilities that are measured at fair value on a recurring basis and indicates the level within the fair value hierarchy reflecting the valuation techniques utilized. Level 2 February 14, August 30, Investment in government and agency securities (1) $ 463 $ 508 Forward foreign-exchange contracts, in asset position (2) 4 1 Forward foreign-exchange contracts, in (liability) position (2) (22) (21) Total $ 445 $ 488 _______________ (1) At February 14, 2021, $2 cash and cash equivalents and $461 short-term investments are included in the accompanying condensed consolidated balance sheets. At August 30, 2020, $60 cash and cash equivalents and $448 short-term investments are included in the accompanying condensed consolidated balance sheets. (2) The asset and liability values are included in other current assets and other current liabilities, respectively, in the accompanying condensed consolidated balance sheets. |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Feb. 14, 2021 | |
Debt Disclosure [Abstract] | |
Carrying Value and Estimated Fair Value of Company's Long-term Debt | The carrying value of the Company’s long-term debt consisted of the following: February 14, August 30, 2.300% Senior Notes due May 2022 $ 800 $ 800 2.750% Senior Notes due May 2024 1,000 1,000 3.000% Senior Notes due May 2027 1,000 1,000 1.375% Senior Notes due June 2027 1,250 1,250 1.600% Senior Notes due April 2030 1,750 1,750 1.750% Senior Notes due April 2032 1,000 1,000 Other long-term debt 861 857 Total long-term debt 7,661 7,657 Less unamortized debt discounts and issuance costs 44 48 Less current portion (1) 95 95 Long-term debt, excluding current portion $ 7,522 $ 7,514 _______________ (1) Net of unamortized debt discounts and issuance costs. |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Feb. 14, 2021 | |
Equity [Abstract] | |
Stock Repurchased During Period | Stock repurchase activity during the second quarter and first half of 2021 and 2020 is summarized below: Shares Repurchased (000s) Average Price per Share Total Cost Second quarter of 2021 308 $ 362.95 $ 112 First half of 2021 521 $ 361.52 $ 189 Second quarter of 2020 162 $ 301.50 $ 49 First half of 2020 262 $ 299.40 $ 79 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 6 Months Ended |
Feb. 14, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of RSU Transactions | The following table summarizes RSU transactions during the first half of 2021: Number of Weighted-Average Outstanding at August 30, 2020 5,174 $ 207.55 Granted 1,982 369.15 Vested and delivered (2,752) 235.72 Forfeited (82) 250.66 Special cash dividend 94 N/A Outstanding at February 14, 2021 4,416 $ 257.77 |
Summary of Stock-Based Compensation Expense and Related Tax Benefits | The following table summarizes stock-based compensation expense and the related tax benefits: 12 Weeks Ended 24 Weeks Ended February 14, February 16, February 14, February 16, Stock-based compensation expense $ 122 $ 118 $ 463 $ 419 Less recognized income tax benefit 22 21 97 87 Stock-based compensation expense, net $ 100 $ 97 $ 366 $ 332 |
Net Income per Common and Com_2
Net Income per Common and Common Equivalent Share (Tables) | 6 Months Ended |
Feb. 14, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table shows the amounts used in computing net income per share and the weighted average number of shares of basic and potentially dilutive common shares outstanding (shares in 000s): 12 Weeks Ended 24 Weeks Ended February 14, February 16, February 14, February 16, Net income attributable to Costco $ 951 $ 931 $ 2,117 $ 1,775 Weighted average basic shares 443,134 442,021 443,043 441,920 RSUs 1,360 1,706 1,397 1,784 Weighted average diluted shares 444,494 443,727 444,440 443,704 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Feb. 14, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting Information, by Segment | The following table provides information for the Company's reportable segments: United States Canadian Other Total 12 Weeks Ended February 14, 2021 Total revenue $ 32,127 $ 6,001 $ 6,641 $ 44,769 Operating income 790 236 314 1,340 12 Weeks Ended February 16, 2020 Total revenue $ 28,523 $ 5,231 $ 5,318 $ 39,072 Operating income 821 202 243 1,266 24 Weeks Ended February 14, 2021 Total revenue $ 63,419 $ 12,012 $ 12,546 $ 87,977 Operating income 1,638 529 603 2,770 24 Weeks Ended February 16, 2020 Total revenue $ 55,588 $ 10,358 $ 10,166 $ 76,112 Operating income 1,456 430 441 2,327 52 Weeks Ended August 30, 2020 Total revenue $ 122,142 $ 22,434 $ 22,185 $ 166,761 Operating income 3,633 860 942 5,435 |
