Costco 2008 Annual Report Download - page 69

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Short-Term Borrowings
The weighted average borrowings, maximum borrowings and weighted average interest rate under all
short-term borrowing arrangements were as follows for 2008 and 2007:
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
Year ended August 31, 2008
Bank borrowings:
Canada ......................... $174,802 $82,166 3.79%
United Kingdom .................. 31,682 22,286 5.87
Japan .......................... 22,416 15,365 1.07
Bank overdraft facility:
United Kingdom .................. 7,866 1,521 6.26
Other:
United Kingdom Money Market Line
Borrowing ..................... 37,690 16,404 5.56
Year ended September 2, 2007
Bank borrowings:
Canada ......................... $103,599 $37,809 4.63%
United Kingdom .................. 77,732 40,532 5.75
Japan .......................... 18,031 10,103 1.00
Bank overdraft facility:
United Kingdom .................. 34,922 6,002 6.16
Other:
United Kingdom Money Market Line
Borrowing ..................... 39,624 13,301 5.99
Long-Term Debt
Long-term debt at August 31, 2008 and September 2, 2007 consisted of the following:
2008 2007
5.5% Senior Notes due March 2017 .................... $1,094,965 $1,094,376
5.3% Senior Notes due March 2012 .................... 898,262 897,770
2.695% Promissory notes due October 2017 ............. 59,776 —
3.5% Zero Coupon convertible subordinated notes due
August 2017 ..................................... 49,097 47,826
0.92% Promissory notes due April 2010 ................. 36,785 34,444
0.88% Promissory notes due November 2009 ............ 27,589 25,833
0.35% over Yen Tibor (6-month) Term Loan due
June 2018 ....................................... 27,589 —
2.070% Promissory notes due October 2007 ............. — 30,139
1.187% Promissory notes due July 2008 ................ — 25,833
Capital lease obligations and other ..................... 17,892 11,662
Total long-term debt ................................. 2,211,955 2,167,883
Less current portion ................................. 6,003 59,905
Long-term debt, excluding current portion ............... $2,205,952 $2,107,978
On June 16, 2008, the Company’s wholly-owned Japanese subsidiary entered into a ten-year term
loan in the amount of $27,589, with a variable rate of interest of Yen TIBOR (6-month) plus a 0.35%
margin (1.24% at August 31, 2008) on the outstanding balance. The net proceeds were used to repay
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