Costco 2006 Annual Report Download - page 57

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On November 15, 2005, upon the expiration of the Company’s $150,000 bank credit facility in the U.S.
with a group of nine banks, the Company terminated its $500,000 commercial paper program. At
August 28, 2005, no amounts were outstanding under the commercial paper program and no amounts
were outstanding under the credit facility. The applicable interest rate on the credit facility at August 28,
2005, was 3.92%.
Letters of Credit
The Company has letter of credit facilities (for commercial and standby letters of credit), totaling
$399,900. The outstanding commitments under these facilities at September 3, 2006 and August 28,
2005 totaled $84,900 and $131,200, respectively, including $54,900 and $64,500, respectively, in
standby letters of credit.
Short-Term Borrowings
The weighted average borrowings, maximum borrowings and weighted average interest rate under all
short-term borrowing arrangements were as follows for fiscal 2006 and 2005:
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 3, 2006
Bank borrowings:
Canadian ....................... $11,254 $ 313 5.32%
United Kingdom .................. 61,852 38,179 5.06
Japan .......................... 17,850 10,463 0.74
Bank overdraft facility:
United Kingdom .................. 13,100 1,892 5.51
Fiscal year ended August 28, 2005
Bank borrowings:
Canadian ....................... $12,841 $ 338 4.24%
United Kingdom .................. 41,576 20,394 5.22
Japan .......................... 14,606 8,702 0.84
Bank overdraft facility:
United Kingdom .................. 22,957 1,339 5.73
Long-Term Debt
Long-term debt at September 3, 2006 and August 28, 2005 consisted of the following:
2006 2005
5
1
⁄
2
% Senior Notes due March 2007 ...................... $301,243 $307,688
2.070% Promissory notes due October 2007 ................ 29,810 31,952
1.187% Promissory notes due July 2008 ................... 25,551 27,387
0.88% Promissory notes due November 2009 ............... 25,551 27,387
0.92% Promissory notes due April 2010 .................... 34,069 36,516
3
1
⁄
2
% Zero Coupon convertible subordinated notes due
August 2017 ........................................ 88,028 274,071
Capital lease obligations and other ........................ 19,640 8,899
Total long-term debt .................................... 523,892 713,900
Less current portion .................................... 308,523 3,225
Long-term debt, excluding current portion .................. $215,369 $710,675
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