Costco 2001 Annual Report Download - page 37

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COSTCO WHOLESALE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(dollars in thousands, except per share data)
Note 6—Income Taxes (Continued)
The components of the deferred tax assets and liabilities are as follows:
September 2, September 3,
2001 2000
Accrued liabilities .............................. $136,987 $118,385
Deferred membership fees ........................ 111,391 108,331
Other ....................................... 17,776 7,414
Total deferred tax assets ........................ 266,154 234,130
Property and equipment .......................... 127,243 98,149
Merchandise inventories .......................... 40,601 37,063
Other ....................................... 40,976 297
Total deferred tax liabilities ...................... 208,820 135,509
Net deferred tax assets ........................... $ 57,334 $ 98,621
The deferred tax accounts at September 2, 2001 and September 3, 2000 include current deferred
income tax assets of $160,662 and $179,007, respectively, and non-current deferred income tax liabilities of
$103,328 and $80,386, respectively. Current deferred income tax assets are included in other current assets.
Note 7—Commitments 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 effect on the Company’s financial
position or results of its operations.
Note 8—Segment Reporting
The Company and its subsidiaries are principally engaged in the operation of membership warehouses
in the United States, Canada, Japan and through majority-owned subsidiaries in the United Kingdom,
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