Best Buy 2015 Annual Report Download

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FISCAL 2015
ANNUAL REPORT

Table of contents

  • Page 1
    FISCAL 2015 ANNUAL REPORT

  • Page 2
    ... declining margins. The strategy was structured around five pillars Reinvigorate and rejuvenate the customer experience Attract and inspire leaders and employees Work with vendor partners to innovate and drive value Increase our return on invested capital for investors Continue our leadership role...

  • Page 3
    ... have continued to invest in our price competitiveness to take price off the table as a decision factor for our customers. We have improved the experience in our online channel with enhanced search capabilities, better product information and navigation, faster shipping and the chain-wide rollout of...

  • Page 4
    ...world's foremost tech companies including Canon, Google, Intel, Microsoft, Nikon, Samsung and Sony, in addition to Apple, which has had a presence in our stores for a number of years. In parallel, we increased the amount of customer-facing labor in our stores and the level of training our associates...

  • Page 5
    ... in our future. As we look ahead, we aspire to build our position as the leading provider of technology products, services and solutions, as measured by our customers, our employees, our investors and the communities in which we operate. We are excited by our mission to "Ignite Human Potential" as...

  • Page 6
    ... in the marketing of our Services offerings and better integrating Geek Squad into BestBuy.com. 6. Supply Chain: We remain intent on leveraging our network and improving the customer experience with increased inventory availability, faster speedto-customer and improved home delivery and installation...

  • Page 7
    ..., for your ongoing support as we continue the transformation of Best Buy. Respectfully, Hubert Joly For GAAP to non-GAAP reconciliations, please refer to the non-GAAP reconciliation schedule on the last page of the Company's 2015 Annual Report. Non-GAAP financial information should not be...

  • Page 8
    ... Richfield, Minnesota (Address of principal executive offices) Registrant's telephone number, including area code 612-291-1000 Securities registered pursuant to Section 12(b) of the Act: Title of each class Common Stock, par value $.10 per share Name of each exchange on which registered New York...

  • Page 9
    ...materially from the anticipated results expressed in such forward-looking statements. Readers should review Item 1A, Risk Factors, of this Annual Report on Form 10-K for a description of important factors that could cause our future results to differ materially from those contemplated by the forward...

  • Page 10
    ... With Accountants on Accounting and Financial Disclosure. Controls and Procedures. Other Information. Directors, Executive Officers and Corporate Governance. Executive Compensation. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. Certain Relationships...

  • Page 11
    ... technology products, services and solutions. We offer expert service at unbeatable price more than 1.5 billion times a year to the consumers, small business owners and educators who visit our stores, engage with Geek Squad agents or use our websites or mobile applications. We have retail and online...

  • Page 12
    ... ship-from-store capability allows us to improve product availability and delivery times for customers. Most merchandise for our U.S. Best Buy, U.S. Best Buy Mobile, Magnolia Audio Video and Pacific Sales stores is shipped directly from manufacturers to our distribution centers or warehouses located...

  • Page 13
    ...square footage. In fiscal 2016 and beyond, we will continue to look for opportunities to optimize our store space, renegotiating leases and selectively opening or closing locations to support our ongoing transformation. In March 2015, we made a decision to consolidate Future Shop and Best Buy stores...

  • Page 14
    ... to result in, material capital expenditures. See Item 1A, Risk Factors, for additional discussion. Number of Employees At the end of fiscal 2015, we employed approximately 125,000 full-time, part-time and seasonal employees in the U.S., Canada, Mexico and our sourcing office in China. We consider...

  • Page 15
    ... to successfully manage these factors and offer competitive delivery options could negatively impact the demand for our products. In addition, because our business strategy is based on offering superior levels of customer service utilizing a multi-channel platform, our cost structure is higher...

  • Page 16
    ... this environment. Our current strategy includes transformational change to many areas of our business, including our online and in-store customer experience, our distribution system, employee training and engagement, partnership with our vendors, retail execution, services and cost control. We may...

  • Page 17
    ... obtain adequate financing, including via trade payables with our vendors. Customers' inclination to shop with us or purchase gift cards or extended warranties may also be affected by the publicity associated with deterioration of our credit ratings. Failure to effectively manage strategic ventures...

