Best Buy 2012 Annual Report Download - page 32

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Carphone Warehouse Group plc's interest in the profit share-based management fee paid to Best Buy Europe pursuant to the 2007 Best Buy Mobile
agreement (which represents earnings attributable to the noncontrolling interest).
(3) Included within our Operating income and Net earnings from continuing operations for fiscal 2011 is $147 ($93 net of taxes) of restructuring charges
recorded in the fiscal fourth quarter related to measures we took to restructure our businesses. These charges resulted in a decrease in our operating
income rate of 0.3% of revenue for the fiscal year. Included in Loss from discontinued operations is $54 (net of taxes) of restructuring charges recorded in
the fiscal fourth quarter related to measures we took to restructure our business. Net (loss) earnings attributable to Best Buy Co., Inc. for fiscal 2011
includes the net of tax impact of restructuring charges from both continuing and discontinued operations.
(4) Included within our Operating income, Net earnings from continuing operations and Net (loss) earnings attributable to Best Buy Co., Inc. for fiscal 2010
is $52 ($25 net of taxes and noncontrolling interest) of restructuring charges recorded in the fiscal first quarter related to measures we took to restructure
our businesses. These charges resulted in a decrease in our operating income rate of 0.1% of revenue for the fiscal year.
(5) Included within our Operating income and Net earnings from continuing operations for fiscal 2009 is $78 ($48 net of tax) of restructuring charges
recorded in the fiscal fourth quarter related to measures we took to restructure our businesses. Included within Loss from discontinued operations is
goodwill and tradename impairment charges of $64 (net of tax) related to our former Speakeasy business. Net (loss) earnings attributable to Best Buy Co.,
Inc. for fiscal 2009 includes the net of tax impact of restructuring charges from continuing operations and the goodwill and tradename impairment from
discontinued operations.
(6) Included within our Net earnings from continuing operations and Net (loss) earnings attributable to Best Buy Co., Inc. for fiscal 2009 is $111 ($96 net of
tax) of investment impairment charges related to our investment in the common stock of CPW.
(7) Comparable store sales is a measure commonly used in the retail industry, which indicates store performance by measuring the growth in revenue for
certain stores for a particular period over the corresponding period in the prior year. Our comparable store sales is comprised of revenue from stores
operating for at least 14 full months as well as revenue related to call centers, Web sites and our other comparable sales channels. Revenue we earn from
sales of merchandise to wholesalers or dealers is not included within our comparable store sales calculation. Relocated, remodeled and expanded 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 the acquisition. The portion of our calculation of
the comparable store sales percentage change attributable to our International segment excludes the effect of fluctuations in foreign currency exchange
rates. 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. The calculation of comparable store sales excludes the impact of the extra week of revenue in the fourth
quarter of fiscal 2012, as well as revenue from discontinued operations for all periods presented.
(8) The current ratio is calculated by dividing total current assets by total current liabilities.
(9) As a result of the adoption of new accounting guidance related to the treatment of noncontrolling interests in consolidated financial statements, we
recharacterized minority interests previously reported on our Consolidated Balance Sheets as noncontrolling interests and classified them as a component
of shareholders' equity. As a result, we have reclassified total shareholders' equity for fiscal years 2009 and 2008 to include noncontrolling interests of
$513 and $40, respectively.
(10) In the second quarter of fiscal 2009, we acquired 2,414 stores pursuant to our acquisition of a 50% interest in Best Buy Europe.
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.
Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") is intended to provide a
reader of our financial statements with a narrative from the perspective of our management on our financial condition, results
of operations, liquidity and certain other factors that may affect our future results. Unless otherwise noted, transactions and
other factors significantly impacting our financial condition, results of operations and liquidity are discussed in order of
magnitude. Our MD&A is presented in seven sections:
• Overview
• Business Strategy and Core Philosophies
• Results of Operations
• Liquidity and Capital Resources
• Off-Balance-Sheet Arrangements and Contractual Obligations
• Critical Accounting Estimates
• New Accounting Standards
Our MD&A should be read in conjunction with the Consolidated Financial Statements and related Notes included in Item 8,
Financial Statements and Supplementary Data, of this Annual Report on Form 10-K.
Our fiscal year ends on the Saturday nearest the end of February. Fiscal 2012 included 53 weeks and fiscal 2011 and 2010 each
included 52 weeks.
On November 2, 2011, our Board of Directors approved a change in our fiscal year-end from the Saturday nearest the end of
February to the Saturday nearest the end of January, effective beginning with our fiscal year 2013. As a result of this change,
our fiscal year 2013 transition period will be 11 months and will end on February 2, 2013, and we will begin consolidating the
results of our Europe, China and Mexico operations on a one-month lag, compared to a two-month lag in fiscal year 2012, to
continue aligning our fiscal reporting periods with statutory filing requirements in certain foreign jurisdictions. We will begin
filing our quarterly reports on Form 10-Q based on the new fiscal year-end beginning with the first quarter of fiscal year 2013.