Edgar Filing: COSTCO WHOLESALE CORP /NEW

2014 11-K

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

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FORM 11-K

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ý	ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



o	TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2014

Commission File Number 0-20355

Costco 401(k) Retirement Plan

(full title of plan)

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Costco Wholesale Corporation

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999 Lake Drive

Issaquah, Washington 98027

(Name of issuer and address of principal executive offices of issuer)

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COSTCO 401(k) RETIREMENT PLAN

Table of Contents



	Page
Report of Independent Registered Public Accounting Firm	1
Financial Statements:
Statements of Net Assets Available for Benefits as of December 31, 2014 and 2013	2
Statements of Changes in Net Assets Available for Benefits for the Years Ended December 31, 2014 and 2013	3
Notes to Financial Statements	4
Supplemental Information
Schedule H, Line 4i - Schedule of Assets (Held at End of Year) as of December 31, 2014	14
Signature	29
Exhibit:
23(a) - Consent of Independent Registered Public Accounting Firm

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Report of Independent Registered Public Accounting Firm

The Benefits Committee

Costco 401(k) Retirement Plan:

We have audited the accompanying statements of net assets available for benefits of the Costco 401(k) Retirement Plan (the Plan) as of December 31, 2014 and 2013, and the related statements of changes in net assets available for benefits for the years then ended. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2014 and 2013, and the changes in net assets available for benefits for the years then ended, in conformity with U.S. generally accepted accounting principles.

The supplemental information in the accompanying schedule of assets (held at end of year) as of December 31, 2014, has been subjected to audit procedures performed in conjunction with the audit of the Plan’s 2014 financial statements. The supplemental information is presented for the purpose of additional analysis and is not a required part of the financial statements but include supplemental information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental information is the responsibility of the Plan’s management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. In our opinion, the supplemental information in the accompanying schedules of assets (held at end of year) as of December 31, 2014 is fairly stated in all material respects in relation to the 2014 financial statements as a whole.

/s/ KPMG LLP

Seattle, Washington

June 15, 2015

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COSTCO 401(k) RETIREMENT PLAN

Statements of Net Assets Available for Benefits

December 31, 2014 and 2013

(in thousands)



				2014			2013
Assets:
	Investments at fair value:
		Costco Wholesale Corporation common stock		$	3,481,433		$	2,853,872
		Registered investment company funds		2,224,625			1,997,748
		Common commingled trust funds		2,234,859			1,835,867
		Fully benefit-responsive contracts		1,159,534			1,113,239
		Separately managed accounts		409,903			365,046
			Total investments	9,510,354			8,165,772
	Money market fund			1,455			1,015
	Receivables:
		Notes receivable from participants		419,432			390,620
		Employer contributions (net of forfeitures)		261,055			243,393
		Employee contributions		—			12,963
			Total receivables	680,487			646,976
Total assets				10,192,296			8,813,763
Adjustment from fair value to contract value for fully benefit-responsive investment contracts				(16,166		)	(16,059		)
			Net assets available for benefits	$	10,176,130		$	8,797,704

See accompanying notes to financial statements.

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COSTCO 401(k) RETIREMENT PLAN

Statements of Changes in Net Assets Available for Benefits

Years Ended December 31, 2014 and 2013

(in thousands)



				2014			2013
Net investment income:
	Net appreciation (depreciation) of investments:
		Costco Wholesale Corporation common stock		$	562,106		$	480,533
		Registered investment company funds		45,562			468,536
		Common commingled trust funds		126,231			205,599
		Fully benefit-responsive contracts		(101		)	(86		)
		Separately managed accounts		20,287			86,491
	Interest and other			23,035			23,652
	Dividends			174,310			109,021
			Total net investment income	951,430			1,373,746
Interest from notes receivable from participants				19,914			17,471
Contributions to the Plan:
	Employee			404,604			365,641
	Employer			312,334			291,381
			Total contributions	716,938			657,022
Distributions to participants				(309,856		)	(281,379		)
			Net increase in net assets available for benefits	1,378,426			1,766,860
Net assets available for benefits, beginning of year				8,797,704			7,030,844
Net assets available for benefits, end of year				$	10,176,130		$	8,797,704

See accompanying notes to financial statements.

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COSTCO 401(k) RETIREMENT PLAN

Notes to Financial Statements

December 31, 2014 and 2013


(1)	Plan Description

The following description of the Costco 401(k) Retirement Plan (the Plan) provides only general information. Participants should refer to the Plan document for a more complete description of the Plan’s provisions. Participants in the Plan are employees of Costco Wholesale Corporation (the Company).

The Plan is a defined contribution plan for the benefit of eligible employees established by the Company under Section 401(a) of the Internal Revenue Code (IRC). It includes a qualified cash or deferred arrangement as described in Section 401(k) of the IRC. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA), as amended.


(a)	Employee Contributions

The Plan allows employees at least 18 years of age who have completed 90 days of service within a 12-consecutive-month period to make salary deferral contributions, commencing the first day of the month following the completion of 90 days of employment. Participants may contribute from 1% to 50% of their compensation before income taxes, subject to certain limitations set by the Internal Revenue Service (IRS). Participants may also contribute amounts representing distributions from other qualified benefit or contribution plans (known as rollover contributions).

All newly-eligible employees are automatically enrolled in the Plan at a contribution rate of 3% unless the employee elects otherwise. The percentage deferred into the Plan automatically increases by one percentage point on an active participant’s employment anniversary date, and each anniversary date thereafter, to a maximum deferral of 20%. Employees may choose to opt out of this automatic deferral increase.


(b)	Employer Contributions

All Company contributions are made in cash and invested in accordance with investment selections made by participants. If no selection has been made, the contribution defaults to the age-based target retirement fund. Employer contributions are allocated based on an employee’s classification as either: 1) a California Union Employee; or 2) an Other-than-California Union Employee.


(1)	California Union Employees

The Company matches 50% of each employee’s contribution up to a maximum employer matching contribution of $250 per year. Employees at least 18 years of age who have completed 12 consecutive months of service and worked at least 1,000 hours are eligible for an annual employer contribution. Plan entry dates for this purpose occur on January 1 and July 1. If the minimum hours requirement is not met in the first 12 months, hours roll forward until the requirement is fulfilled. The Company makes contributions into the accounts of all eligible plan participants employed on the last day of the plan year, based on straight-time hours worked during the plan year up to a maximum of 2,080 hours per calendar year and years of service. These contributions in 2014 and 2013 ranged from $0.05 to $0.47 per hour, totaling $4.2 million and $4.2 million, respectively.


(2)	Other-than-California Union Employees

The Company matches 50% of each employee’s contribution up to a maximum employer matching contribution of $500 per year. Employees at least 18 years of age who have completed 12 consecutive months of service and worked at least 1,000 hours, calculated every pay period, are eligible for an annual discretionary employer contribution. Plan entry dates for this purpose occur on January 1 and July 1. If the minimum hours requirement is not met in the first 12 months, hours roll forward until the requirement is fulfilled. The Company makes contributions into the accounts of all eligible plan participants employed on the last day of the plan year. Discretionary contributions ranged from 3% to 9% of each participant's compensation based on years of service, as defined by the Plan,

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COSTCO 401(k) RETIREMENT PLAN

Notes to Financial Statements

December 31, 2014 and 2013

totaling for the years ending December 31, 2014 and 2013 at $256.8 million and $237.9 million, respectively.


(c)	Participants’ Accounts

Each participant’s account is credited or debited with the participant’s contributions, the Company’s contributions, plan earnings and appreciation or depreciation in underlying securities. Participant accounts are also charged with an allocation of certain expenses based on the account balances. An example of an expense is the investment fee, which vary by what investment options make up the participant's account. The benefit to which a participant is entitled is the benefit that can be provided from the participant’s vested account.