  • Page 18
    ..., monthly fee plans, cancellation fees or service levels, the volume of upgrades and new contracts we sign with customers may be reduced, adversely affecting our revenues and profitability. In addition, many of our carriers also serve customers through their own stores, websites, mobile applications...

  • Page 19
    ... and regulations including, but not limited to, financial reform, National Labor Relations Board rule changes, health care reform, corporate governance matters and/or other as yet unknown legislation, that could affect how we operate and execute our strategies as well as alter our expense structure...

  • Page 20
    ...to, information technology, human resource operations, customer loyalty programs, promotional financing and customer loyalty credit cards, customer warranty and insurance programs. Any material disruption in our relationship with key third-party business partners or any disruption in the services or...

  • Page 21
    ...conditions, legal and regulatory constraints, foreign trade rules and monetary and fiscal policies (both of the U.S. and of other countries). In addition, foreign currency exchange rates and fluctuations may have an impact on our future revenues, earnings and cash flows from International operations...

  • Page 22
    ... in a decline in our stock price. We may provide public guidance on our expected financial results for future periods. Although we believe that this guidance provides investors and analysts with a better understanding of management's expectations for the future and is useful to our stockholders and...

  • Page 23
    ... and Corporate Facilities Domestic Segment The following table summarizes the location of our Domestic segment stores at the end of fiscal 2015: U.S. Best Buy Stores Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois...

  • Page 24
    ...426 U.S. Best Buy Mobile StandAlone Stores - - 367 503 Pacific Sales Stores - - 29 767 Magnolia Audio Video Stores - - 2 20 The following table summarizes the location, ownership status and total square footage of space utilized for distribution centers, service centers and corporate offices of our...

  • Page 25
    ... stores to the Best Buy brand. We separately closed two Future Shop locations in March 2015 as part of our normal operations. The following table summarizes the location, ownership status and total square footage of space utilized for distribution centers and corporate offices of our International...

  • Page 26
    ... 2012. At Williams-Sonoma, she was responsible for the long-term strategic planning activities of the company and oversaw multiple key functions, including global finance, treasury, investor relations, information technology, real estate, store development, corporate operations and human resources...

  • Page 27
    ...video specialty retailer in the western United States. Mr. Mohan also previously worked at Future Shop in Canada from 1988 to 1997, prior to our acquisition of the company, where he served in various merchandising roles. Mr. Mohan serves as a member of the board of directors for Consumer Electronics...

  • Page 28
    ..., Related Stockholder Matters and Issuer Purchases of Equity Securities. Market Information and Dividends Our common stock is traded on the New York Stock Exchange under the ticker symbol BBY. In fiscal 2004, our Board initiated the payment of a regular quarterly cash dividend with respect to shares...

  • Page 29
    ... sector of the S&P 500. The graph assumes an investment of $100 at the close of trading on February 26, 2010, the last trading day of fiscal 2010, in our common stock, the S&P 500 and the S&P Retailing Group. COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN* Among Best Buy Co., Inc., the S&P 500 and the...

  • Page 30
    ... Data, of this Annual Report on Form 10-K. Five-Year Financial Highlights $ in millions, except per share amounts 12-Month Fiscal Year 2015 (1) 11-Month (2) 12-Month 2012 (3)(5) 2014 2013 (3)(4) 2011(6) Consolidated Statements of Earnings Data Revenue Operating income Net earnings (loss) from...

  • Page 31
    ... technology products, services and solutions. We offer expert service at unbeatable price more than 1.5 billion times a year to the consumers, small business owners and educators who visit our stores, engage with Geek Squad agents or use our websites or mobile applications. We have retail and online...

  • Page 32
    ... our future revenue and net earnings is difficult. Throughout this MD&A, we refer to comparable sales. Our comparable sales calculation compares revenue from stores, websites and call centers operating for at least 14 full months, as well as revenue related to certain other comparable sales channels...

