Best Buy : 10Q PDF (1.81 MB)

(Mark One)

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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)

[phone]

(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.

Table of Contents

BEST BUY CO., INC.

FORM 10-Q FOR THE QUARTER ENDED July 31, 2021

TABLE OF CONTENTS

Part I - Financial Information

Item 1. Financial Statements

a) Condensed Consolidated Balance Sheets as of July 31, 2021, January 30, 2021, and August 1, 2020

1. Condensed Consolidated Statements of Earnings for the three and six months ended July 31, 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

1. 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

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Table of Contents

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.

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Table of Contents

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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												Table of Contents
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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