(d)	Vesting

Participants are immediately vested in their contributions, actual earnings thereon, and in other contributions as defined in the Plan document. Vesting in the employer-match and discretionary contributions, including actual earnings thereon, is based on years of service, according to the following schedule:



Years of service								Percentage vested
Under 2 years								0%
2 years								20%
3 years								40%
4 years								60%
5 years								100%


(e)	Forfeitures

Forfeited balances of terminated participants’ non-vested accounts may be used to reduce future employer contributions or to pay administrative expenses. During 2014 and 2013, forfeitures totaling $3.5 million and $3.2 million, respectively, were used to reduce employer contributions. There were no unallocated forfeitures as of December 31, 2014 and 2013, after application to reduce the employer discretionary contributions. Forfeitures, without the benefit of investment gains or losses, can be restored to a participant’s account if, within five years, the participant is re-hired by the Company and repays the full amount distributed upon termination.


(f)	Investment Options

Upon enrollment in the Plan, a participant may direct the account balance into any of the investment options currently available. Participants may change their investment options and transfer amounts between funds daily. T. Rowe Price (TRP) is the trustee for all investments and keeper of records of all participant accounts. Amounts may be temporarily invested in a cash account prior to investment in the Plan’s investment accounts.

The Capital Preservation Portfolio (CPP) is a fully benefit-responsive contract for the exclusive benefit of the Plan. The CPP invests in Guaranteed Investment Contracts (GICs), Synthetic Guaranteed Investment Contracts (SICs), Separate Account Contracts (SACs) and mutual funds.

All age-based target TRP Retirement Active Trust C accounts were replaced in 2014 with age-based target TRP Retirement Active Trust D accounts, both of which are common commingled trust funds.

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COSTCO 401(k) RETIREMENT PLAN

Notes to Financial Statements

December 31, 2014 and 2013


(g)	Distributions

Upon termination of employment, total disability or death, the vested interest in a participant’s account is payable in a lump sum or for eligible employees commencing February 1, 2014, as a partial or installment distribution. Participants may apply for a distribution of all or a portion of the vested interest at any time after attaining age 59-1/2. Participants are also eligible to make hardship withdrawals from their salary deferral contributions in the event of certain financial hardships. Following a hardship withdrawal, participants are not allowed to contribute to the Plan for a period of six months.

Dividends on the Company’s stock are reinvested in the participant’s Company stock account unless a distribution is requested by the participant in advance of the ex-dividend date. Dividends on the Company’s stock are reported on a gross basis with the dividends paid reported as “Net investment income” and the amounts distributed reported as “Distributions to participants” in the statements of changes in net assets available for benefits.


(h)	Notes Receivable from Participants

A participant may borrow up to the lesser of $50,000 or 45% of the vested account balance, calculated using the participant’s pre-tax contribution, rollover, Company matching and Company discretionary contribution amounts. Only the participant’s pre-tax contribution, rollover, and Company matching amounts may be borrowed against, with a minimum note of $1,000. Notes are payable through payroll deductions over a period ranging up to 180 months. The interest rate is determined by the Plan Administrator based on the Bank of America prime rate on the last day of the calendar year prior to when the note was made, plus 1% for a primary residence loan and 2% for a standard loan. The rates at December 31, 2014 and 2013 ranged from 4.25% to 11.50%, respectively. The notes have various maturity dates through December 2029.

Starting January 1, 2015, participant loans requested and issued cannot borrow against Company matching contributions. Loans may also have an annual maintenance fee charge. This amendment was approved in December 2014.


(i)	Plan Administrator

The Plan is administered by the Benefits Committee of the Company.


(j)	Administrative and Investment Expenses

All investment management and transaction fees are netted against the appreciation and depreciation of invested assets into “Net investment income.” Certain administrative expenses of maintaining the Plan are paid by the Company, except for loan origination fees (paid by the participant requesting the loan) associated with notes receivable from participants.


(2)	Summary of Significant Accounting Policies


(a)	Basis of Accounting

The financial statements of the Plan are prepared under the accrual method of accounting. Investments are reported at fair value (see Note 3). Contract value is the relevant measurement attribute for that portion of the net assets available for benefits of a defined contribution plan attributable to fully benefit-responsive investment contracts because contract value is the amount participants would receive if they were to initiate permitted transactions under the terms of the Plan. As required under U.S. generally accepted accounting principles (U.S. GAAP), the accompanying statements of net assets available for benefits present the fair value of the fully benefit-responsive investment contracts with a corresponding adjustment to reflect these investments at contract value. The statements of changes in net assets available for benefits are prepared on a contract value basis.

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COSTCO 401(k) RETIREMENT PLAN

Notes to Financial Statements

December 31, 2014 and 2013


(b)	Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expense during the reporting period. Actual results could differ from those estimates and assumptions.


(c)	Investment Valuation and Income Recognition

The Plan invests in the Company’s common stock and other exchange-traded equity securities, as well as various registered investment companies and certain benefit-responsive investment contracts that, in turn, invest in a combination of stocks, bonds and other investment securities. Investment securities are exposed to various risks, such as interest rate, credit, and overall market volatility risks. Due to the level of risk associated with certain investment securities, it is possible that changes in the values of investment securities will occur and that those changes could materially affect the amounts reported in the statements of net assets available for benefits.

Registered investment company funds, Company common stock, and other equity securities (held in the separately managed accounts) are stated at fair value based upon quoted market prices.

The CPP is invested in GICs, SICs, and SACs, which are fully benefit-responsive and recorded at contract value. A benefit-responsive investment contract is a contract with a financial institution or an insurance company that provides for a stated return on principal invested over a specified period and that permits withdrawals at contract value for benefit payments, loans, or transfers to other investment options offered to the participant by the Plan. Participant withdrawals are required to be at contract value. The CPP average effective yield and crediting rate was 2.29% and 2.65%, respectively, for the year ended December 31, 2014, and 3.13% and 3.5%, respectively, for the year ended December 31, 2013.

GICs are a form of traditional investment contract and provide for a fixed return on principal invested for a specified period of time. GICs do not permit an insurance company to terminate an agreement prior to the scheduled maturity date.

SICs consist of a portfolio of underlying assets owned by the Plan and wrap contracts issued by an insurance company and a financial institution. The issuers of the wrap contracts provide for unscheduled withdrawals from the contracts at contract value, regardless of the value of the underlying assets, in order to fund routine permitted participant-initiated withdrawals.

SAC and wrap contracts are with an insurance company. The issuer legally owns the assets and is required to segregate them into a separate account, which is designed to be protected from the claims of the issuer’s general creditors in the event of issuer insolvency. The issuer of the wrap contract provides for unscheduled withdrawals from the contract at contract value, regardless of the value of the underlying assets, in order to fund routine permitted participant-initiated withdrawals.

There are no reserves against contract value for credit risk of the contract issuer or otherwise. The crediting interest rate is based on a formula agreed upon with the issuer, but it may not be less than zero. Such interest rates are reviewed on a quarterly basis for resetting. Certain events may limit the ability of the Plan to transact at contract value with the issuer. Events may include, but are not limited to, Plan termination, bankruptcy of the Company, or defunction of the trustee (TRP). A possible consequence of such events may have the benefit-responsive contracts to be terminated and settled at a valued amount different from the contract value. The Plan Administrator believes any events that would limit the Plan’s ability to transact at contract value with participants are not probable.

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COSTCO 401(k) RETIREMENT PLAN

Notes to Financial Statements

December 31, 2014 and 2013

Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date. Net appreciation or depreciation of investments includes the change in the fair value or contract value of assets from one period to the next, plus realized gains and losses.


(d)	Notes Receivable from Participants

Participant loans are classified as notes receivable from participants, which are segregated from Plan investments and measured at their unpaid principal balance plus any accrued but unpaid interest.


(e)	Distribution of Benefits

Distributions of benefits are recorded when paid.


(3)	Fair Value Measurement

U.S. GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated by applying a fair value hierarchy, which requires maximizing the use of observable inputs. The three levels of inputs are:

Level 1: Quoted market prices in active markets for identical assets or liabilities.

Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data.

Level 3: Significant unobservable inputs that are not corroborated by market data.

The following valuation techniques are used to measure fair value:

Level 1 primarily consists of financial instruments, such as investments in registered investment company funds and Costco Common Stock, whose value is based on quoted market prices, such as quoted net asset values published by the fund as supported in an active market, exchange-traded instruments and listed equities.

Level 2 includes assets and liabilities where quoted market prices are unobservable but observable inputs other than Level 1 prices, such as quoted prices for similar assets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Valuation methodologies are based on “consensus pricing,” using market prices from a variety of industry-standard data providers or pricing that considers various assumptions, including time value, yield curve, volatility factors, credit spreads, default rates, loss severity, current market and contractual prices for the underlying instruments or debt, broker and dealer quotes, as well as other relevant economic measures. All are observable in the market or can be derived principally from or corroborated by observable market data, for which the Plan typically receives independent external valuation information.

Level 3 assets include significant unobservable inputs reflecting our own assumptions consistent with reasonably available assumptions made by other market participants. The Plan uses the income approach for certain investments, which involves determining fair values from discounted cash flow methodologies, or replacement cost for Level 3 assets.

Valuation techniques utilized during the reporting period in the fair value measurement of Level 1, Level 2, and Level 3 assets and liabilities presented on the Plan’s statements of net assets available for benefits were not changed from previous practice. The Company reports transfers in and out of Levels 1, 2, and 3, as applicable, using the fair value of the individual securities or funds as of the beginning of the reporting period in which the transfer(s) occurred.

The carrying value of the Plan’s other financial instruments, such as the money market fund and notes receivable, approximate fair value due to their short-term nature or fixed rates relative to prevailing market rates.

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COSTCO 401(k) RETIREMENT PLAN

Notes to Financial Statements

December 31, 2014 and 2013

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following is a description of the valuation methodologies used for assets measured at fair value.

Common stock, Registered investment company funds, and Separately managed accounts: Valued at the closing price reported in the active market in which the individual securities are traded.

Common commingled trust: Valued at the net asset value (NAV) of shares held by the Plan at year end. Plan participant transactions of investment or withdrawals may occur on a daily basis in these trusts. There are no unfunded commitments at December 31, 2014 or 2013.

GIC: Valued by discounting the related cash flows based on current yields of similar investments with comparable durations considering the credit worthiness of the issuer. As of December 31, 2014, the one remaining GIC had a discount interest rate of 0.66% and maturity date in December 2015. As of December 31, 2013, the GICs' discount interest rate ranged from 0.54% to 0.80% with maturities ranging from April 2014 to December 2015.

SIC: Valued at fair value of the underlying assets which include money market funds, mutual and trust funds, U.S. government related securities, corporate bonds and mortgage-backed securities. Money market funds are valued at the closing price reported in the active market in which the individual investments are traded. Fixed income and government related securities are valued using quotes from independent pricing vendors based on recent trading activity and other relevant market information, including market interest rate curves, referenced credit spreads and estimated prepayment and credit default rates where applicable.

SIC wrapper: Valued at rebid or replacement cost based upon fluctuations in the fair value of underlying fixed income securities. As of December 31, 2014, the discount rates used to calculate the SIC wrappers’ fair value ranged from 1.26% to 1.77%. As of December 31, 2013, the discount rates ranged from 1.02% to 1.61%.

SAC: Valued at fair value of the underlying assets legally owned by the contract issuer.

SAC wrapper: Valued at rebid or replacement cost based upon fluctuation in the fair value of the underlying fixed securities. As of December 31, 2014, the discount rate used to calculate the remaining SAC wrapper’s fair value was 1.76%. As of December 31, 2013, the wrappers' discount rate used was 1.64%.

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COSTCO 401(k) RETIREMENT PLAN

Notes to Financial Statements

December 31, 2014 and 2013

The tables below present information about the Plan’s financial assets that are measured at fair value on a recurring basis as of December 31, 2014, and 2013, and indicate the level within the fair value hierarchy of the valuation techniques utilized to determine such fair value.



				Investments at fair value (in thousands)
				Level 1		Level 2		Level 3		Total
December 31, 2014:
	Costco Wholesale Corporation common stock			$	3,481,433	$	—	$	—	$	3,481,433

	Registered investment company funds:
		Equity funds		1,675,962		—		—		1,675,962
		Fixed income securities		361,423		—		—		361,423
		International funds		187,240		—		—		187,240
			Total registered investment company funds	2,224,625		—		—		2,224,625

	Common commingled trust funds			—		2,234,859		—		2,234,859

	Fully benefit-responsive contracts:
		GIC		—		—		6,925		6,925
		SIC:
		Mutual and trust funds		87,886		670,466		—		758,352
		Government related		—		101,542		—		101,542
		Fixed income securities		—		77,165		—		77,165
		SAC		—		215,145		—		215,145
		SIC & SAC contract wrapper		—		—		405		405
			Total fully benefit-responsive contracts	87,886		1,064,318		7,330		1,159,534
	Separately managed accounts:
		International equity portfolio		123,085		—		—		123,085
		Large cap growth portfolio		286,818		—		—		286,818
			Total separately managed accounts	409,903		—		—		409,903
	Money market fund			1,455		—		—		1,455

		Total investments, including money market fund		$	6,205,302	$	3,299,177	$	7,330	$	9,511,809

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COSTCO 401(k) RETIREMENT PLAN

Notes to Financial Statements

December 31, 2014 and 2013



				Investments at fair value (in thousands)
				Level 1		Level 2		Level 3		Total
December 31, 2013:
	Costco Wholesale Corporation common stock			$	2,853,872	$	—	$	—	$	2,853,872

	Registered investment company funds:
		Equity funds		1,465,119		—		—		1,465,119
		Fixed income securities		338,260		—		—		338,260
		International funds		175,521		—		—		175,521
		Balanced funds		18,848		—		—		18,848
			Total registered investment company funds	1,997,748		—		—		1,997,748

	Common commingled trust fund			—		1,835,867		—		1,835,867

	Fully benefit-responsive contracts:
		GIC		—		—		65,063		65,063
		SIC:
		Mutual and trust funds		95,627		553,317		—		648,944
		Government related		—		99,861		—		99,861
		Fixed income securities		—		75,536		—		75,536
		SAC		—		223,444		—		223,444
		SIC & SAC contract wrapper		—		—		391		391
			Total fully benefit-responsive contracts	95,627		952,158		65,454		1,113,239
	Separately managed accounts:
		International equity portfolio		123,460		—		—		123,460
		Large cap growth portfolio		241,586		—		—		241,586
			Total separately managed accounts	365,046		—		—		365,046
	Money market fund			1,015		—		—		1,015

		Total investments, including money market fund		$	5,313,308	$	2,788,025	$	65,454	$	8,166,787

The table below provides a summary of changes in the fair value of the Plan’s Level 3 investments for the year ended December 31, 2014 (in thousands).



Balance, beginning of year	$	65,454
Purchases, issuances, and other	177
Unrealized gain relating to instruments still held at the reporting date	389
Sales and maturities	(58,690		)
Balance, end of year	$	7,330

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COSTCO 401(k) RETIREMENT PLAN

Notes to Financial Statements

December 31, 2014 and 2013


(4)	Investments

Investments that represent 5% or more of the Plan’s net assets available for benefits at December 31, 2014 and 2013 are separately identified (in thousands):



Description of Investment	2014		2013
Costco Wholesale Corporation common stock	$	3,481,433	$	2,853,872
T. Rowe Price Institutional Mid-Cap Equity Growth Fund	811,241		706,644


(5)	Form 5500 Reconciliation

The following is a reconciliation of the net assets available for benefits per the financial statements at December 31, 2014 and 2013 to the Plan’s Form 5500 (in thousands):



	2014		2013
Net assets available for benefits per the financial statements	$	10,176,130	$	8,797,704
Adjustment from contract value to fair value for fully benefit- responsive investment contracts	16,166		16,059
Net assets available for benefits per the Form 5500	$	10,192,296	$	8,813,763

The following is a reconciliation of the net increase in net assets available for benefits per the financial statements at December 31, 2014 and 2013 to the Plan’s Form 5500 (in thousands):



	2014		2013
Net increase in net assets available for benefits per the financial statements	$	1,378,426	$	1,766,860
Net change from contract value to fair value for fully benefit- responsive contracts	107		(30,203		)
Net increase in net assets available for benefits per the Form 5500	$	1,378,533	$	1,736,657


(6)	Plan Termination

Although it has no present intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan, subject to the provisions of ERISA and the requirements of the collective bargaining agreement with the International Brotherhood of Teamsters in California. In the event of plan termination, participants will become 100% vested in their accounts.


