Best Buy 2016 Annual Report Download

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FISCAL 2016
ANNUAL REPORT

Table of contents

  • Page 1
    FISCAL 2016 ANNUAL REPORT

  • Page 2

  • Page 3
    ... however they prefer, we grew online domestic revenue 13% to more than $4 billion, or 11% of total domestic revenue. This growth was fueled, in part, by a meaningfully improved website and the launch of the enhanced Best Buy app that has consistently earned higher customer reviews than most, if not...

  • Page 4
    ... 380 Sony home theater stores-within-a-store; 225 Samsung Open House appliance experiences; 814 Windows stores; and 249 AT&T and Verizon mobile shops within our big box stores. This collaboration with key vendors is one of the ways we showcase for our customers the latest and greatest technology in...

  • Page 5
    ... billion in share repurchases, originally planned to be completed over three years. We also increased our dividend and gave shareholders a one-time dividend payment associated with a favorable legal settlement. As we laid out in our Q4 FY16 earnings call, our long-term capital allocation strategy is...

  • Page 6
    ... product cycles and, ultimately, increase our profitability over time. One example of this cost reduction and efficiency work is our project to reduce the number of open-box appliances we take back into our stores. This effort has the potential to improve the customer experience by changing the way...

  • Page 7
    ...we had to spend time over the last two years fixing many aspects of our traditional warranty and repair businesses, including our pricing. We are seeing the results of our efforts through substantially higher Net Promoter Scores, an increased number of total customer interactions and improved attach...

  • Page 8
    ...: 2016 is a special year in the history of Best Buy, as it marks our 50th anniversary. From our humble beginnings as a single "Sound of Music" store in St. Paul, Minnesota, we have grown to be a specialty retailer that has a strong legacy of innovation, ranging from non-commissioned sales associates...

  • Page 9
    ... by reference to the price of $32.29 per share, the price at which the common equity was last sold on August 1, 2015, as reported on the New York Stock Exchange-Composite Index. (For purposes of this calculation all of the registrant's directors and executive officers are deemed affiliates of...

  • Page 10
    ...") are incorporated by reference into Part III. The Proxy Statement will be filed with the U.S. Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates. CAUTIONARY STATEMENT PURSUANT TO THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995...

  • Page 11
    ... About Market Risk. Financial Statements and Supplementary Data. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure. Controls and Procedures. Other Information. Directors, Executive Officers and Corporate Governance. Executive Compensation. Security Ownership...

  • Page 12
    ... support retail teams. Our retail stores have procedures for inventory management, asset protection, transaction processing, customer relations, store administration, product sales and services, staff training and merchandise display that are largely standardized within each store brand. All stores...

  • Page 13
    ... and small appliances (for example, coffee makers, blenders, etc.); Services - consultation, design, delivery, installation, set-up, protection plans, repair, technical support and educational classes; and Other - snacks, beverages and other sundry items. Distribution Domestic Segment U.S. Best Buy...

  • Page 14
    ..., integrated online and retail assets, broad product assortment, strong vendor relationships, range of focused service and support offerings, distinct store formats, brand marketing strategies and supply chain are important ways in which we maintain this advantage. Environmental Matters Best Buy is...

  • Page 15
    ...") and its rules and regulations. The Exchange Act requires us to file reports, proxy statements and other information with the U.S. Securities and Exchange Commission ("SEC"). We make available, free of charge on our website, our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current...

  • Page 16
    ... terms covering returns and factory warranties. To varying degrees, our vendors may be able to leverage their competitive advantages -- for example, their financial strength, the strength of their brand with customers, their own stores or online channels or their relationships with other retailers...

  • Page 17
    ...for example increased labor expense to fulfill our customer promises, which may be higher than the related revenue; unpredictable warranty failure rates and related expenses; employees in transit using company vehicles to visit customer locations and employees being present in customer homes; these...

  • Page 18
    ..., decreases in gift card and service plan sales, lower employee retention and productivity, vendor relationship issues and other factors, all of which could materially affect our revenue and profitability. Our success is dependent on the design and execution of appropriate business strategies. We...

  • Page 19
    ...network of service locations. If we fail to effectively evaluate these factors, fail to negotiate terms which keep us market competitive, or if unforeseen changes arise, the consequences could include, for example having to close stores and abandon the related assets, while retaining the financial...

