Document and Entity Information
Document and Entity Information - shares | 8 Months Ended | |
May 12, 2019 | May 29, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | May 12, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | COST | |
Entity Registrant Name | COSTCO WHOLESALE CORP /NEW | |
Entity Central Index Key | 0000909832 | |
Current Fiscal Year End Date | --09-01 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 439,789,186 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | May 12, 2019 | Sep. 02, 2018 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 7,013,000,000 | $ 6,055,000,000 |
Short-term investments | 1,154,000,000 | 1,204,000,000 |
Receivables, net | 1,704,000,000 | 1,669,000,000 |
Merchandise inventories | 11,304,000,000 | 11,040,000,000 |
Other current assets | 1,110,000,000 | 321,000,000 |
Total current assets | 22,285,000,000 | 20,289,000,000 |
PROPERTY AND EQUIPMENT | ||
Land | 6,310,000,000 | 6,193,000,000 |
Buildings and improvements | 16,644,000,000 | 16,107,000,000 |
Equipment and fixtures | 7,858,000,000 | 7,274,000,000 |
Construction in progress | 1,412,000,000 | 1,140,000,000 |
Gross property and equipment | 32,224,000,000 | 30,714,000,000 |
Less accumulated depreciation and amortization | (11,749,000,000) | (11,033,000,000) |
Net property and equipment | 20,475,000,000 | 19,681,000,000 |
OTHER ASSETS | 992,000,000 | 860,000,000 |
TOTAL ASSETS | 43,752,000,000 | 40,830,000,000 |
CURRENT LIABILITIES | ||
Accounts payable | 11,331,000,000 | 11,237,000,000 |
Accrued salaries and benefits | 2,888,000,000 | 2,994,000,000 |
Accrued member rewards | 1,160,000,000 | 1,057,000,000 |
Deferred membership fees | 1,761,000,000 | 1,624,000,000 |
Current portion of long-term debt | 1,699,000,000 | 90,000,000 |
Other current liabilities | 3,993,000,000 | 2,924,000,000 |
Total current liabilities | 22,832,000,000 | 19,926,000,000 |
LONG-TERM DEBT, excluding current portion | 4,799,000,000 | 6,487,000,000 |
OTHER LIABILITIES | 1,301,000,000 | 1,314,000,000 |
Total liabilities | 28,932,000,000 | 27,727,000,000 |
EQUITY | ||
Preferred stock $.01 par value; 100,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock $0.01 par value; 900,000,000 shares authorized; 439,811,000 and 438,189,000 shares issued and outstanding | 4,000,000 | 4,000,000 |
Additional paid-in capital | 6,307,000,000 | 6,107,000,000 |
Accumulated other comprehensive loss | (1,321,000,000) | (1,199,000,000) |
Retained earnings | 9,496,000,000 | 7,887,000,000 |
Total Costco stockholders' equity | 14,486,000,000 | 12,799,000,000 |
Noncontrolling interests | 334,000,000 | 304,000,000 |
Total equity | 14,820,000,000 | 13,103,000,000 |
TOTAL LIABILITIES AND EQUITY | $ 43,752,000,000 | $ 40,830,000,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | May 12, 2019 | Sep. 02, 2018 |
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 |
Common stock, shares, issued | 439,811,000 | 438,189,000 |
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 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 8 Months Ended | ||
May 12, 2019 | May 13, 2018 | May 12, 2019 | May 13, 2018 | |
REVENUE | ||||
Total Revenue | $ 34,740 | $ 32,361 | $ 105,205 | $ 97,165 |
OPERATING EXPENSES | ||||
Merchandise costs | 30,233 | 28,131 | 91,576 | 84,481 |
Selling, general and administrative | 3,371 | 3,155 | 10,310 | 9,613 |
Preopening expenses | 14 | 8 | 45 | 37 |
Operating income | 1,122 | 1,067 | 3,274 | 3,034 |
OTHER INCOME (EXPENSE) | ||||
Interest expense | (35) | (37) | (105) | (111) |
Interest income and other, net | 36 | 41 | 104 | 70 |
INCOME BEFORE INCOME TAXES | 1,123 | 1,071 | 3,273 | 2,993 |
Provision for income taxes | 207 | 309 | 679 | 867 |
Net income including noncontrolling interests | 916 | 762 | 2,594 | 2,126 |
Net income attributable to noncontrolling interests | (10) | (12) | (32) | (35) |
NET INCOME ATTRIBUTABLE TO COSTCO | $ 906 | $ 750 | $ 2,562 | $ 2,091 |
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO: | ||||
Basic (in dollars per share) | $ 2.06 | $ 1.71 | $ 5.83 | $ 4.77 |
Diluted (in dollars per share) | $ 2.05 | $ 1.70 | $ 5.79 | $ 4.74 |
Shares used in calculation (000's) | ||||
Basic (shares) | 439,859 | 438,740 | 439,767 | 438,576 |
Diluted (shares) | 442,642 | 441,715 | 442,565 | 441,383 |
Net sales | ||||
REVENUE | ||||
Total Revenue | $ 33,964 | $ 31,624 | $ 102,903 | $ 95,020 |
Membership fees | ||||
REVENUE | ||||
Total Revenue | $ 776 | $ 737 | $ 2,302 | $ 2,145 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 8 Months Ended | ||
May 12, 2019 | May 13, 2018 | May 12, 2019 | May 13, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME INCLUDING NONCONTROLLING INTERESTS | $ 916 | $ 762 | $ 2,594 | $ 2,126 |
Foreign-currency translation adjustment and other, net | (42) | (149) | (124) | (22) |
Comprehensive income | 874 | 613 | 2,470 | 2,104 |
Less: Comprehensive income attributable to noncontrolling interests | 9 | 4 | 30 | 37 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO COSTCO | $ 865 | $ 609 | $ 2,440 | $ 2,067 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity Statement - USD ($) shares in Thousands, $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Parent [Member] | Noncontrolling Interest [Member] |
Common Stock at beginning of period (shares) at Sep. 03, 2017 | 437,204 | ||||||
Equity at beginning of period at Sep. 03, 2017 | $ 11,079 | $ 4 | $ 5,800 | $ (1,014) | $ 5,988 | $ 10,778 | $ 301 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 2,126 | 2,091 | 2,091 | 35 | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (22) | (24) | (24) | 2 | |||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 434 | 434 | 434 | ||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 2,735 | ||||||
Stock Issued During Period, Value, Stock Options Exercised | (217) | (217) | (217) | ||||
Stock Repurchased and Retired During Period, Shares | (1,337) | ||||||
Stock Repurchased and Retired During Period, Value | (233) | (19) | (214) | (233) | |||
Dividends, Cash and other | (720) | 3 | (689) | (686) | (34) | ||
Common Stock at end of period (shares) at May. 13, 2018 | 438,602 | ||||||
Equity at end of period at May. 13, 2018 | 12,447 | $ 4 | 6,001 | (1,038) | 7,176 | 12,143 | 304 |
Common Stock at beginning of period (shares) at Feb. 18, 2018 | 438,883 | ||||||
Equity at beginning of period at Feb. 18, 2018 | 12,053 | $ 4 | 5,920 | (897) | 6,727 | 11,754 | 299 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 762 | 750 | 750 | 12 | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (149) | (141) | (141) | (8) | |||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 86 | 86 | 86 | ||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 9 | ||||||
Stock Issued During Period, Value, Stock Options Exercised | (1) | (1) | (1) | ||||
Stock Repurchased and Retired During Period, Shares | (290) | ||||||
Stock Repurchased and Retired During Period, Value | (55) | (5) | (50) | (55) | |||
Dividends, Cash and other | (249) | 1 | (251) | (250) | 1 | ||
Common Stock at end of period (shares) at May. 13, 2018 | 438,602 | ||||||
Equity at end of period at May. 13, 2018 | 12,447 | $ 4 | 6,001 | (1,038) | 7,176 | 12,143 | 304 |
Common Stock at beginning of period (shares) at Sep. 02, 2018 | 438,189 | ||||||
Equity at beginning of period at Sep. 02, 2018 | 13,103 | $ 4 | 6,107 | (1,199) | 7,887 | 12,799 | 304 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 2,594 | 2,562 | 2,562 | 32 | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (124) | (122) | (122) | (2) | |||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 484 | 484 | 484 | ||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 2,525 | ||||||
Stock Issued During Period, Value, Stock Options Exercised | (271) | (271) | (271) | ||||
Stock Repurchased and Retired During Period, Shares | (903) | ||||||
Stock Repurchased and Retired During Period, Value | (195) | (13) | (182) | (195) | |||
Dividends, Cash and other | (771) | (771) | (771) | ||||
Common Stock at end of period (shares) at May. 12, 2019 | 439,811 | ||||||
Equity at end of period at May. 12, 2019 | 14,820 | $ 4 | 6,307 | (1,321) | 9,496 | 14,486 | 334 |
Common Stock at beginning of period (shares) at Feb. 17, 2019 | 439,989 | ||||||
Equity at beginning of period at Feb. 17, 2019 | 14,183 | $ 4 | 6,218 | (1,280) | 8,916 | 13,858 | 325 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 916 | 906 | 906 | 10 | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (42) | (41) | (41) | (1) | |||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 93 | 93 | 93 | ||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 14 | ||||||
Stock Issued During Period, Value, Stock Options Exercised | (1) | (1) | (1) | ||||
Stock Repurchased and Retired During Period, Shares | (192) | ||||||
Stock Repurchased and Retired During Period, Value | (44) | (3) | (41) | (44) | |||
