In this individual discussion forum, the annual report (Form 10-K) of Best Buy Co., Inc. as required by the Securities and Exchange Act of 1934 is reviewed placing focus on the financial statements and notes to those statements. A comparison to the statements in the annual report to those presented in the course text is provided noting similarities, differences, and possible concerns. Reflection on the review provides assessment of rationale for possible personal investment in the company. Financial Statements Operating in the United States, Canada and Mexico, Best Buy is a “leading specialty retailer of consumer electronics, computer software, home appliances, and home office products and service” (Kenney & Khanfar, 2011, p. 159). The Best …show more content…
More specifically, the extensive notes regarding the financial statements can be viewed in the annual report providing further details of the consolidated financial statements (Best Buy Co. Inc., 2017, pp. 58-95). The 2017 annual report also includes a Statement of Earnings, Statement of Income Comprehensive Income in lieu of the Income Statement, and a Statement of Shareholders Equity (pp. 54-56). This difference exists due to the extensive level of detail, but is needed as it provides the opportunity for the company’s leadership to present a discussion and analysis of the financial picture of the …show more content…
In a market that deals with ever-changing technology, product life cycle fluctuations, and tech-savvy consumers, the constant challenge is to effective manage the unpredictable nature of the business. The 2017 report noted “on-line and multi-channel retailers continue to focus on delivery services, with customers increasingly seeking faster, guaranteed delivery times and low-price or free shipping” (p. 7). Of particular interest are the pending legal matters that warrant further review. While Best Buy is involved with legal proceedings that arise during the normal course of business as to be expected with most large-scale companies, the 2017 annual report notes a number of pending matters filed by shareholders as well as a price fixing allegation filed by Best Buy claiming “violation of antitrust regulation” (p. 88). Lastly, Chairman and CEO, Hubert Joly, noted fiscal year 2017 was a “year of exploration and experimentation” (p. 9). This is reference to Best Buy’s focus and forecast of market size of the smart-home market. This market, with its apparent growth in creating compelling customer experiences, is a gamble, but one that the company is willing to invest heavily in