Best Buy 2011 Annual Report Download - page 57

The following table presents information regarding our contractual obligations by fiscal year ($ in millions):
Payments Due by Period
Less Than More Than
Contractual Obligations Total 1 Year 1-3 Years 3-5 Years 5 Years
Short-term debt obligations $ 557 $ 557 $ — $ — $ —
Long-term debt obligations 903 402 500 — 1
Capital lease obligations 79 14 27 20 18
Financing lease obligations 170 25 47 45 53
Interest payments 686 128 183 127 248
Operating lease obligations(1) 8,247 1,208 2,245 1,864 2,930
Purchase obligations(2) 1,989 1,135 446 393 15
Unrecognized tax benefits(3) 359
Deferred compensation(4) 64
Total $13,054 $3,469 $3,448 $2,449 $3,265
Note: For additional information refer to Note 6, Debt; Note 9, Leases; Note 11, Income Taxes and Note 13, Contingencies and
Commitments, in the Notes to Consolidated Financial Statements, included in Item 8, Financial Statements and Supplementary Data, of
this Annual Report on Form 10-K.
(1) Operating lease obligations do not include payments to landlords covering real estate taxes and common area maintenance. These
charges, if included, would increase total operating lease obligations by $2.2 billion at February 26, 2011.
(2) Purchase obligations include agreements to purchase goods or services that are enforceable, are legally binding and specify all
significant terms, including fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the
approximate timing of the transaction. Purchase obligations do not include agreements that are cancelable without penalty.
Additionally, although they are not legally binding agreements, we included open purchase orders in the table above. Substantially
all open purchase orders are fulfilled within 30 days.
(3) Unrecognized tax benefits relate to uncertain tax positions recorded under accounting guidance that we adopted on March 4, 2007.
As we are not able to reasonably estimate the timing of the payments or the amount by which the liability will increase or decrease
over time, the related balances have not been reflected in the ‘‘Payments Due by Period’’ section of the table.
(4) Included in other long-term liabilities on our consolidated balance sheet at February 26, 2011, was a $64 million obligation for
deferred compensation. As the specific payment dates for the deferred compensation are unknown, the related balances have not
been reflected in the ‘‘Payments Due by Period’’ section of the table.
Additionally, we have $2.5 billion in undrawn capacity on our credit facilities at February 26, 2011, which if drawn upon,
would be included as liabilities in our consolidated balance sheets.
Critical Accounting Estimates
Our consolidated financial statements are prepared in accordance with GAAP. In connection with the preparation of our
financial statements, we are required to make assumptions and estimates about future events, and apply judgments that
affect the reported amounts of assets, liabilities, revenue, expenses and the related disclosures. We base our assumptions,
estimates and judgments on historical experience, current trends and other factors that management believes to be
relevant at the time our consolidated financial statements are prepared. On a regular basis, we review the accounting
policies, assumptions, estimates and judgments to ensure that our financial statements are presented fairly and in
accordance with GAAP. However, because future events and their effects cannot be determined with certainty, actual results
could differ from our assumptions and estimates, and such differences could be material.
Our significant accounting policies are discussed in Note 1, Summary of Significant Accounting Policies, of the Notes to
Consolidated Financial Statements, included in Item 8, Financial Statements and Supplementary Data, of this Annual
Report on Form 10-K. We believe that the following accounting estimates are the most critical to aid in fully understanding
and evaluating our reported financial results, and they require our most difficult, subjective or complex judgments,
resulting from the need to make estimates about the effect of matters that are inherently uncertain. We have reviewed
these critical accounting estimates and related disclosures with the Audit Committee of our Board.
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