<SEC-DOCUMENT>0000909832-25-000025.txt : 20250813
<SEC-HEADER>0000909832-25-000025.hdr.sgml : 20250813
<ACCEPTANCE-DATETIME>20250421170857
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000909832-25-000025
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20250421

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			COSTCO WHOLESALE CORP /NEW
		CENTRAL INDEX KEY:			0000909832
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-VARIETY STORES [5331]
		ORGANIZATION NAME:           	07 Trade & Services
		EIN:				911223280
		STATE OF INCORPORATION:			WA
		FISCAL YEAR END:			0831

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		999 LAKE DRIVE
		CITY:			ISSAQUAH
		STATE:			WA
		ZIP:			98027-
		BUSINESS PHONE:		4253138100

	MAIL ADDRESS:	
		STREET 1:		999 LAKE DRIVE
		CITY:			ISSAQUAH
		STATE:			WA
		ZIP:			98027

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	COSTCO COMPANIES INC
		DATE OF NAME CHANGE:	19970401

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PRICE/COSTCO INC
		DATE OF NAME CHANGE:	19930728
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
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<title>Document</title></head><body><div id="i77612f3789f84fbea11cc095b00c1c9c_1"></div><div style="min-height:72pt;width:100%"><div><font><br></font></div></div><div style="text-align:right"><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%">Writer&#8217;s Direct Number&#58; (425) 313-2060</font></div><div style="text-align:right"><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%">Fax&#58;  (425) 313-6800</font></div><div><font><br></font></div><div style="text-align:center"><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:700;line-height:133%">FOIA CONFIDENTIAL TREATMENT REQUESTED</font></div><div><font><br></font></div><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%">April 21, 2025</font></div><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%"> </font></div><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%;text-decoration:underline">BY EDGAR</font></div><div><font><br></font></div><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%">Patrick Kuhn and Lyn Shenk</font></div><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%">Division of Corporation Finance</font></div><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%">Office of Trade &#38; Services</font></div><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%">Securities and Exchange Commission</font></div><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%">100 F Street N.E.</font></div><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%">Washington, D.C. 20549</font></div><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%"> </font></div><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%">Re&#58; Costco Wholesale Corporation -- Form 10-K for the Fiscal Year Ended September 1, 2024, filed October 8, 2024 -- File No. 000-20355</font></div><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%"> </font></div><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%">Dear Mr. Kuhn and Mr. Shenk&#58;</font></div><div><font><br></font></div><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%">In response to your letter of March 19, 2025 (the &#8220;Letter&#8221;), please see the discussion below, which corresponds to the paragraph in your letter.</font></div><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%"> </font></div><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%;text-decoration:underline">Form 10-K for the Fiscal Year Ended September 1, 2024</font></div><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%;text-decoration:underline">Business</font></div><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%;text-decoration:underline">Membership, page 6</font></div><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%"> </font></div><div style="padding-left:36pt;text-indent:-18pt"><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-style:italic;font-weight:400;line-height:133%">1.</font><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-style:italic;font-weight:400;line-height:133%;padding-left:8.84pt">You disclose your membership renewal rate is a trailing calculation that captures renewals during the period seven to eighteen months prior to the reporting date. Please further describe your renewal rate calculation to us, including why you use this time  period.</font></div><div><font><br></font></div><div style="padding-left:18pt"><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%">Response&#58;</font></div><div style="padding-left:18pt"><font><br></font></div><div style="padding-left:18pt"><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%">We received a Comment Letter dated January 22, 2014, concerning our Form 10-K for the fiscal year ended September 1, 2013, filed October 16, 2013, with a similar question regarding our membership renewal rate calculation. The following response is consistent with the response to that letter (dated February 4th, 2014), as to which the staff had no follow up.  Our subsequent disclosures for the past decade have been consistent, and renewal patterns were comparable during that period.