Comparable Sales Decreased 8.0% Compared to 37.2% Growth in Q1 FY22
GAAP Diluted EPS of $1.49
Non-GAAP Diluted EPS of $1.57
MINNEAPOLIS--(BUSINESS WIRE)--Best Buy Co., Inc. (NYSE: BBY) today announced results for the 13-week first quarter ended April 30, 2022 (“Q1 FY23”), as compared to the 13-week first quarter ended May 1, 2021 (“Q1 FY22”).
|
Q1 FY23 |
Q1 FY22 |
||||
Revenue ($ in millions) |
|
|
|
|
|
|
Enterprise |
$ |
10,647 |
|
$ |
11,637 |
|
Domestic segment |
$ |
9,894 |
|
$ |
10,841 |
|
International segment |
$ |
753 |
|
$ |
796 |
|
Enterprise comparable sales % change1 |
|
(8.0) |
% |
|
37.2 |
% |
Domestic comparable sales % change1 |
|
(8.5) |
% |
|
37.9 |
% |
Domestic comparable online sales % change1 |
|
(14.9) |
% |
|
7.6 |
% |
International comparable sales % change1 |
|
(1.4) |
% |
|
27.8 |
% |
Operating Income |
|
|
|
|
|
|
GAAP operating income as a % of revenue |
|
4.3 |
% |
|
6.6 |
% |
Non-GAAP operating income as a % of revenue |
|
4.6 |
% |
|
6.4 |
% |
Diluted Earnings per Share ("EPS") |
|
|
|
|
|
|
GAAP diluted EPS |
$ |
1.49 |
|
$ |
2.32 |
|
Non-GAAP diluted EPS |
$ |
1.57 |
|
$ |
2.23 |
|
For GAAP to non-GAAP reconciliations of the measures referred to in the above table, please refer to the attached supporting schedule.
“I am incredibly proud of our teams’ ability to develop and execute plans to adapt to the changing environment over the past two years and to the more recent macro-economic conditions,” said Corie Barry, Best Buy CEO. “Even with the expected slowdown this year, we continue to be in a fundamentally stronger position than we were before the pandemic from both a revenue and operating income rate perspective. We are confident in the strength of our business and excited about what lies ahead. We have a unique value creation opportunity and are investing now, as we have successfully invested ahead of change in our past, to ensure we’re ready to meet the needs of our customers and employees and retain our unique position in our industry.”
Barry continued, “As we shared at our Investor Update in March, we expected our FY23 financial results to be softer than last year as we lap stimulus and other government support, the CE industry cycles the last two years of unusually strong demand, and we continue to invest in our future. In addition, we planned for increased promotional activity and higher supply chain expenses.”
“Therefore, the drivers of our Q1 financial results were largely as expected,” continued Barry. “Macro conditions worsened since we provided our guidance in early March which resulted in our sales being slightly lower than our expectations. Those trends have continued into Q2 and, as a result, we are revising our sales and profitability expectations for the year.”
FY23 Financial Guidance
Best Buy CFO Matt Bilunas said, “We are revising our full-year financial guidance to reflect our best estimate of how the year will play out based on the trends we have been seeing over the past several weeks and our forecast for the back half of the year at this point in time. We will continue to proactively navigate this rapidly changing environment, balancing the day-to-day operations with our commitment to our long-term strategy and growth initiatives.”
Bilunas continued, “As it relates specifically to Q2 FY23, we anticipate that our comparable sales and the year-over-year decline in our non-GAAP operating income rate will both be very similar to our first quarter results. Also, as a reminder, last year’s second quarter included a one-time diluted earnings per share benefit of approximately $0.47 from a lower effective tax rate.”
The company is updating its FY23 financial guidance to the following:
Domestic Segment Q1 FY23 Results
Domestic Revenue
Domestic revenue of $9.89 billion decreased 8.7% versus last year primarily driven by a comparable sales decline of 8.5%.
From a merchandising perspective, the company had comparable sales declines across almost all categories, with the largest drivers on a weighted basis being computing and home theater.
Domestic online revenue of $3.06 billion decreased 14.9% on a comparable basis, and as a percentage of total Domestic revenue, online revenue was 30.9% versus 33.2% last year.
Domestic Gross Profit Rate
Domestic gross profit rate was 21.9% versus 23.3% last year. The lower gross profit rate was primarily due to: (1) lower services margin rates, including pressure associated with the Best Buy Totaltech membership offering; (2) lower product margin rates, including increased promotions; and (3) higher supply chain costs. These pressures were partially offset by higher profit-sharing revenue from the company’s private label and co-branded credit card arrangement.
Domestic Selling, General and Administrative Expenses (“SG&A”)
Domestic GAAP SG&A was $1.74 billion, or 17.6% of revenue, versus $1.84 billion, or 16.9% of revenue, last year. On a non-GAAP basis, SG&A was $1.72 billion, or 17.4% of revenue, versus $1.82 billion, or 16.8% of revenue, last year. Both GAAP and non-GAAP SG&A decreased primarily due to lower incentive compensation expense, which was partially offset by higher advertising and increased expense in support of the company’s health initiatives.
International Segment Q1 FY23 Results
International Revenue
International revenue of $753 million decreased 5.4% versus last year. This decrease was primarily driven by the exit of operations in Mexico in FY22 and a comparable sales decline of 1.4% in Canada.
International Gross Profit Rate
International GAAP gross profit rate was 24.3% versus 23.7% last year. On a non-GAAP basis, the gross profit rate was 24.3% versus 23.0% last year. The higher GAAP and non-GAAP gross profit rates were primarily driven by a larger percentage of revenue from the higher margin services category in Canada. The GAAP gross profit rate in FY22 also included a $6 million benefit associated with more favorable than expected inventory markdowns in Mexico.
International SG&A
International SG&A was $149 million, or 19.8% of revenue, versus $152 million, or 19.1% of revenue, last year. SG&A decreased primarily due to the company’s exit of its Mexico operations.
Share Repurchases and Dividends
In Q1 FY23, the company returned a total of $654 million to shareholders through share repurchases of $455 million and dividends of $199 million.
Today, the company announced its board of directors has authorized the payment of a regular quarterly cash dividend of $0.88 per common share. The quarterly dividend is payable on July 5, 2022, to shareholders of record as of the close of business on June 14, 2022.
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 24, 2022. A webcast of the call is expected to be available at www.investors.bestbuy.com, both live and after the call.
(1) The method of calculating comparable sales varies across the retail industry. As a result, our method of calculating comparable sales may not be the same as other retailers’ methods. On November 24, 2020, the company announced its decision to exit its operations in Mexico. As a result, all revenue from Mexico operations has been excluded from the comparable sales calculation beginning in fiscal December FY21. For additional information on comparable sales, please see our most recent Annual Report on Form 10-K, and our subsequent Quarterly Reports on Form 10-Q, filed with the Securities and Exchange Commission (“SEC”), and available at www.investors.bestbuy.com.
(2) A reconciliation of the projected non-GAAP operating income, non-GAAP operating income rate and non-GAAP diluted EPS, which are forward-looking non-GAAP financial measures, to the most directly comparable GAAP financial measures, is not provided because the company is unable to provide such reconciliation without unreasonable effort. The inability to provide a reconciliation is due to the uncertainty and inherent difficulty predicting the occurrence, the financial impact and the periods in which the non-GAAP adjustments may be recognized. These GAAP measures may include the impact of such items as restructuring charges; price-fixing settlements; goodwill impairments; gains and losses on investments; intangible asset amortization; certain acquisition-related costs; and the tax effect of all such items. Historically, the company has excluded these items from non-GAAP financial measures. The company currently expects to continue to exclude these items in future disclosures of non-GAAP financial measures and may also exclude other items that may arise (collectively, “non-GAAP adjustments”). The decisions and events that typically lead to the recognition of non-GAAP adjustments, such as a decision to exit part of the business or reaching settlement of a legal dispute, are inherently unpredictable as to if or when they may occur. For the same reasons, the company is unable to address the probable significance of the unavailable information, which could be material to future results.
