Best Buy 2014 Annual Report Download - page 34

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29
Discontinued Operations Presentation
The results of our large-format Best Buy branded stores in China and Turkey, Best Buy Europe, Napster and mindSHIFT are
presented as discontinued operations in our Consolidated Statements of Earnings. Unless otherwise stated, financial results
discussed herein refer to continuing operations.
Fiscal 2014 Summary
• Fiscal 2014 (12-month) included net earnings from continuing operations of $689 million, compared to a net loss of $467
million in fiscal 2013 (11-month). Net earnings in fiscal 2014 (12-month) included $159 million of restructuring charges,
while fiscal 2013 (11-month) included $822 million of goodwill impairments and $414 million of restructuring charges.
Earnings per diluted share from continuing operations was $1.98 in fiscal 2014 (12-month), compared to loss per diluted
share of $1.38 in fiscal 2013 (11-month).
• Revenue was $42.4 billion in fiscal 2014 (12-month). The increase from fiscal 2013 (11-month) was driven by an extra
month of revenue, partially offset by store closures in the Domestic and International segments and a comparable store
sales decline of 0.8%.
• Our gross profit rate decreased by 0.5% of revenue to 22.8% of revenue. The decrease was primarily due to an investment
in price competitiveness in the Domestic segment and a more promotional environment in the Domestic and International
segments.
• We recorded $159 million of restructuring charges related to several restructuring actions we undertook in fiscal 2014 (12-
month), including our Renew Blue cost reduction initiatives and other operational changes.
• We generated $1.1 billion in operating cash flow in fiscal 2014 (12-month), compared to $1.5 billion in fiscal 2013 (11-
month), and we ended fiscal 2014 (12-month) with $2.7 billion of cash and cash equivalents, compared to $1.8 billion at
the end of fiscal 2013 (11-month). Capital expenditures decreased $158 million to $547 million compared to the prior year
as a result of a more disciplined capital allocation process.
• During fiscal 2014 (12-month), we made four dividend payments totaling $0.68 per share, or $233 million in the
aggregate.
Consolidated Results
The following table presents selected consolidated financial data for each of the past three fiscal years and fiscal 2012 (11-
month recast) ($ in millions, except per share amounts):
12-Month 11-Month 12-Month
Consolidated Performance Summary 2014 2013 2012 2012
(recast)
Revenue $42,410 $39,827 $41,311 $45,457
Revenue gain (decline) % 6.5 % (3.6)% n/a 2.3 %
Comparable store sales % decline (0.8)% (3.4)% (1.6)% (1.5)%
Gross profit $ 9,690 $ 9,298 $ 9,908 $ 10,984
Gross profit as a % of revenue(1) 22.8 % 23.3 % 24.0 % 24.2 %
SG&A $ 8,391 $ 8,181 $ 7,986 $ 8,755
SG&A as a % of revenue(1) 19.8 % 20.5 % 19.3 % 19.3 %
Restructuring charges $ 159 $ 414 $ 24 $ 29
Goodwill impairments $ — $ 822 $ — $ —
Operating income (loss) $ 1,140 $ (119) $ 1,898 $ 2,200
Operating income (loss) as a % of revenue 2.7 % (0.3)% 4.6 % 4.8 %
Net earnings (loss) from continuing operations(2) $ 687 $ (469) $ 1,214 $ 1,421
Gain (loss) from discontinued operations(3) $ (155) $ 28 $(2,639) $ (2,652)
Net earnings (loss) attributable to Best Buy Co., Inc. shareholders $ 532 $ (441) $(1,425) $ (1,231)
Diluted earnings (loss) per share from continuing operations $ 1.98 $ (1.38) $ 3.19 $ 3.81
Diluted earnings (loss) per share $ 1.53 $ (1.30) $ (3.72) $ (3.27)
(1) 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,