What changed in this filing

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Item 1. Financial Statements

2022-03-10 compared with 2021-12-22 · 139 added, 97 removed, 365 unchanged (39% of the section changed)

3 unchanged sentences

(amounts in millions, except per share data) (unaudited)

12 Weeks Ended

2021 November 22,

12 Weeks Ended 24 Weeks Ended

2022 February 14,

2021 February 13,

2022 February 14,

Net sales $ 50,937 $ 43,888 $ 100,354 $ 86,235

23 unchanged sentences

(amounts in millions) (unaudited)

12 Weeks Ended

2021 November 22,

12 Weeks Ended 24 Weeks Ended

2022 February 14,

2021 February 13,

2022 February 14,

NET INCOME INCLUDING NONCONTROLLING INTERESTS

1 unchanged sentence

Foreign-currency translation adjustment and other, net

( 35 ) 148 ( 107 ) 357

Comprehensive income 1,285 1,119 2,558 2,509

50 unchanged sentences

(amounts in millions) (unaudited)

12 Weeks Ended November 21, 2021

12 Weeks Ended February 13, 2022

Common Stock Additional

7 unchanged sentences

Shares (000s) Amount

BALANCE AT AUGUST 29, 2021 441,825 $ 4 $ 7,031 $ ( 1,137 ) $ 11,666 $ 17,564 $ 514 $ 18,078

— — — — 1,324 1,324 21 1,345

BALANCE AT NOVEMBER 21, 2021 443,434 $ 4 $ 7,064 $ ( 1,211 ) $ 12,606 $ 18,463 $ 537 $ 19,000

Net income — — — — 1,299 1,299 21 1,320

Foreign-currency translation adjustment and other, net — — — ( 35 ) — ( 35 ) — ( 35 )

— — — ( 74 ) — ( 74 ) 2 ( 72 )

Stock-based compensation — — 129 — — 129 — 129

— — 389 — — 389 — 389

Release of vested restricted stock units (RSUs), including tax effects 4 — ( 4 ) — — ( 4 ) — ( 4 )

1,686 — ( 355 ) — — ( 355 ) — ( 355 )

Repurchases of common stock ( 159 ) — ( 3 ) — ( 80 ) ( 83 ) — ( 83 )

( 77 ) — ( 1 ) — ( 34 ) ( 35 ) — ( 35 )

Cash dividend declared — — — — ( 351 ) ( 351 ) — ( 351 )

BALANCE AT FEBRUARY 13, 2022 443,279 $ 4 $ 7,186 $ ( 1,246 ) $ 13,474 $ 19,418 $ 558 $ 19,976

12 Weeks Ended February 14, 2021

Common Stock Additional

Capital Accumulated

Comprehensive

Income (Loss) Retained

Earnings Total Costco

Stockholders’

Equity Noncontrolling

Interests Total

Shares (000s) Amount

BALANCE AT NOVEMBER 22, 2020 442,955 $ 4 $ 6,725 $ ( 1,101 ) $ 9,232 $ 14,860 $ 449 $ 15,309

12 Weeks Ended November 22, 2020

Net income — — — — 951 951 20 971

Foreign-currency translation adjustment and other, net — — — 140 — 140 8 148

Stock-based compensation — — 123 — — 123 — 123

Release of vested RSUs, including tax effects 7 — — — — — — —

Repurchases of common stock ( 308 ) — ( 5 ) — ( 107 ) ( 112 ) — ( 112 )

Cash dividend declared — — — — ( 310 ) ( 310 ) — ( 310 )

BALANCE AT FEBRUARY 14, 2021 442,654 $ 4 $ 6,843 $ ( 961 ) $ 9,766 $ 15,652 $ 477 $ 16,129

The accompanying notes are an integral part of these condensed consolidated financial statements.