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," "assume," "believe," "estimate," "expect," "guidance," "intend," "outlook," "plan," "project" and other words and terms of similar meaning. Such statements reflect our current views and estimates with respect to future market conditions, company performance and financial results, operational investments, business prospects, new strategies, the competitive environment and other events. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the potential results discussed in such forward-looking statements. Readers should review Item 1A, Risk Factors, of our Annual Report on Form 10-K for the fiscal year ended January 29, 2022, for a description of important factors that could cause our actual results to differ materially from those contemplated by the forward-looking statements made in this release. 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 its resurgences and the impact on demand for our products and services; levels of consumer confidence; interruptions and other supply chain issues; 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.; macroeconomic pressures in the markets in which we operate (including but not limited to the effects of COVID-19, increased levels of inventory loss due to organized crime, petty theft or otherwise, fluctuations in housing prices, energy markets, and jobless rates and those related to the conflict in Ukraine); future outbreaks, catastrophic events, health crises and pandemics; susceptibility of our products to technological advancements, product life cycles and launches; conditions in the industries and categories in which we operate; changes in consumer preferences, spending and debt; competition (including from multi-channel retailers, e-commerce business, technology service providers, traditional store-based retailers, vendors and mobile network carriers); our ability to attract and retain qualified employees; changes in market compensation rates; our expansion strategies; our focus on services as a strategic priority; our reliance on key vendors and mobile network carriers (including product availability); our ability to maintain positive brand perception and recognition; our company transformation; our mix of products and services; our ability to effectively manage strategic ventures, alliances or acquisitions; our ability to effectively manage our real estate portfolio; 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); our reliance on our information technology systems; our dependence on internet and telecommunications access and capabilities; our ability to prevent or effectively respond to a cyber-attack, privacy or security breach; product safety and quality concerns; changes to labor or employment laws or regulations; risks arising from statutory, regulatory and legal developments (including tax statutes and regulations); risks arising from our international activities (including those related to the conflict in Ukraine); failure to effectively manage our costs; our dependence on cash flows and net earnings generated during the fourth fiscal quarter; pricing investments and promotional activity; economic or regulatory developments that might affect our ability to provide attractive promotional financing; constraints in the capital markets; changes to our vendor credit terms; changes in our credit ratings; and general economic uncertainty in key global markets and worsening of global economic conditions or low levels of economic growth. We caution that the foregoing list of important factors is not complete. Any forward-looking statements speak only as of the date they are made and we assume no obligation to update any forward-looking statement that we 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 |
||||||
|
April 30, 2022 |
|
May 1, 2021 |
||||
Revenue |
$ |
10,647 |
|
|
$ |
11,637 |
|
Cost of sales |
|
8,294 |
|
|
|
8,922 |
|
Gross profit |
|
2,353 |
|
|
|
2,715 |
|
Gross profit % |
|
22.1 |
% |
|
|
23.3 |
% |
Selling, general and administrative expenses |
1,890 |
|
|
|
1,988 |
|
|
SG&A % |
|
17.8 |
% |
|
|
17.1 |
% |
Restructuring charges |
|
1 |
|
|
|
(42) |
|
Operating income |
|
462 |
|
|
|
769 |
|
Operating income % |
|
4.3 |
% |
|
|
6.6 |
% |
Other income (expense): |
|
|
|
|
|
|
|
Investment income (expense) and other |
|
(5) |
|
|
|
3 |
|
Interest expense |
|
(6) |
|
|
|
(6) |
|
Earnings before income tax expense and equity in income of affiliates |
451 |
|
|
|
766 |
|
|
Income tax expense |
|
110 |
|
|
|
172 |
|
Effective tax rate |
|
24.4 |
% |
|
|
22.4 |
% |
Equity in income of affiliates |
|
- |
|
|
|
1 |
|
Net earnings |
$ |
341 |
|
|
$ |
595 |
|
|
|
|
|
|
|
|
|
Basic earnings per share |
$ |
1.50 |
|
|
$ |
2.35 |
|
Diluted earnings per share |
$ |
1.49 |
|
|
$ |
2.32 |
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
Basic |
|
226.8 |
|
|
|
253.1 |
|
Diluted |
|
228.4 |
|
|
|
256.7 |
|
BEST BUY CO., INC. CONDENSED CONSOLIDATED BALANCE SHEETS ($ in millions) (Unaudited and subject to reclassification) |
|||||||
|
|
|
|
|
|
|
|
|
April 30, 2022 |
|
May 1, 2021 |
||||
Assets |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
640 |
|
|
$ |
4,278 |
|
Short-term investments |
|
- |
|
|
|
60 |
|
Receivables, net |
|
804 |
|
|
|
850 |
|
Merchandise inventories |
|
6,258 |
|
|
|
5,721 |
|
Other current assets |
|
613 |
|
|
|
359 |
|
Total current assets |
|
8,315 |
|
|
|
11,268 |
|
Property and equipment, net |
|
2,251 |
|
|
|
2,233 |
|
Operating lease assets |
|
2,704 |
|
|
|
2,563 |
|
Goodwill |
|
1,385 |
|
|
|
986 |
|
Other assets |
|
596 |
|
|
|
655 |
|
Total assets |
$ |
15,251 |
|
|
$ |
17,705 |
|
|
|
|
|
|
|
|
|
Liabilities and equity |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Accounts payable |
$ |
5,492 |
|
|
$ |
6,360 |
|
Unredeemed gift card liabilities |
|
284 |
|
|
|
297 |
|
Deferred revenue |
|
1,101 |
|
|
|
734 |
|
Accrued compensation and related expenses |
|
336 |
|
|
|
493 |
|
Accrued liabilities |
|
771 |
|
|
|
978 |
|
Short-term debt |
|
- |
|
|
|
110 |
|
Current portion of operating lease liabilities |
|
636 |
|
|
|
654 |
|
Current portion of long-term debt |
|
15 |
|
|
|
15 |
|
Total current liabilities |
|
8,635 |
|
|
|
9,641 |
|
Long-term operating lease liabilities |
|
2,121 |
|
|
|
1,983 |
|
Long-term liabilities |
|
558 |
|
|
|
694 |
|
Long-term debt |
|
1,170 |
|
|
|
1,229 |
|
Equity |
|
2,767 |
|
|
|
4,158 |
|
Total liabilities and equity |
$ |
15,251 |
|
|
$ |
17,705 |
|
BEST BUY CO., INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS ($ in millions) (Unaudited and subject to reclassification) |
|||||||
|
|
|
|
|
|
|
|
|
Three Months Ended |
||||||
|
April 30, 2022 |
|
May 1, 2021 |
||||
Operating activities |
|
|
|
|
|
|
|
Net earnings |
$ |
341 |
|
|
$ |
595 |
|
Adjustments to reconcile net earnings to total cash provided by (used in) operating activities: |
|
|
|
|
|
||
Depreciation and amortization |
|
224 |
|
|
|
216 |
|
Restructuring charges |
|
1 |
|
|
|
(42) |
|
Stock-based compensation |
|
39 |
|
|
|
37 |
|
Other, net |
|
12 |
|
|
|
6 |
|
Changes in operating assets and liabilities, net of acquired assets and liabilities: |