  • Page 20
    ... businesses that we acquire, including their personnel, financial systems, distribution, operations and general operating procedures, or we may encounter challenges in achieving appropriate internal control over financial reporting. Failure to effectively integrate and manage strategic ventures...

  • Page 21
    ... our supply chain could increase the cost of doing business and, depending on the findings of our country of origin inquiry, could have an adverse effect on our reputation. • Maintaining consistent quality, availability and competitive pricing of our exclusive brands products helps us build...

  • Page 22
    ... as a way to generate incremental revenue of products and services from customers who prefer the financing terms to other available forms of payment. Approximately 21% of our fiscal 2016 revenue was transacted using one of the company's branded cards. In addition, we earn profit-share income from...

  • Page 23
    ... loyalty credit cards, gift cards, customer warranty, technical support and insurance programs. Any material disruption in our relationship with key third-party business partners or any disruption in the services or systems provided or managed by third parties could impact our revenues and cost...

  • Page 24
    ... 2. Properties. Stores, Distribution Centers and Corporate Facilities Domestic Segment The following table summarizes the location and total square footage of our Domestic segment stores at the end of fiscal 2016: U.S. Best Buy Stores Alabama Alaska Arizona Arkansas California Colorado Connecticut...

  • Page 25
    ...Best Buy Mobile Stand Alone Stores - - 350 Pacific Sales Stores - - 28 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 Domestic segment at the end of fiscal 2016: Location...

  • Page 26
    ... 2016: Canada Best Buy Stores Owned store locations Leased store locations 3 133 Best Buy Mobile Stores - 56 Best Buy Stores - 18 Mexico Best Buy Express Stores - 6 The following table summarizes the location, ownership status and total square footage of space for distribution centers and corporate...

  • Page 27
    ... and Chief Financial Officer in December 2012. In this role, she leads our global finance, information technology, information security, supply chain, logistics, real estate, procurement, enterprise customer care, pricing, and internal audit functions, as well as our Mexico operations. Ms...

  • Page 28
    ...retail and management experience to build actionable business plans that drive business growth, profitability, market share gains, increased employee and customer satisfaction for Best Buy. Specifically, Mr. Mohan oversees all category strategy, merchandising, purchasing, vendor relations, financial...

  • Page 29
    ...leading online travel companies from 2009 to 2012, and before that held other marketing roles from 2005 to 2009. He also was an investment banker at Credit Suisse from 2000 to 2003. Mathew R. Watson has served as Best Buy's Vice President, Controller and Chief Accounting Officer since April 2015. Mr...

  • Page 30
    ... fiscal 2017. Future dividend payments will depend on our earnings, capital requirements, financial condition and other factors considered relevant by our Board. The table below sets forth the high and low sales prices of our common stock as reported on the New York Stock Exchange - Composite Index...

  • Page 31
    ... Data, of this Annual Report on Form 10-K. Securities Authorized for Issuance Under Equity Compensation Plans The following table provides information about our common stock that may be issued under our equity compensation plans as of January 30, 2016: Securities Available for Future Issuance Under...

  • Page 32
    ... sector of the S&P 500. The graph assumes an investment of $100 at the close of trading on February 25, 2011, the last trading day of fiscal 2011, 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 33
    ... 8, Financial Statements and Supplementary Data, of this Annual Report on Form 10-K. Five-Year Financial Highlights $ in millions, except per share amounts 12-Month Fiscal Year 2016 (1) 11-Month 2014 (4) 12-Month 2012(5)(7) 2015 (2) 2013 (5)(6) Consolidated Statements of Earnings Data Revenue...

  • Page 34
    ... share-based management fee paid to Best Buy Europe pursuant to the 2007 Best Buy Mobile agreement (which represents earnings attributable to the noncontrolling interest). Our comparable sales calculation compares revenue from stores, websites and call centers operating for at least 14 full months...

  • Page 35
    ... revenue from discontinued operations and the effect of fluctuations in foreign currency exchange rates (applicable to our International segment only). The Canadian brand consolidation, which includes the permanent closure of 66 Future Shop stores, the conversion of 65 Future Shop stores to Best Buy...

  • Page 36
    ...(2) driving cost reduction and efficiencies; and (3) advancing key initiatives to drive future growth and differentiation. Our first priority is to build on our strong industry position and multi-channel capabilities to drive the existing business. More specifically, we plan to implement a number of...

