COSTCO WHOLESALE CORP /NEW, 10-Q filed on 6/1/2023
Quarterly Report
v3.23.1
Cover - shares
 8 Months Ended
May 07, 2023
May 24, 2023
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date May 07, 2023  
Document Fiscal Year Focus 2023  
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, $.005 Par Value  
Trading Symbol COST  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   443,148,481
Amendment Flag false  
Document Fiscal Period Focus Q3  
Entity Central Index Key 0000909832  
Current Fiscal Year End Date --09-03  
v3.23.1
Condensed Consolidated Statements Of Income - USD ($)
shares in Thousands, $ in Millions
 3 Months Ended 8 Months Ended
May 07, 2023
May 08, 2022
May 07, 2023
May 08, 2022
REVENUE        
Total Revenue $ 53,648 $ 52,596 $ 163,351 $ 154,863
OPERATING EXPENSES        
Merchandise costs 47,175 46,355 143,367 135,824
Selling, general and administrative 4,794 4,450 14,651 13,743
Operating income 1,679 1,791 5,333 5,296
OTHER INCOME (EXPENSE)        
Interest expense (36) (35) (104) (110)
Interest income and other, net 128 71 295 138
INCOME BEFORE INCOME TAXES 1,771 1,827 5,524 5,324
Provision for income taxes 469 455 1,392 1,287
Net income including noncontrolling interests 1,302 1,372 4,132 4,037
Net income attributable to noncontrolling interests 0 (19) 0 (61)
NET INCOME ATTRIBUTABLE TO COSTCO $ 1,302 $ 1,353 $ 4,132 $ 3,976
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO:        
Basic (in dollars per share) $ 2.94 $ 3.05 $ 9.31 $ 8.96
Diluted (in dollars per share) $ 2.93 $ 3.04 $ 9.30 $ 8.94
Shares used in calculation (000's)        
Basic (shares) 443,814 443,700 443,843 443,567
Diluted (shares) 444,360 444,886 444,455 444,802
Net Sales        
REVENUE        
Total Revenue $ 52,604 $ 51,612 $ 160,280 $ 151,966
Membership fees        
REVENUE        
Total Revenue $ 1,044 $ 984 $ 3,071 $ 2,897
v3.23.1
Condensed Consolidated Statements Of Comprehensive Income - USD ($)
$ in Millions
 3 Months Ended 8 Months Ended
May 07, 2023
May 08, 2022
May 07, 2023
May 08, 2022
Statement of Comprehensive Income [Abstract]        
NET INCOME INCLUDING NONCONTROLLING INTERESTS $ 1,302 $ 1,372 $ 4,132 $ 4,037
Foreign-currency translation adjustment and other, net (8) (388) 149 (495)
Comprehensive income 1,294 984 4,281 3,542
Less: Comprehensive income attributable to noncontrolling interests 0 (13) 0 31
COMPREHENSIVE INCOME ATTRIBUTABLE TO COSTCO $ 1,294 $ 997 $ 4,281 $ 3,511
v3.23.1
Condensed Consolidated Balance Sheets - USD ($)
May 07, 2023
Aug. 28, 2022
CURRENT ASSETS    
Cash and cash equivalents $ 12,493,000,000 $ 10,203,000,000
Short-term investments 1,215,000,000 846,000,000
Receivables, net 2,502,000,000 2,241,000,000
Merchandise inventories 16,324,000,000 17,907,000,000
Other current assets 1,755,000,000 1,499,000,000
Total current assets 34,289,000,000 32,696,000,000
OTHER ASSETS    
Property and equipment, net 25,931,000,000 24,646,000,000
Operating lease right-of-use assets 2,806,000,000 2,774,000,000
Other long-term assets 3,726,000,000 4,050,000,000
TOTAL ASSETS 66,752,000,000 64,166,000,000
CURRENT LIABILITIES    
Accounts payable 16,853,000,000 17,848,000,000
Accrued salaries and benefits 4,117,000,000 4,381,000,000
Accrued member rewards 2,076,000,000 1,911,000,000
Deferred membership fees 2,436,000,000 2,174,000,000
Current portion of long-term debt [1] 0 73,000,000
Other current liabilities 6,226,000,000 5,611,000,000
Total current liabilities 31,708,000,000 31,998,000,000
OTHER LIABILITIES    
Long-term debt, excluding current portion 6,497,000,000 6,484,000,000
Long-term operating lease liabilities 2,507,000,000 2,482,000,000
Other long-term liabilities 2,467,000,000 2,555,000,000
TOTAL LIABILITIES 43,179,000,000 43,519,000,000
EQUITY    
Preferred stock $.005 par value; 100,000,000 shares authorized; no shares issued and outstanding 0 0
Common stock $0.005 par value; 900,000,000 shares authorized; 443,222,000 and 442,664,000 shares issued and outstanding 2,000,000 2,000,000
Additional paid-in capital 7,211,000,000 6,884,000,000
Accumulated other comprehensive loss (1,680,000,000) (1,829,000,000)
Retained earnings 18,035,000,000 15,585,000,000
Total Costco stockholders' equity 23,568,000,000 20,642,000,000
Noncontrolling interests 5,000,000 5,000,000
TOTAL EQUITY 23,573,000,000 20,647,000,000
TOTAL LIABILITIES AND EQUITY $ 66,752,000,000 $ 64,166,000,000
[1] Net of unamortized debt discounts and issuance costs
v3.23.1
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
May 07, 2023
Aug. 28, 2022
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 443,222,000 442,664,000
Common Stock, Shares, Outstanding 443,222,000 442,664,000
v3.23.1
Consolidated Statement of Stockholders' Equity Statement - USD ($)
shares in Thousands, $ in Millions
Total
Common Stock [Member]
Additional Paid-in Capital [Member]
AOCI Attributable to Parent [Member]
Retained Earnings [Member]
Parent [Member]
Noncontrolling Interest [Member]
Common Stock at beginning of period (shares) at Aug. 29, 2021   441,825          
Equity at beginning of period at Aug. 29, 2021 $ 18,078 $ 4 $ 7,031 $ (1,137) $ 11,666 $ 17,564 $ 514
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest 4,037       3,976 3,976 61
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax (495)     (465)   (465) (30)
APIC, Share-based Payment Arrangement, Increase for Cost Recognition 609   609     609  
Stock Issued During Period, Shares, Restricted Stock Award, Gross   1,694          
Stock Issued During Period, Value, Stock Options Exercised $ (360)   (360)     (360)  
Stock Repurchased and Retired During Period, Shares (490) (490)          
Stock Repurchased and Retired During Period, Value $ (257)   (8)   (249) (257)  
Cash dividends declared (1,099)       (1,099) (1,099)  
Common Stock at end of period (shares) at May. 08, 2022   443,029          
Equity at end of period at May. 08, 2022 20,513 $ 4 7,272 (1,602) 14,294 19,968 545
Common Stock at beginning of period (shares) at Feb. 13, 2022   443,279          
Equity at beginning of period at Feb. 13, 2022 19,976 $ 4 7,186 (1,246) 13,474 19,418 558
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest 1,372       1,353 1,353 19
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax (388)     (356)   (356) (32)
APIC, Share-based Payment Arrangement, Increase for Cost Recognition 91   91     91  
Stock Issued During Period, Shares, Restricted Stock Award, Gross   4          
