Best Buy 2008 Annual Report Download - page 53

The following table presents our capital expenditures for each of the past three fiscal years ($ in millions):
2008 2007 2006
New stores $267 $253 $244
Store-related projects(1) 222 251 206
Information technology 259 121 115
Other 49 108 83
Total capital expenditures $797 $733 $648
(1) Includes store remodels and expansions, as well as various merchandising projects.
convertible at the holders’ option at March 3, 2007, and
Debt and Capital
have not been convertible through April 25, 2008.
In January 2002, we sold convertible subordinated
The debentures have an interest rate of 2.25% per annum.
debentures having an aggregate principal amount of
The interest rate may be reset, but not below 2.25% or
$402 million. The proceeds from the offering, net of
above 3.25%, on July 15, 2011, and July 15, 2016. One
$6 million in offering expenses, were $396 million. The
of our subsidiaries has guaranteed the convertible
debentures mature in 2022 and are callable at par, at our
debentures.
option, for cash on or after January 15, 2007.
At the end of fiscal 2008, $197 million was outstanding
Holders may require us to purchase all or a portion of
under financing lease obligations.
their debentures on January 15, 2012, and January 15,
2017, at a purchase price equal to 100% of the principal
amount of the debentures plus accrued and unpaid Share Repurchases and Dividends
interest up to but not including the date of purchase. We From time to time, we repurchase our common stock in
have the option to settle the purchase price in cash, stock, the open market pursuant to programs approved by our
or a combination of cash and stock. On January 15, Board. We may repurchase our common stock for a
2007, holders had the option to require us to purchase all variety of reasons, such as acquiring shares to offset
or a portion of their debentures, at a purchase price equal dilution related to equity-based incentives, including stock
to 100% of the principal amount of the debentures plus options and our employee stock purchase plan, and
accrued and unpaid interest up to but not including the optimizing our capital structure.
date of purchase. However, no debentures were so
purchased. In June 2007, our Board authorized a $5.5 billion share
repurchase program. The program, which became
The debentures become convertible into shares of our effective on June 26, 2007, terminated and replaced a
common stock at a conversion rate of 21.7391 shares per $1.5 billion share repurchase program authorized by our
$1,000 principal amount of debentures, equivalent to an Board in June 2006. There is no expiration date governing
initial conversion price of $46.00 per share, if the closing the period over which we can make our share repurchases
price of our common stock exceeds a specified price for under the June 2007 share repurchase program. Prior to
20 consecutive trading days in a 30-trading day period termination of the June 2006 share repurchase program,
preceding the date of conversion, if our credit rating falls we purchased and retired 9.8 million shares at a cost of
below specified levels, if the debentures are called for $461 million under the June 2006 program in fiscal
redemption or if certain specified corporate transactions 2008.
occur. During a portion of fiscal 2007, our closing stock
price exceeded the specified stock price for more than The June 2006 share repurchase program, which became
20 trading days in a 30-day trading period. Therefore, effective June 21, 2006, terminated and replaced a
debenture holders had the option to convert their $1.5 billion share repurchase program authorized by our
debentures into shares of our common stock. However, no Board in April 2005.
debentures were so converted. Due to changes in the price
of our common stock, the debentures were no longer
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