\fConsolidated Balance Sheets - USD (S) shares in Thousands, $ in Millions CURRENT ASSETS Cash and cash equivalents Shortterm investments Receivables, net Merchandise inventories Other current assets Total current assets OTHER ASSETS (LONG TERM ASSETS) Land Buildings and improvements Equipment and fixtures Construction in progress Gross property and equipment Less accumulated depreciation and amortization Net property and equipment Operating lease, right-of-use assets Other long-term assets TOTAL ASSETS CURRENT lIABIlITIES Accounts payable Accrued salaries and benefits Accrued member rewards Deferred membership fees Current portion of long-term debt Other current liabilities Total current liabilities lONGTERM LIABILITIES Long-term debt, excluding current portion Long-term operating lease liabilities Other long-term liabilities Total liabilities $ 11,253 $ 917 $ 1,303 $ 14,215 $ 1,312 $ 29,505 $ 7,507 $ 19,139 $ 9,505 $ 1,507 $ 37,653 $ (14,166) $ 23,492 $ 2,390 $ 3,331 $ 59,263 16,273 4,090 1,671 2,042 799 4,561 $ 29,441 6,692 2,642 2,415 $ 41,190 $ 5 $ 12,277 $ 1,023 $ 1,550 $ 12,242 $ 1,023 23,120 $ 6,696 $ 17,932 $ 3,749 $ 1,276 $ 34,703 $ (12,396) $ 21,307 $ 2,733 $ 2,341 55,556 14,172 3,605 1,393 1,351 95 3,723 24,344 7,514 2,553 1,935 36,351 12 Months Ended Aug. 29, 2021 Aug. 30, 2020 Sep. 01, 2019 Sep. 02, 2018 Sep. 03, 2017 Aug. 28, 2016 $3,334 $ 1,060 $ 1,535 $ 11,395 $ 1,111 $ 23,435 $6,417 $ 17,136 $7,301 $ 1,272 $ 32,626 $ (11,736) $ 20,390 $ 0 $ 1,025 5 45,400 11,679 3,176 1,130 1,711 1,699 3,792 5 23,237 5,124 0 1,455 $ 29,316 $ 5 $ $ $6,055 $ 1,204 $ 1,669 $ 11,040 $ 321 20,239 $6,193 $ 16,107 $7,274 $ 1,140 $30,714 $ (11,033) $ 19,681 $ 0 S 860 40,830 1 1,237 2,994 1,057 1,624 90 2,924 19,926 6,437 0 1,314 27,727 $ 5 $ $ $ 4,546 $ 1,233 $ 1,432 $ 9,334 $ 272 17,317 $ 5,690 $ 15,127 $ 6,631 $ 343 $23,341 $ (10,130) $ 18,161 5 0 $ 869 36,347 9,603 2,703 961 1,493 36 2,639 17,495 6,573 0 1,200 25,263 $ 5 S S $ 3,379 $ 1,350 $ 1,252 $ 8,969 $263 15,213 $ 5,395 $ 13,994 $ 6,077 $701 $ 26,167 5 (9,124) $ 17,043 5 0 S 902 33,163 7,612 2,629 369 $ 1,362 $ 1,100 2,003 15,575 4,061 0 1,195 20,331 35 _ EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS $46 $70 $(15I S (37) $25 $50 37 CASH AND CASH EQUIVALENTS BEGINNING OF YEAR 5 12,277 $8,384 $6,055 $4,546 5 3,379 3 4,801 _ 39 40 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: 41 Cash paid during the year for: 42 Interest 5 149 S 124 S 141 S 143 S 131 S 123 43 Income taxes, net $ 1,527 5 1,052 5 1,187 5 1,204 5 1,185 5 953 Consolidated Statements Of Cash Flows S in Millions 12 Months Ended Aug. 29, 2021 Aug. 30, 2020 Sep. 01, 2019 Sep. 02, 2013 Sep. 03, 2017 Aug. 25, 2016 ; 2 3 CASH FLOWS FROM OPERATING ACTIVITIES 4 Net income including noncontrolling interests $ 5,079 $ 4,059 $ 3,704 $3,179 $ 2,714 $ 2,376 Adjustments to reconcile net income including noncontrolling interests to net cash 5 provided by operating activities: 6 Depreciation and amortization $ 1,781 $ 1,645 $ 1,492 $ 1,437 $ 1,370 $ 1,255 7 Non-cash lease expense $286 $194 $0 $0 $ 0 $ 0 8 Stock-based compensation $665 $619 $595 $ 544 $514 $459 9 Other non-cash operating activities, net $85 $42 $ 9 $ (6) $ (14) $ (57) 10 Deferred income taxes $59 $ 104 $ 147 $ (49) $ (29) $269 11 Changes in operating