COSTCO WHOLESALE CORP /NEWCOST

COSTCO WHOLESALE CORP /NEW Segments Disclosure

10-KFiled Oct 8, 20253 min read
Note 11—Segment Reporting
The 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 Note 1. 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 Chief Executive Officer, President and Director. The CODM utilizes operating income, as reported in the 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:
202520242023
United States
Total revenue$200,046 $184,143 $176,630 
Merchandise costs174,021 160,573 154,858 
Selling, general and administrative expenses19,147 17,353 16,380 
Operating income$6,878 $6,217 $5,392 
Canada
Total revenue$36,923 $34,874 $33,056 
Merchandise costs32,204 30,543 29,019 
Selling, general and administrative expenses2,870 2,683 2,589 
Operating income$1,849 $1,648 $1,448 
Other International
Total revenue$38,266 $35,436 $32,604 
Merchandise costs33,661 31,242 28,709 
Selling, general and administrative expenses2,949 2,774 2,621 
Operating income$1,656 $1,420 $1,274 
Total
Total revenue$275,235 $254,453 $242,290 
Merchandise costs239,886 222,358 212,586 
Selling, general and administrative expenses24,966 22,810 21,590 
Operating income10,383 9,285 8,114 
Other income(1)
435 455 373 
Income before income taxes$10,818 $9,740 $8,487 
 ____________
(1)Other income consists of interest expense and interest income and other, net.
The following table provides depreciation and amortization and other asset related information for the Company's reportable segments:
202520242023
United States
Depreciation and amortization$1,895 $1,730 $1,599 
Additions to property and equipment4,215 3,725 3,288 
Property and equipment, net22,790 20,638 18,760 
Total assets54,862 48,816 49,189 
Canada
Depreciation and amortization$196 $192 $183 
Additions to property and equipment580 351 281 
Property and equipment, net2,930 2,602 2,443 
Total assets7,304 6,915 6,420 
Other International
Depreciation and amortization$335 $315 $295 
Additions to property and equipment703 634 754 
Property and equipment, net6,189 5,792 5,481 
Total assets14,933 14,100 13,385 
Total
Depreciation and amortization$2,426 $2,237 $2,077 
Additions to property and equipment5,498 4,710 4,323 
Property and equipment, net31,909 29,032 26,684 
Total assets77,099 69,831 68,994 
Disaggregated Revenue
The following table summarizes net sales by merchandise category; sales from e-commerce sites and business centers have been allocated to the applicable merchandise categories:
202520242023
Foods and Sundries
$109,564 $101,463 $96,175 
Non-Foods
71,190 63,973 60,865 
Fresh Foods
37,988 34,220 31,977 
Warehouse Ancillary and Other Businesses
51,170 49,969 48,693 
Total net sales
$269,912 $249,625 $237,710 

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 Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

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