It is still alive but barely :-) And the prognosis doesn't look good. All that bark discoloration is an indication that something internal with the tree is not functioning as it should.

What might be the cause of this is impossible to tell just from the pics. Sometimes Costco bargains are not really bargains at all - they could be seriously root bound, they might be carrying pathogens that trees from a reputable grower may not have, they may not have been transported or stored under favorable conditions.......the list goes on.

Does Costco have any sort of warranty on its plants? If so, I wouldn't hesitate to return it for a refund/credit. Otherwise, you may just have to cut your losses.......I seriously doubt the tree will survive and if it should, it will always look misshapen and deformed from all that dieback.

And while I am a plant bargain hunter myself, I'd think twice about purchasing something with such a long term investment potential as a tree from anything other than a reputable plant nursery, great bargain or not.