Minneapolis — Best Buy has delayed reporting its fiscal fourth-quarter and year-end earnings from today until April 1.
The retailer took this action to ensure that its financial information properly reflects the recent and favorable resolution of tax matters relating to the company’s former Musicland subsidiary, as well as other tax issues.
Best Buy did report that its results from discontinued operations for the fourth quarter, ended Feb. 26, will include a $50 million tax benefit related to Musicland. This benefit is a result of a final resolution, issued on March 25, of outstanding tax matters with the Internal Revenue Service. The tax benefit had not been included in the retailer’s previous earnings guidance.
Included in Best Buy’s fourth-quarter earnings will be not only the Musicland-related tax benefit, but also the favorable impact of resolving in the fourth quarter, other state and federal tax matters, as well as the unfavorable impact of an accounting adjustment made as a result of the retailer’s review of its leases. Both of the latter items will be included in earnings from discontinued operations.