COSTCO WHOLESALE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(amounts in millions) (unaudited)

24 Weeks Ended February 13, 2022

Common Stock Additional

8 unchanged sentences

BALANCE AT AUGUST 29, 2021 441,825 $ 4 $ 7,031 $ ( 1,137 ) $ 11,666 $ 17,564 $ 514 $ 18,078

— — — — 1,166 1,166 15 1,181

Net income — — — — 2,623 2,623 42 2,665

Foreign-currency translation adjustment and other, net — — — ( 109 ) — ( 109 ) 2 ( 107 )

— — — 196 — 196 13 209

Stock-based compensation — — 518 — — 518 — 518

— — 342 — — 342 — 342

Release of vested restricted stock units (RSUs), including tax effects 1,690 — ( 359 ) — — ( 359 ) — ( 359 )

Repurchases of common stock ( 236 ) — ( 4 ) — ( 114 ) ( 118 ) — ( 118 )

Cash dividends declared — — — — ( 701 ) ( 701 ) — ( 701 )

BALANCE AT FEBRUARY 13, 2022 443,279 $ 4 $ 7,186 $ ( 1,246 ) $ 13,474 $ 19,418 $ 558 $ 19,976

24 Weeks Ended February 14, 2021

Common Stock Additional

Capital Accumulated

Comprehensive

Income (Loss) Retained

Earnings Total Costco

Stockholders’

Equity Noncontrolling

Interests Total

Shares (000s) Amount

BALANCE AT AUGUST 30, 2020 441,255 $ 4 $ 6,698 $ ( 1,297 ) $ 12,879 $ 18,284 $ 421 $ 18,705

Net income — — — — 2,117 2,117 35 2,152

Foreign-currency translation adjustment and other, net — — — 336 — 336 21 357

Stock-based compensation — — 465 — — 465 — 465

Release of vested RSUs, including tax effects 1,920 — ( 311 ) — — ( 311 ) — ( 311 )

1,913 — ( 311 ) — — ( 311 ) — ( 311 )

Repurchases of common stock ( 521 ) — ( 9 ) — ( 180 ) ( 189 ) — ( 189 )

( 213 ) — ( 4 ) — ( 73 ) ( 77 ) — ( 77 )

Cash dividends declared — — — — ( 5,050 ) ( 5,050 ) — ( 5,050 )

BALANCE AT NOVEMBER 22, 2020 442,955 $ 4 $ 6,725 $ ( 1,101 ) $ 9,232 $ 14,860 $ 449 $ 15,309

BALANCE AT FEBRUARY 14, 2021 442,654 $ 4 $ 6,843 $ ( 961 ) $ 9,766 $ 15,652 $ 477 $ 16,129

The accompanying notes are an integral part of these condensed consolidated financial statements.

3 unchanged sentences

24 Weeks Ended

2021 November 22,

2022 February 14,

CASH FLOWS FROM OPERATING ACTIVITIES

19 unchanged sentences

Change in bank payments outstanding ( 10 ) ( 67 )

Repayments of short-term borrowings ( 40 ) —

Repayments of long-term borrowings ( 800 ) —

Tax withholdings on stock-based awards ( 359 ) ( 311 )

8 unchanged sentences

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

Cash paid during the first 12 weeks of the year for:

Cash paid during the first half of the year for:

Income taxes, net $ 469 $ 755

1 unchanged sentence

Cash dividend declared, but not yet paid

Leased assets obtained in exchange for finance lease liabilities $ 118 $ 51

Leased assets obtained in exchange for operating lease liabilities $ 61 $ 44

Financing lease assets obtained in exchange for new or modified leases $ 172 $ 135

Operating lease assets obtained in exchange for new or modified leases $ 60 $ 140

The accompanying notes are an integral part of these condensed consolidated financial statements.

5 unchanged sentences

Costco Wholesale Corporation (Costco or the Company), a Washington corporation, and its subsidiaries operate membership warehouses based on the concept that offering members low prices on a limited selection of nationally-branded and private-label products in a wide range of merchandise categories will produce high sales volumes and rapid inventory turnover.

For the period ended November 21, 2021, Costco operated 823 warehouses worldwide:

571 in the United States (U.S.) located in 46 states, Washington, D.C., and Puerto Rico, 105 in Canada, 39 in Mexico, 30 in Japan, 29 in the United Kingdom (U.K.), 16 in Korea, 14 in Taiwan, 13 in Australia, three in Spain, and one each in Iceland, France and China.

For the period ended February 13, 2022, Costco operated 828 warehouses worldwide:

572 in the United States (U.S.) located in 46 states, Washington, D.C., and Puerto Rico, 105 in Canada, 40 in Mexico, 30 in Japan, 29 in the United Kingdom (U.K.), 16 in Korea, 14 in Taiwan, 13 in Australia, four in Spain, two each in France and China, and one in Iceland.

The Company operates e-commerce websites in the U.S., Canada, Mexico, U.K., Korea, Taiwan, Japan, and Australia.

2 unchanged sentences

The Company reports noncontrolling interests in consolidated entities as a component of equity separate from the Company’s equity.

