Best Buy 2016 Annual Report Download - page 68

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60
Notes to Consolidated Financial Statements
1. Summary of Significant Accounting Policies
Unless the context otherwise requires, the use of the terms "Best Buy," "we," "us" and "our" in these Notes to Consolidated
Financial Statements refers to Best Buy Co., Inc. and, as applicable, its consolidated subsidiaries.
Discontinued Operations
On June 26, 2013, we sold our 50% ownership interest in Best Buy Europe Distributions Limited ("Best Buy Europe"). On
February 1, 2014, we sold mindSHIFT Technologies, Inc. ("mindSHIFT"). On February 13, 2015, we sold Jiangsu Five Star
Appliance Co., Limited ("Five Star"). The results of Best Buy Europe, mindSHIFT and Five Star are presented as discontinued
operations for all periods. See Note 2, Discontinued Operations, for further information.
Description of Business
We are a leading provider of technology products, services and solutions. We offer these products and services to the customers
who visit our stores, engage with Geek Squad agents or use our websites or mobile applications. We have operations in the
U.S., Canada and Mexico. 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., under various brand names including Best Buy, bestbuy.com,
Best Buy Mobile, Best Buy Direct, Best Buy Express, Geek Squad, Magnolia Home Theater and Pacific Kitchen and Home.
The International segment is comprised of all operations in Canada and Mexico under the brand names Best Buy,
bestbuy.com.ca, bestbuy.com.mx, Best Buy Express, Best Buy Mobile and Geek Squad.
Basis of Presentation
The consolidated financial statements include the accounts of Best Buy Co., Inc. and its consolidated subsidiaries. All
intercompany balances and transactions are eliminated upon consolidation.
In order to align our fiscal reporting periods and comply with statutory filing requirements, we consolidate the financial results
of our Mexico operations, as well as our discontinued Europe and China operations, on a one-month lag. Our policy is to
accelerate recording the effect of events occurring in the lag period that significantly affect our consolidated financial
statements. 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 2016, 2015 or 2014.
In preparing the accompanying consolidated financial statements, we evaluated the period from January 31, 2016, through the
date the financial statements were issued for material subsequent events requiring recognition or disclosure. Other than as
described in Note 5, Debt, and Note 7, Shareholders' Equity, no such events were identified for this period.
Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. ("GAAP")
requires us to make estimates and assumptions. These estimates and assumptions affect the reported amounts in the
consolidated financial statements, as well as the disclosure of contingent liabilities. Future results could be materially affected
if actual results were to differ from these estimates and assumptions.
Fiscal Y
Our fiscal year ends on the Saturday nearest the end of January. Fiscal 2016, 2015, and 2014 each included 52 weeks.
New Accounting Pronouncements
In April 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-18,
Reporting Discontinued Operations and Disclosures of Components of an Entity. The new guidance amends the definition of a
discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not
meet the definition of a discontinued operation. We adopted the new guidance in the first quarter of fiscal 2016, and the
adoption of the new guidance did not have a material impact on our consolidated financial statements.