Costco Wholesale (COST) 10-Q 15 Mar 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Feb. 18, 2018	Mar. 07, 2018
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Feb. 18, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Trading Symbol	COST
Entity Registrant Name	COSTCO WHOLESALE CORP /NEW
Entity Central Index Key	909,832
Current Fiscal Year End Date	--09-02
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		438,820,272

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Feb. 18, 2018	Sep. 03, 2017
CURRENT ASSETS
Cash and cash equivalents	$ 4,781,000,000	$ 4,546,000,000
Short-term investments	1,049,000,000	1,233,000,000
Receivables, net	2,001,000,000	1,432,000,000
Merchandise inventories	10,671,000,000	9,834,000,000
Other current assets	397,000,000	272,000,000
Total current assets	18,899,000,000	17,317,000,000
PROPERTY AND EQUIPMENT
Land	6,129,000,000	5,690,000,000
Buildings and improvements	15,740,000,000	15,127,000,000
Equipment and fixtures	7,025,000,000	6,681,000,000
Construction in progress	909,000,000	843,000,000
Gross property and equipment	29,803,000,000	28,341,000,000
Less accumulated depreciation and amortization	(10,754,000,000)	(10,180,000,000)
Net property and equipment	19,049,000,000	18,161,000,000
OTHER ASSETS	755,000,000	869,000,000
TOTAL ASSETS	38,703,000,000	36,347,000,000
CURRENT LIABILITIES
Accounts payable	10,061,000,000	9,608,000,000
Accrued salaries and benefits	2,997,000,000	2,703,000,000
Accrued member rewards	1,023,000,000	961,000,000
Deferred membership fees	1,656,000,000	1,498,000,000
Other current liabilities	3,176,000,000	2,725,000,000
Total current liabilities	18,913,000,000	17,495,000,000
LONG-TERM DEBT, excluding current portion	6,505,000,000	6,573,000,000
OTHER LIABILITIES	1,232,000,000	1,200,000,000
Total liabilities	26,650,000,000	25,268,000,000
COMMITMENTS AND CONTINGENCIES
EQUITY
Preferred stock $.01 par value; 100,000,000 shares authorized; no shares issued and outstanding	0	0
Common stock $.01 par value; 900,000,000 shares authorized; 438,883,000 and 437,204,000 shares issued and outstanding	4,000,000	4,000,000
Additional paid-in capital	5,920,000,000	5,800,000,000
Accumulated other comprehensive loss	(897,000,000)	(1,014,000,000)
Retained earnings	6,727,000,000	5,988,000,000
Total Costco stockholders' equity	11,754,000,000	10,778,000,000
Noncontrolling interests	299,000,000	301,000,000
Total equity	12,053,000,000	11,079,000,000
TOTAL LIABILITIES AND EQUITY	$ 38,703,000,000	$ 36,347,000,000

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Feb. 18, 2018	Sep. 03, 2017
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	100,000,000	100,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	900,000,000	900,000,000
Common stock, shares issued	438,883,000	437,204,000
Common stock, shares outstanding	438,883,000	437,204,000

Condensed Consolidated Statemen

Condensed Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Millions	3 Months Ended		6 Months Ended
	Feb. 18, 2018	Feb. 12, 2017	Feb. 18, 2018	Feb. 12, 2017
REVENUE
Net sales	$ 32,279	$ 29,130	$ 63,396	$ 56,599
Membership fees	716	636	1,408	1,266
Total revenue	32,995	29,766	64,804	57,865
OPERATING EXPENSES
Merchandise costs	28,733	25,927	56,350	50,215
Selling, general and administrative	3,234	2,980	6,458	5,920
Preopening expenses	12	15	29	37
Operating income	1,016	844	1,967	1,693
OTHER INCOME (EXPENSE)
Interest expense	(37)	(31)	(74)	(60)
Interest income and other, net	7	(4)	29	22
INCOME BEFORE INCOME TAXES	986	809	1,922	1,655
Provision for income taxes	273	288	558	579
Net income including noncontrolling interests	713	521	1,364	1,076
Net income attributable to noncontrolling interests	(12)	(6)	(23)	(16)
NET INCOME ATTRIBUTABLE TO COSTCO	$ 701	$ 515	$ 1,341	$ 1,060
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:
Basic (in dollars per share)	$ 1.60	$ 1.17	$ 3.06	$ 2.42
Diluted (in dollars per share)	$ 1.59	$ 1.17	$ 3.04	$ 2.41
Shares used in calculation (000's)
Basic (shares)	439,022	439,127	438,494	438,567
Diluted (shares)	441,568	440,657	441,201	440,568
CASH DIVIDENDS DECLARED PER COMMON SHARE	$ 0.50	$ 0.45	$ 1	$ 0.90

Condensed Consolidated Stateme5

Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Feb. 18, 2018	Feb. 12, 2017	Feb. 18, 2018	Feb. 12, 2017
Statement of Comprehensive Income [Abstract]
NET INCOME INCLUDING NONCONTROLLING INTERESTS	$ 713	$ 521	$ 1,364	$ 1,076
Foreign-currency translation adjustment and other, net	150	114	127	(231)
Comprehensive income	863	635	1,491	845
Less: Comprehensive income attributable to noncontrolling interests	22	14	33	19
COMPREHENSIVE INCOME ATTRIBUTABLE TO COSTCO	$ 841	$ 621	$ 1,458	$ 826

Condensed Consolidated Stateme6

Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Feb. 18, 2018	Feb. 12, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net income including noncontrolling interests	$ 1,364	$ 1,076
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities:
Depreciation and amortization	679	609
Stock-based compensation	346	322
Other non-cash operating activities, net	10	(49)
Deferred income taxes	(64)	45
Changes in operating assets and liabilities:
Merchandise inventories	(802)	(735)
Accounts payable	486	1,579
Other operating assets and liabilities, net	96	439
Net cash provided by operating activities	2,115	3,286
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of short-term investments	(407)	(625)
Maturities and sales of short-term investments	588	734
Additions to property and equipment	(1,328)	(1,183)
Other investing activities, net	(11)	22
Net cash used in investing activities	(1,158)	(1,052)
CASH FLOWS FROM FINANCING ACTIVITIES
Change in bank checks outstanding	(33)	(272)
Repayments of long-term debt	(58)	0
Tax withholdings on stock-based awards	(216)	(201)
Repurchases of common stock	(184)	(190)
Cash dividend payments	(220)	(198)
Other financing activities, net	(37)	36
Net cash used in financing activities	(748)	(825)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	26	(44)
Net change in cash and cash equivalents	235	1,365
CASH AND CASH EQUIVALENTS BEGINNING OF YEAR	4,546	3,379
CASH AND CASH EQUIVALENTS END OF PERIOD	4,781	4,744
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest (reduced by $7 and $8 for interest capitalized in 2018 and 2017, respectively)	78	54
Income taxes, net	661	458
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES:
Cash dividend declared, but not yet paid	$ 219	$ 198

Condensed Consolidated Stateme7

Condensed Consolidated Statements Of Cash Flows (Parenthetical) - USD ($) $ in Millions	6 Months Ended
	Feb. 18, 2018	Feb. 12, 2017
Statement of Cash Flows [Abstract]
Interest capitalized	$ 7	$ 8

