Best Buy 2008 Annual Report Download - page 28

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At the end of fiscal 2008, we operated 131 Future Shop generally range from 10 to 20 years. Most of the leases
stores, 51 Canada Best Buy stores, 160 Five Star stores contain renewal options and rent escalation clauses.
and one China Best Buy store, totaling approximately Additional information regarding our operating leases is
11.1 million retail square feet. available in Note 6, Leases, of the Notes to Consolidated
We lease approximately 1.1 million square feet of Financial Statements, included in Item 8, Financial
distribution center space in Brampton, Ontario, and Statements and Supplementary Data, of this Annual Report
approximately 0.4 million square feet of distribution center on Form 10-K.
space in Vancouver, British Columbia, to service our
Item 3. Legal Proceedings.
Canada operations.
On December 8, 2005, a purported class action lawsuit
We also lease approximately 1.0 million square feet of
captioned, Jasmen Holloway, et al. v. Best Buy Co., Inc.,
distribution center space in Jiangsu province, and an
was filed against us in the U.S. District Court for the
additional approximately 0.6 million square feet of
Northern District of California. This federal court action
distribution center space throughout the Five Star retail
alleges that we discriminate against women and minority
chain to support our Five Star distribution network. We
individuals on the basis of gender, race, color and/or
lease less than 0.1 million square feet of distribution
national origin in our stores with respect to our
center space in Shanghai to service our Best Buy China
employment policies and practices. The action seeks an
operations.
end to discriminatory policies and practices, an award of
The principal office for our Canada operations is located back and front pay, punitive damages and injunctive relief,
in a 141,000-square-foot leased facility in Burnaby, British including rightful place relief for all class members. We
Columbia. The principal office for our Five Star operations believe the allegations are without merit and intend to
is located in a 46,000-square-foot owned facility in defend this action vigorously.
Nanjing, Jiangsu. The principal office for our China Best
We are involved in various other legal proceedings arising
Buy operations is located in a 27,000-square-foot leased
in the normal course of conducting business. We believe
facility in Shanghai. In addition, our International
the amounts provided in our consolidated financial
operations lease a 4,000-square foot facility in Vancouver,
statements, as prescribed by GAAP, are adequate in light
British Columbia.
of the probable and estimable liabilities. The resolution of
those proceedings is not expected to have a material effect
Global Sourcing
on our results of operations or financial condition.
In support of our global sourcing initiative, we lease office
space in China totaling approximately 45,000 square feet
at the end of fiscal 2008.
Operating Leases
Almost all of our stores and a majority of our distribution
facilities are leased. Terms of the lease agreements
20