Best Buy Second-Quarter Earnings From Continuing Operations Increase 75% To 42 Cents per Diluted Share.Business Editors MINNEAPOLIS--(BUSINESS WIRE)--Sept. 17, 2003 Company raises its guidance for fiscal 2004 diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the to a range of $2.35 to $2.40, compared with $1.91 in fiscal 2003 and analysts' consensus estimate of $2.38
Second-Quarter Performance Summary - Continuing Operations
(U.S. dollars in millions, except per share amounts)
----------------------------------------------------------------------
Aug. 30, 2003 Aug. 31, 2002
Revenue $5,396 $4,624
----------------------------------------------------------------------
Comparable store sales % gain(1) 7.5% 2.6%
----------------------------------------------------------------------
Gross profit as % of revenue 25.4% 24.9%
----------------------------------------------------------------------
SG&A as % of revenue 21.2% 22.2%
----------------------------------------------------------------------
Operating income as % of revenue 4.2% 2.8%
----------------------------------------------------------------------
Diluted EPS - continuing operations $0.42 $0.24
----------------------------------------------------------------------
Diluted EPS $0.42 $0.19
----------------------------------------------------------------------
Note: All periods presented reflect the classification of Musicland's
financial results as discontinued operations.
(1) Comprised of revenue at stores and Internet sites operating for at
least 14 full months, as well as remodeled and expanded locations.
Relocated stores 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 acquisition. The calculation of the comparable store
sales percentage gain excludes the impact of fluctuations in foreign
currency exchange rates.
Best Buy Co., Inc. (NYSE NYSE See: New York Stock Exchange :BBY BBY Best Buy (stock symbol) BBY Before Battle of Yavin (Star Wars) BBY BeBeyond (Chinese online community) ) today reported earnings from continuing operations of $140 million, or 42 cents per diluted share, for the quarter ended Aug. 30, 2003, an increase of more than 75 percent compared with $79 million, or 24 cents per diluted share, for the quarter ended Aug. 31, 2002. Based on recent performance trends, the Company raised its guidance for earnings from continuing operations for fiscal 2004 to a range of $2.35 to $2.40 per diluted share, compared with $1.91 per diluted share in fiscal 2003 and a current analysts' consensus estimate of $2.38 per share. "I am very pleased with the outstanding earnings growth we achieved in the second quarter. The credit goes to our employees, who worked hard to improve our gross profit rate while boosting efficiency and productivity. In addition, our team translated increased consumer confidence as well as tax refunds Tax refund Money back from the government when too much tax has been paid or withheld from a salary. into strong growth in comparable store sales for the quarter, particularly during the back-to-school season. Their superior execution drove our market share gains in the quarter," said Brad Anderson Anderson, river, Canada Anderson, river, c.465 mi (750 km) long, rising in several lakes in N central Northwest Territories, Canada. It meanders north and west before receiving the Carnwath River and flowing north to Liverpool Bay, an arm of the Arctic , vice chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "September September: see month. has started off with a comparable store sales gain in the double digits Double Digits was a pricing game on the American television game show, The Price Is Right. Played from April 20, 1973 through May 18, 1973's show, it was played for a car and used small prizes. , similar to that of August. While it is unlikely that the recent level of comparable store sales growth is sustainable for the duration of the year, we hope to extend our market-share gains in the second half by continuing to deliver industry-leading comparable store sales gains. We also expect to translate (1) To change one language into another; for example, assemblers, compilers and interpreters translate source language into machine language. (2) In computer graphics, to move an image on screen without rotating it. those market-share gains into profit growth through our close focus on margins and expenses during the holiday selling season." Revenue and Productivity Gains Drive Expense Leverage Revenue from continuing operations for the second quarter of fiscal 2004 increased 17 percent to $5.4 billion, driven by a comparable store sales gain of 7.5 percent and the addition of 74 new stores in the past 12 months. The gross profit rate for continuing operations rose to 25.4 percent of revenue in the second quarter, an increase of 0.5 percent of revenue compared with the second quarter of fiscal 2003. The improvement in the gross profit rate was driven by a 30-percent comparable store sales gain in digital products, which generally have a higher gross profit rate than analog products; sharper promotional strategies; and more effective management of product life cycles. The SG&A expense rate for continuing operations was 21.2 percent of revenue for the second quarter, compared with 22.2 percent of revenue for the second quarter of fiscal 2003. The large improvement in the SG&A expense rate was driven by leverage achieved on the 7.5 percent comparable store sales gain and new stores added in the past 12 months. The SG&A rate also benefited from lower corporate and field office headcount head count or head·count n. 1. The act of counting people in a particular group. 2. The number of people counted in this way. Noun 1. as well as other administrative and overhead cost reductions stemming stemming - stemmer from the Company's efficiency initiatives. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. from continuing operations rose to 4.2 percent of revenue for the second quarter of fiscal 2004, compared with 2.8 percent of revenue for the second quarter of fiscal 2003. Net interest expense was $3 million, comparable to the $2 million net interest expense for the same quarter last year. The Company's effective tax rate in the second quarter of fiscal 2004 was 38.3 percent, slightly lower than the effective rate in the second quarter of fiscal 2003, primarily due to a lower effective state income-tax rate.
