Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Nov. 22, 2015 | Dec. 10, 2015 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Nov. 22, 2015 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | COST | |
Entity Registrant Name | COSTCO WHOLESALE CORP /NEW | |
Entity Central Index Key | 909,832 | |
Current Fiscal Year End Date | --08-28 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 439,777,272 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Nov. 22, 2015 | Aug. 30, 2015 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 5,054 | $ 4,801 |
Short-term investments | 1,229 | 1,618 |
Receivables, net | 1,359 | 1,224 |
Merchandise inventories | 10,382 | 8,908 |
Deferred income taxes and other current assets | 834 | 748 |
Total current assets | 18,858 | 17,299 |
PROPERTY AND EQUIPMENT | ||
Land | 5,079 | 4,961 |
Buildings and improvements | 13,150 | 12,618 |
Equipment and fixtures | 5,480 | 5,274 |
Construction in progress | 647 | 811 |
Gross property and equipment | 24,356 | 23,664 |
Less accumulated depreciation and amortization | (8,489) | (8,263) |
Net property and equipment | 15,867 | 15,401 |
OTHER ASSETS | 726 | 728 |
TOTAL ASSETS | 35,451 | 33,428 |
CURRENT LIABILITIES | ||
Accounts payable | 10,378 | 9,011 |
Current portion long-term debt | 1,281 | 1,283 |
Accrued salaries and benefits | 2,436 | 2,468 |
Accrued member rewards | 812 | 813 |
Deferred membership fees | 1,350 | 1,269 |
Other current liabilities | 2,036 | 1,696 |
Total current liabilities | 18,293 | 16,540 |
LONG-TERM DEBT, excluding current portion | 4,845 | 4,852 |
DEFERRED INCOME TAXES AND OTHER LIABILITIES | 1,233 | 1,193 |
Total liabilities | $ 24,371 | $ 22,585 |
COMMITMENTS AND CONTINGENCIES | ||
EQUITY | ||
Preferred stock $.005 par value; 100,000,000 shares authorized; no shares issued and outstanding | $ 0 | $ 0 |
Common stock $.005 par value; 900,000,000 shares authorized; 439,777,000 and 437,952,000 shares issued and outstanding | 2 | 2 |
Additional paid-in capital | 5,247 | 5,218 |
Accumulated other comprehensive loss | (1,105) | (1,121) |
Retained earnings | 6,704 | 6,518 |
Total Costco stockholders' equity | 10,848 | 10,617 |
Noncontrolling interests | 232 | 226 |
Total equity | 11,080 | 10,843 |
TOTAL LIABILITIES AND EQUITY | $ 35,451 | $ 33,428 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Nov. 22, 2015 | Aug. 30, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.005 | $ 0.005 |
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) | $ 0.005 | $ 0.005 |
Common stock, shares authorized | 900,000,000 | 900,000,000 |
Common stock, shares issued | 439,777,000 | 437,952,000 |
Common stock, shares outstanding | 439,777,000 | 437,952,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Nov. 22, 2015 | Nov. 23, 2014 | |
REVENUE | ||
Net sales | $ 26,627 | $ 26,284 |
Membership fees | 593 | 582 |
Total revenue | 27,220 | 26,866 |
OPERATING EXPENSES | ||
Merchandise costs | 23,621 | 23,385 |
Selling, general and administrative | 2,806 | 2,696 |
Preopening expenses | 26 | 15 |
Operating income | 767 | 770 |
OTHER INCOME (EXPENSE) | ||
Interest expense | (33) | (26) |
Interest income and other, net | 28 | 35 |
INCOME BEFORE INCOME TAXES | 762 | 779 |
Provision for income taxes | 275 | 274 |
Net income including noncontrolling interests | 487 | 505 |
Net income attributable to noncontrolling interests | (7) | (9) |
NET INCOME ATTRIBUTABLE TO COSTCO | $ 480 | $ 496 |
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO: | ||
Basic (in dollars per share) | $ 1.10 | $ 1.13 |
Diluted (in dollars per share) | $ 1.09 | $ 1.12 |
Shares used in calculation (000's) | ||
Basic (shares) | 438,342 | 438,760 |
Diluted (shares) | 441,386 | 442,210 |
Cash dividends declared per common share | $ 0.40 | $ 0.355 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Nov. 22, 2015 | Nov. 23, 2014 | |
Statement of Comprehensive Income [Abstract] | ||
NET INCOME INCLUDING NONCONTROLLING INTERESTS | $ 487 | $ 505 |
Foreign-currency translation adjustment and other, net | 15 | (322) |
Comprehensive income | 502 | 183 |
Less: Comprehensive income attributable to noncontrolling interests | 6 | (1) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO COSTCO | $ 496 | $ 184 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Nov. 22, 2015 | Nov. 23, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income including noncontrolling interests | $ 487 | $ 505 |
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities: | ||
Depreciation and amortization | 271 | 254 |
Stock-based compensation | 186 | 150 |
Excess tax benefits on stock-based awards | (74) | (62) |
Other non-cash operating activities, net | (11) | (22) |
Changes in operating assets and liabilities: | ||
Increase in merchandise inventories | (1,473) | (1,328) |
Increase in accounts payable | 1,435 | 1,445 |
Other operating assets and liabilities, net | (10) | 186 |
Net cash provided by operating activities | 811 | 1,128 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of short-term investments | (197) | (426) |
Maturities and sales of short-term investments | 584 | 342 |
Additions to property and equipment | (715) | (555) |
Other investing activities, net | (4) | (14) |
Net cash used in investing activities | (332) | (653) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Change in bank checks outstanding | (20) | (21) |
Proceeds from short-term borrowings | 83 | 36 |
Minimum tax withholdings on stock-based awards | (219) | (177) |
Excess tax benefits on stock-based awards | 74 | 62 |
Repurchases of common stock | (142) | (18) |
Other financing activities, net | 0 | 10 |
Net cash used in financing activities | (224) | (108) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (2) | (136) |
Net increase in cash and cash equivalents | 253 | 231 |
CASH AND CASH EQUIVALENTS BEGINNING OF YEAR | 4,801 | 5,738 |
CASH AND CASH EQUIVALENTS END OF PERIOD | 5,054 | 5,969 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Interest (reduced by $4 and $2 interest capitalized in 2016 and 2015, respectively) | 31 | 33 |
Income taxes, net | 298 | 150 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES: | ||
Cash dividend declared, but not yet paid | $ 176 | $ 156 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements Of Cash Flows (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Nov. 22, 2015 | Nov. 23, 2014 | |
Statement of Cash Flows [Abstract] | ||
Interest capitalized | $ 4 | $ 2 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Nov. 22, 2015 | |
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 select private-label products in a wide range of merchandise categories will produce high sales volumes and rapid inventory turnover. At November 22, 2015 , Costco operated 697 warehouses worldwide: 487 United States (U.S.) locations (in 43 states, Washington, D.C., and Puerto Rico), 90 Canada locations, 36 Mexico locations, 27 United Kingdom (U.K.) locations, 24 Japan locations, 12 Korea locations, 11 Taiwan locations, eight Australia locations and two Spain locations. The Company's online business operates websites in the U.S., Canada, U.K., Mexico, and Korea. 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 and other consolidated entities have been eliminated in consolidation. The Company’s net income excludes income attributable to noncontrolling interests in Taiwan and Korea. 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, 2015 . 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. References to the first quarters of 2016 and 2015 relate to the 12-week fiscal quarters ended November 22, 2015 , and November 23, 2014 , 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. Actual results could differ from those estimates and assumptions. Fair Value of Financial Instruments The Company accounts for certain assets and liabilities at fair value. The carrying value of the Company’s financial instruments, including cash and cash equivalents, receivables and accounts payable, approximate fair value due to their short-term nature or variable interest rates. See Notes 2, 3, and 4 for the carrying value and fair value of the Company’s investments, derivative instruments, and fixed-rate debt, respectively. