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August 27, 2011 | February 26, 2011 | August 28, 2010 | |||||||||
Short-term investments | |||||||||||
Money market fund | $ | — | $ | 2 | $ | 2 | |||||
U.S. Treasury bills | 80 | 20 | — | ||||||||
Total short-term investments | $ | 80 | $ | 22 | $ | 2 | |||||
Equity and other investments | |||||||||||
Debt securities (auction rate securities) | $ | 88 | $ | 110 | $ | 134 | |||||
Marketable equity securities | 122 | 146 | 97 | ||||||||
Other investments | 74 | 72 | 62 | ||||||||
Total equity and other investments | $ | 284 | $ | 328 | $ | 293 |
Description | Nature of collateral or guarantee | August 27, 2011 | February 26, 2011 | August 28, 2010 | ||||||||||
Student loan bonds | Student loans guaranteed 95% to 100% by the U.S. government | $ | 86 | $ | 108 | $ | 116 | |||||||
Municipal revenue bonds | 100% insured by AA/Aa-rated bond insurers at August 27, 2011 | 2 | 2 | 18 | ||||||||||
Total fair value plus accrued interest(1) | $ | 88 | $ | 110 | $ | 134 |
(1) | The par value and weighted-average interest rates (taxable equivalent) of our ARS were $93, $115 and $144, and 0.40%, 0.80% and 0.91%, respectively, at August 27, 2011, February 26, 2011, and August 28, 2010, respectively. |
August 27, 2011 | February 26, 2011 | August 28, 2010 | |||||||||
Common stock of TalkTalk Telecom Group PLC | $ | 69 | $ | 62 | $ | 51 | |||||
Common stock of Carphone Warehouse Group plc | 53 | 84 | 44 | ||||||||
Other | — | — | 2 | ||||||||
Total | $ | 122 | $ | 146 | $ | 97 |
|
• | Quoted prices for similar assets or liabilities in active markets; |
• | Quoted prices for identical or similar assets in non-active markets; |
• | Inputs other than quoted prices that are observable for the asset or liability; and |
• | Inputs that are derived principally from or corroborated by other observable market data. |
Fair Value Measurements Using Inputs Considered as | |||||||||||||||
Fair Value at August 27, 2011 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
ASSETS | |||||||||||||||
Cash and cash equivalents | |||||||||||||||
Money market funds | $ | 560 | $ | 560 | $ | — | $ | — | |||||||
Commercial paper | 15 | — | 15 | — | |||||||||||
Short-term investments | |||||||||||||||
U.S. Treasury bills | 80 | 80 | — | — | |||||||||||
Other current assets | |||||||||||||||
Money market funds (restricted cash) | 157 | 157 | — | — | |||||||||||
U.S. Treasury bills (restricted cash) | 30 | 30 | — | — | |||||||||||
Foreign currency derivative instruments | 6 | — | 6 | — | |||||||||||
Equity and other investments | |||||||||||||||
Auction rate securities | 88 | — | — | 88 | |||||||||||
Marketable equity securities | 122 | 122 | — | — | |||||||||||
Other assets | |||||||||||||||
Marketable equity securities that fund deferred compensation | 83 | 83 | — | — | |||||||||||
Foreign currency derivative instruments | 1 | — | 1 | — | |||||||||||
LIABILITIES | |||||||||||||||
Long-term liabilities | |||||||||||||||
Deferred compensation | 65 | 65 | — | — |
Fair Value Measurements Using Inputs Considered as | |||||||||||||||
Fair Value at February 26, 2011 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
ASSETS | |||||||||||||||
Cash and cash equivalents | |||||||||||||||
Money market funds | $ | 70 | $ | 70 | $ | — | $ | — | |||||||
Short-term investments | |||||||||||||||
Money market fund | 2 | — | 2 | — | |||||||||||
U.S. Treasury bills | 20 | 20 | — | — | |||||||||||
Other current assets | |||||||||||||||
Money market funds (restricted cash) | 63 | 63 | — | — | |||||||||||
U.S. Treasury bills (restricted cash) | 105 | 105 | — | — | |||||||||||
Foreign currency derivative instruments | 2 | — | 2 | — | |||||||||||
Equity and other investments | |||||||||||||||
Auction rate securities | 110 | — | — | 110 | |||||||||||
Marketable equity securities | 146 | 146 | — | — | |||||||||||
Other assets | |||||||||||||||
Marketable equity securities that fund deferred compensation | 83 | 83 | — | — | |||||||||||
LIABILITIES | |||||||||||||||
Accrued liabilities | |||||||||||||||
Foreign currency derivative instruments | 1 | — | 1 | — | |||||||||||
Long-term liabilities | |||||||||||||||
Deferred compensation | 64 | 64 | — | — | |||||||||||
Foreign currency derivative instruments | 2 | — | 2 | — |
Fair Value Measurements Using Inputs Considered as | |||||||||||||||
Fair Value at August 28, 2010 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
ASSETS | |||||||||||||||
Cash and cash equivalents | |||||||||||||||
Money market funds | $ | 1 | $ | 1 | $ | — | $ | — | |||||||
Short-term investments | |||||||||||||||
Money market fund | 2 | — | 2 | — | |||||||||||
Other current assets | |||||||||||||||
Money market funds (restricted cash) | 49 | 49 | — | — | |||||||||||
U.S. Treasury bills (restricted cash) | 100 | 100 | — | — | |||||||||||
Foreign currency derivative instruments | 6 | — | 6 | — | |||||||||||
Equity and other investments | |||||||||||||||
Auction rate securities | 134 | — | — | 134 | |||||||||||
Marketable equity securities | 97 | 97 | — | — | |||||||||||
Other assets | |||||||||||||||
Marketable equity securities that fund deferred compensation | 77 | 77 | — | — | |||||||||||
Foreign currency derivative instruments | 6 | — | 6 | — | |||||||||||
LIABILITIES | |||||||||||||||
Long-term liabilities | |||||||||||||||
Deferred compensation | 64 | 64 | — | — |
Debt securities- Auction rate securities only | |||||||||||
Student loan bonds | Municipal revenue bonds | Total | |||||||||
Balances at May 28, 2011 | $ | 97 | $ | 2 | $ | 99 | |||||
Changes in unrealized losses included in other comprehensive income | (3 | ) | — | (3 | ) | ||||||
Sales | (8 | ) | — | (8 | ) | ||||||
Balances at August 27, 2011 | $ | 86 | $ | 2 | $ | 88 |
Debt securities- Auction rate securities only | |||||||||||
Student loan bonds | Municipal revenue bonds | Total | |||||||||
Balances at February 26, 2011 | $ | 108 | $ | 2 | $ | 110 | |||||
Changes in unrealized losses included in other comprehensive income | — | — | — | ||||||||
Sales | (22 | ) | — | (22 | ) | ||||||
Balances at August 27, 2011 | $ | 86 | $ | 2 | $ | 88 |
Debt securities- Auction rate securities only | |||||||||||
Student loan bonds | Municipal revenue bonds | Total | |||||||||
Balances at May 29, 2010 | $ | 214 | $ | 19 | $ | 233 | |||||
Changes in unrealized losses included in other comprehensive income | — | — | — | ||||||||
Sales | (98 | ) | (1 | ) | (99 | ) | |||||
Balances at August 28, 2010 | $ | 116 | $ | 18 | $ | 134 |
Debt securities- Auction rate securities only | |||||||||||
Student loan bonds | Municipal revenue bonds | Total | |||||||||
Balances at February 27, 2010 | $ | 261 | $ | 19 | $ | 280 | |||||
Changes in unrealized losses included in other comprehensive income | (5 | ) | — | (5 | ) | ||||||
Sales | (139 | ) | (1 | ) | (140 | ) | |||||
Interest received | (1 | ) | — | (1 | ) | ||||||
Balances at August 28, 2010 | $ | 116 | $ | 18 | $ | 134 |
|
Goodwill | Indefinite-lived Tradenames | ||||||||||||||||||||||
Domestic | International | Total | Domestic | International | Total | ||||||||||||||||||
Balances at February 26, 2011 | $ | 422 | $ | 2,032 | $ | 2,454 | $ | 21 | $ | 84 | $ | 105 | |||||||||||
Changes in foreign currency exchange rates | — | 32 | 32 | — | 1 | 1 | |||||||||||||||||
Other(1) | — | — | — | — | 28 | 28 | |||||||||||||||||
Balances at August 27, 2011 | $ | 422 | $ | 2,064 | $ | 2,486 | $ | 21 | $ | 113 | $ | 134 |
(1) | Represents the transfer of certain definite-lived tradenames (at their net book value) to indefinite-lived tradenames following our decision to no longer phase out certain tradenames. We believe these tradenames will continue to contribute to our future cash flows indefinitely. |
Goodwill | Indefinite-lived Tradenames | ||||||||||||||||||||||
Domestic | International | Total | Domestic | International | Total | ||||||||||||||||||
Balances at February 27, 2010 | $ | 434 | $ | 2,018 | $ | 2,452 | $ | 32 | $ | 80 | $ | 112 | |||||||||||
Sale of business(1) | (12 | ) | — | (12 | ) | (1 | ) | — | (1 | ) | |||||||||||||
Changes in foreign currency exchange rates | — | (75 | ) | (75 | ) | — | — | — | |||||||||||||||
Balances at August 28, 2010 | $ | 422 | $ | 1,943 | $ | 2,365 | $ | 31 | $ | 80 | $ | 111 |
(1) | As a result of the sale of our Speakeasy business in the second quarter of fiscal 2011, we wrote off the carrying value of the related goodwill and indefinite-lived tradenames as of the date of sale. |
August 27, 2011 | February 26, 2011 | August 28, 2010 | |||||||||||||||||||||
