Enterprise Revenue Decreased 6.3%
Domestic Comparable Online Sales Increased
155.4%
GAAP Diluted EPS of $0.61
Non-GAAP Diluted EPS of $0.67
Best Buy Co., Inc. (NYSE: BBY) today announced results for the
13-week first quarter ended May 2, 2020 (“Q1 FY21”), as compared to
the 13-week first quarter ended May 4, 2019 (“Q1 FY20”).
Q1 FY21
Q1 FY20
Revenue ($ in millions)
Enterprise
$
8,562
$
9,142
Domestic segment
$
7,915
$
8,481
International segment
$
647
$
661
Enterprise comparable sales % change1
(5.3)
%
1.1
%
Domestic comparable sales % change1
(5.7)
%
1.3
%
Domestic comparable online sales %
change1
155.4
%
14.5
%
International comparable sales %
change1
0.2
%
(1.2)
%
Operating Income
GAAP operating income as a % of
revenue
2.7
%
3.7
%
Non-GAAP operating income as a % of
revenue
2.9
%
3.8
%
Diluted Earnings per Share
("EPS")
GAAP diluted EPS
$
0.61
$
0.98
Non-GAAP diluted EPS
$
0.67
$
1.02
For GAAP to non-GAAP reconciliations of the measures referred to
in the above table, please refer to the attached supporting
schedule.
“On behalf of all of us at Best Buy, I want to extend our
sincere appreciation and gratitude to all those who are on the
front lines working to keep us safe or maintain essential services,
and we offer our heartfelt sympathy to all those who have lost
someone to this virus or who are sick with COVID-19,” said Corie
Barry, Best Buy CEO. “Our leadership team has been responding to
the evolving situation with a focus on keeping our customers and
our employees safe while we meet our customers’ needs.”
“In the middle of Q1, we shifted all our stores to a
curbside-only operating model and were able to retain approximately
81% of last year’s sales2 during the last six weeks of the quarter,
even though not a single customer set foot in our stores,” Barry
continued. “The strong sales retention is a testament to the
strength of our multi-channel capabilities and the strategic
investments we have been making over the past several years.”
Barry continued, “The COVID-19 pandemic has changed the way we
work, learn, care for ourselves and, importantly, connect with each
other. Against that backdrop, our purpose has never been more
relevant: to enrich lives through technology. It is because of that
purpose that we were, in virtually every jurisdiction with a
stay-at-home order in place, designated an essential retailer
because of the products and services we offer.”
“As challenging as the current situation is, I am certain Best
Buy will remain a strong, vibrant company that is well positioned
to deliver on our purpose and thrive in a new and different
environment. In fact, we have taken the opportunity to accelerate
aspects of our strategy as this environment has quickly shifted the
ways in which customers interact with retailers,” said Barry.
Barry concluded, “I want to take this moment to thank our
employees, who have faced immense change with grit, determination
and compassion and have helped us shape our approach to safe
retailing. Many are working with customers every day, many of whom
are also scared, frustrated and, occasionally, hostile in this
COVID environment, to ensure they have access to the products and
services they need. Others are working tirelessly to maintain a
supply chain that delivers with speed and keeps our customers at
home, and so many employees are making technical and operational
changes every hour from their home offices. None of this is
possible without their dedication, and I am truly grateful and feel
lucky to be on the team with them.”
Best Buy CFO Matt Bilunas commented, “As a result of the ongoing
uncertainty related to COVID-19, we suspended all FY21 financial
guidance on March 21 and are not providing guidance today. Our
priority has been and will continue to be the safety of our
employees and customers while providing essential products and
services during this time. We remain thoughtful about managing our
profitability and liquidity, balancing our short-term decisions to
navigate this unprecedented situation while preserving the elements
of our strategy that will ensure we remain a vibrant company in the
future.”
