COSTCO WHOLESALE CORP /NEW, 10-K filed on 10/8/2025
Annual Report
v3.25.2
Cover - USD ($)
$ in Billions
 12 Months Ended
Aug. 31, 2025
Sep. 30, 2025
Feb. 16, 2025
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Aug. 31, 2025    
Document Fiscal Year Focus 2025    
Document Transition Report false    
Entity File Number 0-20355    
Entity Registrant Name COSTCO WHOLESALE CORP /NEW    
Entity Incorporation, State or Country Code WA    
Entity Tax Identification Number 91-1223280    
Entity Address, Address Line One 999 Lake Drive    
Entity Address, City or Town Issaquah    
Entity Address, State or Province WA    
Entity Address, Postal Zip Code 98027    
City Area Code 425    
Local Phone Number 313-8100    
Title of 12(b) Security Common Stock, $.005 Par Value    
Trading Symbol COST    
Security Exchange Name NASDAQ    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 475.2
Entity Common Stock, Shares Outstanding   443,179,176  
Amendment Flag false    
Document Fiscal Period Focus FY    
Entity Central Index Key 0000909832    
Current Fiscal Year End Date --08-31    
Documents Incorporated by Reference
Portions of the registrant's Proxy Statement for the Annual Meeting of Shareholders to be held on January 15, 2026, are incorporated by reference into Part III of this Form 10-K.
    
v3.25.2
Audit Information
 12 Months Ended
Aug. 31, 2025
Auditor Information [Abstract]  
Auditor Name KPMG LLP
Auditor Location Seattle, WA
Auditor Firm ID 185
v3.25.2
Consolidated Statements Of Income - USD ($)
shares in Thousands, $ in Millions
 12 Months Ended
Aug. 31, 2025
Sep. 01, 2024
Sep. 03, 2023
REVENUE      
Total revenue $ 275,235 $ 254,453 $ 242,290
OPERATING EXPENSES      
Merchandise costs 239,886 222,358 212,586
Selling, general and administrative 24,966 22,810 21,590
Operating income 10,383 9,285 8,114
OTHER INCOME (EXPENSE)      
Interest expense (154) (169) (160)
Interest income and other, net 589 624 533
INCOME BEFORE INCOME TAXES 10,818 9,740 8,487
Provision for income taxes 2,719 2,373 2,195
NET INCOME $ 8,099 $ 7,367 $ 6,292
NET INCOME PER COMMON SHARE:      
Basic $ 18.24 $ 16.59 $ 14.18
Diluted $ 18.21 $ 16.56 $ 14.16
Shares used in calculation (000's)      
Basic 443,985 443,914 443,854
Diluted 444,803 444,759 444,452
Net sales      
REVENUE      
Total revenue $ 269,912 $ 249,625 $ 237,710
Membership fees      
REVENUE      
Total revenue $ 5,323 $ 4,828 $ 4,580
v3.25.2
Consolidated Statements Of Comprehensive Income - USD ($)
$ in Millions
 12 Months Ended
Aug. 31, 2025
Sep. 01, 2024
Sep. 03, 2023
Statement of Comprehensive Income [Abstract]      
NET INCOME $ 8,099 $ 7,367 $ 6,292
Foreign-currency translation adjustment and other, net 58 (23) 24
COMPREHENSIVE INCOME $ 8,157 $ 7,344 $ 6,316
v3.25.2
Consolidated Balance Sheets - USD ($)
$ in Millions
Aug. 31, 2025
Sep. 01, 2024
CURRENT ASSETS    
Cash and cash equivalents $ 14,161 $ 9,906
Short-term investments 1,123 1,238
Receivables, net 3,203 2,721
Merchandise inventories 18,116 18,647
Other current assets 1,777 1,734
Total current assets 38,380 34,246
OTHER ASSETS    
Property and equipment, net 31,909 29,032
Operating lease right-of-use assets 2,725 2,617
Other long-term assets 4,085 3,936
Total assets 77,099 69,831
CURRENT LIABILITIES    
Accounts payable 19,783 19,421
Accrued salaries and benefits 5,205 4,794
Accrued member rewards 2,677 2,435
Deferred membership fees 2,854 2,501
Other current liabilities 6,589 6,313
Total current liabilities 37,108 35,464
OTHER LIABILITIES    
Long-term debt, excluding current portion 5,713 5,794
Long-term operating lease liabilities 2,460 2,375
Other long-term liabilities 2,654 2,576
TOTAL LIABILITIES 47,935 46,209
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; 443,237,000 and 442,126,000 shares issued and outstanding 2 2
Additional paid-in capital 8,282 7,829
Accumulated other comprehensive loss (1,770) (1,828)
Retained earnings 22,650 17,619
TOTAL EQUITY 29,164 23,622
TOTAL LIABILITIES AND EQUITY $ 77,099 $ 69,831
v3.25.2
Consolidated Balance Sheets (Parenthetical) - $ / shares
Aug. 31, 2025
Sep. 01, 2024
Statement of Financial Position [Abstract]    
Preferred stock, par value (in dollars per share) $ 0.005 $ 0.005
Preferred stock, shares authorized 100,000,000 100,000,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, par value (in dollars per share) $ 0.005 $ 0.005
Common stock, shares authorized 900,000,000 900,000,000
Common stock, shares issued 443,237,000 443,126,000
Common stock, shares outstanding 443,237,000 443,126,000
v3.25.2
Consolidated Statements of Equity - USD ($)
shares in Thousands, $ in Millions
Total
Total Costco Stockholders' Equity
Common Stock
Additional Paid-in Capital
Accumulated Other Comprehensive Income (Loss)
Retained Earnings
Noncontrolling Interests
Common stock at beginning of period (shares) at Aug. 28, 2022     442,664        
Equity at beginning of period at Aug. 28, 2022 $ 20,647 $ 20,642 $ 2 $ 6,884 $ (1,829) $ 15,585 $ 5
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income 6,292 6,292       6,292 0
Foreign-currency translation adjustment and other, net 24 24     24   0
Stock-based compensation 778 778   778      
Release of vested RSUs, including tax effects (shares)     1,470        
Release of vested RSUs, including tax effects $ (303) (303)   (303)      
Repurchases of common stock, shares (1,341)   (1,341)        
Repurchases of common stock, value $ (677) (677)   (24)   (653)  
Stockholders' equity, other       5     (5)
Cash dividends declared and other (1,703) (1,698)       (1,703)  
Common stock at end of period (shares) at Sep. 03, 2023     442,793        
Equity at end of period at Sep. 03, 2023 25,058 25,058 $ 2 7,340 (1,805) 19,521 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income 7,367 7,367       7,367  
Foreign-currency translation adjustment and other, net (23) (23)     (23)    
Stock-based compensation 822 822   822      
Release of vested RSUs, including tax effects (shares)     1,337        
Release of vested RSUs, including tax effects $ (315) (315)   (315)      
Repurchases of common stock, shares (1,004)   (1,004)        
Repurchases of common stock, value $ (698) (698)   (18)   (680)  
Stockholders' equity, other             0
Cash dividends declared and other $ (8,589) (8,589)       (8,589)  
Common stock at end of period (shares) at Sep. 01, 2024 443,126   443,126        
Equity at end of period at Sep. 01, 2024 $ 23,622 23,622 $ 2 7,829 (1,828) 17,619 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income 8,099 8,099       8,099  
Foreign-currency translation adjustment and other, net 58 58     58    
Stock-based compensation 864 864   864      
Release of vested RSUs, including tax effects (shares)     1,054        
Release of vested RSUs, including tax effects $ (393) (393)   (393)      
Repurchases of common stock, shares (943)   (943)        
Repurchases of common stock, value $ (903) (903)   (18)   (885)  
Cash dividends declared and other $ (2,183) (2,183)       (2,183)  
Common stock at end of period (shares) at Aug. 31, 2025 443,237   443,237        
Equity at end of period at Aug. 31, 2025 $ 29,164 $ 29,164 $ 2 $ 8,282 $ (1,770) $ 22,650 $ 0
v3.25.2
Consolidated Statements Of Cash Flows - USD ($)
$ in Millions
 12 Months Ended
Aug. 31, 2025
Sep. 01, 2024
Sep. 03, 2023
CASH FLOWS FROM OPERATING ACTIVITIES      
NET INCOME $ 8,099 $ 7,367 $ 6,292
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities:      
Depreciation and amortization 2,426 2,237 2,077
Non-cash lease expense 303 315 412
Stock-based compensation 860 818 774
Impairment of assets and other non-cash operating activities, net 117 9 (495)
Changes in operating assets and liabilities:      
Merchandise inventories 559 (2,068) 1,228
Accounts payable 404 1,938 (382)
Other operating assets and liabilities, net 801 741 172
Net cash provided by operating activities 13,335 11,339 11,068
CASH FLOWS FROM INVESTING ACTIVITIES      
Additions to property and equipment (5,498) (4,710) (4,323)
Purchases of short-term investments (1,028) (1,470) (1,622)
Maturities of short-term investments 1,141 1,790 937
Other investing activities, net 74 (19) 36
Net cash used in investing activities (5,311) (4,409) (4,972)
CASH FLOWS FROM FINANCING ACTIVITIES      
Repayments of short-term borrowings (862) (920) (935)
Proceeds from short-term borrowings 816 928 917
Repayments of long-term debt (103) (1,077) (75)
Proceeds from issuance of long-term debt 0 498 0
Tax withholdings on stock-based awards (393) (315) (303)
Repurchases of common stock (903) (700) (676)
Cash dividend payments (2,183) (9,041) (1,251)
Financing lease payments and other financing activities, net (147) (137) (291)
Net cash used in financing activities (3,775) (10,764) (2,614)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 6 40 15
Net change in cash and cash equivalents 4,255 (3,794) 3,497
CASH AND CASH EQUIVALENTS BEGINNING OF YEAR 9,906 13,700 10,203
CASH AND CASH EQUIVALENTS END OF YEAR 14,161 9,906 13,700
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:      
Interest 106 129 125
Income taxes paid, net 2,917 2,319 2,234
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES:      
Cash dividend declared, but not yet paid 0 0 452
Capital expenditures included in liabilities $ 193 $ 203 $ 170
v3.25.2
Summary of Significant Accounting Policies
 12 Months Ended
Aug. 31, 2025
Accounting Policies [Abstract]  
Significant Accounting 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 and e-commerce sites 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. At August 31, 2025, Costco operated 914 warehouses worldwide: 629 in the United States (U.S.) located in 47 states, Washington, D.C., and Puerto Rico, 110 in Canada, 42 in Mexico, 37 in Japan, 29 in the U.K., 20 in Korea, 15 in Australia, 14 in Taiwan, seven in China, five in Spain, two in France, two in Sweden, and one each in Iceland and New Zealand. The Company operated e-commerce sites in the U.S., Canada, the U.K., Mexico, Korea, Taiwan, Japan, and Australia.
Basis of Presentation
The consolidated financial statements include the accounts of Costco and its wholly-owned subsidiaries. All material inter-company transactions among the Company and its consolidated subsidiaries have been eliminated in consolidation.
Fiscal Year End
The Company operates on a 52/53-week fiscal year basis with the year ending on the Sunday closest to August 31. References to 2025 and 2024 relate to the 52-week fiscal years ended August 31, 2025, and September 1, 2024. References to 2023 relate to the 53-week fiscal year ended September 3, 2023.
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. These estimates and assumptions take into account historical and forward-looking factors that the Company believes are reasonable. Actual results could differ from those estimates and assumptions.
Reclassification
Reclassifications were made to the 2024 consolidated balance sheet to conform with current year presentation.
Cash and Cash Equivalents
The Company considers as cash and cash equivalents all cash on deposit, highly liquid investments with a maturity of three months or less at the date of purchase, and proceeds due from credit and debit card transactions with settlement terms of up to four days. Credit and debit card receivables were $2,670 and $2,519 at the end of 2025 and 2024.
Short-Term Investments
Short-term investments generally consist of debt securities (U.S. government and agency securities), with maturities at the date of purchase of three months to five years. Investments with maturities beyond five years may be classified, based on the Company’s determination, as short-term based on their highly liquid nature and because they represent the investment of cash that is available for current operations.
Short-term investments classified as available-for-sale are recorded at fair value using the specific identification method with the unrealized gains and losses reflected in accumulated other comprehensive income (loss) until realized. Realized gains and losses from the sale of available-for-sale securities, if any, are determined on a specific identification basis and are recorded in interest income and other, net in the consolidated statements of income. These available-for-sale investments have a low level of inherent credit risk given they are issued by the U.S. government and agencies. Changes in their fair value are primarily attributable to changes in interest rates and market liquidity. Short-term investments classified as held-to-maturity are financial instruments that the Company has the intent and ability to hold to maturity and are reported net of any related amortization and are not remeasured to fair value on a recurring basis.
The Company periodically evaluates unrealized losses in its investment securities for credit impairment, using both qualitative and quantitative criteria. In the event a security is deemed to be impaired as the result of a credit loss, the Company recognizes the loss in interest income and other, net in the consolidated statements of income.
Fair Value of Financial Instruments
The Company accounts for certain assets and liabilities at fair value. The carrying value of the Company’s financial instruments, including cash and cash equivalents, receivables and accounts payable, approximate fair value due to their short-term nature or variable interest rates. See Notes 2, 3, and 4 for the carrying value and fair value of the Company’s investments, derivative instruments, and fixed-rate debt.
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated by applying a fair value hierarchy, which requires maximizing the use of observable inputs when measuring fair value. The three levels of inputs are:
Level 1: Quoted market prices in active markets for identical assets or liabilities.
Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market
data.
Level 3: Significant unobservable inputs that are not corroborated by market data.
The Company’s valuation techniques used to measure the fair value of money market mutual funds, which are included in cash and cash equivalents, are based on quoted market prices, such as quoted net asset values published by the fund as supported in an active market. Valuation methodologies used to measure the fair value of all other non-derivative financial instruments are based on independent external valuation information. The pricing process uses data from a variety of independent external valuation information providers, including trades, bid price or spread, two-sided markets, quotes, benchmark curves including but not limited to treasury benchmarks, Secured Overnight Financing Rate and swap curves, discount rates, and market data feeds. All are observable in the market or can be derived principally from or corroborated by observable market data. The Company reports transfers in and out of Levels 1, 2, and 3, as applicable, using the fair value of the individual securities as of the beginning of the reporting period in which the transfer(s) occurred.
Current financial liabilities have fair values that approximate their carrying values. Long-term financial liabilities include the Company's long-term debt, which are recorded on the balance sheet at issuance price and adjusted for unamortized discounts or premiums and debt issuance costs. Discounts, premiums and debt issuance costs are amortized to interest expense over the term of the loan. The estimated fair value of the Company's long-term debt is based primarily on reported market values, recently completed market transactions, and estimates based upon interest rates, maturities, and credit.
Receivables, Net
Receivables consist primarily of vendor, credit card incentive, reinsurance, third-party pharmacy, and other receivables. Vendor receivables include discounts, volume rebates, and a variety of other programs. Balances are generally presented on a gross basis, separate from any related payable due. In certain circumstances, these receivables may be settled against the related payable to that vendor, in which case the receivables are presented on a net basis. Reinsurance receivables are held by the Company’s wholly-owned captive insurance subsidiary and primarily represent amounts ceded through reinsurance arrangements gross of the amounts assumed under reinsurance, which are presented within other current liabilities in the consolidated balance sheets. Credit card incentive receivables primarily represent amounts earned under co-branded credit card arrangements. Third-party pharmacy receivables generally relate to amounts due from members’ insurers. Other receivables primarily consist of amounts due from governmental entities, mostly tax-related items.
The valuation allowance related to receivables was immaterial to the Company's consolidated financial statements at the end of 2025 and 2024.
