Best Buy 2005 Annual Report Download - page 93

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$ in millions, except per share amounts
The following table presents a reconciliation of the numerators and denominators of basic and diluted earnings per share
from continuing operations for fiscal 2005, 2004 and 2003:
2005 2004 2003
Numerator:
Earnings from continuing operations, basic $ 934 $ 800 $ 622
Adjustment for assumed dilution:
Interest on convertible debentures due in 2022, net of tax 7 6 6
Earnings from continuing operations, diluted $ 941 $ 806 $ 628
Denominator (in millions):
Weighted average common shares outstanding 325.9 323.3 321.1
Effect of dilutive securities:
Shares from assumed conversion of convertible debentures 5.8 5.8 5.8
Stock options and other 4.9 4.8 3.8
Weighted average common shares outstanding, assuming dilution 336.6 333.9 330.7
Basic earnings per share — continuing operations $ 2.87 $ 2.47 $ 1.93
Diluted earnings per share — continuing operations $ 2.79 $ 2.41 $ 1.90
During fiscal 2005, we purchased and retired 2.3 million
Repurchase of Common Stock shares at a cost of $118 under the $500 share
In fiscal 2000, our Board of Directors (Board) authorized repurchase program, and 1.6 million shares at a cost of
the purchase of up to $400 of our common stock from $82 under the $400 share repurchase program.
time to time through open market purchases. On June 24,
2004, we canceled the $400 program and no further Comprehensive Income
purchases were made under this share repurchase Comprehensive income is computed as net earnings plus
program. Through June 24, 2004, we had purchased and certain other items that are recorded directly to
retired 6.1 million shares at a cost of $282 since the shareholders’ equity. The only significant other item
inception of the program in fiscal 2000. included in comprehensive income is foreign currency
In June 2004, our Board authorized the purchase of up to translation adjustments. Foreign currency translation
$500 of our common stock from time to time through adjustments do not include a provision for income tax
open market purchases. The $500 share repurchase because earnings from foreign operations are considered
program, which became effective on June 24, 2004, to be indefinitely reinvested outside the U.S. Investment
terminated and replaced the $400 share repurchase gains/losses were not significant. Comprehensive income
program authorized by our Board in fiscal 2000. was $1,047, $764 and $132 for fiscal 2005, 2004 and
2003, respectively.
In April 2005, our Board authorized the purchase of up
to $1.5 billion of our common stock from time to time
through open market purchases. This share repurchase
program has no stated expiration date. The $1.5 billion
share repurchase program terminated and replaced the
$500 share repurchase program authorized by our Board
in June 2004.
77