Costco 2006 Annual Report Download - page 20

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PROPERTIES
Warehouse Properties
At September 3, 2006, Costco operated 458 warehouse clubs: 358 in the United States (in 37 states
and Puerto Rico); 68 in Canada (in 9 Canadian provinces); 18 in the United Kingdom (15 in England; 3
in Scotland); 5 in Korea; 4 in Taiwan; and 5 in Japan. The following is a summary of owned and leased
warehouses by region:
Own Land
and Building
Lease Land
and/or
Building(1) Total
United States .................................... 281 77 358
Canada ........................................ 59 9 68
United Kingdom .................................. 16 2 18
Korea .......................................... 2 3 5
Taiwan ......................................... 0 4 4
Japan .......................................... 1 4 5
Total ....................................... 359 99 458
(1) 57 of the 99 leases are land leases only where Costco owns the building.
The following schedule shows warehouse openings (net of closings) by region for the past five fiscal
years and expected warehouse openings (net of closings) through December 31, 2006:
Openings by Fiscal Year United States Canada Other
International Total Total Warehouses
in Operation
2002 and prior ....................... 290 60 24 374 374
2003 ............................... 19 1 3 23 397
2004 ............................... 18 2 0 20 417
2005 ............................... 11 2 3 16 433
2006 ............................... 20 3 2 25 458
2007 (expected through 12/31/06) ....... 16 3 1 20 478
Total ........................... 374 71 33 478
At September 3, 2006, we operated 29 warehouses in Mexico (through a 50%-owned joint venture).
These warehouses are not included in the number of warehouses open in any period because the joint
venture is accounted for using the equity method, and its operations are not consolidated in our
financial statements.
At the end of fiscal 2006 our warehouses contained approximately 64.2 million square feet of operating
floor space: 50.7 million in the United States, 9.1 million in Canada and 4.4 million in other international
locations, excluding Mexico.
Administration and Distribution Properties
Our executive offices are located in Issaquah, Washington and occupy approximately 395,000 square
feet. We operated eight regional offices in the United States, two regional offices in Canada and four
regional offices internationally at the end of fiscal 2006, containing approximately 309,000 square feet.
Additionally, we operate regional cross-docking facilities (depots) for the consolidation and distribution
of most shipments to the warehouses, and various processing, packaging, and other facilities to
support ancillary and other businesses. At the end of fiscal 2006, we operated eleven depots in the
United States, three in Canada and two internationally, excluding Mexico, consisting of approximately
6.5 million square feet.
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