Stock Issued During Period, Value, Stock Options Exercised $ (1)   (1)     (1)  
Stock Repurchased and Retired During Period, Shares (254) (254)          
Stock Repurchased and Retired During Period, Value $ (139)   (4)   (135) (139)  
Cash dividends declared (398)       (398) (398)  
Common Stock at end of period (shares) at May. 08, 2022   443,029          
Equity at end of period at May. 08, 2022 $ 20,513 $ 4 7,272 (1,602) 14,294 19,968 545
Common Stock at beginning of period (shares) at Aug. 28, 2022 442,664 442,664          
Equity at beginning of period at Aug. 28, 2022 $ 20,647 $ 2 6,884 (1,829) 15,585 20,642 5
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest 4,132       4,132 4,132  
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax 149     149   149  
APIC, Share-based Payment Arrangement, Increase for Cost Recognition 645   645     645  
Stock Issued During Period, Shares, Restricted Stock Award, Gross   1,466          
Stock Issued During Period, Value, Stock Options Exercised $ (302)   (302)     (302)  
Stock Repurchased and Retired During Period, Shares (908) (908)          
Stock Repurchased and Retired During Period, Value $ (447)   (16)   (431) (447)  
Cash dividends declared $ (1,251)       (1,251) (1,251)  
Common Stock at end of period (shares) at May. 07, 2023 443,222 443,222          
Equity at end of period at May. 07, 2023 $ 23,573 $ 2 7,211 (1,680) 18,035 23,568 5
Common Stock at beginning of period (shares) at Feb. 12, 2023   443,550          
Equity at beginning of period at Feb. 12, 2023 22,799 $ 2 7,123 (1,672) 17,341 22,794 5
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest 1,302       1,302 1,302 0
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax (8)     (8)   (8) 0
APIC, Share-based Payment Arrangement, Increase for Cost Recognition 94   94     94  
Stock Issued During Period, Shares, Restricted Stock Award, Gross   1          
Stock Issued During Period, Value, Stock Options Exercised $ 0   0     0  
Stock Repurchased and Retired During Period, Shares (329) (329)          
Stock Repurchased and Retired During Period, Value $ (162)   (6)   (156) (162)  
Cash dividends declared $ (452)       (452) (452)  
Common Stock at end of period (shares) at May. 07, 2023 443,222 443,222          
Equity at end of period at May. 07, 2023 $ 23,573 $ 2 $ 7,211 $ (1,680) $ 18,035 $ 23,568 $ 5
v3.23.1
Condensed Consolidated Statements Of Cash Flows - USD ($)
$ in Millions
 8 Months Ended
May 07, 2023
May 08, 2022
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income including noncontrolling interests $ 4,132 $ 4,037
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities:    
Depreciation and amortization 1,389 1,299
Non-cash lease expense 300 240
Stock-based compensation 643 606
Other non-cash operating activities, net 72 (62)
Loss on retirement and impairment of assets 391 118
Deferred income taxes (22) (2)
Changes in operating assets and liabilities:    
Merchandise inventories 1,596 (3,633)
Accounts payable (872) 1,766
Other operating assets and liabilities, net (286) 517
Net cash provided by operating activities 7,343 4,886
CASH FLOWS FROM INVESTING ACTIVITIES    
Purchases of short-term investments (947) (588)
Maturities of short-term investments 594 840
Additions to property and equipment (2,767) (2,632)
Other investing activities, net (27) (48)
Net cash used in investing activities (3,147) (2,428)
CASH FLOWS FROM FINANCING ACTIVITIES    
Repayments of short-term debt (698) (195)
Proceeds from short-term debt 667 175
Repayments of long-term debt (75) (800)
Tax withholdings on stock-based awards (302) (360)
Repurchases of common stock (446) (254)
Cash dividend payments (799) (701)
Other financing activities, net (297) (208)
Net cash used in financing activities (1,950) (2,343)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 44 (180)
Net change in cash and cash equivalents 2,290 (65)
CASH AND CASH EQUIVALENTS BEGINNING OF YEAR 10,203 11,258
CASH AND CASH EQUIVALENTS END OF PERIOD 12,493 11,193
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:    
Interest 86 102
Income taxes, net 1,443 1,121
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES:    
Cash dividend declared, but not yet paid 452 398
Financing lease assets obtained in exchange for new or modified leases 101 631
Operating lease assets obtained in exchange for new or modified leases $ 160 $ 67
v3.23.1
Summary of Significant Accounting Policies
 8 Months Ended
May 07, 2023
Accounting Policies [Abstract]  
Summary of Significant Policies
Note 1—Summary of Significant Accounting Policies
Description of Business
Costco Wholesale Corporation (Costco or the Company), a Washington corporation, and its subsidiaries operate membership warehouses based on the concept that offering members low prices on a limited selection of nationally-branded and private-label products in a wide range of merchandise categories will produce high sales volumes and rapid inventory turnover. At May 7, 2023, Costco operated 852 warehouses worldwide: 586 in the United States (U.S.) located in 46 states, Washington, D.C., and Puerto Rico, 107 in Canada, 40 in Mexico, 32 in Japan, 29 in the United Kingdom (U.K.), 18 in Korea, 14 in Taiwan, 14 in Australia, four in Spain, three in China, two in France, and one each in Iceland, New Zealand, and Sweden. The Company operates e-commerce websites in the U.S., Canada, U.K., Mexico, Korea, Taiwan, Japan, and Australia.
Basis of Presentation
The condensed consolidated financial statements include the accounts of Costco, its wholly-owned subsidiaries, and a subsidiary in which it has a controlling interest. All material inter-company transactions among the Company and its consolidated subsidiaries have been eliminated in consolidation. Unless otherwise noted, references to net income relate to net income attributable to Costco.
These unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q for interim financial reporting pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). While these statements reflect all normal recurring adjustments that are, in the opinion of management, necessary for fair presentation of the results of the interim period, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles (U.S. GAAP) for complete financial statements. Therefore, the interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company's Annual Report on Form 10-K for the fiscal year ended August 28, 2022.
