Best Buy 2012 Annual Report Download - page 108

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$ in millions, except per share amounts or as otherwise noted
108
17. Subsequent Event
In March 2012, subsequent to the end of fiscal 2012, we announced a transformation strategy consisting of a series of actions
intended to improve operating performance. The announced actions include closure of approximately 50 large-format Best Buy
branded stores in the U.S., changes to the store and corporate operating models, and other measures intended to reduce costs
associated with product life-cycle management and supply chain. The costs of implementing the changes primarily consist of
lease exit costs, employee severance and fixed asset impairments.
We will begin initiating the announced actions in the first quarter of fiscal 2013 and expect to complete the actions by the end
of fiscal 2013. We expect to incur total pre-tax restructuring charges of between $300 and $350 related to the actions, of which
between $30 and $40 will be non-cash. Given the timing of these actions, we estimate that between $140 and $160 of the
charges will be recorded in the first quarter of fiscal 2013, consisting primarily of employee severance and fixed asset
impairments triggered by our change in the intended use of those assets resulting from the strategic actions. The estimated costs
associated with lease commitments on vacated stores will be recognized when stores are closed, expected to be throughout the
remainder of fiscal 2013. The timing of lease payments for vacated stores is generally expected to follow the original lease
terms, except to the extent we reach agreement with landlords for an alternative settlement.
The amount of the restructuring charges noted above are estimates, and the actual charges may vary materially based on various
factors, including but not limited to the following: the timing of store closures; level of employee terminations; factors relating
to real estate, such as sale proceeds and the timing and amount of sublease income and other related expenses; and changes in
management’s assumptions.
18. Supplementary Financial Information (Unaudited)
The following tables show selected operating results for each quarter and full year of fiscal 2012 and 2011 (unaudited):
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)