Costco 2008 Annual Report Download - page 46

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term debt included: $67.1 million principal amount at maturity of 3.5% Zero Coupon Convertible
Subordinated Notes carried at $49.1 million; $900.0 million of 5.3% Senior Notes carried at $898.3
million; and $1.10 billion of 5.5% Senior Notes carried at $1.09 billion and additional notes and capital
lease obligations totaling $142.0 million. Additionally, our variable rate long-term debt included a 0.35%
over Yen Tibor (6-month) Term Loan of $27.6 million. Fluctuations in interest rates may affect the fair
value of the fixed-rate debt and may affect the interest expense related to the variable rate debt.
Most transactions of our foreign subsidiaries are conducted in local currencies, limiting our exposure to
changes in currency rates. The majority of the forward foreign exchange contracts were entered into by
our wholly-owned United Kingdom subsidiary, primarily to hedge U.S. dollar merchandise inventory
purchases. We periodically enter into short-term forward foreign exchange contracts to hedge the
impact of fluctuations in foreign currency rates on inventory purchases. The notional value of foreign
exchange contracts outstanding at the end of 2008 was $89.8 million.
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
A list of Directors and nominees for Director is included in Costco’s Proxy Statement for its Annual
Meeting of Shareholders to be held on January 28, 2009. A list of the names and positions of the
Directors, as well as the Executive and Senior Officers of the Company, appears on page 87 of this
report. The following is a list of the names and positions of the executive officers of the Company.
Name Position With Company
Executive
Officer
Since Age
James D. Sinegal ...... President and Chief Executive Officer. Mr. Sinegal is a co-
founder of the Company and has been a director since its
inception.
1983 72
Jeffrey H. Brotman ..... Chairman of the Board. Mr. Brotman is a co-founder of the
Company and has been a director since its inception.
1983 66
Richard D. DiCerchio .... Sr.Executive Vice President, Chief Operating Officer,
Global Operations, Distribution and Construction,
Manufacturing and Ancillary Businesses. Mr. DiCerchio
has been a Senior Executive Vice President of the
Company since 1997. During 2004 Mr. DiCerchio
assumed the responsibilities of Global Operations and
Manufacturing and Ancillary Businesses and relinquished
the role over Merchandising, which he had held since
August 1994.
1986 65
Richard A. Galanti ...... Executive Vice President and Chief Financial Officer. 1993 52
W. Craig Jelinek ....... Executive Vice President, Chief Operating Officer,
Merchandising. Mr. Jelinek has been Executive Vice
President, Chief Operating Officer, Merchandising since
February 2004. Prior to that date he was Executive Vice
President, Chief Operating Officer—Northern Division.
1995 56
Paul G. Moulton ........ Executive Vice President, Real Estate Development. 2001 57
Joseph P. Portera ...... Executive Vice President, Chief Operating Officer, Eastern
and Canadian Divisions.
1994 55
44