<PAGE>
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
--------------------
FORM 11-K
--------------------
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1997
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ________ to __________
Commission file number 333-21093
COSTCO
401(k) RETIREMENT PLAN
--------------------
COSTCO COMPANIES, INC.
999 LAKE DRIVE
ISSAQUAH, WASHINGTON 98027
(425) 313-8100
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- -------------------------------------------------------------------------------
<PAGE>
COSTCO
WHOLESALE
401(k) RETIREMENT PLAN
EIN 33-0572969
PIN 002
FINANCIAL STATEMENTS AND SCHEDULES
DECEMBER 31, 1997 AND 1996
TOGETHER WITH AUDITORS' REPORT
<PAGE>
COSTCO
401(k) RETIREMENT PLAN
FINANCIAL STATEMENTS AND SCHEDULES
DECEMBER 31, 1997 AND 1996
INDEX
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
FINANCIAL STATEMENTS
Statements of Net Assets Available for Plan Benefits as of
December 31, 1997 and 1996
Statement of Changes in Net Assets Available for Plan Benefits for
the Year Ended December 31, 1997
NOTES TO FINANCIAL STATEMENTS AND SCHEDULES
SUPPLEMENTAL INFORMATION
Schedule I, Item 27a -- Schedule of Assets Held for Investment
Purposes as of December 31, 1997
Schedule II, Item 27d -- Schedule of Reportable Transactions for the
Year Ended December 31, 1997
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Benefits Committee of
the Costco 401(k) Retirement Plan:
We have audited the accompanying statements of net assets available for plan
benefits of the Costco 401(k) Retirement Plan as of December 31, 1997 and 1996,
and the related statement of changes in net assets available for plan benefits
for the year ended December 31, 1997. 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 generally accepted auditing
standards. 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 plan benefits of the Plan as
of December 31, 1997 and 1996, and the changes in its net assets available for
plan benefits for the year ended December 31, 1997, in conformity with generally
accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of assets
held for investment purposes and reportable transactions are presented for the
purpose of additional analysis and are not a required part of the basic
financial statements, but are supplementary 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 Fund information in
the statements of net assets available for plan benefits and the statement of
changes in net assets available for plan benefits is presented for purposes of
additional analysis rather than to present the net assets available for plan
benefits and changes in net assets available for plan benefits of each fund.
The supplemental schedules and Fund information have been subjected to the
auditing procedures applied in the audits of the basic financial statements and,
in our opinion, are fairly stated in all material respects in relation to the
basic financial statements taken as a whole.
Seattle, Washington,
June 1, 1998
<PAGE>
COSTCO
401(k) RETIREMENT PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
AS OF DECEMBER 31, 1997
<TABLE>
<CAPTION>
Participant Directed
-----------------------------------------------------------------------
Cash Stable Equity Spectrum Spectrum
and Cash Value Income Income Growth New Horizons
Equivalents Fund Fund Fund Fund Fund
----------- ----------- ----------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments at fair value--
Registered investment company funds $56,916 $60,285,173 $84,103,540 $61,805,443 $73,829,666 $6,846,070
Costco Companies, Inc. common stock
--2,634,491 shares held -- -- -- -- -- --
Participant loans -- -- -- -- -- --
------- ----------- ----------- ----------- ----------- ----------
Total investments 56,916 60,285,173 84,103,540 61,805,443 73,829,666 6,846,070
------- ----------- ----------- ----------- ----------- ----------
Contributions receivable--
Employee -- 219,816 345,247 105,392 333,312 63,569
Employer -- 10,871,560 7,537,033 2,400,076 7,046,161 1,172,191
------- ----------- ----------- ----------- ----------- ----------
Total receivables -- 11,091,376 7,882,280 2,505,468 7,379,473 1,235,760
------- ----------- ----------- ----------- ----------- ----------
NET ASSETS AVAILABLE FOR PLAN BENEFITS $56,916 $71,376,549 $91,985,820 $64,310,911 $81,209,139 $8,081,830
------- ----------- ----------- ----------- ----------- ----------
------- ----------- ----------- ----------- ----------- ----------
<CAPTION>
----------------------------------------
Costco
Companies,
Mid-Cap Inc. Participant
Growth Fund Common Stock Loans Total
----------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
ASSETS:
Investments at fair value--
Registered investment company funds $10,353,107 $ -- $ -- $297,279,915
Costco Companies, Inc. common stock
--2,634,491 shares held -- 117,564,146 -- 117,564,146
Participant loans -- -- 13,529,202 13,529,202
----------- ------------ ----------- ------------
Total investments 10,353,107 117,564,146 13,529,202 428,373,263
----------- ------------ ----------- ------------
Contributions receivable--
Employee 82,603 287,045 -- 1,436,984
Employer 1,584,456 7,238,174 -- 37,849,651
----------- ------------ ----------- ------------
Total receivables 1,667,059 7,525,219 -- 39,286,635
----------- ------------ ----------- ------------
NET ASSETS AVAILABLE FOR PLAN BENEFITS $12,020,166 $125,089,365 $13,529,202 $467,659,898
----------- ------------ ----------- ------------
----------- ------------ ----------- ------------
</TABLE>
The accompanying notes and schedules are an integral part of this statement.
