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Note 8—Income Taxes
Income before income taxes is comprised of the following:
2014 2013 2012
Domestic
(
includin
g
Puerto Rico
)
...............................................................
$
2,145 $ 2,070
$1,809
Foreign ........................................................................................................... 1,052 981
958
Total .........................................................................................................
$
3,197
$
3,051
$
2,767
The provisions for income taxes for 2014, 2013, and 2012 are as follows:
2014 2013 2012
Federal:
Current .....................................................................................................
.
$
696
$
572
$
591
Deferred ..................................................................................................
.
(
105
)
16
12
Total fede ral .....................................................................................
.
591 588
603
State:
Current .....................................................................................................
.
107
109
100
Deferred ..................................................................................................
.
(
3
)
4
2
Total state .........................................................................................
.
104 113 102
Foreign:
Current .....................................................................................................
.
369
302
312
Deferred ..................................................................................................
.
45
(
13
)
(
17
)
Total for e i
g
n .....................................................................................
.
414 289
295
Total
p
rovision for income taxes .................................................................
.
$
1,109
$
990
$
1,000
Tax benefits associated with the exercise of employee stock options and other employee stock programs
were allocated to equity attributable to Costco in the amount of $84, $59, and $65, in 2014, 2013, and
2012, respectively.
The reconciliation between the statutory tax rate and the effective rate for 2014, 2013, and 2012 is as
follows:
2014 2013 2012
Federal taxes at statutor
y
rate ..........................................$ 1,119 35.0 % $1,068 35.0 %
$ 969 35.0%
State taxes, net .................................................................... 66 2.1 66 2.1
59 2.1
Foreign taxes, net ...............................................................
(
85
)
(
2.7
)
(
87
)
(
2.8
)
(
61
)
(
2.2
)
Employee stock ownership plan (ESOP) ........................
(
11
)
(
0.3
)
(
65
)
(
2.1
)
(
7
)
(
0.3
)
Other ..................................................................................... 20 0.6 8 0.2
40 1.5
Total ...............................................................................$1,109 34.7 % $ 990 32.4 %
$1,000 36.1%
62