Annual Report of Employee Stock Plans (11-k)

Date : 06/24/2019 @ 11:06AM
Source : Edgar (US Regulatory)
Stock : Costco Wholesale Corporation (COST)
Quote : 291.41  0.0 (0.00%) @ 1:05PM

Annual Report of Employee Stock Plans (11-k)










UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
 
———————————————————
FORM 11-K
———————————————————
 
 
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
                    
For the fiscal year ended December 31, 2018

TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
                    
For the transition period from ______ to _____

Commission File Number 0-20355

A. Full title of the plan and the address of the plan, if different from that of the issuer named below:
 
Costco 401(k) Retirement Plan
 
B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:

———————————————————
Costco Wholesale Corporation
———————————————————

999 Lake Drive
Issaquah, Washington 98027






COSTCO 401(k) RETIREMENT PLAN
Table of Contents



Report of Independent Registered Public Accounting Firm


The Plan Participants and Benefits Committee
Costco 401(k) Retirement Plan:

Opinion on the Financial Statements
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, 2018 and 2017 , the related statement of changes in net assets available for benefits for the year ended December 31, 2018 , and the related notes (collectively, the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Plan as of December 31, 2018 and 2017 , and the changes in net assets available for benefits for the year ended December 31, 2018 , in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
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 are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Plan in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Accompanying Supplemental Information
The supplemental information in the accompanying schedule of assets (held at end of year) as of December 31, 2018 has been subjected to audit procedures performed in conjunction with the audit of the Plan’s financial statements. 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 is fairly stated, in all material respects, in relation to the financial statements as a whole.

/s/ KPMG LLP
We have served as the Plan’s auditor since 2002.
Seattle, WA
June 21, 2019


1

COSTCO 401(k) RETIREMENT PLAN
Statements of Net Assets Available for Benefits
December 31, 2018 and 2017
(in thousands)


 
 
 
 
 
 
 
2018
 
2017
Assets:
 
 
 
 
 
 
 
 
Investments at fair value:
 
 
 
 
 
Costco Wholesale Corporation common stock
$
5,964,993

 
$
5,507,519

 
 
Common commingled trust funds
3,950,639

 
3,857,434

 
 
Separately managed accounts
2,117,458

 
2,197,607

 
 
Registered investment company funds
1,248,845

 
1,255,566

 
Investments at contract value:
 
 
 
 
 
Fully benefit-responsive investment contracts
1,291,658

 
1,181,089

 
 
 
 
 
Total investments
14,573,593

 
13,999,215

 
Receivables:
 
 
 
 
 
 
Notes receivable from participants
514,935

 
484,852

 
 
Employee contributions
28,787

 

 
 
Employer contributions
345,719

 
324,291

 
 
 
 
 
Total receivables
889,441

 
809,143

 
Non-interest bearing cash
1,282

 
482

Net assets available for benefits
$
15,464,316

 
$
14,808,840































See accompanying notes to financial statements.

2

COSTCO 401(k) RETIREMENT PLAN
Statement of Changes in Net Assets Available for Benefits
Year Ended December 31, 2018
(in thousands)


 
2018
Net investment income:
 
 
Net appreciation of investments
$
40,370

 
Interest
28,737

 
Dividends
121,285

 
 
Total net investment income
190,392

Interest on notes receivable from participants
25,950

Contributions to the Plan:
 
 
Employee
635,693

 
Employer
409,571

 
 
Total contributions
1,045,264

Distributions to participants and other
(606,130
)
 
 
Net increase in net assets available for benefits
655,476

Net assets available for benefits, beginning of year
14,808,840

Net assets available for benefits, end of year
$
15,464,316

































See accompanying notes to financial statements.

3

COSTCO 401(k) RETIREMENT PLAN
Notes to Financial Statements
December 31, 2018 and 2017

(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. To participate in the Plan, an individual must be an employee of Costco Wholesale Corporation (the Company or Costco) and certain subsidiaries.
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 also subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA), as amended.
(a)
Employee Contributions

The Plan allows certain employees at least 18 years of age to make salary deferral contributions after completing 90 days of service within 12-consecutive months. Eligible employees may contribute from 1% to 50% of their compensation, subject to certain limitations set by the IRC and the Plan. Eligible employees may also contribute amounts representing certain distributions from other retirement plans (known as rollover contributions).
All newly-eligible employees are automatically enrolled in the Plan at a salary deferral contribution rate of 3% unless the employee elects otherwise. The percentage deferred into the Plan automatically increases by one percentage point each year, to a maximum automatic deferral of 20%. Employees may opt out of this automatic increase.
(b)
Employer Contributions

