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November 26, 2011 | February 26, 2011 | November 27, 2010 | |||||||||
Short-term investments | |||||||||||
Money market fund | $ | — | $ | 2 | $ | 2 | |||||
U.S. Treasury bills | — | 20 | — | ||||||||
Total short-term investments | $ | — | $ | 22 | $ | 2 | |||||
Equity and other investments | |||||||||||
Debt securities (auction rate securities) | $ | 81 | $ | 110 | $ | 131 | |||||
Marketable equity securities | 1 | 146 | 145 | ||||||||
Other investments | 64 | 72 | 67 | ||||||||
Total equity and other investments | $ | 146 | $ | 328 | $ | 343 |
Description | Nature of collateral or guarantee | November 26, 2011 | February 26, 2011 | November 27, 2010 | ||||||||||
Student loan bonds | Student loans guaranteed 95% to 100% by the U.S. government | $ | 79 | $ | 108 | $ | 113 | |||||||
Municipal revenue bonds | 100% insured by AA/Aa-rated bond insurers at November 26, 2011 | 2 | 2 | 18 | ||||||||||
Total fair value plus accrued interest(1) | $ | 81 | $ | 110 | $ | 131 |
(1) | The par value and weighted-average interest rates (taxable equivalent) of our ARS were $89, $115 and $141, and 0.46%, 0.80% and 0.91%, respectively, at November 26, 2011, February 26, 2011, and November 27, 2010, respectively. |
November 26, 2011 | February 26, 2011 | November 27, 2010 | |||||||||
Common stock of TalkTalk Telecom Group PLC | $ | — | $ | 62 | $ | 63 | |||||
Common stock of Carphone Warehouse Group plc | — | 84 | 78 | ||||||||
Other | 1 | — | 4 | ||||||||
Total | $ | 1 | $ | 146 | $ | 145 |
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• | 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 November 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 | $ | 851 | $ | 851 | $ | — | $ | — | |||||||
Commercial paper | 60 | — | 60 | — | |||||||||||
Other current assets | |||||||||||||||
Money market funds (restricted cash) | 160 | 160 | — | — | |||||||||||
U.S. Treasury bills (restricted cash) | 20 | 20 | — | — | |||||||||||
Foreign currency derivative instruments | 4 | — | 4 | — | |||||||||||
Equity and other investments | |||||||||||||||
Auction rate securities | 81 | — | — | 81 | |||||||||||
Marketable equity securities | 1 | 1 | — | — | |||||||||||
Other assets | |||||||||||||||
Marketable equity securities that fund deferred compensation | 81 | 81 | — | — | |||||||||||
LIABILITIES | |||||||||||||||
Long-term liabilities | |||||||||||||||
Deferred compensation | 63 | 63 | — | — |
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 November 27, 2010 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||
ASSETS | |||||||||||
Short-term investments | |||||||||||
Money market fund | 2 | — | 2 | — | |||||||
Other current assets | |||||||||||
Money market funds (restricted assets) | 66 | 66 | — | — | |||||||
U.S. Treasury bills (restricted assets) | 85 | 85 | — | — | |||||||
Foreign currency derivative instruments | 5 | — | 5 | — | |||||||
Equity and other investments | |||||||||||
Auction rate securities | 131 | — | — | 131 | |||||||
Marketable equity securities | 145 | 145 | — | — | |||||||
Other assets | |||||||||||
Marketable equity securities that fund deferred compensation | 80 | 80 | — | — | |||||||
Foreign currency derivative instruments | 4 | — | 4 | — | |||||||
LIABILITIES | |||||||||||
Long-term liabilities | |||||||||||
Deferred compensation | 67 | 67 | — | — |
Debt securities- Auction rate securities only | |||||||||||
Student loan bonds | Municipal revenue bonds | Total | |||||||||
Balances at August 27, 2011 | $ | 86 | $ | 2 | $ | 88 | |||||
Changes in unrealized losses included in other comprehensive income | (3 | ) | — | (3 | ) | ||||||
Sales | (4 | ) | — | (4 | ) | ||||||
Balances at November 26, 2011 | $ | 79 | $ | 2 | $ | 81 |
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 | (3 | ) | — | (3 | ) | ||||||
Sales | (26 | ) | — | (26 | ) | ||||||
Balances at November 26, 2011 | $ | 79 | $ | 2 | $ | 81 |
Debt securities- Auction rate securities only | |||||||||||
Student loan bonds | Municipal revenue bonds | Total | |||||||||
Balances at August 28, 2010 | $ | 116 | $ | 18 | $ | 134 | |||||
Changes in unrealized losses included in other comprehensive income | — | — | — | ||||||||
Sales | (3 | ) | — | (3 | ) | ||||||
Balances at November 27, 2010 | $ | 113 | $ | 18 | $ | 131 |
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 | (142 | ) | (1 | ) | (143 | ) | |||||
Interest received | (1 | ) | — | (1 | ) | ||||||
Balances at November 27, 2010 | $ | 113 | $ | 18 | $ | 131 |
Nine Months Ended | |||||||
November 26, 2011 | |||||||
Impairments | Remaining Net Carrying Value | ||||||
Property and equipment | $ | 124 | $ | — | |||
Tradename | 3 | — | |||||
Total | $ | 127 | $ | — |
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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 | — | (38 | ) | (38 | ) | — | (2 | ) | (2 | ) | |||||||||||||
Acquisitions | 4 | — | 4 | 1 | — | 1 | |||||||||||||||||
Impairments | — | — | — | (3 | ) | — | (3 | ) | |||||||||||||||
Other(1) | — | — | — | — | 28 | 28 | |||||||||||||||||
Balances at November 26, 2011 | $ | 426 | $ | 1,994 | $ | 2,420 | $ | 19 | $ | 110 | $ | 129 |
(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 | ) | |||||||||||||
Acquisition of noncontrolling interests | — | 5 | 5 | — | — | — | |||||||||||||||||
Changes in foreign currency exchange rates | — | (4 | ) | (4 | ) | — | 2 | 2 | |||||||||||||||
Balances at November 27, 2010 | $ | 422 | $ | 2,019 | $ | 2,441 | $ | 31 | $ | 82 | $ | 113 |
(1) | 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. |
November 26, 2011 | February 26, 2011 | November 27, 2010 | |||||||||||||||||||||
Gross Carrying Amount | Cumulative Impairment | Gross Carrying Amount | Cumulative Impairment | Gross Carrying Amount | Cumulative Impairment | ||||||||||||||||||
Goodwill | $ | 2,485 | $ | (65 | ) | $ | 2,519 | $ | (65 | ) | $ | 2,506 | $ | (65 | ) |
November 26, 2011 | February 26, 2011 | November 27, 2010 | |||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||||||||
Tradenames | $ | — | $ | — | $ | 73 | $ | (45 | ) | $ | 74 | $ | (42 | ) | |||||||||
Customer relationships | 382 | (217 | ) | 383 | (180 | ) | 387 | (167 | ) | ||||||||||||||
Total | $ | 382 | $ | (217 | ) | $ | 456 | $ | (225 | ) | $ | 461 | $ | (209 | ) |
Fiscal Year | |||
Remainder of fiscal 2012 | $ | 9 | |
2013 | 35 | ||
2014 | 35 | ||
2015 | 35 | ||
2016 | 35 | ||
Thereafter | 16 |
|
Domestic | International | Total | |||||||||||||||||||||
Nine Months Ended November 26, 2011 | Cumulative Amount through November 26, 2011 | Nine Months Ended November 26, 2011 | Cumulative Amount through November 26, 2011 | Nine Months Ended November 26, 2011 | Cumulative Amount through November 26, 2011 | ||||||||||||||||||
Inventory write-downs | $ | — | $ | — | $ | 13 | $ | 13 | $ | 13 | $ | 13 | |||||||||||
Property and equipment impairments | 17 | 17 | 92 | 92 | 109 | 109 | |||||||||||||||||
Termination benefits | — | — | 7 | 7 | 7 | 7 | |||||||||||||||||
Facility closure and other costs, net | — | — | 2 | 2 | 2 | 2 | |||||||||||||||||
Total | $ | 17 | $ | 17 | $ | 114 | $ | 114 | $ | 131 | $ | 131 |
Termination Benefits | Facility Closure and Other Costs | Total | |||||||||
Balance at February 26, 2011 | $ | — | $ | — | $ | — | |||||
