Best Buy 2015 Annual Report Download - page 49

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Table of Contents
42
year-over-year increase in non-GAAP net earnings from continuing operations and non-GAAP diluted earnings per share from
continuing operations in 2015 compared to the prior-year period.
In 2014, non-GAAP operating income decreased $311 million compared to 2013. The decrease in non-GAAP operating income
was primarily driven by the extra week of operations in 2013 and a decrease in the gross profit rate (adjusted to exclude LCD-
related legal settlements in the second quarter of 2014). This decrease was partially offset by lower SG&A spending due to the
realization of Renew Blue cost reduction initiatives and tighter expense management in both the Domestic and International
segments. These same factors contributed to the year-over-year decreases in non-GAAP net earnings from continuing
operations and non-GAAP diluted earnings per share from continuing operations in 2014 compared to the prior-year period.
Liquidity and Capital Resources
Summary
We closely manage our liquidity and capital resources. Our liquidity requirements depend on key variables, including the level
of investment required to support our business strategies, the performance of our business, capital expenditures, credit facilities
and short-term borrowing arrangements and working capital management. Capital expenditures are a component of our cash
flow and capital management strategy which, to a large extent, we can adjust in response to economic and other changes in our
business environment. We have a disciplined approach to capital allocation, which focuses on investing in key priorities that
support our Renew Blue transformation.
The following table summarizes our cash and cash equivalents and short-term investments at January 31, 2015 and February 1,
2014 ($ in millions):
January 31, 2015 February 1, 2014
Cash and cash equivalents $ 2,432 $ 2,678
Short-term investments 1,456 223
Total cash and cash equivalents and short-term investments $ 3,888 $ 2,901
The increase in cash and cash equivalents from February 1, 2014, was primarily due to cash generated from operating
activities, partially offset by capital expenditures and dividend payments.
Working capital, the excess of current assets over current liabilities, was $4.0 billion at January 31, 2015, an increase from
$3.0 billion at February 1, 2014.
Cash Flows
The following table summarizes our cash flows from operating, investing and financing activities for each of the past three
fiscal years ($ in millions):
12-Month 12-Month 11-Month
2015 2014 2013
Total cash provided by (used in):
Operating activities $ 1,935 $ 1,094 $ 1,454
Investing activities (1,712)(517)(538)
Financing activities (223) 319 (211)
Effect of exchange rate changes on cash (52)(44)(4)
Increase (decrease) in cash and cash equivalents $ (52) $ 852 $ 701
Operating Activities
The increase in cash provided by operating activities in fiscal 2015 compared to fiscal 2014 was primarily due to improved
management of working capital in fiscal 2015. Additionally, in fiscal 2014 there were larger cash outflows from accounts
payable, following unusually high balances at the end of fiscal 2013 due to timing of inventory receipts and payments.