Costco 2013 Annual Report Download - page 72

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70
to violate provisions of the California Health and Safety Code and the Business and Professions Code
through the use of certain spill clean-up materials at its gasoline stations. In July 2013, the matter was settled
with, among other things, payment of an immaterial sum to the County of San Diego as partial reimbursement
for costs incurred in the matter.
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. The State of Washington
conducted such an examination on its own behalf and on February 4, 2011 issued an assessment. The
Company filed suit to contest the assessment. In November 2012 the matter was settled for an amount that
was immaterial and less than the amount of the assessment.
The Company has received from the Drug Enforcement Administration subpoenas and administrative
inspection warrants concerning the Company's fulfillment of prescriptions related to controlled substances
and related practices. The Company is seeking to cooperate with these processes.
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.