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated by applying a fair value hierarchy, which requires maximizing the use of observable inputs when measuring fair value. The three levels of inputs are: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Significant unobservable inputs that are not corroborated by market data. The Company’s current financial liabilities have fair values that approximate their carrying values. The Company’s long-term financial liabilities consist of long-term debt, which is recorded on the balance sheet at issuance price and adjusted for any applicable unamortized discounts or premiums and debt issuance costs. There have been no material changes to the valuation techniques utilized in the fair value measurement of assets and liabilities as disclosed in the Company's 2015 Form 10-K. Merchandise Inventories Merchandise inventories are valued at the lower of cost or market, as determined primarily by the retail inventory method, and are stated using the last-in, first-out (LIFO) method for substantially all U.S. merchandise inventories. Merchandise inventories for all foreign operations are primarily valued by the retail inventory method and are stated using the first-in, first-out (FIFO) method. The Company believes the LIFO method more fairly presents the results of operations by more closely matching current costs with current revenues. The Company records an adjustment each quarter, if necessary, for the projected annual effect of inflation or deflation, and these estimates are adjusted to actual results determined at year-end, after actual inflation rates and inventory levels for the year have been determined. At November 22, 2015 , and August 30, 2015 , the cumulative impact of the LIFO valuation on merchandise inventories was $77 and $82 , respectively. Derivatives The Company is exposed to foreign-currency exchange-rate fluctuations in the normal course of business. It manages these fluctuations, in part, through the use of forward foreign-exchange contracts, seeking to economically hedge the impact of fluctuations of foreign exchange on known future expenditures denominated in a non-functional foreign-currency. The contracts relate primarily to U.S. dollar merchandise inventory expenditures made by the Company’s international subsidiaries, whose functional currency is not the U.S. dollar. Currently, these contracts do not qualify for derivative hedge accounting. The Company seeks to mitigate risk with the use of these contracts and does not intend to engage in speculative transactions. These contracts do not contain any credit-risk-related contingent features. The aggregate notional amounts of open, unsettled forward foreign-exchange contracts were $828 and $889 at November 22, 2015 , and August 30, 2015 , respectively. While the Company seeks to manage counterparty risk associated with these contracts by limiting transactions to counterparties with which the Company has an established banking relationship, there can be no assurance that this practice is effective. The contracts are limited to less than one year in duration. See Note 3 for information on the fair value of unsettled forward foreign-exchange contracts as of November 22, 2015 , and August 30, 2015 . The unrealized gains or losses recognized in interest income and other, net in the accompanying condensed consolidated statements of income relating to the net changes in the fair value of unsettled forward foreign-exchange contracts were immaterial for the first quarter of 2016 and a net gain of $23 for the first quarter of 2015 . The Company is exposed to fluctuations in prices for the energy it consumes, particularly electricity and natural gas, which it seeks to partially mitigate through the use of fixed-price contracts for certain of its warehouses and other facilities, primarily in the U.S. and Canada. The Company also enters into variable-priced contracts for some purchases of natural gas, in addition to fuel for its gas stations, on an index basis. These contracts meet the characteristics of derivative instruments, but generally qualify for the “normal purchases or normal sales” exception under authoritative guidance and thus require no mark-to-market adjustment. Foreign Currency The Company recognizes foreign-currency transaction gains and losses related to revaluing or settling monetary assets and liabilities denominated in currencies other than the functional currency in interest income and other, net in the accompanying condensed consolidated statements of income. Generally, this includes the U.S. dollar cash and cash equivalents and the U.S. dollar payables of consolidated subsidiaries revalued to their functional currency. Also included are realized foreign-currency gains or losses from settlements of forward foreign-exchange contracts. These items resulted in a net gain of $19 in the first quarter of 2016 and were immaterial in the first quarter of 2015 . Stock Repurchase Programs Repurchased shares of common stock are retired, in accordance with the Washington Business Corporation Act. The par value of repurchased shares is deducted from common stock and the excess repurchase price over par value is deducted by allocation to both additional paid-in capital and retained earnings. The amount allocated to additional paid-in capital is calculated as the current value of additional paid-in capital per share outstanding and is applied to the number of shares repurchased. Any remaining amount is allocated to retained earnings. See Note 5 for additional information. Recently Adopted Accounting Pronouncements In April 2014, the Financial Accounting Standards Board (FASB) issued guidance that changed the criteria for reporting discontinued operations, as well as requiring new disclosures regarding discontinued operations and disposals that do not qualify for discontinued operations reporting. This guidance became effective for fiscal years beginning after December 15, 2014. The Company adopted this guidance at the beginning of fiscal year 2016. Adoption did not have an impact on the Company’s condensed consolidated financial statements or disclosures. In April 2015, the FASB issued guidance to simplify the presentation of debt issuance costs by recording deferred debt issuance costs as a direct deduction from the carrying amount of the related debt liability. The new guidance is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years with early adoption permitted. The Company elected to early adopt the guidance at the beginning of its first quarter of fiscal year 2016. The Company reclassified deferred issuance costs from other assets to the respective debt liability on a retrospective basis. Adoption of this guidance and prior fiscal year reclassifications did not have a material impact on the Company's previously reported condensed and consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted In May 2014, the FASB issued new guidance on the recognition of revenue from contracts with customers. The guidance converges the requirements for reporting revenue in addition to requiring disclosures sufficient to describe the nature, amount, timing, and uncertainty of revenue and cash flows arising from these contracts. Companies can transition to the standard either retrospectively or as a cumulative effect adjustment as of the date of adoption. The new standard is effective for fiscal years and interim periods within those years beginning after December 15, 2017. The Company plans to adopt this guidance at the beginning of its first quarter of fiscal year 2019. The Company is evaluating the impact of this standard on its condensed consolidated financial statements and disclosures. In November 2015, the FASB issued new guidance on the presentation of deferred tax assets and liabilities by jurisdiction, along with any related valuation allowance. The new guidance requires companies to classify all deferred tax assets and liabilities as noncurrent on the balance sheet. The new standard is effective for fiscal years and interim periods within those years beginning after December 15, 2016. Companies may early adopt the new standard at the beginning of an interim or annual period, either prospectively or retrospectively. The Company is evaluating the impact of this standard on its condensed consolidated financial statements and disclosures. |
Investments
Investments | 3 Months Ended |