Fiscal Year End
The Company operates on a 52/53 week fiscal year basis, with the fiscal year ending on the Sunday closest to August 31. Fiscal 2023 is a 53-week year ending on September 3, 2023. References to the third quarter of 2023 and 2022 relate to the 12-week fiscal quarters ended May 7, 2023, and May 8, 2022. References to the first thirty-six weeks of 2023 and 2022 relate to the 36 weeks ended May 7, 2023, and May 8, 2022.
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 condensed consolidated statement of cash flows for the first thirty-six weeks of 2022 to conform with current year presentation.
Leases
The Company leases land, buildings, equipment, and other assets at warehouses, offices, or within the operations that support supply chain and distribution channels. The Company reviews lease right-of-use assets for impairment when events or changes in circumstances indicate that the carrying amount of the asset group may not be fully recoverable. The Company also occasionally revisits and modifies the terms of its leasing arrangements. During the first quarter and third quarter of 2023, the Company recognized charges of $93 and $298, primarily related to the impairment of certain leased assets associated with charter shipping activities. This charge is included in merchandise costs.
v3.23.1
Investments
 8 Months Ended
May 07, 2023
Investments, Debt and Equity Securities [Abstract]  
Investments
Note 2—Investments
The Company's investments were as follows:
May 7, 2023:Cost
Basis		Unrealized
Losses, Net		Recorded
Basis
Available-for-sale:
Government and agency securities$602 $(2)$600 
Held-to-maturity:
Certificates of deposit615 — 615 
Total short-term investments$1,217 $(2)$1,215 
August 28, 2022:Cost
Basis		Unrealized
Losses, Net		Recorded
Basis
Available-for-sale:
Government and agency securities$534 $(5)$529 
Held-to-maturity:
Certificates of deposit317 — 317 
Total short-term investments$851 $(5)$846 
Gross unrecognized holding gains and losses on available-for-sale securities were not material for the periods ended May 7, 2023, and August 28, 2022. 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 the first thirty-six weeks of 2023 or 2022.
The maturities of available-for-sale and held-to-maturity securities at May 7, 2023 are as follows:
 Available-For-SaleHeld-To-Maturity
 Cost BasisFair Value
Due in one year or less$126 $125 $615 
Due after one year through five years324 324 — 
Due after five years152 151 — 
Total$602 $600 $615 
v3.23.1
Fair Value Measurement
 8 Months Ended
May 07, 2023
Fair Value Disclosures [Abstract]  
Fair Value Measurement
Note 3—Fair Value Measurement
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The table below presents information regarding financial assets and liabilities that are measured at fair value on a recurring basis and indicates the level within the fair-value hierarchy reflecting the valuation techniques utilized.
Level 2
May 7,
2023		August 28,
2022
Investment in government and agency securities$600 $529 
Forward foreign-exchange contracts, in asset position(1)
6 34 
Forward foreign-exchange contracts, in (liability) position(1)
(11)(2)
Total$595 $561 
 _______________
(1)The asset and liability values are included in other current assets and other current liabilities, respectively, in the accompanying condensed consolidated balance sheets.
At May 7, 2023, and August 28, 2022, 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 the first thirty-six weeks of 2023 or 2022.
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. Please see Note 1 for additional information.
v3.23.1
Debt
 8 Months Ended
May 07, 2023
Debt Disclosure [Abstract]  
Debt
Note 4—Debt
The carrying value of the Company’s long-term debt consisted of the following:
May 7,
2023		August 28,
2022
2.750% Senior Notes due May 2024
$1,000 $1,000 
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 debt525 590 
Total long-term debt
6,525 6,590 
Less unamortized debt discounts and issuance costs
28 33 
Less current portion(1)
— 73 
Long-term debt, excluding current portion
$6,497 $6,484 
 _______________
(1)Net of unamortized debt discounts and issuance costs.
The fair value of the Senior Notes is estimated using Level 2 inputs. Other long-term debt consists of Guaranteed Senior Notes issued by the Company's Japan subsidiary, valued using Level 3 inputs. The fair value of the Company's long-term debt, including the current portion, was approximately $5,907 and $6,033 at May 7, 2023, and August 28, 2022.
v3.23.1
Equity
 3 Months Ended
May 07, 2023
Equity [Abstract]  
Stockholders' equity
Note 5—Equity
Dividends
A quarterly cash dividend of $1.02 per share was declared on April 19, 2023 and paid on May 19, 2023. The Company's quarterly dividend was $0.90 per share in the third quarter of 2022 and dividends totaled $2.82 and $2.48 per share in the first thirty-six weeks of 2023 and 2022.
Share Repurchase Program
The Company's share repurchase program is conducted under a $4,000 authorization by the Board of Directors, which expires in January 2027. At May 7, 2023, the remaining amount available under the program was $3,793. The following table summarizes the Company's stock repurchase activity:
Shares Repurchased (000s)Average Price per ShareTotal Cost
Third quarter of 2023329 $492.71 $162 
First thirty-six weeks of 2023908 $492.30 $447 
Third quarter of 2022254 $547.38 $139 
First thirty-six weeks of 2022490 $523.61 $257 
These amounts may differ from the accompanying condensed consolidated statements of cash flows due to changes in unsettled stock repurchases at the end of each quarter. Purchases are made from time to time, as conditions warrant, in the open market or in block purchases and pursuant to plans under SEC Rule 10b5-1.
v3.23.1
Stock-Based Compensation Plans
 8 Months Ended
May 07, 2023
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Plans
Note 6—Stock-Based Compensation
The 2019 Incentive Plan authorized the issuance of 17,500,000 shares (10,000,000 RSUs) of common stock for future grants, plus the remaining shares that were available for grant and the future forfeited shares from grants under the previous plan, up to a maximum of 27,800,000 shares (15,885,000 RSUs). The Company issues new shares of common stock upon vesting of RSUs. Shares for vested RSUs are generally delivered to participants annually, net of shares withheld for taxes.
Summary of Restricted Stock Unit Activity
At May 7, 2023, 8,724,000 shares were available to be granted as RSUs, and the following awards were outstanding:
•2,898,000 time-based RSUs, which vest upon continued employment over specified periods and accelerate upon achievement of a long-service term;
•41,000 performance-based RSUs granted to executive officers of the Company, for which the performance targets have been met. The awards vest upon continued employment over specified periods of time and upon achievement of a long-service term; and
•135,000 performance-based RSUs granted to executive officers of the Company, subject to achievement of performance targets for fiscal 2023, as determined by the Compensation Committee of the Board of Directors after the end of the fiscal year. These awards are included in the table below. The Company recognized compensation expense for these awards in the third quarter of 2023, as it is currently deemed probable that the targets will be achieved.
