Best Buy 2011 Annual Report Download - page 74

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Notes to Consolidated Financial Statements
$ in millions, except per share amounts or as otherwise noted
1. Summary of Significant Accounting Policies
Description of Business
Unless the context otherwise requires, the use of the terms ‘‘we,’’ ‘‘us’’ and ‘‘our’’ in these notes to consolidated financial
statements refers to Best Buy Co., Inc. and, as applicable, its consolidated subsidiaries. We are a multinational retailer of
consumer electronics, home office products, entertainment products, appliances and related services.
We operate two reportable segments: Domestic and International. The Domestic segment is comprised of store, call center
and online operations in all states, districts and territories of the U.S., operating under the brand names Best Buy, Best Buy
Mobile, Geek Squad, Magnolia Audio Video, Napster and Pacific Sales. U.S. Best Buy stores offer a wide variety of
consumer electronics, home office products, entertainment products, appliances and related services. Best Buy Mobile
offers a wide selection of mobile phones, accessories and related services. Geek Squad provides residential and
commercial computer repair, support and installation services. Magnolia Audio Video stores offer high-end audio and
video products and related services. Napster is an online provider of digital music. Pacific Sales stores offer high-end
home-improvement products including appliances, consumer electronics and related services.
The International segment is comprised of: (i) all Canada store, call center and online operations, operating under the
brand names Best Buy, Best Buy Mobile, Cell Shop, Connect Pro, Future Shop and Geek Squad, (ii) all Europe store, call
center and online operations, operating under the brand names Best Buy, The Carphone Warehouse, The Phone House
and Geek Squad, (iii) all China store, call center and online operations, operating under the brand names Best Buy, Geek
Squad and Five Star, (iv) all Mexico store operations operating under the brand names Best Buy and Geek Squad and
(v) all Turkey store operations, operating under the brand names Best Buy and Geek Squad. Our International segment
offers products and services similar to those of our U.S. Best Buy stores. However, Best Buy Canada stores do not carry
appliances and Best Buy China and Five Star stores do not carry entertainment products. Further, our small-format stores
and offerings in Europe are similar to our Best Buy Mobile format and offerings in the U.S., primarily offering mobile
phones, voice and data service plans, and related accessories and services.
In support of our retail store operations, we also maintain Web sites for each of our brands including, but not limited to,
BestBuy.com, BestBuy.ca, BestBuy.co.uk, BestBuyMobile.com, CarphoneWarehouse.com, Five-Star.cn, FutureShop.ca,
Napster.com, and PhoneHouse.com.
Basis of Presentation
The consolidated financial statements include the accounts of Best Buy Co., Inc. and its consolidated subsidiaries.
Investments in unconsolidated entities over which we exercise significant influence but do not have control are accounted
for using the equity method. We have eliminated all intercompany accounts and transactions.
In order to align our fiscal reporting periods and comply with statutory filing requirements in certain foreign jurisdictions,
we consolidate the financial results of our Europe, China, Mexico and Turkey operations on a two-month lag. Our policy
is to accelerate recording the effect of events occurring in the lag period that significantly affect our consolidated financial
statements. Except for our fiscal 2011 restructuring, for which we recorded the effects of certain restructuring charges, no
significant intervening event occurred in these operations that would have materially affected our financial condition,
results of operations, liquidity or other factors had it been recorded during fiscal 2011. Accordingly, the $171 of
restructuring charges related to our International segment were included in our fiscal 2011 results. For further information
about our fiscal 2011 restructuring and the nature of the charges we recorded, refer to Note 5, Restructuring Charges.
In preparing the accompanying consolidated financial statements, we evaluated the period from February 27, 2011
through the date the financial statements were issued for material subsequent events requiring recognition or disclosure.
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