Gross Carrying Amount | Cumulative Impairment | Gross Carrying Amount | Cumulative Impairment | Gross Carrying Amount | Cumulative Impairment | ||||||||||||||||||
Goodwill | $ | 2,551 | $ | (65 | ) | $ | 2,519 | $ | (65 | ) | $ | 2,430 | $ | (65 | ) |
August 27, 2011 | February 26, 2011 | August 28, 2010 | |||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||||||||
Tradenames | $ | — | $ | — | $ | 73 | $ | (45 | ) | $ | 71 | $ | (35 | ) | |||||||||
Customer relationships | 393 | (214 | ) | 383 | (180 | ) | 372 | (145 | ) | ||||||||||||||
Total | $ | 393 | $ | (214 | ) | $ | 456 | $ | (225 | ) | $ | 443 | $ | (180 | ) |
Fiscal Year | |||
Remainder of fiscal 2012 | $ | 18 | |
2013 | 36 | ||
2014 | 36 | ||
2015 | 36 | ||
2016 | 36 | ||
Thereafter | 17 |
|
Domestic | International | Total | |||||||||||||||||||||
Six Months Ended August 27, 2011 | Cumulative Amount through August 27, 2011 | Six Months Ended August 27, 2011 | Cumulative Amount through August 27, 2011 | Six Months Ended August 27, 2011 | Cumulative Amount through August 27, 2011 | ||||||||||||||||||
Inventory write-downs | $ | — | $ | 10 | $ | — | $ | 14 | $ | — | $ | 24 | |||||||||||
Property and equipment impairments | — | 15 | — | 132 | — | 147 | |||||||||||||||||
Termination benefits | (3 | ) | 13 | 6 | 18 | 3 | 31 | ||||||||||||||||
Intangible asset impairments | — | 10 | — | — | — | 10 | |||||||||||||||||
Facility closure and other costs, net | 4 | 4 | (3 | ) | 10 | 1 | 14 | ||||||||||||||||
Total | $ | 1 | $ | 52 | $ | 3 | $ | 174 | $ | 4 | $ | 226 |
Termination Benefits | Facility Closure and Other Costs(1) | Total | |||||||||
Balance at February 26, 2011 | $ | 28 | $ | 13 | $ | 41 | |||||
Charges | 6 | 2 | 8 | ||||||||
Cash payments | (25 | ) | (11 | ) | (36 | ) | |||||
Adjustments | (3 | ) | 8 | 5 | |||||||
Changes in foreign currency exchange rates | — | 1 | 1 | ||||||||
Balance at August 27, 2011 | $ | 6 | $ | 13 | $ | 19 |
(1) | Included within the facility closure and other costs adjustments is $10 from the first quarter of fiscal 2011, representing an adjustment to exclude non-cash charges or benefits, which had no impact on our consolidated statements of earnings in the first six months of fiscal 2012. |
|
August 27, 2011 | February 26, 2011 | August 28, 2010 | |||||||||
JPMorgan revolving credit facility | $ | — | $ | — | $ | — | |||||
Europe receivables financing facility(1) | 386 | 455 | 350 | ||||||||
Europe revolving credit facility | — | 98 | — | ||||||||
Canada revolving demand facility | — | — | — | ||||||||
China revolving demand facilities | 6 | 4 | 33 | ||||||||
Total short-term debt | $ | 392 | $ | 557 | $ | 383 |
(1) | This facility is secured by certain network carrier receivables of Best Buy Europe, which are included within receivables in our condensed consolidated balance sheets. The total amount available for borrowing under this facility is based on a percentage of the available acceptable receivables, as defined in the agreement for the facility, and was £277 (or $445) at August 27, 2011. |
August 27, 2011 | February 26, 2011 | August 28, 2010 | |||||||||
2021 Notes | $ | 648 | $ | — | $ | — | |||||
2013 Notes | 500 | 500 | 500 | ||||||||
2016 Notes | 349 | — | — | ||||||||
Convertible debentures | 402 | 402 | 402 | ||||||||
Financing lease obligations | 167 | 170 | 175 | ||||||||
Capital lease obligations | 72 | 79 | 41 | ||||||||
Other debt | 2 | 1 | 2 | ||||||||
Total long-term debt | 2,140 | 1,152 | 1,120 | ||||||||
Less: current portion(1) | (444 | ) | (441 | ) | (32 | ) | |||||
Total long-term debt, less current portion | $ | 1,696 | $ | 711 | $ | 1,088 |
(1) | Since holders of our convertible debentures may require us to purchase all or a portion of the debentures on January 15, 2012, we classified the $402 for such debentures in the current portion of long-term debt at August 27, 2011, and February 26, 2011. |
|
August 27, 2011 | February 26, 2011 | August 28, 2010 | ||||||||||||||||||||||
Contract Type | Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | ||||||||||||||||||
Cash flow hedges (foreign exchange forward contracts) | $ | 6 | $ | — | $ | 1 | $ | (2 | ) | $ | 13 | $ | (4 | ) | ||||||||||
No hedge designation (foreign exchange forward contracts) | 1 | — | 2 | (2 | ) | 3 | — | |||||||||||||||||
Total | $ | 7 | $ | — | $ | 3 | $ | (4 | ) | $ | 16 | $ | (4 | ) |
Three Months Ended | Six Months Ended | |||||||||||||||
August 27, 2011 | August 27, 2011 | |||||||||||||||
Contract Type | Pre-tax Gain Recognized in OCI(1) | Gain Reclassified from Accumulated OCI to Earnings (Effective Portion)(2) | Pre-tax Gain Recognized in OCI(1) | Gain Reclassified from Accumulated OCI to Earnings (Effective Portion)(2) | ||||||||||||
Cash flow hedges (foreign exchange forward contracts) | $ | 5 | $ | 5 | $ | 13 | $ | 7 |
Three Months Ended | Six Months Ended | |||||||||||||||
August 28, 2010 | August 28, 2010 | |||||||||||||||
Contract Type | Pre-tax Gain Recognized in OCI(1) | Gain Reclassified from Accumulated OCI to Earnings (Effective Portion)(2) | Pre-tax Gain Recognized in OCI(1) | Gain Reclassified from Accumulated OCI to Earnings (Effective Portion)(2) | ||||||||||||
Cash flow hedges (foreign exchange forward contracts) | $ | 10 | $ | — | $ | 10 | $ | 1 | ||||||||
Net investment hedges (foreign exchange swap contracts) | — | — | 8 | — | ||||||||||||
Total | $ | 10 | $ | — | $ | 18 | $ | 1 |
(1) | Reflects the amount recognized in OCI prior to the reclassification of 50% to noncontrolling interests for the cash flow and net investment hedges, respectively. |
(2) | Gain reclassified from accumulated OCI is included within selling, general and administrative expenses (“SG&A”) in our consolidated statements of earnings. |
(Loss) Gain Recognized within SG&A | ||||||||||||||||
Three Months Ended | Six Months Ended | Three Months Ended | Six Months Ended | |||||||||||||
Contract Type | August 27, 2011 | August 27, 2011 | August 28, 2010 | August 28, 2010 | ||||||||||||
No hedge designation (foreign exchange forward contracts) | $ | (3 | ) | $ | (9 | ) | $ | 7 | $ | 12 |
Notional Amount | ||||||||||||
Contract Type | August 27, 2011 | February 26, 2011 | August 28, 2010 | |||||||||
Derivatives designated as cash flow hedging instruments | $ | 268 | $ | 264 | $ | 311 | ||||||
Derivatives not designated as hedging instruments | 286 | 493 | 255 | |||||||||
Total | $ | 554 | $ | 757 | $ | 566 |
|
August 27, 2011 | February 26, 2011 | August 28, 2010 | |||||||||
Foreign currency translation | $ | 159 | $ | 102 | $ | (58 | ) | ||||
Unrealized gains on available-for-sale investments | 51 | 72 | 29 | ||||||||
Unrealized gains (losses) on derivative instruments (cash flow hedges) | 1 | (1 | ) | 4 | |||||||
Total | $ | 211 | $ | 173 | $ | (25 | ) |
|
Three Months Ended | Six Months Ended | ||||||||||||||
August 27, 2011 | August 28, 2010 | August 27, 2011 | August 28, 2010 | ||||||||||||
June 2011 Program | |||||||||||||||
Number of shares repurchased | 9.1 | — | 9.1 | — | |||||||||||
Cost of shares repurchased | $ | 252 | $ | — | $ | 252 | $ | — | |||||||
June 2007 Program | |||||||||||||||
Number of shares repurchased | 3.6 | 17.3 | 20.1 | 19.8 | |||||||||||
Cost of shares repurchased | $ | 106 | $ | 594 | $ | 611 | $ | 705 |
|
Three Months Ended | Six Months Ended | ||||||||||||||
August 27, 2011 | August 28, 2010 | August 27, 2011 | August 28, 2010 | ||||||||||||
Domestic | $ | 8,311 | $ | 8,436 | $ | 16,170 | $ | 16,359 | |||||||
International | 3,036 | 2,903 | 6,117 | 5,767 | |||||||||||
Total | $ | 11,347 | $ | 11,339 | $ | 22,287 | $ | 22,126 |
Three Months Ended | Six Months Ended | ||||||||||||||
August 27, 2011 | August 28, 2010 | August 27, 2011 | August 28, 2010 | ||||||||||||
Domestic | $ | 303 | $ | 407 | $ | 537 | $ | 705 | |||||||
International | (16 | ) | 4 | 32 | 19 | ||||||||||
Total operating income | 287 | 411 | 569 | 724 | |||||||||||
Other income (expense) | |||||||||||||||
Investment income and other | 6 | 13 | 18 | 25 | |||||||||||
Interest expense | (34 | ) | (21 | ) | (65 | ) | (44 | ) | |||||||
Earnings before income tax expense and equity in loss of affiliates | $ | 259 | $ | 403 | $ | 522 | $ | 705 |
August 27, 2011 | February 26, 2011 | August 28, 2010 | |||||||||
Domestic | $ | 10,360 | $ | 9,610 | $ | 9,818 | |||||
International | 8,469 | 8,239 | 7,544 | ||||||||
Total | $ | 18,829 | $ | 17,849 | $ | 17,362 |
|
|
Best Buy Co., Inc. | Guarantor Subsidiary | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Assets | |||||||||||||||||||
Current Assets | |||||||||||||||||||
Cash and cash equivalents | $ | 943 | $ | 52 | $ | 1,045 | $ | — | $ | 2,040 | |||||||||