The following table summarizes RSU transactions during the first thirty-six weeks of 2023:
Number of
Units (in 000s)		Weighted-Average
Grant Date Fair Value
Outstanding at August 28, 20223,449 $338.41 
Granted1,814 471.47 
Vested and delivered(2,096)352.56 
Forfeited(93)396.50 
Outstanding at May 7, 20233,074 $405.51 
The remaining unrecognized compensation cost related to RSUs unvested at May 7, 2023, was $930, and the weighted-average period over which this cost will be recognized is 1.7 years.
Summary of Stock-Based Compensation
The following table summarizes stock-based compensation expense and the related tax benefits:
12 Weeks Ended36 Weeks Ended
May 7,
2023		May 8,
2022		May 7,
2023		May 8,
2022
Stock-based compensation expense
$94 $90 $643 $606 
Less recognized income tax benefits21 20 134 128 
Stock-based compensation expense, net$73 $70 $509 $478 
v3.23.1
Net Income per Common and Common Equivalent Share
 8 Months Ended
May 07, 2023
Earnings Per Share [Abstract]  
Net Income Per Common and Common Equivalent Share
Note 7—Net Income per Common and Common Equivalent Share
The following table shows the amounts used in computing net income per share and the weighted average number of shares of basic and of potentially dilutive common shares outstanding (shares in 000s):
12 Weeks Ended36 Weeks Ended
May 7,
2023		May 8,
2022		May 7,
2023		May 8,
2022
Net income attributable to Costco
$1,302 $1,353 $4,132 $3,976 
Weighted average basic shares
443,814 443,700 443,843 443,567 
RSUs546 1,186 612 1,235 
Weighted average diluted shares
444,360 444,886 444,455 444,802 
v3.23.1
Commitments and Contingencies
 8 Months Ended
May 07, 2023
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
Note 8—Commitments and Contingencies
Legal Proceedings
The Company is involved in a number of claims, proceedings and litigations arising from its business and property ownership. In accordance with applicable accounting guidance, the Company establishes an accrual for legal proceedings if and when those matters present loss contingencies that are both probable and reasonably estimable. There may be exposure to loss 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 immaterial accruals with respect to certain matters described below, in addition to other immaterial accruals for matters not described below. If the loss contingency at issue is not both probable and reasonably estimable, the Company does not establish an accrual, but will monitor the matter for developments that will 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: (i) the remedies or penalties sought are indeterminate or unspecified; (ii) the legal and/or factual theories are not well developed; and/or (iii) the matters involve complex or novel legal theories or a large number of parties.
The Company is a defendant in an action commenced in July 2013 under the California Labor Code Private Attorneys General Act (PAGA) alleging violation of California Wage Order 7-2001 for failing to provide seating to employees who work at entrance and exit doors in California warehouses. Canela v. Costco Wholesale Corp. (Case No. 2013-1-CV-248813; Santa Clara Superior Court). The complaint seeks relief under the California Labor Code, including civil penalties and attorneys’ fees. The Company filed an answer denying the material allegations of the complaint. On April 26, 2023, the court entered a final judgment in favor of the Company.
In December 2018, a depot employee raised similar claims, alleging that depot employees in California did not receive suitable seating or reasonably comfortable workplace temperature conditions. Lane v. Costco Wholesale Corp. (Case No. CIVDS 1908816; San Bernardino Superior Court). In October 2019, the parties settled for an immaterial amount the seating claims on a representative basis, which received court approval in February 2020. The parties settled the temperature claims for an immaterial amount in April 2022, and court approval was received in May 2022.
In June 2022, a business center employee raised similar claims, alleging failure to provide seating to employees who work at membership refund desks in California warehouses and business centers. Rodriguez v. Costco Wholesale Corp. (Case No. 22CV012847; Alameda Superior Court). The complaint seeks relief under the California Labor Code, including civil penalties and attorneys' fees. The Company filed an answer denying the material allegations of the complaint.
In March 2019, employees filed a class action against the Company alleging claims under California law for failure to pay overtime, to provide meal and rest periods and itemized wage statements, to timely pay wages due to terminating employees, to pay minimum wages, and for unfair business practices. Relief is sought under the California Labor Code, including civil penalties and attorneys' fees. Nevarez v. Costco Wholesale Corp. (Case No. 2:19-cv-03454; C.D. Cal.). The Company filed an answer denying the material allegations of the complaint. In December 2019, the court issued an order denying class certification. In January 2020, the plaintiffs dismissed their Labor Code claims without prejudice, and the court remanded the action to state court. Settlement for an immaterial amount was agreed upon in February 2021. Final court approval of the settlement was granted on May 3, 2022. A proposed intervenor appealed the denial of her motion to intervene. Her appeal was dismissed on February 15, 2023.
In May 2019, an employee filed a class action against the Company alleging claims under California law for failure to pay overtime, to provide itemized wage statements, to timely pay wages due to terminating employees, to pay minimum wages, and for unfair business practices. Rough v. Costco Wholesale Corp. (Case No. 2:19-cv-01340; E.D. Cal.). Relief is sought under the California Labor Code, including civil penalties and attorneys' fees. In September 2021, the court granted Costco’s motion for partial summary judgment and denied class certification. In August 2019, the plaintiff filed a companion case in state court seeking penalties under PAGA. Rough v. Costco Wholesale Corp. (Case No. FCS053454; Sonoma County Superior Court). Relief is sought under the California Labor Code, including civil penalties and attorneys' fees. The state court action has been stayed pending resolution of the federal action.
In December 2020, a former employee filed suit against the Company asserting collective and class claims on behalf of non-exempt employees under the Fair Labor Standards Act and New York Labor Law for failure to pay for all hours worked, failure to pay certain non-exempt employees on a weekly basis, and failure to provide proper wage statements and notices. The plaintiff also asserted individual retaliation claims. Cappadora v. Costco Wholesale Corp. (Case No. 1:20-cv-06067; E.D.N.Y.). An amended complaint was filed, and the Company denied the material allegations of the amended complaint. Based on an agreement in principle concerning settlement of the matter, involving a proposed payment by the Company of an immaterial amount, the federal action has been dismissed. In April 2022, Cappadora and a second plaintiff filed an action against the Company in New York state court, asserting the same class claims asserted in the federal action under the New York Labor Law and seeking preliminary approval of the class settlement. Cappadora and Sancho v. Costco Wholesale Corp. (Index No. 604757/2022; Nassau County Supreme Court). Following final approval of the settlement, the case was dismissed on April 14, 2023.
