Company: COST
Filing Date: 2025-03-13
Form Type: 10-Q
Source: 0000909832-25-000015
Chunk: 70

Company: COSTCO WHOLESALE CORP /NEW
Filing Date: 2025-03-13
Form: 10-Q
Item: Item 2
Chunk 70
---
 EndedFebruary 16,2025February 18,2024February 16,2025February 18,2024Interest expense$36 $41 $73 $79 

Interest expense is primarily related to Senior Notes and financing leases. The decrease in interest expense for the second quarter and first half of 2025 was primarily due to repayment of the 2.750% Senior Notes in May 2024.

Interest Income and Other, Net12 Weeks Ended24 Weeks EndedFebruary 16,2025February 18,2024February 16,2025February 18,2024Interest income$109 $147 $205 $301 Foreign-currency transaction gains, net23 31 66 34 Other, net10 38 18 41 Interest income and other, net$142 $216 $289 $376 

The decrease in interest income in the second quarter and first half of 2025 was due to lower average cash and investment balances, following the special dividend in January 2024, and 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 September 1, 2024.

Provision for Income Taxes 12 Weeks Ended24 Weeks Ended February 16,2025February 18,2024February 16,2025February 18,2024Provision for income taxes$634 $494 $1,142 $1,011 Effective tax rate26.2 %22.1 %24.2 %23.3 %

The effective tax rate for the first half of 2025 was favorably impacted by discrete tax benefits of $100, primarily excess tax benefits related to stock compensation.

The effective tax rate for the first half of 2024 was favorably impacted by discrete tax benefits of $94 related to the portion of the special cash dividend payable through our 401(k) plan and $44 of excess tax benefits related to stock compensation.

24

LIQUIDITY AND CAPITAL RESOURCES

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

24 Weeks EndedFebruary 16,2025February 18,2024Net cash provided by operating