Company: COST
Filing Date: 2025-06-05
Form Type: 10-Q
Source: 0000909832-25-000033
Chunk: 70

Company: COSTCO WHOLESALE CORP /NEW
Filing Date: 2025-06-05
Form: 10-Q
Item: Item 2
Chunk 70
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Interest Expense12 Weeks Ended36 Weeks EndedMay 11,2025May 12,2024May 11,2025May 12,2024Interest expense$35 $41 $108 $120 

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

Interest Income and Other, Net12 Weeks Ended36 Weeks EndedMay 11,2025May 12,2024May 11,2025May 12,2024Interest income$95 $94 $300 $395 Foreign-currency transaction gains (losses), net(17)20 49 54 Other, net7 14 25 55 Interest income and other, net$85 $128 $374 $504 

The decrease in interest income in the first thirty-six weeks of 2025 was due to lower interest rates, partially offset by higher cash balances. Foreign-currency transaction gains (losses), 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 Ended36 Weeks Ended May 11,2025May 12,2024May 11,2025May 12,2024Provision for income taxes$677 $603 $1,819 $1,614 Effective tax rate26.2 %26.4 %24.9 %24.4 %

The effective tax rate for the first thirty-six weeks of 2025 was favorably impacted by discrete tax benefits of $100 related to stock compensation.

The effective tax rate for the first thirty-six weeks 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 related to stock compensation.

LIQUIDITY AND CAPITAL RESOURCES

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

36 Weeks EndedMay 11,2025May 12,2024Net cash provided by operating activities