Dividends, Cash and other | (285) | (285) | (285) | ||||
Common Stock at end of period (shares) at May. 12, 2019 | 439,811 | ||||||
Equity at end of period at May. 12, 2019 | $ 14,820 | $ 4 | $ 6,307 | $ (1,321) | $ 9,496 | $ 14,486 | $ 334 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 8 Months Ended | |
May 12, 2019 | May 13, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income including noncontrolling interests | $ 2,594 | $ 2,126 |
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities: | ||
Depreciation and amortization | 1,019 | 1,006 |
Stock-based compensation | 482 | 431 |
Other non-cash operating activities, net | 10 | (3) |
Deferred income taxes | (33) | (21) |
Changes in operating assets and liabilities: | ||
Merchandise inventories | (409) | (828) |
Accounts payable | 0 | 1,160 |
Other operating assets and liabilities, net | 400 | 349 |
Net cash provided by operating activities | 4,063 | 4,220 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of short-term investments | (753) | (679) |
Maturities and sales of short-term investments | 800 | 743 |
Additions to property and equipment | (1,989) | (1,913) |
Other investing activities, net | (3) | (3) |
Net cash used in investing activities | (1,945) | (1,852) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Change in bank checks outstanding | 166 | (23) |
Repayments of long-term debt | (89) | (58) |
Tax withholdings on stock-based awards | (271) | (217) |
Repurchases of common stock | (195) | (238) |
Cash dividend payments | (752) | (439) |
Other financing activities, net | (5) | (39) |
Net cash used in financing activities | (1,146) | (1,014) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (14) | (23) |
Net change in cash and cash equivalents | 958 | 1,331 |
CASH AND CASH EQUIVALENTS BEGINNING OF YEAR | 6,055 | 4,546 |
CASH AND CASH EQUIVALENTS END OF PERIOD | 7,013 | 5,877 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Interest paid | 72 | 81 |
Income taxes, net | 780 | 779 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES: | ||
Cash dividend declared, but not yet paid | $ 285 | $ 250 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 8 Months Ended |
May 12, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Policies | Note 1—Summary of Significant Accounting Policies Description of Business Costco Wholesale Corporation (Costco or the Company), a Washington corporation, and its subsidiaries operate membership warehouses based on the concept that offering members low prices on a limited selection of nationally-branded and private-label products in a wide range of merchandise categories will produce high sales volumes and rapid inventory turnover. For the period ended May 12, 2019 , Costco operated 772 warehouses worldwide: 535 in the United States (U.S.) located in 44 states, Washington, D.C., and Puerto Rico, 100 in Canada, 39 in Mexico, 28 in the United Kingdom (U.K.), 26 in Japan, 16 in Korea, 13 in Taiwan, 11 in Australia, two in Spain, and one each in Iceland and France. 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 the noncontrolling interest in Taiwan. During the first quarter of 2018 , the Company 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 2, 2018 . 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 2019 is a 52 week year ending on September 1, 2019 . References to the third quarter of 2019 and 2018 relate to the 12 week fiscal quarters ended May 12, 2019 , and May 13, 2018 , respectively. References to the first thirty-six weeks of 2019 and 2018 relate to the 36 weeks ended May 12, 2019 , and May 13, 2018 , 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. Revenue Recognition The Company recognizes sales for the amount of consideration collected from the member, which includes gross shipping fees where applicable, and is net of sales taxes collected and remitted to government agencies and returns. The Company reserves for estimated returns based on historical trends in merchandise returns and reduces sales and merchandise costs accordingly. The Company records, on a gross basis, a refund liability and an asset for recovery, which are included in other current liabilities and other current assets, respectively, in the condensed consolidated balance sheets. Merchandise Sales - The Company offers merchandise in the following core merchandise categories: food and sundries, hardlines, softlines, and fresh foods. The Company also provides expanded products and services through warehouse ancillary and other businesses. The majority of revenue from merchandise sales is recognized at the point of sale. Revenue generated through e-commerce or special orders is recognized upon shipment to the member to the extent there is no installation provided as a part of the contract. For merchandise shipped directly to the member, shipping and handling costs are expensed as incurred as fulfillment costs and included in merchandise costs in the condensed consolidated statements of income. In certain ancillary businesses, revenue is deferred until the member picks up merchandise at the warehouse. Deferred sales are included in other current liabilities in the condensed consolidated balance sheets. Principal Versus Agent - The Company is the principal for the majority of its transactions and recognizes revenue on a gross basis. The Company is the principal when it has control of the merchandise or service before it is transferred to the member, which generally is established when Costco is primarily responsible for merchandising decisions, maintains the relationship with the member, including assurance of member service and satisfaction, and has pricing discretion. Membership Fees - The Company accounts for membership fee revenue, net of refunds, on a deferred basis, ratably over the one-year membership period. For the first thirty-six weeks of 2019 , the Company recognized $2,302 of membership fees, of which $1,451 was included in deferred membership at the end of 2018 . In certain countries, the Company's Executive members qualify for a 2% reward on qualified purchases (up to a maximum of approximately $1,000 per year), which does not expire and can be redeemed only at Costco warehouses. The Company accounts for this reward as a reduction in sales, net of the estimated impact of non-redemptions (breakage), with the corresponding liability classified as accrued member rewards in the condensed consolidated balance sheets. Estimated breakage is computed based on redemption data. In the third quarter of 2019 and 2018 the net reduction in sales was $346 and $316 , respectively. In the first thirty-six weeks of 2019 and 2018 the net reduction in sales was $1,060 and $962 , respectively. Cash Cards - The Company sells and otherwise provides proprietary cash cards that do not expire and are redeemable at the warehouse or online for merchandise or membership. Revenue from cash cards is recognized upon redemption, and estimated breakage is recognized based on redemption data. The Company accounts for outstanding cash card balances as a cash card liability, net of estimated breakage and as of May 12, 2019 , and September 2, 2018, the liability was not material. Co-Branded Credit Card Program - Citibank, N.A. (“Citi”) became the exclusive issuer of co-branded credit cards to U.S. members in June 2016. The Company receives various forms of consideration, including a royalty on purchases made on the card outside of Costco, a portion of which, after giving rise to estimated breakage, is used to fund the rebate that cardholders receive. The rebates are issued in February and expire on December 31 of each year. Breakage is estimated based on redemption data. Recent Accounting Pronouncements Adopted In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, providing for changes in the recognition of revenue from contracts with customers. The guidance requires disclosures sufficient to describe the nature, amount, timing, and uncertainty of revenue and cash flows. The Company adopted the standard in the first quarter of 2019, using the modified retrospective approach, and recorded a cumulative effect adjustment of $16 as an increase to retained earnings, which is included in cash dividend declared and other in the condensed consolidated statements of equity. The standard impacted the presentation and timing of certain revenue transactions. Specifically, the changes included gross presentation of the Company’s estimate of merchandise returns reserve and the related recoverable assets, recognizing cash card breakage over the period of redemption, and accelerating the recognition of certain e-commerce and special-order sales. Additionally, the Company’s evaluation under the standard of its status as a principal in certain vendor arrangements resulted in the recognition of additional sales on a gross basis. The effect of the standard on the Company's