|
|
|
|
|
||
Receivables |
|
238 |
|
|
|
210 |
|
Merchandise inventories |
|
(297) |
|
|
|
(90) |
|
Other assets |
|
4 |
|
|
|
(6) |
|
Accounts payable |
|
(1,296) |
|
|
|
(630) |
|
Income taxes |
|
63 |
|
|
|
113 |
|
Other liabilities |
|
(713) |
|
|
|
(304) |
|
Total cash provided by (used in) operating activities |
|
(1,384) |
|
|
|
105 |
|
|
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
|
|
Additions to property and equipment |
|
(215) |
|
|
|
(161) |
|
Purchases of investments |
|
(1) |
|
|
|
(90) |
|
Other, net |
|
3 |
|
|
|
(2) |
|
Total cash used in investing activities |
|
(213) |
|
|
|
(253) |
|
|
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
|
|
Repurchase of common stock |
|
(455) |
|
|
|
(927) |
|
Dividends paid |
|
(199) |
|
|
|
(175) |
|
Other, net |
|
4 |
|
|
|
13 |
|
Total cash used in financing activities |
|
(650) |
|
|
|
(1,089) |
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
2 |
|
|
|
5 |
|
Decrease in cash, cash equivalents and restricted cash |
|
(2,245) |
|
|
|
(1,232) |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
3,205 |
|
|
|
5,625 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
960 |
|
|
$ |
4,393 |
|
BEST BUY CO., INC. SEGMENT INFORMATION ($ in millions) (Unaudited and subject to reclassification) |
|||||||
|
|
|
|
|
|
|
|
|
Three Months Ended |
||||||
Domestic Segment Results |
April 30, 2022 |
|
May 1, 2021 |
||||
Revenue |
$ |
9,894 |
|
|
$ |
10,841 |
|
Comparable sales % change |
|
(8.5) |
% |
|
|
37.9 |
% |
Comparable online sales % change |
|
(14.9) |
% |
|
|
7.6 |
% |
Gross profit |
$ |
2,170 |
|
|
$ |
2,526 |
|
Gross profit as a % of revenue |
|
21.9 |
% |
|
|
23.3 |
% |
SG&A |
$ |
1,741 |
|
|
$ |
1,836 |
|
SG&A as a % of revenue |
|
17.6 |
% |
|
|
16.9 |
% |
Operating income |
$ |
429 |
|
|
$ |
734 |
|
Operating income as a % of revenue |
|
4.3 |
% |
|
|
6.8 |
% |
|
|
|
|
|
|
|
|
Domestic Segment Non-GAAP Results1 |
|
|
|
|
|
|
|
Gross profit |
$ |
2,170 |
|
|
$ |
2,526 |
|
Gross profit as a % of revenue |
|
21.9 |
% |
|
|
23.3 |
% |
SG&A |
$ |
1,719 |
|
|
$ |
1,816 |
|
SG&A as a % of revenue |
|
17.4 |
% |
|
|
16.8 |
% |
Operating income |
$ |
451 |
|
|
$ |
710 |
|
Operating income as a % of revenue |
|
4.6 |
% |
|
|
6.5 |
% |
|
|
|
|
|
|
|
|
|
Three Months Ended |
||||||
International Segment Results |
April 30, 2022 |
|
May 1, 2021 |
||||
Revenue |
$ |
753 |
|
|
$ |
796 |
|
Comparable sales % change |
|
(1.4) |
% |
|
|
27.8 |
% |
Gross profit |
$ |
183 |
|
|
$ |
189 |
|
Gross profit as a % of revenue |
|
24.3 |
% |
|
|
23.7 |
% |
SG&A |
$ |
149 |
|
|
$ |
152 |
|
SG&A as a % of revenue |
|
19.8 |
% |
|
|
19.1 |
% |
Operating income |
$ |
33 |
|
|
$ |
35 |
|
Operating income as a % of revenue |
|
4.4 |
% |
|
|
4.4 |
% |
|
|
|
|
|
|
|
|
International Segment Non-GAAP Results1 |
|
|
|
|
|
||
Gross profit |
$ |
183 |
|
|
$ |
183 |
|
Gross profit as a % of revenue |
|
24.3 |
% |
|
|
23.0 |
% |
SG&A |
$ |
149 |
|
|
$ |
152 |
|
SG&A as a % of revenue |
|
19.8 |
% |
|
|
19.1 |
% |
Operating income |
$ |
34 |
|
|
$ |
31 |
|
Operating income as a % of revenue |
|
4.5 |
% |
|
|
3.9 |
% |
(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 |
April 30, 2022 |
|
May 1, 2021 |
|
April 30, 2022 |
|
May 1, 2021 |
||||
Computing and Mobile Phones |
43 |
% |
|
44 |
% |
|
(10.5) |
% |
|
27.3 |
% |
Consumer Electronics |
29 |
% |
|
30 |
% |
|
(9.7) |
% |
|
45.9 |
% |
Appliances |
16 |
% |
|
15 |
% |
|
2.9 |
% |
|
66.6 |
% |
Entertainment |
6 |
% |
|
6 |
% |
|
(13.6) |
% |
|
32.1 |
% |
Services |
5 |
% |
|
5 |
% |
|
(12.4) |
% |
|
33.2 |
% |
Other |
1 |
% |
|
- |
% |
|
26.0 |
% |
|
N/A |
|
Total |
100 |
% |
|
100 |
% |
|
(8.5) |
% |
|
37.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue Mix |
|
Comparable Sales |
||||||||
|
Three Months Ended |
|
Three Months Ended |
||||||||
International Segment |
April 30, 2022 |
|
May 1, 2021 |
|
April 30, 2022 |
|
May 1, 2021 |
||||
Computing and Mobile Phones |
46 |
% |
|
50 |
% |
|
(7.9) |
% |
|
36.5 |
% |
Consumer Electronics |
28 |
% |
|
27 |
% |
|
3.8 |
% |
|
23.9 |
% |
Appliances |
9 |
% |
|
9 |
% |
|
9.4 |
% |
|
28.9 |
% |
Entertainment |
8 |
% |
|
8 |
% |
|
(7.5) |
% |
|
12.2 |
% |
Services |
7 |
% |
|
4 |
% |
|
31.4 |
% |
|
7.8 |
% |
Other |
2 |
% |
|
2 |
% |
|
(3.9) |
% |
|
7.6 |
% |
Total |
100 |
% |
|
100 |
% |
|
(1.4) |
% |
|
27.8 |
% |
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, price-fixing settlements, 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 |
||||||||||||||||||||
|
April 30, 2022 |
|
May 1, 2021 |
||||||||||||||||||||
|
Domestic |
|
International |
|
Consolidated |
|
Domestic |
|
International |
|
Consolidated |
||||||||||||
Gross profit |
$ |
2,170 |
|
|
$ |
183 |
|
|
$ |
2,353 |
|
|
$ |
2,526 |
|
|
$ |
189 |
|
|
$ |
2,715 |
|
% of revenue |
|
21.9 |
% |
|
|
24.3 |
% |
|
|
22.1 |
% |
|
|
23.3 |
% |
|
|
23.7 |
% |
|
|
23.3 |
% |
Restructuring - inventory markdowns1 |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(6) |
|
|
|
(6) |
|
Non-GAAP gross profit |
$ |
2,170 |
|
|
$ |
183 |
|
|
$ |
2,353 |
|
|
$ |
2,526 |
|
|
$ |
183 |
|
|
$ |
2,709 |
|
% of revenue |
|
21.9 |
% |
|
|
24.3 |
% |
|
|
22.1 |
% |
|
|
23.3 |
% |
|
|
23.0 |
% |
|
|
23.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SG&A |
$ |
1,741 |
|
|
$ |
149 |
|
|
$ |
1,890 |
|
|
$ |
1,836 |
|
|
$ |
152 |
|
|
$ |
1,988 |
|
% of revenue |
|
17.6 |
% |
|
|
19.8 |
% |
|
|
17.8 |
% |
|
|
16.9 |
% |
|
|
19.1 |
% |
|
|
17.1 |
% |
Intangible asset amortization2 |
|
(22) |
|
|
|
- |
|
|
|
(22) |
|
|
|
(20) |
|
|
|
- |
|
|
|
(20) |
|
Non-GAAP SG&A |
$ |
1,719 |
|
|
$ |
149 |
|
|
$ |
1,868 |
|
|
$ |
1,816 |
|
|
$ |
152 |
|
|
$ |
1,968 |
|
% of revenue |
|
17.4 |
% |
|
|
19.8 |
% |
|
|
17.5 |
% |
|
|
16.8 |
% |
|
|
19.1 |
% |
|
|
16.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
$ |
429 |
|
|
$ |
33 |
|
|
$ |
462 |
|
|
$ |
734 |
|
|
$ |
35 |
|
|
$ |
769 |
|
% of revenue |
|
4.3 |
% |
|
|
4.4 |
% |
|
|
4.3 |
% |
|
|
6.8 |
% |
|
|
4.4 |
% |
|
|
6.6 |
% |
Restructuring - inventory markdowns1 |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(6) |
|
|
|
(6) |
|
Intangible asset amortization2 |
|
22 |
|
|
|
- |
|
|
|
22 |
|
|
|
20 |
|
|
|
- |
|
|
|
20 |
|
Restructuring charges3 |
|
- |
|
|
|
1 |
|
|
|
1 |
|
|
|
(44) |
|
|
|
2 |
|
|
|
(42) |
|
Non-GAAP operating income |
$ |
451 |
|
|
$ |
34 |
|
|
$ |
485 |
|
|
$ |
710 |
|
|
$ |
31 |
|
|
$ |
741 |
|
% of revenue |
|
4.6 |
% |
|
|
4.5 |
% |
|
|
4.6 |
% |
|
|
6.5 |
% |
|
|
3.9 |
% |
|
|
6.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate |
|
|
|
|
|
|
|
|
|
24.4 |
% |
|
|
|
|
|
|
|
|
|
|
22.4 |
% |
Restructuring charges3 |
|
|
|
|
|
|
|
|
|
- |
% |
|
|
|
|
|
|
|
|
|
|
0.1 |
% |
Non-GAAP effective tax rate |
|
|
|
|
|
|
|
|
|
24.4 |
% |
|
|
|
|
|
|
|
|
|
|
22.5 |
% |
|
Three Months Ended |
|
Three Months Ended |
||||||||||||||||||||
|
April 30, 2022 |
|
May 1, 2021 |
||||||||||||||||||||
|
Pretax Earnings |
|
Net of Tax4 |
|
Per Share |
|
Pretax Earnings |
|
Net of Tax4 |
|
Per Share |
||||||||||||
Diluted EPS |
|
|
|
|
|
|
|
|
$ |
1.49 |
|
|
|
|
|
|
|
|
|
|
$ |
2.32 |
|
Restructuring - inventory markdowns1 |
$ |
- |
|
|
$ |
- |
