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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Costco Wholesale Corporation | NASDAQ:COST | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
7.33 | 1.00% | 739.77 | 739.60 | 739.93 | 740.87 | 733.01 | 734.28 | 618,726 | 18:09:54 |
☒
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Washington
|
|
91-1223280
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
Title of each class
|
|
Trading symbol(s)
|
|
Name of each exchange on which registered
|
Common Stock, $.01 Par Value
|
|
COST
|
|
The NASDAQ Global Select Market
|
Large accelerated filer
|
☒
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☐
|
Smaller reporting company
|
☐
|
|
|
Emerging growth company
|
☐
|
|
|
Page
|
PART I
|
|
|
Item 1.
|
||
|
||
|
||
|
||
|
||
|
||
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
|
|
|
PART II
|
|
|
Item 1.
|
||
Item 1A.
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
Item 5.
|
||
Item 6.
|
||
|
|
12 Weeks Ended
|
|
24 Weeks Ended
|
||||||||||||
|
February 16,
2020 |
|
February 17,
2019 |
|
February 16,
2020 |
|
February 17,
2019 |
||||||||
NET INCOME INCLUDING NONCONTROLLING INTERESTS
|
$
|
947
|
|
|
$
|
901
|
|
|
$
|
1,803
|
|
|
$
|
1,678
|
|
Foreign-currency translation adjustment and other, net
|
47
|
|
|
52
|
|
|
172
|
|
|
(82
|
)
|
||||
Comprehensive income
|
994
|
|
|
953
|
|
|
1,975
|
|
|
1,596
|
|
||||
Less: Comprehensive income attributable to noncontrolling interests
|
22
|
|
|
13
|
|
|
44
|
|
|
21
|
|
||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO COSTCO
|
$
|
972
|
|
|
$
|
940
|
|
|
$
|
1,931
|
|
|
$
|
1,575
|
|
|
February 16,
2020 |
|
September 1,
2019 |
||||
ASSETS
|
|
|
|
||||
CURRENT ASSETS
|
|
|
|
||||
Cash and cash equivalents
|
$
|
7,786
|
|
|
$
|
8,384
|
|
Short-term investments
|
929
|
|
|
1,060
|
|
||
Receivables, net
|
1,988
|
|
|
1,535
|
|
||
Merchandise inventories
|
11,850
|
|
|
11,395
|
|
||
Other current assets
|
1,150
|
|
|
1,111
|
|
||
Total current assets
|
23,703
|
|
|
23,485
|
|
||
PROPERTY AND EQUIPMENT
|
|
|
|
||||
Land
|
6,696
|
|
|
6,417
|
|
||
Buildings and improvements
|
17,853
|
|
|
17,136
|
|
||
Equipment and fixtures
|
8,406
|
|
|
7,801
|
|
||
Construction in progress
|
906
|
|
|
1,272
|
|
||
Accumulated depreciation and amortization
|
(12,380
|
)
|
|
(11,736
|
)
|
||
Net property and equipment
|
21,481
|
|
|
20,890
|
|
||
OTHER ASSETS
|
|
|
|
||||
Operating lease right-of-use assets
|
2,596
|
|
|
0
|
|
||
Other long-term assets
|
1,002
|
|
|
1,025
|
|
||
TOTAL ASSETS
|
$
|
48,782
|
|
|
$
|
45,400
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
CURRENT LIABILITIES
|
|
|
|
||||
Accounts payable
|
$
|
11,072
|
|
|
$
|
11,679
|
|
Accrued salaries and benefits
|
3,415
|
|
|
3,176
|
|
||
Accrued member rewards
|
1,243
|
|
|
1,180
|
|
||
Deferred membership fees
|
1,865
|
|
|
1,711
|
|
||
Current portion of long-term debt
|
500
|
|
|
1,699
|
|
||
Other current liabilities
|
4,600
|
|
|
3,792
|
|
||
Total current liabilities
|
22,695
|
|
|
23,237
|
|
||
OTHER LIABILITIES
|
|
|
|
||||
Long-term debt, excluding current portion
|
5,099
|
|
|
5,124
|
|
||
Long-term operating lease liabilities
|
2,446
|
|
|
0
|
|
||
Other long-term liabilities
|
1,543
|
|
|
1,455
|
|
||
TOTAL LIABILITIES
|
31,783
|
|
|
29,816
|
|
||
COMMITMENTS AND CONTINGENCIES
|
|
|
|
||||
EQUITY
|
|
|
|
||||