(7)	Tax Status

In a determination letter dated September 23, 2013, the Internal Revenue Service (IRS) informed the Company that the Plan is designed in accordance with applicable sections of the IRC. Although the Plan has been amended since receiving the last determination letter, the Plan Administrator believes that the Plan is designed and is being operated in compliance with the applicable requirements of the IRC.

U.S. GAAP requires Plan management to evaluate tax positions taken by the Plan and recognize a tax liability (or asset) if the Plan has taken an uncertain position that more likely than not would not be sustained upon examination by the IRS. The Plan Administrator has analyzed the tax positions taken by the Plan and has concluded that as of December 31, 2014, there are no uncertain positions taken or expected to be taken that would require recognition of a liability (or asset) or disclosure in the financial statements. The Plan is subject to routine audits by taxing jurisdictions; there are currently no audits for any tax periods in progress. The Plan Administrator believes it is no longer subject to income tax examinations for years prior to 2011.

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COSTCO 401(k) RETIREMENT PLAN

Notes to Financial Statements

December 31, 2014 and 2013


(8)	Party-in-Interest and Related Party Transactions

Certain Plan investments are shares of registered investment companies, benefit-responsive investment contracts, and common commingled trust funds managed by T. Rowe Price. T. Rowe Price is also the trustee and record keeper as defined by the Plan. Therefore, these transactions qualify as party-in-interest transactions. The Plan also invests in the Company’s common stock. Therefore, these transactions also qualify as party-in-interest transactions.


(9)	Subsequent Events

On January 29, 2015, the Company declared a special cash dividend on Costco common stock of $5 per share, which was paid on February 27, 2015. Of the $145.4 million special dividend paid to Plan participants, approximately $91.7 million was immediately distributed to the participants and the remaining $53.7 million was reinvested into the participants’ accounts.

The Company evaluated subsequent events and transactions for potential recognition or disclosure in the financial statements through June 15, 2015, the day the financial statements were available to be issued.

Table of Contents

Schedule I

COSTCO 401(k) RETIREMENT PLAN

Schedule H, Line 4i - Schedule of Assets (Held at End of Year)

December 31, 2014

(In thousands)

Identity of issuer, borrower,

lessor, or similar party

Description of investment

Current value

Registered investment company and common commingled trust funds:

American Funds

New Perspective Fund R5

187,240

Davis Funds

New York Venture Fund Class Y

206,858

* T. Rowe Price

Institutional Mid-Cap Equity Growth Fund

811,241

* T. Rowe Price

Small-Cap Stock Fund

329,864

* T. Rowe Price

Spectrum Income Fund

331,603

* T. Rowe Price

Retirement Balanced Active Trust D

20,449

* T. Rowe Price

TRP Ret 2005 Active Trust D

11,738

* T. Rowe Price

TRP Ret 2010 Active Trust D

33,882

* T. Rowe Price

TRP Ret 2015 Active Trust D

102,205

* T. Rowe Price

TRP Ret 2020 Active Trust D

228,320

* T. Rowe Price

TRP Ret 2025 Active Trust D

277,262

* T. Rowe Price

TRP Ret 2030 Active Trust D

298,009

* T. Rowe Price

TRP Ret 2035 Active Trust D

248,916

* T. Rowe Price

TRP Ret 2040 Active Trust D

341,513

* T. Rowe Price

TRP Ret 2045 Active Trust D

371,650

* T. Rowe Price

TRP Ret 2050 Active Trust D

159,618

* T. Rowe Price

TRP Ret 2055 Active Trust D

141,297

Vanguard

Total Bond Market Index Fund Institutional

29,820

Vanguard

Institutional Index, Plus

327,999

Separately managed accounts

International Equity Portfolio:

Federated Gov Obli Fund

Money Market Security

3,297

Aac Technologies H-Unspon

Common Stock

745

Abb Ltd Adr

Common Stock

1,447

Aflac Inc

Common Stock

3,050

Adecco Sa-Reg-Unspon Adr

Common Stock

1,784

Air Liquide Adr

Common Stock

1,501

Allianz Se Adr

Common Stock

2,024

Axa - Spons Adr

Common Stock

2,212

Basf Se - Spon Adr

Common Stock

2,072

BNP Paribas - Adr

Common Stock

1,553

Bancolombia Sa - Spons Adr

Common Stock

2,109

Barclays Plc-Spons Adr

Common Stock

1,686

Bayer Ag

Common Stock

1,283

Bhp Billiton Ltd Adr

Common Stock

1,444

Csl Ltd-Unspon Adr

Common Stock

1,824

Canadian Natural Res

Common Stock

1,870

Carrefour SA-SP Adr

Common Stock

1,850

Coca Cola He-Ads

Common Stock

644

Compass Group Plc Adr

Common Stock

1,609

Continental AG-Spons Adr

Common Stock

1,868

Dassault Systems Sa-Adr

Common Stock

610

Diageo Plc Spons Adr

Common Stock

1,591

Table of Contents

Schedule I

COSTCO 401(k) RETIREMENT PLAN (Continued)

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)

December 31, 2014

(in thousands)

Identity of issuer, borrower,

lessor, or similar party

Description of investment

Current value

Enbridge Inc

Common Stock

1,004

Essilor Intl - Adr

Common Stock

1,667

Fanuc Corp-Unsp Adr

Common Stock

1,207

Fuji Heavy Indus-Unspons

Common Stock

2,357

Gemalto Nv-Sponsored Adr

Common Stock

1,164

Givaudan-Unspon Adr

Common Stock

1,166

Hsbc Holdings Plc

Common Stock

1,658

Henkel Kgaa-Spons Adr Pfd

Common Stock

1,346

Honda Motor Co Ltd-Sp Adr

Common Stock

1,551

Imperial Oil Ltd

Common Stock

2,036

Inditex-Unspon Adr

Common Stock

1,533

Indivior Plc-Spon

Common Stock

Jgc Corp-Unsponsored Adr

Common Stock

1,393

Komatsu Ltd

Common Stock

1,524

Kubota Corp - Spons Adr

Common Stock

1,703

L'Oreal- Unsponsored Adr

Common Stock

1,146

Lvmh Moet Hennessy - Adr

Common Stock

1,354

Magna Inter Class A Adr

Common Stock

2,677

Merck Kgaa - Unspon Adr

Common Stock

1,392

Mettler-Toledo Intl

Common Stock

2,319

Mtn Group Ltd-Spons Adr

Common Stock

1,947

Muenchener Rueck-Unspon A

Common Stock

2,605

Nestle Sa-Spons Adr

Common Stock

1,254

Nitto Denko Corp

Common Stock

1,376

Novartis Ag Adr

Common Stock

1,354

Novo-Nordisk A/S-Sp Adr

Common Stock

1,308

Philip Morris Intl.