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Feb. 18, 2018
Accounting Policies [Abstract]
Summary of Significant Policies	Description of Business Costco Wholesale Corporation (Costco or the Company), a Washington corporation, and its subsidiaries operate membership warehouses and ecommerce websites based on the concept that offering its members low prices on a limited selection of nationally branded and private-label merchandise in a wide range of categories will produce high sales volumes and rapid inventory turnover. At February 18, 2018 , Costco operated 747 warehouses worldwide: 519 United States (U.S.) locations (in 44 states, Washington, D.C., and Puerto Rico), 98 Canada locations, 37 Mexico locations, 28 United Kingdom (U.K.) locations, 26 Japan locations, 13 Korea locations, 13 Taiwan locations, nine Australia locations, two Spain locations, one Iceland location, and one France location. The Company operates e-commerce websites in the U.S., Canada, Mexico, U.K., Korea, and Taiwan. Basis of Presentation The condensed consolidated financial statements include the accounts of Costco, its wholly-owned subsidiaries, and subsidiaries in which it has a controlling interest. The Company reports noncontrolling interests in consolidated entities as a component of equity separate from the Company’s equity. All material inter-company transactions between and among the Company and its consolidated subsidiaries have been eliminated in consolidation. The Company’s net income excludes income attributable to noncontrolling interests in its operations in Taiwan. During the first quarter of 2018 , Costco purchased its former joint venture partner's remaining equity interest in its Korean operations. 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 September 3, 2017 . Fiscal Year End The Company operates on a 52/53 week fiscal year basis, with the fiscal year ending on the Sunday closest to August 31. Fiscal 2018 is a 52-week year ending on September 2, 2018 . References to the second quarters of 2018 and 2017 relate to the 12-week fiscal quarters ended February 18, 2018 , and February 12, 2017 , respectively. References to the first half of 2018 and 2017 relate to the twenty-four weeks ended February 18, 2018 , and February 12, 2017 , 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, 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 and events 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. Current financial liabilities have fair values that approximate their carrying values. Long-term financial liabilities include the Company's long-term debt, which are recorded on the balance sheet at issuance price and adjusted for unamortized discounts or premiums and debt issuance costs, which are being amortized to interest expense over the term of the loan. 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 2017 Form 10-K. Merchandise Inventories Merchandise inventories are stated at the lower of cost or market. U.S. merchandise inventories are valued by the cost method of accounting, using the last-in, first-out (LIFO) basis. 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 adjustments quarterly, if necessary, for the projected annual effect of inflation or deflation, and these estimates are adjusted to actual results determined at fiscal year-end, after actual inflation rates and inventory levels have been determined. Canadian and Other International merchandise inventories are predominantly valued using the cost and retail inventory methods, respectively, using the first-in, first-out (FIFO) basis. As of February 18, 2018 , and September 3, 2017 , U.S. merchandise inventories valued at LIFO approximated FIFO after considering the lower of cost or market principle. 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. 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. Some of these contracts contain credit-risk-related contingent features that require settlement of outstanding contracts upon certain triggering events. At February 18, 2018 , and September 3, 2017 , both the aggregate fair value amounts of derivative instruments in a net liability position and the amount needed to settle the instruments immediately if the credit-risk-related contingent features were triggered were immaterial. The aggregate notional amounts of unsettled forward foreign-exchange contracts were $737 and $637 at February 18, 2018 , and September 3, 2017 , respectively. 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 February 18, 2018 , and September 3, 2017 . 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 in the second quarter of 2018 and a net loss of $29 in the second quarter of 2017 . The net changes in fair value of unsettled forward foreign-exchange contracts during the first half of 2018 and 2017 were immaterial. 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 and 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 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, these include 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. The net impact of these items was immaterial in the second quarter and first half of 2018 and 2017 . 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 additional paid-in capital and retained earnings. The amount allocated to additional paid-in capital is 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. Recent Accounting Pronouncements Adopted In March 2016, the Financial Accounting Standards Board (FASB) issued guidance intended to simplify accounting for share-based payment transactions. The guidance relates to income taxes, forfeitures, and minimum statutory tax withholding requirements. The new standard was effective for fiscal years and interim periods within those years beginning after December 15, 2016, with early adoption permitted. The Company adopted this guidance at the beginning of its first quarter of fiscal year 2018. As a result, in the first half of 2018 the Company recognized an excess tax benefit of $33 as part of its income tax provision in the accompanying condensed consolidated statements of income. This includes the permanent reduction in the U.S. statutory corporate tax rate. Previously these amounts were reflected in equity. Additionally, these amounts are now reflected as cash flows from operations instead of cash flows from financing activities in the consolidated statements of cash flows on a prospective basis. Adoption of this guidance did not have a material impact on the consolidated balance sheets, consolidated statements of cash flows, or related disclosures. Recent Accounting Pronouncements Not Yet Adopted In May 2014, the FASB issued guidance on the recognition of revenue from contracts with customers. The guidance converges the requirements for reporting revenue and requires disclosures sufficient to describe the nature, amount, timing, and uncertainty of revenue and cash flows. Transition is permitted 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. While its review is continuing, based on preliminary assessments, the Company believes the guidance will accelerate recognition of cash-card breakage income to reflect the historical pattern of gift card redemption as compared to the current methodology of recognizing income when redemption is considered remote. The Company will also record, on a gross basis, a refund liability and an asset for recovery. Currently, these amounts are recorded as a net refund liability. The Company continues to evaluate various areas such as gross versus net revenue presentation for certain contracts, identification and treatment of performance obligations associated with membership offers, accounting for warranty arrangements, and its adoption methodology. In February 2016, the FASB issued guidance on leases, which will require recognition on the balance sheet for the rights and obligations created by leases with terms greater than twelve months. The standard is effective for fiscal years and interim periods within those years beginning after December 15, 2018, with early adoption permitted. The Company plans to adopt this guidance at the beginning of its first quarter of fiscal year 2020. While the Company continues to evaluate this standard and the effect on related disclosures, the primary effect of adoption will be to require recording right-of-use assets and corresponding lease obligations for current operating leases. The adoption is expected to have a material impact on the Company's consolidated balance sheets, but not on the consolidated statements of income or consolidated statements of cash flows.

Investments

Investments	6 Months Ended
	Feb. 18, 2018
Investments, Debt and Equity Securities [Abstract]
Investments	The Company's major investments have not materially changed from the annual reporting period ended September 3, 2017 . The Company’s investments were as follows: February 18, 2018: Cost Basis Unrealized Loss, Net Recorded Basis Available-for-sale: Government and agency securities $ 951 $ (14 ) $ 937 Held-to-maturity: Certificates of deposit 112 112 Total short-term investments $ 1,063 $ (14 ) $ 1,049 September 3, 2017: Cost Basis Unrealized Gains, Net Recorded Basis Available-for-sale: Government and agency securities $ 947 $ 0 $ 947 Mortgage-backed securities 1 0 1 Total available-for-sale 948 0 948 Held-to-maturity: Certificates of deposit 285 285 Total short-term investments $ 1,233 $ 0 $ 1,233 At February 18, 2018 , and September 3, 2017 , available-for-sale securities with continuous unrealized-loss positions were immaterial. The proceeds from sales of available-for-sale securities were immaterial during the second quarter of 2018 and $34 during the second quarter of 2017 . The proceeds from sales of available-for-sale securities were $39 and $66 during the first half of 2018 and 2017 , respectively. Gross realized gains or losses from sales of available-for-sale securities during the second quarter and first half of 2018 and 2017 were immaterial. The maturities of available-for-sale and held-to-maturity securities at February 18, 2018 , were as follows: Available-For-Sale Held-To-Maturity Cost Basis Fair Value Due in one year or less $ 188 $ 188 $ 112 Due after one year through five years 727 714 0 Due after five years 36 35 0 Total $ 951 $ 937 $ 112

