Best Buy 2013 Annual Report Download - page 46

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46
business environment. We plan to exercise a disciplined approach to capital allocation, while investing in key areas such as
online, mobile and the multi-channel customer experience.
We ended fiscal 2013 (11-month) with $1.8 billion of cash and cash equivalents, compared to $1.2 billion at the end of fiscal
2012. The increase in cash and cash equivalents was due primarily to the suspension of the share repurchase program in the
second quarter of fiscal 2013 (11-month) and the absence of the $1.3 billion payment for the Mobile buy-out that occurred in
fiscal 2012, offset by a decrease in cash provided by operations. Working capital, the excess of current assets over current
liabilities, was $1.2 billion at the end of fiscal 2013 (11-month), a decrease from $1.4 billion at the end of fiscal 2012.
Operating cash flow decreased $1.6 billion to $1.5 billion in fiscal 2013 (11-month) compared to fiscal 2012 (11-month recast),
while capital expenditures remained relatively consistent.
Cash Flows
The following table summarizes our cash flows from operating, investing and financing activities for each of the past three
fiscal years and fiscal 2012 (11-month recast) ($ in millions):
11-Month 12-Month
2013 2012 2012 2011
(recast)
Total cash provided by (used in):
Operating activities $ 1,454 $ 3,097 $ 3,293 $ 1,190
Investing activities (538)(647)(724)(569)
Financing activities (211)(2,141)(2,478)(1,357)
Effect of exchange rate changes on cash (4)(6) 5 13
Increase (decrease) in cash and cash equivalents $ 701 $ 303 $ 96 $ (723)
Operating Activities
The decrease in cash provided by operating activities in fiscal 2013 (11-month) compared to fiscal 2012 (11-month recast) was
primarily due to lower gross profit in fiscal 2013 (11-month) and larger cash payments for employee termination benefits and
facility closure costs. Additionally, in fiscal 2012 (11-month recast) there were larger cash inflows from the normalization of
accounts payable, following unusually low balances at the end of fiscal 2011 due to the timing of merchandise receipts in the
fourth quarter. These items were partially offset by an aggressive inventory reduction plan and other working capital and cash
flow management initiatives implemented towards the end of fiscal 2013 (11-month).
The increase in cash provided by operating activities in fiscal 2012 compared to fiscal 2011 was primarily related to the
normalization of accounts payable during fiscal 2012, following unusually low balances at the end of fiscal 2011 due to the
timing of merchandise receipts in the fourth quarter, as well as efforts to reduce inventory levels throughout fiscal 2012, which
were unusually high at the end of fiscal 2011.
Investing Activities
The decrease in cash used in investing activities in fiscal 2013 (11-month) compared to fiscal 2012 (11-month recast) was
primarily due to a reduction in cash used for acquisitions of businesses in fiscal 2013 (11-month), offset partially by a decrease
in the cash received from the sale of investments.
The increase in cash used in investing activities in fiscal 2012 compared to fiscal 2011 was primarily due to cash used for our
acquisition of mindSHIFT Technologies, Inc. and decreased sales of auction rate securities ("ARS") in fiscal 2012 compared to
fiscal 2011.
Financing Activities
The decrease in cash used in financing activities in fiscal 2013 (11-month) compared to fiscal 2012 (11-month recast) was
primarily due to the stock repurchase program being suspended in fiscal 2013 (11-month) and the absence of the Mobile buy-
out payment which was incurred in fiscal 2012 (11-month recast), partially offset by the inflow of cash from the issuance of the
$1.0 billion of long-term debt securities in fiscal 2012 (11-month recast).
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