In August 2021, a former employee filed a similar suit, asserting class claims on behalf of certain non-exempt employees under New York Labor Law for failure to pay on a weekly basis. Umadat v. Costco Wholesale Corp. (Case No. 2:21-cv-4814; E.D.N.Y.). The Company filed an answer, denying the material allegations of the complaint. In April 2022, a former employee filed a similar suit, asserting class claims on behalf of certain non-exempt employees under New York Labor Law, as well as under the Fair Labor Standards Act, for failure to pay on a weekly basis and failure to pay overtime. Burian v. Costco Wholesale Corp. (Case No. 2:22-cv-02108; E.D.N.Y.). In September 2022, an amended complaint was filed, asserting class claims on behalf of certain non-exempt employees under New York Labor Law for failure to pay on a weekly basis. In April 2023 the case was settled on an individual basis for an immaterial amount.
In February 2021, a former employee filed a class action against the Company alleging violations of California Labor Code regarding payment of wages, meal and rest periods, wage statements, reimbursement of expenses, payment of final wages to terminated employees, and for unfair business practices. Edwards v. Costco Wholesale Corp. (Case No. 5:21-cv-00716: C.D. Cal.). In May 2021, the Company filed a motion to dismiss the complaint, which was granted with leave to amend. In June 2021, the plaintiff filed an amended complaint, which the Company moved to dismiss. The court granted the motion in part in July 2021 with leave to amend. In August 2021, the plaintiff filed a second amended complaint and filed a separate representative action under PAGA asserting the same Labor Code claims and seeking civil penalties and attorneys' fees. The Company filed an answer to the second amended class action complaint, denying the material allegations. The Company also filed an answer to the PAGA representative action, denying the material allegations. On September 27, 2022, the parties reached a settlement for an immaterial amount. A hearing for final court approval is set for September 11, 2023.
In July 2021, a former temporary staffing employee filed a class action against the Company and a staffing company alleging violations of the California Labor Code regarding payment of wages, meal and rest periods, wage statements, the timeliness of wages and final wages, and for unfair business practices. Dimas v. Costco Wholesale Corp. (Case No. STK-CV-UOE-2021-0006024; San Joaquin Superior Court). The Company has moved to compel arbitration of the plaintiff's individual claims and to dismiss the class action complaint. On September 7, 2021, the same plaintiff filed a separate representative action under
PAGA, asserting the same Labor Code violations and seeking civil penalties and attorneys' fees. The case has been stayed pending arbitration of the plaintiff’s individual claims.
In September 2021, an employee filed a class action against the Company alleging violations of the California Labor Code regarding failure to provide sick pay, failure to timely pay wages due at separation from employment, and for violations of California's unfair competition law. De Benning v. Costco Wholesale Corp. (Case No. 34-2021-00309030-CU-OE-GDS; Sacramento Superior Court). The Company answered the complaint in January 2022, denying its material allegations. In April 2022, a settlement for an immaterial amount was agreed upon, subject to court approval. Final approval of the settlement was granted on February 10, 2023.
In March 2022, an employee filed a class action against the Company alleging violations of the California Labor Code regarding the failure to: pay wages, provide meal and rest periods, provide accurate wage statements, timely pay final wages, and reimburse business expenses. Diaz v. Costco Wholesale Corp. (Case No. 22STCV09513; Los Angeles Superior Court). The Company filed an answer denying the material allegations. In December 2022, the case was settled for an immaterial amount.
In May 2022, an employee filed a PAGA-only representative action against the Company alleging claims under the California Labor Code regarding the payment of wages, meal and rest periods, the timeliness of wages and final wages, wage statements, accurate records and business expenses. Gonzalez v. Costco Wholesale Corp. (Case No. 22AHCV00255; Los Angeles Superior Court). The Company filed an answer denying the allegations.
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 have been asserted by certain counties and cities in Florida and Georgia; claims filed by certain cities and counties in New York are pending in state court. Claims against the Company in state courts in New Jersey, Oklahoma, Utah, and Arizona have been dismissed. The Company is defending all of the pending matters.
Members of the Board of Directors, six corporate officers and the Company are defendants in a shareholder derivative action filed in June 2022 related to chicken welfare and alleged breaches of fiduciary duties. Smith, et ano. v. Vachris, et al., Superior Court of the State of Washington, County of King, No, 22-2-08937-7SEA. The complaint seeks from the individual defendants damages, injunctive relief, costs, and attorneys' fees. On March 28, 2023, the court granted the defendants’ motion to dismiss the action.
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.
v3.23.1
Segment Reporting
 8 Months Ended
May 07, 2023
Segment Reporting [Abstract]  
Segment Reporting
Note 9—Segment Reporting
The Company is principally engaged in the operation of membership warehouses through wholly owned subsidiaries in the U.S., Canada, Mexico, Japan, U.K., Korea, Taiwan, Australia, Spain, France, China, Iceland, New Zealand, and Sweden. 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 the notes to the consolidated financial statements included in the Company's Annual Report filed on Form 10-K for the fiscal year ended August 28, 2022, and Note 1 above. Inter-segment net sales and expenses have been eliminated in computing total revenue and operating income.
The following table provides information for the Company's reportable segments:
United States
Operations		Canadian
Operations		Other
International
Operations		Total
12 Weeks Ended May 7, 2023
Total revenue$39,049 $7,268 $7,331 $53,648 
Operating income1,027 327 325 1,679 
12 Weeks Ended May 8, 2022
Total revenue$38,534 $7,268 $6,794 $52,596 
Operating income1,205 324 262 1,791 
36 Weeks Ended May 7, 2023
Total revenue$119,339 $21,923 $22,089 $163,351 
Operating income3,558 899 876 5,333 
36 Weeks Ended May 8, 2022
Total revenue$112,418 $21,406 $21,039 $154,863 
Operating income3,502 918 876 5,296 
52 Weeks Ended August 28, 2022
Total revenue$165,294 $31,675 $29,985 $226,954 
Operating income5,268 1,346 1,179 7,793 
Disaggregated Revenue
The following table summarizes net sales by merchandise category; sales from e-commerce websites and business centers have been allocated to the applicable merchandise categories:
12 Weeks Ended36 Weeks Ended
May 7,
2023		May 8,
2022		May 7,
2023		May 8,
2022
Foods and Sundries$21,298 $19,594 $64,672 $58,646 
Non-Foods13,087 13,810 41,860 43,077 
Fresh Foods7,194 6,813 21,287 20,211 
Warehouse Ancillary and Other Businesses11,025 11,395 32,461 30,032 
Total net sales
$52,604 $51,612 $160,280 $151,966 
v3.23.1
Summary of Significant Accounting Policies (Policies)
 8 Months Ended
May 07, 2023
Accounting Policies [Abstract]  
Basis of Accounting, Policy
Basis of Presentation
The condensed consolidated financial statements include the accounts of Costco, its wholly-owned subsidiaries, and a subsidiary in which it has a controlling interest. All material inter-company transactions among the Company and its consolidated subsidiaries have been eliminated in consolidation. Unless otherwise noted, references to net income relate to net income attributable to Costco.
These unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q for interim financial reporting pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). While these statements reflect all normal recurring adjustments that are, in the opinion of management, necessary for fair presentation of the results of the interim period, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles (U.S. GAAP) for complete financial statements. Therefore, the interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company's Annual Report on Form 10-K for the fiscal year ended August 28, 2022.
Fiscal Period, Policy
Fiscal Year End
The Company operates on a 52/53 week fiscal year basis, with the fiscal year ending on the Sunday closest to August 31. Fiscal 2023 is a 53-week year ending on September 3, 2023. References to the third quarter of 2023 and 2022 relate to the 12-week fiscal quarters ended May 7, 2023, and May 8, 2022. References to the first thirty-six weeks of 2023 and 2022 relate to the 36 weeks ended May 7, 2023, and May 8, 2022.
Use of Estimates, Policy
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. 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, Policy
Reclassification
Reclassifications were made to the condensed consolidated statement of cash flows for the first thirty-six weeks of 2022 to conform with current year presentation.
Lessee, Leases, Policy
Leases
The Company leases land, buildings, equipment, and other assets at warehouses, offices, or within the operations that support supply chain and distribution channels. The Company reviews lease right-of-use assets for impairment when events or changes in circumstances indicate that the carrying amount of the asset group may not be fully recoverable. The Company also occasionally revisits and modifies the terms of its leasing arrangements. During the first quarter and third quarter of 2023, the Company recognized charges of $93 and $298, primarily related to the impairment of certain leased assets associated with charter shipping activities. This charge is included in merchandise costs.
v3.23.1
Investments (Tables)
 8 Months Ended
May 07, 2023
Investments, Debt and Equity Securities [Abstract]  
Available-for-sale and Held-to-maturity Investments
The Company's investments were as follows:
May 7, 2023:Cost
Basis		Unrealized
Losses, Net		Recorded
Basis
Available-for-sale:
Government and agency securities$602 $(2)$600 
Held-to-maturity:
Certificates of deposit615 — 615 
Total short-term investments$1,217 $(2)$1,215 
August 28, 2022:Cost
Basis		Unrealized
Losses, Net		Recorded
Basis
Available-for-sale:
Government and agency securities$534 $(5)$529 
Held-to-maturity:
Certificates of deposit317 — 317 
Total short-term investments$851 $(5)$846 
Maturities of Available-for-sale and Held-to-maturity Securities
The maturities of available-for-sale and held-to-maturity securities at May 7, 2023 are as follows:
 Available-For-SaleHeld-To-Maturity
 Cost BasisFair Value
Due in one year or less$126 $125 $615 
Due after one year through five years324 324 — 
Due after five years152 151 — 
Total$602 $600 $615 
v3.23.1
Fair Value Measurement (Tables)
 8 Months Ended
May 07, 2023
Fair Value Disclosures [Abstract]  
Fair Value of Financial Assets and Liabilities Measured on Recurring Basis
The table below presents information regarding financial assets and liabilities that are measured at fair value on a recurring basis and indicates the level within the fair-value hierarchy reflecting the valuation techniques utilized.
Level 2
May 7,
2023		August 28,
2022
Investment in government and agency securities$600 $529 
Forward foreign-exchange contracts, in asset position(1)
6 34 
Forward foreign-exchange contracts, in (liability) position(1)
(11)(2)
Total$595 $561 
 _______________
(1)The asset and liability values are included in other current assets and other current liabilities, respectively, in the accompanying condensed consolidated balance sheets.
v3.23.1
Debt (Tables)
 8 Months Ended
May 07, 2023
Debt Disclosure [Abstract]  
Carrying Value and Estimated Fair Value of Company's Long-term Debt
The carrying value of the Company’s long-term debt consisted of the following:
May 7,
2023		August 28,
2022
2.750% Senior Notes due May 2024
$1,000 $1,000 
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 debt525 590 
Total long-term debt
6,525 6,590 
Less unamortized debt discounts and issuance costs
28 33 
Less current portion(1)
— 73 
Long-term debt, excluding current portion
$6,497 $6,484 
 _______________
(1)Net of unamortized debt discounts and issuance costs.
