Costco 2002 Annual Report Download - page 35

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in thousands, except per share data) (Continued)
Note 2—Debt (Continued)
Short-Term Borrowings
The weighted average borrowings, highest borrowings and interest rate under all short-term borrowing ar-
rangements were as follows for fiscal 2002 and 2001:
Category of Aggregate
Short-term Borrowings
Maximum Amount
Outstanding
During the Fiscal Year
Average Amount
Outstanding
During the Fiscal Year
Weighted Average
Interest Rate
During the Fiscal Year
Fiscal year ended September 1, 2002
Bank borrowings:
Canadian ............................ $ 17,195 $ 351 4.14%
Other International ..................... 111,293 44,495 4.36
Commercial Paper:
U.S. ................................ 332,000 70,401 2.29
Fiscal year ended September 2, 2001
Bank borrowings:
Canadian ............................ $ 7,308 $ 439 6.97%
Other International ..................... 16,000 10,680 1.38
Commercial Paper:
U.S. ................................ 239,000 42,741 4.15
Long-term Debt
Long-term debt at September 1, 2002 and September 2, 2001:
2002 2001
7
1
⁄
8
% Senior Notes due June 2005 .......................... $ 307,787 $300,000
5
1
⁄
2
% Senior Notes due March 2007 ......................... 328,139 —
2.070% Promissory notes due October 2007 ................... 29,400 29,400
1.187% Promissory notes due July 2008 ...................... 25,200 25,200
3
1
⁄
2
% Zero Coupon convertible subordinated notes due
August 2017 .......................................... 506,883 489,659
Notes payable secured by trust deeds on real estate ............. 8,213 8,981
Capital lease obligations and other .......................... 12,600 22,830
1,218,222 876,070
Less current portion (included in other current liabilities) ........ 7,584 16,677
Total long-term debt ...................................... $1,210,638 $859,393
In June 1995, the Company issued $300,000 of 7
1
⁄
8
% Senior Notes due June 15, 2005. Interest on the notes
is payable semiannually on June 15 and December 15. The indentures contain certain limitations on the Compa-
ny’s and certain subsidiaries’ ability to create liens securing indebtedness and to enter into certain sale-leaseback
transactions. In November 2001, the Company entered into “fixed-to-floating” interest rate swap agreements that
replaced the fixed interest rate with a floating rate indexed to LIBOR.
In March 2002, the Company issued $300,000 of 5
1
⁄
2
% Senior Notes due March 15, 2007. Interest is pay-
able semi-annually on March 15 and September 15. Simultaneous with the issuance of the 5
1
⁄
2
% Senior Notes,
the Company entered into interest rate swap agreements converting the interest to a floating rate indexed to LI-
BOR. As of September 1, 2002, the Company was in compliance with all restrictive covenants.
34