8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC  20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) August 14, 2003

BEST BUY CO., INC.
(Exact name of registrant as specified in its charter)

Minnesota (State or other jurisdiction of incorporation)	1-9595 (Commission File Number)	41-0907483 (IRS Employer Identification No.)
7601 Penn Avenue South Richfield, Minnesota (Address of principal executive offices)		55423 (Zip Code)

Registrant’s telephone number, including area code (612) 291-1000

N/A
(Former name or former address, if changed since last report)

Item 7. Financial Statements and Exhibits.

(c) Exhibits.

The following supplemental historical financial statements and schedules are furnished as Exhibits to this Report and reflect (a) the classification of Musicland as discontinued operations and (b) the change in the registrant’s method of accounting for vendor allowances, in each case, as if such changes were in effect as of and for the dates indicated. This supplemental historical information is being furnished voluntarily in order to facilitate analysis by investors and other users of the registrant’s financial statements.

Exhibit No.	Description of Exhibit
99.1	Consolidated Condensed Balance Sheets as of August 31, 2002, and November 30, 2002.
99.2	Consolidated Statements of Earnings for the three and six months ended August 31, 2002.
99.3	Consolidated Statements of Earnings for the three and nine months ended November 30, 2002.
99.4	Consolidated Statements of Cash Flows for the six and nine months ended August 31, 2002, and November 30, 2002.
99.5	Fiscal 2003 business segment financial information for continuing operations.

Item 9. Regulation FD Disclosure.

During the fourth quarter of fiscal 2003, the registrant committed to a plan to sell its interest in The Musicland Group, Inc. (Musicland). In accordance with accounting principles generally accepted in the United States, Musicland’s operating results were classified and reported separately for the year ended March 1, 2003, as discontinued operations. Also during the fourth quarter of fiscal 2003, the registrant changed its method of accounting for vendor allowances with the change accounted for as a cumulative effect of a change in accounting principle. On March 31, 2003, the registrant issued a news release that provided comparative consolidated statements of earnings for the first three quarters of fiscal 2003, the fourth quarter of fiscal 2002 and fiscal year 2002. Similar comparative consolidated statements of earnings for the fourth quarter of fiscal 2003 and fiscal year 2003 were included in a separate news release issued on April 1, 2003. The full text of the aforementioned news releases were also contained in separate Current Reports on Form 8-K filed with the Securities and Exchange Commission on April 3, 2003, and April 7, 2003, respectively.

Pursuant to Item 9, “Regulation FD Disclosure,” Best Buy Co., Inc. is furnishing supplemental historical financial information including: Consolidated Condensed Balance Sheets as of August 31, 2002, and November 30, 2002; Consolidated Statements of Earnings for the three and six months ended August 31, 2002; Consolidated Statements of Earnings for the three and nine months ended November 30, 2002; Consolidated Statements of Cash Flows for the six and nine months ended August 31, 2002, and November 30, 2002; and fiscal 2003 business segment financial information for continuing operations. The supplemental historical financial statements and schedules are being furnished in order to facilitate analysis by investors and other users of the registrant’s financial statements. The financial information referred to above is included as Exhibit Nos. 99.1-99.5 to this Report and is also available on the registrant’s Web site by clicking on the “For Our Investors” link.

Best Buy Co., Inc.’s Web site (www.bestbuy.com) contains important information about the registrant, including financial and other information for investors. The registrant encourages investors periodically to visit its Web site, as information is updated and new information is posted.

Best Buy Co., Inc.’s Annual Report to Shareholders and its reports on Forms 10-K, 10-Q and 8-K and other publicly available information should be consulted for other important information about the registrant.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	BEST BUY CO., INC.
	(Registrant)
Date: August 14, 2003	By:	/s/ Darren R. Jackson
	Darren R. Jackson
	Executive Vice President — Finance and
	Chief Financial Officer

EX-99.1

Exhibit 99.1

Best Buy Co., Inc.
Supplemental Historical Information*
Consolidated Condensed Balance Sheets
($ in millions)
(Unaudited)

Assets	Aug. 31, 2002		Nov. 30, 2002
Current Assets
Cash and cash equivalents	$	1,114	$	1,149
Receivables	235		575
Recoverable costs from developed properties	58		35
Merchandise inventories	2,133		3,423
Other current assets	125		131
Current assets of discontinued operations	459		605
Total current assets	4,124		5,918
Property and Equipment
Property and equipment	2,824		3,000
Less accumulated depreciation and amortization	907		975
Net property and equipment	1,917		2,025
Goodwill, Net	410		407
Intangible Assets	—		32
Other Assets	92		96
Noncurrent Assets of Discontinued Operations	261		260
Total Assets	$	6,804	$	8,738

