What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2024-03-15 compared with 2023-03-17 · 67 added, 75 removed, 101 unchanged (58% of the section changed)

5 unchanged sentences

We are driven by our purpose to enrich lives through technology and our vision to personalize and humanize technology solutions for every stage of life.

We accomplish this by leveraging our combination of technology and a human touch to meet our customers’ everyday needs, whether they come to us online, visit our stores or invite us into their homes.

We accomplish this by leveraging our unique combination of tech expertise and a human touch to meet our customers’ everyday needs, whether they come to us online, visit our stores or invite us into their homes.

We have operations in the U.S.

3 unchanged sentences

The Domestic segment is comprised of our operations in all states, districts and territories of the U.S.

and our Best Buy Health business, and includes the brand names Best Buy, Best Buy Ads, Best Buy Business, Best Buy Health, CST, Current Health, Geek Squad, Lively, Magnolia, Pacific Kitchen and Home, TechLiquidators and Yardbird and the domain names bestbuy.com, currenthealth.com, lively.com, techliquidators.com and yardbird.com.

All of our former stores in Mexico were closed as of the end of the first quarter of fiscal 2022, and our International segment is comprised of all operations in Canada under the brand names Best Buy, Best Buy Mobile and Geek Squad and the domain name bestbuy.ca.

In fiscal 2022, we acquired all of the outstanding shares of Current Health Ltd.

(“Current Health”) and Two Peaks, LLC d/b/a Yardbird Furniture (“Yardbird”).

and the domain names bestbuy.com, currenthealth.com, lively.com, techliquidators.com and yardbird.com.

Our International segment is comprised of all operations in Canada under the brand names Best Buy, Best Buy Mobile and Geek Squad and the domain name bestbuy.ca.

Our Domestic and International segments are managed by leadership teams responsible for all areas of the business.

5 unchanged sentences

All stores generally operate under standard procedures with a degree of flexibility for store management to address certain local market characteristics.

While day-to-day operations of our stores are led by store management, more strategic decisions regarding, for example, store locations, format, category assortment and fulfillment strategy are addressed at a market or regional level.

Our Best Buy Health business has a dedicated leadership team and operations team.

The Best Buy Health leadership team manages the day-to-day affairs of all aspects of its business, while receiving support from certain Best Buy enterprise capabilities.

Our Best Buy Health business has a dedicated leadership team that manages the day-to-day affairs of all aspects of its business, while receiving support from certain Best Buy enterprise capabilities.

Merchandise and Services

2 unchanged sentences

 Computing and Mobile Phones - computing (including desktops, notebooks and peripherals), mobile phones (including related mobile network carrier commissions), networking, tablets (including e-readers) and wearables (including smartwatches);

 Consumer Electronics - digital imaging, health and fitness products, home theater, portable audio (including headphones and portable speakers) and smart home;

 Appliances - large appliances (including dishwashers, laundry, ovens and refrigerators) and small appliances (including blenders, coffee makers and vacuums);

 Entertainment - drones, gaming (including hardware, peripherals and software), movies, music, toys, virtual reality and other software;

 Services - consultation, delivery, design, health-related services, installation, memberships, repair, set-up, technical support and warranty-related services;

 Other - other product offerings, including baby, food and beverage, luggage, outdoor living and sporting goods.

Customers within our Domestic and International segments who purchase product online have the choice to pick up product at a Best Buy store (including curbside pick-up for select products at most Domestic stores), at an alternative pick-up location or take delivery direct to their homes.

Our ship-from-store capability allows us to improve product availability and delivery times for customers.

 Consumer Electronics - digital imaging, health and fitness products, home theater (including home theater accessories, soundbars and televisions), portable audio (including headphones and portable speakers) and smart home;

 Appliances - large appliances (including dishwashers, laundry, ovens and refrigerators) and small appliances (including blenders, coffee makers, vacuums and personal care);

 Entertainment - drones, gaming (including hardware, peripherals and software), movies, toys, virtual reality and other software;

 Services - delivery, health-related services, installation, memberships, repair, set-up, technical support and warranty-related services;

 Other - other product offerings, including baby, food and beverage and outdoor living.