Fair Value Measurement

Fair Value Measurement	6 Months Ended
	Feb. 18, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurement	Assets and Liabilities Measured at Fair Value on a Recurring Basis The tables below present information regarding financial assets and financial liabilities that are measured at fair value on a recurring basis and indicate the level within the hierarchy reflecting the valuation techniques utilized to determine fair value. February 18, 2018: Level 1 Level 2 Money market mutual funds (1) $ 10 $ 0 Investment in government and agency securities 0 937 Forward foreign-exchange contracts, in asset position (2) 0 2 Forward foreign-exchange contracts, in (liability) position (2) 0 (20 ) Total $ 10 $ 919 September 3, 2017: Level 1 Level 2 Money market mutual funds (1) $ 7 $ 0 Investment in government and agency securities 0 947 Investment in mortgage-backed securities 0 1 Forward foreign-exchange contracts, in asset position (2) 0 2 Forward foreign-exchange contracts, in (liability) position (2) 0 (8 ) Total $ 7 $ 942 _______________ (1) Included in cash and cash equivalents in the accompanying condensed consolidated balance sheets. (2) The asset and the liability values are included in other current assets and other current liabilities, respectively, in the accompanying condensed consolidated balance sheets. See Note 1 for additional information on derivative instruments. During and at the periods ended February 18, 2018 , and September 3, 2017 , the Company did not hold any Level 3 financial assets or liabilities that were measured at fair value on a recurring basis. There were no transfers in or out of Level 1 or 2 during the second quarter or first half of 2018 or 2017 . Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Assets and liabilities recognized and disclosed at fair value on a nonrecurring basis include items such as financial assets recorded at amortized cost and long-lived nonfinancial assets. These assets are measured at fair value if determined to be impaired. There were no fair value adjustments to these items during the second quarter or first half of 2018 or 2017 .

Debt

Debt	6 Months Ended
	Feb. 18, 2018
Debt Disclosure [Abstract]
Debt	The carrying value of the Company’s long-term debt consisted of the following: February 18, 2018 September 3, 2017 1.70% Senior Notes due December 2019 $ 1,198 $ 1,198 1.75% Senior Notes due February 2020 499 498 2.15% Senior Notes due May 2021 995 994 2.25% Senior Notes due February 2022 497 497 2.30% Senior Notes due May 2022 794 793 2.75% Senior Notes due May 2024 991 991 3.00% Senior Notes due May 2027 986 986 Other long-term debt 667 702 Total long-term debt 6,627 6,659 Less current portion 122 86 Long-term debt, excluding current portion $ 6,505 $ 6,573 The estimated fair value of Senior Notes is valued using Level 2 inputs. Other long-term debt consists primarily of promissory notes and term loans issued by the Company's Japan subsidiary and are valued primarily using Level 3 inputs. The fair value of the Company's long-term debt, including the current portion, was approximately $6,562 and $6,753 at February 18, 2018 , and September 3, 2017 , respectively.

Equity and Comprehensive Income

Equity and Comprehensive Income	6 Months Ended
	Feb. 18, 2018
Equity [Abstract]
Equity and Comprehensive Income	Dividends The Company’s current quarterly dividend rate is $0.50 per share, compared to $0.45 per share in the second quarter of 2017 . On January 30, 2018 , the Board of Directors declared a quarterly cash dividend in the amount of $0.50 per share, which was paid on March 2, 2018 . Stock Repurchase Programs Stock repurchase activity during the second quarter and first half of 2018 and 2017 is summarized below: Shares Repurchased (000's) Average Price per Share Total Cost Second quarter of 2018 313 $ 187.70 $ 59 First half of 2018 1,047 $ 170.06 $ 178 Second quarter of 2017 411 $ 159.86 $ 66 First half of 2017 1,220 $ 153.98 $ 188 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. The remaining amount available for stock repurchases under our approved plan, which expires in April 2019, was $2,571 at February 18, 2018 . 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 September 3, 2017 $ 10,778 $ 301 $ 11,079 Comprehensive income: Net income 1,341 23 1,364 Foreign-currency translation adjustment and other, net 117 10 127 Comprehensive income 1,458 33 1,491 Stock-based compensation 348 0 348 Release of vested restricted stock units (RSUs), including tax effects (216 ) 0 (216 ) Repurchases of common stock (178 ) 0 (178 ) Cash dividends declared and other (436 ) (35 ) (471 ) Equity at February 18, 2018 $ 11,754 $ 299 $ 12,053 Attributable to Costco Noncontrolling Interests Total Equity Equity at August 28, 2016 $ 12,079 $ 253 $ 12,332 Comprehensive income: Net income 1,060 16 1,076 Foreign-currency translation adjustment and other, net (234 ) 3 (231 ) Comprehensive income 826 19 845 Stock-based compensation 322 0 322 Release of vested RSUs, including tax effects (164 ) 0 (164 ) Repurchases of common stock (188 ) 0 (188 ) Cash dividends declared and other (435 ) 0 (435 ) Equity at February 12, 2017 $ 12,440 $ 272 $ 12,712

Stock-Based Compensation Plans

Stock-Based Compensation Plans	6 Months Ended
	Feb. 18, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation Plans	The Seventh Restated 2002 Stock Incentive 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 withheld for statutory taxes. Summary of Restricted Stock Unit Activity At February 18, 2018 , 8,187,000 shares were available to be granted as RSUs and the following awards were outstanding: • 7,393,000 time-based RSUs that vest upon continued employment over specified periods of time; • 127,000 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 • 205,000 performance-based RSUs, granted to executive officers of the Company, subject to achievement of performance targets for fiscal 2018 , 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. The following table summarizes RSU transactions during the first half of 2018 : Number of Units (in 000’s) Weighted-Average Grant Date Fair Value Outstanding at September 3, 2017 8,199 $ 128.15 Granted 3,722 156.19 Vested and delivered (4,067 ) 129.49 Forfeited (129 ) 137.36 Outstanding at February 18, 2018 7,725 $ 140.80 The remaining unrecognized compensation cost related to non-vested RSUs at February 18, 2018 , was $914 , and the weighted-average period over which this cost will be recognized is 1.7 years. Summary of Stock-Based Compensation The following table summarizes stock-based compensation expense and the related tax benefits under the Company’s plans: 12 Weeks Ended 24 Weeks Ended February 18, February 12, February 18, February 12, Stock-based compensation expense before income taxes $ 112 $ 111 $ 346 $ 322 Less recognized income tax benefit (1) (2 ) (37 ) (79 ) (106 ) Stock-based compensation expense, net of income taxes $ 110 $ 74 $ 267 $ 216 _______________ (1) In the second quarter and first half of 2018, the income tax benefit reflects the permanent reduction in the U.S. federal statutory income tax rate from 35% to 21% .

