Thank you for standing by and welcome to Best Buy's conference call for the second quarter of fiscal 2008. (Operator Instructions) I would now like to turn the conference call over to Jennifer Driscoll, Vice President of Investor Relations. Please go ahead, Ms. Driscoll.

Thank you, Eric. Good morning, everyone. Thanks for participating in our second quarter conference call. We have five speakers for you today; first, Brian Dunn, our President and COO; second up is Bob Willett, CEO of International and Chief Information Officer; third we have Dave Morrish, Senior Vice President of our PC Mobility Group; fourth, Sean Scully, Senior Vice President of Services; and finally Jim Muehlbauer, CFO of Best Buy U.S. As usual, we also have a broad management group here with me in the room to answer your questions following our formal remarks. As usual, we would like to request that callers limit themselves to a single question so that we can include more people in our Q&A session, especially with five speakers. Consistent with our approach on prior calls, we will move to the end of the queue those who asked a question on last quarter’s call, and I guess we still have 100 or so dialing in. I would like to remind you that comments made by me or by others representing Best Buy may contain forward-looking statements, which are subject to risks and uncertainties. Our SEC filings contain additional information about factors that could cause our actual results to differ from management’s expectations. As usual, the media are participating in this call in a listen-only mode. With that, I’ll turn the call over to Brian Dunn, who will begin our prepared remarks. Did the analysts get it right?:

Thank you, Jen and good morning, everyone. In our last conference call, we talked about two sets of results from our first quarter; our financial results, which were disappointing, and what we called our strategic results -- customer satisfaction, loyalty, and market share. These strategic results, which we believe are more indicative of our real progress over the long haul, were very encouraging in the first quarter. The good news from our second quarter is that those strategic results continued to move in the right direction. Our market share once again increased over last year. So did our customer satisfaction scores and our memberships in Reward Zone, the loyalty program for our best U.S. customers, increased to almost 25 million members. We are also obviously pleased with the financial results we are sharing with you today, which we see as being more in line with our strategic progress. The strategy we’ve chosen to [get to] the unmet needs of customers -- excuse me, and works back from there to create solutions for them. This strategy does not lend itself to a linear path and the results won’t be linear, either. We are following a compass, not a detailed map, and that’s why we plan our business on an annual and not a quarterly basis. We are also pleased with our financial performance because we believe it demonstrates our ability to learn and to adapt better and faster to our customers’ needs in the demands of an extremely challenging marketplace. We learned from what we were seeing and hearing in the first quarter before it was even over and adapted the maps we are creating and working from across the Best Buy enterprise on a global scale and in the fabric of each of our businesses, reacting to what our customers…

Thanks, Brian. My comments this morning will begin with an update on our growing business in China, since we get a lot of investor questions about that. Then I’ll share my thoughts on the adaptations that drove Canada’s performance. I’ll wrap up with an update on our work with the Carphone Warehouse, our strategic partner in the U.K. I too would like to start with congratulations to our team in Canada and China, as well as our global sourcing team. Collectively, these teams delivered revenue growth of 54%. It’s very hard to produce double-digit comparable store sales gains on top of a 9.3% gain for the previous year. For the second quarter, we reported a 16.3% comparable store sales gain for international, which at the moment includes exclusively our Canadian stores. Our global sourcing teams are also creating great outcomes through our private label brands, delivering a unique point of difference for our customers in each country. Our international revenue growth reflected the gains in Canada, which I’ll explain later, as well as the acquisition last summer of Five Star, which continues to grow its top line at rapid pace. Our Five Star stores continue to be on plan for revenue as we focus on meeting the needs of the Chinese consumer. We are making good progress with tests underway related to a new operating model for our Five Star stores, taking the best ideas from what we see throughout the world and yet expressing them in a way that serves the Five Star customer segments and brand. These stores will look very different to the customers compared to the in market Best Buy stores, yet they will be consistent with our overall strategy, including more local autonomy for the staff, inventory and the merchandising. Our Best Buy store in…