Charges | 7 | 2 | 9 | ||||||||
Cash payments | — | — | — | ||||||||
Adjustments | — | — | — | ||||||||
Changes in foreign currency exchange rates | — | — | — | ||||||||
Balance at November 26, 2011 | $ | 7 | $ | 2 | $ | 9 |
Domestic | International | Total | |||||||||||||||||||||
Nine Months Ended November 26, 2011 | Cumulative Amount through November 26, 2011 | Nine Months Ended November 26, 2011 | Cumulative Amount through November 26, 2011 | Nine Months Ended November 26, 2011 | Cumulative Amount through November 26, 2011 | ||||||||||||||||||
Inventory write-downs | $ | — | $ | 10 | $ | — | $ | 14 | $ | — | $ | 24 | |||||||||||
Property and equipment impairments | 15 | 30 | — | 132 | 15 | 162 | |||||||||||||||||
Termination benefits | 1 | 17 | 7 | 19 | 8 | 36 | |||||||||||||||||
Intangible asset impairments | 3 | 13 | — | — | 3 | 13 | |||||||||||||||||
Facility closure and other costs, net | 4 | 4 | (7 | ) | 6 | (3 | ) | 10 | |||||||||||||||
Total | $ | 23 | $ | 74 | $ | — | $ | 171 | $ | 23 | $ | 245 |
Termination Benefits | Facility Closure and Other Costs(1) | Total | |||||||||
Balance at February 26, 2011 | $ | 28 | $ | 13 | $ | 41 | |||||
Charges | 11 | 2 | 13 | ||||||||
Cash payments | (26 | ) | (13 | ) | (39 | ) | |||||
Adjustments | (3 | ) | 4 | 1 | |||||||
Changes in foreign currency exchange rates | — | 1 | 1 | ||||||||
Balance at November 26, 2011 | $ | 10 | $ | 7 | $ | 17 |
(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 nine months of fiscal 2012. |
|
November 26, 2011 | February 26, 2011 | November 27, 2010 | |||||||||
U.S. revolving credit facility – 364-Day | $ | — | $ | — | $ | — | |||||
U.S. revolving credit facility – Five-Year | — | — | — | ||||||||
JPMorgan revolving credit facility | — | — | 500 | ||||||||
New Europe revolving credit facility | 155 | — | — | ||||||||
Europe receivables financing facility | — | 455 | 136 | ||||||||
Europe revolving credit facility | — | 98 | — | ||||||||
Canada revolving demand facility | — | — | — | ||||||||
China revolving demand facilities | 8 | 4 | 54 | ||||||||
Total short-term debt | $ | 163 | $ | 557 | $ | 690 |
November 26, 2011 | February 26, 2011 | November 27, 2010 | |||||||||
2021 Notes | $ | 648 | $ | — | $ | — | |||||
2013 Notes | 500 | 500 | 500 | ||||||||
2016 Notes | 349 | — | — | ||||||||
Convertible debentures | 387 | 402 | 402 | ||||||||
Financing lease obligations | 160 | 170 | 173 | ||||||||
Capital lease obligations | 68 | 79 | 57 | ||||||||
Other debt | 2 | 1 | 2 | ||||||||
Total long-term debt | 2,114 | 1,152 | 1,134 | ||||||||
Less: current portion(1) | (427 | ) | (441 | ) | (33 | ) | |||||
Total long-term debt, less current portion | $ | 1,687 | $ | 711 | $ | 1,101 |
(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 $387 for such debentures in the current portion of long-term debt at November 26, 2011, and February 26, 2011. |
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November 26, 2011 | February 26, 2011 | November 27, 2010 | ||||||||||||||||||||||
Contract Type | Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | ||||||||||||||||||
Cash flow hedges (foreign exchange forward contracts) | $ | — | $ | — | $ | 1 | $ | (2 | ) | $ | 9 | $ | — | |||||||||||
No hedge designation (foreign exchange forward contracts) | 4 | — | 2 | (2 | ) | 1 | (1 | ) | ||||||||||||||||
Total | $ | 4 | $ | — | $ | 3 | $ | (4 | ) | $ | 10 | $ | (1 | ) |
Three Months Ended | Nine Months Ended | |||||||||||||||
November 26, 2011 | November 26, 2011 | |||||||||||||||
Contract Type | Pre-tax (Loss) 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 | ) | $ | 1 | $ | 8 | $ | 8 |
Three Months Ended | Nine Months Ended | |||||||||||||||
November 27, 2010 | November 27, 2010 | |||||||||||||||
Contract Type | Pre-tax (Loss) 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) | $ | (1 | ) | $ | 2 | $ | 9 | $ | 3 | |||||||
Net investment hedges (foreign exchange swap contracts) | — | — | 8 | — | ||||||||||||
Total | $ | (1 | ) | $ | 2 | $ | 17 | $ | 3 |
(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. |
Gain (Loss) Recognized within SG&A | ||||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||
Contract Type | November 26, 2011 | November 26, 2011 | November 27, 2010 | November 27, 2010 | ||||||||||||
No hedge designation (foreign exchange forward contracts) | $ | 22 | $ | 13 | $ | (4 | ) | $ | 8 |
Notional Amount | ||||||||||||
Contract Type | November 26, 2011 | February 26, 2011 | November 27, 2010 | |||||||||
Derivatives designated as cash flow hedging instruments | $ | 228 | $ | 264 | $ | 316 | ||||||
Derivatives not designated as hedging instruments | 213 | 493 | 230 | |||||||||
Total | $ | 441 | $ | 757 | $ | 546 |
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November 26, 2011 | February 26, 2011 | November 27, 2010 | |||||||||
Foreign currency translation | $ | 17 | $ | 102 | $ | 66 | |||||
Unrealized (losses) gains on available-for-sale investments | (5 | ) | 72 | 69 | |||||||
Unrealized (losses) gains on derivative instruments (cash flow hedges) | — | (1 | ) | 3 | |||||||
Total | $ | 12 | $ | 173 | $ | 138 |
|
Three Months Ended | Nine Months Ended | ||||||||||||||
November 26, 2011 | November 27, 2010 | November 26, 2011 | November 27, 2010 | ||||||||||||
June 2011 Program | |||||||||||||||
Number of shares repurchased | 12.6 | — | 21.7 | — | |||||||||||
Cost of shares repurchased | $ | 320 | $ | — | $ | 572 | $ | — | |||||||
June 2007 Program | |||||||||||||||
Number of shares repurchased | — | 10.9 | 20.1 | 30.7 | |||||||||||
Cost of shares repurchased | $ | — | $ | 423 | $ | 611 | $ | 1,128 |
|
Three Months Ended | Nine Months Ended | ||||||||||||||
November 26, 2011 | November 27, 2010 | November 26, 2011 | November 27, 2010 | ||||||||||||
Domestic | $ | 8,885 | $ | 8,710 | $ | 25,055 | $ | 25,069 | |||||||
International | 3,214 | 3,180 | 9,331 | 8,947 | |||||||||||
Total | $ | 12,099 | $ | 11,890 | $ | 34,386 | $ | 34,016 |
Three Months Ended | Nine Months Ended | ||||||||||||||
November 26, 2011 | November 27, 2010 | November 26, 2011 | November 27, 2010 | ||||||||||||
Domestic | $ | 207 | $ | 340 | $ | 744 | $ | 1,045 | |||||||
International | (29 | ) | 45 | 3 | 64 | ||||||||||
Total operating income | 178 | 385 | 747 | 1,109 | |||||||||||
Other income (expense) | |||||||||||||||
Gain on sale of investments | 55 | — | 55 | — | |||||||||||
Investment income and other | 8 | 8 | 26 | 33 | |||||||||||
Interest expense | (37 | ) | (20 | ) | (102 | ) | (64 | ) | |||||||
Earnings before income tax expense and equity in loss of affiliates | $ | 204 | $ | 373 | $ | 726 | $ | 1,078 |
November 26, 2011 | February 26, 2011 | November 27, 2010 | |||||||||
Domestic | $ | 14,049 | $ | 9,610 | $ | 13,949 | |||||
International | 8,699 | 8,239 | 8,403 | ||||||||
Total | $ | 22,748 | $ | 17,849 | $ | 22,352 |
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Best Buy Co., Inc. | Guarantor Subsidiary | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Assets | |||||||||||||||||||
Current Assets | |||||||||||||||||||
Cash and cash equivalents | $ | 1,249 | $ | 220 | $ | 923 | $ | — | $ | 2,392 | |||||||||
Short-term investments | — | — | — | — | — | ||||||||||||||
Receivables | — | 1,478 | 1,734 | — | 3,212 | ||||||||||||||
