Costco 2003 Annual Report Download - page 40

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in thousands, except per share data) (Continued)
Note 3—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 2003 and 2002:
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 August 31, 2003
Bank borrowings:
Canadian .......................... $ 5,655 $ 367 4.65%
Other International ................... 127,098 81,431 3.68
U.S. Commercial Paper ................... 17,657 2,065 4.92
Fiscal year ended September 1, 2002
Bank borrowings:
Canadian .......................... $ 17,195 $ 351 4.14%
Other International ................... 111,293 44,495 4.36
U.S. Commercial Paper ................... 332,000 70,401 2.29
Long-Term Debt
Long-term debt at August 31, 2003 and September 1, 2002:
2003 2002
7
1
⁄
8
% Senior Notes due June 2005 ................................. $ 308,684 $ 307,787
5
1
⁄
2
% Senior Notes due March 2007 ............................... 325,520 328,139
2.070% Promissory notes due October 2007 ......................... 30,079 29,400
1.187% Promissory notes due July 2008 ............................ 25,782 25,200
0.88% Promissory notes due November 2009 ........................ 25,782 —
0.92% Promissory notes due April 2010 ............................. 34,376 —
3
1
⁄
2
% Zero Coupon convertible subordinated notes due August 2017 ...... 524,735 506,883
Notes payable secured by trust deeds on real estate .................... 8,023 8,213
Capital lease obligations and other ................................. 13,719 12,600
1,296,700 1,218,222
Less current portion (included in other current liabilities) ............... 7,051 7,584
Total long-term debt ............................................ $1,289,649 $1,210,638
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 August 31, 2003, the Company was in compliance with all restrictive covenants.
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