COST Financial_Report

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Unformatted text preview: y genera lly recogniz es sa les, which include shipping fees where a pplica ble, net of estima ted returns, a t the time the member ta kes possession of mercha ndise or receives services. When the Compa ny collects pa yments from customers prior to the tra nsfer of ownership of mercha ndise or the performa nce of services, the a mounts received a re genera lly recorded a s deferred sa les, included in other current lia bilities on the consolida ted ba la nce sheets, until the sa le or service is completed. The Compa ny reserves for estima ted sa les returns ba sed on historica l trends in mercha ndise returns, net of the estima ted net rea liz a ble va lue of mercha ndise inventories to be returned a nd a ny estima ted disposition costs. Amounts collected from members, which under common tra de pra ctices a re referred to a s sa les ta xes, a re recorded on a net ba sis.</font></p> <p style=3D'MARGIN-TOP: 12px &#xA0 <p style=3D'MARGIN-TOP: 12px <font style=3D'FONT-FAMILY: ARIAL' siz e=3D2>The Compa ny eva lua tes whether it is a ppropria te to record the gross a mount of mercha ndise sa les a nd rela ted costs or the net a mount ea rned a s commissions. Genera lly, when Costco is the prima ry obligor, is subject to inventory risk, ha s la titude in esta blishing prices a nd selecting suppliers, ca n influence product or serv P age 2 MARGIN-BOTTOM: 0px' a lign=3Djustify> s investments a re in debt securities.</font></p> MARGIN-BOTTOM: 0px </p> MARGIN-BOTTOM: 0px'><font style=3D'FONT-FAMILY: ARIAL' siz e=3D2><i>Fa ir Va lue of Fina ncia l FONT-SIZ E: 1px'> MARGIN-BOTTOM: 0px' a lign=3Djustify> s fina ncia l instruments, including ca sh a nd ca sh s investments, deriva tive instruments, a nd fixed-ra te MARGIN-BOTTOM: 0px' a lign=3Djustify> MARGIN-BOTTOM: 0px MARGIN-LEFT: 4 % ' a lign=3Djustify><font style=3D'FONT-FAMILY: ARIAL' siz e=3D2>Level 1: MARGIN-BOTTOM: 0px MARGIN-LEFT: 4 % ' a lign=3Djustify><font style=3D'FONT-FAMILY: ARIAL' siz e=3D2>Level 2: MARGIN-BOTTOM: 0px MARGIN-LEFT: 4 % ' a lign=3Djustify><font style=3D'FONT-FAMILY: ARIAL' siz e=3D2>Level 3: MARGIN-BOTTOM: 0px' a lign=3Djustify> s consensus pricing,&#x201D using ma rket prices from a va riety MARGIN-BOTTOM: 0px' a lign=3Djustify> MARGIN-BOTTOM: 0px' a lign=3Djustify> s s long-term fina ncia l MARGIN-BOTTOM: 0px'><font style=3D'FONT-FAMILY: ARIAL' siz e=3D2><i>Receiva bles, Net</i></font></p> MARGIN-BOTTOM: 0px' a lign=3Djustify> MARGIN-BOTTOM: 0px </p> </font></td> &#xA0 FONT-SIZ E: 12px'> </font></td> ARIAL' siz e=3D1><b>2012</b></font></td> </font></td> </font></td> ARIAL' siz e=3D1><b>2011</b></font></td> </font></td> MARGIN-LEFT: 1em'><font style=3D'FONT-FAMILY: ARIAL' siz e=3D2>Vendor receiva bles</font></p> &#xA0 </font></td> &#xA0 </font></td> </font></t...
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