Costco Wholesale (COST) 10-Q 18 Dec 09 2010 Q1 Quarterly report Financial data

Statement Of Financial Position

Statement Of Financial Position Classified (USD $)
In Millions	3 Months Ended Nov. 22, 2009	3 Months Ended Aug. 30, 2009
CURRENT ASSETS
Cash and cash equivalents	$3,617	$3,157
Short-term investments	572	570
Receivables, net	849	834
Merchandise inventories	6,223	5,405
Deferred income taxes and other current assets	366	371
Total current assets	11,627	10,337
PROPERTY AND EQUIPMENT
Land	3,358	3,341
Buildings, leasehold and land improvements	8,724	8,453
Equipment and fixtures	3,382	3,265
Construction in progress	244	264
Property, Plant and Equipment, Gross, Total	15,708	15,323
Less accumulated depreciation and amortization	(4,593)	(4,423)
Net property and equipment	11,115	10,900
OTHER ASSETS	736	742
TOTAL ASSETS	23,478	21,979
CURRENT LIABILITIES
Short-term borrowings	30	16
Accounts payable	6,317	5,450
Accrued salaries and benefits	1,450	1,418
Accrued sales and other taxes	326	302
Deferred membership fees	883	824
Current portion of long-term debt	50	80
Other current liabilities	1,229	1,191
Total current liabilities	10,285	9,281
LONG-TERM DEBT, excluding current portion	2,135	2,130
DEFERRED INCOME TAXES AND OTHER LIABILITIES	627	464
Total liabilities	13,047	11,875
COMMITMENTS AND CONTINGENCIES	-	-
EQUITY
Preferred stock $.005 par value; 100,000,000 shares authorized; no shares issued and outstanding	0	0
Common stock $.005 par value; 900,000,000 shares authorized; 439,325,000 and 435,974,000 shares issued and outstanding	2	2
Additional paid-in capital	3,905	3,811
Accumulated other comprehensive income	150	110
Retained earnings	6,288	6,101
Total Costco stockholders' equity	10,345	10,024
Noncontrolling interests	86	80
Total equity	10,431	10,104
TOTAL LIABILITIES AND EQUITY	$23,478	$21,979

1_Statement Of Financial Positi

Statement Of Financial Position Classified (Parenthetical) (USD $)
	Nov. 22, 2009	Aug. 30, 2009
Preferred stock, par value	0.005	0.005
Preferred stock, shares authorized	100,000,000	100,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	0.005	0.005
Common stock, shares authorized	900,000,000	900,000,000
Common stock, shares issued	439,325,000	435,974,000
Common stock, shares outstanding	439,325,000	435,974,000

Statement Of Income Alternative

Statement Of Income Alternative (USD $)
In Millions, except Share data in Thousands	3 Months Ended Nov. 22, 2009	3 Months Ended Nov. 23, 2008
REVENUE
Net sales	$16,922	$16,036
Membership fees	377	359
Total revenue	17,299	16,395
OPERATING EXPENSES
Merchandise costs	15,081	14,276
Selling, general and administrative	1,777	1,677
Preopening expenses	11	13
Provision for impaired assets and closing costs, net	2	7
Operating income	428	422
OTHER INCOME (EXPENSE)
Interest expense	(24)	(25)
Interest income and other, net	18	21
INCOME BEFORE INCOME TAXES	422	418
Provision for income taxes	152	152
Net income including noncontrolling interests	270	266
Net income attributable to noncontrolling interests	(4)	(3)
NET INCOME ATTRIBUTABLE TO COSTCO	$266	$263
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:
Basic	0.61	0.61
Diluted	0.6	0.6
Shares used in calculation (000's)
Basic	437,173	432,451
Diluted	444,849	440,533
Dividends per share	0.18	0.16