condensed consolidated balance sheet was an increase to other current liabilities and other current assets of $649 and $694 at adoption and at the end of the third quarter of 2019, respectively, related to the estimate of merchandise returns reserve and the related recoverable assets. The effect of the adoption of this standard on the Company's condensed consolidated statement of income is as follows: As Reported ASU 2014-09 Effect Excluding ASU 2014-09 Effect 12 Weeks Ended May 12, 2019 Net Sales $ 33,964 $ 346 $ 33,618 Merchandise Costs 30,233 342 29,891 Gross Margin (1) 3,731 4 3,727 36 Weeks Ended May 12, 2019 Net Sales $ 102,903 $ 865 $ 102,038 Merchandise Costs 91,576 856 90,720 Gross Margin (1) 11,327 9 11,318 _______________ (1) Net sales less merchandise costs. For related disaggregated revenue disclosures, see Note 10 . Recent Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, which requires recognition on the balance sheet of 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 2020 and utilize the transition option, which allows for a cumulative-effect adjustment in the period of adoption and does not require application of the guidance to comparative periods. The primary effect of adoption will be recording right-of-use assets and corresponding lease obligations for current operating leases. Although the Company continues to evaluate the effect to the Company's consolidated financial statements and disclosures, management currently estimates total assets and liabilities will increase by approximately $2,500 to $ 3,000 upon adoption. This estimate could change as the Company continues to progress with implementation and will also fluctuate based on the lease portfolio, discount rates and currency exchange rates as of the adoption date. The adoption is not expected to have a material impact to the Company's consolidated statements of income or cash flows. The Company is reviewing current accounting policies and related disclosures, and evaluating changes to business processes, systems and controls to support adoption of the new standard, which includes implementing a new lease accounting system. |
Investments
Investments | 8 Months Ended |
May 12, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Note 2—Investments The Company's investments were as follows: May 12, 2019: Cost Unrealized Recorded Available-for-sale: Government and agency securities $ 860 $ (3 ) $ 857 Held-to-maturity: Certificates of deposit 297 297 Total short-term investments $ 1,157 $ (3 ) $ 1,154 September 2, 2018: Cost Unrealized Recorded Available-for-sale: Government and agency securities $ 912 $ (14 ) $ 898 Held-to-maturity: Certificates of deposit 306 306 Total short-term investments $ 1,218 $ (14 ) $ 1,204 Gross unrecognized holding gains and losses on available-for-sale securities were not material for the periods ended May 12, 2019 , and September 2, 2018 . At May 12, 2019 , and September 2, 2018 , available-for-sale securities in an unrealized-loss position were not material. There were no sales of available-for-sale securities during the first thirty-six weeks of 2019 . Proceeds from sales of available-for-sale securities were $39 during the first thirty-six weeks of 2018. Gross realized gains and losses for these sales were not material. The maturities of available-for-sale and held-to-maturity securities at May 12, 2019 , are as follows: Available-For-Sale Held-To-Maturity Cost Basis Fair Value Due in one year or less $ 397 $ 396 $ 297 Due after one year through five years 441 439 0 Due after five years 22 22 0 Total $ 860 $ 857 $ 297 |
Fair Value Measurement
Fair Value Measurement | 8 Months Ended |
May 12, 2019 | |
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 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. May 12, 2019: Level 1 Level 2 Investment in government and agency securities (1) $ 0 $ 1,009 Forward foreign-exchange contracts, in asset position (2) 0 7 Forward foreign-exchange contracts, in (liability) position (2) 0 (3 ) Total $ 0 $ 1,013 September 2, 2018: Level 1 Level 2 Money market mutual funds (3) $ 9 $ 0 Investment in government and agency securities (1) 0 903 Forward foreign-exchange contracts, in asset position (2) 0 16 Forward foreign-exchange contracts, in (liability) position (2) 0 (2 ) Total $ 9 $ 917 _______________ (1) At May 12, 2019 , $ 152 cash and cash equivalents and $857 short-term investments are included in the accompanying condensed consolidated balance sheets. At September 2, 2018 , immaterial cash and cash equivalents and $898 short-term investments are included 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. (3) Included in cash and cash equivalents in the accompanying condensed consolidated balance sheets. During and at the periods ended May 12, 2019 , and September 2, 2018 , 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 third quarter or the first thirty-six weeks of 2019 or 2018 . 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 third quarter or first thirty-six weeks of 2019 and 2018 . |
Debt
Debt | 8 Months Ended |
May 12, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Note 4—Debt The carrying value of the Company’s long-term debt consisted of the following: May 12, 2019 September 2, 2018 1.70% Senior Notes due December 2019 $ 1,200 $ 1,200 1.75% Senior Notes due February 2020 500 500 2.15% Senior Notes due May 2021 1,000 1,000 2.25% Senior Notes due February 2022 500 500 2.30% Senior Notes due May 2022 800 800 2.75% Senior Notes due May 2024 1,000 1,000 3.00% Senior Notes due May 2027 1,000 1,000 Other long-term debt 529 613 Total long-term debt 6,529 6,613 Less unamortized debt discounts and issuance costs 31 36 Less current portion 1,699 90 Long-term debt, excluding current portion $ 4,799 $ 6,487 The estimated fair value of Senior Notes is valued using Level 2 inputs. Other long-term debt consists of Guaranteed Senior Notes issued by the Company's Japan subsidiary and are valued using Level 3 inputs. The fair value of the Company's long-term debt, including the current portion, was approximately $6,519 and $6,492 at May 12, 2019 , and September 2, 2018 , respectively. |
Equity
Equity | 8 Months Ended |
May 12, 2019 | |
Equity [Abstract] | |
Equity and Comprehensive Income | Note 5—Equity Dividends The Company’s current quarterly dividend rate is $0.65 per share, compared to $0.57 in the third quarter of 2018 . On April 26, 2019 , the Board of Directors declared a quarterly dividend in the amount of $0.65 per share, which was paid on May 24, 2019 . Stock Repurchase Programs Stock repurchase activity during the third quarter and first thirty-six weeks of 2019 and 2018 is summarized below: Shares Repurchased (000's) Average Price per Share Total Cost Third quarter of 2019 192 $ 226.57 $ 44 First thirty-six weeks 2019 903 $ 215.94 $ 195 Third quarter of 2018 290 $ 189.66 $ 55 First thirty-six weeks 2018 1,337 $ 174.30 $ 233 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. On April 26, 2019 , the Board of Directors authorized a new share repurchase program in the amount of $4,000 , which expires in April 2023 . This authorization revoked previously authorized but unused amounts, totaling $2,237 . The remaining amount available for stock repurchases under the approved plan was $3,995 at May 12, 2019 . 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. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 8 Months Ended |
May 12, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Plans | Note 6—Stock-Based Compensation On January 24, 2019, our shareholders approved the adoption of the 2019 Incentive Plan, which replaced the Seventh Restated 2002 Stock Incentive Plan (Seventh Plan). The 2019 Incentive Plan authorized the issuance of 17,500,000 shares ( 10,000,000 RSUs) of common stock for future grants, plus the remaining shares that were available for grant under the Seventh Plan on January 24, 2019 and future forfeited shares from grants under the Seventh Plan up to a maximum aggregate of 27,800,000 shares ( 15,885,000 RSUs). The Company issues new shares of common stock upon vesting of RSUs. Shares for vested RSUs are generally delivered to participants annually, net of shares withheld for taxes. Summary of Restricted Stock Unit Activity At May 12, 2019 , 15,649,000 shares were available to be granted as RSUs and the following awards were outstanding: • 6,307,000 time-based RSUs that vest upon continued employment over specified periods of time; • 78,000 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 • 150,000 performance-based RSUs, granted to executive officers of the Company, subject to achievement of performance targets for fiscal 2019 , 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 thirty-six weeks of 2019 : Number of Units (in 000’s) Weighted-Average Grant Date Fair Value Outstanding at September 2, 2018 7,578 $ 140.85 Granted 2,792 224.00 Vested and delivered (3,707 ) 155.64 Forfeited (128 ) 163.68 Outstanding at May 12, 2019 6,535 $ 167.55 The remaining unrecognized compensation cost related to non-vested RSUs at May 12, 2019 , was $ 817 , 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 36 Weeks Ended May 12, May 13, May 12, May 13, Stock-based compensation expense before income taxes $ 93 $ 85 $ 482 $ 431 Less recognized income tax benefit (20 ) (19 ) (104 ) (98 ) Stock-based compensation expense, net of income taxes $ 73 $ 66 $ 378 $ 333 |
