Best Buy 2008 Annual Report Download - page 37

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would have materially affected our financial condition,
Item 7. Management’s Discussion and
results of operations, liquidity or other factors had it been
Analysis of Financial Condition and Results
recorded during fiscal 2008.
of Operations.
Our MD&A should be read in conjunction with the
We believe transparency and clarity are the primary goals Consolidated Financial Statements and related Notes
of successful financial reporting. We remain committed to included in Item 8, Financial Statements and
increasing the transparency of our financial reporting, Supplementary Data, of this Annual Report on Form 10-K.
providing our shareholders with informative financial
Our fiscal year ends on the Saturday nearest the end of
disclosures and presenting an accurate view of our
February. Fiscal 2008 and 2006 each included 52 weeks,
financial position and operating results.
whereas our fiscal 2007 included 53 weeks.
In accordance with Section 404 of the Sarbanes-Oxley Act
of 2002, our management, including our Chief Executive Overview
Officer and Chief Financial Officer, conducted an
Best Buy is a specialty retailer of consumer electronics,
evaluation of our internal control over financial reporting
home office products, entertainment software, appliances
and concluded that such control was effective as of
and related services.
March 1, 2008. Management’s report on the effectiveness
of our internal control over financial reporting and the We operate two reportable segments: Domestic and
related report of our independent registered public International. The Domestic segment is comprised of all
accounting firm are included in Item 8, Financial store, call center and online operations, including Best
Statements and Supplementary Data, of this Annual Report Buy, Best Buy Mobile, Geek Squad, Magnolia Audio
on Form 10-K. Video, Pacific Sales and Speakeasy located within the
U.S. and its territories. U.S. Best Buy stores offer a wide
Management’s Discussion and Analysis of Financial
variety of consumer electronics, home office products,
Condition and Results of Operations (‘‘MD&A’’) is
entertainment software, appliances and related services,
intended to provide a reader of our financial statements
operating 923 stores in 49 states, the District of Columbia
with a narrative from the perspective of our management
and Puerto Rico at the end of fiscal 2008. Best Buy
on our financial condition, results of operations, liquidity
Mobile offers a wide selection of mobile phones,
and certain other factors that may affect our future results.
accessories and services through nine stand-alone stores
Our MD&A is presented in eight sections:
located in New York and North Carolina, as well as in
• Overview 181 U.S. Best Buy stores at the end of fiscal 2008. Geek
• Business Strategy and Core Philosophies Squad offers residential and commercial computer repair,
support and installation services in all U.S. Best Buy stores
• Results of Operations and seven stand-alone stores at the end of fiscal 2008.
• Liquidity and Capital Resources Magnolia Audio Video stores offer high-end audio and
video products and related services from 13 stores located
• Off-Balance-Sheet Arrangements and Contractual
in California, Oregon and Washington, as well as through
Obligations
346 Magnolia Home Theater rooms located in U.S. Best
• Critical Accounting Estimates Buy stores at the end of fiscal 2008. Pacific Sales stores
offer high-end home-improvement products including
• New Accounting Standards
appliances, consumer electronics and related services,
• Outlook for Fiscal 2009 operating 19 stores in California at the end of fiscal
We consolidate the financial results of our China 2008. Speakeasy provides broadband voice, data and
operations on a two-month lag. Consistent with such information technology services to home and small
consolidation, the financial and non-financial information business users through a network of experienced sales
presented in our MD&A relative to our China operations is associates.
also presented on a two-month lag. No significant
intervening event occurred in our China operations that
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