Best Buy 2015 Annual Report Download - page 68

Table of Contents
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Notes to Consolidated Financial Statements
1. Summary of Significant Accounting Policies
Unless the context otherwise requires, the use of the terms "Best Buy," "we," "us" and "our" in these Notes to Consolidated
Financial Statements refers to Best Buy Co., Inc. and, as applicable, its consolidated subsidiaries.
Discontinued Operations
On June 26, 2013, we sold our 50% ownership interest in Best Buy Europe Distributions Limited (“Best Buy Europe”). On
February 1, 2014, we sold mindSHIFT Technologies, Inc. ("mindSHIFT"). On December 3, 2014, we entered into a definitive
agreement to sell Jiangsu Five Star Appliance Co., Limited ("Five Star"). As a result of this agreement, Five Star was classified
as held for sale as of January 31, 2015. The results of Best Buy Europe, mindSHIFT and Five Star are presented as
discontinued operations for all periods. See Note 2, Discontinued Operations, for further information.
Description of Business
We are a leading provider of technology products, services and solutions. We offer expert service at unbeatable price more than
1.5 billion times a year to the consumers, small business owners and educators who visit our stores, engage with Geek Squad
agents or use our websites or mobile applications. We have retail and online operations in the U.S., Canada and Mexico. We
have two operating segments: Domestic and International. The Domestic segment is comprised of store, online and call center
operations in all states, districts and territories of the U.S., operating under the brand names Best Buy, Best Buy Mobile, Geek
Squad, Magnolia Audio Video and Pacific Sales. The International segment is comprised of: (i) all Canada store, online and call
center operations, operating under the brand names Best Buy, Best Buy Mobile, Future Shop and Geek Squad and (ii) all
Mexico store operations operating under the brand names Best Buy, Best Buy Express and Geek Squad.
In addition to our retail store operations, we also operate websites including bestbuy.com, bestbuy.ca, futureshop.ca and
bestbuy.com.mx.
Fiscal Year
On November 2, 2011, our Board of Directors approved a change in our fiscal year-end from the Saturday nearest the end of
February to the Saturday nearest the end of January, effective beginning with our fiscal year 2013. As a result of this change,
our fiscal year 2013 was an 11-month transition period beginning March 4, 2012, through February 2, 2013. Concurrent with
the change, we began consolidating the results of our Europe, China and Mexico operations on a one-month lag, compared to a
two-month lag in prior years, to continue aligning the fiscal reporting periods of our international operations with statutory
filing requirements. In these consolidated statements, including the notes thereto, financial results for fiscal 2013 are for an 11-
month period. Corresponding results for fiscal 2015 and fiscal 2014 are both for 12-month periods.
As a result of the 11-month transition period for fiscal 2013, the month of January 2012 was not captured in our consolidated
fiscal 2013 (11-month) results for those entities reported on a one-month lag. As a result, the Consolidated Statements of Cash
Flows includes a net reconciling adjustment for the cash flows as a result of the exclusion of January 2012 in fiscal 2013 (11-
month). The total adjustment was $74 million, primarily due to $50 million of cash used in financing activities and $18 million
of cash used in investing activities.
Basis of Presentation
The consolidated financial statements include the accounts of Best Buy Co., Inc. and its consolidated subsidiaries. All
intercompany balances and transactions are eliminated upon consolidation.
In order to align our fiscal reporting periods and comply with statutory filing requirements, we consolidate the financial results
of our Mexico operations, as well as our discontinued Europe and China operations, on a one-month lag. Our policy is to
accelerate recording the effect of events occurring in the lag period that significantly affect our consolidated financial
statements. No significant intervening event occurred in these operations that would have materially affected our financial
condition, results of operations, liquidity or other factors had it been recorded during fiscal 2015, 2014 or 2013 (11-month).
In preparing the accompanying consolidated financial statements, we evaluated the period from February 1, 2015, through the
date the financial statements were issued for material subsequent events requiring recognition or disclosure. Other than as