Year-To-Date Performance Summary - Continuing Operations
(U.S. dollars in millions, except per share amounts)
----------------------------------------------------------------------
Aug. 30, 2003 Aug. 31, 2002
----------------------------------------------------------------------
Revenue $10,064 $8,826
----------------------------------------------------------------------
Comparable store sales % gain(1) 5.0% 4.4%
----------------------------------------------------------------------
Gross profit as % of revenue 25.4% 25.3%
----------------------------------------------------------------------
SG&A as % of revenue 22.0% 22.4%
----------------------------------------------------------------------
Operating income as % of revenue 3.4% 2.9%
----------------------------------------------------------------------
Diluted EPS - continuing operations $0.64 $0.48
----------------------------------------------------------------------
Diluted earnings (loss) per share $0.35 ($0.83)
----------------------------------------------------------------------
Note: All periods presented reflect the classification of Musicland's
financial results as discontinued operations.
(1) Comprised of revenue at stores and Internet sites operating for at
least 14 full months, as well as remodeled and expanded locations.
Relocated stores 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 acquisition. The calculation of the comparable store
sales percentage gain excludes the impact of fluctuations in foreign
currency exchange rates.
For the first half of fiscal 2004, the Company reported earnings from continuing operations of $209 million, or 64 cents per diluted share, a 33-percent increase compared with $158 million, or 48 cents per diluted share, for the first half of fiscal 2003. Revenue increased 14 percent to $10.1 billion for the six months ended Aug. 30, 2003, including a comparable store sales gain of 5.0 percent. The operating income rate improved to 3.4 percent of revenue in the first half of fiscal 2004, compared to a rate of 2.9 percent in the first half of fiscal 2003, primarily as a result of expense reductions. Company Raises Guidance For Second Half "The second-quarter performance demonstrates the earnings power of Best Buy when we achieve comparable stores sales gains above 3 percent," said Darren Jackson Darren Jackson (born 25 July 1966 in Edinburgh) is a former Scottish professional footballer. Career Jackson played for Meadowbank Thistle, Newcastle United, Dundee United, Hibernian, Celtic, Coventry City, Hearts, Livingston, St. Johnstone and Clydebank. , executive vice president and CFO See Chief Financial Officer. . "We relentlessly continue to pursue reductions in the SG&A rate through increased efficiency." He added, "The Company currently expects comparable store sales gains in the range of 6 to 8 percent for the third and fourth fiscal quarters, as the benefits of tax rebates tax rebate n → devolución f de impuestos; reembolso fiscal tax rebate n → ristourne f d'impôt tax rebate and strong back-to-school sales subside sub·side intr.v. sub·sid·ed, sub·sid·ing, sub·sides 1. To sink to a lower or normal level. 2. To sink or settle down, as into a sofa. 3. To sink to the bottom, as a sediment. 4. . We also expect the gross profit rate in the second half to increase by 0.1 percent to 0.2 percent of revenue, compared with the prior year's period. Our gross profit rate will continue to benefit from the gains we achieved in the first half of the year through improved assortments and promotional strategies as well as better management of product life cycles. However, the resulting improvement in the gross profit rate is expected to be partially offset by the impact of our new Reward Zone customer loyalty program, which was launched in July July: see month. and has been met with a more enthusiastic response from our customers than we anticipated. Based on test results, we expect Reward Zone to drive incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. comparable store sales and total gross profit dollars in the future. In accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting , we establish a liability and reduce revenue as customer loyalty program rewards are earned. Because we did not yet have sufficient history to estimate the amount of customer loyalty program rewards that will be redeemed re·deem tr.v. re·deemed, re·deem·ing, re·deems 1. To recover ownership of by paying a specified sum. 2. To pay off (a promissory note, for example). 3. , we recorded the full amount of the rewards earned as a reduction of our fiscal second-quarter revenue. Second-half revenue and gross profit rates are expected to continue to reflect rewards earned, adjusted for actual redemption The liberation of an estate in real property from a mortgage. Redemption is the process by which land that has been mortgaged or pledged is bought back or reclaimed. It is accomplished through a payment of the debt owed or a fulfillment of the other conditions. experience." Jackson Jackson. 