Statement Of Cash Flows Indirec

Statement Of Cash Flows Indirect (USD $)
In Millions	3 Months Ended Nov. 22, 2009	3 Months Ended Nov. 23, 2008
CASH FLOWS FROM OPERATING ACTIVITIES
Net income including noncontrolling interests	$270	$266
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities:
Depreciation and amortization	184	155
Stock-based compensation	52	44
Undistributed equity earnings in joint ventures	(8)	(6)
Excess tax benefit on stock-based awards	(5)	(2)
Other non-cash items, net	(3)	35
Deferred income taxes	(2)	3
Change in receivables, other current assets, deferred membership fees, accrued and other current liabilities	187	(191)
Increase in merchandise inventories	(795)	(1,096)
Increase in accounts payable	871	777
Net cash provided by (used in) operating activities	751	(15)
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment, net of $41 and $3 of non-cash capital expenditures in the first fiscal quarters of 2010 and 2009, respectively	(313)	(375)
Proceeds from the sale of property and equipment	1	0
Purchases of short-term investments	(334)	(643)
Maturities of short-term investments	308	667
Sales of investments	34	50
Other investing items, net	8	(1)
Net cash used in investing activities	(296)	(302)
CASH FLOWS FROM FINANCING ACTIVITIES
Change in bank checks outstanding	16	25
Repayments of short-term borrowings	(33)	(1,006)
Proceeds from short-term borrowings	46	1,021
Repayments of long-term debt	(35)	(1)
Cash dividend payments	(79)	0
Excess tax benefit on stock-based awards	5	2
Proceeds from stock-based awards, net	36	2
Repurchases of common stock	0	(67)
Other financing activities	39	0
Net cash used in financing activities	(5)	(24)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	10	(63)
Net increase (decrease) in cash and cash equivalents	460	(404)
CASH AND CASH EQUIVALENTS BEGINNING OF YEAR	3,157	2,619
CASH AND CASH EQUIVALENTS END OF PERIOD	3,617	2,215
Cash paid during the period for:
Interest (reduced by $4 and $3 interest capitalized in the first fiscal quarters of 2010 and 2009, respectively)	53	53
Income taxes	41	28
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES:
Cash dividend declared, but not yet paid	0	69
Property acquired under a capital lease	$80	$0

2_Statement Of Cash Flows Indir

Statement Of Cash Flows Indirect (Parenthetical) (USD $)
In Millions	3 Months Ended Nov. 22, 2009	3 Months Ended Nov. 23, 2008
Additions to property and equipment, non-cash capital expenditures	$41	$3
Interest, interest capitalized	$4	$3

Note 1-Summary of Significant P

Note 1-Summary of Significant Policies
	3 Months Ended Nov. 22, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 1-Summary of Significant Policies	Note 1Summary of Significant Policies Basis of Presentation The accompanying 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 which 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 (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 Companys annual report filed on Form 10-K for the fiscal year ended August30, 2009. The condensed consolidated financial statements include the accounts of Costco Wholesale Corporation, a Washington corporation, its wholly-owned subsidiaries, and subsidiaries in which it has a controlling interest (Costco or the Company). All material inter-company transactions between the Company and its subsidiaries have been eliminated in consolidation. Costco operates membership warehouses that offer low prices on a limited selection of nationally branded and select private label products in a wide range of merchandise categories in no-frills, self-service facilities. At November22, 2009, Costco operated 533 warehouses in 40 U.S. states and Puerto Rico (412 locations), nine Canadian provinces (77 locations), the United Kingdom (21 locations), Japan (nine locations), Korea (seven locations), Taiwan (six locations), and Australia (one location), as well as 32 locations in Mexico, through a 50%-owned joint venture. Reclassifications Certain reclassifications have been made to prior fiscal year amounts or balances to conform to the presentation in the current fiscal year. Additionally, as a result of the application of a new accounting pronouncement for noncontrolling interests in consolidated entities, as discussed below in Recently Adopted Accounting Pronouncements, the Company: Reclassified to noncontrolling interests, a component of total equity, $80 at August 31, 2009, which was previously reported as minority interest on our consolidated balance sheet, after the correction of an immaterial error of $6 relating to the non-controlling interest component of accumulated other comprehensive income. A new subtotal, total Costco stockholders equity, refers to the equity attributable to stockholders of Costco; Reported as separate captions within our condensed consolidated statements of income, net income including noncontrolling interests, net income attributable to noncontrolling interests and net income attributable to Costco; and Utilized net income including noncontrolling interests, as the starting point on our condensed consolidated statements of cash flows in order to reconcile net income including noncontrolling interests to cash flows from operating activities. These reclassifications did not have a