Liabilities and Shareholders’ Equity	Aug. 31, 2002		Nov. 30, 2002
Current Liabilities
Accounts payable	$	2,081	$	3,674
Accrued compensation and related expenses	155		175
Accrued liabilities	614		726
Accrued income taxes	96		122
Current portion of long-term debt	6		2
Current liabilities of discontinued operations	391		533
Total current liabilities	3,343		5,232
Long-Term Liabilities	296		276
Long-Term Debt	821		822
Noncurrent Liabilities of Discontinued Operations	18		19
Shareholders’ Equity	2,326		2,389
Total Liabilities and Shareholders’ Equity	$	6,804	$	8,738

*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, in each case, as if such changes were in effect as of and for the dates indicated. Certain other amounts have been reclassified to conform to the current year’s presentation.

EX-99.2

Exhibit 99.2

Best Buy Co., Inc.
Supplemental Historical Information*
Consolidated Statements of Earnings
($ in millions, except per share amounts)
(Unaudited)

	Three Months Ended			Six Months Ended
	Aug. 31, 2002			Aug. 31, 2002
Revenue	$	4,624		$	8,826
Cost of goods sold	3,471			6,593
Gross profit	1,153			2,233
Selling, general and administrative expenses	1,024			1,975
Operating income	129			258
Net interest expense	2			1
Earnings from continuing operations before income tax expense	127			257
Income tax expense	48			99
Earnings from continuing operations	79			158
Loss from discontinued operations, net of tax	(17		)	(347		)
Cumulative effect of change in accounting principle for goodwill, net of $24 tax	—			(40		)
Cumulative effect of change in accounting principle for vendor allowances, net of $26 tax	—			(42		)
Net earnings (loss)	$	62		$	(271	)
Basic earnings (loss) per share:
Continuing operations	$	0.24		$	0.49
Discontinued operations	(0.05		)	(1.08		)
Cumulative effect of accounting changes	—			(0.25		)
Basic earnings (loss) per share	$	0.19		$	(0.85	)
Diluted earnings (loss) per share:
Continuing operations	$	0.24		$	0.48
Discontinued operations	(0.05		)	(1.07		)
Cumulative effect of accounting changes	—			(0.25		)
Diluted earnings (loss) per share	$	0.19		$	(0.83	)
Basic weighted average common shares outstanding (in millions)	321.3			320.7
Diluted weighted average common shares outstanding (in millions)	324.5			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, in each case, as if such changes were in effect as of and for the dates indicated.

EX-99.3

Exhibit 99.3

Best Buy Co., Inc.

Supplemental Historical Information*
Consolidated Statements of Earnings
($ in millions, except per share amounts)
(Unaudited)

	Three Months Ended			Nine Months Ended
	Nov. 30, 2002			Nov. 30, 2002
Revenue	$	5,131		$	13,957
Cost of goods sold	3,881			10,474
Gross profit	1,250			3,483
Selling, general and administrative expenses	1,110			3,085
Operating income	140			398
Net interest expense	—			1
Earnings from continuing operations before income tax expense	140			397
Income tax expense	54			153
Earnings from continuing operations	86			244
Loss from discontinued operations, net of tax	(27		)	(374		)
Cumulative effect of change in accounting principle for goodwill, net of $24 tax	—			(40		)
Cumulative effect of change in accounting principle for vendor allowances, net of $26 tax	—			(42		)
Net earnings (loss)	$	59		$	(212	)
Basic earnings (loss) per share:
Continuing operations	$	0.27		$	0.76
Discontinued operations	(0.08		)	(1.17		)
Cumulative effect of accounting changes	—			(0.25		)
Basic earnings (loss) per share	$	0.18		$	(0.66	)
Diluted earnings (loss) per share:
Continuing operations	$	0.27		$	0.75
Discontinued operations	(0.08		)	(1.15		)
Cumulative effect of accounting changes	—			(0.25		)
Diluted earnings (loss) per share	$	0.18		$	(0.65	)
Basic weighted average common shares outstanding (in millions)	321.5			320.9
Diluted weighted average common shares outstanding (in millions)	324.1			324.9

*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, in each case, as if such changes were in effect as of and for the dates indicated.