1 City (1990 pop. 37,446), seat of Jackson co., S Mich., on the Grand River; inc. 1857. It is an industrial and commercial center in a farm region. added, "We expect the SG&A rate to improve in the third and fourth quarters due to a strong comparable store sales gain and continued benefits from our efficient enterprise initiative. However, the year-over-year improvement in the SG&A rate will be smaller than what we saw in the second quarter because the Company will anniversary many expense-saving initiatives launched in the second half of fiscal 2003. We also are planning for higher advertising spending in the second half than in the prior year's period. Finally, we anticipate higher expenses associated with our customer centricity Customer centricity refers to the orientation of a company to the needs and behaviours of its customers, rather than internal drivers (such as the quest for short term profit). initiative as we invest in the transformation of additional stores, which will bring us to a total of 32 pilots by the holiday selling season. We anticipate that the SG&A rate will improve by 0.1 percent to 0.2 percent of revenue for the second half of the year, compared to the second half of fiscal 2003. "In light of all these factors," the CFO said, "we are forecasting diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of from continuing operations of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 33 cents to 38 cents for the third quarter, compared with diluted earnings per share from continuing operations of 27 cents in the third quarter of fiscal 2003. For the fiscal year, we estimate a range of earnings from continuing operations of $2.35 to $2.40 per diluted share, compared with $1.91 in fiscal 2003." Domestic and International Results Improve
Domestic Second-Quarter Performance Summary(1)
(U.S. dollars in millions)
----------------------------------------------------------------------
Aug. 30, 2003 Aug. 31, 2002
----------------------------------------------------------------------
Revenue $4,910 $4,286
----------------------------------------------------------------------
Comparable store sales % gain(2) 7.8% 2.6%
----------------------------------------------------------------------
Gross profit as % of revenue 25.6% 24.9%
----------------------------------------------------------------------
SG&A as % of revenue 20.9% 21.9%
----------------------------------------------------------------------
Operating income $230 $130
----------------------------------------------------------------------
Operating income as % of revenue 4.7% 3.0%
----------------------------------------------------------------------
(1) The domestic segment is comprised of U.S. Best Buy and Magnolia
Audio Video operations.
(2) Comprised of revenue at stores and Internet sites operating for at
least 14 full months, as well as remodeled and expanded locations.
Relocated stores are excluded from the comparable store sales
calculation until at least 14 full months after reopening. The
calculation of the comparable store sales percentage gain excludes
Musicland revenue, which is included in discontinued operations.
Revenue from the Company's domestic segment grew 15 percent during the second quarter to $4.9 billion, due to a comparable store sales gain of 7.8 percent as well as the opening of 51 new U.S. Best Buy stores and four new Magnolia Audio Video Magnolia Audio Video is a specialty consumer electronics retailer in the United States. It currently operates 13 standalone stores throughout Washington, Oregon, and California. stores in the last 12 months. The gross profit rate at the domestic segment increased by 0.7 percent of revenue during the fiscal second quarter compared with the fiscal second quarter of the prior year, reflecting a more profitable revenue mix due to increased revenue from higher-margin digital products, particularly digital televisions, and more effective management of assortments, promotions and product lifecycles Product lifecycle or product life cycle is the course of a product's sales and profits over time. The five stages of each product lifecycle are product development, introduction, growth, maturity and decline. . The gross profit rate gain was partially offset by a significant increase in sales of computers, which generally carry a lower margin. The SG&A expense rate for the domestic segment decreased by 1.0 percent of revenue, to 20.9 percent; the improvement was primarily related to the leverage associated with a high comparable store sales gain and administrative expense reductions. The domestic segment's operating income rate increased by 1.7 percent of revenue for the quarter, to 4.7 percent of revenue.
International Second-Quarter Performance Summary(1)
(U.S. dollars in millions)
----------------------------------------------------------------------
Aug. 30, 2003 Aug. 31, 2002
----------------------------------------------------------------------
Revenue $486 $338
----------------------------------------------------------------------
Comparable store sales % gain(2) 4.1% 6.9%
----------------------------------------------------------------------
Gross profit as % of revenue 24.1% 25.3%
----------------------------------------------------------------------
SG&A as % of revenue 24.4% 25.6%
----------------------------------------------------------------------
Operating loss ($1) ($1)
----------------------------------------------------------------------
Operating loss as % of revenue (0.3%) (0.3%)
----------------------------------------------------------------------
(1) The international segment is comprised of Future Shop and Best Buy
operations in Canada.
