Costco 2007 Annual Report Download - page 36

continue our review of expansion plans in our international operations, including the United Kingdom
and Asia, along with other international markets.
Additional Equity Investments in Subsidiaries and Joint Ventures
In each of fiscal years 2006 and 2005, we contributed an additional $15 million to our investment in
Costco Mexico (a 50%-owned joint venture), which did not impact our percentage ownership of this
entity, as our joint venture partner contributed a like amount. There were no such contributions in 2007.
Bank Credit Facilities and Commercial Paper Programs (all amounts stated in U.S. dollars)
A wholly-owned Canadian subsidiary has a $189.8 million commercial paper program ($180.9 million at
September 3, 2006) supported by a $113.9 million bank credit facility that expires in March 2008 ($54.2
million at September 3, 2006) with a Canadian bank, which we guarantee. At September 2, 2007 and
September 3, 2006, no amounts were outstanding under the Canadian commercial paper program or
the bank credit facility. Applicable interest rates on the credit facility at September 2, 2007, and
September 3, 2006 were 5.00% and 4.65%, respectively. At September 2, 2007, standby letters of
credit totaling $24.1 million issued under the bank credit facility left $89.8 million available for
commercial paper support. At September 3, 2006, standby letters of credit totaling $20.8 million issued
under the bank credit facility left $33.4 million available for commercial paper support.
Our wholly-owned Japanese subsidiary has a short-term $38.7 million bank line of credit ($12.8 million
at September 3, 2006) that expires in February 2008. At September 2, 2007 and September 3, 2006,
$10.3 million and $2.5 million, respectively, were borrowed under the line of credit, and $8.6 million and
$4.3 million, respectively, were used to support standby letters of credit. Applicable interest rates on
the credit facility at September 2, 2007 and September 3, 2006, were 1.09% and 0.94%, respectively.
A second $30.1 million bank line of credit also expires in February 2008. At September 2, 2007 and
September 3, 2006, $7.8 million and $0.9 million, respectively, were borrowed under the second
facility. Applicable interest rates on the second credit facility at September 2, 2007 and September 3,
2006, were 1.10% and 0.95%, respectively.
Our Korean subsidiary has a short-term $12.8 million bank line of credit ($12.5 million at September 3,
2006) which expires in March 2008. At September 2, 2007 and September 3, 2006, no amounts were
borrowed under the line of credit and $2.0 million in both years was used to support standby letters of
credit. Applicable interest rates on the credit facility at September 2, 2007 and September 3, 2006 were
6.09% and 5.48%, respectively.
Our Taiwan subsidiary has a $6.1 million bank revolving credit facility ($5.2 million at September 3,
2006) and a $3.0 million bank overdraft facility, both expiring in January 2008. At September 2, 2007
and September 3, 2006, no amounts were borrowed under the credit facility and $1.2 million and $1.9
million, respectively, were used to support standby letters of credit. Applicable interest rates on the
credit facility at September 2, 2007 and September 3, 2006, were 4.50% and 4.00%, respectively. A
second $15.2 million bank revolving credit facility is in place, which expires in July 2008. At
September 2, 2007 and September 3, 2006, no amounts were borrowed under the second credit
facility and $4.2 million and $2.0 million, respectively, were used to support standby letters of credit.
Applicable interest rates on the credit facility at September 2, 2007 and September 3, 2006, were
4.44% and 4.00%, respectively. A third $9.1 million bank revolving credit facility is in place, which
expires in March 2008. At September 2, 2007 no amounts were borrowed under the third credit facility
and no amounts were used to support standby letters of credit. The applicable interest rate on the
credit facility at September 2, 2007 was 4.57%.
Our wholly-owned United Kingdom subsidiary has a $80.6 million bank revolving credit facility ($113.9
million at September 3, 2006) expiring in February 2010, a $70.5 million bank overdraft facility ($66.5
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