Merchandise inventories | — | 6,437 | 2,855 | (72 | ) | 9,220 | |||||||||||||
Other current assets | 182 | 48 | 867 | (12 | ) | 1,085 | |||||||||||||
Intercompany receivable | — | — | 13,225 | (13,225 | ) | — | |||||||||||||
Intercompany note receivable | 806 | — | 107 | (913 | ) | — | |||||||||||||
Total current assets | 2,237 | 8,183 | 19,711 | (14,222 | ) | 15,909 | |||||||||||||
Property and Equipment, Net | 200 | 1,737 | 1,630 | — | 3,567 | ||||||||||||||
Goodwill | — | 6 | 2,414 | — | 2,420 | ||||||||||||||
Tradenames, Net | — | — | 129 | — | 129 | ||||||||||||||
Customer Relationships, Net | — | — | 165 | — | 165 | ||||||||||||||
Equity and Other Investments | 141 | — | 5 | — | 146 | ||||||||||||||
Other Assets | 170 | 35 | 206 | 1 | 412 | ||||||||||||||
Investments in Subsidiaries | 14,561 | 254 | 2,623 | (17,438 | ) | — | |||||||||||||
Total Assets | $ | 17,309 | $ | 10,215 | $ | 26,883 | $ | (31,659 | ) | $ | 22,748 | ||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||
Current Liabilities | |||||||||||||||||||
Accounts payable | $ | 479 | $ | 58 | $ | 9,527 | $ | — | $ | 10,064 | |||||||||
Unredeemed gift card liabilities | — | 361 | 67 | — | 428 | ||||||||||||||
Accrued compensation and related expenses | — | 197 | 300 | — | 497 | ||||||||||||||
Accrued liabilities | 41 | 925 | 1,022 | (12 | ) | 1,976 | |||||||||||||
Accrued income taxes | 11 | — | — | — | 11 | ||||||||||||||
Short-term debt | — | — | 163 | — | 163 | ||||||||||||||
Current portion of long-term debt | 388 | 23 | 16 | — | 427 | ||||||||||||||
Intercompany payable | 8,573 | 4,652 | — | (13,225 | ) | — | |||||||||||||
Intercompany note payable | 108 | 500 | 305 | (913 | ) | — | |||||||||||||
Total current liabilities | 9,600 | 6,716 | 11,400 | (14,150 | ) | 13,566 | |||||||||||||
Long-Term Liabilities | 432 | 765 | 177 | (255 | ) | 1,119 | |||||||||||||
Long-Term Debt | 1,497 | 111 | 79 | — | 1,687 | ||||||||||||||
Equity | |||||||||||||||||||
Shareholders’ equity | 5,780 | 2,623 | 14,561 | (17,254 | ) | 5,710 | |||||||||||||
Noncontrolling interests | — | — | 666 | — | 666 | ||||||||||||||
Total equity | 5,780 | 2,623 | 15,227 | (17,254 | ) | 6,376 | |||||||||||||
Total Liabilities and Equity | $ | 17,309 | $ | 10,215 | $ | 26,883 | $ | (31,659 | ) | $ | 22,748 |
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 | $ | 144 | $ | 180 | $ | 601 | $ | — | $ | 925 | |||||||||
Short-term investments | — | — | 2 | — | 2 | ||||||||||||||
Receivables | — | 1,302 | 1,491 | — | 2,793 | ||||||||||||||
Merchandise inventories | — | 7,161 | 3,010 | (107 | ) | 10,064 | |||||||||||||
Other current assets | 243 | 90 | 766 | (54 | ) | 1,045 | |||||||||||||
Intercompany receivable | — | — | 11,953 | (11,953 | ) | — | |||||||||||||
Intercompany note receivable | 1,578 | — | 2 | (1,580 | ) | — | |||||||||||||
Total current assets | 1,965 | 8,733 | 17,825 | (13,694 | ) | 14,829 | |||||||||||||
Property and Equipment, Net | 202 | 1,836 | 1,956 | — | 3,994 | ||||||||||||||
Goodwill | — | 6 | 2,435 | — | 2,441 | ||||||||||||||
Tradenames, Net | — | — | 145 | — | 145 | ||||||||||||||
Customer Relationships, Net | — | — | 220 | — | 220 | ||||||||||||||
Equity and Other Investments | 168 | — | 175 | — | 343 | ||||||||||||||
Other Assets | 132 | 39 | 258 | (49 | ) | 380 | |||||||||||||
Investments in Subsidiaries | 12,405 | 195 | 2,371 | (14,971 | ) | — | |||||||||||||
Total Assets | $ | 14,872 | $ | 10,809 | $ | 25,385 | $ | (28,714 | ) | $ | 22,352 | ||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||
Current Liabilities | |||||||||||||||||||
Accounts payable | $ | 479 | $ | 54 | $ | 9,325 | $ | — | $ | 9,858 | |||||||||
Unredeemed gift card liabilities | — | 359 | 65 | — | 424 | ||||||||||||||
Accrued compensation and related expenses | — | 200 | 264 | — | 464 | ||||||||||||||
Accrued liabilities | — | 843 | 1,130 | (53 | ) | 1,920 | |||||||||||||
Accrued income taxes | 31 | — | — | — | 31 | ||||||||||||||
Short-term debt | 500 | — | 190 | — | 690 | ||||||||||||||
Current portion of long-term debt | — | 21 | 12 | — | 33 | ||||||||||||||
Intercompany payable | 6,692 | 5,261 | — | (11,953 | ) | — | |||||||||||||
Intercompany note payable | 15 | 500 | 1,065 | (1,580 | ) | — | |||||||||||||
Total current liabilities | 7,717 | 7,238 | 12,051 | (13,586 | ) | 13,420 | |||||||||||||
Long-Term Liabilities | 148 | 1,082 | 184 | (248 | ) | 1,166 | |||||||||||||
Long-Term Debt | 902 | 118 | 81 | — | 1,101 | ||||||||||||||
Equity | |||||||||||||||||||
Shareholders’ equity | 6,105 | 2,371 | 12,405 | (14,880 | ) | 6,001 | |||||||||||||
Noncontrolling interests | — | — | 664 | — | 664 | ||||||||||||||
Total equity | 6,105 | 2,371 | 13,069 | (14,880 | ) | 6,665 | |||||||||||||
Total Liabilities and Equity | $ | 14,872 | $ | 10,809 | $ | 25,385 | $ | (28,714 | ) | $ | 22,352 |
Best Buy Co., Inc. | Guarantor Subsidiary | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Revenue | $ | 4 | $ | 8,039 | $ | 12,886 | $ | (8,830 | ) | $ | 12,099 | ||||||||
Cost of goods sold | — | 6,063 | 11,420 | (8,328 | ) | 9,155 | |||||||||||||
Restructuring charges - cost of goods sold | — | — | 13 | — | 13 | ||||||||||||||
Gross profit | 4 | 1,976 | 1,453 | (502 | ) | 2,931 | |||||||||||||
Selling, general and administrative expenses | 33 | 1,896 | 1,236 | (549 | ) | 2,616 | |||||||||||||
Restructuring charges | — | — | 137 | — | 137 | ||||||||||||||
Operating (loss) income | (29 | ) | 80 | 80 | 47 | 178 | |||||||||||||
Other income (expense) | |||||||||||||||||||
Gain on sale of investments | — | — | 55 | — | 55 | ||||||||||||||
Investment income and other | 4 | — | 8 | (4 | ) | 8 | |||||||||||||
Interest expense | (25 | ) | (3 | ) | (13 | ) | 4 | (37 | ) | ||||||||||
(Loss) earnings before equity in earnings of subsidiaries | (50 | ) | 77 | 130 | 47 | 204 | |||||||||||||
Equity in earnings of subsidiaries | 100 | 18 | 49 | (167 | ) | — | |||||||||||||
Earnings before income tax expense and equity in loss of affiliates | 50 | 95 | 179 | (120 | ) | 204 | |||||||||||||
Income tax (benefit) expense | (57 | ) | 28 | 101 | — | 72 | |||||||||||||
Equity in loss of affiliates | — | — | (1 | ) | — | (1 | ) | ||||||||||||
Net earnings including noncontrolling interests | 107 | 67 | 77 | (120 | ) | 131 | |||||||||||||
Net loss attributable to noncontrolling interests | — | — | 23 | — | 23 | ||||||||||||||
Net earnings attributable to Best Buy Co., Inc. | $ | 107 | $ | 67 | $ | 100 | $ | (120 | ) | $ | 154 |
Best Buy Co., Inc. | Guarantor Subsidiary | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Revenue | $ | 12 | $ | 22,838 | $ | 33,055 | $ | (21,519 | ) | $ | 34,386 | ||||||||
Cost of goods sold | — | 17,061 | 28,788 | (20,047 | ) | 25,802 | |||||||||||||
Restructuring charges - cost of goods sold | — | — | 13 | — | 13 | ||||||||||||||
Gross profit | 12 | 5,777 | 4,254 | (1,472 | ) | 8,571 | |||||||||||||
Selling, general and administrative expenses | 106 | 5,551 | 3,642 | (1,616 | ) | 7,683 | |||||||||||||
Restructuring charges | — | (2 | ) | 143 | — | 141 | |||||||||||||
Operating (loss) income | (94 | ) | 228 | 469 | 144 | 747 | |||||||||||||
Other income (expense) | |||||||||||||||||||
Gain on sale of investments | — | — | 55 | — | 55 | ||||||||||||||
