Cover
Cover - shares | 8 Months Ended | |
May 08, 2022 | May 25, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | May 8, 2022 | |
Document Fiscal Year Focus | 2022 | |
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, $.01 Par Value | |
Trading Symbol | COST | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 442,962,949 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000909832 | |
Current Fiscal Year End Date | --08-28 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 8 Months Ended | ||
May 08, 2022 | May 09, 2021 | May 08, 2022 | May 09, 2021 | |
REVENUE | ||||
Total Revenue | $ 52,596 | $ 45,277 | $ 154,863 | $ 133,254 |
OPERATING EXPENSES | ||||
Merchandise costs | 46,355 | 39,415 | 135,824 | 115,951 |
Selling, general and administrative | 4,450 | 4,199 | 13,743 | 12,870 |
Operating income | 1,791 | 1,663 | 5,296 | 4,433 |
OTHER INCOME (EXPENSE) | ||||
Interest expense | (35) | (40) | (110) | (119) |
Interest income and other, net | 71 | 27 | 138 | 75 |
INCOME BEFORE INCOME TAXES | 1,827 | 1,650 | 5,324 | 4,389 |
Provision for income taxes | 455 | 417 | 1,287 | 1,004 |
Net income including noncontrolling interests | 1,372 | 1,233 | 4,037 | 3,385 |
Net income attributable to noncontrolling interests | (19) | (13) | (61) | (48) |
NET INCOME ATTRIBUTABLE TO COSTCO | $ 1,353 | $ 1,220 | $ 3,976 | $ 3,337 |
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO: | ||||
Basic (in dollars per share) | $ 3.05 | $ 2.75 | $ 8.96 | $ 7.53 |
Diluted (in dollars per share) | $ 3.04 | $ 2.75 | $ 8.94 | $ 7.51 |
Shares used in calculation (000's) | ||||
Basic (shares) | 443,700 | 443,043 | 443,567 | 443,043 |
Diluted (shares) | 444,886 | 444,127 | 444,802 | 444,336 |
Net Sales | ||||
REVENUE | ||||
Total Revenue | $ 51,612 | $ 44,376 | $ 151,966 | $ 130,611 |
Membership fees | ||||
REVENUE | ||||
Total Revenue | $ 984 | $ 901 | $ 2,897 | $ 2,643 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 8 Months Ended | ||
May 08, 2022 | May 09, 2021 | May 08, 2022 | May 09, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME INCLUDING NONCONTROLLING INTERESTS | $ 1,372 | $ 1,233 | $ 4,037 | $ 3,385 |
Foreign-currency translation adjustment and other, net | (388) | 54 | (495) | 411 |
Comprehensive income | 984 | 1,287 | 3,542 | 3,796 |
Less: Comprehensive income attributable to noncontrolling interests | (13) | 15 | 31 | 71 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO COSTCO | $ 997 | $ 1,272 | $ 3,511 | $ 3,725 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | May 08, 2022 | Aug. 29, 2021 |
CURRENT ASSETS | ||
Cash and Cash Equivalents | $ 11,193,000,000 | $ 11,258,000,000 |
Short-term investments | 638,000,000 | 917,000,000 |
Receivables, net | 1,991,000,000 | 1,803,000,000 |
Merchandise inventories | 17,623,000,000 | 14,215,000,000 |
Other current assets | 1,563,000,000 | 1,312,000,000 |
Total current assets | 33,008,000,000 | 29,505,000,000 |
OTHER ASSETS | ||
Property and equipment, net | 24,143,000,000 | 23,492,000,000 |
Operating lease, right-of-use assets | 2,731,000,000 | 2,890,000,000 |
Other long-term assets | 3,970,000,000 | 3,381,000,000 |
TOTAL ASSETS | 63,852,000,000 | 59,268,000,000 |
CURRENT LIABILITIES | ||
Accounts payable | 17,651,000,000 | 16,278,000,000 |
Accrued salaries and benefits | 4,090,000,000 | 4,090,000,000 |
Accrued member rewards | 1,828,000,000 | 1,671,000,000 |
Deferred membership fees | 2,251,000,000 | 2,042,000,000 |
Current portion of long-term debt | 77,000,000 | 799,000,000 |
Other current liabilities | 5,948,000,000 | 4,561,000,000 |
Total current liabilities | 31,845,000,000 | 29,441,000,000 |
OTHER LIABILITIES | ||
Long-term debt, excluding current portion | 6,507,000,000 | 6,692,000,000 |
Long-term operating lease liabilities | 2,452,000,000 | 2,642,000,000 |
Other long-term liabilities | 2,535,000,000 | 2,415,000,000 |
TOTAL LIABILITIES | 43,339,000,000 | 41,190,000,000 |
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; 443,029,000 and 441,825,000 shares issued and outstanding | 4,000,000 | 4,000,000 |
Additional paid-in capital | 7,272,000,000 | 7,031,000,000 |
Accumulated other comprehensive loss | (1,602,000,000) | (1,137,000,000) |
Retained earnings | 14,294,000,000 | 11,666,000,000 |
Total Costco stockholders' equity | 19,968,000,000 | 17,564,000,000 |
Noncontrolling interests | 545,000,000 | 514,000,000 |
TOTAL EQUITY | 20,513,000,000 | 18,078,000,000 |
TOTAL LIABILITIES AND EQUITY | $ 63,852,000,000 | $ 59,268,000,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | May 08, 2022 | Aug. 29, 2021 |
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 | 443,029,000 | 441,825,000 |
Common Stock, Shares, Outstanding | 443,029,000 | 441,825,000 |
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 Aug. 30, 2020 | 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 | 3,385 | 3,337 | 3,337 | 48 | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 411 | 388 | 388 | 23 | |||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 552 | 552 | 552 | ||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 1,926 | ||||||
Stock Issued During Period, Value, Stock Options Exercised | $ (312) | (312) | (312) | ||||
Stock Repurchased and Retired During Period, Shares | (1,040) | (1,040) | |||||
Stock Repurchased and Retired During Period, Value | $ (368) | (17) | (351) | (368) | |||
Cash dividends declared | (5,399) | (5,399) | (5,399) | ||||
Common Stock at end of period (shares) at May. 09, 2021 | 442,141 | ||||||