All material inter-company transactions between and among the Company and its consolidated subsidiaries have been eliminated in consolidation.

All material inter-company transactions among the Company and its consolidated subsidiaries have been eliminated in consolidation.

The Company’s net income excludes income attributable to the noncontrolling interest in Taiwan.

4 unchanged sentences

GAAP) for complete financial statements.

Therefore, the interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company's Annual Report filed on Form 10-K for the fiscal year ended August 29, 2021.

Therefore, the interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company's Annual Report on Form 10-K for the fiscal year ended August 29, 2021.

Fiscal Year End

1 unchanged sentence

Fiscal 2022 is a 52-week year ending on August 28, 2022.

References to the first quarter of 2022 and 2021 relate to the 12-week fiscal quarters ended November 21, 2021, and November 22, 2020.

References to the second quarter of 2022 and 2021 relate to the 12-week fiscal quarters ended February 13, 2022 and February 14, 2021, respectively.

References to the first half of 2022 and 2021 relate to the 24 weeks ended February 13, 2022 and February 14, 2021, respectively.

Use of Estimates

The preparation of financial statements in conformity with U.S.

generally accepted accounting principles (U.S.

GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.

These estimates and assumptions take into account historical and forward-looking factors that the Company believes are reasonable, including but not limited to the potential impacts arising from the novel coronavirus (COVID-19) and related public and private sector policies and initiatives.

These estimates and assumptions take into account historical and forward-looking factors that the Company believes are reasonable.

Actual results could differ from those estimates and assumptions.

1 unchanged sentence

The Company capitalizes certain computer software and costs incurred in developing or obtaining software for internal use.

In the first quarter of 2022, the Company recognized a $ 118 write-off of certain information technology assets, which was recorded in selling, general and administrative expenses, in the condensed consolidated statements of income.

The Company recognized a $ 118 write-off of certain information technology assets, which was recorded in the first quarter of 2022, in selling, general and administrative expenses, in the condensed consolidated statements of income.

Reclassification

Reclassifications were made to our first quarter 2021 condensed consolidated statements of income to conform with current period presentation.

Reclassifications were made to our second quarter and first half 2021 condensed consolidated statements of income to conform with current period presentation.

Note 2—Investments

The Company's investments were as follows:

November 21, 2021:

February 13, 2022:

Basis Unrealized

13 unchanged sentences

Total short-term investments $ 911 $ 6 $ 917

Gross unrecognized holding gains and losses on available-for-sale securities were not material for the periods ended November 21, 2021, and August 29, 2021 .

At those dates, there were no available-for-sale securities in a continuous unrealized-loss position.

There were no sales of available-for-sale securities during the first quarter of 2022 or 2021.

The maturities of available-for-sale and held-to-maturity securities at November 21, 2021, are as follows:

Gross unrecognized holding gains and losses on available-for-sale securities were not material for the periods ended February 13, 2022, and August 29, 2021 .

At those dates, there were no available-for-sale securities in a material continuous unrealized-loss position.

There were no sales of available-for-sale securities during the first half of 2022 or 2021.

The maturities of available-for-sale and held-to-maturity securities at February 13, 2022, are as follows:

Available-For-Sale Held-To-Maturity

12 unchanged sentences

_______________

(1) At February 13, 2022, $ 8 cash and cash equivalents and $ 365 short-term investments are included in the accompanying condensed consolidated balance sheets.

At August 29, 2021, $ 12 cash and cash equivalents and $ 381 short-term investments are included in the accompanying condensed consolidated balance sheets.

(2) The asset and liability values are included in other current assets and other current liabilities, respectively, in the accompanying condensed consolidated balance sheets.

At November 21, 2021, and August 29, 2021, 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 the first quarter of 2022 or 2021.

At February 13, 2022, and August 29, 2021, 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 the first half of 2022 or 2021.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

1 unchanged sentence

These assets are measured at fair value if determined to be impaired.

There were no fair value adjustments to these items during the first quarter of 2022 or 2021.

There were no fair value adjustments to these items during the first half of 2022 or 2021.

The carrying value of the Company’s long-term debt consisted of the following:

14 unchanged sentences

(1) Net of unamortized debt discounts and issuance costs.

The fair value of Senior Notes is estimated using Level 2 inputs.

The fair value of the Senior Notes is estimated using Level 2 inputs.