Nov. 22, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Note 2—Investments The Company's major categories of investments have not materially changed from the annual reporting period ended August 30, 2015 . The Company’s investments were as follows: November 22, 2015: Cost Basis Unrealized Gains, Net Recorded Basis Available-for-sale: Government and agency securities $ 1,091 $ 2 $ 1,093 Asset and mortgage-backed securities 4 0 4 Total available-for-sale 1,095 2 1,097 Held-to-maturity: Certificates of deposit 132 132 Total short-term investments $ 1,227 $ 2 $ 1,229 August 30, 2015: Cost Basis Unrealized Gains, Net Recorded Basis Available-for-sale: Government and agency securities $ 1,394 $ 4 $ 1,398 Asset and mortgage-backed securities 5 0 5 Total available-for-sale 1,399 4 1,403 Held-to-maturity: Certificates of deposit 215 215 Total short-term investments $ 1,614 $ 4 $ 1,618 At November 22, 2015 , there were no available-for-sale securities with continuous unrealized-loss positions. At August 30, 2015 , available-for-sale securities that were in continuous unrealized-loss positions were not material. During the first quarter of 2016 and 2015 , there were no unrealized gains and losses on cash and cash equivalents. The proceeds from sales of available-for-sale securities were $50 and $17 during the first quarter of 2016 and 2015 , respectively. Gross realized gains or losses from sales of available-for-sale securities during the first quarter of 2016 and 2015 were not material. The maturities of available-for-sale and held-to-maturity securities at November 22, 2015 , were as follows: Available-For-Sale Held-To-Maturity Cost Basis Fair Value Due in one year or less $ 177 $ 177 $ 132 Due after one year through five years 858 859 0 Due after five years 60 61 0 $ 1,095 $ 1,097 $ 132 |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Nov. 22, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Note 3—Fair Value Measurement Assets and Liabilities Measured at Fair Value on a Recurring Basis The tables below present information regarding the Company’s financial assets and financial liabilities that are measured at fair value on a recurring basis and indicate the level within the fair value hierarchy reflecting the valuation techniques utilized to determine fair value. November 22, 2015: Level 1 Level 2 Money market mutual funds (1) $ 619 $ 0 Investment in government and agency securities 0 1,093 Investment in asset and mortgage-backed securities 0 4 Forward foreign-exchange contracts, in asset position (2) 0 12 Forward foreign-exchange contracts, in (liability) position (2) 0 (2 ) Total $ 619 $ 1,107 August 30, 2015: Level 1 Level 2 Money market mutual funds (1) $ 306 $ 0 Investment in government and agency securities 0 1,398 Investment in asset and mortgage-backed securities 0 5 Forward foreign-exchange contracts, in asset position (2) 0 16 Forward foreign-exchange contracts, in (liability) position (2) 0 (4 ) Total $ 306 $ 1,415 _______________ (1) Included in cash and cash equivalents in the accompanying condensed consolidated balance sheets. (2) The asset and the liability values are included in deferred income taxes and other current assets and other current liabilities, respectively, in the accompanying condensed consolidated balance sheets. See Note 1 for additional information on derivative instruments. On November 22, 2015 , and August 30, 2015 , the Company did not hold any Level 3 financial assets and liabilities that were measured at fair value on a recurring basis. There were no financial assets or liabilities measured on a recurring basis using significant unobservable inputs (Level 3) and there were no transfers in or out of Level 1, 2, or 3 during the first quarter of 2016 or 2015 . Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Financial assets measured at fair value on a nonrecurring basis include held-to-maturity investments that are carried at amortized cost and are not remeasured to fair value on a recurring basis. There were no fair value adjustments to these financial assets during the first quarter of 2016 or 2015 . Nonfinancial assets measured at fair value on a nonrecurring basis include items such as long-lived assets that are measured at fair value resulting from an impairment, if deemed necessary. There were no fair value adjustments to nonfinancial assets during the first quarter of 2016 and they were immaterial for 2015 . |
Debt
Debt | 3 Months Ended |
Nov. 22, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Note 4—Debt The estimated fair value of the Company’s debt was based primarily on reported market values, recently completed market transactions, and estimates based upon interest rates, maturities, and credit risk. Substantially all of the Company's long-term debt is valued using Level 2 inputs. The carrying and estimated fair values of the Company’s long-term debt consisted of the following: November 22, 2015 August 30, 2015 Carrying Value Fair Value Carrying Value Fair Value 0.65% Senior Notes due December 2015 $ 1,200 $ 1,200 $ 1,200 $ 1,201 5.5% Senior Notes due March 2017 1,099 1,165 1,099 1,171 1.125% Senior Notes due December 2017 1,098 1,100 1,098 1,097 1.7% Senior Notes due December 2019 1,196 1,212 1,195 1,186 1.75% Senior Notes due February 2020 497 497 497 494 2.25% Senior Notes due February 2022 496 501 496 484 Other long-term debt 540 557 550 555 Total long-term debt 6,126 6,232 6,135 6,188 Less current portion 1,281 1,282 1,283 1,284 Long-term debt, excluding current portion $ 4,845 $ 4,950 $ 4,852 $ 4,904 Subsequent to the end of the quarter, on December 7, 2015, the Company paid the outstanding principal balance and associated interest on the 0.65% Senior Notes with its existing liquidity sources of cash and cash equivalents and short-term investments. |
Equity and Comprehensive Income
Equity and Comprehensive Income | 3 Months Ended |
Nov. 22, 2015 | |
Equity [Abstract] | |
Equity and Comprehensive Income | Note 5—Equity and Comprehensive Income Dividends The Company’s current quarterly dividend rate is $0.40 per share, compared to $0.355 per share in the first quarter of 2015 . On October 29, 2015 , the Board of Directors declared a quarterly cash dividend in the amount of $0.40 per share, which was paid on November 27, 2015 . Stock Repurchase Programs The Company's stock repurchase activity during the first quarter of 2016 and 2015 is summarized below: Shares Repurchased (000's) Average Price per Share Total Cost First quarter of 2016 898 $ 144.88 $ 130 First quarter of 2015 139 $ 126.43 $ 18 The remaining amount available for stock repurchases under our approved plan, which expires in April 2019, was $3,569 at November 22, 2015 . These amounts may differ from the stock repurchase balances in the accompanying condensed consolidated statements of cash flows due to changes in unsettled stock repurchases at the end of a quarter. Purchases are made from time-to-time, as conditions warrant, in the open market or in block purchases, and pursuant to plans under SEC Rule 10b5-1. Components of Equity and Comprehensive Income The following tables show the changes in equity attributable to Costco and the noncontrolling interests of consolidated subsidiaries: Attributable to Costco Noncontrolling Interests Total Equity Equity at August 30, 2015 $ 10,617 $ 226 $ 10,843 Comprehensive income: Net income 480 7 487 Foreign-currency translation adjustment and other, net 16 (1 ) 15 Comprehensive income 496 6 502 Stock-based compensation 186 0 186 Release of vested restricted stock units (RSUs), including tax effects (145 ) 0 (145 ) Repurchases of common stock (130 ) 0 (130 ) Cash dividends declared (176 ) 0 (176 ) Equity at November 22, 2015 $ 10,848 $ 232 $ 11,080 Attributable to Costco Noncontrolling Interests Total Equity Equity at August 31, 2014 $ 12,303 $ 212 $ 12,515 Comprehensive income: Net income 496 9 505 Foreign-currency translation adjustment and other, net (312 ) (10 ) (322 ) Comprehensive income 184 (1 ) 183 Stock-based compensation 150 0 150 Stock options exercised, including tax effects 17 0 17 Release of vested RSUs, including tax effects (121 ) 0 (121 ) Repurchases of common stock (18 ) 0 (18 ) Cash dividends declared (156 ) 0 (156 ) Equity at November 23, 2014 $ 12,359 $ 211 $ 12,570 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 3 Months Ended |
