Costco 2009 Annual Report Download - page 88

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four violations of the recordkeeping requirements of 40 C.F.R. § 82.166(k), (m) at warehouses in these
four states. The Company has responded to these allegations, is engaged in communications with the
Department about these and additional allegations made by letter dated September 10, 2009, and has
entered into a tolling agreement.
An Information Request, dated January 14, 2008, has also been received concerning a warehouse in
New Hampshire. Substantial penalties may be levied for violations of the Clean Air Act. In April 2008
the Company received an information request from the South Coast Air Quality Management District
concerning certain locations in Southern California. The Company has responded to that request. The
Company is cooperating with these inquiries and at this time cannot reasonably estimate any loss that
might arise from these matters.
The Company has received notices from most states stating that they have appointed an agent to
conduct an examination of the books and records of the Company to determine whether it has
complied with state unclaimed property laws. In addition to seeking the turnover of unclaimed property
subject to escheat laws, the states may seek interest, penalties, costs of examinations, and other relief.
Except where indicated otherwise above, a reasonable estimate of the possible loss or range of loss
cannot be made at this time for the matters described. The Company does not believe that any
pending claim, proceeding or litigation, either alone or in the aggregate, will have a material adverse
effect on the Company’s financial position; however, it is possible that an unfavorable outcome of some
or all of the matters, however unlikely, could result in a charge that might be material to the results of
an individual fiscal quarter.
86