Investment income and other | 14 | — | 25 | (13 | ) | 26 | |||||||||||||
Interest expense | (71 | ) | (9 | ) | (35 | ) | 13 | (102 | ) | ||||||||||
(Loss) earnings before equity in earnings of subsidiaries | (151 | ) | 219 | 514 | 144 | 726 | |||||||||||||
Equity in earnings of subsidiaries | 420 | 36 | 142 | (598 | ) | — | |||||||||||||
Earnings before income tax expense and equity in loss of affiliates | 269 | 255 | 656 | (454 | ) | 726 | |||||||||||||
Income tax (benefit) expense | (54 | ) | 77 | 247 | — | 270 | |||||||||||||
Equity in loss of affiliates | — | — | (2 | ) | — | (2 | ) | ||||||||||||
Net earnings including noncontrolling interests | 323 | 178 | 407 | (454 | ) | 454 | |||||||||||||
Net loss attributable to noncontrolling interests | — | — | 13 | — | 13 | ||||||||||||||
Net earnings attributable to Best Buy Co., Inc. | $ | 323 | $ | 178 | $ | 420 | $ | (454 | ) | $ | 467 |
Best Buy Co., Inc. | Guarantor Subsidiary | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Revenue | $ | 4 | $ | 7,984 | $ | 13,469 | $ | (9,567 | ) | $ | 11,890 | ||||||||
Cost of goods sold | — | 5,962 | 11,994 | (9,049 | ) | 8,907 | |||||||||||||
Gross profit | 4 | 2,022 | 1,475 | (518 | ) | 2,983 | |||||||||||||
Selling, general and administrative expenses | 36 | 1,941 | 1,192 | (571 | ) | 2,598 | |||||||||||||
Operating (loss) income | (32 | ) | 81 | 283 | 53 | 385 | |||||||||||||
Other income (expense) | |||||||||||||||||||
Investment income and other | 12 | — | 8 | (12 | ) | 8 | |||||||||||||
Interest expense | (12 | ) | (4 | ) | (16 | ) | 12 | (20 | ) | ||||||||||
(Loss) earnings before equity in earnings of subsidiaries | (32 | ) | 77 | 275 | 53 | 373 | |||||||||||||
Equity in earnings of subsidiaries | 202 | 7 | 51 | (260 | ) | — | |||||||||||||
Earnings before income tax expense | 170 | 84 | 326 | (207 | ) | 373 | |||||||||||||
Income tax expense | 6 | 26 | 101 | — | 133 | ||||||||||||||
Net earnings including noncontrolling interests | 164 | 58 | 225 | (207 | ) | 240 | |||||||||||||
Net earnings attributable to noncontrolling interests | — | — | (23 | ) | — | (23 | ) | ||||||||||||
Net earnings attributable to Best Buy Co., Inc. | $ | 164 | $ | 58 | $ | 202 | $ | (207 | ) | $ | 217 |
Best Buy Co., Inc. | Guarantor Subsidiary | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Revenue | $ | 12 | $ | 23,059 | $ | 34,166 | $ | (23,221 | ) | $ | 34,016 | ||||||||
Cost of goods sold | — | 17,081 | 29,750 | (21,509 | ) | 25,322 | |||||||||||||
Gross profit | 12 | 5,978 | 4,416 | (1,712 | ) | 8,694 | |||||||||||||
Selling, general and administrative expenses | 107 | 5,747 | 3,584 | (1,853 | ) | 7,585 | |||||||||||||
Operating (loss) income | (95 | ) | 231 | 832 | 141 | 1,109 | |||||||||||||
Other income (expense) | |||||||||||||||||||
Investment income and other | 31 | — | 33 | (31 | ) | 33 | |||||||||||||
Interest expense | (35 | ) | (10 | ) | (50 | ) | 31 | (64 | ) | ||||||||||
(Loss) earnings before equity in earnings of subsidiaries | (99 | ) | 221 | 815 | 141 | 1,078 | |||||||||||||
Equity in earnings of subsidiaries | 584 | 30 | 142 | (756 | ) | — | |||||||||||||
Earnings before income tax expense | 485 | 251 | 957 | (615 | ) | 1,078 | |||||||||||||
Income tax expense | — | 79 | 321 | — | 400 | ||||||||||||||
Net earnings including noncontrolling interests | 485 | 172 | 636 | (615 | ) | 678 | |||||||||||||
Net earnings attributable to noncontrolling interests | — | — | (52 | ) | — | (52 | ) | ||||||||||||
Net earnings attributable to Best Buy Co., Inc. | $ | 485 | $ | 172 | $ | 584 | $ | (615 | ) | $ | 626 |
Best Buy Co., Inc. | Guarantor Subsidiary | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Total cash (used in) provided by operating activities | $ | (26 | ) | $ | (2,501 | ) | $ | 5,154 | $ | — | $ | 2,627 | |||||||
Investing activities | |||||||||||||||||||
Additions to property and equipment | (4 | ) | (318 | ) | (294 | ) | — | (616 | ) | ||||||||||
Purchases of investments | (91 | ) | — | (20 | ) | — | (111 | ) | |||||||||||
Sales of investments | 128 | — | 39 | — | 167 | ||||||||||||||
Change in restricted assets | — | — | (31 | ) | — | (31 | ) | ||||||||||||
Other, net | 2 | — | (9 | ) | — | (7 | ) | ||||||||||||
Total cash provided by (used in) investing activities | 35 | (318 | ) | (315 | ) | — | (598 | ) | |||||||||||
Financing activities | |||||||||||||||||||
Repurchase of common stock | (1,165 | ) | — | — | — | (1,165 | ) | ||||||||||||
Borrowings of debt | 997 | — | 1,441 | — | 2,438 | ||||||||||||||
Repayments of debt | (15 | ) | (10 | ) | (1,845 | ) | — | (1,870 | ) | ||||||||||
Dividends paid | (172 | ) | — | — | — | (172 | ) | ||||||||||||
Issuance of common stock under employee stock purchase plan and for the exercise of stock options | 64 | — | — | — | 64 | ||||||||||||||
Other, net | (12 | ) | — | (10 | ) | — | (22 | ) | |||||||||||
Change in intercompany receivable/payable | 1,261 | 2,998 | (4,259 | ) | — | — | |||||||||||||
Total cash provided by (used in) financing activities | 958 | 2,988 | (4,673 | ) | — | (727 | ) | ||||||||||||
Effect of exchange rate changes on cash | — | — | (13 | ) | — | (13 | ) | ||||||||||||
Increase in cash and cash equivalents | 967 | 169 | 153 | — | 1,289 | ||||||||||||||
Cash and cash equivalents at beginning of period | 282 | 51 | 770 | — | 1,103 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 1,249 | $ | 220 | $ | 923 | $ | — | $ | 2,392 |
Best Buy Co., Inc. | Guarantor Subsidiary | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Total cash (used in) provided by operating activities | $ | (410 | ) | $ | (3,758 | ) | $ | 4,713 | $ | — | $ | 545 | |||||||
Investing activities | |||||||||||||||||||
Additions to property and equipment | — | (199 | ) | (330 | ) | — | (529 | ) | |||||||||||
Purchases of investments | (245 | ) | — | — | — | (245 | ) | ||||||||||||
Sales of investments | 382 | — | 1 | — | 383 | ||||||||||||||
Proceeds from sale of business | — | — | 21 | — | 21 | ||||||||||||||
Change in restricted assets | — | — | (1 | ) | — | (1 | ) | ||||||||||||
Other, net | — | — | 10 | — | 10 | ||||||||||||||
Total cash provided by (used in) investing activities | 137 | (199 | ) | (299 | ) | — | (361 | ) | |||||||||||
Financing activities | |||||||||||||||||||
Repurchase of common stock | (1,128 | ) | — | — | — | (1,128 | ) | ||||||||||||
Borrowings of debt | 500 | — | 1,425 | — | 1,925 | ||||||||||||||
Repayments of debt | (1 | ) | (10 | ) | (1,873 | ) | — | (1,884 | ) | ||||||||||
Dividends paid | (178 | ) | — | — | — | (178 | ) | ||||||||||||
Issuance of common stock under employee stock purchase plan and for the exercise of stock options | 171 | — | — | — | 171 | ||||||||||||||
Other, net | 13 | — | (12 | ) | — | 1 | |||||||||||||
Change in intercompany receivable/payable | (130 | ) | 4,094 | (3,964 | ) | — | — | ||||||||||||
Total cash (used in) provided by financing activities | (753 | ) | 4,084 | (4,424 | ) | — | (1,093 | ) | |||||||||||
Effect of exchange rate changes on cash | — | — | 8 | — | 8 | ||||||||||||||
(Decrease) increase in cash and cash equivalents | (1,026 | ) | 127 | (2 | ) | — | (901 | ) | |||||||||||
Cash and cash equivalents at beginning of period | 1,170 | 53 | 603 | — | 1,826 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 144 | $ | 180 | $ | 601 | $ | — | $ | 925 |
