Income Taxes (Tables)

12 Months Ended

Sep. 01, 2013

Income before income taxes is comprised of the following:



	2013		2012		2011
Domestic (including Puerto Rico)	$	2,070	$	1,809	$	1,526
Foreign	981		958		857
Total	$	3,051	$	2,767	$	2,383

The provisions for income taxes for 2013, 2012, and 2011 are as follows:



	2013			2012			2011
Federal:
Current	$	572		$	591		$	409
Deferred	16			12			74
Total federal	588			603			483
State:
Current	109			100			78
Deferred	4			2			14
Total state	113			102			92
Foreign:
Current	302			312			270
Deferred	(13		)	(17		)	(4		)
Total foreign	289			295			266
Total provision for income taxes	$	990		$	1,000		$	841

The reconciliation between the statutory tax rate and the effective rate for 2013, 2012, and 2011 is as follows:



	2013					2012					2011
Federal taxes at statutory rate	$	1,068		35.0	%	$	969		35.0	%	$	834		35.0	%
State taxes, net	66			2.1		59			2.1		55			2.4
Foreign taxes, net	(87		)	(2.8	)	(61		)	(2.2	)	(66		)	(2.8	)
Employee stock ownership plan (ESOP)	(65		)	(2.1	)	(7		)	(0.3	)	(6		)	(0.3	)
Other	8			0.2		40			1.5		24			1.0
Total	$	990		32.4	%	$	1,000		36.1	%	$	841		35.3	%

The components of the deferred tax assets (liabilities) are as follows:



	2013			2012
Equity compensation	$	80		$	79
Deferred income/membership fees	130			148
Accrued liabilities and reserves	530			461
Other	42			55
Property and equipment	(558		)	(522		)
Merchandise inventories	(190		)	(182		)
Net deferred tax assets	$	34		$	39

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits for 2013 and 2012 is as follows:



	2013			2012
Gross unrecognized tax benefit at beginning of year	$	116		$	106
Gross increases—current year tax positions	10			15
Gross increases—tax positions in prior years	5			3
Gross decreases—tax positions in prior years	(13		)	(3		)
Settlements	(38		)	(3		)
Lapse of statute of limitations	0			(2		)
Gross unrecognized tax benefit at end of year	$	80		$	116