(Mark One)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended July 31, 2021
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number: 1-9595
BEST BUY CO., INC.
(Exact name of registrant as specified in its charter)
Minnesota | 41-0907483 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
7601 Penn Avenue South | |
Richfield, Minnesota | 55423 |
(Address of principal executive offices) | (Zip Code) |
(612) 291-1000
(Registrant's telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol | Name of exchange on which registered |
Common Stock, $0.10 par value per share | BBY | New York Stock Exchange |
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject
to such filing requirements for the past 90 days.Yes No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was
required to submit such files). | Yes No |
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer | Accelerated Filer | Non-accelerated Filer |
Smaller Reporting Company | Emerging Growth Company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). | Yes No |
The registrant had 245,964,220 shares of common stock outstanding as of August 27, 2021.
BEST BUY CO., INC.
FORM 10-Q FOR THE QUARTER ENDED July 31, 2021
TABLE OF CONTENTS
Part I - Financial Information
a) Condensed Consolidated Balance Sheets as of July 31, 2021, January 30, 2021, and August 1, 2020
c) Condensed Consolidated Statements of Comprehensive Income for the three and six months ended July 31, 2021, and August 1, 2020
- Condensed Consolidated Statements of Cash Flows for the six months ended July 31, 2021, and
August 1, 2020 | ||
e) | Condensed Consolidated Statements of Changes in Shareholders' Equity for the three and six months ended | |
July 31, 2021, and August 1, 2020 | ||
f) | Notes to Condensed Consolidated Financial Statements | |
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations | |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | |
Item 4. | Controls and Procedures | |
Part II - Other Information | ||
Item 1. | Legal Proceedings | |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | |
Item 6. | Exhibits | |
Signatures |
2
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets
$ in millions, except per share amounts (unaudited)
July 31, 2021 | January 30, 2021 | August 1, 2020 | ||||||||
Assets | ||||||||||
Current assets | ||||||||||
Cash and cash equivalents | $ | 4,340 | $ | 5,494 | $ | 5,305 | ||||
Receivables, net | 883 | 1,061 | 906 | |||||||
Merchandise inventories | 6,417 | 5,612 | 4,136 | |||||||
Other current assets | 400 | 373 | 336 | |||||||
Total current assets | 12,040 | 12,540 | 10,683 | |||||||
Property and equipment, net | 2,226 | 2,260 | 2,277 | |||||||
Operating lease assets | 2,670 | 2,612 | 2,770 | |||||||
Goodwill | 986 | 986 | 986 | |||||||
Other assets | 657 | 669 | 696 | |||||||
Total assets | $ | 18,579 | $ | 19,067 | $ | 17,412 | ||||
Liabilities and equity | ||||||||||
Current liabilities | ||||||||||
Accounts payable | $ | 6,946 | $ | 6,979 | $ | 6,613 | ||||
Unredeemed gift card liabilities | 293 | 317 | 267 | |||||||
Deferred revenue | 854 | 711 | 699 | |||||||
Accrued compensation and related expenses | 605 | 725 | 253 | |||||||
Accrued liabilities | 892 | 972 | 893 | |||||||
Short-term debt | 110 | 110 | - | |||||||
Current portion of operating lease liabilities | 643 | 693 | 674 | |||||||
Current portion of long-term debt | 14 | 14 | 681 | |||||||
Total current liabilities | 10,357 | 10,521 | 10,080 | |||||||
Long-term operating lease liabilities | 2,090 | 2,012 | 2,206 | |||||||
Long-term debt | 1,243 | 1,253 | 632 | |||||||
Long-term liabilities | 554 | 694 | 716 | |||||||
Contingencies (Note 11) | ||||||||||
Equity | ||||||||||
Preferred stock, $1.00 par value: Authorized - 400,000 shares; Issued and | ||||||||||
outstanding - none | - | - | - | |||||||
Common stock, $0.10 par value: Authorized - 1.0 billion shares; Issued and | ||||||||||
outstanding - 247.3 million, 256.9 million and 258.8 million shares, respectively | 25 | 26 | 26 | |||||||
Additional paid-in capital | - | - | 83 | |||||||
Retained earnings | 3,975 | 4,233 | 3,413 | |||||||
Accumulated other comprehensive income | 335 | 328 | 256 | |||||||
Total equity | 4,335 | 4,587 | 3,778 | |||||||
Total liabilities and equity | $ | 18,579 | $ | 19,067 | $ | 17,412 |
NOTE: The Consolidated Balance Sheet as of January 30, 2021, has been condensed from the audited consolidated financial statements.
See Notes to Condensed Consolidated Financial Statements.
3
Condensed Consolidated Statements of Earnings
$ and shares in millions, except per share amounts (unaudited)
Three Months Ended | Six Months Ended | ||||||||||||
July 31, 2021 | August 1, 2020 | July 31, 2021 | August 1, 2020 | ||||||||||
Revenue | $ | 11,849 | $ | 9,910 | $ | 23,486 | $ | 18,472 | |||||
Cost of sales | 9,039 | 7,640 | 17,961 | 14,237 | |||||||||
Gross profit | 2,810 | 2,270 | 5,525 | 4,235 | |||||||||
Selling, general and administrative expenses | 2,009 | 1,702 | 3,997 | 3,437 | |||||||||
Restructuring charges | 4 | - | (38) | 1 | |||||||||
Operating income | 797 | 568 | 1,566 | 797 | |||||||||
Other income (expense) | |||||||||||||
Investment income and other | 3 | 8 | 6 | 14 | |||||||||
Interest expense | (6) | (15) | (12) | (32) | |||||||||
Earnings before income tax expense and equity in income of affiliates | 794 | 561 | 1,560 | 779 | |||||||||
Income tax expense | 64 | 129 | 236 | 188 | |||||||||
Equity in income of affiliates | 4 | - | 5 | - | |||||||||
Net earnings | $ | 734 | $ | 432 | $ | 1,329 | $ | 591 | |||||
Basic earnings per share | $ | 2.93 | $ | 1.67 | $ | 5.28 | $ | 2.28 | |||||
Diluted earnings per share | $ | 2.90 | $ | 1.65 | $ | 5.22 | $ | 2.26 | |||||
Weighted-average common shares outstanding | |||||||||||||
Basic | 250.2 | 259.5 | 251.7 | 259.0 | |||||||||
Diluted | 252.8 | 262.1 | 254.7 | 261.4 |
See Notes to Condensed Consolidated Financial Statements.
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Condensed Consolidated Statements of Comprehensive Income | |||||||||||||
$ in millions (unaudited) | |||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
July 31, 2021 | August 1, 2020 | July 31, 2021 | August 1, 2020 | ||||||||||
Net earnings | $ | 734 | $ | 432 | $ | 1,329 | $ | 591 | |||||
Foreign currency translation adjustments, net of tax | (3) | 17 | 7 | (35) | |||||||||
Cash flow hedges | - | (4) | - | (4) | |||||||||
Comprehensive income | $ | 731 | $ | 445 | $ | 1,336 | $ | 552 |
See Notes to Condensed Consolidated Financial Statements.
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Best Buy Co. Inc. published this content on 01 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 September 2021 00:11:02 UTC.