<PAGE>
COSTCO
401(k) RETIREMENT PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
AS OF DECEMBER 31, 1996
<TABLE>
<CAPTION>
Participant Directed
-----------------------------------------------------------------------
Cash Stable Equity Spectrum Spectrum
and Cash Value Income Income Growth New Horizons
Equivalents Fund Fund Fund Fund Fund
----------- ----------- ----------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments at fair value--
Registered investment company funds $42,748 $47,323,062 $53,829,752 $64,681,834 $54,688,418 $ --
Costco Companies, Inc. common stock
--2,170,687 shares held -- -- -- -- -- --
------- ----------- ----------- ----------- ----------- ----------
Total investments 42,748 47,323,062 53,829,752 64,681,834 54,688,418 --
------- ----------- ----------- ----------- ----------- ----------
Contributions receivable--
Employee -- 232,480 298,912 94,382 321,820 3,354
Employer -- 12,263,804 6,331,811 2,101,594 6,409,617 564,570
------- ----------- ----------- ----------- ----------- ----------
Total receivables -- 12,496,284 6,630,723 2,195,976 6,731,437 567,924
------- ----------- ----------- ----------- ----------- ----------
NET ASSETS AVAILABLE FOR PLAN BENEFITS $42,748 $59,819,346 $60,460,475 $66,877,810 $61,419,855 $ 567,924
------- ----------- ----------- ----------- ----------- ----------
------- ----------- ----------- ----------- ----------- ----------
<CAPTION>
-------------------------
Costco
Companies,
Mid-Cap Inc.
Growth Common
Fund Stock Total
----------- ------------ ------------
<S> <C> <C> <C>
ASSETS:
Investments at fair value--
Registered investment company funds $ -- $ -- $220,565,814
Costco Companies, Inc. common stock
--2,170,687 shares held -- 54,538,510 54,538,510
----------- ----------- ------------
Total investments -- 54,538,510 275,104,324
----------- ----------- ------------
Contributions receivable--
Employee 4,220 193,233 1,148,401
Employer 613,125 5,306,538 33,591,059
----------- ----------- ------------
Total receivables 617,345 5,499,771 34,739,460
----------- ----------- ------------
NET ASSETS AVAILABLE FOR PLAN BENEFITS $617,345 $60,038,281 $309,843,784
----------- ----------- ------------
----------- ----------- ------------
</TABLE>
The accompanying notes and schedules are an integral part of this statement.
<PAGE>
COSTCO
401(k) RETIREMENT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
Participant Directed
-----------------------------------------------------------------------
Cash Stable Equity Spectrum Spectrum
and Cash Value Income Income Growth New Horizons
Equivalents Fund Fund Fund Fund Fund
----------- ------------ ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
NET INVESTMENT RESULTS:
Net appreciation in fair value of
investments $ -- $ -- $ 9,795,030 $ 2,462,328 $ 3,195,834 $ 281,405
Interest -- 3,566,824 80,314 4,656,507 63,431 9,710
Dividends -- -- 8,266,462 -- 7,484,894 166,050
------- ----------- ----------- ------------ ----------- ----------
Total net investment results -- 3,566,824 18,141,806 7,118,835 10,744,159 457,165
------- ----------- ----------- ------------ ----------- ----------
CONTRIBUTIONS TO THE PLAN:
Employee -- 5,769,153 8,684,217 2,642,390 8,567,565 1,348,732
Rollovers -- 104,077 192,149 84,903 78,701 48,441
Employer -- 12,828,773 9,268,999 2,970,584 8,809,464 1,431,028
------- ----------- ----------- ------------ ----------- ----------
Total contributions -- 18,702,003 18,145,365 5,697,877 17,455,730 2,828,201
------- ----------- ----------- ------------ ----------- ----------
DISTRIBUTIONS TO PARTICIPANTS:
Hardship withdrawals -- (451,892) (398,734) (66,266) (487,139) (23,230)
Terminations -- (2,247,373) (2,472,746) (2,971,528) (2,233,901) (127,734)
------- ----------- ----------- ------------ ----------- ----------
