Costco 2002 Annual Report Download - page 39

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in thousands, except per share data) (Continued)
Note 4—Stock Options (Continued)
The following table summarizes information regarding stock options outstanding at September 1, 2002
(number of options in thousands):
Options Outstanding Options Exercisable
Range of Prices Number
Remaining
Contractual
Life(1) Price(1) Number Price(1)
$6.66–$33.54 ............................... 14,979 5.13 $18.76 11,599 $15.82
$34.28–$36.91 .............................. 14,667 7.60 35.57 5,331 36.18
$38.79–$52.50 .............................. 13,315 8.51 41.30 2,913 43.80
42,961 7.02 $31.49 19,843 $25.40
(1) Weighted-average
At September 2, 2001 and September 3, 2000, there were 15,500 and 12,573 options exercisable at weighted
average exercise prices of $21.57 and $16.35, respectively.
Note 5—Retirement Plans
The Company has a 401(k) Retirement Plan that is available to all U.S. employees who have completed
90 days of employment, except California union employees. The plan allows pre-tax deferral against which the
Company matches 50% of the first one thousand dollars of employee contributions. In addition, the Company
will provide each eligible participant a contribution based on salary and years of service. The Company has a de-
fined contribution plan for Canadian and United Kingdom employees and contributes a percentage of each em-
ployee’s salary.
California union employees participate in a defined benefit plan sponsored by their union. The Company
makes contributions based upon its union agreement. The Company also sponsors a 401(k) plan for the Cal-
ifornia union employees. The plan currently allows pre-tax deferral against which the Company matches 50% of
the first four hundred dollars of employee contributions.
Amounts expensed under these plans were $127,189, $108,256, and $97,830 for fiscal 2002, 2001 and 2000,
respectively. The Company has defined contribution 401(k) and retirement plans only, and thus has no liability
for post-retirement benefit obligations under the SFAS No. 106 “Employer’s Accounting for Post-retirement
Benefits Other than Pensions.”
38