Equity at end of period at May. 09, 2021 | 16,974 | $ 4 | 6,921 | (909) | 10,466 | 16,482 | 492 |
Common Stock at beginning of period (shares) at Feb. 14, 2021 | 442,654 | ||||||
Equity at beginning of period at Feb. 14, 2021 | 16,129 | $ 4 | 6,843 | (961) | 9,766 | 15,652 | 477 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 1,233 | 1,220 | 1,220 | 13 | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 54 | 52 | 52 | 2 | |||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 87 | 87 | 87 | ||||
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 | (519) | (519) | |||||
Stock Repurchased and Retired During Period, Value | $ (179) | (8) | (171) | (179) | |||
Cash dividends declared | (349) | (349) | (349) | ||||
Common Stock at end of period (shares) at May. 09, 2021 | 442,141 | ||||||
Equity at end of period at May. 09, 2021 | $ 16,974 | $ 4 | 6,921 | (909) | 10,466 | 16,482 | 492 |
Common Stock at beginning of period (shares) at Aug. 29, 2021 | 441,825 | 441,825 | |||||
Equity at beginning of period at Aug. 29, 2021 | $ 18,078 | $ 4 | 7,031 | (1,137) | 11,666 | 17,564 | 514 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 4,037 | 3,976 | 3,976 | 61 | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (495) | (465) | (465) | (30) | |||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 609 | 609 | 609 | ||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 1,694 | ||||||
Stock Issued During Period, Value, Stock Options Exercised | $ (360) | (360) | (360) | ||||
Stock Repurchased and Retired During Period, Shares | (490) | (490) | |||||
Stock Repurchased and Retired During Period, Value | $ (257) | (8) | (249) | (257) | |||
Cash dividends declared | $ (1,099) | (1,099) | (1,099) | ||||
Common Stock at end of period (shares) at May. 08, 2022 | 443,029 | 443,029 | |||||
Equity at end of period at May. 08, 2022 | $ 20,513 | $ 4 | 7,272 | (1,602) | 14,294 | 19,968 | 545 |
Common Stock at beginning of period (shares) at Feb. 13, 2022 | 443,279 | ||||||
Equity at beginning of period at Feb. 13, 2022 | 19,976 | $ 4 | 7,186 | (1,246) | 13,474 | 19,418 | 558 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 1,372 | 1,353 | 1,353 | 19 | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (388) | (356) | (356) | (32) | |||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 91 | 91 | 91 | ||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 4 | ||||||
Stock Issued During Period, Value, Stock Options Exercised | $ (1) | (1) | (1) | ||||
Stock Repurchased and Retired During Period, Shares | (254) | (254) | |||||
Stock Repurchased and Retired During Period, Value | $ (139) | (4) | (135) | (139) | |||
Cash dividends declared | $ (398) | (398) | (398) | ||||
Common Stock at end of period (shares) at May. 08, 2022 | 443,029 | 443,029 | |||||
Equity at end of period at May. 08, 2022 | $ 20,513 | $ 4 | $ 7,272 | $ (1,602) | $ 14,294 | $ 19,968 | $ 545 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 8 Months Ended | |
May 08, 2022 | May 09, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income including noncontrolling interests | $ 4,037 | $ 3,385 |
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities: | ||
Depreciation and amortization | 1,306 | 1,222 |
Non-cash lease expense | 240 | 189 |
Stock-based compensation | 606 | 550 |
Other non-cash operating activities, net | 49 | 19 |
Deferred income taxes | (2) | (16) |
Changes in operating assets and liabilities: | ||
Merchandise inventories | (3,633) | (1,531) |
Accounts payable | 1,766 | 1,256 |
Other operating assets and liabilities, net | 517 | 944 |
Net cash provided by operating activities | 4,886 | 6,018 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of short-term investments | (588) | (802) |
Maturities of short-term investments | 840 | 955 |
Additions to property and equipment | (2,632) | (2,494) |
Other investing activities, net | (48) | (39) |
Net cash used in investing activities | (2,428) | (2,380) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Change in bank checks outstanding | (99) | 1 |
Repayments of long-term debt | (800) | 0 |
Tax withholdings on stock-based awards | (360) | (312) |
Repurchases of common stock | (254) | (367) |
Cash dividend payments | (701) | (5,050) |
Other financing activities, net | (129) | (41) |
Net cash used in financing activities | (2,343) | (5,769) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (180) | 80 |
Net change in cash and cash equivalents | (65) | (2,051) |
CASH AND CASH EQUIVALENTS BEGINNING OF YEAR | 11,258 | 12,277 |
CASH AND CASH EQUIVALENTS END OF PERIOD | 11,193 | 10,226 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Interest | 102 | 98 |
Income taxes, net | 1,121 | 867 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES: | ||
Cash dividend declared, but not yet paid | 398 | 349 |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | 631 | 265 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 67 | $ 208 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 8 Months Ended |
May 08, 2022 | |