Income Taxes Income Taxes
Income Taxes Income Taxes | 8 Months Ended |
May 12, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 7—Taxes Income Taxes The effective tax rate for the third quarter and first thirty-six weeks of 2019 was favorably impacted by the reduction in the U.S. federal corporate tax rate from 35% to 21% , which was in effect for the entire third quarter and first thirty-six weeks of 2019, as compared to a higher blended rate effective for the third quarter and first thirty-six weeks of 2018. The effective tax rate for the first thirty-six weeks of 2019 included discrete net tax benefits of $165 . During the third quarter of 2019, the Company recognized a net benefit of $73 related to U.S. taxation of deemed foreign dividends, net of losses of current year foreign tax credits, which impacted the effective tax rate. The tax rate for the first thirty-six weeks of 2019 was 26.8% , excluding the discrete benefits, but including the impact of the lost foreign tax credits. Other Taxes The Company is undergoing multiple examinations for value added, sales-based, payroll, import or other non-income taxes in various jurisdictions. In certain cases, the Company has received assessments from the authorities. The possible losses or range of possible losses associated with these matters are either immaterial or an estimate of the possible loss or range of loss cannot be made at this time. If certain matters or a group of matters were to be decided adversely to the Company, it could result in a charge that might be material to the results of an individual fiscal quarter or year. |
Net Income per Common and Commo
Net Income per Common and Common Equivalent Share | 8 Months Ended |
May 12, 2019 | |
Earnings Per Share [Abstract] | |
Net Income Per Common and Common Equivalent Share | Note 8—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 36 Weeks Ended May 12, May 13, May 12, May 13, Net income attributable to Costco $ 906 $ 750 $ 2,562 $ 2,091 Weighted average number of common shares used in basic net income per common share 439,859 438,740 439,767 438,576 RSUs 2,783 2,975 2,798 2,807 Weighted average number of common shares and dilutive potential of common stock used in diluted net income per share 442,642 441,715 442,565 441,383 |
Commitments and Contingencies
Commitments and Contingencies | 8 Months Ended |
May 12, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 9—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 immaterial accruals with respect to certain matters described below, in addition to other immaterial accruals for matters not described below. If the loss contingency at issue is not both probable and reasonably estimable, the Company does not establish an accrual, but will continue to monitor the matter for developments that will make the loss contingency both probable and reasonably estimable. In each case, there is a reasonable possibility that a loss may be incurred, including a loss in excess of the applicable accrual. For matters where no accrual has been recorded, the possible loss or range of loss (including any loss in excess of the accrual) cannot, in the Company's view, be reasonably estimated because, among other things: (i) the remedies or penalties sought are indeterminate or unspecified; (ii) the legal and/or factual theories are not well developed; and/or (iii) the matters involve complex or novel legal theories or a large number of parties. The Company is a defendant in a class action alleging violation of California Wage Order 7-2001 for failing to provide seating to member service assistants who act as greeters in the Company’s California warehouses. Canela v. Costco Wholesale Corp., et al. (Case No. 5:13-CV-03598, N.D. Cal. filed July 1, 2013). The complaint seeks relief under the California Labor Code, including civil penalties and attorneys’ fees. The Company filed an answer denying the material allegations of the complaint. The action in the district court has been stayed pending review by the Ninth Circuit of the order certifying a class. In January 2019, an employee brought similar claims for relief concerning Costco employees engaged at member services counters in California. Rodriguez v. Costco Wholesale Corp. (Case No. RG19001310, Alameda Superior Court filed Jan. 4, 2019). In December 2018, a depot employee raised similar claims, alleging that employees in California did not receive suitable seating or appropriate workplace temperature conditions. Lane v. Costco Wholesale Corp. (Dec. 6, 2018 Notice to California Labor and Workforce Development Agency). In January 2019, a former seasonal employee filed a class action, alleging failure to provide California seasonal employees meal and rest breaks, proper wage statements, and appropriate wages. Jadan v. Costco Wholesale Corp. (Case No. 19-CV-340438 Santa Clara Superior Court filed Jan. 3, 2019). The complaint seeks relief under the California Labor Code, including civil penalties and attorneys’ fees. On March 25, 2019, employees filed a class action against the Company alleging claims under California law for failure to pay overtime, to provide itemized wage statements, to timely pay wages due to terminating employees, to pay minimum wages, and for unfair business practices. Relief is sought under the California Labor Code, including civil penalties and attorneys' fees. Nevarez, et ano., v. Costco Wholesale Corp., et al . (Case No. 19ST-CV-10017 Los Angeles County Superior Court filed Mar. 25, 2019). In December 2017, the United States Judicial Panel on Multidistrict Litigation consolidated numerous cases filed against various defendants by counties, cities, hospitals, Native American tribes, and third-party payors concerning the impacts of opioid abuse. In re National Prescription Opiate Litigation (MDL No. 2804) (N.D. Ohio). Included are federal cases that name the Company, including actions filed by a number of counties and cities in Michigan, New Jersey, Oregon, a third-party payor in Ohio, and class actions filed on behalf of infants born with opioid-related medical conditions in New York, California, Illinois, Kentucky, Maryland, West Virginia, Ohio, and Missouri. Similar claims against the Company in state courts in New Jersey and Oklahoma have been dismissed. The Company is defending all of these matters. The Company and its CEO and CFO are defendants in putative class actions brought on behalf of shareholders who acquired Company stock between June 6 and October 25, 2018. Johnson v. Costco Wholesale Corp., et al. (W.D. Wash. filed Nov. 5, 2018); Chen v. Costco Wholesale Corp., et al. (W.D. Wash. filed Dec. 11, 2018). The complaints allege violations of the federal securities laws stemming from the Company’s disclosures concerning internal control over financial reporting. They seek unspecified damages, equitable relief, interest, and costs and attorneys’ fees. On January 30, 2019, an order was entered consolidating the actions and a consolidated amended complaint was filed on April 16, 2019. The Company expects the consolidated action to be vigorously defended. Members of the Board of Directors, one other individual, and the Company are defendants in a shareholder derivative action related to the internal controls and related disclosures identified in the putative class actions, alleging that the individual defendants breached their fiduciary duties. Wedekind v. Hamilton James, Susan Decker, Kenneth Denman, Richard Galanti, Craig Jelinek, Richard Libenson, John Meisenbach, Charles Munger, Jeffrey Raikes, John Stanton, Mary Agnes Wilderotter, and Costco Wholesale Corp. (W.D. Wash. filed Dec. 11, 2018). The complaint seeks unspecified damages, disgorgement of compensation, corporate governance changes, and costs and attorneys' fees. Because the complaint is derivative in nature, it does not seek monetary damages from the Company, which is a nominal defendant. By agreement among the parties the action has been stayed pending further proceedings in the class actions. Similar actions were filed in King County Superior Court on February 20, 2019, Elliott v. Hamilton James, Susan Decker, Kenneth Denman, Richard Galanti, Craig Jelinek, Richard Libenson, John Meisenbach, Charles Munger, Jeffrey Raikes, John Stanton, Mary Agnes Wilderotter, and Costco Wholesale Corp. (Case No. 19-2-04824-7), and April 16, 2019, Brad Shuman, et ano. v. Hamilton James, Susan Decker, Kenneth Denman, Richard Galanti, Craig Jelinek, John Meisenbach, Charles Munger, Jeffrey Raikes, John Stanton, Mary Agnes Wilderotter, and Costco Wholesale Corp. (Case No. 19-2-10460-1). These actions have also been stayed. 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. On February 13, 2019, the Company's affiliate in Spain received notice from the General Directorate on Environment and Sustainability of the Regional Government of Madrid that the Directorate is investigating issues concerning rain, sewage and hydrocarbon drainage related to the Company's warehouse in Getafe. The relief to be sought is not known at this time. 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 or year. |