Income Taxes Income Taxes

Income Taxes Income Taxes	6 Months Ended
	Feb. 18, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Note 7—Income Taxes In December 2017, the Tax Cuts and Jobs Act (the “2017 Tax Act”) was signed into law. Except for certain provisions, the 2017 Act is effective for tax years beginning on or after January 1, 2018. The Company is a fiscal-year taxpayer, so most provisions will become effective for fiscal year 2019, including limitations on the Company’s ability to claim foreign tax credits, repeal of the domestic manufacturing deduction, and limitations on certain business deductions. Provisions with significant impacts that are effective for the second quarter of fiscal 2018 include: a decrease in the U.S. federal income tax rate, remeasurement of certain net deferred tax liabilities, and a transition tax on deemed repatriation of certain foreign earnings. The decrease in the U.S. federal statutory income tax rate to 21% will result in a blended rate for the Company of 25.6% for fiscal 2018. During the second quarter, the Company recorded net tax benefits of $74 related to the 2017 Tax Act, including the impact of lowering the U.S. federal corporate rate. This benefit also included discrete tax expense of $152 on deemed repatriation of foreign earnings, and $39 for the reduction in foreign tax credits and other immaterial items, largely offset by a tax benefit of $165 for the provisional remeasurement of U.S. deferred tax liabilities, which results from the application of the lower tax rate to these liabilities. These are provisional determinations based on the Company's current interpretation of the 2017 Tax Act and estimates that it believes are reasonable. As the Company continues to evaluate the 2017 Tax Act and available data, it anticipates that adjustments may be made in future periods including the first quarter of fiscal 2019. The determination of the Company’s provision for income taxes requires significant judgment, the use of estimates, and the interpretation and application of complex tax laws, all of which are subject to continuing review.

Net Income per Common and Commo

Net Income per Common and Common Equivalent Share	6 Months Ended
	Feb. 18, 2018
Earnings Per Share [Abstract]
Net Income Per Common and Common Equivalent Share	The following table shows the amounts used in computing net income per share and the weighted average number of shares of potentially dilutive common shares outstanding (shares in 000’s): 12 Weeks Ended 24 Weeks Ended February 18, February 12, February 18, February 12, Net income available to common stockholders used in basic and diluted net income per common share $ 701 $ 515 $ 1,341 $ 1,060 Weighted average number of common shares used in basic net income per common share 439,022 439,127 438,494 438,567 RSUs and other 2,546 1,530 2,707 2,001 Weighted average number of common shares and dilutive potential of common stock used in diluted net income per share 441,568 440,657 441,201 440,568

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Feb. 18, 2018
Commitments and Contingencies Disclosure [Abstract]
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, in addition to other immaterial accruals for matters not described below. If the loss contingency at issue is not both probable and reasonably estimable, the Company does not establish an accrual, but will continue to monitor the matter for developments that will make the loss contingency both probable and reasonably estimable. In each case, there is a reasonable possibility that a loss may be incurred, including a loss in excess of the applicable accrual. For matters where no accrual has been recorded, the possible loss or range of loss (including any loss in excess of the accrual) cannot, in the Company's view, be reasonably estimated because, among other things: (i) the remedies or penalties sought are indeterminate or unspecified; (ii) the legal and/or factual theories are not well developed; and/or (iii) the matters involve complex or novel legal theories or a large number of parties. The Company is a defendant in a class action alleging violation of California Wage Order 7-2001 by failing to provide seating to member service assistants who act as greeters and exit attendants in the Company’s California warehouses. Canela v. Costco Wholesale Corp., et al. (Case No. 5:13-cv-03598, N.D. Cal. filed July 1, 2013). The complaint seeks relief under the California Labor Code, including civil penalties and attorneys’ fees. The Company has filed an answer denying the material allegations of the complaint. On November 23, 2016, the Company’s Canadian subsidiary received from the Ontario Ministry of Health and Long Term Care a request for an inspection and information concerning compliance with the anti-rebate provisions in the Ontario Drug Benefit Act and the Drug Interchangeability and Dispensing Fee Act. The Company is seeking to cooperate with the request. In November 2016 and September 2017, the Company received notices of violation from the Connecticut Department of Energy and Environmental Protection regarding hazardous waste practices at its Connecticut warehouses, primarily concerning unsalable pharmaceuticals. The Company is seeking to cooperate concerning the resolution of these notices. The Company does not believe that any pending claim, proceeding or litigation, either alone or in the aggregate, will have a material adverse effect on the Company’s financial position, results of operations or cash flows; however, it is possible that an unfavorable outcome of some or all of the matters, however unlikely, could result in a charge that might be material to the results of an individual fiscal quarter.

Segment Reporting

Segment Reporting	6 Months Ended
	Feb. 18, 2018
Segment Reporting [Abstract]
Segment Reporting	The Company and its subsidiaries are principally engaged in the operation of membership warehouses in the U.S., Canada, Mexico, U.K., Japan, Korea, Australia, Spain, Iceland and France and through a majority-owned subsidiary in Taiwan. Reportable segments are largely based on management’s organization of the operating segments for operational decisions and assessments of financial performance, which consider geographic locations. The material accounting policies of the segments are as described in the notes to the consolidated financial statements included in the Company's Annual Report filed on Form 10-K for the fiscal year ended September 3, 2017 , and Note 1 above. Inter-segment net sales and expenses have been eliminated in computing total revenue and operating income. Certain operating expenses, predominantly stock-based compensation, are incurred on behalf of the Company's Canadian and Other International Operations, but are included in the U.S. Operations because those costs 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 February 18, 2018 Total revenue $ 23,687 $ 4,745 $ 4,563 $ 32,995 Operating income 603 206 207 1,016 Depreciation and amortization 262 31 51 344 Additions to property and equipment 375 39 94 508 Twelve Weeks Ended February 12, 2017 Total revenue $ 21,764 $ 4,229 $ 3,773 $ 29,766 Operating income 520 180 144 844 Depreciation and amortization 241 27 44 312 Additions to property and equipment 358 56 102 516 Twenty-four Weeks Ended February 18, 2018 Total revenue $ 46,500 $ 9,516 $ 8,788 $ 64,804 Operating income 1,136 442 389 1,967 Depreciation and amortization 514 63 102 679 Additions to property and equipment 855 114 359 1,328 Net property and equipment 12,690 1,852 4,507 19,049 Total assets 26,417 3,825 8,461 38,703 United States Operations Canadian Operations Other International Operations Total Twenty-four Weeks Ended February 12, 2017 Total revenue $ 42,141 $ 8,328 $ 7,396 $ 57,865 Operating income 1,026 371 296 1,693 Depreciation and amortization 467 53 89 609 Additions to property and equipment 784 166 233 1,183 Net property and equipment 12,040 1,688 3,614 17,342 Total assets 24,735 3,926 6,969 35,630 Year Ended September 3, 2017 Total revenue $ 93,889 $ 18,775 $ 16,361 $ 129,025 Operating income 2,644 841 626 4,111 Depreciation and amortization 1,044 124 202 1,370 Additions to property and equipment 1,714 277 511 2,502 Net property and equipment 12,339 1,820 4,002 18,161 Total assets 24,068 4,471 7,808 36,347

