Best Buy 2007 Annual Report Download - page 89

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$ in millions, except per share amounts
74
The carrying value of our investments approximated fair
value at March 3, 2007, and February 25, 2006, due to
the rapid turnover of our portfolio and the highly liquid
nature of these investments. Therefore, there were no
significant realized or unrealized gains or losses.
Marketable Equity Securities
The carrying values of our investments in marketable equity
securities at March 3, 2007, and February 25, 2006, were
$4 and $28, respectively. Net unrealized (loss)/gain, net of
tax, included in accumulated other comprehensive income
was ($1) and $12 at March 3, 2007, and February 25,
2006, respectively.
At February 25, 2006, our investments included 1,276,001
shares of Golf Galaxy, Inc. (“Golf Galaxy”) common stock
with a carrying value of $24. On February 13, 2007, Golf
Galaxy completed a merger with Dick’s Sporting
Goods, Inc. Under the terms of the merger agreement,
each outstanding share of Golf Galaxy common stock was
converted into the right to receive $18.82 per share in
cash, without interest. In connection with the merger, we
sold our 1,276,001 shares of Golf Galaxy common stock
and recognized a $20 gain on the sale in fiscal 2007,
which was included in gain on investments in our
consolidated statement of earnings.
5.Debt
Short-term debt consisted of the following:
March 3,
2007
Feb.25,
2006
Notes payable to banks, secured, interest rates ranging from 3.5% to 6.7% $ 21 $ —
Revolving credit facility, secured, variable interest rate of 5.6% at March 3, 2007 20 —
Total short-term debt $41 $—
Fiscal Year 2007 2006
Maximum outstanding during the year $ 78 $—
Average amount outstanding during the year $ 57 $—
Weighted average interest rate 5.3% —
Long-term debt consisted of the following:
March 3,
2007
Feb.25,
2006
Convertible subordinated debentures, unsecured, due 2022, interest rate 2.25% $402 $ 402
Financing lease obligations, due 2009 to 2023, interest rates ranging from 3.0% to 6.5% 171 157
Capital lease obligations, due 2008 to 2026, interest rates ranging from 1.8% to 8.0% 24 27
Other debt, due 2010, interest rate 8.8% 12 10
Total debt 609 596
Less: current portion(1) (19) (418)
Total long-term debt $590 $ 178
(1) Since holders of our debentures due in 2022 could have required us to purchase all or a portion of their debentures on January 15,
2007, we classified our debentures in the current portion of long-term debt at February 25, 2006. However, no holders of our debentures
exercised this put option on January 15, 2007. The next time the holders of our debentures could require us to purchase all or a portion of
their debentures is January 15, 2012. Therefore, we classified our debentures as long-term debt at March 3, 2007.
Certain debt is secured by property and equipment with a net book value of $80 and $41 at March 3, 2007, and
February 25, 2006, respectively.