COST Financial_Report

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Unformatted text preview: he Compa ny&#x2019 va lues, recently completed ma rket tra nsa ctions a nd estima tes ba sed upon interest ra tes, ma turities, a nd credit risk.</font></p> <p style=3D'MARGIN-TOP: 12px <font style=3D'FONT-FAMILY: ARIAL' siz e=3D2>In Februa ry&#xA0 the Compa ny issued $9 00 of 5.3% Senior Notes tha t were due Ma rch&#xA0 5.5% Senior Notes due Ma rch&#xA0 (together the 2007 Senior Notes). Interest on the 2007 Senior Notes is pa ya ble semi-a nnua lly on Ma rch&#xA0 ea ch yea r until their respective ma turity da te. The discount a nd issua nce costs a ssocia ted with the Senior Notes ha ve been a mortiz ed to interest expense over the terms of those notes. The Compa ny, a t its option, ma y redeem the rema ining 2007 Senior Notes a t a ny time, in whole or in pa rt, a t a redemption price plus a ccrued interest. The redemption price is equa l to the grea ter of 100% of the principa l a mount of the rema ining 2007 Senior Notes to be redeemed or the sum of the present va lues of the rema ining scheduled pa yments of principa l a nd interest to ma turity. Additiona lly, the Compa ny will be required to ma ke a n offer to purcha se the rema ining 2007 Senior Notes a t a price of 101% of the principa l a mount plus a ccrued a nd unpa id interest to the da te of repurcha se, upon certa in events a s defined by the terms of the 2007 Senior Notes. In Ma rch 2011, the Compa ny recla ssified its 2012 Notes, to a current lia bility within the current portion of long-term debt of the consolida ted ba la nce sheets to reflect its rema ining ma turity of less tha n one yea r. On Ma rch&#xA0 outsta nding principa l ba la nce a nd a ssocia ted interest on the 2012 Notes with its existing sources of ca sh a nd ca sh equiva lents a nd short-term investments. These notes a re cla ssified a s a Level 2 mea surement in the fa ir va lue hiera rchy.</font></p> <p style=3D'MARGIN-TOP: 12px <font style=3D'FONT-FAMILY: ARIAL' siz e=3D2>In October a nd December 2011, the Compa ny&#x2019 1.18% Yen-denomina ted promissory notes through a priva te pla cement. For both series, interest is pa ya ble semi-a nnua lly, a nd principa l is due in October 2018. These notes a re included in other long-term debt in the ta ble a bove a nd a re cla ssified a s a Level 3 mea surement in the fa ir va lue hiera rchy.</font></p> <p style=3D'MARGIN-TOP: 12px <font style=3D'FONT-FAMILY: ARIAL' siz e=3D2>In June 2008, the Compa ny&#x2019 lo Page 3 &#xA0 </font></td> </font></td> &#xA0 &#xA0 </font></td> </font></td> </font></td> &#xA0 </font></td> MARGIN-LEFT: 3em'><font style=3D'FONT-FAMILY: ARIAL' siz e=3D2>Investment in FDIC-insured corpora te &#xA0 </font></td> </font></td> &#xA0 &#xA0 </font></td> </font></td> </font></td> &#xA0 </font></td> MARGIN-LEFT: 3em'><font style=3D'FONT-FAMILY: ARIAL' siz e=3D2>Investment in a sset a nd &#xA0 </font></td> </font></td> &#xA0 &#xA0 </font></td> </font></td> </font></td> &#xA0 </font></td> MARGIN-LEFT: 3em'><font style=3D'FONT-FAMILY: ARIAL' siz e=3D2>Forwa rd foreign-excha nge contra cts, BOTTOM: 0.8ex BOTTOM: 0.8ex VERTICAL-ALIGN: ba seli...
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