BEST BUY

Best Buy Annual Report 2012 Analysis

Introduction

Best Buy is a multinational retailer of consumer electronics, computing and mobile phone products, entertainment products, appliances and related services.

Online retail operations under a variety of brand names.

Best Buy operates in two reportable segments: Domestic (1,447 stores): All states, districts and territories of the U.S International (2,861): Canada, Europe, China, Mexico Best Buys common stock- New York Stock Exchange (BBY)

(1)

(2)

FINANCIAL SUMMARY

Fiscal 2012: Revenue increased 1.9%, revenue for 2012 was $ 50,705 compare to 2011 $ 49,747. Operating income is 1,085 for 2012 and 2,374 for 2011

Gross profit rate is 24.8 %

Current ratio was 1.2 for 2010, 2011 and 2012. Net loss of $1.2 billion compared to net earnings of $1.3 billion in fiscal 2011

$1.2 billion of cash and cash equivalents, compared to $1.1 billion at 2011.

International segment's operating loss for fiscal 2012 is a $1.2 billion goodwill impairment charge.
Operating cash flow increased to $3.3 billion in fiscal 2012 compared to 2011 of $1.2 billion. Best buy made few dividend payments:$0.62 per share or $228 million Best buy repurchased and retired 54.6 million shares of Best buy common stock for $1.5 billion

INTERNAL CONTROL

Best Buys internal control is designed under the supervision of Best Buys principal executive officer and principal financial officer, and effected by Best Buy Board, management and other personnel in accordance with GAAP. Using criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control Integrated Framework, as of March 3, 2012, assessment of internal control was done by Best Buy.

Management did not identify any material weakness in internal control over financial reporting.

Deloitte & Touch LLP: The independent registered public accounting firm audited Best Buy consolidated financial statements for the year ended March 3, 2012 They issued an unqualified attestation report on Best Buy internal control over financial reporting as of March 3, 2012. They have audited the internal control based on criteria established in Internal Control- Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Auditors conducted Best Buy audit in accordance with the standards of the Public Company Accounting Oversight Board (United States).

SAS No. 114

SAS#114: AU Section 380-The Auditors Communication with

those Charged with Governance. Effective for audits of financial statements for periods beginning on or after December 15, 2006.

Provides guidance on the auditor's communication with those charged with governance and recognizes importance of effective two-way communication to the audit
It helps to obtain information relevant to the audit from those charged with governance.

The auditor should communicate the auditor's responsibilities under generally accepted auditing standards Auditors should also discuss any disagreements with management Evaluate the two-way communication between the auditor and those charged with governance for adequacy Documentation of oral communication