Note 2-Investments

Note 2-Investments
	3 Months Ended Nov. 22, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 2-Investments	Note 2Investments The Companys major categories of investments have not changed from the annual reporting period ended August30, 2009. The Companys investments at November22, 2009, and August30, 2009, were as follows: November22, 2009: Cost Basis Unrealized Gains Unrealized Losses Recorded Basis Balance Sheet Classification Short-term Investments Other Assets Available-for-sale: Money market mutual funds $ 14 $ $ $ 14 $ 14 $ U.S. government and agency securities 410 4 414 414 Corporate notes and bonds 31 1 (1 ) 31 31 Asset and mortgage-backed securities 37 2 39 38 1 Total available-for-sale 492 7 (1 ) 498 497 1 Held-to-maturity: Certificates of deposit 75 75 75 Total investments $ 567 $ 7 $ (1 ) $ 573 $ 572 $ 1 Cost Basis Unrealized Gains Unrealized Losses Recorded Basis Balance Sheet Classification August30, 2009: Short-term Investments Other Assets Available-for-sale: Money market mutual funds $ 13 $ $ $ 13 $ 13 $ U.S. government and agency securities 400 3 403 403 Corporate notes and bonds 49 1 (1 ) 49 49 Asset and mortgage-backed securities 48 1 49 46 3 Total available-for-sale 510 5 (1 ) 514 511 3 Held-to-maturity: Certificates of deposit 59 59 59 Total investments $ 569 $ 5 $ (1 ) $ 573 $ 570 $ 3 The proceeds and gross realized gains and losses from sales of available-for-sale securities during the first quarter of 2010 and 2009 are provided in the following table: Quarter Ended November22, 2009 November23, 2008 Proceeds $ 34 $ 50 Realized gains $ 2 $ 1 Realized losses $ $ The following tables present the length of time available-for-sale securities were in continuous unrealized loss positions, but were not deemed to be other-than-temporarily impaired: Lessthan12Months Greaterthanor Equalto12Months November22, 2009 Gross Unrealized Holding Losses Fair Value Gross Unrealized Holding Losses Fair Value U.S. government and agency $ $ $ $ Corporate notes and bonds (1 ) 6 Asset and mortgage-backed securities $ $ $ (1 ) $ 6 August30, 2009 U.S. government and agency $ $ $ $ Corporate notes and bonds

Note 3-Fair Value Measurement

Note 3-Fair Value Measurement
	3 Months Ended Nov. 22, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 3-Fair Value Measurement	Note 3Fair Value Measurement The Company follows the authoritative guidance for fair value measurements relating to financial and nonfinancial assets and liabilities including presentation of required disclosures, in its condensed consolidated financial statements. This guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The guidance also establishes a fair value hierarchy, which requires maximizing the use of observable inputs when measuring fair value. The three levels of inputs that may be used are: Level1: Quoted market prices in active markets for identical assets or liabilities. Level2: Observable market based inputs or unobservable inputs that are corroborated by market data. Level3: Significant unobservable inputs that are not corroborated by market data. There have been no material changes to the valuations techniques utilized in the fair value measurement of assets and liabilities presented on the Companys balance sheet as disclosed in the Companys Form 10-K for the fiscal year ended August30, 2009. Assets and Liabilities Measured at Fair Value on a Recurring Basis The table below presents information as of November22, 2009, about the Companys financial assets and financial liabilities that are measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value: Level1 Level2 Level3 Assets / (liabilities): Money market mutual funds $ 1,747 $ $ Investment in U.S. government and agency securities 414 Investment in corporate notes and bonds 26 5 Investment in asset and mortgage-backed securities 37 2 Forward foreign exchange contracts, in asset position (1) 1 Forward foreign exchange contracts, in liability position (1) (3 ) Total $ 1,747 $ 475 $ 7 (1) See Note 1 for additional information on derivative instruments. The tables below provide a summary of the changes in fair value, including net transfers, of all financial assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the quarters ended November22, 2009 and November23, 2008: QuarterEndedNovember22,2009 Investment incorporate notes and bonds Investment inassetand mortgage- backed securities Total Balance, beginning of period $ 14 $ 12 $ 26 Total realized and unrealized gains: Included in other comprehensive income Included in interest income and other, net 2 2 Purchases, issuances, and (settlements) (9 ) (12 ) (21 ) Net transfers in (out) Balance, end of period $ 5 $ 2 $ 7 Change in unrealized gains (losses) included in interest i