Nov. 22, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Plans | Note 6—Stock-Based Compensation The Seventh Restated 2002 Stock Incentive Plan (Seventh Plan) authorized the issuance of 23,500,000 shares ( 13,429,000 RSUs) of common stock for future grants in addition to the shares authorized under the previous plan. 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 equal to the minimum statutory withholding taxes. Summary of Restricted Stock Unit Activity At November 22, 2015 , 14,836,000 shares were available to be granted as RSUs and the following awards were outstanding: • 8,150,000 time-based RSUs, which vest upon continued employment over specified periods of time; • 212,000 performance-based RSUs granted to certain 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 • 236,000 performance-based RSUs granted to executive officers of the Company subject to achievement of performance targets for fiscal 2016 , as determined by the Compensation Committee of the Board of Directors after the end of the fiscal year. These awards are not included in the table below. The following table summarizes RSU transactions during the first quarter of 2016 : Number of Units (in 000’s) Weighted-Average Grant Date Fair Value Outstanding at August 30, 2015 9,233 $ 99.72 Granted 3,283 153.34 Vested and delivered (4,107 ) 102.34 Forfeited (47 ) 106.08 Outstanding at November 22, 2015 8,362 $ 119.45 The remaining unrecognized compensation cost related to non-vested RSUs at November 22, 2015 was $954 , and the weighted-average period over which this cost will be recognized is 1.9 years. Summary of Stock-Based Compensation The following table summarizes stock-based compensation expense and the related tax benefits under the Company’s plans: 12 Weeks Ended November 22, November 23, Stock-based compensation expense before income taxes $ 186 $ 150 Less recognized income tax benefit (63 ) (51 ) Stock-based compensation expense, net of income taxes $ 123 $ 99 |
Net Income per Common and Commo
Net Income per Common and Common Equivalent Share | 3 Months Ended |
Nov. 22, 2015 | |
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 effect on net income and the weighted average number of shares of potentially dilutive common shares outstanding (shares in 000’s): 12 Weeks Ended November 22, November 23, Net income available to common stockholders after assumed conversions of dilutive securities $ 480 $ 496 Weighted average number of common shares used in basic net income per common share 438,342 438,760 RSUs 3,033 3,429 Conversion of convertible notes 11 21 Weighted average number of common shares and dilutive potential of common stock used in diluted net income per share 441,386 442,210 Anti-dilutive RSUs 964 0 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Nov. 22, 2015 | |
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 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 reach a stage where they 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 an immaterial accrual with respect to one matter 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 our 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 the following matters, among others: Numerous putative class actions have been brought around the United States against motor fuel retailers, including the Company, alleging that they have been overcharging consumers by selling gasoline or diesel that is warmer than 60 degrees without adjusting the volume sold to compensate for heat-related expansion or disclosing the effect of such expansion on the energy equivalent received by the consumer. The Company is named in the following actions: Raphael Sagalyn, et al., v. Chevron USA, Inc., et al., Case No. 07-430 (D. Md.); Phyllis Lerner, et al., v. Costco Wholesale Corporation, et al., Case No. 07-1216 (C.D. Cal.); Linda A. Williams, et al., v. BP Corporation North America, Inc., et al., Case No. 07-179 (M.D. Ala.); James Graham, et al. v. Chevron USA, Inc., et al., Civil Action No. 07-193 (E.D. Va.); Betty A. Delgado, et al., v. Allsups, Convenience Stores, Inc., et al., Case No. 07-202 (D.N.M.); Gary Kohut, et al. v. Chevron USA, Inc., et al., Case No. 07-285 (D. Nev.); Mark Rushing, et al., v. Alon USA, Inc., et al., Case No. 06-7621 (N.D. Cal.); James Vanderbilt, et al., v. BP Corporation North America, Inc., et al., Case No. 06-1052 (W.D. Mo.); Zachary Wilson, et al., v. Ampride, Inc., et al., Case No. 06-2582 (D.Kan.); Diane Foster, et al., v. BP North America Petroleum, Inc., et al., Case No. 07-02059 (W.D. Tenn.); Mara Redstone, et al., v. Chevron USA, Inc., et al., Case No. 07-20751 (S.D. Fla.); Fred Aguirre, et al. v. BP West Coast Products LLC, et al., Case No. 07-1534 (N.D. Cal.); J.C. Wash, et al., v. Chevron USA, Inc., et al.; Case No. 4:07cv37 (E.D. Mo.); Jonathan Charles Conlin, et al., v. Chevron USA, Inc., et al.; Case No. 07 0317 (M.D. Tenn.); William Barker, et al. v. Chevron USA, Inc., et al.; Case No. 07-cv-00293 (D.N.M.); Melissa J. Couch, et al. v. BP Products North America, Inc., et al., Case No. 07cv291 (E.D. Tex.); S. Garrett Cook, Jr., et al., v. Hess Corporation, et al., Case No. 07cv750 (M.D. Ala.); Jeff Jenkins, et al. v. Amoco Oil Company, et al., Case No. 07-cv-00661 (D. Utah); and Mark Wyatt, et al., v. B. P. America Corp., et al., Case No. 07-1754 (S.D. Cal.). On June 18, 2007, the Judicial Panel on Multidistrict Litigation assigned the action, entitled In re Motor Fuel Temperature Sales Practices Litigation, MDL Docket No 1840, to Judge Kathryn Vratil in the United States District Court for the District of Kansas. On April 12, 2009, the Company agreed to settle the actions in which it is named as a defendant. Under the settlement, which was subject to final approval by the court, the Company agreed, to the extent allowed by law and subject to other terms and conditions in the agreement, to install over five years from the effective date of the settlement temperature-correcting dispensers in the States of Alabama, Arizona, California, Florida, Georgia, Kentucky, Nevada, New Mexico, North Carolina, South Carolina, Tennessee, Texas, Utah, and Virginia. Other than payments to class representatives, the settlement does not provide for cash payments to class members. On September 22, 2011, the court preliminarily approved a revised settlement, which did not materially alter the terms. On April 24, 2012, the court granted final approval of the revised settlement. A class member who objected has filed a notice of appeal from the order approving the settlement. Plaintiffs have moved for an award of $ 10 in attorneys’ fees, as well as an award of costs and payments to class representatives. The Company has opposed the motion. On March 20, 2014, the Company filed a notice invoking a “most favored nation” provision under the settlement, under which it seeks to adopt provisions in later settlements with certain other defendants, an invocation that class counsel opposed. The motion was denied on January 23, 2015. Final judgment was entered on September 22, 2015, and the Company has filed a notice of appeal. The Company received notices from most states stating that they have appointed an agent to conduct an examination of the books and records of the Company to determine whether it has complied with state unclaimed property laws. In addition to seeking the turnover of unclaimed property subject to escheat laws, the states may seek interest, penalties, costs of examinations, and other relief. Certain states have separately also made requests for payment by the Company concerning a specific type of property, some of which have been paid in immaterial amounts. The Company has received from the Drug Enforcement Administration subpoenas and administrative inspection warrants concerning the Company's fulfillment of prescriptions related to controlled substances and related practices. Offices of the United States Attorney in various districts have communicated to the Company their belief that the Company has committed civil regulatory violations concerning these subjects. The Company is seeking to cooperate with these processes and is holding discussions concerning a potential resolution. 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; 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. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Nov. 22, 2015 | |
