Best Buy 2002 Annual Report Download - page 24

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In addition to traditional financial measurements, we use
Economic Value Added (EVA®) to measure our financial
performance and manage our allocation of capital
resources. Also, a portion of executive incentive compen-
sation is related to the achievement of targeted levels of
annual EVA improvement. EVA is a financial performance
measurement that includes the economic cost of assets
employed. We use EVA as one of several internal financial
measures, and it is not intended to represent a measure of
financial performance with respect to accounting principles
generally accepted in the United States. Other organiza-
tions that use EVA as a measurement of financial
performance may define and calculate EVA differently.
22 MD&A
Segment Performance
Best Buy
The following table presents selected financial data for the Best Buy segment for each of the past three fiscal years
($ in millions):
Segment Performance Summary(1)
(unaudited) 2002 2001 2000
Revenues $17,115 $15,189 $12,494
Comparable stores sales % gain(2) 1.9% 4.9% 11.1%
Gross profit as a % of revenues 21.2% 19.8% 19.2%
SG&A as a % of revenues 16.0% 15.8% 14.8%
Operating income $ 886 $ 611 $ 539
Operating income as a % of revenues 5.2% 4.0% 4.3%
(1) Aggregate results of our businesses other than Musicland and International.
(2) Includes only sales at Best Buy stores open at least 14 full months, and includes remodeled and expanded locations. Relocated stores
are excluded from the comparable store sales calculation until they have been reopened for at least 14 full months.