Costco 2012 Annual Report Download - page 68

Note 8—Retirement Plans
The Company has a 401(k) Retirement Plan 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 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 are allowed to make pre-tax deferrals into the 401(k) plan which the
Company matches (50% of the first five hundred dollars of employee contributions) and provides each
eligible participant a contribution based on hours worked and years of service.
California union employees participate in a defined benefit plan sponsored by their union under a multi-
employer plan, and the Company makes contributions to this plan based upon its union agreement.
The Company’s contributions to this plan are not material to the Company’s consolidated financial
statements.
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
$382, $345, and $313 for 2012, 2011, and 2010, respectively, and were included in selling, general
and administrative expenses and merchandise costs in the accompanying consolidated statements of
income.
Note 9—Income Taxes
Income before income taxes is comprised of the following:
2012 2011 2010
Domestic (including Puerto Rico) ................... $1,809 $1,526 $1,426
Foreign ........................................ 958 857 628
Total ....................................... $2,767 $2,383 $2,054
The provisions for income taxes for 2012, 2011, and 2010 are as follows:
2012 2011 2010
Federal:
Current ..................................... $ 591 $409 $445
Deferred .................................... 12 74 1
Total federal ............................. 603 483 446
State:
Current ..................................... 100 78 79
Deferred .................................... 2 14 5
Total state .............................. 102 92 84
Foreign:
Current ..................................... 312 270 200
Deferred .................................... (17) (4) 1
Total foreign ............................. 295 266 201
Total provision for income taxes .................... $1,000 $841 $731
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