  • Page 33
    ... excess capital to shareholders. This plan allows us to continue to invest in the growth of our business and preserve a strong balance sheet and includes: (1) a special, one-time dividend of $0.51 per share, or approximately $180 million, related to the net, after-tax proceeds from LCD-related legal...

  • Page 34
    ...for shipfrom-store, continue to pursue cost efficiencies through technology enhancements (including replacement of our warehouse technology systems), drive growth in large appliances and large televisions by leveraging new regional inventory capabilities and invest in improving our home delivery and...

  • Page 35
    ... markets in Canada. Looking ahead, investments up to $160 million will be made in Best Buy stores and bestbuy.ca to build a leading multi-channel customer experience. This multi-faceted strategy will include: (1) launching major home appliances in all stores; (2) working with our vendor partners...

  • Page 36
    ... our fiscal year 2013 transition period was 11 months and ended on February 2, 2013. Refer to Note 1, Summary of Significant Accounting Policies, of the Notes to Consolidated Financial Statements, included in Item 8, Financial Statements and Supplementary Data, of this Annual Report on Form 10-K for...

  • Page 37
    ... estimated benefit associated with the classification of the new mobile carrier installment billing plans, comparable sales were flat. Our gross profit rate decreased by 0.7% of revenue to 22.4% of revenue in fiscal 2015. The decrease was primarily due to LCD-related legal settlements received...

  • Page 38
    ... 2013 (11-month) represents the 11-month transition period ended February 2, 2013. The components of the 6.2% revenue increase in fiscal 2014 (12-month) were as follows: Extra month of revenue(1) Comparable sales impact Net store changes Impact of foreign currency exchange rate fluctuations Total...

  • Page 39
    ...our ship-from-store capability that was completed in January 2014; (2) higher average order value; and (3) increased traffic driven by greater investment in online digital marketing. Fiscal 2015 was also the first full year under the credit card agreement, the term of which started in September 2013...

  • Page 40
    ...gift card breakage, commercial sales and sales of merchandise to wholesalers and dealers. The net store changes did not have a material impact on our revenue in fiscal 2015, as the majority of closures occurred in the fourth quarter and related to our small-format Best Buy Mobile stand-alone stores...

  • Page 41
    ... Financial Statements and Supplementary Data, of this Annual Report on Form 10-K for further information. The decrease in revenue from net store changes was primarily due to the closure of 47 large-format Best Buy branded stores in the second and third quarter of fiscal 2013 (11-month). The opening...

  • Page 42
    ... Kitchen & Home store-within-a-store concepts. Services: The 0.2% comparable sales gain was primarily due to growth in mobile phone repair services, offset by a decline in warranty services due to the prior-year benefit from a periodic profit sharing payment that was earned based on the long-term...

  • Page 43
    ... (11-Month) Total Stores at End of Fiscal Year Stores Opened Fiscal 2014 Stores Closed Total Stores at End of Fiscal Year Stores Opened Fiscal 2015 Stores Closed Total Stores at End of Fiscal Year Canada Future Shop Best Buy Best Buy Mobile stand-alone Mexico Best Buy Express Total International...

  • Page 44
    ... and assortment. Services: The 4.7% comparable sales decline was due to a decrease in sales of warranties in Canada driven by the overall comparable store sales decline in applicable hardware, particularly tablets and televisions. • • • • Our International segment experienced a gross...

  • Page 45
    ... end of fiscal 2013 (11-month) contributed to the majority of the decrease in revenue associated with net store changes in our International segment in fiscal 2014 (12-month). The addition of large-format stores in Mexico and small-format Best Buy Mobile stand-alone stores in Canada partially offset...

  • Page 46
    ... prior year. The decrease in fiscal 2015 was due to lower returns on our deferred compensation assets, partially offset by an increase in interest income driven by higher average cash and cash equivalents and short-term investment balances. In fiscal 2014 (12-month), our investment income and other...

  • Page 47
    ... to Consolidated Financial Statements, included in Item 8, Financial Statements and Supplementary Data, of this Annual Report on Form 10-K for additional information. Income tax expense increased to $388 million in fiscal 2014 (12-month), compared to a tax expense of $263 million in the prior-year...

