Income Taxes	6 Months Ended
Feb. 17, 2013
Income Taxes	Note 7—Income Taxes The Company’s reported effective income tax rates for the twelve and twenty-four weeks ended February 17, 2013, were 25.1% and 29.6%, respectively, compared to 34.2% and 37.3% for the twelve and twenty-four weeks ended February 12, 2012, respectively, in the accompanying condensed consolidated statements of income, which includes the net impact of discrete tax items. The Company’s current year effective tax rate was favorably impacted by discrete tax benefits of $72, primarily due to a $62 tax benefit in connection with the special cash dividend of $7 per share paid by the Company to employees, who through the Company’s 401(k) Retirement Plan, owned 22,600,000 shares of Company stock, through an Employee Stock Ownership Plan. Dividends paid on these shares are deductible for U.S. income tax purposes. The Company’s effective tax rate for the first half of 2012 was adversely impacted by a net discrete expense of $26 relating primarily to 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 contributions to an initiative reforming alcohol beverage laws in Washington State.

Income Taxes

6 Months Ended

Feb. 17, 2013

Note 7—Income Taxes

The Company’s reported effective income tax rates for the twelve and twenty-four weeks ended February 17, 2013, were 25.1% and 29.6%, respectively, compared to 34.2% and 37.3% for the twelve and twenty-four weeks ended February 12, 2012, respectively, in the accompanying condensed consolidated statements of income, which includes the net impact of discrete tax items. The Company’s current year effective tax rate was favorably impacted by discrete tax benefits of $72, primarily due to a $62 tax benefit in connection with the special cash dividend of $7 per share paid by the Company to employees, who through the Company’s 401(k) Retirement Plan, owned 22,600,000 shares of Company stock, through an Employee Stock Ownership Plan. Dividends paid on these shares are deductible for U.S. income tax purposes.

The Company’s effective tax rate for the first half of 2012 was adversely impacted by a net discrete expense of $26 relating primarily to 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 contributions to an initiative reforming alcohol beverage laws in Washington State.