Common Stock

1,759

Prudential PLC

Common Stock

2,204

Reckitt Benckiser-Spon Ad

Common Stock

2,383

Roche Hldgs Ltd - Adr

Common Stock

1,937

Royal Dutch Shell Plc Adr

Common Stock

1,662

Ryanair Hlds Plccadr

Common Stock

1,580

SKF AB

Common Stock

691

Sabmiller Plc Adr

Common Stock

1,316

Sandvik Ab

Common Stock

1,404

Sap Ab-Sponsored Adr

Common Stock

1,635

Siemens Ag

Common Stock

1,953

Singapore Telecommunicat

Common Stock

1,641

Smith & Nephew Plc

Common Stock

1,324

Svenska Cellulosa Ab

Common Stock

1,431

Syngenta Ag - Adr

Common Stock

1,690

Taiwan Semiconductor Adr

Common Stock

2,139

Technip Sa Adr

Common Stock

1,240

Tokyo Electron Ltd-Unsp A

Common Stock

976

Turkiye Garanti Bankasi

Common Stock

2,222

United Overseas Bank Adr

Common Stock

1,860

Table of Contents

Schedule I

COSTCO 401(k) RETIREMENT PLAN (Continued)

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)

December 31, 2014

(in thousands)

Identity of issuer, borrower,

lessor, or similar party

Description of investment

Current value

Volkswagen Ag-Spons Adr P

Common Stock

1,901

Wal-Mart De Mexico Sa De

Common Stock

1,754

Woodside Petroleum Sp Adr

Common Stock

2,485

WPP Plc-sponsored Adr

Common Stock

1,996

Credicorp LTD

Common Stock

2,356

NXP Semiconductors Nv

Common Stock

1,367

Large Cap Growth Portfolio:

Alexion Pharmaceuticals

Common Stock

8,187

Alibaba Group Holdings -Sp

Common Stock

8,546

Amazon.com Inc

Common Stock

10,841

ARM Holdings PLC-Spons Ad

Common Stock

7,852

Baidu Ince - Spon Adr

Common Stock

10,173

Biogen Idec, Inc

Common Stock

10,480

Bristol-Myers Squibb Co

Common Stock

9,590

Cabot Oil & Gas

Common Stock

10,616

Celgene Corp

Common Stock

11,264

Cognizant Tech Solutions

Common Stock

8,858

Fmc Technologies Inc

Common Stock

6,033

Facebook Inc-A

Common Stock

9,470

Fastenal Company

Common Stock

9,668

Illumia Inc

Common Stock

12,334

LinkedIn Corp- A

Common Stock

12,310

Mercadolibre Inc

Common Stock

7,849

Monsanto Company

Common Stock

8,703

Nike Inc -CL B

Common Stock

8,464

Pharmacyclics Inc

Common Stock

10,735

Precision Castparts Corp

Common Stock

6,662

Priceline.Com Inc

Common Stock

13,642

Salesforce Com Inc

Common Stock

9,828

Splunk Inc

Common Stock

8,627

Tesla Motors Inc

Common Stock

6,628

Tractor Supply Company

Common Stock

8,757

Twitter Inc

Common Stock

9,486

Vertex Pharmaceuticals In

Common Stock

11,637

Visa Inc - Class A Shares

Common Stock

12,129

VMware Inc - Class A

Common Stock

8,034

Michael Kors Hlds Ltd

Common Stock

8,567

Dreyfus Treasury & Agency

Money Market

848

Fully benefit-responsive contracts

Capital Preservation Portfolio:

T Rowe Price Reserve Inv Fund

Mutual and Trust Fund

87,886

T Rowe Price Short Term Common

Bank of Tokyo-Mitsubishi UFJ Trust

Mutual and Trust Fund

25,936

Prudential Building Block Trust

Mutual and Trust Fund

52,210

State Street Building Block Trust

Mutual and Trust Fund

37,550

Table of Contents

Schedule I

COSTCO 401(k) RETIREMENT PLAN (Continued)

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)

December 31, 2014

(in thousands)

Identity of issuer, borrower,

lessor, or similar party

Description of investment

Current value

Pacific Life Building Block Trust

Mutual and Trust Fund

37,529

T Rowe Price Short-Int Term Common

Transamerica Building Block Trust

Mutual and Trust Fund

137,530

T Rowe Price Int Term Common

Bank of Tokyo-Mitsubishi UFJ Trust

Mutual and Trust Fund

52,428

Prudential Building Block Trust

Mutual and Trust Fund

65,730

State Street Building Block Trust

Mutual and Trust Fund

73,757

Pacific Life Building Block Trust

Mutual and Trust Fund

75,839

T Rowe Price Managed Bond

Bank of Tokyo-Mitsubishi UFJ Trust

Mutual and Trust Fund

8,916

Prudential Building Block Trust

Mutual and Trust Fund

11,264

State Street Building Block Trust

Mutual and Trust Fund

41,198

Pacific Life Building Block Trust

Mutual and Trust Fund

50,579

New York Life 2.60%

Guaranteed Investment Contract

6,925

Metropolitan Life

Separate Account Contracts

215,145

Royal Bank of Canada:

Collective US Govt Stif 5 Bps

Fixed Income

558

Abbey Natl Treasury Serv

Fixed Income

772

American Express Co

Fixed Income

633

Anz National (Intl) Ltd 144A

Fixed Income

461

Aust & NZ Banking Grp Ny

Fixed Income

323

Bank Of America Na

Fixed Income

792

Bank Of New York Mellon

Fixed Income

373

Banque Fed Cred Mutuel 144A

Fixed Income

701

Bb&T Corporation

Fixed Income

474

BK Tokyo-Mitsubishi Ufj 144A

Fixed Income

858

BNP Paribas

Fixed Income

818

Canadian Imperial Bank

Fixed Income

693

Capital One Financial Co

Fixed Income

Capital One Financial Co

Fixed Income

702

Citigroup Inc

Fixed Income

717

Commonwealth Bank Aust

Fixed Income

1,087

Credit Suisse New York

Fixed Income

618

Dnb Bank Asa 144A

Fixed Income

799

Fifth Third Bancorp

Fixed Income

318

Goldman Sachs Group Inc

Fixed Income

826

Goldman Sachs Group Inc

Fixed Income

123

HSBC Bank Plc 144A

Fixed Income

227

HSBC USA Inc

Fixed Income

500

JPMorgan Chase

Fixed Income

429

JPMorgan Chase & Co

Fixed Income

152

JPMorgan Chase & Co

Fixed Income

570

Key Bank NA

Fixed Income

Keycorp

Fixed Income

372

Macquarie Bank Ltd 144A

Fixed Income

761

Manuf & Traders Trust Co

Fixed Income

795

Table of Contents

Schedule I

COSTCO 401(k) RETIREMENT PLAN (Continued)

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)

December 31, 2014

(in thousands)

Identity of issuer, borrower,

lessor, or similar party

Description of investment

Current value

Mizuho Bank Ltd 144A

Fixed Income

667

Morgan Stanley

Fixed Income

139

Morgan Stanley

Fixed Income

132

Morgan Stanley

Fixed Income

152

Morgan Stanley

Fixed Income

572

Morgan Stanley

Fixed Income

National Bank Of Canada

Fixed Income

870

Nordea Bank Ab 144A

Fixed Income

220

Nordea Bank Ab 144A

Fixed Income

849

PNC Funding Corp

Fixed Income

Royal Bank Of Canada

Fixed Income

186

Royal Bank Of Canada

Fixed Income

547

State Street Corp

Fixed Income

586

Suntrust Banks Inc

Fixed Income

668

Svenska Handelsbanken Ab

Fixed Income

701

Swedbank Ab 144A

Fixed Income

863

Toronto-Dominion Bank

Fixed Income

322

Toronto-Dominion Bank

Fixed Income

461

US Bancorp

Fixed Income

254

US Bancorp

Fixed Income

248

US Bancorp

Fixed Income

129

Wells Fargo & Company

Fixed Income

Wells Fargo & Company

Fixed Income

559

Westpac Banking Corp

Fixed Income

869

BHP Billiton Fin USA Ltd

Fixed Income

298

Dow Chemical Co

Fixed Income

123

Dow Chemical Co

Fixed Income

504

Eastman Chemical Co

Fixed Income

627

Goldcorp Inc

Fixed Income

574

Rio Tinto Fin USA Plc

Fixed Income

652

Sherwin-Williams Co

Fixed Income

625

Vale Overseas

Fixed Income

104

Vale Overseas Limited

Fixed Income

114

Franklin Resources Inc

Fixed Income

620

Caterpillar Financial Se

Fixed Income

134

Caterpillar Financial Se

Fixed Income

325

Caterpillar Fin Serv

Fixed Income

123

Caterpillar Fin Serv Crp

Fixed Income

164

Danaher Corp

Fixed Income

104

Eaton Corp

Fixed Income

699

Emerson Electric Co

Fixed Income

Emerson Electric Co

Fixed Income

John Deere Capital Corp

Fixed Income

231

John Deere Capital Corp

Fixed Income

597

At&T Inc

Fixed Income

123

British Telecom Plc

Fixed Income

679

Table of Contents

Schedule I

COSTCO 401(k) RETIREMENT PLAN (Continued)

