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4
PART I
Item 1. Business.
Unless the context otherwise requires, the use of the terms "we," "us" and "our" in this Transition Report on Form 10-K refers
to Best Buy Co., Inc. and, as applicable, its consolidated subsidiaries.
Description of Business
We are a multi-national, e-commerce and physical retailer of consumer electronics, including mobile phones, tablets and
computers, large and small appliances, televisions, digital imaging, entertainment products and related accessories. We also
offer technology services – including support, repair, troubleshooting and installation – under the Geek Squad brand. We
operate online retail operations, retail stores and call centers and conduct operations under a variety of names such as Best Buy
(BestBuy.com, BestBuy.ca), Best Buy Mobile (BestBuyMobile.com), The Carphone Warehouse (CarphoneWarehouse.com),
Five Star, Future Shop (FutureShop.ca), Geek Squad, Magnolia Audio Video, Pacific Sales and The Phone House
(PhoneHouse.com). References to our website addresses do not constitute incorporation by reference of the information
contained on the websites.
Information About Our Segments and Geographic Areas
During fiscal 2013 (11-month), 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 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 The
Carphone Warehouse, The Phone House and Geek Squad; (iii) all China operations, operating under the brand names Five Star
and Best Buy Mobile and (iv) all Mexico operations, operating under the brand names Best Buy, Best Buy Express and Geek
Squad.
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 14, Segment and Geographic Information, of the Notes to
Consolidated Financial Statements, included in Item 8, Financial Statements and Supplementary Data, of this Transition
Report on Form 10-K.
Domestic Segment
We were incorporated in the state of Minnesota in 1966 as Sound of Music, Inc. Today, our U.S. Best Buy stores offer our
customers a wide variety of consumer electronics, computing and mobile phone products, entertainment products, large and
small appliances and related accessories and 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. Today, we operate Magnolia Home Theater store-within-a-store experiences in certain
U.S. Best Buy stores, offering customers high-end electronics with specially trained employees. In fiscal 2010, we also began
operating Magnolia Design Center store-within-a-store experiences to further enhance the unique product offerings and high-
touch customer service provided by the Magnolia brand in select U.S. Best Buy stores.
In fiscal 2003, we acquired Geek Squad Inc. to further our plans of providing technology support services to customers. Geek
Squad service is available in all U.S. Best Buy branded stores.
In fiscal 2007, we acquired California-based Pacific Sales Kitchen and Bath Centers, Inc. ("Pacific Sales"). Pacific Sales
specializes in the sale and installation of high-end and mass-market premium brand kitchen appliances, plumbing fixtures and
home entertainment products, with a focus on builders and remodelers. In fiscal 2011, we also began integrating Pacific Sales
into select U.S. Best Buy stores via our Pacific Kitchen and Home store-within-a-store experience, offering customers many of
the same products and services offered in that brand's stand-alone store format.
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