Best Buy 2005 Annual Report Download - page 90

$ in millions, except per share amounts
any period presented. However, amounts outstanding The future maturities of long-term debt, including master
under letters of credit reduce amounts available under and capitalized leases, consist of the following:
these facilities. Fiscal Year
2006 $ 72
In March 2004, our International segment entered into an
2007(1) 415
agreement for a $20 revolving demand facility, of which
2008 14
$16 is available from February through July and $20 is
2009 14
available from August through January of each year.
2010 20
There is no set expiration date for this facility. There were
Thereafter 65
no borrowings outstanding under this facility at
February 26, 2005. Outstanding letters of credit and $600
letters of guarantee reduced the amount available under (1) Holders of our debentures due in 2022 may require us to
this facility to $15 at February 26, 2005. All borrowings purchase all or a portion of their debentures on January 15,
2007. The table above assumes that all holders of our
under this facility are made available at the sole debentures exercise their redemption options.
discretion of the lender and are payable on demand.
5. Shareholders’ Equity Stock Compensation
Borrowings under this facility are unsecured and bear
interest at rates specified in the agreement. The agreement Plans
for this facility contains certain reporting and operating Our shareholders approved the 2004 Omnibus Stock and
covenants. This facility replaced a $41 unsecured credit Incentive Plan (Omnibus Plan) at our 2004 Regular
facility, which was canceled on March 1, 2004. There Meeting of Shareholders. The Omnibus Plan authorizes us
were no borrowings outstanding under this facility at to grant or issue stock options, restricted stock,
February 28, 2004. performance awards and other equity awards up to a
total of 16 million shares. Under the terms of the Omnibus
Other Plan, awards may be granted to our employees, officers,
The fair value of long-term debt approximated $603 and advisors, consultants and directors. Awards issued under
$902 as of February 26, 2005, and February 28, 2004, the Omnibus Plan vest as determined by our
respectively, based on the ask prices quoted from external Compensation and Human Resources Committee at the
sources, compared with carrying values of $600 and time of grant. For a complete description of the Omnibus
$850, respectively. Plan, see our 2004 Proxy Statement dated May 17,
2004. As of February 26, 2005, a total of 11.7 million
We have a master lease program which was used to shares were available for future grants under the
construct and lease new retail locations. At the end of Omnibus Plan.
fiscal 2005, $55 in leases for new stores was outstanding
Upon shareholder approval of the Omnibus Plan, all of
under the master lease program. In the fourth quarter of
our previous stock compensation plans were terminated.
fiscal 2005, we reclassified the debt associated with the
However, existing awards under those plans will continue
master lease program to current, based on the terms of
to vest in accordance with the original vesting schedule
the agreement. On May 4, 2005, we repaid the
and will expire at the end of their original term.
outstanding balance of $54 on the master lease program.
Stock Options
Outstanding options were granted at exercise prices equal
to the fair market value of our common stock on the date
of grant and have a 10-year term. Options issued to
employees generally vest over a four-year period. Options
issued to our directors vest immediately upon grant.
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