Best Buy 2000 Annual Report Download - page 44

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42
$ in thousands, except per share amounts
Earnings per Share
The following table presents a reconciliation of the numerators and denominators of basic and diluted earnings
per common share for fiscal 2000, 1999 and 1998:
2000 1999 1998
Numerator:
Net earnings $ 347,070 $ 216,282 $ 81,938
Interest on preferred securities, net of tax –771 9,179
Net earnings assuming dilution $ 347,070 $ 217,053 $ 91,117
Denominator (000s):
Weighted average common shares outstanding 204,194 199,185 175,416
Effect of dilutive securities:
Employee stock options 8,386 8,726 4,404
Preferred securities –2,095 20,431
Weighted average common shares outstanding
assuming dilution 212,580 210,006 200,251
Basic earnings per share $ 1.70 $ 1.09 $ .47
Diluted earnings per share $ 1.63 $ 1.03 $ .46
Repurchase of Common Stock
In October 1998 and September 1999, the Company’s Board of Directors authorized the purchases of up to
$100,000 and $200,000, respectively, of the Company’s common stock. These plans were completed with
a total of 1.8 million and 3.8 million shares purchased and retired, respectively.
In February 2000, the Company’s Board of Directors authorized the purchase of up to $400,000 of the
Company’s common stock from time to time through open market purchases. This plan has no stated expiration
date. As of February 26, 2000, 1.9 million shares were purchased and retired at a cost of $100,000.
Other
Subsequent to year-end, the Company finalized a comprehensive strategic alliance with Microsoft Corp. In
connection with the alliance, Microsoft purchased 3.9 million shares of the Company’s common stock for
$200,000.
Notes to Consolidated Financial Statements