Costco 2007 Annual Report Download - page 63

The Company’s wholly-owned Japanese subsidiary has a short-term $38,750 bank line of credit
($12,800 at September 3, 2006) that expires in February 2008. At September 2, 2007 and
September 3, 2006, $10,333 and $2,500 respectively, were borrowed under the line of credit, and
$8,611 and $4,300, 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 $30,139 bank line of credit also expires in February 2008. At September 2,
2007 and September 3, 2006, $7,750 and $900, 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.
The Company’s Korean subsidiary has a short-term $12,792 bank line of credit ($12,500 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 $2,011 and $2,000, 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 6.09% and 5.48%, respectively.
The Company’s Taiwan subsidiary has a $6,062 bank revolving credit facility ($5,200 at September 3,
2006) and a $3,031 bank overdraft facility both expiring in January 2008. At September 2, 2007 and
September 3, 2006, no amounts were outstanding under the credit facility or bank overdraft and $1,212
and $1,900, 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 $15,154 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 $4,167
and $2,000, 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 $9,093 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. Applicable interest rate on the credit facility at September 2, 2007 was 4.57%.
The Company’s wholly-owned United Kingdom subsidiary has a $80,560 bank revolving credit facility
($113,900 at September 3, 2006) expiring in February 2010, a $70,490 bank overdraft facility ($66,500
at September 3, 2006) renewable on a yearly basis in May 2008 and a $40,280 uncommitted money
market line entered into in February 2007 and renewable on a yearly basis beginning in May 2008. At
September 2, 2007, $20,140 was outstanding under the revolving credit facility with an applicable
interest rate of 6.23%, $15,609 was outstanding under the uncommitted line with an applicable interest
rate of 6.47% and no amounts were outstanding under the bank overdraft facility with an applicable
interest rate of 6.75%. At September 3, 2006, $38,000 was outstanding under the revolving credit
facility, with an applicable interest rate of 5.32%, and no amounts were outstanding under the bank
overdraft facility.
Letters of Credit
The Company has letter of credit facilities (for commercial and standby letters of credit) totaling
$474,920. The outstanding commitments under these facilities at September 2, 2007 and
September 3, 2006 totaled $119,074 and $84,900, respectively, including $71,734 and $54,900,
respectively, in standby letters of credit.
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