Disaggregation of Revenue [Table Text Block] | Disaggregated Revenue The following table summarizes net sales by merchandise category; sales from business centers and e-commerce are allocated to the relevant categories: 12 Weeks Ended 24 Weeks Ended February 14, February 16, February 14, February 16, Foods and sundries $ 17,624 $ 14,984 $ 35,643 $ 29,516 Hardlines 8,306 6,774 15,636 12,617 Fresh foods 6,254 5,079 12,117 9,655 Softlines 5,417 4,504 10,471 8,801 Ancillary and other 6,287 6,915 12,368 13,903 Total net sales $ 43,888 $ 38,256 $ 86,235 $ 74,492 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) | Feb. 14, 2021warehousestates |
Summary Of Significant Accounting Policies [Line Items] | |
Number of warehouses operated | 803 |
UNITED STATES | |
Summary Of Significant Accounting Policies [Line Items] | |
Number of warehouses operated | 558 |
Number of states in country | states | 45 |
CANADA | |
Summary Of Significant Accounting Policies [Line Items] | |
Number of warehouses operated | 102 |
MEXICO | |
Summary Of Significant Accounting Policies [Line Items] | |
Number of warehouses operated | 39 |
UNITED KINGDOM | |
Summary Of Significant Accounting Policies [Line Items] | |
Number of warehouses operated | 29 |
JAPAN | |
Summary Of Significant Accounting Policies [Line Items] | |
Number of warehouses operated | 27 |
KOREA | |
Summary Of Significant Accounting Policies [Line Items] | |
Number of warehouses operated | 16 |
TAIWAN | |
Summary Of Significant Accounting Policies [Line Items] | |
Number of warehouses operated | 14 |
AUSTRALIA | |
Summary Of Significant Accounting Policies [Line Items] | |
Number of warehouses operated | 12 |
SPAIN | |
Summary Of Significant Accounting Policies [Line Items] | |
Number of warehouses operated | 3 |
ICELAND | |
Summary Of Significant Accounting Policies [Line Items] | |
Number of warehouses operated | 1 |
FRANCE | |
Summary Of Significant Accounting Policies [Line Items] | |
Number of warehouses operated | 1 |
CHINA | |
Summary Of Significant Accounting Policies [Line Items] | |
Number of warehouses operated | 1 |
Business Combinations (Details)
Business Combinations (Details) - USD ($) $ in Millions | Mar. 17, 2020 | Feb. 14, 2021 |
Business Combinations [Abstract] | ||
Payments to Acquire Businesses, Gross | $ 998 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | $ 286 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 237 | |
Business Acquisition, Goodwill, Expected Tax Deductible Amount | $ 949 |
Investments - Available-for-sal
Investments - Available-for-sale and Held-to-maturity Investments (Detail) - USD ($) $ in Millions | Feb. 14, 2021 | Aug. 30, 2020 |
Available-for-sale and Held-to-maturity [Line Items] | ||
Available-for-sale, cost basis | $ 452 | |
Held-to-maturity, cost basis | 156 | |
Total investments, recorded basis, total | 617 | $ 1,028 |
Short-term Investments | ||
Available-for-sale and Held-to-maturity [Line Items] | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 9 | 12 |
Total investments, cost basis, total | 608 | 1,016 |
Total investments, recorded basis, total | 617 | 1,028 |
Short-term Investments | Government and Agency Securities | ||
Available-for-sale and Held-to-maturity [Line Items] | ||
Available-for-sale, cost basis | 452 | 436 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 9 | 12 |
Available-for-sale, recorded basis, total | 461 | 448 |
Short-term Investments | Certificates of deposit | ||
Available-for-sale and Held-to-maturity [Line Items] | ||
Held-to-maturity, cost basis | 156 | 580 |
Held-to-maturity, recorded basis, total | $ 156 | $ 580 |
Investments - Maturities of Ava
Investments - Maturities of Available-for-sale and Held-to-maturity Securities (Details) $ in Millions | Feb. 14, 2021USD ($) |
Available-for-sale, Cost Basis | |
Due in one year or less | $ 206 |
Due after one year through five years | 246 |
Available-for-sale, cost basis | 452 |
Available-for-sale, Fair Value | |
Due in one year or less | 207 |
Due after one year through five years | 254 |
Available-for-sale, recorded basis, total | 461 |
Held-to-maturity | |
Due in one year or less | 156 |
Due after one year through five years | 0 |
Held-to-maturity, cost basis, total | $ 156 |
Fair Value Measurement - Fair V
Fair Value Measurement - Fair Value of Financial Assets and Financial Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Millions | Feb. 14, 2021 | Aug. 30, 2020 | Feb. 16, 2020 | Sep. 01, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, at Carrying Value | $ 8,637 | $ 12,277 | $ 7,786 | $ 8,384 |
Short-term Investments | 461 | |||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of assets measured on recurring basis | 445 | 488 | ||
