Costco 2007 Annual Report Download - page 71

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The remaining unrecognized compensation cost related to non-vested RSUs at September 2, 2007,
was $200,445, and the weighed-average period of time over which this cost will be recognized is 4.1
years. The remaining unrecognized compensation cost related to unvested stock options at
September 2, 2007, was $139,880, and the weighted-average period of time over which this cost will
be recognized is 2.2 years.
Note 7—Retirement Plans
The Company has a 401(k) Retirement Plan that is available to all U.S. employees who have
completed 90 days of employment. For all U.S. employees, with the exception of California union
employees, the plan allows pre-tax deferral against which the Company matches 50% of the first one
thousand dollars of employee contributions. In addition, the Company provides each eligible participant
an annual contribution based on salary and years of service.
California union employees participate in a defined benefit plan sponsored by their union. The
Company makes contributions based upon its union agreement. For all the California union
employees, the Company sponsored 401(k) plan currently allows pre-tax deferral against which the
Company matches 50% of the first five hundred dollars of employee contributions. In addition, the
Company will provide each eligible participant a contribution based on hours worked and years of
service.
The Company has a defined contribution plan for Canadian and United Kingdom employees and
contributes a percentage of each employee’s salary. The Company complies with government
requirements related to retirement benefits for other international operations and accrues expenses
based on a percentage of each employee’s salary as appropriate.
Amounts expensed under all plans were $238,826, $233,595 and $191,651 for fiscal 2007, 2006 and
2005, respectively. The Company has defined contribution 401(k) and retirement plans only, and thus
has no liability for post-retirement benefit obligations.
Note 8—Income Taxes
Income before income taxes is comprised of the following:
2007 2006 2005
Domestic (including Puerto Rico) ........ $1,374,372 $1,433,954 $1,225,741
Foreign ............................. 335,619 317,463 323,221
Total ............................ $1,709,991 $1,751,417 $1,548,962
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