Costco 2007 Annual Report Download - page 62

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The following tables present the length of time available-for-sale securities were in continuous
unrealized loss positions, but were not deemed to be other-than-temporarily impaired:
Less than 12 Months
Greater than or Equal
to 12 Months
September 2, 2007
Gross
Unrealized
Holding
Losses Fair Value
Gross
Unrealized
Holding
Losses Fair Value
U.S. government and agency securities ......... $ (49) $ 30,572 $ (905) $175,765
Corporate notes and bonds ................... (128) 15,302 (942) 106,460
Asset and mortgage backed securities .......... (112) 20,081 (258) 20,014
$ (289) $ 65,955 $(2,105) $302,239
September 3, 2006
U.S. government and agency securities ......... $(1,879) $278,360 $(3,751) $282,033
Corporate notes and bonds ................... (1,251) 193,902 (1,534) 103,907
Asset and mortgage backed securities .......... (83) 16,485 (401) 21,802
$(3,213) $488,747 $(5,686) $407,742
Gross unrealized holding losses of $289 for investments held less than twelve months and $2,105 for
investments held greater than or equal to twelve months as of September 2, 2007, pertain to 56 and
176 fixed income securities, respectively, and were primarily attributable to changes in interest rates.
The Company currently has the financial ability to hold short-term investments with an unrealized loss
until maturity and not incur any recognized losses. Management does not believe any unrealized
losses represent an other-than-temporary impairment based on an evaluation of available evidence as
of September 2, 2007.
The maturities of available-for-sale and held-to-maturity debt securities at September 2, 2007 are as
follows:
Available-For-Sale Held-To-Maturity
Cost Basis Fair Value Cost Basis Fair Value
Due in one year or less ...................... $282,058 $280,724 $78,563 $78,563
Due after one year through five years .......... 173,063 173,176 — —
Due after five years ......................... 43,426 43,324 — —
$498,547 $497,224 $78,563 $78,563
Note 3—Debt
Bank Credit Facilities and Commercial Paper Programs (all amounts stated in U.S. dollars)
A wholly-owned Canadian subsidiary has a $189,789 commercial paper program ($180,900 at
September 3, 2006) supported by a $113,874 bank credit facility ($54,200 at September 3, 2006) with
a Canadian bank, which is guaranteed by the Company and expires in March 2008. At September 2,
2007 and September 3, 2006, no amounts were outstanding under the Canadian commercial paper
program or the bank credit facility. Applicable interest rates on the credit facility at September 2, 2007
and September 3, 2006 were 5.00% and 4.65%, respectively. At September 2, 2007, standby letters of
credit totaling $24,122 issued under the bank credit facility left $89,752 available for commercial paper
support. At September 3, 2006, standby letters of credit totaling $20,800 issued under the bank credit
facility left $33,400 available for commercial paper support.
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