Segment Reporting
Segment Reporting | 8 Months Ended |
May 12, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 10—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 2, 2018 , and Note 1 above. Inter-segment net sales and expenses have been eliminated in computing total revenue and operating income. Certain operating expenses, predominantly stock-based compensation, are incurred on behalf of the Company's Canadian and Other International Operations, but are included in the U.S. Operations because those costs generally come under the responsibility of the Company's U.S. management team. The following table provides information for the Company's reportable segments: United States Canadian Other Total 12 Weeks Ended May 12, 2019 Total revenue $ 25,536 $ 4,792 $ 4,412 $ 34,740 Operating income 736 213 173 1,122 Depreciation and amortization 260 32 44 336 Additions to property and equipment 500 38 134 672 12 Weeks Ended May 13, 2018 Total revenue $ 23,475 $ 4,647 $ 4,239 $ 32,361 Operating income 682 210 175 1,067 Depreciation and amortization 242 31 54 327 Additions to property and equipment 468 42 75 585 36 Weeks Ended May 12, 2019 Total revenue $ 76,958 $ 14,561 $ 13,686 $ 105,205 Operating income 2,108 625 541 3,274 Depreciation and amortization 764 100 155 1,019 Additions to property and equipment 1,428 209 352 1,989 Net property and equipment 14,020 1,917 4,538 20,475 Total assets 30,416 4,637 8,699 43,752 36 Weeks Ended May 13, 2018 Total revenue $ 69,975 $ 14,163 $ 13,027 $ 97,165 Operating income 1,818 652 564 3,034 Depreciation and amortization 756 94 156 1,006 Additions to property and equipment 1,323 156 434 1,913 Net property and equipment 12,924 1,829 4,425 19,178 Total assets 27,062 4,248 8,295 39,605 52 Weeks Ended September 2, 2018 Total revenue $ 102,286 $ 20,689 $ 18,601 $ 141,576 Operating income 2,787 939 754 4,480 Depreciation and amortization 1,078 135 224 1,437 Additions to property and equipment 2,046 268 655 2,969 Net property and equipment 13,353 1,900 4,428 19,681 Total assets 28,207 4,303 8,320 40,830 Disaggregated Revenue The following table summarizes net sales by merchandise category: 12 Weeks Ended 36 Weeks Ended May 12, 2019 May 12, 2019 Foods and Sundries $ 13,524 $ 41,131 Hardlines 5,666 17,276 Fresh Foods 4,568 13,551 Softlines 3,413 11,760 Ancillary 6,793 19,185 Total Net Sales $ 33,964 $ 102,903 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 8 Months Ended |
May 12, 2019 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy | Basis of Presentation The condensed consolidated financial statements include the accounts of Costco, its wholly-owned subsidiaries, and subsidiaries in which it has a controlling interest. The Company reports noncontrolling interests in consolidated entities as a component of equity separate from the Company’s equity. All material inter-company transactions between and among the Company and its consolidated subsidiaries have been eliminated in consolidation. The Company’s net income excludes income attributable to the noncontrolling interest in Taiwan. During the first quarter of 2018 , the Company 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 2, 2018 . |
Fiscal Period, Policy | Fiscal Year End The Company operates on a 52/53 week fiscal year basis, with the fiscal year ending on the Sunday closest to August 31. Fiscal 2019 is a 52 week year ending on September 1, 2019 . References to the third quarter of 2019 and 2018 relate to the 12 week fiscal quarters ended May 12, 2019 , and May 13, 2018 , respectively. References to the first thirty-six weeks of 2019 and 2018 relate to the 36 weeks ended May 12, 2019 , and May 13, 2018 , respectively. |
Use of Estimates, Policy | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and assumptions. |
Revenue Recognition | Revenue Recognition The Company recognizes sales for the amount of consideration collected from the member, which includes gross shipping fees where applicable, and is net of sales taxes collected and remitted to government agencies and returns. The Company reserves for estimated returns based on historical trends in merchandise returns and reduces sales and merchandise costs accordingly. The Company records, on a gross basis, a refund liability and an asset for recovery, which are included in other current liabilities and other current assets, respectively, in the condensed consolidated balance sheets. Merchandise Sales - The Company offers merchandise in the following core merchandise categories: food and sundries, hardlines, softlines, and fresh foods. The Company also provides expanded products and services through warehouse ancillary and other businesses. The majority of revenue from merchandise sales is recognized at the point of sale. Revenue generated through e-commerce or special orders is recognized upon shipment to the member to the extent there is no installation provided as a part of the contract. For merchandise shipped directly to the member, shipping and handling costs are expensed as incurred as fulfillment costs and included in merchandise costs in the condensed consolidated statements of income. In certain ancillary businesses, revenue is deferred until the member picks up merchandise at the warehouse. Deferred sales are included in other current liabilities in the condensed consolidated balance sheets. Principal Versus Agent - The Company is the principal for the majority of its transactions and recognizes revenue on a gross basis. The Company is the principal when it has control of the merchandise or service before it is transferred to the member, which generally is established when Costco is primarily responsible for merchandising decisions, maintains the relationship with the member, including assurance of member service and satisfaction, and has pricing discretion. Membership Fees - The Company accounts for membership fee revenue, net of refunds, on a deferred basis, ratably over the one-year membership period. For the first thirty-six weeks of 2019 , the Company recognized $2,302 of membership fees, of which $1,451 was included in deferred membership at the end of 2018 . In certain countries, the Company's Executive members qualify for a 2% reward on qualified purchases (up to a maximum of approximately $1,000 per year), which does not expire and can be redeemed only at Costco warehouses. The Company accounts for this reward as a reduction in sales, net of the estimated impact of non-redemptions (breakage), with the corresponding liability classified as accrued member rewards in the condensed consolidated balance sheets. Estimated breakage is computed based on redemption data. In the third quarter of 2019 and 2018 the net reduction in sales was $346 and $316 , respectively. In the first thirty-six weeks of 2019 and 2018 the net reduction in sales was $1,060 and $962 , respectively. Cash Cards - The Company sells and otherwise provides proprietary cash cards that do not expire and are redeemable at the warehouse or online for merchandise or membership. Revenue from cash cards is recognized upon redemption, and estimated breakage is recognized based on redemption data. The Company accounts for outstanding cash card balances as a cash card liability, net of estimated breakage and as of May 12, 2019 , and September 2, 2018, the liability was not material. Co-Branded Credit Card Program - Citibank, N.A. (“Citi”) became the exclusive issuer of co-branded credit cards to U.S. members in June 2016. The Company receives various forms of consideration, including a royalty on purchases made on the card outside of Costco, a portion of which, after giving rise to estimated breakage, is used to fund the rebate that cardholders receive. The rebates are issued in February and expire on December 31 of each year. Breakage is estimated based on redemption data. |
