BBY » Topics » Investments

This excerpt taken from the BBY 8-K filed Feb 1, 2010.
Investments

 

Investments, other than subsidiaries and joint ventures and associates, are initially recognised at cost, being the fair value of the consideration given plus any transaction costs associated with the acquisition. Investments are categorised as available-for-sale and are then recorded at fair value. Changes in fair value, together with any related taxation, are taken directly to reserves, and recycled to the income statement when the investment is sold or determined to be impaired.

 

These excerpts taken from the BBY 10-K filed Apr 29, 2009.

Investments

Debt Securities

Our short-term and long-term investments in debt securities are comprised of auction-rate securities and commercial paper. In accordance with SFAS No. 115, Accounting for Certain Investments in Debt and Equity Securities, and based on our ability to market and sell these instruments, we classify auction-rate securities and other investments in debt securities as available-for-sale and carry them at fair value. Auction-rate securities were intended to behave like short-term debt instruments because their interest rates reset periodically through an auction process, typically at intervals of 7, 28 and 35 days. Investments in these securities can be sold for cash at par value on the auction date if the auction is successful. Substantially all of our auction-rate securities are AAA/Aaa-rated and collateralized by student loans, which are guaranteed 95% to 100% by the U.S. government. We also hold auction-rate securities that are in the form of municipal revenue bonds, the vast majority of which are AAA/Aaa-rated and insured by bond insurers. We do not have any investments in securities that are collateralized by assets that include mortgages or subprime debt. Our intent with these investments is not to hold these securities to maturity, but to use the periodic auction feature to provide liquidity as needed. See Note 3, Investments, for further information.

78


Table of Contents


$ in millions, except per share amounts or as otherwise noted

In accordance with our investment policy, we place our investments in debt securities with issuers who have high-quality credit and limit the amount of investment exposure to any one issuer. The primary objective of our investment activities is to preserve principal and maintain a desired level of liquidity to meet working capital needs. We seek to preserve principal and minimize exposure to interest-rate fluctuations by limiting default risk, market risk and reinvestment risk.

Marketable Equity Securities

We also invest in marketable equity securities and classify them as available-for-sale. Investments in marketable equity securities are included in equity and other investments in our consolidated balance sheets, and are reported at fair value based on quoted market prices. All unrealized holding gains and losses are reflected net of tax in accumulated other comprehensive income in shareholders' equity.

Other Investments

We also have investments that are accounted for on either the cost method or the equity method that we include in equity and other investments in our consolidated balance sheets.

We review the key characteristics of our debt, marketable equity securities and other investments portfolio and their classification in accordance with GAAP on an annual basis, or when indications of potential impairment exist. If a decline in the fair value of a security is deemed by management to be other-than-temporary, we write down the cost basis of the investment to fair value, and the amount of the write-down is included in net earnings.

Investments



Debt Securities



Our short-term and long-term investments in debt securities are comprised of auction-rate securities and
commercial paper. In accordance with SFAS No. 115,
Accounting for Certain Investments in Debt and Equity Securities, and based on our ability to
market and sell these instruments, we classify auction-rate securities and other investments in debt securities as available-for-sale and carry them at fair value.
Auction-rate securities were intended to behave like short-term debt instruments because their interest rates reset periodically through an auction process, typically at
intervals of 7, 28 and 35 days. Investments in these securities can be sold for cash at par value on the auction date if the auction is successful. Substantially all of our
auction-rate securities are AAA/Aaa-rated and collateralized by student loans, which are guaranteed 95% to 100% by the U.S. government. We also hold auction-rate
securities that are in the form of municipal revenue bonds, the vast majority of which are AAA/Aaa-rated and insured by bond insurers. We do not have any investments in securities that are
collateralized by assets that include mortgages or subprime debt. Our intent with these investments is not to hold these securities to maturity, but to use the periodic auction feature to provide
liquidity as needed. See Note 3,
Investments, for further information.