|
|
|
- |
|
|
$ |
(6) |
|
|
$ |
(6) |
|
|
|
(0.02) |
|
Intangible asset amortization2 |
|
22 |
|
|
|
17 |
|
|
|
0.08 |
|
|
|
20 |
|
|
|
15 |
|
|
|
0.05 |
|
Restructuring charges3 |
|
1 |
|
|
|
1 |
|
|
|
- |
|
|
|
(42) |
|
|
|
(31) |
|
|
|
(0.12) |
|
Non-GAAP diluted EPS |
|
|
|
|
|
|
|
|
$ |
1.57 |
|
|
|
|
|
|
|
|
|
|
$ |
2.23 |
|
(1) |
Represents inventory markdown adjustments recorded within cost of sales associated with the exit from operations in Mexico. |
(2) |
Represents the non-cash amortization of definite-lived intangible assets associated with acquisitions, including customer relationships, tradenames and developed technology. |
(3) |
Represents adjustments to previously planned organizational changes and higher-than-expected retention rates in the Domestic segment and charges and subsequent adjustments associated with the exit from operations in Mexico in the International segment. |
(4) |
The non-GAAP adjustments primarily relate to the U.S., UK and Mexico. As such, the income tax charge is calculated using the statutory tax rate of 24.5% for all U.S. non-GAAP items for all periods presented. There is no income tax charge for UK and Mexico non-GAAP items, as there was no tax benefit recognized on these expenses in the calculation of GAAP income tax expense. |
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") |
April 30, 20221 |
|
May 1, 20211 |
||||
Net earnings |
$ |
2,200 |
|
|
$ |
2,234 |
|
Total assets |
|
18,370 |
|
|
|
18,955 |
|
ROA |
|
12.0 |
% |
|
|
11.8 |
% |
|
|
|
|
|
|
|
|
Non-GAAP Return on Investment ("ROI") |
April 30, 20221 |
|
May 1, 20211 |
||||
Numerator |
|
|
|
|
|
|
|
Operating income |
$ |
2,732 |
|
|
$ |
2,931 |
|
Add: Non-GAAP operating income adjustments2 |
|
104 |
|
|
|
287 |
|
Add: Operating lease interest3 |
|
108 |
|
|
|
110 |
|
Less: Income taxes4 |
|
(721) |
|
|
|
(815) |
|
Add: Depreciation |
|
793 |
|
|
|
768 |
|
Add: Operating lease amortization5 |
|
654 |
|
|
|
665 |
|
Adjusted operating income after tax |
$ |
3,670 |
|
|
$ |
3,946 |
|
|
|
|
|
|
|
|
|
Denominator |
|
|
|
|
|
|
|
Total assets |
$ |
18,370 |
|
|
$ |
18,955 |
|
Less: Excess cash6 |
|
(2,275) |
|
|
|
(4,434) |
|
Add: Accumulated depreciation and amortization7 |
|
6,687 |
|
|
|
7,152 |
|
Less: Adjusted current liabilities8 |
|
(10,136) |
|
|
|
(9,752) |
|
Average invested operating assets |
$ |
12,646 |
|
|
$ |
11,921 |
|
|
|
|
|
|
|
|
|
Non-GAAP ROI |
|
29.0 |
% |
|
|
33.1 |
% |
(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 restructuring charges, intangible asset amortization and acquisition-related transaction costs. Additional details regarding these adjustments are included in the Reconciliation of Non-GAAP Financial Measures schedule in this earnings release. |
(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. 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 $1 billion, which approximates the amount of cash the company believes is necessary to run the business and may fluctuate over time. |
(7) |
Accumulated depreciation and amortization represents accumulated depreciation related to property and equipment and accumulated amortization related to definite-lived intangible assets. |
(8) |
Adjusted current liabilities represent total current liabilities less short-term debt and the current portions of operating lease liabilities and long-term debt. |
Сопоставимые продажи снизились на 8,0% По сравнению с ростом на 37,2% в 1 квартале 22 финансового года
Разводненная прибыль на акцию по ОПБУ составила 1,49 доллара США
Разводненная прибыль на акцию без учета GAAP составила 1,57 доллара США
МИННЕАПОЛИС--(BUSINESS WIRE)--Best Buy Co., Inc. (NYSE: BBY) сегодня объявила результаты за 13-недельный первый квартал, закончившийся 30 апреля 2022 года (“1 квартал 23 финансового года”), по сравнению с 13-недельным первым кварталом, закончившимся 1 мая 2021 года (“1 квартал 22 финансового года”).
|
Q1 FY23 |
Q1 FY22 |
||||
Revenue ($ in millions) |
|
|
|
|
|
|
Enterprise |
$ |
10,647 |
|
$ |
11,637 |
|
Domestic segment |
$ |
9,894 |
|
$ |
10,841 |
|
International segment |
$ |
753 |
|
$ |
796 |
|
Enterprise comparable sales % change1 |
|
(8.0) |
% |
|
37.2 |
% |
Domestic comparable sales % change1 |
|
(8.5) |
% |
|
37.9 |
% |
Domestic comparable online sales % change1 |
|
(14.9) |
% |
|
7.6 |
% |
International comparable sales % change1 |
|
(1.4) |
% |
|
27.8 |
% |
Operating Income |
|
|
|
|
|
|
GAAP operating income as a % of revenue |
|
4.3 |
% |
|
6.6 |
% |
Non-GAAP operating income as a % of revenue |
|
4.6 |
% |
|
6.4 |
% |
Diluted Earnings per Share ("EPS") |
|
|
|
|
|
|
GAAP diluted EPS |
$ |
1.49 |
|
$ |
2.32 |
|
Non-GAAP diluted EPS |
$ |
1.57 |
|
$ |
2.23 |
|
Для сверки показателей, указанных в приведенной выше таблице, с показателями, не относящимися к ОПБУ, пожалуйста, обратитесь к прилагаемому вспомогательному графику.
“Я невероятно горжусь способностью наших команд разрабатывать и реализовывать планы по адаптации к меняющимся условиям за последние два года и к более свежим макроэкономическим условиям”, - сказал Кори Барри, генеральный директор Best Buy. “Даже с учетом ожидаемого замедления темпов роста в этом году мы по-прежнему находимся в принципиально более выгодном положении, чем до пандемии, как с точки зрения выручки, так и с точки зрения операционной прибыли. Мы уверены в силе нашего бизнеса и с нетерпением ждем того, что ждет нас впереди. У нас есть уникальная возможность создания ценности, и мы инвестируем сейчас, как мы успешно инвестировали в преддверии изменений в нашем прошлом, чтобы убедиться, что мы готовы удовлетворить потребности наших клиентов и сотрудников и сохранить наше уникальное положение в нашей отрасли ”.
Барри продолжил: “Как мы сообщили в нашем отчете для инвесторов в марте, мы ожидали, что наши финансовые результаты за 23 финансовый год будут мягче, чем в прошлом году, поскольку мы отказываемся от стимулирования и другой государственной поддержки, индустрия CE переживает последние два года необычайно высокого спроса, и мы продолжаем инвестировать в наше будущее. Кроме того, мы планировали увеличить рекламную активность и увеличить расходы на цепочку поставок”.
“Таким образом, факторы, повлиявшие на наши финансовые результаты за 1 квартал, в основном соответствовали ожиданиям”, - продолжил Барри. “Макроэкономические условия ухудшились с тех пор, как мы представили наши рекомендации в начале марта, что привело к тому, что наши продажи оказались немного ниже наших ожиданий. Эти тенденции продолжились во втором квартале, и в результате мы пересматриваем наши ожидания по продажам и прибыльности на год”.
Финансовые рекомендации на 23 финансовый год
Финансовый директор Best Buy Мэтт Билунас сказал: “Мы пересматриваем наши финансовые рекомендации на весь год, чтобы отразить нашу наилучшую оценку того, как пройдет год, основываясь на тенденциях, которые мы наблюдали за последние несколько недель, и нашем прогнозе на вторую половину года на данный момент. Мы будем продолжать активно ориентироваться в этой быстро меняющейся среде, балансируя между повседневной деятельностью и нашей приверженностью нашей долгосрочной стратегии и инициативам по росту”.
