848

EXHIBIT H.7 Costco: Reorganized Deferred Taxes

$ million
As reported Reorganized
2017 2018 2019 2017 2018 2019
Deferred-tax assets Operating deferred-tax assets, net of liabilities
Equity compensation 109 72 74 Equity compensation 109 72 74
Deferred income/membership fees 167 136 180 Deferred income/membership fees 167 136 180
Foreign tax credit carryforward — — 65 Accrued liabilities and reserves 647 484 566
Accrued liabilities and reserves 647 484 566 Property and equipment (747) (478) (677)
Other 18 — — Merchandise inventories (252) (175) (187)
Total deferred-tax assets 941 692 885 Valuation allowance — — (76)
Operating deferred-tax assets, net of liabilities (76) 39 (120)
Valuation allowance — — (76)
Total net deferred-tax assets 941 692 809 Nonoperating deferred-tax assets, net of liabilities
Other assets 18 — —
Deferred-tax liabilities Foreign-branch deferreds — — (69)
Property and equipment (747) (478) (677) Other liabilities — (40) (21)
Merchandise inventories (252) (175) (187) Nonoperating deferred-tax assets, net of liabilities 18 (40) (90)
Foreign-branch deferreds — — (69)
Other — (40) (21) Tax loss carryforwards
Total deferred-tax liabilities (999) (693) (954) Foreign tax credit carryforward — — 65

Deferred-tax assets, net of liabilities (58) (1) (145) Deferred-tax assets, net of liabilities (58) (1) (145)