(2) Comprised of revenue at stores and Internet sites operating for
at least 14 full months, as well as remodeled and expanded locations.
Relocated stores 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 acquisition. The calculation of the comparable store
sales percentage gain excludes the impact of fluctuations in foreign
currency exchange rates.
The comparable store sales gain in the international segment for the second quarter was 4.1 percent, driven by strength in sales of digital TVs, digital cameras and home office products. Total revenue in the international segment rose 44 percent to $486 million, due to the comparable stores gain, the addition of six Future Shop stores and 13 Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. Best Buy stores in the past 12 months, and a stronger Canadian dollar Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents that accounted for approximately one-third of the total revenue gain in the quarter. The international segment's gross profit rate declined by 1.2 percent of revenue in the second quarter, primarily due to increases in promotional activity and a higher proportion of revenue from home office products, particularly during the back-to-school season. The SG&A expense rate declined by 1.2 percent of revenue as a result of initiatives to improve corporate efficiency and the leverage associated with a larger base of stores. The international segment's operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. rate remained flat as a percent of revenue, contributing to a second-quarter operating loss of $1 million, consistent with the second quarter of last year and in line with management's expectations. The international segment generally incurs a loss in the second fiscal quarter and derives a higher proportion of its annual earnings in the fourth quarter. Impact of Discontinued Operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. Is Nominal Trifling, token, or slight; not real or substantial; in name only. Nominal capital, for example, refers to extremely small or negligible funds, the use of which in a particular business is incidental. NOMINAL. Relating to a name. In Quarter As previously reported, the Company sold its interest in The Musicland
Musicland is an entertainment company which runs Sam Goody and Suncoast Motion Picture Company and ran the former Media Play Superstore Chain. Group, Inc. - a wholly owned, indirect subsidiary - in the fiscal second quarter. In the fiscal first quarter the Company recorded an impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. loss (which was primarily non-cash) related to the sale of Musicland of approximately $70 million, net of tax, or approximately 22 cents per diluted share. Adjustments related to the sale were included in second-quarter results. Musicland's operations earlier had been classified as discontinued operations. The Company's second-quarter loss from discontinued operations was $1 million, net of tax, including a $5 million after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. operating loss. The Company continues to provide Musicland with transitional services in accordance with the sale agreement. The Company plans to conduct a conference call for analysts, institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. and news media at 10 a.m. eastern time today. Individuals may access the live call via the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the on the Company's Web site at www.BestBuy.com by clicking on the "For Our Investors" link. Following the live event, the call will be posted on the Audio Archive (1) A file that contains one or more compressed files. Most archive formats are also capable of storing folders in order to reconstruct the file/folder relationship when decompressed. See archive formats. page of Best Buy's Web site and may be accessed at any time. Best Buy's quarterly financial results and news releases can be found on the Internet at the Company's Web site, www.BestBuy.com, or accessed via Business Wire's Web site at www.businesswire.com. The Company is expected to announce its third-quarter revenue on Dec. 4, 2003, and its third-quarter earnings on Dec. 17, 2003. Statements made in this news release, other than those concerning historical financial information, should be considered forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. and subject to various risks and uncertainties. Such forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. are based on management's beliefs and assumptions regarding information currently available, and are made pursuant to the "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of Section 27A of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , and Section 21E of the Securities Exchange Act of 1934, as amended. The Company's actual results could differ materially from those expressed in the forward-looking statements. Factors that could cause results to vary include, among others, those expressed in the Company's filings with the Securities and Exchange Commission. The Company has no obligation to publicly update or revise any of the forward-looking statements that may be in this news release. About Best Buy Co., Inc. Minneapolis-based Best Buy Co., Inc. is North America's leading specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. retailer of consumer electronics, personal computers, entertainment software and appliances. The Company's subsidiaries operate retail stores and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. Web sites under the names: Best Buy (BestBuy.com), Future Shop (FutureShop.ca), Geek Squad The Geek Squad is a subsidiary of the Best Buy Company and is based in Richfield, Minnesota [1]. Originally founded in 1994 by Robert Stephens, it offers various computer-related services and accessories for residential and commercial clients. (GeekSquad.com), and Magnolia Audio Video (MagnoliaAV.com). The Company's subsidiaries reach consumers through more than 700 retail stores in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of .
BEST BUY CO., INC.
