COSTCO WHOLESALE CORP /NEWCOST

COSTCO WHOLESALE CORP /NEW Fair Value Disclosure

10-KFiled Oct 8, 20251 min read
Note 3—Fair Value Measurement
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following table presents information regarding the Company’s financial assets and liabilities that are measured at fair value on a recurring basis and indicates the level within the hierarchy reflecting the valuation techniques utilized to determine such fair value:
Level 2
20252024
Investment in government and agency securities$786 $688 
Forward foreign-exchange contracts, in asset position(1)
6 1 
Forward foreign-exchange contracts, in (liability) position(1)
(14)(28)
Total$778 $661 
 ____________
(1)The asset and liability values are included in other current assets and other current liabilities, respectively, in the consolidated balance sheets.
At August 31, 2025, and September 1, 2024, the Company did not hold any Level 1 or 3 financial assets or liabilities that were measured at fair value on a recurring basis. There were no transfers between levels during 2025 or 2024.
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
Assets and liabilities recognized and disclosed at fair value on a nonrecurring basis include items such as financial assets measured at amortized cost and long-lived nonfinancial assets. These assets are measured at fair value if determined to be impaired. There were no material fair value adjustments to these items during 2025 and 2024. Please see Note 1 for additional information.

Historical Timeline

Fiscal YearFiled
2025Oct 8, 2025Showing above
2024Oct 9, 2024
2023Oct 11, 2023
2022Oct 5, 2022
2021Oct 6, 2021
2020Oct 7, 2020
2019Oct 11, 2019
2018Oct 26, 2018
2017Oct 18, 2017
2016Oct 12, 2016
2015Oct 14, 2015

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.

Other Available Disclosures

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