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 May 8, 2022, Costco operated 829 warehouses worldwide: 573 in the United States (U.S.) located in 46 states, Washington, D.C., and Puerto Rico, 105 in Canada, 40 in Mexico, 30 in Japan, 29 in the United Kingdom (U.K.), 16 in Korea, 14 in Taiwan, 13 in Australia, four in Spain, two each in France and China, and one in Iceland. 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 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 on Form 10-K for the fiscal year ended August 29, 2021. 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 2022 is a 52-week year ending on August 28, 2022. References to the third quarter of 2022 and 2021 relate to the 12-week fiscal quarters ended May 8, 2022 and May 9, 2021, respectively. References to the first thirty-six weeks of 2022 and 2021 relate to the 36 weeks ended May 8, 2022 and May 9, 2021, respectively. Use of Estimates The preparation of financial statements in conformity with 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. Actual results could differ from those estimates and assumptions. Property and Equipment, Net The Company capitalizes certain computer software and costs incurred in developing or obtaining software. The Company recognized a $118 write-off of certain information technology assets, which was recorded in the first quarter of 2022, in selling, general and administrative expenses. Reclassification Reclassifications were made to our third quarter and first thirty-six weeks of 2021 condensed consolidated statements of income to conform with current period presentation. |
Investments
Investments | 8 Months Ended |
May 08, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Note 2—Investments The Company's investments were as follows: May 8, 2022: Cost Unrealized Recorded Available-for-sale: Government and agency securities $ 390 $ (1) $ 389 Held-to-maturity: Certificates of deposit 249 — 249 Total short-term investments $ 639 $ (1) $ 638 August 29, 2021: Cost Unrealized Recorded Available-for-sale: Government and agency securities $ 375 $ 6 $ 381 Held-to-maturity: Certificates of deposit 536 — 536 Total short-term investments $ 911 $ 6 $ 917 Gross unrecognized holding gains and losses on available-for-sale securities were not material for the periods ended May 8, 2022, and August 29, 2021 . At those dates, there were no available-for-sale securities in a material continuous unrealized-loss position. There were no sales of available-for-sale securities during the first thirty-six weeks of 2022 or 2021. The maturities of available-for-sale and held-to-maturity securities at May 8, 2022 are as follows: Available-For-Sale Held-To-Maturity Cost Basis Fair Value Due in one year or less $ 296 $ 295 $ 249 Due after one year through five years 94 94 — Total $ 390 $ 389 $ 249 |
Fair Value Measurement
Fair Value Measurement | 8 Months Ended |
May 08, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Note 3—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 May 8, August 29, Investment in government and agency securities (1) $ 389 $ 393 Forward foreign-exchange contracts, in asset position (2) 54 17 Forward foreign-exchange contracts, in (liability) position (2) (1) (2) Total $ 442 $ 408 _______________ (1) At August 29, 2021, $12 cash and cash equivalents and $381 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 May 8, 2022, and August 29, 2021, 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 thirty-six weeks of 2022 or 2021. 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 thirty-six weeks of 2022 or 2021. |
Debt
Debt | 8 Months Ended |
May 08, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Note 4—Debt The carrying value of the Company’s long-term debt consisted of the following: May 8, August 29, 2.300% Senior Notes due May 2022 $ — $ 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 618 731 Total long-term debt 6,618 7,531 Less unamortized debt discounts and issuance costs 34 40 Less current portion (1) 77 799 Long-term debt, excluding current portion $ 6,507 $ 6,692 _______________ (1) Net of unamortized debt discounts and issuance costs. The fair value of the 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 $6,000 and $7,692 at May 8, 2022, and August 29, 2021, respectively. On December 1, 2021, the Company repaid, prior to maturity, the 2.300% Senior Notes at a redemption price plus accrued interest as specified in the Notes' agreement. |
Equity
Equity | 3 Months Ended |
May 08, 2022 | |
Equity [Abstract] | |
Stockholders' equity | Note 5—Equity Dividends The Company’s current quarterly dividend is $0.90 per share, compared to $0.79 in the third quarter of 2021. On April 13, 2022, the Board of Directors declared a quarterly cash dividend in the amount of $0.90 per share, which was paid on May 13, 2022. Share Repurchase Program The Company's share repurchase program is conducted under a $4,000 authorization by the Board of Directors, which expires in April 2023. The remaining amount available under the program was $2,993 at May 8, 2022. Share repurchase activity is summarized below: Shares Repurchased (000s) Average Price per Share Total Cost Third quarter of 2022 254 $ 547.38 $ 139 First thirty-six weeks of 2022 490 $ 523.61 $ 257 Third quarter of 2021 519 $ 346.19 $ 179 First thirty-six weeks of 2021 1,040 $ 353.87 $ 368 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 8 Months Ended |