Merchandise Inventories
Merchandise inventories consist of the following:
20252024
United States $12,868 $13,625 
Canada1,907 1,895 
Other International3,341 3,127 
Merchandise inventories$18,116 $18,647 
Merchandise inventories are stated at the lower of cost or market. U.S. merchandise inventories are valued by the cost method of accounting, using the last-in, first-out (LIFO) basis. The Company believes the LIFO method more fairly presents the results of operations by more closely matching current costs with current revenues. The Company records an adjustment each quarter, if necessary, for the projected annual effect of inflation or deflation, and these estimates are adjusted to actual results determined at year-end, after actual inflation or deflation rates and inventory levels have been determined. Due to higher merchandise costs in 2025, a $142 charge was recorded to merchandise costs to increase the cumulative LIFO valuation on merchandise inventories at August 31, 2025. An immaterial LIFO benefit was recorded in 2024 and an immaterial charge was recorded in 2023. Canadian and Other International merchandise inventories are predominantly valued using the cost and retail inventory methods, respectively, using the first-in, first-out (FIFO) basis.
The Company initially provides for estimated inventory losses between physical inventory counts using estimates based on experience. The provision is adjusted to reflect physical inventory counts, which generally occur in the second and fourth fiscal quarters. Inventory cost where appropriate is reduced by estimates of vendor rebates when earned or as the Company progresses towards earning those rebates, provided that they are probable and reasonably estimable.
Property and Equipment, Net
Property and equipment are stated at cost. Depreciation and amortization expense is computed primarily using the straight-line method over estimated useful lives. Leasehold improvements made after the beginning of the initial lease term are depreciated over the shorter of the estimated useful life of the asset or the remaining term of the initial lease plus any renewals that are reasonably certain at the date of the leasehold improvements.
The Company capitalizes certain computer software and costs incurred in developing or obtaining software for internal use. During development, these costs are included in construction in progress. To the
extent that the assets become ready for their intended use, these costs are included in equipment and fixtures and amortized on a straight-line basis over estimated useful lives.
Repair and maintenance costs are expensed when incurred. Expenditures for remodels, refurbishments and improvements that add to or change asset function or useful life are capitalized. Assets removed during the remodel, refurbishment or improvement are retired. Assets classified as held-for-sale at the end of 2025 and 2024 were immaterial.
The following table summarizes the Company's property and equipment balances at the end of 2025 and 2024:
Estimated Useful Lives20252024
LandN/A$10,323 $9,447 
Buildings and improvements
5-50 years
25,508 23,727 
Equipment and fixtures
3-20 years
13,127 12,387 
Construction in progressN/A1,882 1,389 
50,840 46,950 
Accumulated depreciation and amortization(18,931)(17,918)
Property and equipment, net$31,909 $29,032 
The Company evaluates long-lived assets for impairment on an annual basis, when relocating or closing a facility, or when events or changes in circumstances may indicate that the carrying amount of the asset group, generally an individual warehouse, may not be fully recoverable. For asset groups held and used, including warehouses to be relocated, the carrying value of the asset group is considered recoverable when the estimated future undiscounted cash flows generated from the use and eventual disposition of the asset group exceed the respective carrying value. In the event that the carrying value is not considered recoverable, an impairment loss is recognized for the asset group to be held and used equal to the excess of the carrying value above the estimated fair value of the asset group. For asset groups classified as held-for-sale (disposal group), the carrying value is compared to the disposal group’s fair value less costs to sell. The Company estimates fair value by obtaining market appraisals from third party brokers or using other valuation techniques. Impairment charges recognized in 2025, 2024 and 2023 were immaterial.
Leases
The Company leases land, buildings, and/or equipment at warehouses and certain other office and distribution facilities. Leases generally contain one or more of the following options, which the Company can exercise at the end of the initial term: (a) renew the lease for a defined number of years at the then-fair market rental rate or rate stipulated in the lease agreement; (b) purchase the property at the then-fair market value or purchase price stated in the agreement; (c) a right of first refusal in the event of a third-party offer; or (d) a right of first offer if the landlord intends to sell.
Some leases include free-rent periods and step-rent provisions, which are recognized on a straight-line basis over the original term of the lease and any extension options that the Company is reasonably certain to exercise from the date the Company has control of the property. Certain leases provide for periodic rent increases based on price indices or the greater of minimum guaranteed amounts or sales volume, which are recognized as variable lease payments. The Company's leases do not contain any material residual value guarantees or material restrictive covenants.
The Company determines at inception whether a contract is or contains a lease. Non-lease components and the lease components to which they relate are accounted for together as a single lease component for all asset classes. The Company initially records right-of-use (ROU) assets and lease obligations for its finance and operating leases based on the discounted future minimum lease payments over the term.
The lease term is defined as the noncancelable period of the lease plus any options to extend when it is reasonably certain that the Company will exercise the option. As the rate implicit in the Company's leases is not easily determinable, the present value of the sum of the lease payments is calculated using the Company's incremental borrowing rate. The rate is determined using a portfolio approach based on the rate of interest the Company would pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. The Company uses quoted interest rates from financial institutions to derive the incremental borrowing rate. Impairment of ROU assets is evaluated in a similar manner as described in Property and Equipment, Net above. During 2023, the Company recognized charges totaling $391, primarily related to the impairment of certain leased assets associated with charter shipping activities. This charge is included in merchandise costs.
The Company's asset retirement obligations (ARO) primarily relate to leasehold improvements that must be removed at the end of a lease. These obligations are recorded as a discounted liability, with an offsetting asset, based upon the estimated fair value of the costs to remove the improvements. These liabilities are accreted over time to the projected future value of the obligation. The ARO assets are depreciated using the same depreciation method as the leasehold improvement assets and are included in buildings and improvements. Estimated ARO liabilities associated with these leases are included in other long-term liabilities in the consolidated balance sheet.
Goodwill and Acquired Intangible Assets
Goodwill represents the excess of acquisition cost over the fair value of the net assets acquired and is not subject to amortization. The Company reviews goodwill annually in the fourth quarter for impairment or when circumstances indicate carrying value may exceed the fair value. This evaluation is performed at the reporting unit level. If a qualitative assessment indicates that it is more likely than not that the fair value is less than carrying value, a quantitative analysis is completed using either the income or market approach, or a combination of both. The income approach estimates fair value based on expected discounted future cash flows, while the market approach uses comparable public companies and transactions to develop metrics to be applied to historical and expected future operating results.
Goodwill is included in other long-term assets in the consolidated balance sheets. At the end of 2025, 2024, and 2023 goodwill balances in the Company's U.S., Canadian, and Other International operations were $953, $26, and $15. No impairment charges were recorded in 2025, 2024, or 2023.
Definite-lived intangible assets, which are immaterial, are included in other long-term assets on the consolidated balance sheets and are amortized on a straight-line basis over their estimated lives, which approximates the pattern of expected economic benefit.
Insurance/Self-insurance Liabilities
Claims for employee health-care benefits, workers’ compensation, general liability, property damage, directors’ and officers’ liability, vehicle liability, inventory loss, and other exposures are funded predominantly through self-insurance. Insurance coverage is maintained for certain risks to limit exposures to very large losses. The Company uses various risk management mechanisms, including a wholly-owned captive insurance subsidiary and participates in a reinsurance program. Liabilities associated with the risks that are retained by the Company are not discounted and are estimated using historical claims experience, demographic factors, severity factors, and other actuarial assumptions. The estimated accruals for these liabilities could be significantly affected if future occurrences, claims, or expenses differ from these assumptions and historical trends. At the end of 2025 and 2024, these insurance liabilities were $1,878 and $1,612 in the aggregate, and were included in accrued salaries and benefits and other current liabilities in the consolidated balance sheets, classified based on their nature.
The captive receives direct premiums, which are netted against the Company’s premium costs in SG&A expenses in the consolidated statements of income. The captive participates in a reinsurance program that includes third-party participants. The participant agreements and practices of the reinsurance program are designed to limit a participating members’ individual risk. Income statement adjustments
related to the reinsurance program and related impacts to the consolidated balance sheets are recognized as information becomes known. In the event the Company leaves the reinsurance program, the Company retains its primary obligation to the participants for prior activity.
Derivatives
The Company is exposed to foreign-currency exchange-rate fluctuations in the normal course of business. It manages these fluctuations, in part, through the use of forward foreign-exchange contracts, seeking to economically hedge the impact of fluctuations of foreign-exchange on known future expenditures denominated in a non-functional foreign-currency. The contracts relate primarily to U.S. dollar merchandise inventory expenditures made by the Company’s international subsidiaries with functional currencies other than the U.S. dollar. These contracts either do not qualify for or the Company has not elected derivative hedge accounting. The Company seeks to mitigate risk with the use of these contracts and does not intend to engage in speculative transactions. Some of these contracts contain credit-risk-related contingent features that require settlement of outstanding contracts upon certain triggering events. The aggregate fair value amounts of derivative instruments in a net liability position and the amount needed to settle the instruments immediately if the credit-risk-related contingent features were triggered were immaterial at the end of 2025 and 2024. The aggregate notional amounts of open, unsettled forward foreign-exchange contracts were $1,184 and $1,212 at the end of 2025 and 2024. See Note 3 for information on the fair value of unsettled forward foreign-exchange contracts at the end of 2025 and 2024.
The unrealized gains or losses recognized in interest income and other, net in the consolidated statements of income relating to the net changes in the fair value of unsettled forward foreign-exchange contracts were immaterial in 2025, 2024 and 2023.
The Company is exposed to fluctuations in prices for energy, particularly electricity and natural gas, and other commodities used in retail and manufacturing operations, which it seeks to partially mitigate through the use of fixed-price contracts for certain of its warehouses and other facilities, primarily in the U.S. and Canada. The Company also enters into variable-priced contracts for some purchases of natural gas, in addition to fuel for its gas stations, on an index basis. These contracts meet the characteristics of derivative instruments, but generally qualify for the “normal purchases and normal sales” exception under authoritative guidance and require no mark-to-market adjustment.
Foreign-Currency
The functional currencies of the Company’s international subsidiaries are their local currencies. Assets and liabilities recorded in foreign currencies are translated at the exchange rate on the balance sheet date. Translation adjustments are recorded in accumulated other comprehensive loss. Revenues and expenses of the Company’s consolidated foreign operations are translated at average exchange rates prevailing during the year.
The Company recognizes foreign-currency transaction gains and losses related to revaluing or settling monetary assets and liabilities denominated in currencies other than the functional currency in interest income and other, net in the consolidated statements of income. Generally, these include the U.S. dollar cash and cash equivalents and the U.S. dollar payables of consolidated subsidiaries revalued to their functional currency. Also included are realized foreign-currency gains or losses from settlements of forward foreign-exchange contracts. These items were immaterial in 2025, 2024, and 2023.
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 member returns. The Company reserves for estimated returns based on historical trends 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 consolidated balance sheets.
The Company offers merchandise in the following core merchandise categories: foods and sundries, non-foods, and fresh foods. The Company also provides expanded products and services through warehouse ancillary and other businesses. 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. The majority of revenue from merchandise sales is recognized at the point of sale. Revenue generated through e-commerce or special orders is generally recognized upon shipment to the member. 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 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 consolidated balance sheets.
The Company accounts for membership fee revenue, net of refunds, on a deferred basis, ratably over the one-year membership period. Deferred membership fees at the end of 2025 and 2024 were $2,854 and $2,501.
In most countries, the Company's Executive members qualify for a 2% reward on qualified purchases, subject to an annual maximum value, which does not expire and is redeemable 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 consolidated balance sheets. Estimated breakage is computed based on redemption data. For 2025, 2024, and 2023, the net reduction in sales was $3,007, $2,804, and $2,576.
The Company sells and otherwise provides proprietary shop cards that do not expire and are redeemable at the warehouse or online for merchandise or membership. Revenue from shop cards is recognized upon redemption, and estimated breakage is recognized based on redemption data. The Company accounts for outstanding shop card balances as a liability, net of estimated breakage. Shop card liabilities are included in other current liabilities in the consolidated balance sheets.
Citibank, N.A. is the exclusive issuer of co-branded credit cards to U.S. members. The Company receives various forms of consideration from Citibank, including a royalty on purchases made on the card outside of Costco. A portion of the royalty is used to fund the rebate that cardholders receive, after taking into consideration breakage, which is calculated based on rebate redemption data. The rebates are issued in February and expire on December 31. The Company also maintains varying co-branded credit card arrangements in Canada and certain other International subsidiaries.
Merchandise Costs
Merchandise costs consist of the purchase price or manufacturing costs of inventory sold, inbound and outbound shipping charges and all costs related to the Company’s depot, fulfillment and manufacturing operations, and are reduced by vendor consideration. Merchandise costs also include salaries, benefits, depreciation, and utilities in fresh foods departments and certain ancillary businesses.
Vendor Consideration
The Company receives funds from vendors for discounts and a variety of other programs. These programs are evidenced by agreements that are reflected in the carrying value of the inventory when earned or as the Company progresses towards earning the rebate or discount, and as a component of merchandise costs as the merchandise is sold. Other vendor consideration is generally recorded as a reduction of merchandise costs upon completion of contractual milestones, agreement terms, or other systematic approaches.
Selling, General and Administrative Expenses
Selling, general and administrative expenses consist primarily of salaries, benefits and workers’ compensation costs for warehouse employees (other than fresh foods departments and certain ancillary businesses, which are reflected in merchandise costs), as well as all regional and home office employees, including buying personnel. Selling, general and administrative expenses also include substantially all building and equipment depreciation, stock compensation expense, credit and debit card processing fees, utilities, preopening, as well as other operating costs incurred to support warehouse and e-commerce operations.
Retirement Plans
The Company's 401(k) retirement plan is available to all U.S. employees over the age of 18 who have completed 90 days of employment. The plan allows participants to make wage deferral contributions, a portion of which the Company matches. In addition, the Company provides each eligible participant an annual discretionary contribution. The Company also has a defined contribution plan for employees in Canada and contributes a percentage of each employee's wages. Certain subsidiaries in the Company's Other International operations have defined benefit and defined contribution plans, which are immaterial. Amounts expensed under all plans were $1,061, $963, and $914 for 2025, 2024, and 2023, and are predominantly included in SG&A expenses in the consolidated statements of income.
Stock-Based Compensation
The Company grants stock-based compensation, primarily to employees and non-employee directors. Grants to executive officers are generally performance-based. Through a series of shareholder approvals, there have been amended and restated plans and new provisions implemented by the Company. Restricted Stock Units (RSUs) granted to employees and to non-employee directors generally vest over five years and three years and are subject to quarterly vesting in the event of retirement or voluntary termination. Employees who attain at least 25 years of service with the Company and non-employee directors with five or more years may receive shares under accelerated vesting provisions. Recipients are not entitled to vote or receive dividends on unvested and undelivered shares.
In May 2025, the Compensation Committee approved changes to the vesting schedule applicable only to future grants. Existing participants in the Plan had the option to make a one-time election to remain under the five-year vesting schedule with acceleration for long service or to change to a three-year vesting schedule with no such acceleration. RSUs granted to new participants will vest over the three-year term with no such acceleration. This has no impact on RSUs outstanding or the related disclosures in Note 7.
Compensation expense for awards is predominantly recognized using the straight-line method over the requisite service period for the entire award and forfeitures are recognized as they occur. Under accelerated vesting provisions, compensation expense is recognized upon achievement of the long-service term. The cumulative amount of compensation cost recognized at any point in time equals at least the portion of the grant-date fair value of the award that is vested at that date. The fair value of RSUs is calculated as the market value of the common stock on the measurement date less the present value of the expected dividends forgone during the vesting period.
Stock-based compensation expense is predominantly included in SG&A expenses in the consolidated statements of income. Certain stock-based compensation costs are capitalized or included in the cost of merchandise. See Note 7 for additional information.
Income Taxes
The Company accounts for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributed to differences between the financial statement carrying amounts of existing assets and liabilities and their tax bases, credits and loss carry-forwards. Deferred tax assets and liabilities are measured using tax rates expected to apply to taxable
income in the years in which those temporary differences and carry-forwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is established when necessary to reduce deferred tax assets to amounts that are more likely than not expected to be realized.
The timing and amounts of deductible and taxable items and the probability of sustaining uncertain tax positions requires significant judgment. The benefits of uncertain tax positions are recorded in the Company’s consolidated financial statements only after determining a more-likely-than-not probability that the uncertain tax positions will withstand challenge from tax authorities. When facts and circumstances change, the Company reassesses these probabilities and records changes as appropriate.