</font></div><div style="padding-left:18pt"><font><br></font></div><div style="padding-left:18pt"><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%">Historical data show that most members renew prior to expiration&#59; the vast majority of those who renew late do so within six months of expiration. As such, measuring renewals only at </font></div><div style="height:72pt;position:relative;width:100%"><div style="bottom:0;position:absolute;width:100%"><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:9pt;font-weight:400;line-height:133%">Confidential Treatment Requested by Costco Wholesale Corporation</font></div><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:9pt;font-weight:400;line-height:133%">C-001</font></div><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:9pt;font-weight:400;line-height:133%">&#91;*&#93; - Information omitted and provided under separate cover to the Staff pursuant to Rule 83 (17 C.F.R. &#167; 200.83)</font></div></div></div><hr style="page-break-after:always"><div style="min-height:72pt;width:100%"><div><font><br></font></div></div><div style="padding-left:18pt"><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%">the point of expiration would not provide investors an accurate picture of our renewal activity. Memberships that have an expiration date in the six months prior to the end of our reporting period are excluded from this calculation, regardless of whether or not they have been renewed.</font></div><div style="padding-left:18pt"><font><br></font></div><div style="padding-left:18pt"><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%">For example, our renewal rate calculation as of September 1, 2024, included all memberships that had expired between March 2023 and February 2024. These represented the base (i.e., denominator) of memberships used to evaluate the renewal rate. Using that same membership base, to the extent the membership has been renewed as of the most recent month-end prior to the reporting date, it is included in the renewal count used as the numerator. This calculation yields the reported renewal rate. </font></div><div><font><br></font></div><div style="padding-left:18pt;text-indent:-18pt"><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-style:italic;font-weight:400;line-height:133%">2.</font><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-style:italic;font-weight:400;line-height:133%;padding-left:8.84pt">Please revise to clarify whether the membership figures in the table are as of a point in time or for a period of time.</font></div><div style="padding-left:36pt"><font><br></font></div><div style="padding-left:18pt"><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%">Response&#58;</font></div><div style="margin-bottom:12pt;margin-top:12pt;padding-left:18pt"><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%">The membership figures in the table are as of a point in time, at the end of years 2024, 2023, and 2022. We will conform our future disclosures accordingly.</font></div><div style="padding-left:18pt;text-indent:-18pt"><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-style:italic;font-weight:400;line-height:133%">3.</font><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-style:italic;font-weight:400;line-height:133%;padding-left:8.84pt">You state membership counts include active memberships as well as memberships that have not renewed within the 12 months prior to the reporting date. Please tell us your basis for including memberships that have not renewed within the 12 months prior to the reporting date.</font></div><div><font><br></font></div><div style="padding-left:18pt"><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%">Response&#58;</font></div><div style="padding-left:18pt"><font><br></font></div><div style="padding-left:18pt"><font style="background-color:#ffffff;color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%">As noted above, a substantial number of our members renew after expiration and renewal timing can be impacted by seasonal trends, membership promotions and concentrations of new warehouse openings in a given period. Internal reports to management utilize the methodology reflected in our public filings regarding a membership count that includes members that have not renewed within the twelve months prior to the reporting date (to capture a full annual cycle). In our Forms 10-K since 2020 we have advised investors that the membership counts include those that have not renewed within the twelve months prior to the reporting date.</font></div><div style="padding-left:18pt"><font><br></font></div><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%;text-decoration:underline">Management's Discussion and Analysis of Financial Conditions and Results of Operations</font></div><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%;text-decoration:underline">Results of Operations, page 25</font></div><div><font><br></font></div><div style="padding-left:18pt;text-indent:-18pt"><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-style:italic;font-weight:400;line-height:133%">4.