Best Buy 2008 Annual Report Download - page 86

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$ in millions, except per share amounts or as otherwise noted
4. Debt
Short-term debt consisted of the following:
March 1, March 3,
2008 2007
Revolving credit facilities, secured and unsecured, variable interest rates ranging from 3.5% to
8.0% at March 1, 2008 $ 156 $ 20
Notes payable to banks, secured, paid October 2007 — 21
Total short-term debt $ 156 $ 41
Fiscal Year 2008 2007
Maximum month-end outstanding during the year $1,955 $ 78
Average amount outstanding during the year $ 655 $ 57
Weighted-average interest rate 4.5% 5.3%
Long-term debt consisted of the following:
March 1, March 3,
2008 2007
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% 197 171
Capital lease obligations, due 2010 to 2026, interest rates ranging from 5.1% to 8.8% 51 24
Other debt, due 2010 to 2022, interest rates ranging from 2.6% to 8.8% 10 12
Total long-term debt 660 609
Less: current portion (33) (19)
Total long-term debt, less current portion $ 627 $590
Certain debt is secured by property and equipment with a net book value of $87 and $80 at March 1, 2008, and
March 3, 2007, respectively.
On September 19, 2007, we entered into a $2,500
Credit Facilities
five-year unsecured revolving credit agreement (the
On June 26, 2007, we entered into a $3,000 bridge loan ‘‘Credit Agreement’’) with JPMorgan Chase Bank, N.A.
facility with Goldman Sachs Credit Partners L.P. (the (‘‘JPMorgan’’), as administrative agent, and a syndication
‘‘Bridge Facility’’), concurrent with the execution of of banks (the ‘‘Lenders’’). The Credit Agreement permits
agreements to purchase $3,000 of shares of our common borrowings up to $2,500, which may be increased up to
stock in the aggregate pursuant to our ASR program. See $3,000 at our option and upon the consent of JPMorgan
Note 5, Shareholders’ Equity, for further information on and each of the Lenders providing an incremental credit
the ASR program. We initially borrowed $2,500 under the commitment. The Credit Agreement includes a $300 letter
Bridge Facility and used $500 of our existing cash and of credit sub-limit and a $200 foreign currency sub-limit.
investments to fund the ASR program. Effective July 11, The Credit Agreement expires in September 2012.
2007, we reduced the amount we could borrow under the
Interest rates under the Credit Agreement are variable and
Bridge Facility to $2,500.
are determined at our option at: (i) the greater of the
Effective July 2, 2007, we terminated our previous $200 federal funds rate plus 0.5% or JPMorgan’s prime rate, or
revolving credit facility that was scheduled to expire on (ii) the London Interbank Offered Rate (‘‘LIBOR’’) plus
December 22, 2009. applicable LIBOR margin. A facility fee is assessed on the
commitment amount. Both the LIBOR margin and the
78