Note 4-Debt

Note 4-Debt
	3 Months Ended Nov. 22, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 4-Debt	Note 4Debt At November22, 2009, the Company was in compliance with all restrictive covenants of its short-term borrowings. In November 2009, the Companys wholly-owned Japanese subsidiary paid the outstanding principal and interest balances related to the 0.88% Promissory notes due November 2009, originally issued in November 2002. The Company does not intend to enter into a refinancing agreement as a result of this note payment. During the first quarter of 2010 and 2009, a nominal amount of the face value of the Companys 3.5% Zero Coupon Convertible Subordinated Notes (Zero Coupon Notes) was converted by note holders into 9,000 and 7,000 shares of common stock, respectively. These amounts differ from those in the supplemental disclosure of non-cash items in the statement of cash flows due to the related discount and issuance costs. The carrying value and estimated fair value of long-term debt consisted of the following: November22, 2009 August30, 2009 Carrying Value Fair Value(1) Carrying Value Fair Value (1) 5.50% Senior Notes due March 2017 (2017 Senior Notes) $ 1,096 $ 1,216 $ 1,096 $ 1,213 5.30% Senior Notes due March 2012 (2012 Senior Notes) 899 976 899 973 Zero Coupon Notes 32 56 32 44 Other long-term debt 158 159 183 185 Total $ 2,185 $ 2,407 $ 2,210 $ 2,415 (1) The fair value of the Companys long-term debt is based on quoted market prices for the identical debt instrument, as applicable.

Note 5-Equity and Comprehensive

Note 5-Equity and Comprehensive Income (Loss)
	3 Months Ended Nov. 22, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 5-Equity and Comprehensive Income (Loss)	Note 5Equity and Comprehensive Income (Loss) Dividends The Companys current quarterly cash dividend rate is $0.18 per share. On October8, 2009, the Board of Directors declared a quarterly cash dividend of $0.18 per share to shareholders of record on October23, 2009. The dividend was paid to shareholders on November6, 2009. Payment of future dividends is subject to declaration by the Board of Directors. Factors considered in determining the size of the dividends are profitability and expected capital needs of the Company. The Company presently expects to continue to pay dividends on a quarterly basis. Stock Repurchase Programs The Companys stock repurchase activity during the first quarter of 2010 and 2009 is summarized in the following table: Shares Repurchased (000s) Average Priceper Share TotalCost 2010 $ $ 2009 845 $ 65.32 $ 55 These amounts differ from the stock repurchase balances in the condensed consolidated statements of cash flows to the extent that repurchases had not settled at the end of the quarter. The remaining amount available for stock repurchases under the approved plans was $2,002 at November22, 2009. Purchases are made from time-to-time as conditions warrant in the open market or in block purchases, and pursuant to share repurchase plans under SEC Rule 10b5-1. Repurchased shares are retired. From time to time, the Company purchases shares in the open market for the purpose of gifting common stock rewards to employees. In the first quarter of 2010, the Company purchased 8,000 shares, at an average per share price of $58.51. This program is separate from the Companys publicly announced stock repurchase program discussed above. Components of Equity and Comprehensive Income (Loss) The Company reports its noncontrolling interests in consolidated subsidiaries as a component of equity separate from the Companys equity. The accumulated other comprehensive income (loss) consists of foreign currency translation adjustments and unrealized gains and losses on investments and their related tax effects. The following table shows the changes in equity attributable to Costco and the noncontrolling interests of subsidiaries in which the Company has a majority, but not total ownership interest: Attributable to Costco Noncontrolling Interests Total Equity Equity at August30, 2009 $ 10,024 $ 80 $ 10,104 Comprehensive income: Foreign currency translation adjustment and other 40 2 42 Net income 266 4 270 Total comprehensive income 306 6 312 Stock options exercised and vesting of RSUs, including income tax 42 42 Stock-based compensation 52 52 Cash dividends (79 ) (79 ) Equity at November22, 2009 $ 10,345 $ 86 $ 10,431 Attributable to Costco Noncontrolling Interests Total Equity Equity at August31, 2008 $ 9,194 $ 80 $ 9,274 Comprehensive loss:

