o
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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x
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Minnesota
|
|
41-0907483
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State or other jurisdiction of
incorporation or organization
|
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(I.R.S. Employer
Identification No.)
|
7601 Penn Avenue South
Richfield, Minnesota
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55423
(Zip Code)
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(Address of principal executive offices)
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Title of each class
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Name of each exchange on which registered
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Common Stock, par value $.10 per share
|
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New York Stock Exchange
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Large accelerated filer
x
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Accelerated filer
o
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Non-accelerated filer
o
|
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Smaller reporting company
o
|
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||
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||
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||
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||
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•
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We have greater exposure and responsibility to consumers for warranty replacements and repairs as a result of product defects, and we generally have no recourse to contracted manufacturers for such warranty liabilities;
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•
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We may be subject to regulatory compliance and/or product liability claims relating to personal injury, death or property damage caused by exclusive brand products, some of which may require us to take significant actions such as product recalls;
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•
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We may experience disruptions in manufacturing or logistics due to inconsistent and unanticipated order patterns, our inability to develop long-term relationships with key factories or unforeseen natural disasters;
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•
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We are subject to developing and often-changing labor and environmental laws for the manufacture of products in foreign countries, and we may be unable to conform to new rules or interpretations in a timely manner;
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•
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We may be subject to claims by technology owners if we inadvertently infringe upon their patents or other intellectual property rights, or if we fail to pay royalties owed on our products; and
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•
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We may be unable to obtain or adequately protect patents and other intellectual property rights on our products or manufacturing processes.
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•
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The difficulty of complying with sometimes conflicting statutes and regulations in local, national or international jurisdictions;
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•
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The impact of new or changing statutes and regulations including, but not limited to, financial reform, environmental requirements, National Labor Relations Board rule changes, health care reform, corporate governance matters and/or other as yet unknown legislation, that could affect how we operate and execute our strategies as well as alter our expense structure;
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•
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The impact of changes in tax laws (or interpretations thereof by courts and taxing authorities) and accounting standards; and
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•
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The impact of litigation trends, including class action lawsuits involving consumers and shareholders, and labor and employment matters.
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•
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New product categories such as tablets and e-readers have grown rapidly and fundamentally changed the market for mobile computing devices;
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•
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Product convergence has significantly impacted the demand for some products; for example, the growth of increasingly sophisticated smartphones has reduced the demand for separate cameras, gaming systems, music players and GPS devices;
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•
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The timing of new product introductions and updates can have a dramatic impact on the timing of revenues; for example, the introduction of new gaming systems can produce high demand levels for hardware and the accompanying software, which may be followed by several years of decline in demand;
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•
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Delivery models for some products are affected by technological advances and new product innovations; for example, media such as music, video and gaming is increasingly transferring to digital delivery methods that may reduce the need for physical CD, DVD, Blu-ray and gaming products.
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|
|
U.S.
Best Buy
Stores
|
|
U.S. Best Buy
Mobile Stand-Alone Stores
|
|
Pacific Sales
Stores
|
|
Magnolia
Audio
Video Stores
|
||||
Alabama
|
|
15
|
|
|
6
|
|
|
—
|
|
|
—
|
|
Alaska
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Arizona
|
|
24
|
|
|
1
|
|
|
2
|
|
|
—
|
|
Arkansas
|
|
9
|
|
|
5
|
|
|
—
|
|
|
—
|
|
California
|
|
119
|
|
|
30
|
|
|
31
|
|
|
2
|
|
Colorado
|
|
22
|
|
|
5
|
|
|
—
|
|
|
—
|
|
Connecticut
|
|
12
|
|
|
6
|
|
|
—
|
|
|
—
|
|
Delaware
|
|
4
|
|
|
1
|
|
|
—
|
|
|
—
|
|
District of Columbia
|
|
2
|
|
|
1
|
|
|
—
|
|
|
—
|
|
Florida
|
|
65
|
|
|
50
|
|
|
—
|
|
|
—
|
|
Georgia
|
|
28
|
|
|
12
|
|
|
—
|
|
|
—
|
|
Hawaii
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Idaho
|
|
5
|
|
|
2
|
|
|
—
|
|
|
—
|
|
Illinois
|
|
52
|
|
|
16
|
|
|
—
|
|
|
—
|
|
Indiana
|
|
23
|
|
|
12
|
|
|
—
|
|
|
—
|
|
Iowa
|
|
13
|
|
|
1
|
|
|
—
|
|
|
—
|
|
Kansas
|
|
9
|
|
|
4
|
|
|
—
|
|
|
—
|
|
Kentucky
|
|
9
|
|
|
7
|
|
|
—
|
|
|
—
|
|
Louisiana
|
|
16
|
|
|
7
|
|
|
—
|
|
|
—
|
|
Maine
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Maryland
|
|
23
|
|
|
13
|
|
|
—
|
|
|
—
|
|
Massachusetts
|
|
27
|
|
|
12
|
|
|
—
|
|
|
—
|
|
Michigan
|
|
34
|
|
|
11
|
|
|
—
|
|
|
—
|
|
Minnesota
|
|
23
|
|
|
16
|
|
|
—
|
|
|
—
|
|
Mississippi
|
|
9
|
|
|
2
|
|
|
—
|
|
|
—
|
|
Missouri
|
|
20
|
|
|
11
|
|
|
—
|
|
|
—
|
|
Montana
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Nebraska
|
|
5
|
|
|
3
|
|
|
—
|
|
|
—
|
|
Nevada
|
|
10
|
|
|
4
|
|
|
1
|
|
|
—
|
|
New Hampshire
|
|
6
|
|
|
4
|
|
|
—
|
|
|
—
|
|
New Jersey
|
|
27
|
|
|
11
|
|
|
—
|
|
|
—
|
|
New Mexico
|
|
5
|
|
|
2
|
|
|
—
|
|
|
—
|
|
New York
|
|
54
|
|
|
16
|
|
|
—
|
|
|
—
|
|
North Carolina
|
|
32
|
|
|
14
|
|
|
—
|
|
|
—
|
|
North Dakota
|
|
4
|
|
|
1
|
|
|
—
|
|
|
—
|
|
Ohio
|
|
37
|
|
|
12
|
|
|
—
|
|
|
—
|
|
Oklahoma
|
|
13
|
|
|
3
|
|
|
—
|
|
|
—
|
|
Oregon
|
|
12
|
|
|
3
|
|
|
—
|
|
|
—
|
|
Pennsylvania
|
|
38
|
|
|
16
|
|
|
—
|
|
|
—
|
|
Puerto Rico
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Rhode Island
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
South Carolina
|
|
15
|
|
|
5
|
|
|
—
|
|
|
—
|
|
South Dakota
|
|
2
|
|
|
1
|
|
|
—
|
|
|
—
|
|
Tennessee
|
|
16
|
|
|
8
|
|
|
—
|
|
|
—
|
|
Texas
|
|
108
|
|
|
39
|
|
|
—
|
|
|
—
|
|
Utah
|
|
10
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Vermont
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Virginia
|
|
34
|
|
|
12
|
|
|
—
|
|
|
—
|
|
Washington
|
|
19
|
|
|
12
|
|
|
—
|
|
|
2
|
|
West Virginia
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Wisconsin
|
|
23
|
|
|
11
|
|
|
—
|
|
|
—
|
|
Wyoming
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
Total
|
|
1,056
|
|
|
409
|
|
|
34
|
|
|
4
|
|
|
|
U.S.
Best Buy
Stores
|
|
U.S. Best Buy
Mobile Stand-Alone Stores
|
|
Pacific Sales
Stores
|
|
Magnolia
Audio
Video Stores
|
||||
Owned store locations
|
|
24
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Owned buildings and leased land
|
|
36
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Leased store locations
|
|
996
|
|
|
409
|
|
|
34
|
|
|
4
|
|
Square footage (in thousands)
|
|
40,704
|
|
|
597
|
|
|
876
|
|
|
55
|
|
|
|
|
|
Square Footage (in thousands)
|
||||
|
|
Location
|
|
Leased
|
|
Owned
|
||
Distribution centers
|
|
23 locations in 17 U.S. states
|
|
7,360
|
|
|
3,183
|
|
Geek Squad service center
(1)
|
|
Louisville, Kentucky
|
|
237
|
|
|
—
|
|
Principal corporate headquarters
(2)
|
|
Richfield, Minnesota
|
|
—
|
|
|
1,452
|
|
Territory field offices
|
|
29 locations throughout the U.S.
|
|
166
|
|
|
—
|
|
Pacific Sales corporate office space
|
|
Torrance, California
|
|
15
|
|
|
—
|
|
(1)
|
The leased space utilized by our Geek Squad operations is used primarily to service notebook and desktop computers.
|
(2)
|
Our principal corporate headquarters is an owned facility consisting of four interconnected buildings. Certain vendors who provide us with a variety of corporate services occupy a portion of our principal corporate headquarters. We also sublease a portion of our principal corporate headquarters to third parties.
|
|
Europe
|
|
Canada
|
|
China
|
|
Mexico
|
||||||||||||||||
|
The Carphone
Warehouse Stores
|
|
The Phone House Stores
|
|
Future Shop Stores
|
|
Best Buy Stores
|
|
Best Buy Mobile
Stand-Alone Stores
|
|
Five Star Stores
|
|
Best Buy Stores
|
|
Best Buy Express Stores
|
||||||||
Europe
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
France
|
—
|
|
|
336
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Germany
|
—
|
|
|
200
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Ireland
|
82
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Netherlands
|
—
|
|
|
205
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Portugal
|
—
|
|
|
134
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Spain
|
—
|
|
|
532
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
Sweden
|
—
|
|
|
110
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
United Kingdom
|
790
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Canada
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Alberta
|
—
|
|
|
—
|
|
|
17
|
|
|
12
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
British Columbia
|
—
|
|
|
—
|
|
|
22
|
|
|
9
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Manitoba
|
—
|
|
|
—
|
|
|
4
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
New Brunswick
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Newfoundland
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Nova Scotia
|
—
|
|
|
—
|
|
|
6
|
|
|
2
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Ontario
|
—
|
|
|
—
|
|
|
56
|
|
|
33
|
|
|
26
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Prince Edward Island
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Quebec
|
—
|
|
|
—
|
|
|
27
|
|
|
11
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Saskatchewan
|
—
|
|
|
—
|
|
|
3
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
China
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Anhui
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
—
|
|
Henan
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
—
|
|
Jiangsu
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
131
|
|
|
—
|
|
|
—
|
|
Shandong
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
—
|
|
Sichuan
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
Yunnan
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
Zhejiang
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24
|
|
|
—
|
|
|
—
|
|
Mexico
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Estado de Mexico
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
Distrito Federal
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
1
|
|
Jalisco
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
Nuevo Leon
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
Michoacan
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
Total
|
872
|
|
|
1,517
|
|
|
140
|
|
|
72
|
|
|
49
|
|
|
211
|
|
|
14
|
|
|
1
|
|
|
Europe
|
|
Canada
|
|
China
|
|
Mexico
|
||||||||||||||||
|
The
Carphone
Warehouse
Stores
|
|
The Phone
House
Stores
|
|
Future Shop
Stores
|
|
Best Buy
Stores
|
|
Best Buy
Mobile
Stand-Alone Stores
|
|
Five Star
Stores
|
|
Best Buy
Stores
|
|
Best Buy Express Stores
|
||||||||
Owned store locations
|
—
|
|
|
2
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
Leased store locations
|
872
|
|
|
1,515
|
|
|
140
|
|
|
69
|
|
|
49
|
|
|
204
|
|
|
14
|
|
|
1
|
|
Square footage (in thousands)
|
702
|
|
|
794
|
|
|
3,695
|
|
|
2,293
|
|
|
46
|
|
|
6,940
|
|
|
577
|
|
|
2
|
|
|
|
|
Square Footage (in thousands)
|
|
|
|
Square Footage (in thousands)
|
||||||||
|
Distribution Centers
|
|
Leased
|
|
Owned
|
|
Principal Corporate Offices
|
|
Leased
|
|
Owned
|
||||
Europe
|
Throughout six European countries
|
|
218
|
|
|
—
|
|
|
Acton, West London and throughout Europe
|
|
828
|
|
|
—
|
|
Canada
|
Brampton and Bolton, Ontario
|
|
1,763
|
|
|
—
|
|
|
Burnaby, British Columbia
|
|
141
|
|
|
—
|
|
|
Vancouver, British Columbia
|
|
639
|
|
|
—
|
|
|
|
|
|
|
|
||
Five Star
|
Jiangsu Province, China
|
|
957
|
|
|
—
|
|
|
Nanjing, Jiangsu Province, China (corporate office)
|
|
24
|
|
|
46
|
|
|
Throughout the Five Star retail chain
|
|
758
|
|
|
—
|
|
|
District offices throughout the Five Star retail chain
|
|
174
|
|
|
—
|
|
Mexico
|
Estado de Mexico, Mexico
|
|
45
|
|
|
—
|
|
|
Distrito Federal, Mexico
|
|
21
|
|
|
—
|
|
Name
|
|
Age
|
|
Position With the Company
|
|
Years
With the
Company
|
|
Hubert Joly
(1)
|
|
53
|
|
President and Chief Executive Officer
|
|
—
|
|
Sharon L. McCollam
(2)
|
|
50
|
|
Executive Vice President – Chief Administrative Officer and Chief Financial Officer
|
|
—
|
|
Keith J. Nelsen
|
|
49
|
|
Executive Vice President, General Counsel, Chief Risk Officer & Secretary
|
|
7
|
|
Carol A. Surface
|
|
47
|
|
Executive Vice President, Chief Human Resources Officer
|
|
3
|
|
Shari L. Ballard
|
|
46
|
|
Executive Vice President and President, International
|
|
20
|
|
Susan S. Grafton
|
|
56
|
|
Senior Vice President, Controller and Chief Accounting Officer
|
|
12
|
|
Christopher K.K. Gould
|
|
43
|
|
Vice President, Treasurer
|
|
2
|
|
(1)
|
Mr. Joly became our President and Chief Executive Officer in September 2012.
|
(2)
|
Ms. McCollam became our Executive Vice President – Chief Administrative Officer and Chief Financial Officer in December 2012.
|
|
Sales Price
|
||||||
|
High
|
|
Low
|
||||
Fiscal 2013 (11-month)
|
|
|
|
||||
First Quarter
(1)
|
$
|
27.95
|
|
|
$
|
20.78
|
|
Second Quarter
|
23.57
|
|
|
16.97
|
|
||
Third Quarter
|
21.60
|
|
|
14.62
|
|
||
Fourth Quarter
|
16.41
|
|
|
11.20
|
|
||
Fiscal 2012
|
|
|
|
||||
First Quarter
|
$
|
33.22
|
|
|
$
|
28.09
|
|
Second Quarter
|
32.85
|
|
|
23.25
|
|
||
Third Quarter
|
28.36
|
|
|
21.79
|
|
||
Fourth Quarter
|
28.53
|
|
|
22.48
|
|
(1)
|
The first quarter of fiscal 2013 (11-month) included only two months (March 4, 2012 – May 5, 2012) as a result of the change in our fiscal year-end.
|
Plan Category
|
Securities to Be Issued Upon Exercise of Outstanding Options and Rights
(a)
|
|
Weighted Average Exercise Price per Share of Outstanding Options and Rights
(1)
(b)
|
|
Securities Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column (a))
(2)
(c)
|
||||
Equity compensation plans approved by security holders
|
30,789,830
|
|
(3)
|
$
|
36.93
|
|
|
24,844,613
|
|
(1)
|
Includes weighted-average exercise price of outstanding stock options only.
|
(2)
|
Includes
5,485,655
shares of our common stock which have been reserved for issuance under our 2008 and 2003 Employee Stock Purchase Plans.
|
(3)
|
Includes grants of stock options and market-based and performance-based restricted stock under our 1994 Full-Time Non-Qualified Stock Option Plan, as amended; our 1997 Directors' Non-Qualified Stock Option Plan, as amended; our 1997 Employee Non-Qualified Stock Option Plan, as amended; and our 2004 Omnibus Stock and Incentive Plan, as amended.
|
|
FY08
|
|
FY09
|
|
FY10
|
|
FY11
|
|
FY12
|
|
FY13
|
||||||||||||
Best Buy Co., Inc.
|
$
|
100.00
|
|
|
$
|
68.03
|
|
|
$
|
87.50
|
|
|
$
|
78.79
|
|
|
$
|
60.58
|
|
|
$
|
41.72
|
|
S&P 500
|
100.00
|
|
|
56.68
|
|
|
87.07
|
|
|
106.72
|
|
|
112.19
|
|
|
125.59
|
|
||||||
S&P Retailing Group
|
100.00
|
|
|
66.21
|
|
|
113.65
|
|
|
142.39
|
|
|
166.07
|
|
|
201.11
|
|
|
11-Month
|
|
12-Month
|
||||||||||||||||
Fiscal Year
|
2013
(1)(2)
|
|
2012
(1)(3)
|
|
2011
(4)
|
|
2010
(5)
|
|
2009
(6)(7)
|
||||||||||
Consolidated Statements of Earnings Data
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue
|
$
|
45,085
|
|
|
$
|
50,705
|
|
|
$
|
49,747
|
|
|
$
|
49,243
|
|
|
$
|
44,737
|
|
Operating income (loss)
|
(125
|
)
|
|
1,085
|
|
|
2,374
|
|
|
2,368
|
|
|
2,014
|
|
|||||
Net earnings (loss) from continuing operations
|
(421
|
)
|
|
330
|
|
|
1,554
|
|
|
1,495
|
|
|
1,150
|
|
|||||
Gain (loss) from discontinued operations
|
1
|
|
|
(308
|
)
|
|
(188
|
)
|
|
(101
|
)
|
|
(117
|
)
|
|||||
Net earnings (loss) including noncontrolling interests
|
(420
|
)
|
|
22
|
|
|
1,366
|
|
|
1,394
|
|
|
1,033
|
|
|||||
Net earnings (loss) attributable to Best Buy Co., Inc. shareholders
|
(441
|
)
|
|
(1,231
|
)
|
|
1,277
|
|
|
1,317
|
|
|
1,003
|
|
|||||
Per Share Data
|
|
|
|
|
|
|
|
|
|
||||||||||
Net earnings (loss) from continuing operations
|
$
|
(1.31
|
)
|
|
$
|
(2.89
|
)
|
|
$
|
3.44
|
|
|
$
|
3.29
|
|
|
$
|
2.66
|
|
Net gain (loss) from discontinued operations
|
0.01
|
|
|
(0.47
|
)
|
|
(0.36
|
)
|
|
(0.19
|
)
|
|
(0.27
|
)
|
|||||
Net earnings (loss)
|
(1.30
|
)
|
|
(3.36
|
)
|
|
3.08
|
|
|
3.10
|
|
|
2.39
|
|
|||||
Cash dividends declared and paid
|
0.66
|
|
|
0.62
|
|
|
0.58
|
|
|
0.56
|
|
|
0.54
|
|
|||||
Common stock price:
|
|
|
|
|
|
|
|
|
|
||||||||||
High
|
27.95
|
|
|
33.22
|
|
|
48.83
|
|
|
45.55
|
|
|
48.03
|
|
|||||
Low
|
11.20
|
|
|
21.79
|
|
|
30.90
|
|
|
23.97
|
|
|
16.42
|
|
|||||
Operating Statistics
|
|
|
|
|
|
|
|
|
|
||||||||||
Comparable store sales gain (decline)
(8)
|
(2.9
|
)%
|
|
(1.7
|
)%
|
|
(1.8
|
)%
|
|
0.6
|
%
|
|
(1.3
|
)%
|
|||||
Gross profit rate
|
23.6
|
%
|
|
24.8
|
%
|
|
25.2
|
%
|
|
24.5
|
%
|
|
24.4
|
%
|
|||||
Selling, general and administrative expenses rate
|
21.1
|
%
|
|
20.2
|
%
|
|
20.2
|
%
|
|
19.5
|
%
|
|
19.7
|
%
|
|||||
Operating income (loss) rate
|
(0.3
|
)%
|
|
2.1
|
%
|
|
4.8
|
%
|
|
4.8
|
%
|
|
4.5
|
%
|
|||||
Year-End Data
|
|
|
|
|
|
|
|
|
|
||||||||||
Current ratio
(9)
|
1.1
|
|
|
1.2
|
|
|
1.2
|
|
|
1.2
|
|
|
1.0
|
|
|||||
Total assets
|
$
|
16,787
|
|
|
$
|
16,005
|
|
|
$
|
17,849
|
|
|
$
|
18,302
|
|
|
$
|
15,826
|
|
Debt, including current portion
|
2,296
|
|
|
2,208
|
|
|
1,709
|
|
|
1,802
|
|
|
1,963
|
|
|||||
Total equity
(10)
|
3,715
|
|
|
4,366
|
|
|
7,292
|
|
|
6,964
|
|
|
5,156
|
|
|||||
Number of stores
|
|
|
|
|
|
|
|
|
|
||||||||||
Domestic
|
1,503
|
|
|
1,447
|
|
|
1,317
|
|
|
1,190
|
|
|
1,107
|
|
|||||
International
|
2,876
|
|
|
2,861
|
|
|
2,756
|
|
|
2,746
|
|
|
2,745
|
|
|||||
Total
|
4,379
|
|
|
4,308
|
|
|
4,073
|
|
|
3,936
|
|
|
3,852
|
|
|||||
Retail square footage (000s)
|
|
|
|
|
|
|
|
|
|
||||||||||
Domestic
|
42,232
|
|
|
43,785
|
|
|
43,660
|
|
|
42,480
|
|
|
40,924
|
|
|||||
International
|
15,049
|
|
|
15,852
|
|
|
13,848
|
|
|
13,295
|
|
|
13,000
|
|
|||||
Total
|
57,281
|
|
|
59,637
|
|
|
57,508
|
|
|
55,775
|
|
|
53,924
|
|
(1)
|
Fiscal 2013 (11-month) included 48 weeks and fiscal 2012 included 53 weeks. All other periods presented included 52 weeks.
