Best Buy 2001 Annual Report Download - page 42

Download and view the complete annual report

Please find page 42 of the 2001 Best Buy annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 56

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56

43
$ in thousands, except per share amounts
Advertising Costs
Advertising costs, which are included in selling, general and administrative expenses, are expensed the first time the advertisement runs.
Earnings per Share
Basic earnings per share is computed based on the weighted average number of common shares outstanding. Diluted earnings
per share is computed based on the weighted average number of common shares outstanding adjusted by the number of additional
shares that would have been outstanding had the potentially dilutive common shares been issued. Potentially dilutive shares of
common stock include stock options and other stock-based awards granted under stock-based compensation plans. Convertible
preferred securities were assumed to be converted into common stock, and any related interest expense, net of income taxes, was
added back to net earnings when the assumed conversion resulted in lower earnings per share.
The Company completed two-for-one stock splits effected in the form of 100 % stock dividends distributed on March 18, 1999, and
May 26, 1998. All share and per share information reflects these stock splits.
Reclassifications
Certain previous year amounts have been reclassified to conform to the current year presentation. These reclassifications had no
impact on net earnings or total shareholders’ equity.
Best Buy Co., Inc.
N otes