Costco 2010 Annual Report Download - page 2

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THE COMPANY
Costco Wholesale Corporation and its subsidiaries (“Costco” or the “Company”) began operations
in 1983 in Seattle, Washington. In October 1993, Costco merged with The Price Company, which had
pioneered the membership warehouse concept, to form Price/Costco, Inc., a Delaware corporation. In
January 1997, after the spin-off of most of its non-warehouse assets to Price Enterprises, Inc., the
Company changed its name to Costco Companies, Inc. On August 30, 1999, the Company
reincorporated from Delaware to Washington and changed its name to Costco Wholesale Corporation,
which trades on the NASDAQ under the symbol “COST.”
As of December 2010, the Company operated a chain of 582 warehouses in 40 states and Puerto
Rico (425 locations), nine Canadian provinces (80 locations), the United Kingdom (22 locations), Korea
(seven locations), Taiwan (six locations, through a 55%-owned subsidiary), Japan (nine locations) and
Australia (one location), as well as 32 warehouses in Mexico through a 50%-owned joint venture.
CONTENTS
Financial Highlights ................................................................. 1
Letter to Shareholders ............................................................... 2
Map of Warehouse Locations ......................................................... 6
Business Overview .................................................................. 8
Risk Factors ....................................................................... 14
Properties: Warehouses, Administration and Merchandise Distribution Properties .............. 21
Market for Costco Common Stock, Dividend Policy and Stock Repurchase Program ............ 22
Five Year Operating and Financial Highlights ............................................ 24
Management’s Discussion and Analysis of Financial Condition and Results of Operations ....... 25
Directors, Executive Officers and Corporate Governance .................................. 41
Management’s Reports .............................................................. 42
Reports of Independent Registered Public Accounting Firm ................................ 44
Consolidated Financial Statements .................................................... 46
Notes to Consolidated Financial Statements ............................................. 50
Directors and Officers of the Company ................................................. 83
Additional Information ............................................................... 85