Costco 2012 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 Global Select Market under the symbol “COST”.
As of December 2012, the Company operated a chain of 622 warehouses in 41 states and Puerto Rico
(448 locations), nine Canadian provinces (85 locations), Mexico (32 locations), the United Kingdom (23
locations), Japan (13 locations), Korea (nine locations), Taiwan (nine locations, through a 55%-owned
subsidiary) and Australia (three locations). The Company also operates Costco Online, electronic
commerce web sites, at www.costco.com (U.S.), www.costco.ca (Canada), and www.costco.co.uk
(United Kingdom).
CONTENTS
Financial Highlights ................................................................. 1
Letter to Shareholders ............................................................... 2
Map of Warehouse Locations ......................................................... 6
Business Overview .................................................................. 8
Risk Factors ....................................................................... 14
Properties: Warehouses, Administrative and Merchandise Distribution Properties .............. 22
Market for Costco Common Stock, Dividend Policy and Stock Repurchase Program ............ 23
Five Year Operating and Financial Highlights ............................................ 25
Management’s Discussion and Analysis of Financial Condition and Results of Operations ....... 26
Executive Officers and Corporate Governance ........................................... 40
Management’s Reports .............................................................. 41
Reports of Independent Registered Public Accounting Firm ................................ 42
Consolidated Financial Statements .................................................... 44
Notes to Consolidated Financial Statements ............................................. 48
Directors and Officers of the Company ................................................. 75
Additional Information ............................................................... 77