Short-term investments | 80 | — | — | — | 80 | ||||||||||||||
Receivables | 1 | 522 | 1,422 | — | 1,945 | ||||||||||||||
Merchandise inventories | — | 4,329 | 2,125 | (51 | ) | 6,403 | |||||||||||||
Other current assets | 157 | 57 | 831 | (12 | ) | 1,033 | |||||||||||||
Intercompany receivable | — | — | 9,843 | (9,843 | ) | — | |||||||||||||
Intercompany note receivable | 895 | — | 106 | (1,001 | ) | — | |||||||||||||
Total current assets | 2,076 | 4,960 | 15,372 | (10,907 | ) | 11,501 | |||||||||||||
Property and Equipment, Net | 200 | 1,742 | 1,819 | — | 3,761 | ||||||||||||||
Goodwill | — | 6 | 2,480 | — | 2,486 | ||||||||||||||
Tradenames, Net | — | — | 134 | — | 134 | ||||||||||||||
Customer Relationships, Net | — | — | 179 | — | 179 | ||||||||||||||
Equity and Other Investments | 143 | — | 141 | — | 284 | ||||||||||||||
Other Assets | 226 | 35 | 223 | — | 484 | ||||||||||||||
Investments in Subsidiaries | 14,487 | 241 | 2,556 | (17,284 | ) | — | |||||||||||||
Total Assets | $ | 17,132 | $ | 6,984 | $ | 22,904 | $ | (28,191 | ) | $ | 18,829 | ||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||
Current Liabilities | |||||||||||||||||||
Accounts payable | $ | 341 | $ | 62 | $ | 5,427 | $ | — | $ | 5,830 | |||||||||
Unredeemed gift card liabilities | — | 347 | 63 | — | 410 | ||||||||||||||
Accrued compensation and related expenses | — | 174 | 315 | — | 489 | ||||||||||||||
Accrued liabilities | 51 | 711 | 829 | (11 | ) | 1,580 | |||||||||||||
Accrued income taxes | 2 | — | — | — | 2 | ||||||||||||||
Short-term debt | — | — | 392 | — | 392 | ||||||||||||||
Current portion of long-term debt | 403 | 23 | 18 | — | 444 | ||||||||||||||
Intercompany payable | 8,132 | 1,711 | — | (9,843 | ) | — | |||||||||||||
Intercompany note payable | 106 | 501 | 394 | (1,001 | ) | — | |||||||||||||
Total current liabilities | 9,035 | 3,529 | 7,438 | (10,855 | ) | 9,147 | |||||||||||||
Long-Term Liabilities | 466 | 781 | 174 | (245 | ) | 1,176 | |||||||||||||
Long-Term Debt | 1,496 | 118 | 82 | — | 1,696 | ||||||||||||||
Equity | |||||||||||||||||||
Shareholders’ equity | 6,135 | 2,556 | 14,487 | (17,091 | ) | 6,087 | |||||||||||||
Noncontrolling interests | — | — | 723 | — | 723 | ||||||||||||||
Total equity | 6,135 | 2,556 | 15,210 | (17,091 | ) | 6,810 | |||||||||||||
Total Liabilities and Equity | $ | 17,132 | $ | 6,984 | $ | 22,904 | $ | (28,191 | ) | $ | 18,829 |
Best Buy Co., Inc. | Guarantor Subsidiary | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Assets | |||||||||||||||||||
Current Assets | |||||||||||||||||||
Cash and cash equivalents | $ | 282 | $ | 51 | $ | 770 | $ | — | $ | 1,103 | |||||||||
Short-term investments | 20 | — | 2 | — | 22 | ||||||||||||||
Receivables | 3 | 738 | 1,607 | — | 2,348 | ||||||||||||||
Merchandise inventories | — | 3,973 | 1,999 | (75 | ) | 5,897 | |||||||||||||
Other current assets | 234 | 117 | 752 | — | 1,103 | ||||||||||||||
Intercompany receivable | — | — | 9,300 | (9,300 | ) | — | |||||||||||||
Intercompany note receivable | 854 | — | 91 | (945 | ) | — | |||||||||||||
Total current assets | 1,393 | 4,879 | 14,521 | (10,320 | ) | 10,473 | |||||||||||||
Property and Equipment, Net | 200 | 1,803 | 1,820 | — | 3,823 | ||||||||||||||
Goodwill | — | 6 | 2,448 | — | 2,454 | ||||||||||||||
Tradenames, Net | — | — | 133 | — | 133 | ||||||||||||||
Customer Relationships, Net | — | — | 203 | — | 203 | ||||||||||||||
Equity and Other Investments | 162 | — | 166 | — | 328 | ||||||||||||||
Other Assets | 181 | 36 | 273 | (55 | ) | 435 | |||||||||||||
Investments in Subsidiaries | 14,030 | 229 | 2,444 | (16,703 | ) | — | |||||||||||||
Total Assets | $ | 15,966 | $ | 6,953 | $ | 22,008 | $ | (27,078 | ) | $ | 17,849 | ||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||
Current Liabilities | |||||||||||||||||||
Accounts payable | $ | 361 | $ | 101 | $ | 4,432 | $ | — | $ | 4,894 | |||||||||
Unredeemed gift card liabilities | — | 404 | 70 | — | 474 | ||||||||||||||
Accrued compensation and related expenses | — | 200 | 370 | — | 570 | ||||||||||||||
Accrued liabilities | 13 | 625 | 833 | — | 1,471 | ||||||||||||||
Accrued income taxes | 256 | — | — | — | 256 | ||||||||||||||
Short-term debt | — | — | 557 | — | 557 | ||||||||||||||
Current portion of long-term debt | 402 | 23 | 16 | — | 441 | ||||||||||||||
Intercompany payable | 7,497 | 1,665 | 138 | (9,300 | ) | — | |||||||||||||
Intercompany note payable | 103 | 500 | 342 | (945 | ) | — | |||||||||||||
Total current liabilities | 8,632 | 3,518 | 6,758 | (10,245 | ) | 8,663 | |||||||||||||
Long-Term Liabilities | 160 | 863 | 447 | (287 | ) | 1,183 | |||||||||||||
Long-Term Debt | 500 | 128 | 83 | — | 711 | ||||||||||||||
Equity | |||||||||||||||||||
Shareholders’ equity | 6,674 | 2,444 | 14,030 | (16,546 | ) | 6,602 | |||||||||||||
Noncontrolling interests | — | — | 690 | — | 690 | ||||||||||||||
Total equity | 6,674 | 2,444 | 14,720 | (16,546 | ) | 7,292 | |||||||||||||
Total Liabilities and Equity | $ | 15,966 | $ | 6,953 | $ | 22,008 | $ | (27,078 | ) | $ | 17,849 |
Best Buy Co., Inc. | Guarantor Subsidiary | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Assets | |||||||||||||||||||
Current Assets | |||||||||||||||||||
Cash and cash equivalents | $ | 136 | $ | 29 | $ | 678 | $ | — | $ | 843 | |||||||||
Short-term investments | — | — | 2 | — | 2 | ||||||||||||||
Receivables | 1 | 500 | 1,219 | — | 1,720 | ||||||||||||||
Merchandise inventories | — | 4,387 | 2,032 | (73 | ) | 6,346 | |||||||||||||
Other current assets | 242 | 74 | 733 | (1 | ) | 1,048 | |||||||||||||
Intercompany receivable | — | — | 8,604 | (8,604 | ) | — | |||||||||||||
Intercompany note receivable | 1,566 | — | 7 | (1,573 | ) | — | |||||||||||||
Total current assets | 1,945 | 4,990 | 13,275 | (10,251 | ) | 9,959 | |||||||||||||
Property and Equipment, Net | 211 | 1,798 | 1,906 | — | 3,915 | ||||||||||||||
Goodwill | — | 6 | 2,359 | — | 2,365 | ||||||||||||||
Tradenames, Net | — | — | 147 | — | 147 | ||||||||||||||
Customer Relationships, Net | — | — | 227 | — | 227 | ||||||||||||||
Equity and Other Investments | 166 | — | 127 | — | 293 | ||||||||||||||
Other Assets | 92 | 27 | 375 | (38 | ) | 456 | |||||||||||||
Investments in Subsidiaries | 12,043 | 296 | 2,411 | (14,750 | ) | — | |||||||||||||
Total Assets | $ | 14,457 | $ | 7,117 | $ | 20,827 | $ | (25,039 | ) | $ | 17,362 | ||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||
Current Liabilities | |||||||||||||||||||
Accounts payable | $ | 350 | $ | 34 | $ | 5,189 | $ | — | $ | 5,573 | |||||||||
Unredeemed gift card liabilities | — | 344 | 56 | — | 400 | ||||||||||||||
Accrued compensation and related expenses | 1 | 191 | 275 | — | 467 | ||||||||||||||
Accrued liabilities | 18 | 670 | 901 | — | 1,589 | ||||||||||||||
Accrued income taxes | 27 | — | — | — | 27 | ||||||||||||||
Short-term debt | — | — | 383 | — | 383 | ||||||||||||||
Current portion of long-term debt | — | 20 | 12 | — | 32 | ||||||||||||||
Intercompany payable | 6,869 | 1,735 | — | (8,604 | ) | — | |||||||||||||
Intercompany note payable | 19 | 500 | 1,054 | (1,573 | ) | — | |||||||||||||
Total current liabilities | 7,284 | 3,494 | 7,870 | (10,177 | ) | 8,471 | |||||||||||||
Long-Term Liabilities | 185 | 1,089 | 245 | (338 | ) | 1,181 | |||||||||||||
Long-Term Debt | 902 | 123 | 63 | — | 1,088 | ||||||||||||||
Equity | |||||||||||||||||||
Shareholders’ equity | 6,086 | 2,411 | 12,042 | (14,524 | ) | 6,015 | |||||||||||||
Noncontrolling interests | — | — | 607 | — | 607 | ||||||||||||||
Total equity | 6,086 | 2,411 | 12,649 | (14,524 | ) | 6,622 | |||||||||||||
Total Liabilities and Equity | $ | 14,457 | $ | 7,117 | $ | 20,827 | $ | (25,039 | ) | $ | 17,362 |
Best Buy Co., Inc. | Guarantor Subsidiary | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Revenue | $ | 4 | $ | 7,591 | $ | 9,810 | $ | (6,058 | ) | $ | 11,347 | ||||||||
Cost of goods sold | — | 5,625 | 8,381 | (5,531 | ) | 8,475 | |||||||||||||
Gross profit | 4 | 1,966 | 1,429 | (527 | ) | 2,872 | |||||||||||||
Selling, general and administrative expenses | 37 | 1,890 | 1,233 | (577 | ) | 2,583 | |||||||||||||
Restructuring charges | — | — | 2 | — | 2 | ||||||||||||||
Operating (loss) income | (33 | ) | 76 | 194 | 50 | 287 | |||||||||||||
Other income (expense) | |||||||||||||||||||
Investment income and other | 6 | — | 5 | (5 | ) | 6 | |||||||||||||
Interest expense | (23 | ) | (3 | ) | (13 | ) | 5 | (34 | ) | ||||||||||
(Loss) earnings before equity in earnings of subsidiaries | (50 | ) | 73 | 186 | 50 | 259 | |||||||||||||
Equity in earnings of subsidiaries | 175 | 9 | 48 | (232 | ) | — | |||||||||||||