All Company contributions are invested in accordance with investment selections made by participants. If no selection has been made, the contribution defaults to the Retirement Trust Fund corresponding to the participant's age. Employer contributions are allocated based on an employee’s classification as either: 1) covered by the collective bargaining agreements with the International Brotherhood of Teamsters; or 2) other eligible employment.
(1)
Covered by the Teamsters Agreements
The Company matches 50% of each employee’s contribution up to a maximum of $250 per year. Eligible employees at least 18 years of age who have completed one year of service (12 consecutive months in which the employee worked at least 1,000 hours) are eligible for an annual employer contribution. Plan entry dates for the employer contribution occur on January 1 and July 1. The annual employer contribution is allocated only to the accounts of all eligible Plan participants who are employed on the last day of the applicable Plan year. The allocation rate varies, based on years of service, ranging from $0.05 to $0.47 per straight-time hour worked during the Plan year, up to a maximum of 2,080 hours. This annual contribution was $6.3 million for the year ended December 31, 2018 .





4

COSTCO 401(k) RETIREMENT PLAN
Notes to Financial Statements (Continued)
December 31, 2018 and 2017

(2)
Other eligible employment (not covered by the Teamsters Agreements)
The Company matches 50% of each employee’s contribution up to a maximum of $500 per year. In addition, eligible employees at least 18 years of age who have completed a year of service (12 consecutive months in which the employee worked at least 1,000 hours) are eligible for an annual discretionary employer contribution. Plan entry dates for the discretionary contribution occur on January 1 and July 1. The discretionary contribution is allocated only to the accounts of eligible Plan participants who are employed on the last day of the applicable Plan year. The allocation rate varies, based on years of service, ranging from 3% to 9% of the participant's compensation. This discretionary contribution was $342.6 million for the year ended December 31, 2018 .
(c)
Participants’ Accounts

Each participant’s account is credited or debited with the participant’s contributions, the Company’s contributions, earnings, fees, expenses, and changes in underlying account assets. The benefit to which a participant is entitled is the vested account balance.
(d)
Vesting

Participants are immediately vested in their deferral contributions and in certain other contributions as defined in the Plan document adjusted for investment experience, fees and expenses. Vesting in any form of employer contribution is based on 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

If a participant terminates employment, the non-vested portion of the account balance is forfeited. Forfeited amounts are used to reduce future employer contributions or to pay administrative expenses. These were immaterial during 2018. There were no unallocated forfeitures as of December 31, 2018 and 2017 , after consideration of forfeitures used to reduce the employer contributions funded subsequent to each year. Forfeitures are restored to a participant’s account if within five years the participant is re-hired by the Company and repays the vested account balance distributed upon termination.
(f)
Investment Options

Participants may direct their account to the Plan's available options, subject to a 50% limit on contributions to or total account investment in Costco stock. Participants may transfer amounts between investment options on business days that the NYSE is open, subject to certain trading restrictions.
Amounts may be temporarily invested in a cash account prior to investment in the Plan’s investment accounts. See Notes 2, 3 and 4 for additional information regarding the Plan's investments.


5

COSTCO 401(k) RETIREMENT PLAN
Notes to Financial Statements (Continued)
December 31, 2018 and 2017

(g)
Distributions

Upon termination of employment, total disability, reaching age 59-1/2 or death, a participant (or participant's beneficiary in the case of death) can request a full, partial or, in certain circumstances, installment or rollover distribution for the vested portion of the account. Participants are also eligible to withdraw a portion of the salary-deferral contribution account in the event of certain financial hardships.
Dividends on the Company's stock are reinvested in the participant’s Company stock account unless a distribution is requested by the participant. These dividends are reported on a gross basis, with total dividends reported as “Dividends” and the amounts distributed reported as “Distributions to participants and other” in the statement of changes in net assets available for benefits.
(h)
Notes Receivable from Participants

