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Asset | Life (in years) |
Buildings | 25-50 |
Leasehold improvements | 3-25 |
Fixtures and equipment | 3-20 |
Property under capital lease | 2-20 |
Goodwill | Indefinite-Lived Tradenames | ||||||||||||||||||||||
Domestic | International | Total | Domestic | International | Total | ||||||||||||||||||
Balances at February 28, 2009 | $ | 434 | $ | 1,769 | $ | 2,203 | $ | 32 | $ | 72 | $ | 104 | |||||||||||
Purchase accounting adjustments(1) | — | 48 | 48 | — | — | — | |||||||||||||||||
Changes in foreign currency exchange rates | — | 201 | 201 | — | 8 | 8 | |||||||||||||||||
Balances at February 27, 2010 | 434 | 2,018 | 2,452 | 32 | 80 | 112 | |||||||||||||||||
Acquisitions | — | 5 | 5 | — | — | — | |||||||||||||||||
Impairments(2) | — | — | — | (10 | ) | — | (10 | ) | |||||||||||||||
Sale of business(3) | (12 | ) | — | (12 | ) | (1 | ) | — | (1 | ) | |||||||||||||
Changes in foreign currency exchange rates | — | 9 | 9 | — | 4 | 4 | |||||||||||||||||
Balances at February 26, 2011 | 422 | 2,032 | 2,454 | 21 | 84 | 105 | |||||||||||||||||
Acquisitions(4) | 94 | — | 94 | 1 | — | 1 | |||||||||||||||||
Impairments | — | (1,207 | ) | (1,207 | ) | — | — | — | |||||||||||||||
Sale of business | — | (7 | ) | (7 | ) | (3 | ) | (2 | ) | (5 | ) | ||||||||||||
Changes in foreign currency exchange rates | — | 1 | 1 | — | 1 | 1 | |||||||||||||||||
Other(5) | — | — | — | — | 28 | 28 | |||||||||||||||||
Balances at March 3, 2012 | $ | 516 | $ | 819 | $ | 1,335 | $ | 19 | $ | 111 | $ | 130 |
(1) | The adjustment in fiscal 2010 related to the finalization of the purchase price allocations from our acquisitions of Best Buy Europe and Five Star. |
(2) | As part of our fiscal 2011 restructuring activities, we recorded an impairment charge related to certain indefinite-lived tradenames in our Domestic segment. See Note 7, Restructuring Charges, for further information. |
(3) | As a result of the sale of our Speakeasy business in the second quarter of fiscal 2011, we eliminated the carrying value of the related goodwill and indefinite-lived tradenames as of the date of sale. |
(4) | Represents goodwill acquired, primarily as a result of the mindSHIFT acquisition. See Note 4, Acquisitions, for further information. |
(5) | 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. |
March 3, 2012 | February 26, 2011 | ||||||||||||||
Gross Carrying Amount | Cumulative Impairment | Gross Carrying Amount | Cumulative Impairment | ||||||||||||
Goodwill | $ | 2,596 | $ | (1,261 | ) | $ | 2,519 | $ | (65 | ) |
March 3, 2012 | February 26, 2011 | ||||||||||||||
Tradenames | Customer Relationships | Tradenames | Customer Relationships | ||||||||||||
Indefinite-lived | $ | 130 | $ | — | $ | 105 | $ | — | |||||||
Definite-lived | — | 229 | 28 | 203 | |||||||||||
Total | $ | 130 | $ | 229 | $ | 133 | $ | 203 |
March 3, 2012 | February 26, 2011 | ||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||
Tradenames | $ | — | $ | — | $ | 73 | $ | (45 | ) | ||||||
Customer relationships | 453 | (224 | ) | 383 | (180 | ) | |||||||||
Total | $ | 453 | $ | (224 | ) | $ | 456 | $ | (225 | ) |
Fiscal Year | |||
2013 | $ | 40 | |
2014 | 40 | ||
2015 | 40 | ||
2016 | 40 | ||
2017 | 22 | ||
Thereafter | 47 |
March 3, 2012 | February 26, 2011 | ||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||
Lease rights | $ | 130 | $ | (73 | ) | $ | 131 | $ | (57 | ) |
March 3, 2012 | February 26, 2011 | ||||||
Accrued liabilities | $ | 77 | $ | 81 | |||
Long-term liabilities | 47 | 49 | |||||
Total | $ | 124 | $ | 130 |
2012 | 2011 | 2010 | |||||||||
Gift card breakage income | $ | 54 | $ | 51 | $ | 41 |
Cost of Goods Sold | ||||
• | Total cost of products sold including: | |||
— | Freight expenses associated with moving merchandise inventories from our vendors to our distribution centers; | |||
— | Vendor allowances that are not a reimbursement of specific, incremental and identifiable costs to promote a vendor's products; and | |||
— | Cash discounts on payments to merchandise vendors; | |||
• | Cost of services provided including: | |||
— | Payroll and benefits costs for services employees; and | |||
— | Cost of replacement parts and related freight expenses; | |||
• | Physical inventory losses; | |||
• | Markdowns; | |||
• | Customer shipping and handling expenses; | |||
• | Costs associated with operating our distribution network, including payroll and benefit costs, occupancy costs, and depreciation; and | |||
• | Freight expenses associated with moving merchandise inventories from our distribution centers to our retail stores. | |||
SG&A | ||||
• | Payroll and benefit costs for retail and corporate employees; | |||
• | Occupancy and maintenance costs of retail, services and corporate facilities; | |||
• | Depreciation and amortization related to retail, services and corporate assets; | |||
• | Advertising costs; | |||
• | Vendor allowances that are a reimbursement of specific, incremental and identifiable costs to promote a vendor's products; | |||
• | Tender costs, including bank charges and costs associated with credit and debit card interchange fees; | |||
• | Charitable contributions; | |||
• | Outside and outsourced service fees; | |||
• | Long-lived asset impairment charges; and | |||
• | Other administrative costs, such as supplies, and travel and lodging. |
|
2012 | 2011 | 2010 | |||||||||
Revenue | $ | 411 | $ | 525 | $ | 451 | |||||
Restructuring charges(1) | 229 | 75 | — | ||||||||
Loss from discontinued operations before income tax benefit | (406 | ) | (260 | ) | (134 | ) | |||||
Income tax benefit | 89 | 57 | 33 | ||||||||
Gain on sale of discontinued operations | 9 | 7 | — | ||||||||
Income tax benefit on sale | — | 8 | — | ||||||||
Net loss from discontinued operations including noncontrolling interests | (308 | ) | (188 | ) | (101 | ) | |||||
Net loss from discontinued operations attributable to noncontrolling interests | 134 | 38 | 19 | ||||||||
Net loss from discontinued operations attributable to Best Buy Co., Inc. | $ | (174 | ) | $ | (150 | ) | $ | (82 | ) |
(1) | See Note 7, Restructuring Charges, for further discussion of the restructuring charges associated with discontinued operations. |
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March 3, 2012 | February 26, 2011 | ||||||
Short-term investments | |||||||
Money market fund | $ | — | $ | 2 | |||
U.S. Treasury bills | — | 20 | |||||
Total short-term investments | $ | — | $ | 22 | |||
Equity and other investments | |||||||
Debt securities (auction rate securities) | $ | 82 | $ | 110 | |||
Marketable equity securities | 3 | 146 | |||||
Other investments | 55 | 72 | |||||
Total equity and other investments | $ | 140 | $ | 328 |
Description | Nature of collateral or guarantee | March 3, 2012 | February 26, 2011 | ||||||
Student loan bonds | Student loans guaranteed 95% to 100% by the U.S. government | $ | 80 | $ | 108 | ||||
Municipal revenue bonds | 100% insured by AAA/Aaa-rated bond insurers at March 3, 2012 | 2 | 2 | ||||||
Total fair value plus accrued interest(1) | $ | 82 | $ | 110 |
(1) | The par value and weighted-average interest rates (taxable equivalent) of our ARS were $88 and $115 and 0.5% and 0.8%, respectively, at March 3, 2012, and February 26, 2011, respectively. |
March 3, 2012 | February 26, 2011 | ||||||
Common stock of TalkTalk Telecom Group PLC | $ | — | $ | 62 | |||
Common stock of Carphone Warehouse Group plc | — | 84 | |||||
Other | 3 | — | |||||
Total | $ | 3 | $ | 146 |
|
• | 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 March 3, 2012 | 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 | $ | 272 | $ | 272 | $ | — | $ | — | |||||||
Other current assets | |||||||||||||||
Money market funds (restricted assets) | 119 | 119 | — | — | |||||||||||
