Best Buy 2003 Annual Report Download - page 138

Fiscal Year(1) 1997 1996 1995 1994(2) 1993
Statement of Earnings Data
Revenue $ 7,758 $ 7,215 $ 5,080 $ 3,007 $ 1,620
Gross profit 1,046 934 690 457 284
Selling, general and administrative expenses 1,006 814 568 380 248
Operating income 40 120 122 77 36
Earnings (loss) from continuing operations (6) 46 58 42 20
Loss from discontinued operations, net of tax — — — — —
Cumulative effect of change in accounting principles, net
of tax(2) — — — (1) —
Net earnings (loss) (6) 46 58 41 20
Per Share Data(4)
Continuing operations $ (0.02) $ 0.18 $ 0.21 $ 0.17 $ 0.10
Discontinued operations — — — — —
Cumulative effect of accounting changes — — — — —
Net earnings (loss) (0.02) 0.18 0.21 0.17 0.10
Common stock price:
High 4.37 4.94 7.54 5.24 2.61
Low 1.31 2.13 3.69 1.81 0.78
Operating Statistics
Comparable store sales change(5) (4.7%) 5.5% 19.9% 26.9% 19.4%
Gross profit rate 13.5% 12.9% 13.6% 15.2% 17.5%
Selling, general and administrative expense rate 13.0% 11.3% 11.2% 12.6% 15.3%
Operating income rate 0.5% 1.7% 2.4% 2.6% 2.2%
Year−End Data
Working capital(6) $ 563 $ 585 $ 609 $ 363 $ 119
Total assets(6) 1,740 1,892 1,507 952 439
Long−term debt, including current portion(6) 238 230 241 220 54
Convertible preferred securities 230 230 230 — —
Shareholders’ equity 429 430 376 311 182
Number of stores
U.S. Best Buy stores 272 251 204 151 111
Magnolia Hi−Fi stores — — — — —
Musicland stores — — — — —
International stores — — — — —
Total retail square footage (000s)
U.S. Best Buy stores 12,026 10,771 8,041 5,072 3,250
Magnolia Hi−Fi stores — — — — —
Musicland stores — — — — —
International stores — — — — —
Please read this table in conjunction with Management’s Discussion and Analysis of Results of Operations and Financial Condition,
beginning on page 20, and the Consolidated Financial Statements and Notes, beginning on page 42. Certain prior−year amounts have
been reclassified to conform to the current−year presentation. Fiscal 2003, 2002 and 2001 results reflect the classification of
Musicland’s financial results as discontinued operations.
(1) Both fiscal 2001 and 1996 included 53 weeks. All other periods presented included 52 weeks.
(2) Effective on March 3, 2002, we adopted Statement of Financial Accounting Standards (SFAS) No. 142, Goodwill and Other
Intangible Assets. During the second quarter of fiscal 2003, we completed the required goodwill impairment testing and recognized an
after−tax, non−cash impairment charge of $40 that is reflected in our fiscal 2003 financial results as a cumulative effect of a change in
accounting principle. Also effective on March 3, 2002, we changed our method of accounting for vendor allowances in accordance
with Emerging Issues Task Force (EITF) Issue No. 02−16, Accounting by a Reseller for Cash Consideration Received from a Vendor.
The change resulted in an after−tax, non−cash charge of $42 that also is reflected in our fiscal 2003 financial results as a cumulative
effect of a change in accounting principle. Refer to note 1 on page 51 in the Notes to Consolidated Financial Statements. Prior fiscal
years have not been restated to reflect the pro forma effects of these changes. During fiscal 1994, we adopted SFAS No. 109,
Accounting for Income Taxes, resulting in a cumulative effect adjustment of $1.
(3) During the third quarter of fiscal 2002, we acquired the common stock of Future Shop Ltd. During the fourth quarter of
fiscal 2001, we acquired the common stock of Musicland Stores Corporation (Musicland) and Magnolia Hi−Fi, Inc. (Magnolia Hi−Fi).
The results of operations of these businesses are included from their dates of acquisition. As noted previously, Musicland’s financial
results are included in discontinued operations.