Other long-term debt consists of Guaranteed Senior Notes issued by the Company's Japan subsidiary, valued using Level 3 inputs.

The fair value of the Company's long-term debt, including the current portion, was approximately $ 7,541 and $ 7,692 at November 21, 2021, and August 29, 2021.

Subsequent to the end of the quarter, on December 1, 2021, the Company repaid, prior to maturity, the 2.300 % Senior Notes at a redemption price plus accrued interest as specified in the Notes' agreement.

The fair value of the Company's long-term debt, including the current portion, was approximately $ 6,492 and $ 7,692 at February 13, 2022, and August 29, 2021.

On December 1, 2021, the Company repaid, prior to maturity, the 2.300 % Senior Notes at a redemption price plus accrued interest as specified in the Notes' agreement.

Note 5—Equity

The Company’s current quarterly dividend is $ 0.79 per share, compared to $ 0.70 in the first quarter of 2021.

On October 13, 2021, the Board of Directors declared a quarterly cash dividend in the amount of $ 0.79 per share, which was paid on November 12, 2021.

On December 11, 2020, an aggregate payment of approximately $ 4,430 was made in connection with the special cash dividend of $ 10.00 per share, declared on November 16, 2020.

Stock Repurchase Programs

The Company's stock repurchase program is conducted under a $ 4,000 authorization by the Board of Directors, which expires in April 2023.

The remaining amount available for stock repurchases under the approved plan was $ 3,215 at November 21, 2021.

Stock repurchase activity during the first quarter of 2022 and 2021 is summarized below:

The Company’s current quarterly dividend is $ 0.79 per share, compared to $ 0.70 in the second quarter of 2021.

On January 20, 2022, the Board of Directors declared a quarterly cash dividend in the amount of $ 0.79 per share, which was paid on February 18, 2022.

Share Repurchase Program

The Company's share repurchase program is conducted under a $ 4,000 authorization by the Board of Directors, which expires in April 2023.

The remaining amount available under the approved plan was $ 3,132 at February 13, 2022.

Share repurchase activity during the second quarter of 2022 and 2021 is summarized below:

Shares Repurchased (000s) Average Price per Share Total Cost

First quarter of 2022 77 $ 455.08 $ 35

First quarter of 2021 213 $ 359.45 $ 77

These amounts may differ from the stock repurchase balances in the accompanying condensed consolidated statements of cash flows due to changes in unsettled stock repurchases at quarter end.

Second quarter of 2022 159 $ 518.73 $ 83

First half of 2022 236 $ 498.00 $ 118

Second quarter of 2021 308 $ 362.95 $ 112

First half of 2021 521 $ 361.52 $ 189

These amounts may differ from the repurchase balances in the accompanying condensed consolidated statements of cash flows due to changes in unsettled repurchases at quarter end.

Purchases are made from time to time, as conditions warrant, in the open market or in block purchases and pursuant to plans under SEC Rule 10b5-1.

4 unchanged sentences

Summary of Restricted Stock Unit Activity

At November 21, 2021, 10,334,000 shares were available to be granted as RSUs, and the following awards were outstanding:

• 3,463,000 time-based RSUs, which vest upon continued employment over specified periods and accelerates upon achievement of the long-service term;

At February 13, 2022, 10,388,000 shares were available to be granted as RSUs, and the following awards were outstanding:

• 3,403,000 time-based RSUs, which vest upon continued employment over specified periods and accelerate upon achievement of the long-service term;

• 39,000 performance-based RSUs, granted to executive officers of the Company, for which the performance targets have been met.

The awards vest upon continued employment over specified periods of time;

The awards vest upon continued employment over specified periods of time and upon achievement of the long-service term;

• 82,000 performance-based RSUs, granted to executive officers of the Company, subject to achievement of performance targets for fiscal 2022, as determined by the Compensation Committee of the Board of Directors after the end of the fiscal year.

These awards are not included in the table below or in the amount of unrecognized compensation cost.

The following table summarizes RSU transactions during the first quarter of 2022:

These awards are included in the table below.

The Company recognized compensation expense for these awards in the second quarter of 2022, as it is currently deemed probable that the targets will be achieved.

The following table summarizes RSU transactions during the first half of 2022:

Units (in 000s) Weighted-Average

4 unchanged sentences

Forfeited ( 66 ) 320.88

Outstanding at November 21, 2021 3,502 $ 334.16

The remaining unrecognized compensation cost related to unvested RSUs at November 21, 2021, was $ 1,089 , and the weighted-average period over which this cost will be recognized is 1.8 years.