A participant may borrow between $1,000 up to the lesser of $50,000 or 45% of their vested account balance, reduced by the highest outstanding balance in the previous 12 months, provided this amount is available in the participant's pre-tax and rollover accounts. In addition, the bi-weekly re-payment amount cannot exceed 25% of the participant's net pay. Loans are repaid through payroll deductions over a period ranging up to four years or, if for the purchase of a principal residence, up to 15 years. The interest rate is determined by the Plan Administrator from time-to-time and is comparable to rates charged by commercial lenders. At December 31, 2018, interest rates on loans outstanding ranged from 4.25% to 11.50%, with various maturities through December 2033. Participant accounts with loans are charged an application fee at initiation and an annual maintenance fee.
(i)
Trustee and Plan Administrator

T. Rowe Price Trust Company is the trustee and recordkeeper for the Plan, and the Costco Benefits Committee is the Plan Administrator.
(j)
Administrative and Investment Expenses

Certain administrative expenses, including investment management and transactions fees, are paid by the Plan, subject to subparagraph (e) above. All other administrative expenses are paid by the Company.

(2)
Summary of Significant Accounting Policies

(a)
Basis of Accounting

The financial statements of the Plan are prepared under the accrual method of accounting. As required under U.S. generally accepted accounting principles (U.S. GAAP), fully benefit-responsive investment contracts are reported at contract value (see Note 3), while all other investments in the Plan are reported at fair value (see Note 4). 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 permits withdrawals at contract value for benefit payments, loans, or transfers to other investment options offered to the participant by the Plan. Contract value is the amount participants would receive if they were to initiate permitted transactions under the terms of the Plan.
(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

6

COSTCO 401(k) RETIREMENT PLAN
Notes to Financial Statements (Continued)
December 31, 2018 and 2017

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, common commingled trust funds and other exchange-traded equity securities held in the separately managed accounts, as well as registered investment companies and certain fully 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. Thus, it is possible that changes in the values of investment securities will occur and those changes could materially affect the amounts reported in the statements of net assets available for benefits.
The Capital Preservation Portfolio (CPP) is invested in Synthetic Guaranteed Investment Contracts (SICs) and Separate Account Contracts (SACs), which are fully benefit-responsive and recorded at contract value. Participant withdrawals are required to be recorded at contract value.
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 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. A result may be that the fully benefit-responsive contracts are terminated and settled at an amount different from the contract value. The Plan Administrator believes at this time that any events that would limit the Plan’s ability to transact at contract value with participants are not probable.
Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on an 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. Delinquent notes receivable are reclassified as distributions based upon the terms of the Plan document.
(e)
Distribution of Benefits

Distributions of benefits are recorded when paid.
(f)     Subsequent Events

The Plan monitors significant events occurring after the statement of net assets available for benefits date and prior to the issuance of the financial statements to determine the impacts, if any, of events on the financial statements to be issued. The Plan has evaluated subsequent events through the date which the financial statements are issued.





7

COSTCO 401(k) RETIREMENT PLAN
Notes to Financial Statements (Continued)
December 31, 2018 and 2017

(3)
Fully Benefit-Responsive Investment Contracts

The following is a description of the fully benefit-responsive investment contracts invested in by the CPP.

SIC : 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 contract : These are contracts 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 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.
The table below presents the total contract value of each type of fully benefit-responsive investment contract in the Plan as of December 31, 2018 and 2017 .

 
Fully benefit-responsive investment contracts (in 000's)
 
2018
 
2017
SIC
$
1,291,658

 
$
995,843

SAC

 
185,246

Total fully benefit-responsive investment contracts
$
1,291,658

 
$
1,181,089

(4)
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.
Valuation techniques utilized during the reporting period were not changed from previous practice. 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. These assets are valued using Level 1 inputs.
Common commingled trust funds : The valuation techniques used to measure the fair value of common commingled trust funds are based on quoted market prices, such as quoted net asset values (NAV) published by the fund as supported in an active market. Plan participant transactions of investment or withdrawals may occur on a daily basis in these trusts. These assets are valued using Level 1 inputs.

