Best Buy 2013 Annual Report Download - page 21

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21
The following table summarizes the location, ownership status and total square footage of space utilized for distribution centers
and corporate offices of our International segment at the end of fiscal 2013 (11-month):
Square Footage
(in thousands) Square Footage
(in thousands)
Distribution Centers Leased Owned Principal Corporate Offices Leased Owned
Europe Throughout six European countries 218 — Acton, West London and throughout
Europe 828 —
Canada Brampton and Bolton, Ontario 1,763 — Burnaby, British Columbia 141 —
Vancouver, British Columbia 639 —
Five Star Jiangsu Province, China 957 — Nanjing, Jiangsu Province, China
(corporate office) 24 46
Throughout the Five Star retail chain 758 — District offices throughout the Five
Star retail chain 174 —
Mexico Estado de Mexico, Mexico 45 — Distrito Federal, Mexico 21 —
Exclusive Brands
We lease approximately 52,000 square feet of office space in China to support our exclusive brands operations.
Operating Leases
Almost all of our stores and a majority of our distribution facilities are leased. Terms of the lease agreements generally range
from 10 to 20 years. Most of the leases contain renewal options and rent escalation clauses.
Additional information regarding our operating leases is available in Note 11, Leases, of the Notes to Consolidated Financial
Statements, included in Item 8, Financial Statements and Supplementary Data, of this Transition Report on Form 10-K.
Item 3. Legal Proceedings.
Securities Actions
In February 2011, a purported class action lawsuit captioned, IBEW Local 98 Pension Fund, individually and on behalf of all
others similarly situated v. Best Buy Co., Inc., et al., was filed against us and certain of our executive officers in the U.S.
District Court for the District of Minnesota. This federal court action alleges, among other things, that we and the officers
named in the complaint violated Sections 10(b) and 20A of the Exchange Act and Rule 10b-5 under the Exchange Act in
connection with press releases and other statements relating to our fiscal 2011 earnings guidance that had been made available
to the public. Additionally, in March 2011, a similar purported class action was filed by a single shareholder, Rene LeBlanc,
against us and certain of our executive officers in the same court. In July 2011, after consolidation of the IBEW Local 98
Pension Fund and Rene LeBlanc actions, a consolidated complaint captioned, IBEW Local 98 Pension Fund v. Best Buy Co.,
Inc., et al., was filed and served. We filed a motion to dismiss the consolidated complaint in September 2011, and in March
2012, subsequent to the end of fiscal 2012, the court issued a decision dismissing the action with prejudice. In April 2012, the
plaintiffs filed a motion to alter or amend the court's decision on our motion to dismiss. In October 2012, the court granted
plaintiff's motion to alter or amend the court's decision on our motion to dismiss in part by vacating such decision and giving
plaintiff leave to file an amended complaint, which plaintiff did in October 2012. We filed a motion to dismiss the amended
complaint in November 2012 and all responsive pleadings were filed in December 2012. A hearing is scheduled for April 26,
2013. The court's decision will be rendered thereafter.
In June 2011, a purported shareholder derivative action captioned, Salvatore M. Talluto, Derivatively and on Behalf of Best
Buy Co., Inc. v. Richard M. Schulze, et al., as Defendants and Best Buy Co., Inc. as Nominal Defendant, was filed against both
present and former members of our Board of Directors serving during the relevant periods in fiscal 2011 and us as a nominal
defendant in the U.S. District Court for the State of Minnesota. The lawsuit alleges that the director defendants breached their
fiduciary duty, among other claims, including violation of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, in
failing to correct public misrepresentations and material misstatements and/or omissions regarding our fiscal 2011 earnings
projections and, for certain directors, selling stock while in possession of material adverse non-public information.
Additionally, in July 2011, a similar purported class action was filed by a single shareholder, Daniel Himmel, against us and
certain of our executive officers in the same court. In November 2011, the respective lawsuits of Salvatore M. Talluto and
Daniel Himmel were consolidated into a new action captioned, In Re: Best Buy Co., Inc. Shareholder Derivative Litigation,
and a stay ordered until after a final resolution of the motion to dismiss in the consolidated IBEW Local 98 Pension Fund v.
Best Buy Co., Inc., et al. case.
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