  • Page 48
    ... gain on sale of investments Income tax impact of Best Buy Europe sale(3) Income tax impact of Europe legal entity reorganization(4) Adjusted net earnings from continuing operations Diluted earnings (loss) per share from continuing operations Per share impact of restructuring charges - cost of goods...

  • Page 49
    ...capital resources. Our liquidity requirements depend on key variables, including the level of investment required to support our business strategies, the performance of our business, capital expenditures, credit facilities and short-term borrowing arrangements and working capital management. Capital...

  • Page 50
    ...outstanding under the Five-Year Facility Agreement. Refer to Note 5, Debt, of the Notes to Consolidated Financial Statements, included in Item 8, Financial Statements and Supplementary Data, of this Annual Report on Form 10-K for further information about our credit facilities. Our ability to access...

  • Page 51
    ... for each of the past three fiscal years ($ in millions): 12-Month 2015 12-Month 2014 11-Month 2013 New stores Store-related projects(1) E-commerce and information technology Other Total capital expenditures(2)(3) (1) (2) (3) Includes store remodels and various merchandising projects. $ $ 3 177...

  • Page 52
    ... and our employee stock purchase plan, and optimizing our capital structure. We consider several factors in determining whether to make share repurchases including, among other things, our cash needs, the availability of funding, our future business plans and the market price of our stock. If we...

  • Page 53
    ..., of the Notes to Consolidated Financial Statements, included in Item 8, Financial Statements and Supplementary Data, we sold our interest in Best Buy Europe on June 26, 2013. The multiple of eight times annual rental expense in the calculation of our capitalized operating lease obligations is the...

  • Page 54
    ...affect the reported amounts of assets, liabilities, revenue, expenses and the related disclosures. We base our assumptions, estimates and judgments on historical experience, current trends and other factors that management believes to be relevant at the time our consolidated financial statements are...

  • Page 55
    ... all land, buildings, leasehold improvements, fixtures and equipment located at each store to the net cash flow projections for each store. In addition, we conduct separate impairment reviews at other levels as appropriate. For example, a shared asset such as a distribution center would be evaluated...

  • Page 56
    ... because management is required to make assumptions and apply judgment to estimate the exposures associated with our various filing positions. Our effective income tax rate is also affected by changes in tax law, the tax jurisdiction of new stores or business ventures, the level of earnings and...

  • Page 57
    ... 31, 2015 ($ in millions): Returns Gift Cards Customer Loyalty Service Contracts $7 $23 $13 $10 Costs Associated with Vacant Leased Property From time-to-time we vacate leased stores and other leased properties prior to the expiration of the related lease. For vacated locations with remaining...

  • Page 58
    ...fair value of our awards. These assumptions and judgments include estimating the future volatility of our stock price, expected dividend yield, future employee turnover rates and future employee stock option exercise behaviors and correlations between our returns and peer company returns. Changes in...

  • Page 59
    ...balances and our investment in our Canadian operations. Our primary objective in holding derivatives is to reduce the volatility of net earnings and cash flows, as well as of the net asset value associated with changes in foreign currency exchange rates. Our foreign currency risk management strategy...

  • Page 60
    ... internal control over financial reporting. Deloitte & Touche LLP, the independent registered public accounting firm that audited our consolidated financial statements for the year ended January 31, 2015, included in Item 8, Financial Statements and Supplementary Data, of this Annual Report on Form...

  • Page 61
    ... the accompanying consolidated balance sheets of Best Buy Co., Inc. and subsidiaries (the "Company") as of January 31, 2015 and February 1, 2014 and the related consolidated statements of earnings, comprehensive income, cash flows, and changes in shareholders' equity for the 12 months ended January...

  • Page 62
    ... Commission. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated financial statements and financial statement schedule as of and for the fiscal year ended January 31, 2015, of the Company and our report dated...

  • Page 63
    ... Intangibles, Net Other Assets Non-current assets held for sale Total Assets Liabilities and Equity Current Liabilities Accounts payable Unredeemed gift card liabilities Deferred revenue Accrued compensation and related expenses Accrued liabilities Accrued income taxes Current portion of long-term...

