Costco 2013 Annual Report Download - page 61

Download and view the complete annual report

Please find page 61 of the 2013 Costco annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 80

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80

59
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
Financial assets measured at fair value on a nonrecurring basis include held-to-maturity investments that
are carried at amortized cost and are not remeasured to fair value on a recurring basis. There were no fair
value adjustments to these financial assets during 2013 and 2012. See Note 4 for discussion on the fair
value of long-term debt.
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 2013 and 2012 were immaterial.
Note 4—Debt
Short-Term Borrowings
The Company enters into various short-term bank credit facilities, totaling $700 and $438 in 2013 and 2012,
respectively. At the end of 2013, $36 was outstanding under these credit facilities, with interest rates ranging
from 0.10% to 4.31%, and is included within other current liabilities in the accompanying consolidated balance
sheets. There were no outstanding borrowings at the end of 2012.
The weighted average borrowings, maximum borrowings, and weighted average interest rate under all short-
term borrowing arrangements, were as follows for 2013 and 2012:
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
2013:
Bank borrowings:
Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $157 $ 56 0.56%
Bank overdraft facility:
United Kingdom . . . . . . . . . . . . . . . . . . . . . . . . 14 4 1.50
2012:
Bank borrowings:
Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 83 $ 57 0.58%
Bank overdraft facility:
United Kingdom . . . . . . . . . . . . . . . . . . . . . . . . 3 0 1.50
Long-Term Debt
In July 2013, the Company’s Japanese subsidiary entered into an approximately $102 three-year term loan
(with a possible two year extension), bearing interest at 0.67%. Interest is payable semi-annually and principal
is due on June 30, 2016. This debt is included in other long-term debt in the table below and is classified as
a Level 2 measurement in the fair value hierarchy.
In May 2013, the Company's Japanese subsidiary issued approximately $102 of 1.05% promissory notes
through a private placement. Interest is payable semi-annually, and principal is due in May 2023. These
notes are included in other long-term debt in the table below and are classified as a Level 3 measurement
in the fair value hierarchy.
In December 2012, the Company issued $3,500 in aggregate principle amount of Senior Notes (December
2012 Notes collectively) as follows: $1,200 of 0.65% Senior Notes due December 7, 2015 (0.65% Notes);