Company: COST
Filing Date: 2025-12-17
Form Type: 10-Q
Source: 0000909832-25-000169
Chunk: 60

Company: COSTCO WHOLESALE CORP /NEW
Filing Date: 2025-12-17
Form: 10-Q
Item: Item 2
Chunk 60
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 and other businesses and core merchandise categories.

Selling, General and Administrative Expenses12 Weeks EndedNovember 23,2025November 24,2024SG&A expenses$6,334 $5,846 SG&A expenses as a percentage of net sales9.60 %9.59 %

Quarterly Results

SG&A expenses as a percentage of net sales increased by one basis point, and increased by the same amount when excluding the impact of gasoline price deflation. Compared to last year, results were negatively impacted by four basis points attributable to a charge related to a tax assessment for prior 

21

years, and one basis point from warehouse operations and other businesses. Preopening costs were also higher by one basis point. Central operating costs and stock compensation had favorable impacts of three and two basis points, respectively. SG&A expenses as a percentage of net sales were higher in our U.S. segment and lower in our Canadian and Other International segments.

Interest Expense12 Weeks EndedNovember 23,2025November 24,2024Interest expense$35 $37 

Interest expense is primarily related to Senior Notes and financing leases.

Interest Income and Other, Net12 Weeks EndedNovember 23,2025November 24,2024Interest income$122 $96 Foreign-currency transaction gains, net25 43 Other, net8 8 Interest income and other, net$155 $147 

The increase in interest income in the first quarter of 2026 was due to higher cash balances, partially offset by lower interest rates. Foreign-currency transaction gains, net, include mark-to-market adjustments for forward foreign-exchange contracts and revaluation or settlement of monetary assets and liabilities by our Canadian and Other International operations. See Derivatives and Foreign Currency sections in Item 8, Note 1 of our Annual Report on Form 10-K, for the fiscal year ended August 31, 2025.

Provision for Income Taxes 12 Weeks Ended November 23,2025November 24,2024Provision for income taxes$582 $508 Effective tax rate22.5 %22.0 %

The effective tax rate for the first quarter of 2026 and 2025 was favorably impacted by discrete tax benefits of $72 and $100 related to stock compensation.

LIQUIDITY AND CAPITAL RESOURCES

The following table summarizes our significant sources and uses of cash and cash equivalents:

12 Weeks EndedNovember 23,2025November 24,