Costco 2013 Annual Report Download - page 67

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65
Summary of Stock-Based Compensation
The following table summarizes stock-based compensation expense and the related tax benefits under the
Company’s plans:
2013 2012 2011
Stock-based compensation expense before income taxes . . . . . . . . . . . . . $285 $241 $207
Less recognized income tax benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (94) (79) (67)
Stock-based compensation expense, net of income taxes . . . . . . . . . . . . . $191 $162 $140
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 employees and contributes a percentage of
each employee’s salary. Certain Other International operations have defined benefit and defined contribution
plans that are not significant. Amounts expensed under all plans were $409, $382, and $345 for 2013, 2012,
and 2011, 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:
2013 2012 2011
Domestic (including Puerto Rico) . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,070 $1,809 $1,526
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 981 958 857
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,051 $2,767 $2,383