</font><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-style:italic;font-weight:400;line-height:133%;padding-left:8.84pt">Please revise to quantify factors to which changes are attributed. For example, you state the increase in net sales was attributable to an increase in comparable sales and the opening of new warehouses, partially offset by one less week of sales. As another example, you cite wage increases as impacting SG&#38;A expenses. Please also revise to quantify impacts of changes in price and volume on revenue. Refer to Item 303(b)(2) of Regulation S-K.</font></div><div style="height:72pt;position:relative;width:100%"><div style="bottom:0;position:absolute;width:100%"><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:9pt;font-weight:400;line-height:133%">Confidential Treatment Requested by Costco Wholesale Corporation</font></div><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:9pt;font-weight:400;line-height:133%">C-002</font></div><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:9pt;font-weight:400;line-height:133%">&#91;*&#93; - Information omitted and provided under separate cover to the Staff pursuant to Rule 83 (17 C.F.R. &#167; 200.83)</font></div></div></div><hr style="page-break-after:always"><div style="min-height:72pt;width:100%"><div><font><br></font></div></div><div><font><br></font></div><div style="padding-left:18pt"><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%">Response&#58;</font></div><div style="padding-left:18pt"><font><br></font></div><div style="padding-left:18pt"><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%">Our 2024 Form 10-K disclosed the factors contributing to the increase in net sales as an increase in comparable sales and sales at new warehouses opened in 2023 and 2024, partially offset by the impact of one less week of sales. These drivers show the impact of changes in volume on revenue. Within the comparable sales discussion of MD&#38;A, we also disclose that shopping frequency was the significant driver of comparable sales growth. In future filings, we will further quantify the drivers that we believe are material factors within our MD&#38;A (acknowledging the examples you cite above for net sales and wage increases).</font></div><div style="padding-left:18pt"><font><br></font></div><div style="padding-left:18pt"><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%">For the period covered by the Form 10-K we concluded that the impact of changes in prices was immaterial, except for changes in the price of gasoline, which we disclosed, along with the change in the volume of gasoline gallons sold. </font></div><div style="padding-left:18pt"><font><br></font></div><div style="padding-left:18pt"><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%">Presented below for illustrative purposes is an excerpt from MD&#38;A marked to show an example of the quantitative descriptions we intend to provide in our future filings (additions to existing language are in brackets)&#58; </font></div><div style="margin-bottom:12pt;margin-top:12pt;padding-left:18pt"><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%">Net Sales</font></div><div style="margin-bottom:12pt;margin-top:12pt;padding-left:18pt"><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%">Net sales increased $11,915 or 5% during 2024. The improvement was attributable to an increase in comparable sales &#91;of $12,141 or 5%&#93; and sales at new warehouses opened in 2023 and 2024 &#91;of $4,252 or 2%&#93;, partially offset by the impact of one less week of sales in 2024 &#91;estimated to be approximately 2%&#93;.</font></div><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%;text-decoration:underline">Notes to Consolidated Financial Statements</font></div><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%;text-decoration:underline">Note 1 - Summary of Significant Accounting Policies</font></div><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%;text-decoration:underline">Revenue Recognition, page 46</font></div><div><font><br></font></div><div style="padding-left:18pt;text-indent:-18pt"><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-style:italic;font-weight:400;line-height:133%">5.</font><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-style:italic;font-weight:400;line-height:133%;padding-left:8.84pt">We note your disclosure that you derive a portion of your revenue from Citibank, including a royalty on purchases made on the co-branded card outside of Costco. Please tell us the amounts of revenue you recognized from Citibank, including such royalties, in each of the last three fiscal years and latest interim period. Please also tell us the nature and extent of any direct costs associated with this revenue. Finally, please tell us how you categorize this revenue in your table of disaggregated revenue in Note 11 on page 62.</font></div><div><font><br></font></div><div style="padding-left:18pt"><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%">Response (dollars in millions)&#58;</font></div><div style="margin-bottom:12pt;margin-top:12pt;padding-left:18pt"><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%">Under our Citibank, N.A. Co-Branded Credit Card Agreement, Citibank remitted to Costco revenues that totaled &#91;*&#93; in 2024, 2023 and 2022 and &#91;*&#93; during the first half of 2025.