Best Buy 2011 Annual Report Download - page 102

$ in millions, except per share amounts or as otherwise noted
the revolving credit facility to decrease the amount available by the amount available under the ERF. The corresponding
guarantee by Best Buy Co., Inc. was similarly reduced.
In fiscal 2011, Best Buy Europe entered into a new £125 ($196) revolving credit facility (the ‘‘New RCF’’) with one of our
subsidiaries and Carphone Warehouse as lenders. Concurrent with the execution of the New RCF agreement, the £475
revolving credit facility was terminated. Amounts borrowed under the New RCF are provided for equally by us via
intercompany transactions and by Carphone Warehouse. The New RCF expires in March 2013. The New RCF is not
guaranteed by Best Buy Co., Inc., or any of our subsidiaries, nor does it provide for any recourse to Best Buy Co., Inc.
The full amount available under the New RCF, or £125 ($196), was borrowed by Best Buy Europe at February 26, 2011,
for which Carphone Warehouse’s proportionate and equal share of £63 ($98) was outstanding.
Interest rates under the New RCF are variable, based on the applicable LIBOR plus a margin of 3.0%. A commitment fee
of 1.5% on unused available capacity also applies.
Canada Revolving Demand Facility
We have a $51 revolving demand facility available to our Canada operations including an additional seasonal facility of
$51 that is available from September through December of each year. There were no borrowings outstanding under the
facility at February 26, 2011. There is no set expiration date for the facility. All borrowings under the facility are made
available at the sole discretion of the lender and are payable on demand. Borrowings under the facility bear interest at
rates specified in the credit agreement for the facility. Borrowings are secured by a guarantee of Best Buy Co., Inc.
China Revolving Demand Facilities
We have $159 in revolving demand facilities available to our China operations, of which $4 was outstanding at
February 26, 2011. The facilities are renewed annually with the respective banks. All borrowings under these facilities bear
interest at rates specified in the related credit agreements, are made available at the sole discretion of the respective
lenders and are payable on demand. Certain of these facilities are secured by a guarantee of Best Buy Co., Inc.
Long-Term Debt
Long-term debt consisted of the following:
February 26, February 27,
2011 2010
2013 Notes $ 500 $ 500
Convertible debentures 402 402
Financing lease obligations, due 2011 to 2025, interest rates ranging from 3.0% to 8.1% 170 186
Capital lease obligations, due 2011 to 2035, interest rates ranging from 2.1% to 8.3% 79 49
Other debt, due 2018 to 2022, interest rates ranging from 2.6% to 6.7% 1 2
Total long-term debt $1,152 $1,139
Less: current portion(1) (441) (35)
Total long-term debt, less current portion $ 711 $1,104
(1) Since holders of our convertible debentures may require us to purchase all or a portion of the debentures on January 15, 2012, we
have classified the $402 for such debentures in the current portion of long-term debt at February 26, 2011.
2013 Notes
In June 2008, we sold $500 principal amount of notes due July 15, 2013 (the ‘‘2013 Notes’’). The 2013 Notes bear
interest at a fixed rate of 6.75% per year, payable semi-annually on January 15 and July 15 of each year, beginning
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