Best Buy 2003 Annual Report Download - page 154

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The following tables show selected unaudited quarterly operating results for each quarter of fiscal 2003.
($ in millions, except per share amounts)
Quarter 1st 2nd 3rd 4th Fiscal Year
Fiscal 2003 as revised(1)(2)
Revenue $ 4,202 $ 4,624 $ 5,131 $ 6,989 $ 20,946
Comparable store sales change(3) 6.5% 2.6% 0.7% 1.2% 2.4%
Gross profit $ 1,080 $ 1,153 $ 1,250 $ 1,753 $ 5,236
Operating income 129 129 140 612 1,010
Earnings from continuing operations 79 79 86 378 622
Loss from discontinued operations, net of
tax (330) (17) (27) (67) (441)
Cumulative effect of change in accounting
principle (82) — — — (82)
Net (loss) earnings (333) 62 59 311 99
Diluted (loss) earnings per share:
Continuing operations 0.24 0.24 0.27 1.16 1.91
Discontinued operations (1.01) (0.05) (0.08) (0.21) (1.36)
Cumulative effect of accounting changes (0.25) — — — (0.25)
Diluted (loss) earnings per share (1.02) 0.19 0.18 0.96 0.30
Quarter 1st 2nd 3rd
Fiscal 2003 as previously reported
Revenue $ 4,586 $ 5,008 $ 5,505
Comparable store sales change(3) 5.7% 2.0% (0.4)%
Gross profit $ 1,065 $ 1,129 $ 1,187
Operating income 115 103 139
Net earnings 70 62 85
Diluted earnings per share 0.22 0.19 0.26
Note: Certain totals may not add due to rounding.
(1) All quarters presented have been revised to reflect the classification of Musicland’s financial results as discontinued
operations. Refer to note 2 in the Notes to Consolidated Financial Statements beginning on page 52. First−quarter fiscal 2003 results
include an after−tax, non−cash impairment charge of $308 for the full write−off of the goodwill related to our acquisition of
Musicland. Fourth−quarter fiscal 2003 includes an after−tax, non−cash impairment charge of $102 related to a reassessment of the
carrying value of Musicland’s long−lived assets in accordance with SFAS No. 144, Accounting for the Impairment or Disposal of
Long−Lived Assets.
(2) Effective on March 3, 2002, we adopted SFAS No. 142, Goodwill and Other Intangible Assets. During the second quarter of
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 revised fiscal 2003 first−quarter 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 to reflect the newly adopted accounting
principle established in EITF Issue No. 02−16, Accounting by a Reseller for Cash Consideration Received from a Vendor. The related
after−tax, non−cash charge of $42 also is reflected in our revised fiscal 2003 first−quarter financial results as a cumulative effect of a
change in accounting principle. Refer to note 1 on page 51 in the Notes to Consolidated Financial Statements.
38
The following tables show selected unaudited quarterly operating results for each quarter of fiscal 2002.
($ in millions, except per share amounts)
Quarter 1st 2nd 3rd(4) 4th Fiscal Year