Best Buy 2011 Annual Report Download - page 7

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Merchandise and Services
Domestic Segment
U.S. Best Buy stores and the related online channel have offerings in six revenue categories: consumer electronics, home
office, entertainment, appliances, services and other. Consumer electronics consists of video and audio products. Video
products include televisions, navigation products, digital cameras and accessories, digital camcorders and accessories,
e-Readers and DVD and Blu-ray players. Audio products consist of MP3 players and accessories, home theater audio
systems and components, musical instruments and mobile electronics such as car stereo and satellite radio products. The
home office revenue category includes notebook and desktop computers, tablets, monitors, mobile phones and related
subscription service commissions, hard drives, networking equipment and related accessories such as printers. The
entertainment revenue category includes video gaming hardware and software, DVDs, Blu-rays, CDs, digital downloads
and computer software. The appliances revenue category includes major appliances as well as small electrics. The services
revenue category consists primarily of service contracts, extended warranties, computer-related services, product repair,
and delivery and installation for home theater, mobile audio and appliances. The other revenue category includes non-
core offerings such as snacks and beverages.
U.S. Best Buy Mobile offerings are included in our home office revenue category. Revenue from U.S. Best Buy Mobile
stand-alone stores is primarily derived from mobile phone hardware, subscription service commissions from mobile phone
network operators and associated mobile phone accessories.
Magnolia Audio Video stores have offerings in two revenue categories: consumer electronics and services. Consumer
electronics consists of video and audio products. Video products include televisions, DVD and Blu-ray players and
accessories. Audio products include home theater audio systems and components, mobile electronics and accessories. The
services revenue category consists primarily of home theater system installation as well as extended warranties.
Pacific Sales stores have offerings in three revenue categories: appliances, consumer electronics and services. Appliances
consists of major appliances, evenly split between high-end and mass-market premium brands, and plumbing, which
consists of kitchen and bath fixtures including faucets, sinks, toilets and bath tubs. Consumer electronics consists of video
and audio products, including televisions and home theater systems. The services revenue category consists primarily of
extended warranties, installation and repair services.
International Segment
Our small-format The Carphone Warehouse and The Phone House stores in Europe have offerings in two revenue
categories: home office and services. Home office consists primarily of mobile phone hardware, subscription service
commissions from mobile phone network operators and associated mobile phone accessories. Services consists of device
insurance operations, providing protection primarily for the replacement of a lost, stolen or damaged handset, as well as
mobile and fixed-line telecommunication services, billing management services and Geek Squad repair services.
Our large-format Best Buy branded stores in the U.K. have offerings in six revenue categories: consumer electronics, home
office, entertainment, appliances, services and other, with products and services similar to those of our U.S. Best Buy
stores.
In Canada, the Future Shop and Best Buy branded stores have offerings in five revenue categories: consumer electronics,
home office, entertainment, services and other, and at Future Shop only, a sixth revenue category, appliances. Consumer
electronics consists of video and audio products. Video products include televisions, navigation products, digital cameras
and accessories, digital camcorders and accessories, e-Readers, and DVD and Blu-ray players. Audio products encompass
MP3 players and accessories, home theater audio systems and components, mobile electronics such as car stereo and
accessories. The home office revenue category includes notebook and desktop computers, tablets, monitors, mobile
phones and related subscription service commissions, hard drives, networking equipment and related accessories such as
printers. The entertainment revenue category includes video game hardware and software, DVDs, Blu-rays, CDs and
computer software. The appliances revenue category includes major appliances as well as small electrics. The services
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