Item 2. Properties.

9K characters. Original on sec.gov · Markdown

Item 2. Properties.

Stores, Distribution Centers, Service Centers and Corporate Facilities

Domestic Segment

The following table summarizes the location and total square footage of our Domestic segment stores at the end of fiscal 2018:

U.S. Best Buy StoresU.S. Best Buy Mobile Stand-Alone StoresPacific Sales Stores
Alabama122—
Alaska2——
Arizona221—
Arkansas92—
California1171628
Colorado214—
Connecticut122—
Delaware31—
District of Columbia2——
Florida6428—
Georgia288—
Hawaii2——
Idaho51—
Illinois4611—
Indiana2310—
Iowa111—
Kansas82—
Kentucky97—
Louisiana164—
Maine3——
Maryland217—
Massachusetts237—
Michigan329—
Minnesota2011—
Mississippi81—
Missouri187—
Montana3——
Nebraska53—
Nevada103—
New Hampshire63—
New Jersey267—
New Mexico52—
New York538—
North Carolina327—
North Dakota41—
Ohio359—
Oklahoma133—
Oregon122—
Pennsylvania3712—
Puerto Rico3——
Rhode Island1——
South Carolina133—
South Dakota21—
Tennessee167—
Texas10322—
Utah10——
Vermont1——
Virginia347—
Washington193—
West Virginia5——
Wisconsin2211—
Wyoming11—
Total store count1,00825728
Square footage (in thousands)39,082362735
Average square feet per store (in thousands)39126

The following table summarizes the ownership status of our Domestic segment store locations at the end of fiscal 2018:

U.S. Best Buy StoresU.S. Best Buy Mobile Stand- Alone Stores(1)Pacific Sales Stores
Owned store locations25——
Owned buildings and leased land36——
Leased store locations94725728
(1)On March 1, 2018, we announced our intent to close all of our 257 remaining Best Buy Mobile stand-alone stores in the U.S. We expect the majority of these stores to close during the first half of fiscal 2019. Refer to Note 4, Restructuring Charges, of the Notes to Consolidated Financial Statements, included in Item 8, Financial Statements and Supplementary Data, of this Annual Report on Form 10-K for further information about our restructuring activities.

The following table summarizes the location, ownership status and total square footage of space utilized for distribution centers, service centers, corporate and field offices of our Domestic segment at the end of fiscal 2018:

Square Footage (in thousands)
LocationLeasedOwned
Distribution centers23 locations in 17 U.S. states8,7503,168
Geek Squad service centers(1)Louisville, Kentucky237—
Principal corporate headquarters(2)Richfield, Minnesota—1,452
Territory field offices11 locations throughout the U.S.96—
Pacific Sales corporate office spaceTorrance, California12—
(1)The leased space utilized by our Geek Squad operations is used primarily to service notebook and desktop computers.
(2)Our principal corporate headquarters consists of four interconnected buildings. Certain vendors who provide us with a variety of corporate services occupy a portion of our principal corporate headquarters. We also sublease a portion of our principal corporate headquarters to unaffiliated third parties.

International Segment

The following table summarizes the location and total square footage of our International segment stores at the end of fiscal 2018:

Best Buy StoresBest Buy Mobile StoresBest Buy Express Stores
Canada
Alberta199—
British Columbia2210—
Manitoba4——
New Brunswick3——
Newfoundland1——
Nova Scotia31—
Ontario5426—
Prince Edward Island1——
Quebec235—
Saskatchewan4——
Square footage (in thousands)3,78348—
Average square feet per store (in thousands)281—
Mexico
Ciudad de Mexico8—4
Coahuila——1
Estado de Mexico4——
Guanajuato1——
Jalisco4——
Michoacan1——
Morelos1——
Nuevo Leon2—1
Quintana Roo1——
San Luis Potosi1——
Veracruz1——
Yucatan1——
Square footage (in thousands)759—12
Average square feet per store (in thousands)30—2
Total store count159516

The following table summarizes the ownership status of our International segment store locations at the end of fiscal 2018:

CanadaMexico
Best Buy StoresBest Buy Mobile StoresBest Buy StoresBest Buy Express Stores
Owned store locations3———
Leased store locations13151256

The following table summarizes the location, ownership status and total square footage of space for distribution centers and corporate offices of our International segment at the end of fiscal 2018:

Square Footage (in thousands)Square Footage (in thousands)
Distribution CentersLeasedOwnedPrincipal Corporate OfficesLeasedOwned
CanadaBrampton, Ontario1,057—Burnaby, British Columbia141—
Vancouver, British Columbia439—
MexicoEstado de Mexico, Mexico89—Distrito Federal, Mexico32—

Exclusive Brands

We lease approximately 56,000 square feet of office space in China to support our exclusive brands operations.

Operating Leases

Almost all of our stores and a majority of our distribution facilities are leased. Additional information regarding our operating leases is available in Note 1, Summary of Significant Accounting Policies, and Note 8, Leases, of the Notes to Consolidated Financial Statements, included in Item 8, Financial Statements and Supplementary Data, of this Annual Report on Form 10-K.

Previous: Item 1B. Unresolved Staff Comments. · Next: Item 3. Legal Proceedings.