Costco 2000 Annual Report Download - page 33

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COSTCO WHOLESALE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(dollars in thousands, except per share data)
Note 6ÌIncome Taxes (Continued)
The components of the deferred tax assets and liabilities are as follows:
September 3, August 29,
2000 1999
Accrued liabilities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $118,385 $118,912
Deferred membership fees ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 108,331 78,151
Other ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 7,414 15,589
Total deferred tax assetsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 234,130 212,652
Property and equipment ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 98,149 52,795
Merchandise inventories ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 37,063 42,551
Other ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 297 10,684
Total deferred tax liabilities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 135,509 106,030
Net deferred tax assetsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 98,621 $106,622
The deferred tax accounts at September 3, 2000 and August 29, 1999 include current deferred income tax
assets of $179,007 and $164,839, respectively, and non-current deferred income tax liabilities of $80,386 and
$58,217, respectively. Current deferred income tax assets are included in other current assets.
Note 7ÌCommitments and Contingencies
Legal Proceedings
The Company is involved from time to time in claims, proceedings and litigation arising from its business
and property ownership. The Company does not believe that any such claim, proceeding or litigation, either
alone or in the aggregate, will have a material adverse eÅect on the Company's Ñnancial position or results of
its operations.
Note 8ÌSegment Reporting
In Ñscal 1999, the Company adopted SFAS No. 131, ""Disclosures about Segments of an Enterprise and
Related Information,'' which established reporting and disclosure standards for an enterprise's operating
segments. Operating segments are deÑned as components of an enterprise for which separate Ñnancial
information is available and regularly reviewed by the Company's senior management.
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