U.S. Treasury bills (restricted assets) | 30 | 30 | — | — | |||||||||||
Foreign currency derivative instruments | 1 | — | 1 | — | |||||||||||
Equity and other investments | |||||||||||||||
Auction rate securities | 82 | — | — | 82 | |||||||||||
Marketable equity securities | 3 | 3 | — | — | |||||||||||
Other assets | |||||||||||||||
Marketable securities that fund deferred compensation | 83 | 83 | — | — | |||||||||||
Liabilities | |||||||||||||||
Accrued liabilities | |||||||||||||||
Foreign currency derivative instruments | 2 | — | 2 | — | |||||||||||
Long-term liabilities | |||||||||||||||
Deferred compensation | 62 | 62 | — | — |
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 assets) | 63 | 63 | — | — | |||||||||||
U.S. Treasury bills (restricted assets) | 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 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 | — |
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 in other comprehensive income | (1 | ) | 1 | — | |||||||
Sales | (152 | ) | (18 | ) | (170 | ) | |||||
Balances at February 26, 2011 | $ | 108 | $ | 2 | $ | 110 | |||||
Changes in unrealized losses in other comprehensive income | (1 | ) | — | (1 | ) | ||||||
Sales | (27 | ) | — | (27 | ) | ||||||
Balances at March 3, 2012 | $ | 80 | $ | 2 | $ | 82 |
Fiscal 2012 | Fiscal 2011 | ||||||||||||||
Impairments | Remaining Net Carrying Value | Impairments | Remaining Net Carrying Value | ||||||||||||
Continuing operations | |||||||||||||||
Goodwill of Best Buy Europe reporting unit | $ | 1,207 | $ | — | $ | — | $ | — | |||||||
Property and equipment | 32 | — | 122 | 49 | |||||||||||
Total | $ | 1,239 | $ | — | $ | 122 | $ | 49 | |||||||
Discontinued operations(1) | |||||||||||||||
Property and equipment | $ | 111 | $ | — | $ | 25 | $ | 2 | |||||||
Tradename | 3 | — | 10 | 3 | |||||||||||
Total | $ | 114 | $ | — | $ | 35 | $ | 5 |
(1) | Fixed asset and tradename impairments associated with discontinued operations are recorded within Loss from discontinued operations in our Consolidated Statements of Earnings. |
|
Domestic | International | Total | |||||||||
Continuing operations | |||||||||||
Property and equipment impairments | $ | 17 | $ | 15 | $ | 32 | |||||
Termination benefits | 1 | — | 1 | ||||||||
Facility closure and other costs | 5 | — | 5 | ||||||||
Total | 23 | 15 | 38 | ||||||||
Discontinued operations | |||||||||||
Inventory write-downs | — | 11 | 11 | ||||||||
Property and equipment impairments | — | 96 | 96 | ||||||||
Termination benefits | — | 16 | 16 | ||||||||
Facility closure and other costs | — | 82 | 82 | ||||||||
Total | — | 205 | 205 | ||||||||
Total | $ | 23 | $ | 220 | $ | 243 |
Termination Benefits | Facility Closure and Other Costs | Total | |||||||||
Balance at February 26, 2011 | $ | — | $ | — | $ | — | |||||
Charges | 17 | 87 | 104 | ||||||||
Cash payments | — | — | — | ||||||||
Changes in foreign currency exchange rates | — | (2 | ) | (2 | ) | ||||||
Balance at March 3, 2012 | $ | 17 | $ | 85 | $ | 102 |
Domestic | International | Total | |||||||||||||||||||||||||||||||||
Fiscal 2012 | Fiscal 2011 | Cumulative Amount | Fiscal 2012 | Fiscal 2011 | Cumulative Amount | Fiscal 2012 | Fiscal 2011 | Cumulative Amount | |||||||||||||||||||||||||||
Continuing operations | |||||||||||||||||||||||||||||||||||
Inventory write-downs | $ | 19 | $ | 9 | $ | 28 | $ | — | $ | — | $ | — | $ | 19 | $ | 9 | $ | 28 | |||||||||||||||||
Property and equipment impairments | — | 15 | 15 | — | 107 | 107 | — | 122 | 122 | ||||||||||||||||||||||||||
Termination benefits | (3 | ) | 16 | 13 | — | — | — | (3 | ) | 16 | 13 | ||||||||||||||||||||||||
Facility closure and other costs | 4 | — | 4 | — | — | — | 4 | — | 4 | ||||||||||||||||||||||||||
Total | 20 | 40 | 60 | — | 107 | 107 | 20 | 147 | 167 | ||||||||||||||||||||||||||
Discontinued operations | |||||||||||||||||||||||||||||||||||
Inventory write-downs | — | — | — | — | 15 | 15 | — | 15 | 15 | ||||||||||||||||||||||||||
Property and equipment impairments | 15 | — | 15 | — | 25 | 25 | 15 | 25 | 40 | ||||||||||||||||||||||||||
Termination benefits | 4 | — | 4 | 7 | 12 | 19 | 11 | 12 | 23 | ||||||||||||||||||||||||||
Intangible asset impairments | 3 | 10 | 13 | — | — | — | 3 | 10 | 13 | ||||||||||||||||||||||||||
Facility closure and other costs | 3 | — | 3 | (8 | ) | 13 | 5 | (5 | ) | 13 | 8 | ||||||||||||||||||||||||
Total | 25 | 10 | 35 | (1 | ) | 65 | 64 | 24 | 75 | 99 | |||||||||||||||||||||||||
Total | $ | 45 | $ | 50 | $ | 95 | $ | (1 | ) | $ | 172 | $ | 171 | $ | 44 | $ | 222 | $ | 266 |
Termination Benefits | Facility Closure and Other Costs(1) | Total | |||||||||
Balance at February 27, 2010 | $ | — | $ | — | $ | — | |||||
Charges | 28 | 13 | 41 | ||||||||
Cash payments | — | — | — | ||||||||
Balance at February 26, 2011 | 28 | 13 | 41 | ||||||||
Charges | 11 | 6 | 17 | ||||||||
Cash payments | (33 | ) | (14 | ) | (47 | ) | |||||
Adjustments | (3 | ) | 4 | 1 | |||||||
Balance at March 3, 2012 | $ | 3 | $ | 9 | $ | 12 |
(1) | Included within the facility closure and other costs adjustments is $10 from the first quarter of fiscal 2012, representing an adjustment to exclude non-cash charges or benefits, which had no impact on our Consolidated Statements of Earnings in fiscal 2012. |
Domestic | International | Total | |||||||||
Termination benefits | $ | 25 | $ | 26 | $ | 51 | |||||
Facility closure costs | — | 1 | 1 | ||||||||
Total | $ | 25 | $ | 27 | $ | 52 |
Termination Benefits | Facility Closure Costs | Total | |||||||||
Balance at February 27, 2010 | $ | 8 | $ | 1 | $ | 9 | |||||
Charges | — | — | — | ||||||||
Cash payments | (8 | ) | (1 | ) | (9 | ) | |||||
Balance at February 26, 2011 | $ | — | $ | — | $ | — |
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March 3, 2012 | February 26, 2011 | ||||||||||||
Principal Balance | Interest Rate | Principal Balance | Interest Rate | ||||||||||
U.S. revolving credit facility – 364-day | $ | — | — | % | $ | — | — | % | |||||
U.S. revolving credit facility – five-year | — | — | % | — | — | % | |||||||
Europe revolving credit facility | 480 | 2.4 | % | — | — | % | |||||||
Europe receivables financing facility | — | — | % | 455 | 3.7 | % | |||||||
Old Europe revolving credit facility | — | — | % | 98 | 3.6 | % | |||||||
Canada revolving demand facility | — | — | % | — | — | % | |||||||
China revolving demand facilities | — | — | % | 4 | 4.8 | % | |||||||
Total short-term debt | $ | 480 | $ | 557 |
Fiscal Year | 2012 | 2011 | |||||
Maximum month-end outstanding during the year | $ | 480 | $ | 690 | |||
Average amount outstanding during the year | $ | 337 | $ | 383 | |||
Weighted-average interest rate at year-end | 2.4 | % | 3.7 | % |
March 3, 2012 | February 26, 2011 | ||||||
2013 Notes | $ | 500 | $ | 500 | |||
2016 Notes | 349 | — | |||||
2021 Notes | 648 | — | |||||
Convertible debentures | — | 402 | |||||
Financing lease obligations, due 2013 to 2026, interest rates ranging from 3.0% to 8.1% | 149 | 170 | |||||
Capital lease obligations, due 2013 to 2035, interest rates ranging from 2.1% to 8.3% | 81 | 79 | |||||
Other debt, due 2018 to 2022, interest rates ranging from 2.6% to 6.7% | 1 | 1 | |||||
Total long-term debt | $ | 1,728 | $ | 1,152 | |||
Less: current portion(1) | (43 | ) | (441 | ) | |||
Total long-term debt, less current portion | $ | 1,685 | $ | 711 |
(1) | Since holders of our convertible debentures could have required 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 February 26, 2011. |
Fiscal Year | |||
2013 | $ | 40 | |
2014 | 542 | ||
2015 | 40 | ||
2016 | 32 | ||
2017 | 369 | ||
Thereafter | 705 | ||
Total long-term debt | $ | 1,728 |
|
March 3, 2012 | February 26, 2011 | ||||||||||||||
Contract Type | Assets | Liabilities | Assets | Liabilities | |||||||||||
