Costco 2009 Annual Report Download - page 39

Entity
Credit Facility
Description
Expiration
Date
Total of
all Credit
Facilities
Credit Line Usage at
August 31, 2008
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 $ 25 $25 $— $ — $ — N/A
U.S. ................. Uncommitted
Commercial Letter
of Credit
N/A 160 — 45 — 115 N/A
Australia(1) ........... Guarantee Line N/A 9 3 — — 6 N/A
Canada(1, 3) .......... Multi-Purpose Line March-09 142 20 — 85 37 3.43%
Japan(1) ............. Revolving Credit February-09 32 — — 4 28 1.00%
Japan(1) ............. Bank Guaranty February-09 9 9 — — — N/A
Japan(1) ............. Revolving Credit February-09 32 — — 14 18 1.04%
Korea(1) ............. Multi-Purpose Line March-09 11 1 1 — 9 6.53%
Taiwan .............. Multi-Purpose Line January-09 16 5 — — 11 4.50%
Taiwan .............. Multi-Purpose Line July-09 16 2 — — 14 4.59%
United Kingdom ....... Revolving Credit February-10 73 — — — 73 5.67%
United Kingdom ....... Uncommitted
Money Market
May-09 37 — — 31 6 5.36%
United Kingdom ....... Overdraft Line May-09 64 — — — 64 6.00%
United Kingdom(2) ..... Letter of
Guarantee
N/A 4 4 — — — N/A
United Kingdom ....... Commercial Letter
of Credit
N/A 3 — 1 — 2 N/A
TOTAL ..................... $633 $69 $47 $134 $383
(1) This entity’s credit facility is guaranteed by the U.S. parent company, Costco Wholesale Corporation.
(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 credit facilities (for commercial and standby letters of credit) totaling $116 and $239 as of
August 30, 2009 and August 31, 2008, respectively. The outstanding commitments under these facilities at
August 30, 2009 and August 31, 2008, totaled $83 and $116, respectively, including $62 and $69,
respectively, in standby letters of credit. For those entities with multi-purpose lines, any issuance of either
letters of credit (standby and/or commercial) or short-term borrowings will result in a corresponding decrease
in available credit.
Financing Activities
In July 2009, we entered into a capital lease for a new warehouse building location and recorded a liability in
the amount of $72, representing the net present value of $150 in aggregate future minimum lease payments
at an imputed interest rate of 5.4%. This lease expires and becomes subject to a renewal clause in 2040. As
of August 30, 2009, $71 is included in long-term debt and $1 in the current portion of long-term debt in our
consolidated balance sheets. We have other minor capital lease obligations that amounted to $5 at the end
of 2009 and 2008.
In June 2008, our wholly-owned Japanese subsidiary entered into a ten-year term loan in the amount of $32,
with a variable rate of interest of Yen TIBOR (6-month) plus a 0.35% margin (0.95% and 1.24% at
August 30, 2009 and August 31, 2008, respectively) 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 and principal is due in June 2018.
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