Costco 2007 Annual Report Download - page 72
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The provisions for income taxes for fiscal 2007, 2006 and 2005 are as follows:
2007 2006 2005
Federal:
Current .............................. $478,165 $442,039 $306,527
Deferred ............................. (74,105) (23,799) (48,070)
Total federal ...................... 404,060 418,240 258,457
State:
Current .............................. 81,352 67,959 75,063
Deferred ............................. (9,595) (7,806) (14,699)
Total state ........................ 71,757 60,153 60,364
Foreign:
Current .............................. 118,569 118,040 123,969
Deferred ............................. (9,089) (3,168) (1,866)
Total foreign ...................... 109,480 114,872 122,103
Tax benefits allocated to contributed capital .... 41,922 54,937 44,946
Total provision for income taxes .............. $627,219 $648,202 $485,870
The reconciliation between the statutory tax rate and the effective rate for fiscal 2007, 2006 and 2005
is as follows:
2007 2006 2005
Federal taxes at statutory
rate .................... $598,497 35.00% $612,996 35.00% $542,137 35.00%
State taxes, net ............ 42,480 2.48 42,338 2.42 39,193 2.53
Foreign taxes, net .......... (6,840) (0.40) 1,701 0.10 (15,506) (1.00)
Transfer pricing settlement . . . — — — — (54,155) (3.50)
Tax benefit on unremitted
earnings ................ (155) (0.01) (11,978) (0.68) (30,602) (1.98)
Translation gain on unremitted
earnings ................ — — 5,333 0.30 10,010 0.65
Other .................... (6,763) (0.39) (2,188) (0.13) (5,207) (0.33)
Total ................. $627,219 36.68% $648,202 37.01% $485,870 31.37%
The components of the deferred tax assets and liabilities are as follows:
September 2,
2007
September 3,
2006
Stock options .......................................... $ 87,700 $ 73,148
Deferred income/membership fees ........................ 51,876 69,704
Excess foreign tax credits ............................... 2,613 4,177
Accrued liabilities and reserves ........................... 356,850 237,079
Other ................................................ 20,739 23,578
Total deferred tax assets ............................ 519,778 407,686
Property and equipment ................................. 302,765 295,424
Merchandise inventories ................................ 109,237 95,868
Translation gain ....................................... 5,079 1,532
Total deferred tax liabilities ........................... 417,081 392,824
Net deferred tax assets ................................. $102,697 $ 14,862
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