Costco 2011 Annual Report Download - page 74
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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 defined contribution plans that are not material. Amounts expensed under all plans were
$345, $313, and $287 for 2011, 2010, and 2009, respectively, and were included in selling, general
and administrative expenses and merchandise costs on the consolidated statements of income.
Note 9—Income Taxes
Income before income taxes is comprised of the following:
2011 2010 2009
Domestic (including Puerto Rico) ................... $1,526 $1,426 $1,426
Foreign ........................................ 857 628 301
Total ....................................... $2,383 $2,054 $1,727
The provisions for income taxes for 2011, 2010, and 2009 are as follows:
2011 2010 2009
Federal:
Current ..................................... $409 $445 $396
Deferred .................................... 74 1 67
Total federal ............................. 483 446 463
State:
Current ..................................... 78 79 66
Deferred .................................... 14 5 12
Total state .............................. 92 84 78
Foreign:
Current ..................................... 270 200 94
Deferred .................................... (4) 1 (7)
Total foreign ............................. 266 201 87
Total provision for income taxes .................... $841 $731 $628
Tax benefits associated with the exercise of employee stock options and other employee stock
programs were allocated directly to equity attributable to Costco in the amount of $59, $15, and $2, in
2011, 2010, and 2009, respectively.
The reconciliation between the statutory tax rate and the effective rate for 2011, 2010, and 2009 is as
follows:
2011 2010 2009
Federal taxes at statutory rate .............. $834 35.0% $718 35.0% $604 35.0%
State taxes, net .......................... 55 2.4 56 2.7 48 2.8
Foreign taxes, net ........................ (66) (2.8) (38) (1.9) (24) (1.4)
Other ................................... 18 0.7 (5) (0.2) 0 0
Total ............................... $841 35.3% $731 35.6% $628 36.4%
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