Best Buy 2012 Annual Report Download - page 101

$ in millions, except per share amounts or as otherwise noted
101
The future minimum lease payments under our capital, financing and operating leases by fiscal year (not including contingent
rentals) at March 3, 2012, were as follows:
Fiscal Year Capital
Leases Financing Leases Operating Leases
2013 $ 21 $ 32 $ 1,216
2014 21 31 1,154
2015 18 29 1,063
2016 10 25 940
2017 3 20 792
Thereafter 23 43 2,352
Subtotal 96 180 $ 7,517
Less: imputed interest (15)(31)
Present value $ 81 $ 149
Total minimum lease payments have not been reduced by minimum sublease rent income of approximately $121 due under
future noncancelable subleases.
During fiscal 2012 and 2011, we entered into agreements totaling $18 and $52, respectively, related to various IT equipment
leases.
12. Benefit Plans
We sponsor retirement savings plans for employees meeting certain eligibility requirements. Participants may choose from
various investment options including a fund comprised of our company stock. Participants can contribute up to 50% of their
eligible compensation annually as defined by the plan document, subject to Internal Revenue Service ("IRS") limitations. We
match 100% of the first 3% of participating employees' contributions and 50% of the next 2%. Employer contributions vest
immediately. The total employer contributions were $69, $69 and $62 in fiscal 2012, 2011 and 2010, respectively.
We have a non-qualified, unfunded deferred compensation plan for highly compensated employees and members of our Board
of Directors. Amounts contributed and deferred under our deferred compensation plan are credited or charged with the
performance of investment options offered under the plan and elected by the participants. In the event of bankruptcy, the assets
of the plan are available to satisfy the claims of general creditors. The liability for compensation deferred under the plan was
$62 and $64 at March 3, 2012, and February 26, 2011, respectively, and is included in long-term liabilities. We manage the risk
of changes in the fair value of the liability for deferred compensation by electing to match our liability under the plan with
investment vehicles that offset a substantial portion of our exposure. The cash value of the investment vehicles, which includes
funding for future deferrals, was $83 and $83 at March 3, 2012, and February 26, 2011, respectively, and is included in other
assets. Both the asset and the liability are carried at fair value.
13. Income Taxes
The following is a reconciliation of the federal statutory income tax rate to income tax expense in fiscal 2012, 2011 and 2010:
2012 2011 2010
Federal income tax at the statutory rate $ 365 $ 816 $ 815
State income taxes, net of federal benefit 45 46 68
Benefit from foreign operations (96)(86)(54)
Non-taxable interest income — — (1)
Other — 3 7
Goodwill impairment 395 — —
Income tax expense $ 709 $ 779 $ 835
Effective income tax rate 68.0% 33.4% 35.9%