  • Page 37
    ... sharing benefits from our services plan portfolio that we earned in fiscal 2016. A key element to achieve this will be the delivery of our cost reduction and gross profit optimization initiatives. In addition, we intend to reward our shareholders by being a premium dividend payer and increasing...

  • Page 38
    ... segment and Best Buy Europe and Five Star in our International segment are presented as discontinued operations in our Consolidated Statements of Earnings. Unless otherwise stated, financial results discussed herein refer to continuing operations. Domestic Segment Installment Billing Plans In April...

  • Page 39
    ... of net store opening and closing activity, including the Canadian brand consolidation activity, as well as, the impact of revenue streams not included within our comparable sales calculation, such as profit sharing benefits, certain credit card revenue, gift card breakage and sales of merchandise...

  • Page 40
    ... included within our comparable sales calculation, such as certain credit card revenue, gift card breakage and sales of merchandise to wholesalers and dealers, as applicable. Our gross profit rate decreased 0.7% of revenue in fiscal 2015. Our Domestic and International segments contributed a rate...

  • Page 41
    ... of our stores leases, we evaluate various options for each location, including whether a store should remain open. Fiscal 2016 Results Compared With Fiscal 2015 We offer extended protection plans that are managed by third party insurers. We may also be eligible to receive profit-sharing payments...

  • Page 42
    ... sales(1) Total revenue increase (1) Non-comparable sales reflects the impact of net store opening and closing activity, as well as the impact of revenue streams not included within our comparable sales calculation, such as profit sharing benefits, credit card revenue, gift card breakage, commercial...

  • Page 43
    ... (6) positive revenue impact related to our credit card portfolio. These increases were partially offset by (1) lower rates related to large appliances; (2) a lower rate in the mobile category driven by increased sales of higher priced iconic mobile phones, which have higher gross profit dollars but...

  • Page 44
    ...2015 due to effective promotions, the addition of appliance specialists in select stores and the positive impact of Pacific Kitchen & Home store-within-a-store concepts. Services: The 11.1% comparable sales decline was primarily due to lower mobile repair revenue and lower sales of extended warranty...

  • Page 45
    ... the remaining 65 Future Shop stores to the Best Buy brand. The costs of implementing these changes primarily consisted of lease exit costs, a tradename impairment, property and equipment impairments, employee termination benefits and inventory write-downs. In fiscal 2016, we incurred total pre-tax...

  • Page 46
    ... fiscal 2016 from 22.2% of revenue in fiscal 2015. The decrease in SG&A expense was driven by the elimination of expenses associated with closed stores as part of the Canadian brand consolidation. The increase in the SG&A rate was driven by year-over-year sales deleverage. Our International segment...

  • Page 47
    ... as certain credit card revenue, gift card breakage and sales of merchandise to wholesalers and dealers, as applicable. The net closure of large-format stores in Canada contributed to the decrease in revenue associated with net store changes in our International segment in fiscal 2015. The addition...

  • Page 48
    ... discrete benefit related to reorganizing certain European legal entities, partially offset by an increase in pre-tax earnings in the current-year period. Our ETR was 10.1% in fiscal 2015, compared to 35.8% in fiscal 2014. Our consolidated ETR is impacted by the statutory income tax rates applicable...

  • Page 49
    ... of other Canada brand consolidation charges - SG&A(2) Per share impact of non-restructuring asset impairments - SG&A Per share impact of restructuring charges Per share impact of (gain) loss on sale of investments Per share income tax impact of Best Buy Europe sale(5) Per share income tax effect of...

  • Page 50
    ... 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...

  • Page 51
    .... 12.1 of this Annual Report on Form 10-K, was 5.16 and 5.08 in fiscal 2016 and fiscal 2015, respectively. Our credit ratings and outlooks at March 21, 2016, are summarized below. On August 15, 2015, Standard & Poor's Rating Services ("Standard & Poor's") upgraded its long-term credit rating from BB...

  • Page 52
    ...2016, we invested $649 million in property and equipment, primarily related to upgrading our information technology systems and capabilities, and store-related projects. The following table presents our capital expenditures for each of the past three fiscal years ($ in millions): 2016 2015 2014 New...

  • Page 53
    ... including stock options 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...

