COSTCO WHOLESALE CORP /NEW (COST) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that COSTCO WHOLESALE CORP /NEW surfaced in its latest filing.

• U.S. and Canadian operations comprised 86% and 84% of net sales and operating income in 20252025
• California operations comprised 26% of U.S. net sales in 20252025
• During 2025, international operations, including Canada, generated 27% of net sales and 34% of operating income2025
• At the end of 2025, we operated 285 warehouses outside of the U.S., representing 31% of all warehouse locations2025
• We have made and may continue to make investments and acquisitions to improve the speed, accuracy and efficiency of our supply chains and delivery channels
• Kirkland Signature products carry higher margins and represent a growing portion of overall sales
• Data is subject to European Union General Data Protection Regulation, California Consumer Privacy Act, Health Insurance Portability and Accountability Act, and China's Personal Information Protection Act
• Evolving rules concerning artificial intelligence and restrictions on use of member information may impair ability to utilize data consistent with member consents and preferences
• We accept payments using select credit and debit cards, cash, checks, co-brand cardholder rebates, Executive member 2% reward certificates, and our shop card
• Costco has set public targets and disclosed intentions for future action regarding sustainability
• Multiple states are implementing extended producer responsibility laws that will require Costco to enact policies and processes and pay fees, else be subject to fines and penalties
• Government regulations limiting carbon dioxide and other greenhouse gas emissions may increase costs
• More stringent fuel economy standards and regulations related to climate change may affect future operations and require significant capital expenditures
• Costco is involved in a number of legal proceedings and audits whose outcomes could adversely affect its business