Recent Accounting Pronouncements Adopted | Recent Accounting Pronouncements Adopted In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, providing for changes in the recognition of revenue from contracts with customers. The guidance requires disclosures sufficient to describe the nature, amount, timing, and uncertainty of revenue and cash flows. The Company adopted the standard in the first quarter of 2019, using the modified retrospective approach, and recorded a cumulative effect adjustment of $16 as an increase to retained earnings, which is included in cash dividend declared and other in the condensed consolidated statements of equity. The standard impacted the presentation and timing of certain revenue transactions. Specifically, the changes included gross presentation of the Company’s estimate of merchandise returns reserve and the related recoverable assets, recognizing cash card breakage over the period of redemption, and accelerating the recognition of certain e-commerce and special-order sales. Additionally, the Company’s evaluation under the standard of its status as a principal in certain vendor arrangements resulted in the recognition of additional sales on a gross basis. The effect of the standard on the Company's condensed consolidated balance sheet was an increase to other current liabilities and other current assets of $649 and $694 at adoption and at the end of the third quarter of 2019, respectively, related to the estimate of merchandise returns reserve and the related recoverable assets. The effect of the adoption of this standard on the Company's condensed consolidated statement of income is as follows: As Reported ASU 2014-09 Effect Excluding ASU 2014-09 Effect 12 Weeks Ended May 12, 2019 Net Sales $ 33,964 $ 346 $ 33,618 Merchandise Costs 30,233 342 29,891 Gross Margin (1) 3,731 4 3,727 36 Weeks Ended May 12, 2019 Net Sales $ 102,903 $ 865 $ 102,038 Merchandise Costs 91,576 856 90,720 Gross Margin (1) 11,327 9 11,318 _______________ (1) Net sales less merchandise costs. For related disaggregated revenue disclosures, see Note 10 . |
Recent Accounting Pronouncements Not Yet Adopted | Recent Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, which requires recognition on the balance sheet of 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 2020 and utilize the transition option, which allows for a cumulative-effect adjustment in the period of adoption and does not require application of the guidance to comparative periods. The primary effect of adoption will be recording right-of-use assets and corresponding lease obligations for current operating leases. Although the Company continues to evaluate the effect to the Company's consolidated financial statements and disclosures, management currently estimates total assets and liabilities will increase by approximately $2,500 to $ 3,000 upon adoption. This estimate could change as the Company continues to progress with implementation and will also fluctuate based on the lease portfolio, discount rates and currency exchange rates as of the adoption date. The adoption is not expected to have a material impact to the Company's consolidated statements of income or cash flows. The Company is reviewing current accounting policies and related disclosures, and evaluating changes to business processes, systems and controls to support adoption of the new standard, which includes implementing a new lease accounting system. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 8 Months Ended |
May 12, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The effect of the adoption of this standard on the Company's condensed consolidated statement of income is as follows: As Reported ASU 2014-09 Effect Excluding ASU 2014-09 Effect 12 Weeks Ended May 12, 2019 Net Sales $ 33,964 $ 346 $ 33,618 Merchandise Costs 30,233 342 29,891 Gross Margin (1) 3,731 4 3,727 36 Weeks Ended May 12, 2019 Net Sales $ 102,903 $ 865 $ 102,038 Merchandise Costs 91,576 856 90,720 Gross Margin (1) 11,327 9 11,318 _______________ (1) Net sales less merchandise costs. |
Investments (Tables)
Investments (Tables) | 8 Months Ended |
May 12, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale and Held-to-maturity Investments | The Company's investments were as follows: May 12, 2019: Cost Unrealized Recorded Available-for-sale: Government and agency securities $ 860 $ (3 ) $ 857 Held-to-maturity: Certificates of deposit 297 297 Total short-term investments $ 1,157 $ (3 ) $ 1,154 September 2, 2018: Cost Unrealized Recorded Available-for-sale: Government and agency securities $ 912 $ (14 ) $ 898 Held-to-maturity: Certificates of deposit 306 306 Total short-term investments $ 1,218 $ (14 ) $ 1,204 |
Maturities of Available-for-sale and Held-to-maturity Securities | The maturities of available-for-sale and held-to-maturity securities at May 12, 2019 , are as follows: Available-For-Sale Held-To-Maturity Cost Basis Fair Value Due in one year or less $ 397 $ 396 $ 297 Due after one year through five years 441 439 0 Due after five years 22 22 0 Total $ 860 $ 857 $ 297 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 8 Months Ended |
May 12, 2019 | |
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. May 12, 2019: Level 1 Level 2 Investment in government and agency securities (1) $ 0 $ 1,009 Forward foreign-exchange contracts, in asset position (2) 0 7 Forward foreign-exchange contracts, in (liability) position (2) 0 (3 ) Total $ 0 $ 1,013 September 2, 2018: Level 1 Level 2 Money market mutual funds (3) $ 9 $ 0 Investment in government and agency securities (1) 0 903 Forward foreign-exchange contracts, in asset position (2) 0 16 Forward foreign-exchange contracts, in (liability) position (2) 0 (2 ) Total $ 9 $ 917 _______________ (1) At May 12, 2019 , $ 152 cash and cash equivalents and $857 short-term investments are included in the accompanying condensed consolidated balance sheets. At September 2, 2018 , immaterial cash and cash equivalents and $898 short-term investments are included 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. (3) Included in cash and cash equivalents in the accompanying condensed consolidated balance sheets. |
Debt (Tables)
Debt (Tables) | 8 Months Ended |
May 12, 2019 | |
Debt Disclosure [Abstract] | |
Carrying Value and Estimated Fair Value of Company's Long-term Debt | The carrying value of the Company’s long-term debt consisted of the following: May 12, 2019 September 2, 2018 1.70% Senior Notes due December 2019 $ 1,200 $ 1,200 1.75% Senior Notes due February 2020 500 500 2.15% Senior Notes due May 2021 1,000 1,000 2.25% Senior Notes due February 2022 500 500 2.30% Senior Notes due May 2022 800 800 2.75% Senior Notes due May 2024 1,000 1,000 3.00% Senior Notes due May 2027 1,000 1,000 Other long-term debt 529 613 Total long-term debt 6,529 6,613 Less unamortized debt discounts and issuance costs 31 36 Less current portion 1,699 90 Long-term debt, excluding current portion $ 4,799 $ 6,487 |
Equity (Tables)
Equity (Tables) | 8 Months Ended |
May 12, 2019 | |
Equity [Abstract] | |
Stock Repurchased During Period | Stock repurchase activity during the third quarter and first thirty-six weeks of 2019 and 2018 is summarized below: Shares Repurchased (000's) Average Price per Share Total Cost Third quarter of 2019 192 $ 226.57 $ 44 First thirty-six weeks 2019 903 $ 215.94 $ 195 Third quarter of 2018 290 $ 189.66 $ 55 First thirty-six weeks 2018 1,337 $ 174.30 $ 233 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 8 Months Ended |
May 12, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of RSU Transactions | The following table summarizes RSU transactions during the first thirty-six weeks of 2019 : Number of Units (in 000’s) Weighted-Average Grant Date Fair Value Outstanding at September 2, 2018 7,578 $ 140.85 Granted 2,792 224.00 Vested and delivered (3,707 ) 155.64 Forfeited (128 ) 163.68 Outstanding at May 12, 2019 6,535 $ 167.55 |
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 36 Weeks Ended May 12, May 13, May 12, May 13, Stock-based compensation expense before income taxes $ 93 $ 85 $ 482 $ 431 Less recognized income tax benefit (20 ) (19 ) (104 ) (98 ) Stock-based compensation expense, net of income taxes $ 73 $ 66 $ 378 $ 333 |
Net Income per Common and Com_2
Net Income per Common and Common Equivalent Share (Tables) | 8 Months Ended |
May 12, 2019 | |
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 36 Weeks Ended May 12, May 13, May 12, May 13, Net income attributable to Costco $ 906 $ 750 $ 2,562 $ 2,091 Weighted average number of common shares used in basic net income per common share 439,859 438,740 439,767 438,576 RSUs 2,783 2,975 2,798 2,807 Weighted average number of common shares and dilutive potential of common stock used in diluted net income per share 442,642 441,715 442,565 441,383 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 8 Months Ended |
May 12, 2019 | |