  • Page 54
    ... activity for the 12 months ended January 30, 2016 and January 31, 2015. The multiple of eight times annual rental expense in the calculation of our capitalized operating lease obligations is the multiple used for the retail sector by one of the nationally recognized credit rating agencies that rate...

  • Page 55
    ... 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 prepared. On a regular basis, we review the accounting policies, assumptions...

  • Page 56
    ... reviews at other levels as appropriate. For example, a shared asset such as a distribution center would be evaluated by reference to the aggregate assets and projected cash flows of all areas of the businesses utilizing those shared assets. Our impairment loss calculations require management...

  • Page 57
    ... because they require management to make assumptions and to apply judgment regarding the effects of future events. Returns - We recognize revenue, net of estimated returns, at the time the customer takes possession of merchandise or receives services. We estimate the liability for sales returns with...

  • Page 58
    ...that could be material. Customer Loyalty Programs - We have customer loyalty programs which allow members to earn points for each purchase completed or when using our co-branded credit cards. Points earned enable members to receive a certificate that may be redeemed on future purchases. The value of...

  • 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
    ... adequate internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act). Our internal control over financial reporting is designed under the supervision of our principal executive officer and principal financial officer, and effected by our Board, management and...

  • Page 61
    ... To the Board of Directors and Shareholders of Best Buy Co., Inc. Richfield, Minnesota We have audited the accompanying consolidated balance sheets of Best Buy Co., Inc. and subsidiaries (the "Company") as of January 30, 2016 and January 31, 2015 and the related consolidated statements of earnings...

  • Page 62
    ... or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements. Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper management...

  • Page 63
    ...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 debt Current liabilities held for sale Total...

  • Page 64
    Consolidated Statements of Earnings $ in millions, except per share amounts Fiscal Years Ended January 30, 2016 January 31, 2015 February 1, 2014 Revenue Cost of goods sold Restructuring charges - cost of goods sold Gross profit Selling, general and administrative expenses Restructuring charges ...

  • Page 65
    ...) losses on available-for-sale investments into earnings Comprehensive income including noncontrolling interests Comprehensive income attributable to noncontrolling interests Comprehensive income attributable to Best Buy Co., Inc. shareholders See Notes to Consolidated Financial Statements. $ 897...

  • Page 66
    ... Additions to property and equipment, net of $92, $14 and $13 of noncash capital expenditures Purchases of investments Sales of investments Proceeds from sale of business, net of cash transferred Change in restricted assets Other, net Total cash used in investing activities Financing Activities...

  • Page 67
    ... of gains on available-forsale investments into earnings Issuance of common stock under employee stock purchase plan Stock-based compensation Restricted stock vested and stock options exercised Common stock dividends, $0.72 per share Balances at January 31, 2015 Net earnings Other comprehensive loss...

  • Page 68
    ... Home Theater and Pacific Kitchen and Home. The International segment is comprised of all operations in Canada and Mexico under the brand names Best Buy, bestbuy.com.ca, bestbuy.com.mx, Best Buy Express, Best Buy Mobile and Geek Squad. Basis of Presentation The consolidated financial statements...

  • Page 69
    ... standards for fiscal 2015: ASU 2015-03 & 2015-15 Adjustments ASU 2015-17 Adjustments Balance Sheet 2015 Reported 2015 Adjusted Other current assets Current assets held for sale Other assets Total assets Long-term debt Long-term liabilities held for sale Total liabilities & equity Cash and Cash...

  • Page 70
    ... Statements of 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...

  • Page 71
    ... reviews at other levels as appropriate, for example, to evaluate potential impairment of assets shared by several areas of operations, such as information technology systems. Refer to Note 3, Fair Value Measurements, for further information associated with the long-lived assets impairments...

  • Page 72
    ...tradenames 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. As of the end of fiscal 2016, we have no indefinite-lived tradenames within our International segment...

  • Page 73
    ... of the sale of Best Buy Europe in fiscal 2014. Primarily represents the Five Star indefinite-lived tradenames classified as held for sale at January 31, 2015. Represents the Future Shop tradename impaired as a result of the Canada brand restructuring in the first quarter of fiscal 2016. See Note...

  • Page 74
    ... compensation plan liabilities, self-insurance reserves and deferred revenue. Foreign Currency Foreign currency denominated assets and liabilities are translated into U.S. dollars using the exchange rates in effect at our consolidated balance sheet date. For operations reported on a one-month...

