COSTCO WHOLESALE CORPORATION (Exact name of registrant as specified in its charter)

Transcription

1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of Earliest Event Reported): February 27, 2015 COSTCO WHOLESALE CORPORATION (Exact name of registrant as specified in its charter) Washington (State or other jurisdiction (Commission (I.R.S. Employer of incorporation) File No.) Identification No.) 999 Lake Drive Issaquah, WA (Address of principal executive offices and zip code) Registrant s telephone number, including area code: Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): Written communications pursuant to Rule 425 under the Securities Act (17 CFR ) Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR a-12) Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR d-2(b)) Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR e-4(c))

2 Item 1.01 Entry into a Material Definitive Agreement On February 27, 2015 Costco Wholesale Corporation (the Company ) entered into a Co-Branded Credit Card Program Agreement (the Program Agreement ) with Citibank, N.A. ( Citi ). A copy of the press release announcing the Program Agreement is filed with this report as Exhibit Under the terms of the Program Agreement, Citi would become the exclusive issuer of Costco s co-brand credit cards to new and existing customers of the Company and Visa U.S.A. Inc. would replace American Express as the credit card network for Costco in the United States and Puerto Rico beginning April 1, Once issued, Costco s co-brand Visa credit card would serve as the Costco membership card, and would be accepted at Costco locations in the United States and Puerto Rico, as well as all merchants worldwide that accept Visa credit cards. In addition, Citi would provide customer service functions and support certain Company marketing and loyalty program activities related to the card program. The implementation of the Program Agreement is subject to the purchase by Citi of the existing co-brand credit card portfolio. The Company would receive various forms of consideration under the Program Agreement; the primary source is projected to be a royalty on spending by cardholders other than at Costco warehouses. The initial term of the Program Agreement is ten years, with an option by the Company to extend for three years. The Program Agreement contains customary representations, warranties and covenants, as well as indemnification, exclusivity, confidentiality, data sharing and security and termination provisions. Item 9.01 Financial Statements and Exhibits (d) Exhibits. The following exhibits are included in this report: Exhibit Description 99.1 Press release dated March 2, 2015

3 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized, on March 5, COSTCO WHOLESALE CORPORATION By: /s/ Richard A. Galanti Richard A. Galanti Executive Vice President & Chief Financial Officer

4 Exhibit Index Exhibit Description 99.1 Press release dated March 2, 2015

5 Exhibit 99.1 News from Costco Enters into a Long Term Co-Brand Credit Card Agreement with Citi and an Acceptance and Co-Brand Agreement with Visa ISSAQUAH, WASH., March 2, 2015 Costco Wholesale Corporation ( Costco ) (NASDAQ: COST) today announced it has entered into a new co-brand credit card program agreement with Citi and an acceptance and co-brand incentive agreement with Visa. The implementation of these agreements is subject to the purchase of the existing co-brand credit card portfolio by Citi. Under the terms of the agreements, Citi, the world s largest issuer of consumer credit cards, would become the exclusive issuer of Costco s co-brand credit cards and Visa will replace American Express as the credit card network for Costco in the United States and Puerto Rico beginning April 1, Once issued, Costco s co-brand Visa credit card would provide generous rewards to Costco members, serve as the Costco membership card, and would be accepted at Costco locations in the United States and Puerto Rico, as well as all merchants worldwide that accept Visa credit cards. Costco will provide its members with additional information in the coming months regarding the anticipated transition from its existing co-brand credit card program. About Costco Costco (NASDAQ: COST) currently operates 671 warehouses, including 474 in the United States and Puerto Rico, 88 in Canada, 34 in Mexico, 26 in the United Kingdom, 20 in Japan, 11 in Korea, 10 in Taiwan, seven in Australia and one in Spain. Costco also operates electronic commerce web sites in the U.S., Canada, the United Kingdom and Mexico. About Citi Citi (NYSE: C) the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management. About Visa Visa Inc. (NYSE:V) is a global payments technology company that connects consumers, businesses, financial institutions, and governments in more than 200 countries and territories to fast, secure and reliable electronic payments. Visa operates one of the world s most advanced processing networks VisaNet that is capable of handling more than 56,000 transaction messages a second, with fraud protection for consumers and assured payment for merchants. Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Certain statements contained in this document constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of For these purposes, forward-looking statements are statements that address activities, events, conditions or developments that Costco expects or anticipates may occur in the future. Such forward-looking statements involve risks and uncertainties that may cause actual events, results or performance to differ materially from those indicated by such statements. These risks and uncertainties include, but are not limited to Costco s ability to satisfy the requirements for consummation of the agreements and other risks identified in Costco s other public

6 statements and reports filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made, and we do not undertake to update these statements, except as required by law. CONTACTS: Costco Wholesale Corporation Richard Galanti, 425/ Bob Nelson, 425/ David Sherwood, 425/ Citi Emily Collins 718/ Visa U.S.A. Inc. Jennifer Doidge 415/