Earnings before income tax expense and equity in loss of affiliates | 125 | 82 | 234 | (182 | ) | 259 | |||||||||||||
Income tax (benefit) expense | (2 | ) | 25 | 76 | — | 99 | |||||||||||||
Equity in loss of affiliates | — | — | — | — | — | ||||||||||||||
Net earnings including noncontrolling interests | 127 | 57 | 158 | (182 | ) | 160 | |||||||||||||
Net loss attributable to noncontrolling interests | — | — | 17 | — | 17 | ||||||||||||||
Net earnings attributable to Best Buy Co., Inc. | $ | 127 | $ | 57 | $ | 175 | $ | (182 | ) | $ | 177 |
Best Buy Co., Inc. | Guarantor Subsidiary | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Revenue | $ | 8 | $ | 14,799 | $ | 20,169 | $ | (12,689 | ) | $ | 22,287 | ||||||||
Cost of goods sold | — | 10,998 | 17,368 | (11,719 | ) | 16,647 | |||||||||||||
Gross profit | 8 | 3,801 | 2,801 | (970 | ) | 5,640 | |||||||||||||
Selling, general and administrative expenses | 73 | 3,655 | 2,406 | (1,067 | ) | 5,067 | |||||||||||||
Restructuring charges | — | (2 | ) | 6 | — | 4 | |||||||||||||
Operating (loss) income | (65 | ) | 148 | 389 | 97 | 569 | |||||||||||||
Other income (expense) | |||||||||||||||||||
Investment income and other | 10 | — | 17 | (9 | ) | 18 | |||||||||||||
Interest expense | (46 | ) | (6 | ) | (22 | ) | 9 | (65 | ) | ||||||||||
(Loss) earnings before equity in earnings of subsidiaries | (101 | ) | 142 | 384 | 97 | 522 | |||||||||||||
Equity in earnings of subsidiaries | 320 | 18 | 93 | (431 | ) | — | |||||||||||||
Earnings before income tax expense and equity in loss of affiliates | 219 | 160 | 477 | (334 | ) | 522 | |||||||||||||
Income tax expense | 3 | 49 | 146 | — | 198 | ||||||||||||||
Equity in loss of affiliates | — | — | (1 | ) | — | (1 | ) | ||||||||||||
Net earnings including noncontrolling interests | 216 | 111 | 330 | (334 | ) | 323 | |||||||||||||
Net earnings attributable to noncontrolling interests | — | — | (10 | ) | — | (10 | ) | ||||||||||||
Net earnings attributable to Best Buy Co., Inc. | $ | 216 | $ | 111 | $ | 320 | $ | (334 | ) | $ | 313 |
Best Buy Co., Inc. | Guarantor Subsidiary | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Revenue | $ | 4 | $ | 7,780 | $ | 10,162 | $ | (6,607 | ) | $ | 11,339 | ||||||||
Cost of goods sold | — | 5,739 | 8,674 | (5,992 | ) | 8,421 | |||||||||||||
Gross profit | 4 | 2,041 | 1,488 | (615 | ) | 2,918 | |||||||||||||
Selling, general and administrative expenses | 34 | 1,970 | 1,166 | (663 | ) | 2,507 | |||||||||||||
Operating (loss) income | (30 | ) | 71 | 322 | 48 | 411 | |||||||||||||
Other income (expense) | |||||||||||||||||||
Investment income and other | 11 | — | 14 | (12 | ) | 13 | |||||||||||||
Interest expense | (11 | ) | (3 | ) | (19 | ) | 12 | (21 | ) | ||||||||||
(Loss) earnings before equity in earnings of subsidiaries | (30 | ) | 68 | 317 | 48 | 403 | |||||||||||||
Equity in earnings of subsidiaries | 248 | 27 | 109 | (384 | ) | — | |||||||||||||
Earnings before income tax expense | 218 | 95 | 426 | (336 | ) | 403 | |||||||||||||
Income tax expense (benefit) | 12 | (41 | ) | 175 | — | 146 | |||||||||||||
Net earnings including noncontrolling interests | 206 | 136 | 251 | (336 | ) | 257 | |||||||||||||
Net earnings attributable to noncontrolling interests | — | — | (3 | ) | — | (3 | ) | ||||||||||||
Net earnings attributable to Best Buy Co., Inc. | $ | 206 | $ | 136 | $ | 248 | $ | (336 | ) | $ | 254 |
Best Buy Co., Inc. | Guarantor Subsidiary | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Revenue | $ | 8 | $ | 15,075 | $ | 20,697 | $ | (13,654 | ) | $ | 22,126 | ||||||||
Cost of goods sold | — | 11,119 | 17,756 | (12,460 | ) | 16,415 | |||||||||||||
Gross profit | 8 | 3,956 | 2,941 | (1,194 | ) | 5,711 | |||||||||||||
Selling, general and administrative expenses | 71 | 3,806 | 2,392 | (1,282 | ) | 4,987 | |||||||||||||
Operating (loss) income | (63 | ) | 150 | 549 | 88 | 724 | |||||||||||||
Other income (expense) | |||||||||||||||||||
Investment income and other | 19 | — | 25 | (19 | ) | 25 | |||||||||||||
Interest expense | (23 | ) | (6 | ) | (34 | ) | 19 | (44 | ) | ||||||||||
(Loss) earnings before equity in earnings of subsidiaries | (67 | ) | 144 | 540 | 88 | 705 | |||||||||||||
Equity in earnings of subsidiaries | 382 | 23 | 91 | (496 | ) | — | |||||||||||||
Earnings before income tax expense | 315 | 167 | 631 | (408 | ) | 705 | |||||||||||||
Income tax (benefit) expense | (6 | ) | 53 | 220 | — | 267 | |||||||||||||
Net earnings including noncontrolling interests | 321 | 114 | 411 | (408 | ) | 438 | |||||||||||||
Net earnings attributable to noncontrolling interests | — | — | (29 | ) | — | (29 | ) | ||||||||||||
Net earnings attributable to Best Buy Co., Inc. | $ | 321 | $ | 114 | $ | 382 | $ | (408 | ) | $ | 409 |
Best Buy Co., Inc. | Guarantor Subsidiary | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Total cash (used in) provided by operating activities | $ | (151 | ) | $ | 200 | $ | 1,488 | $ | — | $ | 1,537 | ||||||||
Investing activities | |||||||||||||||||||
Additions to property and equipment | (2 | ) | (191 | ) | (218 | ) | — | (411 | ) | ||||||||||
Purchases of investments | (86 | ) | — | (20 | ) | — | (106 | ) | |||||||||||
Sales of investments | 43 | — | 23 | — | 66 | ||||||||||||||
Proceeds from sale of business | — | — | — | — | — | ||||||||||||||
Change in restricted assets | — | — | (45 | ) | — | (45 | ) | ||||||||||||
Settlement of net investment hedges | — | — | — | — | — | ||||||||||||||
Other, net | — | — | — | — | — | ||||||||||||||
Total cash (used in) investing activities | (45 | ) | (191 | ) | (260 | ) | — | (496 | ) | ||||||||||
Financing activities | |||||||||||||||||||
Repurchase of common stock | (846 | ) | — | — | — | (846 | ) | ||||||||||||
Borrowings of debt | 997 | — | 999 | — | 1,996 | ||||||||||||||
Repayments of debt | — | (6 | ) | (1,181 | ) | — | (1,187 | ) | |||||||||||
Dividends paid | (115 | ) | — | — | — | (115 | ) | ||||||||||||
Issuance of common stock under employee stock purchase plan and for the exercise of stock options | 49 | — | — | — | 49 | ||||||||||||||
Excess tax benefits from stock-based compensation | — | — | — | — | — | ||||||||||||||
Other, net | (8 | ) | — | 6 | — | (2 | ) | ||||||||||||
Change in intercompany receivable/payable | 780 | (2 | ) | (778 | ) | — | — | ||||||||||||
Total cash provided by (used in) financing activities | 857 | (8 | ) | (954 | ) | — | (105 | ) | |||||||||||
Effect of exchange rate changes on cash | — | — | 1 | — | 1 | ||||||||||||||
Increase in cash and cash equivalents | 661 | 1 | 275 | — | 937 | ||||||||||||||
Cash and cash equivalents at beginning of period | 282 | 51 | 770 | — | 1,103 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 943 | $ | 52 | $ | 1,045 | $ | — | $ | 2,040 |
Best Buy Co., Inc. | Guarantor Subsidiary | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Total cash provided by (used in) operating activities | $ | 199 | $ | (472 | ) | $ | 357 | $ | — | $ | 84 | ||||||||
Investing activities | |||||||||||||||||||
Additions to property and equipment | — | (129 | ) | (213 | ) | — | (342 | ) | |||||||||||
Purchases of investments | (241 | ) | — | — | — | (241 | ) | ||||||||||||
Sales of investments | 378 | — | 1 | — | 379 | ||||||||||||||
Proceeds from sale of business | — | — | 21 | — | 21 | ||||||||||||||
Change in restricted assets | — | — | 12 | — | 12 | ||||||||||||||
Settlement of net investment hedges | — | — | 12 | — | 12 | ||||||||||||||
Other, net | — | — | (1 | ) | — | (1 | ) | ||||||||||||
Total cash provided by (used in) investing activities | 137 | (129 | ) | (168 | ) | — | (160 | ) | |||||||||||
Financing activities | |||||||||||||||||||
Repurchase of common stock | (667 | ) | — | — | — | (667 | ) | ||||||||||||
Borrowings of debt | — | — | 955 | — | 955 | ||||||||||||||
Repayments of debt | (1 | ) | (6 | ) | (1,200 | ) | — | (1,207 | ) | ||||||||||
Dividends paid | (118 | ) | — | — | — | (118 | ) | ||||||||||||
Issuance of common stock under employee stock purchase plan and for the exercise of stock options | 113 | — | — | — | 113 | ||||||||||||||
Excess tax benefits from stock-based compensation | 10 | — | — | — | 10 | ||||||||||||||
Other, net | — | — | 9 | — | 9 | ||||||||||||||
Change in intercompany receivable/payable | (707 | ) | 583 | 124 | — | — | |||||||||||||
Total cash (used in) provided by financing activities | (1,370 | ) | 577 | (112 | ) | — | (905 | ) | |||||||||||
Effect of exchange rate changes on cash | — | — | (2 | ) | — | (2 | ) | ||||||||||||
(Decrease) increase in cash and cash equivalents | (1,034 | ) | (24 | ) | 75 | — | (983 | ) | |||||||||||