Билунас продолжил: “Поскольку это относится конкретно ко 2 кварталу 23 финансового года, мы ожидаем, что наши сопоставимые продажи и снижение уровня операционной прибыли без учета GAAP в годовом исчислении будут очень похожи на наши результаты за первый квартал. Кроме того, напомним, что во втором квартале прошлого года была получена единовременная разводненная прибыль на акцию в размере примерно 0,47 доллара США от более низкой эффективной налоговой ставки.”
Компания обновляет свое финансовое руководство на 23 финансовый год следующим образом:
Результаты внутреннего сегмента за 1 квартал 23 финансового года
Внутренний доход
Внутренняя выручка в размере 9,89 миллиарда долларов снизилась на 8,7% по сравнению с прошлым годом, главным образом из-за сопоставимого снижения продаж на 8,5%.
С точки зрения мерчандайзинга, у компании было сопоставимое снижение продаж почти во всех категориях, причем наибольшими факторами на взвешенной основе были компьютеры и домашние кинотеатры.
Внутренний онлайн-доход в размере 3,06 миллиарда долларов снизился на 14,9% на сопоставимой основе, а в процентах от общего внутреннего дохода онлайн-доход составил 30,9% против 33,2% в прошлом году.
Внутренняя Норма Валовой Прибыли
Внутренняя норма валовой прибыли составила 21,9% против 23,3% в прошлом году. Более низкая норма валовой прибыли была в основном обусловлена: (1) более низкими ставками маржи услуг, включая давление, связанное с предложением членства в Best Buy Totaltech; (2) более низкие ставки наценки на продукцию, включая увеличение рекламных акций; и (3) более высокие затраты на цепочку поставок. Это давление было частично компенсировано более высокими доходами от распределения прибыли от частной торговой марки компании и совместного использования кредитных карт.
Внутренние коммерческие, Общие и административные расходы (”SG&A")
Выручка по внутренним ОПБУ составила 1,74 миллиарда долларов, или 17,6% от выручки, по сравнению с 1,84 миллиарда долларов, или 16,9% от выручки, в прошлом году. Без учета GAAP выручка SG&A составила 1,72 миллиарда долларов, или 17,4% от выручки, по сравнению с 1,82 миллиарда долларов, или 16,8% от выручки, в прошлом году. Как по GAAP, так и не по GAAP SG & A снизились в основном из-за снижения расходов на стимулирующее вознаграждение, что было частично компенсировано увеличением рекламы и увеличением расходов на поддержку инициатив компании в области здравоохранения.
Результаты международного сегмента за 1 квартал 23 финансового года
Международные поступления
Международная выручка в размере 753 миллионов долларов снизилась на 5,4% по сравнению с прошлым годом. Это снижение было вызвано главным образом прекращением деятельности в Мексике в 22 финансовом году и сопоставимым снижением продаж на 1,4% в Канаде.
Международная Норма Валовой Прибыли
Норма валовой прибыли по международным ОПБУ составила 24,3% против 23,7% в прошлом году. На основе без учета GAAP норма валовой прибыли составила 24,3% против 23,0% в прошлом году. Более высокие показатели валовой прибыли по ОПБУ и не по ОПБУ были в первую очередь обусловлены большей долей выручки от категории услуг с более высокой маржой в Канаде. Норма валовой прибыли по ОПБУ в 22 финансовом году также включала выгоду в размере 6 миллионов долларов, связанную с более благоприятной, чем ожидалось, уценкой запасов в Мексике.
Международный SG&A
Международный SG&A составил 149 миллионов долларов, или 19,8% выручки, против 152 миллионов долларов, или 19,1% выручки, в прошлом году. SG&A снизились в основном из-за прекращения деятельности компании в Мексике.
Выкуп акций и дивиденды
В 1 квартале 23 финансового года компания вернула акционерам в общей сложности 654 миллиона долларов за счет выкупа акций на сумму 455 миллионов долларов и дивидендов в размере 199 миллионов долларов.
Сегодня компания объявила, что ее совет директоров санкционировал выплату регулярных ежеквартальных денежных дивидендов в размере 0,88 доллара на одну обыкновенную акцию. Ежеквартальные дивиденды выплачиваются 5 июля 2022 года акционерам record по состоянию на закрытие бизнеса 14 июня 2022 года.
Конференц-связь
Best Buy планирует провести телефонную конференцию по доходам в 8:00 утра по восточному времени (7:00 утра по центральному времени) 24 мая 2022 года. Ожидается, что веб-трансляция этого звонка будет доступна по адресу www.investors.bestbuy.com , как в прямом эфире, так и после звонка.
(1) Метод расчета сопоставимых продаж варьируется в зависимости от отрасли розничной торговли. В результате наш метод расчета сопоставимых продаж может отличаться от методов других розничных продавцов. 24 ноября 2020 года компания объявила о своем решении прекратить свою деятельность в Мексике. В результате вся выручка от операций в Мексике была исключена из расчета сопоставимых продаж, начиная с декабря 21 финансового года. Для получения дополнительной информации о сопоставимых продажах, пожалуйста, ознакомьтесь с нашим последним Годовым отчетом по форме 10-K и нашими последующими квартальными отчетами по форме 10-Q, поданными в Комиссию по ценным бумагам и биржам (“SEC”) и доступными по адресу www.investors.bestbuy.com .
(2) Сверка прогнозируемого операционного дохода, не связанного с GAAP, ставки операционного дохода, не связанного с GAAP, и разводненной прибыли на акцию, не связанной с GAAP, которые являются прогнозными финансовыми показателями, не связанными с GAAP, с наиболее непосредственно сопоставимыми финансовыми показателями GAAP, не предоставляется, поскольку компания не может предоставить такую сверку без неразумные усилия. Невозможность предоставить сверку обусловлена неопределенностью и присущими ей трудностями в прогнозировании возникновения, финансовых последствий и периодов, в которые могут быть признаны корректировки, не относящиеся к ОПБУ. Эти показатели GAAP могут включать влияние таких статей, как расходы на реструктуризацию; расчеты по фиксированным ценам; обесценение гудвила; прибыли и убытки от инвестиций; амортизация нематериальных активов; определенные затраты, связанные с приобретением; и налоговый эффект всех таких статей. Исторически сложилось так, что компания исключала эти статьи из финансовых показателей, не относящихся к GAAP. В настоящее время компания планирует продолжать исключать эти статьи в будущих раскрытиях финансовых показателей, не относящихся к GAAP, а также может исключить другие статьи, которые могут возникнуть (в совокупности “корректировки, не относящиеся к GAAP”). Решения и события, которые обычно приводят к признанию корректировок, не относящихся к GAAP, таких как решение о выходе из части бизнеса или достижении урегулирования юридического спора, по своей сути непредсказуемы в отношении того, могут ли они произойти или когда они могут произойти. По тем же причинам компания не в состоянии оценить вероятную значимость недоступной информации, которая может иметь существенное значение для будущих результатов.