8

COSTCO 401(k) RETIREMENT PLAN
Notes to Financial Statements (Continued)
December 31, 2018 and 2017

The tables below present information regarding investments that are measured at fair value on a recurring basis and indicate the level within the hierarchy reflecting the valuation techniques utilized to determine fair value as of December 31, 2018 and 2017.
December 31, 2018:
Level 1
(in 000's)
Investments measured at fair value:
 
Costco Wholesale Corporation common stock
$
5,964,993

Common commingled trust funds
3,950,639

Separately managed accounts
2,117,458

Registered investment company funds
1,248,845

Total investments in fair value hierarchy
$
13,281,935

December 31, 2017:
Level 1
(in 000's)
Investments measured at fair value:
 
Costco Wholesale Corporation common stock
$
5,507,519

Common commingled trust funds
3,857,434

Separately managed accounts
2,197,607

Registered investment company funds
1,255,566

Total investments in fair value hierarchy
$
12,818,126

(5)
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 ERISA and the requirements of the collective bargaining agreements with the International Brotherhood of Teamsters. In the event of termination, participants will become 100% vested in their accounts.
(6)
Tax Status

In a determination letter dated June 9, 2017, the IRS informed the Company that the Plan is designed in accordance with applicable sections of the IRC. The Plan has been amended since receiving the determination letter. However, the Plan Administrator believes that the Plan is designed and is being operated in compliance with the IRC.
U.S. GAAP requires the Plan Administrator 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 concluded that as of December 31, 2018 , 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 in progress.

9

COSTCO 401(k) RETIREMENT PLAN
Notes to Financial Statements (Continued)
December 31, 2018 and 2017

(7)
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 Trust Company. T. Rowe Price is also the trustee and recordkeeper as defined by the Plan, therefore these transactions qualify as exempt party-in-interest transactions.
As the Plan sponsor, the Company is a party-in-interest with respect to the Plan. As of  December 31, 2018  and  2017 , the Plan held 29,282,000 and 29,591,000 shares of Costco common stock, respectively.



10

COSTCO 401(k) RETIREMENT PLAN
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2018
(in thousands)

(a) (b) Identity of issuer, borrower,
lessor, or similar party
 
(c) Description of investment
 
(d) Cost
 
(e) Current value
Registered investment company and common commingled trust funds:










American Funds

New Perspective Fund R6

**

$
270,600



PIMCO

Income Institutional

**

405,347



* T. Rowe Price

Retirement Balanced Trust G

**

24,598



* T. Rowe Price

TRP Ret 2005 Active Trust G

**

15,820



* T. Rowe Price

TRP Ret 2010 Active Trust G

**

37,351



* T. Rowe Price

TRP Ret 2015 Active Trust G

**

113,448



* T. Rowe Price

TRP Ret 2020 Active Trust G

**

333,889



* T. Rowe Price

TRP Ret 2025 Active Trust G

**

503,562



* T. Rowe Price

TRP Ret 2030 Active Trust G

**

527,218



* T. Rowe Price

TRP Ret 2035 Active Trust G

**

448,489



* T. Rowe Price

TRP Ret 2040 Active Trust G

**

547,554



* T. Rowe Price

TRP Ret 2045 Active Trust G

**

611,763



* T. Rowe Price

TRP Ret 2050 Active Trust G

**

351,191



* T. Rowe Price

TRP Ret 2055 Active Trust G

**

378,436



* T. Rowe Price

TRP Ret 2060 Active Trust G

**

57,320



Vanguard

Total International Stock Index DX Institutional

**

20,454



Vanguard

Total Bond Market Index Fund Institutional

**

62,295



Vanguard

Institutional Index, Plus

**

490,149



Total registered investment company and common commingled trust funds



5,199,484

Separately managed accounts:










Mid-Cap Growth Portfolio:









Acadia Healthcare Co Inc.

Common Stock

**

3,546




Agilent Technologies Inc.

Common Stock

**

16,990




Air Products & Chemicals Inc.

Common Stock

**

11,517




Alaska Air Group Inc.

Common Stock

**

2,858




Alkermes Plc

Common Stock

**

6,341




Allegion Plc

Common Stock

**

7,170




Alnylam Pharmaceuticals Inc.

Common Stock

**

3,279




Amneal Pharmaceuticals Inc.

Common Stock

**

3,583




Aptiv Plc

Common Stock

**

8,369




Aramark

Common Stock

**

5,154




Ardagh Group Sa

Common Stock

**

210




Assurant Inc.

Common Stock

**

5,274




Athenahealth Inc.

Common Stock

**

1,187




Atlassian Corp Plc-Class A

Common Stock

**

8,092




Atmos Energy Corp

Common Stock

**

3,707




Avery Dennison Corp

Common Stock

**

3,232




Axis Capital Holdings Ltd

Common Stock

**

3,458




Ball Corp

Common Stock

**

15,302




Black Knight Inc.

Common Stock

**

7,250




Bruker Corp

Common Stock

**

9,997




Burlington Stores Inc.