May 08, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation Plans | Note 6—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. Summary of Restricted Stock Unit Activity At May 8, 2022, 10,411,000 shares were available to be granted as RSUs, and the following awards were outstanding: • 3,375,000 time-based RSUs, which vest upon continued employment over specified periods and accelerate upon achievement of the long-service term; • 39,000 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 upon achievement of the long-service term; and • 82,000 performance-based RSUs, granted to executive officers of the Company, subject to achievement of performance targets for fiscal 2022, 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 third quarter of 2022, as it is currently deemed probable that the targets will be achieved. The following table summarizes RSU transactions during the first thirty-six weeks of 2022: Number of Weighted-Average Outstanding at August 29, 2021 4,349 $ 257.88 Granted 1,679 476.06 Vested and delivered (2,443) 290.20 Forfeited (89) 324.80 Outstanding at May 8, 2022 3,496 $ 338.37 The remaining unrecognized compensation cost related to RSUs unvested at May 8, 2022, was $890, 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 36 Weeks Ended May 8, May 9, May 8, May 9, Stock-based compensation expense $ 90 $ 87 $ 606 $ 550 Less recognized income tax benefits 20 18 128 115 Stock-based compensation expense, net $ 70 $ 69 $ 478 $ 435 |
Net Income per Common and Commo
Net Income per Common and Common Equivalent Share | 8 Months Ended |
May 08, 2022 | |
Earnings Per Share [Abstract] | |
Net Income Per Common and Common Equivalent Share | Note 7—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 36 Weeks Ended May 8, May 9, May 8, May 9, Net income attributable to Costco $ 1,353 $ 1,220 $ 3,976 $ 3,337 Weighted average basic shares 443,700 443,043 443,567 443,043 RSUs 1,186 1,084 1,235 1,293 Weighted average diluted shares 444,886 444,127 444,802 444,336 Anti-dilutive RSUs — 1,046 — — Anti-dilutive shares are excluded from the calculation of diluted shares and earnings per diluted share because their impact would increase earnings per diluted share. |
Commitments and Contingencies
Commitments and Contingencies | 8 Months Ended |
May 08, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 8—Commitments and Contingencies Legal Proceedings The Company is involved in a number of claims, proceedings and litigations 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 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. 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 commenced in July 2013 under the California Labor Code Private Attorneys General Act (PAGA) alleging violation of California Wage Order 7-2001 for failing to provide seating to employees who work at entrance and exit doors in California warehouses. Canela v. Costco Wholesale Corp. (Case No. 2013-1-CV-248813; Santa Clara Superior Court). 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. In December 2018, a depot employee raised similar claims, alleging that depot employees in California did not receive suitable seating or reasonably comfortable workplace temperature conditions. Lane v. Costco Wholesale Corp. (Case No. CIVDS 1908816; San Bernardino Superior Court). The Company filed an answer denying the material allegations of the complaint. In October 2019, the parties settled for an immaterial amount the seating claims on a representative basis, which received court approval in February 2020. The parties settled the temperature claims for an immaterial amount in April 2022, and court approval was received in May 2022. 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. Settlement for an immaterial amount was agreed upon in February 2021. Final court approval of the settlement was granted on May 3, 2022. 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. In September 2021, the court granted Costco’s motion for partial summary judgment and denied class certification. In August 2019, the plaintiff 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 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 case was stayed due to the plaintiff's bankruptcy, and his individual claim was settled for an immaterial amount. The class and representative action claims were thereafter dismissed. In December 2020, a former employee filed suit against the Company asserting collective and class claims on behalf of non-exempt employees under the Fair Labor Standards Act and New York Labor Law for failure to pay for all hours worked, failure to pay certain non-exempt employees on a weekly basis, and failure to provide proper wage statements and notices. The plaintiff also asserted individual retaliation claims. Cappadora v. Costco Wholesale Corp. (Case No. 1:20-cv-06067; E.D.N.Y.). An amended complaint was filed, and the Company denied the material allegations of the amended complaint. Based on an agreement in principle concerning settlement of the matter, involving a proposed payment by the Company of an immaterial amount, the federal action has been dismissed. In April 2022, Cappadora and a second plaintiff filed an action against the Company in New York state court asserting the same class claims asserted in the federal action under the New York Labor Law and seeking preliminary approval of the class settlement. Cappadora and Sancho v. Costco Wholesale Corp. (Index No. 604757/2022; Nassau County Supreme Court). In August 2021, a former employee filed a similar suit, asserting class claims on behalf of certain non-exempt employees under New York Labor Law for failure to pay on a weekly basis. Umadat v. Costco Wholesale Corp. (Case No. 2:21-cv-4814; E.D.N.Y.). The Company answered the complaint on October 21, 2021, denying the material allegations. In April 2022, a former employee filed a similar suit, asserting class claims on behalf of certain non-exempt employees under New York Labor Law, as well as under the Fair Labor Standards Act, for failure to pay on a weekly basis and failure