assets and liabilities: 12 Merchandise inventories $ (1,892) $ (791) $ (536) $ (1,313) $ (894) $ (25) 13 Accounts payable $ 1,838 $ 2,261 $322 $ 1,561 $2,258 $ (1,532) 14 Other operating assets and liabilities, net $ 1,057 $728 $623 $ 421 $807 $547 15 CASH FLOWS FROM INVESTING ACTIVITIES 17 Purchases of shortterm investments $ (1,331) $ (1,626) $ (1,094) $ (1,060) $ (1,279) $ (1,432) 18 Maturities and sales of short-term investments $ 1,446 $ 1,678 $ 1,231 $ 1,078 $ 1,385 $ 1,709 19 Additions to property and equipment $ (3,588) $ (2,810) $ (2,998) $ (2,969) $ (2,502) $ (2,649) 20 Acquisitions $0 $ (1,163) 21 Other investing activities, net $ (62) $ 30 $ (4) $4 $30 $ 27 N N 23 CASH FLOWS FROM FINANCING ACTIVITIES 24 Change in bank checks outstanding $ 188 $ 137 $210 $ 80 $ (236) $ 81 25 Repayments of short-term borrowings $0 $ 0 $ 0 $ 0 $ 0 $ (106) 26 Proceeds from short-term borrowings $41 $ 0 $ 0 $ 0 $ 0 $ 106 27 Proceeds from issuance of longterm debt $0 $ 3,992 $ 298 $ 0 $ 3,782 $ 185 28 Repayments of long-term debt $ (94) $ (3,200) $ (89) $ (86) $ (2,200) $ (1,288) 29 Tax withholdings on stock-based awards $ (312) $ (330) $(272) $ (217) $ (202) $ (220) 30 Repurchases of common stock $ (496) $ (196) $ (247) $ (328) $ (469) $ (486) 31 Cash dividend payments $(5,748) $ (1,479) $ (1,038) $ (689) $ (3,904) $ (746) 32 Other financing activities, net $ (67) $ (71) $ (9) $ (41) $ 11 $ 55 W W 12 Months Ended 2 Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Millions Aug. 29, 2021 Aug. 30, 2020 Sep. 01, 2019 Sep. 02, 2018 Sep. 03, 2017 Aug. 28, 2016 3 REVENUE: 4 Net sales $ 192,052 $ 163,220 $ 149,351 $ 138,434 $ 126,172 $ 116,073 5 Membership fees $ 3,877 $ 3,541 $ 3,352 $ 3,142 $ 2,853 $ 2,646 6 Total revenue $ 195,929 $ 166,761 $ 152,703 $ 141,576 $ 129,025 $ 118,719 7 OPERATING EXPENSES: 8 Merchandise costs $ 170,684 $ 144,939 $ 132,886 $ 123,152 $ 111,882 $ 102,901 9 Selling, general and administrative $ 18,461 $ 16,332 $ 14,994 $ 13,876 $ 12,950 $ 12,068 10 Preopening expenses $ 76 $ 55 $ 86 $ 68 $ 82 $ 78 11 Operating Income S 6,708 $ 5,435 4,737 $ 4,480 $ 4,111 $ 3,672 12 OTHER INCOME (EXPENSE): 13 Interest expense $ (171) $ (160) $ (150) $ (159) $ (134) $ (133) 14 Interest income and other, net $ 143 $ 92 $ 178 $ 121 $ 62 $ 80 15 INCOME BEFORE INCOME TAXES S 6,680 5,367 $ 4,765 4,442 $ 4,039 $ 3,619 16 Provision for income taxes $ 1,601 $ 1,308 $ 1,061 $ 1,263 $ 1,325 $ 1,243 17 Net income including noncontrolling interests $ 5,079 $ 4,059 $ 3,704 $ 3,179 $ 2,714 $ 2,376 18 Net income attributable to noncontrolling interests $ (72) $ (57) $ (45) $ (45) $ (35) $ (26) 19 NET INCOME ATTRIBUTABLE TO COSTCO $ 5,007 $ 4,002 $ 3,659 $ 3,134 $ 2,679 $ 2,350 20 21 NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO: 22 Basic (in dollars per share) $ 11.30 $ 9.05 $ 8.32 $ 7.15 $ 6.11 $ 5.36 23 Diluted (in dollars per share) $ 11.27 $ 9.02 S 8.26 S 7.09 6.08 5.33 24 Shares used in calculation (000's) 25 Basic (shares) 443,089 442,297 439,755 438,515 438,437 438,585 26 Diluted (shares) 444,346 443,901 442,923 441,834 440,937 441,263 27 CASH DIVIDEND DECLARED PER COMMON SHARE S 12.98 $ 2.70 $ 2.44 $ 2.14 $ 8.90 $ 1.7020 Cash conversion cycle = Days' sales in receivables + Days' sales in inventory - Days' payable outstanding