v3.23.1
Equity (Tables)
 8 Months Ended
May 07, 2023
Equity [Abstract]  
Stock Repurchased During Period The following table summarizes the Company's stock repurchase activity:
Shares Repurchased (000s)Average Price per ShareTotal Cost
Third quarter of 2023329 $492.71 $162 
First thirty-six weeks of 2023908 $492.30 $447 
Third quarter of 2022254 $547.38 $139 
First thirty-six weeks of 2022490 $523.61 $257 
v3.23.1
Stock-Based Compensation Plans (Tables)
 8 Months Ended
May 07, 2023
Share-Based Payment Arrangement [Abstract]  
Summary of RSU Transactions
The following table summarizes RSU transactions during the first thirty-six weeks of 2023:
Number of
Units (in 000s)		Weighted-Average
Grant Date Fair Value
Outstanding at August 28, 20223,449 $338.41 
Granted1,814 471.47 
Vested and delivered(2,096)352.56 
Forfeited(93)396.50 
Outstanding at May 7, 20233,074 $405.51 
Summary of Stock-Based Compensation Expense and Related Tax Benefits
The following table summarizes stock-based compensation expense and the related tax benefits:
12 Weeks Ended36 Weeks Ended
May 7,
2023		May 8,
2022		May 7,
2023		May 8,
2022
Stock-based compensation expense
$94 $90 $643 $606 
Less recognized income tax benefits21 20 134 128 
Stock-based compensation expense, net$73 $70 $509 $478 
v3.23.1
Net Income per Common and Common Equivalent Share (Tables)
 8 Months Ended
May 07, 2023
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 000s):
12 Weeks Ended36 Weeks Ended
May 7,
2023		May 8,
2022		May 7,
2023		May 8,
2022
Net income attributable to Costco
$1,302 $1,353 $4,132 $3,976 
Weighted average basic shares
443,814 443,700 443,843 443,567 
RSUs546 1,186 612 1,235 
Weighted average diluted shares
444,360 444,886 444,455 444,802 
v3.23.1
Segment Reporting (Tables)
 8 Months Ended
May 07, 2023
Segment Reporting [Abstract]  
Segment Reporting Information, by Segment
The following table provides information for the Company's reportable segments:
United States
Operations		Canadian
Operations		Other
International
Operations		Total
12 Weeks Ended May 7, 2023
Total revenue$39,049 $7,268 $7,331 $53,648 
Operating income1,027 327 325 1,679 
12 Weeks Ended May 8, 2022
Total revenue$38,534 $7,268 $6,794 $52,596 
Operating income1,205 324 262 1,791 
36 Weeks Ended May 7, 2023
Total revenue$119,339 $21,923 $22,089 $163,351 
Operating income3,558 899 876 5,333 
36 Weeks Ended May 8, 2022
Total revenue$112,418 $21,406 $21,039 $154,863 
Operating income3,502 918 876 5,296 
52 Weeks Ended August 28, 2022
Total revenue$165,294 $31,675 $29,985 $226,954 
Operating income5,268 1,346 1,179 7,793 
Disaggregation of Revenue [Table Text Block]
Disaggregated Revenue
The following table summarizes net sales by merchandise category; sales from e-commerce websites and business centers have been allocated to the applicable merchandise categories:
12 Weeks Ended36 Weeks Ended
May 7,
2023		May 8,
2022		May 7,
2023		May 8,
2022
Foods and Sundries$21,298 $19,594 $64,672 $58,646 
Non-Foods13,087 13,810 41,860 43,077 
Fresh Foods7,194 6,813 21,287 20,211 
Warehouse Ancillary and Other Businesses11,025 11,395 32,461 30,032 
Total net sales
$52,604 $51,612 $160,280 $151,966 
v3.23.1
Accounting Policies - Additional Information (Detail)
May 07, 2023
warehouse
states
Summary Of Significant Accounting Policies [Line Items]  
Number of warehouses operated 852
UNITED STATES  
Summary Of Significant Accounting Policies [Line Items]  
Number of warehouses operated 586
Number of states in country | states 46
CANADA  
Summary Of Significant Accounting Policies [Line Items]  
Number of warehouses operated 107
MEXICO  
Summary Of Significant Accounting Policies [Line Items]  
Number of warehouses operated 40
UNITED KINGDOM  
Summary Of Significant Accounting Policies [Line Items]  
Number of warehouses operated 29
JAPAN  
Summary Of Significant Accounting Policies [Line Items]  
Number of warehouses operated 32
KOREA  
Summary Of Significant Accounting Policies [Line Items]  
Number of warehouses operated 18
TAIWAN  
Summary Of Significant Accounting Policies [Line Items]  
Number of warehouses operated 14
AUSTRALIA  
Summary Of Significant Accounting Policies [Line Items]  
Number of warehouses operated 14
SPAIN  
Summary Of Significant Accounting Policies [Line Items]  
Number of warehouses operated 4
CHINA  
Summary Of Significant Accounting Policies [Line Items]  
Number of warehouses operated 3
ICELAND  
Summary Of Significant Accounting Policies [Line Items]  
Number of warehouses operated 1
FRANCE  
Summary Of Significant Accounting Policies [Line Items]  
Number of warehouses operated 2
NEW ZEALAND  
Summary Of Significant Accounting Policies [Line Items]  
Number of warehouses operated 1
SWEDEN  
Summary Of Significant Accounting Policies [Line Items]  
Number of warehouses operated 1
v3.23.1
Accounting Policies - Leases (Details) - USD ($)
$ in Millions
 3 Months Ended
May 07, 2023
Nov. 20, 2022
Accounting Policies [Abstract]    
Finance Lease, Impairment Loss $ 298 $ 93
v3.23.1
Investments - Available-for-sale and Held-to-maturity Investments (Detail) - USD ($)
$ in Millions
May 07, 2023
Aug. 28, 2022
Available-for-sale and Held-to-maturity [Line Items]    
Available-for-sale, cost basis, total $ 602  
Debt Securities, Available-for-sale 600  
Held-to-maturity, cost basis 615  
Short-term investments 1,215 $ 846
Government and Agency Securities    
Available-for-sale and Held-to-maturity [Line Items]    
Available-for-sale, cost basis, total 602 534
Certificates of deposit    
Available-for-sale and Held-to-maturity [Line Items]    
Held-to-maturity, cost basis 615 317
Short-term Investments    
Available-for-sale and Held-to-maturity [Line Items]    
Total investments, cost basis, total 1,217 851
Short-term investments 1,215 846
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss (2) (5)
Short-term Investments | Government and Agency Securities    
Available-for-sale and Held-to-maturity [Line Items]    
Debt Securities, Available-for-sale 600 529
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss (2) (5)
Short-term Investments | Certificates of deposit    
Available-for-sale and Held-to-maturity [Line Items]    
Held-to-maturity, recorded basis, total $ 615 $ 317
v3.23.1
Investments - Maturities of Available-for-sale and Held-to-maturity Securities (Details)
$ in Millions
May 07, 2023
USD ($)
Available-for-sale, Cost Basis  
Due in one year or less $ 126
Due after one year through five years 324
Due after five years 152
Available-for-sale, cost basis, total 602
Available-for-sale, Fair Value  
Due in one year or less 125
Due after one year through five years 324
Due after five years 151
Available-for-sale, recorded basis, total 600
Held-to-maturity  
Due in one year or less 615
Due after one year through five years 0
Due after five years 0
Held-to-maturity, cost basis, total $ 615
v3.23.1
Fair Value Measurement - Fair Value of Financial Assets and Financial Liabilities Measured on Recurring Basis (Details) - Fair Value, Measurements, Recurring - Fair Value, Inputs, Level 2 - USD ($)
$ in Millions
May 07, 2023
Aug. 28, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value of assets measured on recurring basis $ 595 $ 561
Government and Agency Securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value of assets measured on recurring basis 600 529
Forward Foreign-exchange Contracts    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value of assets measured on recurring basis [1] 6 34
Fair value of liabilities measured on recurring basis [1] $ (11) $ (2)
[1] The asset and liability values are included in other current assets and other current liabilities, respectively, in the accompanying condensed consolidated balance sheets.