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, U.K., Japan, Australia, and Spain and through majority-owned subsidiaries in Taiwan and Korea. 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 the same 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, 2015 , and Note 1 above. All material 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 are not allocated internally and generally come under the responsibility of the Company's U.S. management team. United States Operations Canadian Operations Other International Operations Total Twelve Weeks Ended November 22, 2015 Total revenue $ 19,846 $ 3,882 $ 3,492 $ 27,220 Operating income 451 183 133 767 Depreciation and amortization 204 25 42 271 Additions to property and equipment 457 41 217 715 Net property and equipment 11,078 1,391 3,398 15,867 Total assets 25,347 3,262 6,842 35,451 Twelve Weeks Ended November 23, 2014 Total revenue $ 19,181 $ 4,231 $ 3,454 $ 26,866 Operating income 433 196 141 770 Depreciation and amortization 188 28 38 254 Additions to property and equipment 436 46 73 555 Net property and equipment 10,301 1,627 2,870 14,798 Total assets 23,311 5,009 6,285 34,605 Year Ended August 30, 2015 Total revenue $ 84,351 $ 17,341 $ 14,507 $ 116,199 Operating income 2,308 771 545 3,624 Depreciation and amortization 848 119 160 1,127 Additions to property and equipment 1,574 148 671 2,393 Net property and equipment 10,815 1,381 3,205 15,401 Total assets 23,387 3,608 6,433 33,428 |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Nov. 22, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 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 and other consolidated entities have been eliminated in consolidation. The Company’s net income excludes income attributable to noncontrolling interests in Taiwan and Korea. 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, 2015 . |
Fiscal Year End | 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. References to the first quarters of 2016 and 2015 relate to the 12-week fiscal quarters ended November 22, 2015 , and November 23, 2014 , respectively. |
Use of Estimates | 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. Actual results could differ from those estimates and assumptions. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company accounts for certain assets and liabilities at fair value. The carrying value of the Company’s financial instruments, including cash and cash equivalents, receivables and accounts payable, approximate fair value due to their short-term nature or variable interest rates. See Notes 2, 3, and 4 for the carrying value and fair value of the Company’s investments, derivative instruments, and fixed-rate debt, respectively. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated by applying a fair value hierarchy, which requires maximizing the use of observable inputs when measuring fair value. The three levels of inputs are: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Significant unobservable inputs that are not corroborated by market data. The Company’s current financial liabilities have fair values that approximate their carrying values. The Company’s long-term financial liabilities consist of long-term debt, which is recorded on the balance sheet at issuance price and adjusted for any applicable unamortized discounts or premiums and debt issuance costs. There have been no material changes to the valuation techniques utilized in the fair value measurement of assets and liabilities as disclosed in the Company's 2015 Form 10-K. |
Merchandise Inventories | Merchandise Inventories Merchandise inventories are valued at the lower of cost or market, as determined primarily by the retail inventory method, and are stated using the last-in, first-out (LIFO) method for substantially all U.S. merchandise inventories. Merchandise inventories for all foreign operations are primarily valued by the retail inventory method and are stated using the first-in, first-out (FIFO) method. The Company believes the LIFO method more fairly presents the results of operations by more closely matching current costs with current revenues. The Company records an adjustment each quarter, if necessary, for the projected annual effect of inflation or deflation, and these estimates are adjusted to actual results determined at year-end, after actual inflation rates and inventory levels for the year have been determined. At November 22, 2015 , and August 30, 2015 , the cumulative impact of the LIFO valuation on merchandise inventories was $77 and $82 , respectively. |
Derivatives | Derivatives The Company is exposed to foreign-currency exchange-rate fluctuations in the normal course of business. It manages these fluctuations, in part, through the use of forward foreign-exchange contracts, seeking to economically hedge the impact of fluctuations of foreign exchange on known future expenditures denominated in a non-functional foreign-currency. The contracts relate primarily to U.S. dollar merchandise inventory expenditures made by the Company’s international subsidiaries, whose functional currency is not the U.S. dollar. Currently, these contracts do not qualify for derivative hedge accounting. The Company seeks to mitigate risk with the use of these contracts and does not intend to engage in speculative transactions. These contracts do not contain any credit-risk-related contingent features. The aggregate notional amounts of open, unsettled forward foreign-exchange contracts were $828 and $889 at November 22, 2015 , and August 30, 2015 , respectively. While the Company seeks to manage counterparty risk associated with these contracts by limiting transactions to counterparties with which the Company has an established banking relationship, there can be no assurance that this practice is effective. The contracts are limited to less than one year in duration. See Note 3 for information on the fair value of unsettled forward foreign-exchange contracts as of November 22, 2015 , and August 30, 2015 . The unrealized gains or losses recognized in interest income and other, net in the accompanying condensed consolidated statements of income relating to the net changes in the fair value of unsettled forward foreign-exchange contracts were immaterial for the first quarter of 2016 and a net gain of $23 for the first quarter of 2015 . The Company is exposed to fluctuations in prices for the energy it consumes, particularly electricity and natural gas, which it seeks to partially mitigate through the use of fixed-price contracts for certain of its warehouses and other facilities, primarily in the U.S. and Canada. The Company also enters into variable-priced contracts for some purchases of natural gas, in addition to fuel for its gas stations, on an index basis. These contracts meet the characteristics of derivative instruments, but generally qualify for the “normal purchases or normal sales” exception under authoritative guidance and thus require no mark-to-market adjustment. |
Foreign Currency | Foreign Currency The Company recognizes foreign-currency transaction gains and losses related to revaluing or settling monetary assets and liabilities denominated in currencies other than the functional currency in interest income and other, net in the accompanying condensed consolidated statements of income. Generally, this includes the U.S. dollar cash and cash equivalents and the U.S. dollar payables of consolidated subsidiaries revalued to their functional currency. Also included are realized foreign-currency gains or losses from settlements of forward foreign-exchange contracts. These items resulted in a net gain of $19 in the first quarter of 2016 and were immaterial in the first quarter of 2015 . |
Stock Repurchase Programs | Stock Repurchase Programs Repurchased shares of common stock are retired, in accordance with the Washington Business Corporation Act. The par value of repurchased shares is deducted from common stock and the excess repurchase price over par value is deducted by allocation to both additional paid-in capital and retained earnings. The amount allocated to additional paid-in capital is calculated as the current value of additional paid-in capital per share outstanding and is applied to the number of shares repurchased. Any remaining amount is allocated to retained earnings. See Note 5 for additional information. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In April 2014, the Financial Accounting Standards Board (FASB) issued guidance that changed the criteria for reporting discontinued operations, as well as requiring new disclosures regarding discontinued operations and disposals that do not qualify for discontinued operations reporting. This guidance became effective for fiscal years beginning after December 15, 2014. The Company adopted this guidance at the beginning of fiscal year 2016. Adoption did not have an impact on the Company’s condensed consolidated financial statements or disclosures. In April 2015, the FASB issued guidance to simplify the presentation of debt issuance costs by recording deferred debt issuance costs as a direct deduction from the carrying amount of the related debt liability. The new guidance is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years with early adoption permitted. The Company elected to early adopt the guidance at the beginning of its first quarter of fiscal year 2016. The Company reclassified deferred issuance costs from other assets to the respective debt liability on a retrospective basis. Adoption of this guidance and prior fiscal year reclassifications did not have a material impact on the Company's previously reported condensed and consolidated financial statements. |
