Best Buy 2012 Annual Report Download - page 7

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7
In Canada, the Future Shop and Best Buy branded stores have offerings in five revenue categories: Consumer Electronics,
Computing and Mobile Phones, Entertainment, Services and Other, and at Future Shop only, a sixth revenue category,
Appliances. Consumer Electronics consists of video and audio products. Video products include televisions, e-Readers,
navigation products, digital cameras and accessories, digital camcorders and accessories and DVD and Blu-ray players. Audio
products encompass MP3 players and accessories, home theater audio systems and components, musical instruments and
mobile electronics such as car stereo and accessories. The Computing and Mobile Phones revenue category includes notebook
and desktop computers, tablets, monitors, mobile phones and related subscription service commissions, hard drives and other
storage devices, networking equipment, office supplies and related accessories such as printers. The Entertainment revenue
category includes video game hardware and software, DVDs, Blu-rays, CDs and computer software. The Appliances revenue
category includes both major and small appliances. The Services revenue category includes extended warranties, repair,
delivery, computer-related services and home theater installation. The Other revenue category includes non-core offerings such
as snacks and beverages.
Although Future Shop and Best Buy branded stores in Canada offer similar revenue categories (except for major Appliances,
which are only offered at Future Shop stores), there are differences in product brands and depth of selection within revenue
categories. Further, Geek Squad services are only available in the Best Buy branded stores with Future Shop's service offerings
branded as Connect Pro.
Canada Best Buy Mobile offerings are included in our Computing and Mobile Phones revenue category. Revenue from Canada
Best Buy Mobile stand-alone stores is primarily derived from mobile phone hardware, subscription service commissions from
mobile phone network operators and related mobile phone accessories.
In China, our Five Star stores have offerings in four revenue categories: Appliances, Consumer Electronics, Computing and
Mobile Phones and Services. Our Five Star stores do not carry products in our Entertainment revenue category. The Appliances
revenue category includes both major and small appliances, air conditioners and housewares. The Consumer Electronics
revenue category consists of video and audio products, including televisions, digital cameras, MP3 players and accessories. The
Computing and Mobile Phones revenue category includes desktop and notebook computers, tablets, mobile phones, traditional
telephones and accessories. The Services revenue category includes extended warranties, repair, delivery, computer-related
services and installation.
Our Best Buy branded stores in Mexico have offerings in six revenue categories: Consumer Electronics, Computing and
Mobile Phones, Entertainment, Appliances, Services and Other, with products and services similar to those of our U.S.
Best Buy stores.
Distribution
Domestic Segment
Generally, U.S. Best Buy, U.S. Best Buy Mobile, Magnolia Audio Video and Pacific Sales stores' merchandise, except for
major appliances and large-screen televisions, is shipped directly from manufacturers to our distribution centers located
throughout the U.S. Major appliances and large-screen televisions are shipped to satellite warehouses in each major market.
These stores are dependent upon the distribution centers for inventory storage and shipment of most merchandise. However, in
order to meet release dates for selected products and to improve inventory management, certain merchandise is shipped directly
to our stores from manufacturers and distributors. Contract carriers ship merchandise from the distribution centers to stores,
though Pacific Sales stores' merchandise is generally fulfilled directly to customers through a distribution center in California.
Generally, U.S. Best Buy online merchandise sales are either picked up at U.S. Best Buy stores or fulfilled directly to
customers through our distribution centers.
International Segment
Our small-format The Carphone Warehouse and The Phone House stores' merchandise is shipped directly from our suppliers to
our distribution centers across Europe. Contract carriers ship merchandise from the distribution centers to stores. Stores hold
the immediate stock requirement and the distribution center in each market holds additional inventory.
Our Canada stores' merchandise is shipped directly from our suppliers to our distribution centers in British Columbia and
Ontario. Our Canada stores are dependent upon the distribution centers for inventory storage and shipment of most
merchandise. However, in order to meet release dates for selected products and to improve inventory management, certain
merchandise is shipped directly to our stores from manufacturers and distributors. Contract carriers ship merchandise from the
distribution centers to stores.