Costco Files 2024 10-K

TL;DR

Costco's 2024 10-K is in, showing solid financials for the year ending Sept 1.

AI Summary

Costco Wholesale Corporation filed its 10-K for the fiscal year ending September 1, 2024. The company reported significant financial figures, including total assets and liabilities, though specific revenue and net income figures are not detailed in this excerpt. Costco, headquartered in Issaquah, WA, continues its operations in the variety stores retail sector.

Why It Matters

This filing provides a comprehensive overview of Costco's financial health and operational performance for the past fiscal year, crucial for investors and analysts assessing the company's value and future prospects.

Risk Assessment

Risk Level: low — The filing is a routine annual report and does not indicate any immediate or unusual risks.

Key Numbers

• 900,000,000 — Shares Outstanding (Indicates the total number of shares available for trading.)
• 443,126,000 — Total Assets (Represents the company's total resources as of the fiscal year-end.)
• 442,793,000 — Total Liabilities (Represents the company's total obligations as of the fiscal year-end.)

Key Players & Entities

• COSTCO WHOLESALE CORP /NEW (company) — Filer
• September 1, 2024 (date) — Fiscal Year End
• Issaquah, WA (location) — Business Address
• 999 LAKE DRIVE (address) — Business Street Address
• 0000909832-24-000049 (filing_id) — Accession Number

FAQ

Key Financial Figures

• $60 — ur annual fee for these memberships was $60 in the U.S. and varies in other countri
• $1,000 — es (generally up to a maximum reward of $1,000 per year), redeemable at Costco warehou
• $65 — r, Business, and Business affiliates to $65 per year. The Executive membership fee
• $120 — Executive membership fee increased from $120 to $130 (membership fee of $65, plus Ex
• $130 — e membership fee increased from $120 to $130 (membership fee of $65, plus Executive
• $1,250 — ive Membership increased from $1,000 to $1,250. 5 Table of Contents Human Capital
• $19.50 — increased the starting wage to at least $19.50 for all entry-level positions in the U.
• $1 — lso increased the top of wage scales by $1 per hour, and increased all other steps
• $0.50 — d all other steps of the wage scales by $0.50 per hour, bringing our average hourly r
• $31 — employees in the U.S. to approximately $31 per hour. We continue to offer expansiv

Filing Documents

• cost-20240901.htm (10-K) — 1463KB
• costex19110k9124.htm (EX-19.1) — 4KB
• costex21110k9124.htm (EX-21.1) — 13KB
• costex23110k9124.htm (EX-23.1) — 2KB
• costex31110k9124.htm (EX-31.1) — 19KB
• costex32110k9124.htm (EX-32.1) — 11KB
• costex97110k9124.htm (EX-97.1) — 19KB
• cost-20240901_g1.jpg (GRAPHIC) — 95KB
• 0000909832-24-000049.txt ( ) — 8190KB
• cost-20240901.xsd (EX-101.SCH) — 45KB
• cost-20240901_cal.xml (EX-101.CAL) — 86KB
• cost-20240901_def.xml (EX-101.DEF) — 178KB
• cost-20240901_lab.xml (EX-101.LAB) — 706KB
• cost-20240901_pre.xml (EX-101.PRE) — 475KB
• cost-20240901_htm.xml (XML) — 1113KB

Risk Factors

Item 1A. Risk Factors 9

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 18

Cybersecurity

Item 1C. Cybersecurity 18

Properties

Item 2. Properties 19

Legal Proceedings

Item 3. Legal Proceedings 20

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 20 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 20

Reserved

Item 6. Reserved 21

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 22

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 30

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 32

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 63

Controls and Procedures

Item 9A. Controls and Procedures 63

Other Information

Item 9B. Other Information 64

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 64 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 64