Cash flow hedges (foreign exchange forward contracts) | $ | — | $ | — | $ | 1 | $ | (2 | ) | ||||||
No hedge designation (foreign exchange forward contracts) | 1 | (2 | ) | 2 | (2 | ) | |||||||||
Total | $ | 1 | $ | (2 | ) | $ | 3 | $ | (4 | ) |
2012 | 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) | $ | 7 | $ | 5 | $ | 9 | $ | 12 | |||||||
Net investment hedges (foreign exchange swap contracts) | — | — | 8 | — | |||||||||||
Total | $ | 7 | $ | 5 | $ | 17 | $ | 12 |
(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 in our Consolidated Statements of Earnings. |
Gain Recognized within SG&A | |||||||
Contract Type | 2012 | 2011 | |||||
No hedge designation (foreign exchange forward contracts) | $ | 5 | $ | 13 |
Notional Amount | |||||||
Contract Type | March 3, 2012 | February 26, 2011 | |||||
Derivatives designated as cash flow hedging instruments | $ | — | $ | 264 | |||
Derivatives not designated as hedging instruments | 238 | 493 | |||||
Total | $ | 238 | $ | 757 |
|
2012 | 2011 | 2010 | |||||||||
Minimum rentals | $ | 1,192 | $ | 1,141 | $ | 1,111 | |||||
Contingent rentals | 2 | 2 | 2 | ||||||||
Total rent expense | 1,194 | 1,143 | 1,113 | ||||||||
Less: sublease income | (19 | ) | (19 | ) | (20 | ) | |||||
Net rent expense | $ | 1,175 | $ | 1,124 | $ | 1,093 |
Fiscal Year | Capital Leases | Financing Leases | Operating Leases | ||||||||
2013 | $ | 21 | $ | 32 | $ | 1,216 | |||||
2014 | 21 | 31 | 1,154 | ||||||||
2015 | 18 | 29 | 1,063 | ||||||||
2016 | 10 | 25 | 940 | ||||||||
2017 | 3 | 20 | 792 | ||||||||
Thereafter | 23 | 43 | 2,352 | ||||||||
Subtotal | 96 | 180 | $ | 7,517 | |||||||
Less: imputed interest | (15 | ) | (31 | ) | |||||||
Present value | $ | 81 | $ | 149 |
|
|
2012 | 2011 | 2010 | |||||||||
Federal income tax at the statutory rate | $ | 365 | $ | 816 | $ | 815 | |||||
State income taxes, net of federal benefit | 45 | 46 | 68 | ||||||||
Benefit from foreign operations | (96 | ) | (86 | ) | (54 | ) | |||||
Non-taxable interest income | — | — | (1 | ) | |||||||
Other | — | 3 | 7 | ||||||||
Goodwill impairment | 395 | — | — | ||||||||
Income tax expense | $ | 709 | $ | 779 | $ | 835 | |||||
Effective income tax rate | 68.0 | % | 33.4 | % | 35.9 | % |
2012 | 2011 | 2010 | |||||||||
United States | $ | 1,537 | $ | 1,739 | $ | 1,944 | |||||
Outside the United States | (494 | ) | 592 | 385 | |||||||
Earnings from continuing operations before income tax expense and equity in (loss) income of affiliates | $ | 1,043 | $ | 2,331 | $ | 2,329 |
2012 | 2011 | 2010 | |||||||||
Current: | |||||||||||
Federal | $ | 447 | $ | 735 | $ | 686 | |||||
State | 61 | 73 | 116 | ||||||||
Foreign | 173 | 105 | 63 | ||||||||
681 | 913 | 865 | |||||||||
Deferred: | |||||||||||
Federal | 94 | (113 | ) | (13 | ) | ||||||
State | 1 | (2 | ) | (11 | ) | ||||||
Foreign | (67 | ) | (19 | ) | (6 | ) | |||||
28 | (134 | ) | (30 | ) | |||||||
Income tax expense | $ | 709 | $ | 779 | $ | 835 |
March 3, 2012 | February 26, 2011 | ||||||
Accrued property expenses | $ | 146 | $ | 154 | |||
Other accrued expenses | 108 | 122 | |||||
Deferred revenue | 128 | 141 | |||||
Compensation and benefits | 103 | 86 | |||||
Stock-based compensation | 157 | 137 | |||||
Loss and credit carryforwards | 310 | 303 | |||||
Other | 121 | 125 | |||||
Total deferred tax assets | 1,073 | 1,068 | |||||
Valuation allowance | (204 | ) | (212 | ) | |||
Total deferred tax assets after valuation allowance | 869 | 856 | |||||
Property and equipment | (376 | ) | (316 | ) | |||
Convertible debt | — | (79 | ) | ||||
Goodwill and intangibles | (118 | ) | (123 | ) | |||
Inventory | (85 | ) | (25 | ) | |||
Other | (27 | ) | (22 | ) | |||
Total deferred tax liabilities | (606 | ) | (565 | ) | |||
Net deferred tax assets | $ | 263 | $ | 291 |
March 3, 2012 | February 26, 2011 | ||||||
Other current assets | $ | 226 | $ | 261 | |||
Other assets | 53 | 98 | |||||
Other long-term liabilities | (16 | ) | (68 | ) | |||
Net deferred tax assets | $ | 263 | $ | 291 |
Balance at February 27, 2010 | $ | 393 | |
Gross increases related to prior period tax positions | 36 | ||
Gross decreases related to prior period tax positions | (90 | ) | |
Gross increases related to current period tax positions | 40 | ||
Settlements with taxing authorities | — | ||
Lapse of statute of limitations | (20 | ) | |
Balance at February 26, 2011 | $ | 359 | |
Gross increases related to prior period tax positions | 69 | ||
Gross decreases related to prior period tax positions | (35 | ) | |
Gross increases related to current period tax positions | 43 | ||
Settlements with taxing authorities | (20 | ) | |
Lapse of statute of limitations | (29 | ) | |
Balance at March 3, 2012 | $ | 387 |
|
2012 | 2011 | 2010 | |||||||||
Revenue | |||||||||||
Domestic | $ | 37,615 | $ | 37,070 | $ | 37,138 | |||||
International | 13,090 | 12,677 | 12,105 | ||||||||
Total revenue | $ | 50,705 | $ | 49,747 | $ | 49,243 | |||||
Percentage of revenue, by revenue category | |||||||||||
Domestic: | |||||||||||
Consumer Electronics | 36 | % | 37 | % | 39 | % | |||||
Computing and Mobile Phones(1) | 40 | % | 37 | % | 34 | % | |||||
Entertainment | 12 | % | 14 | % | 16 | % | |||||
Appliances | 5 | % | 5 | % | 4 | % | |||||
Services | 6 | % | 6 | % | 6 | % | |||||
Other | 1 | % | 1 | % | 1 | % | |||||
Total | 100 | % | 100 | % | 100 | % | |||||
International: | |||||||||||
Consumer Electronics | 20 | % | 20 | % | 20 | % | |||||
Computing and Mobile Phones(1) | 56 | % | 55 | % | 52 | % | |||||
Entertainment | 5 | % | 6 | % | 7 | % | |||||
Appliances | 10 | % | 9 | % | 9 | % | |||||
Services | 9 | % | 10 | % | 12 | % | |||||
Other | < 1% | < 1% | < 1% | ||||||||
Total | 100 | % | 100 | % | 100 | % |
(1) | During the first quarter of fiscal 2012, the revenue category previously referred to as "Home Office" was renamed "Computing and Mobile Phones" to more clearly reflect the key products included within the revenue category. However, the composition of the products within this revenue category has not changed from the previous periods' disclosures. |
2012 | 2011 | 2010 | |||||||||
Operating income (loss) | |||||||||||
Domestic | $ | 1,855 | $ | 2,054 | $ | 2,103 | |||||
International(1) | (770 | ) | 320 | 265 | |||||||
Total operating income | 1,085 | 2,374 | 2,368 | ||||||||
Other income (expense) | |||||||||||
Gain on sale of investments | 55 | — | — | ||||||||
Investment income and other | 37 | 43 | 53 | ||||||||
Interest expense | (134 | ) | (86 | ) | (92 | ) | |||||
Earnings from continuing operations before income tax expense and equity in (loss) income of affiliates | $ | 1,043 | $ | 2,331 | $ | 2,329 | |||||
Assets | |||||||||||
Domestic | $ | 9,592 | $ | 9,610 | $ | 10,431 | |||||
International | 6,413 | 8,239 | 7,871 | ||||||||
Total assets | $ | 16,005 | $ | 17,849 | $ | 18,302 | |||||
Capital expenditures | |||||||||||
Domestic | $ | 488 | $ | 481 | $ | 385 | |||||
International | 278 | 263 | 230 | ||||||||
Total capital expenditures | $ | 766 | $ | 744 | $ | 615 | |||||
Depreciation | |||||||||||
Domestic | $ | 612 | $ | 615 | $ | 574 | |||||
International | 267 | 261 | 245 | ||||||||
Total depreciation | $ | 879 | $ | 876 | $ | 819 |
(1) | Included within our International segment's operating loss for fiscal 2012 is a $1.2 billion goodwill impairment charge. |
2012 | 2011 | 2010 | |||||||||
Net sales to customers | |||||||||||
United States | $ | 37,615 | $ | 37,070 | $ | 37,138 | |||||
Europe | 5,228 | 5,316 | 5,444 | ||||||||
Canada | 5,635 | 5,468 | 5,065 | ||||||||
China | 2,069 | 1,779 | 1,562 | ||||||||
Other | 158 | 114 | 34 | ||||||||
Total revenue | $ | 50,705 | $ | 49,747 | $ | 49,243 | |||||
Long-lived assets | |||||||||||
United States | $ | 2,507 | $ | 2,741 | $ | 2,960 | |||||
Europe | 352 | 438 | 464 | ||||||||
Canada | 432 | 474 | 462 | ||||||||
China | 161 | 147 | 152 | ||||||||
