Best Buy 2012 Annual Report Download - page 74

$ in millions, except per share amounts or as otherwise noted
74
The following table provides the gross carrying amount and related accumulated amortization of definite-lived intangible
assets:
March 3, 2012 February 26, 2011
Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization
Tradenames $ — $ — $ 73 $ (45)
Customer relationships 453 (224) 383 (180)
Total $ 453 $ (224) $ 456 $ (225)
Total amortization expense was $48, $82, and $88 in fiscal 2012, 2011, and 2010, respectively. At March 3, 2012, future
amortization expense for identifiable intangible assets for the next five fiscal years was expected to be:
Fiscal Year
2013 $ 40
2014 40
2015 40
2016 40
2017 22
Thereafter 47
Lease Rights
Lease rights represent costs incurred to acquire the lease of a specific commercial property. Lease rights are recorded at cost
and are amortized to rent expense over the remaining lease term, including renewal periods, if reasonably assured.
Amortization periods range up to 15 years, beginning with the date we take possession of the property.
The following table provides the gross carrying amount and related accumulated amortization of lease rights:
March 3, 2012 February 26, 2011
Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization
Lease rights $ 130 $ (73) $ 131 $ (57)
Lease rights amortization expense was $13, $14 and $18 in fiscal 2012, 2011 and 2010, respectively. We expect current lease
rights amortization expense to be approximately $7 for each of the next five fiscal years.
Investments
Debt Securities
Our long-term investments in debt securities are comprised of auction-rate securities ("ARS"). Based on our ability to market
and sell these instruments, we classify ARS as available-for-sale and carry them at fair value. ARS were intended to behave like
short-term debt instruments because their interest rates reset periodically through an auction process, typically at intervals of
seven, 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. The majority of our ARS are AAA/Aaa-rated and collateralized by student loans, which are guaranteed 95% to
100% by the U.S. government. We also hold ARS that are in the form of municipal revenue bonds, which are AA/Aa-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 to recover the full principal amount through a successful auction process,
a sale outside of the auction process, a refinancing or settlement upon maturity. See Note 5, Investments, for further
information.
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.