Прогнозные и предостерегающие заявления:
Настоящий релиз содержит прогнозные заявления по смыслу Закона о реформе судебных разбирательств по частным ценным бумагам 1995 года, содержащиеся в Разделе 27A Закона о ценных бумагах 1933 года и Разделе 21E Закона о ценных бумагах и биржах 1934 года, которые отражают текущие взгляды и оценки руководства относительно будущих рыночных условий, деятельности и финансовых результатов компании, операционных инвестиции, перспективы бизнеса, новые стратегии, конкурентная среда и другие события. Вы можете идентифицировать эти утверждения по тому факту, что в них используются такие слова, как "предвидеть", "предполагать", "верить", "оценивать", "ожидать", "руководство", "намереваться", "прогноз", "план", "проект" и другие слова и термины подобного рода значение. Такие заявления отражают наши текущие взгляды и оценки в отношении будущих рыночных условий, деятельности и финансовых результатов компании, операционных инвестиций, перспектив бизнеса, новых стратегий, конкурентной среды и других событий. Эти заявления подвержены определенным рискам и неопределенностям, которые могут привести к тому, что фактические результаты будут существенно отличаться от потенциальных результатов, обсуждаемых в таких прогнозных заявлениях. Читателям следует ознакомиться с пунктом 1А "Факторы риска" нашего Годового отчета по форме 10-K за финансовый год, закончившийся 29 января 2022 года, для описания важных факторов, которые могут привести к тому, что наши фактические результаты будут существенно отличаться от тех, которые предусмотрены прогнозными заявлениями, сделанными в этом выпуске. Среди факторов, которые могут вызвать фактические итоги и результаты могут существенно отличаться от тех, которые содержатся в прогнозных заявлениях, относятся следующие: продолжительность и масштабы COVID-19 пандемией и ее новые появления и влияния на спрос на наши продукты и услуги; уровень доверия потребителей; перебои и других логистических цепочек вопросов; любой материал, разруха в наших отношениях с вами или службами сторонних поставщиков, рисков, связанных с нашей эксклюзивной продукции бренда и риски, связанные с поставщиками, что источник продукции за пределами США; макроэкономическая ситуация на рынках, где мы работаем (в том числе, но не ограничиваясь воздействием COVID-19, повышение уровня запасов потери, связанные с организованной преступностью, мелким воровством или иным образом, колебания цен на жилье, энергетических рынках, и ставки по безработице и тем, связанных с конфликтом в Украине); в будущем эпидемий, катастроф, эпидемий и пандемий; восприимчивость нашей продукции для технологических достижений, жизненного цикла товаров и баркасов; условия в отраслях и категориях, в которых мы работаем; изменения в потребительских предпочтениях, расходов и долгов; конкуренции (в том числе многоканальные ритейлеры, электронная коммерция бизнес, технологии-провайдеров, традиционный магазин основе ритейлеров, поставщиков и мобильной связи); нашу способность привлекать и удерживать квалифицированные кадры; изменения на рынке предоставления компенсаций; развитие стратегий; наше внимание на услуги в качестве стратегического приоритета; нашу зависимость от ключевых поставщиков и мобильной связи (в том числе наличия продукции); наши возможности для поддержания положительного восприятия бренда и признание; наша компания трансформации; наш набор продуктов и услуг; наша способность эффективно управлять стратегических предприятий, альянсов и поглощений; нашу способность эффективно управлять портфелем недвижимости; торговые ограничения или изменения: стоимость импорта (в том числе существующих или установления новых тарифов или пошлин, изменения в количестве любые такие пошлины или пошлины); наша зависимость от наших информационно-технических систем; наша зависимость от интернет и телекоммуникации доступа и возможности; наши способности предотвращать и эффективно реагировать на кибер-атаки, нарушения конфиденциальности или безопасности; безопасности и качества продукции проблемы; изменения в трудовой или трудовой законов или нормативных актов; риски, вытекающие из уставных, нормативных и правовых изменений (в том числе налоговым законодательством и правилами); риски, связанные с нашей международной деятельности (в том числе, связанных с конфликтом в Украине); неспособность эффективно управлять затратами; нашу зависимость от денежных потоков и чистой прибыли, полученной за четвертый финансовый квартал, ценообразования, инвестиций и рекламной деятельности; экономические и регуляторные изменения, которые могут повлиять на нашу способность предоставить привлекательные рекламные финансирования; ограничения на рынках капитала; изменения поставщиком условия кредитования; изменения в наши кредитные рейтинги; и общей экономической нестабильности в ключевых глобальных рынках и ухудшения мировой экономической конъюнктуры и низких темпов экономического роста. Мы предупреждаем, что приведенный выше список важных факторов не является полным. Любые прогнозные заявления действительны только на дату их составления, и мы не берем на себя никаких обязательств по обновлению любых прогнозных заявлений, которые мы можем сделать.
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 |
||||||
|
April 30, 2022 |
|
May 1, 2021 |
||||
Revenue |
$ |
10,647 |
|
|
$ |
11,637 |
|
Cost of sales |
|
8,294 |
|
|
|
8,922 |
|
Gross profit |
|
2,353 |
|
|
|
2,715 |
|
Gross profit % |
|
22.1 |
% |
|
|
23.3 |
% |
Selling, general and administrative expenses |
1,890 |
|
|
|
1,988 |
|
|
SG&A % |
|
17.8 |
% |
|
|
17.1 |
% |
Restructuring charges |
|
1 |
|
|
|
(42) |
|
Operating income |
|
462 |
|
|
|
769 |
|
Operating income % |
|
4.3 |
% |
|
|
6.6 |
% |
Other income (expense): |
|
|
|
|
|
|
|
Investment income (expense) and other |
|
(5) |
|
|
|
3 |
|
Interest expense |
|
(6) |
|
|
|
(6) |
|
Earnings before income tax expense and equity in income of affiliates |
451 |
|
|
|
766 |
|
|
Income tax expense |
|
110 |
|
|
|
172 |
|
Effective tax rate |
|
24.4 |
% |
|
|
22.4 |
% |
Equity in income of affiliates |
|
- |
|
|
|
1 |
|
Net earnings |
$ |
341 |
|
|
$ |
595 |
|
|
|
|
|
|
|
|
|
Basic earnings per share |
$ |
1.50 |
|
|
$ |
2.35 |
|
Diluted earnings per share |
$ |
1.49 |
|
|
$ |
2.32 |
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
Basic |
|
226.8 |
|
|
|
253.1 |
|
Diluted |
|
228.4 |
|
|
|
256.7 |
|
Best Buy Co., INC. CONDENSED CONSOLIDATED BALANCE SHEETS ($ in millions) (Unaudited and subject to reclassification) |
|||||||
|
|
|
|
|
|
|
|
|
April 30, 2022 |
|
May 1, 2021 |
||||
Assets |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
640 |
|
|
$ |
4,278 |
|
Short-term investments |
|
- |
|
|
|
60 |
|
Receivables, net |
|
804 |
|
|
|
850 |
|
Merchandise inventories |
|
6,258 |
|
|
|
5,721 |
|
Other current assets |
|
613 |
|
|
|
359 |
|
Total current assets |
|
8,315 |
|
|
|
11,268 |
|
Property and equipment, net |
|
2,251 |
|
|
|
2,233 |
|
Operating lease assets |
|
2,704 |
|
|
|
2,563 |
|
Goodwill |
|
1,385 |
|
|
|
986 |
|
Other assets |
|
596 |
|
|
|
655 |
|
Total assets |
$ |
15,251 |
|
|
$ |
17,705 |
|
|
|
|
|
|
|
|
|
Liabilities and equity |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Accounts payable |
$ |
5,492 |
|
|
$ |
6,360 |
|
Unredeemed gift card liabilities |
|
284 |
|
|