CONSOLIDATED STATEMENTS OF EARNINGS
($ in millions, except per share amounts)
Three Months Ended Six Months Ended
(Unaudited) Aug. 30, Aug. 31, Aug. 30, Aug. 31,
2003 2002 2003 2002
-------- --------- -------- --------
Revenue $ 5,396 $ 4,624 $10,064 $ 8,826
Cost of goods sold 4,024 3,471 7,507 6,593
-------- --------- -------- --------
Gross profit 1,372 1,153 2,557 2,233
Gross profit % 25.4% 24.9% 25.4% 25.3%
Selling, general and
administrative expenses 1,143 1,024 2,214 1,975
SG&A % 21.2% 22.2% 22.0% 22.4%
-------- --------- -------- --------
Operating income 229 129 343 258
Net interest expense 3 2 5 1
-------- --------- -------- --------
Earnings from continuing
operations before income tax
expense 226 127 338 257
Income tax expense 86 48 129 99
Effective tax rate 38.3% 38.7% 38.3% 38.7%
-------- --------- -------- --------
Earnings from continuing
operations 140 79 209 158
Loss from discontinued
operations, net of tax (5) (17) (29) (347)
Gain (loss) on disposal of
discontinued operations, net of
tax 4 -- (66) --
Cumulative effect of change in
accounting principle for
goodwill, net of tax -- -- -- (40)
Cumulative effect of change in
accounting principle for vendor
allowances, net of tax -- -- -- (42)
-------- --------- -------- --------
Net earnings (loss) $ 139 $ 62 $ 114 $ (271)
======== ========= ======== ========
Basic earnings (loss) per share:
Continuing operations $ 0.43 $ 0.24 $ 0.65 $ 0.49
Discontinued operations (0.01) (0.05) (0.09) (1.08)
Gain (loss) on disposal of
discontinued operations 0.01 -- (0.20) --
Cumulative effect of accounting
changes -- -- -- (0.25)
-------- --------- -------- --------
Basic earnings (loss) per share $ 0.43 $ 0.19 $ 0.35 $ (0.85)
======== ========= ======== ========
Diluted earnings (loss) per
share:
Continuing operations $ 0.42 $ 0.24 $ 0.64 $ 0.48
Discontinued operations (0.01) (0.05) (0.09) (1.07)
Gain (loss) on disposal of
discontinued operations 0.01 -- (0.20) --
Cumulative effect of accounting
changes -- -- -- (0.25)
-------- --------- -------- --------
Diluted earnings (loss) per
share $ 0.42 $ 0.19 $ 0.35 $ (0.83)
======== ========= ======== ========
Basic weighted average common
shares outstanding (in millions) 322.9 321.3 322.4 320.7
Diluted weighted average common
shares outstanding (in millions) 327.8 324.5 326.5 325.4
Note: This presentation reflects: (a) the classification of Musicland
as discontinued operations; and (b) the adoption of the accounting
principle established in EITF Issue No. 02-16, Accounting by a
Reseller for Cash Consideration Received from a Vendor.
BEST BUY CO., INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
($ in millions)
(Unaudited)
Subject to Reclassification
Aug. 30, Aug. 31,
2003 2002
ASSETS
Current assets
Cash & cash equivalents $1,734 $1,114
Receivables 302 235
Recoverable costs from developed properties 4 58
Merchandise inventories 2,641 2,133
Other current assets 205 125
Current assets of discontinued operations -- 459
-------- --------
Total current assets 4,886 4,124
Net property & equipment 2,229 1,917
Goodwill, net 459 410
Intangible assets 36 --
Other assets 120 92
Noncurrent assets of discontinued operations -- 261
-------- --------
TOTAL ASSETS $7,730 $6,804
======== ========
LIABILITIES & SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $2,590 $2,081
Accrued liabilities 1,071 865
Current portion of long-term debt 14 6
Current liabilities of discontinued operations -- 391
-------- --------
Total current liabilities 3,675 3,343
Long-term liabilities 281 296
Long-term debt 840 821
Noncurrent liabilities of discontinued operations -- 18
Shareholders' equity 2,934 2,326
-------- --------
TOTAL LIABILITIES &
SHAREHOLDERS' EQUITY $7,730 $6,804
======== ========
Note: This presentation reflects: (a) the classification of Musicland
as discontinued operations; and (b) the adoption of the accounting
principle established in EITF Issue No. 02-16, Accounting by a
Reseller for Cash Consideration Received from a Vendor. Certain other
prior-year amounts have been reclassified to conform to the current
year's presentation.
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