COSTCO WHOLESALE CORP /NEWCOST

COSTCO WHOLESALE CORP /NEW Leases Disclosure

10-KFiled Oct 8, 20252 min read
Note 5—Leases
Information regarding the Company's lease assets and liabilities were as follows:
20252024
Assets
Operating lease right-of-use assets$2,725 $2,617 
Finance lease assets(1)
1,488 1,433 
Total lease assets$4,213 $4,050 
Liabilities
Current
Operating lease liabilities(2)
$208 $179 
Finance lease liabilities(2)
78 147 
Long-term
Operating lease liabilities2,460 2,375 
Finance lease liabilities(3)
1,401 1,351 
Total lease liabilities$4,147 $4,052 
 _______________
(1)Included in other long-term assets in the consolidated balance sheets.
(2)Included in other current liabilities in the consolidated balance sheets.
(3)Included in other long-term liabilities in the consolidated balance sheets.
20252024
Weighted-average remaining lease term (years)
Operating leases
2019
Finance leases
2523
Weighted-average discount rate
Operating leases
3.05 %2.67 %
Finance leases
4.63 %4.59 %
The components of lease expense, excluding short-term lease costs and sublease income (which were immaterial), were as follows:
202520242023
Operating lease costs(1)
$271 $284 $309 
Finance lease costs:
Amortization of lease assets(1)
102 97 169 
Interest on lease liabilities(2)
63 58 54 
Variable lease costs(1)
182 163 160 
Total lease costs$618 $602 $692 
 _______________
(1)Included in selling, general and administrative expenses and merchandise costs in the consolidated statements of income.
(2)Included in interest expense and merchandise costs in the consolidated statements of income.
Supplemental cash flow information related to leases were as follows:
202520242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows — operating leases$255 $274 $287 
Operating cash flows — finance leases
58 58 54 
Financing cash flows — finance leases
147 136 291 
Operating lease assets obtained in exchange for new or modified leases294 125 202 
Finance lease assets obtained in exchange for new or modified leases131 200 100 
As of August 31, 2025, future minimum payments during the next five fiscal years and thereafter are as follows:
Operating Leases(1)
Finance Leases
2026$267 $133 
2027250 132 
2028235 135 
2029204 122 
2030184 109 
Thereafter2,451 1,780 
Total(2)
3,591 2,411 
Less amount representing interest923 932 
Present value of lease liabilities$2,668 $1,479 
 _______________
(1)Operating lease payments have not been reduced by expected future sublease income of $92.
(2)Excludes $1,094 of lease payments for leases that have been signed but not commenced.

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 Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

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