|
Nine Months Ended | |||||||
November 26, 2011 | |||||||
Impairments | Remaining Net Carrying Value | ||||||
Property and equipment | $ | 124 | $ | — | |||
Tradename | 3 | — | |||||
Total | $ | 127 | $ | — |
|
November 26, 2011 | February 26, 2011 | November 27, 2010 | |||||||||
Short-term investments | |||||||||||
Money market fund | $ | — | $ | 2 | $ | 2 | |||||
U.S. Treasury bills | — | 20 | — | ||||||||
Total short-term investments | $ | — | $ | 22 | $ | 2 | |||||
Equity and other investments | |||||||||||
Debt securities (auction rate securities) | $ | 81 | $ | 110 | $ | 131 | |||||
Marketable equity securities | 1 | 146 | 145 | ||||||||
Other investments | 64 | 72 | 67 | ||||||||
Total equity and other investments | $ | 146 | $ | 328 | $ | 343 |
Description | Nature of collateral or guarantee | November 26, 2011 | February 26, 2011 | November 27, 2010 | ||||||||||
Student loan bonds | Student loans guaranteed 95% to 100% by the U.S. government | $ | 79 | $ | 108 | $ | 113 | |||||||
Municipal revenue bonds | 100% insured by AA/Aa-rated bond insurers at November 26, 2011 | 2 | 2 | 18 | ||||||||||
Total fair value plus accrued interest(1) | $ | 81 | $ | 110 | $ | 131 |
(1) | The par value and weighted-average interest rates (taxable equivalent) of our ARS were $89, $115 and $141, and 0.46%, 0.80% and 0.91%, respectively, at November 26, 2011, February 26, 2011, and November 27, 2010, respectively. |
November 26, 2011 | February 26, 2011 | November 27, 2010 | |||||||||
Common stock of TalkTalk Telecom Group PLC | $ | — | $ | 62 | $ | 63 | |||||
Common stock of Carphone Warehouse Group plc | — | 84 | 78 | ||||||||
Other | 1 | — | 4 | ||||||||
Total | $ | 1 | $ | 146 | $ | 145 |
|
Fair Value Measurements Using Inputs Considered as | |||||||||||||||
Fair Value at November 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 | $ | 851 | $ | 851 | $ | — | $ | — | |||||||
Commercial paper | 60 | — | 60 | — | |||||||||||
Other current assets | |||||||||||||||
Money market funds (restricted cash) | 160 | 160 | — | — | |||||||||||
U.S. Treasury bills (restricted cash) | 20 | 20 | — | — | |||||||||||
Foreign currency derivative instruments | 4 | — | 4 | — | |||||||||||
Equity and other investments | |||||||||||||||
Auction rate securities | 81 | — | — | 81 | |||||||||||
Marketable equity securities | 1 | 1 | — | — | |||||||||||
Other assets | |||||||||||||||
Marketable equity securities that fund deferred compensation | 81 | 81 | — | — | |||||||||||
LIABILITIES | |||||||||||||||
Long-term liabilities | |||||||||||||||
Deferred compensation | 63 | 63 | — | — |
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 November 27, 2010 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||
ASSETS | |||||||||||
Short-term investments | |||||||||||
Money market fund | 2 | — | 2 | — | |||||||
Other current assets | |||||||||||
Money market funds (restricted assets) | 66 | 66 | — | — | |||||||
U.S. Treasury bills (restricted assets) | 85 | 85 | — | — | |||||||
Foreign currency derivative instruments | 5 | — | 5 | — | |||||||
Equity and other investments | |||||||||||
Auction rate securities | 131 | — | — | 131 | |||||||
Marketable equity securities | 145 | 145 | — | — | |||||||
Other assets | |||||||||||
Marketable equity securities that fund deferred compensation | 80 | 80 | — | — | |||||||
Foreign currency derivative instruments | 4 | — | 4 | — | |||||||
LIABILITIES | |||||||||||
Long-term liabilities | |||||||||||
Deferred compensation | 67 | 67 | — | — |
Debt securities- Auction rate securities only | |||||||||||
Student loan bonds | Municipal revenue bonds | Total | |||||||||
Balances at August 27, 2011 | $ | 86 | $ | 2 | $ | 88 | |||||
Changes in unrealized losses included in other comprehensive income | (3 | ) | — | (3 | ) | ||||||
Sales | (4 | ) | — | (4 | ) | ||||||
Balances at November 26, 2011 | $ | 79 | $ | 2 | $ | 81 |
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 | (3 | ) | — | (3 | ) | ||||||
Sales | (26 | ) | — | (26 | ) | ||||||
Balances at November 26, 2011 | $ | 79 | $ | 2 | $ | 81 |
Debt securities- Auction rate securities only | |||||||||||
Student loan bonds | Municipal revenue bonds | Total | |||||||||
Balances at August 28, 2010 | $ | 116 | $ | 18 | $ | 134 | |||||
Changes in unrealized losses included in other comprehensive income | — | — | — | ||||||||
Sales | (3 | ) | — | (3 | ) | ||||||
Balances at November 27, 2010 | $ | 113 | $ | 18 | $ | 131 |
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 | (142 | ) | (1 | ) | (143 | ) | |||||
Interest received | (1 | ) | — | (1 | ) | ||||||
Balances at November 27, 2010 | $ | 113 | $ | 18 | $ | 131 |
Nine Months Ended | |||||||
November 26, 2011 | |||||||
Impairments | Remaining Net Carrying Value | ||||||
Property and equipment | $ | 124 | $ | — | |||
Tradename | 3 | — | |||||
Total | $ | 127 | $ | — |
|
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 | — | (38 | ) | (38 | ) | — | (2 | ) | (2 | ) | |||||||||||||
Acquisitions | 4 | — | 4 | 1 | — | 1 | |||||||||||||||||
Impairments | — | — | — | (3 | ) | — | (3 | ) | |||||||||||||||
Other(1) | — | — | — | — | 28 | 28 | |||||||||||||||||
Balances at November 26, 2011 | $ | 426 | $ | 1,994 | $ | 2,420 | $ | 19 | $ | 110 | $ | 129 |
(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 | ) | |||||||||||||
Acquisition of noncontrolling interests | — | 5 | 5 | — | — | — | |||||||||||||||||
Changes in foreign currency exchange rates | — | (4 | ) | (4 | ) | — | 2 | 2 | |||||||||||||||
Balances at November 27, 2010 | $ | 422 | $ | 2,019 | $ | 2,441 | $ | 31 | $ | 82 | $ | 113 |
(1) | 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. |
November 26, 2011 | February 26, 2011 | November 27, 2010 | |||||||||||||||||||||
Gross Carrying Amount | Cumulative Impairment | Gross Carrying Amount | Cumulative Impairment | Gross Carrying Amount | Cumulative Impairment | ||||||||||||||||||
Goodwill | $ | 2,485 | $ | (65 | ) | $ | 2,519 | $ | (65 | ) | $ | 2,506 | $ | (65 | ) |
November 26, 2011 | February 26, 2011 | November 27, 2010 | |||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||||||||
Tradenames | $ | — | $ | — | $ | 73 | $ | (45 | ) | $ | 74 | $ | (42 | ) | |||||||||
Customer relationships | 382 | (217 | ) | 383 | (180 | ) | 387 | (167 | ) | ||||||||||||||
Total | $ | 382 | $ | (217 | ) | $ | 456 | $ | (225 | ) | $ | 461 | $ | (209 | ) |
Fiscal Year | |||
Remainder of fiscal 2012 | $ | 9 | |
2013 | 35 | ||
2014 | 35 | ||
2015 | 35 | ||
2016 | 35 | ||
Thereafter | 16 |
|
Domestic | International | Total | |||||||||||||||||||||
Nine Months Ended November 26, 2011 | Cumulative Amount through November 26, 2011 | Nine Months Ended November 26, 2011 | Cumulative Amount through November 26, 2011 | Nine Months Ended November 26, 2011 | Cumulative Amount through November 26, 2011 | ||||||||||||||||||
Inventory write-downs | $ | — | $ | 10 | $ | — | $ | 14 | $ | — | $ | 24 | |||||||||||
Property and equipment impairments | 15 | 30 | — | 132 | 15 | 162 | |||||||||||||||||
Termination benefits | 1 | 17 | 7 | 19 | 8 | 36 | |||||||||||||||||
Intangible asset impairments | 3 | 13 | — | — | 3 | 13 | |||||||||||||||||
Facility closure and other costs, net | 4 | 4 | (7 | ) | 6 | (3 | ) | 10 | |||||||||||||||
