Best Buy 2011 Annual Report Download - page 4

PART I
Item 1. Business.
Description of 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. We are a multinational retailer of consumer
electronics, home office products, entertainment products, appliances and related services. We operate retail stores and
call centers and conduct online retail operations under a variety of brand names such as Best Buy (BestBuy.com,
BestBuy.ca, BestBuy.co.uk), Best Buy Mobile (BestBuyMobile.com), The Carphone Warehouse (CarphoneWarehouse.com),
Five Star (Five-Star.cn), Future Shop (FutureShop.ca), Geek Squad, Magnolia Audio Video, Napster (Napster.com), Pacific
Sales and The Phone House (PhoneHouse.com). References to our Web site addresses do not constitute incorporation by
reference of the information contained on the Web sites.
Information About Our Segments
During fiscal 2011, 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, Napster and Pacific Sales.
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 Europe operations, operating under the brand
names Best Buy, The Carphone Warehouse, The Phone House and Geek Squad; (iii) all China operations, operating
under the brand names Best Buy, Geek Squad and Five Star; (iv) all Mexico operations, operating under the brand names
Best Buy and Geek Squad and (v) all Turkey operations, operating under the brand names Best Buy and Geek Squad.
Financial information about our segments 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.
Domestic Segment
We were incorporated in the state of Minnesota in 1966 as Sound of Music, Inc. We began as an audio components
retailer and, with the introduction of the videocassette recorder in the early 1980s, expanded into video products. In
1983, we changed our name to Best Buy Co., Inc. and began using mass-merchandising techniques, which included
offering a wider variety of products and operating stores under a ‘‘superstore’’ concept. In 1989, we dramatically
changed our method of retailing by introducing a self-service, noncommissioned, discount-style store concept designed to
give the customer a variety of brands and more control over the purchasing process. Today, our U.S. Best Buy stores
operate a model whereby we offer our customers a wide variety of consumer electronics, home office products,
entertainment products, appliances and related services with variations on product assortments, staffing, promotions and
store design to address specific customer groups and local market needs.
In fiscal 2001, we acquired Magnolia Hi-Fi, Inc. — a Seattle-based, high-end retailer of audio and video products and
services — to access an upscale customer segment. In fiscal 2005, we began operating Magnolia Home Theater store-
within-a-store experiences in U.S. Best Buy stores, offering customers high-end electronics with specially trained employees.
In fiscal 2003, we acquired Geek Squad Inc. Geek Squad provides repair, support and installation services. We acquired
Geek Squad to further our plans of providing technology support services to customers. Geek Squad service is available in
all U.S. Best Buy branded stores.
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