Best Buy 2016 Annual Report Download - page 23

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We utilize complex information technology platforms to operate our websites and mobile applications. Disruptions to these
services, such as those caused by unforeseen traffic levels or other technical difficulties, could cause us to forego material
revenues and adversely affect our reputation with consumers.
We utilize third-party vendors for certain aspects of our business operations.
We engage key third-party business partners to support various functions of our business, including but not limited to,
information technology, web hosting and cloud-based services, human resource operations, customer loyalty programs,
promotional financing and customer loyalty credit cards, gift cards, customer warranty, technical support and insurance
programs. Any material disruption in our relationship with key third-party business partners or any disruption in the services or
systems provided or managed by third parties could impact our revenues and cost structure and hinder our operations,
particularly if a disruption occurs during peak revenue periods.
Our international activities are subject to many of the same risks as described above, as well as to risks associated with
the legislative, judicial, regulatory, political and economic factors specific to the countries or regions in which we
operate.
We operate retail locations in Canada and Mexico. In addition, we have wholly owned legal entities registered in various other
foreign countries, including Bermuda, China, Germany, Hong Kong, Japan, Luxembourg, the Republic of Mauritius, the
Netherlands, Taiwan, Turks and Caicos, and the U.K. During fiscal 2016, our International segment's operations generated 8%
of our revenue. In general, the risk factors identified above also have relevance to our International operations. In addition, our
International operations also expose us to other risks, including those related to, for example:
• political conditions;
• economic conditions, including monetary and fiscal policies and tax rules;
• legal and regulatory environments;
• rules governing international trade and ownership of foreign entities;
• risks associated with foreign currency exchange rates;
• cultural differences that we may be unable to anticipate or respond to appropriately;
• difficulties in enforcing intellectual property rights; and
• difficulties encountered in exerting appropriate management oversight to operations in remote locations.
These factors could significantly disrupt our International operations and have a material adverse effect on our revenue and
profitability and could lead to us incurring material impairments and other exit costs.
Failure to meet the financial performance guidance or other forward-looking statements we have provided to the public
could result in a decline in our stock price.
We may provide public guidance on our expected financial results or other forward-looking information for future periods.
Although we believe that this guidance provides investors and analysts with a better understanding of management's
expectations for the future and is useful to our existing and potential stockholders, such guidance is comprised of forward-
looking statements subject to the risks and uncertainties described in this report and in our other public filings and public
statements. Our actual results may not be in line with guidance we have provided. If our financial results for a particular period
do not meet our guidance or the expectations of market participants or if we reduce our guidance for future periods, the market
price of our common stock may decline.
Item 1B. Unresolved Staff Comments.
Not applicable.