Cash and cash equivalents at beginning of period | 1,170 | 53 | 603 | — | 1,826 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 136 | $ | 29 | $ | 678 | $ | — | $ | 843 |
|
|
August 27, 2011 | February 26, 2011 | August 28, 2010 | |||||||||
Short-term investments | |||||||||||
Money market fund | $ | — | $ | 2 | $ | 2 | |||||
U.S. Treasury bills | 80 | 20 | — | ||||||||
Total short-term investments | $ | 80 | $ | 22 | $ | 2 | |||||
Equity and other investments | |||||||||||
Debt securities (auction rate securities) | $ | 88 | $ | 110 | $ | 134 | |||||
Marketable equity securities | 122 | 146 | 97 | ||||||||
Other investments | 74 | 72 | 62 | ||||||||
Total equity and other investments | $ | 284 | $ | 328 | $ | 293 |
Description | Nature of collateral or guarantee | August 27, 2011 | February 26, 2011 | August 28, 2010 | ||||||||||
Student loan bonds | Student loans guaranteed 95% to 100% by the U.S. government | $ | 86 | $ | 108 | $ | 116 | |||||||
Municipal revenue bonds | 100% insured by AA/Aa-rated bond insurers at August 27, 2011 | 2 | 2 | 18 | ||||||||||
Total fair value plus accrued interest(1) | $ | 88 | $ | 110 | $ | 134 |
(1) | The par value and weighted-average interest rates (taxable equivalent) of our ARS were $93, $115 and $144, and 0.40%, 0.80% and 0.91%, respectively, at August 27, 2011, February 26, 2011, and August 28, 2010, respectively. |
August 27, 2011 | February 26, 2011 | August 28, 2010 | |||||||||
Common stock of TalkTalk Telecom Group PLC | $ | 69 | $ | 62 | $ | 51 | |||||
Common stock of Carphone Warehouse Group plc | 53 | 84 | 44 | ||||||||
Other | — | — | 2 | ||||||||
Total | $ | 122 | $ | 146 | $ | 97 |
|
Fair Value Measurements Using Inputs Considered as | |||||||||||||||
Fair Value at August 27, 2011 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
ASSETS | |||||||||||||||
Cash and cash equivalents | |||||||||||||||
Money market funds | $ | 560 | $ | 560 | $ | — | $ | — | |||||||
Commercial paper | 15 | — | 15 | — | |||||||||||
Short-term investments | |||||||||||||||
U.S. Treasury bills | 80 | 80 | — | — | |||||||||||
Other current assets | |||||||||||||||
Money market funds (restricted cash) | 157 | 157 | — | — | |||||||||||
U.S. Treasury bills (restricted cash) | 30 | 30 | — | — | |||||||||||
Foreign currency derivative instruments | 6 | — | 6 | — | |||||||||||
Equity and other investments | |||||||||||||||
Auction rate securities | 88 | — | — | 88 | |||||||||||
Marketable equity securities | 122 | 122 | — | — | |||||||||||
Other assets | |||||||||||||||
Marketable equity securities that fund deferred compensation | 83 | 83 | — | — | |||||||||||
Foreign currency derivative instruments | 1 | — | 1 | — | |||||||||||
LIABILITIES | |||||||||||||||
Long-term liabilities | |||||||||||||||
Deferred compensation | 65 | 65 | — | — |
Fair Value Measurements Using Inputs Considered as | |||||||||||||||
Fair Value at February 26, 2011 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
ASSETS | |||||||||||||||
Cash and cash equivalents | |||||||||||||||
Money market funds | $ | 70 | $ | 70 | $ | — | $ | — | |||||||
Short-term investments | |||||||||||||||
Money market fund | 2 | — | 2 | — | |||||||||||
U.S. Treasury bills | 20 | 20 | — | — | |||||||||||
Other current assets | |||||||||||||||
Money market funds (restricted cash) | 63 | 63 | — | — | |||||||||||
U.S. Treasury bills (restricted cash) | 105 | 105 | — | — | |||||||||||
Foreign currency derivative instruments | 2 | — | 2 | — | |||||||||||
Equity and other investments | |||||||||||||||
Auction rate securities | 110 | — | — | 110 | |||||||||||
Marketable equity securities | 146 | 146 | — | — | |||||||||||
Other assets | |||||||||||||||
Marketable equity securities that fund deferred compensation | 83 | 83 | — | — | |||||||||||
LIABILITIES | |||||||||||||||
Accrued liabilities | |||||||||||||||
Foreign currency derivative instruments | 1 | — | 1 | — | |||||||||||
Long-term liabilities | |||||||||||||||
Deferred compensation | 64 | 64 | — | — | |||||||||||
Foreign currency derivative instruments | 2 | — | 2 | — |
Fair Value Measurements Using Inputs Considered as | |||||||||||||||
Fair Value at August 28, 2010 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
ASSETS | |||||||||||||||
Cash and cash equivalents | |||||||||||||||
Money market funds | $ | 1 | $ | 1 | $ | — | $ | — | |||||||
Short-term investments | |||||||||||||||
Money market fund | 2 | — | 2 | — | |||||||||||
Other current assets | |||||||||||||||
Money market funds (restricted cash) | 49 | 49 | — | — | |||||||||||
U.S. Treasury bills (restricted cash) | 100 | 100 | — | — | |||||||||||
Foreign currency derivative instruments | 6 | — | 6 | — | |||||||||||
Equity and other investments | |||||||||||||||
Auction rate securities | 134 | — | — | 134 | |||||||||||
Marketable equity securities | 97 | 97 | — | — | |||||||||||
Other assets | |||||||||||||||
Marketable equity securities that fund deferred compensation | 77 | 77 | — | — | |||||||||||
Foreign currency derivative instruments | 6 | — | 6 | — | |||||||||||
LIABILITIES | |||||||||||||||
Long-term liabilities | |||||||||||||||
Deferred compensation | 64 | 64 | — | — |
Debt securities- Auction rate securities only | |||||||||||
Student loan bonds | Municipal revenue bonds | Total | |||||||||
Balances at May 28, 2011 | $ | 97 | $ | 2 | $ | 99 | |||||
Changes in unrealized losses included in other comprehensive income | (3 | ) | — | (3 | ) | ||||||
Sales | (8 | ) | — | (8 | ) | ||||||
Balances at August 27, 2011 | $ | 86 | $ | 2 | $ | 88 |
Debt securities- Auction rate securities only | |||||||||||
Student loan bonds | Municipal revenue bonds | Total | |||||||||
Balances at February 26, 2011 | $ | 108 | $ | 2 | $ | 110 | |||||
Changes in unrealized losses included in other comprehensive income | — | — | — | ||||||||
Sales | (22 | ) | — | (22 | ) | ||||||
Balances at August 27, 2011 | $ | 86 | $ | 2 | $ | 88 |
Debt securities- Auction rate securities only | |||||||||||
Student loan bonds | Municipal revenue bonds | Total | |||||||||
Balances at May 29, 2010 | $ | 214 | $ | 19 | $ | 233 | |||||
Changes in unrealized losses included in other comprehensive income | — | — | — | ||||||||
Sales | (98 | ) | (1 | ) | (99 | ) | |||||
Balances at August 28, 2010 | $ | 116 | $ | 18 | $ | 134 |
Debt securities- Auction rate securities only | |||||||||||
Student loan bonds | Municipal revenue bonds | Total | |||||||||
Balances at February 27, 2010 | $ | 261 | $ | 19 | $ | 280 | |||||
Changes in unrealized losses included in other comprehensive income | (5 | ) | — | (5 | ) | ||||||
Sales | (139 | ) | (1 | ) | (140 | ) | |||||
Interest received | (1 | ) | — | (1 | ) | ||||||
Balances at August 28, 2010 | $ | 116 | $ | 18 | $ | 134 |
|
Goodwill | Indefinite-lived Tradenames | ||||||||||||||||||||||
Domestic | International | Total | Domestic | International | Total | ||||||||||||||||||
Balances at February 26, 2011 | $ | 422 | $ | 2,032 | $ | 2,454 | $ | 21 | $ | 84 | $ | 105 | |||||||||||
Changes in foreign currency exchange rates | — | 32 | 32 | — | 1 | 1 | |||||||||||||||||
Other(1) | — | — | — | — | 28 | 28 | |||||||||||||||||
Balances at August 27, 2011 | $ | 422 | $ | 2,064 | $ | 2,486 | $ | 21 | $ | 113 | $ | 134 |
(1) | Represents the transfer of certain definite-lived tradenames (at their net book value) to indefinite-lived tradenames following our decision to no longer phase out certain tradenames. We believe these tradenames will continue to contribute to our future cash flows indefinitely. |
Goodwill | Indefinite-lived Tradenames | ||||||||||||||||||||||
Domestic | International | Total | Domestic | International | Total | ||||||||||||||||||
Balances at February 27, 2010 | $ | 434 | $ | 2,018 | $ | 2,452 | $ | 32 | $ | 80 | $ | 112 | |||||||||||
Sale of business(1) | (12 | ) | — | (12 | ) | (1 | ) | — | (1 | ) | |||||||||||||
Changes in foreign currency exchange rates | — | (75 | ) | (75 | ) | — | — | — | |||||||||||||||
Balances at August 28, 2010 | $ | 422 | $ | 1,943 | $ | 2,365 | $ | 31 | $ | 80 | $ | 111 |
(1) | As a result of the sale of our Speakeasy business in the second quarter of fiscal 2011, we wrote off the carrying value of the related goodwill and indefinite-lived tradenames as of the date of sale. |
August 27, 2011 | February 26, 2011 | August 28, 2010 | |||||||||||||||||||||
Gross Carrying Amount | Cumulative Impairment | Gross Carrying Amount | Cumulative Impairment | Gross Carrying Amount | Cumulative Impairment | ||||||||||||||||||
Goodwill | $ | 2,551 | $ | (65 | ) | $ | 2,519 | $ | (65 | ) | $ | 2,430 | $ | (65 | ) |
