Best Buy 2014 Annual Report Download - page 29

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24
(2) Fiscal 2013 (11-month) included 48 weeks and fiscal 2012 included 53 weeks. All other periods presented included 52 weeks.
(3) Included within our operating income (loss) and net earnings (loss) from continuing operations for fiscal 2013 (11-month) is $415 million ($268 million
net of taxes) of restructuring charges from continuing operations recorded in fiscal 2013 (11-month) related to measures we took to restructure our
business. Also included in net earnings (loss) from continuing operations for fiscal 2013 (11-month) is $821 million (net of taxes) of goodwill impairment
charges primarily related to Best Buy Canada and Five Star. Included in gain (loss) from discontinued operations is $23 million (net of taxes) of
restructuring charges primarily related to Best Buy Europe. Net earnings (loss) attributable to Best Buy Co., Inc. shareholders for fiscal 2013 (11-month)
includes restructuring charges (net of tax and noncontrolling interest) from continuing operations and the net of tax goodwill impairment.
(4) Included within our operating income (loss) and net earnings (loss) from continuing operations for fiscal 2012 is $48 million ($30 million net of taxes) of
restructuring charges from continuing operations recorded in fiscal 2012 related to measures we took to restructure our business. Included in gain (loss)
from discontinued operations is $194 million (net of taxes) of restructuring charges recorded in fiscal 2012 related to measures we took to restructure our
business. Also included in gain (loss) from discontinued operations for fiscal 2012 is $1.2 billion (net of taxes) of goodwill impairment charges related to
Best Buy Europe. Net earnings (loss) attributable to Best Buy Co., Inc. shareholders for fiscal 2012 includes restructuring charges (net of tax and
noncontrolling interest) from both continuing and discontinued operations and the net of tax goodwill impairment, and excludes $1.3 billion in
noncontrolling interest related to the agreement to buy out 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).
(5) Included within our operating income (loss) and net earnings (loss) from continuing operations for fiscal 2011 is $147 million ($93 million 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 gain (loss) from discontinued operations is $54 million (net of
taxes) of restructuring charges recorded in the fiscal fourth quarter related to measures we took to restructure our business. Net earnings (loss) attributable
to Best Buy Co., Inc. shareholders for fiscal 2011 includes the net of tax impact of restructuring charges from both continuing and discontinued
operations.
(6) Included within our operating income (loss) and net earnings (loss) from continuing operations for fiscal 2010 is $26 million ($16 million net of tax) of
restructuring charges related to measures we took to restructure our business. These charges resulted in a decrease in our operating income rate of 0.1% of
revenue for the fiscal year. Included in gain (loss) from discontinued operations is $18 million (net of taxes) of restructuring charges related to measures
we took to restructure our business. Net earnings (loss) attributable to Best Buy Co., Inc. shareholders for fiscal 2010 includes $25 million net of taxes
and noncontrolling interest of restructuring charges from both continuing and discontinued operations.
(7) Comparable store sales is a commonly used metric in the retail industry, which compares revenue for a particular period with the corresponding period in
the prior year, excluding the impact of sales from new stores opened or closed stores. Our comparable store sales is comprised of revenue from stores
operating for at least 14 full months, as well as revenue related to website and online sales, call centers and our other comparable sales channels. Revenue
we earn from sales of merchandise to wholesalers or dealers is generally not included within our comparable store sales calculation. Relocated stores, as
well as remodeled, expanded, and downsized stores closed more than 14 days, 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 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. 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.
(8) The current ratio is calculated by dividing total current assets by total current liabilities.
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 six sections:
• Overview
• Business Strategy
• Results of Operations
• Liquidity and Capital Resources
• Off-Balance-Sheet Arrangements and Contractual Obligations
• Critical Accounting Estimates
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.
Overview
We are a multi-national, multi-channel retailer of technology products, including tablets and computers, televisions, mobile
phones, large and small appliances, entertainment products, digital imaging, and related accessories. We also offer consumers
technology services – including technical support, repair, troubleshooting and installation – under the Geek Squad brand. We
operate two reportable segments: Domestic and International. The Domestic segment is comprised of all operations within the
U.S. and its territories. The International segment is comprised of all operations outside the U.S. and its territories.