Common Stock

**

8,129




Bwx Technologies Inc.

Common Stock

**

4,470




Cabot Oil & Gas Corp

Common Stock

**

5,718


11

COSTCO 401(k) RETIREMENT PLAN
Schedule H, Line 4i – Schedule of Assets (Held at End of Year) (Continued)
December 31, 2018
(in thousands)


(a) (b) Identity of issuer, borrower,
lessor, or similar party
 
(c) Description of investment
 
(d) Cost
 
(e) Current value



Carmax Inc.

Common Stock

**

6,457




Casey's General Stores Inc.

Common Stock

**

8,708




Catalent Inc.

Common Stock

**

8,788




Cboe Global Markets Inc.

Common Stock

**

8,897




Cdk Global Inc.

Common Stock

**

3,254




Centennial Resource Development-A

Common Stock

**

2,004




Ceridian Hcm Holding Inc.

Common Stock

**

1,000




Coherent Inc.

Common Stock

**

2,318




Colfax Corp

Common Stock

**

4,595




Conagra Brands Inc.

Common Stock

**

3,800




Concho Resources Inc.

Common Stock

**

7,499




Continental Resources Inc./Ok

Common Stock

**

3,615




Cooper Cos Inc./The

Common Stock

**

20,857




Corelogic Inc.

Common Stock

**

7,281




Corning Inc.

Common Stock

**

10,839




Costar Group Inc.

Common Stock

**

6,069




Darden Restaurants Inc.

Common Stock

**

3,194




Docusign Inc.

Common Stock

**

1,826




Dollar General Corp

Common Stock

**

12,422




Dollar Tree Inc.

Common Stock

**

9,027




Dunkin' Brands Group Inc.

Common Stock

**

5,831




Elanco Animal Health Inc.

Common Stock

**

851




Electronic Arts Inc.

Common Stock

**

1,104




Equifax Inc.

Common Stock

**

5,119




Exact Sciences Corp

Common Stock

**

3,973




Ferrari Nv

Common Stock

**

994




Fidelity National Financial

Common Stock

**

10,306




Fidelity National Info Serv

Common Stock

**

7,482




Fifth Third Bancorp

Common Stock

**

6,890




Fiserv Inc.

Common Stock

**

10,503




Fleetcor Technologies Inc.

Common Stock

**

8,538




Fortive Corp

Common Stock

**

10,346




Franco-Nevada Corp

Common Stock

**

5,119




Frontdoor Inc.

Common Stock

**

2,367




Gardner Denver Holdings Inc.

Common Stock

**

6,336




Gartner Inc.

Common Stock

**

4,600




Global Payments Inc.

Common Stock

**

4,741




Guidewire Software Inc.

Common Stock

**

2,085




Harris Corp

Common Stock

**

16,283




HD Supply Holdings Inc.

Common Stock

**

2,700




Hilton Worldwide Holdings Inc.

Common Stock

**

6,530




Hologic Inc.

Common Stock

**

18,854




Hunt (JB) Transprt Svcs Inc.

Common Stock

**

2,883




Iac/Interactivecorp

Common Stock

**

15,366




Icu Medical Inc.

Common Stock

**

4,360




Idex Corp

Common Stock

**

13,123


12

COSTCO 401(k) RETIREMENT PLAN
Schedule H, Line 4i – Schedule of Assets (Held at End of Year) (Continued)
December 31, 2018
(in thousands)


(a) (b) Identity of issuer, borrower,
lessor, or similar party
 
(c) Description of investment
 
(d) Cost
 
(e) Current value



Idexx Laboratories Inc.

Common Stock

**

2,417




Ihs Markit Ltd

Common Stock

**

6,424




Incyte Corp

Common Stock

**

4,703




Iqvia Holdings Inc.

Common Stock

**

4,180




Kansas City Southern

Common Stock

**

6,964




Kar Auction Services Inc.

Common Stock

**

6,820




Keysight Technologies Inc.

Common Stock

**

19,171




KKR & Co Inc. -A

Common Stock

**

4,218




Kroger Co

Common Stock

**

5,689




L3 Technologies Inc.

Common Stock

**

3,471




Marketaxess Holdings Inc.

Common Stock

**

4,013




Marriott International -Cl A

Common Stock

**

7,920




Martin Marietta Materials

Common Stock

**

4,638




Marvell Technology Group Ltd

Common Stock

**

6,812




Maxar Technologies Ltd

Common Stock

**

801




Maxim Integrated Products

Common Stock

**

6,861




Mednax Inc.

