Bed, Bath and Beyond 2012 Annual Report Download - page 30

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6. INVESTMENT SECURITIES
The Company’s investment securities as of March 2, 2013 and February 25, 2012 are as follows:
(in millions)
March 2,
2013
February 25,
2012
Available-for-sale securities:
Short term $— $ 6.5
Long term 49.0 73.7
Trading securities:
Long term 28.3 22.1
Held-to-maturity securities:
Short term 449.9 749.9
Total investment securities $527.2 $852.2
Auction Rate Securities
As of March 2, 2013 and February 25, 2012, the Company’s available-for-sale investment securities represented approximately
$51.0 million and approximately $83.9 million par value of auction rate securities, respectively, less temporary valuation
adjustments of approximately $2.0 million and $3.7 million, respectively. Since these valuation adjustments are deemed to be
temporary, they are recorded in accumulated other comprehensive loss, net of a related tax benefit, and did not affect the
Company’s net earnings. These securities at par are invested in preferred shares of closed end municipal bond funds, which are
required, pursuant to the Investment Company Act of 1940, to maintain minimum asset coverage ratios of 200%. All of these
available-for-sale investments carried triple-A credit ratings from one or more of the major credit rating agencies as of
March 2, 2013 and February 25, 2012, and none of them are mortgage-backed debt obligations. As of March 2, 2013 and
February 25, 2012, the Company’s available-for-sale investments have been in a continuous unrealized loss position for
12 months or more, however, the Company believes that the unrealized losses are temporary and reflect the investments’
current lack of liquidity. Due to their lack of liquidity, the Company classified approximately $49.0 million and $73.7 million of
these investments as long term investment securities at March 2, 2013 and February 25, 2012, respectively. During fiscal 2012,
approximately $8.5 million of these securities were redeemed at par and approximately $24.3 million were tendered at a price
of approximately 95% of par value, for which the Company incurred a realized loss of approximately $1.1 million included
within interest (expense) income, net in the consolidated statement of earnings for fiscal 2012.
U.S. Treasury Securities
As of March 2, 2013 and February 25, 2012, the Company’s short term held-to-maturity securities included approximately
$449.9 million and approximately $749.9 million, respectively, of U.S. Treasury Bills with remaining maturities of less than one
year. These securities are stated at their amortized cost which approximates fair value, which is based on quoted prices in
active markets for identical instruments (i.e., Level 1 valuation).
Long Term Trading Investment Securities
The Company’s long term trading investment securities, which are provided as investment options to the participants of the
nonqualified deferred compensation plan, are stated at fair market value. The values of these trading investment securities
included in the table above are approximately $28.3 million and $22.1 million as of March 2, 2013 and February 25, 2012,
respectively.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
BED BATH & BEYOND 2012 ANNUAL REPORT
28