|
297 |
|
Deferred revenue |
|
1,101 |
|
|
|
734 |
|
Accrued compensation and related expenses |
|
336 |
|
|
|
493 |
|
Accrued liabilities |
|
771 |
|
|
|
978 |
|
Short-term debt |
|
- |
|
|
|
110 |
|
Current portion of operating lease liabilities |
|
636 |
|
|
|
654 |
|
Current portion of long-term debt |
|
15 |
|
|
|
15 |
|
Total current liabilities |
|
8,635 |
|
|
|
9,641 |
|
Long-term operating lease liabilities |
|
2,121 |
|
|
|
1,983 |
|
Long-term liabilities |
|
558 |
|
|
|
694 |
|
Long-term debt |
|
1,170 |
|
|
|
1,229 |
|
Equity |
|
2,767 |
|
|
|
4,158 |
|
Total liabilities and equity |
$ |
15,251 |
|
|
$ |
17,705 |
|
Best Buy Co., INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS ($ in millions) (Unaudited and subject to reclassification) |
|||||||
|
|
|
|
|
|
|
|
|
Three Months Ended |
||||||
|
April 30, 2022 |
|
May 1, 2021 |
||||
Operating activities |
|
|
|
|
|
|
|
Net earnings |
$ |
341 |
|
|
$ |
595 |
|
Adjustments to reconcile net earnings to total cash provided by (used in) operating activities: |
|
|
|
|
|
||
Depreciation and amortization |
|
224 |
|
|
|
216 |
|
Restructuring charges |
|
1 |
|
|
|
(42) |
|
Stock-based compensation |
|
39 |
|
|
|
37 |
|
Other, net |
|
12 |
|
|
|
6 |
|
Changes in operating assets and liabilities, net of acquired assets and liabilities: |
|
|
|
|
|
||
Receivables |
|
238 |
|
|
|
210 |
|
Merchandise inventories |
|
(297) |
|
|
|
(90) |
|
Other assets |
|
4 |
|
|
|
(6) |
|
Accounts payable |
|
(1,296) |
|
|
|
(630) |
|
Income taxes |
|
63 |
|
|
|
113 |
|
Other liabilities |
|
(713) |
|
|
|
(304) |
|
Total cash provided by (used in) operating activities |
|
(1,384) |
|
|
|
105 |
|
|
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
|
|
Additions to property and equipment |
|
(215) |
|
|
|
(161) |
|
Purchases of investments |
|
(1) |
|
|
|
(90) |
|
Other, net |
|
3 |
|
|
|
(2) |
|
Total cash used in investing activities |
|
(213) |
|
|
|
(253) |
|
|
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
|
|
Repurchase of common stock |
|
(455) |
|
|
|
(927) |
|
Dividends paid |
|
(199) |
|
|
|
(175) |
|
Other, net |
|
4 |
|
|
|
13 |
|
Total cash used in financing activities |
|
(650) |
|
|
|
(1,089) |
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
2 |
|
|
|
5 |
|
Decrease in cash, cash equivalents and restricted cash |
|
(2,245) |
|
|
|
(1,232) |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
3,205 |
|
|
|
5,625 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
960 |
|
|
$ |
4,393 |
|
Best Buy Co., INC. SEGMENT INFORMATION ($ in millions) (Unaudited and subject to reclassification) |
|||||||
|
|
|
|
|
|
|
|
|
Three Months Ended |
||||||
Domestic Segment Results |
April 30, 2022 |
|
May 1, 2021 |
||||
Revenue |
$ |
9,894 |
|
|
$ |
10,841 |
|
Comparable sales % change |
|
(8.5) |
% |
|
|
37.9 |
% |
Comparable online sales % change |
|
(14.9) |
% |
|
|
7.6 |
% |
Gross profit |
$ |
2,170 |
|
|
$ |
2,526 |
|
Gross profit as a % of revenue |
|
21.9 |
% |
|
|
23.3 |
% |
SG&A |
$ |
1,741 |
|
|
$ |
1,836 |
|
SG&A as a % of revenue |
|
17.6 |
% |
|
|
16.9 |
% |
Operating income |
$ |
429 |
|
|
$ |
734 |
|
Operating income as a % of revenue |
|
4.3 |
% |
|
|
6.8 |
% |
|
|
|
|
|
|
|
|
Domestic Segment Non-GAAP Results1 |
|
|
|
|
|
|
|
Gross profit |
$ |
2,170 |
|
|
$ |
2,526 |
|
Gross profit as a % of revenue |
|
21.9 |
% |
|
|
23.3 |
% |
SG&A |
$ |
1,719 |
|
|
$ |
1,816 |
|
SG&A as a % of revenue |
|
17.4 |
% |
|
|
16.8 |
% |
Operating income |
$ |
451 |
|
|
$ |
710 |
|
Operating income as a % of revenue |
|
4.6 |
% |
|
|
6.5 |
% |
|
|
|
|
|
|
|
|
|
Three Months Ended |
||||||
International Segment Results |
April 30, 2022 |
|
May 1, 2021 |
||||
Revenue |
$ |
753 |
|
|
$ |
796 |
|
Comparable sales % change |
|
(1.4) |
% |
|
|
27.8 |
% |
Gross profit |
$ |
183 |
|
|
$ |
189 |
|
Gross profit as a % of revenue |
|
24.3 |
% |
|
|
23.7 |
% |
SG&A |
$ |
149 |
|
|
$ |
152 |
|
SG&A as a % of revenue |
|
19.8 |
% |
|
|
19.1 |
% |
Operating income |
$ |
33 |
|
|
$ |
35 |
|
Operating income as a % of revenue |
|
4.4 |
% |
|
|
4.4 |
% |
|
|
|
|
|
|
|
|
International Segment Non-GAAP Results1 |
|
|
|
|
|
||
Gross profit |
$ |
183 |
|
|
$ |
183 |
|
Gross profit as a % of revenue |
|
24.3 |
% |
|
|
23.0 |
% |
SG&A |
$ |
149 |
|
|
$ |
152 |
|
SG&A as a % of revenue |
|
19.8 |
% |
|
|
19.1 |
% |
Operating income |
$ |
34 |
|
|
$ |
31 |
|
Operating income as a % of revenue |
|
4.5 |
% |
|
|
3.9 |
% |
(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 |
April 30, 2022 |
|
May 1, 2021 |
|
April 30, 2022 |
|
May 1, 2021 |
||||
Computing and Mobile Phones |
43 |
% |
|
44 |
% |
|
(10.5) |
% |
|
27.3 |
% |
Consumer Electronics |
29 |
% |
|
30 |
% |
|
(9.7) |
% |
|
45.9 |
% |
Appliances |
16 |
% |
|
15 |
% |
|
2.9 |
% |
|
66.6 |
% |
Entertainment |
6 |
% |
|
6 |
% |
|
(13.6) |
% |
|
32.1 |
% |
Services |
5 |
% |
|
5 |
% |
|
(12.4) |
% |
|
33.2 |
% |
Other |
1 |
% |
|
- |
% |
|
26.0 |
% |
|
N/A |
|
Total |
100 |
% |
|
100 |
% |
|
(8.5) |
% |
|
37.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue Mix |
|
Comparable Sales |
||||||||
|
Three Months Ended |
|
Three Months Ended |
||||||||
International Segment |
April 30, 2022 |
|
May 1, 2021 |
|
April 30, 2022 |
|
May 1, 2021 |
||||
Computing and Mobile Phones |
46 |
% |
|
50 |
% |
|
(7.9) |
% |
|
36.5 |
% |
Consumer Electronics |
28 |
% |
|
27 |
% |
|
3.8 |
% |
|
23.9 |
% |
Appliances |
9 |
% |
|
9 |
% |
|
9.4 |
% |
|
28.9 |
% |
Entertainment |
8 |
% |
|
8 |
% |
|
(7.5) |
% |
|
12.2 |
% |
Services |
7 |
% |
|
4 |
% |
|
31.4 |
% |
|
7.8 |
% |
Other |
2 |
% |
|
2 |
% |
|
(3.9) |
% |
|
7.6 |
% |
Total |
100 |
% |
|
100 |
% |
|
(1.4) |
% |
|
27.8 |
% |
Best Buy Co., INC. СВЕРКА ФИНАНСОВЫХ ПОКАЗАТЕЛЕЙ, НЕ ОТНОСЯЩИХСЯ К ОПБУ (в миллионах долларов США, за исключением сумм на акцию) (Неаудировано и подлежит реклассификации)
Следующая информация представляет собой сверку наиболее сопоставимых финансовых показателей, представленных в соответствии с принципами бухгалтерского учета, общепринятыми в США (финансовые показатели GAAP), с представленными финансовыми показателями, не относящимися к GAAP. Компания считает, что финансовые показатели, не относящиеся к GAAP, при рассмотрении в сочетании с финансовыми показателями GAAP могут предоставить больше информации, чтобы помочь инвесторам в оценке результатов текущего периода и в оценке будущих результатов. По этим причинам внутренняя управленческая отчетность также включает финансовые показатели, не относящиеся к ОПБУ. Как правило, представленные финансовые показатели, не относящиеся к GAAP, включают корректировки по таким статьям, как расходы на реструктуризацию, расчеты по фиксированным ценам, обесценение гудвила, прибыли и убытки от инвестиций, амортизация нематериальных активов, определенные затраты, связанные с приобретением, и налоговый эффект всех таких статей. Кроме того, некоторые другие статьи могут быть исключены из финансовых показателей, не относящихся к GAAP, если компания считает, что это обеспечивает большую ясность для руководства и инвесторов. Эти финансовые показатели, не относящиеся к GAAP, следует рассматривать в дополнение к финансовым показателям GAAP, представленным в настоящем отчете о прибылях и убытках, а также в финансовой отчетности компании и других общедоступных отчетах, а не в качестве их превосходства или замены. Финансовые показатели, не относящиеся к GAAP, представленные здесь, могут быть несопоставимы с аналогичными показателями, используемыми другими компаниями.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
