Company: COST
Filing Date: 2025-06-05
Form Type: 10-Q
Source: 0000909832-25-000033
Chunk: 40

Company: COSTCO WHOLESALE CORP /NEW
Filing Date: 2025-06-05
Form: 10-Q
Item: Item 8
Chunk 40
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 will be achieved.The following table summarizes RSU transactions during the first thirty-six weeks of 2025:Number ofUnits (in 000s)Weighted-AverageGrant Date Fair ValueOutstanding at September 1, 20242,799 $463.24 Granted1,095 883.46 Vested and delivered(1,490)558.10 Forfeited(78)562.25 Outstanding at May 11, 20252,326 $596.92 The remaining unrecognized compensation cost related to RSUs unvested at May 11, 2025, was $1,046, and the weighted-average period over which this cost will be recognized is 1.7 years. Summary of Stock-Based CompensationThe following table summarizes stock-based compensation expense and the related tax benefits:12 Weeks Ended36 Weeks EndedMay 11,2025May 12,2024May 11,2025May 12,2024Stock-based compensation expense$106 $106 $720 $686 Less recognized income tax benefits23 24 152 144 Stock-based compensation expense, net$83 $82 $568 $542 

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Note 7—Net Income per Common and Common Equivalent ShareThe 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 EndedMay 11,2025May 12,2024May 11,2025May 12,2024Net income$1,903 $1,681 $5,489 $5,013 Weighted average basic shares443,958 443,892 443,976 443,870 RSUs804 936 870 792 Weighted average diluted shares444,762 444,828 444,846 444,662 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.

Note 8—Commitments and ContingenciesLegal ProceedingsThe 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