August 27, 2011 | February 26, 2011 | August 28, 2010 | |||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||||||||
Tradenames | $ | — | $ | — | $ | 73 | $ | (45 | ) | $ | 71 | $ | (35 | ) | |||||||||
Customer relationships | 393 | (214 | ) | 383 | (180 | ) | 372 | (145 | ) | ||||||||||||||
Total | $ | 393 | $ | (214 | ) | $ | 456 | $ | (225 | ) | $ | 443 | $ | (180 | ) |
Fiscal Year | |||
Remainder of fiscal 2012 | $ | 18 | |
2013 | 36 | ||
2014 | 36 | ||
2015 | 36 | ||
2016 | 36 | ||
Thereafter | 17 |
|
Domestic | International | Total | |||||||||||||||||||||
Six Months Ended August 27, 2011 | Cumulative Amount through August 27, 2011 | Six Months Ended August 27, 2011 | Cumulative Amount through August 27, 2011 | Six Months Ended August 27, 2011 | Cumulative Amount through August 27, 2011 | ||||||||||||||||||
Inventory write-downs | $ | — | $ | 10 | $ | — | $ | 14 | $ | — | $ | 24 | |||||||||||
Property and equipment impairments | — | 15 | — | 132 | — | 147 | |||||||||||||||||
Termination benefits | (3 | ) | 13 | 6 | 18 | 3 | 31 | ||||||||||||||||
Intangible asset impairments | — | 10 | — | — | — | 10 | |||||||||||||||||
Facility closure and other costs, net | 4 | 4 | (3 | ) | 10 | 1 | 14 | ||||||||||||||||
Total | $ | 1 | $ | 52 | $ | 3 | $ | 174 | $ | 4 | $ | 226 |
Termination Benefits | Facility Closure and Other Costs(1) | Total | |||||||||
Balance at February 26, 2011 | $ | 28 | $ | 13 | $ | 41 | |||||
Charges | 6 | 2 | 8 | ||||||||
Cash payments | (25 | ) | (11 | ) | (36 | ) | |||||
Adjustments | (3 | ) | 8 | 5 | |||||||
Changes in foreign currency exchange rates | — | 1 | 1 | ||||||||
Balance at August 27, 2011 | $ | 6 | $ | 13 | $ | 19 |
(1) | Included within the facility closure and other costs adjustments is $10 from the first quarter of fiscal 2011, representing an adjustment to exclude non-cash charges or benefits, which had no impact on our consolidated statements of earnings in the first six months of fiscal 2012. |
|
August 27, 2011 | February 26, 2011 | August 28, 2010 | |||||||||
JPMorgan revolving credit facility | $ | — | $ | — | $ | — | |||||
Europe receivables financing facility(1) | 386 | 455 | 350 | ||||||||
Europe revolving credit facility | — | 98 | — | ||||||||
Canada revolving demand facility | — | — | — | ||||||||
China revolving demand facilities | 6 | 4 | 33 | ||||||||
Total short-term debt | $ | 392 | $ | 557 | $ | 383 |
(1) | This facility is secured by certain network carrier receivables of Best Buy Europe, which are included within receivables in our condensed consolidated balance sheets. The total amount available for borrowing under this facility is based on a percentage of the available acceptable receivables, as defined in the agreement for the facility, and was £277 (or $445) at August 27, 2011. |
August 27, 2011 | February 26, 2011 | August 28, 2010 | |||||||||
2021 Notes | $ | 648 | $ | — | $ | — | |||||
2013 Notes | 500 | 500 | 500 | ||||||||
2016 Notes | 349 | — | — | ||||||||
Convertible debentures | 402 | 402 | 402 | ||||||||
Financing lease obligations | 167 | 170 | 175 | ||||||||
Capital lease obligations | 72 | 79 | 41 | ||||||||
Other debt | 2 | 1 | 2 | ||||||||
Total long-term debt | 2,140 | 1,152 | 1,120 | ||||||||
Less: current portion(1) | (444 | ) | (441 | ) | (32 | ) | |||||
Total long-term debt, less current portion | $ | 1,696 | $ | 711 | $ | 1,088 |
(1) | Since holders of our convertible debentures may require us to purchase all or a portion of the debentures on January 15, 2012, we classified the $402 for such debentures in the current portion of long-term debt at August 27, 2011, and February 26, 2011. |
|
August 27, 2011 | February 26, 2011 | August 28, 2010 | ||||||||||||||||||||||
Contract Type | Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | ||||||||||||||||||
Cash flow hedges (foreign exchange forward contracts) | $ | 6 | $ | — | $ | 1 | $ | (2 | ) | $ | 13 | $ | (4 | ) | ||||||||||
No hedge designation (foreign exchange forward contracts) | 1 | — | 2 | (2 | ) | 3 | — | |||||||||||||||||
Total | $ | 7 | $ | — | $ | 3 | $ | (4 | ) | $ | 16 | $ | (4 | ) |
Three Months Ended | Six Months Ended | |||||||||||||||
August 27, 2011 | August 27, 2011 | |||||||||||||||
Contract Type | Pre-tax Gain Recognized in OCI(1) | Gain Reclassified from Accumulated OCI to Earnings (Effective Portion)(2) | Pre-tax Gain Recognized in OCI(1) | Gain Reclassified from Accumulated OCI to Earnings (Effective Portion)(2) | ||||||||||||
Cash flow hedges (foreign exchange forward contracts) | $ | 5 | $ | 5 | $ | 13 | $ | 7 |
Three Months Ended | Six Months Ended | |||||||||||||||
August 28, 2010 | August 28, 2010 | |||||||||||||||
Contract Type | Pre-tax Gain Recognized in OCI(1) | Gain Reclassified from Accumulated OCI to Earnings (Effective Portion)(2) | Pre-tax Gain Recognized in OCI(1) | Gain Reclassified from Accumulated OCI to Earnings (Effective Portion)(2) | ||||||||||||
Cash flow hedges (foreign exchange forward contracts) | $ | 10 | $ | — | $ | 10 | $ | 1 | ||||||||
Net investment hedges (foreign exchange swap contracts) | — | — | 8 | — | ||||||||||||
Total | $ | 10 | $ | — | $ | 18 | $ | 1 |
(1) | Reflects the amount recognized in OCI prior to the reclassification of 50% to noncontrolling interests for the cash flow and net investment hedges, respectively. |
(2) | Gain reclassified from accumulated OCI is included within selling, general and administrative expenses (“SG&A”) in our consolidated statements of earnings. |
(Loss) Gain Recognized within SG&A | ||||||||||||||||
Three Months Ended | Six Months Ended | Three Months Ended | Six Months Ended | |||||||||||||
Contract Type | August 27, 2011 | August 27, 2011 | August 28, 2010 | August 28, 2010 | ||||||||||||
No hedge designation (foreign exchange forward contracts) | $ | (3 | ) | $ | (9 | ) | $ | 7 | $ | 12 |
Notional Amount | ||||||||||||
Contract Type | August 27, 2011 | February 26, 2011 | August 28, 2010 | |||||||||
Derivatives designated as cash flow hedging instruments | $ | 268 | $ | 264 | $ | 311 | ||||||
Derivatives not designated as hedging instruments | 286 | 493 | 255 | |||||||||
Total | $ | 554 | $ | 757 | $ | 566 |
|
August 27, 2011 | February 26, 2011 | August 28, 2010 | |||||||||
Foreign currency translation | $ | 159 | $ | 102 | $ | (58 | ) | ||||
Unrealized gains on available-for-sale investments | 51 | 72 | 29 | ||||||||
Unrealized gains (losses) on derivative instruments (cash flow hedges) | 1 | (1 | ) | 4 | |||||||
Total | $ | 211 | $ | 173 | $ | (25 | ) |
|
Three Months Ended | Six Months Ended | ||||||||||||||
August 27, 2011 | August 28, 2010 | August 27, 2011 | August 28, 2010 | ||||||||||||
June 2011 Program | |||||||||||||||
Number of shares repurchased | 9.1 | — | 9.1 | — | |||||||||||
Cost of shares repurchased | $ | 252 | $ | — | $ | 252 | $ | — | |||||||
June 2007 Program | |||||||||||||||
Number of shares repurchased | 3.6 | 17.3 | 20.1 | 19.8 | |||||||||||
Cost of shares repurchased | $ | 106 | $ | 594 | $ | 611 | $ | 705 |
|
Three Months Ended | Six Months Ended | ||||||||||||||
August 27, 2011 | August 28, 2010 | August 27, 2011 | August 28, 2010 | ||||||||||||
Domestic | $ | 8,311 | $ | 8,436 | $ | 16,170 | $ | 16,359 | |||||||
International | 3,036 | 2,903 | 6,117 | 5,767 | |||||||||||
Total | $ | 11,347 | $ | 11,339 | $ | 22,287 | $ | 22,126 |
Three Months Ended | Six Months Ended | ||||||||||||||
August 27, 2011 | August 28, 2010 | August 27, 2011 | August 28, 2010 | ||||||||||||
Domestic | $ | 303 | $ | 407 | $ | 537 | $ | 705 | |||||||
International | (16 | ) | 4 | 32 | 19 | ||||||||||
Total operating income | 287 | 411 | 569 | 724 | |||||||||||
Other income (expense) | |||||||||||||||
Investment income and other | 6 | 13 | 18 | 25 | |||||||||||
Interest expense | (34 | ) | (21 | ) | (65 | ) | (44 | ) | |||||||
Earnings before income tax expense and equity in loss of affiliates | $ | 259 | $ | 403 | $ | 522 | $ | 705 |
August 27, 2011 | February 26, 2011 | August 28, 2010 | |||||||||
Domestic | $ | 10,360 | $ | 9,610 | $ | 9,818 | |||||
International | 8,469 | 8,239 | 7,544 | ||||||||
Total | $ | 18,829 | $ | 17,849 | $ | 17,362 |
|
Best Buy Co., Inc. | Guarantor Subsidiary | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Assets | |||||||||||||||||||
Current Assets | |||||||||||||||||||
Cash and cash equivalents | $ | 943 | $ | 52 | $ | 1,045 | $ | — | $ | 2,040 | |||||||||
Short-term investments | 80 | — | — | — | 80 | ||||||||||||||
Receivables | 1 | 522 | 1,422 | — | 1,945 | ||||||||||||||
Merchandise inventories | — | 4,329 | 2,125 | (51 | ) | 6,403 | |||||||||||||
