Best Buy 2010 Annual Report Download - page 38

Download and view the complete annual report

Please find page 38 of the 2010 Best Buy annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 72

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72

For fiscal 2010, the operating income, adjusted SG&A and domestic market share Executive Officer STIP targets and
corresponding scores were as follows:
Domestic Market
Operating Income Adjusted SG&A Share
$’s in millions $’s in millions Improvement
LOW HIGH LOW HIGH LOW HIGH STI Score
$$
2,250 >/= 9,460 </= 2.00% >/= 2.0
2,200 2,249 9,520 9,461 1.80% 1.99% 1.8
2,150 2,199 9,580 9,521 1.60% 1.79% 1.6
2,100 2,149 9,640 9,581 1.40% 1.59% 1.4
2,050 2,099 9,700 9,641 1.20% 1.39% 1.2
2,000 2,049 9,760 9,701 1.00% 1.19% 1.0 你Target
1,900 1,999 9,820 9,761 0.80% 0.99% 0.8
1,800 1,899 9,880 9,821 0.60% 0.79% 0.6
1,700 1,799 9,940 9,881 0.40% 0.59% 0.4
</= 1,699 >/= 9,941 0.00% 0.39% 0.0
For fiscal 2010, our operating income was charges of $52 million not included in reported SG&A
$2,235 million, a 20% improvement compared to our and was further adjusted for the following: (i) higher
fiscal 2009 operating income of $1,870; our adjusted incentive pay due to better than planned financial
SG&A was $9,691 million; and our domestic market performance as well as higher sales volume than
share improved by 2.60 percentage points compared to planned that impacted store labor and volume related
fiscal 2009. transactional costs, $121 million, (ii) utilization of
budgeted foreign exchange translation rates in our
Our adjusted SG&A of $9,691 million compared to international businesses versus actual translation rates,
reported SG&A of $9,873 million in fiscal 2010 $94 million, and (iii) greater investment gains than
includes certain adjustments for expenses that were likely expected in fiscal 2010 on our deferred compensation
to vary with volume and performance in an uncertain assets, $19 million (an offset to which is recorded in
sales volume environment. Such adjustments were investment income with no impact to net earnings).
provided for in the plan target design. Accordingly,
adjusted SG&A included the impact of restructuring
Based on these results, the Executive Officer STIP scores for the eligible named executive officers were as follows:
Metric Score
Operating Income 1.8
Adjusted SG&A 1.2
Domestic Market Share 2.0
38