78









HREF="#bg19101a_main_toc">Table of Contents





$ in millions, except per share amounts or as otherwise noted



In
accordance with our investment policy, we place our investments in debt securities with issuers who have high-quality credit and limit the amount of investment exposure to any one
issuer. The primary objective of our investment activities is to preserve principal and maintain a desired level of liquidity to meet working capital needs. We seek to preserve principal and minimize
exposure to interest-rate fluctuations by limiting default risk, market risk and reinvestment risk.



Marketable Equity Securities



We also invest in marketable equity securities and classify them as available-for-sale. Investments in marketable equity
securities are included in equity and other investments in our consolidated balance sheets, and are reported at fair value based on quoted market prices. All unrealized holding gains and losses are
reflected net of tax in accumulated other comprehensive income in shareholders' equity.



Other Investments



We also have investments that are accounted for on either the cost method or the equity method that we include in equity and other investments in our
consolidated balance sheets.



We
review the key characteristics of our debt, marketable equity securities and other investments portfolio and their classification in accordance with GAAP on an annual basis, or when indications of
potential impairment exist. If a decline in the fair value of a security is deemed by management to be other-than-temporary, we write down the cost basis of the investment to
fair value, and the amount of the write-down is included in net earnings.



This excerpt taken from the BBY 8-K filed Sep 12, 2008.

l) Investments

 

All investments are initially recognised at cost, being the fair value of the consideration given plus any transaction costs associated with the acquisition.

 

The Group’s investments are categorised as available-for-sale and are then recorded at fair value. Changes in fair value, together with any related taxation, are taken directly to reserves, and recycled to the income statement when the investment is sold or determined to be impaired.

 

These excerpts taken from the BBY 10-K filed Apr 30, 2008.

3.    Investments

Investments were comprised of the following:

 
  March 1,
2008

  March 3,
2007


Short-term investments            
  Debt securities   $ 64   $ 2,588
   
 
Equity and other investments            
  Debt securities   $ 417   $ 318
  Marketable equity securities     172     4
  Other investments     16     16
   
 
Total equity and other investments   $ 605   $ 338
   
 

3.    Investments



Investments were comprised of the following:







































































































 
 March 1,

2008

 March 3,

2007


Short-term investments      
 Debt securities $64 $2,588
  
 
Equity and other investments      
 Debt securities $417 $318
 Marketable equity securities  172  4
 Other investments  16  16
  
 
Total equity and other investments $605 $338
  
 




This excerpt taken from the BBY DEF 14A filed May 16, 2007.
Investments.   Amounts deferred under and contributed to the Deferred Compensation Plan are credited or charged with the performance of investment options selected by the participants. The investment options are notional and do not represent actual investments, but rather serve as a measurement of performance. The options available under the Deferred Compensation Plan and their rates of return for the calendar year ended December 31, 2006, were as follows:

Investment

 

Rate of Return

(1)

Gartmore GVIT Money Market

 

 

4.61

%

PIMCO VIT Total Return

 

 

3.85

%

PIMCO VIT High-Yield Bond

 

 

9.07

%

Fidelity VIP II Asset Manager

 

 

7.24

%

Vanguard VIF Diversified Value

 

 

18.88

%

Vanguard VIF Equity Index

 

 

15.71

%

MFS VIT Emerging Growth Series

 

 

7.61

%

Gartmore GVIT Small Cap Value

 

 

17.29

%

Vanguard VIF Small Company Growth

 

 

10.21

%

Vanguard VIF International

 

 

26.75

%


This excerpt taken from the BBY 10-K filed May 2, 2007.
Investments

Short-term and long-term investments are comprised of municipal and United States government debt securities as well as auction-rate securities and variable rate-demand notes. In accordance with SFAS No. 115, Accounting for Certain Investments in Debt and Equity Securities, and based on our ability to market and sell these instruments, we classify auction-rate securities, variable-rate demand notes and other investments in debt securities as available-for-sale and carry them at amortized cost, which approximates fair value. Auction-rate securities and variable-rate demand notes are similar to short-term debt instruments because their interest rates are reset periodically. Investments in these securities can be sold for cash on the auction date. We classify auction-rate securities and variable-rate demand notes as short-term or long-term investments based on the reset dates.