|
(2)
|
Included within our Operating income (loss) and Net earnings (loss) from continuing operations for fiscal 2013 (11-month) is $451 million ($293 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
|
(3)
|
Included within our Operating income (loss) and Net earnings (loss) from continuing operations for fiscal 2012 is $58 million ($38 million net of taxes) of restructuring charges from continuing operations recorded in fiscal 2012 related to measures we took to restructure our business. Also included in Net earnings (loss) from continuing operations for fiscal 2012 is $1.2 billion (net of taxes) of goodwill impairment charges related to Best Buy Europe. Included in Gain (loss) from discontinued operations is $186 million (net of taxes) of restructuring charges recorded in fiscal 2012 related to measures we took to restructure our business. 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).
|
(4)
|
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.
|
(5)
|
Included within our Operating income (loss), Net earnings (loss) from continuing operations and Net earnings (loss) attributable to Best Buy Co., Inc. shareholders for fiscal 2010 is $52 million ($25 million net of taxes and noncontrolling interest) of restructuring charges 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.
|
(6)
|
Included within our Operating income (loss) and Net earnings (loss) from continuing operations for fiscal 2009 is $78 million ($48 million net of tax) of restructuring charges related to measures we took to restructure our businesses. Included within Gain (loss) from discontinued operations is goodwill and tradename impairment charges of $64 million (net of tax) related to our former Speakeasy business. Net earnings (loss) attributable to Best Buy Co., Inc. shareholders for fiscal 2009 includes the net of tax impact of restructuring charges from continuing operations and the goodwill and tradename impairment from discontinued operations.
|
(7)
|
Included within our Net earnings (loss) from continuing operations and Net earnings (loss) attributable to Best Buy Co., Inc. shareholders for fiscal 2009 is $111 million ($96 million net of tax) of investment impairment charges related to our investment in the common stock of CPW.
|
(8)
|
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. 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, websites and online sales, 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 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.
|
(9)
|
The current ratio is calculated by dividing total current assets by total current liabilities.
|
(10)
|
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 year 2009 to include noncontrolling interests of $513 million.
|
•
|
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
|
Fiscal 2013 (11-month) Results Compared With Fiscal 2012 (11-month recast)
(1)
|
||
2013 (11-month)
|
|
2012 (11-month recast)
|
March 2012 - January 2013
|
|
March 2011 - January 2012
|
(1)
|
For entities reported on a lag, the fiscal months included in fiscal 2013 (11-month) and fiscal 2012 (11-month recast) were February through December.
|
Fiscal 2012 Results Compared With Fiscal 2011
(1)
|
||
2012
|
|
2011
|
March 2011 - February 2012
|
|
March 2010 - February 2011
|
(1)
|
For entities reported on a lag, the fiscal months included in fiscal 2012 and fiscal 2011 were January through December.
|
•
|
Reinvigorate and rejuvenate the customer experience
|
•
|
Attract and inspire leaders and employees
|
•
|
Work with vendor partners to innovate and drive value
|
•
|
Increase return on invested capital
|
•
|
Continue our leadership role in positively impacting our world
|
1.
|
Accelerating online growth;
|
2.
|
Enhancing the multi-channel customer experience;
|
3.
|
Increasing revenue and gross profit per square foot through enhanced store space optimization and merchandising;
|
4.
|
Driving down cost of goods sold through supply chain efficiencies;
|
5.
|
Continuing to gradually optimize the U.S. real estate portfolio; and
|
6.
|
Reducing selling, general and administrative ("SG&A") costs.
|
•
|
Fiscal 2013 (11-month) included a net loss from continuing operations of $443 million, compared to a net loss of $1.3 billion in fiscal 2012 (11-month recast). The net loss in fiscal 2013 (11-month) includes the impacts of $822 million of goodwill impairments and $451 million of restructuring charges, while fiscal 2012 (11-month recast) includes the impacts of a $1.2 billion goodwill impairment and $53 million of restructuring charges. Loss per diluted share from continuing operations was $1.31 in fiscal 2013 (11-month), compared to loss per diluted share of $3.38 in fiscal 2012 (11-month recast).
|
•
|
Revenue was $45.1 billion in fiscal 2013 (11-month). The decrease from fiscal 2012 (11-month recast) was driven primarily by a comparable store sales decline of 2.9% and the closure of 47 large-format stores in our Domestic segment.
|
•
|
Our gross profit rate decreased by 1.0% of revenue to 23.6% of revenue. The decrease was primarily due to increased revenue from the wholesale channel in Europe and increased promotional activity in the International segment and the Domestic segment.
|
•
|
We recorded $451 million of restructuring charges related to several restructuring actions we undertook in fiscal 2013 (11-month), including our Renew Blue cost reduction initiatives, Europe store transformation and U.S. large-format store closures and other operational changes.
|
•
|
We generated $1.5 billion in operating cash flow in fiscal 2013 (11-month) with $1.8 billion of cash and cash equivalents, compared to $1.2 billion at the end of fiscal 2012. Capital expenditures remained relatively consistent with prior years at $705 million in fiscal 2013 (11-month).
|
•
|
During fiscal 2013 (11-month), we made four dividend payments totaling $0.66 per share, or $224 million in the aggregate.
|
|
11-Month
|
|
12-Month
|
||||||||||||
Consolidated Performance Summary
|
2013
|
|
2012
|
|
2012
|
|
2011
|
||||||||
|
|
|
(recast)
|
|
|
|
|
||||||||
Revenue
|
$
|
45,085
|
|
|
$
|
46,064
|
|
|
$
|
50,705
|
|
|
$
|
49,747
|
|
Revenue gain (decline) %
|
(2.1
|
)%
|
|
n/a
|
|
|
1.9
|
%
|
|
1.0
|
%
|
||||
Comparable store sales % decline
|
(2.9
|
)%
|
|
(1.6
|
)%
|
|
(1.7
|
)%
|
|
(1.8
|
)%
|
||||
Gross profit
|
$
|
10,649
|
|
|
$
|
11,352
|
|
|
$
|
12,573
|
|
|
$
|
12,541
|
|
Gross profit as a % of revenue
(1)
|
23.6
|
%
|
|
24.6
|
%
|
|
24.8
|
%
|
|
25.2
|
%
|
||||
SG&A
|
$
|
9,502
|
|
|
$
|
9,339
|
|
|
$
|
10,242
|
|
|
$
|
10,029
|
|
SG&A as a % of revenue
(1)
|
21.1
|
%
|
|
20.3
|
%
|
|
20.2
|
%
|
|
20.2
|
%
|
||||
Restructuring charges
|
$
|
450
|
|
|
$
|
34
|
|
|
$
|
39
|
|
|
$
|
138
|
|
Goodwill impairments
|
$
|
822
|
|
|
$
|
1,207
|
|
|
$
|
1,207
|
|
|
$
|
—
|
|
Operating income (loss)
|
$
|
(125
|
)
|
|
$
|
772
|
|
|
$
|
1,085
|
|
|
$
|
2,374
|
|
Operating income (loss) as a % of revenue
|
(0.3
|
)%
|
|
1.7
|
%
|
|
2.1
|
%
|
|
4.8
|
%
|
||||
Net earnings (loss) from continuing operations
(2)
|
$
|
(443
|
)
|
|
$
|
(1,260
|
)
|
|
$
|
(1,057
|
)
|
|
$
|
1,427
|
|
Gain (loss) from discontinued operations
(3)
|
$
|
2
|
|
|
$
|
(165
|
)
|
|
$
|
(174
|
)
|
|
$
|
(150
|
)
|
Net earnings (loss) attributable to Best Buy Co., Inc. shareholders
|
$
|
(441
|
)
|
|
$
|
(1,425
|
)
|
|
$
|
(1,231
|
)
|
|
$
|
1,277
|
|
Diluted earnings (loss) per share from continuing operations
|
$
|
(1.31
|
)
|
|
$
|
(3.38
|
)
|
|
$
|
(2.89
|
)
|
|
$
|
3.44
|
|
Diluted earnings (loss) per share
|
$
|
(1.30
|
)
|
|
$
|
(3.83
|
)
|
|
$
|
(3.36
|
)
|
|
$
|
3.08
|
|
(1)
|
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 Transition Report on Form 10-K.
|
(2)
|
Includes both Net earnings (loss) from continuing operations and Net earnings from continuing operations attributable to noncontrolling interests.
|
(3)
|
Includes both Gain (loss) from discontinued operations and Net loss from discontinued operations attributable to noncontrolling interests.
|
Comparable store sales impact
|
(2.8
|
)%
|
Net store changes
|
(0.2
|
)%
|
Non-comparable store sales channels
(1)
|
0.6
|
%
|
Impact of foreign currency exchange rate fluctuations
|
0.3
|
%
|
Total revenue decrease
|
(2.1
|
)%
|
(1)
|
Non-comparable store sales channels primarily reflects the impact from revenue we earn from sales of merchandise to wholesalers and dealers, as well as other non-comparable sales not included within our comparable store sales calculation.
|
Net new stores
|
1.6
|
%
|
Impact of foreign currency exchange rate fluctuations
|
1.5
|
%
|
Comparable store sales impact
|
0.9
|
%
|
One less week of revenue for Best Buy Europe
(1)
|
(1.6
|
)%
|
Non-comparable sales channels
(2)
|
(0.5
|
)%
|
Total revenue increase
|
1.9
|
%
|
(1)
|
Represents the incremental revenue associated with stores in our Domestic segment and Canada in fiscal 2012, which had 53 weeks of activity, compared to 52 weeks in fiscal 2011.
|
(2)
|
Non-comparable sales channels primarily reflects the impact from revenue we earn from sales of merchandise to wholesalers and dealers, as well as other non-comparable sales not included within our comparable store sales calculation.
|
|
11-Month
|
|
12-Month
|
||||||||||||
Domestic Segment Performance Summary
|
2013
|
|
2012
|
|
2012
|
|
2011
|
||||||||
|
|
|
(recast)
|
|
|
|
|
||||||||
Revenue
|
$
|
33,343
|
|
|
$
|
34,110
|
|
|
$
|
37,615
|
|
|
$
|
37,070
|
|
Revenue gain (decline) %
|
(2.2
|
)%
|
|
n/a
|
|
|
1.5
|
%
|
|
(0.2
|
)%
|
||||
Comparable store sales decline %
|
(1.7
|
)%
|
|
(1.6
|
)%
|
|
(1.6
|
)%
|
|
(3.0
|
)%
|
||||
Gross profit
|
$
|
7,837
|
|
|
$
|
8,231
|
|
|
$
|
9,186
|
|
|
$
|
9,314
|
|
Gross profit as a % of revenue
|
23.5
|
%
|
|
24.1
|
%
|
|
24.4
|
%
|
|
25.1
|
%
|
||||
SG&A
|
$
|
6,773
|
|
|
$
|
6,656
|
|
|
$
|
7,307
|
|
|
$
|
7,229
|
|
SG&A as a % of revenue
|
20.3
|
%
|
|
19.5
|
%
|
|
19.4
|
%
|
|
19.5
|
%
|
||||
Restructuring charges
|
$
|
327
|
|
|
$
|
19
|
|
|
$
|
24
|
|
|
$
|
31
|
|
Goodwill impairments
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Operating income
|
$
|
734
|
|
|
$
|
1,556
|
|
|
$
|
1,855
|
|
|
$
|
2,054
|
|
Operating income as a % of revenue
|
2.2
|
%
|
|
4.6
|
%
|
|
4.9
|
%
|
|
5.5
|
%
|
|
Fiscal 2011
|
|
Fiscal 2012
|
|
Fiscal 2013 (11-Month)
|
|||||||||||||||
|
Total Stores
at End of
Fiscal Year
|
|
Stores
Opened
|
|
Stores
Closed
|
|
Total Stores
at End of
Fiscal Year
|
|
Stores
Opened
|
|
Stores
Closed
|
|
Total Stores
at End of
Fiscal Year
|
|||||||
Best Buy
|
1,099
|
|
|
7
|
|
|
(3
|
)
|
|
1,103
|
|
|
—
|
|
|
(47
|
)
|
|
1,056
|
|
Best Buy Mobile stand-alone
|
177
|
|
|
128
|
|
|
—
|
|
|
305
|
|
|
105
|
|
|
(1
|
)
|
|
409
|
|
Pacific Sales
|
35
|
|
|
—
|
|
|
(1
|
)
|
|
34
|
|
|
—
|
|
|
—
|
|
|
34
|
|
Magnolia Audio Video
|
6
|
|
|
—
|
|
|
(1
|
)
|
|
5
|
|
|
—
|
|
|
(1
|
)
|
|
4
|
|
Total Domestic segment stores
|
1,317
|
|
|
135
|
|
|
(5
|
)
|
|
1,447
|
|
|
105
|
|
|
(49
|
)
|
|
1,503
|
|
Comparable store sales impact
|
(1.6
|
)%
|
Net store changes
|
(0.9
|
)%
|
Non-comparable store sales channels
(1)
|
0.3
|
%
|
Total revenue decrease
|
(2.2
|
)%
|
(1)
|
Non-comparable store sales channels reflects the impact from revenue we earn from sales channels not yet included within our comparable store sales calculation.
|
|
Revenue Mix Summary
|
|
Comparable Store Sales Summary
|
||||||||
|
11 Months Ended
|
|
11 Months Ended
|
||||||||
|
February 2, 2013
|
|
January 28, 2012
|
|
February 2, 2013
|
|
January 28, 2012
|
||||
Consumer Electronics
|
33
|
%
|
|
36
|
%
|
|
(7.5
|
)%
|
|
(5.7
|
)%
|
Computing and Mobile Phones
|
44
|
%
|
|
40
|
%
|
|
7.5
|
%
|
|
6.4
|
%
|
Entertainment
|
10
|
%
|
|
12
|
%
|
|
(21.4
|
)%
|
|
(16.0
|
)%
|
Appliances
|
6
|
%
|
|
5
|
%
|
|
10.1
|
%
|
|
10.6
|
%
|
Services
|
6
|
%
|
|
6
|
%
|
|
0.8
|
%
|
|
(0.1
|
)%
|
Other
|
1
|
%
|
|
1
|
%
|
|
n/a
|
|
|
n/a
|
|
Total
|
100
|
%
|
|
100
|
%
|
|
(1.7
|
)%
|
|
(1.6
|
)%
|
•
|
Consumer Electronics:
The
7.5%
comparable store sales decline was primarily driven by a decrease in the sales of digital imaging products, particularly compact cameras and camcorders, partially due to convergence with smartphones. In addition, we experienced a decrease in television revenue due primarily to a decrease in average selling price from an increased sales mix of small and mid-sized televisions. These declines were partially offset by the increased sales of e-Readers.
|
•
|
Computing and Mobile Phones:
The
7.5%
comparable store sales gain resulted primarily from increased sales of mobile phones due to an increased mix of higher-priced smartphones and new product launches, as well as increased sales of tablets driven by new product launches, consumer demand and continued expansion of available platforms. The strong performance from mobile phones and tablets was partially offset by a decline in sales of notebook and desktop computers.
|
•
|
Entertainment:
The
21.4%
comparable stores sales decline was mainly the result of a decline in gaming due to aging gaming platforms, fewer new software releases and the migration of casual gamers to other platforms, such as tablets and smartphones.
|
•
|
Appliances:
The
10.1%
comparable store sales gain was due to the implementation of operational improvements, including the addition of more Pacific Kitchen and Home store-within-a-store concepts, promotional effectiveness and improved performance in small appliances.
|
•
|
Services:
The
0.8%
comparable store sales gain was primarily due to the benefit from a periodic profit sharing payment that was earned based on the long-term performance of the our externally managed extended service plan portfolio, partially offset by a decrease in the sales of notebook computers, which contributed to fewer service products sales opportunities.
|
•
|
increased promotional activity, notably in computing, home theater, MP3 players and movies; and
|
•
|
an increased mix of smartphones with higher average selling prices but a lower margin rate;
|
•
|
partially offset by an improvement in sales mix due to decreased sales of computing and gaming products.
|
Extra week of revenue
(1)
|
1.8
|
%
|
Net new stores
|
1.3
|
%
|
Comparable store sales impact
|
(1.6
|
)%
|
Total revenue increase
|
1.5
|
%
|
(1)
|
Represents the incremental revenue associated with stores in our Domestic segment in fiscal 2012, which had 53 weeks of activity, compared to 52 weeks in fiscal 2011.
|
|
Revenue Mix Summary
|
|
Comparable Store Sales Summary
|
||||||||
|
12 Months Ended
|
|
12 Months Ended
|
||||||||
|
March 3, 2012
|
|
February 26, 2011
|
|
March 3, 2012
|
|
February 26, 2011
|
||||
Consumer Electronics
|
36
|
%
|
|
37
|
%
|
|
(5.4
|
)%
|
|
(6.3
|
)%
|
Computing and Mobile Phones
|
40
|
%
|
|
37
|
%
|
|
6.0
|
%
|
|
3.6
|
%
|
Entertainment
|
12
|
%
|
|
14
|
%
|
|
(16.3
|
)%
|
|
(13.3
|
)%
|
Appliances
|
5
|
%
|
|
5
|
%
|
|
10.6
|
%
|
|
7.0
|
%
|
Services
|
6
|
%
|
|
6
|
%
|
|
(0.6
|
)%
|
|
0.5
|
%
|
Other
|
1
|
%
|
|
1
|
%
|
|
n/a
|
|
|
n/a
|
|
Total
|
100
|
%
|
|
100
|
%
|
|
(1.6
|
)%
|
|
(3.0
|
)%
|
•
|
Consumer Electronics:
The 5.4% comparable store sales decline was driven primarily by decreases in the sales of digital imaging products and televisions. The decrease in digital imaging products resulted from a combination of supply chain constraints due to natural disasters in Asia in both the early and later portions of the fiscal year, as well as overall industry softness. The decrease in television sales was mainly due to a decline in average selling price. The declines were partially offset by strong sales of e-Readers due to high customer interest, new product launches and our broad assortment of such products.
|
•
|
Computing and Mobile Phones:
The 6.0% comparable store sales gain resulted primarily from increased sales of tablets, as consumer demand remained strong, and mobile phones due to new product launches in the second half of the year. The strong performance from tablets and mobile phones was partially offset by a decline in sales of notebook computers.
|
•
|
Entertainment:
The 16.3% comparable stores sales decline was mainly the result of a decline in gaming due to overall industry softness, particularly in the fourth quarter. In addition, we continued to experience declines in the sales of movies and music.
|
•
|
Appliances:
The 10.6% comparable store sales gain was primarily due to increased sales resulting from effective promotional activity.
|
•
|
Services:
The 0.6% comparable store sales decline was primarily due to a decrease in computer services as a result of a shift in focus from one-time repair services to ongoing technical support service contracts, partially offset by increases in the sales of repair services (primarily related to mobile phones) and warranties.
|
•
|
increased promotional activity, notably in televisions, movies and gaming;
|
•
|
an increased sales mix of promotional items;
|
•
|
a shift from one-time computer repair services to ongoing support contracts; and
|
•
|
an increased sales mix of lower-margin mobile computing products;
|
•
|
partially offset by increased sales of higher-margin service products for mobile phones.
