Exhibit 11.1
BEST BUY CO., INC.
COMPUTATION OF EARNINGS PER COMMON SHARE
February 26, February 27, February 29,
For the three years ended: 1994 1993 1992
------------ ------------ ------------
Earnings:
Earnings before cumulative effect of
change in accounting principle
available to common shares $41,710,000 $19,855,000 $ 9,601,000
Cumulative effect of change in
accounting for income taxes (425,000)
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Net earnings available to
common shares $41,285,000 $19,855,000 $ 9,601,000
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Shares:
Weighted average common shares
outstanding 40,036,000 33,874,000 27,390,000
Adjustment:
Assumed issuance of shares purchased
under stock option plans 1,300,000 902,000 1,458,000
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Total common equivalent shares -
Primary 41,336,000 34,776,000 28,848,000
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Earnings per common and common equivalent
share:
Primary:
Earnings before cumulative effect of
change in accounting principle $1.01 $.33 $.57
Cumulative effect of change in
accounting for income taxes (.01)
----- ----- -----
Net earnings (loss) $1.00 $.33 $.57
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Note: The computation of earnings per common share assuming full dilution is
substantially the same as set forth above.
exh11.1
BEST BUY CO., INC.
SCHEDULE V - PROPERTY & EQUIPMENT
BALANCE AT BALANCE AT
FOR THE YEAR BEGINNING OF ADDITIONS AT OTHER END OF
ENDED CLASSIFICATION PERIOD COST[1] RETIREMENTS CHANGES PERIOD
- - ----- -------------- ------ ---- ----------- ------- ------
February 26, 1994 Land and buildings $ 45,676,000 $ 36,651,000 $(44,667,000)[4] $ 37,660,000
Property under capital leases 14,163,000 3,707,000 17,870,000
Leasehold improvements 33,222,000 23,556,000 $(1,499,000)[2] 55,279,000
Furniture, fixtures, &
equipment 76,806,000 50,163,000 (4,286,000)[2] 122,683,000
------------ ------------ ----------- ------------ ------------
Total $169,867,000 $114,077,000 $(5,785,000) $(44,667,000) $233,492,000
------------ ------------ ----------- ------------ ------------
------------ ------------ ----------- ------------ ------------
February 27, 1993 Land and buildings $ 12,573,000 $ 33,103,000 $ 45,676,000
Property under capital leases 5,645,000 8,705,000 $ (187,000)[3] 14,163,000
Leasehold improvements 19,105,000 14,777,000 $ (660,000) 33,222,000
Furniture, fixtures, &
equipment 50,556,000 27,011,000 (948,000)[2] 187,000 [3] 76,806,000
------------ ------------ ----------- ------------ ------------
Total $ 87,879,000 $ 83,596,000 $(1,608,000) $ 0 $169,867,000
------------ ------------ ----------- ------------ ------------
------------ ------------ ----------- ------------ ------------
February 29, 1992 Land and buildings $ 6,022,000 $ 6,551,000 $ 12,573,000
Property under capital leases 1,675,000 3,970,000 5,645,000
Leasehold improvements 15,432,000 3,673,000 19,105,000
Furniture, fixtures, &
equipment 37,750,000 15,055,000 (2,249,000)[2] $ 50,556,000
------------ ------------ ----------- ------------ ------------
Total $ 60,879,000 $ 29,249,000 $(2,249,000) $ 0 $ 87,879,000
------------ ------------ ----------- ------------ ------------
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<FN>
[1] Additions due to the opening of new stores and the remodel/relocation of
existing stores and in fiscal 1994 the acquisition of a corporate office
and related furniture, fixtures and equipment.
[2] Retirements due to the remodel/relocation of existing stores.
[3] Exercised a purchase option at the end of the lease.
[4] Sale of land and building as part of a sale leaseback transaction of 17
owned stores in April, 1993.
BEST BUY CO., INC.
SCHEDULE VI - ACCUMULATED DEPRECIATION & AMORTIZATION OF PROPERTY & EQUIPMENT
BALANCE AT BALANCE AT
BEGINNING ADDITIONS OTHER END OF
FOR THE YEAR ENDED CLASSIFICATION OF PERIOD AT COST[1] RETIREMENTS CHANGES[2] PERIOD[1]
- - ------------------ -------------- --------- ------- ----------- ------- ------
February 26, 1994 Land and buildings $ 507,000 $ 213,000 $(523,000) $ 197,000
Property under capital leases 2,103,000 2,327,000 4,430,000
Leasehold improvements 8,443,000 4,180,000 $(1,040,000) 11,583,000
Furniture, fixtures, & equipment 32,372,000 15,638,000 (3,452,000 44,558,000
----------- ----------- ----------- --------- -----------
Total $43,425,000 $22,358,000 $(4,492,000) $(523,000) $60,768,000
----------- ----------- ----------- --------- -----------
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February 27, 1993 Land and buildings $ 146,000 $ 361,000 $ 507,000
Property under capital leases 1,172,000 1,118,000 $(187,000) 2,103,000
Leasehold improvements 6,112,000 2,569,000 $ (238,000) 8,443,000
Furniture, fixtures, & equipment 22,199,000 10,784,000 (798,000) (187,000) 32,372,000
----------- ----------- ----------- --------- -----------
Total $29,629,000 $14,832,000 $(1,036,000) $ 0 $43,425,000
----------- ----------- ----------- --------- -----------
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February 29, 1992 Land and buildings $ 17,000 $ 129,000 $ 146,000
Property under capital leases 544,000 628,000 1,172,000
Leasehold improvements 4,461,000 1,651,000 6,112,000
Furniture, fixtures, & equipment 16,285,000 $ 7,605,000 $(1,691,000) 22,199,000
----------- ----------- ----------- --------- -----------
Total $21,307,000 $10,013,000 $(1,691,000) $ 0 $29,629,000
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<FN>
[1] The annual provision for depreciation has been computed principally in
accordance with the following depreciable lives:
Buildings 35 Years
Capital Leases/Leasehold Improvements Shorter of the estimated useful
lives or lease periods
Furniture, Fixtures, & Equipment 3 to 10 Years
[2] See Description of Changes in Schedule V - Property & Equipment
BEST BUY CO., INC.
SCHEDULE IX - SHORT-TERM BORROWINGS
End of
period Maximum Average Weighted
weighted amount amount average
Category of Balance average outstanding outstanding interest rate
aggregate short- at end interest during during the during the
Period term borrowings of period rate[1] the period period[2] period[1,3]
- - ---------------------- --------------- ---------- ---- ----------- ------ ------
Year ended
February 27, 1994 Bank 0 --- $15,800,000 $ 529,000 4.4
Other financial
institutions 11,156,000 --- 76,883,000 29,271,000 --
Year ended
February 27, 1993 Bank 3,700,000 4.7 57,200,000 14,534,000 5.1
Other financial
institutions 4,871,000 --- 58,490,000 10,871,000 --
Year ended
February 29, 1992 Bank 0 --- 27,800,000 1,197,000 9.1
Other financial
institutions 4,174,000 --- 7,845,000 4,410,000 --
<FN>
[1] The Company has two inventory financing credit lines. Each financing line
has a provision which gives the financing source a portion of the cash
discount provided by the manufacturer. In addition, the Company has a
revolving line of credit with a bank, which provided available borrowings
of up to $125,000,000 during fiscal 1994.
[2] Computed by summing the average monthly balances for the year and dividing
by the number of months in the year.
[3] Computed by summing the monthly interest charges and dividing by the
average amount outstanding during the period.