Costco 1998 Annual Report Download - page 29

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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: 175D / 240D Foot: 0D/ 0D VJ R Seq: 7 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 2—Debt (Continued)
The weighted average borrowings, highest borrowings and interest rate under all short-term borrow-
ing arrangements were as follows for fiscal 1998 and 1997:
Average Amount Weighted Average
Maximum Amount Outstanding Interest Rate
Category of Aggregate Outstanding During the During the
Short-Term Borrowings During the Period Period Period
Period ended August 30, 1998
Bank borrowings:
U.S. ..................... $ — $ — — %
Canadian ................. 5,399 215 6.85
Commercial Paper:
U.S. ..................... — — —
Canadian ................. 34,390 5,841 3.61
Period ended August 31, 1997
Bank borrowings:
U.S. ..................... $ — $ — — %
Canadian ................. 10,169 732 5.74
Commercial Paper:
U.S. ..................... 279,000 85,140 5.54
Canadian ................. 100,716 52,486 3.43
The Company has separate letter of credit facilities (for commercial and standby letters of credit)
totaling approximately $317,000. The outstanding commitments under these facilities at August 30, 1998
totaled approximately $212,000, including approximately $50,000 in standby letters for workers’ compensa-
tion requirements.
Long-term Debt
Long-term debt at August 30, 1998 and August 31, 1997:
1998 1997
71⁄8% Senior Notes due June 2005 ..................... $300,000 $300,000
31⁄2% Zero Coupon convertible subordinated notes due
August 2017 ................................... 466,082 450,207
Unsecured note payable to banks due April 2001 .......... 140,000 140,000
Notes payable secured by trust deeds on real estate ........ 13,667 16,327
Capital lease obligations and other ..................... 21,030 19,426
940,779 925,960
Less current portion (included in other current liabilities) .... 10,744 8,959
Total long-term debt ............................... $930,035 $917,001
The Company issued $300,000 of 71⁄8% Senior Notes in fiscal 1995. Interest on the notes is payable
semiannually on June 15 and December 15. The indentures contain certain limitations on the Company’s
27
9 C Cs: 55002