Best Buy 2007 Annual Report Download - page 100

$ in millions, except per share amounts
85
PART II
Geographic Information
The following tables present our geographic information in fiscal 2007, 2006 and 2005:
2007 2006 2005
Net sales to customers
U.S. $31,031 $ 27,380 $24,616
Canada 4,340 3,468 2,817
China 563 — —
Total revenue $ 35,934 $ 30,848 $27,433
Long-lived assets
U.S. $ 2,487 $ 2,337 $ 2,157
Canada 333 375 307
China 118 — —
Total long-lived assets $ 2,938 $ 2,712 $ 2,464
12.Contingencies and Commitments
Contingencies
On December 8, 2005, a purported class action lawsuit
captioned, Jasmen Holloway, et al. v. Best Buy Co., Inc.,
was filed in the U.S. District Court for the Northern District
of California alleging we discriminate against women and
minority individuals on the basis of gender, race, color
and/or national origin with respect to our employment
policies and practices. The action seeks an end to
discriminatory policies and practices, an award of back and
front pay, punitive damages and injunctive relief, including
rightful place relief for all class members. As of March 3,
2007, no accrual had been established as it was not
possible to estimate the possible loss or range of loss
because this matter had not advanced to a stage where we
could make any such estimate. We believe the allegations
are without merit and intend to defend this action
vigorously.
We are involved in various other legal proceedings arising
in the normal course of conducting business. We believe
the amounts provided in our consolidated financial
statements, as prescribed by GAAP, are adequate in light of
the probable and estimable liabilities. The resolution of
those other proceedings is not expected to have a material
impact on our results of operations or financial condition.
Commitments
We engage Accenture LLP (“Accenture”) to assist us with
improving our operational capabilities and reducing our
costs in the information systems, procurement and human
resources areas. Our future contractual obligations to
Accenture are expected to range from $76 to $334 per year
through 2012, the end of the contract period. Prior to our
engagement of Accenture, a significant portion of these costs
were incurred as part of normal operations.
We had outstanding letters of credit for purchase
obligations with a fair value of $85 at March 3, 2007.
At March 3, 2007, we had commitments for the purchase
and construction of facilities valued at approximately $69.
Also, at March 3, 2007, we had entered into lease
commitments for land and buildings for 115 future
locations. These lease commitments with real estate
developers provide for minimum rentals ranging from seven
to 20 years, which if consummated based on current cost
estimates, will approximate $84 annually over the initial
lease terms. These minimum rentals have been included in
the future minimum lease payments included in Note 8,
Leases.
13.Related Party Transactions
Elliot S. Kaplan, a director, is a partner with the law firm of
Robins, Kaplan, Miller & Ciresi L.L.P. (“RKMC”), which
serves as our primary outside general counsel. Our Board
periodically reviews the fees paid to RKMC to ensure that
they are competitive with fees charged by other law firms
comparable in size and expertise. We paid legal fees of $9,
$7 and $6 to RKMC during fiscal 2007, 2006 and 2005,
respectively. In addition, RKMC earned a contingent fee of
$6 in fiscal 2005 in connection with the settlement of our
claims against two credit card companies, which we believe
resulted in a significantly greater recovery for us than we