|
|
11-Month
|
|
12-Month
|
||||||||||||
International Segment Performance Summary
|
2013
|
|
2012
|
|
2012
|
|
2011
|
||||||||
|
|
|
(recast)
|
|
|
|
|
||||||||
Revenue
|
$
|
11,742
|
|
|
$
|
11,954
|
|
|
$
|
13,090
|
|
|
$
|
12,677
|
|
Revenue gain (decline) %
|
(1.8
|
)%
|
|
n/a
|
|
|
3.3
|
%
|
|
4.7
|
%
|
||||
Comparable store sales % gain (decline)
|
(6.9
|
)%
|
|
(2.5
|
)%
|
|
(2.1
|
)%
|
|
2.3
|
%
|
||||
Gross profit
|
$
|
2,812
|
|
|
$
|
3,121
|
|
|
$
|
3,387
|
|
|
$
|
3,227
|
|
Gross profit as a % of revenue
|
23.9
|
%
|
|
26.1
|
%
|
|
25.9
|
%
|
|
25.5
|
%
|
||||
SG&A
|
$
|
2,729
|
|
|
$
|
2,683
|
|
|
$
|
2,935
|
|
|
$
|
2,800
|
|
SG&A as a % of revenue
|
23.2
|
%
|
|
22.4
|
%
|
|
22.4
|
%
|
|
22.1
|
%
|
||||
Restructuring charges
|
$
|
123
|
|
|
$
|
15
|
|
|
$
|
15
|
|
|
$
|
107
|
|
Goodwill impairments
|
$
|
819
|
|
|
$
|
1,207
|
|
|
$
|
1,207
|
|
|
$
|
—
|
|
Operating income (loss)
|
$
|
(859
|
)
|
|
$
|
(784
|
)
|
|
$
|
(770
|
)
|
|
$
|
320
|
|
Operating income (loss) as a % of revenue
|
(7.3
|
)%
|
|
(6.6
|
)%
|
|
(5.9
|
)%
|
|
2.5
|
%
|
|
Fiscal 2011
|
|
Fiscal 2012
|
|
Fiscal 2013 (11-Month)
(1)
|
|||||||||||||||
|
Total Stores
at End of
Fiscal Year
|
|
Stores
Opened
|
|
Stores
Closed
|
|
Total Stores
at End of
Fiscal Year
|
|
Stores
Opened
|
|
Stores
Closed
|
|
Total Stores
at End of
Fiscal Year
|
|||||||
Best Buy Europe
(2)
|
2,357
|
|
|
145
|
|
|
(109
|
)
|
|
2,393
|
|
|
122
|
|
|
(126
|
)
|
|
2,389
|
|
Canada
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Future Shop
|
146
|
|
|
5
|
|
|
(2
|
)
|
|
149
|
|
|
—
|
|
|
(9
|
)
|
|
140
|
|
Best Buy
|
71
|
|
|
6
|
|
|
—
|
|
|
77
|
|
|
2
|
|
|
(7
|
)
|
|
72
|
|
Best Buy Mobile stand-alone
|
10
|
|
|
20
|
|
|
—
|
|
|
30
|
|
|
19
|
|
|
—
|
|
|
49
|
|
China
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Five Star
|
166
|
|
|
41
|
|
|
(3
|
)
|
|
204
|
|
|
12
|
|
|
(5
|
)
|
|
211
|
|
Mexico
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Best Buy
|
6
|
|
|
2
|
|
|
—
|
|
|
8
|
|
|
6
|
|
|
—
|
|
|
14
|
|
Express
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
Total International segment stores
|
2,756
|
|
|
219
|
|
|
(114
|
)
|
|
2,861
|
|
|
162
|
|
|
(147
|
)
|
|
2,876
|
|
(1)
|
Fiscal 2013 includes store opening and closing activity for the month of January for Best Buy Europe, China and Mexico.
|
(2)
|
Represents small-format The Carphone Warehouse and The Phone House stores.
|
Comparable store sales impact
|
(6.0
|
)%
|
Net store changes
|
1.7
|
%
|
Non-comparable store sales channels
(1)
|
1.5
|
%
|
Impact of foreign currency exchange rate fluctuations
|
1.0
|
%
|
Total revenue decrease
|
(1.8
|
)%
|
(1)
|
Non-comparable store sales channels primarily reflects the impact from revenue we earn from sales of merchandise to wholesalers and dealers, as well as other non-comparable sales not included within our comparable store sales calculation.
|
|
Revenue Mix Summary
|
|
Comparable Store Sales Summary
|
||||||||
|
11 Months Ended
|
|
11 Months Ended
|
||||||||
|
February 2, 2013
|
|
January 28, 2012
|
|
February 2, 2013
|
|
January 28, 2012
|
||||
Consumer Electronics
|
18
|
%
|
|
20
|
%
|
|
(16.5
|
)%
|
|
(7.0
|
)%
|
Computing and Mobile Phones
|
61
|
%
|
|
56
|
%
|
|
0.1
|
%
|
|
(0.3
|
)%
|
Entertainment
|
4
|
%
|
|
5
|
%
|
|
(17.4
|
)%
|
|
(13.4
|
)%
|
Appliances
|
10
|
%
|
|
10
|
%
|
|
(15.1
|
)%
|
|
2.9
|
%
|
Services
|
7
|
%
|
|
9
|
%
|
|
(6.9
|
)%
|
|
(1.3
|
)%
|
Other
|
<1%
|
|
|
<1%
|
|
|
n/a
|
|
|
n/a
|
|
Total
|
100
|
%
|
|
100
|
%
|
|
(6.9
|
)%
|
|
(2.5
|
)%
|
•
|
Consumer Electronics:
The
16.5%
comparable store sales decline was driven primarily by decreases in the sales of televisions and digital imaging products, primarily in Canada, as a result of industry softness and device convergence similar to that experienced within our Domestic segment.
|
•
|
Computing and Mobile Phones:
The
0.1%
comparable store sales gain was caused primarily from an increase in sales of mobile phones in Europe and Canada, as well as increased tablet sales in Canada. These gains were almost fully offset by a decline in sales of notebooks and desktop computers.
|
•
|
Entertainment:
The
17.4%
comparable store sales decline was primarily from decreases in gaming in Canada as a result of factors similar to those experienced in our Domestic segment.
|
•
|
Appliances:
The
15.1%
comparable store sales decline was primarily due to a decrease in sales of appliances in our Five Star operations due to a slowdown in the housing market and the end of certain government stimulus programs in China in December 2011.
|
•
|
Services:
The
6.9%
comparable store sales decline was primarily due to a decrease in services in Canada and Europe.
|
Impact of foreign currency exchange rate fluctuations
|
3.6
|
%
|
Net new stores
|
2.6
|
%
|
Extra week of revenue
(1)
|
0.6
|
%
|
Comparable store sales impact
|
(1.8
|
)%
|
Non-comparable sales channels
(2)
|
(1.7
|
)%
|
Total revenue increase
|
3.3
|
%
|
(1)
|
Reflects the incremental revenue associated with stores in Canada in fiscal 2012, which had 53 weeks of activity, compared to 52 weeks in fiscal 2011.
|
(2)
|
Non-comparable sales channels primarily reflects the impact from revenue we earn from sales of merchandise to wholesalers and dealers as well as other non-comparable sales not included within our comparable store sales calculation.
|
|
Revenue Mix Summary
|
|
Comparable Store Sales Summary
|
||||||||
|
12 Months Ended
|
|
12 Months Ended
|
||||||||
|
March 3, 2012
|
|
February 26, 2011
|
|
March 3, 2012
|
|
February 26, 2011
|
||||
Consumer Electronics
|
20
|
%
|
|
20
|
%
|
|
(6.9
|
)%
|
|
(2.8
|
)%
|
Computing and Mobile Phones
|
56
|
%
|
|
55
|
%
|
|
—
|
%
|
|
4.9
|
%
|
Entertainment
|
5
|
%
|
|
6
|
%
|
|
(13.3
|
)%
|
|
(12.4
|
)%
|
Appliances
|
10
|
%
|
|
9
|
%
|
|
4.5
|
%
|
|
15.8
|
%
|
Services
|
9
|
%
|
|
10
|
%
|
|
(1.3
|
)%
|
|
(1.6
|
)%
|
Other
|
<1%
|
|
|
<1%
|
|
|
n/a
|
|
|
n/a
|
|
Total
|
100
|
%
|
|
100
|
%
|
|
(2.1
|
)%
|
|
2.3
|
%
|
•
|
Consumer Electronics:
The 6.9% comparable store sales decline was driven primarily by decreases in the sales of digital imaging products and televisions as a result of similar factors to those experienced within our Domestic segment.
|
•
|
Computing and Mobile Phones:
The flat comparable store sales resulted from decreased mobile phone sales in our small-format stores in Europe, as well as declines in the sales of desktops and monitors, as consumer preference continued to shift toward mobile computing devices. These declines were fully offset by increased sales of mobile computing devices due to strong tablet sales and increased sales of mobile phones throughout the remainder of the stores in our International segment.
|
•
|
Entertainment:
The 13.3% comparable store sales decline resulted primarily from decreases in the sales of gaming in Canada due to overall market softness, similar to trends seen in our Domestic segment.
|
•
|
Appliances:
The 4.5% comparable store sales gain was primarily due to an increase in the sales of appliances in our Five Star operations, as consumers continued to take advantage of government stimulus programs before they effectively ended in December 2011. Broadly, the stimulus programs provided customers a subsidy or discount when purchasing a new energy-efficient appliance and trading in their old appliance.
|
•
|
Services:
The 1.3% comparable store sales decline was due to a decrease in the sales of extended warranties and repair services, partially offset by an increase in the customer base in our mobile virtual network operator and fixed line services in Europe.
|
•
|
improved margin rates in Canada, especially in televisions and notebook computers; and
|
•
|
an improved margin rate in Five Star as a result of improved cost programs with vendors;
|
•
|
partially offset by higher sales in our Five Star business, which has a relatively lower gross profit rate; and
|
•
|
a rate decrease in our small-format stores in Europe due to market pressures.
|
|
11-Month
|
|
12-Month
|
||||||||||||
|
2013
|
|
2012
|
|
2012
|
|
2011
|
||||||||
|
|
|
(recast)
|
|
|
|
|
||||||||
Total cash provided by (used in):
|
|
|
|
|
|
|
|
||||||||
Operating activities
|
$
|
1,454
|
|
|
$
|
3,097
|
|
|
$
|
3,293
|
|
|
$
|
1,190
|
|
Investing activities
|
(538
|
)
|
|
(647
|
)
|
|
(724
|
)
|
|
(569
|
)
|
||||
Financing activities
|
(211
|
)
|
|
(2,141
|
)
|
|
(2,478
|
)
|
|
(1,357
|
)
|
||||
Effect of exchange rate changes on cash
|
(4
|
)
|
|
(6
|
)
|
|
5
|
|
|
13
|
|
||||
Increase (decrease) in cash and cash equivalents
|
$
|
701
|
|
|
$
|
303
|
|
|
$
|
96
|
|
|
$
|
(723
|
)
|
Rating Agency
|
Rating
|
|
Outlook
|
Fitch
|
BB-
|
|
Negative
|
Moody's
|
Baa2
|
|
Developing
|
Standard & Poor's
|
BB
|
|
Negative
|
|
11-Month
|
|
12-Month
|
||||||||||||
|
2013
|
|
2012
|
|
2012
|
|
2011
|
||||||||
|
|
|
(recast)
|
|
|
|
|
||||||||
New stores
|
$
|
111
|
|
|
$
|
170
|
|
|
$
|
171
|
|
|
$
|
193
|
|
Store-related projects
(1)
|
149
|
|
|
223
|
|
|
231
|
|
|
208
|
|
||||
Information technology
|
394
|
|
|
274
|
|
|
353
|
|
|
327
|
|
||||
Other
|
51
|
|
|
42
|
|
|
11
|
|
|
16
|
|
||||
Total capital expenditures
(2)
|
$
|
705
|
|
|
$
|
709
|
|
|
$
|
766
|
|
|
$
|
744
|
|
(1)
|
Includes store remodels and expansions, as well as various merchandising projects.
|
(2)
|
Total capital expenditures exclude non-cash capital expenditures of
$29 million
,
$13 million
,
$18 million
and
$81 million
for fiscal 2013 (11-month), 2012 (11-month recast), 2012, and 2011, respectively. Non-cash capital expenditures are comprised of capitalized leases, as well as additions to property and equipment included in accounts payable.
|
Adjusted debt to EBITDAR =
|
Adjusted debt
|
|
EBITDAR
|
|
|
2013
(1)
|
|
2012
(1)
|
||||
Debt (including current portion)
|
$
|
2,296
|
|
|
$
|
2,208
|
|
Capitalized operating lease obligations (8 times rental expense)
(2)
|
9,402
|
|
|
9,402
|
|
||
Adjusted debt
|
$
|
11,698
|
|
|
$
|
11,610
|
|
|
|
|
|
||||
Net earnings (loss) from continuing operations including noncontrolling interests
(3)
|
$
|
(228
|
)
|
|
$
|
330
|
|
Goodwill impairment
|
822
|
|
|
1,207
|
|
||
Interest expense, net
|
93
|
|
|
97
|
|
||
Income tax expense
|
310
|
|
|
709
|
|
||
Depreciation and amortization expense
(4)
|
1,437
|
|
|
968
|
|
||
Rental expense
|
1,175
|
|
|
1,175
|
|
||
EBITDAR
|
$
|
3,609
|
|
|
$
|
4,486
|
|
|
|
|
|
||||
Debt to net earnings ratio
|
(10.1
|
)
|
|
6.7
|
|
||
Adjusted debt to EBITDAR ratio
|
3.2
|
|
|
2.6
|
|
(1)
|
Debt is reflected as of the balance sheet dates for each of the respective fiscal periods, while rental expense and the other components of EBITDAR represent activity for the 12 months ended February 2, 2013 and March 3, 2012.
|
(2)
|
The multiple of eight times annual rental expense in the calculation of our capitalized operating lease obligations is the multiple used for the retail sector by one of the nationally recognized credit rating agencies that rate our creditworthiness, and we consider it to be an appropriate multiple for our lease portfolio.
|
(3)
|
We utilize net earnings including noncontrolling interests within our calculation; as such, net earnings and related cash flows attributable to noncontrolling interests are available to service our debt and operating lease commitments.
|
(4)
|
Depreciation and amortization expense includes impairments of fixed assets, investments and intangible assets (including impairments associated with our fiscal restructuring activities).
|
|
|
|
Payments Due by Period
|
||||||||||||||||
Contractual Obligations
|
Total
|
|
Less Than
1 Year
|
|
1-3 Years
|
|
3-5 Years
|
|
More Than
5 Years
|
||||||||||
Short-term debt obligations
|
$
|
596
|
|
|
$
|
596
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Long-term debt obligations
|
1,499
|
|
|
500
|
|
|
—
|
|
|
350
|
|
|
649
|
|
|||||
Capital lease obligations
|
80
|
|
|
24
|
|
|
36
|
|
|
5
|
|
|
15
|
|
|||||
Financing lease obligations
|
121
|
|
|
23
|
|
|
44
|
|
|
30
|
|
|
24
|
|
|||||
Interest payments
|
446
|
|
|
85
|
|
|
126
|
|
|
84
|
|
|
151
|
|
|||||
Operating lease obligations
(1)
|
7,013
|
|
|
1,238
|
|
|
2,190
|
|
|
1,591
|
|
|
1,994
|
|
|||||
Purchase obligations
(2)
|
3,622
|
|
|
2,199
|
|
|
976
|
|
|
316
|
|
|
131
|
|
|||||
Unrecognized tax benefits
(3)
|
383
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Deferred compensation
(4)
|
58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total
|
$
|
13,818
|
|
|
$
|
4,665
|
|
|
$
|
3,372
|
|
|
$
|
2,376
|
|
|
$
|
2,964
|
|
(1)
|
Operating lease obligations do not include payments to landlords covering real estate taxes and common area maintenance. These charges, if included, would increase total operating lease obligations by $1.6 billion at
February 2, 2013
.
|
(2)
|
Purchase obligations include agreements to purchase goods or services that are enforceable, are legally binding and specify all significant terms, including fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the transaction. Purchase obligations do not include agreements that are cancelable without penalty. Additionally, although they are not legally binding agreements, we included open purchase orders in the table above. Substantially all open purchase orders are fulfilled within 30 days.
|
(3)
|
Unrecognized tax benefits relate to uncertain tax positions recorded under accounting guidance that we adopted on March 4, 2007. As we are not able to reasonably estimate the timing of the payments or the amount by which the liability will increase or decrease over time, the related balances have not been reflected in the "Payments Due by Period" section of the table.
|
(4)
|
Included in Long-term liabilities on our Consolidated Balance Sheet at
February 2, 2013
, was a $58 million obligation for deferred compensation. As the specific payment dates for the deferred compensation are unknown, the related balances have not been reflected in the "Payments Due by Period" section of the table.
|
(1)
|
Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect our transactions and the dispositions of our assets;
|
(2)
|
Provide reasonable assurance that our transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that our receipts and expenditures are being made only in accordance with authorizations of our management and Board; and
|
(3)
|
Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on our financial statements.
