Best Buy 2011 Annual Report Download - page 37

which resulted in charges for inventory write-downs, property and equipment impairments, employee termination
benefits, intangible asset impairments and facility closure costs.
• We ended fiscal 2011 with $1.1 billion of cash and cash equivalents, compared to $1.8 billion at the end of fiscal
2010. Operating cash flow decreased to $1.2 billion in fiscal 2011 compared to fiscal 2010 operating cash flow of
$2.2 billion due primarily to changes in working capital, while capital expenditures increased 21.0% to $744 million.
• During fiscal 2011, we made four dividend payments totaling $0.58 per share, or $237 million in the aggregate.
• We repurchased and retired 32.6 million shares at a cost of $1.2 billion during fiscal 2011.
Consolidated Results
The following table presents selected consolidated financial data for each of the past three fiscal years ($ in millions,
except per share amounts):
Consolidated Performance Summary 2011(1) 2010(2) 2009(3)(4)
Revenue $50,272 $49,694 $45,015
Revenue gain % 1.2% 10.4% 12.5%
Comparable store sales % (decline) gain (1.8)% 0.6% (1.3)%
Gross profit as % of revenue(5) 25.1% 24.5% 24.4%
SG&A as % of revenue(5) 20.5% 19.9% 20.0%
Operating income $ 2,114 $ 2,235 $ 1,870
Operating income as % of revenue 4.2% 4.5% 4.2%
Net earnings $ 1,277 $ 1,317 $ 1,003
Diluted earnings per share $ 3.08 $ 3.10 $ 2.39
(1) Included within our operating income and net earnings for fiscal 2011 is $222 million ($147 million net of taxes) of restructuring
charges recorded in the fiscal fourth quarter related to measures we took to restructure our businesses. These charges resulted in a
decrease in our operating income of 0.5% of revenue for the fiscal year.
(2) Included within our operating income and net earnings for fiscal 2010 is $52 million ($25 million net of taxes and noncontrolling
interest) of restructuring charges recorded in the fiscal first quarter related to measures we took to restructure our businesses. These
charges resulted in a decrease in our operating income of 0.1% of revenue for the fiscal year.
(3) Included within our operating income and net earnings for fiscal 2009 is $78 million ($48 million net of tax) of restructuring
charges recorded in the fiscal fourth quarter related to measures we took to restructure our businesses. In addition, operating
income is inclusive of goodwill and tradename impairment charges of $66 million ($64 net of tax) related to our former Speakeasy
business. Collectively, these charges resulted in a decrease in our operating income of 0.2% of revenue for the fiscal year.
(4) Included within our net earnings for fiscal 2009 is $111 million ($96 million net of tax) of investment impairment charges related to
our investment in the common stock of CPW.
(5) Because retailers vary in how they record costs of operating their supply chain between cost of goods sold and SG&A, our gross
profit rate and SG&A rate may not be comparable to other retailers’ corresponding rates. For additional information regarding costs
classified in cost of goods sold and SG&A, 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.
Fiscal 2011 Results Compared With Fiscal 2010
Throughout fiscal 2011, the majority of geographic markets in which we operate generally continued to endure difficult
and uncertain economic conditions. In addition, customer appetite for certain product categories was below industry
expectations. Both of these factors had a direct bearing on our revenue. We have responded to the current economic
environment by closely managing our SG&A, as well as focusing on efforts to improve our gross profit.
The 1.2% revenue increase in fiscal 2011 resulted primarily from the net addition of 147 new stores during fiscal 2011
and the positive impact of foreign currency exchange rate fluctuations, partially offset by a comparable store sales decline.
37