Preferred stock $0.01 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; 441,622,000 and 439,625,000 shares issued and outstanding
|
4
|
|
|
4
|
|
||
Additional paid-in capital
|
6,506
|
|
|
6,417
|
|
||
Accumulated other comprehensive loss
|
(1,280
|
)
|
|
(1,436
|
)
|
||
Retained earnings
|
11,384
|
|
|
10,258
|
|
||
Total Costco stockholders’ equity
|
16,614
|
|
|
15,243
|
|
||
Noncontrolling interests
|
385
|
|
|
341
|
|
||
TOTAL EQUITY
|
16,999
|
|
|
15,584
|
|
||
TOTAL LIABILITIES AND EQUITY
|
$
|
48,782
|
|
|
$
|
45,400
|
|
|
12 Weeks Ended February 16, 2020
|
|||||||||||||||||||||||||||||
|
Common Stock
|
|
Additional
Paid-in Capital |
|
Accumulated
Other Comprehensive Income (Loss) |
|
Retained
Earnings |
|
Total Costco
Stockholders’ Equity |
|
Noncontrolling
Interests |
|
Total
Equity |
|||||||||||||||||
|
Shares (000s)
|
|
Amount
|
|
||||||||||||||||||||||||||
BALANCE AT NOVEMBER 24, 2019
|
441,778
|
|
|
$
|
4
|
|
|
$
|
6,391
|
|
|
$
|
(1,321
|
)
|
|
$
|
10,787
|
|
|
$
|
15,861
|
|
|
$
|
363
|
|
|
$
|
16,224
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
931
|
|
|
931
|
|
|
16
|
|
|
947
|
|
|||||||
Foreign-currency translation adjustment and other, net
|
—
|
|
|
—
|
|
|
—
|
|
|
41
|
|
|
—
|
|
|
41
|
|
|
6
|
|
|
47
|
|
|||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
118
|
|
|
—
|
|
|
—
|
|
|
118
|
|
|
—
|
|
|
118
|
|
|||||||
Release of vested restricted stock units (RSUs), including tax effects
|
6
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||||||
Repurchases of common stock
|
(162
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(47
|
)
|
|
(49
|
)
|
|
—
|
|
|
(49
|
)
|
|||||||
Cash dividend declared
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(287
|
)
|
|
(287
|
)
|
|
—
|
|
|
(287
|
)
|
|||||||
BALANCE AT FEBRUARY 16, 2020
|
441,622
|
|
|
$
|
4
|
|
|
$
|
6,506
|
|
|
$
|
(1,280
|
)
|
|
$
|
11,384
|
|
|
$
|
16,614
|
|
|
$
|
385
|
|
|
$
|
16,999
|
|
BALANCE AT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
BALANCE AT
|
12 Weeks Ended February 17, 2019
|
|||||||||||||||||||||||||||||
|
Common Stock
|
|
Additional
Paid-in Capital |
|
Accumulated
Other Comprehensive Income (Loss) |
|
Retained
Earnings |
|
Total Costco
Stockholders’ Equity |
|
Noncontrolling
Interests |
|
Total
Equity |
|||||||||||||||||
|
Shares (000s)
|
|
Amount
|
|
||||||||||||||||||||||||||
BALANCE AT NOVEMBER 25, 2018
|
440,546
|
|
|
$
|
4
|
|
|
$
|
6,107
|
|
|
$
|
(1,331
|
)
|
|
$
|
8,387
|
|
|
$
|
13,167
|
|
|
$
|
312
|
|
|
$
|
13,479
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
889
|
|
|
889
|
|
|
12
|
|
|
901
|
|
|||||||
Foreign-currency translation adjustment and other, net
|
—
|
|
|
—
|
|
|
—
|
|
|
51
|
|
|
—
|
|
|
51
|
|
|
1
|
|
|
52
|
|
|||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
119
|
|
|
—
|
|
|
—
|
|
|
119
|
|
|
—
|
|
|
119
|
|
|||||||
Release of vested RSUs, including tax effects
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Repurchases of common stock
|
(561
|
)
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
(109
|
)
|
|
(117
|
)
|
|
—
|
|
|
(117
|
)
|
|||||||
Cash dividend declared and other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(251
|
)
|
|
(251
|
)
|
|
—
|
|
|
(251
|
)
|
|||||||
BALANCE AT FEBRUARY 17, 2019
|
439,989
|
|
|
$
|
4
|
|
|
$
|
6,218
|
|
|
$
|
(1,280
|
)
|
|
$
|
8,916
|
|
|
$
|
13,858
|
|
|
$
|
325
|
|
|
$
|
14,183
|
|
|
24 Weeks Ended February 16, 2020