Other current assets | 157 | 57 | 831 | (12 | ) | 1,033 | |||||||||||||
Intercompany receivable | — | — | 9,843 | (9,843 | ) | — | |||||||||||||
Intercompany note receivable | 895 | — | 106 | (1,001 | ) | — | |||||||||||||
Total current assets | 2,076 | 4,960 | 15,372 | (10,907 | ) | 11,501 | |||||||||||||
Property and Equipment, Net | 200 | 1,742 | 1,819 | — | 3,761 | ||||||||||||||
Goodwill | — | 6 | 2,480 | — | 2,486 | ||||||||||||||
Tradenames, Net | — | — | 134 | — | 134 | ||||||||||||||
Customer Relationships, Net | — | — | 179 | — | 179 | ||||||||||||||
Equity and Other Investments | 143 | — | 141 | — | 284 | ||||||||||||||
Other Assets | 226 | 35 | 223 | — | 484 | ||||||||||||||
Investments in Subsidiaries | 14,487 | 241 | 2,556 | (17,284 | ) | — | |||||||||||||
Total Assets | $ | 17,132 | $ | 6,984 | $ | 22,904 | $ | (28,191 | ) | $ | 18,829 | ||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||
Current Liabilities | |||||||||||||||||||
Accounts payable | $ | 341 | $ | 62 | $ | 5,427 | $ | — | $ | 5,830 | |||||||||
Unredeemed gift card liabilities | — | 347 | 63 | — | 410 | ||||||||||||||
Accrued compensation and related expenses | — | 174 | 315 | — | 489 | ||||||||||||||
Accrued liabilities | 51 | 711 | 829 | (11 | ) | 1,580 | |||||||||||||
Accrued income taxes | 2 | — | — | — | 2 | ||||||||||||||
Short-term debt | — | — | 392 | — | 392 | ||||||||||||||
Current portion of long-term debt | 403 | 23 | 18 | — | 444 | ||||||||||||||
Intercompany payable | 8,132 | 1,711 | — | (9,843 | ) | — | |||||||||||||
Intercompany note payable | 106 | 501 | 394 | (1,001 | ) | — | |||||||||||||
Total current liabilities | 9,035 | 3,529 | 7,438 | (10,855 | ) | 9,147 | |||||||||||||
Long-Term Liabilities | 466 | 781 | 174 | (245 | ) | 1,176 | |||||||||||||
Long-Term Debt | 1,496 | 118 | 82 | — | 1,696 | ||||||||||||||
Equity | |||||||||||||||||||
Shareholders’ equity | 6,135 | 2,556 | 14,487 | (17,091 | ) | 6,087 | |||||||||||||
Noncontrolling interests | — | — | 723 | — | 723 | ||||||||||||||
Total equity | 6,135 | 2,556 | 15,210 | (17,091 | ) | 6,810 | |||||||||||||
Total Liabilities and Equity | $ | 17,132 | $ | 6,984 | $ | 22,904 | $ | (28,191 | ) | $ | 18,829 |
Best Buy Co., Inc. | Guarantor Subsidiary | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Assets | |||||||||||||||||||
Current Assets | |||||||||||||||||||
Cash and cash equivalents | $ | 282 | $ | 51 | $ | 770 | $ | — | $ | 1,103 | |||||||||
Short-term investments | 20 | — | 2 | — | 22 | ||||||||||||||
Receivables | 3 | 738 | 1,607 | — | 2,348 | ||||||||||||||
Merchandise inventories | — | 3,973 | 1,999 | (75 | ) | 5,897 | |||||||||||||
Other current assets | 234 | 117 | 752 | — | 1,103 | ||||||||||||||
Intercompany receivable | — | — | 9,300 | (9,300 | ) | — | |||||||||||||
Intercompany note receivable | 854 | — | 91 | (945 | ) | — | |||||||||||||
Total current assets | 1,393 | 4,879 | 14,521 | (10,320 | ) | 10,473 | |||||||||||||
Property and Equipment, Net | 200 | 1,803 | 1,820 | — | 3,823 | ||||||||||||||
Goodwill | — | 6 | 2,448 | — | 2,454 | ||||||||||||||
Tradenames, Net | — | — | 133 | — | 133 | ||||||||||||||
Customer Relationships, Net | — | — | 203 | — | 203 | ||||||||||||||
Equity and Other Investments | 162 | — | 166 | — | 328 | ||||||||||||||
Other Assets | 181 | 36 | 273 | (55 | ) | 435 | |||||||||||||
Investments in Subsidiaries | 14,030 | 229 | 2,444 | (16,703 | ) | — | |||||||||||||
Total Assets | $ | 15,966 | $ | 6,953 | $ | 22,008 | $ | (27,078 | ) | $ | 17,849 | ||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||
Current Liabilities | |||||||||||||||||||
Accounts payable | $ | 361 | $ | 101 | $ | 4,432 | $ | — | $ | 4,894 | |||||||||
Unredeemed gift card liabilities | — | 404 | 70 | — | 474 | ||||||||||||||
Accrued compensation and related expenses | — | 200 | 370 | — | 570 | ||||||||||||||
Accrued liabilities | 13 | 625 | 833 | — | 1,471 | ||||||||||||||
Accrued income taxes | 256 | — | — | — | 256 | ||||||||||||||
Short-term debt | — | — | 557 | — | 557 | ||||||||||||||
Current portion of long-term debt | 402 | 23 | 16 | — | 441 | ||||||||||||||
Intercompany payable | 7,497 | 1,665 | 138 | (9,300 | ) | — | |||||||||||||
Intercompany note payable | 103 | 500 | 342 | (945 | ) | — | |||||||||||||
Total current liabilities | 8,632 | 3,518 | 6,758 | (10,245 | ) | 8,663 | |||||||||||||
Long-Term Liabilities | 160 | 863 | 447 | (287 | ) | 1,183 | |||||||||||||
Long-Term Debt | 500 | 128 | 83 | — | 711 | ||||||||||||||
Equity | |||||||||||||||||||
Shareholders’ equity | 6,674 | 2,444 | 14,030 | (16,546 | ) | 6,602 | |||||||||||||
Noncontrolling interests | — | — | 690 | — | 690 | ||||||||||||||
Total equity | 6,674 | 2,444 | 14,720 | (16,546 | ) | 7,292 | |||||||||||||
Total Liabilities and Equity | $ | 15,966 | $ | 6,953 | $ | 22,008 | $ | (27,078 | ) | $ | 17,849 |
Best Buy Co., Inc. | Guarantor Subsidiary | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Assets | |||||||||||||||||||
Current Assets | |||||||||||||||||||
Cash and cash equivalents | $ | 136 | $ | 29 | $ | 678 | $ | — | $ | 843 | |||||||||
Short-term investments | — | — | 2 | — | 2 | ||||||||||||||
Receivables | 1 | 500 | 1,219 | — | 1,720 | ||||||||||||||
Merchandise inventories | — | 4,387 | 2,032 | (73 | ) | 6,346 | |||||||||||||
Other current assets | 242 | 74 | 733 | (1 | ) | 1,048 | |||||||||||||
Intercompany receivable | — | — | 8,604 | (8,604 | ) | — | |||||||||||||
Intercompany note receivable | 1,566 | — | 7 | (1,573 | ) | — | |||||||||||||
Total current assets | 1,945 | 4,990 | 13,275 | (10,251 | ) | 9,959 | |||||||||||||
Property and Equipment, Net | 211 | 1,798 | 1,906 | — | 3,915 | ||||||||||||||
Goodwill | — | 6 | 2,359 | — | 2,365 | ||||||||||||||
Tradenames, Net | — | — | 147 | — | 147 | ||||||||||||||
Customer Relationships, Net | — | — | 227 | — | 227 | ||||||||||||||
Equity and Other Investments | 166 | — | 127 | — | 293 | ||||||||||||||
Other Assets | 92 | 27 | 375 | (38 | ) | 456 | |||||||||||||
Investments in Subsidiaries | 12,043 | 296 | 2,411 | (14,750 | ) | — | |||||||||||||
Total Assets | $ | 14,457 | $ | 7,117 | $ | 20,827 | $ | (25,039 | ) | $ | 17,362 | ||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||
Current Liabilities | |||||||||||||||||||
Accounts payable | $ | 350 | $ | 34 | $ | 5,189 | $ | — | $ | 5,573 | |||||||||
Unredeemed gift card liabilities | — | 344 | 56 | — | 400 | ||||||||||||||
Accrued compensation and related expenses | 1 | 191 | 275 | — | 467 | ||||||||||||||
Accrued liabilities | 18 | 670 | 901 | — | 1,589 | ||||||||||||||
Accrued income taxes | 27 | — | — | — | 27 | ||||||||||||||
Short-term debt | — | — | 383 | — | 383 | ||||||||||||||
Current portion of long-term debt | — | 20 | 12 | — | 32 | ||||||||||||||
Intercompany payable | 6,869 | 1,735 | — | (8,604 | ) | — | |||||||||||||
Intercompany note payable | 19 | 500 | 1,054 | (1,573 | ) | — | |||||||||||||
Total current liabilities | 7,284 | 3,494 | 7,870 | (10,177 | ) | 8,471 | |||||||||||||
Long-Term Liabilities | 185 | 1,089 | 245 | (338 | ) | 1,181 | |||||||||||||
Long-Term Debt | 902 | 123 | 63 | — | 1,088 | ||||||||||||||
Equity | |||||||||||||||||||
Shareholders’ equity | 6,086 | 2,411 | 12,042 | (14,524 | ) | 6,015 | |||||||||||||
Noncontrolling interests | — | — | 607 | — | 607 | ||||||||||||||
Total equity | 6,086 | 2,411 | 12,649 | (14,524 | ) | 6,622 | |||||||||||||
Total Liabilities and Equity | $ | 14,457 | $ | 7,117 | $ | 20,827 | $ | (25,039 | ) | $ | 17,362 |
Best Buy Co., Inc. | Guarantor Subsidiary | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Revenue | $ | 4 | $ | 7,591 | $ | 9,810 | $ | (6,058 | ) | $ | 11,347 | ||||||||
Cost of goods sold | — | 5,625 | 8,381 | (5,531 | ) | 8,475 | |||||||||||||
Gross profit | 4 | 1,966 | 1,429 | (527 | ) | 2,872 | |||||||||||||
Selling, general and administrative expenses | 37 | 1,890 | 1,233 | (577 | ) | 2,583 | |||||||||||||
Restructuring charges | — | — | 2 | — | 2 | ||||||||||||||
Operating (loss) income | (33 | ) | 76 | 194 | 50 | 287 | |||||||||||||
Other income (expense) | |||||||||||||||||||
Investment income and other | 6 | — | 5 | (5 | ) | 6 | |||||||||||||
Interest expense | (23 | ) | (3 | ) | (13 | ) | 5 | (34 | ) | ||||||||||
(Loss) earnings before equity in earnings of subsidiaries | (50 | ) | 73 | 186 | 50 | 259 | |||||||||||||
Equity in earnings of subsidiaries | 175 | 9 | 48 | (232 | ) | — | |||||||||||||
Earnings before income tax expense and equity in loss of affiliates | 125 | 82 | 234 | (182 | ) | 259 | |||||||||||||
Income tax (benefit) expense | (2 | ) | 25 | 76 | — | 99 | |||||||||||||
Equity in loss of affiliates | — | — | — | — | — | ||||||||||||||
