Costco 2008 Annual Report Download - page 39

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Credit Line Usage at
September 2, 2007
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 $ 24,755 $24,755 $ — $ — $ — N/A
U.S. ................ Uncommitted
Stand By
Letter of Credit
N/A 210,000 — 46,952 — 163,048 N/A
Canada(1) .......... Revolving
Credit
March-08 113,874 24,122 — — 89,752 5.00%
Japan(1) ............ Revolving
Credit
February-08 38,750 8,611 — 10,333 19,806 1.09%
Japan(1) ............ Revolving
Credit
February-08 30,139 — — 7,750 22,389 1.10%
Korea(1) ............ Multi-Purpose
Line
March-08 12,792 1,623 388 — 10,781 6.09%
Taiwan ............. Multi-Purpose
Line
January-08 9,093 1,212 — — 7,881 4.50%
Taiwan ............. Revolving
Credit
July-08 15,154 4,167 — — 10,987 4.44%
Taiwan ............. Revolving
Credit
March-08 9,093 — — — 9,093 4.57%
United Kingdom ...... Revolving
Credit
February-10 80,560 — — 20,140 60,420 6.23%
United Kingdom ...... Uncommitted
Money Market
Line
May-08 40,280 — — 15,609 24,671 6.47%
United Kingdom ...... Overdraft Line May-08 70,490 — — — 70,490 6.75%
United Kingdom(2) . . . Letter of
Guarantee
N/A 7,243 7,243 — — — N/A
United Kingdom ...... Commercial
Letter of Credit
N/A 4,028 — — — 4,028 N/A
TOTAL ................. $666,251 $71,733 $47,340 $53,832 $493,346
(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.
Note: We have letter of credit facilities (for commercial and standby letters of credit) totaling $286.6 million.
The outstanding commitments under these facilities at September 2, 2007 totaled $119.1 million, including
$71.7 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.
Financing Activities
On June 16, 2008, our wholly-owned Japanese subsidiary entered into a ten-year term loan in the amount of
$27.6 million, with a variable rate of interest of Yen TIBOR (6-month) plus a 0.35% margin (1.24% at
August 31, 2008) on the outstanding balance. The net proceeds were used to repay the 1.187% Promissory
Notes due in July 2008 and for general corporate purposes. Interest is payable semi-annually in December
and June, with the first payment due in December 2008 and principal is due in June 2018.
On October 17, 2007, our wholly-owned Japanese subsidiary issued Promissory Notes through a private
placement in the amount of $59.8 million, bearing interest at 2.695%. Interest is payable semi-annually and
37