Best Buy 2001 Annual Report Download - page 29

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Best Buy Co., Inc.
30
The Company’s practice is to lease rather than own real estate. For those sites developed using working capital, the Company
generally sells and leases back those properties under long-term leases. Recoverable costs from developed properties increased
by $31 million over last year primarily due to the increased development of new stores. During the fourth quarter of fiscal 2 001, the
Company entered into a $60 million, five-year master lease agreement for the purpose of constructing and leasing new retail locations.
Capital spending in fiscal 2001 was $658 million, compared with $361 million and $166 million in fiscal 2000 and fiscal 1999,
respectively. The increase is primarily the result of the Company’s investment in 6 2 new stores and 10 expanded or relocated stores
during fiscal 2001, compared with 47 new stores and 13 expanded or relocated stores in fiscal 2000, and 28 new stores and
five expanded or relocated stores in fiscal 1999. Capital spending in fiscal 20 01 also included investment in store enhancement
projects and expansion of the Company’s distribution and corporate facilities. In addition, the Company is significantly increasing
its investment in its core financial and operating systems to support the Company’s growth and to support more complex sales and
customer transaction processes.
In October 1998 and September 1999 , the Company’s Board of Directors authorized the purchase of up to $100 million and
$200 million, respectively, of the Company’s common stock. These plans were completed with a total of 1.8 million and 3 .8 million
shares purchased and retired, respectively. In February 2000, the Company’s Board of Directors authorized the purchase of up to
$400 million of the Company’s common stock from time to time through open market purchases. The stock purchase program has
no stated expiration date. Approximately 1.9 million shares had been purchased under this plan during the prior fiscal year at a
cost of $100 million. N o additional purchases were made in fiscal 2001.
The Company has a $100 million revolving credit facility that is scheduled to mature in June 2002. There were no borrowings
under that facility during fiscal 2001.
MD&A