Summary of Domestic Operational
Changes
Except where otherwise directed by state and local authorities,
starting March 22, the company proactively shifted to a contactless
curbside-only operating model for all its Domestic stores on an
interim basis. This allowed the company to continue to serve
customers who purchased online or via the Best Buy app and
requested pickup at their local store. Additionally, on March 22,
large products such as appliances were delivered where permitted
and under strict safety guidelines. All in-home installations and
repairs were temporarily suspended and all in-home consultations
started to be conducted virtually. During this time, there were no
changes in customers’ ability to transact online and have their
products shipped directly to their homes.
On April 27, after implementing new safety guidelines, the
company resumed valuable services like large product delivery,
in-home installations and repairs in approximately 80% of U.S. ZIP
codes for new orders.
At the beginning of Q2 FY21, on May 4, the company started
welcoming customers back into its stores in innovative ways that
follow strict social distancing practices and use proper protective
equipment. Specifically, the company began offering a new
consultation service to customers in store, by appointment only.
The company currently has nearly 700 stores, or approximately 70%,
operating this way. In addition, the company is evaluating
additional changes, including expanding store hours and opening
some stores beyond our current appointment-only model.
Domestic Segment Q1 FY21
Results
Domestic Revenue
Domestic revenue of $7.92 billion decreased 6.7% versus last
year. The decrease was driven by a comparable sales1 decline of
5.7% and the loss of revenue from 24 permanent store closures in
the past year.
The largest comparable sales growth drivers were computing and
gaming. These growth drivers were more than offset by declines in
home theater, mobile phones, digital imaging and services.
Domestic online revenue of $3.34 billion increased 155.4% on a
comparable basis1 due to higher conversion rates and increased
traffic. As a percentage of total Domestic revenue, online revenue
increased to approximately 42.2% versus 15.4% last year.
Domestic Gross Profit Rate
Domestic gross profit rate was 23.0% versus 23.7% last year. The
gross profit rate decrease of approximately 70 basis points was
primarily driven by higher supply chain costs as a result of the
increased mix of online revenue.
Domestic Selling, General and Administrative Expenses
(“SG&A”)
Domestic GAAP SG&A was $1.58 billion, or 19.9% of revenue,
versus $1.68 billion, or 19.8% of revenue, last year. On a non-GAAP
basis, SG&A was $1.56 billion, or 19.7% of revenue, versus
$1.66 billion, or 19.6% of revenue, last year. Both GAAP and
non-GAAP SG&A decreased primarily due to reduced incentive
compensation expense, as the company did not pay or accrue
short-term incentive expense for first quarter performance. Store
payroll expense was lower compared to last year when including an
employee retention credit of $69 million as a result of the Federal
CARES ACT. This employee retention credit is a payroll tax credit,
which represented approximately 50% of qualified wages and health
benefits paid to retained employees not working as a result of
COVID-19.
International Segment Q1 FY21
Results
International Revenue
International revenue of $647 million decreased 2.1% versus last
year. This decrease was primarily driven by the impact of
approximately 320 basis points of negative foreign currency
exchange rates, which was partially offset by revenue from new
stores opened in Mexico in the past year.
International Gross Profit Rate
International gross profit rate was 22.3% versus 24.2% last
year. The gross profit rate decrease of approximately 190 basis
points was primarily due to Canada, which was largely driven by a
lower mix of higher-margin services revenue and higher supply chain
costs as a result of the increased mix of online revenue.
International SG&A
International SG&A was $156 million, or 24.1% of revenue,
versus $158 million, or 23.9% of revenue, last year. SG&A
decreased primarily due to the favorable impact of foreign exchange
rates.
Income Taxes
The Q1 FY21 effective tax rate was 27.4% versus 19.8% last year.
On a non-GAAP basis, the effective tax rate was 27.2% versus 20.1%
last year. The higher GAAP and non-GAAP effective tax rates were
primarily due to a decrease in the tax benefit from stock-based
compensation.