Outstanding at February 13, 2022 3,524 $ 338.29

The remaining unrecognized compensation cost related to RSUs unvested at February 13, 2022, was $ 985 , and the weighted-average period over which this cost will be recognized is 1.8 years.

Summary of Stock-Based Compensation

The following table summarizes stock-based compensation expense and the related tax benefits:

12 Weeks Ended

2021 November 22,

12 Weeks Ended 24 Weeks Ended

2022 February 14,

2021 February 13,

2022 February 14,

Stock-based compensation expense

Less recognized income tax benefit

$ 128 $ 122 $ 516 $ 463

Less recognized income tax benefits 23 22 108 97

Stock-based compensation expense, net $ 105 $ 100 $ 408 $ 366

1 unchanged sentence

The following table shows the amounts used in computing net income per share and the weighted average number of shares of basic and potentially dilutive common shares outstanding (shares in 000s):

12 Weeks Ended

2021 November 22,

12 Weeks Ended 24 Weeks Ended

2022 February 14,

2021 February 13,

2022 February 14,

Net income attributable to Costco

5 unchanged sentences

444,916 444,494 444,760 444,440

Anti-dilutive RSUs

Anti-dilutive shares are excluded from the calculation of diluted shares and earnings per diluted share because their impact would increase earnings per diluted share.

Note 8—Commitments and Contingencies

4 unchanged sentences

The Company monitors those matters for developments that would affect the likelihood of a loss (taking into account where applicable indemnification arrangements concerning suppliers and insurers) and the accrued amount, if any, thereof, and adjusts the amount as appropriate.

As of the date of this Report, the Company has recorded immaterial accruals with respect to certain matters described below, in addition to other immaterial accruals for matters not described below.

The Company has recorded immaterial accruals with respect to certain matters described below, in addition to other immaterial accruals for matters not described below.

If the loss contingency at issue is not both probable and reasonably estimable, the Company does not establish an accrual, but will continue to monitor the matter for developments that will make the loss contingency both probable and reasonably estimable.

4 unchanged sentences

and/or (iii) the matters involve complex or novel legal theories or a large number of parties.

The Company is a defendant in an action commenced in August 2013 under the California Labor Code Private Attorneys General Act (PAGA) alleging violation of California Wage Order 7-2001 for failing to provide seating to employees who work at entrance and exit doors in California warehouses.

Costco Wholesale Corp., et al.

The Company is a defendant in an action commenced in July 2013 under the California Labor Code Private Attorneys General Act (PAGA) alleging violation of California Wage Order 7-2001 for failing to provide seating to employees who work at entrance and exit doors in California warehouses.

Costco Wholesale Corp.

2013-1-CV-248813;

11 unchanged sentences

Relief is sought under the California Labor Code, including civil penalties and attorneys' fees.

Costco Wholesale Corp.

Wholesale Corp.

2:19-cv-03454;

9 unchanged sentences

Relief is sought under the California Labor Code, including civil penalties and attorneys' fees.

The Company has moved for partial summary judgement, and the parties have filed competing motions regarding class certification.

In September 2021 the court granted Costco’s motion for partial summary judgment and denied class certification.

In August 2019, the plaintiff filed a companion case in state court seeking penalties under PAGA.

3 unchanged sentences

The state court action has been stayed pending resolution of the federal action.

In June 2019, an employee filed a class action against the Company alleging claims under California law for failure to pay overtime, to provide meal and rest periods, itemized wage statements, to timely pay wages due to terminating employees, to pay minimum wages, and for unfair business practices.

Costco Wholesale Corp .

3:19-cv-05624-EMC;

The Company filed an answer denying the material allegations of the complaint.

In June 2021, the plaintiff agreed to dismiss his claims for failure to provide meal and rest breaks and to pay minimum wages.

In July 2021, the parties reached an agreement settling for an immaterial amount the remaining claim and related derivative claims.

In April 2020, an employee, alleging underpayment of sick pay, filed a class and representative action against the Company, alleging claims under California law for failure to pay all wages at termination and for Labor Code penalties under PAGA.

3 unchanged sentences

A request for dismissal of the class and representative action is pending.

In July 2020, an employee filed an action under PAGA on behalf of all California non-exempt employees alleging violations of California Labor Code provisions regarding meal and rest periods, minimum wage, overtime, wage statements, reimbursement of expenses, and payment of wages at termination.