Recent Accounting Pronouncements Not Yet Adopted | Recent Accounting Pronouncements Not Yet Adopted In May 2014, the FASB issued new guidance on the recognition of revenue from contracts with customers. The guidance converges the requirements for reporting revenue in addition to requiring disclosures sufficient to describe the nature, amount, timing, and uncertainty of revenue and cash flows arising from these contracts. Companies can transition to the standard either retrospectively or as a cumulative effect adjustment as of the date of adoption. The new standard is effective for fiscal years and interim periods within those years beginning after December 15, 2017. The Company plans to adopt this guidance at the beginning of its first quarter of fiscal year 2019. The Company is evaluating the impact of this standard on its condensed consolidated financial statements and disclosures. In November 2015, the FASB issued new guidance on the presentation of deferred tax assets and liabilities by jurisdiction, along with any related valuation allowance. The new guidance requires companies to classify all deferred tax assets and liabilities as noncurrent on the balance sheet. The new standard is effective for fiscal years and interim periods within those years beginning after December 15, 2016. Companies may early adopt the new standard at the beginning of an interim or annual period, either prospectively or retrospectively. The Company is evaluating the impact of this standard on its condensed consolidated financial statements and disclosures. |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Nov. 22, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Available for Sale and Held to Maturity Investments | The Company’s investments were as follows: November 22, 2015: Cost Basis Unrealized Gains, Net Recorded Basis Available-for-sale: Government and agency securities $ 1,091 $ 2 $ 1,093 Asset and mortgage-backed securities 4 0 4 Total available-for-sale 1,095 2 1,097 Held-to-maturity: Certificates of deposit 132 132 Total short-term investments $ 1,227 $ 2 $ 1,229 August 30, 2015: Cost Basis Unrealized Gains, Net Recorded Basis Available-for-sale: Government and agency securities $ 1,394 $ 4 $ 1,398 Asset and mortgage-backed securities 5 0 5 Total available-for-sale 1,399 4 1,403 Held-to-maturity: Certificates of deposit 215 215 Total short-term investments $ 1,614 $ 4 $ 1,618 |
Maturities of Available for Sale and Held to Maturity Securities | The maturities of available-for-sale and held-to-maturity securities at November 22, 2015 , were as follows: Available-For-Sale Held-To-Maturity Cost Basis Fair Value Due in one year or less $ 177 $ 177 $ 132 Due after one year through five years 858 859 0 Due after five years 60 61 0 $ 1,095 $ 1,097 $ 132 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 3 Months Ended |
Nov. 22, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities Measured on Recurring Basis | The tables below present information regarding the Company’s financial assets and financial liabilities that are measured at fair value on a recurring basis and indicate the level within the fair value hierarchy reflecting the valuation techniques utilized to determine fair value. November 22, 2015: Level 1 Level 2 Money market mutual funds (1) $ 619 $ 0 Investment in government and agency securities 0 1,093 Investment in asset and mortgage-backed securities 0 4 Forward foreign-exchange contracts, in asset position (2) 0 12 Forward foreign-exchange contracts, in (liability) position (2) 0 (2 ) Total $ 619 $ 1,107 August 30, 2015: Level 1 Level 2 Money market mutual funds (1) $ 306 $ 0 Investment in government and agency securities 0 1,398 Investment in asset and mortgage-backed securities 0 5 Forward foreign-exchange contracts, in asset position (2) 0 16 Forward foreign-exchange contracts, in (liability) position (2) 0 (4 ) Total $ 306 $ 1,415 _______________ (1) Included in cash and cash equivalents in the accompanying condensed consolidated balance sheets. (2) The asset and the liability values are included in deferred income taxes and other current assets and other current liabilities, respectively, in the accompanying condensed consolidated balance sheets. See Note 1 for additional information on derivative instruments. |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Nov. 22, 2015 | |
Debt Disclosure [Abstract] | |
Carrying Value and Estimated Fair Value of Company's Long-Term Debt | The carrying and estimated fair values of the Company’s long-term debt consisted of the following: November 22, 2015 August 30, 2015 Carrying Value Fair Value Carrying Value Fair Value 0.65% Senior Notes due December 2015 $ 1,200 $ 1,200 $ 1,200 $ 1,201 5.5% Senior Notes due March 2017 1,099 1,165 1,099 1,171 1.125% Senior Notes due December 2017 1,098 1,100 1,098 1,097 1.7% Senior Notes due December 2019 1,196 1,212 1,195 1,186 1.75% Senior Notes due February 2020 497 497 497 494 2.25% Senior Notes due February 2022 496 501 496 484 Other long-term debt 540 557 550 555 Total long-term debt 6,126 6,232 6,135 6,188 Less current portion 1,281 1,282 1,283 1,284 Long-term debt, excluding current portion $ 4,845 $ 4,950 $ 4,852 $ 4,904 |
Equity and Comprehensive Inco21
Equity and Comprehensive Income (Tables) | 3 Months Ended |
Nov. 22, 2015 | |
Equity [Abstract] | |
Stock Repurchased During Period | The Company's stock repurchase activity during the first quarter of 2016 and 2015 is summarized below: Shares Repurchased (000's) Average Price per Share Total Cost First quarter of 2016 898 $ 144.88 $ 130 First quarter of 2015 139 $ 126.43 $ 18 |
Components Of Equity And Comprehensive Income | The following tables show the changes in equity attributable to Costco and the noncontrolling interests of consolidated subsidiaries: Attributable to Costco Noncontrolling Interests Total Equity Equity at August 30, 2015 $ 10,617 $ 226 $ 10,843 Comprehensive income: Net income 480 7 487 Foreign-currency translation adjustment and other, net 16 (1 ) 15 Comprehensive income 496 6 502 Stock-based compensation 186 0 186 Release of vested restricted stock units (RSUs), including tax effects (145 ) 0 (145 ) Repurchases of common stock (130 ) 0 (130 ) Cash dividends declared (176 ) 0 (176 ) Equity at November 22, 2015 $ 10,848 $ 232 $ 11,080 Attributable to Costco Noncontrolling Interests Total Equity Equity at August 31, 2014 $ 12,303 $ 212 $ 12,515 Comprehensive income: Net income 496 9 505 Foreign-currency translation adjustment and other, net (312 ) (10 ) (322 ) Comprehensive income 184 (1 ) 183 Stock-based compensation 150 0 150 Stock options exercised, including tax effects 17 0 17 Release of vested RSUs, including tax effects (121 ) 0 (121 ) Repurchases of common stock (18 ) 0 (18 ) Cash dividends declared (156 ) 0 (156 ) Equity at November 23, 2014 $ 12,359 $ 211 $ 12,570 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 3 Months Ended |
Nov. 22, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of RSU Transactions | The following table summarizes RSU transactions during the first quarter of 2016 : Number of Units (in 000’s) Weighted-Average Grant Date Fair Value Outstanding at August 30, 2015 9,233 $ 99.72 Granted 3,283 153.34 Vested and delivered (4,107 ) 102.34 Forfeited (47 ) 106.08 Outstanding at November 22, 2015 8,362 $ 119.45 |
Summary of Stock-Based Compensation Expense and Related Tax Benefits | The following table summarizes stock-based compensation expense and the related tax benefits under the Company’s plans: 12 Weeks Ended November 22, November 23, Stock-based compensation expense before income taxes $ 186 $ 150 Less recognized income tax benefit (63 ) (51 ) Stock-based compensation expense, net of income taxes $ 123 $ 99 |
Net Income per Common and Com23
Net Income per Common and Common Equivalent Share (Tables) | 3 Months Ended |
Nov. 22, 2015 | |