Dividends and Share
Repurchases
In Q1 FY21, the company returned a total of $203 million to
shareholders through dividends of $141 million and share
repurchases of $62 million.
Today, the company announced its board of directors has
authorized the payment of a regular quarterly cash dividend of
$0.55 per common share. The quarterly dividend is payable on July
2, 2020, to shareholders of record as of the close of business on
June 11, 2020.
As previously communicated, the company suspended all share
repurchases as of March 21, 2020.
Conference Call
Best Buy is scheduled to conduct an earnings conference call at
8:00 a.m. Eastern Time (7:00 a.m. Central Time) on May 21, 2020. A
webcast of the call is expected to be available at
www.investors.bestbuy.com, both live and after the call.
Notes:
(1) Comparable sales include revenue from all stores that were
temporarily closed or operating an enhanced curbside-only operating
model in Q1 FY21 as a result of COVID-19. The method of calculating
comparable sales varies across the retail industry, including the
treatment of store closures as a result of COVID-19. As a result,
our method of calculating comparable sales may not be the same as
other retailers’ methods. For additional information on comparable
sales, please see our most recent Annual Report on Form 10-K, and
any subsequent Quarterly Reports on Form 10-Q, filed with the
Securities and Exchange Commission, and available at
www.investors.bestbuy.com.
(2) The 81% sales retention is based on the company’s interim
period data, which the company uses to monitor revenue performance
on a daily or weekly interval. The sales retention estimate
represents the year-over-year change compared to the same period in
the prior fiscal year. Retention is based on absolute sales dollar
changes and is not presented in accordance with the company’s
comparable sales definition. The company’s interim sales data is
unaudited and excludes quarter-end revenue accounting adjustments.
Other companies may track interim period sales data using different
methods and systems, and therefore, the estimated data presented
here may not be comparable to any data released by other
companies.
Forward-Looking and Cautionary Statements:
This release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995 as
contained in Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934 that reflect
management’s current views and estimates regarding future market
conditions, company performance and financial results, operational
investments, business prospects, new strategies, the competitive
environment and other events. You can identify these statements by
the fact that they use words such as “anticipate,” “believe,”
“assume,” “estimate,” “expect,” “intend,” “foresee,” “project,”
“guidance,” “plan,” “outlook,” and other words and terms of similar
meaning. These statements involve a number of risks and
uncertainties that could cause actual results to differ materially
from the potential results discussed in the forward-looking
statements. Among the factors that could cause actual results and
outcomes to differ materially from those contained in such
forward-looking statements are the following: the duration and
scope of the COVID-19 pandemic and the impact on demand for our
products and services, levels of consumer confidence and our supply
chain; the effects and duration of steps we take in response to the
pandemic, including the implementation of our interim and evolving
operating model; actions governments, businesses and individuals
take in response to the pandemic and their impact on economic
activity and consumer spending; the pace of recovery when the
COVID-19 pandemic subsides; general economic uncertainty in key
global markets and a worsening of global economic conditions or low
levels of economic growth; competition (including from
multi-channel retailers, e-commerce business, technology service
providers, traditional store-based retailers, vendors and mobile
network carriers), our expansion strategies, our focus on services
as a strategic priority, our reliance on key vendors and mobile
network carriers, our ability to attract and retain qualified
employees, changes in market compensation rates, risks arising from
statutory, regulatory and legal developments, macroeconomic
pressures in the markets in which we operate, failure to
effectively manage our costs, our reliance on our information
technology systems, our ability to prevent or effectively respond
to a privacy or security breach, our ability to effectively manage
strategic ventures, alliances or acquisitions, our dependence on
cash flows and net earnings generated during the fourth fiscal
quarter, susceptibility of our products to technological
advancements, product life cycle preferences and changes in
consumer preferences, economic or regulatory developments that
might affect our ability to provide attractive promotional
financing, interruptions and other supply chain issues,
catastrophic events, health crises, pandemics, our ability to
maintain positive brand perception and recognition, product safety
and quality concerns, changes to labor or employment laws or
regulations, our ability to effectively manage our real estate
portfolio, constraints in the capital markets or our vendor credit
terms, changes in our credit ratings, any material disruption in
our relationship with or the services of third-party vendors, risks
related to our exclusive brand products and risks associated with
vendors that source products outside of the U.S., including trade
restrictions or changes in the costs of imports (including existing
or new tariffs or duties and changes in the amount of any such
tariffs or duties) and risks arising from our international
activities.
