Costco 1998 Annual Report Download - page 28

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MERRILL CORPORATION NETWORK COMPOSITION SYSTEM CPICARD // 3-DEC-98 18:50 DISK004:[98SEA7.98SEA2097]DW2097A.;6
IMAGES:[PAGER.PSTYLES]MRLL.BST;4 pag$fmt:mrll.fmt Free: 1730D*/ 2480D Foot: 0D/ 0D VJ R Seq: 6 Clr: 0
COSTCO COMPANIES A/R (Y/E 8-31-98) Proj: P1826SEA98 Job: 98SEA2097 File: DW2097A.;6
Merrill/Seattle (206) 623-5606 Page Dim: 8.250N X 10.750NCopy Dim: 38. X 54.3
COSTCO COMPANIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(dollars in thousands, except per share data)
Note 1—Summary of Significant Accounting Policies (Continued)
Adoption of these accounting standards will not have a material impact on the Company’s consoli-
dated financial position, results of operations or cash flows, and any effect, while not yet determined by the
Company, will be primarily limited to the presentation of its disclosures.
Reclassifications
Certain reclassifications have been reflected in the financial statements in order to conform prior
years to the current year presentation.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates.
Note 2—Debt
Short-Term Borrowings
The Company has in place a $500,000 commercial paper program supported by a $500,000 bank credit
facility with a group of 9 banks, of which $250,000 expires on January 25, 1999, and $250,000 expires on
January 30, 2001. At August 30, 1998, no amounts were outstanding under the loan facility or the
commercial paper program.
In addition, a wholly-owned Canadian subsidiary has a $128,000 commercial paper program supported
by an $89,000 bank credit facility with three Canadian banks, which expires in March 1999. At August 30,
1998, no amounts were outstanding under the bank credit facility or the Canadian commercial paper
program.
The Company has agreed to limit the combined amount outstanding under the U.S. and Canadian
commercial paper programs to the $589,000 combined amounts of the respective supporting bank credit
facilities.
26
9 C Cs: 16955