Best Buy 2011 Annual Report Download - page 44

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The increase in our Domestic segment’s operating income for fiscal 2010 was due to higher gross profit dollars from net
new store openings and comparable store sales growth, while SG&A dollars grew only 3.1% despite revenue growth of
6.4%, as shown by the decrease in the SG&A rate of 0.6% of revenue. A decrease in restructuring and no goodwill and
tradename impairment charges further contributed to the additional operating income.
Our Domestic segment’s operating income in fiscal 2010 included $25 million of restructuring charges recorded in the
first fiscal quarter, compared to $72 million of restructuring charges recorded in fiscal 2009. The fiscal 2010 restructuring
charges were primarily the result of updates to our Domestic segment’s Best Buy branded store operating model, which
resulted in the elimination of certain positions for which we incurred employee termination costs, whereas the fiscal 2009
restructuring charges related primarily to employee termination benefits offered pursuant to voluntary and involuntary
separation plans at our principal corporate headquarters and certain other locations.
International
The following table presents selected financial data for our International segment for each of the past three fiscal years
($ in millions):
International Segment Performance Summary 2011(1) 2010(2) 2009(3)
Revenue $13,086 $12,380 $9,945
Revenue gain % 5.7% 24.5% 48.6%
Comparable store sales % gain (decline) 2.4% (3.7)% (0.9)%
Gross profit as % of revenue 25.1% 25.3% 23.9%
SG&A as % of revenue 23.3% 23.8% 22.7%
Operating income $ 83 $ 164 $ 112
Operating income as % of revenue 0.6% 1.3% 1.1%
(1) Included within our International segment’s operating income in fiscal 2011 is $171 million of restructuring charges recorded in the
fiscal fourth quarter, primarily related to our plans to exit the Turkey market and restructure our Best Buy branded stores in China.
These charges resulted in a decrease in our International segment’s operating income of 1.3% of revenue for the fiscal year.
(2) Included within our International segment’s operating income in fiscal 2010 is $27 million of restructuring charges recorded in the
fiscal first quarter, primarily related to employee termination benefits and business reorganization costs in Best Buy Europe. These
charges resulted in a decrease in our International segment’s operating income of 0.2% of revenue for the fiscal year.
(3) Included within our International segment’s operating income in fiscal 2009 is $6 million of restructuring charges recorded in the
fiscal fourth quarter related to measures we took to restructure our Canada business. The charges represent termination benefits in
our Canada business. These charges resulted in a decrease in our International segment’s operating income of 0.1% of revenue for
the fiscal year.
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