This excerpt taken from the BBY 10-K filed May 10, 2006.
Prior to the adoption of SFAS No. 123(R), we reported all tax benefits resulting from the exercise of non-qualified stock options as operating cash flows in our consolidated statements of cash flows. In accordance with SFAS No. 123(R), our fiscal 2006 consolidated statement of cash flows includes the excess tax benefits from the exercise of non-qualified stock options as financing cash flows. For the fiscal year ended February 25, 2006, $33 of excess tax benefits was reported as financing cash flows rather than operating cash flows.
In November 2005, the FASB issued FSP No. FAS 123(R)-3,