Costco 2010 Annual Report Download - page 67

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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 2010 and 2009:
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 29, 2010
Bank borrowings:
Canada .................... $ 1 $ 1 2.75%
Japan ...................... 64 39 0.63
Bank overdraft facility:
United Kingdom .............. 5 2 1.50
Year ended August 30, 2009
Bank borrowings:
Canada .................... $90 $64 2.80%
United Kingdom .............. 31 23 1.72
Japan ...................... 29 22 0.93
Bank overdraft facility:
United Kingdom .............. 20 4 1.64
Other:
United Kingdom Money Market
Line Borrowing ............. 31 13 4.47
Long-Term Debt
Long-term debt at the end of 2010 and 2009 consisted of the following:
2010 2009
5.5% Senior Notes due March 2017 ........................... $1,096 $1,096
5.3% Senior Notes due March 2012 ........................... 899 899
2.695% Promissory notes due October 2017 .................... 77 69
0.35% over Yen TIBOR (6-month) Term Loan due June 2018 ...... 35 32
3.5% Zero Coupon convertible subordinated notes due
August 2017 ............................................. 32 32
0.92% Promissory notes due April 2010 ........................ 0 43
0.88% Promissory notes due November 2009 ................... 0 32
Other long-term debt ........................................ 2 7
Total long-term debt ........................................ 2,141 2,210
Less current portion ........................................ 0 80
Long-term debt, excluding current portion ....................... $2,141 $2,130
In April 2010, the Company’s Japanese subsidiary paid the outstanding principal and interest balances
related to the 0.92% promissory notes due April 2010, originally issued in April 2003. In November
2009, the Company’s Japanese subsidiary paid the outstanding principal and interest balances related
to the 0.88% promissory notes due November 2009, originally issued in November 2002.
In June 2008, the Company’s Japanese subsidiary entered into a ten-year term loan with a variable
rate of interest of Yen TIBOR (6-month) plus a 0.35% margin (0.84% and 0.95% at the end of 2010
and 2009, respectively) on the outstanding balance. Interest is payable semi-annually in December
and June and principal is due in June 2018.
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