Company: COST
Filing Date: 2025-03-13
Form Type: 10-Q
Source: 0000909832-25-000015
Chunk: 40

Company: COSTCO WHOLESALE CORP /NEW
Filing Date: 2025-03-13
Form: 10-Q
Item: Item 8
Chunk 40
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-AverageGrant Date Fair ValueOutstanding at September 1, 20242,799 $463.24 Granted1,095 883.46 Vested and delivered(1,483)557.86 Forfeited(49)549.46 Outstanding at February 16, 20252,362 $596.80 The remaining unrecognized compensation cost related to RSUs unvested at February 16, 2025, was $1,175, and the weighted-average period over which this cost will be recognized is 1.8 years. Summary of Stock-Based CompensationThe following table summarizes stock-based compensation expense and the related tax benefits:12 Weeks Ended24 Weeks EndedFebruary 16,2025February 18,2024February 16,2025February 18,2024Stock-based compensation expense$151 $136 $614 $580 Less recognized income tax benefits28 25 129 120 Stock-based compensation expense, net$123 $111 $485 $460 

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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 Ended24 Weeks EndedFebruary 16,2025February 18,2024February 16,2025February 18,2024Net income$1,788 $1,743 $3,586 $3,332 Weighted average basic shares443,982 443,892 443,985 443,859 RSUs904 862 903 720 Weighted average diluted shares444,886 444,754 444,888 444,579 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 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 (