Costco 2008 Annual Report Download - page 22

Download and view the complete annual report

Please find page 22 of the 2008 Costco annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 92

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92

PROPERTIES
Warehouse Properties
At August 31, 2008, Costco operated 512 membership warehouses:
NUMBER OF WAREHOUSES
Own Land
and Building
Lease Land
and/or
Building(1) Total
United States .................................... 314 84 398
Canada ........................................ 66 9 75
United Kingdom .................................. 18 2 20
Japan .......................................... 1 7 8
Korea .......................................... 3 3 6
Taiwan ......................................... 0 5 5
Total ....................................... 402 110 512
(1) 70 of the 110 leases are land-leases only, where Costco owns the building.
The following schedule shows warehouse openings (net of closings) by region for the past five fiscal
years and expected warehouse openings (net of closings) through December 31, 2008:
Openings by Fiscal Year United States Canada
Other
International Total
Total Warehouses
in Operation
2004 and prior .................... 327 63 27 417 417
2005 ............................ 11 2 3 16 433
2006 ............................ 20 3 2 25 458
2007 ............................ 25 3 2 30 488
2008 ............................ 15 4 5 24 512
2009 (expected through 12/31/08) .... 5 1 1 7 519
Total ........................ 403 76 40 519
The 31 warehouses operated by Costco Mexico, under our oversight, at the end of 2008 are not
included in the above tables.
At the end of 2008, our warehouses contained approximately 72.7 million square feet of operating floor
space: 57.2 million in the United States, 10.2 million in Canada and 5.3 million in other international
locations, excluding Mexico.
Administration and Merchandise Distribution Properties
Our executive offices are located in Issaquah, Washington and occupy approximately 402,000 square
feet. We operated eight regional offices in the United States, two regional offices in Canada and four
regional offices internationally at the end of 2008, containing approximately 349,000 square feet.
Additionally, we operate regional cross-docking facilities (depots) for the consolidation and distribution
of most shipments to the warehouses, and various processing, packaging, and other facilities to
support ancillary and other businesses. At the end of 2008, we operated eleven depots in the United
States, three in Canada and two internationally, excluding Mexico, consisting of approximately
6.6 million square feet.
20