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4
PART I
Item 1. Business.
Unless the context otherwise requires, the use of the terms "we," "us" and "our" in this Annual Report on Form 10-K refers to
Best Buy Co., Inc. and, as applicable, its consolidated subsidiaries.
Description of Business
We were incorporated in the state of Minnesota in 1966 as Sound of Music, Inc. Today, we are a multi-national, multi-channel
retailer of technology products, including tablets and computers, televisions, mobile phones, large and small appliances,
entertainment products, digital imaging and related accessories. We also offer technology services – including technical
support, repair and installation – under the Geek Squad brand. We operate e-commerce operations, retail stores and call centers
and conduct operations under a variety of names, such as Best Buy (BestBuy.com, BestBuy.ca), Best Buy Mobile, Five Star,
Future Shop (FutureShop.ca), Geek Squad, Magnolia Audio Video and Pacific Sales. References to our website addresses do
not constitute incorporation by reference of the information contained on the websites.
Information About Our Segments and Geographic Areas
During fiscal 2014, we operated two reportable segments: Domestic and International. The Domestic segment is comprised of
the operations in all states, districts and territories of the U.S., operating under various brand names including, but not limited
to, Best Buy, Best Buy Mobile, Geek Squad, Magnolia Audio Video and Pacific Sales. We operate Best Buy Mobile stores-
within-a-store and offer Geek Squad services in all of our U.S. Best Buy stores. In addition, we operate Magnolia Home
Theater, Magnolia Design Center and Pacific Kitchen and Home store-within-a-store experiences in select U.S. Best Buy
stores, which we believe further enhance the unique product offerings and high-touch customer service provided in the stand-
alone stores.
On February 1, 2014, we sold mindSHIFT Technologies, Inc. (“mindSHIFT”). We had previously acquired mindSHIFT, a
managed service provider for small and mid-sized businesses, in fiscal 2012.
The International segment is comprised of: (i) all Canada operations, operating under the brand names Best Buy, Best Buy
Mobile, Cell Shop, Connect Pro, Future Shop and Geek Squad; (ii) all China operations, operating under the brand names Five
Star and Best Buy Mobile and (iii) all Mexico operations, operating under the brand names Best Buy, Best Buy Express and
Geek Squad. We operate Best Buy Mobile store-within-a-store concepts in all Best Buy branded stores in Canada, as well as in
select Five Star stores.
In fiscal 2009, we acquired a 50% controlling interest in Best Buy Europe Distributions Limited (“Best Buy Europe”), a
venture with Carphone Warehouse Group plc (“CPW”). On June 26, 2013, we sold our 50% ownership interest in Best Buy
Europe to CPW.
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 and Mexico operations on a one-month lag. Consistent with such
consolidation, the financial and non-financial information presented in this Annual Report on Form 10-K relative to our
Europe, China and Mexico operations is also presented on a one-month lag.
Financial information about our segments and geographic areas is included in Item 7, Management's Discussion and Analysis
of Financial Condition and Results of Operations, and Note 12, Segment and Geographic Information, of the Notes to
Consolidated Financial Statements, included in Item 8, Financial Statements and Supplementary Data, of this Annual Report
on Form 10-K.
Operations
Domestic Segment
Our Domestic segment is managed by a Domestic leadership team responsible for all areas of the business. The Domestic
segment operates a multi-channel platform that provides customers the ability to shop when and where they want, including
online and in our retail stores.