Best Buy 2003 Annual Report Download - page 86

such Indebtedness or otherwise to protect the owner thereof against loss in respect
thereof, or (d) entered into for the purpose of assuring in any manner the owner of such
Indebtedness of the payment of such Indebtedness or to protect the owner against loss
in respect thereof; provided, that the term “Guarantee” shall not include endorsements
for collection or deposit in the ordinary course of business;
7.24. “Guarantors” means together Best Buy Co. and Stores L.P.;
7.25. “Indebtedness” with respect to any Person at the time of any determination,
without duplication, all obligations, contingent or otherwise, of such Person which in
conformity with US GAAP should be classified upon the balance sheet of such Person
as liabilities, but in any event shall include: (a) all obligations of such Person for
borrowed money, (b) all obligations of such Person evidenced by bonds, debentures,
notes or other similar instruments, (c) all obligations of such Person upon which
interest charges are customarily paid or accrued, (d) all obligations of such Person
under conditional sale or other title retention agreements relating to property
purchased by such Person, (e) all obligations of such Person issued or assumed as the
deferred purchase price of property or services, (f) all obligations of others secured by
any Lien on property owned or acquired by such Person, whether or not the obligations
secured thereby have been assumed, (g) all capitalized lease obligations of such Person,
(h) all obligations of such Person in respect of interest rate protection agreements, (i) all
obligations of such Person, actual or contingent, as an account party in respect of letters
of credit or bankers’ acceptances, (j) all obligations of any partnership or joint venture
as to which such Person is or may become personally liable, and (k) all Guarantees by
such Person of Indebtedness of others. For clarification purposes, Indebtedness of the
Borrower shall include the Indebtedness arising from this Offer Letter;
7.26. “Interest Coverage Ratio” means for any Measurement Period, the ratio of (a)
the sum of Best Buy Co.’s (i) Earnings Before Interest, Incomes Taxes, Depreciation
and Amortization plus (ii) Rental and Lease Expense to (b) the sum of (i) Net Interest
Expense, plus (ii) Rental and Lease Expense;
16
7.27. “Interest Expense” means for any period of determination, the aggregate
consolidated amount, without duplication, of interest paid, accrued (including without
limitation, payment in kind interest) or scheduled to be paid in respect of any
consolidated Indebtedness of Best Buy Co. and its Subsidiaries, including (a) all but the
principal component of payments in respect of conditional sale contracts, capitalized
leases and other title retention agreements, and (b) net costs (income) under interest