Summary of Significant Accoun18

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Feb. 18, 2018
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 have been eliminated in consolidation. The Company’s net income excludes income attributable to noncontrolling interests in its operations in Taiwan. During the first quarter of 2018 , Costco purchased its former joint venture partner's remaining equity interest in its Korean operations. 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 September 3, 2017 .
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. Fiscal 2018 is a 52-week year ending on September 2, 2018 . References to the second quarters of 2018 and 2017 relate to the 12-week fiscal quarters ended February 18, 2018 , and February 12, 2017 , respectively. References to the first half of 2018 and 2017 relate to the twenty-four weeks ended February 18, 2018 , and February 12, 2017 , 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, 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 and events 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. Current financial liabilities have fair values that approximate their carrying values. Long-term financial liabilities include the Company's long-term debt, which are recorded on the balance sheet at issuance price and adjusted for unamortized discounts or premiums and debt issuance costs, which are being amortized to interest expense over the term of the loan. 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 2017 Form 10-K.
Merchandise Inventories	Merchandise Inventories Merchandise inventories are stated at the lower of cost or market. U.S. merchandise inventories are valued by the cost method of accounting, using the last-in, first-out (LIFO) basis. 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 adjustments quarterly, if necessary, for the projected annual effect of inflation or deflation, and these estimates are adjusted to actual results determined at fiscal year-end, after actual inflation rates and inventory levels have been determined. Canadian and Other International merchandise inventories are predominantly valued using the cost and retail inventory methods, respectively, using the first-in, first-out (FIFO) basis. As of February 18, 2018 , and September 3, 2017 , U.S. merchandise inventories valued at LIFO approximated FIFO after considering the lower of cost or market principle.
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. 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. Some of these contracts contain credit-risk-related contingent features that require settlement of outstanding contracts upon certain triggering events. At February 18, 2018 , and September 3, 2017 , both the aggregate fair value amounts of derivative instruments in a net liability position and the amount needed to settle the instruments immediately if the credit-risk-related contingent features were triggered were immaterial. The aggregate notional amounts of unsettled forward foreign-exchange contracts were $737 and $637 at February 18, 2018 , and September 3, 2017 , respectively. 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 February 18, 2018 , and September 3, 2017 . 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 in the second quarter of 2018 and a net loss of $29 in the second quarter of 2017 . The net changes in fair value of unsettled forward foreign-exchange contracts during the first half of 2018 and 2017 were immaterial. 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 and 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 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, these include 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. The net impact of these items was immaterial in the second quarter and first half of 2018 and 2017 .
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 additional paid-in capital and retained earnings. The amount allocated to additional paid-in capital is 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.
Recent Accounting Pronouncements Adopted	Recent Accounting Pronouncements Adopted In March 2016, the Financial Accounting Standards Board (FASB) issued guidance intended to simplify accounting for share-based payment transactions. The guidance relates to income taxes, forfeitures, and minimum statutory tax withholding requirements. The new standard was effective for fiscal years and interim periods within those years beginning after December 15, 2016, with early adoption permitted. The Company adopted this guidance at the beginning of its first quarter of fiscal year 2018. As a result, in the first half of 2018 the Company recognized an excess tax benefit of $33 as part of its income tax provision in the accompanying condensed consolidated statements of income. This includes the permanent reduction in the U.S. statutory corporate tax rate. Previously these amounts were reflected in equity. Additionally, these amounts are now reflected as cash flows from operations instead of cash flows from financing activities in the consolidated statements of cash flows on a prospective basis. Adoption of this guidance did not have a material impact on the consolidated balance sheets, consolidated statements of cash flows, or related disclosures.
Recent Accounting Pronouncements Not Yet Adopted	Recent Accounting Pronouncements Not Yet Adopted In May 2014, the FASB issued guidance on the recognition of revenue from contracts with customers. The guidance converges the requirements for reporting revenue and requires disclosures sufficient to describe the nature, amount, timing, and uncertainty of revenue and cash flows. Transition is permitted 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. While its review is continuing, based on preliminary assessments, the Company believes the guidance will accelerate recognition of cash-card breakage income to reflect the historical pattern of gift card redemption as compared to the current methodology of recognizing income when redemption is considered remote. The Company will also record, on a gross basis, a refund liability and an asset for recovery. Currently, these amounts are recorded as a net refund liability. The Company continues to evaluate various areas such as gross versus net revenue presentation for certain contracts, identification and treatment of performance obligations associated with membership offers, accounting for warranty arrangements, and its adoption methodology. In February 2016, the FASB issued guidance on leases, which will require recognition on the balance sheet for the rights and obligations created by leases with terms greater than twelve months. The standard is effective for fiscal years and interim periods within those years beginning after December 15, 2018, with early adoption permitted. The Company plans to adopt this guidance at the beginning of its first quarter of fiscal year 2020. While the Company continues to evaluate this standard and the effect on related disclosures, the primary effect of adoption will be to require recording right-of-use assets and corresponding lease obligations for current operating leases. The adoption is expected to have a material impact on the Company's consolidated balance sheets, but not on the consolidated statements of income or consolidated statements of cash flows.

Investments (Tables)

Investments (Tables)	6 Months Ended
	Feb. 18, 2018
Investments, Debt and Equity Securities [Abstract]
Available-for-sale and Held-to-maturity Investments	The Company’s investments were as follows: February 18, 2018: Cost Basis Unrealized Loss, Net Recorded Basis Available-for-sale: Government and agency securities $ 951 $ (14 ) $ 937 Held-to-maturity: Certificates of deposit 112 112 Total short-term investments $ 1,063 $ (14 ) $ 1,049 September 3, 2017: Cost Basis Unrealized Gains, Net Recorded Basis Available-for-sale: Government and agency securities $ 947 $ 0 $ 947 Mortgage-backed securities 1 0 1 Total available-for-sale 948 0 948 Held-to-maturity: Certificates of deposit 285 285 Total short-term investments $ 1,233 $ 0 $ 1,233
Maturities of Available-for-sale and Held-to-maturity Securities	The maturities of available-for-sale and held-to-maturity securities at February 18, 2018 , were as follows: Available-For-Sale Held-To-Maturity Cost Basis Fair Value Due in one year or less $ 188 $ 188 $ 112 Due after one year through five years 727 714 0 Due after five years 36 35 0 Total $ 951 $ 937 $ 112

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	6 Months Ended
	Feb. 18, 2018
Fair Value Disclosures [Abstract]
Fair Value of Financial Assets and Liabilities Measured on Recurring Basis	The tables below present information regarding financial assets and financial liabilities that are measured at fair value on a recurring basis and indicate the level within the hierarchy reflecting the valuation techniques utilized to determine fair value. February 18, 2018: Level 1 Level 2 Money market mutual funds (1) $ 10 $ 0 Investment in government and agency securities 0 937 Forward foreign-exchange contracts, in asset position (2) 0 2 Forward foreign-exchange contracts, in (liability) position (2) 0 (20 ) Total $ 10 $ 919 September 3, 2017: Level 1 Level 2 Money market mutual funds (1) $ 7 $ 0 Investment in government and agency securities 0 947 Investment in mortgage-backed securities 0 1 Forward foreign-exchange contracts, in asset position (2) 0 2 Forward foreign-exchange contracts, in (liability) position (2) 0 (8 ) Total $ 7 $ 942 _______________ (1) Included in cash and cash equivalents in the accompanying condensed consolidated balance sheets. (2) The asset and the liability values are included in 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)	6 Months Ended
	Feb. 18, 2018
Debt Disclosure [Abstract]
Carrying Value and Estimated Fair Value of Company's Long-term Debt	The carrying value of the Company’s long-term debt consisted of the following: February 18, 2018 September 3, 2017 1.70% Senior Notes due December 2019 $ 1,198 $ 1,198 1.75% Senior Notes due February 2020 499 498 2.15% Senior Notes due May 2021 995 994 2.25% Senior Notes due February 2022 497 497 2.30% Senior Notes due May 2022 794 793 2.75% Senior Notes due May 2024 991 991 3.00% Senior Notes due May 2027 986 986 Other long-term debt 667 702 Total long-term debt 6,627 6,659 Less current portion 122 86 Long-term debt, excluding current portion $ 6,505 $ 6,573

