Best Buy 2012 Annual Report Download - page 107

$ in millions, except per share amounts or as otherwise noted
107
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 $155
to $205 per year through 2016, 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 $561 at
March 3, 2012.
At March 3, 2012, we had commitments for the purchase and construction of facilities valued at approximately $21. Also, at
March 3, 2012, we had entered into lease commitments for land and buildings for 15 future locations. These lease commitments
with real estate developers provide for minimum rentals ranging from 5 to 15 years, which if consummated based on current
cost estimates, will approximate $3 annually over the initial lease terms. These minimum rentals are reported in the future
minimum lease payments included in Note 11, Leases.
16. Related Party Transactions
Best Buy Europe had the following related party transactions and balances with CPW and Carphone Warehouse in fiscal 2012,
2011 and 2010:
2012 2011 2010
Payment made to Carphone Warehouse for their share of the profit share agreement buy-
out (see Note 2, Profit Share Buy-Out) $ 1,303 $ — $ —
Revenue earned (primarily commission revenue and fees for information technology
services provided to CPW and Carphone Warehouse) — 6 63
SG&A incurred (primarily payroll-related costs and rent paid to CPW and Carphone
Warehouse) 20 8 6
Interest expense incurred on credit facility with CPW and Carphone Warehouse as lender 1 1 4
Accounts payable to CPW and Carphone Warehouse at the end of the fiscal year — — 4
Accounts receivable from CPW and Carphone Warehouse at the end of the fiscal year 1 2 31
Balance outstanding on credit facility from CPW and Carphone Warehouse at the end of
the fiscal year (see Note 8, Debt) — 98 206
As part of the strategic changes in respect of Best Buy Europe, we entered into an Option Agreement with Carphone
Warehouse. The agreement grants each party a call option to acquire the other party's interest in Best Buy Europe, and both
options will become exercisable in March 2015. We have the first opportunity to exercise our call option to purchase Carphone
Warehouse's interest at fair value. If we choose not to exercise our call option, Carphone Warehouse will have the right to
purchase our interest at a 10% discount to fair value. If neither party exercises their call option, further options will be
exercisable every three years thereafter until one party decides to exercise their option, although Carphone Warehouse will no
longer be entitled to the 10% discount. The fair value of the call options is nominal as of March 3, 2012.