65




$ in millions, except per share amounts

In accordance with our investment policy, we place our investments with issuers who have high-quality credit and limit the amount of investment exposure to any one issuer. We seek to preserve principal and minimize exposure to interest-rate fluctuations by limiting default risk, market risk and reinvestment risk.

We also hold investments in marketable equity securities and classify them as available-for-sale. Investments in marketable equity securities are included in other assets in our consolidated balance sheets. Investments in marketable equity securities are reported at fair value, based on quoted market prices when available. All unrealized holding gains or losses are reflected net of tax in accumulated other comprehensive income in shareholders’ equity.

We review the key characteristics of our debt and marketable equity securities portfolio and their classification in accordance with GAAP on an annual basis, or when indications of potential impairment exist. If a decline in the fair value of a security is deemed by management to be other than temporary, the cost basis of the investment is written down to fair value, and the amount of the write-down is included in the determination of net earnings.

This excerpt taken from the BBY 10-K filed May 10, 2006.
Investments

Short-term and long-term investments are comprised of municipal and United States government debt securities. In accordance with SFAS No. 115, Accounting for Certain Investments in Debt and Equity Securities, and based on our ability to market and sell these instruments, we classify auction-rate debt securities, variable-rate demand notes and other investments in debt securities as available-for-sale and carry them at amortized cost, which approximates fair value. Auction-rate debt securities and variable-rate demand notes are bonds that are similar to short-term instruments because their interest rates are reset periodically. Investments in these securities can be sold for cash on the auction date. We classify auction-rate debt securities and variable-rate demand notes as short-term or long-term investments based on the reset dates.

In accordance with our investment policy, we place our investments in debt securities with issuers who have high-quality credit and limit the amount of investment exposure to any one issuer. We seek to preserve principal and minimize exposure to interest-rate fluctuations by limiting default risk, market risk and reinvestment risk.

We hold investments in marketable equity securities. We classify all marketable equity securities as available-for-sale. Investments in equity securities are included in other assets in our consolidated balance sheets and reported at fair value, based on quoted market prices when available. All unrealized holding gains are reflected net of tax in accumulated other comprehensive income in shareholders’ equity.

We review the key characteristics of our debt and equity securities portfolio and their classification in accordance with GAAP on an annual basis, or when indications of potential impairment exist. If a decline in the fair value of a security is deemed by management to be other than temporary, the cost basis of the investment is written down to fair value, and the amount of the write-down is included in the determination of net earnings.

During the third quarter of fiscal 2006, we reclassified variable-rate demand notes from cash and cash equivalents to short-term investments for all periods presented. The amortized cost of the securities reclassified for fiscal 2005 was $116.

We also revised the presentation in the consolidated statement of cash flows for the year ended February 26, 2005, to reflect the gross purchases and sales of variable-rate demand notes as investing activities rather than as a component of cash and cash equivalents, which is consistent with the presentation for the fiscal year ended February 25, 2006. The amount reclassified from cash and cash equivalents to investing activities was $116 for fiscal 2005. We did not hold any variable-rate demand notes during fiscal 2004.

This excerpt taken from the BBY 10-Q filed Jul 7, 2005.
Investments, of the Notes to Consolidated Condensed Financial Statements in this Quarterly Report on Form 10-Q, for a summary of our investments in debt securities as of May 28, 2005.

 

Our current ratio, calculated as current assets divided by current liabilities, was 1.45 at the end of the first quarter of fiscal 2006, compared with 1.39 at the end of fiscal 2005 and 1.29 one year ago. Our debt-to-capitalization ratio was 11% at the end of the first quarter of fiscal 2006, compared with 12% at the end of fiscal 2005, and down from 20% at the end of the first quarter of fiscal 2005. The decrease in our debt-to-capitalization ratio from the end of the first quarter of fiscal 2005 was due primarily to the repayment in June 2004 of $355 million of convertible debentures due in 2021.

 

Our liquidity is affected by restricted cash balances that are pledged as collateral or restricted to use for general liability insurance, workers’ compensation insurance and/or warranty programs. Restricted cash balances, which are included in other current assets, totaled $155 million, $158 million and $85 million as of May 28, 2005; February 26, 2005; and May 29, 2004, respectively.

 

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki