Best Buy 2015 Annual Report Download - page 51

Table of Contents
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Credit rating agencies review their ratings periodically and, therefore, the credit rating assigned to us by each agency may be
subject to revision at any time. Accordingly, we are not able to predict whether our current credit ratings will remain as
disclosed above. Factors that can affect our credit ratings include changes in our operating performance, the economic
environment, conditions in the retail and consumer electronics industries, our financial position and changes in our business
strategy. If further changes in our credit ratings were to occur, they could impact, among other things, interest costs for certain
of our credit facilities, our future borrowing costs, access to capital markets, vendor financing terms and future new-store
leasing costs.
Restricted Cash
Our liquidity is also affected by restricted cash balances that are pledged as collateral or restricted to use for general liability
insurance and workers' compensation insurance. Restricted cash and cash equivalents related to our continuing operations,
which are included in other current assets, remained flat at $184 million and $182 million at January 31, 2015, and February 1,
2014, respectively.
Capital Expenditures
Our capital expenditures typically include investments in our stores, distribution capabilities and information technology
enhancements (including e-commerce). During fiscal 2015, we invested $551 million (excluding Five Star) in property and
equipment, primarily related to upgrading our information technology systems and capabilities, and store-related projects.
The following table presents our capital expenditures for each of the past three fiscal years ($ in millions):
12-Month 12-Month 11-Month
2015 2014 2013
New stores $ 3 $ 8 $ 49
Store-related projects(1) 177 110 149
E-commerce and information technology 355 350 329
Other 16 9 47
Total capital expenditures(2)(3) $ 551 $ 477 $ 574
(1) Includes store remodels and various merchandising projects.
(2) Excludes $10 million, $70 million, and $131 million for fiscal 2015 (12-month), fiscal 2014 (12-month) and 2013 (11-month), respectively, related to
Five Star and Best Buy Europe.
(3) Total capital expenditures exclude non-cash capital expenditures of $14 million, $13 million and $29 million for fiscal 2015 (12-month), fiscal 2014 (12-
month) and 2013 (11-month), respectively. Non-cash capital expenditures are comprised of capitalized leases, as well as additions to property and
equipment included in accounts payable.
In fiscal 2016 we estimate capital expenditures of approximately $650 million to $700 million, with the focus on retail store, e-
commerce and information technology projects.
Debt and Capital
We have $350 million principal amount of notes due March 15, 2016 (the “2016 Notes”), $500 million principal amount of
notes due August 1, 2018 (the “2018 Notes”) and $650 million principal amount of notes due March 15, 2021 (the “2021
Notes”). Refer to Note 5, Debt, of the Notes to Consolidated Financial Statements, included in Item 8, Financial Statements
and Supplementary Data, of this Annual Report on Form 10-K for further information about our 2016 Notes, 2018 Notes and
2021 Notes.
Other
At January 31, 2015 and February 1, 2014, we had $69 million and $95 million, respectively, outstanding under financing lease
obligations.
Share Repurchases and Dividends
From time to time, we repurchase our common stock in the open market pursuant to programs approved by our Board. We may
repurchase our common stock for a variety of reasons, such as acquiring shares to offset dilution related to equity-based