Equity and Comprehensive Inco22

Equity and Comprehensive Income (Tables)	6 Months Ended
	Feb. 18, 2018
Equity [Abstract]
Stock Repurchased During Period	Stock repurchase activity during the second quarter and first half of 2018 and 2017 is summarized below: Shares Repurchased (000's) Average Price per Share Total Cost Second quarter of 2018 313 $ 187.70 $ 59 First half of 2018 1,047 $ 170.06 $ 178 Second quarter of 2017 411 $ 159.86 $ 66 First half of 2017 1,220 $ 153.98 $ 188
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 September 3, 2017 $ 10,778 $ 301 $ 11,079 Comprehensive income: Net income 1,341 23 1,364 Foreign-currency translation adjustment and other, net 117 10 127 Comprehensive income 1,458 33 1,491 Stock-based compensation 348 0 348 Release of vested restricted stock units (RSUs), including tax effects (216 ) 0 (216 ) Repurchases of common stock (178 ) 0 (178 ) Cash dividends declared and other (436 ) (35 ) (471 ) Equity at February 18, 2018 $ 11,754 $ 299 $ 12,053 Attributable to Costco Noncontrolling Interests Total Equity Equity at August 28, 2016 $ 12,079 $ 253 $ 12,332 Comprehensive income: Net income 1,060 16 1,076 Foreign-currency translation adjustment and other, net (234 ) 3 (231 ) Comprehensive income 826 19 845 Stock-based compensation 322 0 322 Release of vested RSUs, including tax effects (164 ) 0 (164 ) Repurchases of common stock (188 ) 0 (188 ) Cash dividends declared and other (435 ) 0 (435 ) Equity at February 12, 2017 $ 12,440 $ 272 $ 12,712

Stock-Based Compensation Plans

Stock-Based Compensation Plans (Tables)	6 Months Ended
	Feb. 18, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of RSU Transactions	The following table summarizes RSU transactions during the first half of 2018 : Number of Units (in 000’s) Weighted-Average Grant Date Fair Value Outstanding at September 3, 2017 8,199 $ 128.15 Granted 3,722 156.19 Vested and delivered (4,067 ) 129.49 Forfeited (129 ) 137.36 Outstanding at February 18, 2018 7,725 $ 140.80
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 24 Weeks Ended February 18, February 12, February 18, February 12, Stock-based compensation expense before income taxes $ 112 $ 111 $ 346 $ 322 Less recognized income tax benefit (1) (2 ) (37 ) (79 ) (106 ) Stock-based compensation expense, net of income taxes $ 110 $ 74 $ 267 $ 216 _______________ (1) In the second quarter and first half of 2018, the income tax benefit reflects the permanent reduction in the U.S. federal statutory income tax rate from 35% to 21% .

Net Income per Common and Com24

Net Income per Common and Common Equivalent Share (Tables)	6 Months Ended
	Feb. 18, 2018
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table shows the amounts used in computing net income per share and the weighted average number of shares of potentially dilutive common shares outstanding (shares in 000’s): 12 Weeks Ended 24 Weeks Ended February 18, February 12, February 18, February 12, Net income available to common stockholders used in basic and diluted net income per common share $ 701 $ 515 $ 1,341 $ 1,060 Weighted average number of common shares used in basic net income per common share 439,022 439,127 438,494 438,567 RSUs and other 2,546 1,530 2,707 2,001 Weighted average number of common shares and dilutive potential of common stock used in diluted net income per share 441,568 440,657 441,201 440,568

Segment Reporting (Tables)

Segment Reporting (Tables)	6 Months Ended
	Feb. 18, 2018
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 February 18, 2018 Total revenue $ 23,687 $ 4,745 $ 4,563 $ 32,995 Operating income 603 206 207 1,016 Depreciation and amortization 262 31 51 344 Additions to property and equipment 375 39 94 508 Twelve Weeks Ended February 12, 2017 Total revenue $ 21,764 $ 4,229 $ 3,773 $ 29,766 Operating income 520 180 144 844 Depreciation and amortization 241 27 44 312 Additions to property and equipment 358 56 102 516 Twenty-four Weeks Ended February 18, 2018 Total revenue $ 46,500 $ 9,516 $ 8,788 $ 64,804 Operating income 1,136 442 389 1,967 Depreciation and amortization 514 63 102 679 Additions to property and equipment 855 114 359 1,328 Net property and equipment 12,690 1,852 4,507 19,049 Total assets 26,417 3,825 8,461 38,703 United States Operations Canadian Operations Other International Operations Total Twenty-four Weeks Ended February 12, 2017 Total revenue $ 42,141 $ 8,328 $ 7,396 $ 57,865 Operating income 1,026 371 296 1,693 Depreciation and amortization 467 53 89 609 Additions to property and equipment 784 166 233 1,183 Net property and equipment 12,040 1,688 3,614 17,342 Total assets 24,735 3,926 6,969 35,630 Year Ended September 3, 2017 Total revenue $ 93,889 $ 18,775 $ 16,361 $ 129,025 Operating income 2,644 841 626 4,111 Depreciation and amortization 1,044 124 202 1,370 Additions to property and equipment 1,714 277 511 2,502 Net property and equipment 12,339 1,820 4,002 18,161 Total assets 24,068 4,471 7,808 36,347 United States Operations Canadian Operations Other International Operations Total Twelve Weeks Ended February 18, 2018 Total revenue $ 23,687 $ 4,745 $ 4,563 $ 32,995 Operating income 603 206 207 1,016 Depreciation and amortization 262 31 51 344 Additions to property and equipment 375 39 94 508 Twelve Weeks Ended February 12, 2017 Total revenue $ 21,764 $ 4,229 $ 3,773 $ 29,766 Operating income 520 180 144 844 Depreciation and amortization 241 27 44 312 Additions to property and equipment 358 56 102 516 Twenty-four Weeks Ended February 18, 2018 Total revenue $ 46,500 $ 9,516 $ 8,788 $ 64,804 Operating income 1,136 442 389 1,967 Depreciation and amortization 514 63 102 679 Additions to property and equipment 855 114 359 1,328 Net property and equipment 12,690 1,852 4,507 19,049 Total assets 26,417 3,825 8,461 38,703