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 generally come under the responsibility of the Company's U.S. management team. The following table provides information for the Company's reportable segments: United States Canadian Other Total 12 Weeks Ended May 12, 2019 Total revenue $ 25,536 $ 4,792 $ 4,412 $ 34,740 Operating income 736 213 173 1,122 Depreciation and amortization 260 32 44 336 Additions to property and equipment 500 38 134 672 12 Weeks Ended May 13, 2018 Total revenue $ 23,475 $ 4,647 $ 4,239 $ 32,361 Operating income 682 210 175 1,067 Depreciation and amortization 242 31 54 327 Additions to property and equipment 468 42 75 585 36 Weeks Ended May 12, 2019 Total revenue $ 76,958 $ 14,561 $ 13,686 $ 105,205 Operating income 2,108 625 541 3,274 Depreciation and amortization 764 100 155 1,019 Additions to property and equipment 1,428 209 352 1,989 Net property and equipment 14,020 1,917 4,538 20,475 Total assets 30,416 4,637 8,699 43,752 36 Weeks Ended May 13, 2018 Total revenue $ 69,975 $ 14,163 $ 13,027 $ 97,165 Operating income 1,818 652 564 3,034 Depreciation and amortization 756 94 156 1,006 Additions to property and equipment 1,323 156 434 1,913 Net property and equipment 12,924 1,829 4,425 19,178 Total assets 27,062 4,248 8,295 39,605 52 Weeks Ended September 2, 2018 Total revenue $ 102,286 $ 20,689 $ 18,601 $ 141,576 Operating income 2,787 939 754 4,480 Depreciation and amortization 1,078 135 224 1,437 Additions to property and equipment 2,046 268 655 2,969 Net property and equipment 13,353 1,900 4,428 19,681 Total assets 28,207 4,303 8,320 40,830 |
Disaggregation of Revenue [Table Text Block] | Disaggregated Revenue The following table summarizes net sales by merchandise category: 12 Weeks Ended 36 Weeks Ended May 12, 2019 May 12, 2019 Foods and Sundries $ 13,524 $ 41,131 Hardlines 5,666 17,276 Fresh Foods 4,568 13,551 Softlines 3,413 11,760 Ancillary 6,793 19,185 Total Net Sales $ 33,964 $ 102,903 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions | 3 Months Ended | 8 Months Ended | ||||
May 12, 2019USD ($)warehousestates | May 13, 2018USD ($) | May 12, 2019USD ($)warehousestates | May 13, 2018USD ($) | Sep. 01, 2019USD ($) | Sep. 02, 2018USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 16 | $ 16 | ||||
Number of warehouses operated | warehouse | 772 | 772 | ||||
Number of states in country | states | 44 | 44 | ||||
Total Revenue | $ 34,740 | $ 32,361 | $ 105,205 | $ 97,165 | ||
Reduction In Sales | 346 | 316 | 1,060 | 962 | ||
Revenue Recognition, Sales Returns, Reserve for Sales Returns | 694 | 694 | $ 649 | |||
Merchandise costs | 30,233 | 28,131 | 91,576 | 84,481 | ||
Gross Margin (1) | 3,731 | 11,327 | ||||
Membership fees | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Total Revenue | 776 | 737 | 2,302 | 2,145 | ||
Deferred Revenue, Current | 1,451 | |||||
Net Sales | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Total Revenue | 33,964 | $ 31,624 | 102,903 | $ 95,020 | ||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Merchandise costs | 342 | 856 | ||||
Gross Margin (1) | 4 | 9 | ||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Net Sales | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Total Revenue | 346 | 865 | ||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Merchandise costs | 29,891 | 90,720 | ||||
Gross Margin (1) | 3,727 | 11,318 | ||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Net Sales | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Total Revenue | $ 33,618 | $ 102,038 | ||||
UNITED STATES | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of warehouses operated | warehouse | 535 | 535 | ||||
CANADA | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of warehouses operated | warehouse | 100 | 100 | ||||
MEXICO | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of warehouses operated | warehouse | 39 | 39 | ||||
UNITED KINGDOM | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of warehouses operated | warehouse | 28 | 28 | ||||
JAPAN | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of warehouses operated | warehouse | 26 | 26 | ||||
KOREA | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of warehouses operated | warehouse | 16 | 16 | ||||
TAIWAN | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of warehouses operated | warehouse | 13 | 13 | ||||
AUSTRALIA | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of warehouses operated | warehouse | 11 | 11 | ||||
SPAIN | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of warehouses operated | warehouse | 2 | 2 | ||||
ICELAND | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of warehouses operated | warehouse | 1 | 1 | ||||
FRANCE | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of warehouses operated | warehouse | 1 | 1 | ||||
Scenario, Forecast [Member] | Maximum [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Operating Lease, Right-of-Use Asset | $ 3,000 | |||||
Scenario, Forecast [Member] | Minimum [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Operating Lease, Right-of-Use Asset | $ 2,500 |
Investments - Available-for-sal
Investments - Available-for-sale and Held-to-maturity Investments (Detail) - USD ($) $ in Millions | 8 Months Ended | ||
May 13, 2018 | May 12, 2019 | Sep. 02, 2018 | |
Available-for-sale and Held-to-maturity [Line Items] | |||
Available-for-sale, recorded basis | $ 857 | ||
Available-for-sale, cost basis, total | 860 | ||
Held-to-maturity, cost basis | 297 | ||
Total investments, recorded basis | 1,154 | $ 1,204 | |
Proceeds from Sale of Available-for-sale Securities | $ 39 | ||
Short-term Investments | |||
Available-for-sale and Held-to-maturity [Line Items] | |||
Unrealized gains/(loss), net | (3) | (14) | |
Total investments, recorded basis | 1,154 | 1,204 | |
Total investments, cost basis, total | 1,157 | 1,218 | |
Short-term Investments | Government and Agency Securities | |||
Available-for-sale and Held-to-maturity [Line Items] | |||
Available-for-sale, recorded basis | 857 | 898 | |
Available-for-sale Securities [Member] | Short-term Investments | |||
Available-for-sale and Held-to-maturity [Line Items] | |||
Available-for-sale, recorded basis | 857 | ||
Unrealized gains/(loss), net | (3) | ||
Available-for-sale, cost basis, total | 860 | ||
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 | 857 | 898 | |
Unrealized gains/(loss), net | (3) | (14) | |
Available-for-sale, cost basis, total | 860 | 912 | |
Held-to-maturity Securities [Member] | Short-term Investments | |||
Available-for-sale and Held-to-maturity [Line Items] | |||
Held-to-maturity, recorded basis | 297 | ||
Held-to-maturity, cost basis | 297 | ||
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 | 297 | 306 | |
Held-to-maturity, cost basis | $ 297 | $ 306 |
Investments - Maturities of Ava
Investments - Maturities of Available-for-sale and Held-to-maturity Securities (Details) $ in Millions | May 12, 2019USD ($) |
Available-for-sale, Cost Basis | |
Due in one year or less | $ 397 |
Due after one year through five years | 441 |
Due after five years | 22 |
Available-for-sale, cost basis, total | 860 |
Available-for-sale, Fair Value | |
Due in one year or less | 396 |
Due after one year through five years | 439 |
Due after five years | 22 |
Available-for-sale, recorded basis, total | 857 |
Held-to-maturity | |
Due in one year or less | 297 |
Due after one year through five years | 0 |
Due after five years | 0 |
Held-to-maturity, cost basis, total | $ 297 |
Fair Value Measurement - Fair V
Fair Value Measurement - Fair Value of Financial Assets and Financial Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Millions | May 12, 2019 | Sep. 02, 2018 | May 13, 2018 | Sep. 03, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, at Carrying Value | $ 7,013 | $ 6,055 | $ 5,877 | $ 4,546 |
Short-term Investments | 857 | |||
Short-term Investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, at Carrying Value | 152 | |||
Fair Value, Measurements, Recurring | 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 | 9 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of assets measured on recurring basis | 1,013 | 917 | ||
Money Market Funds | Fair Value, Measurements, Recurring | 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 | 9 | |||
Money Market Funds | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of assets measured on recurring basis | 0 | |||
Government and Agency Securities | Short-term Investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Short-term Investments | 857 | 898 | ||
Government and Agency Securities | Fair Value, Measurements, Recurring | 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, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of assets measured on recurring basis | 1,009 | 903 | ||
Forward Foreign-exchange Contracts | Fair Value, Measurements, Recurring | 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 | ||
Fair value of liabilities measured on recurring basis | 0 | 0 | ||
Forward Foreign-exchange Contracts | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of assets measured on recurring basis | 7 | 16 | ||
