Best Buy 2015 Annual Report Download - page 38

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Table of Contents
31
Our gross profit rate decreased 0.7% of revenue in fiscal 2015. Our Domestic and International segments contributed a rate
decrease of 0.6% of revenue and 0.1% of revenue, respectively. For further discussion of each segment's gross profit rate
changes, see Segment Performance Summary, below.
The SG&A rate decreased 1.2% of revenue in fiscal 2015. Our Domestic and International segments contributed a rate decrease
of 1.1% of revenue and 0.1% of revenue, respectively. For further discussion of each segment's SG&A rate changes, see
Segment Performance Summary, below.
We recorded restructuring charges of $149 million in fiscal 2014, comprised of $123 million in our Domestic segment and $26
million in our International segment. These restructuring charges resulted in a decrease in our operating income in fiscal 2014
of 0.4% of revenue. We recorded an immaterial amount of restructuring charges in fiscal 2015. For further discussion of each
segment’s restructuring charges, see Segment Performance Summary, below.
Our operating income increased $306 million, and our operating income as a percent of revenue increased to 3.6% of revenue
in fiscal 2015, compared to operating income of 2.8% of revenue in fiscal 2014. The increase in our operating income was due
to a decrease in SG&A and restructuring charges, partially offset by LCD-related legal settlements in fiscal 2014.
Fiscal 2014 (12-month) Results Compared With Fiscal 2013 (11-month)
For purposes of this section, fiscal 2014 (12-month) represents the 12-month period ended February 1, 2014 and fiscal 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) 7.8 %
Comparable sales impact (0.6)%
Net store changes (0.5)%
Impact of foreign currency exchange rate fluctuations (0.5)%
Total revenue increase 6.2 %
(1) Represents the incremental revenue in fiscal 2014, which had 12 months of activity compared to 11 months in fiscal 2013 as a result of our fiscal year-end
change.
Our gross profit rate decreased 0.5% of revenue in fiscal 2014 (12-month). Our Domestic and International segments
contributed a rate decrease of 0.4% of revenue and 0.1% of revenue, respectively. For further discussion of each segment's
gross profit rate changes, see Segment Performance Summary, below.
The SG&A rate decreased 0.7% of revenue in fiscal 2014 (12-month). Our Domestic and International segments contributed a
rate decrease of 0.6% of revenue and 0.1% of revenue, respectively. For further discussion of each segment's SG&A rate
changes, see Segment Performance Summary, below.
We recorded restructuring charges of $149 million in fiscal 2014 (12-month), comprised of $123 million in our Domestic
segment and $26 million in our International segment. These restructuring charges resulted in a decrease in our operating
income in fiscal 2014 (12-month) of 0.4% of revenue. We recorded $415 million of restructuring charges in fiscal 2013 (11-
month), which included $1 million of inventory write-downs recorded in cost of goods sold. Our Domestic and International
segments recorded $328 million and $87 million of restructuring charges, respectively, in fiscal 2013 (11-month). The
restructuring charges recorded in fiscal 2013 (11-month) resulted in a decrease in our operating income rate of 1.1% of revenue.
For further discussion of each segment’s restructuring charges, see Segment Performance Summary, below.
Our operating income increased $1.1 billion and our operating income as a percent of revenue increased to 2.8% of revenue in
fiscal 2014 (12-month), compared to an operating income of 0.2% of revenue in fiscal 2013 (11-month). The increase in our
operating income was due to a decrease in goodwill impairments and restructuring charges, as well as LCD-related legal
settlements and additional operating income from an extra month of activity in fiscal 2014 (12-month) compared to fiscal 2013
(11-month).