||||||||||||||||||||
|
April 30, 2022 |
|
May 1, 2021 |
||||||||||||||||||||
|
Domestic |
|
International |
|
Consolidated |
|
Domestic |
|
International |
|
Consolidated |
||||||||||||
Gross profit |
$ |
2,170 |
|
|
$ |
183 |
|
|
$ |
2,353 |
|
|
$ |
2,526 |
|
|
$ |
189 |
|
|
$ |
2,715 |
|
% of revenue |
|
21.9 |
% |
|
|
24.3 |
% |
|
|
22.1 |
% |
|
|
23.3 |
% |
|
|
23.7 |
% |
|
|
23.3 |
% |
Restructuring - inventory markdowns1 |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(6) |
|
|
|
(6) |
|
Non-GAAP gross profit |
$ |
2,170 |
|
|
$ |
183 |
|
|
$ |
2,353 |
|
|
$ |
2,526 |
|
|
$ |
183 |
|
|
$ |
2,709 |
|
% of revenue |
|
21.9 |
% |
|
|
24.3 |
% |
|
|
22.1 |
% |
|
|
23.3 |
% |
|
|
23.0 |
% |
|
|
23.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SG&A |
$ |
1,741 |
|
|
$ |
149 |
|
|
$ |
1,890 |
|
|
$ |
1,836 |
|
|
$ |
152 |
|
|
$ |
1,988 |
|
% of revenue |
|
17.6 |
% |
|
|
19.8 |
% |
|
|
17.8 |
% |
|
|
16.9 |
% |
|
|
19.1 |
% |
|
|
17.1 |
% |
Intangible asset amortization2 |
|
(22) |
|
|
|
- |
|
|
|
(22) |
|
|
|
(20) |
|
|
|
- |
|
|
|
(20) |
|
Non-GAAP SG&A |
$ |
1,719 |
|
|
$ |
149 |
|
|
$ |
1,868 |
|
|
$ |
1,816 |
|
|
$ |
152 |
|
|
$ |
1,968 |
|
% of revenue |
|
17.4 |
% |
|
|
19.8 |
% |
|
|
17.5 |
% |
|
|
16.8 |
% |
|
|
19.1 |
% |
|
|
16.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
$ |
429 |
|
|
$ |
33 |
|
|
$ |
462 |
|
|
$ |
734 |
|
|
$ |
35 |
|
|
$ |
769 |
|
% of revenue |
|
4.3 |
% |
|
|
4.4 |
% |
|
|
4.3 |
% |
|
|
6.8 |
% |
|
|
4.4 |
% |
|
|
6.6 |
% |
Restructuring - inventory markdowns1 |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(6) |
|
|
|
(6) |
|
Intangible asset amortization2 |
|
22 |
|
|
|
- |
|
|
|
22 |
|
|
|
20 |
|
|
|
- |
|
|
|
20 |
|
Restructuring charges3 |
|
- |
|
|
|
1 |
|
|
|
1 |
|
|
|
(44) |
|
|
|
2 |
|
|
|
(42) |
|
Non-GAAP operating income |
$ |
451 |
|
|
$ |
34 |
|
|
$ |
485 |
|
|
$ |
710 |
|
|
$ |
31 |
|
|
$ |
741 |
|
% of revenue |
|
4.6 |
% |
|
|
4.5 |
% |
|
|
4.6 |
% |
|
|
6.5 |
% |
|
|
3.9 |
% |
|
|
6.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate |
|
|
|
|
|
|
|
|
|
24.4 |
% |
|
|
|
|
|
|
|
|
|
|
22.4 |
% |
Restructuring charges3 |
|
|
|
|
|
|
|
|
|
- |
% |
|
|
|
|
|
|
|
|
|
|
0.1 |
% |
Non-GAAP effective tax rate |
|
|
|
|
|
|
|
|
|
24.4 |
% |
|
|
|
|
|
|
|
|
|
|
22.5 |
% |
|
Three Months Ended |
|
Three Months Ended |
||||||||||||||||||||
|
April 30, 2022 |
|
May 1, 2021 |
||||||||||||||||||||
|
Pretax Earnings |
|
Net of Tax4 |
|
Per Share |
|
Pretax Earnings |
|
Net of Tax4 |
|
Per Share |
||||||||||||
Diluted EPS |
|
|
|
|
|
|
|
|
$ |
1.49 |
|
|
|
|
|
|
|
|
|
|
$ |
2.32 |
|
Restructuring - inventory markdowns1 |
$ |
- |
|
|
$ |
- |
|
|
|
- |
|
|
$ |
(6) |
|
|
$ |
(6) |
|
|
|
(0.02) |
|
Intangible asset amortization2 |
|
22 |
|
|
|
17 |
|
|
|
0.08 |
|
|
|
20 |
|
|
|
15 |
|
|
|
0.05 |
|
Restructuring charges3 |
|
1 |
|
|
|
1 |
|
|
|
- |
|
|
|
(42) |
|
|
|
(31) |
|
|
|
(0.12) |
|
Non-GAAP diluted EPS |
|
|
|
|
|
|
|
|
$ |
1.57 |
|
|
|
|
|
|
|
|
|
|
$ |
2.23 |
|
(1) |
Represents inventory markdown adjustments recorded within cost of sales associated with the exit from operations in Mexico. |
(2) |
Represents the non-cash amortization of definite-lived intangible assets associated with acquisitions, including customer relationships, tradenames and developed technology. |
(3) |
Represents adjustments to previously planned organizational changes and higher-than-expected retention rates in the Domestic segment and charges and subsequent adjustments associated with the exit from operations in Mexico in the International segment. |
(4) |
The non-GAAP adjustments primarily relate to the U.S., UK and Mexico. As such, the income tax charge is calculated using the statutory tax rate of 24.5% for all U.S. non-GAAP items for all periods presented. There is no income tax charge for UK and Mexico non-GAAP items, as there was no tax benefit recognized on these expenses in the calculation of GAAP income tax expense. |
Рентабельность активов и рентабельность инвестиций, не связанных с GAAP
В нижеприведенных таблицах представлены расчеты рентабельности активов ("ROA") (финансовый показатель GAAP) и рентабельности инвестиций (“ROI”) (финансовый показатель, не соответствующий GAAP) за представленные периоды. Компания считает, что рентабельность инвестиций является наиболее непосредственно сопоставимым финансовым показателем с рентабельностью инвестиций. Рентабельность инвестиций без учета GAAP определяется как скорректированный без учета GAAP операционный доход после налогообложения, деленный на средние инвестированные операционные активы. Во всех периодах, представленных ниже, эта методология применяется последовательно. Компания считает, что рентабельность инвестиций без учета GAAP является значимым показателем для инвесторов для оценки эффективности использования капитала, поскольку она измеряет, как используются ключевые активы, путем корректировки операционных доходов и общих активов по статьям, указанным ниже. Этот метод определения рентабельности инвестиций, не относящийся к GAAP, может отличаться от методов других компаний и, следовательно, может быть несопоставим с методами, используемыми другими компаниями.
|
|
|
|
|
|
|
|
Return on Assets ("ROA") |
April 30, 20221 |
|
May 1, 20211 |
||||
Net earnings |
$ |
2,200 |
|
|
$ |
2,234 |
|
Total assets |
|
18,370 |
|
|
|
18,955 |
|
ROA |
|
12.0 |
% |
|
|
11.8 |
% |
|
|
|
|
|
|
|
|
Non-GAAP Return on Investment ("ROI") |
April 30, 20221 |
|
May 1, 20211 |
||||
Numerator |
|
|
|
|
|
|
|
Operating income |
$ |
2,732 |
|
|
$ |
2,931 |
|
Add: Non-GAAP operating income adjustments2 |
|
104 |
|
|
|
287 |
|
Add: Operating lease interest3 |
|
108 |
|
|
|
110 |
|
Less: Income taxes4 |
|
(721) |
|
|
|
(815) |
|
Add: Depreciation |
|
793 |
|
|
|
768 |
|
Add: Operating lease amortization5 |
|
654 |
|
|
|
665 |
|
Adjusted operating income after tax |
$ |
3,670 |
|
|
$ |
3,946 |
|
|
|
|
|
|
|
|
|
Denominator |
|
|
|
|
|
|
|
Total assets |
$ |
18,370 |
|
|
$ |
18,955 |
|
Less: Excess cash6 |
|
(2,275) |
|
|
|
(4,434) |
|
Add: Accumulated depreciation and amortization7 |
|
6,687 |
|
|
|
7,152 |
|
Less: Adjusted current liabilities8 |
|
(10,136) |
|
|
|
(9,752) |
|
Average invested operating assets |
$ |
12,646 |
|
|
$ |
11,921 |
|
|
|
|
|
|
|
|
|
Non-GAAP ROI |
|
29.0 |
% |
|
|
33.1 |
% |
(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 restructuring charges, intangible asset amortization and acquisition-related transaction costs. Additional details regarding these adjustments are included in the Reconciliation of Non-GAAP Financial Measures schedule in this earnings release. |
(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. 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) |
Accumulated depreciation and amortization represents accumulated depreciation related to property and equipment and accumulated amortization related to definite-lived intangible assets. |
(8) |
Adjusted current liabilities represent total current liabilities less short-term debt and the current portions of operating lease liabilities and long-term debt. |