Other | 19 | 23 | 32 | ||||||||
Total long-lived assets | $ | 3,471 | $ | 3,823 | $ | 4,070 |
|
|
2012 | 2011 | 2010 | |||||||||
Payment made to Carphone Warehouse for their share of the profit share agreement buy-out (see Note 2, Profit Share Buy-Out) | $ | 1,303 | $ | — | $ | — | |||||
Revenue earned (primarily commission revenue and fees for information technology services provided to CPW and Carphone Warehouse) | — | 6 | 63 | ||||||||
SG&A incurred (primarily payroll-related costs and rent paid to CPW and Carphone Warehouse) | 20 | 8 | 6 | ||||||||
Interest expense incurred on credit facility with CPW and Carphone Warehouse as lender | 1 | 1 | 4 | ||||||||
Accounts payable to CPW and Carphone Warehouse at the end of the fiscal year | — | — | 4 | ||||||||
Accounts receivable from CPW and Carphone Warehouse at the end of the fiscal year | 1 | 2 | 31 | ||||||||
Balance outstanding on credit facility from CPW and Carphone Warehouse at the end of the fiscal year (see Note 8, Debt) | — | 98 | 206 |
|
|
Quarter | Fiscal Year | ||||||||||||||||||
1st | 2nd | 3rd | 4th | ||||||||||||||||
Fiscal 2012 | |||||||||||||||||||
Revenue | $ | 10,812 | $ | 11,259 | $ | 12,004 | $ | 16,630 | $ | 50,705 | |||||||||
Comparable store sales % change(1) | (1.8 | )% | (2.9 | )% | 0.3 | % | (2.4 | )% | (1.7 | )% | |||||||||
Gross profit | $ | 2,746 | $ | 2,848 | $ | 2,922 | $ | 4,057 | $ | 12,573 | |||||||||
Operating income(2) | 330 | 335 | 351 | 69 | 1,085 | ||||||||||||||
Net earnings (loss) from continuing operations | 199 | 197 | 258 | (324 | ) | 330 | |||||||||||||
Loss from discontinued operations, net of tax | (36 | ) | (37 | ) | (127 | ) | (108 | ) | (308 | ) | |||||||||
Net earnings (loss) including noncontrolling interests | 163 | 160 | 131 | (432 | ) | 22 | |||||||||||||
Net earnings (loss) attributable to Best Buy Co., Inc.(3) | 136 | 177 | 154 | (1,698 | ) | (1,231 | ) | ||||||||||||
Diluted earnings (loss) per share(4) | |||||||||||||||||||
Continuing operations | 0.41 | 0.52 | 0.62 | (4.73 | ) | (2.89 | ) | ||||||||||||
Discontinued operations | (0.06 | ) | (0.05 | ) | (0.20 | ) | (0.16 | ) | (0.47 | ) | |||||||||
Diluted earnings (loss) per share | 0.35 | 0.47 | 0.42 | (4.89 | ) | (3.36 | ) |
Quarter | Fiscal Year | ||||||||||||||||||
1st | 2nd | 3rd | 4th | ||||||||||||||||
Fiscal 2011 | |||||||||||||||||||
Revenue | $ | 10,674 | $ | 11,216 | $ | 11,774 | $ | 16,083 | $ | 49,747 | |||||||||
Comparable store sales % change(1) | 2.9 | % | (0.1 | )% | (3.4 | )% | (4.7 | )% | (1.8 | )% | |||||||||
Gross profit | $ | 2,762 | $ | 2,888 | $ | 2,962 | $ | 3,929 | $ | 12,541 | |||||||||
Operating income(5) | 348 | 456 | 433 | 1,137 | 2,374 | ||||||||||||||
Net earnings from continuing operations | 208 | 274 | 280 | 792 | 1,554 | ||||||||||||||
Loss from discontinued operations, net of tax | (27 | ) | (17 | ) | (40 | ) | (104 | ) | (188 | ) | |||||||||
Net earnings including noncontrolling interests | 181 | 257 | 240 | 688 | 1,366 | ||||||||||||||
Net earnings attributable to Best Buy Co., Inc. | 155 | 254 | 217 | 651 | 1,277 | ||||||||||||||
Diluted earnings (loss) per share(4) | |||||||||||||||||||
Continuing operations | 0.41 | 0.62 | 0.61 | 1.84 | 3.44 | ||||||||||||||
Discontinued operations | (0.05 | ) | (0.02 | ) | (0.07 | ) | (0.22 | ) | (0.36 | ) | |||||||||
Diluted earnings per share | 0.36 | 0.60 | 0.54 | 1.62 | 3.08 |
(1) | Comprised of revenue from stores operating for at least 14 full months as well as revenue related to call centers, Web sites and our other comparable sales channels. Revenue we earn from sales of merchandise to wholesalers or dealers is not included within our comparable store sales calculation. Relocated, remodeled and expanded stores are excluded from our comparable store sales calculation until at least 14 full months after reopening. Acquired stores are included in our comparable store sales calculation beginning with the first full quarter following the first anniversary of the date of the acquisition. The portion of our calculation of the comparable store sales percentage change attributable to our International segment excludes the effect of fluctuations in foreign currency exchange rates. The method of calculating comparable store sales varies across the retail industry. As a result, our method of calculating comparable store sales may not be the same as other retailers' methods. The calculation of comparable store sales excludes the impact of the extra week of revenue in the fourth quarter of fiscal 2012, as well as revenue from discontinued operations for all periods presented. |
(2) | Includes $1, $22 and $35 of restructuring charges recorded in the fiscal second, third and fourth quarters, respectively, related to measures we took to restructure our businesses, as well as a $1,207 goodwill impairment charge recorded in the fourth quarter related to our Best Buy Europe reporting unit. |
(3) | Includes a $1,303 payment related to the Mobile buy-out recorded in the fourth quarter of fiscal 2012. |
(4) | The sum of our quarterly diluted earnings per share does not equal our annual diluted earnings per share due to the impact of the timing of the repurchases of common stock and stock option exercises on quarterly and annual weighted-average shares outstanding. |
(5) | Includes $147 of restructuring charges recorded in the fiscal fourth quarter related to measures we took to restructure our businesses. |
|
Balance at Beginning of Period | Charged to Expenses or Other Accounts | Other(1) | Balance at End of Period | ||||||||||||
Year ended March 3, 2012 | |||||||||||||||
Allowance for doubtful accounts | $ | 107 | $ | 8 | $ | (43 | ) | $ | 72 | ||||||
Year ended February 26, 2011 | |||||||||||||||
Allowance for doubtful accounts | $ | 101 | $ | 46 | $ | (40 | ) | $ | 107 | ||||||
Year ended February 27, 2010 | |||||||||||||||
Allowance for doubtful accounts | $ | 97 | $ | 48 | $ | (44 | ) | $ | 101 |
(1) | Includes bad debt write-offs and recoveries, acquisitions and the effect of foreign currency fluctuations. |
|
Cost of Goods Sold | ||||
• | Total cost of products sold including: | |||
— | Freight expenses associated with moving merchandise inventories from our vendors to our distribution centers; | |||
— | Vendor allowances that are not a reimbursement of specific, incremental and identifiable costs to promote a vendor's products; and | |||
— | Cash discounts on payments to merchandise vendors; | |||
• | Cost of services provided including: | |||
— | Payroll and benefits costs for services employees; and | |||
— | Cost of replacement parts and related freight expenses; | |||
• | Physical inventory losses; | |||
• | Markdowns; | |||
• | Customer shipping and handling expenses; | |||
• | Costs associated with operating our distribution network, including payroll and benefit costs, occupancy costs, and depreciation; and | |||
• | Freight expenses associated with moving merchandise inventories from our distribution centers to our retail stores. | |||
SG&A | ||||
• | Payroll and benefit costs for retail and corporate employees; | |||
• | Occupancy and maintenance costs of retail, services and corporate facilities; | |||
• | Depreciation and amortization related to retail, services and corporate assets; | |||
• | Advertising costs; | |||
• | Vendor allowances that are a reimbursement of specific, incremental and identifiable costs to promote a vendor's products; | |||
• | Tender costs, including bank charges and costs associated with credit and debit card interchange fees; | |||
• | Charitable contributions; | |||
• | Outside and outsourced service fees; | |||
• | Long-lived asset impairment charges; and | |||
• | Other administrative costs, such as supplies, and travel and lodging. |
Cost of Goods Sold | ||||