to pay overtime. Burian v. Costco Wholesale Corp. (Case No. 2:22-cv-02108; E.D.N.Y.). In February 2021, a former employee filed a class action against the Company alleging violations of California Labor Code regarding payment of wages, meal and rest periods, wage statements, reimbursement of expenses, payment of final wages to terminated employees, and for unfair business practices. Edwards v. Costco Wholesale Corp. (Case No. 5:21-cv-00716: C.D. Cal.). In May 2021, the Company filed a motion to dismiss the complaint, which was granted with leave to amend. In June 2021, the plaintiff filed an amended complaint, which the Company moved to dismiss later that month. The court granted the motion in part in July 2021 with leave to amend. In August 2021, the plaintiff filed a second amended complaint and filed a separate representative action under PAGA asserting the same Labor Code claims and seeking civil penalties and attorneys' fees. The Company filed an answer to the second amended class action complaint, denying the material allegations. In July 2021, a former temporary staffing employee filed a class action against the Company and a staffing company alleging violations of the California Labor Code regarding payment of wages, meal and rest periods, wage statements, the timeliness of wages and final wages, and for unfair business practices. Dimas v. Costco Wholesale Corp. (Case No. STK-CV-UOE-2021-0006024; San Joaquin Superior Court). The Company has moved to compel arbitration of the plaintiff's individual claims and to dismiss the class action complaint. On September 7, 2021, the same former employee filed a separate representative action under PAGA asserting the same Labor Code violations and seeking civil penalties and attorneys' fees. The case has been stayed pending the motion to compel in the related case. In September 2021, an employee filed a class action against the Company alleging violations of the California Labor Code regarding the alleged failure to provide sick pay, failure to timely pay wages due at separation from employment, and for violations of California's unfair competition law. De Benning v. Costco Wholesale Corp. (Case No. 34-2021-00309030-CU-OE-GDS; Sacramento Superior Court). The Company answered the complaint in January 2022, denying its material allegations. In April 2022, a settlement for an immaterial amount was agreed upon, subject to court approval. In March 2022, an employee filed a class action against the Company alleging violations of the California Labor Code regarding the failure to: pay wages, provide meal and rest periods, provide accurate wage statements, timely pay final wages, and reimburse business expenses. Diaz v. Costco Wholesale Corp. (Case No. 22STCV09513; Los Angeles Superior Court). The Court stayed the case, including the Company's filing of a responsive pleading, pending the initial status conference. In May 2022, an employee filed a PAGA-only representative action against the Company alleging claims under the California Labor Code regarding the payment of wages, meal and rest periods, the timeliness of wages and final wages, wage statements, accurate records and business expenses. Gonzalez v. Costco Wholesale Corp. (Case No. 22AHCV00255; Los Angeles Superior Court). Beginning 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 cases that name the Company, including actions filed by counties and cities in Michigan, New Jersey, Oregon, Virginia and South Carolina, a third-party payor in Ohio, and a hospital in Texas, 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 43 states and American Samoa. Claims against the Company in state courts in New Jersey, Oklahoma, Utah, and Arizona have been dismissed. The Company is defending all of the pending matters. 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; 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 | 8 Months Ended |
May 08, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 9—Segment Reporting The Company and its subsidiaries are principally engaged in the operation of membership warehouses in the U.S., Canada, Mexico, Japan, U.K., 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 29, 2021, and Note 1 above. Inter-segment net sales and expenses have been eliminated in computing total revenue and operating income. Effective for fiscal 2022, stock-based compensation was allocated to the segments in this reporting. This change reflected a decision to evaluate the financial performance of the segments inclusive of this expense. Operating income was restated in each of the segments for all prior periods to reflect this change. The following table provides information for the Company's reportable segments: United States Canadian Other Total 12 Weeks Ended May 8, 2022 Total revenue $ 38,534 $ 7,268 $ 6,794 $ 52,596 Operating income 1,205 324 262 1,791 12 Weeks Ended May 9, 2021 Total revenue $ 32,759 $ 6,299 $ 6,219 $ 45,277 Operating income 1,135 260 268 1,663 36 Weeks Ended May 8, 2022 Total revenue $ 112,418 $ 21,406 $ 21,039 $ 154,863 Operating income 3,502 918 876 5,296 36 Weeks Ended May 9, 2021 Total revenue $ 96,178 $ 18,311 $ 18,765 $ 133,254 Operating income 2,898 733 802 4,433 52 Weeks Ended August 29, 2021 Total revenue $ 141,398 $ 27,298 $ 27,233 $ 195,929 Operating income 4,470 1,093 1,145 6,708 Disaggregated Revenue The following table summarizes net sales by merchandise category; sales from e-commerce websites and business centers have been allocated to the applicable merchandise categories: 12 Weeks Ended 36 Weeks Ended May 8, May 9, May 8, May 9, Foods and Sundries $ 19,594 $ 17,551 $ 58,646 $ 53,194 Non-Foods 13,810 12,899 43,077 39,006 Fresh Foods 6,813 6,296 20,211 18,413 Ancillary and Other Businesses 11,395 7,630 30,032 19,998 Total net sales $ 51,612 $ 44,376 $ 151,966 $ 130,611 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 8 Months Ended |
