Note F—Financing The Company’s long-term debt as of August 30, 2003, and August 31, 2002, consisted of the following: Year Ended August 30, August 31, (in thousands) 2003 2002 5.875% Senior Notes due October 2012, effective interest rate of 6.33% $ 300,000 $ — 4.375% Senior Notes due June 2013, effective interest rate of 5.65% 200,000 — 6% Notes due November 2003 150,000 150,000 6.5% Debentures due July 2008 190,000 190,000 7.99% Notes due April 2006 150,000 150,000 Bank term loan, due December 2003, variable interest rate of 3.11% at August 31, 2002 — 115,000 Bank term loan, due November 2004, variable interest rate of 2.26% at August 30, 2003, and 2.56% at August 31, 2002 250,000 350,000 Commercial paper, weighted average interest rate of 1.2% at August 30, 2003, and 2.1% at August 31, 2002 268,000 223,200 Other 38,845 16,317 $1,546,845 $1,194,517 The Company maintains $950 million of revolving credit facilities with a group of banks. Of the $950 million, $300 million expires in May 2004. The remaining $650 million expires in May 2005. The 364-day facility expiring in May 2004 includes a renewal feature as well as an option to extend the maturity date of the then-outstanding debt by one year. The credit facilities exist largely to support commercial paper borrowings and other short term unsecured bank loans. At August 30, 2003, outstanding commercial paper of $268 million, the 6% Notes due November 2003 of $150 million, and other debt of $2.7 million are classified as long term as the Company has the ability and intention to refinance them on a long-term basis. The rate of interest payable under the credit facilities is a function of the London Interbank Offered Rate (LIBOR), the lending bank’s base rate (as defined in the agreement) or a competitive bid rate at the option of the Company. The Company has agreed to observe certain covenants under the terms of its credit agreements, including limitations on total indebtedness, restrictions on liens and minimum fixed charge coverage. As of August 30, 2003, the Company was in compliance with all covenants. On October 16, 2002, the Company issued $300 million of 5.875% Senior Notes. The notes mature in October 2012, and interest is payable semi-annually on April 15 and October 15. A portion of the proceeds from these senior notes was used to prepay a $115 million unsecured bank term loan due December 2003, to repay a portion of the Company’s outstanding commercial paper borrowings, and to settle interest rate hedges associated with the issuance and repayment of the related debt securities. On June 3, 2003, the Company issued $200 million  of 4.375% Senior Notes. These senior notes mature in June 2013, and interest is payable semi-annually on June 1 and December 1. The  proceeds were used to repay a portion of the Company’s outstanding commercial paper borrowings, to prepay $100 million of the $350  million unsecured bank loan due November 2004, and to settle interest rate hedges associated with the issuance of the debt securities. On August 8, 2003, the Company filed a shelf registration with the Securities and Exchange Commission, which was declared effective  on August 22, 2003. This filing will allow the Company to sell up to $500 million in debt securities to fund general corporate purposes, including repaying, redeeming or repurchasing outstanding debt, and for working capital, capital expenditures, new store openings, stock repurchases and acquisitions. No debt has been issued under this registration statement as of August 30, 2003. As of August 30, 2003, “Other” long-term debt included approximately $30 million related to the Company’s synthetic leases, with expira- tion dates in fiscal 2006, for a small number of its domestic stores. At August 30, 2003, the Company recognized the obligations under the lease facility and increased its property and long-term debt balances on its balance sheet by approximately $30 million. All of the Company’s debt is unsecured, except for $8.9 million, which is collateralized by property. Maturities of long-term debt are $420.7 million in fiscal 2004, $252.7 million in fiscal 2005, $182.7 million in fiscal 2006, $0.7 million in fiscal 2007, $190.0 million in fiscal 2008 and $500.0 million thereafter. The maturities for fiscal 2004 are classified as long term as the Company has the ability and intention to refinance them on a long-term basis. The fair value of the Company’s debt was estimated at $1.57 billion as of August 30, 2003, and $1.22 billion as of August 31, 2002, based on the quoted market prices for the same or similar issues or on the current rates available to the Company for debt of the same remaining maturities. Such fair value is greater than the carrying value of debt at August 30, 2003, and August 31, 2002, by $27.3 million and $27.2 mil- lion, respectively. The Company had outstanding variable rate debt of $556.8 million at August 30, 2003, and $699.8 million at August 31, 2002, both of which exclude the effect of interest rate swaps designated and effective as cash flow hedges of such variable rate debt. 41 AutoZone, Inc. 2003 Annual Report