Net earnings including noncontrolling interests | 127 | 57 | 158 | (182 | ) | 160 | |||||||||||||
Net loss attributable to noncontrolling interests | — | — | 17 | — | 17 | ||||||||||||||
Net earnings attributable to Best Buy Co., Inc. | $ | 127 | $ | 57 | $ | 175 | $ | (182 | ) | $ | 177 |
Best Buy Co., Inc. | Guarantor Subsidiary | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Revenue | $ | 8 | $ | 14,799 | $ | 20,169 | $ | (12,689 | ) | $ | 22,287 | ||||||||
Cost of goods sold | — | 10,998 | 17,368 | (11,719 | ) | 16,647 | |||||||||||||
Gross profit | 8 | 3,801 | 2,801 | (970 | ) | 5,640 | |||||||||||||
Selling, general and administrative expenses | 73 | 3,655 | 2,406 | (1,067 | ) | 5,067 | |||||||||||||
Restructuring charges | — | (2 | ) | 6 | — | 4 | |||||||||||||
Operating (loss) income | (65 | ) | 148 | 389 | 97 | 569 | |||||||||||||
Other income (expense) | |||||||||||||||||||
Investment income and other | 10 | — | 17 | (9 | ) | 18 | |||||||||||||
Interest expense | (46 | ) | (6 | ) | (22 | ) | 9 | (65 | ) | ||||||||||
(Loss) earnings before equity in earnings of subsidiaries | (101 | ) | 142 | 384 | 97 | 522 | |||||||||||||
Equity in earnings of subsidiaries | 320 | 18 | 93 | (431 | ) | — | |||||||||||||
Earnings before income tax expense and equity in loss of affiliates | 219 | 160 | 477 | (334 | ) | 522 | |||||||||||||
Income tax expense | 3 | 49 | 146 | — | 198 | ||||||||||||||
Equity in loss of affiliates | — | — | (1 | ) | — | (1 | ) | ||||||||||||
Net earnings including noncontrolling interests | 216 | 111 | 330 | (334 | ) | 323 | |||||||||||||
Net earnings attributable to noncontrolling interests | — | — | (10 | ) | — | (10 | ) | ||||||||||||
Net earnings attributable to Best Buy Co., Inc. | $ | 216 | $ | 111 | $ | 320 | $ | (334 | ) | $ | 313 |
Best Buy Co., Inc. | Guarantor Subsidiary | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Revenue | $ | 4 | $ | 7,780 | $ | 10,162 | $ | (6,607 | ) | $ | 11,339 | ||||||||
Cost of goods sold | — | 5,739 | 8,674 | (5,992 | ) | 8,421 | |||||||||||||
Gross profit | 4 | 2,041 | 1,488 | (615 | ) | 2,918 | |||||||||||||
Selling, general and administrative expenses | 34 | 1,970 | 1,166 | (663 | ) | 2,507 | |||||||||||||
Operating (loss) income | (30 | ) | 71 | 322 | 48 | 411 | |||||||||||||
Other income (expense) | |||||||||||||||||||
Investment income and other | 11 | — | 14 | (12 | ) | 13 | |||||||||||||
Interest expense | (11 | ) | (3 | ) | (19 | ) | 12 | (21 | ) | ||||||||||
(Loss) earnings before equity in earnings of subsidiaries | (30 | ) | 68 | 317 | 48 | 403 | |||||||||||||
Equity in earnings of subsidiaries | 248 | 27 | 109 | (384 | ) | — | |||||||||||||
Earnings before income tax expense | 218 | 95 | 426 | (336 | ) | 403 | |||||||||||||
Income tax expense (benefit) | 12 | (41 | ) | 175 | — | 146 | |||||||||||||
Net earnings including noncontrolling interests | 206 | 136 | 251 | (336 | ) | 257 | |||||||||||||
Net earnings attributable to noncontrolling interests | — | — | (3 | ) | — | (3 | ) | ||||||||||||
Net earnings attributable to Best Buy Co., Inc. | $ | 206 | $ | 136 | $ | 248 | $ | (336 | ) | $ | 254 |
Best Buy Co., Inc. | Guarantor Subsidiary | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Revenue | $ | 8 | $ | 15,075 | $ | 20,697 | $ | (13,654 | ) | $ | 22,126 | ||||||||
Cost of goods sold | — | 11,119 | 17,756 | (12,460 | ) | 16,415 | |||||||||||||
Gross profit | 8 | 3,956 | 2,941 | (1,194 | ) | 5,711 | |||||||||||||
Selling, general and administrative expenses | 71 | 3,806 | 2,392 | (1,282 | ) | 4,987 | |||||||||||||
Operating (loss) income | (63 | ) | 150 | 549 | 88 | 724 | |||||||||||||
Other income (expense) | |||||||||||||||||||
Investment income and other | 19 | — | 25 | (19 | ) | 25 | |||||||||||||
Interest expense | (23 | ) | (6 | ) | (34 | ) | 19 | (44 | ) | ||||||||||
(Loss) earnings before equity in earnings of subsidiaries | (67 | ) | 144 | 540 | 88 | 705 | |||||||||||||
Equity in earnings of subsidiaries | 382 | 23 | 91 | (496 | ) | — | |||||||||||||
Earnings before income tax expense | 315 | 167 | 631 | (408 | ) | 705 | |||||||||||||
Income tax (benefit) expense | (6 | ) | 53 | 220 | — | 267 | |||||||||||||
Net earnings including noncontrolling interests | 321 | 114 | 411 | (408 | ) | 438 | |||||||||||||
Net earnings attributable to noncontrolling interests | — | — | (29 | ) | — | (29 | ) | ||||||||||||
Net earnings attributable to Best Buy Co., Inc. | $ | 321 | $ | 114 | $ | 382 | $ | (408 | ) | $ | 409 |
Best Buy Co., Inc. | Guarantor Subsidiary | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Total cash (used in) provided by operating activities | $ | (151 | ) | $ | 200 | $ | 1,488 | $ | — | $ | 1,537 | ||||||||
Investing activities | |||||||||||||||||||
Additions to property and equipment | (2 | ) | (191 | ) | (218 | ) | — | (411 | ) | ||||||||||
Purchases of investments | (86 | ) | — | (20 | ) | — | (106 | ) | |||||||||||
Sales of investments | 43 | — | 23 | — | 66 | ||||||||||||||
Proceeds from sale of business | — | — | — | — | — | ||||||||||||||
Change in restricted assets | — | — | (45 | ) | — | (45 | ) | ||||||||||||
Settlement of net investment hedges | — | — | — | — | — | ||||||||||||||
Other, net | — | — | — | — | — | ||||||||||||||
Total cash (used in) investing activities | (45 | ) | (191 | ) | (260 | ) | — | (496 | ) | ||||||||||
Financing activities | |||||||||||||||||||
Repurchase of common stock | (846 | ) | — | — | — | (846 | ) | ||||||||||||
Borrowings of debt | 997 | — | 999 | — | 1,996 | ||||||||||||||
Repayments of debt | — | (6 | ) | (1,181 | ) | — | (1,187 | ) | |||||||||||
Dividends paid | (115 | ) | — | — | — | (115 | ) | ||||||||||||
Issuance of common stock under employee stock purchase plan and for the exercise of stock options | 49 | — | — | — | 49 | ||||||||||||||
Excess tax benefits from stock-based compensation | — | — | — | — | — | ||||||||||||||
Other, net | (8 | ) | — | 6 | — | (2 | ) | ||||||||||||
Change in intercompany receivable/payable | 780 | (2 | ) | (778 | ) | — | — | ||||||||||||
Total cash provided by (used in) financing activities | 857 | (8 | ) | (954 | ) | — | (105 | ) | |||||||||||
Effect of exchange rate changes on cash | — | — | 1 | — | 1 | ||||||||||||||
Increase in cash and cash equivalents | 661 | 1 | 275 | — | 937 | ||||||||||||||
Cash and cash equivalents at beginning of period | 282 | 51 | 770 | — | 1,103 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 943 | $ | 52 | $ | 1,045 | $ | — | $ | 2,040 |
Best Buy Co., Inc. | Guarantor Subsidiary | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Total cash provided by (used in) operating activities | $ | 199 | $ | (472 | ) | $ | 357 | $ | — | $ | 84 | ||||||||
Investing activities | |||||||||||||||||||
Additions to property and equipment | — | (129 | ) | (213 | ) | — | (342 | ) | |||||||||||
Purchases of investments | (241 | ) | — | — | — | (241 | ) | ||||||||||||
Sales of investments | 378 | — | 1 | — | 379 | ||||||||||||||
Proceeds from sale of business | — | — | 21 | — | 21 | ||||||||||||||
Change in restricted assets | — | — | 12 | — | 12 | ||||||||||||||
Settlement of net investment hedges | — | — | 12 | — | 12 | ||||||||||||||
Other, net | — | — | (1 | ) | — | (1 | ) | ||||||||||||
Total cash provided by (used in) investing activities | 137 | (129 | ) | (168 | ) | — | (160 | ) | |||||||||||
Financing activities | |||||||||||||||||||
Repurchase of common stock | (667 | ) | — | — | — | (667 | ) | ||||||||||||
Borrowings of debt | — | — | 955 | — | 955 | ||||||||||||||
Repayments of debt | (1 | ) | (6 | ) | (1,200 | ) | — | (1,207 | ) | ||||||||||
Dividends paid | (118 | ) | — | — | — | (118 | ) | ||||||||||||
Issuance of common stock under employee stock purchase plan and for the exercise of stock options | 113 | — | — | — | 113 | ||||||||||||||
Excess tax benefits from stock-based compensation | 10 | — | — | — | 10 | ||||||||||||||
Other, net | — | — | 9 | — | 9 | ||||||||||||||
Change in intercompany receivable/payable | (707 | ) | 583 | 124 | — | — | |||||||||||||
Total cash (used in) provided by financing activities | (1,370 | ) | 577 | (112 | ) | — | (905 | ) | |||||||||||
Effect of exchange rate changes on cash | — | — | (2 | ) | — | (2 | ) | ||||||||||||
(Decrease) increase in cash and cash equivalents | (1,034 | ) | (24 | ) | 75 | — | (983 | ) | |||||||||||
Cash and cash equivalents at beginning of period | 1,170 | 53 | 603 | — | 1,826 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 136 | $ | 29 | $ | 678 | $ | — | $ | 843 |
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