May 08, 2022 | |
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 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 2022 is a 52-week year ending on August 28, 2022. References to the third quarter of 2022 and 2021 relate to the 12-week fiscal quarters ended May 8, 2022 and May 9, 2021, respectively. References to the first thirty-six weeks of 2022 and 2021 relate to the 36 weeks ended May 8, 2022 and May 9, 2021, respectively. |
Use of Estimates, Policy | Use of Estimates The preparation of financial statements in conformity with 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. Actual results could differ from those estimates and assumptions. |
Property and Equipment, Policy | Property and Equipment, Net The Company capitalizes certain computer software and costs incurred in developing or obtaining software. The Company recognized a $118 write-off of certain information technology assets, which was recorded in the first quarter of 2022, in selling, general and administrative expenses. |
Reclassification, Comparability Adjustment | Reclassification Reclassifications were made to our third quarter and first thirty-six weeks of 2021 condensed consolidated statements of income to conform with current period presentation. |
Investments (Tables)
Investments (Tables) | 8 Months Ended |
May 08, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale and Held-to-maturity Investments | The Company's investments were as follows: May 8, 2022: Cost Unrealized Recorded Available-for-sale: Government and agency securities $ 390 $ (1) $ 389 Held-to-maturity: Certificates of deposit 249 — 249 Total short-term investments $ 639 $ (1) $ 638 August 29, 2021: Cost Unrealized Recorded Available-for-sale: Government and agency securities $ 375 $ 6 $ 381 Held-to-maturity: Certificates of deposit 536 — 536 Total short-term investments $ 911 $ 6 $ 917 |
Maturities of Available-for-sale and Held-to-maturity Securities | The maturities of available-for-sale and held-to-maturity securities at May 8, 2022 are as follows: Available-For-Sale Held-To-Maturity Cost Basis Fair Value Due in one year or less $ 296 $ 295 $ 249 Due after one year through five years 94 94 — Total $ 390 $ 389 $ 249 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 8 Months Ended |
May 08, 2022 | |
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 May 8, August 29, Investment in government and agency securities (1) $ 389 $ 393 Forward foreign-exchange contracts, in asset position (2) 54 17 Forward foreign-exchange contracts, in (liability) position (2) (1) (2) Total $ 442 $ 408 _______________ (1) At August 29, 2021, $12 cash and cash equivalents and $381 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) | 8 Months Ended |
May 08, 2022 | |
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: May 8, August 29, 2.300% Senior Notes due May 2022 $ — $ 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 618 731 Total long-term debt 6,618 7,531 Less unamortized debt discounts and issuance costs 34 40 Less current portion (1) 77 799 Long-term debt, excluding current portion $ 6,507 $ 6,692 _______________ (1) Net of unamortized debt discounts and issuance costs. |
Equity (Tables)
Equity (Tables) | 8 Months Ended |
May 08, 2022 | |
Equity [Abstract] | |
Stock Repurchased During Period | Share repurchase activity is summarized below: Shares Repurchased (000s) Average Price per Share Total Cost Third quarter of 2022 254 $ 547.38 $ 139 First thirty-six weeks of 2022 490 $ 523.61 $ 257 Third quarter of 2021 519 $ 346.19 $ 179 First thirty-six weeks of 2021 1,040 $ 353.87 $ 368 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 8 Months Ended |
May 08, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Summary of RSU Transactions | The following table summarizes RSU transactions during the first thirty-six weeks of 2022: Number of Weighted-Average Outstanding at August 29, 2021 4,349 $ 257.88 Granted 1,679 476.06 Vested and delivered (2,443) 290.20 Forfeited (89) 324.80 Outstanding at May 8, 2022 3,496 $ 338.37 |
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 36 Weeks Ended May 8, May 9, May 8, May 9, Stock-based compensation expense $ 90 $ 87 $ 606 $ 550 Less recognized income tax benefits 20 18 128 115 Stock-based compensation expense, net $ 70 $ 69 $ 478 $ 435 |
Net Income per Common and Com_2
Net Income per Common and Common Equivalent Share (Tables) | 8 Months Ended |
May 08, 2022 | |
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 36 Weeks Ended May 8, May 9, May 8, May 9, Net income attributable to Costco $ 1,353 $ 1,220 $ 3,976 $ 3,337 Weighted average basic shares 443,700 443,043 443,567 443,043 RSUs 1,186 1,084 1,235 1,293 Weighted average diluted shares 444,886 444,127 444,802 444,336 Anti-dilutive RSUs — 1,046 — — Anti-dilutive shares are excluded from the calculation of diluted shares and earnings per diluted share because their impact would increase earnings per diluted share. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 8 Months Ended |
May 08, 2022 | |