|
|||||||||||||||||||||||||||||
|
Common Stock
|
|
Additional
Paid-in Capital |
|
Accumulated
Other Comprehensive Income (Loss) |
|
Retained
Earnings |
|
Total Costco
Stockholders’ Equity |
|
Noncontrolling
Interests |
|
Total
Equity |
|||||||||||||||||
|
Shares (000s)
|
|
Amount
|
|
||||||||||||||||||||||||||
BALANCE AT SEPTEMBER 1, 2019
|
439,625
|
|
|
$
|
4
|
|
|
$
|
6,417
|
|
|
$
|
(1,436
|
)
|
|
$
|
10,258
|
|
|
$
|
15,243
|
|
|
$
|
341
|
|
|
$
|
15,584
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,775
|
|
|
1,775
|
|
|
28
|
|
|
1,803
|
|
|||||||
Foreign-currency translation adjustment and other, net
|
—
|
|
|
—
|
|
|
—
|
|
|
156
|
|
|
—
|
|
|
156
|
|
|
16
|
|
|
172
|
|
|||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
420
|
|
|
—
|
|
|
—
|
|
|
420
|
|
|
—
|
|
|
420
|
|
|||||||
Release of vested restricted stock units (RSUs), including tax effects
|
2,259
|
|
|
—
|
|
|
(327
|
)
|
|
—
|
|
|
—
|
|
|
(327
|
)
|
|
—
|
|
|
(327
|
)
|
|||||||
Repurchases of common stock
|
(262
|
)
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(75
|
)
|
|
(79
|
)
|
|
—
|
|
|
(79
|
)
|
|||||||
Cash dividend declared
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(574
|
)
|
|
(574
|
)
|
|
—
|
|
|
(574
|
)
|
|||||||
BALANCE AT FEBRUARY 16, 2020
|
441,622
|
|
|
$
|
4
|
|
|
$
|
6,506
|
|
|
$
|
(1,280
|
)
|
|
$
|
11,384
|
|
|
$
|
16,614
|
|
|
$
|
385
|
|
|
$
|
16,999
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
24 Weeks Ended February 17, 2019
|
|||||||||||||||||||||||||||||
|
Common Stock
|
|
Additional
Paid-in Capital |
|
Accumulated
Other Comprehensive Income (Loss) |
|
Retained
Earnings |
|
Total Costco
Stockholders’ Equity |
|
Noncontrolling
Interests |
|
Total
Equity |
|||||||||||||||||
|
Shares (000s)
|
|
Amount
|
|
||||||||||||||||||||||||||
BALANCE AT SEPTEMBER 2, 2018
|
438,189
|
|
|
$
|
4
|
|
|
$
|
6,107
|
|
|
$
|
(1,199
|
)
|
|
$
|
7,887
|
|
|
$
|
12,799
|
|
|
$
|
304
|
|
|
$
|
13,103
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,656
|
|
|
1,656
|
|
|
22
|
|
|
1,678
|
|
|||||||
Foreign-currency translation adjustment and other, net
|
—
|
|
|
—
|
|
|
—
|
|
|
(81
|
)
|
|
—
|
|
|
(81
|
)
|
|
(1
|
)
|
|
(82
|
)
|
|||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
391
|
|
|
—
|
|
|
—
|
|
|
391
|
|
|
—
|
|
|
391
|
|
|||||||
Release of vested RSUs, including tax effects
|
2,511
|
|
|
—
|
|
|
(270
|
)
|
|
—
|
|
|
—
|
|
|
(270
|
)
|
|
—
|
|
|
(270
|
)
|
|||||||
Repurchases of common stock
|
(711
|
)
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
(141
|
)
|
|
(151
|
)
|
|
—
|
|
|
(151
|
)
|
|||||||
Cash dividend declared and other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(486
|
)
|
|
(486
|
)
|
|
—
|
|
|
(486
|
)
|
|||||||
BALANCE AT FEBRUARY 17, 2019
|
439,989
|
|
|
$
|
4
|
|
|
$
|
6,218
|
|
|
$
|
(1,280
|
)
|
|
$
|
8,916
|
|
|
$
|
13,858
|
|
|
$
|
325
|
|
|
$
|
14,183
|
|
February 16, 2020:
|
Cost
Basis |
|
Unrealized
Gains, Net |
|
Recorded
Basis |
||||||
Available-for-sale:
|
|
|
|
|
|
||||||
Government and agency securities
|
$
|
523
|
|
|
$
|
6
|
|
|
$
|
529
|
|
Held-to-maturity:
|
|
|
|
|
|
||||||
Certificates of deposit
|
400
|
|
|
|
|
400
|
|
||||
Total short-term investments
|
$
|
923
|
|
|
$
|
6
|
|
|
$
|
929
|
|
September 1, 2019:
|
Cost
Basis |
|
Unrealized
Gains, Net |
|
Recorded
Basis |
||||||
Available-for-sale:
|
|
|
|
|
|
||||||
Government and agency securities