A further list and description of these risks, uncertainties and
other matters can be found in the company’s annual report and other
reports filed from time to time with the Securities and Exchange
Commission (“SEC”), including, but not limited to, Best Buy’s
Annual Report on Form 10-K filed with the SEC on March 23, 2020.
Best Buy cautions that the foregoing list of important factors is
not complete, and any forward-looking statements speak only as of
the date they are made, and Best Buy assumes no obligation to
update any forward-looking statement that it may make.
BEST BUY CO., INC.
CONDENSED CONSOLIDATED
STATEMENTS OF EARNINGS
($ and shares in millions, except
per share amounts)
(Unaudited and subject to
reclassification)
Three Months Ended
May 2, 2020
May 4, 2019
Revenue
$
8,562
$
9,142
Cost of sales
6,597
6,973
Gross profit
1,965
2,169
Gross profit %
23.0
%
23.7
%
Selling, general and administrative
expenses
1,735
1,835
SG&A %
20.3
%
20.1
%
Restructuring charges
1
-
Operating income
229
334
Operating income %
2.7
%
3.7
%
Other income (expense)
Investment income and other
6
14
Interest expense
(17)
(18)
Earnings before income tax expense
218
330
Income tax expense
59
65
Effective tax rate
27.4
%
19.8
%
Net earnings
$
159
$
265
Basic earnings per share
$
0.61
$
0.99
Diluted earnings per share
$
0.61
$
0.98
Weighted-average common shares
outstanding
Basic
258.3
267.6
Diluted
260.4
271.5
BEST BUY CO., INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
($ in millions)
(Unaudited and subject to
reclassification)
May 2, 2020
May 4, 2019
Assets
Current assets
Cash and cash equivalents
$
3,919
$
1,561
Receivables, net
749
833
Merchandise inventories
3,993
5,195
Other current assets
335
425
Total current assets
8,996
8,014
Property and equipment, net
2,291
2,334
Operating lease assets
2,631
2,708
Goodwill
986
915
Other assets
701
579
Total assets
$
15,605
$
14,550
Liabilities and equity
Current liabilities
Accounts payable
$
4,428
$
4,718
Unredeemed gift card liabilities
257
265
Deferred revenue
531
409
Accrued compensation and related
expenses
213
275
Accrued liabilities
769
851
Short-term debt
1,250
-
Current portion of operating lease
liabilities
683
639
Current portion of long-term debt
673
14
Total current liabilities
8,804
7,171
Long-term operating lease liabilities
2,076
2,173
Long-term liabilities
694
659
Long-term debt
621
1,193
Equity
3,410
3,354
Total liabilities and equity
$
15,605
$
14,550
BEST BUY CO., INC
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
($ in millions)
(Unaudited and subject to
reclassification)
Three Months Ended
May 2, 2020
May 4, 2019
Operating activities
Net earnings
$
159
$
265
Adjustments to reconcile net earnings to
total cash provided by operating activities:
Depreciation and amortization
207
200
Stock-based compensation
15
36
Deferred income taxes
15
13
Other, net
6
1
Changes in operating assets and
liabilities:
Receivables
383
182
Merchandise inventories
1,136
207
Other assets
(12)
(14)
Accounts payable
(816)
(519)
Income taxes
31
10
Other liabilities
(297)
(379)
Total cash provided by operating
activities
827
2
Investing activities
Additions to property and equipment
(178)
(193)
Other, net
(1)
1
Total cash used in investing
activities
(179)
(192)
Financing activities
Repurchase of common stock
(62)
(98)
Dividends paid
(141)
(134)
Borrowings of debt
1,250
-
Other, net
2
6
Total cash provided by (used in) financing
activities
1,049
(226)
Effect of exchange rate changes on
cash
(18)
(1)
Increase (decrease) in cash, cash
equivalents and restricted cash
1,679
(417)
Cash, cash equivalents and restricted
cash at beginning of period
2,355
2,184
Cash, cash equivalents and restricted
cash at end of period
$
4,034
$
1,767
BEST BUY CO., INC.
