Best Buy 2012 Annual Report Download - page 36

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• In fiscal 2012, we recorded $58 million of restructuring charges related to changes in our mobile broadband offerings and
actions to improve supply chain and operational efficiencies in our Domestic segment, as well as changes in our
international expansion strategy in the International segment.
• We ended fiscal 2012 with $1.2 billion of cash and cash equivalents, compared to $1.1 billion at the end of fiscal 2011.
Operating cash flow increased to $3.3 billion in fiscal 2012 compared to fiscal 2011 operating cash flow of $1.2 billion due
primarily to changes in working capital, as capital expenditures remained relatively consistent at $766 million in fiscal
2012.
• During fiscal 2012, we made four dividend payments totaling $0.62 per share, or $228 million in the aggregate.
• We repurchased and retired 54.6 million shares of our common stock at a cost of $1.5 billion during fiscal 2012.
Consolidated Results
The following table presents selected consolidated financial data for each of the past three fiscal years ($ in millions, except per
share amounts):
Consolidated Performance Summary 2012(1) 2011 2010
Revenue $ 50,705 $ 49,747 $ 49,243
Revenue gain % 1.9 % 1.0 % 10.1%
Comparable store sales % (decline) gain (1.7)% (1.8)% 0.6%
Gross profit $ 12,573 $ 12,541 $ 12,042
Gross profit as % of revenue(2) 24.8 % 25.2 % 24.5%
SG&A $ 10,242 $ 10,029 $ 9,622
SG&A as % of revenue(2) 20.2 % 20.2 % 19.5%
Restructuring charges $ 39 $ 138 $ 52
Operating income $ 1,085 $ 2,374 $ 2,368
Operating income as % of revenue 2.1 % 4.8 % 4.8%
Net (loss) earnings from continuing operations(3) $ (1,057) $ 1,427 $ 1,399
Loss from discontinued operations(4) $ (174) $ (150) $ (82)
Net (loss) earnings attributable to Best Buy Co., Inc. $ (1,231) $ 1,277 $ 1,317
Diluted (loss) earnings per share from continuing operations $ (2.89) $ 3.44 $ 3.29
Diluted (loss) earnings per share $ (3.36) $ 3.08 $ 3.10
(1) Included within operating income and net loss for fiscal 2012 is a $1.2 billion ($1.2 billion net of taxes) goodwill impairment charge. The goodwill
impairment charge resulted in a decrease in our operating income of 2.4% of revenue for the fiscal year.
(2) Because retailers vary in how they record costs of operating their supply chain between cost of goods sold and selling, general and administrative expense
("SG&A"), our gross profit rate and SG&A rate may not be comparable to other retailers' corresponding rates. For additional information regarding costs
classified in cost of goods sold and SG&A, refer to Note 1, Summary of Significant Accounting Policies, of the Notes to Consolidated Financial
Statements, included in Item 8, Financial Statements and Supplementary Data, of this Annual Report on Form 10-K.
(3) Includes both Net (loss) earnings from continuing operations and Net (earnings) from continuing operations attributable to noncontrolling interests.
(4) Includes both Loss from discontinued operations and Net loss from discontinued operations attributable to noncontrolling interests.
Fiscal 2012 Results Compared With Fiscal 2011
The macroeconomic pressures on consumer spending and the consumer electronics industry trends we experienced in fiscal
2011 largely continued through fiscal 2012. We continued to face declining demand in key product categories, particularly
televisions, notebook computers, gaming and music. These factors have impacted many of the geographic markets in which we
operate. However, we have seen growth in several key product categories. For example, increased consumer demand for
tablets, e-Readers, and associated accessories and services led to revenue growth of these products in all of our global markets.
Further, our focus on gaining market share in appliances in the Domestic segment produced comparable stores sales gains in
fiscal 2012.