Fair value of liabilities measured on recurring basis | $ (3) | $ (2) |
Debt (Carrying Value and Estima
Debt (Carrying Value and Estimated Fair Value of Company's Long-term Debt) (Details) - USD ($) $ in Millions | 8 Months Ended | |
May 12, 2019 | Sep. 02, 2018 | |
Debt Instrument [Line Items] | ||
Total long-term debt, Face value | $ 6,529 | $ 6,613 |
Less unamortized debt discounts and issuance costs, Net | 31 | 36 |
Current portion of long-term debt | 1,699 | 90 |
Long-term debt, excluding current portion | 4,799 | 6,487 |
Total long-term debt, fair value | $ 6,519 | 6,492 |
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, Face value | $ 1,200 | 1,200 |
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, Face value | $ 500 | 500 |
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, Face value | $ 1,000 | 1,000 |
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, Face value | $ 500 | 500 |
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, Face value | $ 800 | 800 |
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, Face value | $ 1,000 | 1,000 |
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, Face value | $ 1,000 | 1,000 |
Other Long-term Debt | ||
Debt Instrument [Line Items] | ||
Total long-term debt, Face value | $ 529 | $ 613 |
Equity - Additional Information
Equity - Additional Information - Dividends (Detail) - $ / shares | 8 Months Ended | |
May 12, 2019 | May 13, 2018 | |
Dividend Rate | ||
Dividends Payable [Line Items] | ||
Dividends declared | $ 0.65 | $ 0.57 |
Equity (Stock Repurchased Durin
Equity (Stock Repurchased During Period) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 8 Months Ended | ||
May 12, 2019 | May 13, 2018 | May 12, 2019 | May 13, 2018 | |
Equity [Abstract] | ||||
Shares repurchased (000's) | 192 | 290 | 903 | 1,337 |
Average price per share | $ 226.57 | $ 189.66 | $ 215.94 | $ 174.30 |
Total Cost | $ 44 | $ 55 | $ 195 | $ 233 |
Equity - Additional Informati_2
Equity - Additional Information - Stock Repurchase Programs (Details) - USD ($) $ in Millions | 8 Months Ended | |
May 12, 2019 | Apr. 26, 2019 | |
Equity [Abstract] | ||
Stock Repurchase Program, Authorized Amount | $ 4,000 | |
Previously Authorized But Unused Share Repurchase Amounts Revoked | $ 2,237 | |
Stock Repurchase Program Expiration Date | Apr. 26, 2023 | |
Stock repurchase program, remaining authorized repurchase amount | $ 3,995 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans - Additional Information (Detail) - USD ($) $ in Millions | 8 Months Ended | |
May 12, 2019 | Jan. 24, 2019 | |
2019 Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Additional number of shares authorized | 17,500,000 | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Additional number of shares authorized | 10,000,000 | |
Number of shares available to be granted | 15,649,000 | |
Time-based RSUs awards outstanding | 6,307,000 | |
Performance-based RSUs awards outstanding | 78,000 | |
Outstanding performance-based RSUs awards granted, subject to achievement of performance targets | 150,000 | |
Unrecognized compensation cost | $ 817 | |
Weighted-average recognition period | 1 year 8 months 12 days | |
Maximum [Member] | 2019 Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available to be granted | 27,800,000 | |
Maximum [Member] | Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available to be granted | 15,885,000 |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans - Summary of RSU Transactions (Details) shares in Thousands | 8 Months Ended |
May 12, 2019$ / sharesshares | |
Number of units | |
Outstanding at September 2, 2018 | shares | 7,578 |
Granted | shares | 2,792 |
Vested and delivered | shares | (3,707) |
Forfeited | shares | (128) |
Outstanding at November 25, 2018 | shares | 6,535 |
Weighted average grant date fair value | |
Outstanding at September 2, 2018 | $ / shares | $ 140.85 |
Granted | $ / shares | 224 |
Vested and delivered | $ / shares | 155.64 |
Forfeited | $ / shares | 163.68 |
Outstanding at November 25, 2018 | $ / shares | $ 167.55 |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 8 Months Ended | ||
May 12, 2019 | May 13, 2018 | May 12, 2019 | May 13, 2018 | |
Stock-based compensation expense before income taxes | $ 93 | $ 85 | $ 482 | $ 431 |
Less recognized income tax benefit | (20) | (19) | (104) | (98) |
Stock-based compensation expense, net of income taxes | $ 73 | $ 66 | $ 378 | $ 333 |
Restricted Stock Units (RSUs) [Member] | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 8 months 12 days |
Income Taxes Income Taxes (Deta
Income Taxes Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 4 Months Ended | 8 Months Ended | 12 Months Ended |
May 12, 2019 | Dec. 31, 2017 | May 12, 2019 | Sep. 01, 2019 | |
Effective Income Tax Rate Reconciliation, Deduction, Amount | $ 73 | $ 165 | ||
Scenario, Plan [Member] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 21.00% | ||
Scenario, Forecast [Member] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 26.80% |
Net Income per Common and Com_3
Net Income per Common and Common Equivalent Share - Schedule of Earnings per Share Effect on Net Income and Weighted Average Number of Dilutive Potential Common Stock (Details) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 8 Months Ended | ||
May 12, 2019 | May 13, 2018 | May 12, 2019 | May 13, 2018 | |
Earnings Per Share [Abstract] | ||||
Net income available to common stockholders used in basic and diluted net income per common share | $ 906 | $ 750 | $ 2,562 | $ 2,091 |
Weighted average number of common shares used in basic net income per common share | 439,859 | 438,740 | 439,767 | 438,576 |
RSUs | 2,783 | 2,975 | 2,798 | 2,807 |
Weighted average number of common shares and dilutive potential of common stock used in diluted net income per share | 442,642 | 441,715 | 442,565 | 441,383 |
Segment Reporting Information b
Segment Reporting Information by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 8 Months Ended | 12 Months Ended | ||
May 12, 2019 | May 13, 2018 | May 12, 2019 | May 13, 2018 | Sep. 02, 2018 | |
Segment Reporting Information [Line Items] | |||||
Total Revenue | $ 34,740 | $ 32,361 | $ 105,205 | $ 97,165 | $ 141,576 |
Operating Income | 1,122 | 1,067 | 3,274 | 3,034 | 4,480 |
Depreciation and amortization | 336 | 327 | 1,019 | 1,006 | 1,437 |
Additions to property and equipment | 672 | 585 | 1,989 | 1,913 | 2,969 |
Net property and equipment | 20,475 | 19,178 | 20,475 | 19,178 | 19,681 |
Total Assets | 43,752 | 39,605 | 43,752 | 39,605 | 40,830 |
Operating Segments [Member] | United States Operations | |||||
Segment Reporting Information [Line Items] | |||||
Total Revenue | 25,536 | 23,475 | 76,958 | 69,975 | 102,286 |
Operating Income | 736 | 682 | 2,108 | 1,818 | 2,787 |
Depreciation and amortization | 260 | 242 | 764 | 756 | 1,078 |
Additions to property and equipment | 500 | 468 | 1,428 | 1,323 | 2,046 |
Net property and equipment | 14,020 | 12,924 | 14,020 | 12,924 | 13,353 |
Total Assets | 30,416 | 27,062 | 30,416 | 27,062 | 28,207 |
Operating Segments [Member] | Canada Operations | |||||
Segment Reporting Information [Line Items] | |||||
Total Revenue | 4,792 | 4,647 | 14,561 | 14,163 | 20,689 |
Operating Income | 213 | 210 | 625 | 652 | 939 |
Depreciation and amortization | 32 | 31 | 100 | 94 | 135 |
Additions to property and equipment | 38 | 42 | 209 | 156 | 268 |
Net property and equipment | 1,917 | 1,829 | 1,917 | 1,829 | 1,900 |
Total Assets | 4,637 | 4,248 | 4,637 | 4,248 | 4,303 |
Operating Segments [Member] | Other International Operations | |||||
Segment Reporting Information [Line Items] | |||||
Total Revenue | 4,412 | 4,239 | 13,686 | 13,027 | 18,601 |
Operating Income | 173 | 175 | 541 | 564 | 754 |
Depreciation and amortization | 44 | 54 | 155 | 156 | 224 |
Additions to property and equipment | 134 | 75 | 352 | 434 | 655 |
Net property and equipment | 4,538 | 4,425 | 4,538 | 4,425 | 4,428 |
Total Assets | $ 8,699 | $ 8,295 | $ 8,699 | $ 8,295 | $ 8,320 |
Segment Reporting Segment Repor
Segment Reporting Segment Reporting Information by Item Category (Details) - USD ($) $ in Millions | 3 Months Ended | 8 Months Ended | ||
May 12, 2019 | May 13, 2018 | May 12, 2019 | May 13, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 34,740 | $ 32,361 | $ 105,205 | $ 97,165 |
Food and Sundries [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 13,524 | 41,131 | ||
Hardlines [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 5,666 | 17,276 | ||
Fresh Food [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 4,568 | 13,551 | ||
Softlines [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 3,413 | 11,760 | ||
Ancillary | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 6,793 | 19,185 | ||
Net sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 33,964 | $ 31,624 | $ 102,903 | $ 95,020 |