Best Buy 2008 Annual Report Download - page 92

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$ in millions, except per share amounts or as otherwise noted
At March 1, 2008, stock options to purchase 28.8 million shares of common stock were outstanding as follows (shares
in millions):
Exercisable Unexercisable Total
Weighted- Weighted- Weighted-
Average Average Average
Price Price Price
Shares % per Share Shares % per Share Shares % per Share
In-the-money 16.5 93 $32.49 2.7 24 $43.60 19.2 67 $34.05
Out-of-the-money 1.2 7 54.65 8.4 76 50.53 9.6 33 51.04
Total 17.7 100 $34.00 11.1 100 $48.84 28.8 100 $39.73
The computation of dilutive shares outstanding excludes average market price of our common shares and,
the out-of-the-money stock options because such therefore, the effect would be antidilutive (i.e., including
outstanding options’ exercise prices were greater than the such options would result in higher earnings per share).
The following table presents a reconciliation of the numerators and denominators of basic and diluted earnings per share
in fiscal 2008, 2007 and 2006:
2008 2007 2006
Numerator:
Net earnings, basic $1,407 $1,377 $1,140
Adjustment for assumed dilution:
Interest on convertible debentures due in 2022, net of tax 6 7 7
Net earnings, diluted $1,413 $1,384 $1,147
Denominator (in millions):
Weighted-average common shares outstanding 439.9 482.1 490.3
Effect of potentially dilutive securities:
Shares from assumed conversion of convertible debentures 8.8 8.8 8.8
Stock options and other 4.2 5.3 5.7
Weighted-average common shares outstanding, assuming dilution 452.9 496.2 504.8
Basic earnings per share $ 3.20 $ 2.86 $ 2.33
Diluted earnings per share $ 3.12 $ 2.79 $ 2.27
Open Market Repurchases
Repurchase of Common Stock
The following table presents open market share
On June 26, 2007, our Board of Directors (‘‘Board’’)
repurchases in fiscal 2008, 2007 and 2006 (shares
authorized a new $5,500 share repurchase program. The
in millions):
new program terminated and replaced our prior $1,500
share repurchase program authorized by our Board in 2008 2007 2006
June 2006. The June 2006 program terminated and Total number of shares
replaced a $1,500 share repurchase program authorized repurchased 9.8 11.8 18.3
by the Board in April 2005. There is no expiration date Total cost of shares
governing the period over which we can make our share repurchased $461 $ 599 $ 772
repurchases under the June 2007 share repurchase During fiscal 2008, we purchased and retired 9.8 million
program. At March 1, 2008, $2,500 remains available shares at a cost of $461 under our June 2006 share
for future purchases under the June 2007 share repurchase program. During fiscal 2008, we made no
repurchase program. Repurchased shares have been
retired and constitute authorized but unissued shares.
84