Best Buy 2006 Annual Report Download - page 90

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$ in millions, except per share amounts
76
The following table presents a reconciliation of the numerators and denominators of basic and diluted earnings per share
from continuing operations for fiscal 2006, 2005 and2004:
2006 2005 2004
Numerator:
Earnings fromcontinuingoperations, basic $ 1,140 $ 934 $800
Adjustmentfor assumed dilution:
Interest on convertible debentures duein 2022, net oftax 7 7 6
Earnings from continuingoperations, diluted $ 1,147 $ 941 $806
Denominator (in millions):
Weighted-average common shares outstanding 490.3 488.9 485.0
Effect of dilutive securities:
Shares from assumed conversion of convertible debentures 8.8 8.8 8.8
Non-qualified stock options and other 5.7 7.3 7.0
Weighted-average common shares outstan ding, assuming dilution 504.8
505.0 500.8
Basic earnings per share — continuing operations $ 2.33 $ 1.91 $ 1.65
Diluted earnings per share — continuing operations $ 2.27 $ 1.86 $ 1.61
Repurchase of Common Stock
Our Board authorized a $1,500 share repurchase program
in April 2005. The program, which became effective on
April 27, 2005, terminated and replaceda $500 share
repurchase program authorized by our Board in June 2004.
There is no expiration date governing the period over which
we can make our sharerepurchases underthe $1,500
share repurchase program.
During fiscal 2006, we purchased and retired 16.5 million
shares at a cost of $711 under the $1,500share
repurchase program, and 1.8 million shares at a cost of
$61 under the $500 share repurchase program.
Comprehensive Income
Comprehensive income is computed as net earnings plus
certain other items that are recorded directly to
shareholders’ equity. The significant components of
comprehensive income include foreign currency translation
adjustments and unrealized gains on available-for-sale
marketable equity securities. Foreign currency translation
adjustments do not include a provisionfor income tax
expense because earnings from foreign operations are
considered to be indefinitely reinvested outside the United
States. Comprehensive income was $1,252, $1,047 and
$764 for fiscal 2006, 2005 and 2004, respectively.
6. Net Interest Income (Expense)
Net interest income (expense) for fiscal 2006, 2005 and 2004 was comprised of the following:
2006 2005 2004
Interest expense (1)$ (30) $(44 ) $(32)
Interest income 10345 23
Dividend income 4— —
Capitalized interest — — 1
Net interest income (expense) from continuingoperations $77$ 1 $ (8)
(1)The fiscal 2006 interest expense includes $8 of interest expense related to financing leases. The fiscal 2005 interest expense includes
$21 of expense related to our lease accounting corrections. See Note 7,Leases, for additional information.