Government and Agency Securities | Cash and Cash Equivalents [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, at Carrying Value | 2 | 60 | ||
Government and Agency Securities | Short-term Investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Short-term Investments | 461 | 448 | ||
Government and Agency Securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of assets measured on recurring basis | 463 | 508 | ||
Forward Foreign-exchange Contracts | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of assets measured on recurring basis | 4 | 1 | ||
Fair value of liabilities measured on recurring basis | $ (22) | $ (21) |
Debt (Carrying Value and Estima
Debt (Carrying Value and Estimated Fair Value of Company's Long-term Debt) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Feb. 14, 2021 | Aug. 30, 2020 | |
Debt Instrument [Line Items] | ||
Total long-term debt, Face value | $ 7,661 | $ 7,657 |
Less unamortized debt discounts and issuance costs, Net | 44 | 48 |
Current portion of long-term debt | 95 | 95 |
Long-term debt, excluding current portion | 7,522 | 7,514 |
Total long-term debt, fair value | 7,895 | 7,987 |
2.30% Senior Notes Due May 2022 | ||
Debt Instrument [Line Items] | ||
Total long-term debt, Face value | $ 800 | 800 |
Debt instrument, interest rate, stated percentage | 2.30% | |
Debt instrument, maturity date | May 18, 2022 | |
2.75% Senior Notes Due May 2024 | ||
Debt Instrument [Line Items] | ||
Total long-term debt, Face value | $ 1,000 | 1,000 |
Debt instrument, interest rate, stated percentage | 2.75% | |
Debt instrument, maturity date | May 18, 2024 | |
3.00% Senior Notes Due May 2027 | ||
Debt Instrument [Line Items] | ||
Total long-term debt, Face value | $ 1,000 | 1,000 |
Debt instrument, interest rate, stated percentage | 3.00% | |
Debt instrument, maturity date | May 18, 2027 | |
1.375% Senior Notes Due June 2027 | ||
Debt Instrument [Line Items] | ||
Total long-term debt, Face value | $ 1,250 | 1,250 |
Debt instrument, interest rate, stated percentage | 1.375% | |
Debt instrument, maturity date | Jun. 20, 2027 | |
1.60% Senior Notes Due April 2030 | ||
Debt Instrument [Line Items] | ||
Total long-term debt, Face value | $ 1,750 | 1,750 |
Debt instrument, interest rate, stated percentage | 1.60% | |
Debt instrument, maturity date | Apr. 20, 2030 | |
1.750% Senior Notes Due April 2032 | ||
Debt Instrument [Line Items] | ||
Total long-term debt, Face value | $ 1,000 | 1,000 |
Debt instrument, interest rate, stated percentage | 1.75% | |
Debt instrument, maturity date | Apr. 20, 2032 | |
Other Long-term Debt | ||
Debt Instrument [Line Items] | ||
Total long-term debt, Face value | $ 861 | $ 857 |
Equity - Additional Information
Equity - Additional Information - Dividends (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Feb. 14, 2021 | Nov. 22, 2020 | Feb. 16, 2020 | Feb. 14, 2021 | Feb. 16, 2020 | |
Dividends Payable [Line Items] | |||||
Dividends declared | $ 0.70 | $ 0.65 | |||
Payments of Dividends | $ 4,740 | $ 573 | |||
Dividend Rate | |||||
Dividends Payable [Line Items] | |||||
Dividends declared | $ 0.70 | ||||
SpecialDividendsPayable [Member] | |||||
Dividends Payable [Line Items] | |||||
Dividends declared | $ 10 | ||||
Payments of Dividends | $ 4,430 |
Equity (Stock Repurchased Durin
Equity (Stock Repurchased During Period) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 14, 2021 | Feb. 16, 2020 | Feb. 14, 2021 | Feb. 16, 2020 | |
Equity [Abstract] | ||||
Stock Repurchased and Retired During Period, Shares | 308 | 162 | 521 | 262 |
Average price per share | $ 362.95 | $ 301.50 | $ 361.52 | $ 299.40 |
Total Cost | $ (112) | $ (49) | $ (189) | $ (79) |
Equity - Additional Informati_2
Equity - Additional Information - Stock Repurchase Programs (Details) $ in Millions | Feb. 14, 2021USD ($) |
Equity [Abstract] | |
Stock repurchase program, remaining authorized repurchase amount | $ 3,556 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans - Additional Information (Detail) $ / shares in Units, $ in Millions | 6 Months Ended | ||||
Feb. 14, 2021USD ($)shares | Dec. 11, 2020closingSharePricePerOpeningSharePrice | Dec. 01, 2020$ / shares | Nov. 30, 2020$ / shares | Aug. 30, 2020shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | 4,416,000 | 5,174,000 | |||
MandatoryProportionalAdjustmentedtoRestrictedStockUnits | (94,000) | ||||
Share Price | $ / shares | $ 384.50 | $ 391.77 | |||
Additional number of shares authorized | 222,000 | ||||
SpecialCashDividendSharesAdjustmentRatio | closingSharePricePerOpeningSharePrice | 1.019 | ||||