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)

December 31, 2014

(in thousands)

Identity of issuer, borrower,

lessor, or similar party

Description of investment

Current value

Cc Holdings Gs V LLC/Cro

Fixed Income

379

Crown Castle Towers LLC 144A

Fixed Income

234

DirecTV Hldg/Fin Inc

Fixed Income

DirecTV Holdings/Fing

Fixed Income

211

DirecTV Holdings/Fing

Fixed Income

GTP Acquisition Partners 144A

Fixed Income

143

NBCUniversal Enterprise 144A

Fixed Income

738

Omnicom Group Inc

Fixed Income

263

SBA Tower Trust 144A

Fixed Income

420

SBA Tower Trust 144A

Fixed Income

227

Thomson Reuters Corp

Fixed Income

214

Thomson Reuters Corp

Fixed Income

180

Verizon Communications

Fixed Income

904

Walt Disney Company

Fixed Income

198

American Honda Finance 144A

Fixed Income

1,003

Autozone Inc

Fixed Income

225

CVS Caremark Corp

Fixed Income

272

Daimler Finance Na LLC 144A

Fixed Income

833

Ford Motor Credit Co LLC

Fixed Income

200

Ford Motor Credit Co LLC

Fixed Income

141

Harley Davidson Finl Ser 144A

Fixed Income

Harley Davidson Finl Serv 144A

Fixed Income

293

Hyundai Capital America 144A

Fixed Income

122

Nissan Motor Acceptance 144A

Fixed Income

Paccar Financial Corp

Fixed Income

309

Paccar Financial Corp

Fixed Income

250

Toyota Motor Credit Corp

Fixed Income

297

Toyota Motor Credit Corp

Fixed Income

366

Toyota Motor Credit Corp

Fixed Income

Volkswagen Intl Fin Nv 144A

Fixed Income

327

Volkswagen Intl Fin Nv 144A

Fixed Income

272

Walgreens Boots Alliance

Fixed Income

136

Wal-Mart Stores

Fixed Income

232

Wesfarmers Ltd 144A

Fixed Income

273

Abbvie Inc

Fixed Income

693

Altria Group Inc

Fixed Income

Altria Group Inc

Fixed Income

116

Anheuser-Busch Inbev Wor

Fixed Income

105

Baxter International Inc

Fixed Income

393

Bayer US Finance LLC 144A

Fixed Income

425

Catholic Health Initiati

Fixed Income

Celgene Corp

Fixed Income

132

Coca Cola Co

Fixed Income

145

Coca-Cola Co

Fixed Income

Express Scripts Holding

Fixed Income

316

Express Scripts Inc

Fixed Income

340

Table of Contents

Schedule I

COSTCO 401(k) RETIREMENT PLAN (Continued)

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)

December 31, 2014

(in thousands)

Identity of issuer, borrower,

lessor, or similar party

Description of investment

Current value

General Mills Inc

Fixed Income

Gilead Sciences Inc

Fixed Income

223

Glaxosmithkline Capital

Fixed Income

186

Heineken Nv 144A

Fixed Income

Hershey Co

Fixed Income

157

Kraft Foods Group Inc

Fixed Income

136

Kroger Co

Fixed Income

184

Kroger Co/The

Fixed Income

111

McKesson Corp

Fixed Income

516

McKesson Corp

Fixed Income

McKesson Corp

Fixed Income

Medtronic Inc 144A

Fixed Income

120

Sanofi

Fixed Income

511

Stryker Corp

Fixed Income

163

Thermo Fisher Scientific

Fixed Income

286

Thermo Fisher Scientific

Fixed Income

315

Whirlpool Corp

Fixed Income

Whirlpool Corp

Fixed Income

145

Wrigley Wm Jr Co 144A

Fixed Income

743

Commonwealth Edison

Fixed Income

Dominion Resources Inc

Fixed Income

Dominion Resources Inc

Fixed Income

143

Dominion Resources Inc

Fixed Income

500

Duke Energy Carolinas

Fixed Income

182

Duke Energy Corp

Fixed Income

191

Georgia Power Company

Fixed Income

Kentucky Utilities

Fixed Income

LG&E & Ku Energy LLC

Fixed Income

Midamerican Energy Hldgs

Fixed Income

874

Nevada Power Co

Fixed Income

104

Nevada Power Co

Fixed Income

Nextera Energy Capital

Fixed Income

Pacificorp

Fixed Income

155

Peco Energy Co

Fixed Income

PPL WEM Holdings PLC 144A

Fixed Income

Pseg Power LLC

Fixed Income

495

Southern Co

Fixed Income

409

Teco Finance Inc

Fixed Income

188

Wisc Elec Power

Fixed Income

647

Xcel Energy Inc

Fixed Income

475

BG Energy Capital Plc 144A

Fixed Income

127

BG Energy Capital Plc 144A

Fixed Income

547

Canadian Natl Resources

Fixed Income

Canadian Natl Resources

Fixed Income

207

Chevron Corp

Fixed Income

211

ConocoPhillips Company

Fixed Income

711

Table of Contents

Schedule I

COSTCO 401(k) RETIREMENT PLAN (Continued)

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)

December 31, 2014

(in thousands)

Identity of issuer, borrower,

lessor, or similar party

Description of investment

Current value

DCP Midstream Operating

Fixed Income

Diamond Offshore Drill

Fixed Income

Diamond Offshore Drill

Fixed Income

Enbridge Energy Partners

Fixed Income

Enbridge Inc

Fixed Income

286

Ensco PLC

Fixed Income

279

Ensco PLC

Fixed Income

179

Enterprise Products Oper

Fixed Income

EOG Resources Inc

Fixed Income

EOG Resources Inc

Fixed Income

136

EOG Resources Inc

Fixed Income

186

Florida Gas Transmission 144A

Fixed Income

191

Magellan Midstream Partn

Fixed Income

Magellan Midstream Partners

Fixed Income

Marathon Oil Corp

Fixed Income

209

Murphy Oil Corp

Fixed Income

677

Nisource Finance Corp

Fixed Income

179

ONEOK Partners LP

Fixed Income

ONEOK Partners LP

Fixed Income

600

Phillips 66

Fixed Income

120

Schlumberger Sa 144A

Fixed Income

180

Shell Intl Fin

Fixed Income

556

Total Capital Intl Sa

Fixed Income

Total Capital Intl Sa

Fixed Income

Total Capital Intl Sa

Fixed Income

375

Trans-Canada Pipelines

Fixed Income

136

Trans-Canada Pipelines

Fixed Income

561

Williams Partners LP

Fixed Income

152

Williams Partners LP

Fixed Income

Williams Partners LP

Fixed Income

102

Gatx Corp

Fixed Income

141

Gatx Corp

Fixed Income

Gatx Corp

Fixed Income

Gatx Corp

Fixed Income

154

General Elec Cap Corp

Fixed Income

General Elec Cap Corp

Fixed Income

136

General Elec Cap Corp

Fixed Income

191

General Elec Cap Corp

Fixed Income

136

General Elec Cap Corp

Fixed Income

1,278

Princeton University

Fixed Income

Ace Ina Holdings

Fixed Income

Ace Ina Holdings

Fixed Income

173

Aetna Inc

Fixed Income

708

Met Life Glob Funding I 144A

Fixed Income

567

Pricoa Global Funding 144A

Fixed Income

400

Principal Financial Grou

Fixed Income

Table of Contents

Schedule I

COSTCO 401(k) RETIREMENT PLAN (Continued)