|
|
|
|
Hubert Joly
President and Chief Executive Officer
(duly authorized and principal executive officer)
|
|
Sharon L. McCollam
Executive Vice President, Chief Administrative and Chief Financial Officer
(duly authorized and principal financial officer)
|
|
|
February 2, 2013
|
|
March 3, 2012
|
||||
Assets
|
|
|
|
|
||||
Current Assets
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
1,826
|
|
|
$
|
1,199
|
|
Receivables
|
|
2,704
|
|
|
2,288
|
|
||
Merchandise inventories
|
|
6,571
|
|
|
5,731
|
|
||
Other current assets
|
|
946
|
|
|
1,079
|
|
||
Total current assets
|
|
12,047
|
|
|
10,297
|
|
||
Property and Equipment
|
|
|
|
|
||||
Land and buildings
|
|
756
|
|
|
775
|
|
||
Leasehold improvements
|
|
2,386
|
|
|
2,367
|
|
||
Fixtures and equipment
|
|
5,120
|
|
|
4,981
|
|
||
Property under capital lease
|
|
113
|
|
|
129
|
|
||
|
|
8,375
|
|
|
8,252
|
|
||
Less accumulated depreciation
|
|
5,105
|
|
|
4,781
|
|
||
Net property and equipment
|
|
3,270
|
|
|
3,471
|
|
||
Goodwill
|
|
528
|
|
|
1,335
|
|
||
Tradenames, Net
|
|
131
|
|
|
130
|
|
||
Customer Relationships, Net
|
|
203
|
|
|
229
|
|
||
Equity and Other Investments
|
|
86
|
|
|
140
|
|
||
Other Assets
|
|
522
|
|
|
403
|
|
||
Total Assets
|
|
$
|
16,787
|
|
|
$
|
16,005
|
|
|
|
|
|
|
||||
Liabilities and Equity
|
|
|
|
|
||||
Current Liabilities
|
|
|
|
|
||||
Accounts payable
|
|
$
|
6,951
|
|
|
$
|
5,364
|
|
Unredeemed gift card liabilities
|
|
428
|
|
|
456
|
|
||
Accrued compensation and related expenses
|
|
520
|
|
|
539
|
|
||
Accrued liabilities
|
|
1,639
|
|
|
1,685
|
|
||
Accrued income taxes
|
|
129
|
|
|
288
|
|
||
Short-term debt
|
|
596
|
|
|
480
|
|
||
Current portion of long-term debt
|
|
547
|
|
|
43
|
|
||
Total current liabilities
|
|
10,810
|
|
|
8,855
|
|
||
Long-Term Liabilities
|
|
1,109
|
|
|
1,099
|
|
||
Long-Term Debt
|
|
1,153
|
|
|
1,685
|
|
||
Contingencies and Commitments (Note 15)
|
|
|
|
|
||||
Equity
|
|
|
|
|
||||
Best Buy Co., Inc. Shareholders' Equity
|
|
|
|
|
||||
Preferred stock, $1.00 par value: Authorized — 400,000 shares; Issued and outstanding — none
|
|
—
|
|
|
—
|
|
||
Common stock, $0.10 par value: Authorized — 1.0 billion shares; Issued and outstanding — 338,276,000 and 341,400,000 shares, respectively
|
|
34
|
|
|
34
|
|
||
Additional paid-in capital
|
|
54
|
|
|
—
|
|
||
Retained earnings
|
|
2,861
|
|
|
3,621
|
|
||
Accumulated other comprehensive income
|
|
112
|
|
|
90
|
|
||
Total Best Buy Co., Inc. shareholders' equity
|
|
3,061
|
|
|
3,745
|
|
||
Noncontrolling interests
|
|
654
|
|
|
621
|
|
||
Total equity
|
|
3,715
|
|
|
4,366
|
|
||
Total Liabilities and Equity
|
|
$
|
16,787
|
|
|
$
|
16,005
|
|
|
|
11 Months Ended
|
|
12 Months Ended
|
||||||||||||
Fiscal Years Ended
|
|
February 2, 2013
|
|
|
January 28, 2012
|
|
|
March 3, 2012
|
|
|
February 26, 2011
|
|
||||
|
|
|
|
(Unaudited recast)
|
|
|
|
|
||||||||
Revenue
|
|
$
|
45,085
|
|
|
$
|
46,064
|
|
|
$
|
50,705
|
|
|
$
|
49,747
|
|
Cost of goods sold
|
|
34,435
|
|
|
34,693
|
|
|
38,113
|
|
|
37,197
|
|
||||
Restructuring charges — cost of goods sold
|
|
1
|
|
|
19
|
|
|
19
|
|
|
9
|
|
||||
Gross profit
|
|
10,649
|
|
|
11,352
|
|
|
12,573
|
|
|
12,541
|
|
||||
Selling, general and administrative expenses
|
|
9,502
|
|
|
9,339
|
|
|
10,242
|
|
|
10,029
|
|
||||
Restructuring charges
|
|
450
|
|
|
34
|
|
|
39
|
|
|
138
|
|
||||
Goodwill impairments
|
|
822
|
|
|
1,207
|
|
|
1,207
|
|
|
—
|
|
||||
Operating income (loss)
|
|
(125
|
)
|
|
772
|
|
|
1,085
|
|
|
2,374
|
|
||||
Other income (expense)
|
|
|
|
|
|
|
|
|
||||||||
Gain on sale of investments
|
|
18
|
|
|
55
|
|
|
55
|
|
|
—
|
|
||||
Investment income and other
|
|
33
|
|
|
37
|
|
|
37
|
|
|
43
|
|
||||
Interest expense
|
|
(112
|
)
|
|
(121
|
)
|
|
(134
|
)
|
|
(86
|
)
|
||||
Earnings (loss) from continuing operations before income tax expense and equity in income (loss) of affiliates
|
|
(186
|
)
|
|
743
|
|
|
1,043
|
|
|
2,331
|
|
||||
Income tax expense
|
|
231
|
|
|
622
|
|
|
709
|
|
|
779
|
|
||||
Equity in income (loss) of affiliates
|
|
(4
|
)
|
|
(3
|
)
|
|
(4
|
)
|
|
2
|
|
||||
Net earnings (loss) from continuing operations
|
|
(421
|
)
|
|
118
|
|
|
330
|
|
|
1,554
|
|
||||
Gain (loss) from discontinued operations (Note 4), net of tax of $(2), $83, $89 and $65
|
|
1
|
|
|
(295
|
)
|
|
(308
|
)
|
|
(188
|
)
|
||||
Net earnings (loss) including noncontrolling interests
|
|
(420
|
)
|
|
(177
|
)
|
|
22
|
|
|
1,366
|
|
||||
Net earnings from continuing operations attributable to noncontrolling interests
|
|
(22
|
)
|
|
(1,378
|
)
|
|
(1,387
|
)
|
|
(127
|
)
|
||||
Net loss from discontinued operations attributable to noncontrolling interests
|
|
1
|
|
|
130
|
|
|
134
|
|
|
38
|
|
||||
Net earnings (loss) attributable to Best Buy Co., Inc. shareholders
|
|
$
|
(441
|
)
|
|
$
|
(1,425
|
)
|
|
$
|
(1,231
|
)
|
|
$
|
1,277
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings (loss) per share attributable to Best Buy Co., Inc. shareholders
|
|
|
|
|
|
|
||||||||||
Continuing operations
|
|
$
|
(1.31
|
)
|
|
$
|
(3.38
|
)
|
|
$
|
(2.89
|
)
|
|
$
|
3.51
|
|
Discontinued operations
|
|
0.01
|
|
|
(0.45
|
)
|
|
(0.47
|
)
|
|
(0.37
|
)
|
||||
Basic earnings (loss) per share
|
|
$
|
(1.30
|
)
|
|
$
|
(3.83
|
)
|
|
$
|
(3.36
|
)
|
|
$
|
3.14
|
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings (loss) per share attributable to Best Buy Co., Inc. shareholders
|
|
|
|
|
|
|
||||||||||
Continuing operations
|
|
$
|
(1.31
|
)
|
|
$
|
(3.38
|
)
|
|
$
|
(2.89
|
)
|
|
$
|
3.44
|
|
Discontinued operations
|
|
0.01
|
|
|
(0.45
|
)
|
|
(0.47
|
)
|
|
(0.36
|
)
|
||||
Diluted earnings (loss) per share
|
|
$
|
(1.30
|
)
|
|
$
|
(3.83
|
)
|
|
$
|
(3.36
|
)
|
|
$
|
3.08
|
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average common shares outstanding (in millions)
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
338.6
|
|
|
372.5
|
|
|
366.3
|
|
|
406.1
|
|
||||
Diluted
|
|
338.6
|
|
|
372.5
|
|
|
366.3
|
|
|
416.5
|
|
|
|
11 Months Ended
|
|
12 Months Ended
|
||||||||
Fiscal Years Ended
|
|
February 2, 2013
|
|
|
March 3, 2012
|
|
|
February 26, 2011
|
|
|||
Net earnings (loss) including noncontrolling interests
|
|
$
|
(420
|
)
|
|
$
|
22
|
|
|
$
|
1,366
|
|
Foreign currency translation adjustments
|
|
15
|
|
|
(21
|
)
|
|
34
|
|
|||
Unrealized gain (loss) on available-for-sale investments
|
|
2
|
|
|
(26
|
)
|
|
58
|
|
|||
Unrealized loss on cash flow hedging instruments
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|||
Reclassification adjustment for gain on available-for-sale investments
|
|
—
|
|
|
(48
|
)
|
|
—
|
|
|||
Comprehensive income (loss) including noncontrolling interests
|
|
(403
|
)
|
|
(73
|
)
|
|
1,456
|
|
|||
Comprehensive loss attributable to noncontrolling interests
|
|
(27
|
)
|
|
(1,241
|
)
|
|
(46
|
)
|
|||
Comprehensive income (loss) attributable to Best Buy Co., Inc. shareholders
|
|
$
|
(430
|
)
|
|
$
|
(1,314
|
)
|
|
$
|
1,410
|
|
|
|
11 Months Ended
|
|
12 Months Ended
|
||||||||||||
Fiscal Years Ended
|
|
February 2, 2013
|
|
|
January 28, 2012
|
|
|
March 3, 2012
|
|
|
February 26, 2011
|
|
||||
|
|
|
|
(Unaudited recast)
|
|
|
|
|
||||||||
Operating Activities
|
|
|
|
|
|
|
|
|
||||||||
Net earnings (loss) including noncontrolling interests
|
|
$
|
(420
|
)
|
|
$
|
(177
|
)
|
|
$
|
22
|
|
|
$
|
1,366
|
|
Adjustments to reconcile net earnings (loss) to total cash provided by operating activities:
|
|
|
|
|
|
|
|
|
||||||||
Depreciation
|
|
794
|
|
|
811
|
|
|
897
|
|
|
896
|
|
||||
Amortization of definite-lived intangible assets
|
|
38
|
|
|
42
|
|
|
48
|
|
|
82
|
|
||||
Restructuring charges
|
|
449
|
|
|
280
|
|
|
287
|
|
|
222
|
|
||||
Goodwill impairments
|
|
822
|
|
|
1,207
|
|
|
1,207
|
|
|
—
|
|
||||
Stock-based compensation
|
|
107
|
|
|
110
|
|
|
120
|
|
|
121
|
|
||||
Realized gain on sale of investment
|
|
—
|
|
|
(55
|
)
|
|
(55
|
)
|
|
—
|
|
||||
Deferred income taxes
|
|
(19
|
)
|
|
110
|
|
|
28
|
|
|
(134
|
)
|
||||
Excess tax benefits from stock-based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11
|
)
|
||||
Other, net
|
|
41
|
|
|
20
|
|
|
26
|
|
|
11
|
|
||||
Changes in operating assets and liabilities, net of acquired assets and liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Receivables
|
|
(551
|
)
|
|
(342
|
)
|
|
41
|
|
|
(371
|
)
|
||||
Merchandise inventories
|
|
(912
|
)
|
|
(1,067
|
)
|
|
120
|
|
|
(400
|
)
|
||||
Other assets
|
|
(65
|
)
|
|
29
|
|
|
(24
|
)
|
|
40
|
|
||||
Accounts payable
|
|
1,735
|
|
|
2,095
|
|
|
574
|
|
|
(443
|
)
|
||||
Other liabilities
|
|
(339
|
)
|
|
82
|
|
|
(23
|
)
|
|
(156
|
)
|
||||
Income taxes
|
|
(226
|
)
|
|
(48
|
)
|
|
25
|
|
|
(33
|
)
|
||||
Total cash provided by operating activities
|
|
1,454
|
|
|
3,097
|
|
|
3,293
|
|
|
1,190
|
|
||||
Investing Activities
|
|
|
|
|
|
|
|
|
||||||||
Additions to property and equipment, net of $29, $13, $18 and $81 non-cash capital expenditures
|
|
(705
|
)
|
|
(709
|
)
|
|
(766
|
)
|
|
(744
|
)
|
||||
Purchases of investments
|
|
(13
|
)
|
|
(111
|
)
|
|
(112
|
)
|
|
(267
|
)
|
||||
Sales of investments
|
|
69
|
|
|
290
|
|
|
290
|
|
|
415
|
|
||||
Acquisition of businesses, net of cash acquired
|
|
(31
|
)
|
|
(174
|
)
|
|
(174
|
)
|
|
—
|
|
||||
Proceeds from sale of business, net of cash transferred
|
|
25
|
|
|
1
|
|
|
—
|
|
|
21
|
|
||||
Change in restricted assets
|
|
101
|
|
|
58
|
|
|
40
|
|
|
(2
|
)
|
||||
Settlement of net investment hedges
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
||||
Other, net
|
|
16
|
|
|
(2
|
)
|
|
(2
|
)
|
|
(4
|
)
|
||||
Total cash used in investing activities
|
|
(538
|
)
|
|
(647
|
)
|
|
(724
|
)
|
|
(569
|
)
|
||||
Financing Activities
|
|
|
|
|
|
|
|
|
||||||||
Repurchase of common stock
|
|
(122
|
)
|
|
(1,368
|
)
|
|
(1,500
|
)
|
|
(1,193
|
)
|
||||
Issuance of common stock under employee stock purchase plan and for the exercise of stock options
|
|
25
|
|
|
66
|
|
|
67
|
|
|
179
|
|
||||
Dividends paid
|
|
(224
|
)
|
|
(228
|
)
|
|
(228
|
)
|
|
(237
|
)
|
||||
Repayments of debt
|
|
(1,614
|
)
|
|
(3,192
|
)
|
|
(3,412
|
)
|
|
(3,120
|
)
|
||||
Proceeds from issuance of debt
|
|
1,741
|
|
|
3,911
|
|
|
3,921
|
|
|
3,021
|
|
||||
Payment to noncontrolling interest (Note 3)
|
|
—
|
|
|
(1,303
|
)
|
|
(1,303
|
)
|
|
—
|
|
||||
Acquisition of noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(21
|
)
|
||||
Excess tax benefits from stock-based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
||||
Other, net
|
|
(17
|
)
|
|
(27
|
)
|
|
(23
|
)
|
|
3
|
|
||||
Total cash used in financing activities
|
|
(211
|
)
|
|
(2,141
|
)
|
|
(2,478
|
)
|
|
(1,357
|
)
|
||||
Effect of Exchange Rate Changes on Cash
|
|
(4
|
)
|
|
(6
|
)
|
|
5
|
|
|
13
|
|
||||
Increase (Decrease) in Cash and Cash Equivalents
|
|
701
|
|
|
303
|
|
|
96
|
|
|
(723
|
)
|
||||
Adjustment for Fiscal Year-End Change (Note 2)
|
|
(74
|
)
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
||||
Increase (Decrease) in Cash and Cash Equivalents After Adjustment
|
|
627
|
|
|
298
|
|
|
96
|
|
|
(723
|
)
|
||||
Cash and Cash Equivalents at Beginning of Year
|
|
1,199
|
|
|
1,103
|
|
|
1,103
|
|
|
1,826
|
|
||||
Cash and Cash Equivalents at End of Year
|
|
$
|
1,826
|
|
|
$
|
1,401
|
|
|
$
|
1,199
|
|
|
$
|
1,103
|
|
Supplemental Disclosure of Cash Flow Information
|
|
|
|
|
|
|
|
|
||||||||
Income taxes paid
|
|
$
|
478
|
|
|
$
|
476
|
|
|
$
|
568
|
|
|
$
|
882
|
|
Interest paid
|
|
106
|
|
|
86
|
|
|
89
|
|
|
68
|
|
|
Common
Shares
|
|
|
Common
Stock
|
|
|
Additional
Paid-In
Capital
|
|
|
Retained
Earnings
|
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
|
Total Best
Buy Co., Inc.
Shareholders'
Equity
|
|
|
Non
controlling
Interests
|
|
|
Total
Equity
|
|
|||||||
Balances at February 27, 2010
|
419
|
|
|
$
|
42
|
|
|
$
|
441
|
|
|
$
|
5,797
|
|
|
$
|
40
|
|
|
$
|
6,320
|
|
|
$
|
644
|
|
|
$
|
6,964
|
|
Net earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
1,277
|
|
|
—
|
|
|
1,277
|
|
|
89
|
|
|
1,366
|
|
|||||||
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
76
|
|
|
76
|
|
|
(42
|
)
|
|
34
|
|
|||||||
Unrealized gains on available-for-sale investments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
58
|
|
|
58
|
|
|
—
|
|
|
58
|
|
|||||||
Cash flow hedging instruments — unrealized loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|||||||
Stock options exercised
|
4
|
|
|
—
|
|
|
134
|
|
|
—
|
|
|
—
|
|
|
134
|
|
|
—
|
|
|
134
|
|
|||||||
Vesting of restricted stock
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Tax benefits from stock options, restricted stock and employee stock purchase plan
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|||||||
Issuance of common stock under employee stock purchase plan
|
1
|
|
|
—
|
|
|
45
|
|
|
—
|
|
|
—
|
|
|
45
|
|
|
—
|
|
|
45
|
|
|||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
121
|
|
|
—
|
|
|
—
|
|
|
121
|
|
|
—
|
|
|
121
|
|
|||||||
Common stock dividends, $0.58 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
(238
|
)
|
|
—
|
|
|
(238
|
)
|
|
—
|
|
|
(238
|
)
|
|||||||
Repurchase of common stock
|
(32
|
)
|
|
(3
|
)
|
|
(726
|
)
|
|
(464
|
)
|
|
—
|
|
|
(1,193
|
)
|
|
—
|
|
|
(1,193
|
)
|
|||||||
Balances at February 26, 2011
|
393
|
|
|
39
|
|
|
18
|
|
|
6,372
|
|
|
173
|
|
|
6,602
|
|
|
690
|
|
|
7,292
|
|
|||||||
Net earnings (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,231
|
)
|
|
—
|
|
|
(1,231
|
)
|
|
1,253
|
|
|
22
|
|
|||||||
Other comprehensive loss, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Foreign currency translation adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
(9
|
)
|
|
(12
|
)
|
|
(21
|
)
|
|||||||
Unrealized losses on available-for-sale investments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(26
|
)
|
|
(26
|
)
|
|
—
|
|
|
(26
|
)
|
|||||||
Reclassification adjustment for gain on available-for-sale securities included in net earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(48
|
)
|
|
(48
|
)
|
|
—
|
|
|
(48
|
)
|
|||||||
Payment to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,303
|
)
|
|
(1,303
|
)
|
|||||||
Dividend distribution
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
(7
|
)
|
|||||||
Stock options exercised
|
1
|
|
|
—
|
|
|
27
|
|
|
—
|
|
|
—
|
|
|
27
|
|
|
—
|
|
|
27
|
|
|||||||
Tax loss from stock options, restricted stock and employee stock purchase plan
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|||||||
Issuance of common stock under employee stock purchase plan
|
2
|
|
|
—
|
|
|
40
|
|
|
—
|
|
|
—
|
|
|
40
|
|
|
—
|
|
|
40
|
|
|||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
120
|
|
|
—
|
|
|
—
|
|
|
120
|
|
|
—
|
|
|
120
|
|
|||||||
Common stock dividends, $0.62 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
(228
|
)
|
|
—
|
|
|
(228
|
)
|
|
—
|
|
|
(228
|
)
|
|||||||
Repurchase of common stock
|
(55
|
)
|
|
(5
|
)
|
|
(203
|
)
|
|
(1,292
|
)
|
|
—
|
|
|
(1,500
|
)
|
|
—
|
|
|
(1,500
|
)
|
|||||||
Balances at March 3, 2012
|
341
|
|
|
34
|
|
|
—
|
|
|
3,621
|
|
|
90
|
|
|
3,745
|
|
|
621
|
|
|
4,366
|
|
|||||||
Adjustment for fiscal year-end change (Note 2)
|
—
|
|
|
—
|
|
|
—
|
|
|
(14
|
)
|
|
11
|
|
|
(3
|
)
|
|
9
|
|
|
6
|
|
|||||||
Net earnings (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
(441
|
)
|
|
—
|
|
|
(441
|
)
|
|
21
|
|
|
(420
|
)
|
|||||||
Other comprehensive loss, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Foreign currency translation adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
9
|
|
|
6
|
|
|
15
|
|
|||||||
Unrealized gains on available-for-sale investments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|||||||
Dividend distribution
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(3
|
)
|
|||||||
Stock options exercised
|
2
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|||||||
Tax loss from stock options, restricted stock and employee stock purchase plan
|
—
|
|
|
—
|
|
|
(44
|
)
|
|
—
|
|
|
—
|
|
|
(44
|
)
|
|
—
|
|
|
(44
|
)
|
|||||||
Issuance of common stock under employee stock purchase plan
|
1
|
|
|
—
|
|
|
24
|
|
|
—
|
|
|
—
|
|
|
24
|
|
|
—
|
|
|
24
|
|
|||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
112
|
|
|
—
|
|
|
—
|
|
|
112
|
|
|
—
|
|
|
112
|
|
|||||||
Common stock dividends, $0.66 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
(222
|
)
|
|
—
|
|
|
(222
|
)
|
|
—
|
|
|
(222
|
)
|
|||||||
Repurchase of common stock
|
(6
|
)
|
|
—
|
|
|
(39
|
)
|
|
(83
|
)
|
|
—
|
|
|
(122
|
)
|
|
—
|
|
|
(122
|
)
|
|||||||
Balances at February 2, 2013
|
338
|
|
|
$
|
34
|
|
|
$
|
54
|
|
|
$
|
2,861
|
|
|
$
|
112
|
|
|
$
|
3,061
|
|
|
$
|
654
|
|
|
$
|
3,715
|
|
Asset
|
|
Life
(in years)
|
Buildings
|
|
25-50
|
Leasehold improvements
|
|
3-25
|
Fixtures and equipment
|
|
3-20
|
Property under capital lease
|
|
2-20
|
|
Goodwill
|
|
Indefinite-Lived Tradenames
|
||||||||||||||||||||
|
Domestic
|
|
International
|
|
Total
|
|
Domestic
|
|
International
|
|
Total
|
||||||||||||
Balances at February 27, 2010
|
$
|
434
|
|
|
$
|
2,018
|
|
|
$
|
2,452
|
|
|
$
|
32
|
|
|
$
|
80
|
|
|
$
|
112
|
|
Acquisitions
|
—
|
|
|
5
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Impairments
(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
(10
|
)
|
||||||
Sale of business
(2)
|
(12
|
)
|
|
—
|
|
|
(12
|
)
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
||||||
Changes in foreign currency exchange rates
|
—
|
|
|
9
|
|
|
9
|
|
|
—
|
|
|
4
|
|
|
4
|
|
||||||
Balances at February 26, 2011
|
422
|
|
|
2,032
|
|
|
2,454
|
|
|
21
|
|
|
84
|
|
|
105
|
|
||||||
Acquisitions
(3)
|
94
|
|
|
—
|
|
|
94
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||
Impairments
|
—
|
|
|
(1,207
|
)
|
|
(1,207
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Sale of business
|
—
|
|
|
(7
|
)
|
|
(7
|
)
|
|
(3
|
)
|
|
(2
|
)
|
|
(5
|
)
|
||||||
Changes in foreign currency exchange rates
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||||
Other
(4)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28
|
|
|
28
|
|
||||||
Balances at March 3, 2012
|
516
|
|
|
819
|
|
|
1,335
|
|
|
19
|
|
|
111
|
|
|
130
|
|
||||||
Acquisitions
(5)
|
15
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Impairments
|
(3
|
)
|
|
(819
|
)
|
|
(822
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Changes in foreign currency exchange rates
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||||
Balances at February 2, 2013
|
$
|
528
|
|
|
$
|
—
|
|
|
$
|
528
|
|
|
$
|
19
|
|
|
$
|
112
|
|
|
$
|
131
|
|
(1)
|
As part of our fiscal 2011 restructuring activities, we recorded an impairment charge related to certain indefinite-lived tradenames in our Domestic segment. See Note 7,
Restructuring Charges
, for further information.
|
(2)
|
As a result of the sale of our Speakeasy business in the second quarter of fiscal 2011, we eliminated the carrying value of the related goodwill and indefinite-lived tradenames as of the date of sale.
|
(3)
|
Represents goodwill acquired, primarily as a result of the mindSHIFT acquisition in fiscal 2012.
|
(4)
|
Represents the transfer of certain definite-lived tradenames (at their net book value) to indefinite-lived tradenames following our decision to no longer phase out certain tradenames. We believe these tradenames will continue to contribute to our future cash flows indefinitely.
|
(5)
|
Represents goodwill acquired, primarily as a result of an acquisition made by mindSHIFT in fiscal 2013 (11-month).
|
|
February 2, 2013
|
|
March 3, 2012
|
||||||||||||
|
Gross Carrying
Amount
|
|
Cumulative
Impairment
|
|
Gross Carrying
Amount
|
|
Cumulative
Impairment
|
||||||||
Goodwill
|
$
|
2,608
|
|
|
$
|
(2,080
|
)
|
|
$
|
2,596
|
|
|
$
|
(1,261
|
)
|
|
February 2, 2013
|
|
March 3, 2012
|
||||||||||||
|
Tradenames
|
|
Customer
Relationships
|
|
Tradenames
|
|
Customer
Relationships
|
||||||||
Indefinite-lived
|
$
|
131
|
|
|
$
|
—
|
|
|
$
|
130
|
|
|
$
|
—
|
|
Definite-lived
|
—
|
|
|
203
|
|
|
—
|
|
|
229
|
|
||||
Total
|
$
|
131
|
|
|
$
|
203
|
|
|
$
|
130
|
|
|
$
|
229
|
|
|
February 2, 2013
|
|
March 3, 2012
|
||||||||||||
|
Gross Carrying
Amount
|
|
Accumulated Amortization
|
|
Gross Carrying
Amount
|
|
Accumulated Amortization
|
||||||||
Customer relationships
|
$
|
475
|
|
|
$
|
(272
|
)
|
|
$
|
453
|
|
|
$
|
(224
|
)
|
Fiscal Year
|
|
|
||
2014
|
|
$
|
42
|
|
2015
|
|
42
|
|
|
2016
|
|
42
|
|
|
2017
|
|
24
|
|
|
2018
|
|
6
|
|
|
Thereafter
|
|
47
|
|
|
February 2, 2013
|
|
March 3, 2012
|
||||||||||||
|
Gross Carrying
Amount
|
|
Accumulated
Amortization
|
|
Gross Carrying
Amount
|
|
Accumulated
Amortization
|
||||||||
Lease rights
|
$
|
132
|
|
|
$
|
(73
|
)
|
|
$
|
130
|
|
|
$
|
(73
|
)
|
|
February 2, 2013
|
|
March 3, 2012
|
||||
Accrued liabilities
|
$
|
77
|
|
|
$
|
77
|
|
Long-term liabilities
|
47
|
|
|
47
|
|
||
Total
|
$
|
124
|
|
|
$
|
124
|
|
|
|
11-Month
|
|
12-Month
|
||||||||
|
|
2013
|
|
2012
|
|
2011
|
||||||
Gift card breakage income
|
|
$
|
46
|
|
|
$
|
54
|
|
|
$
|
51
|
|
Cost of Goods Sold
|
||||
•
|
|
Total cost of products sold including:
|
||
|
|
—
|
|
Freight expenses associated with moving merchandise inventories from our vendors to our distribution centers;
|
|
|
—
|
|
Vendor allowances that are not a reimbursement of specific, incremental and identifiable costs to promote a vendor's products; and
|
|
|
—
|
|
Cash discounts on payments to merchandise vendors;
|
•
|
|
Cost of services provided including:
|
||
|
|
—
|
|
Payroll and benefits costs for services employees; and
|
|
|
—
|
|
Cost of replacement parts and related freight expenses;
|
•
|
|
Physical inventory losses;
|
||
•
|
|
Markdowns;
|
||
•
|
|
Customer shipping and handling expenses;
|
||
•
|
|
Costs associated with operating our distribution network, including payroll and benefit costs, occupancy costs, and depreciation; and
|
||
•
|
|
Freight expenses associated with moving merchandise inventories from our distribution centers to our retail stores.
