Best Buy 2000 Annual Report Download - page 28

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26
The following table presents the number of stores, by prototype, operated by the Company at the end of
the last three fiscal years.
Store Prototype 2000 1999 1998
28,000 square feet 31 43 48
36,000 square feet 34 34 34
45,000 square feet 231 182 150
58,000 square feet 52 52 52
Small-market stores (30,000 square feet) 9––
Total number of stores at year-end 357 311 284
Average store size (in square feet) 44,000 43,700 43,200
Capital expenditures in fiscal 2001 are expected to approximate $600 million, exclusive of amounts to be
expended on property development, to support accelerated store growth and the Company’s strategic
initiatives. Included in the approximately 60 stores scheduled to open in fiscal 2001 are approximately 12
small-market stores, which the Company introduced in fiscal 2000. In addition to the new stores, the
Company plans to remodel or relocate about 10 stores. Also included in fiscal 2001 capital spending is the
construction of the Company’s seventh distribution center, a 650,000-square-foot facility in Dublin, Ga.,
and the initial land and construction costs for a new corporate office facility scheduled to open in fiscal 2002
that will replace existing owned and leased facilities. The Company also expects to continue to make
significant investments in technology in support of its expanding and increasingly complex business operations.
The Company’s practice has been to lease rather than own real estate; however, for those sites developed
using working capital, the Company has historically sold and leased back those properties under long-term
leases. The costs of development are classified as recoverable costs from developed properties and are included
in current assets. Recoverable costs from developed properties at the end of fiscal 2000 was essentially
unchanged from the prior year, but is expected to increase in fiscal 2001 consistent with the Company’s store
expansion plans. During fiscal 2000, the Company decided to continue to own, rather than sell and lease
back, a recently constructed distribution center in Dinuba, Calif.
In October 1998 and September 1999, the Company’s Board of Directors authorized repurchases of up to
$100 million and $200 million, respectively, of the Company’s common stock. These stock repurchase plans
were completed with a total of 1.8 million and 3.8 million shares repurchased, respectively. In February 2000,
the Company’s Board of Directors authorized the repurchase of up to an additional $400 million of the
Company’s common stock from time to time through open market purchases. This plan has no stated expiration
date. As of February 26, 2000, 1.9 million shares had been repurchased and retired under this plan at a cost
of $100 million.
Management’s Discussion and Analysis of Results of Operations and Financial Condition