Total distributions -- (2,699,265) (2,871,480) (3,037,794) (2,721,040) (150,964)
------- ----------- ----------- ------------ ----------- ----------
PARTICIPANT LOANS:
New loans -- (2,417,951) (3,602,010) (816,323) (2,789,830) (192,226)
Loan repayments -- 139,527 215,925 70,397 178,334 28,234
------- ----------- ----------- ------------ ----------- ----------
Total loans -- (2,278,424) (3,386,085) (745,926) (2,611,496) (163,992)
------- ----------- ----------- ------------ ----------- ----------
INTERFUND TRANSFERS 14,168 (5,733,935) 1,495,739 (11,599,891) (3,078,069) 4,543,496
------- ----------- ----------- ------------ ----------- ----------
NET INCREASE (DECREASE) IN NET ASSETS
AVAILABLE FOR PLAN BENEFITS 14,168 11,557,203 31,525,345 (2,566,899) 19,789,284 7,513,906
NET ASSETS AVAILABLE FOR PLAN BENEFITS,
beginning of year 42,748 59,819,346 60,460,475 66,877,810 61,419,855 567,924
------- ----------- ----------- ------------ ----------- ----------
NET ASSETS AVAILABLE FOR PLAN BENEFITS,
end of year $56,916 $71,376,549 $91,985,820 $ 64,310,911 $81,209,139 $8,081,830
------- ----------- ----------- ------------ ----------- ----------
------- ----------- ----------- ------------ ----------- ----------
<CAPTION>
---------------------------------------
Costco
Companies,
Mid-Cap Inc.
Growth Common Participant
Fund Stock Loans Total
----------- ----------- ----------- ------------
<S> <C> <C> <C> <C>
NET INVESTMENT RESULTS:
Net appreciation in fair value of
investments $ 1,117,915 $ 49,702,156 $ -- $ 66,554,668
Interest 11,608 81,610 -- 8,470,004
Dividends 107,527 -- -- 16,024,933
----------- ------------ ----------- ------------
Total net investment results 1,237,050 49,783,766 -- 91,049,605
----------- ------------ ----------- ------------
CONTRIBUTIONS TO THE PLAN:
Employee 1,628,324 6,300,349 -- 34,940,730
Rollovers 200,487 67,419 -- 776,177
Employer 1,881,198 8,534,060 -- 45,724,106
----------- ------------ ----------- ------------
Total contributions 3,710,009 14,901,828 -- 81,441,013
----------- ------------ ----------- ------------
DISTRIBUTIONS TO PARTICIPANTS:
Hardship withdrawals (11,693) (730,820) -- (2,169,774)
Terminations (144,251) (2,307,197) -- (12,504,730)
----------- ------------ ----------- ------------
Total distributions (155,944) (3,038,017) -- (14,674,504)
----------- ------------ ----------- ------------
PARTICIPANT LOANS:
New loans (237,584) (4,351,299) 14,407,223 --
Loan repayments 28,961 216,643 (878,021) --
----------- ------------ ----------- ------------
Total loans (208,623) (4,134,656) 13,529,202 --
----------- ------------ ----------- ------------
INTERFUND TRANSFERS 6,820,329 7,538,163 -- --
----------- ------------ ----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS
AVAILABLE FOR PLAN BENEFITS 11,402,821 65,051,084 13,529,202 157,816,114
NET ASSETS AVAILABLE FOR PLAN BENEFITS,
beginning of year 617,345 60,038,281 -- 309,843,784
----------- ------------ ----------- ------------
NET ASSETS AVAILABLE FOR PLAN BENEFITS,
end of year $12,020,166 $125,089,365 $13,529,202 $467,659,898
----------- ------------ ----------- ------------
----------- ------------ ----------- ------------
</TABLE>
The accompanying notes and schedules are an integral part of this statement.
<PAGE>
COSTCO
401(k) RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS AND SCHEDULES
DECEMBER 31, 1997
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.
The Plan is a defined-contribution plan subject to the provisions of the
Employee Retirement Income Security Act of 1974 (ERISA).
Costco Wholesale Corporation and The Price Company are wholly-owned subsidiaries
of Costco Companies, Inc. Prior to January 1, 1997 the Plan was named the
PriceCostco 401(k) Retirement Plan.