Total | $ | 23 | $ | 74 | $ | — | $ | 171 | $ | 23 | $ | 245 |
Domestic | International | Total | |||||||||||||||||||||
Nine Months Ended November 26, 2011 | Cumulative Amount through November 26, 2011 | Nine Months Ended November 26, 2011 | Cumulative Amount through November 26, 2011 | Nine Months Ended November 26, 2011 | Cumulative Amount through November 26, 2011 | ||||||||||||||||||
Inventory write-downs | $ | — | $ | — | $ | 13 | $ | 13 | $ | 13 | $ | 13 | |||||||||||
Property and equipment impairments | 17 | 17 | 92 | 92 | 109 | 109 | |||||||||||||||||
Termination benefits | — | — | 7 | 7 | 7 | 7 | |||||||||||||||||
Facility closure and other costs, net | — | — | 2 | 2 | 2 | 2 | |||||||||||||||||
Total | $ | 17 | $ | 17 | $ | 114 | $ | 114 | $ | 131 | $ | 131 |
Termination Benefits | Facility Closure and Other Costs(1) | Total | |||||||||
Balance at February 26, 2011 | $ | 28 | $ | 13 | $ | 41 | |||||
Charges | 11 | 2 | 13 | ||||||||
Cash payments | (26 | ) | (13 | ) | (39 | ) | |||||
Adjustments | (3 | ) | 4 | 1 | |||||||
Changes in foreign currency exchange rates | — | 1 | 1 | ||||||||
Balance at November 26, 2011 | $ | 10 | $ | 7 | $ | 17 |
(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 nine months of fiscal 2012. |
Termination Benefits | Facility Closure and Other Costs | Total | |||||||||
Balance at February 26, 2011 | $ | — | $ | — | $ | — | |||||
Charges | 7 | 2 | 9 | ||||||||
Cash payments | — | — | — | ||||||||
Adjustments | — | — | — | ||||||||
Changes in foreign currency exchange rates | — | — | — | ||||||||
Balance at November 26, 2011 | $ | 7 | $ | 2 | $ | 9 |
|
November 26, 2011 | February 26, 2011 | November 27, 2010 | |||||||||
U.S. revolving credit facility – 364-Day | $ | — | $ | — | $ | — | |||||
U.S. revolving credit facility – Five-Year | — | — | — | ||||||||
JPMorgan revolving credit facility | — | — | 500 | ||||||||
New Europe revolving credit facility | 155 | — | — | ||||||||
Europe receivables financing facility | — | 455 | 136 | ||||||||
Europe revolving credit facility | — | 98 | — | ||||||||
Canada revolving demand facility | — | — | — | ||||||||
China revolving demand facilities | 8 | 4 | 54 | ||||||||
Total short-term debt | $ | 163 | $ | 557 | $ | 690 |
November 26, 2011 | February 26, 2011 | November 27, 2010 | |||||||||
2021 Notes | $ | 648 | $ | — | $ | — | |||||
2013 Notes | 500 | 500 | 500 | ||||||||
2016 Notes | 349 | — | — | ||||||||
Convertible debentures | 387 | 402 | 402 | ||||||||
Financing lease obligations | 160 | 170 | 173 | ||||||||
Capital lease obligations | 68 | 79 | 57 | ||||||||
Other debt | 2 | 1 | 2 | ||||||||
Total long-term debt | 2,114 | 1,152 | 1,134 | ||||||||
Less: current portion(1) | (427 | ) | (441 | ) | (33 | ) | |||||
Total long-term debt, less current portion | $ | 1,687 | $ | 711 | $ | 1,101 |
(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 $387 for such debentures in the current portion of long-term debt at November 26, 2011, and February 26, 2011. |
|
November 26, 2011 | February 26, 2011 | November 27, 2010 | ||||||||||||||||||||||
Contract Type | Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | ||||||||||||||||||
Cash flow hedges (foreign exchange forward contracts) | $ | — | $ | — | $ | 1 | $ | (2 | ) | $ | 9 | $ | — | |||||||||||
No hedge designation (foreign exchange forward contracts) | 4 | — | 2 | (2 | ) | 1 | (1 | ) | ||||||||||||||||
Total | $ | 4 | $ | — | $ | 3 | $ | (4 | ) | $ | 10 | $ | (1 | ) |
Three Months Ended | Nine Months Ended | |||||||||||||||
November 26, 2011 | November 26, 2011 | |||||||||||||||
Contract Type | Pre-tax (Loss) 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 | ) | $ | 1 | $ | 8 | $ | 8 |
Three Months Ended | Nine Months Ended | |||||||||||||||
November 27, 2010 | November 27, 2010 | |||||||||||||||
Contract Type | Pre-tax (Loss) 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) | $ | (1 | ) | $ | 2 | $ | 9 | $ | 3 | |||||||
Net investment hedges (foreign exchange swap contracts) | — | — | 8 | — | ||||||||||||
Total | $ | (1 | ) | $ | 2 | $ | 17 | $ | 3 |
(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. |
Gain (Loss) Recognized within SG&A | ||||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||
Contract Type | November 26, 2011 | November 26, 2011 | November 27, 2010 | November 27, 2010 | ||||||||||||
No hedge designation (foreign exchange forward contracts) | $ | 22 | $ | 13 | $ | (4 | ) | $ | 8 |
Notional Amount | ||||||||||||
Contract Type | November 26, 2011 | February 26, 2011 | November 27, 2010 | |||||||||
Derivatives designated as cash flow hedging instruments | $ | 228 | $ | 264 | $ | 316 | ||||||
Derivatives not designated as hedging instruments | 213 | 493 | 230 | |||||||||
Total | $ | 441 | $ | 757 | $ | 546 |
|
November 26, 2011 | February 26, 2011 | November 27, 2010 | |||||||||
Foreign currency translation | $ | 17 | $ | 102 | $ | 66 | |||||
Unrealized (losses) gains on available-for-sale investments | (5 | ) | 72 | 69 | |||||||
Unrealized (losses) gains on derivative instruments (cash flow hedges) | — | (1 | ) | 3 | |||||||
Total | $ | 12 | $ | 173 | $ | 138 |
|
Three Months Ended | Nine Months Ended | ||||||||||||||
November 26, 2011 | November 27, 2010 | November 26, 2011 | November 27, 2010 | ||||||||||||
June 2011 Program | |||||||||||||||
Number of shares repurchased | 12.6 | — | 21.7 | — | |||||||||||
Cost of shares repurchased | $ | 320 | $ | — | $ | 572 | $ | — | |||||||
June 2007 Program | |||||||||||||||
Number of shares repurchased | — | 10.9 | 20.1 | 30.7 | |||||||||||
Cost of shares repurchased | $ | — | $ | 423 | $ | 611 | $ | 1,128 |
|
Three Months Ended | Nine Months Ended | ||||||||||||||
November 26, 2011 | November 27, 2010 | November 26, 2011 | November 27, 2010 | ||||||||||||
Domestic | $ | 8,885 | $ | 8,710 | $ | 25,055 | $ | 25,069 | |||||||
International | 3,214 | 3,180 | 9,331 | 8,947 | |||||||||||
Total | $ | 12,099 | $ | 11,890 | $ | 34,386 | $ | 34,016 |
Three Months Ended | Nine Months Ended | ||||||||||||||
November 26, 2011 | November 27, 2010 | November 26, 2011 | November 27, 2010 | ||||||||||||
Domestic | $ | 207 | $ | 340 | $ | 744 | $ | 1,045 | |||||||
International | (29 | ) | 45 | 3 | 64 | ||||||||||
Total operating income | 178 | 385 | 747 | 1,109 | |||||||||||
Other income (expense) | |||||||||||||||
Gain on sale of investments | 55 | — | 55 | — | |||||||||||
Investment income and other | 8 | 8 | 26 | 33 | |||||||||||
Interest expense | (37 | ) | (20 | ) | (102 | ) | (64 | ) | |||||||
Earnings before income tax expense and equity in loss of affiliates | $ | 204 | $ | 373 | $ | 726 | $ | 1,078 |
November 26, 2011 | February 26, 2011 | November 27, 2010 | |||||||||
Domestic | $ | 14,049 | $ | 9,610 | $ | 13,949 | |||||
International | 8,699 | 8,239 | 8,403 | ||||||||
Total | $ | 22,748 | $ | 17,849 | $ | 22,352 |
|
Best Buy Co., Inc. | Guarantor Subsidiary | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Assets | |||||||||||||||||||
Current Assets | |||||||||||||||||||
Cash and cash equivalents | $ | 1,249 | $ | 220 | $ | 923 | $ | — | $ | 2,392 | |||||||||
Short-term investments | — | — | — | — | — | ||||||||||||||
Receivables | — | 1,478 | 1,734 | — | 3,212 | ||||||||||||||
Merchandise inventories | — | 6,437 | 2,855 | (72 | ) | 9,220 | |||||||||||||