Costco Wholesale Corporation (Case No.

37-2020-00023551-CU-OE-CTL;

San Diego County Superior Court).

In August 2020, the Company filed a motion to strike portions of the complaint, which was denied, and an answer has been filed denying the material allegations of the complaint.

In December 2020, a former employee filed suit against the Company asserting collective and class claims on behalf of non-exempt employees under the Fair Labor Standards Act and New York Labor Law for failure to pay for all hours worked on a weekly basis and failure to provide proper wage statements and notices.

The plaintiff also asserts individual retaliation claims.

In December 2020, a former employee filed suit against the Company asserting collective and class claims on behalf of non-exempt employees under the Fair Labor Standards Act and New York Labor Law for failure to pay for all hours worked, failure to pay certain non-exempt employees on a weekly basis, and failure to provide proper wage statements and notices.

The plaintiff also asserted individual retaliation claims.

Costco Wholesale Corp.

1:20-cv-06067;

An amended complaint was filed, and the Company has denied the material allegations of the amended complaint.

In August 2021, a former employee filed a similar suit, asserting collective and class claims on behalf of non-exempt employees under the FLSA and New York law.

An amended complaint was filed, and the Company denied the material allegations of the amended complaint.

Based on an agreement in principle concerning settlement of the matter, involving a proposed payment by the Company of an immaterial amount, the federal action has been dismissed.

In August 2021, a former employee filed a similar suit, asserting class claims on behalf of certain non-exempt employees under New York Labor Law for failure to pay on a weekly basis.

Costco Wholesale Corp.

13 unchanged sentences

San Joaquin Superior Court).

The Company will move to compel arbitration of the plaintiff's individual claims and to dismiss the class action complaint.

On September 7, 2021, the same former employee filed a separate representative action under PAGA asserting the same Labor Code violations and seeking civil penalties and attorneys' fees.

The Company has moved to compel arbitration of the plaintiff's individual claims and to dismiss the class action complaint.

On September 7, 2021, the same former employee filed a separate representative

action under PAGA asserting the same Labor Code violations and seeking civil penalties and attorneys' fees.

The complaint has not yet been served.

4 unchanged sentences

Sacramento Superior Court).

The Company has not yet responded to the complaint.

The Company answered the complaint in January 2022, denying its material allegations.

Beginning in December 2017, the United States Judicial Panel on Multidistrict Litigation consolidated numerous cases concerning the impacts of opioid abuses filed against various defendants by counties, cities, hospitals, Native American tribes, third-party payors, and others.

10 unchanged sentences

Inter-segment net sales and expenses have been eliminated in computing total revenue and operating income.

Effective for the 12 weeks ending November 21, 2021, stock-based compensation was allocated to the segments.

This change reflected a decision to evaluate the financial performance of the Company's segments inclusive of this expense.

Effective for fiscal 2022, stock-based compensation was allocated to the segments in this reporting.

This change reflected a decision to evaluate the financial performance of the segments inclusive of this expense.

Operating income was restated in each of the segments for all prior periods to reflect this change.

5 unchanged sentences

Operations Total

12 Weeks Ended November 21, 2021

12 Weeks Ended February 13, 2022

Total revenue $ 37,567 $ 7,017 $ 7,320 $ 51,904

Operating income 1,179 301 332 1,812

12 Weeks Ended November 22, 2020

12 Weeks Ended February 14, 2021

Total revenue $ 32,127 $ 6,001 $ 6,641 $ 44,769

Operating income 826 226 288 1,340

24 Weeks Ended February 13, 2022

Total revenue $ 73,884 $ 14,138 $ 14,245 $ 102,267

Operating income 2,297 594 614 3,505

24 Weeks Ended February 14, 2021

Total revenue $ 63,419 $ 12,012 $ 12,546 $ 87,977

Operating income 1,763 473 534 2,770

52 Weeks Ended August 29, 2021

3 unchanged sentences

The following table summarizes net sales by merchandise category;

sales from e-commerce websites and business centers have been allocated to their respective merchandise categories:

12 Weeks Ended

2021 November 22,

sales from e-commerce websites and business centers have been allocated to the applicable merchandise categories:

12 Weeks Ended 24 Weeks Ended

2022 February 14,

2021 February 13,

2022 February 14,

Foods and Sundries $ 19,489 $ 17,624 $ 39,052 $ 35,643

5 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements