Best Buy 2011 Annual Report Download - page 120

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$ in millions, except per share amounts or as otherwise noted
17. Condensed Consolidating Financial Information
The rules of the U.S. Securities and Exchange Commission require that condensed consolidating financial information be
provided for a subsidiary that has guaranteed the debt of a registrant issued in a public offering, where the guarantee is
full and unconditional and where the voting interest of the subsidiary is 100% owned by the registrant. Our convertible
debentures, which had an aggregate principal balance and carrying amount of $402 at February 26, 2011, are jointly
and severally guaranteed by our 100%-owned indirect subsidiary Best Buy Stores, L.P. (‘‘Guarantor Subsidiary’’).
Investments in subsidiaries of Best Buy Stores, L.P., which have not guaranteed the convertible debentures (‘‘Non-
Guarantor Subsidiaries’’), are required to be presented under the equity method, even though all such subsidiaries meet
the requirements to be consolidated under GAAP.
Set forth below are condensed consolidating financial statements presenting the financial position, results of operations,
and cash flows of (i) Best Buy Co., Inc., (ii) the Guarantor Subsidiary, (iii) the Non-Guarantor Subsidiaries, and (iv) the
eliminations necessary to arrive at consolidated information for our company. The statement of earnings eliminations relate
primarily to the sale of inventory from a Non-Guarantor Subsidiary to the Guarantor Subsidiary. The balance sheet
eliminations relate primarily to the elimination of intercompany profit in inventory held by the Guarantor Subsidiary and
consolidating entries to eliminate intercompany receivables, payables and subsidiary investment accounts.
We file a consolidated U.S. federal income tax return. Income taxes are allocated in accordance with our tax allocation
agreement. U.S. affiliates receive no tax benefit for taxable losses, but are allocated taxes at the required effective income
tax rate if they have taxable income.
The following tables present condensed consolidating balance sheets as of February 26, 2011, and February 27, 2010,
and condensed consolidating statements of earnings and cash flows for the fiscal years ended February 26, 2011,
February 27, 2010, and February 28, 2009, and should be read in conjunction with the consolidated financial statements
herein.
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