Best Buy 2006 Annual Report Download - page 25

PART I
The following table reconciles U.S. Best Buy stores open at
the beginning and end of eachof the last five fiscal years
(excluding 12, six and one Geek Squad stand-alonestores at
the end of fiscal 2006, fiscal2005 and fiscal 2004,
respectively):
Fiscal Year Stores Opened Stores Closed
Total
Stores at
End of
Fiscal Year
Balance forward NA NA 419
2002 62 — 481
2003 67 — 548
2004 60 — 608
2005 61 1 668
2006 74 — 742
The following table reconciles Magnolia Audio Video stores
open at the beginning and end of each of the last five fiscal
years:
Fiscal Year Stores
Opened Stores Closed
Total
Stores at
End of
Fiscal Year
Balance forward NA NA 13
2002 — — 13
2003 6 — 19
2004 3 — 22
2005 — 2 20
2006 — — 20
The following table reconciles Future Shop stores open at
the beginning and end of each fiscal year since the date of
acquisition:
Fiscal Year Stores
Opened Stores
Closed
Total
Stores at
End of
Fiscal Year
Balance forward (1)NA NA 91
2002 4 — 95
2003 9 — 104
2004 4 — 108
2005 6 — 114
2006 5 1118
(1)As of the date of acquisition, November 4, 2001
The following table reconciles Canadian Best Buy stores
open at the beginning and endof each fiscal year since
inception of the International segment (excludingfive Geek
Squad stores at the end of fiscal 2006):
Fiscal Year Stores
OpenedStores Closed
Total
Stores at
End of
Fiscal Year
Balance forward NA NA NA
2002 — — —
2003 8 — 8
2004 11 — 19
2005 11 — 30
2006 14 — 44
During fiscal 2007, we expect to open nearly 90 new stores
in the United States and Canada (not including the stores
acquired in the Pacific Sales acquisition). Most of the new
stores willbe opened in markets where wealready have
stores, leveraging our infrastructure and making shopping
more convenient for our customers. We anticipate opening
75 to 80 U.S. Best Buy stores, as well as relocating 10 to
15 existing U.S. Best Buy stores. We also expect to open
approximately three Best Buy stores in Canada. We
anticipate opening four to five Future Shop stores, as well as
relocating approximately four existing stores. On a
long-term basis, we plan to operate at least 1,200 stores in
North America. Additionally, in fiscal 2007 we expect to
open our first store in Shanghai,China.
Additional information regarding our Outlook for Fiscal
2007 is included in Item 7, Management’s Discussionand
Analysisof Financial Condition and Results of Operations, of
this Annual Report on Form 10-K.
Intellectual Property
We believe we own valuable intellectual property including
trademarks, service marks and tradenames, some of which
are of material importance to our business, andinclude
“Best Buy,” “Yellow Tag” logo, “Geek Squad,” “Future
Shop,” “MagnoliaAudio Video” and “Pacific Sales.” Some
of our intellectual property is the subject of numerous United
States and foreign trademark and service mark registrations.
We believe our intellectualproperty has significant value
and is an important factor in the marketing of our company,
our stores and our Web sites. We are not aware of any facts
that could negatively impact our continuing use of any of
our intellectual property.