Company: COST
Filing Date: 2025-12-17
Form Type: 10-Q
Source: 0000909832-25-000169
Chunk: 12

Company: COSTCO WHOLESALE CORP /NEW
Filing Date: 2025-12-17
Form: 10-Q
Item: Item 1
Chunk 12
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 _______________(1) Net of unamortized debt discounts and issuance costs and included in other current liabilities in the accompanying condensed consolidated balance sheets.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 $5,342 and $5,370 at November 23, 2025, and August 31, 2025.

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Note 5—EquityDividendsA quarterly cash dividend of $1.30 per share was declared on October 15, 2025, and paid on November 14, 2025. The dividend was $1.16 per share in the first quarter of 2025. Stock Repurchase ProgramsThe Company's stock repurchase program is conducted under a $4,000 authorization by the Board of Directors, which expires in January 2027. At November 23, 2025, the remaining amount available under the program was $1,752. The following table summarizes the repurchase activity:Shares Repurchased (000s)Average Price per ShareTotal CostFirst quarter of 2026225 $932.02 $210 First quarter of 2025230 $899.23 $206 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.

Note 6—Stock-Based CompensationThe 2019 Incentive Plan authorizes the issuance of up to 15,885,000 RSUs. 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 ActivityAt November 23, 2025, 5,199,000 shares were available to be granted as RSUs, and the following awards were outstanding:•1,972,000 time-based RSUs, which vest upon continued employment over specified periods. Some of these RSUs accelerate upon achievement of a long-service term;•60,000 performance-based RSUs granted to executive officers, for which the performance targets have been met. The awards