Net Income per Common Share
The computation of basic net income per share uses the weighted average number of shares that were outstanding during the period. The computation of diluted net income per share uses the weighted average number of shares in the basic net income per share calculation plus the number of common shares that would be issued assuming vesting of all potentially dilutive common shares outstanding using the treasury stock method for shares subject to RSUs.
Stock Repurchase Programs
Repurchased shares of common stock are retired, in accordance with the Washington Business Corporation Act. The par value of repurchased shares is deducted from common stock and the excess repurchase price over par value is deducted by allocation to additional paid-in capital and retained earnings. The amount allocated to additional paid-in capital is the current value of additional paid-in capital per share outstanding and is applied to the number of shares repurchased. Any remaining amount is allocated to retained earnings. See Note 6 for additional information.
Recent Accounting Pronouncements Adopted
In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, which is intended to improve reportable segment disclosure requirements, primarily about significant segment expenses. The standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company adopted the ASU for the fiscal year ended August 31, 2025, on a retrospective basis for all prior periods presented in the financial statements.
Recent Accounting Pronouncements Not Yet Adopted
In December 2023, the FASB issued ASU 2023-09, which requires public business entities on an annual basis to disclose specific categories in the income-tax rate reconciliation, provide information for reconciling items that meet a quantitative threshold, and disclose certain information about income taxes paid. The standard is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The amendments should be applied on a prospective basis. Retrospective application is permitted.
In November 2024, the FASB issued 2024-03, which requires disaggregated disclosures of certain costs and expenses on the income statement on an annual and interim basis. The standard is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The amendments should be applied on a prospective basis. Retrospective application is permitted.
The Company is evaluating both standards.
v3.25.2
Investments
 12 Months Ended
Aug. 31, 2025
Investments, Debt and Equity Securities [Abstract]  
Investments
Note 2—Investments
The Company’s investments were as follows:
2025:Cost
Basis		Unrealized
Gains, Net		Recorded
Basis
Available-for-sale:
Government and agency securities$783 $3 $786 
Held-to-maturity:
Certificates of deposit337 — 337 
Total short-term investments$1,120 $3 $1,123 
2024:Cost
Basis		Unrealized
Losses, Net		Recorded
Basis
Available-for-sale:
Government and agency securities$689 $(1)$688 
Held-to-maturity:
Certificates of deposit550 — 550 
Total short-term investments$1,239 $(1)$1,238 
Gross unrecognized holding gains and losses on available-for-sale securities were not material for the years ended August 31, 2025, and September 1, 2024. At those dates, there were no available-for-sale securities in a material continuous unrealized-loss position. There were no sales of available-for-sale securities during 2025 or 2024.
The maturities of available-for-sale and held-to-maturity securities at the end of 2025 are as follows:
 Available-For-SaleHeld-To-Maturity
 Cost BasisFair Value
Due in one year or less$119 $119 $337 
Due after one year through five years474 477 — 
Due after five years190 190 — 
Total$783 $786 $337 
v3.25.2
Fair Value Measurement
 12 Months Ended
Aug. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurement
Note 3—Fair Value Measurement
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following table presents information regarding the Company’s financial assets and liabilities that are measured at fair value on a recurring basis and indicates the level within the hierarchy reflecting the valuation techniques utilized to determine such fair value:
Level 2
20252024
Investment in government and agency securities$786 $688 
Forward foreign-exchange contracts, in asset position(1)
6 1 
Forward foreign-exchange contracts, in (liability) position(1)
(14)(28)
Total$778 $661 
 ____________
(1)The asset and liability values are included in other current assets and other current liabilities, respectively, in the consolidated balance sheets.
At August 31, 2025, and September 1, 2024, the Company did not hold any Level 1 or 3 financial assets or liabilities that were measured at fair value on a recurring basis. There were no transfers between levels during 2025 or 2024.
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 measured at amortized cost and long-lived nonfinancial assets. These assets are measured at fair value if determined to be impaired. There were no material fair value adjustments to these items during 2025 and 2024. Please see Note 1 for additional information.
v3.25.2
Debt
 12 Months Ended
Aug. 31, 2025
Debt Disclosure [Abstract]  
Debt
Note 4—Debt
Short-Term Borrowings
The Company maintains various short-term bank credit facilities, with a borrowing capacity of $1,220 and $1,198, in 2025 and 2024. Short-term borrowings outstanding were immaterial at the end of 2025 and 2024.
Long-Term Debt
The Company's long-term debt consists primarily of Senior Notes, described below. The Company at its option may redeem the Senior Notes at any time, in whole or in part, at a redemption price plus accrued interest. The redemption price is equal to the greater of 100% of the principal amount or the sum of the present value of the remaining scheduled payments of principal and interest to maturity. Additionally, upon certain events, a holder has the right to require a repurchase at a price of 101% of the principal amount plus accrued and unpaid interest. Interest on all outstanding long-term debt is payable semi-annually. 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 Japanese subsidiary, valued using Level 3 inputs. In 2024, the Company’s Japan subsidiary issued four Guaranteed Senior Notes, totaling approximately $500, at fixed interest rates ranging from 1.400% to 2.120%. Interest is payable semi-annually, and maturity dates range from November 2033, to November 2043. In 2025, 2024, and 2023 the Japanese subsidiary repaid $103, $77, and $75 of its Guaranteed Senior Notes.
In 2024, the Company repaid the $1,000 outstanding principal balance on its 2.750% Senior Notes.
At the end of 2025 and 2024, the fair value of the Company's long-term debt, including the current portion, was approximately $5,370 and $5,412. The carrying value of long-term debt consisted of the following:
 20252024
3.000% Senior Notes due May 2027
$1,000 $1,000 
1.375% Senior Notes due June 2027
1,250 1,250 
1.600% Senior Notes due April 2030
1,750 1,750 
1.750% Senior Notes due April 2032
1,000 1,000 
Other long-term debt805 919 
Total long-term debt5,805 5,919 
Less unamortized debt discounts and issuance costs17 22 
Less current portion(1)
75 103 
Long-term debt, excluding current portion$5,713 $5,794 
_____________
(1)Net of unamortized debt discounts and issuance costs and included in other current liabilities in the accompanying consolidated balance sheets.
Maturities of long-term debt during the next five fiscal years and thereafter are as follows:
2026$75 
20272,250 
2028— 
2029148 
20301,750 
Thereafter
1,582 
Total
$5,805 
v3.25.2
Leases
 12 Months Ended
Aug. 31, 2025
Leases [Abstract]  
Lessee, Operating Leases
Note 5—Leases
Information regarding the Company's lease assets and liabilities were as follows:
20252024
Assets
Operating lease right-of-use assets$2,725 $2,617 
Finance lease assets(1)
1,488 1,433 
Total lease assets$4,213 $4,050 
Liabilities
Current
Operating lease liabilities(2)
$208 $179 
Finance lease liabilities(2)
78 147 
Long-term
Operating lease liabilities2,460 2,375 
Finance lease liabilities(3)
1,401 1,351 
Total lease liabilities$4,147 $4,052 
 _______________
(1)Included in other long-term assets in the consolidated balance sheets.
(2)Included in other current liabilities in the consolidated balance sheets.
(3)Included in other long-term liabilities in the consolidated balance sheets.
20252024
Weighted-average remaining lease term (years)
Operating leases
2019
Finance leases
2523
Weighted-average discount rate
Operating leases
3.05 %2.67 %
Finance leases
4.63 %4.59 %
The components of lease expense, excluding short-term lease costs and sublease income (which were immaterial), were as follows:
202520242023
Operating lease costs(1)
$271 $284 $309 
Finance lease costs:
Amortization of lease assets(1)
102 97 169 
Interest on lease liabilities(2)
63 58 54 
Variable lease costs(1)
182 163 160 
Total lease costs$618 $602 $692 
 _______________
(1)Included in selling, general and administrative expenses and merchandise costs in the consolidated statements of income.
(2)Included in interest expense and merchandise costs in the consolidated statements of income.
Supplemental cash flow information related to leases were as follows:
202520242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows — operating leases$255 $274 $287 
Operating cash flows — finance leases
58 58 54 
Financing cash flows — finance leases
147 136 291 
Operating lease assets obtained in exchange for new or modified leases294 125 202 
Finance lease assets obtained in exchange for new or modified leases131 200 100 
As of August 31, 2025, future minimum payments during the next five fiscal years and thereafter are as follows:
Operating Leases(1)
Finance Leases
2026$267 $133 
2027250 132 
2028235 135 
2029204 122 
2030184 109 
Thereafter2,451 1,780 
Total(2)
3,591 2,411 
Less amount representing interest923 932 
Present value of lease liabilities$2,668 $1,479 
 _______________
(1)Operating lease payments have not been reduced by expected future sublease income of $92.
(2)Excludes $1,094 of lease payments for leases that have been signed but not commenced.
v3.25.2
Stockholders' Equity
 12 Months Ended
Aug. 31, 2025
Stockholders' Equity Note [Abstract]  
Stockholders' Equity
Note 6—Equity
Dividends
Cash dividends declared in 2025 totaled $2,183 or $4.92 per share, as compared to $8,589 or $19.36 per share in 2024. Dividends in 2024 included a special dividend of $15 per share, resulting in a payment of approximately $6,655. The Company's current quarterly dividend rate is $1.30 per share.
Stock Repurchase Programs
The Company's stock repurchase program is conducted under a $4,000 authorization by the Board of Directors, which expires in January 2027. As of the end of 2025, the remaining amount available under the authorization was $1,962. The following table summarizes the Company’s stock repurchase activity:
Shares
Repurchased
(000’s)		Average
Price per
Share		Total Cost
2025943 $957.66 $903 
20241,004 695.29 698 
20231,341 504.68 677 
These amounts may differ from repurchases of common stock in the consolidated statements of cash flows due to changes in unsettled stock repurchases at the end of each fiscal year. 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.
v3.25.2
Stock-Based Compensation Plans
 12 Months Ended
Aug. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Plans
Note 7—Stock-Based Compensation
The 2019 Incentive Plan authorizes the issuance of up to 15,885,000 RSUs. The number of RSUs that may be granted under this Plan is subject to adjustments for changes in capital structure. The Company issues new shares of common stock upon vesting and settlement 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 the end of 2025, 6,275,000 shares were available to be granted as RSUs, and the following awards were outstanding:
•2,187,000 time-based RSUs, which vest upon continued employment or service over specified periods of time; and
•121,000 performance-based RSUs, of which 70,000 were granted to executive officers subject to the determination of the attainment of performance targets for 2025, which occurred in September 2025. At that time, a portion vested as a result of executive officers who met accelerated vesting provisions. The remaining awards vest upon continued employment over specified periods of time. Please refer to Note 1 for accelerated vesting requirements.
The following table summarizes RSU transactions during 2025:
Number of
Units
(in 000’s)		Weighted-Average
Grant Date Fair
Value
Outstanding at the end of 20242,799 $463.24 
Granted1,095 883.46 
Vested and delivered(1,494)558.05 
Forfeited(92)567.87 
Outstanding at the end of 20252,308 $597.00 
The weighted-average grant date fair value of RSUs granted was $883.46, $547.26, and $471.47 in 2025, 2024, and 2023. The remaining unrecognized compensation cost related to non-vested RSUs at the end of 2025 was $897 and the weighted-average period of time over which this cost will be recognized is 1.6 years. Included in the outstanding balance at the end of 2025 were approximately 766,000 RSUs vested but not yet delivered.
Summary of Stock-Based Compensation
The following table summarizes stock-based compensation expense and the related tax benefits:
202520242023
Stock-based compensation expense$860 $818 $774 
Less recognized income tax benefit
183 173 163 
Stock-based compensation expense, net$677 $645 $611 
v3.25.2
Income Taxes
 12 Months Ended
Aug. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes
Note 8—Taxes
Income Taxes
Income before income taxes is comprised of the following:
202520242023
Domestic$8,324 $7,255 $6,264 
Foreign2,494 2,485 2,223 
Total$10,818 $9,740 $8,487 
The provisions for income taxes are as follows:
202520242023
Federal:
Current$1,395 $1,245 $1,056 
Deferred(42)48 33 
Total federal1,353 1,293 1,089 
State:
Current449 431 374 
Deferred(18)(77)10 
Total state431 354 384 
Foreign:
Current955 798 732 
Deferred(20)(72)(10)
Total foreign935 726 722 
Total provision for income taxes$2,719 $2,373 $2,195 
The reconciliation between the statutory tax rate and the effective rate for 2025, 2024, and 2023 is as follows:
 202520242023
Federal taxes at statutory rate$2,272 21.0 %$2,045 21.0 %$1,782 21.0 %
State taxes, net338 3.1 288 3.0 302 3.6 
Foreign taxes, net222 2.1 109 1.1 160 1.9 
Employee stock ownership plan (ESOP)(28)(0.3)(120)(1.2)(25)(0.3)
Other(85)(0.8)51 0.5 (24)(0.3)
Total$2,719 25.1 %$2,373 24.4 %$2,195 25.9 %
The Company's effective tax rate in 2025, 2024, and 2023 included tax benefits of $100, $45, and $54, related to stock compensation. In 2024, tax benefits also included $94 related to the portion of the special dividend payable through the Company's 401(k) plan and a net non-recurring tax benefit of $63 related to a transfer pricing settlement and certain true-ups of tax reserves.
The components of the deferred tax assets (liabilities) are as follows:
20252024
Deferred tax assets:
Equity compensation$100 $96 
Deferred income/membership fees369 313 
Foreign tax credit carry forward390 315 
Operating lease liabilities699 678 
Accrued liabilities and reserves917 873 
Total deferred tax assets2,475 2,275 
Valuation allowance(554)(494)
Total net deferred tax assets1,921 1,781 
Deferred tax liabilities:
Property and equipment(944)(948)
Merchandise inventories(305)(296)
Operating lease right-of-use assets(670)(652)
Foreign branch deferreds(103)(105)
Other(31)(1)
Total deferred tax liabilities(2,053)(2,002)
Net deferred tax liabilities$(132)$(221)
The deferred tax accounts at the end of 2025 and 2024 include deferred income tax assets of $592 and $548, included in other long-term assets; and deferred income tax liabilities of $724 and $769, included in other long-term liabilities.
In 2025 and 2024, the Company had valuation allowances of $554 and $494, primarily related to foreign tax credits that the Company believes will not be realized due to carry forward limitations. The foreign tax credit carry forwards are set to expire beginning in fiscal 2030.
The Company generally no longer considers fiscal year earnings of non-U.S. consolidated subsidiaries (other than China) indefinitely reinvested after 2023, in the case of Taiwan, and after 2017, in the case of all other subsidiaries, and has recorded the estimated incremental foreign withholding taxes (net of available foreign tax credits) and state income taxes payable assuming a hypothetical repatriation to the U.S. The Company considers undistributed earnings of certain non-U.S. consolidated subsidiaries, which totaled $3,177, to be indefinitely reinvested and has not provided for withholding or state taxes.
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits for 2025 and 2024 is as follows:
20252024
Gross unrecognized tax benefit at beginning of year$81 $16 
Gross increases—current year tax positions9 3 
Gross increases—tax positions in prior years14 64 
Gross decreases—tax positions in prior years(38)— 
Gross decreases—settlements(1)— 
Lapse of statute of limitations— (2)
Gross unrecognized tax benefit at end of year$65 $81 
The gross unrecognized tax benefit includes tax positions for which the ultimate deductibility is highly certain but there is uncertainty about the timing of such deductibility. At the end of 2025 and 2024, these amounts were immaterial. Because of the impact of deferred tax accounting, other than interest and penalties, the disallowance of these tax positions would not affect the annual effective tax rate but would accelerate the payment of cash to the taxing authority. The total amount of such unrecognized tax benefits that if recognized would favorably affect the effective income tax rate in future periods is $65 and $79 at the end of 2025 and 2024.
Accrued interest and penalties related to income tax matters are classified as a component of income tax expense. Accrued interest and penalties recognized during 2025 and 2024, and accrued at the end of each respective period were immaterial.
