Costco 2001 Annual Report Download - page 30

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COSTCO WHOLESALE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(dollars in thousands, except per share data)
Note 1—Summary of Significant Accounting Policies (Continued)
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.
Reclassifications
Certain reclassifications have been reflected in the financial statements in order to conform prior
years to the current year presentation.
Note 2—Debt
Bank Lines of Credit and Commercial Paper Programs
The Company has in place a $500,000 commercial paper program supported by a $500,000 bank credit
facility with a group of 10 banks, of which $250,000 expires on November 12, 2002 and $250,000 expires on
November 15, 2005. At September 2, 2001, $194,000 was outstanding under the commercial paper program
and no amounts were outstanding under the loan facility. Covenants related to the credit facility place
limitations on total company indebtedness. As of September 2, 2001, the Company was in compliance with
all restrictive covenants.
In addition, a wholly owned Canadian subsidiary has a $129,000 commercial paper program supported
by a $90,000 bank credit facility with three Canadian banks, which expires in March, 2002. At September 2,
2001, 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 $590,000 combined amounts of the respective supporting bank credit
facilities.
The Company’s wholly-owned Japanese subsidiary has a short-term 3 billion Yen bank line of credit,
equal to approximately $25,000, expiring in November 2002. At September 2, 2001, no amounts were
outstanding under the line of credit.
Letters of Credit
The Company has separate letter of credit facilities (for commercial and standby letters of credit),
totaling approximately $556,000. The outstanding commitments under these facilities at September 2, 2001
totaled approximately $127,000 including approximately $29,000 in standby letters of credit.
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