Other current assets | 182 | 48 | 867 | (12 | ) | 1,085 | |||||||||||||
Intercompany receivable | — | — | 13,225 | (13,225 | ) | — | |||||||||||||
Intercompany note receivable | 806 | — | 107 | (913 | ) | — | |||||||||||||
Total current assets | 2,237 | 8,183 | 19,711 | (14,222 | ) | 15,909 | |||||||||||||
Property and Equipment, Net | 200 | 1,737 | 1,630 | — | 3,567 | ||||||||||||||
Goodwill | — | 6 | 2,414 | — | 2,420 | ||||||||||||||
Tradenames, Net | — | — | 129 | — | 129 | ||||||||||||||
Customer Relationships, Net | — | — | 165 | — | 165 | ||||||||||||||
Equity and Other Investments | 141 | — | 5 | — | 146 | ||||||||||||||
Other Assets | 170 | 35 | 206 | 1 | 412 | ||||||||||||||
Investments in Subsidiaries | 14,561 | 254 | 2,623 | (17,438 | ) | — | |||||||||||||
Total Assets | $ | 17,309 | $ | 10,215 | $ | 26,883 | $ | (31,659 | ) | $ | 22,748 | ||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||
Current Liabilities | |||||||||||||||||||
Accounts payable | $ | 479 | $ | 58 | $ | 9,527 | $ | — | $ | 10,064 | |||||||||
Unredeemed gift card liabilities | — | 361 | 67 | — | 428 | ||||||||||||||
Accrued compensation and related expenses | — | 197 | 300 | — | 497 | ||||||||||||||
Accrued liabilities | 41 | 925 | 1,022 | (12 | ) | 1,976 | |||||||||||||
Accrued income taxes | 11 | — | — | — | 11 | ||||||||||||||
Short-term debt | — | — | 163 | — | 163 | ||||||||||||||
Current portion of long-term debt | 388 | 23 | 16 | — | 427 | ||||||||||||||
Intercompany payable | 8,573 | 4,652 | — | (13,225 | ) | — | |||||||||||||
Intercompany note payable | 108 | 500 | 305 | (913 | ) | — | |||||||||||||
Total current liabilities | 9,600 | 6,716 | 11,400 | (14,150 | ) | 13,566 | |||||||||||||
Long-Term Liabilities | 432 | 765 | 177 | (255 | ) | 1,119 | |||||||||||||
Long-Term Debt | 1,497 | 111 | 79 | — | 1,687 | ||||||||||||||
Equity | |||||||||||||||||||
Shareholders’ equity | 5,780 | 2,623 | 14,561 | (17,254 | ) | 5,710 | |||||||||||||
Noncontrolling interests | — | — | 666 | — | 666 | ||||||||||||||
Total equity | 5,780 | 2,623 | 15,227 | (17,254 | ) | 6,376 | |||||||||||||
Total Liabilities and Equity | $ | 17,309 | $ | 10,215 | $ | 26,883 | $ | (31,659 | ) | $ | 22,748 |
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 | $ | 144 | $ | 180 | $ | 601 | $ | — | $ | 925 | |||||||||
Short-term investments | — | — | 2 | — | 2 | ||||||||||||||
Receivables | — | 1,302 | 1,491 | — | 2,793 | ||||||||||||||
Merchandise inventories | — | 7,161 | 3,010 | (107 | ) | 10,064 | |||||||||||||
Other current assets | 243 | 90 | 766 | (54 | ) | 1,045 | |||||||||||||
Intercompany receivable | — | — | 11,953 | (11,953 | ) | — | |||||||||||||
Intercompany note receivable | 1,578 | — | 2 | (1,580 | ) | — | |||||||||||||
Total current assets | 1,965 | 8,733 | 17,825 | (13,694 | ) | 14,829 | |||||||||||||
Property and Equipment, Net | 202 | 1,836 | 1,956 | — | 3,994 | ||||||||||||||
Goodwill | — | 6 | 2,435 | — | 2,441 | ||||||||||||||
Tradenames, Net | — | — | 145 | — | 145 | ||||||||||||||
Customer Relationships, Net | — | — | 220 | — | 220 | ||||||||||||||
Equity and Other Investments | 168 | — | 175 | — | 343 | ||||||||||||||
Other Assets | 132 | 39 | 258 | (49 | ) | 380 | |||||||||||||
Investments in Subsidiaries | 12,405 | 195 | 2,371 | (14,971 | ) | — | |||||||||||||
Total Assets | $ | 14,872 | $ | 10,809 | $ | 25,385 | $ | (28,714 | ) | $ | 22,352 | ||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||
Current Liabilities | |||||||||||||||||||
Accounts payable | $ | 479 | $ | 54 | $ | 9,325 | $ | — | $ | 9,858 | |||||||||
Unredeemed gift card liabilities | — | 359 | 65 | — | 424 | ||||||||||||||
Accrued compensation and related expenses | — | 200 | 264 | — | 464 | ||||||||||||||
Accrued liabilities | — | 843 | 1,130 | (53 | ) | 1,920 | |||||||||||||
Accrued income taxes | 31 | — | — | — | 31 | ||||||||||||||
Short-term debt | 500 | — | 190 | — | 690 | ||||||||||||||
Current portion of long-term debt | — | 21 | 12 | — | 33 | ||||||||||||||
Intercompany payable | 6,692 | 5,261 | — | (11,953 | ) | — | |||||||||||||
Intercompany note payable | 15 | 500 | 1,065 | (1,580 | ) | — | |||||||||||||
Total current liabilities | 7,717 | 7,238 | 12,051 | (13,586 | ) | 13,420 | |||||||||||||
Long-Term Liabilities | 148 | 1,082 | 184 | (248 | ) | 1,166 | |||||||||||||
Long-Term Debt | 902 | 118 | 81 | — | 1,101 | ||||||||||||||
Equity | |||||||||||||||||||
Shareholders’ equity | 6,105 | 2,371 | 12,405 | (14,880 | ) | 6,001 | |||||||||||||
Noncontrolling interests | — | — | 664 | — | 664 | ||||||||||||||
Total equity | 6,105 | 2,371 | 13,069 | (14,880 | ) | 6,665 | |||||||||||||
Total Liabilities and Equity | $ | 14,872 | $ | 10,809 | $ | 25,385 | $ | (28,714 | ) | $ | 22,352 |
Best Buy Co., Inc. | Guarantor Subsidiary | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Revenue | $ | 4 | $ | 8,039 | $ | 12,886 | $ | (8,830 | ) | $ | 12,099 | ||||||||
Cost of goods sold | — | 6,063 | 11,420 | (8,328 | ) | 9,155 | |||||||||||||
Restructuring charges - cost of goods sold | — | — | 13 | — | 13 | ||||||||||||||
Gross profit | 4 | 1,976 | 1,453 | (502 | ) | 2,931 | |||||||||||||
Selling, general and administrative expenses | 33 | 1,896 | 1,236 | (549 | ) | 2,616 | |||||||||||||
Restructuring charges | — | — | 137 | — | 137 | ||||||||||||||
Operating (loss) income | (29 | ) | 80 | 80 | 47 | 178 | |||||||||||||
Other income (expense) | |||||||||||||||||||
Gain on sale of investments | — | — | 55 | — | 55 | ||||||||||||||
Investment income and other | 4 | — | 8 | (4 | ) | 8 | |||||||||||||
Interest expense | (25 | ) | (3 | ) | (13 | ) | 4 | (37 | ) | ||||||||||
(Loss) earnings before equity in earnings of subsidiaries | (50 | ) | 77 | 130 | 47 | 204 | |||||||||||||
Equity in earnings of subsidiaries | 100 | 18 | 49 | (167 | ) | — | |||||||||||||
Earnings before income tax expense and equity in loss of affiliates | 50 | 95 | 179 | (120 | ) | 204 | |||||||||||||
Income tax (benefit) expense | (57 | ) | 28 | 101 | — | 72 | |||||||||||||
Equity in loss of affiliates | — | — | (1 | ) | — | (1 | ) | ||||||||||||
Net earnings including noncontrolling interests | 107 | 67 | 77 | (120 | ) | 131 | |||||||||||||
Net loss attributable to noncontrolling interests | — | — | 23 | — | 23 | ||||||||||||||
Net earnings attributable to Best Buy Co., Inc. | $ | 107 | $ | 67 | $ | 100 | $ | (120 | ) | $ | 154 |
Best Buy Co., Inc. | Guarantor Subsidiary | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Revenue | $ | 12 | $ | 22,838 | $ | 33,055 | $ | (21,519 | ) | $ | 34,386 | ||||||||
Cost of goods sold | — | 17,061 | 28,788 | (20,047 | ) | 25,802 | |||||||||||||
Restructuring charges - cost of goods sold | — | — | 13 | — | 13 | ||||||||||||||
Gross profit | 12 | 5,777 | 4,254 | (1,472 | ) | 8,571 | |||||||||||||
Selling, general and administrative expenses | 106 | 5,551 | 3,642 | (1,616 | ) | 7,683 | |||||||||||||
Restructuring charges | — | (2 | ) | 143 | — | 141 | |||||||||||||
Operating (loss) income | (94 | ) | 228 | 469 | 144 | 747 | |||||||||||||
Other income (expense) | |||||||||||||||||||
Gain on sale of investments | — | — | 55 | — | 55 | ||||||||||||||
Investment income and other | 14 | — | 25 | (13 | ) | 26 | |||||||||||||
