Best Buy 1999 Annual Report Download - page 39

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NOT E S T O CONS OL I DAT ED F I NANCI AL S T AT E ME NT S
$ in thousands, except per share amounts
Option activity for the last three fiscal years is as follows:
E I GH T E D VE R A GE
X E R CI S E R I CE
H A R E S E R H A R E
Outstanding March 2, 1996 17,080,000 $ 4.74
Granted 10,660,000 3.0 5
Exercised ( 1 ,7 8 4,0 0 0) 1 .5 4
Canceled ( 9 ,0 5 6,0 0 0) 5 .6 1
Outstanding March 1, 1997 16,900,000 3 .54
Granted 7,720,0 00 3.24
Exercised ( 5 ,3 5 6,0 0 0) 2 .7 8
Canceled ( 2 ,5 2 0,0 0 0) 3 .4 4
Outstanding February 28, 1998 16,744,000 3 .66
Granted 9,423,0 00 17.27
Exercised ( 4,9 09,0 0 0) 4 .5 6
Canceled ( 2 ,1 1 9,0 00) 9 .7 4
Outstanding February 27, 1999 19,139,000 9.4 6
Exercisable options at the end of fiscal 1999, 1998 and 1997 were 5,038,000, 4,716,000 and
5,860,000, respectively. The following table summarizes information concerning options
outstanding and exercisable as of February 27, 1999:
E I GH T E D
AVE R A GE E I GH T E D E I GH T E D
A N GE OF E MA I N I N G AVE R A GE AVE R A GE
X E R CI S E U MB E R ON T R A CT U A L X E R CI S E U M B E R X E R CI S E
R I CE S U T S T A N DI N G I F E E A R S R I CE X E R CI S A B L E R I CE
$0 to $5 9,214,0 0 0 5.68 $ 2.91 3 ,746,0 0 0 $ 2.83
$5 to $10 1,559,0 0 0 1.76 5.90 1 ,132,000 5.9 1
$10 to $15 5 8 ,000 8.99 14.36 1 0 ,000 14.10
$15 to $20 8 ,162,000 9.16 17.21 150,000 17.3 9
$20 to $25 9 5 ,000 9.58 23.66 – – – –
$25 to $30 2 1 ,000 9.69 25.31 – – – –
$30 to $35 3 0 ,000 9.86 31.75 – – – –
$0 to $35 19,139,0 00 6.8 8 $ 9.4 6 5,038,0 00 $ 3.98
Earnings Per Share:
The following table presents a reconciliation of the numerators and denominators of basic and
diluted earnings per common share for fiscal 1999, 1998 and 1997:
1999 1998 1997
Numerator:
Net earnings $ 224,437 $ 94,453 $ 1,748
Interest on preferred securities, net of tax 771 9,179 – –
Net earnings assuming dilution $ 225,208 $ 103,6 3 2 $ 1,7 4 8
Denominator ( 000’s):
Weighted average common shares outstanding 199,1 8 5 175,4 1 6 172,6 8 6
Effect of dilutive securities:
Employee stock options 8 ,726 4,404 1,8 0 5
Preferred securities 2,095 20 ,431 – –
Weighted average common shares outstanding
assuming dilution 210,0 0 6 200,2 51 1 7 4 ,491
Basic earnings per share $ 1.1 3 $ .54 $ .01
Diluted earnings per share $ 1.07 $ .5 2 $ .01
F I S CAL 1999 B E S T B U Y ANNU AL R E POR T
37