Customers within our Domestic and International segments who purchase product online have the choice to pick up product at a Best Buy store (including curbside pick-up for many products at most Domestic stores) or at an alternative pick-up location or take delivery direct to their residence or place of business.

Our ship-from-store capability allows us to offer additional fast and convenient delivery options for customers.

Most merchandise is shipped directly from manufacturers to our distribution centers.

1 unchanged sentence

Our Domestic and International segments purchase merchandise from a variety of suppliers.

In fiscal 2023, our 20 largest suppliers accounted for approximately 79% of the merchandise we purchased, with five suppliers – Apple, Samsung, HP, LG and Sony – representing approximately 57% of total merchandise purchased.

In fiscal 2024, our 20 largest suppliers accounted for approximately 80% of the merchandise we purchased, with five suppliers – Apple, Samsung, HP, Sony and LG – representing approximately 55% of total merchandise purchased.

We generally do not have long-term written contracts with our vendors that would require them to continue supplying us with merchandise or that secure any of the key terms of our arrangements.

8 unchanged sentences

We continuously look for opportunities to optimize our store space, renegotiate leases and selectively open or close locations to support our operations.

Refer to Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, for tables reconciling our Domestic and International segment stores open at the end of each of the last three fiscal years.

Intellectual Property

We own or have the right to use valuable intellectual property such as trademarks, service marks and trade names, including, but not limited to, Best Buy, Best Buy Ads, Best Buy Essentials, Best Buy Health, Best Buy Mobile, Best Buy Totaltech, CST, Current Health, Dynex, Geek Squad, Insignia, Jitterbug, Lively, Magnolia, Modal, My Best Buy, Pacific Kitchen and Home, Pacific Sales, Platinum, Rocketfish , TechLiquidators , Yardbird and our Yellow Tag logo.

We own or have the right to use valuable intellectual property such as trademarks, service marks and trade names, including, but not limited to, Best Buy, Best Buy Ads, Best Buy Essentials, Best Buy Health, Best Buy Mobile, CST, Current Health, Dynex, Geek Squad, Insignia, Jitterbug, Lively, Magnolia, Modal, My Best Buy, Pacific Kitchen and Home, Pacific Sales, Platinum, Rocketfish , TechLiquidators , Yardbird and our Yellow Tag logo.

We have secured domestic and international trademark and service mark registrations for many of our brands.

8 unchanged sentences

Our competitors are primarily multi-channel retailers, e-commerce businesses, technology service providers, traditional store-based retailers, vendors and mobile network carriers who offer their products and services directly to customers.

We believe our ability to help customers online, in our stores and in their homes, and to connect technology product and solutions with customer needs, provides us key competitive advantages.

We believe our ability to help customers online, in our stores and in their homes, and to connect technology product and solutions with customer needs, provide us key competitive advantages.

Some of our competitors have lower cost operating structures and seek to compete for sales primarily on price.

7 unchanged sentences

our service and support offerings designed to solve real customer needs;

our unique ability to showcase technology in distinct store formats and our supply chain are important ways in which we maintain our competitive advantage.

our unique ability to showcase technology in distinct store formats;

and our supply chain are important ways in which we maintain our competitive advantage.

Environmental and Social

As we pursue our purpose to enrich lives through technology, we are committed to having a positive impact on the world, the environment and the communities in which we operate through interactions with all of our stakeholders, including our customers, employees, vendor partners and shareholders.

The Nominating, Corporate Governance and Public Policy Committee of our Board of Directors (“Board”) advises and oversees management regarding the effectiveness and risks of our environmental, social and governance strategy, programs and initiatives, including environmental goals and progress, social responsibility programs, and initiatives and public policy positions and advocacy.

The Nominating, Corporate Governance and Public Policy Committee of our Board of Directors (“Board”) advises and oversees management regarding the effectiveness and risks of our environmental, social and governance strategy, programs and initiatives, including environmental goals and progress, social responsibility programs, initiatives and public policy positions and advocacy.