|
SG&A
|
||||
•
|
|
Payroll and benefit costs for retail and corporate employees;
|
||
•
|
|
Occupancy and maintenance costs of retail, services and corporate facilities;
|
||
•
|
|
Depreciation and amortization related to retail, services and corporate assets;
|
||
•
|
|
Advertising costs;
|
||
•
|
|
Vendor allowances that are a reimbursement of specific, incremental and identifiable costs to promote a vendor's products;
|
||
•
|
|
Tender costs, including bank charges and costs associated with credit and debit card interchange fees;
|
||
•
|
|
Charitable contributions;
|
||
•
|
|
Outside and outsourced service fees;
|
||
•
|
|
Long-lived asset impairment charges; and
|
||
•
|
|
Other administrative costs, such as supplies, and travel and lodging.
|
New Fiscal Calendar
(1)
|
|
Previous Fiscal Calendar
(1)
|
||
2013 (11-Month)
|
|
2012
|
|
2011
|
March 2012 - January 2013
|
|
March 2011 - February 2012
|
|
March 2010 - February 2011
|
(1)
|
For entities reported on a lag, the fiscal months included in fiscal 2013 (11-month) were February through December, and in fiscal 2012 and 2011 were January through December.
|
|
One Month Ended
|
||||||
|
January 31, 2012
|
|
January 31, 2011
|
||||
|
(unaudited)
|
|
(unaudited)
|
||||
Revenue
|
$
|
628
|
|
|
$
|
732
|
|
Gross profit
|
133
|
|
|
166
|
|
||
Operating income (loss)
|
(16
|
)
|
|
20
|
|
||
Net earnings (loss) from continuing operations
|
(19
|
)
|
|
15
|
|
||
Loss from discontinued operations, net of tax
|
(6
|
)
|
|
(43
|
)
|
||
Net loss including noncontrolling interests
|
(25
|
)
|
|
(28
|
)
|
||
Net loss attributable to Best Buy Co., Inc. shareholders
(1)
|
(14
|
)
|
|
(33
|
)
|
(1)
|
The net loss attributable to Best Buy Co., Inc. shareholders for the one month ended January 31, 2012 represents the adjustment to Retained earnings within the Consolidated Statements of Changes in Shareholders' Equity as a result of the exclusion of January results for entities reported on a lag.
|
|
11-Month
|
|
12-Month
|
||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
|
|
|
|
|
||||||
Revenue
|
$
|
2
|
|
|
$
|
411
|
|
|
$
|
525
|
|
|
|
|
|
|
|
||||||
Restructuring charges
(1)
|
(2
|
)
|
|
229
|
|
|
75
|
|
|||
|
|
|
|
|
|
||||||
Gain (loss) from discontinued operations before income tax benefit
|
3
|
|
|
(406
|
)
|
|
(260
|
)
|
|||
Income tax benefit (expense)
|
(2
|
)
|
|
89
|
|
|
57
|
|
|||
Gain on sale of discontinued operations
|
—
|
|
|
9
|
|
|
7
|
|
|||
Income tax benefit on sale
|
—
|
|
|
—
|
|
|
8
|
|
|||
Net gain (loss) from discontinued operations including noncontrolling interests
|
1
|
|
|
(308
|
)
|
|
(188
|
)
|
|||
Net loss from discontinued operations attributable to noncontrolling interests
|
1
|
|
|
134
|
|
|
38
|
|
|||
Net gain (loss) from discontinued operations attributable to Best Buy Co., Inc. shareholders
|
$
|
2
|
|
|
$
|
(174
|
)
|
|
$
|
(150
|
)
|
(1)
|
See Note 7,
Restructuring Charges
, for further discussion of the restructuring charges associated with discontinued operations.
|
|
February 2, 2013
|
|
March 3, 2012
|
||||
Equity and other investments
|
|
|
|
||||
Debt securities (auction rate securities)
|
$
|
21
|
|
|
$
|
82
|
|
Marketable equity securities
|
27
|
|
|
3
|
|
||
Other investments
|
38
|
|
|
55
|
|
||
Total equity and other investments
|
$
|
86
|
|
|
$
|
140
|
|
Description
|
|
Nature of collateral or guarantee
|
|
February 2, 2013
|
|
March 3, 2012
|
||||
Student loan bonds
|
|
Student loans guaranteed 95% to 100% by the U.S. government
|
|
$
|
19
|
|
|
$
|
80
|
|
Municipal revenue bonds
|
|
100% insured by AAA/Aaa-rated bond insurers at February 2, 2013
|
|
2
|
|
|
2
|
|
||
Total fair value plus accrued interest
(1)
|
|
|
|
$
|
21
|
|
|
$
|
82
|
|
(1)
|
The par value and weighted-average interest rates (taxable equivalent) of our ARS were
$23 million
and
$88 million
and
0.4%
and
0.5%
, respectively, at
February 2, 2013
, and
March 3, 2012
, respectively.
|
•
|
Quoted prices for similar assets or liabilities in active markets;
|
•
|
Quoted prices for identical or similar assets in non-active markets;
|
•
|
Inputs other than quoted prices that are observable for the asset or liability; and
|
•
|
Inputs that are derived principally from or corroborated by other observable market data.
|
|
|
|
Fair Value Measurements Using Inputs Considered as
|
||||||||||||
|
Fair Value at
February 2, 2013
|
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
|
|
|
|
|
|
|
||||||||
Money market funds
|
$
|
520
|
|
|
$
|
520
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other current assets
|
|
|
|
|
|
|
|
||||||||
Foreign currency derivative instruments
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Equity and other investments
|
|
|
|
|
|
|
|
||||||||
Auction rate securities
|
21
|
|
|
—
|
|
|
—
|
|
|
21
|
|
||||
Marketable equity securities
|
27
|
|
|
27
|
|
|
—
|
|
|
—
|
|
|
|
|
Fair Value Measurements Using Inputs Considered as
|
||||||||||||
|
Fair Value at
March 3, 2012
|
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
|
|
|
|
|
|
|
||||||||
Money market funds
|
$
|
272
|
|
|
$
|
272
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other current assets
|
|
|
|
|
|
|
|
|
|
|
|
||||
Money market funds (restricted assets)
|
119
|
|
|
119
|
|
|
—
|
|
|
—
|
|
||||
U.S. Treasury bills (restricted assets)
|
30
|
|
|
30
|
|
|
—
|
|
|
—
|
|
||||
Foreign currency derivative instruments
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Equity and other investments
|
|
|
|
|
|
|
|
|
|
|
|
||||
Auction rate securities
|
82
|
|
|
—
|
|
|
—
|
|
|
82
|
|
||||
Marketable equity securities
|
3
|
|
|
3
|
|
|
—
|
|
|
—
|
|
||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||
Accrued liabilities
|
|
|
|
|
|
|
|
||||||||
Foreign currency derivative instruments
|
2
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
Debt securities — Auction rate securities only
|
||||||||||
|
Student loan bonds
|
|
Municipal revenue bonds
|
|
Total
|
||||||
Balances at February 26, 2011
|
$
|
108
|
|
|
$
|
2
|
|
|
$
|
110
|
|
Changes in unrealized losses in other comprehensive income
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||
Sales
|
(27
|
)
|
|
—
|
|
|
(27
|
)
|
|||
Balances at March 3, 2012
|
$
|
80
|
|
|
$
|
2
|
|
|
$
|
82
|
|
Changes in unrealized losses in other comprehensive income
|
4
|
|
|
—
|
|
|
4
|
|
|||
Sales
|
(65
|
)
|
|
—
|
|
|
(65
|
)
|
|||
Balances at February 2, 2013
|
$
|
19
|
|
|
$
|
2
|
|
|
$
|
21
|
|
|
11-Month 2013
|
|
12-Month 2012
|
||||||||||||
|
Impairments
|
|
Remaining Net
Carrying Value
|
|
Impairments
|
|
Remaining Net
Carrying Value
|
||||||||
Continuing operations
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
$
|
822
|
|
|
$
|
—
|
|
|
$
|
1,207
|
|
|
$
|
—
|
|
Property and equipment
|
70
|
|
|
—
|
|
|
32
|
|
|
—
|
|
||||
Investments
|
27
|
|
|
38
|
|
|
—
|
|
|
—
|
|
||||
Total
|
$
|
919
|
|
|
$
|
38
|
|
|
$
|
1,239
|
|
|
$
|
—
|
|
Discontinued operations
(1)
|
|
|
|
|
|
|
|
||||||||
Property and equipment
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
111
|
|
|
$
|
—
|
|
Tradename
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
||||
Total
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
114
|
|
|
$
|
—
|
|
(1)
|
Property and equipment and tradename impairments associated with discontinued operations are recorded within Loss from discontinued operations in our Consolidated Statements of Earnings.
|
|
11-Month
|
|
12-Month
|
||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
Continuing operations
|
|
|
|
|
|
||||||
Renew Blue
|
$
|
171
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Fiscal 2013 Europe restructuring
|
36
|
|
|
—
|
|
|
—
|
|
|||
Fiscal 2013 U.S. restructuring
|
257
|
|
|
—
|
|
|
—
|
|
|||
Fiscal 2012 restructuring
|
(1
|
)
|
|
38
|
|
|
—
|
|
|||
Fiscal 2011 restructuring
|
(12
|
)
|
|
20
|
|
|
147
|
|
|||
Total
|
451
|
|
|
58
|
|
|
147
|
|
|||
Discontinued operations
|
|
|
|
|
|
||||||
Fiscal 2012 restructuring
|
(1
|
)
|
|
205
|
|
|
—
|
|
|||
Fiscal 2011 restructuring
|
(1
|
)
|
|
24
|
|
|
75
|
|
|||
Total (Note 4)
|
(2
|
)
|
|
229
|
|
|
75
|
|
|||
Total
|
$
|
449
|
|
|
$
|
287
|
|
|
$
|
222
|
|
|
Domestic
|
|
International
|
|
Total
|
||||||
Continuing operations
|
|
|
|
|
|
||||||
Inventory write-downs
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1
|
|
Property and equipment impairments
|
7
|
|
|
23
|
|
|
30
|
|
|||
Termination benefits
|
46
|
|
|
9
|
|
|
55
|
|
|||
Investment impairments
|
27
|
|
|
—
|
|
|
27
|
|
|||
Facility closure and other costs
|
3
|
|
|
55
|
|
|
58
|
|
|||
Total
|
$
|
84
|
|
|
$
|
87
|
|
|
$
|
171
|
|
|
Termination Benefits
|
|
Facility
Closure and
Other Costs
|
|
Total
|
||||||
Balance at March 3, 2012
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Charges
|
55
|
|
|
54
|
|
|
109
|
|
|||
Cash payments
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||
Balance at February 2, 2013
|
$
|
54
|
|
|
$
|
54
|
|
|
$
|
108
|
|
|
International
|
||
Continuing operations
|
|
||
Property and equipment impairments
|
$
|
12
|
|
Termination benefits
|
19
|
|
|
Facility closure and other costs
|
5
|
|
|
Total
|
$
|
36
|
|
|
Termination Benefits
|
|
Facility
Closure and
Other Costs
|
|
Total
|
||||||
Balance at March 3, 2012
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Charges
|
19
|
|
|
5
|
|
|
24
|
|
|||
Cash payments
|
(19
|
)
|
|
—
|
|
|
(19
|
)
|
|||
Balance at February 2, 2013
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
5
|
|
|
Domestic
|
||
Continuing operations
|
|
||
Property and equipment impairments
|
$
|
29
|
|
Termination benefits
|
77
|
|
|
Facility closure and other costs
|
151
|
|
|
Total
|
$
|
257
|
|
|
Termination Benefits
|
|
Facility
Closure and
Other Costs
|
|
Total
|
||||||
Balance at March 3, 2012
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Charges
|
109
|
|
|
152
|
|
|
261
|
|
|||
Cash payments
|
(65
|
)
|
|
(33
|
)
|
|
(98
|
)
|
|||
Adjustments
|
(40
|
)
|
|
(6
|
)
|
|
(46
|
)
|
|||
Balance at February 2, 2013
|
$
|
4
|
|
|
$
|
113
|
|
|
$
|
117
|
|
|
Domestic
|
|
International
|
|
Total
|
||||||||||||||||||||||||||||||
|
11-Month 2013
|
|
12-Month 2012
|
|
Cumulative Amount
|
|
11-Month 2013
|
|
12-Month 2012
|
|
Cumulative Amount
|
|
11-Month 2013
|
|
12-Month 2012
|
|
Cumulative Amount
|
||||||||||||||||||
Continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Property and equipment impairments
|
$
|
—
|
|
|
$
|
17
|
|
|
$
|
17
|
|
|
$
|
—
|
|
|
$
|
15
|
|
|
$
|
15
|
|
|
$
|
—
|
|
|
$
|
32
|
|
|
$
|
32
|
|
Termination benefits
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|||||||||
Facility closure and other costs
|
(1
|
)
|
|
5
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
5
|
|
|
4
|
|
|||||||||
Total
|
(1
|
)
|
|
23
|
|
|
22
|
|
|
—
|
|
|
15
|
|
|
15
|
|
|
(1
|
)
|
|
38
|
|
|
37
|
|
|||||||||
Discontinued operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Inventory write-downs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
11
|
|
|
—
|
|
|
11
|
|
|
11
|
|
|||||||||
Property and equipment impairments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
96
|
|
|
96
|
|
|
—
|
|
|
96
|
|
|
96
|
|
|||||||||
Termination benefits
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
16
|
|
|
17
|
|
|
1
|
|
|
16
|
|
|
17
|
|
|||||||||
Facility closure and other costs
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
82
|
|
|
80
|
|
|
(2
|
)
|
|
82
|
|
|
80
|
|
|||||||||
Total
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
205
|
|
|
204
|
|
|
(1
|
)
|
|
205
|
|
|
204
|
|
|||||||||
Total
|
$
|
(1
|
)
|
|
$
|
23
|
|
|
$
|
22
|
|
|
$
|
(1
|
)
|
|
$
|
220
|
|
|
$
|
219
|
|
|
$
|
(2
|
)
|
|
$
|
243
|
|
|
$
|
241
|
|
|
Termination Benefits
|
|
Facility
Closure and
Other Costs
(1)
|
|
Total
|
||||||
Balance at February 26, 2011
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Charges
|
17
|
|
|
87
|
|
|
104
|
|
|||
Cash payments
|
—
|
|
|
—
|
|
|
—
|
|
|||
Changes in foreign currency exchange rates
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
|||
Balance at March 3, 2012
|
17
|
|
|
85
|
|
|
102
|
|
|||
Charges
|
1
|
|
|
2
|
|
|
3
|
|
|||
Cash payments
|
(18
|
)
|
|
(83
|
)
|
|
(101
|
)
|
|||
Adjustments
|
—
|
|
|
28
|
|
|
28
|
|
|||
Changes in foreign currency exchange rates
|
—
|
|
|
4
|
|
|
4
|
|
|||
Balance at February 2, 2013
|
$
|
—
|
|
|
$
|
36
|
|
|
$
|
36
|
|
(1)
|
Included within the the adjustments to facility closure and other costs is $34 million from the first quarter of fiscal 2013 (11-month), representing an adjustment to exclude non-cash charges or benefits, which had no impact on our Consolidated Statements of Earnings in fiscal 2013 (11-month).
|
|
Domestic
|
|
International
|
|
Total
|
||||||||||||||||||||||||||||||||||||||||||
|
11-Month 2013
|
|
12-Month 2012
|
|
12-Month 2011
|
|
Cumulative Amount
|
|
11-Month 2013
|
|
12-Month 2012
|
|
12-Month 2011
|
|
Cumulative Amount
|
|
11-Month 2013
|
|
12-Month 2012
|
|
12-Month 2011
|
|
Cumulative Amount
|
||||||||||||||||||||||||
Continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Inventory write-downs
|
$
|
—
|
|
|
$
|
19
|
|
|
$
|
9
|
|
|
$
|
28
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
19
|
|
|
$
|
9
|
|
|
$
|
28
|
|
Property & equipment impairments
(1)
|
(12
|
)
|
|
—
|
|
|
15
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
107
|
|
|
107
|
|
|
(12
|
)
|
|
—
|
|
|
122
|
|
|
110
|
|
||||||||||||
Termination benefits
|
—
|
|
|
(3
|
)
|
|
16
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
16
|
|
|
13
|
|
||||||||||||
Facility closure and other costs
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
||||||||||||
Total
|
(12
|
)
|
|
20
|
|
|
40
|
|
|
48
|
|
|
—
|
|
|
—
|
|
|
107
|
|
|
107
|
|
|
(12
|
)
|
|
20
|
|
|
147
|
|
|
155
|
|
||||||||||||
Discontinued operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Inventory write-downs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
15
|
|
||||||||||||
Property & equipment impairments
|
—
|
|
|
15
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
25
|
|
|
25
|
|
|
—
|
|
|
15
|
|
|
25
|
|
|
40
|
|
||||||||||||
Termination benefits
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
7
|
|
|
12
|
|
|
19
|
|
|
—
|
|
|
11
|
|
|
12
|
|
|
23
|
|
||||||||||||
Intangible asset impairments
|
—
|
|
|
3
|
|
|
10
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
10
|
|
|
13
|
|
||||||||||||
Facility closure and other costs
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|
(1
|
)
|
|
(8
|
)
|
|
13
|
|
|
4
|
|
|
(1
|
)
|
|
(5
|
)
|
|
13
|
|
|
7
|
|
||||||||||||
Total
|
—
|
|
|
25
|
|
|
10
|
|
|
35
|
|
|
(1
|
)
|
|
(1
|
)
|
|
65
|
|
|
63
|
|
|
(1
|
)
|
|
24
|
|
|
75
|
|
|
98
|
|
||||||||||||
Total
|
$
|
(12
|
)
|
|
$
|
45
|
|
|
$
|
50
|
|
|
$
|
83
|
|
|
$
|
(1
|
)
|
|
$
|
(1
|
)
|
|
$
|
172
|
|
|
$
|
170
|
|
|
$
|
(13
|
)
|
|
$
|
44
|
|
|
$
|
222
|
|
|
$
|
253
|
|
|
Termination Benefits
|
|
Facility
Closure and
Other Costs
(1)
|
|
Total
|
||||||
Balance at February 26, 2011
|
$
|
28
|
|
|
$
|
13
|
|
|
$
|
41
|
|
Charges
|
11
|
|
|
6
|
|
|
17
|
|
|||
Cash payments
|
(33
|
)
|
|
(14
|
)
|
|
(47
|
)
|
|||
Adjustments
|
(3
|
)
|
|
4
|
|
|
1
|
|
|||
Balance at March 3, 2012
|
3
|
|
|
9
|
|
|
12
|
|
|||
Charges
|
—
|
|
|
—
|
|
|
—
|
|
|||
Cash payments
|
(2
|
)
|
|
(8
|
)
|
|
(10
|
)
|
|||
Adjustments
|
(1
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|||
Changes in foreign currency exchange rates
|
—
|
|
|
—
|
|
|
—
|
|
|||
Balance at February 2, 2013
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(1)
|
Included within the facility closure and other costs adjustments is
$10 million
from the first quarter of fiscal 2012, representing an adjustment to exclude non-cash charges or benefits, which had no impact on our Consolidated Statements of Earnings in fiscal 2012.
