Best Buy 2011 Annual Report Download - page 39

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The 0.1% of revenue gross profit rate increase for fiscal 2010 was due to a 0.4% of revenue increase from our
International segment’s gross profit rate, partially offset by a 0.3% of revenue decrease from our Domestic segment’s
gross profit rate. Of the 0.4% of revenue increase from our International segment, the impact of the acquisition of
Best Buy Europe, which carries a normally higher gross profit rate and contributed no gross profit in the first six months of
fiscal 2009 compared to a full year of gross profit in fiscal 2010, increased our fiscal 2010 gross profit rate by 0.3% of
revenue. For further discussion of each segment’s gross profit rate changes, see Segment Performance Summary, below.
The 0.1% of revenue SG&A rate decrease for fiscal 2010 was due to a 0.4% of revenue decrease from our Domestic
segment’s SG&A rate, partially offset by a 0.3% of revenue increase from our International segment’s SG&A rate. Included
within the 0.3% of revenue increase from our International segment is the impact of the acquisition of Best Buy Europe,
which increased our fiscal 2010 SG&A rate by 0.6% of revenue. For further discussion of each segment’s SG&A rate
changes, see Segment Performance Summary, below.
Our operating income in fiscal 2010 also included $52 million of restructuring charges recorded in the fiscal first quarter,
compared to $78 million of restructuring charges recorded in fiscal 2009. The 2010 restructuring charge related primarily
to updating our U.S. Best Buy store operating model, which included eliminating certain positions, as well as employee
termination benefits and business reorganization costs in Best Buy Europe, whereas the fiscal 2009 restructuring charges
related primarily to employee termination benefits offered pursuant to voluntary and involuntary separation plans at our
corporate headquarters and certain other locations.
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