EX-99.4

Exhibit 99.4

Best Buy Co., Inc.
Supplemental Historical Information*
Consolidated Statements of Cash Flows
($ in millions)
(Unaudited)

	Six Months Ended			Nine Months Ended
	Aug. 31, 2002			Nov. 30, 2002
Operating Activities
Net loss	$	(271	)	$	(212	)
Loss from discontinued operations, net of tax	347			374
Cumulative effect of change in accounting principles, net of tax	82			82
Earnings from continuing operations	158			244
Adjustments to reconcile earnings from continuing operations to net cash used in operating activities:
Depreciation	146			225
Deferred income taxes	(9		)	(14		)
Other	10			15
Changes in operating assets and liabilities, net of acquired assets and liabilities:
Receivables	(14		)	(354		)
Merchandise inventories	(322		)	(1,612		)
Other assets	(21		)	(32		)
Accounts payable	(125		)	1,465
Other liabilities	(4		)	95
Income taxes	(114		)	(71		)
Total cash used in operating activities from continuing operations	(295		)	(39		)
Investing Activities
Additions to property and equipment	(403		)	(598		)
Acquisition of business, net of cash acquired	—			(3		)
Decrease in recoverable costs from developed properties	21			44
Total cash used in investing activities from continuing operations	(382		)	(557		)
Financing Activities
Net proceeds from issuance of long-term debt	10			15
Long-term debt payments	(4		)	(12		)
Issuance of common stock	36			39
Total cash provided by financing activities from continuing operations	42			42
Net Cash Used in Discontinued Operations	(112		)	(158		)
Decrease in Cash and Cash Equivalents	(747		)	(712		)
Cash and Cash Equivalents at Beginning of Year	1,861			1,861
Cash and Cash Equivalents at End of Period	$	1,114		$	1,149

*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, in each case, as if such changes were in effect as of and for the dates indicated. Certain other amounts have been reclassified to conform to the current year’s presentation.

EX-99.5

Exhibit 99.5

Best Buy Co., Inc.
Supplemental Historical Information*
Fiscal 2003 Business Segment Financial Information for Continuing Operations
($ in millions)
(Unaudited)

	Three Months			Three Months
DOMESTIC SEGMENT	Ended Aug. 31, 2002			Ended Nov. 30, 2002
Revenue	$	4,286		$	4,707
Comparable store sales % change (1)	2.6		%	0.7		%
Gross profit as a % of revenue	24.9		%	24.4		%
SG&A as a % of revenue	21.9		%	21.2		%
Operating income	$	130		$	146
Operating income as a % of revenue	3.0		%	3.1		%

	Six Months			Nine Months
	Ended Aug. 31, 2002			Ended Nov. 30, 2002
Revenue	$	8,185		$	12,892
Comparable store sales % change (1)	4.4		%	3.1		%
Gross profit as a % of revenue	25.3		%	25.0		%
SG&A as a % of revenue	22.1		%	21.8		%
Operating income	$	265		$	411
Operating income as a % of revenue	3.2		%	3.2		%

	Three Months			Three Months
INTERNATIONAL SEGMENT	Ended Aug. 31, 2002			Ended Nov. 30, 2002
Revenue	$	338		$	424
Comparable store sales % change (1)	6.9		%	3.8		%
Gross profit as a % of revenue	25.3		%	24.4		%
SG&A as a % of revenue	25.6		%	25.7		%
Operating income	$	(1	)	$	(6	)
Operating income as a % of revenue	-0.3		%	-1.3		%

	Six Months			Nine Months
	Ended Aug. 31, 2002			Ended Nov. 30, 2002
Revenue	$	641		$	1,065
Comparable store sales % change (1)	8.0		%	6.4		%
Gross profit as a % of revenue	25.5		%	25.0		%
SG&A as a % of revenue	26.5		%	26.2		%
Operating income	$	(7	)	$	(13	)
Operating income as a % of revenue	-1.1		%	-1.2		%

⁽¹⁾ Includes 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 change excludes the impact of fluctuations in the foreign currency exchange rates. The calculation of the comparable store sales change excludes Musicland revenue, which is included in discontinued operations.

*Note: This presentation reflects: (a) the classification of Musicland as discontinued operations; and (b) the adoption of the accounting principle established in EITF No. 02-16, Accounting by a Reseller for Cash Consideration Received from a Vendor, in each case, as if such changes were in effect as of and for the dates indicated.