• | Total cost of products sold including: | |||
— | Freight expenses associated with moving merchandise inventories from our vendors to our distribution centers; | |||
— | Vendor allowances that are not a reimbursement of specific, incremental and identifiable costs to promote a vendor's products; and | |||
— | Cash discounts on payments to merchandise vendors; | |||
• | Cost of services provided including: | |||
— | Payroll and benefits costs for services employees; and | |||
— | Cost of replacement parts and related freight expenses; | |||
• | Physical inventory losses; | |||
• | Markdowns; | |||
• | Customer shipping and handling expenses; | |||
• | Costs associated with operating our distribution network, including payroll and benefit costs, occupancy costs, and depreciation; and | |||
• | Freight expenses associated with moving merchandise inventories from our distribution centers to our retail stores. | |||
SG&A | ||||
• | Payroll and benefit costs for retail and corporate employees; | |||
• | Occupancy and maintenance costs of retail, services and corporate facilities; | |||
• | Depreciation and amortization related to retail, services and corporate assets; | |||
• | Advertising costs; | |||
• | Vendor allowances that are a reimbursement of specific, incremental and identifiable costs to promote a vendor's products; | |||
• | Tender costs, including bank charges and costs associated with credit and debit card interchange fees; | |||
• | Charitable contributions; | |||
• | Outside and outsourced service fees; | |||
• | Long-lived asset impairment charges; and | |||
• | Other administrative costs, such as supplies, and travel and lodging. |
Fiscal 2012 | Fiscal 2011 | ||||||||||||||
Impairments | Remaining Net Carrying Value | Impairments | Remaining Net Carrying Value | ||||||||||||
Continuing operations | |||||||||||||||
Goodwill of Best Buy Europe reporting unit | $ | 1,207 | $ | — | $ | — | $ | — | |||||||
Property and equipment | 32 | — | 122 | 49 | |||||||||||
Total | $ | 1,239 | $ | — | $ | 122 | $ | 49 | |||||||
Discontinued operations(1) | |||||||||||||||
Property and equipment | $ | 111 | $ | — | $ | 25 | $ | 2 | |||||||
Tradename | 3 | — | 10 | 3 | |||||||||||
Total | $ | 114 | $ | — | $ | 35 | $ | 5 |
(1) | Fixed asset and tradename impairments associated with discontinued operations are recorded within Loss from discontinued operations in our Consolidated Statements of Earnings. |
|
Asset | Life (in years) |
Buildings | 25-50 |
Leasehold improvements | 3-25 |
Fixtures and equipment | 3-20 |
Property under capital lease | 2-20 |
Goodwill | Indefinite-Lived Tradenames | ||||||||||||||||||||||
Domestic | International | Total | Domestic | International | Total | ||||||||||||||||||
Balances at February 28, 2009 | $ | 434 | $ | 1,769 | $ | 2,203 | $ | 32 | $ | 72 | $ | 104 | |||||||||||
Purchase accounting adjustments(1) | — | 48 | 48 | — | — | — | |||||||||||||||||
Changes in foreign currency exchange rates | — | 201 | 201 | — | 8 | 8 | |||||||||||||||||
Balances at February 27, 2010 | 434 | 2,018 | 2,452 | 32 | 80 | 112 | |||||||||||||||||
Acquisitions | — | 5 | 5 | — | — | — | |||||||||||||||||
Impairments(2) | — | — | — | (10 | ) | — | (10 | ) | |||||||||||||||
Sale of business(3) | (12 | ) | — | (12 | ) | (1 | ) | — | (1 | ) | |||||||||||||
Changes in foreign currency exchange rates | — | 9 | 9 | — | 4 | 4 | |||||||||||||||||
Balances at February 26, 2011 | 422 | 2,032 | 2,454 | 21 | 84 | 105 | |||||||||||||||||
Acquisitions(4) | 94 | — | 94 | 1 | — | 1 | |||||||||||||||||
Impairments | — | (1,207 | ) | (1,207 | ) | — | — | — | |||||||||||||||
Sale of business | — | (7 | ) | (7 | ) | (3 | ) | (2 | ) | (5 | ) | ||||||||||||
Changes in foreign currency exchange rates | — | 1 | 1 | — | 1 | 1 | |||||||||||||||||
Other(5) | — | — | — | — | 28 | 28 | |||||||||||||||||
Balances at March 3, 2012 | $ | 516 | $ | 819 | $ | 1,335 | $ | 19 | $ | 111 | $ | 130 |
(1) | The adjustment in fiscal 2010 related to the finalization of the purchase price allocations from our acquisitions of Best Buy Europe and Five Star. |
(2) | As part of our fiscal 2011 restructuring activities, we recorded an impairment charge related to certain indefinite-lived tradenames in our Domestic segment. See Note 7, Restructuring Charges, for further information. |
(3) | As a result of the sale of our Speakeasy business in the second quarter of fiscal 2011, we eliminated the carrying value of the related goodwill and indefinite-lived tradenames as of the date of sale. |
(4) | Represents goodwill acquired, primarily as a result of the mindSHIFT acquisition. See Note 4, Acquisitions, for further information. |
(5) | 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. |
March 3, 2012 | February 26, 2011 | ||||||||||||||
Gross Carrying Amount | Cumulative Impairment | Gross Carrying Amount | Cumulative Impairment | ||||||||||||
Goodwill | $ | 2,596 | $ | (1,261 | ) | $ | 2,519 | $ | (65 | ) |
March 3, 2012 | February 26, 2011 | ||||||||||||||
Tradenames | Customer Relationships | Tradenames | Customer Relationships | ||||||||||||
Indefinite-lived | $ | 130 | $ | — | $ | 105 | $ | — | |||||||
Definite-lived | — | 229 | 28 | 203 | |||||||||||
Total | $ | 130 | $ | 229 | $ | 133 | $ | 203 |
March 3, 2012 | February 26, 2011 | ||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||
Tradenames | $ | — | $ | — | $ | 73 | $ | (45 | ) | ||||||
Customer relationships | 453 | (224 | ) | 383 | (180 | ) | |||||||||
Total | $ | 453 | $ | (224 | ) | $ | 456 | $ | (225 | ) |
Fiscal Year | |||
2013 | $ | 40 | |
2014 | 40 | ||
2015 | 40 | ||
2016 | 40 | ||
2017 | 22 | ||
Thereafter | 47 |
March 3, 2012 | February 26, 2011 | ||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||
Lease rights | $ | 130 | $ | (73 | ) | $ | 131 | $ | (57 | ) |
March 3, 2012 | February 26, 2011 | ||||||
Accrued liabilities | $ | 77 | $ | 81 | |||
Long-term liabilities | 47 | 49 | |||||
Total | $ | 124 | $ | 130 |
2012 | 2011 | 2010 | |||||||||
Gift card breakage income | $ | 54 | $ | 51 | $ | 41 |
Cost of Goods Sold | ||||
• | Total cost of products sold including: | |||
— | Freight expenses associated with moving merchandise inventories from our vendors to our distribution centers; | |||
— | Vendor allowances that are not a reimbursement of specific, incremental and identifiable costs to promote a vendor's products; and | |||
— | Cash discounts on payments to merchandise vendors; | |||
• | Cost of services provided including: | |||
— | Payroll and benefits costs for services employees; and | |||
— | Cost of replacement parts and related freight expenses; | |||
• | Physical inventory losses; | |||
• | Markdowns; | |||
• | Customer shipping and handling expenses; | |||
• | Costs associated with operating our distribution network, including payroll and benefit costs, occupancy costs, and depreciation; and | |||
• | Freight expenses associated with moving merchandise inventories from our distribution centers to our retail stores. | |||
SG&A | ||||
• | Payroll and benefit costs for retail and corporate employees; | |||
• | Occupancy and maintenance costs of retail, services and corporate facilities; | |||
• | Depreciation and amortization related to retail, services and corporate assets; | |||
• | Advertising costs; | |||
• | Vendor allowances that are a reimbursement of specific, incremental and identifiable costs to promote a vendor's products; | |||
• | Tender costs, including bank charges and costs associated with credit and debit card interchange fees; | |||
• | Charitable contributions; | |||
• | Outside and outsourced service fees; | |||
• | Long-lived asset impairment charges; and | |||
• | Other administrative costs, such as supplies, and travel and lodging. |
|
2012 | 2011 | 2010 | |||||||||