The Company is currently under audit by several jurisdictions in the U.S. and abroad. Some audits may conclude in the next 12 months, and the unrecognized tax benefits recorded in relation to the audits may differ from actual settlement amounts. It is not practical to estimate the effect, if any, of any amount of such change during the next 12 months to previously recorded uncertain tax positions in connection with the audits. The Company does not anticipate that there will be a material increase or decrease in the total amount of unrecognized tax benefits in the next 12 months.
The Company files income tax returns in the U.S., various state and local jurisdictions, in Canada, and in several other foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state or local examination for years before fiscal 2018. The Company is currently subject to examination in California for fiscal years 2013 to present.
Other Taxes
The Company is subject to multiple examinations for value added, sales-based, payroll, product, import or other non-income taxes in various jurisdictions. In certain cases, the Company has received assessments from the authorities. 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.
v3.25.2
Net Income per Common and Common Equivalent Share
 12 Months Ended
Aug. 31, 2025
Earnings Per Share [Abstract]  
Net Income Per Common and Common Equivalent Share
Note 9—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 basic and of potentially dilutive common shares outstanding (shares in 000’s):
202520242023
Net income
$8,099 $7,367 $6,292 
Weighted average basic shares
443,985 443,914 443,854 
RSUs818 845 598 
Weighted average diluted shares
444,803 444,759 444,452 
Basic earnings per share is calculated by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is calculated based on the dilutive effect of RSUs using the treasury stock method.
v3.25.2
Commitment and Contingencies
 12 Months Ended
Aug. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
Note 10—Commitments and Contingencies
Legal Proceedings
The Company is involved in many claims, proceedings and litigations arising from its business and property ownership. In accordance with accounting guidance, the Company establishes an accrual for legal proceedings if and when those matters present loss contingencies that are both probable and
reasonably estimable. There may be actual losses in excess of 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. The Company has recorded an immaterial accrual with respect to some 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 monitors for developments that make the 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: the remedies or penalties sought are indeterminate or unspecified; the legal and/or factual theories are not well developed; and/or the matters involve complex or novel legal theories or a large number of parties.
In November 2023, a former employee filed a class action against the Company alleging claims under California law for failure to pay minimum wage, failure to pay overtime, failure to provide meal and rest breaks, failure to provide accurate wage statements, failure to reimburse expenses, failure to pay wages when due, and failure to pay sick pay. Martin Reyes v. Costco Wholesale Corporation, Sacramento County Superior Court (No. 23cv011351), removed to federal court, No. 2:24-cv-00300 (E.D. Cal.). A second amended complaint was filed, which the Company has moved to dismiss. In January 2024, the same plaintiff filed a related Private Attorneys General Act (PAGA) representative action, seeking civil penalties and asserting the same alleged underlying Labor Code violations and an additional suitable seating claim. In May 2024, the plaintiff filed an amended PAGA complaint; the Company has denied the material allegations of the complaint and filed a motion to stay the action. The motion was granted on December 18, 2024.
In August 2024, an employee filed an action under PAGA against the Company, alleging claims for penalties for various alleged violations of the California Labor Code. Nader v. Costco (No. CV-24-006198; Stanislaus County Superior Court). An amended complaint was filed in November 2024. In February 2025 the court granted the Company’s motion to strike portions of the complaint. The plaintiff filed a further amended complaint; the Company's motion to strike a portion of this complaint was granted on May 13, 2025.
Beginning in December 2017, the United States Judicial Panel on Multidistrict Litigation consolidated numerous cases concerning the impacts of opioid abuses filed against various defendants by counties, cities, hospitals, Native American tribes, third-party payors, and others. In re National Prescription Opiate Litigation (MDL No. 2804) (N.D. Ohio). Included are cases filed against the Company by counties and cities in Michigan, New Jersey, Oregon, Virginia and South Carolina, a third-party payor in Ohio, and a hospital in Texas, class actions filed on behalf of infants born with opioid-related medical conditions in 40 states, and class actions and individual actions filed on behalf of individuals seeking to recover alleged increased insurance costs associated with opioid abuse in 43 states and American Samoa. Claims against the Company filed in federal court outside the MDL by one county in Georgia are pending, and claims filed by certain cities and counties in New York are pending in state court, as are claims by certain county district attorneys in Pennsylvania. Claims against the Company in state courts in New Jersey, Oklahoma, Utah, and Arizona have been dismissed. Claims against the Company in federal court in Georgia and Florida have been dismissed. The Company is defending all of the pending matters except for a small number that have been resolved for immaterial amounts.
Between September 25 and October 31, 2023, five class action suits were filed against the Company alleging privacy law violations stemming from pixel trackers on Costco.com: Birdwell v. Costco Wholesale Corp., No. C23-02416, Contra Costa County Superior Court; and Scott v. Costco Wholesale Corp., No. 2:23-cv-08808 (C.D. Cal.), now consolidated with R.S. v. Costco Wholesale Corp., No. 2:23-cv-01628 (W.D. Wash.); Groves, et ano., v. Costco Wholesale Corp., No. 2:23-cv-01662 (W.D. Wash.), and Castillo v. Costco Wholesale Corp., under No. 2:34-cv-01548 (W.D. Wash.). The Castillo plaintiffs filed a consolidated complaint on January 26, 2024, which seeks damages, equitable relief and attorneys’ fees
under various statutes, including the Washington Consumer Protection Act, Washington Privacy Act, Washington Uniform Health Care Information Act, Electronic Communications Privacy Act, California Invasion of Privacy Act, and California Confidentiality of Medical Information Act. The consolidated complaint also alleges breach of implied contract, invasion of privacy, conversion, and unjust enrichment. The Company filed a motion to dismiss the Castillo complaint on March 11, 2024. In November 2024 the court denied the motion to dismiss in substantial part. On May 16, 2024, the parties stipulated to stay Birdwell pending resolution of Castillo. On January 2, and August 22, 2024, the Company received related civil investigative demands from the Washington Attorney General's Office. On January 3, 2024, the Company received a related pre-litigation letter from the Los Angeles Office of the County Counsel. The Company is in the process of responding to both agencies.
On June 20, 2024, a class-action lawsuit was filed against the Company and Nice-Pak Products, Inc., alleging that Kirkland Signature Fragrance Free Baby Wipes contain 3.7 parts per billion of per-and polyfluoroalkyl substances. The complaint alleges that the label claim that the wipes are “made with naturally derived ingredients” thus violates various state consumer protection and false advertising laws. The complaint seeks unspecified damages, including punitive damages, as well as equitable relief and attorneys' fees and costs. The defendants filed a motion to dismiss on August 9, 2024. Bullard, et ano., v. Costco Wholesale Corp., et ano., No. 3:24-cv-03714 (N.D. Cal.). On February 14, 2025, the court granted the motion. An amended complaint was filed; defendants' motion to dismiss this complaint was denied on May 14, 2025.
In January 2023 the Company received a Civil Investigative Demand from the U.S. Attorney's Office, Western District of Washington, requesting documents. The government is conducting a False Claims Act investigation concerning whether the Company presented or caused to be presented to the federal government for payment false claims relating to prescription medications.
In May 2024 the Company received a Notice of Intent to File Administrative Complaint for Violations of the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA) from the U.S. Environmental Protection Agency (EPA). The EPA is seeking administrative fines for importation, sale and distribution of misbranded devices and unregistered products the government asserts are pesticides under FIFRA. An agreement has been reached to settle the matter for an immaterial amount.
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; 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.
v3.25.2
Segment Reporting
 12 Months Ended
Aug. 31, 2025
Segment Reporting [Abstract]  
Segment Reporting
Note 11—Segment Reporting
The Company is principally engaged in the operation of membership warehouses through wholly owned subsidiaries in the U.S., Canada, Mexico, Japan, the U.K., Korea, Australia, Taiwan, China, Spain, France, Sweden, Iceland, and New Zealand. Reportable segments are largely based on management’s organization of the operating segments for operational decisions and assessments of financial performance, which considers geographic locations. The material accounting policies of the segments are as described in Note 1. Inter-segment net sales and expenses, including royalties, have been eliminated in computing total revenue and operating income.
The chief operating decision maker (CODM) is the Company's Chief Executive Officer, President and Director. The CODM utilizes operating income, as reported in the consolidated statement of income, along with internal management reports, in evaluating performance and allocating resources.
The following table provides the revenue, significant expenses, and operating income for the Company's reportable segments:
202520242023
United States
Total revenue$200,046 $184,143 $176,630 
Merchandise costs174,021 160,573 154,858 
Selling, general and administrative expenses19,147 17,353 16,380 
Operating income$6,878 $6,217 $5,392 
Canada
Total revenue$36,923 $34,874 $33,056 
Merchandise costs32,204 30,543 29,019 
Selling, general and administrative expenses2,870 2,683 2,589 
Operating income$1,849 $1,648 $1,448 
Other International
Total revenue$38,266 $35,436 $32,604 
Merchandise costs33,661 31,242 28,709 
Selling, general and administrative expenses2,949 2,774 2,621 
Operating income$1,656 $1,420 $1,274 
Total
Total revenue$275,235 $254,453 $242,290 
Merchandise costs239,886 222,358 212,586 
Selling, general and administrative expenses24,966 22,810 21,590 
Operating income10,383 9,285 8,114 
Other income(1)
435 455 373 
Income before income taxes$10,818 $9,740 $8,487 
 ____________
(1)Other income consists of interest expense and interest income and other, net.
The following table provides depreciation and amortization and other asset related information for the Company's reportable segments:
202520242023
United States
Depreciation and amortization$1,895 $1,730 $1,599 
Additions to property and equipment4,215 3,725 3,288 
Property and equipment, net22,790 20,638 18,760 
Total assets54,862 48,816 49,189 
Canada
Depreciation and amortization$196 $192 $183 
Additions to property and equipment580 351 281 
Property and equipment, net2,930 2,602 2,443 
Total assets7,304 6,915 6,420 
Other International
Depreciation and amortization$335 $315 $295 
Additions to property and equipment703 634 754 
Property and equipment, net6,189 5,792 5,481 
Total assets14,933 14,100 13,385 
Total
Depreciation and amortization$2,426 $2,237 $2,077 
Additions to property and equipment5,498 4,710 4,323 
Property and equipment, net31,909 29,032 26,684 
Total assets77,099 69,831 68,994 
Disaggregated Revenue
The following table summarizes net sales by merchandise category; sales from e-commerce sites and business centers have been allocated to the applicable merchandise categories:
202520242023
Foods and Sundries
$109,564 $101,463 $96,175 
Non-Foods
71,190 63,973 60,865 
Fresh Foods
37,988 34,220 31,977 
Warehouse Ancillary and Other Businesses
51,170 49,969 48,693 
Total net sales
$269,912 $249,625 $237,710 
v3.25.2
Insider Trading Arrangements
 4 Months Ended
Aug. 31, 2025
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.2
Insider Trading Policies and Procedures
 12 Months Ended
Aug. 31, 2025
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.2
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Aug. 31, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
Risk Management and Global Strategy
We have implemented processes, technologies, and controls to seek to assess, identify, and manage risks associated with cybersecurity threats. Management considers cybersecurity risks within our overall approach to enterprise risk management. We evaluate these risks based on several frameworks, including the National Institute of Standards and Technology (NIST) Cybersecurity Framework (CSF), Center for Internet Security (CIS) 18 Critical Security Controls, and the Payment Card Industry Data Security Standard. Our governance policies, including our Information Security Policy, outline high-level objectives designed to meet compliance and regulatory requirements.
We undertake regular NIST CSF and CIS 18 Critical Security Controls assessments, conducted by a third-party, to measure program maturity. We have implemented a variety of technologies, leveraging third-party security providers for some, and engage in multiple activities to seek to identify and mitigate vulnerabilities and risks in systems. These include, among other activities, scanning for common vulnerabilities and exposures, penetration tests on internal and external networks, code scans on applications, allowed application listing, configuration management tools, employee awareness and training, and internal and external audits. We also review with various frequencies and on a risk-based priority select third parties with whom we do business, in an effort to reduce the likelihood of security
incidents or business interruptions. We maintain cybersecurity insurance that would apply to certain losses arising from significant security incidents.
We maintain a security operations center, supported by external providers and our employees, which provides threat detection and incident response capabilities. We maintain cyber incident response plans and related playbooks in coordination with stakeholders (including legal counsel). Significant incidents will be escalated to a Cybersecurity Materiality Committee to assess materiality based on qualitative and quantitative factors. The Committee is composed of a cross-divisional group of executives representing the core business functions of Information Technology and Security, Operations, Administration, Finance and Accounting, and Legal. We conduct periodic tabletop exercises, including at the executive level, to review our response processes and incident management procedures.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block]
We have implemented processes, technologies, and controls to seek to assess, identify, and manage risks associated with cybersecurity threats. Management considers cybersecurity risks within our overall approach to enterprise risk management. We evaluate these risks based on several frameworks, including the National Institute of Standards and Technology (NIST) Cybersecurity Framework (CSF), Center for Internet Security (CIS) 18 Critical Security Controls, and the Payment Card Industry Data Security Standard. Our governance policies, including our Information Security Policy, outline high-level objectives designed to meet compliance and regulatory requirements.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]
Governance
Our Board of Directors has delegated certain responsibilities to the Audit Committee of the Board. The Audit Committee reviews and discusses with management the identification and mitigation of cybersecurity risks, including (among other things) the effectiveness of risk-management policies and practices designed to help safeguard our operations, financial systems, and data. Our Chief Information and Digital Officer (CIDO) and his executive team, including the Vice President of Information Security and Chief Information Security Officer (CISO), present cybersecurity-related topics, including program maturity progress, regularly to the Audit Committee. The Internal Audit team, in its periodic compliance and risk assessment updates to the Audit Committee, also reports on its reviews of certain of our cybersecurity risk exposures, controls, and management actions. The full Board also receives cybersecurity evaluations from time to time.
Our information security organization is led by the CISO. The CISO is responsible for all aspects of our cybersecurity program, including cybersecurity engineering and architecture, cybersecurity operations, incident response, threat intelligence, identity and access management, cybersecurity risk and compliance, and vulnerability management. Our former CISO left the Company in June 2025, and we are actively sourcing a qualified replacement. In the interim, our Deputy CISO, who has over 20 years of cybersecurity and leadership experience, is managing the CISO responsibilities. The CISO position reports to our CIDO, who has more than 30 years experience in which he has led global digital responsibilities, including leading global cyber teams. Our CIDO reports to the Chief Executive Officer.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] Our Board of Directors has delegated certain responsibilities to the Audit Committee of the Board.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] The Audit Committee reviews and discusses with management the identification and mitigation of cybersecurity risks, including (among other things) the effectiveness of risk-management policies and practices designed to help safeguard our operations, financial systems, and data
Cybersecurity Risk Role of Management [Text Block] Our Chief Information and Digital Officer (CIDO) and his executive team, including the Vice President of Information Security and Chief Information Security Officer (CISO), present cybersecurity-related topics, including program maturity progress, regularly to the Audit Committee. The Internal Audit team, in its periodic compliance and risk assessment updates to the Audit Committee, also reports on its reviews of certain of our cybersecurity risk exposures, controls, and management actions. The full Board also receives cybersecurity evaluations from time to time.
Our information security organization is led by the CISO. The CISO is responsible for all aspects of our cybersecurity program, including cybersecurity engineering and architecture, cybersecurity operations, incident response, threat intelligence, identity and access management, cybersecurity risk and compliance, and vulnerability management. Our former CISO left the Company in June 2025, and we are actively sourcing a qualified replacement. In the interim, our Deputy CISO, who has over 20 years of cybersecurity and leadership experience, is managing the CISO responsibilities. The CISO position reports to our CIDO, who has more than 30 years experience in which he has led global digital responsibilities, including leading global cyber teams. Our CIDO reports to the Chief Executive Officer.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] Our information security organization is led by the CISO. The CISO is responsible for all aspects of our cybersecurity program, including cybersecurity engineering and architecture, cybersecurity operations, incident response, threat intelligence, identity and access management, cybersecurity risk and compliance, and vulnerability management.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Our information security organization is led by the CISO
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] CISO position reports to our CIDO, who has more than 30 years experience in which he has led global digital responsibilities, including leading global cyber teams. Our CIDO reports to the Chief Executive Officer.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.2
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Aug. 31, 2025
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation
The consolidated financial statements include the accounts of Costco and its wholly-owned subsidiaries. All material inter-company transactions among the Company and its consolidated subsidiaries have been eliminated in consolidation.