  • Page 75
    ... and $53 million in fiscal 2016, 2015 and 2014, respectively. Sales Incentives We frequently offer sales incentives that entitle our customers to receive a gift card at time of purchase or a reduction in the price of a product or service either at the point of sale or by submitting a claim for...

  • Page 76
    ... related to retail, services and corporate assets; Advertising costs; Vendor allowances that are a reimbursement of specific, incremental and identifiable costs to promote a vendor's products; Tender costs, including bank charges and costs associated with credit and debit card interchange...

  • Page 77
    .... Following the sale of Five Star, we continue to hold one retail property in Shanghai, China, which remains held for sale at January 30, 2016, as we continue to actively market the property. The assets of this property are classified as held for sale in the Consolidated Balance Sheets and were...

  • Page 78
    ... the impairment of our investment in Best Buy Europe. The sale of mindSHIFT, restructuring charges and impairment generally included no related tax benefit. The deferred tax assets related to the sale of mindSHIFT and restructuring charges generally resulted in an increase in the valuation allowance...

  • Page 79
    ... Bonds. Our corporate bond investments were measured at fair value using quoted market prices. They were classified as Level 2 as they trade in a non-active market for which bond prices are readily available. Commercial Paper. Our investments in commercial paper were measured using inputs based upon...

  • Page 80
    ...instruments are custom, over-the-counter contracts with various bank counterparties that are not traded in an active market. Auction Rate Securities. Our investments in auction rate securities ("ARS") were classified as Level 3 as quoted prices were unavailable. Due to limited market information, we...

  • Page 81
    ... and equipment impairments and employee termination benefits. Canadian Brand Consolidation In the first quarter of fiscal 2016, we consolidated the Future Shop and Best Buy stores and websites in Canada under the Best Buy brand. This resulted in the permanent closure of 66 Future Shop stores and...

  • Page 82
    ... accrual activity during the fiscal 2016, related to termination benefits and facility closure and other costs associated with Canadian brand consolidation ($ in millions): Termination Benefits Facility Closure and Other Costs Total Balances at January 31, 2015 Charges Cash payments Adjustments...

  • Page 83
    ...summarizes our restructuring accrual activity during fiscal 2016 and 2015 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 1, 2014 Charges Cash payments...

  • Page 84
    ...issuance costs Financing lease obligations Capital lease obligations Total long-term debt Less: current portion Total long-term debt, less current portion 2018 Notes $ 350 $ 500 650 25 - 1,525 (7) 178 38 1,734 (395) 350 500 650 1 1 1,502 (10) 69 52 1,613 (41) $ 1,339 $ 1,572 On July 16, 2013...

  • Page 85
    ... costs and financing and capital lease obligations (see Note 8, Leases, for the future lease obligation maturities), consisted of the following ($ in millions): Fiscal Year 2017 2018 2019 2020 2021 Thereafter Total long-term debt 6. Derivative Instruments $ $ 350 - 517 - - 658 1,525 We manage...

  • Page 86
    ... in other assets or long-term liabilities. $ $ 15 $ 25 3 43 $ 1 - - 1 $ $ 19 $ 1 11 31 $ - - - - The following table presents the effects of derivative instruments on Other Comprehensive Income ("OCI") and on our Consolidated Statements of Earnings for fiscal 2016 and 2015: 2016 Pre-tax...

  • Page 87
    ... options under the Omnibus Plan. Under the terms of the Omnibus Plan, awards may be granted to our employees, officers, advisers, consultants and directors. Awards issued under the Omnibus Plan vest as determined by the Compensation and Human Resources Committee of our Board of Directors at the time...

  • Page 88
    2016 2015 2014 Stock options Share awards Market-based Time-based Employee stock purchase plans Total Stock Options Stock option activity was as follows in fiscal 2016: $ 15 16 73 - 104 $ 17 10 60 - 87 $ 25 9 62 1 97 $ $ $ Stock Options Weighted-Average Exercise Price per Share ...

  • 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 30, 2016, and changes...

  • Page 90
    ... Effect of potentially dilutive securities: Stock options and other Weighted-average common shares outstanding, assuming dilution Net earnings per share from continuing operations attributable to Best Buy Co., Inc. shareholders Basic Diluted Repurchase of Common Stock In June 2011, our Board...

