Best Buy 2008 Annual Report Download - page 36

Download and view the complete annual report

Please find page 36 of the 2008 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.

Page out of 120

  • 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

$ in millions, except per share amounts
(footnotes continued)
(3) During the fourth quarter of fiscal 2005, following a review of our lease accounting practices, we recorded a cumulative charge of
$36 pre-tax ($23 net of tax) to correct our accounting for certain operating lease matters. Additionally, during the same quarter, we
established a sales return liability, which reduced gross profit by $15 pre-tax ($10 net of tax). Further, in fiscal 2005, we recognized
a $50 tax benefit related to the reversal of valuation allowances on deferred tax assets as a result of the favorable resolution of
outstanding tax matters with the Internal Revenue Service regarding the disposition of our interest in Musicland. The tax benefit was
classified as discontinued operations.
(4) Earnings per share is presented on a diluted basis and reflects a three-for-two stock split effected in August 2005.
(5) Comprised of revenue at stores, call centers and Web sites operating for at least 14 full months, as well as remodeled and
expanded locations. Relocated stores are excluded from the comparable store sales calculation until at least 14 full months after
reopening. Acquired stores are included in the comparable store sales calculation beginning with the first full quarter following the
first anniversary of the date of acquisition. The calculation of the comparable store sales percentage gain excludes the effect of
fluctuations in foreign currency exchange rates. All comparable store sales percentage calculations reflect an equal number of
weeks. The method of calculating comparable store sales varies across the retail industry. As a result, our method of calculating
comparable store sales may not be the same as other retailers’ methods.
(6) Includes both continuing and discontinued operations.
(7) The current ratio is calculated by dividing total current assets by total current liabilities.
(8) Fiscal 2007 store counts and square footage have been adjusted to reflect Best Buy Mobile stand-alone stores test marketed in fiscal
2007.
(9) Prior years’ retail square footage has been adjusted to reflect all square footage on a gross basis.
28