Best Buy 2002 Annual Report Download - page 51

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Best Buy Co., Inc. 49
Repurchase of Common Stock
In September 1999, our Board of Directors authorized the
purchase of up to $200 of our common stock. This program
was completed with a total of 5.
7
million shares purchased
and retired.
In February 2000, our Board of Directors authorized the
purchase of up to $400 of our common stock from time to
time through open market purchases. This program has no
stated expiration date. As of March 2, 2002, 2.9 million
shares had been purchased and retired at a cost of $100.
No shares were repurchased in fiscal 2002 or 2001.
5. Operating Lease Commitments
We currently lease portions of our corporate facilities and
conduct essentially all of our retail and the majority of our
distribution operations from leased locations. The terms of
the lease agreements generally range from three to
20 years. The leases require payment of real estate taxes,
insurance and common area maintenance in addition to
rent. Most of the leases contain renewal options and
escalation clauses, and certain stores require contingent
rents based on specified percentages of sales. In addition,
certain store leases provide us an early cancellation option
if sales for a designated period do not reach a specified
level as defined in the lease. Other leases contain covenants
related to maintenance of financial ratios. Also, we lease
certain equipment under operating leases. Transaction costs
associated with the sale and lease back of properties and
any gain or loss are recognized over the terms of the lease
agreements. Proceeds from the sale and lease back of
properties are included in the net change in recoverable
costs from developed properties.
The following table presents a reconciliation of the numerators and denominators of basic and diluted earnings per
common share for fiscal 2002, 2001 and 2000:
2002 2001 2000
Numerator:
Net earnings $ 570 $ 396 $ 347
Denominator (in millions):
Weighted average common shares outstanding 316.0 310.0 306.3
Effect of dilutive securities:
Employee stock options 6.5 9.0 12.6
Weighted average common shares
outstanding assuming dilution 322.5 319.0 318.9
Basic earnings per share $ 1.80 $ 1.28 $ 1.13
Diluted earnings per share $1.
77
$ 1.24 $ 1.09
$ in millions, except per share amounts