Best Buy 2005 Annual Report Download - page 75

Download and view the complete annual report

Please find page 75 of the 2005 Best Buy annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 118

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118

Consolidated Statements of Earnings
$ in millions, except per share amounts
February 26, February 28, March 1,
For the Fiscal Years Ended 2005 2004 2003
Revenue $27,433 $24,548 $20,943
Cost of goods sold 20,938 18,677 15,998
Gross profit 6,495 5,871 4,945
Selling, general and administrative expenses 5,053 4,567 3,935
Operating income 1,442 1,304 1,010
Net interest income (expense) 1 (8) 4
Earnings from continuing operations before income tax expense 1,443 1,296 1,014
Income tax expense 509 496 392
Earnings from continuing operations 934 800 622
Loss from discontinued operations (Note 2), net of $17 and $119 tax — (29) (441)
Gain (loss) on disposal of discontinued operations (Note 2) 50 (66) —
Cumulative effect of change in accounting principle for goodwill (Note 1), net
of $24 tax — — (40)
Cumulative effect of change in accounting principle for vendor allowances
(Note 1), net of $26 tax — — (42)
Net earnings $ 984 $ 705 $ 99
Basic earnings (loss) per share:
Continuing operations $ 2.87 $ 2.47 $ 1.93
Discontinued operations — (0.09) (1.37)
Gain (loss) on disposal of discontinued operations 0.15 (0.20) —
Cumulative effect of accounting changes — — (0.25)
Basic earnings per share $ 3.02 $ 2.18 $ 0.31
Diluted earnings (loss) per share:(1)
Continuing operations $ 2.79 $ 2.41 $ 1.90
Discontinued operations — (0.09) (1.34)
Gain (loss) on disposal of discontinued operations 0.15 (0.20) —
Cumulative effect of accounting changes — — (0.25)
Diluted earnings per share $ 2.94 $ 2.13 $ 0.31
Basic weighted average common shares outstanding (in millions) 325.9 323.3 321.1
Diluted weighted average common shares outstanding (in millions)(1) 336.6 333.9 330.7
(1) The calculation of diluted earnings per share assumes the conversion of our convertible debentures due in 2022 into 5.8 million
shares of common stock and adds back related after-tax interest expense of $6.5 for all periods presented.
See Notes to Consolidated Financial Statements.
59