  • Page 64
    ... Statements of Earnings $ in millions, except per share amounts 12 Months Ended Fiscal Years Ended January 31, 2015 February 1, 2014 11 Months Ended February 2, 2013 Revenue Cost of goods sold Restructuring charges - cost of goods sold Gross profit Selling, general and administrative expenses...

  • Page 65
    ... Income $ in millions 12 Months Ended January 31, 2015 12 Months Ended February 1, 2014 11 Months Ended February 2, 2013 Fiscal Years Ended Net earnings (loss) including noncontrolling interests Foreign currency translation adjustments Unrealized gain (loss) on available-for-sale investments...

  • Page 66
    ... Accounts payable Other liabilities Income taxes Total cash provided by operating activities Investing Activities Additions to property and equipment, net of $14, $13 and $29 non-cash capital expenditures Purchases of investments Sales of investments Acquisition of businesses, net of cash acquired...

  • Page 67
    ... Common Shares Common Stock Retained Earnings Total Equity Balances at March 3, 2012 Adjustment for fiscal year-end change (Note 2) Net earnings (loss) Other comprehensive income, net of tax: Foreign currency translation adjustments Unrealized gains on available-for-sale investments Dividend...

  • Page 68
    ... names Best Buy, Best Buy Mobile, Geek Squad, Magnolia Audio Video and Pacific Sales. The International segment is comprised of: (i) all Canada store, online and call center operations, operating under the brand names Best Buy, Best Buy Mobile, Future Shop and Geek Squad and (ii) all Mexico store...

  • Page 69
    ... accounts payable in our Consolidated Balance Sheets. Receivables Receivables consist principally of amounts due from mobile phone network operators for commissions earned; banks for customer credit card, debit card and electronic benefits transfer (EBT) transactions; and vendors for various vendor...

  • Page 70
    ...Earnings. Repairs and maintenance costs are charged directly to expense as incurred. Major renewals or replacements that substantially extend the useful life of an asset are capitalized and depreciated. Costs associated with the acquisition or development of software for internal use are capitalized...

  • Page 71
    ... for which discrete financial information is available and is regularly reviewed by segment management. No components were aggregated in arriving at our reporting units. Our only reporting unit with a goodwill balance at the beginning of fiscal 2015 was Best Buy Domestic. Our detailed impairment...

  • Page 72
    ... and customer relationships within intangibles, net in our Consolidated Balance Sheets. We have an indefinite-lived tradename related to Pacific Sales included within our Domestic segment. We also have an indefinite-lived tradename related to Future Shop included within our International segment...

  • Page 73
    ... more information becomes available. We include our liability for unrecognized tax benefits, including accrued penalties and interest, in accrued income taxes and long-term liabilities on our Consolidated Balance Sheets and in income tax expense in our Consolidated Statements of Earnings. Accrued...

  • Page 74
    ... 2013 Gift card breakage income Credit Services and Financing $ 19 $ 53 $ 46 In the U.S., we have an agreement with a bank for the issuance of promotional financing and customer loyalty credit cards bearing the Best Buy brand. Under the agreement, the bank manages and directly extends credit...

  • Page 75
    ...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...

  • Page 76
    ... 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...

  • Page 77
    ...January 31, 2015 Cash and cash equivalents Merchandise inventories Other current assets Net property and equipment Other assets Total assets Accounts payable Other current liabilities Long-term liabilities Total liabilities $ $ $ 194 264 226 130 37 851 452 133 18 603 $ Best Buy Europe - During...

  • Page 78
    ...(Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value at January 31, 2015 Assets Cash and cash equivalents Money market funds Corporate bonds Commercial paper Short-term investments Corporate bonds Commercial paper Other current assets Foreign...

  • Page 79
    ... Inputs (Level 3) Fair Value at February 1, 2014 Assets Cash and cash equivalents Money market funds Commercial paper Treasury bills Short-term investments Commercial paper Other current assets Foreign currency derivative instruments Other assets Auction rate securities Marketable securities that...

  • Page 80
    ... at fair value using quoted market prices. They were classified as Level 1 as they trade in an active market for which closing stock prices are readily available. Marketable Securities that Fund Deferred Compensation. The assets that fund our deferred compensation consist of investments in mutual...