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)

December 31, 2014

(in thousands)

Identity of issuer, borrower,

lessor, or similar party

Description of investment

Current value

Principal Lfe Glb Fnd Ii 144A

Fixed Income

327

Reinsurance Grp Of Amer

Fixed Income

143

Travelers Cos Inc

Fixed Income

UnitedHealth Group Inc

Fixed Income

113

UnitedHealth Group Inc

Fixed Income

595

UnitedHealth Group Inc

Fixed Income

Unum Group

Fixed Income

Unumprovident Finance Co 144A

Fixed Income

Wellpoint Inc

Fixed Income

549

AGL Capital Corp

Fixed Income

102

Atmos Energy Corp

Fixed Income

Sempra Energy

Fixed Income

350

Avalonbay Communities

Fixed Income

150

Boston Properties LP

Fixed Income

122

Camden Property Trust

Fixed Income

136

ERP Operating LP

Fixed Income

Kilroy Realty LP

Fixed Income

147

Simon Property Group LP

Fixed Income

170

Simon Property Group LP

Fixed Income

313

Ventas Realty LP/Cap Crp

Fixed Income

413

Ventas Realty LP/Cap Crp

Fixed Income

318

WEA Finance LLC/Westfiel 144A

Fixed Income

525

Amphenol Corp

Fixed Income

130

Apple Inc

Fixed Income

985

Fiserv Inc

Fixed Income

298

Fiserv Inc

Fixed Income

Google Inc

Fixed Income

148

IBM Corp

Fixed Income

979

Microsoft Corp

Fixed Income

182

Oracle Corp

Fixed Income

799

BNSF Railway Co 2007-1 P

Fixed Income

Burlington North Santa Fe

Fixed Income

Continental Airlines Inc

Fixed Income

Contl Airlines 2012-1

Fixed Income

114

Delta Air Lines

Fixed Income

Delta Air Lines 2011-1

Fixed Income

ERAC USA Finance Company 144A

Fixed Income

198

ERAC USA Finance Company 144A

Fixed Income

ERAC USA Finance LLC 144A

Fixed Income

United Parcel Service

Fixed Income

250

KFW

Government Related

375

British Columbia

Government Related

522

Hydro Quebec

Government Related

336

Manitoba

Government Related

695

Manitoba (Province Of)

Government Related

138

Ontario

Government Related

223

Table of Contents

Schedule I

COSTCO 401(k) RETIREMENT PLAN (Continued)

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)

December 31, 2014

(in thousands)

Identity of issuer, borrower,

lessor, or similar party

Description of investment

Current value

Ontario

Government Related

182

Quebec Province

Government Related

372

Fannie Mae

Government Related

250

Fannie Mae

Government Related

1,029

Fannie Mae

Government Related

293

Fannie Mae

Government Related

731

Fannie Mae

Government Related

338

Fannie Mae

Government Related

2,654

FNMA

Government Related

683

Freddie Mac

Government Related

475

Freddie Mac

Government Related

974

Freddie Mac

Government Related

2,186

Canada

Government Related

136

Asian Development Bank

Government Related

Asian Development Bank

Government Related

227

Intl Finance Corp

Government Related

CNH 2011-B A4

Government Related

540

CNH 2012-A A3

Government Related

CNH 2012-A A4

Government Related

191

CNH 2012-C A3

Government Related

CNH 2013-A A4

Government Related

CNH 2013-B A4

Government Related

486

CNH 2014-A A3

Government Related

184

CNH 2014-C A4

Government Related

332

GEDFT 2013-1 A

Government Related

225

GEDFT 2014-2 A

Government Related

361

GEEMT 2013-1 A3

Government Related

166

GEET 2014-1 A3

Government Related

JDOT 2012-A A4

Government Related

145

JDOT 2013-A A3

Government Related

320

JDOT 2013-B A4

Government Related

876

JDOT 2014-A A3

Government Related

470

MMAF 2009-AA A4 144A

Government Related

FHMS 5502 A2

Government Related

277

FHLMC 15YR GOLD

Government Related

FHLMC 15YR GOLD

Government Related

FHLMC 15YR GOLD

Government Related

FHLMC 15YR GOLD

Government Related

FHLMC GOLD

Government Related

FHLMC GOLD

Government Related

163

FHLMC GOLD

Government Related

FHLMC GOLD

Government Related

FHLMC GOLD

Government Related

FNMA 15YR

Government Related

FNMA 15YR

Government Related

FNMA 15YR

Government Related

Table of Contents

Schedule I

COSTCO 401(k) RETIREMENT PLAN (Continued)

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)

December 31, 2014

(in thousands)

Identity of issuer, borrower,

lessor, or similar party

Description of investment

Current value

FNMA 15YR

Government Related

FNMA 15YR

Government Related

FNMA 15YR

Government Related

FNMA 15YR

Government Related

FNMA 15YR

Government Related

123

FNMA 15YR

Government Related

FNMA 15YR

Government Related

148

FNMA 15YR

Government Related

102

FNMA 15YR

Government Related

FNMA 15YR

Government Related

FNMA 15YR

Government Related

FNMA 15YR

Government Related

FNMA 15YR

Government Related

FNMA 15YR

Government Related

FNMA 15YR

Government Related

FNMA 15YR

Government Related

204

FNMA 15YR

Government Related

FNMA 15YR

Government Related

111

FNMA 15YR

Government Related

FNMA 15YR

Government Related

FNMA 15YR

Government Related

FNMA 15YR

Government Related

118

FNMA 30 YR

Government Related

FNMA 30 YR

Government Related

FNMA 30 YR

Government Related

295

FNMA 30 YR

Government Related

120

FNMA 30 YR

Government Related

FNMA 30 YR

Government Related

FNMA 30 YR

Government Related

125

FNMA 30 YR

Government Related

105

FNMA 30 YR

Government Related

FNMA 30 YR

Government Related

FNMA 30 YR

Government Related

FNMA 30 YR

Government Related

FNMA 30 YR

Government Related

166

FNMA 30 YR

Government Related

FNMA 30 YR

Government Related

FNMA 30 YR

Government Related

FNMA MEGA

Government Related

FHLMC ARM

Government Related

FHLMC ARM

Government Related

FHLMC ARM

Government Related

FHLMC ARM

Government Related

FHLMC ARM

Government Related

FNMA ARM

Government Related

FNMA ARM

Government Related

Table of Contents

Schedule I

COSTCO 401(k) RETIREMENT PLAN (Continued)

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)

December 31, 2014

(in thousands)