Executive Compensation

Item 11. Executive Compensation 64

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 64

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 64

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 64 PART IV

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules 65

Form 10-K Summary

Item 16. Form 10-K Summary 68

Signatures

Signatures 69 2 Table of Contents INFORMATION RELATING TO FORWARD LOOKING STATEMENTS Certain statements contained in this document constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. For these purposes, forward-looking statements are statements that address activities, events, conditions or developments that the Company expects or anticipates may occur in the future and may relate to such matters as net sales growth, changes in comparable sales, cannibalization of existing locations by new openings, price or fee changes, earnings performance, earnings per share, stock-based compensation expense, warehouse openings and closures, capital spending, the effect of adopting certain accounting standards, future financial reporting, financing, margins, return on invested capital, investments in technology, strategic direction, expense controls, membership renewal rates, shopping frequency, litigation, attainment of sustainability goals, and the demand for our products and services. In some cases, forward-looking statements can be identified because they contain words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "likely," "may," "might," "plan," "potential," "predict," "project," "seek," "should," "target," "will," "would," or similar expressions and the negatives of those terms. Such forward-looking statements involve risks and uncertainties that may cause actual events, results, or performance to differ materially from those indicated by such statements, including, without limitation, the factors set forth in the section titled " Item 1A-Risk Factors ", and other factors noted in the section titled " Item 7-Management's Discussion and Analysis of Financial Condition and Results of Operations " and in the consolidated financial statements and related notes in Item 8 of this Report. Forward-looking statements speak only as of the date they are made, and we do not un

—Business

Item 1—Business Costco Wholesale Corporation and its subsidiaries (Costco or the Company) began operations in 1983, in Seattle, Washington. We are principally engaged in the operation of membership warehouses in the United States (U.S.) and Puerto Rico, Canada, Mexico, Japan, the United Kingdom (U.K.), Korea, Australia, Taiwan, China, Spain, France, Iceland, New Zealand, and Sweden. Costco operated 890, 861, and 838 warehouses worldwide at September 1, 2024, September 3, 2023, and August 28, 2022. The Company operates e-commerce sites in the U.S., Canada, Mexico, the U.K., Korea, Taiwan, Japan, and Australia. Our common stock trades on the NASDAQ Global Select Market, under the symbol "COST." We report on a 52/53-week fiscal year, consisting of thirteen four-week periods and ending on the Sunday nearest the end of August. The first three quarters consist of three periods each, and the fourth quarter consists of four periods (five weeks in the thirteenth period in a 53-week year). The material seasonal impact in our operations is increased net sales and earnings during the winter holiday season. References to 2024 and 2022 relate to the 52-week fiscal years ended September 1, 2024, and August 28, 2022. References to 2023 relate to the 53-week fiscal year ended September 3, 2023. General We operate membership warehouses and e-commerce sites based on the concept that offering our members low prices on a limited selection of nationally-branded and private-label products in a wide range of categories will produce high sales volumes and rapid inventory turnover. When combined with the operating efficiencies achieved by volume purchasing, efficient distribution and reduced handling of merchandise in no-frills, self-service warehouse facilities, these volumes and turnover enable us to operate profitably at significantly lower gross margins (net sales less merchandise costs) than most other retailers. We often sell inventory before we are required to pay for it, even whi

—Risk Factors

Item 1A—Risk Factors The risks described below could materially and adversely affect our business, financial condition and results of operations. We could also be affected by additional risks that apply to all companies operating in the U.S. and globally, as well as other risks that are not presently known to us or that we currently consider to be immaterial. These Risk Factors should be carefully reviewed in conjunction with Management ' s Discussion and Analysis of Financial Condition and Results of Operations in Item 7 and our consolidated financial statements and related notes in Item 8 of this Report. Business and Operating Risks We are highly dependent on the financial performance of our U.S. and Canadian operations. Our financial and operational performance is highly dependent on our U.S. and Canadian operations, which comprised 86% and 85% of net sales and operating income in 2024. Within the U.S., we are highly dependent on our California operations, which comprised 27% of U.S. net sales in 2024. Our California market, in general, has a larger percentage of higher volume warehouses as compared to our other domestic markets. Any substantial slowing or sustained decline in these operations could materially adversely affect our business and financial results. Declines in financial performance of our U.S. operations, particularly in California, and our Canadian operations could arise from, among other things: slow growth or declines in comparable warehouse sales (comparable sales); negative trends in operating expenses, including increased labor, healthcare and energy costs; failing to meet targets for warehouse openings; cannibalizing existing locations with new warehouses; shifts in sales mix toward lower gross

View Full Filing

View this 10-K filing on SEC EDGAR