Company: COST
Filing Date: 2025-12-17
Form Type: 10-Q
Source: 0000909832-25-000169
Chunk: 38

Company: COSTCO WHOLESALE CORP /NEW
Filing Date: 2025-12-17
Form: 10-Q
Item: Item 8
Chunk 38
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 an individual fiscal quarter or year.

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Note 9—Segment ReportingThe Company is principally engaged in the operation of membership warehouses through wholly owned subsidiaries in the U.S., Canada, Mexico, Japan, the U.K., Korea, Australia, Taiwan, China, Spain, France, Sweden, Iceland and New Zealand. Reportable segments are largely based on management’s organization of the operating segments for operational decisions and assessments of financial performance, which considers geographic locations. The material accounting policies of the segments are as described in the notes to the consolidated financial statements included in the Company's Annual Report filed on Form 10-K for the fiscal year ended August 31, 2025, and Note 1 above. Inter-segment net sales and expenses, including royalties, have been eliminated in computing total revenue and operating income.The chief operating decision maker (CODM) is the Company's President and Chief Executive Officer. The CODM utilizes operating income, as reported in the condensed consolidated statement of income, along with internal management reports, in evaluating performance and allocating resources.The following table provides the revenue, significant expenses, and operating income for the Company's reportable segments:12 Weeks EndedNovember 23,2025November 24,2024United StatesTotal revenue$48,569 $45,088 Merchandise costs42,132 39,148 Selling, general and administrative expenses4,821 4,442 Operating income$1,616 $1,498 CanadaTotal revenue$9,073 $8,404 Merchandise costs7,897 7,341 Selling, general and administrative expenses742 701 Operating income$434 $362 Other InternationalTotal revenue$9,665 $8,659 Merchandise costs8,481 7,620 Selling, general and administrative expenses771 703 Operating income$413 $336 TotalTotal revenue$67,307 $62,151 Merchandise costs58,510 54,109 Selling, general and administrative expenses6,334 5,846 Operating income2,463 2,196 Other income(1)120 110 Income before income taxes$2,583 $2,306 _______________(1)Other income consists of interest expense and interest income and other, net.

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The following table provides depreciation and amortization and additions to property and equipment for the Company's reportable segments:12 Weeks EndedNovember 23