ELIGIBILITY
The Plan covers certain employees over the age of 18 who have completed one year
of service containing a minimum of 1,000 hours worked. The employee enters the
Plan on the entry date following the fulfillment of these requirements. The
Price Company employees covered by a collective bargaining agreement in the
State of California are not eligible for participation in this Plan.
CONTRIBUTIONS
Each year, participants may contribute from 1% to 15% 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).
The Company matches 50% of the employee's contribution, up to a maximum employer
matching contribution of $500. The Company may, at its discretion, make a
qualified nonelective contribution. In addition, for each plan year, the
Company may contribute a discretionary amount to the account of each participant
who is employed by the Company on the last day of the plan year. The
discretionary contribution may range from 3% to 10% of compensation based on
years of service.
PARTICIPANT ACCOUNTS
Each participant's account is credited with his or her contributions, employer
matching and discretionary contributions, and an allocation of plan earnings.
Allocations are based on participant account balances as defined. The benefit
to which a participant is entitled is the benefit that can be provided from the
participant's vested account.
<PAGE>
2
VESTING
Participants are immediately vested in their contributions and any qualified
nonelective contributions, plus actual earnings thereon. Vesting in the
employer matching and discretionary contributions is based on years of
continuous service, according to the following schedule:
<TABLE>
<CAPTION>
Years of Service Percentage Vested
---------------- -----------------
<S> <C>
Less than 2 0%
2-3 10
3-4 25
4-5 50
5 or more 100
</TABLE>
FORFEITURES
During 1997, forfeitures of approximately $1,120,000 were used to reduce the
employer contributions to the Plan. Forfeitures can be restored to a
participant's account if the participant is re-employed by the Company prior to
the expiration of five consecutive breaks in service and repays the full dollar
amount distributed because of the termination within five years of the
reemployment date. As of December 31, 1997, forfeitures of approximately
$714,000 had not been used to reduce employer contributions. These forfeitures
will be used to offset future employer contributions.
INVESTMENT OPTIONS
Upon enrollment in the Plan, a participant may direct contributions in any of
the seven investment options listed below. T. Rowe Price acts as trustee for
all investments, serves as investment manager for all funds and provides record
keeping of all participant accounts. Funds may be temporarily invested in a
cash account.
Stable Value Fund -- Funds are invested primarily in high-quality insurance
company and bank-issued investment contracts.
Equity Income Fund -- Funds are invested in common stocks of established
companies that pay above-average dividends and have prospects of future
dividend increases.
Spectrum Income Fund -- Funds are invested in a managed mix of funds
including four domestic bond funds, an international bond fund, a money
market fund and an income-oriented stock fund.
Spectrum Growth Fund -- Funds are invested in a managed mix of funds,
including five U.S. stock funds, an international stock fund and a money
market fund.
New Horizons Fund -- Funds are invested in common stock of rapidly growing
companies in a broad range of industries.
Mid-Cap Growth Fund - Funds are invested in stock of companies with
medium-sized market capitalization that have attractive growth prospects
and established operating histories.
Costco Companies, Inc. Common Stock Fund -- Funds are invested in common
stock of the Company.
<PAGE>
3
Participants may change their investment options daily.
UNIT ACCOUNTING
All contributions to a participant's account and the participant's account
balance are reflected in units of each fund selected or shares of Costco
Companies, Inc. common stock. As of December 31, 1997 and 1996, units held by
the Plan were as follows:
<TABLE>
<CAPTION>
Units/Shares Held at Units/Shares held at
Description of Asset December 31, 1997 December 31, 1996
-------------------- -------------------- ---------------------
<S> <C> <C>
Stable Value Fund 60,285,173 47,323,062
Equity Income Fund 3,226,066 2,388,188
Spectrum Income Fund 5,300,638 5,775,164
Spectrum Growth Fund 4,634,631 3,614,568
New Horizons Fund 293,823 --
Mid-Cap Growth Fund 361,997 --
Costco Companies, Inc.
Common Stock 2,634,491 2,170,687
</TABLE>
DISTRIBUTIONS
Upon termination of employment, death or total disability, the vested interest
in a participant's account is distributed in a lump sum. Participants may apply
for a distribution of all or a portion of the vested interest at any time after
attainment of 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 one-year period.