</font></div><div style="margin-bottom:12pt;margin-top:12pt;padding-left:18pt"><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%">Direct costs associated with the agreement consisted of funds the Company contributed to cover a portion of the rebate that cardholders receive. These amounts totaled &#91;*&#93; in 2024, 2023 and 2022 and &#91;*&#93; during the first half of 2025 and are reflected within revenue in </font></div><div style="height:72pt;position:relative;width:100%"><div style="bottom:0;position:absolute;width:100%"><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:9pt;font-weight:400;line-height:133%">Confidential Treatment Requested by Costco Wholesale Corporation</font></div><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:9pt;font-weight:400;line-height:133%">C-003</font></div><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:9pt;font-weight:400;line-height:133%">&#91;*&#93; - Information omitted and provided under separate cover to the Staff pursuant to Rule 83 (17 C.F.R. &#167; 200.83)</font></div></div></div><hr style="page-break-after:always"><div style="min-height:72pt;width:100%"><div><font><br></font></div></div><div style="margin-bottom:12pt;margin-top:12pt;padding-left:18pt"><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%">accordance with revenue-recognition guidance. These amounts include adjustments to the estimated breakage associated with the redemption of the rebate that cardholders earn, as disclosed in Note 1 to our financial statements. &#91;*&#93;</font></div><div style="margin-bottom:12pt;margin-top:12pt;padding-left:18pt"><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%">Revenues related to the agreement are disclosed within the Warehouse Ancillary and Other Businesses line in the Disaggregated Revenue table in Note 11, similar to where we categorize other revenues that are not directly associated with our core merchandise categories or that have an immaterial impact on net sales.</font></div><div><font><br></font></div><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%">Please contact me if you have any questions or further comments.</font></div><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%"> </font></div><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%">Sincerely,</font></div><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%">                                                                    &#160;&#160;&#160;&#160;</font></div><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%">COSTCO WHOLESALE CORPORATION                                                                                       </font></div><div><font><br></font></div><div><font><br></font></div><div><table style="border-collapse:collapse;display:inline-table;margin-bottom:5pt;vertical-align:text-bottom;width:98.076%"><tr><td style="width:1.0%"></td><td style="width:62.298%"></td><td style="width:0.1%"></td><td style="width:1.0%"></td><td style="width:35.502%"></td><td style="width:0.1%"></td></tr><tr><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:top"><div style="padding-left:2.37pt;padding-right:2.37pt"><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%;text-decoration:underline">&#47;s&#47;    G</font><font style="color:#000000;font-family:'Arial',sans-serif;font-size:9pt;font-weight:400;line-height:133%;text-decoration:underline">ARY</font><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%;text-decoration:underline"> M</font><font style="color:#000000;font-family:'Arial',sans-serif;font-size:9pt;font-weight:400;line-height:133%;text-decoration:underline">ILLERCHIP________________</font></div></td><td colspan="3" style="padding:0 1pt"><div style="padding-left:2.37pt;padding-right:2.37pt"><font><br></font></div></td></tr><tr><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:top"><div style="padding-left:2.37pt;padding-right:2.37pt"><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:133%">Gary Millerchip <br>Executive Vice President and Chief Financial Officer</font></div></td><td colspan="3" style="padding:0 1pt"><div style="padding-left:2.37pt;padding-right:2.37pt"><font><br></font></div></td></tr><tr style="height:39pt"><td colspan="3" style="padding:0 1pt"><div style="padding-left:2.37pt;padding-right:2.37pt"><font><br></font></div></td><td colspan="3" style="padding:0 1pt"><div style="padding-left:2.37pt;padding-right:2.37pt"><font><br></font></div></td></tr></table></div><div><font><br></font></div><div style="height:72pt;position:relative;width:100%"><div style="bottom:0;position:absolute;width:100%"><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:9pt;font-weight:400;line-height:133%">Confidential Treatment Requested by Costco Wholesale Corporation</font></div><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:9pt;font-weight:400;line-height:133%">C-004</font></div><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:9pt;font-weight:400;line-height:133%">&#91;*&#93; - Information omitted and provided under separate cover to the Staff pursuant to Rule 83 (17 C.F.R. &#167; 200.83)</font></div></div></div></body></html>
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