Fiscal Year End
Fiscal Year End
The Company operates on a 52/53-week fiscal year basis with the year ending on the Sunday closest to August 31. References to 2025 and 2024 relate to the 52-week fiscal years ended August 31, 2025, and September 1, 2024. References to 2023 relate to the 53-week fiscal year ended September 3, 2023.
Use of Estimates
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates and assumptions take into account historical and forward-looking factors that the Company believes are reasonable. Actual results could differ from those estimates and assumptions.
Reclassification
Reclassification
Reclassifications were made to the 2024 consolidated balance sheet to conform with current year presentation.
Cash and Cash Equivalents
Cash and Cash Equivalents
The Company considers as cash and cash equivalents all cash on deposit, highly liquid investments with a maturity of three months or less at the date of purchase, and proceeds due from credit and debit card transactions with settlement terms of up to four days. Credit and debit card receivables were $2,670 and $2,519 at the end of 2025 and 2024.
Short-Term Investments
Short-Term Investments
Short-term investments generally consist of debt securities (U.S. government and agency securities), with maturities at the date of purchase of three months to five years. Investments with maturities beyond five years may be classified, based on the Company’s determination, as short-term based on their highly liquid nature and because they represent the investment of cash that is available for current operations.
Short-term investments classified as available-for-sale are recorded at fair value using the specific identification method with the unrealized gains and losses reflected in accumulated other comprehensive income (loss) until realized. Realized gains and losses from the sale of available-for-sale securities, if any, are determined on a specific identification basis and are recorded in interest income and other, net in the consolidated statements of income. These available-for-sale investments have a low level of inherent credit risk given they are issued by the U.S. government and agencies. Changes in their fair value are primarily attributable to changes in interest rates and market liquidity. Short-term investments classified as held-to-maturity are financial instruments that the Company has the intent and ability to hold to maturity and are reported net of any related amortization and are not remeasured to fair value on a recurring basis.
The Company periodically evaluates unrealized losses in its investment securities for credit impairment, using both qualitative and quantitative criteria. In the event a security is deemed to be impaired as the result of a credit loss, the Company recognizes the loss in interest income and other, net in the consolidated statements of income.
Fair Value of Financial Instruments
Fair Value of Financial Instruments
The Company accounts for certain assets and liabilities at fair value. The carrying value of the Company’s financial instruments, including cash and cash equivalents, receivables and accounts payable, approximate fair value due to their short-term nature or variable interest rates. See Notes 2, 3, and 4 for the carrying value and fair value of the Company’s investments, derivative instruments, and fixed-rate debt.
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated by applying a fair value hierarchy, which requires maximizing the use of observable inputs when measuring fair value. The three levels of inputs are:
Level 1: Quoted market prices in active markets for identical assets or liabilities.
Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market
data.
Level 3: Significant unobservable inputs that are not corroborated by market data.
The Company’s valuation techniques used to measure the fair value of money market mutual funds, which are included in cash and cash equivalents, are based on quoted market prices, such as quoted net asset values published by the fund as supported in an active market. Valuation methodologies used to measure the fair value of all other non-derivative financial instruments are based on independent external valuation information. The pricing process uses data from a variety of independent external valuation information providers, including trades, bid price or spread, two-sided markets, quotes, benchmark curves including but not limited to treasury benchmarks, Secured Overnight Financing Rate and swap curves, discount rates, and market data feeds. All are observable in the market or can be derived principally from or corroborated by observable market data. The Company reports transfers in and out of Levels 1, 2, and 3, as applicable, using the fair value of the individual securities as of the beginning of the reporting period in which the transfer(s) occurred.
Current financial liabilities have fair values that approximate their carrying values. Long-term financial liabilities include the Company's long-term debt, which are recorded on the balance sheet at issuance price and adjusted for unamortized discounts or premiums and debt issuance costs. Discounts, premiums and debt issuance costs are amortized to interest expense over the term of the loan. The estimated fair value of the Company's long-term debt is based primarily on reported market values, recently completed market transactions, and estimates based upon interest rates, maturities, and credit.
Receivables, Net
Receivables, Net
Receivables consist primarily of vendor, credit card incentive, reinsurance, third-party pharmacy, and other receivables. Vendor receivables include discounts, volume rebates, and a variety of other programs. Balances are generally presented on a gross basis, separate from any related payable due. In certain circumstances, these receivables may be settled against the related payable to that vendor, in which case the receivables are presented on a net basis. Reinsurance receivables are held by the Company’s wholly-owned captive insurance subsidiary and primarily represent amounts ceded through reinsurance arrangements gross of the amounts assumed under reinsurance, which are presented within other current liabilities in the consolidated balance sheets. Credit card incentive receivables primarily represent amounts earned under co-branded credit card arrangements. Third-party pharmacy receivables generally relate to amounts due from members’ insurers. Other receivables primarily consist of amounts due from governmental entities, mostly tax-related items.
The valuation allowance related to receivables was immaterial to the Company's consolidated financial statements at the end of 2025 and 2024.
Merchandise Inventories
Merchandise Inventories
Merchandise inventories consist of the following:
20252024
United States $12,868 $13,625 
Canada1,907 1,895 
Other International3,341 3,127 
Merchandise inventories$18,116 $18,647 
Merchandise inventories are stated at the lower of cost or market. U.S. merchandise inventories are valued by the cost method of accounting, using the last-in, first-out (LIFO) basis. The Company believes the LIFO method more fairly presents the results of operations by more closely matching current costs with current revenues. The Company records an adjustment each quarter, if necessary, for the projected annual effect of inflation or deflation, and these estimates are adjusted to actual results determined at year-end, after actual inflation or deflation rates and inventory levels have been determined. Due to higher merchandise costs in 2025, a $142 charge was recorded to merchandise costs to increase the cumulative LIFO valuation on merchandise inventories at August 31, 2025. An immaterial LIFO benefit was recorded in 2024 and an immaterial charge was recorded in 2023. Canadian and Other International merchandise inventories are predominantly valued using the cost and retail inventory methods, respectively, using the first-in, first-out (FIFO) basis.
The Company initially provides for estimated inventory losses between physical inventory counts using estimates based on experience. The provision is adjusted to reflect physical inventory counts, which generally occur in the second and fourth fiscal quarters. Inventory cost where appropriate is reduced by estimates of vendor rebates when earned or as the Company progresses towards earning those rebates, provided that they are probable and reasonably estimable.
Property and Equipment
Property and Equipment, Net
Property and equipment are stated at cost. Depreciation and amortization expense is computed primarily using the straight-line method over estimated useful lives. Leasehold improvements made after the beginning of the initial lease term are depreciated over the shorter of the estimated useful life of the asset or the remaining term of the initial lease plus any renewals that are reasonably certain at the date of the leasehold improvements.
The Company capitalizes certain computer software and costs incurred in developing or obtaining software for internal use. During development, these costs are included in construction in progress. To the
extent that the assets become ready for their intended use, these costs are included in equipment and fixtures and amortized on a straight-line basis over estimated useful lives.
Repair and maintenance costs are expensed when incurred. Expenditures for remodels, refurbishments and improvements that add to or change asset function or useful life are capitalized. Assets removed during the remodel, refurbishment or improvement are retired. Assets classified as held-for-sale at the end of 2025 and 2024 were immaterial.
The following table summarizes the Company's property and equipment balances at the end of 2025 and 2024:
Estimated Useful Lives20252024
LandN/A$10,323 $9,447 
Buildings and improvements
5-50 years
25,508 23,727 
Equipment and fixtures
3-20 years
13,127 12,387 
Construction in progressN/A1,882 1,389 
50,840 46,950 
Accumulated depreciation and amortization(18,931)(17,918)
Property and equipment, net$31,909 $29,032 
The Company evaluates long-lived assets for impairment on an annual basis, when relocating or closing a facility, or when events or changes in circumstances may indicate that the carrying amount of the asset group, generally an individual warehouse, may not be fully recoverable. For asset groups held and used, including warehouses to be relocated, the carrying value of the asset group is considered recoverable when the estimated future undiscounted cash flows generated from the use and eventual disposition of the asset group exceed the respective carrying value. In the event that the carrying value is not considered recoverable, an impairment loss is recognized for the asset group to be held and used equal to the excess of the carrying value above the estimated fair value of the asset group. For asset groups classified as held-for-sale (disposal group), the carrying value is compared to the disposal group’s fair value less costs to sell. The Company estimates fair value by obtaining market appraisals from third party brokers or using other valuation techniques. Impairment charges recognized in 2025, 2024 and 2023 were immaterial.
Leases
Leases
The Company leases land, buildings, and/or equipment at warehouses and certain other office and distribution facilities. Leases generally contain one or more of the following options, which the Company can exercise at the end of the initial term: (a) renew the lease for a defined number of years at the then-fair market rental rate or rate stipulated in the lease agreement; (b) purchase the property at the then-fair market value or purchase price stated in the agreement; (c) a right of first refusal in the event of a third-party offer; or (d) a right of first offer if the landlord intends to sell.
Some leases include free-rent periods and step-rent provisions, which are recognized on a straight-line basis over the original term of the lease and any extension options that the Company is reasonably certain to exercise from the date the Company has control of the property. Certain leases provide for periodic rent increases based on price indices or the greater of minimum guaranteed amounts or sales volume, which are recognized as variable lease payments. The Company's leases do not contain any material residual value guarantees or material restrictive covenants.
The Company determines at inception whether a contract is or contains a lease. Non-lease components and the lease components to which they relate are accounted for together as a single lease component for all asset classes. The Company initially records right-of-use (ROU) assets and lease obligations for its finance and operating leases based on the discounted future minimum lease payments over the term.
The lease term is defined as the noncancelable period of the lease plus any options to extend when it is reasonably certain that the Company will exercise the option. As the rate implicit in the Company's leases is not easily determinable, the present value of the sum of the lease payments is calculated using the Company's incremental borrowing rate. The rate is determined using a portfolio approach based on the rate of interest the Company would pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. The Company uses quoted interest rates from financial institutions to derive the incremental borrowing rate. Impairment of ROU assets is evaluated in a similar manner as described in Property and Equipment, Net above. During 2023, the Company recognized charges totaling $391, primarily related to the impairment of certain leased assets associated with charter shipping activities. This charge is included in merchandise costs.
The Company's asset retirement obligations (ARO) primarily relate to leasehold improvements that must be removed at the end of a lease. These obligations are recorded as a discounted liability, with an offsetting asset, based upon the estimated fair value of the costs to remove the improvements. These liabilities are accreted over time to the projected future value of the obligation. The ARO assets are depreciated using the same depreciation method as the leasehold improvement assets and are included in buildings and improvements. Estimated ARO liabilities associated with these leases are included in other long-term liabilities in the consolidated balance sheet.
Goodwill and Intangible Assets, Goodwill, Policy
Goodwill and Acquired Intangible Assets
Goodwill represents the excess of acquisition cost over the fair value of the net assets acquired and is not subject to amortization. The Company reviews goodwill annually in the fourth quarter for impairment or when circumstances indicate carrying value may exceed the fair value. This evaluation is performed at the reporting unit level. If a qualitative assessment indicates that it is more likely than not that the fair value is less than carrying value, a quantitative analysis is completed using either the income or market approach, or a combination of both. The income approach estimates fair value based on expected discounted future cash flows, while the market approach uses comparable public companies and transactions to develop metrics to be applied to historical and expected future operating results.
Goodwill is included in other long-term assets in the consolidated balance sheets. At the end of 2025, 2024, and 2023 goodwill balances in the Company's U.S., Canadian, and Other International operations were $953, $26, and $15. No impairment charges were recorded in 2025, 2024, or 2023.
Definite-lived intangible assets, which are immaterial, are included in other long-term assets on the consolidated balance sheets and are amortized on a straight-line basis over their estimated lives, which approximates the pattern of expected economic benefit.
Insurance / Self-Insurance Liabilities
Insurance/Self-insurance Liabilities
Claims for employee health-care benefits, workers’ compensation, general liability, property damage, directors’ and officers’ liability, vehicle liability, inventory loss, and other exposures are funded predominantly through self-insurance. Insurance coverage is maintained for certain risks to limit exposures to very large losses. The Company uses various risk management mechanisms, including a wholly-owned captive insurance subsidiary and participates in a reinsurance program. Liabilities associated with the risks that are retained by the Company are not discounted and are estimated using historical claims experience, demographic factors, severity factors, and other actuarial assumptions. The estimated accruals for these liabilities could be significantly affected if future occurrences, claims, or expenses differ from these assumptions and historical trends. At the end of 2025 and 2024, these insurance liabilities were $1,878 and $1,612 in the aggregate, and were included in accrued salaries and benefits and other current liabilities in the consolidated balance sheets, classified based on their nature.
The captive receives direct premiums, which are netted against the Company’s premium costs in SG&A expenses in the consolidated statements of income. The captive participates in a reinsurance program that includes third-party participants. The participant agreements and practices of the reinsurance program are designed to limit a participating members’ individual risk. Income statement adjustments
related to the reinsurance program and related impacts to the consolidated balance sheets are recognized as information becomes known. In the event the Company leaves the reinsurance program, the Company retains its primary obligation to the participants for prior activity.
Derivatives
Derivatives
The Company is exposed to foreign-currency exchange-rate fluctuations in the normal course of business. It manages these fluctuations, in part, through the use of forward foreign-exchange contracts, seeking to economically hedge the impact of fluctuations of foreign-exchange on known future expenditures denominated in a non-functional foreign-currency. The contracts relate primarily to U.S. dollar merchandise inventory expenditures made by the Company’s international subsidiaries with functional currencies other than the U.S. dollar. These contracts either do not qualify for or the Company has not elected derivative hedge accounting. The Company seeks to mitigate risk with the use of these contracts and does not intend to engage in speculative transactions. Some of these contracts contain credit-risk-related contingent features that require settlement of outstanding contracts upon certain triggering events. The aggregate fair value amounts of derivative instruments in a net liability position and the amount needed to settle the instruments immediately if the credit-risk-related contingent features were triggered were immaterial at the end of 2025 and 2024. The aggregate notional amounts of open, unsettled forward foreign-exchange contracts were $1,184 and $1,212 at the end of 2025 and 2024. See Note 3 for information on the fair value of unsettled forward foreign-exchange contracts at the end of 2025 and 2024.
The unrealized gains or losses recognized in interest income and other, net in the consolidated statements of income relating to the net changes in the fair value of unsettled forward foreign-exchange contracts were immaterial in 2025, 2024 and 2023.
The Company is exposed to fluctuations in prices for energy, particularly electricity and natural gas, and other commodities used in retail and manufacturing operations, which it seeks to partially mitigate through the use of fixed-price contracts for certain of its warehouses and other facilities, primarily in the U.S. and Canada. The Company also enters into variable-priced contracts for some purchases of natural gas, in addition to fuel for its gas stations, on an index basis. These contracts meet the characteristics of derivative instruments, but generally qualify for the “normal purchases and normal sales” exception under authoritative guidance and require no mark-to-market adjustment.
Foreign Currency
Foreign-Currency
The functional currencies of the Company’s international subsidiaries are their local currencies. Assets and liabilities recorded in foreign currencies are translated at the exchange rate on the balance sheet date. Translation adjustments are recorded in accumulated other comprehensive loss. Revenues and expenses of the Company’s consolidated foreign operations are translated at average exchange rates prevailing during the year.
The Company recognizes foreign-currency transaction gains and losses related to revaluing or settling monetary assets and liabilities denominated in currencies other than the functional currency in interest income and other, net in the consolidated statements of income. Generally, these include the U.S. dollar cash and cash equivalents and the U.S. dollar payables of consolidated subsidiaries revalued to their functional currency. Also included are realized foreign-currency gains or losses from settlements of forward foreign-exchange contracts. These items were immaterial in 2025, 2024, and 2023.
