Bed, Bath and Beyond 2005 Annual Report Download - page 21

BED BATH& BEYOND ANNUAL REPORT 2005
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4. LINES OF CREDIT
At February 25, 2006, the Company maintained two uncommitted lines of credit of $100 million and $75 million, with expiration
dates of September 3, 2006 and February 28, 2006, respectively. These uncommitted lines of credit are currently and are expected
to be used for letters of credit in the ordinary course of business. In addition, under these uncommitted lines of credit, the
Company can obtain unsecured standby letters of credit. During fiscal 2005, the Company did not have any direct borrowings
under the uncommitted lines of credit. As of February 25, 2006, there was approximately $11.5 million of outstanding letters
of credit and approximately $33.7 million of outstanding unsecured standby letters of credit, primarily for certain insurance
programs. Subsequent to the end of fiscal 2005, the Company extended the $75 million uncommitted line of credit to
February 28, 2007. Although no assurances can be provided, the Company intends to renew the $100 million uncommitted line
of credit before the expiration date.
At February 26, 2005, the Company maintained two uncommitted lines of credit of $100 million and $50 million. These uncommit-
ted lines of credit were utilized for letters of credit in the ordinary course of business. During fiscal 2004, the Company did not
have any direct borrowings under the uncommitted lines of credits. As of February 26, 2005, there was approximately $13.4 mil-
lion of outstanding letters of credit and approximately $38.1 million of outstanding unsecured standby letters of credit, primarily
for certain insurance programs.
5. INVESTMENT SECURITIES
The Company’s investment securities consist of held-to-maturity U.S. Government Agency debt securities and municipal debt
securities, which are stated at amortized cost; available-for-sale auction rate securities, which are stated at cost or par value
which approximates fair value; and trading securities, which arestated at fair market value. The securities as of February25, 2006
and February 26, 2005 are as follows:
February 25, February 26,
(in millions) 2006 2005
Held-to-maturity securities:
Short term $ 291.6 $ 268.5
Long term 393.9 309.3
685.5 577.8
Available-for-sale securities:
Shortterm 112.1 360.8
Long term —14.9
112.1 375.7
Trading Securities:
Short term 0.4 —
Total investment securities $ 798.0 $ 953.5
Those investment securities with contractual maturity dates or interest reset dates within one year are classified as short term
investment securities. All other investment securities areclassified as long term investment securities. The contractual maturity
dates of held-to-maturity investment securities extend to January 2018 and the available-for-sale investment securities do not
have stated contractual maturities due to the nature of the investment vehicle. Actual maturities could differ from contractual
maturities because borrowers have the right to call certain obligations.
As of February 25, 2006, the fair value of short term and long term held-to-maturity securities were $289.8 million and
$390.0 million, respectively. As of February 26, 2005, the fair value of short term and long term held-to-maturity securities
were$266.9 million and $307.1 million, respectively.
As of February 25, 2006 and February 26, 2005, the Company had gross unrecognized holding losses of $5.6 million and $3.9 mil-
lion, respectively, relating to held-to-maturity investment securities with fair values totaling $678.8 million and $567.9 million,
respectively. As of February 25, 2006, $294.8 million of these investment securities have been in a continuous unrecognized loss
position for more than 12 months. Unrecognized holding losses typically will not result in a recognized expense if the underlying
securities areheld to maturity as intended. Gross unrecognized holding gains relating to held-to-maturity investment securities
were not material as of February25, 2006 and February 26, 2005. As of February 25, 2006 and February 26, 2005, the Company
had no cumulative unrecognized holding gains or losses relating to its available-for-sale investment securities.