|
|
February 2, 2013
|
|
March 3, 2012
|
||||||||||
|
Principal
Balance
|
|
Interest
Rate
|
|
Principal
Balance
|
|
Interest
Rate
|
||||||
U.S. revolving credit facility – 364-day
|
$
|
—
|
|
|
—
|
%
|
|
$
|
—
|
|
|
—
|
%
|
U.S. revolving credit facility – 5-year
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
||
Europe revolving credit facility
|
596
|
|
|
2.0
|
%
|
|
480
|
|
|
2.4
|
%
|
||
Canada revolving demand facility
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
||
China revolving demand facilities
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
||
Total short-term debt
|
$
|
596
|
|
|
|
|
|
$
|
480
|
|
|
|
|
|
|
11-Month
|
|
12-Month
|
||||
Fiscal Year
|
|
2013
|
|
2012
|
||||
Maximum month-end amount outstanding during the year
|
|
$
|
596
|
|
|
$
|
480
|
|
Average amount outstanding during the year
|
|
$
|
477
|
|
|
$
|
337
|
|
Weighted-average interest rate at year-end
|
|
2.0
|
%
|
|
2.4
|
%
|
|
February 2, 2013
|
|
March 3, 2012
|
||||
2013 Notes
|
$
|
500
|
|
|
$
|
500
|
|
2016 Notes
|
349
|
|
|
349
|
|
||
2021 Notes
|
648
|
|
|
648
|
|
||
Financing lease obligations, due 2014 to 2019, interest rates ranging from 3.0% to 8.1%
|
122
|
|
|
149
|
|
||
Capital lease obligations, due 2014 to 2036, interest rates ranging from 2.1% to 8.3%
|
80
|
|
|
81
|
|
||
Other debt, due 2018 to 2022, interest rates ranging from 3.8% to 6.7%
|
1
|
|
|
1
|
|
||
Total long-term debt
|
$
|
1,700
|
|
|
$
|
1,728
|
|
Less: current portion
(1)
|
(547
|
)
|
|
(43
|
)
|
||
Total long-term debt, less current portion
|
$
|
1,153
|
|
|
$
|
1,685
|
|
(1)
|
Our 2013 Notes due July 15, 2013, are classified in the current portion of long-term debt as of February 2, 2013.
|
Fiscal Year
|
|
|
||
2014
|
|
$
|
547
|
|
2015
|
|
45
|
|
|
2016
|
|
35
|
|
|
2017
|
|
370
|
|
|
2018
|
|
15
|
|
|
Thereafter
|
|
688
|
|
|
Total long-term debt
|
|
$
|
1,700
|
|
|
|
February 2, 2013
|
|
March 3, 2012
|
||||||||||||
Contract Type
|
|
Assets
|
|
Liabilities
|
|
Assets
|
|
Liabilities
|
||||||||
No hedge designation (foreign exchange forward contracts)
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
(2
|
)
|
|
|
11-Month
|
|
12-Month
|
||||||||||||
|
|
2013
|
|
2012
|
||||||||||||
Contract Type
|
|
Pre-tax Gain
Recognized
in OCI
(1)
|
|
Loss Reclassified from Accumulated OCI to Earnings (Effective Portion)
(2)
|
|
Pre-tax Gain
Recognized
in OCI
(1)
|
|
Gain Reclassified from Accumulated OCI to Earnings (Effective Portion)
(2)
|
||||||||
Cash flow hedges (foreign exchange forward contracts)
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
7
|
|
|
$
|
5
|
|
(1)
|
Reflects the amount recognized in OCI prior to the reclassification of
50%
to noncontrolling interests for the cash flow and net investment hedges, respectively.
|
(2)
|
Gain reclassified from accumulated OCI is included within Selling, general and administrative expenses in our Consolidated Statements of Earnings.
|
|
|
Gain Recognized within SG&A
|
||||||
|
|
11-Month
|
|
12-Month
|
||||
Contract Type
|
|
2013
|
|
2012
|
||||
No hedge designation (foreign exchange forward contracts)
|
|
$
|
2
|
|
|
$
|
5
|
|
|
|
Notional Amount
|
||||||
Contract Type
|
|
February 2, 2013
|
|
March 3, 2012
|
||||
Derivatives not designated as hedging instruments
|
|
$
|
173
|
|
|
$
|
238
|
|
|
11-Month
|
|
12-Month
|
||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
|
|
|
|
|
||||||
Stock options
|
$
|
43
|
|
|
$
|
76
|
|
|
$
|
90
|
|
Share awards
|
|
|
|
|
|
||||||
Market-based
|
2
|
|
|
—
|
|
|
4
|
|
|||
Performance-based
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||
Time-based
|
62
|
|
|
33
|
|
|
16
|
|
|||
Employee stock purchase plans
|
5
|
|
|
11
|
|
|
12
|
|
|||
Total
|
$
|
112
|
|
|
$
|
120
|
|
|
$
|
121
|
|
|
Stock
Options
|
|
Weighted-
Average
Exercise Price
per Share
|
|
Weighted-Average
Remaining
Contractual
Term (in years)
|
|
Aggregate
Intrinsic Value (in millions)
|
|||||
Outstanding at March 3, 2012
|
35,801,000
|
|
|
$
|
38.08
|
|
|
|
|
|
|
|
Granted
|
2,864,000
|
|
|
17.30
|
|
|
|
|
|
|
||
Exercised
|
(82,000
|
)
|
|
18.69
|
|
|
|
|
|
|
||
Forfeited/Canceled
|
(8,600,000
|
)
|
|
35.36
|
|
|
|
|
|
|
||
Outstanding at February 2, 2013
|
29,983,000
|
|
|
$
|
36.93
|
|
|
5.8
|
|
$
|
2
|
|
Vested or expected to vest at February 2, 2013
|
29,247,000
|
|
|
$
|
37.29
|
|
|
5.7
|
|
$
|
2
|
|
Exercisable at February 2, 2013
|
22,629,000
|
|
|
$
|
39.98
|
|
|
4.9
|
|
$
|
—
|
|
|
|
11-Month
|
|
12-Month
|
|||||
Valuation Assumptions
(1)
|
|
2013
|
|
2012
|
|
2011
|
|||
|
|
|
|
|
|
|
|||
Risk-free interest rate
(2)
|
|
0.1% – 2.0%
|
|
|
0.1% – 3.6%
|
|
|
0.2% – 3.9%
|
|
Expected dividend yield
|
|
2.2
|
%
|
|
2.3
|
%
|
|
1.5
|
%
|
Expected stock price volatility
(3)
|
|
44
|
%
|
|
37
|
%
|
|
36
|
%
|
Expected life of stock options (in years)
(4)
|
|
5.9
|
|
|
6.2
|
|
|
6.1
|
|
(1)
|
Forfeitures are estimated using historical experience and projected employee turnover.
|
(2)
|
Based on the U.S. Treasury constant maturity interest rate whose term is consistent with the expected life of our stock options.
|
(3)
|
We use an outside valuation advisor to assist us in projecting expected stock price volatility. We consider both the historical volatility of our stock price as well as implied volatilities from exchange-traded options on our stock.
|
(4)
|
We estimate the expected life of stock options based upon historical experience.
|
Market-Based Share Awards
|
|
Shares
|
|
Weighted-Average Fair Value per Share
|
|||
Outstanding at March 3, 2012
|
|
—
|
|
|
$
|
—
|
|
Granted
|
|
879,000
|
|
|
16.92
|
|
|
Vested
|
|
—
|
|
|
—
|
|
|
Forfeited/Canceled
|
|
(74,000
|
)
|
|
18.63
|
|
|
Outstanding at February 2, 2013
|
|
805,000
|
|
|
$
|
16.76
|
|
Performance-Based Share Awards
|
|
Shares
|
|
Weighted-Average Fair Value per Share
|
|||
Outstanding at March 3, 2012
|
|
912,000
|
|
|
$
|
41.20
|
|
Granted
|
|
—
|
|
|
—
|
|
|
Vested
|
|
(2,000
|
)
|
|
44.20
|
|
|
Canceled
|
|
(908,000
|
)
|
|
41.19
|
|
|
Outstanding at February 2, 2013
|
|
2,000
|
|
|
$
|
44.20
|
|
Time-Based Share Awards
|
|
Shares
|
|
Weighted-Average Fair Value per Share
|
|||
Outstanding at March 3, 2012
|
|
3,924,000
|
|
|
$
|
29.62
|
|
Granted
|
|
6,759,000
|
|
|
17.67
|
|
|
Vested
|
|
(1,890,000
|
)
|
|
24.97
|
|
|
Forfeited/Canceled
|
|
(1,042,000
|
)
|
|
24.30
|
|
|
Outstanding at February 2, 2013
|
|
7,751,000
|
|
|
$
|
21.05
|
|
|
|
11-Month
|
|
12-Month
|
|||||
Valuation Assumptions
|
|
2013
|
|
2012
|
|
2011
|
|||
|
|
|
|
|
|
|
|||
Risk-free interest rate
(1)
|
|
0.1
|
%
|
|
0.1
|
%
|
|
0.2
|
%
|
Expected dividend yield
|
|
2.9
|
%
|
|
2.4
|
%
|
|
1.4
|
%
|
Expected stock price volatility
(2)
|
|
41
|
%
|
|
38
|
%
|
|
29
|
%
|
Expected life of employee stock purchase plan options (in months)
(3)
|
|
6
|
|
|
6
|
|
|
6
|
|
(1)
|
Based on the U.S. Treasury constant maturity interest rate whose term is consistent with the expected life of employee stock purchase plan shares.
|
(2)
|
We consider both the historical volatility of our stock price as well as implied volatilities from exchange-traded options on our stock.
|
(3)
|
Based on semi-annual purchase period.
|
|
Exercisable
|
|
Unexercisable
|
|
Total
|
||||||||||||||||||||||||
|
Shares
|
|
%
|
|
Weighted-
Average Price
per Share
|
|
Shares
|
|
%
|
|
Weighted-
Average Price
per Share
|
|
Shares
|
|
%
|
|
Weighted-
Average Price
per Share
|
||||||||||||
In-the-money
|
0.1
|
|
|
—
|
%
|
|
$
|
18.02
|
|
|
2.0
|
|
|
27
|
%
|
|
$
|
15.78
|
|
|
2.1
|
|
|
7
|
%
|
|
$
|
15.97
|
|
Out-of-the-money
|
22.5
|
|
|
100
|
%
|
|
$
|
40.15
|
|
|
5.4
|
|
|
73
|
%
|
|
$
|
31.55
|
|
|
27.9
|
|
|
93
|
%
|
|
$
|
38.46
|
|
Total
|
22.6
|
|
|
100
|
%
|
|
$
|
39.98
|
|
|
7.4
|
|
|
100
|
%
|
|
$
|
27.55
|
|
|
30.0
|
|
|
100
|
%
|
|
$
|
36.93
|
|
|
11-Month
|
|
12-Month
|
||||||||
|
2013
(1)
|
|
2012
(1)
|
|
2011
|
||||||
Numerator (in millions):
|
|
|
|
|
|
||||||
Net earnings (loss) from continuing operations
|
$
|
(421
|
)
|
|
$
|
330
|
|
|
$
|
1,554
|
|
Net earnings from continuing operations attributable to noncontrolling interests
|
(22
|
)
|
|
(1,387
|
)
|
|
(127
|
)
|
|||
Net earnings (loss) from continuing operations attributable to Best Buy Co., Inc., shareholders, basic
|
(443
|
)
|
|
(1,057
|
)
|
|
1,427
|
|
|||
Adjustment for assumed dilution:
|
|
|
|
|
|
||||||
Interest on convertible debentures due in 2022, net of tax
|
—
|
|
|
—
|
|
|
6
|
|
|||
Net earnings (loss) from continuing operations attributable to Best Buy Co., Inc., shareholders, diluted
|
$
|
(443
|
)
|
|
$
|
(1,057
|
)
|
|
$
|
1,433
|
|
Denominator (in millions):
|
|
|
|
|
|
||||||
Weighted-average common shares outstanding
|
338.6
|
|
|
366.3
|
|
|
406.1
|
|
|||
Effect of potentially dilutive securities:
|
|
|
|
|
|
||||||
Shares from assumed conversion of convertible debentures
|
—
|
|
|
—
|
|
|
8.8
|
|
|||
Stock options and other
|
—
|
|
|
—
|
|
|
1.6
|
|
|||
Weighted-average common shares outstanding, assuming dilution
|
338.6
|
|
|
366.3
|
|
|
416.5
|
|
|||
Net earnings (loss) per share from continuing operations attributable to Best Buy Co., Inc. shareholders
|
|
|
|
|
|
||||||
Basic
|
$
|
(1.31
|
)
|
|
$
|
(2.89
|
)
|
|
$
|
3.51
|
|
Diluted
|
$
|
(1.31
|
)
|
|
$
|
(2.89
|
)
|
|
$
|
3.44
|
|
(1)
|
The calculation of diluted loss per share for fiscal 2013 (11-month) and 2012 does not include potentially dilutive securities because their inclusion would be anti-dilutive (i.e., reduce the net loss per share).
|
|
11-Month
|
|
12-Month
|
||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
June 2011 Program
|
|
|
|
|
|
||||||
Total number of shares repurchased
|
6.3
|
|
|
34.5
|
|
|
—
|
|
|||
Total cost of shares repurchased
|
$
|
122
|
|
|
$
|
889
|
|
|
$
|
—
|
|
|
|
|
|
|
|
||||||
June 2007 Program
|
|
|
|
|
|
||||||
Total number of shares repurchased
|
—
|
|
|
20.1
|
|
|
32.6
|
|
|||
Total cost of shares repurchased
|
$
|
—
|
|
|
$
|
611
|
|
|
$
|
1,193
|
|
|
February 2, 2013
|
|
March 3, 2012
|
||||
Foreign currency translation
|
$
|
113
|
|
|
$
|
93
|
|
Unrealized losses on available-for-sale investments
|
(1
|
)
|
|
(3
|
)
|
||
Total
|
$
|
112
|
|
|
$
|
90
|
|
|
11-Month
|
|
12-Month
|
||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
Minimum rentals
|
$
|
1,080
|
|
|
$
|
1,192
|
|
|
$
|
1,141
|
|
Contingent rentals
|
1
|
|
|
2
|
|
|
2
|
|
|||
Total rent expense
|
1,081
|
|
|
1,194
|
|
|
1,143
|
|
|||
Less: sublease income
|
(16
|
)
|
|
(19
|
)
|
|
(19
|
)
|
|||
Net rent expense
|
$
|
1,065
|
|
|
$
|
1,175
|
|
|
$
|
1,124
|
|
Fiscal Year
|
|
Capital
Leases
|
|
Financing
Leases
|
|
Operating
Leases
(1)
|
||||||
2014
|
|
$
|
27
|
|
|
$
|
30
|
|
|
$
|
1,238
|
|
2015
|
|
25
|
|
|
28
|
|
|
1,156
|
|
|||
2016
|
|
17
|
|
|
25
|
|
|
1,034
|
|
|||
2017
|
|
5
|
|
|
19
|
|
|
888
|
|
|||
2018
|
|
3
|
|
|
15
|
|
|
703
|
|
|||
Thereafter
|
|
20
|
|
|
28
|
|
|
1,994
|
|
|||
Subtotal
|
|
97
|
|
|
145
|
|
|
$
|
7,013
|
|
||
Less: imputed interest
|
|
(17
|
)
|
|
(23
|
)
|
|
|
|
|||
Present value
|
|
$
|
80
|
|
|
$
|
122
|
|
|
|
|
(1)
|
Operating lease obligations do not include payments to landlords covering real estate taxes and common area maintenance. These charges, if included, would increase total operating lease obligations by
$1.6 billion
at
February 2, 2013
.
|
|
11-Month
|
|
12-Month
|
||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
Federal income tax at the statutory rate
|
$
|
(65
|
)
|
|
$
|
365
|
|
|
$
|
816
|
|
State income taxes, net of federal benefit
|
(3
|
)
|
|
45
|
|
|
46
|
|
|||
(Benefit) expense from foreign operations
|
7
|
|
|
(96
|
)
|
|
(86
|
)
|
|||
Other
|
5
|
|
|
—
|
|
|
3
|
|
|||
Goodwill impairments (non-deductible)
|
287
|
|
|
395
|
|
|
—
|
|
|||
Income tax expense
|
$
|
231
|
|
|
$
|
709
|
|
|
$
|
779
|
|
Effective income tax rate
|
(124.2
|
)%
|
|
68.0
|
%
|
|
33.4
|
%
|
|
11-Month
|
|
12-Month
|
||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
United States
|
$
|
281
|
|
|
$
|
1,537
|
|
|
$
|
1,739
|
|
Outside the United States
|
(467
|
)
|
|
(494
|
)
|
|
592
|
|
|||
Earnings (loss) from continuing operations before income tax expense and equity in income (loss) of affiliates
|
$
|
(186
|
)
|
|
$
|
1,043
|
|
|
$
|
2,331
|
|
|
11-Month
|
|
12-Month
|
||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
Current:
|
|
|
|
|
|
||||||
Federal
|
$
|
174
|
|
|
$
|
447
|
|
|
$
|
735
|
|
State
|
(3
|
)
|
|
61
|
|
|
73
|
|
|||
Foreign
|
79
|
|
|
173
|
|
|
105
|
|
|||
|
250
|
|
|
681
|
|
|
913
|
|
|||
Deferred:
|
|
|
|
|
|
||||||
Federal
|
27
|
|
|
94
|
|
|
(113
|
)
|
|||
State
|
(2
|
)
|
|
1
|
|
|
(2
|
)
|
|||
Foreign
|
(44
|
)
|
|
(67
|
)
|
|
(19
|
)
|
|||
|
(19
|
)
|
|
28
|
|
|
(134
|
)
|
|||
Income tax expense
|
$
|
231
|
|
|
$
|
709
|
|
|
$
|
779
|
|
|
February 2, 2013
|
|
March 3, 2012
|
||||
Accrued property expenses
|
$
|
194
|
|
|
$
|
146
|
|
Other accrued expenses
|
119
|
|
|
108
|
|
||
Deferred revenue
|
153
|
|
|
128
|
|
||
Compensation and benefits
|
95
|
|
|
103
|
|
||
Stock-based compensation
|
137
|
|
|
157
|
|
||
Loss and credit carryforwards
|
266
|
|
|
310
|
|
||
Other
|
125
|
|
|
121
|
|
||
Total deferred tax assets
|
1,089
|
|
|
1,073
|
|
||
Valuation allowance
|
(228
|
)
|
|
(204
|
)
|
||
Total deferred tax assets after valuation allowance
|
861
|
|
|
869
|
|
||
Property and equipment
|
(343
|
)
|
|
(376
|
)
|
||
Goodwill and intangibles
|
(127
|
)
|
|
(118
|
)
|
||
Inventory
|
(90
|
)
|
|
(85
|
)
|
||
Other
|
(22
|
)
|
|
(27
|
)
|
||
Total deferred tax liabilities
|
(582
|
)
|
|
(606
|
)
|
||
Net deferred tax assets
|
$
|
279
|
|
|
$
|
263
|
|
|
February 2, 2013
|
|
March 3, 2012
|
||||
Other current assets
|
$
|
228
|
|
|
$
|
226
|
|
Other assets
|
66
|
|
|
53
|
|
||
Other current liabilities
|
(5
|
)
|
|
—
|
|
||
Other long-term liabilities
|
(10
|
)
|
|
(16
|
)
|
||
Net deferred tax assets
|
$
|
279
|
|
|
$
|
263
|
|
|
11-Month
|
|
12-Month
|
||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
Balance at beginning of period
|
$
|
387
|
|
|
$
|
359
|
|
|
$
|
393
|
|
Gross increases related to prior period tax positions
|
10
|
|
|
69
|
|
|
36
|
|
|||
Gross decreases related to prior period tax positions
|
(22
|
)
|
|
(35
|
)
|
|
(90
|
)
|
|||
Gross increases related to current period tax positions
|
37
|
|
|
43
|
|
|
40
|
|
|||
Settlements with taxing authorities
|
(10
|
)
|
|
(20
|
)
|
|
—
|
|
|||
Lapse of statute of limitations
|
(19
|
)
|
|
(29
|
)
|
|
(20
|
)
|
|||
Balance at end of period
|
$
|
383
|
|
|
$
|
387
|
|
|
$
|
359
|
|
|
11-Month
|
|
12-Month
|
||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
Revenue
|
|
|
|
|
|
||||||
Domestic
|
$
|
33,343
|
|
|
$
|
37,615
|
|
|
$
|
37,070
|
|
International
|
11,742
|
|
|
13,090
|
|
|
12,677
|
|
|||
Total revenue
|
$
|
45,085
|
|
|
$
|
50,705
|
|
|
$
|
49,747
|
|
Percentage of revenue, by revenue category
|
|
|
|
|
|
||||||
Domestic:
|
|
|
|
|
|
||||||
Consumer Electronics
|
33
|
%
|
|
36
|
%
|
|
37
|
%
|
|||
Computing and Mobile Phones
|
44
|
%
|
|
40
|
%
|
|
37
|
%
|
|||
Entertainment
|
10
|
%
|
|
12
|
%
|
|
14
|
%
|
|||
Appliances
|
6
|
%
|
|
5
|
%
|
|
5
|
%
|
|||
Services
|
6
|
%
|
|
6
|
%
|
|
6
|
%
|
|||
Other
|
1
|
%
|
|
1
|
%
|
|
1
|
%
|
|||
Total
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|||
International:
|
|
|
|
|
|
||||||
Consumer Electronics
|
18
|
%
|
|
20
|
%
|
|
20
|
%
|
|||
Computing and Mobile Phones
|
61
|
%
|
|
56
|
%
|
|
55
|
%
|
|||
Entertainment
|
4
|
%
|
|
5
|
%
|
|
6
|
%
|
|||
Appliances
|
10
|
%
|
|
10
|
%
|
|
9
|
%
|
|||
Services
|
7
|
%
|
|
9
|
%
|
|
10
|
%
|
|||
Other
|
< 1%
|
|
|
< 1%
|
|
|
< 1%
|
|
|||
Total
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
11-Month
|
|
12-Month
|
||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
Operating income (loss)
|
|
|
|
|
|
||||||
Domestic
|
$
|
734
|
|
|
$
|
1,855
|
|
|
$
|
2,054
|
|
International
(1)
|
(859
|
)
|
|
(770
|
)
|
|
320
|
|
|||
Total operating income (loss)
|
(125
|
)
|
|
1,085
|
|
|
2,374
|
|
|||
Other income (expense)
|
|
|
|
|
|
||||||
Gain on sale of investments
|
18
|
|
|
55
|
|
|
—
|
|
|||
Investment income and other
|
33
|
|
|
37
|
|
|
43
|
|
|||
Interest expense
|
(112
|
)
|
|
(134
|
)
|
|
(86
|
)
|
|||
Earnings (loss) from continuing operations before income tax expense and equity in income (loss) of affiliates
|
$
|
(186
|
)
|
|
$
|
1,043
|
|
|
$
|
2,331
|
|
Assets
|
|
|
|
|
|
||||||
Domestic
|
$
|
10,874
|
|
|
$
|
9,592
|
|
|
$
|
9,610
|
|
International
|
5,913
|
|
|
6,413
|
|
|
8,239
|
|
|||
Total assets
|
$
|
16,787
|
|
|
$
|
16,005
|
|
|
$
|
17,849
|
|
Capital expenditures
|
|
|
|
|
|
||||||
Domestic
|
$
|
488
|
|
|
$
|
488
|
|
|
$
|
481
|
|
International
|
217
|
|
|
278
|
|
|
263
|
|
|||
Total capital expenditures
|
$
|
705
|
|
|
$
|
766
|
|
|
$
|
744
|
|
Depreciation
|
|
|
|
|
|
||||||
Domestic
|
$
|
561
|
|
|
$
|
612
|
|
|
$
|
615
|
|
International
|
233
|
|
|
267
|
|
|
261
|
|
|||
Total depreciation
|
$
|
794
|
|
|
$
|
879
|
|
|
$
|
876
|
|
(1)
|
Included within our International segment's operating loss for fiscal 2013 (11-month) and fiscal 2012 is a
$819 million
and a
$1.2 billion
goodwill impairment charge, respectively.