Environmental

We aspire to drive forward the circular economy and we are committed to conserving natural resources, reducing waste in our operations, offering products that help our customers live more sustainably and transitioning to renewable energy sources.

As of the end of fiscal 2023, we have invested in five solar fields, helping to accelerate the progress towards our carbon reduction goals.

We intend to reduce the use of natural resources in our operations as demonstrated by the following goals, which we believe can be managed within our normal operating budget without significant incremental spending:

 Reduce carbon emissions 75% by 2030 (over a 2009 baseline) and become carbon neutral by 2040.

We continue to reduce our carbon emissions and plan to achieve this goal by investing in energy efficiency improvements, deploying small-scale onsite and utility-scale renewable energy systems, electrifying our fleet and neutralizing residual emissions.

 Reduce water consumption 15% by 2025 (over a 2019 baseline).

By monitoring our water consumption across our business, and identifying actions that lessen our dependence on water, we continue to reduce our water usage.

 Achieve zero-waste certification at additional distribution center locations.

To continue reducing our impact on the environment, we are working toward building a more sustainable supply chain and expanding our Total Resource Use and Efficiency zero-waste certification efforts across our warehousing operations.

We aim to help our customers reduce their impact on the environment as well.

Through the sale of ENERGY STAR® products, we expect to help our customers reduce carbon emissions 20% by 2030 (over a 2017 baseline), which we estimate will save our customers collectively at least $5 billion on utility bills.

We support the circular economy by keeping consumer products in use for as long as possible through our repair and trade-in services.

Finally, we put materials back into the manufacturing process when products reach the end of their lives through our electronics and appliance recycling program.

We have collected more than 2.7 billion pounds of electronics and appliances for recycling since 2009, including more than 183 million pounds in fiscal 2023.

We remain committed to maintaining this program to collect even more in the years ahead.

We are committed to propelling the circular economy forward, a system that aims to reduce waste and preserve resources.

We focus on our highest-impact areas, including in our operations, through the energy we procure and through the products we sell.

In our operations, we strive to reduce the use of natural resources.

We believe the following focus areas will help to reduce the use of natural resources and our impact on the environment while improving our efficiency and profitability:

 In our ongoing efforts to reduce carbon emissions in our operations, we support energy efficiency programs, including investments in energy efficiency improvements, deploying small-scale onsite and utility-scale renewable energy systems and neutralizing residual emissions.

 We monitor our water consumption across our business to identify and manage programs that lessen our dependence on water.

 To reduce waste and maximize resource efficiency, we continue our efforts to build a more sustainable supply chain by focusing on certifying our warehousing operations as TRUE zero waste.

Our focus on sustainable products is centered on helping our customers reduce their impact on the environment through the products we sell.

We do this by providing a variety of energy-efficient products to our customers.

We also support the circular economy by keeping consumer products in use for as long as possible through our repair and trade-in services.

We put materials back into the manufacturing process when products reach the end of their lives through our electronics and appliance recycling program.

Human Rights and Responsible Sourcing

4 unchanged sentences

Community Impact

The Best Buy Foundation is working to build brighter futures for teens from disinvested communities.

The Best Buy Foundation currently supports a network of 52 Best Buy Teen Tech Center ® locations and has a goal of supporting 100 locations by 2025.

Through the Best Buy Teen Tech Centers and a suite of supporting programs, teens are able to prepare for careers of the future through access to:

 cutting-edge technology and related training;

 post-secondary guidance for college prep and technical programs;

 mentors who inspire new passions and possibilities;

 social and emotional support, including mental health resources;

 paid internship and career exploration opportunities that put learning into practice.

Best Buy is committed to helping prepare teens from disinvested communities for the tech-reliant careers of the future.

Employee volunteer programs like Geek Squad Academy spark excitement and interest in technology for young learners, while engaging our employees’ unique technical expertise.