  • Page 91
    ... income, net of tax, attributable to Best Buy Co., Inc. shareholders for fiscal 2016, 2015, and 2014, respectively ($ in millions): Foreign Currency Translation Available-For-Sale Investments Total Balances at February 2, 2013 Foreign currency translation adjustments Unrealized gains on...

  • Page 92
    ... and members of our Board of Directors. Amounts contributed and deferred under our deferred compensation plan are credited or charged with the performance of investment options offered under the plan and elected by the participants. In the event of bankruptcy, the assets of the plan are available to...

  • 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
    ... early adopted ASU 2015-17, which requires that all deferred taxes be presented as non-current on the Consolidated Balance Sheet. Refer to Note 1, Summary of Significant Accounting Policies, for further information regarding this balance sheet reclassification. At January 30, 2016, we had total net...

  • Page 95
    ... such earnings were not indefinitely reinvested. The following table provides a reconciliation of changes in unrecognized tax benefits for fiscal 2016, 2015 and 2014 ($ in millions): 2016 2015 2014 Balance at beginning of period Gross increases related to prior period tax positions Gross decreases...

  • Page 96
    ... segment results to the operating income level. We aggregate our Canada and Mexico businesses into one International operating segment. Our Domestic and International operating segments also represent our reportable segments. The accounting policies of the segments are the same as those described in...

  • Page 97
    ...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. For fiscal 2015 and 2014, the International segment amounts for assets, capital expenditures and depreciation...

  • Page 98
    ... information in fiscal 2016, 2015 and 2014 ($ in millions): 2016 2015 2014 Net sales to customers United States Canada Other Total revenue Long-lived assets United States Canada China Other Total long-lived assets 12. Contingencies and Commitments Contingencies We are involved in a number of legal...

  • Page 99
    ... to have a material effect on our consolidated financial position, results of operations or cash flows. Commitments We engage Accenture LLP ("Accenture") to assist us with improving our operational capabilities and reducing our costs in the information systems and human resources areas. Our contract...

  • Page 100
    ...47 (0.01) 1.46 $ $ 3.53 (0.04) 3.49 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 for a particular period to a corresponding period in the prior...

  • Page 101
    ... ended January 31, 2015 related to measures we took to restructure our businesses. Represents comparable sales excluding the estimated revenue of installment billing. Enterprise comparable sales for fiscal 2015 include revenue from continuing operations in the International segment. Excluding the...

  • Page 102
    ... disclosure controls and procedures that are designed to ensure that information required to be disclosed by us in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such...

  • 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 is furnished as a separate item captioned "Securities Authorized for Issuance 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...

  • Page 105
    ...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 Form of Long-Term Incentive Program Buy-Out Award Agreement dated September 4, 2012, between Hubert Joly and Best Buy Co., Inc. Form of Best Buy Co...

  • Page 106
    ... financial information from our Annual Report on Form 10-K for fiscal 2016, filed with the SEC on March 23, 2016, formatted in Extensible Business Reporting Language (XBRL): (i) the consolidated balance sheets at January 30, 2016 and January 31, 2015, (ii) the consolidated statements of earnings...

  • Page 107
    ... documents filed as exhibits to this report are not intended to provide factual information or other disclosure other than with respect to the terms of the agreements or other documents themselves, and you should not rely on them for that purpose. In particular, any representations and warranties...

  • Page 108
    ...by the undersigned, thereunto duly authorized. Best Buy Co., Inc. (Registrant) By: /s/ Hubert Joly Hubert Joly Chairman and Chief Executive Officer March 23, 2016 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf...

  • Page 109
    ...of Period Charged to Expenses or Other Accounts Other(1) Balance at End of Period Year ended January 30, 2016 Allowance for doubtful accounts Year ended January 31, 2015 Allowance for doubtful accounts Year ended February 1, 2014 Allowance for doubtful accounts (1) $ $ $ 59 104 92 $ $ $ 30 1 76...

  • Page 110
    ...,365 $36,365 0.9% 0.9% Best Buy Co., Inc. Non-GAAP Reconciliation (Unaudited and subject to reclassification) The following information provides reconciliations of non-GAAP financial measures to the most comparable financial measures calculated and presented in accordance with accounting principles...

  • Page 111
    ... The calculations of return on invested capital and return on assets use total operations, which includes both continuing and discontinued operations. (2) Income statement accounts represent the activity for the 12 months ended as of each of the balance sheet dates. Balance sheet accounts represent...

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