Best Buy 2012 Annual Report Download - page 86

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$ in millions, except per share amounts or as otherwise noted
86
Fair Value Measurements Using Inputs
Considered as
Fair Value at
February 26,
2011
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Assets
Cash and cash equivalents
Money market funds $ 70 $ 70 $ — $ —
Short-term investments
Money market fund 2 — 2 —
U.S. Treasury bills 20 20 — —
Other current assets
Money market funds (restricted assets) 63 63 — —
U.S. Treasury bills (restricted assets) 105 105 — —
Foreign currency derivative instruments 2 — 2 —
Equity and other investments
Auction rate securities 110 — — 110
Marketable equity securities 146 146 — —
Other assets
Marketable securities that fund deferred compensation 83 83 — —
Liabilities
Accrued liabilities
Foreign currency derivative instruments 1 — 1 —
Long-term liabilities
Deferred compensation 64 64 — —
Foreign currency derivative instruments 2 — 2 —
The following table provides a reconciliation between the beginning and ending balances of items measured at fair value on a
recurring basis in the tables above that used significant unobservable inputs (Level 3).
Debt securities — Auction rate securities only
Student
loan
bonds
Municipal
revenue
bonds Total
Balances at February 27, 2010 $ 261 $ 19 $ 280
Changes in unrealized losses in other comprehensive income (1) 1 —
Sales (152)(18)(170)
Balances at February 26, 2011 $ 108 $ 2 $ 110
Changes in unrealized losses in other comprehensive income (1) — (1)
Sales (27) — (27)
Balances at March 3, 2012 $ 80 $ 2 $ 82
The following methods and assumptions were used to estimate the fair value of each class of financial instrument:
Money Market Funds. Our money market fund investments that are traded in an active market were measured at fair value
using quoted market prices and, therefore, were classified as Level 1. Our money market fund investments not traded on a
regular basis or in an active market, and for which we have been unable to obtain pricing information on an ongoing basis,
were measured using inputs other than quoted market prices that are observable for the investments and, therefore, were
classified as Level 2.