Costco 2008 Annual Report Download - page 38

Download and view the complete annual report

Please find page 38 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

Additional Equity Investments in Subsidiaries and Joint Ventures
The Company’s investments in the Costco Mexico joint venture and in other unconsolidated joint ventures
that are less than majority owned are accounted for under the equity method. In 2006, 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 2008 and 2007.
Bank Credit Facilities and Commercial Paper Programs (all amounts stated in thousands, in U.S.
dollars)
Credit Line Usage at
August 31, 2008
Entity
Credit Facility
Description
Expiration
Date
Total of
all Credit
Facilities
Stand-by
LC &
Letter of
Guaranty
Commercial
Letter of
Credit
Short
Term
Borrowing
Available
Credit
Applicable
Interest
Rate
U.S. ............... Uncommitted
Stand By
Letter of Credit
N/A $ 25,323 $25,323 $ — $ — $ — N/A
U.S. ............... Uncommitted
Commercial
Letter of Credit
N/A 160,000 — 45,463 — 114,537 N/A
Australia(1) ......... Guarantee Line N/A 8,622 2,656 — — 5,966 N/A
Canada(1, 3) ........ Multi-Purpose
Line
March-09 142,207 19,590 — 85,296 37,321 3.43%
Japan(1) ...........Revolving Credit February-09 32,187 — — 4,139 28,048 1.00%
Japan(1) ........... Bank Guaranty February-09 9,196 9,196 — — — N/A
Japan(1) ...........Revolving Credit February-09 32,187 — — 14,254 17,933 1.04%
Korea(1) ........... Multi-Purpose
Line
March-09 11,021 1,460 694 — 8,867 6.53%
Taiwan ............ Multi-Purpose
Line
January-09 15,853 4,772 2 — 11,079 4.50%
Taiwan ............ Multi-Purpose
Line
July-09 15,853 1,934 — — 13,919 4.59%
United Kingdom .....Revolving Credit February-10 73,144 — — — 73,144 5.67%
United Kingdom ..... Uncommitted
Money Market
May-09 36,572 — — 30,720 5,852 5.36%
United Kingdom ..... Overdraft Line May-09 64,001 — — — 64,001 6.00%
United Kingdom(2) . . . Letter of
Guarantee
N/A 3,651 3,651 — — — N/A
United Kingdom ..... Commercial
Letter of Credit
N/A 3,657 238 1,081 — 2,338 N/A
TOTAL ................... $633,474 $68,820 $47,240 $134,409 $383,005
(1) The U.S. Parent company, Costco Wholesale Corporation guarantees this entity’s credit facility.
(2) The letter of guarantee is fully cash-collateralized by the United Kingdom subsidiary.
(3) The amount shown for short-term borrowings under this facility is net of a note issue discount, which is excluded from
the available credit amount.
Note: We have letter of credit facilities (for commercial and standby letters of credit) totaling $238.9 million.
The outstanding commitments under these facilities at August 31, 2008 totaled $116.1 million, including
$68.8 million in standby letters of credit. For those entities with multi-purpose lines, any increase in either
letters of credit (standby and/or commercial) issuance and or short-term borrowing will result in a
corresponding decrease in available credit.
36