Note 6-Stock-Based Compensation

Note 6-Stock-Based Compensation Plans
	3 Months Ended Nov. 22, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 6-Stock-Based Compensation Plans	Note 6Stock-Based Compensation Plans The Company grants restricted stock units (RSUs) under the Fourth Restated 2002 Stock Incentive Plan (Fourth Restated 2002 Plan) as amended by the Board of Directors in July 2008. Under the Fourth Restated 2002 Plan, RSUs are subject, upon certain terminations of employment, to quarterly, as opposed to daily vesting. Additionally, employees who attain twenty-five or more years of service with the Company will receive shares under accelerated vesting provisions on the annual vesting date rather than upon qualified retirement. The first grant impacted by these amendments occurred in the first quarter of fiscal 2009. Previously awarded RSUs continue to daily vest upon certain terminations of employment. Prior to June 2006, the Company granted stock options and not RSUs. Each share issued in respect of stock units is counted as 1.75 shares toward the limit of shares made available under the Fourth Restated 2002 Plan. The Company issues new shares of common stock upon exercise of stock options and vesting of RSUs. Summary of Stock Option Activity The following table summarizes stock option transactions during the first quarter of 2010: Shares (in000s) Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in (years) Aggregate Intrinsic Value (1) Outstanding at August30, 2009 18,742 $ 40.17 Granted Exercised (1,722 ) 42.01 Forfeited or expired (3 ) 44.84 Outstanding at November22, 2009 (2) 17,017 $ 39.98 3.82 $ 342 Exercisable at November22, 2009 15,236 $ 39.51 3.63 $ 313 (1) The difference between the original exercise price and market value of common stock at November22, 2009. (2) Stock options generally vest over five years and have a ten-year term. The tax benefits realized and intrinsic value related to total stock options exercised during the first quarter of 2010 and 2009 are provided in the following table: Quarter Ended November22, 2009 November23, 2008 Actual tax benefit realized for stock options exercised $ 10 $ 3 Intrinsic value of stock options exercised (1) $ 30 $ 8 (1) The difference between the original exercise price and market value of common stock measured at each individual exercise date. Summary of Restricted Stock Unit Activity RSUs granted to employees and to non-employee directors generally vest over five years and three years, respectively; however, the Company provides for accelerated vesting for employees that have attained twenty-five or more years of service with the Company. Recipients are not entitled to vote or receive dividends on unvested shares. At November22, 2009, 1,954,000 RSUs were available to be granted to eligible employees and directors under the Fourth Restated 2002 Plan. The following awards were outstanding at the end of the first quarter of 2010: 8,918,000 shares of time-based RSUs, in which the restrictions lapse upon the achievement of continued empl

Note 7-Net Income Per Common an

Note 7-Net Income Per Common and Common Equivalent Share
	3 Months Ended Nov. 22, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 7-Net Income Per Common and Common Equivalent Share	Note 7Net Income Per Common and Common Equivalent Share The following table shows the amounts used in computing net income attributable to Costco per share and the effect on income and the weighted average number of shares of dilutive potential common stock (shares in 000s): Quarter Ended November22, 2009 November23, 2008 Net income available to common stockholders used in basic and diluted net income per common share attributable to Costco $ 266 $ 263 Weighted average number of common shares used in basic net income per common share attributable to Costco 437,173 432,451 Stock options and RSUs 6,716 6,562 Conversion of convertible notes 960 1,520 Weighted number of common shares and dilutive potential common stock used in diluted net income attributable to Costco 444,849 440,533 Anti-dilutive stock options and RSUs 2,339 5,019

Note 8-Commitments and Continge

Note 8-Commitments and Contingencies
	3 Months Ended Nov. 22, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 8-Commitments and Contingencies	Note 8Commitments and Contingencies Legal Proceedings The Company is involved from time to time in claims, proceedings and litigation arising from its business and property ownership. The Company is a defendant in the following matters, among others: Cases purportedly brought as class actions on behalf of certain present and former Costco managers in California, in which plaintiffs principally allege that they have not been properly compensated for overtime work. Scott M. Williams v. Costco Wholesale Corp., United States District Court (San Diego), Case No.02-CV-2003 NAJ (JFS); Greg Randall v. Costco Wholesale Corp., Superior Court for the County of Los Angeles, Case No. BC-296369. On February21, 2008 the court in Randall tentatively granted in part and denied in part plaintiffs motion for class certification. That order was finalized by the court on May13, 2008. The parties in Randall have agreed on a partial settlement of the action (resolving all claims except for the miscalculation claim), requiring a payment of up to $16 by the Company, which was substantially paid in the first quarter of 2010. The miscalculation claim from the Randall case was refiled as a separate action by stipulation, alleging that the Company miscalculated the rates of pay for all department and ancillary managers in California in violation of Labor Code Section515(d). On October2, 2009, the court granted the Companys motion for summary judgment. Terry Head v. Costco Wholesale Corp., Superior Court for the County of Los Angeles, Case No. BC-409805. In the Williams action, the parties have achieved a settlement, subject to court approval. On December26, 2007, another putative class action was filed, also principally alleging denial of overtime compensation. The complaint alleges misclassification of certain California managers. On May15, 2008, the court partially granted the Companys motion to dismiss the complaint, dismissing certain claims and refusing to expand the statute of limitations for the remaining claims. An answer to the complaint was filed on May27, 2008. Plaintiffs class certification motion is pending. Jesse Drenckhahn v. Costco Wholesale Corp., United States District Court (Los Angeles), Case No. CV08-1408 FMC (JMJ). A case purportedly brought as a class action on behalf of present and former hourly employees in California, in which the plaintiff principally alleges that the Companys routine closing procedures and security checks cause employees to incur delays that qualify as uncompensated working time and that deny them statutorily guaranteed meal periods and rest breaks. The complaint was filed on October2, 2008, and the Companys motion to dismiss was partially granted. Discovery is ongoing. Anthony Castaneda v. Costco Wholesale Corp., Superior Court for the County of Los Angeles, Case No. BC-399302. A similar purported class action was filed on May15, 2009, on behalf of present and former hourly employees in California, claiming denial of wages and false imprisonment during the post-closing jewelry and till pull, when security measures allegedly cause employees to be locked in the warehouses. Mary Pytelewski v. Costco Wholesale Corp.,