|
$
|
716
|
|
|
$
|
6
|
|
|
$
|
722
|
|
Held-to-maturity:
|
|
|
|
|
|
||||||
Certificates of deposit
|
338
|
|
|
|
|
338
|
|
||||
Total short-term investments
|
$
|
1,054
|
|
|
$
|
6
|
|
|
$
|
1,060
|
|
|
Available-For-Sale
|
|
Held-To-Maturity
|
||||||||
|
Cost Basis
|
|
Fair Value
|
|
|||||||
Due in one year or less
|
$
|
196
|
|
|
$
|
197
|
|
|
$
|
400
|
|
Due after one year through five years
|
327
|
|
|
332
|
|
|
0
|
|
|||
Total
|
$
|
523
|
|
|
$
|
529
|
|
|
$
|
400
|
|
|
Level 2
|
||||||
|
February 16,
2020 |
|
September 1,
2019 |
||||
Investment in government and agency securities(1)
|
$
|
666
|
|
|
$
|
766
|
|
Forward foreign-exchange contracts, in asset position(2)
|
6
|
|
|
15
|
|
||
Forward foreign-exchange contracts, in (liability) position(2)
|
(6
|
)
|
|
(4
|
)
|
||
Total
|
$
|
666
|
|
|
$
|
777
|
|
(1)
|
At February 16, 2020, $137 cash and cash equivalents and $529 short-term investments are included in the accompanying condensed consolidated balance sheets. At September 1, 2019, $44 cash and cash equivalents and $722 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.
|
|
February 16,
2020 |
|
September 1,
2019 |
||||
1.70% Senior Notes due December 2019
|
$
|
0
|
|
|
$
|
1,200
|
|
1.75% Senior Notes due February 2020
|
500
|
|
|
500
|
|
||
2.15% Senior Notes due May 2021
|
1,000
|
|
|
1,000
|
|
||
2.25% Senior Notes due February 2022
|
500
|
|
|
500
|
|
||
2.30% Senior Notes due May 2022
|
800
|
|
|
800
|
|
||
2.75% Senior Notes due May 2024
|
1,000
|
|
|
1,000
|
|
||
3.00% Senior Notes due May 2027
|
1,000
|
|
|
1,000
|
|
||
Other long-term debt
|
824
|
|
|
852
|
|
||
Total long-term debt
|
5,624
|
|
|
6,852
|
|
||
Less unamortized debt discounts and issuance costs
|
25
|
|
|
29
|
|
||
Less current portion(1)
|
500
|
|
|
1,699
|
|
||
Long-term debt, excluding current portion
|
$
|
5,099
|
|
|
$
|
5,124
|
|
(1)
|
Net of unamortized debt discounts and issuance costs.
|
|
|
February 16,
2020 |
||
Assets
|
|
|
||
Operating lease right-of-use assets
|
|
$
|
2,596
|
|
Finance lease assets(1)
|
|
523
|
|
|
Total lease assets
|
|
$
|
3,119
|
|
Liabilities
|
|
|
||
Current
|
|
|
||
Operating(2)
|
|
$
|
168
|
|
Finance(2)
|
|
18
|
|
|
Long-term
|
|
|
||
Operating
|
|
2,446
|
|
|
Finance(3)
|
|
544
|
|
|
Total lease liabilities
|
|
$
|
3,176
|
|
(1)
|
Included in net property and equipment in the accompanying condensed consolidated balance sheets.
|
(2)
|
Included in other current liabilities in the accompanying condensed consolidated balance sheets.
|
(3)
|
Included in other long-term liabilities in the accompanying condensed consolidated balance sheets.
|
|
|
February 16,
2020 |
|
Weighted-average remaining lease term (years)
|
|
|
|
Operating leases
|
|
22
|
|
Finance leases
|
|
19
|
|
Weighted-average discount rate
|
|
|
|
Operating leases
|
|
2.24
|
%
|
Finance leases
|
|
7.24
|
%
|
|
|
12 Weeks Ended
|
|
24 Weeks Ended
|
||||
|
|
February 16,
2020 |
|
February 16,
2020 |
||||
Operating lease costs(1)
|
|
$
|
51
|
|
|
$
|
102
|
|
Finance lease costs:
|
|
|
|
|
||||
Amortization of lease assets(1)
|
|
4
|
|
|
8
|
|
||
Interest on lease liabilities(2)
|
|
8
|
|
|
15
|
|
||
Variable lease costs(3)
|
|
22
|
|
|
36
|
|
||
Total lease costs
|
|
$
|
85
|
|
|
$
|
161
|
|
(1)
|
Generally included in selling, general and administrative expenses in the accompanying condensed consolidated statements of income.
|
(2)
|
Included in interest expense in the accompanying condensed consolidated statements of income.
|
(3)
|
Included in selling, general and administrative expenses and merchandise costs in the accompanying condensed consolidated statements of income. Amount excludes property taxes, which were immaterial.
|
|
|
24 Weeks Ended
|
||
|
|
February 16,
2020 |
||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
|
||
Operating cash flows — operating leases
|
|
$
|
93
|
|
Operating cash flows — finance leases
|
|
15
|
|
|
Financing cash flows — finance leases
|
|
34
|
|
|
Leased assets obtained in exchange for operating lease liabilities
|
|
47
|
|
|
Leased assets obtained in exchange for finance lease liabilities
|
|
167
|
|
|
Operating Leases(1)
|
|
Finance Leases
|
||||
2020
|
$
|
120
|
|
|
$
|
23
|
|
2021
|
220
|
|
|
47
|
|
||
2022
|
212
|
|
|
47
|
|
||
2023
|
219
|
|
|
51
|
|
||
2024
|
194
|
|
|
47
|
|
||
Thereafter
|
2,462
|
|
|
723
|
|
||
Total(2)
|
3,427
|
|
|
938
|
|
||
Less amount representing interest
|
813
|
|
|
376
|
|
||
Present value of lease liabilities
|
$
|
2,614
|
|
|
$
|
562
|
|
(1)
|
Operating lease payments have not been reduced by future sublease income of $101.
|
(2)
|
Excludes $185 of lease payments for leases that have been signed but not commenced.
|
|
Operating Leases
|
|
Capital Leases
|
||||
2020
|
$
|
239
|
|
|
$
|
51
|
|
2021
|
229
|
|
|
53
|
|
||
2022
|
202
|
|
|
38
|
|
||
2023
|
193
|
|
|
39
|
|
||
2024
|
181
|
|
|
39
|
|
||
Thereafter
|
2,206
|
|
|
544
|
|
||
Total
|
$
|
3,250
|
|
|
764
|
|
|
Less amount representing interest
|
|
|
343
|
|
|||
Net present value of minimum lease payments
|
|
|
$
|
421
|
|
|
Shares Repurchased (000s)
|
|
Average Price per Share
|
|
Total Cost
|
|||||
Second quarter of 2020
|
162
|
|
|
$
|
301.50
|
|
|
$
|
49
|
|
First half of 2020
|
262
|
|
|
$
|
299.40
|
|
|
$
|
79
|
|
|
|
|
|
|
|
|||||
Second quarter of 2019
|
561
|
|
|
$
|
208.72
|
|
|
$
|
117
|
|
First half of 2019
|
711
|
|
|
$
|
213.08
|
|
|
$
|
151
|
|
•
|
5,133,000 time-based RSUs that vest upon continued employment over specified periods of time;
|
•
|
30,000 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
|
•
|
123,000 performance-based RSUs, granted to executive officers of the Company, subject to achievement of performance targets for fiscal 2020, 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 and the Company recognized compensation expense for these awards as it is currently deemed probable that the targets will be achieved.
|
|
Number of
Units
(in 000s)
|
|
Weighted-Average
Grant Date Fair
Value
|
|||
Outstanding at September 1, 2019
|
6,496
|
|
|
$
|
167.55
|
|
Granted
|
2,252
|
|
|
294.08
|
|
|
Vested and delivered
|
(3,351
|
)
|
|
188.91
|
|
|
Forfeited
|
(111
|
)
|
|
193.02
|
|
|
Outstanding at February 16, 2020
|
5,286
|
|
|
$
|
207.40
|
|
|
12 Weeks Ended
|
|
24 Weeks Ended
|
||||||||||||
|
February 16,
2020 |
|
February 17,
2019 |
|
February 16,
2020 |
|
February 17,
2019 |
||||||||
Stock-based compensation expense
|
$
|
118
|
|
|
$
|
119
|
|
|
$
|
419
|
|
|
$
|
389
|
|
Less recognized income tax benefit
|
21
|
|
|
23
|
|
|
87
|
|
|
84
|
|
||||
Stock-based compensation expense, net
|
$
|
97
|
|
|
$
|
96
|
|
|
$
|
332
|
|
|
$
|
305
|
|
|
12 Weeks Ended
|
|
24 Weeks Ended
|
||||||||||||
|
February 16,
2020 |
|
February 17,
2019 |
|
February 16,
2020 |
|
February 17,
2019 |
||||||||
Net income attributable to Costco
|
$
|
931
|
|
|
$
|
889
|
|
|
$
|
1,775
|
|
|
$
|
1,656
|
|
Weighted average basic shares
|
442,021
|
|
|
440,284
|
|
|
441,920
|
|
|
439,721
|
|
||||
RSUs
|
1,706
|
|
|
2,053
|
|
|
1,784
|
|
|
2,814
|
|
||||
Weighted average diluted shares
|
443,727
|
|
|
442,337
|
|
|
443,704
|
|
|
442,535
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Anti-dilutive RSUs
|
—
|
|
|
1,667
|
|
|
—
|
|
|
—
|
|
|
United States
Operations |
|
Canadian
Operations |
|
Other
International Operations |
|
Total
|
||||||||
12 Weeks Ended February 16, 2020
|
|
|
|
|
|
|
|
||||||||
Total revenue
|
$
|
28,523
|
|
|
$
|
5,231
|
|
|
$
|
5,318
|
|
|
$
|
39,072
|
|
Operating income
|
821
|
|
|
202
|
|
|
243
|
|
|
1,266
|
|
||||
12 Weeks Ended February 17, 2019
|
|
|
|
|
|
|
|
||||||||
Total revenue
|
$
|
25,872
|
|
|
$
|
4,792
|
|
|
$
|
4,732
|
|
|
$
|
35,396
|
|
Operating income
|
812
|
|
|
198
|
|
|
193
|
|
|
1,203
|
|
||||
24 Weeks Ended February 16, 2020
|
|
|
|
|
|
|
|
||||||||
Total revenue
|
$
|
55,588
|
|
|
$
|
10,358
|
|
|
$
|
10,166
|
|
|
$
|
76,112
|
|
Operating income
|
1,456
|
|
|
430
|
|
|
441
|
|
|
2,327
|
|
||||
Total assets
|
33,575
|
|
|
4,470
|
|
|
10,737
|
|
|
48,782
|
|
||||
24 Weeks Ended February 17, 2019
|
|
|
|
|
|
|
|
||||||||
Total revenue
|
$
|
51,422
|
|
|
$
|
9,769
|
|
|
$
|
9,274
|
|
|
$
|
70,465
|
|
Operating income
|
1,372
|
|
|
412
|
|
|
368
|
|
|
2,152
|
|
||||
Total assets
|
30,033
|
|
|
4,250
|
|
|
8,516
|
|
|
42,799
|
|
||||
52 Weeks Ended September 1, 2019
|
|
|
|
|
|
|
|
||||||||
Total revenue
|
$
|
111,751
|
|
|
$
|
21,366
|
|
|
$
|
19,586
|
|
|
$
|
152,703
|
|
Operating income
|
3,063
|
|
|
924
|
|
|
750
|
|
|
4,737
|
|
||||
Total assets
|
32,162
|
|
|
4,369
|
|
|
8,869
|
|
|
45,400
|
|
|
12 Weeks Ended
|
|
24 Weeks Ended
|
||||||||||||
|
February 16,
2020 |
|
February 17,
2019 |
|
February 16,
2020 |
|
February 17,
2019 |
||||||||
Foods and Sundries
|
$
|
14,984
|
|
|
$
|
13,966
|
|
|
$
|
29,516
|
|
|
$
|
27,607
|
|
Hardlines
|
6,774
|
|
|
5,770
|
|
|
12,617
|
|
|
11,610
|
|
||||
Fresh Foods
|
5,079
|
|
|
4,690
|
|
|
9,655
|
|
|
8,983
|
|
||||
Softlines
|
4,504
|
|
|
4,224
|
|
|
8,801
|
|
|
8,347
|
|
||||
Ancillary
|
6,915
|
|
|
5,978
|
|
|
13,903
|
|
|
12,392
|
|
||||
Total Net Sales
|
$
|
38,256
|
|
|
$
|
34,628
|
|
|
$
|
74,492
|
|
|
$
|
68,939
|
|
•
|
Net sales increased 10% to $38,256, driven by an increase in comparable sales of 9% and sales at 16 net new warehouses opened since the end of the second quarter of 2019;
|
•
|
Membership fee revenue increased 6% to $816, primarily due to sign-ups at existing and new warehouses;
|
•
|
Gross margin percentage decreased 31 basis points, primarily in our core merchandise categories driven by a shift in sales penetration to certain lower-margin warehouse ancillary and other businesses;
|
•
|
SG&A expenses as a percentage of net sales decreased 22 basis points, primarily due to leveraging increased sales and a shift in sales penetration to certain warehouse ancillary and other businesses with lower SG&A as a percentage of net sales;
|
•
|
Net income increased 5% to $931, or $2.10 per diluted share, compared to $889, or $2.01 per diluted share in 2019; and
|
•
|
On January 23, 2020, our Board of Directors declared a quarterly cash dividend of $0.65 per share, which was paid on February 21, 2020.
|
|
12 Weeks Ended
|
|
24 Weeks Ended
|
||||||||||||
|
February 16,
2020 |
|
February 17,
2019 |
|
February 16,
2020 |
|
February 17,
2019 |
||||||||
Net Sales
|
$
|
38,256
|
|
|
$
|
34,628
|
|
|
$
|
74,492
|
|
|
$
|
68,939
|
|
Changes in net sales:
|
|
|
|
|
|
|
|
||||||||
U.S
|
10
|
%
|
|
9
|
%
|
|
8
|
%
|
|
11
|
%
|
||||
Canada
|
9
|
%
|
|
1
|
%
|
|
6
|
%
|
|
3
|
%
|
||||
Other International
|
12
|
%
|
|
4
|
%
|
|
9
|
%
|
|
6
|
%
|
||||
Total Company
|
10
|
%
|
|
7
|
%
|
|
8
|
%
|
|
9
|
%
|
||||
Changes in comparable sales:
|
|
|
|
|
|
|
|
||||||||
U.S
|
9
|
%
|
|
7
|
%
|
|
7
|
%
|
|
9
|
%
|
||||
Canada
|
9
|
%
|
|
0
|
%
|
|
6
|
%
|
|
1
|
%
|
||||
Other International
|
8
|
%
|
|
1
|
%
|
|
6
|
%
|
|
2
|
%
|
||||
Total Company
|
9
|
%
|
|
5
|
%
|
|
7
|
%
|
|
7
|
%
|
||||
Changes in comparable sales excluding the impact of changes in foreign currency and gasoline prices (1):
|
|
|
|
|
|
|
|
||||||||
U.S
|
8
|
%
|
|
7
|
%
|
|
7
|
%
|
|
8
|
%
|
||||
Canada
|
7
|
%
|
|
6
|
%
|
|
6
|
%
|
|
6
|
%
|
||||
Other International
|
7
|
%
|
|
5
|
%
|
|
6
|
%
|
|
5
|
%
|
||||
Total Company
|
8
|
%
|
|
7
|
%
|
|
6
|
%
|
|
7
|
%
|
(1)
|
Excludes the impact of the revenue recognition standard for the periods ended February 17, 2019.
|
|
12 Weeks Ended
|
|
24 Weeks Ended
|
||||||||||||
|
February 16,
2020 |
|
February 17,
2019 |
|
February 16,
2020 |
|
February 17,
2019 |
||||||||
Membership fees
|
$
|
816
|
|
|
$
|
768
|
|
|
$
|
1,620
|
|
|
$
|
1,526
|
|
Membership fees as a percentage of net sales
|
2.13
|
%
|
|
2.22
|
%
|
|
2.17
|
%
|
|
2.21
|
%
|
||||
Total paid members (000s)
|
55,300
|
|
|
52,700
|
|
|
—
|
|
|
—
|
|
||||
Total cardholders (000s)
|
100,900
|
|
|
96,300
|
|
|
—
|
|
|
—
|
|
|
12 Weeks Ended
|
|
24 Weeks Ended
|
||||||||||||
|
February 16,
2020 |
|
February 17,
2019 |
|
February 16,
2020 |
|
February 17,
2019 |
||||||||
Net sales
|
$
|
38,256
|
|
|
$
|
34,628
|
|
|
$
|
74,492
|
|
|
$
|
68,939
|
|
Less merchandise costs
|
34,056
|
|
|
30,720
|
|
|
66,289
|
|
|
61,343
|
|
||||
Gross margin
|
$
|
4,200
|
|
|
$
|
3,908
|
|
|
$
|
8,203
|
|
|
$
|
7,596
|
|
Gross margin percentage
|
10.98
|
%
|
|
11.29
|
%
|
|
11.01
|
%
|
|
11.02
|
%
|
|
12 Weeks Ended
|
|
24 Weeks Ended
|
||||||||||||
|
February 16,
2020 |
|
February 17,
2019 |
|
February 16,
2020 |
|
February 17,
2019 |
||||||||
SG&A expenses
|
$
|
3,743
|
|
|
$
|
3,464
|
|
|
$
|
7,475
|
|
|
$
|
6,939
|
|
SG&A expenses as a percentage of net sales
|
9.78
|
%
|
|
10.00
|
%
|
|
10.03
|
%
|
|
10.06
|
%
|
|
12 Weeks Ended
|
|
24 Weeks Ended
|
||||||||||||
|
February 16,
2020 |
|
February 17,
2019 |
|
February 16,
2020 |
|
February 17,
2019 |
||||||||
Preopening expenses
|
$
|
7
|
|
|
$
|
9
|
|
|
$
|
21
|
|
|
$
|
31
|
|
Warehouse openings, including relocations
|
|
|
|
|
|
|
|
||||||||
United States
|
0
|
|
|
2
|
|
|
3
|
|
|
8
|
|
||||
Canada
|
0
|
|
|
0
|
|
|
1
|
|
|
2
|
|
||||
Other International
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
Total warehouse openings, including relocations
|
0
|
|
|
2
|
|
|
4
|
|
|
10
|
|
|
12 Weeks Ended
|
|
24 Weeks Ended
|
||||||||||||
|
February 16,
2020 |
|
February 17,
2019 |
|
February 16,
2020 |
|
February 17,
2019 |
||||||||
Interest expense
|
$
|
34
|
|
|
$
|
34
|
|
|
$
|
72
|
|
|
$
|
70
|
|
|
12 Weeks Ended
|
|
24 Weeks Ended
|
||||||||||||
|
February 16,
2020 |
