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Table of Contents
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. Any references to our website addresses do not constitute
incorporation by reference of the information contained on the websites.
Description of Business
We were incorporated in the state of Minnesota in 1966 as Sound of Music, Inc. Today, we are a leading provider of technology
products, services and solutions. We offer expert service at unbeatable price more than 1.5 billion times a year to the
consumers, small business owners and educators who visit our stores, engage with Geek Squad agents or use our websites or
mobile applications. We have retail and online operations in the U.S., Canada and Mexico.
Information About Our Segments and Geographic Areas
We have 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 e-commerce, retail store and call center operations under various brand
names including, but not limited to, Best Buy (bestbuy.com), 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 range of product offerings and quality of
expert customer service.
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 e-commerce and retail store operations under
the brand names Best Buy (bestbuy.ca), Best Buy Mobile, Cell Shop, Future Shop (futureshop.ca) and Geek Squad; and (ii) all
Mexico operations, operating under the brand names Best Buy (bestbuy.com.mx), Best Buy Express and Geek Squad. We
operate Best Buy Mobile store-within-a-store concepts in all Best Buy branded stores in Canada.
In March 2015, we made a decision to consolidate Future Shop and Best Buy stores and websites in Canada under the Best Buy
brand. This resulted in permanently closing 66 Future Shop stores and converting 65 Future Shop stores to the Best Buy brand.
Additional information on these changes is included in Item 7, Management's Discussion and Analysis of Financial Condition
and Results of Operations, and Note 13, Subsequent Events, of the Notes to Consolidated Financial Statements, included in
Item 8, Financial Statements and Supplementary Data, of this Annual Report on Form 10-K.
In fiscal 2007, we acquired a 75% interest in Jiangsu Five Star Appliance Co., Ltd. (“Five Star”), one of China’s largest
appliance and consumer electronics retailers. In fiscal 2009, we acquired the remaining 25% interest in Five Star. On December
3, 2014, we entered into an agreement to sell Five Star, and we completed the sale on February 13, 2015. 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.
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 11, 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
Our Domestic and International segments are managed by leadership teams responsible for all areas of the business. Both
segments operate a multi-channel platform that provides customers the ability to shop when and where they want, including
online and in our retail stores.