2019 Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Additional number of shares authorized | 17,500,000 | ||||
Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Additional number of shares authorized | 10,000,000 | ||||
Number of shares available to be granted | 11,946,000 | ||||
Time-based RSUs awards outstanding | 4,285,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | 29,000 | ||||
Unrecognized compensation cost | $ | $ 951 | ||||
Weighted-average recognition period | 1 year 8 months 12 days | ||||
Performance Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Outstanding performance-based RSUs awards granted, subject to achievement of performance targets | 102,000 | ||||
Maximum [Member] | 2019 Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares available to be granted | 27,800,000 | ||||
Maximum [Member] | Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares available to be granted | 15,885,000 |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans - Summary of RSU Transactions (Details) shares in Thousands | 6 Months Ended |
Feb. 14, 2021$ / sharesshares | |
Number of units | |
Outstanding at August 30, 2020 | 5,174 |
Granted | 1,982 |
Vested and delivered | (2,752) |
Forfeited | (82) |
Special cash dividend | 94 |
Outstanding at February 14, 2021 | 4,416 |
Weighted average grant date fair value | |
Outstanding at August 30, 2020 | $ / shares | $ 207.55 |
Granted | $ / shares | 369.15 |
Vested and delivered | $ / shares | 235.72 |
Forfeited | $ / shares | 250.66 |
Outstanding at February 14, 2020 | $ / shares | $ 257.77 |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 14, 2021 | Feb. 16, 2020 | Feb. 14, 2021 | Feb. 16, 2020 | |
Stock-based compensation expense before income taxes | $ 122 | $ 118 | $ 463 | $ 419 |
Less recognized income tax benefit | (22) | (21) | (97) | (87) |
Stock-based compensation expense, net of income taxes | $ 100 | $ 97 | $ 366 | $ 332 |
Net Income per Common and Com_3
Net Income per Common and Common Equivalent Share - Schedule of Earnings per Share Effect on Net Income and Weighted Average Number of Dilutive Potential Common Stock (Details) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 14, 2021 | Feb. 16, 2020 | Feb. 14, 2021 | Feb. 16, 2020 | |
Earnings Per Share [Abstract] | ||||
Net Income (Loss) Attributable to Parent | $ 951 | $ 931 | $ 2,117 | $ 1,775 |
Weighted average number of common shares used in basic net income per common share | 443,134 | 442,021 | 443,043 | 441,920 |
RSUs | 1,360 | 1,706 | 1,397 | 1,784 |
Weighted average number of common shares and dilutive potential of common stock used in diluted net income per share | 444,494 | 443,727 | 444,440 | 443,704 |
Segment Reporting Information b
Segment Reporting Information by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Feb. 14, 2021 | Feb. 16, 2020 | Feb. 14, 2021 | Feb. 16, 2020 | Aug. 30, 2020 | |
Segment Reporting Information [Line Items] | |||||
Total Revenue | $ 44,769 | $ 39,072 | $ 87,977 | $ 76,112 | $ 166,761 |
Operating Income | 1,340 | 1,266 | 2,770 | 2,327 | 5,435 |
Operating Segments [Member] | United States Operations | |||||
Segment Reporting Information [Line Items] | |||||
Total Revenue | 32,127 | 28,523 | 63,419 | 55,588 | 122,142 |
Operating Income | 790 | 821 | 1,638 | 1,456 | 3,633 |
Operating Segments [Member] | Canada Operations | |||||
Segment Reporting Information [Line Items] | |||||
Total Revenue | 6,001 | 5,231 | 12,012 | 10,358 | 22,434 |
Operating Income | 236 | 202 | 529 | 430 | 860 |
Operating Segments [Member] | Other International Operations | |||||
Segment Reporting Information [Line Items] | |||||
Total Revenue | 6,641 | 5,318 | 12,546 | 10,166 | 22,185 |
Operating Income | $ 314 | $ 243 | $ 603 | $ 441 | $ 942 |
Segment Reporting Segment Repor
Segment Reporting Segment Reporting Information by Item Category (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 14, 2021 | Feb. 16, 2020 | Feb. 14, 2021 | Feb. 16, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 44,769 | $ 39,072 | $ 87,977 | $ 76,112 |
Foods and Sundries [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 17,624 | 14,984 | 35,643 | 29,516 |
Hardlines [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 8,306 | 6,774 | 15,636 | 12,617 |
Fresh Foods [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 6,254 | 5,079 | 12,117 | 9,655 |
Softlines [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 5,417 | 4,504 | 10,471 | 8,801 |
Ancillary | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 6,287 | 6,915 | 12,368 | 13,903 |
Net Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 43,888 | $ 38,256 | $ 86,235 | $ 74,492 |