Common Stock

**

3,661




MGM Resorts International

Common Stock

**

10,183




Michaels Cos Inc./The

Common Stock

**

1,935




Microchip Technology Inc.

Common Stock

**

19,551




National Instruments Corp

Common Stock

**

3,674




Norwegian Cruise Line Holdings

Common Stock

**

12,964




O'Reilly Automotive Inc.

Common Stock

**

6,194




Perrigo Co Plc

Common Stock

**

3,563




Progressive Corp

Common Stock

**

4,221




Red Hat Inc.

Common Stock

**

7,899




Roofoods Limited (Deliveroo)

Preferred Stock

**

1,947




Roper Technologies Inc.

Common Stock

**

12,253




RPM International Inc.

Common Stock

**

8,636




Sage Therapeutics Inc.

Common Stock

**

1,532




Sealed Air Corp

Common Stock

**

6,128




Seattle Genetics Inc.

Common Stock

**

3,567




Sempra Energy

Common Stock

**

7,785




Sensata Technologies Holding

Common Stock

**

15,326




Servicemaster Global Holding

Common Stock

**

5,398




Shopify Inc - Class A

Common Stock

**

1,660




Skyworks Solutions Inc.

Common Stock

**

5,425




Slack Technologies, Inc.

Preferred Stock

**

713




SLM Corp

Common Stock

**

2,791




Splunk Inc.

Common Stock

**

4,820




Sprouts Farmers Market Inc.

Common Stock

**

5,169




SS&C Technologies Holdings

Common Stock

**

4,463




Symantec Corp

Common Stock

**

7,214




Tableau Software Inc.-Cl A

Common Stock

**

7,316




Tapestry Inc.

Common Stock

**

14,740




TD Ameritrade Holding Corp

Common Stock

**

14,533


13

COSTCO 401(k) RETIREMENT PLAN
Schedule H, Line 4i – Schedule of Assets (Held at End of Year) (Continued)
December 31, 2018
(in thousands)


(a) (b) Identity of issuer, borrower,
lessor, or similar party
 
(c) Description of investment
 
(d) Cost
 
(e) Current value



Teleflex Inc.

Common Stock

**

25,574




Textron Inc.

Common Stock

**

17,190




Transunion

Common Stock

**

8,345




Treehouse Foods Inc.

Common Stock

**

6,487




Ulta Beauty Inc.

Common Stock

**

4,405




United Continental Holdings

Common Stock

**

6,025




Vail Resorts Inc.

Common Stock

**

8,428




Valvoline Inc.

Common Stock

**

4,873




Venture Global Lng, Inc., Series B

Common Stock

**

229




Venture Global Lng, Inc., Series C

Common Stock

**

1,518




Verisk Analytics Inc.

Common Stock

**

11,660




Visteon Corp

Common Stock

**

2,289




Waste Connections Inc.

Common Stock

**

7,346




We Work Companies Class A Common Stock

Common Stock

**

636




Webster Financial Corp

Common Stock

**

3,103




West Pharmaceutical Services

Common Stock

**

5,291




Willis Towers Watson Plc

Common Stock

**

17,150




Workday Inc.-Class A

Common Stock

**

14,522




Worldpay Inc.-Class A

Common Stock

**

14,590




Xilinx Inc.

Common Stock

**

7,661




Xylem Inc.

Common Stock

**

9,002




Zillow Group Inc. - A

Common Stock

**

503




Zillow Group Inc. - C

Common Stock

**

1,831




US Govt Stif 5 Bps

Bond

**

1,797




* T Rowe Price Treasury Reserve Fund

Money Market Securities

**

18,840



Large Cap Value Portfolio:









Agilent Technologies Inc.

Common Stock

**

954




Air Products & Chemicals Inc.

Common Stock

**

830




American International Group

Common Stock

**

1,964




Ameriprise Financial Inc.

Common Stock

**

1,189




Anthem Inc.

Common Stock

**

1,437




AT&T Inc.

Common Stock

**

3,208




AXA Equitable Holdings Inc.

Common Stock

**

200




Ball Corp

Common Stock

**

1,311




Bank Of America Corp

Common Stock

**

501




Becton Dickinson And Co

Preferred Stock

**

3,568




Boeing Co/The

Common Stock

**

4,691




Boston Scientific Corp

Common Stock

**

1,434




Bp Plc-Spons Adr

Common Stock

**

1,200




Broadcom Inc.

