Company: COST
Filing Date: 2025-12-17
Form Type: 10-Q
Source: 0000909832-25-000169
Chunk: 34

Company: COSTCO WHOLESALE CORP /NEW
Filing Date: 2025-12-17
Form: 10-Q
Item: Item 8
Chunk 34
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 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 vest upon continued employment over specified periods of time and upon achievement of a long-service term; and•67,000 performance-based RSUs granted to executive officers, subject to achievement of performance targets for 2026, as determined by the Compensation Committee of the Board of Directors after the end of the fiscal year. These awards are not included in the table below or in the amount of unrecognized compensation cost.

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The following table summarizes RSU transactions during the first quarter of 2026:Number ofUnits (in 000s)Weighted-AverageGrant Date Fair ValueOutstanding at August 31, 20252,308 $597.00 Granted1,020 934.80 Vested and delivered(1,285)669.77 Forfeited(11)644.61 Outstanding at November 23, 20252,032 $720.32 The remaining unrecognized compensation cost related to RSUs unvested at November 23, 2025, was $1,355, and the weighted-average period over which this cost will be recognized is 1.7 years. Summary of Stock-Based CompensationThe following table summarizes stock-based compensation expense and the related tax benefits:12 Weeks EndedNovember 23,2025November 24,2024Stock-based compensation expense$486 $463 Less recognized income tax benefits117 101 Stock-based compensation expense, net$369 $362 

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 EndedNovember 23,2025November 24,2024Net income$2,001 $1,798 Weighted average basic shares443,961 443,988 RSUs554 903 Weighted average