Revenue | $ | 411 | $ | 525 | $ | 451 | |||||
Restructuring charges(1) | 229 | 75 | — | ||||||||
Loss from discontinued operations before income tax benefit | (406 | ) | (260 | ) | (134 | ) | |||||
Income tax benefit | 89 | 57 | 33 | ||||||||
Gain on sale of discontinued operations | 9 | 7 | — | ||||||||
Income tax benefit on sale | — | 8 | — | ||||||||
Net loss from discontinued operations including noncontrolling interests | (308 | ) | (188 | ) | (101 | ) | |||||
Net loss from discontinued operations attributable to noncontrolling interests | 134 | 38 | 19 | ||||||||
Net loss from discontinued operations attributable to Best Buy Co., Inc. | $ | (174 | ) | $ | (150 | ) | $ | (82 | ) |
(1) | See Note 7, Restructuring Charges, for further discussion of the restructuring charges associated with discontinued operations. |
|
March 3, 2012 | February 26, 2011 | ||||||
Short-term investments | |||||||
Money market fund | $ | — | $ | 2 | |||
U.S. Treasury bills | — | 20 | |||||
Total short-term investments | $ | — | $ | 22 | |||
Equity and other investments | |||||||
Debt securities (auction rate securities) | $ | 82 | $ | 110 | |||
Marketable equity securities | 3 | 146 | |||||
Other investments | 55 | 72 | |||||
Total equity and other investments | $ | 140 | $ | 328 |
Description | Nature of collateral or guarantee | March 3, 2012 | February 26, 2011 | ||||||
Student loan bonds | Student loans guaranteed 95% to 100% by the U.S. government | $ | 80 | $ | 108 | ||||
Municipal revenue bonds | 100% insured by AAA/Aaa-rated bond insurers at March 3, 2012 | 2 | 2 | ||||||
Total fair value plus accrued interest(1) | $ | 82 | $ | 110 |
(1) | The par value and weighted-average interest rates (taxable equivalent) of our ARS were $88 and $115 and 0.5% and 0.8%, respectively, at March 3, 2012, and February 26, 2011, respectively. |
March 3, 2012 | February 26, 2011 | ||||||
Common stock of TalkTalk Telecom Group PLC | $ | — | $ | 62 | |||
Common stock of Carphone Warehouse Group plc | — | 84 | |||||
Other | 3 | — | |||||
Total | $ | 3 | $ | 146 |
|
Fair Value Measurements Using Inputs Considered as | |||||||||||||||
Fair Value at March 3, 2012 | 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 | $ | 272 | $ | 272 | $ | — | $ | — | |||||||
Other current assets | |||||||||||||||
Money market funds (restricted assets) | 119 | 119 | — | — | |||||||||||
U.S. Treasury bills (restricted assets) | 30 | 30 | — | — | |||||||||||
Foreign currency derivative instruments | 1 | — | 1 | — | |||||||||||
Equity and other investments | |||||||||||||||
Auction rate securities | 82 | — | — | 82 | |||||||||||
Marketable equity securities | 3 | 3 | — | — | |||||||||||
Other assets | |||||||||||||||
Marketable securities that fund deferred compensation | 83 | 83 | — | — | |||||||||||
Liabilities | |||||||||||||||
Accrued liabilities | |||||||||||||||
Foreign currency derivative instruments | 2 | — | 2 | — | |||||||||||
Long-term liabilities | |||||||||||||||
Deferred compensation | 62 | 62 | — | — |
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 assets) | 63 | 63 | — | — | |||||||||||
U.S. Treasury bills (restricted assets) | 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 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 | — |
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 in other comprehensive income | (1 | ) | 1 | — | |||||||
Sales | (152 | ) | (18 | ) | (170 | ) | |||||
Balances at February 26, 2011 | $ | 108 | $ | 2 | $ | 110 | |||||
Changes in unrealized losses in other comprehensive income | (1 | ) | — | (1 | ) | ||||||
Sales | (27 | ) | — | (27 | ) | ||||||
Balances at March 3, 2012 | $ | 80 | $ | 2 | $ | 82 |
Fiscal 2012 | Fiscal 2011 | ||||||||||||||
Impairments | Remaining Net Carrying Value | Impairments | Remaining Net Carrying Value | ||||||||||||
Continuing operations | |||||||||||||||
Goodwill of Best Buy Europe reporting unit | $ | 1,207 | $ | — | $ | — | $ | — | |||||||
Property and equipment | 32 | — | 122 | 49 | |||||||||||
Total | $ | 1,239 | $ | — | $ | 122 | $ | 49 | |||||||
Discontinued operations(1) | |||||||||||||||
Property and equipment | $ | 111 | $ | — | $ | 25 | $ | 2 | |||||||
Tradename | 3 | — | 10 | 3 | |||||||||||
Total | $ | 114 | $ | — | $ | 35 | $ | 5 |
(1) | Fixed asset and tradename impairments associated with discontinued operations are recorded within Loss from discontinued operations in our Consolidated Statements of Earnings. |
|
Domestic | International | Total | |||||||||
Termination benefits | $ | 25 | $ | 26 | $ | 51 | |||||
Facility closure costs | — | 1 | 1 | ||||||||
Total | $ | 25 | $ | 27 | $ | 52 |
Domestic | International | Total | |||||||||||||||||||||||||||||||||
Fiscal 2012 | Fiscal 2011 | Cumulative Amount | Fiscal 2012 | Fiscal 2011 | Cumulative Amount | Fiscal 2012 | Fiscal 2011 | Cumulative Amount | |||||||||||||||||||||||||||
Continuing operations | |||||||||||||||||||||||||||||||||||
Inventory write-downs | $ | 19 | $ | 9 | $ | 28 | $ | — | $ | — | $ | — | $ | 19 | $ | 9 | $ | 28 | |||||||||||||||||
Property and equipment impairments | — | 15 | 15 | — | 107 | 107 | — | 122 | 122 | ||||||||||||||||||||||||||
Termination benefits | (3 | ) | 16 | 13 | — | — | — | (3 | ) | 16 | 13 | ||||||||||||||||||||||||
Facility closure and other costs | 4 | — | 4 | — | — | — | 4 | — | 4 | ||||||||||||||||||||||||||
Total | 20 | 40 | 60 | — | 107 | 107 | 20 | 147 | 167 | ||||||||||||||||||||||||||
Discontinued operations | |||||||||||||||||||||||||||||||||||
Inventory write-downs | — | — | — | — | 15 | 15 | — | 15 | 15 | ||||||||||||||||||||||||||
Property and equipment impairments | 15 | — | 15 | — | 25 | 25 | 15 | 25 | 40 | ||||||||||||||||||||||||||
Termination benefits | 4 | — | 4 | 7 | 12 | 19 | 11 | 12 | 23 | ||||||||||||||||||||||||||
Intangible asset impairments | 3 | 10 | 13 | — | — | — | 3 | 10 | 13 | ||||||||||||||||||||||||||
Facility closure and other costs | 3 | — | 3 | (8 | ) | 13 | 5 | (5 | ) | 13 | 8 | ||||||||||||||||||||||||
Total | 25 | 10 | 35 | (1 | ) | 65 | 64 | 24 | 75 | 99 | |||||||||||||||||||||||||
Total | $ | 45 | $ | 50 | $ | 95 | $ | (1 | ) | $ | 172 | $ | 171 | $ | 44 | $ | 222 | $ | 266 |
Domestic | International | Total | |||||||||
Continuing operations | |||||||||||
Property and equipment impairments | $ | 17 | $ | 15 | $ | 32 | |||||
Termination benefits | 1 | — | 1 | ||||||||
Facility closure and other costs | 5 | — | 5 | ||||||||
Total | 23 | 15 | 38 | ||||||||
Discontinued operations | |||||||||||
Inventory write-downs | — | 11 | 11 | ||||||||
Property and equipment impairments | — | 96 | 96 | ||||||||
Termination benefits | — | 16 | 16 | ||||||||
Facility closure and other costs | — | 82 | 82 | ||||||||
Total | — | 205 | 205 | ||||||||
Total | $ | 23 | $ | 220 | $ | 243 |
Termination Benefits | Facility Closure and Other Costs(1) | Total | |||||||||
Balance at February 27, 2010 | $ | — | $ | — | $ | — | |||||
Charges | 28 | 13 | 41 | ||||||||
Cash payments | — | — | — | ||||||||
Balance at February 26, 2011 | 28 | 13 | 41 | ||||||||
Charges | 11 | 6 | 17 | ||||||||
Cash payments | (33 | ) | (14 | ) | (47 | ) | |||||
Adjustments | (3 | ) | 4 | 1 | |||||||
Balance at March 3, 2012 | $ | 3 | $ | 9 | $ | 12 |
(1) | Included within the facility closure and other costs adjustments is $10 from the first quarter of fiscal 2012, representing an adjustment to exclude non-cash charges or benefits, which had no impact on our Consolidated Statements of Earnings in fiscal 2012. |
Termination Benefits | Facility Closure Costs | Total | |||||||||
Balance at February 27, 2010 | $ | 8 | $ | 1 | $ | 9 | |||||
Charges | — | — | — | ||||||||
Cash payments | (8 | ) | (1 | ) | (9 | ) | |||||
Balance at February 26, 2011 | $ | — | $ | — | $ | — |
Termination Benefits | Facility Closure and Other Costs | Total | |||||||||