SEGMENT INFORMATION
($ in millions)
(Unaudited and subject to
reclassification)
Three Months Ended
Domestic Segment Results
May 2, 2020
May 4, 2019
Revenue
$
7,915
$
8,481
Comparable sales % change
(5.7)
%
1.3
%
Comparable online sales % change
155.4
%
14.5
%
Gross profit
$
1,821
$
2,009
Gross profit as a % of revenue
23.0
%
23.7
%
SG&A
$
1,579
$
1,677
SG&A as a % of revenue
19.9
%
19.8
%
Operating income
$
241
$
332
Operating income as a % of revenue
3.0
%
3.9
%
Domestic Segment Non-GAAP
Results1
Gross profit
$
1,821
$
2,009
Gross profit as a % of revenue
23.0
%
23.7
%
SG&A
$
1,559
$
1,660
SG&A as a % of revenue
19.7
%
19.6
%
Operating income
$
262
$
349
Operating income as a % of revenue
3.3
%
4.1
%
Three Months Ended
International Segment Results
May 2, 2020
May 4, 2019
Revenue
$
647
$
661
Comparable sales % change
0.2
%
(1.2)
%
Gross profit
$
144
$
160
Gross profit as a % of revenue
22.3
%
24.2
%
SG&A
$
156
$
158
SG&A as a % of revenue
24.1
%
23.9
%
Operating income (loss)
$
(12)
$
2
Operating income (loss) as a % of
revenue
(1.9)
%
0.3
%
International Segment Non-GAAP
Results1
Gross profit
$
144
$
160
Gross profit as a % of revenue
22.3
%
24.2
%
SG&A
$
156
$
158
SG&A as a % of revenue
24.1
%
23.9
%
Operating income (loss)
$
(12)
$
2
Operating income (loss) as a % of
revenue
(1.9)
%
0.3
%
(1)
For GAAP to non-GAAP reconciliations,
please refer to the attached supporting schedule titled
Reconciliation of Non-GAAP Financial Measures.
BEST BUY CO., INC.
REVENUE CATEGORY
SUMMARY
(Unaudited and subject to
reclassification)
Revenue Mix
Comparable Sales
Three Months Ended
Three Months Ended
Domestic Segment
May 2, 2020
May 4, 2019
May 2, 2020
May 4, 2019
Computing and Mobile Phones
48
%
46
%
0.0
%
1.0
%
Consumer Electronics
28
%
31
%
(15.7)
%
0.9
%
Appliances
12
%
11
%
(2.0)
%
10.5
%
Entertainment
7
%
6
%
9.5
%
(12.7)
%
Services
5
%
6
%
(16.1)
%
6.8
%
Other
-
%
-
%
N/A
N/A
Total
100
%
100
%
(5.7)
%
1.3
%
Revenue Mix
Comparable Sales
Three Months Ended
Three Months Ended
International Segment
May 2, 2020
May 4, 2019
May 2, 2020
May 4, 2019
Computing and Mobile Phones
48
%
46
%
4.6
%
(4.0)
%
Consumer Electronics
27
%
31
%
(12.7)
%
2.5
%
Appliances
9
%
9
%
0.1
%
(2.0)
%
Entertainment
9
%
5
%
58.0
%
(14.0)
%
Services
5
%
7
%
(19.5)
%
13.4
%
Other
2
%
2
%
1.1
%
15.3
%
Total
100
%
100
%
0.2
%
(1.2)
%
BEST BUY CO., INC. RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES ($ in millions, except per share
amounts) (Unaudited and subject to reclassification)
The following information provides reconciliations of the most
comparable financial measures presented in accordance with
accounting principles generally accepted in the U.S. (GAAP
financial measures) to presented non-GAAP financial measures. The
company believes that non-GAAP financial measures, when reviewed in
conjunction with GAAP financial measures, can provide more
information to assist investors in evaluating current period
performance and in assessing future performance. For these reasons,
internal management reporting also includes non-GAAP financial
measures. Generally, presented non-GAAP financial measures include
adjustments for items such as restructuring charges, goodwill