Summary of Significant Accoun26

Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions	3 Months Ended		6 Months Ended
	Feb. 18, 2018USD ($)warehousestates	Feb. 12, 2017USD ($)	Feb. 18, 2018USD ($)warehousestates	Feb. 12, 2017USD ($)	Sep. 03, 2017USD ($)
Summary Of Significant Accounting Policies [Line Items]
Number of warehouses operated	747		747
Gain (loss) on foreign currency derivative instruments not designated as hedging instruments | $		$ (29)
Income Tax Expense (Benefit) | $	$ 273	$ 288	$ 558	$ 579
Accounting Standards Update 2016-09 [Member]
Summary Of Significant Accounting Policies [Line Items]
Income Tax Expense (Benefit) | $			(33)
Forward Foreign-exchange Contracts
Summary Of Significant Accounting Policies [Line Items]
Notional amount of forward foreign-exchange derivative | $	$ 737		$ 737		$ 637
UNITED STATES
Summary Of Significant Accounting Policies [Line Items]
Number of warehouses operated	519		519
Number of states in country | states	44		44
CANADA
Summary Of Significant Accounting Policies [Line Items]
Number of warehouses operated	98		98
MEXICO
Summary Of Significant Accounting Policies [Line Items]
Number of warehouses operated	37		37
UNITED KINGDOM
Summary Of Significant Accounting Policies [Line Items]
Number of warehouses operated	28		28
JAPAN
Summary Of Significant Accounting Policies [Line Items]
Number of warehouses operated	26		26
KOREA
Summary Of Significant Accounting Policies [Line Items]
Number of warehouses operated	13		13
TAIWAN
Summary Of Significant Accounting Policies [Line Items]
Number of warehouses operated	13		13
AUSTRALIA
Summary Of Significant Accounting Policies [Line Items]
Number of warehouses operated	9		9
SPAIN
Summary Of Significant Accounting Policies [Line Items]
Number of warehouses operated	2		2
ICELAND
Summary Of Significant Accounting Policies [Line Items]
Number of warehouses operated	1		1
FRANCE
Summary Of Significant Accounting Policies [Line Items]
Number of warehouses operated	1		1

Investments - Available-for-sal

Investments - Available-for-sale and Held-to-maturity Investments (Detail) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Feb. 12, 2017	Feb. 18, 2018	Feb. 12, 2017	Sep. 03, 2017
Available-for-sale and Held-to-maturity [Line Items]
Available-for-sale, recorded basis		$ 937
Available-for-sale, cost basis, total		951
Held-to-maturity, cost basis		112
Total investments, recorded basis		1,049		$ 1,233
Proceeds from Sale of Available-for-sale Securities	$ 34	39	$ 66
Short-term Investments
Available-for-sale and Held-to-maturity [Line Items]
Unrealized gains/(loss), net		(14)		0
Total investments, recorded basis		1,049		1,233
Total investments, cost basis, total		1,063		1,233
Available-for-sale Securities [Member] | Short-term Investments
Available-for-sale and Held-to-maturity [Line Items]
Available-for-sale, recorded basis		937		948
Unrealized gains/(loss), net		(14)		0
Available-for-sale, cost basis, total		951		948
Available-for-sale Securities [Member] | Short-term Investments | Government and Agency Securities
Available-for-sale and Held-to-maturity [Line Items]
Available-for-sale, recorded basis		937		947
Unrealized gains/(loss), net		(14)		0
Available-for-sale, cost basis, total		951		947
Available-for-sale Securities [Member] | Short-term Investments | Mortgaged-backed Securities
Available-for-sale and Held-to-maturity [Line Items]
Available-for-sale, recorded basis				1
Unrealized gains/(loss), net				0
Available-for-sale, cost basis, total				1
Held-to-maturity Securities [Member] | Short-term Investments
Available-for-sale and Held-to-maturity [Line Items]
Held-to-maturity, recorded basis		112		285
Held-to-maturity, cost basis		112		285
Held-to-maturity Securities [Member] | Short-term Investments | Certificates of deposit
Available-for-sale and Held-to-maturity [Line Items]
Held-to-maturity, recorded basis		112		285
Held-to-maturity, cost basis		$ 112		$ 285

Investments - Maturities of Ava

Investments - Maturities of Available-for-sale and Held-to-maturity Securities (Details) $ in Millions	Feb. 18, 2018USD ($)
Available-for-sale, Cost Basis
Due in one year or less	$ 188
Due after one year through five years	727
Due after five years	36
Available-for-sale, cost basis, total	951
Available-for-sale, Fair Value
Due in one year or less	188
Due after one year through five years	714
Due after five years	35
Available-for-sale, recorded basis, total	937
Held-to-maturity
Due in one year or less	112
Due after one year through five years	0
Due after five years	0
Held-to-maturity, cost basis, total	$ 112

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		Feb. 18, 2018	Sep. 03, 2017
Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets measured on recurring basis		$ 10	$ 7
Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets measured on recurring basis		919	942
Money Market Funds | Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets measured on recurring basis	[1]	10	7
Money Market Funds | Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets measured on recurring basis	[1]	0	0
Government and Agency Securities | Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring 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 and Nonrecurring Basis [Line Items]
Fair value of assets measured on recurring basis		937	947
Mortgaged-backed Securities | Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets measured on recurring basis			0
Mortgaged-backed Securities | Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets measured on recurring basis			1
Forward Foreign-exchange Contracts | Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring 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 and Nonrecurring Basis [Line Items]
Fair value of assets measured on recurring basis	[2]	2	2
Fair value of liabilities measured on recurring basis	[2]	$ (20)	$ (8)
[1]	Included in cash and cash equivalents in the accompanying condensed consolidated balance sheets.
[2]	The asset and the liability values are included in 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	6 Months Ended
	Feb. 18, 2018	Sep. 03, 2017
Debt Instrument [Line Items]
Total long-term debt, carrying value	$ 6,627	$ 6,659
Less current portion, carrying value	122	86
Long-term debt, excluding current portion	6,505	6,573
Total long-term debt, fair value	$ 6,562	6,753
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	$ 1,198	1,198
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	$ 499	498
2.15% Senior Notes Due May 2021
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage	2.15%
Debt instrument, maturity date	May 18, 2021
Total long-term debt, carrying value	$ 995	994
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	$ 497	497
2.30% Senior Notes Due May 2022
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage	2.30%
Debt instrument, maturity date	May 18, 2022
Total long-term debt, carrying value	$ 794	793
2.75% Senior Notes Due May 2024
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage	2.75%
Debt instrument, maturity date	May 18, 2024
Total long-term debt, carrying value	$ 991	991
3.00% Senior Notes Due May 2027
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage	3.00%
Debt instrument, maturity date	May 18, 2027
Total long-term debt, carrying value	$ 986	986
Other Long-term Debt
Debt Instrument [Line Items]
Total long-term debt, carrying value	$ 667	$ 702

Equity and Comprehensive Inco31

Equity and Comprehensive Income - Additional Information - Dividends (Detail) - $ / shares	3 Months Ended		6 Months Ended
	Feb. 18, 2018	Feb. 12, 2017	Feb. 18, 2018	Feb. 12, 2017
Dividends Payable [Line Items]
Dividends declared	$ 0.50	$ 0.45	$ 1	$ 0.90
Dividend Rate
Dividends Payable [Line Items]
Dividends declared	$ 0.50	$ 0.45

Equity and Comprehensive Inco32

Equity and Comprehensive Income (Stock Repurchased During Period) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended		6 Months Ended
	Feb. 18, 2018	Feb. 12, 2017	Feb. 18, 2018	Feb. 12, 2017
Equity [Abstract]
Shares repurchased (000's)	313	411	1,047	1,220
Average price per share	$ 187.70	$ 159.86	$ 170.06	$ 153.98
Total cost	$ 59	$ 66	$ 178	$ 188

Equity and Comprehensive Inco33

Equity and Comprehensive Income Equity and Comprehensive Income - Additional Information - Stock Repurchase Programs (Details) $ in Millions	Feb. 18, 2018USD ($)
Equity [Abstract]
Stock repurchase program, remaining authorized repurchase amount	$ 2,571