Balance at February 26, 2011 | $ | — | $ | — | $ | — | |||||
Charges | 17 | 87 | 104 | ||||||||
Cash payments | — | — | — | ||||||||
Changes in foreign currency exchange rates | — | (2 | ) | (2 | ) | ||||||
Balance at March 3, 2012 | $ | 17 | $ | 85 | $ | 102 |
|
March 3, 2012 | February 26, 2011 | ||||||||||||
Principal Balance | Interest Rate | Principal Balance | Interest Rate | ||||||||||
U.S. revolving credit facility – 364-day | $ | — | — | % | $ | — | — | % | |||||
U.S. revolving credit facility – five-year | — | — | % | — | — | % | |||||||
Europe revolving credit facility | 480 | 2.4 | % | — | — | % | |||||||
Europe receivables financing facility | — | — | % | 455 | 3.7 | % | |||||||
Old Europe revolving credit facility | — | — | % | 98 | 3.6 | % | |||||||
Canada revolving demand facility | — | — | % | — | — | % | |||||||
China revolving demand facilities | — | — | % | 4 | 4.8 | % | |||||||
Total short-term debt | $ | 480 | $ | 557 |
Fiscal Year | 2012 | 2011 | |||||
Maximum month-end outstanding during the year | $ | 480 | $ | 690 | |||
Average amount outstanding during the year | $ | 337 | $ | 383 | |||
Weighted-average interest rate at year-end | 2.4 | % | 3.7 | % |
March 3, 2012 | February 26, 2011 | ||||||
2013 Notes | $ | 500 | $ | 500 | |||
2016 Notes | 349 | — | |||||
2021 Notes | 648 | — | |||||
Convertible debentures | — | 402 | |||||
Financing lease obligations, due 2013 to 2026, interest rates ranging from 3.0% to 8.1% | 149 | 170 | |||||
Capital lease obligations, due 2013 to 2035, interest rates ranging from 2.1% to 8.3% | 81 | 79 | |||||
Other debt, due 2018 to 2022, interest rates ranging from 2.6% to 6.7% | 1 | 1 | |||||
Total long-term debt | $ | 1,728 | $ | 1,152 | |||
Less: current portion(1) | (43 | ) | (441 | ) | |||
Total long-term debt, less current portion | $ | 1,685 | $ | 711 |
(1) | Since holders of our convertible debentures could have required 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 February 26, 2011. |
Fiscal Year | |||
2013 | $ | 40 | |
2014 | 542 | ||
2015 | 40 | ||
2016 | 32 | ||
2017 | 369 | ||
Thereafter | 705 | ||
Total long-term debt | $ | 1,728 |
|
March 3, 2012 | February 26, 2011 | ||||||||||||||
Contract Type | Assets | Liabilities | Assets | Liabilities | |||||||||||
Cash flow hedges (foreign exchange forward contracts) | $ | — | $ | — | $ | 1 | $ | (2 | ) | ||||||
No hedge designation (foreign exchange forward contracts) | 1 | (2 | ) | 2 | (2 | ) | |||||||||
Total | $ | 1 | $ | (2 | ) | $ | 3 | $ | (4 | ) |
2012 | 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) | $ | 7 | $ | 5 | $ | 9 | $ | 12 | |||||||
Net investment hedges (foreign exchange swap contracts) | — | — | 8 | — | |||||||||||
Total | $ | 7 | $ | 5 | $ | 17 | $ | 12 |
(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 in our Consolidated Statements of Earnings. |
Gain Recognized within SG&A | |||||||
Contract Type | 2012 | 2011 | |||||
No hedge designation (foreign exchange forward contracts) | $ | 5 | $ | 13 |
Notional Amount | |||||||
Contract Type | March 3, 2012 | February 26, 2011 | |||||
Derivatives designated as cash flow hedging instruments | $ | — | $ | 264 | |||
Derivatives not designated as hedging instruments | 238 | 493 | |||||
Total | $ | 238 | $ | 757 |
|
2012 | 2011 | 2010 | |||||||||
Minimum rentals | $ | 1,192 | $ | 1,141 | $ | 1,111 | |||||
Contingent rentals | 2 | 2 | 2 | ||||||||
Total rent expense | 1,194 | 1,143 | 1,113 | ||||||||
Less: sublease income | (19 | ) | (19 | ) | (20 | ) | |||||
Net rent expense | $ | 1,175 | $ | 1,124 | $ | 1,093 |
Fiscal Year | Capital Leases | Financing Leases | Operating Leases | ||||||||
2013 | $ | 21 | $ | 32 | $ | 1,216 | |||||
2014 | 21 | 31 | 1,154 | ||||||||
2015 | 18 | 29 | 1,063 | ||||||||
2016 | 10 | 25 | 940 | ||||||||
2017 | 3 | 20 | 792 | ||||||||
Thereafter | 23 | 43 | 2,352 | ||||||||
Subtotal | 96 | 180 | $ | 7,517 | |||||||
Less: imputed interest | (15 | ) | (31 | ) | |||||||
Present value | $ | 81 | $ | 149 |
|
2012 | 2011 | 2010 | |||||||||
Federal income tax at the statutory rate | $ | 365 | $ | 816 | $ | 815 | |||||
State income taxes, net of federal benefit | 45 | 46 | 68 | ||||||||
Benefit from foreign operations | (96 | ) | (86 | ) | (54 | ) | |||||
Non-taxable interest income | — | — | (1 | ) | |||||||
Other | — | 3 | 7 | ||||||||
Goodwill impairment | 395 | — | — | ||||||||
Income tax expense | $ | 709 | $ | 779 | $ | 835 | |||||
Effective income tax rate | 68.0 | % | 33.4 | % | 35.9 | % |
2012 | 2011 | 2010 | |||||||||
United States | $ | 1,537 | $ | 1,739 | $ | 1,944 | |||||
Outside the United States | (494 | ) | 592 | 385 | |||||||
Earnings from continuing operations before income tax expense and equity in (loss) income of affiliates | $ | 1,043 | $ | 2,331 | $ | 2,329 |
2012 | 2011 | 2010 | |||||||||
Current: | |||||||||||
Federal | $ | 447 | $ | 735 | $ | 686 | |||||
State | 61 | 73 | 116 | ||||||||
Foreign | 173 | 105 | 63 | ||||||||
681 | 913 | 865 | |||||||||
Deferred: | |||||||||||
Federal | 94 | (113 | ) | (13 | ) | ||||||
State | 1 | (2 | ) | (11 | ) | ||||||
Foreign | (67 | ) | (19 | ) | (6 | ) | |||||
28 | (134 | ) | (30 | ) | |||||||
Income tax expense | $ | 709 | $ | 779 | $ | 835 |
March 3, 2012 | February 26, 2011 | ||||||
Accrued property expenses | $ | 146 | $ | 154 | |||
Other accrued expenses | 108 | 122 | |||||
Deferred revenue | 128 | 141 | |||||
Compensation and benefits | 103 | 86 | |||||
Stock-based compensation | 157 | 137 | |||||
Loss and credit carryforwards | 310 | 303 | |||||
Other | 121 | 125 | |||||
Total deferred tax assets | 1,073 | 1,068 | |||||
Valuation allowance | (204 | ) | (212 | ) | |||
Total deferred tax assets after valuation allowance | 869 | 856 | |||||
Property and equipment | (376 | ) | (316 | ) | |||
Convertible debt | — | (79 | ) | ||||
Goodwill and intangibles | (118 | ) | (123 | ) | |||
Inventory | (85 | ) | (25 | ) | |||
Other | (27 | ) | (22 | ) | |||
Total deferred tax liabilities | (606 | ) | (565 | ) | |||
Net deferred tax assets | $ | 263 | $ | 291 |
March 3, 2012 | February 26, 2011 | ||||||
Other current assets | $ | 226 | $ | 261 | |||
Other assets | 53 | 98 | |||||
Other long-term liabilities | (16 | ) | (68 | ) | |||
Net deferred tax assets | $ | 263 | $ | 291 |
Balance at February 27, 2010 | $ | 393 | |
Gross increases related to prior period tax positions | 36 | ||
Gross decreases related to prior period tax positions | (90 | ) | |
Gross increases related to current period tax positions | 40 | ||
Settlements with taxing authorities | — | ||
Lapse of statute of limitations | (20 | ) | |
Balance at February 26, 2011 | $ | 359 | |
Gross increases related to prior period tax positions | 69 | ||
Gross decreases related to prior period tax positions | (35 | ) | |
Gross increases related to current period tax positions | 43 | ||
Settlements with taxing authorities | (20 | ) | |
Lapse of statute of limitations | (29 | ) | |
Balance at March 3, 2012 | $ | 387 |
|
2012 | 2011 | 2010 | |||||||||
Revenue | |||||||||||
Domestic | $ | 37,615 | $ | 37,070 | $ | 37,138 | |||||
International | 13,090 | 12,677 | 12,105 | ||||||||
Total revenue | $ | 50,705 | $ | 49,747 | $ | 49,243 | |||||
Percentage of revenue, by revenue category | |||||||||||
Domestic: | |||||||||||
Consumer Electronics | 36 | % | 37 | % | 39 | % | |||||
Computing and Mobile Phones(1) | 40 | % | 37 | % | 34 | % | |||||
Entertainment | 12 | % | 14 | % | 16 | % | |||||
Appliances | 5 | % | 5 | % | 4 | % | |||||
Services | 6 | % | 6 | % | 6 | % | |||||
Other | 1 | % | 1 | % | 1 | % | |||||
Total | 100 | % | 100 | % | 100 | % | |||||
International: | |||||||||||
Consumer Electronics | 20 | % | 20 | % | 20 | % | |||||
Computing and Mobile Phones(1) | 56 | % | 55 | % | 52 | % | |||||
Entertainment | 5 | % | 6 | % | 7 | % | |||||
