Costco 2011 Annual Report Download - page 67

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Nonfinancial assets measured at fair value on a nonrecurring basis include items such as long lived
assets that are measured at fair value resulting from an impairment, if deemed necessary. Fair value
adjustments to these nonfinancial assets and liabilities during 2011 and 2010 were immaterial.
Note 4—Debt
Bank Credit Facilities and Commercial Paper Programs
The Company enters into various short-term bank credit facilities. At the end of 2011 and 2010, the
total amount of credit under these facilities was $391 and $341, respectively. The total amount
outstanding was $26 at the end of 2010. There was nothing outstanding at the end of 2011. The
various credit facilities provide for applicable interest rates ranging from 0.58% to 4.39% in 2011 and
0.61% to 3.63% in 2010.
Short-Term Borrowings
The weighted average borrowings, maximum borrowings, and weighted average interest rate under all
short-term borrowing arrangements were as follows for 2011 and 2010:
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 28, 2011
Bank borrowings:
Canada ....................... $ 6 $ 4 3.00%
Japan ......................... 70 20 0.58
Bank overdraft facility:
United Kingdom ................. 16 4 1.50
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
Long-Term Debt
Long-term debt at the end of 2011 and 2010 consisted of the following:
2011 2010
5.5% Senior Notes due March 2017 ........................... $1,097 $1,096
5.3% Senior Notes due March 2012 ........................... 900 899
2.695% Promissory notes due October 2017 .................... 85 77
0.35% over Yen TIBOR (6-month) Term Loan due June 2018 ...... 39 35
3.5% Zero Coupon convertible subordinated notes due August
2017 ................................................... 31 32
Other long-term debt ........................................ 1 2
Total long-term debt ........................................ 2,153 2,141
Less current portion of 5.3% Senior Notes due March 2012 ........ 900 0
Long-term debt, excluding current portion ....................... $1,253 $2,141
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.
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