Interest expense | (71 | ) | (9 | ) | (35 | ) | 13 | (102 | ) | ||||||||||
(Loss) earnings before equity in earnings of subsidiaries | (151 | ) | 219 | 514 | 144 | 726 | |||||||||||||
Equity in earnings of subsidiaries | 420 | 36 | 142 | (598 | ) | — | |||||||||||||
Earnings before income tax expense and equity in loss of affiliates | 269 | 255 | 656 | (454 | ) | 726 | |||||||||||||
Income tax (benefit) expense | (54 | ) | 77 | 247 | — | 270 | |||||||||||||
Equity in loss of affiliates | — | — | (2 | ) | — | (2 | ) | ||||||||||||
Net earnings including noncontrolling interests | 323 | 178 | 407 | (454 | ) | 454 | |||||||||||||
Net loss attributable to noncontrolling interests | — | — | 13 | — | 13 | ||||||||||||||
Net earnings attributable to Best Buy Co., Inc. | $ | 323 | $ | 178 | $ | 420 | $ | (454 | ) | $ | 467 |
Best Buy Co., Inc. | Guarantor Subsidiary | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Revenue | $ | 4 | $ | 7,984 | $ | 13,469 | $ | (9,567 | ) | $ | 11,890 | ||||||||
Cost of goods sold | — | 5,962 | 11,994 | (9,049 | ) | 8,907 | |||||||||||||
Gross profit | 4 | 2,022 | 1,475 | (518 | ) | 2,983 | |||||||||||||
Selling, general and administrative expenses | 36 | 1,941 | 1,192 | (571 | ) | 2,598 | |||||||||||||
Operating (loss) income | (32 | ) | 81 | 283 | 53 | 385 | |||||||||||||
Other income (expense) | |||||||||||||||||||
Investment income and other | 12 | — | 8 | (12 | ) | 8 | |||||||||||||
Interest expense | (12 | ) | (4 | ) | (16 | ) | 12 | (20 | ) | ||||||||||
(Loss) earnings before equity in earnings of subsidiaries | (32 | ) | 77 | 275 | 53 | 373 | |||||||||||||
Equity in earnings of subsidiaries | 202 | 7 | 51 | (260 | ) | — | |||||||||||||
Earnings before income tax expense | 170 | 84 | 326 | (207 | ) | 373 | |||||||||||||
Income tax expense | 6 | 26 | 101 | — | 133 | ||||||||||||||
Net earnings including noncontrolling interests | 164 | 58 | 225 | (207 | ) | 240 | |||||||||||||
Net earnings attributable to noncontrolling interests | — | — | (23 | ) | — | (23 | ) | ||||||||||||
Net earnings attributable to Best Buy Co., Inc. | $ | 164 | $ | 58 | $ | 202 | $ | (207 | ) | $ | 217 |
Best Buy Co., Inc. | Guarantor Subsidiary | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Revenue | $ | 12 | $ | 23,059 | $ | 34,166 | $ | (23,221 | ) | $ | 34,016 | ||||||||
Cost of goods sold | — | 17,081 | 29,750 | (21,509 | ) | 25,322 | |||||||||||||
Gross profit | 12 | 5,978 | 4,416 | (1,712 | ) | 8,694 | |||||||||||||
Selling, general and administrative expenses | 107 | 5,747 | 3,584 | (1,853 | ) | 7,585 | |||||||||||||
Operating (loss) income | (95 | ) | 231 | 832 | 141 | 1,109 | |||||||||||||
Other income (expense) | |||||||||||||||||||
Investment income and other | 31 | — | 33 | (31 | ) | 33 | |||||||||||||
Interest expense | (35 | ) | (10 | ) | (50 | ) | 31 | (64 | ) | ||||||||||
(Loss) earnings before equity in earnings of subsidiaries | (99 | ) | 221 | 815 | 141 | 1,078 | |||||||||||||
Equity in earnings of subsidiaries | 584 | 30 | 142 | (756 | ) | — | |||||||||||||
Earnings before income tax expense | 485 | 251 | 957 | (615 | ) | 1,078 | |||||||||||||
Income tax expense | — | 79 | 321 | — | 400 | ||||||||||||||
Net earnings including noncontrolling interests | 485 | 172 | 636 | (615 | ) | 678 | |||||||||||||
Net earnings attributable to noncontrolling interests | — | — | (52 | ) | — | (52 | ) | ||||||||||||
Net earnings attributable to Best Buy Co., Inc. | $ | 485 | $ | 172 | $ | 584 | $ | (615 | ) | $ | 626 |
Best Buy Co., Inc. | Guarantor Subsidiary | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Total cash (used in) provided by operating activities | $ | (26 | ) | $ | (2,501 | ) | $ | 5,154 | $ | — | $ | 2,627 | |||||||
Investing activities | |||||||||||||||||||
Additions to property and equipment | (4 | ) | (318 | ) | (294 | ) | — | (616 | ) | ||||||||||
Purchases of investments | (91 | ) | — | (20 | ) | — | (111 | ) | |||||||||||
Sales of investments | 128 | — | 39 | — | 167 | ||||||||||||||
Change in restricted assets | — | — | (31 | ) | — | (31 | ) | ||||||||||||
Other, net | 2 | — | (9 | ) | — | (7 | ) | ||||||||||||
Total cash provided by (used in) investing activities | 35 | (318 | ) | (315 | ) | — | (598 | ) | |||||||||||
Financing activities | |||||||||||||||||||
Repurchase of common stock | (1,165 | ) | — | — | — | (1,165 | ) | ||||||||||||
Borrowings of debt | 997 | — | 1,441 | — | 2,438 | ||||||||||||||
Repayments of debt | (15 | ) | (10 | ) | (1,845 | ) | — | (1,870 | ) | ||||||||||
Dividends paid | (172 | ) | — | — | — | (172 | ) | ||||||||||||
Issuance of common stock under employee stock purchase plan and for the exercise of stock options | 64 | — | — | — | 64 | ||||||||||||||
Other, net | (12 | ) | — | (10 | ) | — | (22 | ) | |||||||||||
Change in intercompany receivable/payable | 1,261 | 2,998 | (4,259 | ) | — | — | |||||||||||||
Total cash provided by (used in) financing activities | 958 | 2,988 | (4,673 | ) | — | (727 | ) | ||||||||||||
Effect of exchange rate changes on cash | — | — | (13 | ) | — | (13 | ) | ||||||||||||
Increase in cash and cash equivalents | 967 | 169 | 153 | — | 1,289 | ||||||||||||||
Cash and cash equivalents at beginning of period | 282 | 51 | 770 | — | 1,103 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 1,249 | $ | 220 | $ | 923 | $ | — | $ | 2,392 |
Best Buy Co., Inc. | Guarantor Subsidiary | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Total cash (used in) provided by operating activities | $ | (410 | ) | $ | (3,758 | ) | $ | 4,713 | $ | — | $ | 545 | |||||||
Investing activities | |||||||||||||||||||
Additions to property and equipment | — | (199 | ) | (330 | ) | — | (529 | ) | |||||||||||
Purchases of investments | (245 | ) | — | — | — | (245 | ) | ||||||||||||
Sales of investments | 382 | — | 1 | — | 383 | ||||||||||||||
Proceeds from sale of business | — | — | 21 | — | 21 | ||||||||||||||
Change in restricted assets | — | — | (1 | ) | — | (1 | ) | ||||||||||||
Other, net | — | — | 10 | — | 10 | ||||||||||||||
Total cash provided by (used in) investing activities | 137 | (199 | ) | (299 | ) | — | (361 | ) | |||||||||||
Financing activities | |||||||||||||||||||
Repurchase of common stock | (1,128 | ) | — | — | — | (1,128 | ) | ||||||||||||
Borrowings of debt | 500 | — | 1,425 | — | 1,925 | ||||||||||||||
Repayments of debt | (1 | ) | (10 | ) | (1,873 | ) | — | (1,884 | ) | ||||||||||
Dividends paid | (178 | ) | — | — | — | (178 | ) | ||||||||||||
Issuance of common stock under employee stock purchase plan and for the exercise of stock options | 171 | — | — | — | 171 | ||||||||||||||
Other, net | 13 | — | (12 | ) | — | 1 | |||||||||||||
Change in intercompany receivable/payable | (130 | ) | 4,094 | (3,964 | ) | — | — | ||||||||||||
Total cash (used in) provided by financing activities | (753 | ) | 4,084 | (4,424 | ) | — | (1,093 | ) | |||||||||||
Effect of exchange rate changes on cash | — | — | 8 | — | 8 | ||||||||||||||
(Decrease) increase in cash and cash equivalents | (1,026 | ) | 127 | (2 | ) | — | (901 | ) | |||||||||||
Cash and cash equivalents at beginning of period | 1,170 | 53 | 603 | — | 1,826 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 144 | $ | 180 | $ | 601 | $ | — | $ | 925 |
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