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26
(2) Included within net earnings (loss) from continuing operations and net earnings (loss) attributable to Best Buy Co., Inc. shareholders for fiscal 2015
includes $353 million due to a discrete benefit related to reorganizing certain European legal entities.
(3) For fiscal 2015, 2014, 2013, and 2012 total assets and debt, including current portion are recast to present our retrospective adoption of Accounting
Standards Update (ASU) 2015-17 Balance Sheet Classification of Deferred Taxes, ASU 2015-03 Simplifying the Presentation of Debt Issuance Costs,
and ASU 2015-15 Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. Refer to Note 1,
Summary of Significant Accounting Policies, of the Notes to Consolidated Financial Statements, included in Item 8, Financial Statements and
Supplementary Data, of this Annual Report on Form 10-K for further information about our credit facilities. The current ratio for the related fiscal years
was also recast to account for the change in balance sheet classification related to the adoption of these ASUs.
(4) Included within operating income and net earnings (loss) from continuing operations for fiscal 2014 is $149 million ($95 million net of taxes) of
restructuring charges from continuing operations recorded in fiscal 2014 related to measures we took to restructure our business. Net earnings (loss)
attributable to Best Buy Co., Inc. shareholders for fiscal 2014 includes restructuring charges (net of tax and noncontrolling interest) from continuing
operations.
(5) Fiscal 2013 (11-month) included 48 weeks and fiscal 2012 included 53 weeks. All other periods presented included 52 weeks.
(6) Included within our operating income and net earnings (loss) from continuing operations for fiscal 2013 (11-month) is $415 million ($268 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 $614 million (net of taxes) of goodwill impairment charges
primarily related to Best Buy Canada. Included in gain (loss) from discontinued operations is $23 million (net of taxes) of restructuring charges primarily
related to Best Buy Europe and $207 million (net of taxes) of goodwill impairment charges related to Five Star. Net earnings (loss) attributable to Best
Buy Co., Inc. shareholders for fiscal 2013 (11-month) includes restructuring charges (net of tax and noncontrolling interest) from continuing operations
and the net of tax goodwill impairment.
(7) Included within our operating income and net earnings (loss) from continuing operations for fiscal 2012 is $48 million ($30 million net of taxes) of
restructuring charges from continuing operations recorded in fiscal 2012 related to measures we took to restructure our business. Included in gain (loss)
from discontinued operations is $194 million (net of taxes) of restructuring charges recorded in fiscal 2012 related to measures we took to restructure our
business. Also included in gain (loss) from discontinued operations for fiscal 2012 is $1.2 billion (net of taxes) of goodwill impairment charges related to
Best Buy Europe. 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).
(8) Our comparable sales calculation compares revenue from stores, websites and call centers operating for at least 14 full months, as well as revenue related
to certain other comparable sales channels for a particular period to the corresponding period in the prior year. Relocated stores, as well as remodeled,
expanded, and downsized stores closed more than 14 days, are excluded from the comparable sales calculation until at least 14 full months after
reopening. Acquisitions are included in the comparable sales calculation beginning with the first full quarter following the first anniversary of the date of
the acquisition. The portion of the calculation of comparable sales attributable to our International segment excludes the effect of fluctuations in foreign
currency exchange rates. The calculation of comparable sales excludes the impact of the extra week of revenue in the fourth quarter of fiscal 2012, as well
as revenue from discontinued operations. Comparable online sales are included in our comparable sales calculation. The method of calculating
comparable sales varies across the retail industry. As a result, our method of calculating comparable 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.
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.
Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") is intended to provide a
reader of our financial statements with a narrative from the perspective of our management on our financial condition, results
of operations, liquidity and certain other factors that may affect our future results. Unless otherwise noted, transactions and
other factors significantly impacting our financial condition, results of operations and liquidity are discussed in order of
magnitude. Our MD&A is presented in the following sections:
• Overview
• Business Strategy
• Fiscal 2017 Trends
• Results of Operations
• Liquidity and Capital Resources
• Critical Accounting Estimates
• New Accounting Pronouncements
Our MD&A should be read in conjunction with the Consolidated Financial Statements and related Notes included in Item 8,
Financial Statements and Supplementary Data, of this Annual Report on Form 10-K.
Overview
We are a leading provider of technology products, services and solutions. We offer these products and services to the customers
who visit our stores, engage with Geek Squad agents or use our websites or mobile applications. We have operations in the
U.S., Canada and Mexico. We operate two reportable segments: Domestic and International. The Domestic segment is