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 member returns. The Company reserves for estimated returns based on historical trends 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 consolidated balance sheets.
The Company offers merchandise in the following core merchandise categories: foods and sundries, non-foods, and fresh foods. The Company also provides expanded products and services through warehouse ancillary and other businesses. 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. The majority of revenue from merchandise sales is recognized at the point of sale. Revenue generated through e-commerce or special orders is generally recognized upon shipment to the member. 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 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 consolidated balance sheets.
The Company accounts for membership fee revenue, net of refunds, on a deferred basis, ratably over the one-year membership period. Deferred membership fees at the end of 2025 and 2024 were $2,854 and $2,501.
In most countries, the Company's Executive members qualify for a 2% reward on qualified purchases, subject to an annual maximum value, which does not expire and is redeemable 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 consolidated balance sheets. Estimated breakage is computed based on redemption data. For 2025, 2024, and 2023, the net reduction in sales was $3,007, $2,804, and $2,576.
The Company sells and otherwise provides proprietary shop cards that do not expire and are redeemable at the warehouse or online for merchandise or membership. Revenue from shop cards is recognized upon redemption, and estimated breakage is recognized based on redemption data. The Company accounts for outstanding shop card balances as a liability, net of estimated breakage. Shop card liabilities are included in other current liabilities in the consolidated balance sheets.
Citibank, N.A. is the exclusive issuer of co-branded credit cards to U.S. members. The Company receives various forms of consideration from Citibank, including a royalty on purchases made on the card outside of Costco. A portion of the royalty is used to fund the rebate that cardholders receive, after taking into consideration breakage, which is calculated based on rebate redemption data. The rebates are issued in February and expire on December 31. The Company also maintains varying co-branded credit card arrangements in Canada and certain other International subsidiaries.
Merchandise Costs
Merchandise Costs
Merchandise costs consist of the purchase price or manufacturing costs of inventory sold, inbound and outbound shipping charges and all costs related to the Company’s depot, fulfillment and manufacturing operations, and are reduced by vendor consideration. Merchandise costs also include salaries, benefits, depreciation, and utilities in fresh foods departments and certain ancillary businesses.
Vendor Consideration
Vendor Consideration
The Company receives funds from vendors for discounts and a variety of other programs. These programs are evidenced by agreements that are reflected in the carrying value of the inventory when earned or as the Company progresses towards earning the rebate or discount, and as a component of merchandise costs as the merchandise is sold. Other vendor consideration is generally recorded as a reduction of merchandise costs upon completion of contractual milestones, agreement terms, or other systematic approaches.
Selling, General and Administrative Expenses
Selling, General and Administrative Expenses
Selling, general and administrative expenses consist primarily of salaries, benefits and workers’ compensation costs for warehouse employees (other than fresh foods departments and certain ancillary businesses, which are reflected in merchandise costs), as well as all regional and home office employees, including buying personnel. Selling, general and administrative expenses also include substantially all building and equipment depreciation, stock compensation expense, credit and debit card processing fees, utilities, preopening, as well as other operating costs incurred to support warehouse and e-commerce operations.
Retirement Plans
Retirement Plans
The Company's 401(k) retirement plan is available to all U.S. employees over the age of 18 who have completed 90 days of employment. The plan allows participants to make wage deferral contributions, a portion of which the Company matches. In addition, the Company provides each eligible participant an annual discretionary contribution. The Company also has a defined contribution plan for employees in Canada and contributes a percentage of each employee's wages. Certain subsidiaries in the Company's Other International operations have defined benefit and defined contribution plans, which are immaterial. Amounts expensed under all plans were $1,061, $963, and $914 for 2025, 2024, and 2023, and are predominantly included in SG&A expenses in the consolidated statements of income.
Stock-Based Compensation
Stock-Based Compensation
The Company grants stock-based compensation, primarily to employees and non-employee directors. Grants to executive officers are generally performance-based. Through a series of shareholder approvals, there have been amended and restated plans and new provisions implemented by the Company. Restricted Stock Units (RSUs) granted to employees and to non-employee directors generally vest over five years and three years and are subject to quarterly vesting in the event of retirement or voluntary termination. Employees who attain at least 25 years of service with the Company and non-employee directors with five or more years may receive shares under accelerated vesting provisions. Recipients are not entitled to vote or receive dividends on unvested and undelivered shares.
In May 2025, the Compensation Committee approved changes to the vesting schedule applicable only to future grants. Existing participants in the Plan had the option to make a one-time election to remain under the five-year vesting schedule with acceleration for long service or to change to a three-year vesting schedule with no such acceleration. RSUs granted to new participants will vest over the three-year term with no such acceleration. This has no impact on RSUs outstanding or the related disclosures in Note 7.
Compensation expense for awards is predominantly recognized using the straight-line method over the requisite service period for the entire award and forfeitures are recognized as they occur. Under accelerated vesting provisions, compensation expense is recognized upon achievement of the long-service term. The cumulative amount of compensation cost recognized at any point in time equals at least the portion of the grant-date fair value of the award that is vested at that date. The fair value of RSUs is calculated as the market value of the common stock on the measurement date less the present value of the expected dividends forgone during the vesting period.
Stock-based compensation expense is predominantly included in SG&A expenses in the consolidated statements of income. Certain stock-based compensation costs are capitalized or included in the cost of merchandise. See Note 7 for additional information.
Income Taxes
Income Taxes
The Company accounts for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributed to differences between the financial statement carrying amounts of existing assets and liabilities and their tax bases, credits and loss carry-forwards. Deferred tax assets and liabilities are measured using tax rates expected to apply to taxable
income in the years in which those temporary differences and carry-forwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is established when necessary to reduce deferred tax assets to amounts that are more likely than not expected to be realized.
The timing and amounts of deductible and taxable items and the probability of sustaining uncertain tax positions requires significant judgment. The benefits of uncertain tax positions are recorded in the Company’s consolidated financial statements only after determining a more-likely-than-not probability that the uncertain tax positions will withstand challenge from tax authorities. When facts and circumstances change, the Company reassesses these probabilities and records changes as appropriate.
Net Income per Common Share
Net Income per Common Share
The computation of basic net income per share uses the weighted average number of shares that were outstanding during the period. The computation of diluted net income per share uses the weighted average number of shares in the basic net income per share calculation plus the number of common shares that would be issued assuming vesting of all potentially dilutive common shares outstanding using the treasury stock method for shares subject to RSUs.
Stock Repurchase Programs
Stock Repurchase Programs
Repurchased shares of common stock are retired, in accordance with the Washington Business Corporation Act. The par value of repurchased shares is deducted from common stock and the excess repurchase price over par value is deducted by allocation to additional paid-in capital and retained earnings. The amount allocated to additional paid-in capital is the current value of additional paid-in capital per share outstanding and is applied to the number of shares repurchased. Any remaining amount is allocated to retained earnings. See Note 6 for additional information.
Recent Accounting Pronouncements Adopted and Not Yet Adopted
Recent Accounting Pronouncements Adopted
In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, which is intended to improve reportable segment disclosure requirements, primarily about significant segment expenses. The standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company adopted the ASU for the fiscal year ended August 31, 2025, on a retrospective basis for all prior periods presented in the financial statements.
Recent Accounting Pronouncements Not Yet Adopted
In December 2023, the FASB issued ASU 2023-09, which requires public business entities on an annual basis to disclose specific categories in the income-tax rate reconciliation, provide information for reconciling items that meet a quantitative threshold, and disclose certain information about income taxes paid. The standard is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The amendments should be applied on a prospective basis. Retrospective application is permitted.
In November 2024, the FASB issued 2024-03, which requires disaggregated disclosures of certain costs and expenses on the income statement on an annual and interim basis. The standard is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The amendments should be applied on a prospective basis. Retrospective application is permitted.
The Company is evaluating both standards.
v3.25.2
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Aug. 31, 2025
Accounting Policies [Abstract]  
Schedule of Merchandise Inventories
Merchandise inventories consist of the following:
20252024
United States $12,868 $13,625 
Canada1,907 1,895 
Other International3,341 3,127 
Merchandise inventories$18,116 $18,647 
Property, Plant and Equipment
The following table summarizes the Company's property and equipment balances at the end of 2025 and 2024:
Estimated Useful Lives20252024
LandN/A$10,323 $9,447 
Buildings and improvements
5-50 years
25,508 23,727 
Equipment and fixtures
3-20 years
13,127 12,387 
Construction in progressN/A1,882 1,389 
50,840 46,950 
Accumulated depreciation and amortization(18,931)(17,918)
Property and equipment, net$31,909 $29,032 
v3.25.2
Investments (Tables)
 12 Months Ended
Aug. 31, 2025
Investments, Debt and Equity Securities [Abstract]  
Available for Sale and Held to Maturity Investments
The Company’s investments were as follows:
2025:Cost
Basis		Unrealized
Gains, Net		Recorded
Basis
Available-for-sale:
Government and agency securities$783 $3 $786 
Held-to-maturity:
Certificates of deposit337 — 337 
Total short-term investments$1,120 $3 $1,123 
2024:Cost
Basis		Unrealized
Losses, Net		Recorded
Basis
Available-for-sale:
Government and agency securities$689 $(1)$688 
Held-to-maturity:
Certificates of deposit550 — 550 
Total short-term investments$1,239 $(1)$1,238 
Maturities of Available for Sale and Held to Maturity Securities
The maturities of available-for-sale and held-to-maturity securities at the end of 2025 are as follows:
 Available-For-SaleHeld-To-Maturity
 Cost BasisFair Value
Due in one year or less$119 $119 $337 
Due after one year through five years474 477 — 
Due after five years190 190 — 
Total$783 $786 $337 
v3.25.2
Fair Value Measurement (Tables)
 12 Months Ended
Aug. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value of Financial Assets and Liabilities Measured on Recurring Basis
The following table presents information regarding the Company’s financial assets and liabilities that are measured at fair value on a recurring basis and indicates the level within the hierarchy reflecting the valuation techniques utilized to determine such fair value:
Level 2
20252024
Investment in government and agency securities$786 $688 
Forward foreign-exchange contracts, in asset position(1)
6 1 
Forward foreign-exchange contracts, in (liability) position(1)
(14)(28)
Total$778 $661 
 ____________
(1)The asset and liability values are included in other current assets and other current liabilities, respectively, in the consolidated balance sheets.
v3.25.2
Debt (Tables)
 12 Months Ended
Aug. 31, 2025
Debt Disclosure [Abstract]  
Carrying Value of Company's Long-Term Debt The carrying value of long-term debt consisted of the following:
 20252024
3.000% Senior Notes due May 2027
$1,000 $1,000 
1.375% Senior Notes due June 2027
1,250 1,250 
1.600% Senior Notes due April 2030
1,750 1,750 
1.750% Senior Notes due April 2032
1,000 1,000 
Other long-term debt805 919 
Total long-term debt5,805 5,919 
Less unamortized debt discounts and issuance costs17 22 
Less current portion(1)
75 103 
Long-term debt, excluding current portion$5,713 $5,794 
_____________
(1)Net of unamortized debt discounts and issuance costs and included in other current liabilities in the accompanying consolidated balance sheets.
Schedule of Maturities of Long-term Debt
Maturities of long-term debt during the next five fiscal years and thereafter are as follows:
2026$75 
20272,250 
2028— 
2029148 
20301,750 
Thereafter
1,582 
Total
$5,805 
v3.25.2
Leases (Tables)
 12 Months Ended
Aug. 31, 2025
Leases [Abstract]  
DisclosureofSupplementalBalanceSheetInformationRelatedtoLeases
Information regarding the Company's lease assets and liabilities were as follows:
20252024
Assets
Operating lease right-of-use assets$2,725 $2,617 
Finance lease assets(1)
1,488 1,433 
Total lease assets$4,213 $4,050 
Liabilities
Current
Operating lease liabilities(2)
$208 $179 
Finance lease liabilities(2)
78 147 
Long-term
Operating lease liabilities2,460 2,375 
Finance lease liabilities(3)
1,401 1,351 
Total lease liabilities$4,147 $4,052 
 _______________
(1)Included in other long-term assets in the consolidated balance sheets.
(2)Included in other current liabilities in the consolidated balance sheets.
(3)Included in other long-term liabilities in the consolidated balance sheets.
20252024
Weighted-average remaining lease term (years)
Operating leases
2019
Finance leases
2523
Weighted-average discount rate
Operating leases
3.05 %2.67 %
Finance leases
4.63 %4.59 %
Lease, Cost
The components of lease expense, excluding short-term lease costs and sublease income (which were immaterial), were as follows:
202520242023
Operating lease costs(1)
$271 $284 $309 
Finance lease costs:
Amortization of lease assets(1)
102 97 169 
Interest on lease liabilities(2)
63 58 54 
Variable lease costs(1)
182 163 160 
Total lease costs$618 $602 $692 
 _______________
(1)Included in selling, general and administrative expenses and merchandise costs in the consolidated statements of income.
(2)Included in interest expense and merchandise costs in the consolidated statements of income.
Schedule of Cash Flow, Supplemental Disclosures
Supplemental cash flow information related to leases were as follows:
202520242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows — operating leases$255 $274 $287 
Operating cash flows — finance leases
58 58 54 
Financing cash flows — finance leases
147 136 291 
Operating lease assets obtained in exchange for new or modified leases294 125 202 
Finance lease assets obtained in exchange for new or modified leases131 200 100 
Schedule of Future Minimum Payments Under Operating and Financing Leases
As of August 31, 2025, future minimum payments during the next five fiscal years and thereafter are as follows:
Operating Leases(1)
Finance Leases
2026$267 $133 
2027250 132 
2028235 135 
2029204 122 
2030184 109 
Thereafter2,451 1,780 
Total(2)
3,591 2,411 
Less amount representing interest923 932 
Present value of lease liabilities$2,668 $1,479 
 _______________
(1)Operating lease payments have not been reduced by expected future sublease income of $92.
