Best Buy 2005 Annual Report Download - page 58

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The following table presents a reconciliation of the numerator and denominator used in the calculation of our adjusted
debt-to-capitalization ratio, including capitalized operating lease obligations ($ in millions):
Fiscal Year 2005 2004
Debt (including current portion) $ 600 $ 850
Capitalized operating lease obligations (8 times rental expense) 4,007 3,746
Total debt (including capitalized operating lease obligations) $4,607 $4,596
Debt (including current portion) $ 600 $ 850
Capitalized operating lease obligations (8 times rental expense) 4,007 3,746
Total shareholders’ equity 4,449 3,422
Adjusted capitalization $9,056 $8,018
Debt-to-capitalization ratio 12% 20%
Adjusted debt-to-capitalization ratio (including capitalized operating lease obligations) 51% 57%
Contractual Obligations
The following table presents information regarding our contractual obligations by fiscal year ($ in millions):
Payments due by period
Less than More than
Contractual Obligations Total 1 year 1-3 years 3-5 years 5 years
Long-term debt obligations $ 425 $ 2 $ 408 $ 12 $ 3
Capital lease obligations 13 5 4 3 1
Master lease obligations 55 55 — — —
Financing lease obligations 107 10 17 19 61
Interest payments 218 23 37 32 126
Operating lease obligations 5,850 541 1,065 997 3,247
Purchase obligations(1) 1,514 689 404 259 162
Deferred compensation(2) —— — — —
Total $8,182 $1,325 $1,935 $1,322 $3,600
Note: For more information refer to Note 4, Debt; Note 7, Leases; and Note 11, Contingencies and Commitments, respectively, in the
Notes to Consolidated Financial Statements, included in Item 8, Financial Statements and Supplementary Data, of this Annual Report on
Form 10-K.
(1) Purchase obligations include agreements to purchase goods or services that are enforceable, are legally binding and specify all
significant terms, including fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the
approximate timing of the transaction. Purchase obligations do not include agreements that are cancelable without penalty.
Additionally, although they are not legally binding agreements, we included open purchase orders in the table above. Substantially
all open purchase orders are fulfilled within 30 days.
(2) Included in other long-term liabilities on our consolidated balance sheet at February 26, 2005, is a $64 million obligation for
deferred compensation. As the specific payment dates for the deferred compensation is unknown, related balances have not been
reflected in the above table.
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