Income Taxes

6 Months Ended

Feb. 12, 2012

Income Taxes [Abstract]

Income Taxes

Note 7—Income Taxes

The Company's reported effective tax rates for the 24 weeks ended February 12, 2012 and February 13, 2011 were 37.3%, and 34.9%, respectively, in the accompanying condensed consolidated statements of income, which includes the net impact of discrete items. The Company's current year consolidated provision for income taxes was adversely impacted by a net discrete tax expense of $26 relating primarily to two items: the adverse impact of an audit of Costco Mexico by the Mexican tax authority and the tax effects of nondeductible expenses for the Company's contribution to an initiative reforming alcohol beverage laws in Washington State.

The Company is currently evaluating options for seeking a refund of some or all of the taxes paid or payable to the Mexican tax authority relating to the tax audit. However, the Company's ability to prevail in obtaining a refund of the amounts paid or payable to the Mexican tax authority is subject to significant uncertainty.