(2)Excludes $1,094 of lease payments for leases that have been signed but not commenced.
v3.25.2
Stockholders' Equity (Tables)
 12 Months Ended
Aug. 31, 2025
Stockholders' Equity Note [Abstract]  
Stock Repurchased Activity The following table summarizes the Company’s stock repurchase activity:
Shares
Repurchased
(000’s)		Average
Price per
Share		Total Cost
2025943 $957.66 $903 
20241,004 695.29 698 
20231,341 504.68 677 
v3.25.2
Stock-Based Compensation Plans (Tables)
 12 Months Ended
Aug. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Summary of RSU Transactions
The following table summarizes RSU transactions during 2025:
Number of
Units
(in 000’s)		Weighted-Average
Grant Date Fair
Value
Outstanding at the end of 20242,799 $463.24 
Granted1,095 883.46 
Vested and delivered(1,494)558.05 
Forfeited(92)567.87 
Outstanding at the end of 20252,308 $597.00 
Summary of Stock-Based Compensation Expense and Related Tax Benefits
The following table summarizes stock-based compensation expense and the related tax benefits:
202520242023
Stock-based compensation expense$860 $818 $774 
Less recognized income tax benefit
183 173 163 
Stock-based compensation expense, net$677 $645 $611 
v3.25.2
Income Taxes (Tables)
 12 Months Ended
Aug. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax, Domestic and Foreign
Income before income taxes is comprised of the following:
202520242023
Domestic$8,324 $7,255 $6,264 
Foreign2,494 2,485 2,223 
Total$10,818 $9,740 $8,487 
Schedule of Components of Income Tax Expense (Benefit)
The provisions for income taxes are as follows:
202520242023
Federal:
Current$1,395 $1,245 $1,056 
Deferred(42)48 33 
Total federal1,353 1,293 1,089 
State:
Current449 431 374 
Deferred(18)(77)10 
Total state431 354 384 
Foreign:
Current955 798 732 
Deferred(20)(72)(10)
Total foreign935 726 722 
Total provision for income taxes$2,719 $2,373 $2,195 
Schedule of Effective Income Tax Rate Reconciliation
The reconciliation between the statutory tax rate and the effective rate for 2025, 2024, and 2023 is as follows:
 202520242023
Federal taxes at statutory rate$2,272 21.0 %$2,045 21.0 %$1,782 21.0 %
State taxes, net338 3.1 288 3.0 302 3.6 
Foreign taxes, net222 2.1 109 1.1 160 1.9 
Employee stock ownership plan (ESOP)(28)(0.3)(120)(1.2)(25)(0.3)
Other(85)(0.8)51 0.5 (24)(0.3)
Total$2,719 25.1 %$2,373 24.4 %$2,195 25.9 %
Schedule of Deferred Tax Assets and Liabilities
The components of the deferred tax assets (liabilities) are as follows:
20252024
Deferred tax assets:
Equity compensation$100 $96 
Deferred income/membership fees369 313 
Foreign tax credit carry forward390 315 
Operating lease liabilities699 678 
Accrued liabilities and reserves917 873 
Total deferred tax assets2,475 2,275 
Valuation allowance(554)(494)
Total net deferred tax assets1,921 1,781 
Deferred tax liabilities:
Property and equipment(944)(948)
Merchandise inventories(305)(296)
Operating lease right-of-use assets(670)(652)
Foreign branch deferreds(103)(105)
Other(31)(1)
Total deferred tax liabilities(2,053)(2,002)
Net deferred tax liabilities$(132)$(221)
Schedule Of Gross Unrecognized Tax Benefits Table
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits for 2025 and 2024 is as follows:
20252024
Gross unrecognized tax benefit at beginning of year$81 $16 
Gross increases—current year tax positions9 3 
Gross increases—tax positions in prior years14 64 
Gross decreases—tax positions in prior years(38)— 
Gross decreases—settlements(1)— 
Lapse of statute of limitations— (2)
Gross unrecognized tax benefit at end of year$65 $81 
v3.25.2
Net Income per Common and Common Equivalent Share Net Income per Common and Common Equivalent Share (Tables)
 12 Months Ended
Aug. 31, 2025
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 basic and of potentially dilutive common shares outstanding (shares in 000’s):
202520242023
Net income
$8,099 $7,367 $6,292 
Weighted average basic shares
443,985 443,914 443,854 
RSUs818 845 598 
Weighted average diluted shares
444,803 444,759 444,452 
v3.25.2
Segment Reporting (Tables)
 12 Months Ended
Aug. 31, 2025
Segment Reporting [Abstract]  
Segment Reporting Information, by Segment
The following table provides the revenue, significant expenses, and operating income for the Company's reportable segments:
202520242023
United States
Total revenue$200,046 $184,143 $176,630 
Merchandise costs174,021 160,573 154,858 
Selling, general and administrative expenses19,147 17,353 16,380 
Operating income$6,878 $6,217 $5,392 
Canada
Total revenue$36,923 $34,874 $33,056 
Merchandise costs32,204 30,543 29,019 
Selling, general and administrative expenses2,870 2,683 2,589 
Operating income$1,849 $1,648 $1,448 
Other International
Total revenue$38,266 $35,436 $32,604 
Merchandise costs33,661 31,242 28,709 
Selling, general and administrative expenses2,949 2,774 2,621 
Operating income$1,656 $1,420 $1,274 
Total
Total revenue$275,235 $254,453 $242,290 
Merchandise costs239,886 222,358 212,586 
Selling, general and administrative expenses24,966 22,810 21,590 
Operating income10,383 9,285 8,114 
Other income(1)
435 455 373 
Income before income taxes$10,818 $9,740 $8,487 
 ____________
(1)Other income consists of interest expense and interest income and other, net.
The following table provides depreciation and amortization and other asset related information for the Company's reportable segments:
202520242023
United States
Depreciation and amortization$1,895 $1,730 $1,599 
Additions to property and equipment4,215 3,725 3,288 
Property and equipment, net22,790 20,638 18,760 
Total assets54,862 48,816 49,189 
Canada
Depreciation and amortization$196 $192 $183 
Additions to property and equipment580 351 281 
Property and equipment, net2,930 2,602 2,443 
Total assets7,304 6,915 6,420 
Other International
Depreciation and amortization$335 $315 $295 
Additions to property and equipment703 634 754 
Property and equipment, net6,189 5,792 5,481 
Total assets14,933 14,100 13,385 
Total
Depreciation and amortization$2,426 $2,237 $2,077 
Additions to property and equipment5,498 4,710 4,323 
Property and equipment, net31,909 29,032 26,684 
Total assets77,099 69,831 68,994 
Revenue from External Customers by Products and Services
The following table summarizes net sales by merchandise category; sales from e-commerce sites and business centers have been allocated to the applicable merchandise categories:
202520242023
Foods and Sundries
$109,564 $101,463 $96,175 
Non-Foods
71,190 63,973 60,865 
Fresh Foods
37,988 34,220 31,977 
Warehouse Ancillary and Other Businesses
51,170 49,969 48,693 
Total net sales
$269,912 $249,625 $237,710 
v3.25.2
Accounting Policies - Additional Information (Details)
Aug. 31, 2025
warehouse
states
Summary Of Significant Accounting Policies [Line Items]  
Number of warehouses operated 914
UNITED STATES  
Summary Of Significant Accounting Policies [Line Items]  
Number of warehouses operated 629
Number of states in country | states 47
CANADA  
Summary Of Significant Accounting Policies [Line Items]  
Number of warehouses operated 110
MEXICO  
Summary Of Significant Accounting Policies [Line Items]  
Number of warehouses operated 42
JAPAN  
Summary Of Significant Accounting Policies [Line Items]  
Number of warehouses operated 37
UNITED KINGDOM  
Summary Of Significant Accounting Policies [Line Items]  
Number of warehouses operated 29
KOREA  
Summary Of Significant Accounting Policies [Line Items]  
Number of warehouses operated 20
AUSTRALIA  
Summary Of Significant Accounting Policies [Line Items]  
Number of warehouses operated 15
TAIWAN  
Summary Of Significant Accounting Policies [Line Items]  
Number of warehouses operated 14
CHINA  
Summary Of Significant Accounting Policies [Line Items]  
Number of warehouses operated 7
SPAIN  
Summary Of Significant Accounting Policies [Line Items]  
Number of warehouses operated 5
FRANCE  
Summary Of Significant Accounting Policies [Line Items]  
Number of warehouses operated 2
SWEDEN  
Summary Of Significant Accounting Policies [Line Items]  
Number of warehouses operated 2
ICELAND  
Summary Of Significant Accounting Policies [Line Items]  
Number of warehouses operated 1
NEW ZEALAND  
Summary Of Significant Accounting Policies [Line Items]  
Number of warehouses operated 1
v3.25.2
Accounting Policies - Cash and Cash Equivalents (Details) - USD ($)
$ in Millions
Aug. 31, 2025
Sep. 01, 2024
Accounting Policies [Abstract]    
Credit and debit card receivables, at carrying value $ 2,670 $ 2,519
v3.25.2
Accounting Policies - Merchandise Inventories (Details) - USD ($)
$ in Millions
 12 Months Ended
Aug. 31, 2025
Sep. 01, 2024
Accounting Policies [Abstract]    
Inventory, LIFO Reserve, Period Charge $ 142  
Schedule of Inventory [Line Items]    
Merchandise inventories 18,116 $ 18,647
UNITED STATES    
Schedule of Inventory [Line Items]    
LIFO Inventory Amount 12,868 13,625
CANADA    
Schedule of Inventory [Line Items]    
FIFO Inventory Amount 1,907 1,895
Other International Operations    
Schedule of Inventory [Line Items]    
FIFO Inventory Amount $ 3,341 $ 3,127
v3.25.2
Accounting Policies - Property and Equipment, Net (Details) - USD ($)
$ in Millions
Aug. 31, 2025
Sep. 01, 2024
Sep. 03, 2023
Property and Equipment, Net [Line Items]      
Land $ 10,323 $ 9,447  
Buildings and improvements 25,508 23,727  
Equipment and fixtures 13,127 12,387  
Construction in progress 1,882 1,389  
Gross property and equipment 50,840 46,950  
Accumulated depreciation and amortization (18,931) (17,918)  
Property and equipment, net $ 31,909 $ 29,032 $ 26,684
Building and improvements [Member] | Minimum [Member]      
Property and Equipment, Net [Line Items]      
Property, plant and equipment, useful life 5 years    
Building and improvements [Member] | Maximum [Member]      
Property and Equipment, Net [Line Items]      
Property, plant and equipment, useful life 50 years    
Equipment and Fixtures [Member] | Minimum [Member]      
Property and Equipment, Net [Line Items]      
Property, plant and equipment, useful life 3 years    
Equipment and Fixtures [Member] | Maximum [Member]      
Property and Equipment, Net [Line Items]      
Property, plant and equipment, useful life 20 years    
v3.25.2
Accounting Policies - Leases (Details)
$ in Millions
 12 Months Ended
Sep. 03, 2023
USD ($)
Accounting Policies [Abstract]  
Finance Lease, Impairment Loss $ 391
v3.25.2
Accounting Policies - Goodwill and Acquired Intangible Assets (Details) - USD ($)
$ in Millions
Aug. 31, 2025
Sep. 01, 2024
Sep. 03, 2023
Goodwill [Line Items]      
Goodwill   $ 994 $ 994
Operating Segments | UNITED STATES      
Goodwill [Line Items]      
Goodwill $ 953 953 953
Operating Segments | CANADA      
Goodwill [Line Items]      
Goodwill 26 26 26
Operating Segments | Other International Operations      
Goodwill [Line Items]      
Goodwill $ 15 $ 15 $ 15
v3.25.2
Accounting Policies - Insurance/Self-Insurance Liabilities (Details) - USD ($)
$ in Millions
Aug. 31, 2025
Sep. 01, 2024
Accounting Policies [Abstract]    
Accrued insurance $ 1,878 $ 1,612
v3.25.2
Accounting Policies - Derivatives (Details) - USD ($)
$ in Millions
Aug. 31, 2025
Sep. 01, 2024
Forward foreign exchange contracts    
Derivative [Line Items]    
Derivative, Notional Amount $ 1,184 $ 1,212
v3.25.2
Accounting Policies - Revenue Recognition (Details) - USD ($)
$ in Millions
 12 Months Ended
Aug. 31, 2025
Sep. 01, 2024
Sep. 03, 2023
Summary Of Significant Accounting Policies [Line Items]      
Deferred membership fees $ 2,854 $ 2,501  
Reduction in sales $ 3,007 $ 2,804 $ 2,576
v3.25.2
Accounting Policies - Retirement Plans (Details) - USD ($)
$ in Millions
 12 Months Ended
Aug. 31, 2025
Sep. 01, 2024
Sep. 03, 2023
Accounting Policies [Abstract]      
Minimum number of days of employment to qualify for retirement plan 90 days    
Defined contribution plan, cost recognized $ 1,061 $ 963 $ 914
v3.25.2
Accounting Policies - Stock-Based Compensation (Details)
 12 Months Ended
Aug. 31, 2025
Employees [Member]  
Summary Of Significant Accounting Policies [Line Items]  
Share-based compensation arrangement by share-based payment award, award vesting period 5 years
Share-based compensation arrangement by share-based payment number of years of service 25 years
Non Employee Directors [Member]  
Summary Of Significant Accounting Policies [Line Items]  
Share-based compensation arrangement by share-based payment award, award vesting period 3 years
v3.25.2
Investments - Available for Sale and Held to Maturity Investments (Details) - USD ($)
$ in Millions
 12 Months Ended
Aug. 31, 2025
Sep. 01, 2024
Available For Sale And Held To Maturity [Line Items]    
Available-for-sale, cost basis $ 783  
Unrealized Gains (Losses), Net 3 $ (1)
Available-for-sale, recorded basis, total 786  
Held-to-maturity, cost basis 337  
Total investments, cost basis 1,120 1,239
Total investments, recorded basis 1,123 1,238
US Government Agencies Debt Securities [Member]    
Available For Sale And Held To Maturity [Line Items]    
Available-for-sale, cost basis 783 689
Unrealized Gains (Losses), Net 3 (1)
Available-for-sale, recorded basis, total 786 688
Certificates of Deposit [Member]    
Available For Sale And Held To Maturity [Line Items]    
Held-to-maturity, cost basis 337 550
Held-to-maturity, recorded basis $ 337 $ 550
v3.25.2
Investments - Maturities of Available for Sale and Held to Maturity Securities (Details)
$ in Millions
Aug. 31, 2025
USD ($)
Available-For-Sale, Cost Basis  
Due in one year or less $ 119
Due after one year through five years 474
Due after five years 190
Available-for-sale, cost basis, total 783
Available-For-Sale, Fair Value  
Due in one year or less 119
Due after one year through five years 477
Due after five years 190
Available-for-sale, recorded basis, total 786
Held-To-Maturity  
Due in one year or less 337
Due after one year through five years 0
Due after five years 0
Held-to-maturity, cost basis, total $ 337
v3.25.2
Fair Value Measurement - Fair Value of Financial Assets and Financial Liabilities Measured on Recurring Basis (Details) - Fair Value, Recurring [Member] - Fair Value, Inputs, Level 2 [Member] - USD ($)
$ in Millions
Aug. 31, 2025
Sep. 01, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value of assets measured on recurring basis $ 778 $ 661
Government and Agency Securities [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value of assets measured on recurring basis 786 688
Foreign Exchange Forward [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value of assets measured on recurring basis [1] 6 1
Fair value of liabilities measured on recurring basis [1] $ (14) $ (28)
[1] The asset and liability values are included in other current assets and other current liabilities, respectively, in the consolidated balance sheets.
v3.25.2
Debt, Schedule Of Short-Term Debt (Details) - USD ($)
$ in Millions
Aug. 31, 2025
Sep. 01, 2024
Debt Disclosure [Abstract]    
Line of credit facility, current borrowing capacity $ 1,220 $ 1,198
v3.25.2
Debt, Schedule of Long-Term Debt (Details) - USD ($)
$ in Millions
 12 Months Ended
Aug. 31, 2025
Sep. 01, 2024
Sep. 03, 2023
Debt Instrument [Line Items]      
Debt Instrument, Redemption Price, Percentage 100.00%    
Redemption Price Certain Events 101.00%    
Proceeds from Issuance of Other Long-Term Debt   $ 500  
Long-term Debt, Fair Value $ 5,370 5,412  
Minimum [Member]      
Debt Instrument [Line Items]      
Debt instrument, interest rate, stated percentage 1.40%    
Maximum [Member]      
Debt Instrument [Line Items]      
Debt instrument, interest rate, stated percentage 2.12%    
SeniorNotesOnePointZeroPercentDueMayTwentyTwentyThree      
Debt Instrument [Line Items]      
Repayments of Debt     $ 75
Senior Notes Zero Point Seven Nine Zero Percent Due May Twenty Twenty Five      
Debt Instrument [Line Items]      
Repayments of Debt $ 103    
SeniorNotesZeroPointNineTwoPercentDueJulyTwentyTwentyFour      
Debt Instrument [Line Items]      
Repayments of Debt   $ 77  
2.750% Senior Notes due May 2024      
Debt Instrument [Line Items]      
Debt instrument, interest rate, stated percentage   2.75%  
Repayments of Debt   $ 1,000  
v3.25.2
Debt, Carrying Value of Long-Term Debt (Details) - USD ($)
$ in Millions
Aug. 31, 2025
Sep. 01, 2024
Debt Instrument [Line Items]    
Long-Term Debt, Gross $ 5,805 $ 5,919
Less unamortized debt discounts and issuance costs 17 22
Current portion of long-term debt [1] 75 103
Long-term debt, excluding current portion 5,713 $ 5,794
2.750% Senior Notes due May 2024    
Debt Instrument [Line Items]    
Debt instrument, interest rate, stated percentage   2.75%
3.000% Senior Notes due May 2027    
Debt Instrument [Line Items]    
Long-Term Debt, Gross $ 1,000 $ 1,000
Debt instrument, interest rate, stated percentage 3.00%  
1.375% Senior Notes due June 2027    
Debt Instrument [Line Items]    
Long-Term Debt, Gross $ 1,250 1,250
Debt instrument, interest rate, stated percentage 1.375%  
1.600% Senior Notes due April 2030    
Debt Instrument [Line Items]    
Long-Term Debt, Gross $ 1,750 1,750
Debt instrument, interest rate, stated percentage 1.60%  
1.750% Senior Notes due April 2032    
Debt Instrument [Line Items]    
Long-Term Debt, Gross $ 1,000 1,000
Debt instrument, interest rate, stated percentage 1.75%  
Other Long Term Debt    
Debt Instrument [Line Items]    
Long-Term Debt, Gross $ 805 $ 919
[1] Net of unamortized debt discounts and issuance costs and included in other current liabilities in the accompanying consolidated balance sheets.