|
|
11-Month
|
|
12-Month
|
||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
|
|
|
|
|
||||||
Net sales to customers
|
|
|
|
|
|
||||||
United States
|
$
|
33,343
|
|
|
$
|
37,615
|
|
|
$
|
37,070
|
|
Europe
|
5,136
|
|
|
5,228
|
|
|
5,316
|
|
|||
Canada
|
4,818
|
|
|
5,635
|
|
|
5,468
|
|
|||
China
|
1,575
|
|
|
2,069
|
|
|
1,779
|
|
|||
Other
|
213
|
|
|
158
|
|
|
114
|
|
|||
Total revenue
|
$
|
45,085
|
|
|
$
|
50,705
|
|
|
$
|
49,747
|
|
Long-lived assets
|
|
|
|
|
|
||||||
United States
|
$
|
2,404
|
|
|
$
|
2,507
|
|
|
$
|
2,741
|
|
Europe
|
352
|
|
|
352
|
|
|
438
|
|
|||
Canada
|
341
|
|
|
432
|
|
|
474
|
|
|||
China
|
142
|
|
|
161
|
|
|
147
|
|
|||
Other
|
31
|
|
|
19
|
|
|
23
|
|
|||
Total long-lived assets
|
$
|
3,270
|
|
|
$
|
3,471
|
|
|
$
|
3,823
|
|
|
11-Month
|
|
12-Month
|
||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
Payment made to Carphone Warehouse for its share of the profit share agreement buy-out (see Note 3,
Profit Share Buy-Out
)
|
$
|
—
|
|
|
$
|
1,303
|
|
|
$
|
—
|
|
Revenue earned (primarily commission revenue and fees for information technology services provided to CPW and Carphone Warehouse)
|
—
|
|
|
—
|
|
|
6
|
|
|||
SG&A incurred (primarily payroll-related costs and rent paid to CPW and Carphone Warehouse)
|
1
|
|
|
20
|
|
|
8
|
|
|||
Interest expense incurred on credit facility with CPW and Carphone Warehouse as lender
|
—
|
|
|
1
|
|
|
1
|
|
|||
Accounts payable to CPW and Carphone Warehouse at the end of the fiscal year
|
1
|
|
|
—
|
|
|
—
|
|
|||
Accounts receivable from CPW and Carphone Warehouse at the end of the fiscal year
|
—
|
|
|
1
|
|
|
2
|
|
|||
Balance outstanding on credit facility from CPW and Carphone Warehouse at the end of the fiscal year
|
—
|
|
|
—
|
|
|
98
|
|
|
Quarter
|
|
11-Month
|
||||||||||||||||
|
1st
|
|
2nd
|
|
3rd
|
|
4th
|
|
2013
(1)
|
||||||||||
Revenue
|
$
|
11,610
|
|
|
$
|
10,547
|
|
|
$
|
10,753
|
|
|
$
|
16,711
|
|
|
$
|
45,085
|
|
Comparable store sales % change
(2)
|
(5.3
|
)%
|
|
(3.2
|
)%
|
|
(4.3
|
)%
|
|
(0.8
|
)%
|
|
(2.9
|
)%
|
|||||
Gross profit
|
$
|
2,907
|
|
|
$
|
2,564
|
|
|
$
|
2,586
|
|
|
$
|
3,781
|
|
|
$
|
10,649
|
|
Operating income (loss)
(3)
|
262
|
|
|
33
|
|
|
12
|
|
|
(145
|
)
|
|
(125
|
)
|
|||||
Net earnings (loss) from continuing operations
|
161
|
|
|
(7
|
)
|
|
(5
|
)
|
|
(377
|
)
|
|
(421
|
)
|
|||||
Gain (loss) from discontinued operations, net of tax
|
(9
|
)
|
|
—
|
|
|
6
|
|
|
(2
|
)
|
|
1
|
|
|||||
Net earnings (loss) including noncontrolling interests
|
152
|
|
|
(7
|
)
|
|
1
|
|
|
(379
|
)
|
|
(420
|
)
|
|||||
Net earnings (loss) attributable to Best Buy Co., Inc. shareholders
|
$
|
158
|
|
|
$
|
12
|
|
|
$
|
(10
|
)
|
|
$
|
(409
|
)
|
|
$
|
(441
|
)
|
Diluted earnings (loss) per share
(4)
|
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations
|
$
|
0.47
|
|
|
$
|
0.04
|
|
|
$
|
(0.04
|
)
|
|
$
|
(1.21
|
)
|
|
$
|
(1.31
|
)
|
Discontinued operations
|
(0.01
|
)
|
|
—
|
|
|
0.01
|
|
|
—
|
|
|
0.01
|
|
|||||
Diluted earnings (loss) per share
|
$
|
0.46
|
|
|
$
|
0.04
|
|
|
$
|
(0.03
|
)
|
|
$
|
(1.21
|
)
|
|
$
|
(1.30
|
)
|
|
Quarter
|
|
12-Month
|
||||||||||||||||
|
1st
|
|
2nd
|
|
3rd
|
|
4th
|
|
2012
|
||||||||||
Revenue
|
$
|
10,812
|
|
|
$
|
11,259
|
|
|
$
|
12,004
|
|
|
$
|
16,630
|
|
|
$
|
50,705
|
|
Comparable store sales % change
(2)
|
(1.8
|
)%
|
|
(2.9
|
)%
|
|
0.3
|
%
|
|
(2.4
|
)%
|
|
(1.7
|
)%
|
|||||
Gross profit
|
$
|
2,746
|
|
|
$
|
2,848
|
|
|
$
|
2,922
|
|
|
$
|
4,057
|
|
|
$
|
12,573
|
|
Operating income
(5)
|
330
|
|
|
335
|
|
|
351
|
|
|
69
|
|
|
1,085
|
|
|||||
Net earnings (loss) from continuing operations
|
199
|
|
|
197
|
|
|
258
|
|
|
(324
|
)
|
|
330
|
|
|||||
Loss from discontinued operations, net of tax
|
(36
|
)
|
|
(37
|
)
|
|
(127
|
)
|
|
(108
|
)
|
|
(308
|
)
|
|||||
Net earnings (loss) including noncontrolling interests
|
163
|
|
|
160
|
|
|
131
|
|
|
(432
|
)
|
|
22
|
|
|||||
Net earnings (loss) attributable to Best Buy Co., Inc. shareholders
(6)
|
$
|
136
|
|
|
$
|
177
|
|
|
$
|
154
|
|
|
$
|
(1,698
|
)
|
|
$
|
(1,231
|
)
|
Diluted earnings (loss) per share
(4)
|
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations
|
$
|
0.41
|
|
|
$
|
0.52
|
|
|
$
|
0.62
|
|
|
$
|
(4.73
|
)
|
|
$
|
(2.89
|
)
|
Discontinued operations
|
(0.06
|
)
|
|
(0.05
|
)
|
|
(0.20
|
)
|
|
(0.16
|
)
|
|
(0.47
|
)
|
|||||
Diluted earnings (loss) per share
|
$
|
0.35
|
|
|
$
|
0.47
|
|
|
$
|
0.42
|
|
|
$
|
(4.89
|
)
|
|
$
|
(3.36
|
)
|
(1)
|
On November 2, 2011, our Board of Directors approved a change to our fiscal year-end from the Saturday nearest the end of February to the Saturday nearest the end of January. In the first quarter of fiscal 2013 (11-month), we began reporting our quarterly results on the basis of our new fiscal year-end. As such, the results for the month of February 2012, which are included in the audited results for fiscal 2012, were also included in the reported first quarter of fiscal 2013 (11-month). However, the results for the month of February 2012 are not included in the results for the full year of fiscal 2013 (11-month). Thus, the four quarters of fiscal year 2013 (11-month) are not additive.
|
(2)
|
Comprised of revenue from stores operating for at least
14
full months as well as revenue related to call centers, websites 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 our comparable store sales calculation until at least
14
full months after reopening. Acquired stores are included in our 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.
|
(3)
|
Includes
$127 million
,
$91 million
,
$36 million
and
$203 million
of restructuring charges recorded in the fiscal first, second, third and fourth quarters, respectively, and
$451 million
for the 11 months ended February 2, 2013, related to measures we took to restructure our businesses. Also included in the fourth quarter and 11 months ended February 2, 2013, is a
$822 million
goodwill impairment charge related to our Canada, Five Star, and U.S. reporting units.
|
(4)
|
The sum of our quarterly diluted earnings per share does not equal our annual diluted earnings per share due to the impact of the timing of the repurchases of common stock and stock option exercises on quarterly and annual weighted-average shares outstanding.
|
(5)
|
Includes
$1 million
,
$22 million
and
$35 million
of restructuring charges recorded in the fiscal second, third and fourth quarters, respectively, related to measures we took to restructure our businesses, as well as a
$1.2 billion
goodwill impairment charge recorded in the fourth quarter related to our Best Buy Europe reporting unit.
|
(6)
|
Includes a
$1.3 billion
payment related to the Mobile buy-out recorded in the fourth quarter of fiscal 2012.
|
(a)
|
The following documents are filed as part of this report:
|
1.
|
Financial Statements:
|
2.
|
Supplementary Financial Statement Schedules:
|
3.
|
Exhibits:
|
Exhibit
|
|
|
Incorporated by Reference
|
|
Filed
|
|||||||||
No.
|
|
Exhibit Description
|
|
Form
|
|
SEC File No.
|
|
Exhibit
|
|
Filing Date
|
|
Herewith
|
||
2.1
|
|
|
Sale and Purchase Agreement, dated May 7, 2008, as amended, among The Carphone Warehouse Group PLC, CPW Retail Holdings Limited; Best Buy Co., Inc. and Best Buy Distributions Limited
|
|
8-K/A
|
|
001-09595
|
|
1.1
|
|
|
5/13/2008
|
|
|
2.2
|
|
|
Agreement and Plan of Merger, dated November 2, 2011, by and among Best Buy Co., Inc., Mars Acquisition Corporation, mindSHIFT Technologies, Inc., and Shareholder Representative Services LLC
|
|
8-K
|
|
001-09595
|
|
2.1
|
|
|
11/7/2011
|
|
|
2.3
|
|
|
Implementation Agreement, dated December 12, 2011, by and among Best Buy Co., Inc., and Carphone Warehouse Group plc
|
|
8-K/A
|
|
001-09595
|
|
2.1
|
|
|
12/14/2011
|
|
|
2.4
|
|
|
Carphone Warehouse Group plc Circular to Shareholders and Notice of General Meeting circulated December 23, 2011
|
|
8-K
|
|
001-09595
|
|
99
|
|
|
12/27/2011
|
|
|
3.1
|
|
|
Restated Articles of Incorporation
|
|
DEF 14A
|
|
001-09595
|
|
n/a
|
|
|
5/12/2009
|
|
|
3.2
|
|
|
Amended and Restated By-Laws
|
|
8-K
|
|
001-09595
|
|
3.1
|
|
|
12/14/2012
|
|
|
4.1
|
|
|
Offer Letter Agreement between Royal Bank of Canada and Best Buy Canada Ltd. Magasins Best Buy Ltee dated March 9, 2004
|
|
10-K
|
|
001-09595
|
|
4.3
|
|
|
4/29/2004
|
|
|
4.2
|
|
|
Indenture, dated as of June 24, 2008, between Best Buy Co., Inc. and Wells Fargo Bank, N.A., as Trustee
|
|
8-K
|
|
001-09595
|
|
4.1
|
|
|
6/24/2008
|
|
|
4.3
|
|
|
Supplemental Indenture, dated as of June 24, 2008, between Best Buy Co., Inc. and Wells Fargo Bank, N.A., as Trustee
|
|
8-K
|
|
001-09595
|
|
4.2
|
|
|
6/24/2008
|
|
|
4.4
|
|
|
Registration Rights Agreement, dated as of June 24, 2008, by and among Best Buy Co., Inc., J.P. Morgan Securities Inc. and Goldman, Sachs & Co. for themselves and on behalf of the other initial purchasers of the Notes
|
|
8-K
|
|
001-09595
|
|
4.3
|
|
|
6/24/2008
|
|
|
4.5
|
|
|
Shareholders Agreement, dated June 30, 2008, as amended, between The Carphone Warehouse Group Plc; CPW Retail Holdings Limited; Best Buy Co., Inc.; and Best Buy Distributions Limited
|
|
8-K
|
|
001-09595
|
|
4.1
|
|
|
7/3/2008
|
|
|
Exhibit
|
|
|
Incorporated by Reference
|
|
Filed
|
|||||||||
No.
|
|
Exhibit Description
|
|
Form
|
|
SEC File No.
|
|
Exhibit
|
|
Filing Date
|
|
Herewith
|
||
4.6
|
|
|
Form of Indenture, to be dated as of March 11, 2011, between Best Buy Co., Inc. and Wells Fargo Bank, N.A., as Trustee
|
|
8-K
|
|
001-09595
|
|
4.1
|
|
|
3/11/2011
|
|
|
4.7
|
|
|
Form of First Supplemental Indenture, to be dated as of March 11, 2011, between Best Buy Co., Inc. and Wells Fargo Bank, N.A., as Trustee
|
|
8-K
|
|
001-09595
|
|
4.2
|
|
|
3/11/2011
|
|
|
4.8
|
|
|
Facility Agreement, dated July 27, 2011, between Best Buy Europe Distributions Limited and ING Bank N.V., London Branch, as agent, and a syndication of banks, as filed
|
|
8-K
|
|
001-09595
|
|
4.1
|
|
|
8/2/2011
|
|
|
4.9
|
|
|
364-Day Credit Agreement dated as of August 31, 2012, among Best Buy Co., Inc., the Subsidiary Guarantors and Lenders party thereto, and JPMorgan Chase Bank, N.A., as administrative agent, as filed
|
|
8-K
|
|
001-09595
|
|
4.1
|
|
|
9/5/2012
|
|
|
4.10
|
|
|
Five-Year Credit Agreement dated as of October 7, 2011, among Best Buy Co., Inc., the Subsidiary Guarantors, the Lenders, and JPMorgan Chase Bank, N.A., as administrative agent, as filed
|
|
8-K
|
|
001-09595
|
|
4.2
|
|
|
10/12/2011
|
|
|
*10.1
|
|
|
1994 Full-Time Employee Non-Qualified Stock Option Plan, as amended
|
|
10-K
|
|
001-09595
|
|
10.1
|
|
|
5/2/2007
|
|
|
*10.2
|
|
|
1997 Employee Non-Qualified Stock Option Plan, as amended
|
|
10-Q
|
|
001-09595
|
|
10.1
|
|
|
10/6/2005
|
|
|
*10.3
|
|
|
1997 Directors' Non-Qualified Stock Option Plan, as amended
|
|
10-K
|
|
001-09595
|
|
10.3
|
|
|
5/2/2007
|
|
|
*10.4
|
|
|
2000 Restricted Stock Award Plan, as amended
|
|
10-Q
|
|
001-09595
|
|
10.2
|
|
|
10/6/2005
|
|
|
*10.5
|
|
|
Best Buy Co., Inc. 2004 Omnibus Stock and Incentive Plan, as amended
|
|
S-8
|
|
001-09595
|
|
99
|
|
|
7/15/2011
|
|
|
*10.6
|
|
|
Best Buy Co., Inc. Short Term Incentive Plan, as approved by the Board of Directors
|
|
DEF 14A
|
|
001-09595
|
|
n/a
|
|
|
5/26/2011
|
|
|
*10.7
|
|
|
2010 Long-Term Incentive Program Award Agreement, as approved by the Board of Directors
|
|
10-K
|
|
001-09595
|
|
10.7
|
|
|
4/28/2010
|
|
|
*10.8
|
|
|
Best Buy Fifth Amended and Restated Deferred Compensation Plan, as amended
|
|
10-K
|
|
001-09595
|
|
10.8
|
|
|
4/25/2011
|
|
|
*10.9
|
|
|
Best Buy Co., Inc. Performance Share Award Agreement dated August 5, 2008
|
|
8-K
|
|
001-09595
|
|
10.1
|
|
|
8/8/2008
|
|
|
*10.10
|
|
|
Form of Long-Term Incentive Program Buy-Out Award Agreement dated September 4, 2012, between Hubert Joly and Best Buy Co., Inc.
|
|
10-Q
|
|
001-09595
|
|
10.3
|
|
|
9/6/2012
|
|
|
*10.11
|
|
|
Form of Best Buy Co., Inc. Continuity Award Agreement dated June 21, 2012
|
|
10-Q
|
|
001-09595
|
|
10.1
|
|
|
9/6/2012
|
|
|
*10.12
|
|
|
Employment Agreement, dated November 9, 2012, between Sharon McCollam and Best Buy Co., Inc.
|
|
8-K
|
|
001-09595
|
|
10.1
|
|
|
11/15/2012
|
|
|
*10.13
|
|
|
Employment Agreement, dated August 19, 2012, between Hubert Joly and Best Buy Co., Inc.
|
|
8-K
|
|
001-09595
|
|
10.1
|
|
|
8/21/2012
|
|
|
*10.14
|
|
|
Confidential Employment Separation and General Release Agreement, dated October 23, 2012, between Michael A. Vitelli and Best Buy Co., Inc.
|
|
10-Q
|
|
001-09595
|
|
10.4
|
|
|
12/5/2012
|
|
|
*10.15
|
|
|
Confidential Employment Transition, Separation and General Release Agreement, dated October 9, 2012, between James L. Muehlbauer and Best Buy Co., Inc.
|
|
10-Q
|
|
001-09595
|
|
10.5
|
|
|
12/5/2012
|
|
|
*10.16
|
|
|
Agreement and Release of Claims, dated May 12, 2012, by and between Brian J. Dunn and Best Buy Co., Inc.
|
|
8-K
|
|
001-09595
|
|
10.1
|
|
|
5/14/2012
|
|
|
Best Buy Co., Inc.
