Costco 2010 Annual Report Download - page 73

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The following table summarizes RSU transactions during 2010:
Number of
Units
(in 000’s)
Weighted-Average
Grant Date Fair
Value
Non-vested at the end of 2009 ................... 8,531 $54.60
Granted ..................................... 3,419 55.94
Vested ...................................... (2,597) 54.15
Forfeited ..................................... (100) 54.71
Non-vested at the end of 2010 ................... 9,253 $55.22
Summary of Stock-Based Compensation
The following table summarizes stock-based compensation and the related tax benefits under the
Company’s plans:
2010 2009 2008
Restricted stock units ............................................ $171 $132 $ 97
Stock options .................................................. 19 49 69
Total stock-based compensation expense before income taxes ......... 190 181 166
Income tax benefit .............................................. (63) (60) (55)
Total stock-based compensation expense, net of income tax ........... $127 $121 $111
The remaining unrecognized compensation cost related to non-vested RSUs and stock options at the
end of 2010, and the weighed-average period of time over which this cost will be recognized are as
follows:
Unrecognized
Compensation
Cost
Weighted Average
Period of Time
(in years)
RSUs ........................................... $359 3.1
Options .......................................... $ 1 0.1
Note 8—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 deferrals 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 discretionary 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 deferrals 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. Certain other foreign operations have defined
benefit and contribution plans that are not significant. Amounts expensed under all plans were $313,
$287, and $272 for 2010, 2009, and 2008, respectively.
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