v3.25.2
Debt, Schedule Of Long-Term Debt Maturities (Details) - USD ($)
$ in Millions
Aug. 31, 2025
Sep. 01, 2024
Debt Disclosure [Abstract]    
2025 $ 75  
2026 2,250  
2027 0  
2028 148  
2029 1,750  
Thereafter 1,582  
Long-Term Debt, Gross $ 5,805 $ 5,919
v3.25.2
Leases, Supplemental Balance Sheet Information (Details) - USD ($)
$ in Millions
Aug. 31, 2025
Sep. 01, 2024
Operating Lease and Finance Lease Right-of-Use-Assets [Abstract]    
Operating lease right-of-use assets $ 2,725 $ 2,617
Finance lease assets $ 1,488 $ 1,433
Finance lease assets Other long-term assets Other long-term assets
OperatingLeaseandFinanceLeaserightofuseassets $ 4,213 $ 4,050
Current Operating and Finance Lease Liabilities [Abstract]    
Current operating lease liabilities 208 179
Current finance lease liabilities $ 78 $ 147
Operating lease liabilities Other current liabilities Other current liabilities
Finance lease liabilities Other current liabilities Other current liabilities
Long-Term Operating and Finance Lease Liabilities [Abstract]    
Long-term operating lease liabilities $ 2,460 $ 2,375
Long-term finance lease liabilities $ 1,401 $ 1,351
Long-term finance lease liabilities Other long-term liabilities Other long-term liabilities
OperatingLeaseandFinanceLeaseLiabilities $ 4,147 $ 4,052
Other Supplemental Balance Sheet Information [Abstract]    
Operating Lease, Weighted Average Remaining Lease Term 20 years 19 years
Finance Lease, Weighted Average Remaining Lease Term 25 years 23 years
Operating Lease, Weighted Average Discount Rate, Percent 3.05% 2.67%
Finance Lease, Weighted Average Discount Rate, Percent 4.63% 4.59%
v3.25.2
Leases, Components of Lease Expense (Details) - USD ($)
$ in Millions
 12 Months Ended
Aug. 31, 2025
Sep. 01, 2024
Sep. 03, 2023
Lease, Cost [Abstract]      
Operating Lease, Cost $ 271 $ 284 $ 309
Finance Lease, Right-of-Use Asset, Amortization 102 97 169
Finance Lease, Interest Expense 63 58 54
Variable Lease, Cost 182 163 160
Total lease costs $ 618 $ 602 $ 692
v3.25.2
Leases, Supplemental Cash Flow Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Aug. 31, 2025
Sep. 01, 2024
Sep. 03, 2023
Leases [Abstract]      
Operating cash flows - operating leases $ 255 $ 274 $ 287
Operating cash flows - finance leases 58 58 54
Financing cash flows - finance leases 147 136 291
Operating lease assets obtained in exchange for new or modified leases 294 125 202
Finance lease assets obtained in exchange for new or modified leases $ 131 $ 200 $ 100
v3.25.2
Leases, Future Minimum Payments (Details)
$ in Millions
Aug. 31, 2025
USD ($)
Operating Leases, Future Minimum Payments Due, Rolling Maturity [Abstract]  
2025 $ 267
2026 250
2027 235
2028 204
2029 184
Thereafter 2,451
Total 3,591
Less amount representing interest (923)
Present value of lease liabilities 2,668
Finance Lease, Liability, Payment, Due, Rolling Maturity [Abstract]  
2025 133
2026 132
2027 135
2028 122
2029 109
Thereafter 1,780
Total 2,411
Less amount representing interest (932)
Present value of lease liabilities 1,479
Lessor, Operating Lease, Payments to be Received 92
LesseeOperatingandFinancingLeasesNotYetCommenced $ 1,094
v3.25.2
Stockholders' Equity - Additional Information (Details) - USD ($)
$ / shares in Units, $ in Millions
 4 Months Ended 12 Months Ended
Aug. 31, 2025
Aug. 31, 2025
Sep. 01, 2024
Dividends Payable [Line Items]      
Common Stock, Dividends, Per Share, Declared $ 1.30 $ 4.92 $ 19.36
Dividends, Common Stock, Cash   $ 2,183 $ 8,589
Special Dividend [Member]      
Dividends Payable [Line Items]      
Common Stock, Dividends, Per Share, Declared     $ 15
Special Dividend [Member] | Common Stock      
Dividends Payable [Line Items]      
Dividends     $ 6,655
v3.25.2
Stockholders' Equity (Stock Repurchased During Period) (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 12 Months Ended
Aug. 31, 2025
Sep. 01, 2024
Sep. 03, 2023
Stockholders' Equity Note [Abstract]      
Stock Repurchase Program, Authorized Amount $ 4,000    
Stock Repurchase Program, Remaining Authorized Repurchase Amount $ 1,962    
Repurchases of common stock, shares 943 1,004 1,341
Average price per share $ 957.66 $ 695.29 $ 504.68
Repurchases of common stock, value $ 903 $ 698 $ 677
v3.25.2
Stock-Based Compensation Plans - Additional Information (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 12 Months Ended
Aug. 31, 2025
Sep. 01, 2024
Sep. 03, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Weighted-average grant date fair value $ 883.46 $ 547.26 $ 471.47
RSUs vested, but not yet delivered (shares) 1,494    
Restricted Stock Units (RSUs)      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of shares available to be granted as RSUs 6,275    
Time-based RSUs awards outstanding 2,187    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross 121    
Unrecognized compensation cost $ 897    
Weighted-average recognition period 1 year 7 months 6 days    
RSUs vested, but not yet delivered (shares) 766    
Performance Shares [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Outstanding Performance Based To Be Granted 70    
Maximum [Member] | Restricted Stock Units (RSUs)      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of shares available to be granted as RSUs 15,885    
v3.25.2
Stock-Based Compensation Plans - Summary of RSU Transactions (Details) - $ / shares
shares in Thousands
 12 Months Ended
Aug. 31, 2025
Sep. 01, 2024
Sep. 03, 2023
Number of units      
Outstanding at the end of 2024 2,799    
Granted 1,095    
Vested and delivered (1,494)    
Forfeited (92)    
Outstanding at the end of 2025 2,308 2,799  
Weighted average grant date fair value      
Outstanding at the end of 2024 $ 463.24    
Granted 883.46 $ 547.26 $ 471.47
Vested and delivered 558.05    
Forfeited 567.87    
Outstanding at the end of 2025 $ 597.00 $ 463.24  
v3.25.2
Stock-Based Compensation Plans - Summary of Stock-Based Compensation Expense (Details) - USD ($)
$ in Millions
 12 Months Ended
Aug. 31, 2025
Sep. 01, 2024
Sep. 03, 2023
Total stock-based compensation expense before income taxes $ 860 $ 818 $ 774
Less income tax benefit 183 173 163
Stock-based compensation expense, net $ 677 $ 645 $ 611
v3.25.2
Income Taxes (Income Before Income Taxes) (Details) - USD ($)
$ in Millions
 12 Months Ended
Aug. 31, 2025
Sep. 01, 2024
Sep. 03, 2023
Income Tax Disclosure [Abstract]      
Domestic $ 8,324 $ 7,255 $ 6,264
Foreign 2,494 2,485 2,223
INCOME BEFORE INCOME TAXES $ 10,818 $ 9,740 $ 8,487
v3.25.2
Income Taxes (Schedule of Foreign And Domestic Income Taxes) (Details) - USD ($)
$ in Millions
 12 Months Ended
Aug. 31, 2025
Sep. 01, 2024
Sep. 03, 2023
Federal [Abstract]      
Current $ 1,395 $ 1,245 $ 1,056
Deferred (42) 48 33
Total federal 1,353 1,293 1,089
State [Abstract]      
Current 449 431 374
Deferred (18) (77) 10
Total state 431 354 384
Foreign [Abstract]      
Current 955 798 732
Deferred (20) (72) (10)
Total foreign 935 726 722
Total provision for income taxes $ 2,719 $ 2,373 $ 2,195
v3.25.2
Income Taxes (Reconciliation Between Statutory And Effective Rates) (Details) - USD ($)
$ in Millions
 12 Months Ended
Aug. 31, 2025
Sep. 01, 2024
Sep. 03, 2023
Federal taxes at statutory rate $ 2,272 $ 2,045 $ 1,782
Federal taxes at statutory rate (percent) 21.00% 21.00% 21.00%
State taxes, net $ 338 $ 288 $ 302
State taxes, net (percent) 3.10% 3.00% 3.60%
Foreign taxes, net $ 222 $ 109 $ 160
Foreign taxes, net (percent) 2.10% 1.10% 1.90%
Employee stock ownership plan (ESOP) $ (28) $ (120) $ (25)
Employee stock ownership plan (ESOP) (percent) (0.30%) (1.20%) (0.30%)
Other $ (85) $ 51 $ (24)
Other (percent) (0.80%) 0.50% (0.30%)
Total provision for income taxes $ 2,719 $ 2,373 $ 2,195
Total (percent) 25.10% 24.40% 25.90%
Provision for income taxes $ 2,719 $ 2,373 $ 2,195
Other Tax Expense (Benefit)   63  
Special Dividend [Member]      
Total provision for income taxes   94  
Provision for income taxes   94  
Restricted Stock Units (RSUs)      
Total provision for income taxes 100 45 54
Provision for income taxes $ 100 $ 45 $ 54
v3.25.2
Income Taxes (Components of Deferred Tax Assets And Liabilities) (Details) - USD ($)
$ in Millions
Aug. 31, 2025
Sep. 01, 2024
Deferred Tax Assets    
Equity compensation $ 100 $ 96
Deferred Income/membership fees 369 313
Foreign tax credit carry forward 390 315
Operating lease liabilities 699 678
Accrued liabilities and reserves 917 873
Total deferred tax assets 2,475 2,275
Valuation allowance (554) (494)
Total net deferred tax assets 1,921 1,781
Deferred Tax Liabilities    
Property and equipment (944) (948)
Merchandise inventories (305) (296)
Operating lease right-of-use assets (670) (652)
Foreign branch deferreds (103) (105)
Other (31) (1)
Total deferred tax liabilities 2,053 2,002
Net deferred tax liabilities $ 132 $ 221
v3.25.2
Income Taxes Narrative (Details) - USD ($)
$ in Millions
Aug. 31, 2025
Sep. 01, 2024
Tax Credit Carryforward [Line Items]    
Deferred Tax Liabilities $ 2,053 $ 2,002
Valuation Allowances 554 494
Undistributed Earnings of Foreign Subsidiaries 3,177  
Other Noncurrent Assets    
Tax Credit Carryforward [Line Items]    
Deferred Tax Assets, Net 592 548
Other Noncurrent Liabilities    
Tax Credit Carryforward [Line Items]    
Deferred Tax Liabilities $ 724 $ 769
v3.25.2
Income Taxes (Gross Unrecognized Tax Benefits) (Details) - USD ($)
$ in Millions
 12 Months Ended
Aug. 31, 2025
Sep. 01, 2024
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]    
Gross unrecognized tax benefit at beginning of year $ 81 $ 16
Gross increases—current year tax positions 9 3
Gross increases—tax positions in prior years 14 64
Gross decreases—tax positions in prior years (38) 0
Gross decreases—settlements 1 0
Lapse of statute of limitations 0 (2)
Gross unrecognized tax benefit at end of year 65 81
Unrecognized tax benefits that would impact effective tax rate $ 65 $ 79
v3.25.2
Net Income per Common and Common Equivalent Share - Schedule of Earnings per Share Effect on Net Income and Weighted Averegae Number of Dilutive Potential Common Stock (Details) - USD ($)
shares in Thousands, $ in Millions
 12 Months Ended
Aug. 31, 2025
Sep. 01, 2024
Sep. 03, 2023
Earnings Per Share [Abstract]      
NET INCOME $ 8,099 $ 7,367 $ 6,292
Weighted average basic shares 443,985 443,914 443,854
RSUs and other 818 845 598
Weighted average diluted shares 444,803 444,759 444,452
v3.25.2
Segment Reporting Information by Segment (Details) - USD ($)
$ in Millions
 12 Months Ended
Aug. 31, 2025
Sep. 01, 2024
Sep. 03, 2023
Segment Reporting Information [Line Items]      
Total revenue $ 275,235 $ 254,453 $ 242,290
Merchandise costs 239,886 222,358 212,586
Selling, general and administrative 24,966 22,810 21,590
Operating income 10,383 9,285 8,114
Other Income [1] 435 455 373
Income before Income Taxes 10,818 9,740 8,487
Operating Segments | United States      
Segment Reporting Information [Line Items]      
Total revenue 200,046 184,143 176,630
Merchandise costs 174,021 160,573 154,858
Selling, general and administrative 19,147 17,353 16,380
Operating income 6,878 6,217 5,392
Operating Segments | Canada      
Segment Reporting Information [Line Items]      
Total revenue 36,923 34,874 33,056
Merchandise costs 32,204 30,543 29,019
Selling, general and administrative 2,870 2,683 2,589
Operating income 1,849 1,648 1,448
Operating Segments | Other International Operations      
Segment Reporting Information [Line Items]      
Total revenue 38,266 35,436 32,604
Merchandise costs 33,661 31,242 28,709
Selling, general and administrative 2,949 2,774 2,621
Operating income $ 1,656 $ 1,420 $ 1,274
[1] Other income consists of interest expense and interest income and other, net.
v3.25.2
Segment Reporting Information by Segment (Details) - USD ($)
$ in Millions
 12 Months Ended
Aug. 31, 2025
Sep. 01, 2024
Sep. 03, 2023
Segment Reporting Information [Line Items]      
Depreciation and amortization $ 2,426 $ 2,237 $ 2,077
Additions to property and equipment 5,498 4,710 4,323
Property and equipment, net 31,909 29,032 26,684
Total assets 77,099 69,831 68,994
Operating Segments | United States      
Segment Reporting Information [Line Items]      
Depreciation and amortization 1,895 1,730 1,599
Additions to property and equipment 4,215 3,725 3,288
Property and equipment, net 22,790 20,638 18,760
Total assets 54,862 48,816 49,189
Operating Segments | Canada      
Segment Reporting Information [Line Items]      
Depreciation and amortization 196 192 183
Additions to property and equipment 580 351 281
Property and equipment, net 2,930 2,602 2,443
Total assets 7,304 6,915 6,420
Operating Segments | Other International Operations      
Segment Reporting Information [Line Items]      
Depreciation and amortization 335 315 295
Additions to property and equipment 703 634 754
Property and equipment, net 6,189 5,792 5,481
Total assets $ 14,933 $ 14,100 $ 13,385
v3.25.2
Segment Reporting Information by Item Category (Details) - USD ($)
$ in Millions
 12 Months Ended
Aug. 31, 2025
Sep. 01, 2024
Sep. 03, 2023
Revenue from External Customer [Line Items]      
Net Sales $ 275,235 $ 254,453 $ 242,290
Food and Sundries [Member]      
Revenue from External Customer [Line Items]      
Net Sales 109,564 101,463 96,175
Non-Foods [Member]      
Revenue from External Customer [Line Items]      
Net Sales 71,190 63,973 60,865
Fresh Foods [Member]      
Revenue from External Customer [Line Items]      
Net Sales 37,988 34,220 31,977
Warehouse ancillary and other businesses      
Revenue from External Customer [Line Items]      
Net Sales 51,170 49,969 48,693
Net Sales      
Revenue from External Customer [Line Items]      
Net Sales $ 269,912 $ 249,625 $ 237,710