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		6 Months Ended
	Feb. 18, 2018	Feb. 12, 2017	Feb. 18, 2018	Feb. 12, 2017
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity at beginning of period			$ (11,079)	$ (12,332)
Comprehensive income:
Net income	$ 713	$ 521	1,364	1,076
Foreign-currency translation adjustment and other, net	150	114	127	(231)
COMPREHENSIVE INCOME ATTRIBUTABLE TO COSTCO	841	621	1,458	826
Comprehensive income (loss), net of tax, attributable to noncontrolling interest	22	14	33	19
Comprehensive income	863	635	1,491	845
Stock-based compensation			348	322
Release of vested restricted stock units (RSUs), including tax effects			216	164
Repurchase of common stock	(59)	(66)	(178)	(188)
Cash dividends declared and other			(471)	(435)
Equity at end of period	(12,053)	(12,712)	(12,053)	(12,712)
Attributable to Costco
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity at beginning of period			(10,778)	(12,079)
Comprehensive income:
Net income			1,341	1,060
Foreign-currency translation adjustment and other, net			117	(234)
COMPREHENSIVE INCOME ATTRIBUTABLE TO COSTCO			1,458	826
Stock-based compensation			348	322
Release of vested restricted stock units (RSUs), including tax effects			216	(164)
Repurchase of common stock			(178)	(188)
Cash dividends declared and other			(436)	(435)
Equity at end of period	(11,754)	12,440	(11,754)	12,440
Noncontrolling Interests
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity at beginning of period			(301)	(253)
Comprehensive income:
Net income			23	16
Foreign-currency translation adjustment and other, net			10	3
Comprehensive income (loss), net of tax, attributable to noncontrolling interest			33	19
Cash dividends declared and other			(35)	0
Equity at end of period	$ (299)	$ (272)	$ (299)	$ (272)

Stock-Based Compensation Plan35

Stock-Based Compensation Plans - Additional Information (Detail) $ in Millions	6 Months Ended
	Feb. 18, 2018USD ($)shares
Seventh Restated 2002 Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Additional number of shares authorized	23,500,000
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	8,187,000
Time-based RSUs awards outstanding	7,393,000
Performance-based RSUs awards outstanding	127,000
Outstanding performance-based RSUs awards granted, subject to achievement of performance targets	205,000
Unrecognized compensation cost | $	$ 914
Weighted-average recognition period	1 year 8 months 12 days

Stock-Based Compensation Plan36

Stock-Based Compensation Plans - Summary of RSU Transactions (Details) shares in Thousands	6 Months Ended
	Feb. 18, 2018$ / sharesshares
Number of units
Outstanding at September 3, 2017 | shares	8,199
Granted | shares	3,722
Vested and delivered | shares	(4,067)
Forfeited | shares	(129)
Outstanding at February 18, 2018 | shares	7,725
Weighted average grant date fair value
Outstanding at September 3, 2017 | $ / shares	$ 128.15
Granted | $ / shares	156.19
Vested and delivered | $ / shares	129.49
Forfeited | $ / shares	137.36
Outstanding at February 18, 2018 | $ / shares	$ 140.80

Stock-Based Compensation Plan37

Stock-Based Compensation Plans - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Millions	2 Months Ended	3 Months Ended			4 Months Ended	6 Months Ended			12 Months Ended
	Feb. 18, 2018	Feb. 18, 2018		Feb. 12, 2017	Dec. 31, 2017	Feb. 18, 2018		Feb. 12, 2017	Sep. 01, 2019	Sep. 02, 2018
Stock-based compensation expense before income taxes		$ 112		$ 111		$ 346		$ 322
Less recognized income tax benefit		(2)	[1]	(37)		(79)	[1]	(106)
Stock-based compensation expense, net of income taxes		$ 110		$ 74		$ 267		$ 216
Scenario, Plan [Member]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%				35.00%				21.00%	25.60%
[1]	In the second quarter and first half of 2018, the income tax benefit reflects the permanent reduction in the U.S. federal statutory income tax rate from 35% to 21%.

Income Taxes Income Taxes (Deta

Income Taxes Income Taxes (Details) - USD ($) $ in Millions	2 Months Ended	3 Months Ended	4 Months Ended	12 Months Ended
	Feb. 18, 2018	Feb. 18, 2018	Dec. 31, 2017	Sep. 01, 2019	Sep. 02, 2018
Net Tax Expense (Benefit), 2017 Tax Act		$ (74)
Tax Expense on Deemed Repatriated Earnings		152
Reduction in Foreign Tax Credits		39
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability		$ (165)
Scenario, Plan [Member]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%		35.00%	21.00%	25.60%

Net Income per Common and Com39

Net Income per Common and Common Equivalent Share - Schedule of Earnings per Share Effect on Net Income and Weighted Average Number of Dilutive Potential Common Stock (Details) - USD ($) shares in Thousands, $ in Millions	3 Months Ended		6 Months Ended
	Feb. 18, 2018	Feb. 12, 2017	Feb. 18, 2018	Feb. 12, 2017
Earnings Per Share [Abstract]
Net income available to common stockholders used in basic and diluted net income per common share	$ 701	$ 515	$ 1,341	$ 1,060
Weighted average number of common shares used in basic net income per common share	439,022	439,127	438,494	438,567
RSUs and other	2,546	1,530	2,707	2,001
Weighted average number of common shares and dilutive potential of common stock used in diluted net income per share	441,568	440,657	441,201	440,568

Segment Reporting Information b

Segment Reporting Information by Segment (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Feb. 18, 2018	Feb. 12, 2017	Feb. 18, 2018	Feb. 12, 2017	Sep. 03, 2017
Segment Reporting Information [Line Items]
Total revenue	$ 32,995	$ 29,766	$ 64,804	$ 57,865	$ 129,025
Operating income	1,016	844	1,967	1,693	4,111
Depreciation and amortization	344	312	679	609	1,370
Additions to property and equipment	508	516	1,328	1,183	2,502
Net property and equipment	19,049	17,342	19,049	17,342	18,161
Total assets	38,703	35,630	38,703	35,630	36,347
Operating Segments [Member] | UNITED STATES
Segment Reporting Information [Line Items]
Total revenue	23,687	21,764	46,500	42,141	93,889
Operating income	603	520	1,136	1,026	2,644
Depreciation and amortization	262	241	514	467	1,044
Additions to property and equipment	375	358	855	784	1,714
Net property and equipment	12,690	12,040	12,690	12,040	12,339
Total assets	26,417	24,735	26,417	24,735	24,068
Operating Segments [Member] | CANADA
Segment Reporting Information [Line Items]
Total revenue	4,745	4,229	9,516	8,328	18,775
Operating income	206	180	442	371	841
Depreciation and amortization	31	27	63	53	124
Additions to property and equipment	39	56	114	166	277
Net property and equipment	1,852	1,688	1,852	1,688	1,820
Total assets	3,825	3,926	3,825	3,926	4,471
Operating Segments [Member] | Other International Operations
Segment Reporting Information [Line Items]
Total revenue	4,563	3,773	8,788	7,396	16,361
Operating income	207	144	389	296	626
Depreciation and amortization	51	44	102	89	202
Additions to property and equipment	94	102	359	233	511
Net property and equipment	4,507	3,614	4,507	3,614	4,002
Total assets	$ 8,461	$ 6,969	$ 8,461	$ 6,969	$ 7,808