Best Buy 2003 Annual Report Download - page 170

Granted 9,382,000 37.01
Exercised (6,846,000) 6.88
Canceled (1,417,000) 35.98
Outstanding on March 2, 2002 27,487,000 30.29
Granted 14,253,000 44.06
Exercised (2,850,000) 14.01
Canceled (3,336,000) 43.65
Outstanding on March 1, 2003 35,554,000 $ 35.89
(1) Represents Musicland options converted into Best Buy Co., Inc. options in connection with the acquisition of Musicland.
Exercisable options at the end of fiscal 2003, 2002 and 2001 were 13.4 million, 9.9 million and 9.4 million, respectively. The
following table summarizes information concerning options outstanding and exercisable as of March 1, 2003:
Range of
Exercise Prices Number Outstanding
Weighted
Average
Remaining
Contractual
Life (Years)
Weighted
Average
Exercise
Price Number Exercisable
Weighted
Average
Exercise
Price
$0 to $10 2,154,000 4.40 $ 2.08 2,021,000 $ 2.22
$10 to $20 4,061,000 5.20 11.62 4,031,000 11.58
$20 to $30 4,633,000 9.75 28.40 138,000 25.69
$30 to $40 9,723,000 7.54 36.31 4,017,000 35.74
$40 to $50 6,191,000 7.25 46.65 3,042,000 46.66
$50 to $60 8,792,000 9.08 51.28 143,000 51.75
$0 to $60 35,554,000 7.70 $ 35.89 13,392,000 $ 25.96
57
$ in millions, except per share amounts
Restricted Stock Plan
We adopted a restricted stock award plan in fiscal 2001. The plan authorizes us to issue up to 1.5 million shares of our common stock
to our eligible employees, consultants and independent contractors, as well as to our Board of Directors. Restricted shares have the
same rights as other shares of common stock, except they are not transferable until fully vested. Restrictions lapse over a vesting
period of at least three years, during which no more than 25% may vest at the time of award, and no more than 25% may vest on each
anniversary date thereafter. All shares still subject to restrictions are forfeited and returned to the plan if the plan participant’s
relationship with us were to be terminated. The number of shares granted under this plan has not been significant.
Earnings per Share
Basic earnings per share is computed based on the weighted average number of common shares outstanding. Diluted earnings per
share is computed based on the weighted average number of common shares outstanding adjusted by the number of additional shares
that would have been outstanding had the potentially dilutive common shares been issued. Potentially dilutive shares of common stock
include stock options; convertible debentures, assuming certain criteria are met (see note 4, Convertible Debentures); and other
stock−based awards granted under stock−based compensation plans. The computation of dilutive shares excluded antidilutive
outstanding stock options to purchase 24.6 million, 7.2 million and 7.2 million shares as of March 1, 2003; March 2, 2002; and March
3, 2001, respectively, because the exercise prices for those options were greater than the average market price of the common shares.
The shares related to the convertible debentures were not included in our diluted earnings per share computation, as the criteria for
conversion of the debentures were not met.
The following table presents a reconciliation of the numerators and denominators of basic and diluted earnings per common share
from continuing operations for fiscal 2003, 2002 and 2001:
2003 2002 2001
Numerator:
Earnings from continuing operations $ 622 $ 570 $ 401