Best Buy also serves as a fiscal sponsor of the Best Buy Foundation™, whose signature Best Buy Teen Tech Center® program consists of a network of youth-centered community hubs where teens can engage with the latest technology, learn career skills, and interact with safe and supportive mentors.

As of February 3, 2024, the Best Buy Foundation™ supported a network of 59 Best Buy Teen Tech Center® locations across the U.S.

and Canada, working toward a goal of supporting 100 locations.

Human Capital Management

2 unchanged sentences

At the end of fiscal 2024, we employed more than 85,000 employees in the U.S.

and Canada, comprised of approximately 58% full-time employees, 32% part-time employees and 10% seasonal/occasional employees.

Diversity, Equity and Inclusion

We are creating a more inclusive future, both inside our company and in our communities.

In fiscal 2021, we set employee diversity goals to be attained by 2025, and we are pleased to report the following achievements in fiscal 2023:

 filled 37% of new, salaried corporate positions with Black, Indigenous and People of Color (“BIPOC”) employees, compared to our goal to fill one of three positions;

 filled 25% of new, salaried field positions with female employees, compared to our goal to fill one of three positions.

We are committed to creating a stronger community of diverse suppliers to help increase BIPOC representation in the tech industry.

We continue making progress on our commitment to spend at least $1.2 billion with BIPOC and diverse businesses by 2025.

In addition, w e are investing up to $10 million with Brown Venture Group, a venture capital firm that focuses exclusively on Black, Latino and Indigenous technology startups in emerging technologies.

For our communities, we continue making progress on our commitment to spend $44 million by 2025 to expand college preparation and career opportunities for BIPOC students, including adding scholarships for Historically Black Colleges and University students and increasing scholarship funding for Best Buy Teen Tech Center youth.

Inclusion, Diversity and Equity

We are proud and encouraged by what we have accomplished collectively to expand inclusion, diversity and equity at Best Buy over the past few years.

Now we are evolving our strategic focus to advance four specific outcomes:

 Employee Engagement:

We want Best Buy employees to feel connected to the company’s values, vision and purpose, and have opportunities to thrive.

Best Buy seeks to establish and uphold a best-in-class retention approach across all demographics.

 Representation:

We aim to provide Best Buy employees from diverse backgrounds with equal opportunities at all levels in the organization.

 Culture of Belonging:

Best Buy endeavors to foster an environment where employees feel welcomed and can build strong relationships through demonstrating our inclusive behaviors:

vulnerability, empathy, courage and grace.

The Compensation and Human Resources Committee of our Board supports the development of an inclusive and diverse culture through oversight of our human resources policies and program.

The Nominating, Corporate Governance and Public Policy Committee of our Board recommends criteria for the selection of individuals to be considered as candidates for election to the Board, which includes diversity considerations.

The Nominating, Corporate Governance and Public Policy Committee of our Board recommends criteria for the selection of individuals to be considered as candidates for election to the Board.

Training and Development

Personal growth is at the heart of our people strategy, and we believe investing in training, upskilling and reskilling programs will produce long-lasting benefits to the organization by creating a more productive, engaged and adaptable workforce.

In fiscal 2023, each of our U.S.

employees spent an average of at least 44 hours on training and development.

We made the following enhancements to our training and development program in fiscal 2023:

 expanded our leadership development program to all field and corporate leaders and directors across the enterprise with a focus on adaptability, the ability to work effectively with others and create a culture of belonging, the ability to apply reason and learning experiences into one’s role, and the ability to understand and thrive in a digital economy;

 launched a program with an artificial intelligence platform to proactively plan for future workforce roles, creating new learning and career paths;

 provided LinkedIn Learning to full-time employees for continuous learning in leadership and functional skills;

 created a new onboarding training program for all new employees to create a consistent experience that starts their unique learning path specific for their job.

We continue to invest in our employees and their skill development to enable customized learning experiences.

This helps to create a more adaptable and resilient workforce and enhances our competitive advantage.

With the continued goal of personalizing learning opportunities, we transitioned to offering new types of training experiences in fiscal 2024.