  • Page 81
    ...cost are not readily available, but we estimate that the carrying values for these investments approximate fair value. See Note 5, Debt, for information about the fair value of our long-term debt. 4. Restructuring Charges Summary Restructuring charges incurred in fiscal 2015, 2014 and 2013 (11-month...

  • Page 82
    ... 2015 and 2014 related to termination benefits and facility closure and other costs associated with this program ($ in millions): Termination Benefits Facility Closure and Other Costs Total Balance at February 2, 2013 Charges Cash payments Adjustments(1) Balance at February 1, 2014 Charges Cash...

  • Page 83
    ... primarily related to property and equipment impairments and employee termination benefits. The actions within our Domestic segment included a decision to modify our strategy for certain mobile broadband offerings. In our International segment, we closed our large-format Best Buy branded stores in...

  • Page 84
    ... 2015 and 2014 related to termination benefits and facility closure and other costs associated with these programs ($ in millions): Termination Benefits Facility Closure and Other Costs Total Balance at February 2, 2013 Charges Cash payments Adjustments(1) Changes in foreign currency exchange...

  • Page 85
    ..., payable semi-annually on February 1 and August 1 of each year, beginning on February 1, 2014. Net proceeds from the sale of the 2018 Notes were $495 million, after underwriting and issue discounts totaling $5 million. We may redeem some or all of the 2018 Notes at any time, at a redemption price...

  • Page 86
    ... the volatility of net earnings, cash flows and net asset value associated with changes in foreign currency exchange rates and interest rates. We do not hold derivative instruments for trading or speculative purposes. We have no derivatives that have credit risk-related contingent features, and...

  • Page 87
    ... Board of Directors at the time of grant. Awards granted, forfeited or canceled under the previous plan, the 2004 Omnibus Stock and Incentive Plan, after February 1, 2014 adjust the amount available under the Omnibus Plan. At January 31, 2015, a total of 22.7 million shares were available for future...

  • Page 88
    ...pursuant to these plans. Stock-based compensation expense was as follows in fiscal 2015, 2014 and 2013 (11-month) ($ in millions): 12-Month 2015 12-Month 2014 11-Month 2013 Stock options Share awards Market-based Time-based Employee stock purchase plans Total Stock Options Stock option activity was...

  • Page 89
    ... based on the closing market price of our stock on the date of grant. This value is reduced by the present value of expected dividends during vesting when the employee is not entitled to dividends. A summary of the status of our nonvested time-based share awards at January 31, 2015, and changes...

  • Page 90
    ...Month 2015 12-Month 2014 11-Month 2013(1) Numerator (in millions): Net earnings (loss) from continuing operations attributable to Best Buy Co., Inc., shareholders, diluted Denominator (in millions): $ 1,246 $ 695 342.1 5.5 347.6 $ (259) 338.6 - 338.6 Weighted-average common shares outstanding...

  • Page 91
    ... comprehensive income, net of tax, attributable to Best Buy Co., Inc. shareholders for fiscal 2015, 2014, and 2013 (11-month), respectively ($ in millions): Foreign Currency Translation Available-For-Sale Investments Total Balances at March 3, 2012 Adjustment for fiscal year-end change Balances at...

  • Page 92
    ...immediately. The total employer contributions were $60 million, $65 million and $62 million in fiscal 2015, 2014 and 2013 (11-month), respectively. We have a non-qualified, unfunded deferred compensation plan for highly compensated employees and members of our Board of Directors. Amounts contributed...

  • Page 93
    ... 2012, we purchased CPW's interest in the Best Buy Mobile profit share agreement for $1.3 billion (the "Mobile buy-out"). The Mobile buy-out completed by our U.K. subsidiary resulted in the $1.3 billion purchase price being assigned, for U.S. tax purposes only, to an intangible asset. The Mobile buy...

  • Page 94
    ... expenses Deferred revenue Compensation and benefits Stock-based compensation Goodwill and intangibles Loss and credit carryforwards Other Total deferred tax assets Valuation allowance Total deferred tax assets after valuation allowance Property and equipment Goodwill and intangibles Inventory...

