Best Buy 2003 Annual Report Download - page 174
Download and view the complete annual report
Please find page 174 of the 2003 Best Buy annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164 -
165 -
166 -
167 -
168 -
169 -
170 -
171 -
172 -
173 -
174 -
175 -
176 -
177 -
178 -
179 -
180 -
181 -
182 -
183
 |
 |
Total revenue $ 20,946 $ 17,711 $ 15,189
Operating Income
Domestic $ 1,002 $ 886 $ 611
International 8 22 —
Total operating income 1,010 908 611
Net interest income 4 18 38
Earnings from continuing operations before income tax expense $ 1,014 $ 926 $ 649
2003 2002 2001
Assets
Domestic $ 6,251 $ 5,672 $ 3,812
International 858 686 —
Total assets $ 7,109 $ 6,358 $ 3,812
Capital Expenditures
Domestic $ 667 $ 563 $ 657
International 58 18 —
Total capital expenditures $ 725 $ 581 $ 657
Depreciation and Amortization
Domestic $ 284 $ 237 $ 165
International 26 8 —
Total depreciation and amortization $ 310 $ 245 $ 165
62
$ in millions, except per share amounts
11. Commitments and Contingencies
At the end of fiscal 2003, we had commitments for the purchase and construction of facilities valued at approximately $20.
We are involved in various legal proceedings arising during the normal course of conducting business. Management believes that the
resolution of these proceedings, either individually or in the aggregate, will not have a significant adverse impact on our consolidated
financial statements.
In November 2002, the FASB issued FIN No. 45, Guarantor’s Accounting and Disclosure Requirements for Guarantees, Including
Indirect Guarantees of Indebtedness of Others. FIN No. 45 provides guidance on the recognition and disclosure of certain types of
guarantees, including product warranties. We assumed a liability for certain extended service contracts when we acquired Future Shop
in the third quarter of fiscal 2002. Subsequent to the acquisition, extended service contracts were sold on behalf of an unrelated third
party, without recourse. An accrued liability has been established for the acquired extended service contracts based on historical trends
in product failure rates and the expected material and labor costs necessary to provide the services. The remaining term of these
extended service contracts varies by product and extend up to four years. The estimated remaining liability for extended service
contracts at March 1, 2003, is $28.
The following table reconciles the changes in our liability for extended service contracts for the year ended March 1, 2003:
Balance at March 2, 2002 $ 17
Final purchase price allocation adjustment 37
Service charges (28)
Foreign exchange 2
Balance at March 1, 2003 $ 28