Starbucks 2006 Annual Report Download - page 55

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OCTOBER 2, 2005
Amortized
Cost
Gross
Unrealized
Holding
Gains
Gross
Unrealized
Holding
Losses
Fair
Value
Short-term investments — available-for-sale securities:
State and local government obligations $ 47,960 $ 1 $(179) $ 47,782
Mutual funds 25,000 34 — 25,034
U.S. government agency obligations 11,327 — (21) 11,306
Corporate debt securities 4,000 — — 4,000
Asset-backed securities 7,373 — (116) 7,257
Total 95,660 $35 $(316) 95,379
Short-term investments — trading securities 35,376 37,848
Total short-term investments $131,036 $133,227
Long-term investments — available-for-sale securities:
State and local government obligations $ 61,236 $ 7 $(768) $ 60,475
For available-for-sale securities, proceeds from sales were $431 million, $626 million and $452 million, in fiscal years
2006, 2005 and 2004, respectively. Gross realized gains from sales were $3.8 million, $0.1 million and $0.2 million in
fiscal years 2006, 2005 and 2004, respectively. Gross realized losses from sales were $0.1 million, $1.7 million and
$0.4 million in fiscal years 2006, 2005 and 2004, respectively.
The following tables present the length of time available-for-sale securities were in continuous unrealized loss positions
but were not deemed to be other-than-temporarily impaired (in thousands):
OCTOBER 1, 2006
Gross
Unrealized
Holding
Losses
Fair
Value
Gross
Unrealized
Holding
Losses
Fair
Value
LESS THAN 12 MONTHS
GREATER THAN OR
EQUAL TO 12 MONTHS
CONSECUTIVE MONTHLY UNREALIZED LOSSES
State and local government obligations $ — $ — $(414) $49,960
Corporate debt securities (2) 2,486 — —
Total $ (2) $2,486 $(414) $49,960
OCTOBER 2, 2005
Gross
Unrealized
Holding
Losses
Fair
Value
Gross
Unrealized
Holding
Losses
Fair
Value
LESS THAN 12 MONTHS
GREATER THAN OR
EQUAL TO 12 MONTHS
CONSECUTIVE MONTHLY UNREALIZED LOSSES
State and local government obligations $(371) $49,527 $(576) $43,699
U.S. government agency obligations (21) 11,306 — —
Asset-backed securities (34) 3,467 (82) 3,790
Total $(426) $64,300 $(658) $47,489
Gross unrealized holding losses of $2 thousand for less than twelve months and $0.4 million for greater than or equal to
twelve months as of October 1, 2006, pertain to 3 and 23 fixed income securities, respectively, and were primarily caused
by interest rate increases. Since Starbucks has the ability and intent to hold these securities until a recovery of fair value,
which may be at maturity, and because the unrealized losses were primarily due to higher interest rates, the Company does
not consider these securities to be other-than-temporarily impaired.
STARBUCKS CORPORATION, FORM 10-K 51