Best Buy 2013 Annual Report Download - page 28

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impairment charges primarily related to Best Buy Canada and 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.
(3) Included within our Operating income (loss) and Net earnings (loss) from continuing operations for fiscal 2012 is $58 million ($38 million net of taxes)
of restructuring charges from continuing operations recorded in fiscal 2012 related to measures we took to restructure our business. Also included in Net
earnings (loss) from continuing operations for fiscal 2012 is $1.2 billion (net of taxes) of goodwill impairment charges related to Best Buy Europe.
Included in Gain (loss) from discontinued operations is $186 million (net of taxes) of restructuring charges recorded in fiscal 2012 related to measures we
took to restructure our business. 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).
(4) Included within our Operating income (loss) and Net earnings (loss) from continuing operations for fiscal 2011 is $147 million ($93 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 rate of 0.3% of revenue for the fiscal year. Included in Gain (loss) from discontinued operations is $54 million (net of
taxes) of restructuring charges recorded in the fiscal fourth quarter related to measures we took to restructure our business. Net earnings (loss) attributable
to Best Buy Co., Inc. shareholders for fiscal 2011 includes the net of tax impact of restructuring charges from both continuing and discontinued
operations.
(5) Included within our Operating income (loss), Net earnings (loss) from continuing operations and Net earnings (loss) attributable to Best Buy Co., Inc.
shareholders for fiscal 2010 is $52 million ($25 million net of taxes and noncontrolling interest) of restructuring charges related to measures we took to
restructure our businesses. These charges resulted in a decrease in our operating income rate of 0.1% of revenue for the fiscal year.
(6) Included within our Operating income (loss) and Net earnings (loss) from continuing operations for fiscal 2009 is $78 million ($48 million net of tax) of
restructuring charges related to measures we took to restructure our businesses. Included within Gain (loss) from discontinued operations is goodwill and
tradename impairment charges of $64 million (net of tax) related to our former Speakeasy business. Net earnings (loss) attributable to Best Buy Co., Inc.
shareholders for fiscal 2009 includes the net of tax impact of restructuring charges from continuing operations and the goodwill and tradename
impairment from discontinued operations.
(7) Included within our Net earnings (loss) from continuing operations and Net earnings (loss) attributable to Best Buy Co., Inc. shareholders 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.
(8) Comparable store sales is a commonly used metric in the retail industry, which compares revenue for a particular period with the corresponding period in
the prior year, excluding the impact of sales from new stores opened. Our comparable store sales is comprised of revenue from stores operating for at
least 14 full months, as well as revenue related to call centers, websites and online sales, and our other comparable sales channels. Revenue we earn from
sales of merchandise to wholesalers or dealers is not included within our comparable store sales calculation. Relocated stores, as well as remodeled,
expanded, and downsized stores closed more than 14 days, are excluded from the comparable store sales calculation until at least 14 full months after
reopening. Acquired stores are included in the comparable store sales calculation beginning with the first full quarter following the first anniversary of the
date of the acquisition. The calculation of comparable store sales excludes the impact of the extra week of revenue in the fourth quarter of fiscal 2012, as
well as revenue from discontinued operations. The portion of our calculation of the comparable store sales percentage change attributable to our
International segment excludes the effect of fluctuations in foreign currency exchange rates. The method of calculating comparable store sales varies
across the retail industry. As a result, our method of calculating comparable store 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.
(10) As a result of the adoption of new accounting guidance related to the treatment of noncontrolling interests in consolidated financial statements, we
recharacterized minority interests previously reported on our Consolidated Balance Sheets as noncontrolling interests and classified them as a component
of shareholders' equity. As a result, we have reclassified total shareholders' equity for fiscal year 2009 to include noncontrolling interests of $513 million.
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 seven sections:
• Overview
• Business Strategy and Core Philosophies
• Results of Operations
• Liquidity and Capital Resources
• Off-Balance-Sheet Arrangements and Contractual Obligations
• Critical Accounting Estimates
• New Accounting Standards
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 Transition Report on Form 10-K.
On November 2, 2011, our Board of Directors approved a change in our fiscal year-end from the Saturday nearest the end of
February to the Saturday nearest the end of January, effective beginning with our fiscal year 2013. As a result of this change,
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