Common Stock

**

458




Cabot Oil & Gas Corp

Common Stock

**

809




Celgene Corp

Common Stock

**

434




Chevron Corp

Common Stock

**

206




Chubb Ltd

Common Stock

**

2,276




Cigna Corp

Common Stock

**

2,844


14

COSTCO 401(k) RETIREMENT PLAN
Schedule H, Line 4i – Schedule of Assets (Held at End of Year) (Continued)
December 31, 2018
(in thousands)


(a) (b) Identity of issuer, borrower,
lessor, or similar party
 
(c) Description of investment
 
(d) Cost
 
(e) Current value



Cisco Systems Inc.

Common Stock

**

5,588




Comcast Corp-Class A

Common Stock

**

1,798




Conagra Brands Inc.

Common Stock

**

1,156




Concho Resources Inc.

Common Stock

**

1,332




Conocophillips

Common Stock

**

970




Cooper Cos Inc./The

Common Stock

**

660




Corning Inc.

Common Stock

**

2,976




Crown Castle Intl Corp

Common Stock

**

1,506




Cvs Health Corp

Common Stock

**

2,404




Danaher Corp

Common Stock

**

3,039




Delta Air Lines Inc.

Common Stock

**

582




Dollar Tree Inc.

Common Stock

**

2,251




Dowdupont Inc.

Common Stock

**

2,485




Duke Energy Corp

Common Stock

**

3,305




Eli Lilly & Co

Common Stock

**

1,027




Entergy Corp

Common Stock

**

2,561




EOG Resources Inc.

Common Stock

**

1,896




Evergy Inc.

Common Stock

**

1,815




Facebook Inc.-Class A

Common Stock

**

2,019




Fifth Third Bancorp

Common Stock

**

1,306




First Republic Bank/Ca

Common Stock

**

1,192




Fortive Corporation

Common Stock

**

843




General Electric Co

Common Stock

**

2,363




Hologic Inc.

Common Stock

**

635




Honeywell International Inc.

Common Stock

**

1,919




Illinois Tool Works

Common Stock

**

871




Intercontinental Exchange Inc.

Common Stock

**

2,544




International Paper Co

Common Stock

**

1,117




Jpmorgan Chase & Co

Common Stock

**

5,420




Kansas City Southern

Common Stock

**

1,018




Keysight Technologies Inc.

Common Stock

**

2,061




Kimberly-Clark Corp

Common Stock

**

2,393




Kraft Heinz Co/The

Common Stock

**

453




Kroger Co

Common Stock

**

877




Las Vegas Sands Corp

Common Stock

**

1,383




Magna International Inc.

Common Stock

**

1,265




Marsh & Mclennan Cos

Common Stock

**

2,126




Maxim Integrated Products

Common Stock

**

588




McDonald's Corp

Common Stock

**

2,471




Medtronic Plc

Common Stock

**

4,677




Merck & Co. Inc.

Common Stock

**

5,563




MGM Resorts International

Common Stock

**

281




Micron Technology Inc.

Common Stock

**

28




Microsoft Corp

Common Stock

**

9,248




Morgan Stanley

Common Stock

**

1,672




Nextera Energy Inc.

Common Stock

**

6,051


15

COSTCO 401(k) RETIREMENT PLAN
Schedule H, Line 4i – Schedule of Assets (Held at End of Year) (Continued)
December 31, 2018
(in thousands)


(a) (b) Identity of issuer, borrower,
lessor, or similar party
 
(c) Description of investment
 
(d) Cost
 
(e) Current value



Nielsen Holdings Plc

Common Stock

**

1,621




Nisource Inc

Common Stock

**

1,453




Northrop Grumman Corp

Common Stock

**

3,214




Nxp Semiconductors Nv

Common Stock

**

1,059




Occidental Petroleum Corp

Common Stock

**

1,695




PG&E Corp

Common Stock

**

832




Paccar Inc.

Common Stock

**

616




Perrigo Co Plc

Common Stock

**

133




Pfizer Inc.

Common Stock

**

11,147




Philip Morris International

Common Stock

**

2,565




Pnc Financial Services Group

Common Stock

**

4,216




Procter & Gamble Co/The

Common Stock

**

1,457




Prologis Inc.

Common Stock

**

1,171




Prudential Financial Inc.