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 May 8, 2022 Total revenue $ 38,534 $ 7,268 $ 6,794 $ 52,596 Operating income 1,205 324 262 1,791 12 Weeks Ended May 9, 2021 Total revenue $ 32,759 $ 6,299 $ 6,219 $ 45,277 Operating income 1,135 260 268 1,663 36 Weeks Ended May 8, 2022 Total revenue $ 112,418 $ 21,406 $ 21,039 $ 154,863 Operating income 3,502 918 876 5,296 36 Weeks Ended May 9, 2021 Total revenue $ 96,178 $ 18,311 $ 18,765 $ 133,254 Operating income 2,898 733 802 4,433 52 Weeks Ended August 29, 2021 Total revenue $ 141,398 $ 27,298 $ 27,233 $ 195,929 Operating income 4,470 1,093 1,145 6,708 |
Disaggregation of Revenue [Table Text Block] | Disaggregated Revenue The following table summarizes net sales by merchandise category; sales from e-commerce websites and business centers have been allocated to the applicable merchandise categories: 12 Weeks Ended 36 Weeks Ended May 8, May 9, May 8, May 9, Foods and Sundries $ 19,594 $ 17,551 $ 58,646 $ 53,194 Non-Foods 13,810 12,899 43,077 39,006 Fresh Foods 6,813 6,296 20,211 18,413 Ancillary and Other Businesses 11,395 7,630 30,032 19,998 Total net sales $ 51,612 $ 44,376 $ 151,966 $ 130,611 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions | 8 Months Ended |
May 08, 2022USD ($)warehousestates | |
Summary Of Significant Accounting Policies [Line Items] | |
Number of warehouses operated | 829 |
Impairment of Intangible Assets (Excluding Goodwill) | $ | $ 118 |
UNITED STATES | |
Summary Of Significant Accounting Policies [Line Items] | |
Number of warehouses operated | 573 |
Number of states in country | states | 46 |
CANADA | |
Summary Of Significant Accounting Policies [Line Items] | |
Number of warehouses operated | 105 |
MEXICO | |
Summary Of Significant Accounting Policies [Line Items] | |
Number of warehouses operated | 40 |
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 | 30 |
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 | 13 |
SPAIN | |
Summary Of Significant Accounting Policies [Line Items] | |
Number of warehouses operated | 4 |
ICELAND | |
Summary Of Significant Accounting Policies [Line Items] | |
Number of warehouses operated | 1 |
CHINA | |
Summary Of Significant Accounting Policies [Line Items] | |
Number of warehouses operated | 2 |
FRANCE | |
Summary Of Significant Accounting Policies [Line Items] | |
Number of warehouses operated | 2 |
Investments - Available-for-sal
Investments - Available-for-sale and Held-to-maturity Investments (Detail) - USD ($) $ in Millions | May 08, 2022 | Aug. 29, 2021 |
Available-for-sale and Held-to-maturity [Line Items] | ||
Available-for-sale, cost basis, total | $ 390 | |
Available-for-sale, recorded basis, total | 389 | |
Held-to-maturity, cost basis | 249 | |
Short-term investments | 638 | $ 917 |
Short-term Investments | ||
Available-for-sale and Held-to-maturity [Line Items] | ||
Total investments, cost basis, total | 639 | 911 |
Short-term investments | 638 | 917 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 6 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (1) | |
Short-term Investments | Government and Agency Securities | ||
Available-for-sale and Held-to-maturity [Line Items] | ||
Available-for-sale, cost basis, total | 390 | 375 |
Available-for-sale, recorded basis, total | 389 | 381 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 6 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (1) | |
Short-term Investments | Certificates of deposit | ||
Available-for-sale and Held-to-maturity [Line Items] | ||
Held-to-maturity, cost basis | 249 | 536 |
Held-to-maturity, recorded basis, total | $ 249 | $ 536 |
Investments - Maturities of Ava
Investments - Maturities of Available-for-sale and Held-to-maturity Securities (Details) $ in Millions | May 08, 2022USD ($) |
Available-for-sale, Cost Basis | |
Due in one year or less | $ 296 |
Due after one year through five years | 94 |
Available-for-sale, cost basis, total | 390 |
Available-for-sale, Fair Value | |
Due in one year or less | 295 |
Due after one year through five years | 94 |
Available-for-sale, recorded basis, total | 389 |
Held-to-maturity | |
Due in one year or less | 249 |
Due after one year through five years | 0 |
Held-to-maturity, cost basis, total | $ 249 |
Fair Value Measurement - Fair V
Fair Value Measurement - Fair Value of Financial Assets and Financial Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Millions | May 08, 2022 | Aug. 29, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, at Carrying Value | $ 11,193 | $ 11,258 |
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 | 442 | 408 |
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 | 12 | |
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 | 389 | 393 |
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 | 54 | 17 |
Fair value of liabilities measured on recurring basis | $ (1) | $ (2) |
Debt (Carrying Value and Estima
Debt (Carrying Value and Estimated Fair Value of Company's Long-term Debt) (Details) - USD ($) $ in Millions | May 08, 2022 | Aug. 29, 2021 |
Debt Instrument [Line Items] | ||
Total long-term debt, Face value | $ 6,618 | $ 7,531 |
Less unamortized debt discounts and issuance costs, Net | 34 | 40 |
Current portion of long-term debt | 77 | 799 |
Long-term debt, excluding current portion | 6,507 | 6,692 |
Total long-term debt, fair value | 6,000 | 7,692 |
2.30% Senior Notes Due May 2022 | ||
Debt Instrument [Line Items] | ||
Total long-term debt, Face value | $ 0 | 800 |
Debt instrument, interest rate, stated percentage | 2.30% | |
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% | |
