Costco 2001 Annual Report Download - page 36

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COSTCO WHOLESALE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(dollars in thousands, except per share data)
Note 5—Retirement Plans (Continued)
for the California union employees. The plan currently allows pre-tax deferral against which the Company
matches 50% of the first four hundred dollars of employee contributions.
Amounts expensed under these plans were $108,256, $97,830, and $85,974 for fiscal 2001, 2000, and
1999, respectively. The Company has defined contribution 401(k) and retirement plans only, and thus has
no liability for post-retirement benefit obligations under the SFAS No. 106 ‘‘Employer’s Accounting for
Post-retirement Benefits Other than Pensions.’’
Note 6—Income Taxes
The provisions for income taxes for fiscal 2001, 2000, and 1999 are as follows:
2001 2000 1999
Federal:
Current .............................. $285,460 $290,995 $259,104
Deferred ............................. 1,102 2,894 (70,248)
Total federal ........................... 286,562 293,889 188,856
State:
Current .............................. 55,484 57,753 54,701
Deferred ............................. (415) 2,072 (13,418)
Total state ............................. 55,069 59,825 41,283
Foreign:
Current .............................. 19,161 64,210 52,416
Deferred ............................. 40,600 3,034 (17,692)
Total foreign ........................... 59,761 67,244 34,724
Total provision for income taxes .............. $401,392 $420,958 $264,863(a)
(a) Total provision for income taxes includes a provision on income before the cumulative effect of
accounting change of $343,545 and a tax benefit of $78,682 resulting from the cumulative effect of
accounting change.
Reconciliation between the statutory tax rate and the effective rate for fiscal 2001, 2000, and 1999 is as
follows:
2001 2000 1999
Federal taxes at statutory rate .......... $351,218 35.00% $368,338 35.00% $231,756 35.00%
State taxes, net ..................... 35,824 3.57 40,202 3.82 28,870 4.36
Foreign taxes, net ................... 10,938 1.09 10,221 0.97 10,532 1.59
Other ............................ 3,412 0.34 2,197 0.21 (6,295) (0.95)
Provision at effective tax rate .......... $401,392 40.00% $420,958 40.00% $264,863 40.00%
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