Costco 2011 Annual Report Download - page 37

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Credit Facility
Description
Expiration
Date
Credit Line Usage at
August 29, 2010
Applicable
Interest
RateEntity
Total of
all Credit
Facilities
Stand-by
Letter of
Credit
(LC) &
Letter of
Guaranty
Commercial
LC
Short-
Term
Borrowing
Available
Credit
U.S. ............ Uncommitted
Standby LC
N/A $ 22 $22 $— $ — $ — N/A
U.S. ............ Uncommitted
Commercial LC
N/A 50 — 9 — 41 N/A
Australia(1) ...... Guarantee Line N/A 9 — — — 9 N/A
Canada(1)(3) ..... Multi-Purpose
Line
N/A 28 16 — — 12 2.25%
Japan(1) ........ Revolving Credit March-11 41 — — 13 28 0.61%
Japan(1) ........ Bank Guaranty March-11 18 18 — — — N/A
Japan(1) ........ Revolving Credit February-11 41 — — 13 28 0.61%
Japan(2) ........ Commercial LC N/A 1 — — — 1 N/A
Korea(1) ........ Multi-Purpose
Line
March-11 10 2 — — 8 3.63%
Taiwan .......... Multi-Purpose
Line
January-11 22 5 — — 17 2.63%
Taiwan .......... Multi-Purpose
Line
July-11 16 3 — — 13 2.65%
United Kingdom . . Uncommitted
Money Market
Line
N/A 31 — — — 31 3.05%
United Kingdom . . Uncommitted
Overdraft Line
N/A 46 — — — 46 1.50%
United
Kingdom(2) ....
Letter of
Guarantee
N/A 3 3 — — — N/A
United Kingdom . . Commercial LC N/A 3 1 — — 2 N/A
TOTAL ................... $341 $70 $ 9 $26 $236
(1) The U.S. parent company, Costco Wholesale Corporation, guarantees this entity’s credit facility.
(2) Obligations under this facility are fully cash-collateralized by the subsidiary.
(3) The bank may cancel or restrict availability under this facility with 45-days written notice.
For those entities with multi-purpose lines, any issuance of either letters of credit or short-term
borrowings will result in a corresponding decrease in available credit. Our letter of credit facilities
consisted of the following at August 28, 2011 and August 29, 2010:
2011 2010
Total credit facilities for commercial and standby letter of credit ........ $138 $123
Outstanding commitments under these facilities(1) .................. 101 79
(1) Includes $79 and $70 of standby letters of credit at the end of 2011 and 2010, respectively.
Financing Activities
In March 2011, we reclassified our $900 5.3% Senior Notes due March 15, 2012, originally issued in
February 2007, to a current liability within the current portion of long-term debt within the consolidated
balance sheets to reflect its maturity of less than one year. Upon maturity, we intend to repay the
outstanding principal balance and associated interest with our existing liquidity sources of cash and
cash equivalents and short-term investments balances.
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