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 effect on net income and the weighted average number of shares of potentially dilutive common shares outstanding (shares in 000’s): 12 Weeks Ended November 22, November 23, Net income available to common stockholders after assumed conversions of dilutive securities $ 480 $ 496 Weighted average number of common shares used in basic net income per common share 438,342 438,760 RSUs 3,033 3,429 Conversion of convertible notes 11 21 Weighted average number of common shares and dilutive potential of common stock used in diluted net income per share 441,386 442,210 Anti-dilutive RSUs 964 0 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Nov. 22, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting Information, by Segment | 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 are not allocated internally and generally come under the responsibility of the Company's U.S. management team. United States Operations Canadian Operations Other International Operations Total Twelve Weeks Ended November 22, 2015 Total revenue $ 19,846 $ 3,882 $ 3,492 $ 27,220 Operating income 451 183 133 767 Depreciation and amortization 204 25 42 271 Additions to property and equipment 457 41 217 715 Net property and equipment 11,078 1,391 3,398 15,867 Total assets 25,347 3,262 6,842 35,451 Twelve Weeks Ended November 23, 2014 Total revenue $ 19,181 $ 4,231 $ 3,454 $ 26,866 Operating income 433 196 141 770 Depreciation and amortization 188 28 38 254 Additions to property and equipment 436 46 73 555 Net property and equipment 10,301 1,627 2,870 14,798 Total assets 23,311 5,009 6,285 34,605 Year Ended August 30, 2015 Total revenue $ 84,351 $ 17,341 $ 14,507 $ 116,199 Operating income 2,308 771 545 3,624 Depreciation and amortization 848 119 160 1,127 Additions to property and equipment 1,574 148 671 2,393 Net property and equipment 10,815 1,381 3,205 15,401 Total assets 23,387 3,608 6,433 33,428 |
Summary of Significant Accoun25
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions | 3 Months Ended | ||
Nov. 22, 2015USD ($)warehousestates | Nov. 23, 2014USD ($) | Aug. 30, 2015USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||
Number of warehouses operated | 697 | ||
Inventory LIFO reserve cumulative impact | $ | $ 77 | $ 82 | |
Gain (loss) on foreign currency derivative instruments not designated as hedging instruments | $ | $ 23 | ||
Foreign currency transaction gain (loss), before tax | $ | 19 | ||
Forward foreign exchange contracts | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Notional amount of forward foreign - exchange derivative | $ | $ 828 | $ 889 | |
UNITED STATES | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of warehouses operated | 487 | ||
Number of states in country | states | 43 | ||
CANADA | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of warehouses operated | 90 | ||
MEXICO | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of warehouses operated | 36 | ||
UNITED KINGDOM | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of warehouses operated | 27 | ||
JAPAN | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of warehouses operated | 24 | ||
KOREA, REPUBLIC OF | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of warehouses operated | 12 | ||
TAIWAN, PROVINCE OF CHINA | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of warehouses operated | 11 | ||
AUSTRALIA | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of warehouses operated | 8 | ||
SPAIN | |||
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 | Nov. 22, 2015 | Aug. 30, 2015 |
Available For Sale And Held To Maturity [Line Items] | ||
Available-for-sale, cost basis, total | $ 1,095 | |
Available-for-sale, recorded basis | 1,097 | |
Held-to-maturity, cost basis | 132 | |
Total investments, recorded basis | 1,229 | $ 1,618 |
Short-term investments | ||
Available For Sale And Held To Maturity [Line Items] | ||
Unrealized gains, net | 2 | 4 |
Total investments, cost basis, total | 1,227 | 1,614 |
Total investments, recorded basis | 1,229 | 1,618 |
Short-term investments | Available-for-sale securities | ||
Available For Sale And Held To Maturity [Line Items] | ||
Available-for-sale, cost basis, total | 1,095 | 1,399 |
Unrealized gains, net | 2 | 4 |
Available-for-sale, recorded basis | 1,097 | 1,403 |
Short-term investments | Available-for-sale securities | Government and agency securities | ||
Available For Sale And Held To Maturity [Line Items] | ||
Available-for-sale, cost basis, total | 1,091 | 1,394 |
Unrealized gains, net | 2 | 4 |
Available-for-sale, recorded basis | 1,093 | 1,398 |
Short-term investments | Available-for-sale securities | Asset-backed securities | ||
Available For Sale And Held To Maturity [Line Items] | ||
Available-for-sale, cost basis, total | 4 | 5 |
Unrealized gains, net | 0 | 0 |
Available-for-sale, recorded basis | 4 | 5 |
Short-term investments | Held-to-maturity securities | Certificates of deposit | ||
Available For Sale And Held To Maturity [Line Items] | ||
Held-to-maturity, cost basis | 132 | 215 |
Held-to-maturity, recorded basis | $ 132 | $ 215 |
Investments - Proceeds from Sal
Investments - Proceeds from Sales of Available for Sale Securities (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Nov. 22, 2015 | Nov. 23, 2014 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds | $ 50 | $ 17 |
Investments - Maturities of Ava
Investments - Maturities of Available for Sale and Held to Maturity Securities (Details) $ in Millions | Nov. 22, 2015USD ($) |
Available-For-Sale, Cost Basis | |
Due in one year or less | $ 177 |
Due after one year through five years | 858 |
Due after five years | 60 |
Available-for-sale, cost basis, total | 1,095 |
Available-For-Sale, Fair Value | |
Due in one year or less | 177 |
Due after one year through five years | 859 |
Due after five years | 61 |
Available-for-sale, recorded basis, total | 1,097 |
Held-To-Maturity | |
Due in one year or less | 132 |
Due after one year through five years | 0 |
Due after five years | 0 |
Held-to-maturity, cost basis, total | $ 132 |
Fair Value Measurement - Fair V
Fair Value Measurement - Fair Value of Financial Assets and Financial Liabilities Measured on Recurring Basis (Details) - Fair value, measurements, recurring - USD ($) $ in Millions | Nov. 22, 2015 | Aug. 30, 2015 | |
Fair value, inputs, level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value of assets measured on recurring basis | $ 619 | $ 306 | |
Fair value, inputs, level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value of assets measured on recurring basis | 1,107 | 1,415 | |
Money market funds | Fair value, inputs, level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value of assets measured on recurring basis | [1] | 619 | 306 |
Money market funds | Fair value, inputs, level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value of assets measured on recurring basis | [1] | 0 | 0 |
Government and agency securities | Fair value, inputs, level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value of assets measured on recurring basis | 0 | 0 | |
Government and agency securities | Fair value, inputs, level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value of assets measured on recurring basis | 1,093 | 1,398 | |
Asset-backed securities | Fair value, inputs, level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value of assets measured on recurring basis | 0 | 0 | |
Asset-backed securities | Fair value, inputs, level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value of assets measured on recurring basis | 4 | 5 | |
Forward foreign exchange contracts | Fair value, inputs, level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value of assets measured on recurring basis | [2] | 0 | 0 |
Fair value of liabilities measured on recurring basis | [2] | 0 | 0 |
Forward foreign exchange contracts | Fair value, inputs, level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value of assets measured on recurring basis | [2] | 12 | 16 |
Fair value of liabilities measured on recurring basis | [2] | $ (2) | $ (4) |
[1] | Included in cash and cash equivalents in the accompanying condensed consolidated balance sheets. | ||
[2] | The asset and the liability values are included in deferred income taxes and other current assets and other current liabilities, respectively, in the accompanying condensed consolidated balance sheets. See Note 1 for additional information on derivative instruments. |
Debt (Carrying Value and Estima
Debt (Carrying Value and Estimated Fair Value of Company's Long Term Debt) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Nov. 22, 2015 | Aug. 30, 2015 | |
Debt Instrument [Line Items] | ||
Total long-term debt, carrying value | $ 6,126 | $ 6,135 |
Less current portion, carrying value | 1,281 | 1,283 |