This included side-by-side trainings, enabling employees to learn and grow alongside their peers and leaders in condensed training formats.

Examples of enhancements include:

 We evolved the onboarding experience, optimizing this for new employees.

We also created new, consistent onboarding experiences in our supply chain, services teams, call centers and project teams.

 We built an internal program to apply industry-leading learning methodologies and focused on building enterprise leaders who are more equipped to lead through times of uncertainty and change, while growing and transforming Best Buy for the future.

Employee Benefits

We strive to help our employees live happy, healthy and productive lives that balances work and home.

Our benefits aim to support employees’ overall well-being.

In fiscal 2023, we elevated caregiver support for employees with a focus on disabilities and neurodivergence through a partnership with Joshin.

Additionally, we continued our focus on:

 caregiver support benefits that enable employees to receive personalized help in a time of great need through Wellthy, a program that helps employees with emergency housing, healthcare, substance abuse, complex eldercare issues and other moments of crisis;

In fiscal 2024, we continued our focus on:

 Caregiver support benefits through Joshin, a support system for employees and their loved ones with a focus on disabilities and neurodivergence;

 Caregiver support benefits that enable employees to receive personalized help in a time of great need through Wellthy, a program that helps with emergency housing, healthcare, substance abuse, complex eldercare issues and other moments of crisis;

 Pay continuation (paid leave) and caregiver pay so employees can care for themselves and their loved ones;

 maternity leave that provides qualifying employees up to 10 weeks at 100% pay;

 Included Health – a new benefit providing support for employees with a focus on LGBTQ+ needs that connect members to affirming and clinically competent providers, and one-on-one support with a care coordinator;

 Parental leave that provides qualifying employees up to 10 weeks at 100% pay;

 Dedicated support through Included Health, a benefit that connects members to culturally competent providers who understand the unique needs of their community;

 Access to physical and mental health virtual visits;

 Emergency assistance through the HOPE Fund – Helping Our People in Emergencies – in equal partnership with the Richard M.

Schultze Family Foundation, provides employees in hardship situations an opportunity to receive up to $2,500 in financial assistance;

Schultze Family Foundation, providing employees in hardship situations an opportunity to receive up to $2,500 in financial assistance;

 Mental health, including our commitment to raise awareness about mental health, equipping employees with training to notice issues in themselves or others, and then find help;

1 unchanged sentence

The Compensation and Human Resources Committee of our Board oversees risks related to our human capital management through its regular review of our practices, policies and programs, which includes overall employee wellness and engagement in these areas, employee benefit plan compliance, leadership succession planning and wage, retention and hiring programs.

For more information on environmental and social matters, as well as human capital management, please see Best Buy’s Fiscal 2023 Environmental, Social and Governance Report, including a Task Force for Climate Related Financial Disclosures index, expected to be published in June 2023, at https://corporate.bestbuy.com/sustainability.

This website and the report are not part of this annual report and are not incorporated by reference herein.

For more information on environmental and social matters, as well as human capital management, please see Best Buy’s Fiscal 2024 Corporate Responsibility and Sustainability Report expected to be published later this year, at https://corporate.bestbuy.com/sustainability.

This website and the report are not part of this Annual Report on Form 10-K and are not incorporated by reference herein.

Available Information

5 unchanged sentences

The SEC also maintains a website that contains reports, proxy and information statements, and other information regarding issuers, including us, that file electronically with the SEC at https://sec.gov.

We also make available, free of charge on our website, our Amended and Restated Articles of Incorporation, Amended and Restated By-laws, the Corporate Governance Principles of our Board and our Code of Business Ethics adopted by our Board, as well as the charters of all of our Board's committees:

Audit Committee;

15 unchanged sentences

https://corporate.bestbuy.com/archive/.

* These corporate websites, and the contents thereof, are not incorporated by reference into this Periodic Report on Form 10-K nor deemed filed with the SEC.

* These corporate websites, and the contents thereof, are not incorporated by reference into this Annual Report on Form 10-K nor deemed filed with the SEC.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business