impairments, gains and losses on investments, intangible asset
amortization, certain acquisition-related costs and the tax effect
of all such items. In addition, certain other items may be excluded
from non-GAAP financial measures when the company believes this
provides greater clarity to management and investors. These
non-GAAP financial measures should be considered in addition to,
and not superior to or as a substitute for, the GAAP financial
measures presented in this earnings release and the company’s
financial statements and other publicly filed reports. Non-GAAP
financial measures as presented herein may not be comparable to
similarly titled measures used by other companies.
Three Months Ended
Three Months Ended
May 2, 2020
May 4, 2019
Domestic
International
Consolidated
Domestic
International
Consolidated
SG&A
$
1,579
$
156
$
1,735
$
1,677
$
158
$
1,835
% of revenue
19.9
%
24.1
%
20.3
%
19.8
%
23.9
%
20.1
%
Intangible asset amortization1
(20)
-
(20)
(17)
-
(17)
Non-GAAP SG&A
$
1,559
$
156
$
1,715
$
1,660
$
158
$
1,818
% of revenue
19.7
%
24.1
%
20.0
%
19.6
%
23.9
%
19.9
%
Operating income (loss)
$
241
$
(12)
$
229
$
332
$
2
$
334
% of revenue
3.0
%
(1.9)
%
2.7
%
3.9
%
0.3
%
3.7
%
Intangible asset amortization1
20
-
20
17
-
17
Restructuring charges2
1
-
1
-
-
-
Non-GAAP operating income (loss)
$
262
$
(12)
$
250
$
349
$
2
$
351
% of revenue
3.3
%
(1.9)
%
2.9
%
4.1
%
0.3
%
3.8
%
Effective tax rate
27.4
%
19.8
%
Intangible asset amortization
(0.2)
%
0.3
%
Non-GAAP effective tax rate
27.2
%
20.1
%
Three Months Ended
Three Months Ended
May 2, 2020
May 4, 2019
Pretax Earnings
Net of Tax3
Per Share
Pretax Earnings
Net of Tax3
Per Share
GAAP diluted EPS
$
0.61
$
0.98
Intangible asset amortization 1
$
20
$
15
0.06
$
17
$
13
0.04
Restructuring charges 2
1
1
-
-
-
-
Non-GAAP diluted EPS
$
0.67
$
1.02
(1)
Represents the non-cash amortization of
definite-lived intangible assets associated with acquisitions,
including customer relationships, tradenames and developed
technology.
(2)
Represents adjustments associated with
U.S. retail operating model changes.
(3)
The non-GAAP adjustments relate primarily
to adjustments in the U.S. As such, the income tax charge is
calculated using the statutory tax rate of 24.5% for all periods
presented.
Return on Assets and
Non-GAAP Return on Investment
The tables below provide calculations of return on assets
("ROA") (GAAP financial measure) and non-GAAP return on investment
(“ROI”) (non-GAAP financial measure) for the periods presented. The
company believes ROA is the most directly comparable financial
measure to ROI. Non-GAAP ROI is defined as non-GAAP adjusted
operating income after tax divided by average invested operating
assets. All periods presented below apply this methodology
consistently. The company believes non-GAAP ROI is a meaningful
metric for investors to evaluate capital efficiency because it
measures how key assets are deployed by adjusting operating income
and total assets for the items noted below. This method of
determining non-GAAP ROI may differ from other companies' methods
and therefore may not be comparable to those used by other
companies.
