Starbucks 2000 Annual Report Download - page 22

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Note 4: Short-term investments
The Company’s investments consist of the following (in thousands):
GROSS GROSS
UNREALIZED UNREALIZED
FAIR AMORTIZED HOLDING HOLDING
October 1, 2000: VALUE COST GAINS LOSSES
Short-term investments - available-for-sale:
U.S. Government obligations $ 10,990 $ 10,996 $ 3 $ (9)
Commercial paper 45,356 45,373 1 (18)
Marketable equity securities 1,227 1,227 - -
Total $ 57,573 $ 57,596 $ 4 $ (27)
Short-term investments - trading 3,763
Total short-term investments $ 61,336
GROSS GROSS
UNREALIZED UNREALIZED
FAIR AMORTIZED HOLDING HOLDING
October 3, 1999: VALUE COST GAINS LOSSES
Short-term investments - available-for-sale:
Corporate debt securities $ 17,233 $ 17,123 $ 155 $ (45)
U.S. Government obligations 4,988 4,976 13 (1)
Commercial paper 18,706 18,751 - (45)
Mutual funds 2,056 2,002 73 (19)
Marketable equity securities 8,384 8,258 313 (187)
Total $ 51,367 $ 51,110 $ 554 $ (297)
Long-term investments:
U.S. Government obligations $ 5,028 $ 5,044 $ - $ (16)
Available-for-sale securities with remaining maturities of one year or less are classified as short-term
investments. Securities with remaining maturities longer than one year are classified as long-term and
are included in the line item “Other investments” on the accompanying consolidated balance sheets.
The specific identification method is used to determine a cost basis for computing realized gains
and losses.
In fiscal 2000, 1999 and 1998, proceeds from the sale of investment securities were $49.2 million, $3.6
million and $5.1 million, respectively. Gross realized gains and losses from the sale of securities were not
material in 2000, 1999 and 1998.
During fiscal 2000, the Company recorded a loss of $6.8 million on its investment in the common
stock of Talk City, Inc., due to an impairment that was determined by management to be other than
temporary. The remaining fair value of the investment was $1.2 million as of October 1, 2000.
Trading securities are classified as short-term investments. The trading securities are marketable equity
funds designated to approximate the Company’s liability under the Management Deferred
Compensation Plan (“MDCP”). The corresponding deferred compensation liability of $3.8 million is
included in “Accrued compensation and related costs” on the accompanying consolidated balance
sheets. The change in net unrealized holding gains in the trading portfolio included in earnings during
the year was $0.3 million. There were no trading securities as of October 3, 1999.
P. 38 starbucks coffee company