PARTICIPANT LOANS
Effective July 1, 1997, a participant may borrow the lesser of $50,000 or 45%
of his or her vested account balance (including participant pre-tax and
Company matching contributions, excluding the Company discretionary
contribution balance), with a minimum loan of $1,000. Loans are payable
through payroll deductions over a period ranging up to 180 months, depending
on the purpose of the loan. The interest rate is determined by the plan
administrator based on prevailing market conditions. The rates at December
31, 1997 were either 9.5% or 10.5%, depending on the type of loan.
PLAN ADMINISTRATOR
The Plan is administered by the Benefits Committee ("the Committee"), which is
appointed by the Board of Directors of the Company.
ADMINISTRATIVE EXPENSES
All administrative and custodial fees of the Plan are paid by the Company. All
investment management and transaction fees directly related to the plan
investments are shown as a reduction of net investment results.
<PAGE>
4
2. SIGNIFICANT ACCOUNTING POLICIES:
BASIS OF ACCOUNTING
The financial statements of the Plan are prepared under the accrual method of
accounting.
USE OF ESTIMATES
The preparation of financial statements requires the use of estimates. Actual
results could differ from those estimates.
INVESTMENT VALUATION AND INCOME RECOGNITION
Investments are stated at fair value. Registered investment company funds and
Costco Companies, Inc. common stock are valued using the closing price of the
investments on the last day of business of the plan year.
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 (depreciation) in fair value of assets
includes the change in the fair value of assets from one period to the next, and
realized gains and losses, and is computed using the moving average method.
PAYMENT OF BENEFITS
Benefits are recorded when paid.
3. PLAN TERMINATION:
Although it has not expressed any 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. In the event of plan termination,
participants will become 100% vested in their accounts.
4. TAX STATUS:
The IRS has informed the Company, by a letter dated November 29, 1996, that the
Plan is designed in accordance with applicable sections of the Internal Revenue
Code. The Plan has been amended subsequent to receiving a determination letter.
The plan administrator and the Plan's counsel believe that the Plan is currently
designed and is being operated in compliance with the applicable requirements of
the IRS.
<PAGE>
SCHEDULE I
COSTCO
401(k) RETIREMENT PLAN
EIN: 33-0572969
PIN: 002
ITEM 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AS OF DECEMBER 31, 1997
<TABLE>
<CAPTION>
Identity of Party Involved/
Description of Investments Cost Current Value
- ------------------------------------------ ------------ ----------------
<S> <C> <C>
*T. Rowe Price:
Cash and cash equivalents $ 56,916 $ 56,916
Stable Value Fund 60,285,173 60,285,173
Equity Income Fund 75,944,088 84,103,540
Spectrum Income Fund 59,582,240 61,805,443
Spectrum Growth Fund 71,736,216 73,829,666
New Horizons Fund 6,567,441 6,846,070
Mid-Cap Growth Fund 9,337,299 10,353,107
*Costco Companies, Inc. common stock 75,551,184 117,564,146
*Participant loans, with interest rates of
9.5% or 10.5% 13,529,202 13,529,202
------------ ------------
$372,589,759 $428,373,263
------------ ------------
------------ ------------
</TABLE>
*Represents a party in interest.
The accompanying notes are an integral part of this schedule.
<PAGE>
SCHEDULE II
COSTCO
401(k) RETIREMENT PLAN
EIN: 33-0572969
PIN 002
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1997
CATEGORY (III) -- SERIES OF TRANSACTIONS IN EXCESS OF 5% OF PLAN ASSETS AT
BEGINNING OF YEAR
<TABLE>
<CAPTION>
Costco
Companies,
Stable Equity Spectrum Spectrum Inc.
Value Income Income Growth Common
Fund Fund Fund Fund Stock
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
PURCHASES:
Number of transactions 92 135 55 95 145
Purchase price $33,188,873 $30,571,949 $ 8,669,078 $24,990,917 $35,250,926
SALES:
Number of transactions 162 119 196 158 109
Sale price $20,244,052 $10,118,914 $14,015,721 $ 9,045,951 $21,939,806
Cost of asset 20,244,052 8,464,208 12,861,577 7,715,605 17,778,847
----------- ----------- ----------- ----------- -----------
Gain $ -- $ 1,654,706 $ 1,154,144 $ 1,330,346 $ 4,160,959
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
</TABLE>
There were no category (i), (ii) or (iv) transactions.
The accompanying notes are an integral part of this schedule.
<PAGE>
EXHIBIT 99.1
ARTHUR ANDERSON LLP
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the incorporation of
our reports included in this Form 11-K, into the Company's previously filed
Registration Statement File No. 333-21093 on Form S-8.
/s/ Arthur Anderson LLP
Seattle, Washington
June 22, 1998