Return on Assets ("ROA")
May 2, 20201
May 4, 20191
Net earnings
$
1,435
$
1,521
Total assets
16,125
13,881
ROA
8.9
%
11.0
%
Non-GAAP Return on Investment
("ROI")
May 2, 20201
May 4, 20191
Numerator
Operating income - total operations
$
1,904
$
1,969
Add: Non-GAAP operating income
adjustments2
120
68
Add: Operating lease interest3
112
113
Less: Income taxes4
(523)
(527)
Add: Depreciation
744
755
Add: Operating lease amortization5
667
649
Adjusted operating income after
tax
$
3,024
$
3,027
Denominator
Total assets
$
16,125
$
13,881
Less: Excess cash6
(1,171)
(1,153)
Add: Capitalized operating lease
assets7
-
2,268
Add: Accumulated depreciation and
amortization8
6,852
6,518
Less: Adjusted current liabilities9
(7,942)
(8,028)
Average invested operating
assets
$
13,864
$
13,486
Non-GAAP ROI
21.8
%
22.4
%
(1)
Income statement accounts represent the
activity for the trailing 12 months ended as of each of the balance
sheet dates. Balance sheet accounts represent the average account
balances for the trailing 12 months ended as of each of the balance
sheet dates.
(2)
Non-GAAP operating income adjustments
include continuing operations adjustments for intangible asset
amortization, acquisition-related transaction costs and
restructuring charges. Additional details regarding these
adjustments are included in the Reconciliation of Non-GAAP
Financial Measures schedule within the company's quarterly earnings
releases.
(3)
Operating lease interest represents the
add-back to operating income to approximate the total interest
expense that the company would incur if its operating leases were
owned and financed by debt. For periods prior to FY20, the add-back
is approximated by using a multiple of 15% of total rent expense.
For periods beginning on or after FY20, the add-back is
approximated by multiplying average operating lease assets by 4%,
which approximates the interest rate on the company’s operating
lease liabilities.
(4)
Income taxes are approximated by using a
blended statutory rate at the Enterprise level based on statutory
rates from the countries in which the company does business, which
primarily consists of the U.S. with a statutory rate of 24.5% for
the periods presented.
(5)
Operating lease amortization represents
operating lease cost less operating lease interest. Operating lease
cost includes short-term leases, which are immaterial, and excludes
variable lease costs as these costs are not included in the
operating lease asset balance.
(6)
Excess cash represents the amount of cash,
cash equivalents and short-term investments greater than $1
billion, which approximates the amount of cash the company believes
is necessary to run the business and may fluctuate over time.
(7)
Capitalized operating lease assets
represent the estimated net assets that the company would record if
the company's operating leases were owned. For periods prior to
FY20, the asset is approximated by using a multiple of four times
total rent expense. For periods beginning on or after FY20,
capitalized operating lease assets are included within Total assets
and therefore no adjustment is necessary.
(8)
Accumulated depreciation and amortization
represents accumulated depreciation related to property and
equipment and accumulated amortization related to definite-lived
intangible assets.
(9)
Adjusted current liabilities represent
total current liabilities less short-term debt and the current
portions of operating lease liabilities and long-term debt.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200521005147/en/
Investor Contact: Mollie O'Brien
mollie.obrien@bestbuy.com
Media Contact: Carly Charlson
carly.charlson@bestbuy.com
Best Buy (NYSE:BBY)
Historical Stock Chart
From Mar 2024 to Apr 2024
Best Buy (NYSE:BBY)
Historical Stock Chart
From Apr 2023 to Apr 2024