|
February 17,
2019 |
|
February 16,
2020 |
|
February 17,
2019 |
||||||||
Interest income
|
$
|
30
|
|
|
$
|
33
|
|
|
$
|
62
|
|
|
$
|
54
|
|
Foreign-currency transaction gains, net
|
8
|
|
|
8
|
|
|
4
|
|
|
3
|
|
||||
Other, net
|
7
|
|
|
5
|
|
|
14
|
|
|
11
|
|
||||
Interest income and other, net
|
$
|
45
|
|
|
$
|
46
|
|
|
$
|
80
|
|
|
$
|
68
|
|
|
12 Weeks Ended
|
|
24 Weeks Ended
|
||||||||||||
|
February 16,
2020 |
|
February 17,
2019 |
|
February 16,
2020 |
|
February 17,
2019 |
||||||||
Provision for income taxes
|
$
|
330
|
|
|
$
|
314
|
|
|
$
|
532
|
|
|
$
|
472
|
|
Effective tax rate
|
25.9
|
%
|
|
25.8
|
%
|
|
22.8
|
%
|
|
21.9
|
%
|
|
24 Weeks Ended
|
||||||
|
February 16,
2020 |
|
February 17,
2019 |
||||
Net cash provided by operating activities
|
$
|
2,721
|
|
|
$
|
1,958
|
|
Net cash used in investing activities
|
(1,100
|
)
|
|
(1,171
|
)
|
||
Net cash used in financing activities
|
(2,228
|
)
|
|
(749
|
)
|
Period
|
Total Number of Shares Purchased
|
|
Average Price Paid Per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Programs(1)
|
|
Maximum Dollar Value of Shares that May Yet be Purchased Under the Programs(1)
|
||||||
November 25, 2019 — December 22, 2019
|
40,000
|
|
|
$
|
295.58
|
|
|
40,000
|
|
|
$
|
3,901
|
|
December 23, 2019 — January 19, 2020
|
61,000
|
|
|
296.01
|
|
|
61,000
|
|
|
3,883
|
|
||
January 20, 2020 — February 16, 2020
|
61,000
|
|
|
310.88
|
|
|
61,000
|
|
|
3,864
|
|
||
Total second quarter
|
162,000
|
|
|
$
|
301.50
|
|
|
162,000
|
|
|
|
(1)
|
Our stock repurchase program is conducted under a $4,000 authorization approved by our Board of Directors in April 2019, which expires in April 2023.
|
|
|
|
|
|
|
Incorporated by Reference
|
||||
Exhibit
Number
|
|
Exhibit Description
|
|
Filed
Herewith
|
|
Form
|
|
Period
Ending
|
|
Filing Date
|
|
|
|
|
|
|
|
|
|
|
|
|
|
x
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
|
|
1/29/2020
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
x
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
x
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
101.INS
|
|
Inline XBRL Instance Document
|
|
x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101.SCH
|
|
Inline XBRL Taxonomy Extension Schema Document
|
|
x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101.CAL
|
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document
|
|
x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101.DEF
|
|
Inline XBRL Taxonomy Extension Definition Linkbase Document
|
|
x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101.LAB
|
|
Inline XBRL Taxonomy Extension Label Linkbase Document
|
|
x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101.PRE
|
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document
|
|
x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
104
|
|
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)
|
|
x
|
|
|
|
|
|
|
|
COSTCO WHOLESALE CORPORATION
(Registrant)
|
||
|
|
|
|
March 11, 2020
|
By
|
|
/s/ W. CRAIG JELINEK
|
Date
|
|
|
W. Craig Jelinek
President, Chief Executive Officer and Director
|
|
|
|
|
March 11, 2020
|
By
|
|
/s/ RICHARD A. GALANTI
|
Date
|
|
|
Richard A. Galanti
Executive Vice President, Chief Financial Officer and Director
|
1 Year Costco Wholesale Chart |
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