Long-term debt, excluding current maturities | 4,845 | 4,852 |
Total long-term debt, fair value | 6,232 | 6,188 |
Less current portion, fair value | 1,282 | 1,284 |
Long-term debt, excluding current portion, fair value | $ 4,950 | 4,904 |
0.65% Senior Notes due December 2015 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 0.65% | |
Debt instrument, maturity date | Dec. 7, 2015 | |
Total long-term debt, carrying value | $ 1,200 | 1,200 |
Total long-term debt, fair value | $ 1,200 | 1,201 |
5.5% Senior Notes due March 2017 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 5.50% | |
Debt instrument, maturity date | Mar. 15, 2017 | |
Total long-term debt, carrying value | $ 1,099 | 1,099 |
Total long-term debt, fair value | $ 1,165 | 1,171 |
1.125% Senior Notes due December 2017 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 1.125% | |
Debt instrument, maturity date | Dec. 15, 2017 | |
Total long-term debt, carrying value | $ 1,098 | 1,098 |
Total long-term debt, fair value | $ 1,100 | 1,097 |
1.7% Senior Notes due December 2019 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 1.70% | |
Debt instrument, maturity date | Dec. 15, 2019 | |
Total long-term debt, carrying value | $ 1,196 | 1,195 |
Total long-term debt, fair value | $ 1,212 | 1,186 |
1.75% Senior Notes due February 2020 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 1.75% | |
Debt instrument, maturity date | Feb. 15, 2020 | |
Total long-term debt, carrying value | $ 497 | 497 |
Total long-term debt, fair value | $ 497 | 494 |
2.25% Senior Notes due February 2022 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 2.25% | |
Debt instrument, maturity date | Feb. 15, 2022 | |
Total long-term debt, carrying value | $ 496 | 496 |
Total long-term debt, fair value | 501 | 484 |
Other long-term debt | ||
Debt Instrument [Line Items] | ||
Total long-term debt, carrying value | 540 | 550 |
Total long-term debt, fair value | $ 557 | $ 555 |
Equity and Comprehensive Inco31
Equity and Comprehensive Income - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Nov. 22, 2015 | Nov. 23, 2014 | |
Equity [Abstract] | ||
Dividends declared | $ 0.40 | $ 0.355 |
Stock repurchase program, remaining authorized repurchase amount | $ 3,569 |
Changes in Equity Attributes to
Changes in Equity Attributes to Costco and the Noncontrolling Interests of Consolidated Subsidiaries (Details) - USD ($) $ in Millions | 3 Months Ended | |
Nov. 22, 2015 | Nov. 23, 2014 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Equity at beginning of period | $ 10,843 | $ 12,515 |
Comprehensive income: | ||
Net income | 487 | 505 |
Foreign-currency translation adjustment and other, net | 15 | (322) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO COSTCO | 496 | 184 |
Comprehensive income | 502 | 183 |
Comprehensive income (loss), net of tax, attributable to noncontrolling interest | 6 | (1) |
Stock-based compensation | 186 | 150 |
Stock options exercised, including tax effects | 17 | |
Release of vested restricted stock units (RSUs), including tax effects | (145) | (121) |
Repurchases of common stock | (130) | (18) |
Cash dividends declared | (176) | (156) |
Equity at end of period | 11,080 | 12,570 |
Attributable to Costco | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Equity at beginning of period | 10,617 | 12,303 |
Comprehensive income: | ||
Net income | 480 | 496 |
Foreign-currency translation adjustment and other, net | 16 | (312) |
Stock-based compensation | 186 | 150 |
Stock options exercised, including tax effects | 17 | |
Release of vested restricted stock units (RSUs), including tax effects | (145) | (121) |
Repurchases of common stock | (130) | (18) |
Cash dividends declared | (176) | (156) |
Equity at end of period | 10,848 | 12,359 |
Noncontrolling Interests | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Equity at beginning of period | 226 | 212 |
Comprehensive income: | ||
Net income | 7 | 9 |
Foreign-currency translation adjustment and other, net | (1) | (10) |
Equity at end of period | $ 232 | $ 211 |
Stockholders' Equity (Stock Rep
Stockholders' Equity (Stock Repurchased During Period) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Nov. 22, 2015 | Nov. 23, 2014 | |
Equity [Abstract] | ||
Shares repurchased (000's) | 898 | 139 |
Average price per share | $ 144.88 | $ 126.43 |
Total cost | $ 130 | $ 18 |
Stock-Based Compensation Plan34
Stock-Based Compensation Plans - Additional Information (Detail) $ in Millions | 3 Months Ended |
Nov. 22, 2015USD ($)shares | |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Additional number of shares authorized | 13,429,000 |
Number of shares available to be granted as RSUs | 14,836,000 |
Time-based RSUs awards outstanding | 8,150,000 |
Performance-based RSUs awards outstanding | 212,000 |
Outstanding performance-based RSUs awards to be granted | 236,000 |
Unrecognized compensation cost | $ | $ 954 |
Weighted-average recognition period | 1 year 10 months 24 days |
Seventh Restated 2002 Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Additional number of shares authorized | 23,500,000 |
Stock-Based Compensation Plan35
Stock-Based Compensation Plans - Summary of RSU Transactions (Details) shares in Thousands | 3 Months Ended |
Nov. 22, 2015$ / sharesshares | |
Number of units | |
Outstanding at August 30, 2015 | shares | 9,233 |
Granted | shares | 3,283 |
Vested and delivered | shares | (4,107) |
Forfeited | shares | (47) |
Outstanding at November 22, 2015 | shares | 8,362 |
Weighted average grant date fair value | |
Outstanding at August 30, 2015 | $ / shares | $ 99.72 |
Granted | $ / shares | 153.34 |
Vested and delivered | $ / shares | 102.34 |
Forfeited | $ / shares | 106.08 |
Outstanding at November 22, 2015 | $ / shares | $ 119.45 |
Stock-Based Compensation Plan36
Stock-Based Compensation Plans - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Nov. 22, 2015 | Nov. 23, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Total stock-based compensation expense before income taxes | $ 186 | $ 150 |
Less recognized income tax benefit | (63) | (51) |
Total stock-based compensation expense, net of income taxes | $ 123 | $ 99 |
Net Income per Common and Com37
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 | |
Nov. 22, 2015 | Nov. 23, 2014 | |
Earnings Per Share [Abstract] | ||
Net income available to common stockholders after assumed conversion of dilutive securities | $ 480 | $ 496 |
Weighted average number of common shares used in basic net income per common share | 438,342 | 438,760 |
RSUs | 3,033 | 3,429 |
Conversion of convertible notes | 11 | 21 |
Weighted average number of common shares and dilutive potential of common stock used in diluted net income per share | 441,386 | 442,210 |
Anti-dilutive RSUs | 964 | 0 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 3 Months Ended |
Nov. 22, 2015USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Damages sought | $ 10 |
Segment Reporting Information b
Segment Reporting Information by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Nov. 22, 2015 | Nov. 23, 2014 | Aug. 30, 2015 | |
Segment Reporting Information [Line Items] | |||
Total revenue | $ 27,220 | $ 26,866 | $ 116,199 |
Operating income | 767 | 770 | 3,624 |
Depreciation and amortization | 271 | 254 | 1,127 |
Additions to property and equipment | 715 | 555 | 2,393 |
Net property and equipment | 15,867 | 14,798 | 15,401 |
Total assets | 35,451 | 34,605 | 33,428 |
Operating Segments [Member] | United States Operations | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 19,846 | 19,181 | 84,351 |
Operating income | 451 | 433 | 2,308 |
Depreciation and amortization | 204 | 188 | 848 |
Additions to property and equipment | 457 | 436 | 1,574 |
Net property and equipment | 11,078 | 10,301 | 10,815 |
Total assets | 25,347 | 23,311 | 23,387 |
Operating Segments [Member] | Canadian Operations | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 3,882 | 4,231 | 17,341 |
Operating income | 183 | 196 | 771 |
Depreciation and amortization | 25 | 28 | 119 |
Additions to property and equipment | 41 | 46 | 148 |
Net property and equipment | 1,391 | 1,627 | 1,381 |
Total assets | 3,262 | 5,009 | 3,608 |
Operating Segments [Member] | Other International Operations | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 3,492 | 3,454 | 14,507 |
Operating income | 133 | 141 | 545 |
Depreciation and amortization | 42 | 38 | 160 |
Additions to property and equipment | 217 | 73 | 671 |
Net property and equipment | 3,398 | 2,870 | 3,205 |
Total assets | $ 6,842 | $ 6,285 | $ 6,433 |