Best Buy 2015 Annual Report Download - page 99

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Table of Contents
92
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 pending the close of discovery in the consolidated IBEW Local 98 Pension Fund v. Best Buy Co., Inc., et al.
case.
The plaintiffs in the above securities actions seek damages, including interest, equitable relief and reimbursement of the costs
and expenses they incurred in the lawsuits. As stated above, we believe the allegations in the above securities actions are
without merit, and we intend to defend these actions vigorously. Based on our assessment of the facts underlying the claims in
the above securities actions, their respective procedural litigation history, and the degree to which we intend to defend our
company in these matters, the amount or range of reasonably possible losses, if any, cannot be estimated.
Cathode Ray Tube Action
On November 14, 2011, we filed a lawsuit captioned In re Cathode Ray Tube Antitrust Litigation in the United States District
Court for the Northern District of California. We allege that the defendants engaged in price fixing in violation of antitrust
regulations relating to cathode ray tubes for the time period between March 1, 1995 through November 25, 2007. No trial date
has been set. In connection with this action, we received settlement proceeds net of legal expenses and costs in the amount of
$67 million in the first quarter of fiscal 2016. We will continue to litigate against the remaining defendants and expect further
settlement discussions as this matter proceeds; however, it is uncertain whether we will recover additional settlement sums or a
favorable verdict at trial.
Other Legal Proceedings
We are involved in various other legal proceedings arising in the normal course of conducting business. For such legal
proceedings, we have accrued an amount that reflects the aggregate liability deemed probable and estimable, but this amount is
not material to our consolidated financial position, results of operations or cash flows. Because of the preliminary nature of
many of these proceedings, the difficulty in ascertaining the applicable facts relating to many of these proceedings, the variable
treatment of claims made in many of these proceedings and the difficulty of predicting the settlement value of many of these
proceedings, we are not able to estimate an amount or range of any reasonably possible additional losses. However, based upon
our historical experience, the resolution of these proceedings is not expected to have a material effect on our consolidated
financial position, results of operations or cash flows.
Commitments
We engage Accenture LLP ("Accenture") to assist us with improving our operational capabilities and reducing our costs in the
information systems and human resources areas. We expect our future contractual obligations to Accenture to range from $17
million to $89 million per year through fiscal 2018, the end of the periods under contract.
We had outstanding letters of credit and bankers' acceptances for purchase obligations with an aggregate fair value of $100
million at January 31, 2015.