Statement of Comprehensive Income
Comprehensive income is the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.
Best Buy Co. Inc., consolidated statement of comprehensive income
US$ in millions
Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).
The financial data reflects several key trends over the six-year period from 2017 to 2022. Net earnings exhibit a generally upward trajectory with some fluctuations, indicating overall growth in profitability. Starting at 1,228 million US dollars in 2017, net earnings slightly declined to 1,000 million in 2018 but then rose consistently through the following years, culminating in a significant increase to 2,454 million in 2022. This suggests improving operational performance or favorable market conditions contributing to higher net income.
Foreign currency translation adjustments demonstrate variability without a clear trend, indicating fluctuations in the effects of currency exchange rates on financial results. These adjustments ranged from a positive 35 million in 2018 to a negative 20 million in 2019, with smaller positive and negative values in other years, reflecting the impact of exchange rate movements on the company's foreign operations.
The cash flow hedges item appears only once in 2021, showing a small negative value of 2 million US dollars, which may indicate a minor loss related to risk management activities for that year.
A notable one-time event is observed in 2017 with a negative reclassification adjustment of 2 million US dollars and in 2021 with a positive adjustment of 39 million, which corresponds to the reclassification of cumulative translation adjustments into earnings due to the exit of a business. This indicates the financial impact of business restructuring or divestiture activities affecting comprehensive income.
Other comprehensive income/loss shows a pattern that closely mirrors the foreign currency translation adjustments with positive and negative values alternating over the years. The spike to 33 million in 2021 aligns with the positive reclassification adjustment, highlighting a considerable gain in other comprehensive income for that period.
Comprehensive income follows the general trend of net earnings, increasing from 1,236 million in 2017 to 2,455 million in 2022. This increase includes the effects of both net earnings and other comprehensive income components, suggesting that overall financial performance improved significantly over the period when considering all sources of income.
- Net Earnings:
- Generally increasing trend with a dip in 2018; highest value in 2022.
- Foreign Currency Translation Adjustments:
- Fluctuating values reflecting variable currency exchange impacts, no clear directional trend.
- Cash Flow Hedges:
- Minor negative impact noted in 2021 only.
- Reclassification of Cumulative Translation Adjustments:
- One-time negative adjustment in 2017 and significant positive adjustment in 2021 linked to business exit.
- Other Comprehensive Income (Loss):
- Mirrors currency adjustments, with a notable positive spike in 2021.
- Comprehensive Income:
- Steady increase over time, consistent with net earnings trend, indicating overall improved financial health.