Best Buy 2005 Annual Report Download - page 70

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For first quarter of fiscal 2006, we are anticipating net higher than the current rates. If the rates on the debt were
earnings in a range of $0.27 to $0.32 per diluted share, to be reset one percentage point higher, our annual
including stock-based compensation expense of $0.05 per interest expense would increase by approximately
diluted share. This earnings range assumes a comparable $4 million. We do not currently manage the risk through
store sales gain in the low single digits, as well as the use of derivative instruments.
expenses associated with converting additional stores to We have market risk arising from changes in foreign
our customer centricity operating model and growing our currency exchange rates as a result of our operations in
services business. Canada. At this time, we do not manage the risk through
the use of derivative instruments. A 10% adverse change
Item 7A. Quantitative and Qualitative
in the foreign currency exchange rate would not have a
Disclosures About Market Risk
significant impact on our results of operations or financial
Our debt is not subject to material interest-rate volatility position.
risk. The rates on a substantial portion of our debt may
be reset, but may not be more than one percentage point
54