  • Page 95
    ...payable if such earnings were not indefinitely reinvested. The following table provides a reconciliation of changes in unrecognized tax benefits for fiscal 2015, 2014 and 2013 (11month) ($ in millions): 12-Month 2015 12-Month 2014 11-Month 2013 Balance at beginning of period Gross increases related...

  • Page 96
    ... resources and assessing performance within their respective segments. Our CODM relies on internal management reporting that analyzes enterprise results to the net earnings level and segment results to the operating income level. We aggregate our Canada and Mexico businesses into one International...

  • Page 97
    ...Total operating income Other income (expense) Gain on sale of investments Investment income and other Interest expense Earnings from continuing operations before income tax expense Assets(2) Domestic International Total assets Capital expenditures(2) Domestic International Total capital expenditures...

  • Page 98
    ...presents our geographic information in fiscal 2015, 2014 and 2013 (11-month) ($ in millions): 12-Month 2015 12-Month 2014 11-Month 2013 Net sales to customers United States Canada Other Total revenue Long-lived assets United States Europe Canada China Other Total long-lived assets 12. Contingencies...

  • Page 99
    ... projections and, for certain directors, selling stock while in possession of material adverse non-public information. Additionally, in July 2011, a similar purported class action was filed by a single shareholder, Daniel Himmel, against us and certain of our executive officers in the same court...

  • Page 100
    ... increase in our regular quarterly dividend to $0.23 per share. We plan to resume share repurchases under the June 2011 program, with the intent to repurchase $1 billion in shares over the next three years. In March 2015, we made a decision to consolidate Future Shop and Best Buy stores and websites...

  • Page 101
    ... revenue from stores, websites and call centers operating for at least 14 full months, as well as revenue related to certain other comparable sales channels for a particular period to a corresponding period in the prior year. Relocated, as well as remodeled, expanded and downsized stores closed more...

  • Page 102
    ...summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer (principal executive officer) and Chief Financial Officer (principal financial officer), to allow...

  • Page 103
    ... principal financial officer and our principal accounting officer. Our Code of Business Ethics is available on our website, www.investors.bestbuy.com. A copy of our Code of Business Ethics may also be obtained, without charge, upon written request to Best Buy Co., Inc. Investor Relations Department...

  • Page 104
    ... Under Equity Compensation Plans" included in Part II of this Annual Report on Form 10-K. Security Ownership of Certain Beneficial Owners and Management The information provided under the caption "Security Ownership of Certain Beneficial Owners and Management" in the Proxy Statement is incorporated...

  • Page 105
    ...Stock and Incentive Plan, as amended Best Buy Co., Inc. Short Term Incentive Plan, as approved by the Board of Directors 2010 Long-Term Incentive Program Award Agreement, as approved by the Board of Directors Best Buy Co., Inc. Performance Share Award Agreement dated August 5, 2008 Form of Long-Term...

  • Page 106
    ... financial information from our Annual Report on Form 10-K for fiscal 2015, filed with the SEC on March 31, 2015, formatted in Extensible Business Reporting Language (XBRL): (i) the consolidated balance sheets at January 31, 2015 and February 1, 2014, (ii) the consolidated statements of earnings...

  • Page 107
    ... by the undersigned, thereunto duly authorized. Best Buy Co., Inc. (Registrant) By: /s/ Hubert Joly Hubert Joly President and Chief Executive Officer March 31, 2015 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on...

  • Page 108
    ... of Period Charged to Expenses or Other Accounts Other(1) Balance at End of Period Year ended January 31, 2015 Allowance for doubtful accounts Year ended February 1, 2014 Allowance for doubtful accounts Year ended February 2, 2013 Allowance for doubtful accounts (1) $ $ $ 104 92 72 $ $ $ 1 76...

  • Page 109

  • Page 110
    ... with, the GAAP financial measures presented. The non-GAAP financial measures in the accompanying news release may differ from similar measures used by other companies. The following tables reconcile operating income as a % of revenue and diluted earnings per share for the periods presented...

  • Page 111
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