v3.23.1
Debt (Carrying Value and Estimated Fair Value of Company's Long-term Debt) (Details) - USD ($)
$ in Millions
May 07, 2023
Aug. 28, 2022
Debt Instrument [Line Items]    
Long-Term Debt, Gross $ 6,525 $ 6,590
Less unamortized debt discounts and issuance costs 28 33
Current portion of long-term debt [1] 0 73
Long-term debt, excluding current portion 6,497 6,484
Long-term Debt, Fair Value 5,907 6,033
2.75% Senior Notes Due May 2024    
Debt Instrument [Line Items]    
Long-Term Debt, Gross $ 1,000 1,000
Debt instrument, interest rate, stated percentage 2.75%  
3.00% 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%  
1.60% 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 $ 525 $ 590
[1] Net of unamortized debt discounts and issuance costs
v3.23.1
Equity - Additional Information - Dividends (Detail) - $ / shares
 3 Months Ended 8 Months Ended
May 07, 2023
May 08, 2022
May 07, 2023
May 08, 2022
Dividend Rate        
Dividends Payable [Line Items]        
Dividends declared $ 1.02 $ 0.90 $ 2.82 $ 2.48
v3.23.1
Equity (Stock Repurchased During Period) (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 3 Months Ended 8 Months Ended
May 07, 2023
May 08, 2022
May 07, 2023
May 08, 2022
Equity [Abstract]        
Stock Repurchased and Retired During Period, Shares 329 254 908 490
Average price per share $ 492.71 $ 547.38 $ 492.30 $ 523.61
Total Cost $ (162) $ (139) $ (447) $ (257)
v3.23.1
Equity - Additional Information - Stock Repurchase Programs (Details) - USD ($)
$ in Millions
May 07, 2023
Jan. 19, 2023
Equity [Abstract]    
Stock repurchase program, remaining authorized repurchase amount $ 3,793  
Stock Repurchase Program, Authorized Amount   $ 4,000
v3.23.1
Stock-Based Compensation Plans - Additional Information (Detail) - USD ($)
$ in Millions
 8 Months Ended
Jan. 24, 2019
May 07, 2023
Aug. 28, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares   3,074,000 3,449,000
2019 Incentive Plan [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Additional number of shares authorized 17,500,000    
Restricted Stock Units (RSUs)      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Additional number of shares authorized   10,000,000  
Number of shares available to be granted   8,724,000  
Time-based RSUs awards outstanding   2,898,000  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares   41,000  
Unrecognized compensation cost   $ 930  
Weighted-average recognition period   1 year 8 months 12 days  
Performance Shares [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Outstanding performance-based RSUs awards granted, subject to achievement of performance targets   135,000  
Maximum [Member] | 2019 Incentive Plan [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of shares available to be granted 27,800,000    
Maximum [Member] | Restricted Stock Units (RSUs)      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of shares available to be granted   15,885,000  
v3.23.1
Stock-Based Compensation Plans - Summary of RSU Transactions (Details)
shares in Thousands
 8 Months Ended
May 07, 2023
$ / shares
shares
Number of units  
Outstanding at August 28, 2022 | shares 3,449
Granted | shares 1,814
Vested and delivered | shares (2,096)
Forfeited | shares (93)
Outstanding at May 7, 2023 | shares 3,074
Weighted average grant date fair value  
Outstanding at August 28, 2022 | $ / shares $ 338.41
Granted | $ / shares 471.47
Vested and delivered | $ / shares 352.56
Forfeited | $ / shares 396.50
Outstanding at May 7, 2023 | $ / shares $ 405.51
v3.23.1
Stock-Based Compensation Plans - Summary of Stock-Based Compensation Expense (Details) - USD ($)
$ in Millions
 3 Months Ended 8 Months Ended
May 07, 2023
May 08, 2022
May 07, 2023
May 08, 2022
Stock-based compensation expense before income taxes $ 94 $ 90 $ 643 $ 606
Less recognized income tax benefit 21 20 134 128
Stock-based compensation expense, net of income taxes $ 73 $ 70 $ 509 $ 478
v3.23.1
Net Income per Common and Common Equivalent Share - Schedule of Earnings per Share Effect on Net Income and Weighted Average Number of Dilutive Potential Common Stock (Details) - USD ($)
shares in Thousands, $ in Millions
 3 Months Ended 8 Months Ended
May 07, 2023
May 08, 2022
May 07, 2023
May 08, 2022
Earnings Per Share [Abstract]        
Net Income (Loss) Attributable to Parent $ 1,302 $ 1,353 $ 4,132 $ 3,976
Weighted average number of common shares used in basic net income per common share 443,814 443,700 443,843 443,567
RSUs 546 1,186 612 1,235
Weighted average number of common shares and dilutive potential of common stock used in diluted net income per share 444,360 444,886 444,455 444,802
v3.23.1
Segment Reporting Information by Segment (Detail) - USD ($)
$ in Millions
 3 Months Ended 8 Months Ended 12 Months Ended
May 07, 2023
May 08, 2022
May 07, 2023
May 08, 2022
Aug. 28, 2022
Segment Reporting Information [Line Items]          
Total Revenue $ 53,648 $ 52,596 $ 163,351 $ 154,863 $ 226,954
Operating Income 1,679 1,791 5,333 5,296 7,793
Operating Segments [Member] | United States Operations          
Segment Reporting Information [Line Items]          
Total Revenue 39,049 38,534 119,339 112,418 165,294
Operating Income 1,027 1,205 3,558 3,502 5,268
Operating Segments [Member] | Canada Operations          
Segment Reporting Information [Line Items]          
Total Revenue 7,268 7,268 21,923 21,406 31,675
Operating Income 327 324 899 918 1,346
Operating Segments [Member] | Other International Operations          
Segment Reporting Information [Line Items]          
Total Revenue 7,331 6,794 22,089 21,039 29,985
Operating Income $ 325 $ 262 $ 876 $ 876 $ 1,179
v3.23.1
Segment Reporting Segment Reporting Information by Item Category (Details) - USD ($)
$ in Millions
 3 Months Ended 8 Months Ended
May 07, 2023
May 08, 2022
May 07, 2023
May 08, 2022
Disaggregation of Revenue [Line Items]        
Total Revenue $ 53,648 $ 52,596 $ 163,351 $ 154,863
Foods and Sundries [Member]        
Disaggregation of Revenue [Line Items]        
Total Revenue 21,298 19,594 64,672 58,646
Non-Foods [Member]        
Disaggregation of Revenue [Line Items]        
Total Revenue 13,087 13,810 41,860 43,077
Fresh Foods [Member]        
Disaggregation of Revenue [Line Items]        
Total Revenue 7,194 6,813 21,287 20,211
Ancillary and Other Businesses        
Disaggregation of Revenue [Line Items]        
Total Revenue 11,025 11,395 32,461 30,032
Net Sales        
Disaggregation of Revenue [Line Items]        
Total Revenue $ 52,604 $ 51,612 $ 160,280 $ 151,966