Banana Republic 2012 Annual Report Download - page 47

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29
Long-Term Debt
In April 2011, we issued $1.25 billion aggregate principal amount of 5.95 percent Notes due April 2021 and received
proceeds of $1.24 billion in cash, net of underwriting and other fees. Interest is payable semi-annually on April 12 and
October 12 of each year and commenced on October 12, 2011. The Notes are not subject to interest rate risk, as they
have a fixed interest rate.
Cash Equivalents
We have highly liquid fixed and variable income investments classified as cash equivalents, which are placed primarily in
money market funds, time deposits, and commercial paper. These investments are classified as held-to-maturity based on
our positive intent and ability to hold the securities to maturity. We value these investments at their original purchase
prices plus interest that has accrued at the stated rate. The value of our investments is not subject to material interest rate
risk. However, changes in interest rates would impact the interest income derived from our investments. We earned
interest income of $6 million in fiscal 2012.
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