Note 9-Segment Reporting

Note 9-Segment Reporting
	3 Months Ended Nov. 22, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 9-Segment Reporting	Note 9Segment Reporting The Company and its subsidiaries are principally engaged in the operation of membership warehouses in the United States, Canada, Japan, Australia, the United Kingdom, and through majority-owned subsidiaries in Taiwan and Korea and through a 50%-owned joint-venture in Mexico. The Companys reportable segments are based on managements organization of the operating segments for making operational decisions and assessments of financial performance, which considers geographic locations. The investment in the Mexico joint-venture is only included in total assets under United States Operations in the table below, as it is accounted for under the equity method and its operations are not consolidated in the Companys financial statements. United States Operations(1) Canadian Operations Other International Operations Total Twelve Weeks Ended November22, 2009 Total revenue $ 13,221 $ 2,655 $ 1,423 $ 17,299 Operating income 266 112 50 428 Depreciation and amortization 144 25 15 184 Capital expenditures, net 243 50 20 313 Property and equipment, net 8,565 1,430 1,120 11,115 Total assets 18,362 2,866 2,250 23,478 Total equity 7,682 1,513 1,236 10,431 Twelve Weeks Ended November23, 2008 Total revenue $ 12,936 $ 2,295 $ 1,164 $ 16,395 Operating income 280 109 33 422 Depreciation and amortization 125 19 11 155 Capital expenditures, net 264 50 61 375 Property and equipment, net 8,145 1,159 888 10,192 Total assets 17,036 2,154 1,807 20,997 Total equity 6,901 1,056 979 8,936 Year Ended August30, 2009 Total revenue $ 56,548 $ 9,737 $ 5,137 $ 71,422 Operating income 1,273 354 150 1,777 Depreciation and amortization 589 90 49 728 Capital expenditures, net 904 135 211 1,250 Property and equipment, net 8,415 1,394 1,091 10,900 Total assets 17,228 2,641 2,110 21,979 Total equity 7,458 1,470 1,176 10,104 The accounting policies of the segments are the same as those described in the notes to the consolidated financial statements included in the Companys annual report filed on Form 10-K for the fiscal year ended August30, 2009, after considering newly adopted accounting pronouncements described elsewhere herein. All inter-segment net sales and expenses are immaterial and have been eliminated in computing total revenue and operating income. (1) Certain home office operating expenses are incurred on behalf of the Companys Canadian and other international operations, but are included in the United States operations above because those costs are not allocated internally and generally come under the responsibility of the Companys United States management team.

Note 10-Subsequent Events

Note 10-Subsequent Events
	3 Months Ended Nov. 22, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 10-Subsequent Events	Note 10Subsequent Events The Company evaluated subsequent events and transactions for potential recognition or disclosure in the financials statements through December18, 2009, the day the condensed consolidated financial statements were issued.

Document Information

Document Information
	3 Months Ended Nov. 22, 2009 USD / shares
Document Information [Text Block]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	2009-11-22

Entity Information

Entity Information (USD $)
	3 Months Ended Nov. 22, 2009	Dec. 11, 2009
Entity [Text Block]
Trading Symbol	COST
Entity Registrant Name	COSTCO WHOLESALE CORP /NEW
Entity Central Index Key	0000909832
Current Fiscal Year End Date	--08-30
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		439,333,060