Costco 2009 Annual Report Download - page 38

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Expansion Plans
Our primary requirement for capital is the financing of land, building, and equipment costs for new and
remodeled warehouses. Capital is also required for initial warehouse operations and working capital. While
there can be no assurance that current expectations will be realized and plans are subject to change upon
further review, it is our current intention to spend approximately $1,300 during fiscal 2010 for real estate,
construction, remodeling, and equipment for warehouses and related operations. These expenditures are
expected to be financed with a combination of cash provided from operations and existing cash and cash
equivalents and short-term investments.
We plan to open approximately 16 to 18 new warehouses in 2010, including one to two relocations of
existing warehouses to larger and better located facilities.
Additional Equity Investments in Subsidiaries and Joint Ventures
Our 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. We did not make any capital contributions
to our investment in Costco Mexico (a 50%-owned joint venture) in 2009, 2008, or 2007.
Bank Credit Facilities and Commercial Paper Programs (all amounts stated in millions, in U.S. dollars)
Entity
Credit Facility
Description
Expiration
Date
Total of
all Credit
Facilities
Credit Line Usage at
August 30, 2009
Available
Credit
Applicable
Interest
Rate
Stand-by
LC &
Letter of
Guaranty
Commercial
Letter of
Credit
Short-
Term
Borrowing
U.S. ................. Uncommitted
Stand By
Letter of Credit
N/A $ 22 $22 $— $ — $ — N/A
U.S. ................. Uncommitted
Commercial Letter
of Credit
N/A 50 — 20 — 30 N/A
Australia(1) ........... Guarantee Line N/A 8 — — — 8 N/A
Canada(1) ............ Multi-Purpose Line March-10 28 18 — — 10 1.76%
Japan(1) ............. Revolving Credit February-10 37 — — 8 29 0.64%
Japan(1) ............. Bank Guaranty March-10 11 11 — — — N/A
Japan(1) ............. Revolving Credit February-10 37 — — 8 29 0.70%
Japan(2) ............. Commercial Letter
of Credit
N/A 1 — — — 1 N/A
Korea(1) ............. Multi-Purpose Line March-10 10 1 — — 9 3.75%
Taiwan .............. Multi-Purpose Line January-10 15 4 — — 11 2.50%
Taiwan .............. Multi-Purpose Line July-10 15 3 — — 12 2.59%
United Kingdom ....... Revolving Credit February-10 66 — — — 66 0.82%
United Kingdom ....... Uncommitted
Money Market
Line
N/A 33 — — — 33 3.05%
United Kingdom ....... Uncommitted
Overdraft Line
N/A 49 — — — 49 1.50%
United Kingdom(2) ..... Letter of
Guarantee
N/A 3 3 — — — N/A
United Kingdom ....... Commercial Letter
of Credit
N/A 3 — 1 — 2 N/A
TOTAL ..................... $388 $62 $21 $16 $289
(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 subsidiary.
36