Best Buy 2016 Annual Report Download - page 39

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• Our gross profit rate increased by 0.9% of revenue to 23.3% of revenue in fiscal 2016. The increase was primarily due to a
periodic profit sharing benefit based on performance of our externally-managed extended service plan portfolio and
cathode ray tube and liquid crystal display ("CRT/LCD") related legal settlements received.
• We generated $1.3 billion in operating cash flow in fiscal 2016, compared to $1.9 billion in fiscal 2015, and we ended
fiscal 2016 with $3.3 billion of cash, cash equivalents and short-term investments, compared to $3.9 billion at the end of
fiscal 2015.
• During fiscal 2016, we made four dividend payments totaling $1.43 per share, or $499 million in the aggregate.
The following table presents selected consolidated financial data for each of the past three fiscal years ($ in millions, except per
share amounts):
Consolidated Performance Summary 2016 2015 2014
Revenue $39,528 $40,339 $40,611
Revenue % gain (decline) (2.0)% (0.7)% 6.2 %
Comparable sales % gain (decline)(1) 0.5 % 0.5 % (1.0)%
Comparable sales % gain (decline), excluding estimated impact of installment billing(1)(2) (0.1)% — % (1.0)%
Restructuring charges - cost of goods sold $ 3 $ — $ —
Gross profit $ 9,191 $ 9,047 $ 9,399
Gross profit as a % of revenue(3) 23.3 % 22.4 % 23.1 %
SG&A $ 7,618 $ 7,592 $ 8,106
SG&A as a % of revenue 19.3 % 18.8 % 20.0 %
Restructuring charges $ 198 $ 5 $ 149
Operating income $ 1,375 $ 1,450 $ 1,144
Operating income as a % of revenue 3.5 % 3.6 % 2.8 %
Net earnings from continuing operations $ 807 $ 1,246 $ 695
Gain (loss) from discontinued operations(4) $ 90 $ (13) $ (163)
Net earnings attributable to Best Buy Co., Inc. shareholders $ 897 $ 1,233 $ 532
Diluted earnings per share from continuing operations $ 2.30 $ 3.53 $ 2.00
Diluted earnings per share $ 2.56 $ 3.49 $ 1.53
(1) Enterprise comparable sales for fiscal 2015 and fiscal 2014 includes revenue from continuing operations in the the International segment. Excluding the
International segment, Enterprise comparable sales for fiscal 2015 and fiscal 2014, excluding the impact of installment billing, would have been 0.5% and
(0.4%), respectively, or equal to Domestic comparable sales excluding the impact of installment billing, for the same period.
(2) Represents comparable sales excluding the estimated revenue benefit from installment billing.
(3) Because retailers vary in how they record costs of operating their supply chain between cost of goods sold and SG&A, our gross profit rate and SG&A
rate may not be comparable to other retailers' corresponding rates. For additional information regarding costs classified in cost of goods sold and SG&A,
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.
(4) Includes both gain (loss) from discontinued operations and net (earnings) loss from discontinued operations attributable to noncontrolling interests.
Fiscal 2016 Results Compared With Fiscal 2015
The components of the 2.0% revenue decrease in fiscal 2016 were as follows:
Impact of foreign currency exchange rate fluctuations (1.3)%
Non-comparable sales(1) (1.1)%
Comparable sales impact 0.4 %
Total revenue decrease (2.0)%
(1) Non-comparable sales reflects the impact 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 to wholesalers and dealers, as applicable.