Appliances | 10 | % | 9 | % | 9 | % | |||||
Services | 9 | % | 10 | % | 12 | % | |||||
Other | < 1% | < 1% | < 1% | ||||||||
Total | 100 | % | 100 | % | 100 | % |
(1) | During the first quarter of fiscal 2012, the revenue category previously referred to as "Home Office" was renamed "Computing and Mobile Phones" to more clearly reflect the key products included within the revenue category. However, the composition of the products within this revenue category has not changed from the previous periods' disclosures. |
2012 | 2011 | 2010 | |||||||||
Operating income (loss) | |||||||||||
Domestic | $ | 1,855 | $ | 2,054 | $ | 2,103 | |||||
International(1) | (770 | ) | 320 | 265 | |||||||
Total operating income | 1,085 | 2,374 | 2,368 | ||||||||
Other income (expense) | |||||||||||
Gain on sale of investments | 55 | — | — | ||||||||
Investment income and other | 37 | 43 | 53 | ||||||||
Interest expense | (134 | ) | (86 | ) | (92 | ) | |||||
Earnings from continuing operations before income tax expense and equity in (loss) income of affiliates | $ | 1,043 | $ | 2,331 | $ | 2,329 | |||||
Assets | |||||||||||
Domestic | $ | 9,592 | $ | 9,610 | $ | 10,431 | |||||
International | 6,413 | 8,239 | 7,871 | ||||||||
Total assets | $ | 16,005 | $ | 17,849 | $ | 18,302 | |||||
Capital expenditures | |||||||||||
Domestic | $ | 488 | $ | 481 | $ | 385 | |||||
International | 278 | 263 | 230 | ||||||||
Total capital expenditures | $ | 766 | $ | 744 | $ | 615 | |||||
Depreciation | |||||||||||
Domestic | $ | 612 | $ | 615 | $ | 574 | |||||
International | 267 | 261 | 245 | ||||||||
Total depreciation | $ | 879 | $ | 876 | $ | 819 |
(1) | Included within our International segment's operating loss for fiscal 2012 is a $1.2 billion goodwill impairment charge. |
2012 | 2011 | 2010 | |||||||||
Net sales to customers | |||||||||||
United States | $ | 37,615 | $ | 37,070 | $ | 37,138 | |||||
Europe | 5,228 | 5,316 | 5,444 | ||||||||
Canada | 5,635 | 5,468 | 5,065 | ||||||||
China | 2,069 | 1,779 | 1,562 | ||||||||
Other | 158 | 114 | 34 | ||||||||
Total revenue | $ | 50,705 | $ | 49,747 | $ | 49,243 | |||||
Long-lived assets | |||||||||||
United States | $ | 2,507 | $ | 2,741 | $ | 2,960 | |||||
Europe | 352 | 438 | 464 | ||||||||
Canada | 432 | 474 | 462 | ||||||||
China | 161 | 147 | 152 | ||||||||
Other | 19 | 23 | 32 | ||||||||
Total long-lived assets | $ | 3,471 | $ | 3,823 | $ | 4,070 |
|
2012 | 2011 | 2010 | |||||||||
Payment made to Carphone Warehouse for their share of the profit share agreement buy-out (see Note 2, Profit Share Buy-Out) | $ | 1,303 | $ | — | $ | — | |||||
Revenue earned (primarily commission revenue and fees for information technology services provided to CPW and Carphone Warehouse) | — | 6 | 63 | ||||||||
SG&A incurred (primarily payroll-related costs and rent paid to CPW and Carphone Warehouse) | 20 | 8 | 6 | ||||||||
Interest expense incurred on credit facility with CPW and Carphone Warehouse as lender | 1 | 1 | 4 | ||||||||
Accounts payable to CPW and Carphone Warehouse at the end of the fiscal year | — | — | 4 | ||||||||
Accounts receivable from CPW and Carphone Warehouse at the end of the fiscal year | 1 | 2 | 31 | ||||||||
Balance outstanding on credit facility from CPW and Carphone Warehouse at the end of the fiscal year (see Note 8, Debt) | — | 98 | 206 |
|
Quarter | Fiscal Year | ||||||||||||||||||
1st | 2nd | 3rd | 4th | ||||||||||||||||
Fiscal 2012 | |||||||||||||||||||
Revenue | $ | 10,812 | $ | 11,259 | $ | 12,004 | $ | 16,630 | $ | 50,705 | |||||||||
Comparable store sales % change(1) | (1.8 | )% | (2.9 | )% | 0.3 | % | (2.4 | )% | (1.7 | )% | |||||||||
Gross profit | $ | 2,746 | $ | 2,848 | $ | 2,922 | $ | 4,057 | $ | 12,573 | |||||||||
Operating income(2) | 330 | 335 | 351 | 69 | 1,085 | ||||||||||||||
Net earnings (loss) from continuing operations | 199 | 197 | 258 | (324 | ) | 330 | |||||||||||||
Loss from discontinued operations, net of tax | (36 | ) | (37 | ) | (127 | ) | (108 | ) | (308 | ) | |||||||||
Net earnings (loss) including noncontrolling interests | 163 | 160 | 131 | (432 | ) | 22 | |||||||||||||
Net earnings (loss) attributable to Best Buy Co., Inc.(3) | 136 | 177 | 154 | (1,698 | ) | (1,231 | ) | ||||||||||||
Diluted earnings (loss) per share(4) | |||||||||||||||||||
Continuing operations | 0.41 | 0.52 | 0.62 | (4.73 | ) | (2.89 | ) | ||||||||||||
Discontinued operations | (0.06 | ) | (0.05 | ) | (0.20 | ) | (0.16 | ) | (0.47 | ) | |||||||||
Diluted earnings (loss) per share | 0.35 | 0.47 | 0.42 | (4.89 | ) | (3.36 | ) |
Quarter | Fiscal Year | ||||||||||||||||||
1st | 2nd | 3rd | 4th | ||||||||||||||||
Fiscal 2011 | |||||||||||||||||||
Revenue | $ | 10,674 | $ | 11,216 | $ | 11,774 | $ | 16,083 | $ | 49,747 | |||||||||
Comparable store sales % change(1) | 2.9 | % | (0.1 | )% | (3.4 | )% | (4.7 | )% | (1.8 | )% | |||||||||
Gross profit | $ | 2,762 | $ | 2,888 | $ | 2,962 | $ | 3,929 | $ | 12,541 | |||||||||
Operating income(5) | 348 | 456 | 433 | 1,137 | 2,374 | ||||||||||||||
Net earnings from continuing operations | 208 | 274 | 280 | 792 | 1,554 | ||||||||||||||
Loss from discontinued operations, net of tax | (27 | ) | (17 | ) | (40 | ) | (104 | ) | (188 | ) | |||||||||
Net earnings including noncontrolling interests | 181 | 257 | 240 | 688 | 1,366 | ||||||||||||||
Net earnings attributable to Best Buy Co., Inc. | 155 | 254 | 217 | 651 | 1,277 | ||||||||||||||
Diluted earnings (loss) per share(4) | |||||||||||||||||||
Continuing operations | 0.41 | 0.62 | 0.61 | 1.84 | 3.44 | ||||||||||||||
Discontinued operations | (0.05 | ) | (0.02 | ) | (0.07 | ) | (0.22 | ) | (0.36 | ) | |||||||||
Diluted earnings per share | 0.36 | 0.60 | 0.54 | 1.62 | 3.08 |
(1) | Comprised of revenue from stores operating for at least 14 full months as well as revenue related to call centers, Web sites and our other comparable sales channels. Revenue we earn from sales of merchandise to wholesalers or dealers is not included within our comparable store sales calculation. Relocated, remodeled and expanded stores are excluded from our comparable store sales calculation until at least 14 full months after reopening. Acquired stores are included in our comparable store sales calculation beginning with the first full quarter following the first anniversary of the date of the acquisition. The portion of our calculation of the comparable store sales percentage change attributable to our International segment excludes the effect of fluctuations in foreign currency exchange rates. The method of calculating comparable store sales varies across the retail industry. As a result, our method of calculating comparable store sales may not be the same as other retailers' methods. The calculation of comparable store sales excludes the impact of the extra week of revenue in the fourth quarter of fiscal 2012, as well as revenue from discontinued operations for all periods presented. |
(2) | Includes $1, $22 and $35 of restructuring charges recorded in the fiscal second, third and fourth quarters, respectively, related to measures we took to restructure our businesses, as well as a $1,207 goodwill impairment charge recorded in the fourth quarter related to our Best Buy Europe reporting unit. |
(3) | Includes a $1,303 payment related to the Mobile buy-out recorded in the fourth quarter of fiscal 2012. |
(4) | The sum of our quarterly diluted earnings per share does not equal our annual diluted earnings per share due to the impact of the timing of the repurchases of common stock and stock option exercises on quarterly and annual weighted-average shares outstanding. |
(5) | Includes $147 of restructuring charges recorded in the fiscal fourth quarter related to measures we took to restructure our businesses. |
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