Common Stock

**

959




Public Storage

Common Stock

**

484




Qualcomm Inc.

Common Stock

**

2,214




Raymond James Financial Inc.

Common Stock

**

484




Republic Services Inc.

Common Stock

**

912




Roper Technologies Inc.

Common Stock

**

745




Ross Stores Inc.

Common Stock

**

1,028




Schwab (Charles) Corp

Common Stock

**

2,931




Sempra Energy

Common Stock

**

4,801




Southern Co/The

Common Stock

**

3,260




State Street Corp

Common Stock

**

344




Stryker Corp

Common Stock

**

1,922




Synopsys Inc.

Common Stock

**

1,697




Te Connectivity Ltd

Common Stock

**

1,101




Texas Instruments Inc.

Common Stock

**

2,829




Thermo Fisher Scientific Inc.

Common Stock

**

3,162




Total Sa-Spon Adr

Common Stock

**

4,567




Transcanada Corp

Common Stock

**

3,587




Twenty-First Century Fox - B

Common Stock

**

2,167




Tyson Foods Inc.-Cl A

Common Stock

**

6,571




UnitedHealth Group Inc.

Common Stock

**

1,440




US Bancorp

Common Stock

**

432




Ventas Inc.

Common Stock

**

695




Verizon Communications Inc.

Common Stock

**

4,953




Walmart Inc.

Common Stock

**

1,281




Wells Fargo & Co

Common Stock

**

8,118




Weyerhaeuser Co

Common Stock

**

564




Willis Towers Watson Plc

Common Stock

**

1,843




Zimmer Biomet Holdings Inc.

Common Stock

**

1,230




Us Govt Stif 5 Bps

Money Market Securities

**

1,070




* T Rowe Price Gov Res Fund

Mutual Funds

**

2,030

 
 
Small-Cap Core Portfolio:
 
 
 
 
 
 



2U Inc.

Common Stock

**

1,282


16

COSTCO 401(k) RETIREMENT PLAN
Schedule H, Line 4i – Schedule of Assets (Held at End of Year) (Continued)
December 31, 2018
(in thousands)


(a) (b) Identity of issuer, borrower,
lessor, or similar party
 
(c) Description of investment
 
(d) Cost
 
(e) Current value



A Place For Rover Inc.

Preferred Stock

**

226




Aaron's Inc.

Common Stock

**

2,391




Abeona Therapeutics Inc.

Common Stock

**

96




Acadia Healthcare Co Inc.

Common Stock

**

1,335




Acadia Realty Trust

Common Stock

**

998




Acceleron Pharma Inc.

Common Stock

**

1,136




Aerojet Rocketdyne Holdings

Common Stock

**

2,121




Agios Pharmaceuticals Inc.

Common Stock

**

554




Aimmune Therapeutics Inc.

Common Stock

**

621




Alder Biopharmaceuticals Inc.

Common Stock

**

567




Alexander & Baldwin Inc.

Common Stock

**

1,139




Alkermes Plc

Common Stock

**

451




Allbirds Common Stock Pp

Common Stock

**

257




Allbirds Inc. Series B Convertible

Preferred Stock

**

15




Allbirds Series C Cvt

Preferred Stock

**

140




Allbirds, Inc., Series A Convertible

Preferred Stock

**

83




Allbirds, Inc., Series Seed Convertible

Preferred Stock

**

45




Allogene Therapeutics Inc.

Common Stock

**

185




Amedisys Inc.

Common Stock

**

786




American Campus Communities

Common Stock

**

2,469




American Public Education

Common Stock

**

785




Amneal Pharmaceuticals Inc.

Common Stock

**

612




Anaptysbio Inc.

Common Stock

**

57




Argenx Se - Adr

Common Stock

**

957




Ascendis Pharma A/S - Adr

Common Stock

**

1,338




Assurant Inc.

Common Stock

**

1,942




Atlantic Capital Bancshares

Common Stock

**

786




Atricure Inc.

Common Stock

**

710




Avalara Inc.

Common Stock

**

117




Avanos Medical Inc.

Common Stock

**

2,400




Axis Capital Holdings Ltd

Common Stock

**

1,669




Azz Inc.

Common Stock

**

1,736




Bankunited Inc.

Common Stock

**

2,188




Barings Bdc Inc.

Common Stock

**

478




Barnes Group Inc.

Common Stock

**

1,132




Beigene Ltd-Adr