Best Buy 2014 Annual Report Download - page 48

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43
Operating Activities
The decrease in cash provided by operating activities in fiscal 2014 (12-month) compared to fiscal 2013 (11-month) was
primarily due to increased cash outflows for accounts payable, partially offset by improved inventory management and
increased cash inflow from receivables.
The decrease in cash provided by operating activities in fiscal 2013 (11-month) compared to fiscal 2012 (11-month recast) was
primarily due to lower gross profit in fiscal 2013 (11-month) and larger cash payments for employee termination benefits and
facility closure costs. Additionally, in fiscal 2012 (11-month recast) there were larger cash inflows from the normalization of
accounts payable, following unusually low balances at the end of fiscal 2011 due to the timing of merchandise receipts in the
fourth quarter. These items were partially offset by an aggressive inventory reduction plan and other working capital and cash
flow management initiatives implemented towards the end of fiscal 2013 (11-month).
Investing Activities
The decrease in cash used in investing activities in fiscal 2014 (12-month) compared to fiscal 2013 (11-month) was primarily
due to lower capital expenditures and proceeds from the disposition of mindSHIFT, partially offset by purchases of short-term
investments in fiscal 2014 (12-month).
The decrease in cash used in investing activities in fiscal 2013 (11-month) compared to fiscal 2012 (11-month recast) was
primarily due to a reduction in cash used for acquisitions of businesses in fiscal 2013 (11-month), offset partially by a decrease
in cash received from the sale of investments.
Financing Activities
The increase in cash provided by financing activities in fiscal 2014 (12-month) compared to fiscal 2013 (11-month) was
primarily due to increased borrowing, increased proceeds from the issuance of common stock, primarily from the exercise of
employee stock options, and the lack of share repurchases in fiscal 2014 (12-month).
The decrease in cash used in financing activities in fiscal 2013 (11-month) compared to fiscal 2012 (11-month recast) was
primarily due to the stock repurchase program being suspended in fiscal 2013 (11-month) and the absence of the Mobile buy-
out payment which was incurred in fiscal 2012 (11-month recast), partially offset by the inflow of cash from the issuance of the
$1.0 billion of long-term debt securities in fiscal 2012 (11-month recast).
Sources of Liquidity
Funds generated by operating activities, available cash and cash equivalents, and our credit facilities are our most significant
sources of liquidity. We believe our sources of liquidity will be sufficient to sustain operations and to finance anticipated capital
investments and strategic initiatives. However, in the event our liquidity is insufficient, we may be required to limit our
spending. There can be no assurance that we will continue to generate cash flows at or above current levels or that we will be
able to maintain our ability to borrow under our existing credit facilities or obtain additional financing, if necessary, on
favorable terms.
We have a $500 million 364-day senior unsecured revolving credit facility (the "364-Day Facility Agreement") and a $1.5
billion five-year senior unsecured revolving credit facility (the "Five-Year Facility Agreement") (collectively the
"Agreements") with a syndicate of banks. The 364-Day Facility Agreement expires in June 2014 and the Five-Year Facility
Agreement expires in October 2016. At March 24, 2014, we had no borrowings outstanding under the Agreements.
We have $162 million available (based on the exchange rates in effect as of the end of fiscal 2014 (12-month)) under unsecured
revolving demand facilities related to our International segment operations. There were no borrowings outstanding at February
1, 2014. Refer to Note 7, Debt, of the Notes to Consolidated Financial Statements, included in Item 8, Financial Statements
and Supplementary Data, of this Annual Report on Form 10-K for further information about our credit facilities.
Our ability to access our revolving credit facilities, under the Agreements, is subject to our compliance with the terms and
conditions of such facilities, including financial covenants. The financial covenants require us to maintain certain financial
ratios. At February 1, 2014, we were in compliance with all such financial covenants. If an event of default were to occur with
respect to any of our other debt, it would likely constitute an event of default under our facilities as well.