Best Buy 2007 Annual Report Download - page 38

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23
PART II
PART II
Item 5.Market for Registrant’s Common Equity,
Related Stockholder Matters and Issuer Purchases
of Equity Securities.
Market Information
Our common stock is traded on the New York Stock
Exchange under the ticker symbol BBY. The table below sets
forth the high and low sales prices of our common stock as
reported on the New York Stock Exchange — Composite
Index during the periods indicated.
Sales Price
High Lo
w
Fiscal 2007
First Quarter $59.50 $50.49
Second Quarter 55.51 43.51
Third Quarter 58.49 44.53
Fourth Quarter 56.69 45.08
Fiscal 2006
First Quarter $36.99 $31.93
Second Quarter 53.17 36.20
Third Quarter 50.88 40.40
Fourth Quarter 56.00 42.75
Holders
As of April 30, 2007, there were 3,683 holders of record of
Best Buy common stock.
Dividends
In fiscal 2004, our Board initiated the payment of a regular
quarterly cash dividend, then $0.07 per common share per
quarter. A quarterly cash dividend has been paid in each
subsequent quarter. Effective with the quarterly cash
dividend paid in the third quarter of fiscal 2005, we
increased our quarterly cash dividend per common share by
10%. Effective with the quarterly cash dividend paid in the
third quarter of fiscal 2006, we increased our quarterly cash
dividend per common share by 9%, to $0.08 per common
share per quarter. Effective with the quarterly cash dividend
paid in the third quarter of fiscal 2007, we increased our
quarterly cash dividend per common share by 25% to
$0.10 per common share per quarter. The payment of cash
dividends is subject to customary legal and contractual
restrictions.
Future dividend payments will depend on our earnings,
capital requirements, financial condition and other factors
considered relevant by our Board.
Purchases of Equity Securities by the Issuer and
Affiliated Purchasers
From time to time, we repurchase our common stock in the
open market pursuant to programs approved by our Board.
We may repurchase our common stock for a variety of
reasons, such as acquiring shares to offset dilution related
to equity-based incentives, including stock options and our
employee stock purchase plan, and optimizing our capital
structure.
In June 2006, our Board authorized a $1.5 billion share
repurchase program. The program, which became effective
on June 21, 2006, terminated and replaced a $1.5 billion
share repurchase program authorized by our Board in
April 2005. There is no expiration date governing the
period over which we can make our share repurchases
under the June 2006 share repurchase program.
During the fourth quarter of fiscal 2007, we purchased and
retired 2.3 million shares at a cost of $116 million pursuant
to the June 2006 share repurchase program. At the end of
fiscal 2007, $1.2 billion of the $1.5 billion originally
authorized by our Board was available for future share
repurchases.
We consider several factors in determining when to make
share repurchases including, among other things, our cash
needs and the market price of our stock. We expect that
cash provided by future operating activities, as well as
available cash and cash equivalents and short-term
investments, will be the sources of funding for our share
repurchase program. Based on the anticipated amounts to
be generated from those sources of funds in relation to the
remaining authorization approved by our Board under the
June 2006 share repurchase program, we do not expect
that future share repurchases will have a material impact on
our short-term or long-term liquidity.