(Registrant)
|
||
By:
|
|
/s/ Hubert Joly
|
|
|
Hubert Joly
President and Chief Executive Officer
|
|
|
March 27, 2013
|
Signature
|
|
Title
|
|
Date
|
/s/ Hubert Joly
|
|
President, Chief Executive Officer and Director
|
|
March 27, 2013
|
Hubert Joly
|
|
(principal executive officer)
|
|
|
|
|
|
|
|
/s/ Sharon L. McCollam
|
|
Executive Vice President – Chief Administrative Officer and Chief Financial Officer
|
|
March 27, 2013
|
Sharon L. McCollam
|
|
(principal financial officer)
|
|
|
|
|
|
|
|
/s/ Susan S. Grafton
|
|
Senior Vice President, Controller and Chief Accounting Officer
|
|
March 27, 2013
|
Susan S. Grafton
|
|
(principal accounting officer)
|
|
|
|
|
|
|
|
/s/ Lisa M. Caputo
|
|
Director
|
|
March 27, 2013
|
Lisa M. Caputo
|
|
|
|
|
|
|
|
|
|
/s/ Kathy J. Higgins Victor
|
|
Director
|
|
March 27, 2013
|
Kathy J. Higgins Victor
|
|
|
|
|
|
|
|
|
|
/s/ Ronald James
|
|
Director
|
|
March 27, 2013
|
Ronald James
|
|
|
|
|
|
|
|
|
|
/s/ Sanjay Khosla
|
|
Director
|
|
March 27, 2013
|
Sanjay Khosla
|
|
|
|
|
|
|
|
|
|
/s/ Matthew H. Paull
|
|
Director
|
|
March 27, 2013
|
Matthew H. Paull
|
|
|
|
|
|
|
|
|
|
/s/ Hatim A. Tyabji
|
|
Chairman of the Board and Director
|
|
March 27, 2013
|
Hatim A. Tyabji
|
|
|
|
|
|
|
|
|
|
/s/ Gérard R. Vittecoq
|
|
Director
|
|
March 27, 2013
|
Gérard R. Vittecoq
|
|
|
|
|
|
Balance at
Beginning
of Period
|
|
Charged to
Expenses or
Other Accounts
|
|
Other
(1)
|
|
Balance at
End of
Period
|
||||||||
Year ended February 2, 2013
|
|
|
|
|
|
|
|
||||||||
Allowance for doubtful accounts
|
$
|
72
|
|
|
$
|
34
|
|
|
$
|
(14
|
)
|
|
$
|
92
|
|
Year ended March 3, 2012
|
|
|
|
|
|
|
|
||||||||
Allowance for doubtful accounts
|
$
|
107
|
|
|
$
|
8
|
|
|
$
|
(43
|
)
|
|
$
|
72
|
|
Year ended February 26, 2011
|
|
|
|
|
|
|
|
||||||||
Allowance for doubtful accounts
|
$
|
101
|
|
|
$
|
46
|
|
|
$
|
(40
|
)
|
|
$
|
107
|
|
(1)
|
Includes bad debt write-offs and recoveries, acquisitions and the effect of foreign currency fluctuations.
|
|
|
February 2,
2013 |
|
|
March 3,
2012 |
|
|
February 26,
2011 |
|
|
February 27,
2010 |
|
|
February 28,
2009 |
|
|||||
Ratio of Earnings to Fixed Charges:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings (loss) from continuing operations before income taxes, noncontrolling interests and equity in income (loss) of affiliates
|
|
$
|
(186
|
)
|
|
$
|
1,043
|
|
|
$
|
2,331
|
|
|
$
|
2,329
|
|
|
$
|
1,844
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed Charges:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest portion of rental expense
|
|
320
|
|
|
353
|
|
|
337
|
|
|
328
|
|
|
276
|
|
|||||
Interest expense
|
|
112
|
|
|
134
|
|
|
86
|
|
|
92
|
|
|
93
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total fixed charges
|
|
432
|
|
|
487
|
|
|
423
|
|
|
420
|
|
|
369
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings available for fixed charges
|
|
$
|
246
|
|
|
$
|
1,530
|
|
|
$
|
2,754
|
|
|
$
|
2,749
|
|
|
$
|
2,213
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ratio of earnings to fixed charges
|
|
0.57
|
|
|
3.14
|
|
|
6.51
|
|
|
6.55
|
|
|
6.00
|
|
|
|
State or Other Jurisdiction of Incorporation or Organization
|
BBC Insurance Agency Inc.
|
|
Minnesota
|
BBC Investment Co.
|
|
Nevada
|
BBY Networks, Inc.
|
|
Minnesota
|
BBC Property Co.(1)
|
|
Minnesota
|
Best Buy Stores, L.P. (2)
|
|
Virginia
|
BBY Services, Inc.
|
|
Delaware
|
BestBuy.com, LLC
|
|
Virginia
|
Best Buy Connect, LLC
|
|
Delaware
|
Best Buy Gov, LLC (3)
|
|
Delaware
|
Best Buy Leasing, LLC (4)
|
|
Virginia
|
Best Buy Puerto Rico Holdings, LLC
|
|
Delaware
|
Best Buy Stores Puerto Rico, LLC
|
|
Puerto Rico
|
Best Buy Warehousing Logistics, Inc.
|
|
Delaware
|
Nichols Distribution, LLC
|
|
Minnesota
|
BBY Global Connect (Mauritius I) Ltd.
|
|
Mauritius
|
BBY Global Connect (Mauritius II) Ltd.
|
|
Mauritius
|
BBY Holdings International, Inc.
|
|
Minnesota
|
Best Buy China Holdings, Ltd.
|
|
Mauritius
|
Best Buy Shanghai, Ltd.
|
|
China
|
Best Buy Enterprise Services, Inc.
|
|
Minnesota
|
BBY Canada Finance, LLC
|
|
Delaware
|
BBCAN Financial Services, L.P.
|
|
Alberta
|
BBCAN UK, LLP
|
|
United Kingdom
|
Best Buy, LLP
|
|
United Kingdom
|
Best Buy Distributions Limited
|
|
United Kingdom
|
Best Buy UK Holdings LP
|
|
United Kingdom
|
New BBED Limited ¥
|
|
United Kingdom
|
Best Buy Europe Distributions Limited ¥ (5)
|
|
United Kingdom
|
Best Buy UK Distributions Limited ¥
|
|
United Kingdom
|
Best Buy UK CP Limited ¥
|
|
United Kingdom
|
Connected World Services Distributions Limited ¥
|
|
United Kingdom
|
CPW Europe Limited ¥
|
|
United Kingdom
|
The Carphone Warehouse Limited ¥
|
|
Ireland
|
The Phone House Netherlands BV ¥
|
|
Netherlands
|
Compro-Telematics BV ¥
|
|
Netherlands
|
F.M. Investments BV ¥
|
|
Netherlands
|
F.M. Development BV ¥
|
|
Netherlands
|
F.M. Wholesale BV ¥
|
|
Netherlands
|
Typhone E-Concepts BV ¥
|
|
Netherlands
|
Provitel Groothandel BV ¥
|
|
Netherlands
|
The Phone House Netherlands Business Centers BV ¥
|
|
Netherlands
|
The Phone House Netherlands Franchise BV ¥
|
|
Netherlands
|
The Phone House Netherlands Retail BV ¥
|
|
Netherlands
|
The Phone House Netherlands Services BV¥
|
|
Netherlands
|
F.M. Corporate Communications BV ¥
|
|
Netherlands
|
The Phone House Netherlands Retail Regio Midden BV ¥
|
|
Netherlands
|
The Phone House Netherlands Retail Regio Noord BV ¥
|
|
Netherlands
|
The Phone House Netherlands Retail Regio Zuid BV ¥
|
|
Netherlands
|
CPW Insurance Limited ¥
|
|
United Kingdom
|
Geek Squad UK Limited ¥
|
|
United Kingdom
|
Mobiles.co.uk Limited ¥
|
|
United Kingdom
|
New Technology Insurance ¥
|
|
Ireland
|
TalkM Limited ¥
|
|
United Kingdom
|
The Carphone Warehouse Ltd. ¥
|
|
United Kingdom
|
CPWCO 18 Limited ¥
|
|
United Kingdom
|
ISE-NET Solutions Limited ¥
|
|
United Kingdom
|
The Carphone Warehouse UK Limited ¥
|
|
United Kingdom
|
The Phone House SAS ¥
|
|
France
|
Telecoms Insurance Services ¥
|
|
France
|
The Phone House Holdings (UK) Limited ¥
|
|
United Kingdom
|
Best Buy Limited ¥
|
|
United Kingdom
|
MTIS Limited ¥
|
|
Ireland
|
Fresh Telecom Limited ¥
|
|
United Kingdom
|
The Phone House Canarias S.L.U. ¥
|
|
Spain
|
The Phone House Direct S.L. ¥
|
|
Spain
|
The Phone House LTDA ¥
|
|
Portugal
|
The Phone House Mobil S.L.U. ¥
|
|
Spain
|
The Phone House Spain S.L.U. ¥
|
|
Spain
|
Telechoice Espana ¥
|
|
Spain
|
Sociedad Gestora de Participacoes Sociais SQ ¥
|
|
Portugal
|
OSFONE-Comercio de Aparelhos de Telecommunicaciones Lda ¥
|
|
Portugal
|
OSFONE NEGOCIOS- Comercio de Aparelhos de Telecommunicaciones Lda ¥
|
|
Portugal
|
Tecnologias Integrales de Telecommunicaciones S.A. ¥
|
|
Spain
|
Xtra Telecom SL ¥
|
|
Spain
|
Phone House International AB ¥
|
|
Sweden
|
GEAB The Phone House AB ¥
|
|
Sweden
|
MSG The Phone House AB ¥
|
|
Sweden
|
TalkTalk Telecom GmbH ¥
|
|
Switzerland
|
The Phone House Deutschland GmbH ¥
|
|
Germany
|
The Phone House Services GmbH ¥
|
|
Germany
|
The Phone House ShopManagement GmbH ¥
|
|
Germany
|
The Phone House Telecom GmbH ¥
|
|
Germany
|
New CPWM Limited
|
|
United Kingdom
|
CPW Mobile Limited
|
|
United Kingdom
|
CPWCO 16 Limited
|
|
United Kingdom
|
BBY Mobile Consulting, LLC
|
|
Delaware
|
Oval (2248) Limited
|
|
United Kingdom
|
BBY Solutions, Inc.
|
|
Minnesota
|
Best Buy Asia Pacific Regional Holdings Limited
|
|
Hong Kong
|
Best Buy Hangzhou Limited
|
|
China
|
Best Buy Nanjing Limited
|
|
China
|
Best Buy Canada Ltd. (6)
|
|
Canada+
|
6349021 Canada Ltd.
|
|
Canada+
|
FutureGard Reinsurance Ltd.
|
|
Turks and Caicos
|
Howell & Associates, Inc.
|
|
Ontario
|
Best Buy Holdings B.V.
|
|
Netherlands
|
Best Buy China Ltd.
|
|
Bermuda
|
Best Buy Purchasing LLC (7)
|
|
Minnesota
|
Partsearch Technologies, Inc. (8)
|
|
Delaware
|
Best Buy Finance, Inc.
|
|
Minnesota
|
BBY (Mauritius I) Ltd.
|
|
Mauritius
|
BBY (Mauritius II) Ltd.
|
|
Mauritius
|
Best Buy China %
|
|
China
|
BBY (Mauritius III) Ltd.
|
|
Mauritius
|
Best Buy (AsiaPacific) Limited
|
|
China
|
Best Buy China UK, LLP
|
|
United Kingdom
|
Best Buy International Finance, S.a.r.l.
|
|
Luxembourg
|
Best Buy Enterprises, S. de R.L. de C.V.
|
|
Mexico, Federal District
|
Best Buy Imports, S. de R.L. de C.V.
|
|
Mexico, Federal District
|
Best Buy Stores, S. de R.L. de C.V.
|
|
Mexico, Federal District
|
ExB Hong Kong Limited
|
|
Hong Kong
|
ExB Marketing Japan G.K.
|
|
Japan
|
Five Star Trust%
|
|
China
|
Best Buy Jiangsu Ltd.
|
|
Mauritius
|
Jiangsu Five Star Appliance Co., Ltd.
|
|
China
|
Anhui Five Star Appliance Co., Ltd
|
|
China
|
Changzhou Five Star Appliance Co., Ltd #
|
|
China
|
Henan Five Star Appliance Co., Ltd
|
|
China
|
Jiangsu Five Star Appliance Purchasing Co., Ltd
|
|
China
|
Jiangsu Five Star Customer Service Co., Ltd.
|
|
China
|
Jiangsu Taide Commercial & Trade Co., Ltd
|
|
China
|
Jiangsu Xingpu Science & Technology Trading Co., Ltd
|
|
China
|
Ningbo Xingpu Five Star Appliance Co., Ltd
|
|
China
|
Shandong Five Star Appliance Co., Ltd
|
|
China
|
Sichuan Xingpu Five Star Appliance Co., Ltd
|
|
China
|
Wuxi Five Star Appliance Co., Ltd
|
|
China
|
Yancheng Asia Shopping Mall Co., Ltd
|
|
China
|
Yunnan Five Star Appliance Co.,Ltd
|
|
China
|
Zhejiang Xingpu Five Star Appliance Co., Ltd
|
|
China
|
Zhejiang Xingpu Five Star Appliance Service Co., Ltd
|
|
China
|
Global Connect China%
|
|
China
|
Best Buy Mobile (Nanjing) Management Consulting Co., Ltd.
|
|
China
|
Best Buy - Fuse Capital Digital Media Fund, LLC
|
|
Delaware
|
Project Austin, LLC(9)
|
|
Delaware
|
Best Buy UK Investments 1, LLC
|
|
Delaware
|
Best Buy UK Investments 2, LLC
|
|
Delaware
|
CCL Insurance Company
|
|
Vermont
|
CP Gal Ritchfield, LLC
|
|
Delaware
|
Magnolia Hi-Fi, LLC (10)
|
|
Washington
|
mindSHIFT Technologies, Inc.(11)
|
|
Delaware
|
Invision.com, Inc.
|
|
Delaware
|
Online Services Co.
|
|
Minnesota
|
Pacific Sales Kitchen and Bath Centers, LLC (12)
|
|
California
|
Project Jaguar, Inc.
|
|
Delaware
|
Retspan, LLC
|
|
Delaware
|
Project Jaguar Ltd.
|
|
United Kingdom
|
Retspan Deutschland GmbH
|
|
Germany
|
Project Theo 1, LLC
|
|
Delaware
|
Redline Entertainment, Inc. (13)
|
|
Minnesota
|
Talkback, Inc.
|
|
Washington
|
*
|
Indirect subsidiaries are indicated by indentation.
|
#
|
We own 60% of this entity
|
¥
|
Jointly held – owned 50%
|
+
|
Federally chartered
|
%
|
China Business Trust
|
(1)
|
Audiovisions
|
(2)
|
Geek Squad, Audiovisions, 2nd Turn, Magnolia Home Theater, FutureShop, Best Buy Mobile, Best Buy Express, DealTree, TechLiquidators, Cowboom, Best Buy On, Warehouse B, BestBuy.com, Best Buy Simplicity
|
(3)
|
Best Buy Blue
|
(4)
|
Best Buy Simplicity
|
(5)
|
The Phone House
|
(6)
|
FutureShop, Best Buy Mobile, Geeksquad
|
(7)
|
Insignia Products, Cowboom, Dynex
|
(8)
|
Andrews Electronics
|
(9)
|
Tecca, Tecca.com
|
(10)
|
Magnolia, Magnolia Audio Video
|
(11)
|
White Glove Technologies
|
(12)
|
Pacific Sales, Kitchen, Bath & Electronics; Pacific Service Center Inc.; Pacific Kitchen & Home; Pacific Sales; Pacific Sales, Kitchen & Home
|
(13)
|
Redline Films
|
Date:
|
March 27, 2013
|
/s/ Hubert Joly
|
|
|
Hubert Joly
|
|
|
President and Chief Executive Officer
|
Date:
|
March 27, 2013
|
/s/ Sharon L. McCollam
|
|
|
Sharon L. McCollam
|
|
|
Executive Vice President – Chief Administrative Officer and Chief Financial Officer
|
Date:
|
March 27, 2013
|
/s/ Hubert Joly
|
|
|
Hubert Joly
|
|
|
President and Chief Executive Officer
|
Date:
|
March 27, 2013
|
/s/ Sharon L. McCollam
|
|
|
Sharon L. McCollam
|
|
|
Executive Vice President – Chief Administrative Officer and Chief Financial Officer
|
Components of Revenue Change
|
|||||||||||
|
|
|
|
|
|
|
|
||||
|
Enterprise
|
|
Domestic
|
|
International
|
|
|
||||
|
12 Months Ended
|
|
12 Months Ended
|
|
12 Months Ended
|
|
|
||||
|
February 2, 2013
|
|
February 2, 2013
|
|
February 2, 2013
|
|
|
||||
|
(Unaudited recast)
|
|
(Unaudited recast)
|
|
(Unaudited recast)
|
|
|
||||
Comparable store sales impact
|
(2.9
|
)%
|
|
(1.7
|
)%
|
|
(6.4
|
)%
|
|
|
|
Net store changes
|
(0.2
|
)%
|
|
(0.8
|
)%
|
|
1.7
|
%
|
|
|
|
Extra week of revenue
|
1.5
|
%
|
|
1.8
|
%
|
|
0.6
|
%
|
|
|
|
Non-comparable sales channels
|
0.6
|
%
|
|
0.3
|
%
|
|
1.2
|
%
|
|
|
|
Impact of foreign currency exchange rate fluctuations
|
0.2
|
%
|
|
—
|
%
|
|
0.9
|
%
|
|
|
|
Total revenue decrease
|
(0.8
|
)%
|
|
(0.4
|
)%
|
|
(2.0
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenue Mix and Comparable Store Sales
|
|||||||||||
|
|
|
|
|
|
|
|
||||
|
Domestic Segment
|
||||||||||
|
Revenue Mix Summary
|
|
Comparable Store Sales Summary
|
||||||||
|
12 Months Ended
|
|
12 Months Ended
|
||||||||
|
February 2, 2013
|
|
January 28, 2012
|
|
February 2, 2013
|
|
January 28, 2012
|
||||
|
(Unaudited recast)
|
|
(Unaudited recast)
|
|
(Unaudited recast)
|
|
(Unaudited recast)
|
||||
Consumer Electronics
|
34
|
%
|
|
36
|
%
|
|
(7.0
|
)%
|
|
(5.9
|
)%
|
Computing and Mobile Phones
|
44
|
%
|
|
40
|
%
|
|
7.0
|
%
|
|
4.9
|
%
|
Entertainment
|
9
|
%
|
|
12
|
%
|
|
(21.5
|
)%
|
|
(15.6
|
)%
|
Appliances
|
6
|
%
|
|
5
|
%
|
|
10.1
|
%
|
|
9.7
|
%
|
Services
|
6
|
%
|
|
6
|
%
|
|
0.3
|
%
|
|
0.3
|
%
|
Other
|
1
|
%
|
|
1
|
%
|
|
n/a
|
|
|
n/a
|
|
Total
|
100
|
%
|
|
100
|
%
|
|
(1.7
|
)%
|
|
(2.1
|
)%
|
|
|
|
|
|
|
|
|
||||
|
International Segment
|
||||||||||
|
Revenue Mix Summary
|
|
Comparable Store Sales Summary
|
||||||||
|
12 Months Ended
|
|
12 Months Ended
|
||||||||
|
February 2, 2013
|
|
January 28, 2012
|
|
February 2, 2013
|
|
January 28, 2012
|
||||
|
(Unaudited recast)
|
|
(Unaudited recast)
|
|
(Unaudited recast)
|
|
(Unaudited recast)
|
||||
Consumer Electronics
|
18
|
%
|
|
20
|
%
|
|
(17.2
|
)%
|
|
(6.7
|
)%
|
Computing and Mobile Phones
|
61
|
%
|
|
56
|
%
|
|
(0.1
|
)%
|
|
—
|
%
|
Entertainment
|
4
|
%
|
|
5
|
%
|
|
(17.1
|
)%
|
|
(12.9
|
)%
|
Appliances
|
10
|
%
|
|
10
|
%
|
|
(17.3
|
)%
|
|
4.9
|
%
|
Services
|
7
|
%
|
|
9
|
%
|
|
(7.2
|
)%
|
|
(1.5
|
)%
|
Other
|
<1%
|
|
|
<1%
|
|
|
n/a
|
|
|
n/a
|
|
Total
|
100
|
%
|
|
100
|
%
|
|
(7.5
|
)%
|
|
(2.0
|
)%
|
Segment Information
|
|||||||
|
12-Month
|
|
12-Month
|
||||
|
2013
|
|
2012
|
||||
|
(Unaudited recast)
|
|
(Unaudited recast)
|
||||
Assets
|
|
|
|
||||
Domestic
|
$
|
10,874
|
|
|
$
|
10,280
|
|
International
|
5,913
|
|
|
6,965
|
|
||
Total assets
|
$
|
16,787
|
|
|
$
|
17,245
|
|
Capital expenditures
|
|
|
|
||||
Domestic
|
$
|
504
|
|
|
$
|
472
|
|
International
|
238
|
|
|
275
|
|
||
Total capital expenditures
|
$
|
742
|
|
|
$
|
747
|
|
Depreciation
|
|
|
|
||||
Domestic
|
$
|
620
|
|
|
$
|
608
|
|
International
|
256
|
|
|
276
|
|
||
Total depreciation
|
$
|
876
|
|
|
$
|
884
|
|
|
|
|
|
||||
Geographic Information
|
|||||||
|
12-Month
|
|
12-Month
|
||||
|
2013
|
|
2012
|
||||
|
(Unaudited recast)
|
|
(Unaudited recast)
|
||||
Net sales to customers
|
|
|
|
||||
United States
|
$
|
36,848
|
|
|
$
|
37,007
|
|
Europe
|
5,575
|
|
|
5,228
|
|
||
Canada
|
5,221
|
|
|
5,577
|
|
||
China
|
1,749
|
|
|
2,031
|
|
||
Other
|
228
|
|
|
198
|
|
||
Total revenue
|
$
|
49,621
|
|
|
$
|
50,041
|
|
Long-lived assets
|
|
|
|
||||
United States
|
$
|
2,404
|
|
|
$
|
2,530
|
|
Europe
|
352
|
|
|
352
|
|
||
Canada
|
341
|
|
|
430
|
|
||
China
|
142
|
|
|
160
|
|
||
Other
|
31
|
|
|
19
|
|
||
Total long-lived assets
|
$
|
3,270
|
|
|
$
|
3,491
|
|