Best Buy 2004 Annual Report Download - page 18

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11-Year Financial Highlights
Fiscal Year(1) 2004 2003(2) 2002(3) 2001(3)
Statement of Earnings Data
Revenue $24,547 $20,946 $ 17,711 $ 15,189
Gross profit 6,197 5,236 3,770 3,012
Selling, general and administrative expenses 4,893 4,226 2,862 2,401
Operating income 1,304 1,010 908 611
Earnings (loss) from continuing operations 800 622 570 401
Loss from discontinued operations, net of tax (29) (441) — (5)
Loss on disposal of discontinued operations, net of tax (66) ———
Cumulative effect of change in
accounting principles, net of tax(2) —(82) — —
Net earnings (loss) 705 99 570 396
Per Share Data(4)
Continuing operations $2.44 $1.91 $ 1.77 $ 1.26
Discontinued operations (0.09) (1.36) — (0.02)
Loss on disposal of discontinued operations (0.20) ———
Cumulative effect of accounting changes —(0.25) — —
Net earnings (loss) 2.15 0.30 1.77 1.24
Cash dividends declared and paid 0.40 ———
Common stock price: High 62.70 53.75 51.47 59.25
Low 25.55 16.99 22.42 14.00
Operating Statistics
Comparable store sales change(5) 7.1% 2.4% 1.9% 4.9%
Gross profit rate 25.2% 25.0% 21.3% 19.8%
Selling, general and administrative expense rate 19.9% 20.2% 16.2% 15.8%
Operating income rate 5.3% 4.8% 5.1% 4.0%
Year-End Data
Working capital(6) $1,223 $1,074 $ 895 $ 214
Total assets(6) 8,652 7,694 7,367 4,840
Long-term debt, including current portion(6) 850 834 820 296
Convertible preferred securities ————
Shareholders’ equity 3,422 2,730 2,521 1,822
Number of stores
U.S. Best Buy stores 608 548 481 419
Magnolia Audio Video stores 22 19 13 13
International stores 127 112 95 —
Musicland stores —1,195 1,321 1,309
Total retail square footage (000s)
U.S. Best Buy stores 26,421 24,243 21,599 19,010
Magnolia Audio Video stores 218 189 133 133
International stores 2,800 2,375 1,923 —
Musicland stores —8,305 8,806 8,772
Please read this table in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations,
as well as the Consolidated Financial Statements and Notes, included in Item 7 and Item 8, respectively, of our Annual Report on
Form 10-K. Certain prior-year amounts have been reclassified to conform to the current-year presentation. Results for fiscal 2004,
2003, 2002 and 2001 reflect the classification of Musicland’s financial results as discontinued operations.
(1) Both fiscal 2001 and 1996 included 53 weeks. All other periods presented included 52 weeks.
(2) Effective on March 3, 2002, we adopted Statement of Financial Accounting Standards (SFAS) No. 142, Goodwill and Other
Intangible Assets. During fiscal 2003, we completed the required goodwill impairment testing and recognized an after-tax,
non-cash impairment charge of $40 that is reflected in our fiscal 2003 financial results as a cumulative effect of a change in
accounting principle. Also effective on March 3, 2002, we changed our method of accounting for vendor allowances in accordance
with Emerging Issues Task Force (EITF) Issue No. 02-16, Accounting by a Reseller for Cash Consideration Received from a Vendor.
The change resulted in an after-tax, non-cash charge of $42 that also is reflected in our fiscal 2003 financial results as a cumulative
effect of a change in accounting principle. Refer to Note 1 of the Notes to Consolidated Financial Statements included in Item 8
of our Annual Report on Form 10-K. Prior fiscal years have not been restated to reflect the pro forma effects of these changes.
During fiscal 1994, we adopted SFAS No. 109, Accounting for Income Taxes, resulting in a cumulative effect adjustment of $1.
(3) During the third quarter of fiscal 2002, we acquired the common stock of Future Shop Ltd. During the fourth quarter of fiscal
2001, we acquired the common stock of Musicland Stores Corporation (Musicland) and Magnolia Hi-Fi, Inc. (Magnolia Hi-Fi).
During fiscal 2004, Magnolia Hi-Fi began doing business as Magnolia Audio Video. The results of operations of these businesses
are included from their respective dates of acquisition. As noted previously, Musicland’s financial results are included in
discontinued operations.
$ in millions, except per share amounts