Starbucks 2010 Annual Report Download - page 57

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Note 3: Investments (in millions):
Amortized
Cost
Gross
Unrealized
Holding
Gains
Gross
Unrealized
Holding
Losses
Fair
Value
October 3, 2010
Short-term investments:
Available-for-sale securities — Agency obligations .......... $ 30.0 $0.0 $ 0.0 $ 30.0
Available-for-sale securities — Corporate debt securities ...... 15.0 0.0 0.0 15.0
Available-for-sale securities — State and local government
obligations........................................ 0.7 0.0 0.0 0.7
Available-for-sale securities — Government treasury
securities ......................................... 190.7 0.1 0.0 190.8
Trading securities .................................... 58.8 49.2
Total short-term investments .............................. $295.2 $0.1 $285.7
Long-term investments:
Available-for-sale securities — Agency obligations .......... $ 27.0 $0.0 $ 0.0 $ 27.0
Available-for-sale securities — Corporate debt securities ...... 121.4 2.1 0.0 123.5
Available-for-sale securities — State and local government
obligations........................................ 44.8 0.0 (3.5) 41.3
Totallong-terminvestments .............................. $193.2 $2.1 $(3.5) $191.8
September 27, 2009
Short-term investments:
Available-for-sale securities — Corporate debt securities ...... $ 2.5 $0.0 $0.0 $ 2.5
Available-for-sale securities — Government treasury
securities ......................................... 19.0 0.0 0.0 19.0
Trading securities .................................... 58.5 44.8
Total short-term investments .............................. $ 80.0 $ 66.3
Long-term investments:
Available-for-sale securities — State and local government
obligations........................................ $ 57.8 $0.0 $(2.1) $ 55.7
Available-for-sale securities — Corporate debt securities ...... 14.7 0.8 0.0 15.5
Totallong-terminvestments .............................. $ 72.5 $0.8 $(2.1) $ 71.2
Available-for-sale securities
Proceeds from sales of available-for-sale securities were $1.1 million, $5.0 million and $75.9 million in fiscal years
2010, 2009 and 2008, respectively. For fiscal years 2010, 2009 and 2008, realized gains and losses on sales and
maturities were immaterial.
As of October 3, 2010, long-term available-for-sale securities of $191.8 million included $41.3 million invested in
auction rate securities (“ARS”). As of September 27, 2009, long-term available-for-sale securities of $71.2 million
included $55.7 million invested in ARS. ARS have long-dated maturities but provide liquidity through a Dutch
auction process that resets the applicable interest rate at pre-determined calendar intervals. Due to the auction
failures that began in 2008, these securities became illiquid and were classified as long-term investments. The
investment principal associated with the failed auctions will not be accessible until:
• successful auctions resume;
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