Best Buy 2015 Annual Report Download - page 37

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Table of Contents
30
• Revenue was $40.3 billion in fiscal 2015. The slight decrease from fiscal 2014 was primarily driven by the negative impact
of foreign currency exchange fluctuations, partially offset by a comparable sales gain of 0.5%. Excluding the 0.5% of
revenue estimated benefit associated with the classification of the new mobile carrier installment billing plans, comparable
sales were flat.
• Our gross profit rate decreased by 0.7% of revenue to 22.4% of revenue in fiscal 2015. The decrease was primarily due to
LCD-related legal settlements received in fiscal 2014.
• We generated $1.9 billion in operating cash flow in fiscal 2015, compared to $1.1 billion in fiscal 2014, and we ended
fiscal 2015 with $3.9 billion of cash, cash equivalents and short-term investments, compared to $2.9 billion at the end of
fiscal 2014. Capital expenditures remained relatively consistent with the prior year, as we continued to follow a more
disciplined capital allocation process.
• During fiscal 2015, we made four dividend payments totaling $0.72 per share, or $251 million in the aggregate.
The following table presents selected consolidated financial data for each of the past three fiscal years ($ in millions, except per
share amounts):
12-Month 12-Month 11-Month
Consolidated Performance Summary 2015 2014 2013
Revenue $40,339 $40,611 $38,252
Revenue % gain (decline)(1) (0.7)% 6.2 % (11.9)%
Comparable sales % gain (decline) 0.5 % (1.0)% (2.7)%
Gross profit $ 9,047 $ 9,399 $ 9,023
Gross profit as a % of revenue(2) 22.4 % 23.1 % 23.6 %
SG&A $ 7,592 $ 8,106 $ 7,905
SG&A as a % of revenue(3) 18.8 % 20.0 % 20.7 %
Restructuring charges $ 5 $ 149 $ 414
Goodwill impairments $ — $ — $ 614
Operating income $ 1,450 $ 1,144 $ 90
Operating income as a % of revenue 3.6 % 2.8 % 0.2 %
Net earnings (loss) from continuing operations $ 1,246 $ 695 $ (259)
Loss from discontinued operations(2) $ (13) $ (163) $ (182)
Net earnings (loss) attributable to Best Buy Co., Inc. shareholders $ 1,233 $ 532 $ (441)
Diluted earnings (loss) per share from continuing operations $ 3.53 $ 2.00 $ (0.76)
Diluted earnings (loss) per share $ 3.49 $ 1.53 $ (1.30)
(1) The revenue % decline for fiscal 2013 (11-month) is compared to the 12-month fiscal year 2012
(2) Because retailers vary in how they record costs of operating their supply chain between cost of goods sold and 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 gain (loss) from discontinued operations and net (earnings) loss from discontinued operations attributable to noncontrolling interests.
Fiscal 2015 Results Compared With Fiscal 2014
The components of the 0.7% revenue decrease in fiscal 2015 were as follows:
Impact of foreign currency exchange rate fluctuations (0.7)%
Net store changes (0.2)%
Non-comparable sales(1) (0.2)%
Comparable sales impact 0.4 %
Total revenue decrease (0.7)%
(1) Non-comparable sales reflects the impact of revenue streams not included within our comparable sales calculation, such as certain credit card revenue,
gift card breakage and sales of merchandise to wholesalers and dealers, as applicable.