Identity of issuer, borrower,

lessor, or similar party

Description of investment

Current value

FNMA ARM

Government Related

FNMA ARM

Government Related

AFIN 2013-1 A3

Government Related

AFIN 2013-1 A4

Government Related

740

AFIN 2013-2 A3

Government Related

366

AFIN 2014-3 A3

Government Related

250

ALLYA 2012-1 A4

Government Related

ALLYL 2013-SN1 A4

Government Related

345

ALLYL 2014-SN1 A3

Government Related

145

AMCAR 2012-3 A3

Government Related

AMCAR 2012-5 A3

Government Related

AMCAR 2013-2 A3

Government Related

895

AMCAR 2013-3 A3

Government Related

441

AMCAR 2013-4 A3

Government Related

120

AMCAR 2014-2 A3

Government Related

195

AMOT 2012-5 A

Government Related

129

BAAT 2012-1 A4

Government Related

155

BMWLT 2013-1 A3

Government Related

BMWOT 2011-A A4

Government Related

BMWOT 2014-A A4

Government Related

100

CARMX 2011-2 A4

Government Related

123

CARMX 2012-1 A4

Government Related

CARMX 2012-2 A3

Government Related

CARMX 2012-3 A3

Government Related

CARMX 2012-3 A4

Government Related

524

CARMX 2013-1 A3

Government Related

CARMX 2013-2 A3

Government Related

815

CARMX 2014-3 A3

Government Related

524

FORDF 2010-3 A1 144A

Government Related

155

FORDF 2013-3 A1

Government Related

575

FORDL 2012-B A4

Government Related

FORDL 2013-A A4

Government Related

FORDL 2013-B A3

Government Related

100

FORDL 2014-B A4

Government Related

141

FORDO 2014-B A4

Government Related

100

HAROT 2011-3 A4

Government Related

161

HAROT 2012-1 A3

Government Related

HAROT 2013-2 A4

Government Related

290

HAROT 2013-3 A4

Government Related

422

HART 2011-B A4

Government Related

HART 2012-C A4

Government Related

HART 2013-A A4

Government Related

130

HART 2013-B A4

Government Related

650

HART 2013-C A3

Government Related

356

HART 2014-A A4

Government Related

384

HUNT 2012-1 A4

Government Related

236

Table of Contents

Schedule I

COSTCO 401(k) RETIREMENT PLAN (Continued)

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)

December 31, 2014

(in thousands)

Identity of issuer, borrower,

lessor, or similar party

Description of investment

Current value

MBALT 2013-A A4

Government Related

175

NAROT 2012-A A3

Government Related

NAROT 2012-B A3

Government Related

NAROT 2013-A A4

Government Related

534

NAROT 2013-C A3

Government Related

275

NMOTR 2012-A A

Government Related

336

TAOT 2011-B A4

Government Related

TAOT 2012-A A3

Government Related

TAOT 2012-A A4

Government Related

141

TAOT 2013-A A4

Government Related

100

TAOT 2013-B A4

Government Related

747

TAOT 2014-C A4

Government Related

VALET 2012-1 A3

Government Related

VALET 2013-1 A3

Government Related

VALET 2014-2 A4

Government Related

475

VWALT 2013-A A3

Government Related

491

VWALT 2014-A A4

Government Related

134

WOART 2012-A A3

Government Related

WOART 2012-A A4

Government Related

125

WOART 2013-A A4

Government Related

418

WOLS 2012-A A4

Government Related

WOLS 2014-A A4

Government Related

145

FHR 3913 FA

Government Related

FHR 4077 MF

Government Related

125

FNR 2006-4 PB

Government Related

FNR 2012-79 FM

Government Related

GNR 2004-47 QV

Government Related

GNR 2012-84 FH

Government Related

AMXCA 2014-2 A

Government Related

309

AMXCA 2014-3 A

Government Related

145

BACCT 2007 A1 A1

Government Related

406

CABMT 2014-1 A

Government Related

139

CCCIT 2013-A3 A3

Government Related

881

CCCIT 2013-A6 A6

Government Related

879

CCCIT 2014-A2 A2

Government Related

515

CCCIT 2014-A4 A4

Government Related

356

CHAIT 2013-A8 A8

Government Related

370

DCENT 2012-A3 A

Government Related

216

DCENT 2014-A3 A3

Government Related

350

DCENT 2014-A5 A

Government Related

479

DROCK 2013-1 A

Government Related

225

GEMNT 2010-2 A

Government Related

148

GEMNT 2011-2 A

Government Related

100

GEMNT 2012-2 A

Government Related

145

SYNCT 2014-1 A

Government Related

499

WFNMT 2010-A A

Government Related

835

Table of Contents

Schedule I

COSTCO 401(k) RETIREMENT PLAN (Continued)

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)

December 31, 2014

(in thousands)

Identity of issuer, borrower,

lessor, or similar party

Description of investment

Current value

BACM06-1 A4

Government Related

134

BACM 2006-2 A4

Government Related

BACM 2006-4 A4

Government Related

102

BSCMS 2005-PWR7 A3

Government Related

182

BSCMS 2005-PWR8 A4

Government Related

359

BSCMS 2006 PW12 A4

Government Related

315

BSCMS 2006-PW14 A4

Government Related

BSCMS 2007-T28 AAB

Government Related

CGCMT 2014-GC19 A1

Government Related

114

COMM 2006-C8 A4

Government Related

254

COMM 2012-CR3 A3

Government Related

COMM 2014-CR19 A1

Government Related

200

COMM 2014-CR20 A1

Government Related

107

COMM 2014-CR21 A1

Government Related

COMM 2014-LC17 A1

Government Related

COMM 2014-UBS4 A1

Government Related

COMM 2014-UBS6 A1

Government Related

175

CSMC 2006-C1 A4

Government Related

CSMC 2006 C4 A3

Government Related

136

DBUBS 2011-LC3A A2

Government Related

109

GSMS 2006-GG6 A4

Government Related

109

GSMS 2012-GC6 A2

Government Related

GSMS 2013-GC13 A1

Government Related

214

JPMBB 2013-C12 A1

Government Related

JPMBB 2013-C14 A1

Government Related

334

JPMBB 2014-C21 A1

Government Related

JPMBB 2014-C22 A1

Government Related

120

JPMBB 2014-C23 A1

Government Related

JPMCC 2005 LDP5 A4

Government Related

202

JPMCC 2006-CB14 A4

Government Related

143

JPMCC 2006-LDP7 A4

Government Related

195

JPMCC 2007-CB20 A4

Government Related

256

JPMCC 2007-LD12 A4

Government Related

136

JPMCC 2012-C8 A3

Government Related

JPMCC 2013-C13 A1

Government Related

206

LBUBS 2005-C5 A4

Government Related

145

LBUBS 2006-C1 A4

Government Related

436

LBUBS 2006-C6 A4

Government Related

248

MLCFC 2006-2 A4

Government Related

MLMT 2008-C1 A4

Government Related

109

MSBAM 2013-C11 A1

Government Related

475

MSBAM 2014-C14 A1

Government Related

MSBAM 2014-C16 A1

Government Related

MSC 2006-HQ9 A4

Government Related

MSC 2007-T27 A4

Government Related

241

WBCMT 2005-C20 A7

Government Related

179

Table of Contents

Schedule I

COSTCO 401(k) RETIREMENT PLAN (Continued)

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)

December 31, 2014

(in thousands)

Identity of issuer, borrower,

lessor, or similar party

Description of investment

Current value

WFRBS 2013-C16 A1

Government Related

105

WFRBS 2013-C17 A1

Government Related

139

WFRBS 2014-C19 A1

Government Related

365

WFRBS 2014-C23 A1

Government Related

WFRBS 2014-C24 A1

Government Related

WFRBS 2014-LC14 A1

Government Related

TIPS

Government Related

2,581

TIPS

Government Related

168

TIPS

Government Related

3,979

US TREASURY N/B

Government Related

10,387

US TREASURY N/B

Government Related

18,797

US TREASURY N/B

Government Related

14,179

Uninvested Cash

Cash

Metropolitan Life Insurance Company

Wrap

230

Monumental Life Insurance Company

Wrap

State Street Bank & Trust Company

Wrap

107

Costco Wholesale Corporation*

Common stock

3,481,433

Total investments

9,510,354

Notes receivable from participants

Interest rates of 4.25% to 11.50% maturing through December 2029

419,432

Money market fund

1,455

Total

9,931,241

_________________________

* Indicates a party-in-interest

See accompanying report of independent registered public accounting firm.

Table of Contents

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.



		COSTCO 401(k) RETIREMENT PLAN

June 15, 2015	By	/s/ PAT CALLANS
Date		Pat Callans Senior Vice President Costco Wholesale Corporation