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% | |
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% | |
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% | |
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% | |
Other Long-term Debt | ||
Debt Instrument [Line Items] | ||
Total long-term debt, Face value | $ 618 | $ 731 |
Equity - Additional Information
Equity - Additional Information - Dividends (Detail) - $ / shares | 3 Months Ended | |
May 08, 2022 | May 09, 2021 | |
Dividends Payable [Line Items] | ||
Dividends declared | $ 0.90 | $ 0.79 |
Dividend Rate | ||
Dividends Payable [Line Items] | ||
Dividends declared | $ 0.90 |
Equity (Stock Repurchased Durin
Equity (Stock Repurchased During Period) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 8 Months Ended | ||
May 08, 2022 | May 09, 2021 | May 08, 2022 | May 09, 2021 | |
Equity [Abstract] | ||||
Stock Repurchased and Retired During Period, Shares | 254 | 519 | 490 | 1,040 |
Average price per share | $ 547.38 | $ 346.19 | $ 523.61 | $ 353.87 |
Total Cost | $ (139) | $ (179) | $ (257) | $ (368) |
Equity - Additional Informati_2
Equity - Additional Information - Stock Repurchase Programs (Details) - USD ($) $ in Millions | May 08, 2022 | Apr. 26, 2019 |
Equity [Abstract] | ||
Stock repurchase program, remaining authorized repurchase amount | $ 2,993 | |
Stock Repurchase Program, Authorized Amount | $ 4,000 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans - Additional Information (Detail) - USD ($) $ in Millions | 8 Months Ended | |
May 08, 2022 | Aug. 29, 2021 | |
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 | 3,496,000 | 4,349,000 |
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 | 10,411,000 | |
Time-based RSUs awards outstanding | 3,375,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | 39,000 | |
Unrecognized compensation cost | $ 890 | |
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 | 82,000 | |
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 | 8 Months Ended |
May 08, 2022$ / sharesshares | |
Number of units | |
Outstanding at August 29, 2021 | shares | 4,349 |
Granted | shares | 1,679 |
Vested and delivered | shares | (2,443) |
Forfeited | shares | (89) |
Outstanding at May 8, 2022 | shares | 3,496 |
Weighted average grant date fair value | |
Outstanding at August 29, 2021 | $ / shares | $ 257.88 |
Granted | $ / shares | 476.06 |
Vested and delivered | $ / shares | 290.20 |
Forfeited | $ / shares | 324.80 |
Outstanding at May 8, 2022 | $ / shares | $ 338.37 |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 8 Months Ended | ||
May 08, 2022 | May 09, 2021 | May 08, 2022 | May 09, 2021 | |
Stock-based compensation expense before income taxes | $ 90 | $ 87 | $ 606 | $ 550 |
Less recognized income tax benefit | 20 | 18 | 128 | 115 |
Stock-based compensation expense, net of income taxes | $ 70 | $ 69 | $ 478 | $ 435 |
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 | 8 Months Ended | ||
May 08, 2022 | May 09, 2021 | May 08, 2022 | May 09, 2021 | |
Earnings Per Share [Abstract] | ||||
Net Income (Loss) Attributable to Parent | $ 1,353 | $ 1,220 | $ 3,976 | $ 3,337 |
Weighted average number of common shares used in basic net income per common share | 443,700 | 443,043 | 443,567 | 443,043 |
RSUs | 1,186 | 1,084 | 1,235 | 1,293 |
Weighted average number of common shares and dilutive potential of common stock used in diluted net income per share | 444,886 | 444,127 | 444,802 | 444,336 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 1,046 | 0 | 0 |
Segment Reporting Information b
Segment Reporting Information by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 8 Months Ended | 12 Months Ended | ||
May 08, 2022 | May 09, 2021 | May 08, 2022 | May 09, 2021 | Aug. 29, 2021 | |
Segment Reporting Information [Line Items] | |||||
Total Revenue | $ 52,596 | $ 45,277 | $ 154,863 | $ 133,254 | $ 195,929 |
Operating Income | 1,791 | 1,663 | 5,296 | 4,433 | 6,708 |
Operating Segments [Member] | United States Operations | |||||
Segment Reporting Information [Line Items] | |||||
Total Revenue | 38,534 | 32,759 | 112,418 | 96,178 | 141,398 |
Operating Income | 1,205 | 1,135 | 3,502 | 2,898 | 4,470 |
Operating Segments [Member] | Canada Operations | |||||
Segment Reporting Information [Line Items] | |||||
Total Revenue | 7,268 | 6,299 | 21,406 | 18,311 | 27,298 |
Operating Income | 324 | 260 | 918 | 733 | 1,093 |
Operating Segments [Member] | Other International Operations | |||||
Segment Reporting Information [Line Items] | |||||
Total Revenue | 6,794 | 6,219 | 21,039 | 18,765 | 27,233 |
Operating Income | $ 262 | $ 268 | $ 876 | $ 802 | $ 1,145 |
Segment Reporting Segment Repor
Segment Reporting Segment Reporting Information by Item Category (Details) - USD ($) $ in Millions | 3 Months Ended | 8 Months Ended | ||
May 08, 2022 | May 09, 2021 | May 08, 2022 | May 09, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 52,596 | $ 45,277 | $ 154,863 | $ 133,254 |
Foods and Sundries [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 19,594 | 17,551 | 58,646 | 53,194 |
Non-Foods [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 13,810 | 12,899 | 43,077 | 39,006 |
Fresh Foods [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 6,813 | 6,296 | 20,211 | 18,413 |
Ancillary and Other Businesses | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 11,395 | 7,630 | 30,032 | 19,998 |
Net Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 51,612 | $ 44,376 | $ 151,966 | $ 130,611 |