Best Buy 2015 Annual Report Download - page 48

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Table of Contents
41
The following table reconciles operating income, net earnings and diluted earnings per share for the periods presented from
continuing operations (GAAP financial measures) to non-GAAP operating income, non-GAAP net earnings and non-GAAP
diluted earnings per share from continuing operations (non-GAAP financial measures) for the periods presented ($ in millions,
except per share amounts).
12-Month(1)
2015 2014 2013
(recast)
Operating income $ 1,450 $ 1,144 $ 391
Restructuring charges – cost of goods sold — — 1
Net LCD settlements(2) —(229) —
Non-restructuring asset impairments 42 99 49
Restructuring charges 5 149 420
Goodwill impairments — — 613
Non-GAAP operating income $ 1,497 $ 1,163 $ 1,474
Net earnings (loss) from continuing operations $ 1,246 $ 695 $ (54)
After-tax impact of restructuring charges – cost of goods sold — — 1
After-tax impact of net LCD settlements(2) —(142) —
After-tax impact of non-restructuring asset impairments 28 67 33
After-tax impact of restructuring charges 4 95 271
After-tax impact of goodwill impairments — — 612
After-tax impact of gain on sale of investments (7)(12) —
Income tax impact of Best Buy Europe sale(3) — 18 —
Income tax impact of Europe legal entity reorganization(4) $(353) $ — $ —
Adjusted net earnings from continuing operations $ 918 $ 721 $ 863
Diluted earnings (loss) per share from continuing operations $ 3.53 $ 2.00 $ (0.16)
Per share impact of restructuring charges – cost of goods sold — — —
Per share impact of net LCD settlements(2) —(0.41) —
Per share impact of non-restructuring asset impairments 0.08 0.19 0.10
Per share impact of restructuring charges 0.01 0.28 0.80
Per share impact of goodwill impairments — — 1.80
Per share impact of gain on sale of investments (0.02)(0.04) —
Per share income tax impact of Best Buy Europe sale(3) — 0.05 —
Per share income tax effect of Europe legal entity reorganization(4) (1.00) — —
Adjusted diluted earnings per share from continuing operations $ 2.60 $ 2.07 $ 2.54
(1) The 12-month periods represent: the 12-months ended January 31, 2015 ("2015"); the 12-months ended February 1, 2014 ("2014"); and the recast 12-
months ended February 2, 2013 ("2013"). 2015 and 2014 included 52 weeks, while 2013 included 53 weeks.
(2) Amounts for 2014 exclude the pre-tax impact of $44 million of net proceeds from LCD settlements reached in the first quarter of fiscal 2014, as we did
not adjust for LCD settlements prior to the material settlements reached in the second quarter of fiscal 2014.
(3) Represents the tax impact of the Best Buy Europe sale and resulting required tax allocation between continuing and discontinued operations.
(4) Represents the acceleration of a non-cash tax benefit of $353 million as a result of reorganizing certain European legal entities to simplify our overall
structure in the first quarter of fiscal 2015.
Non-GAAP operating income increased $334 million in 2015 compared to 2014, and non-GAAP operating income as a percent
of revenue increased to 3.7%. The increase in non-GAAP operating income was driven by SG&A cost reductions in both
segments primarily due to the realization of our Renew Blue cost reduction initiatives and tighter expense management,
partially offset by a decline in revenue in our International segment. The increase in non-GAAP operating income resulted in a