Great. Thanks, Bob and good morning. Bob gave us very good examples of adaptation in our international business. I would like to build on those examples in the context of adapting our computer business to support customers’ changing needs, which we have accomplished in a challenging industry environment. As many of you know, Best Buy has enjoyed a leading market share position in computing for the past several years. We believe that having a differentiated experience in computing is critical to the success of our overall strategy as an electronics retailer, particularly as the world gets more connected and as our products get more integrated. Computing’s lower margins tend to get negative ink. Yet in the first half, our operating profits in home office increased. The drivers included higher volumes, lower cost, and a better understanding of our customers needs. We also had solid double-digit comparable store sale gain in sales of notebooks to consumers. Our performance in desktop computers were more modest, yet were still industry leading. We believe that the story here, like other areas of our business, is around successfully adopting our model to allow us to grow. Vista provided a new way to utilize computers and we adapted our business to take advantage of that occurrence. At the same time, the launch of Vista operating system created new learning challenges for our customers. This transition was made easier because of the support provided by our Geek Squad agents. Specifically, our Geek Squad agents personalized the screens for our Vista customers so they would better understand its features and benefits. Over the past few years, we have been able to mine our customer database and gain a much better understanding of how consumers want to utilize their computing products. We now understand that for sum, the computer…

Thanks, Dave. Well, we certainly have learned over the last few years how integral services are to customer centricity. As you’ll remember, we accelerated Geek Squad in 2004 because we realized we couldn’t be customer centric without it. Not that it is a silver bullet, but it does enable us to serve our customers business. We disclosed our service revenue for the first time this quarter, so I want to take the opportunity to frame up the business. I view our role as a service organization as two-fold. First, we support the customer experience and deliver our brand promise; second, we drive revenue and profit through the sales of services. Our role in delivering the right customer experience shows up in a lot of different ways. Let me talk about two. A tangible way for us to measure and track customer dissatisfaction is through returns. Not only do returns represent customers that haven’t been fully satisfied but they also add cost to our supply chain. That is an opportunity for us on both a customer front and a financial front. We know when home theater transactions involve a service component, our returns drop over 10%. We also know when a computing transaction involves Geek Squad, it lowers returns nearly half. So we see evidence that providing services results in a substantially better customer experience and clearly helps our bottom line. That brings me to the second way we track whether we are enabling a better customer experience. As you know, this year our total company on the America Customer Satisfaction Index, jumped from 71 to 76. We are very proud that our total company customer satisfaction scores are moving up and our scores in services have been some of the strongest movers. We feel a big responsibility to help deliver…

Thank you, Sean and good morning, everyone. As Brian mentioned up front, our strategic resolve remains unchanged from the first quarter and we were able to achieve better financial results in an environment that showed more signs of economic unrest. Overall, the quarter played out better than we originally expected with a few things driving upside in our performance. Fiscal year-to-date, total revenue rose 15% and operating income now stands flat with last year. While we certainly have a ways to go to complete the year, we are pleased with the results in the quarter and remain confident in our ability to deliver solid performance for the year. Two key areas exceeded our expectations for the quarter. First, the gross profit rate in the U.S., particularly in the home theater business, was better than we expected. Second, the continued strong results from Canada that Bob detailed earlier. Those were the top financial stories for the quarter. With those as headlines, I want to walk you through the highlights of our performance in the quarter, update you on the progress we have made in evolving our capital structure, and review our guidance for fiscal 2008. First, total revenue of $8.8 billion was slightly ahead of expectations, based on better-than-expected top line growth in Canada. Revenue growth in Canada was fueled by a 16% comparable store sales gain, positive foreign exchange impact, and new stores. The U.S. business remained largely unchanged from the first quarter and delivered a 1.7% comparable store sales gain, which was in line with our expectations. We continue to see strong growth in computing and gaming, as well as strength in our online channel. The U.S. online channel delivered over a 20% comp in the period. Home theater sales for the quarter also finished in line with our…

(Operator Instructions) Our first question comes from Mitchell Kaiser with Piper Jaffray. Please go ahead.

Thanks, guys. Good morning. Very nice quarter. I was hoping you could comment -- I think it was a big surprise, at least from our perspective and I think other investors that we talk to, is the margin rate improvement in home theater, and I know you mentioned execution and promotion and some other things, but is that inclusive of services as well? And then, on the services side, I think Sean mentioned that if you break down the biggest components on the services side that you’ve disclosed, and thank you for that, that warranties was the biggest part of that. But if we go back to the filing last year, I think warranties were about 2.2% of sales, and you are saying this is 6%. I was wondering if you could just reconcile the differences there. Thank you.

Mitch, good morning. Thank you. The answer to your first question about home theater margins, it is yes and yes. Home theater margins are up, as Jim mentioned, with our high definition advantage program, where we are bringing installation, so services are a piece of it, audio, high definition sources, such as DIRECTV and now including next generation DVD and gaming, and as well as audio. So our home theater margins would be up without services, but that is a part of it as well. So when we look at the entire package, it’s up and it’s really offering those, if you will, those variable solutions to customers. The promotion is not a fixed package. It lets customers make those decisions for themselves and they’ve been opting into it very well.

I’ll take the second part of that question. We’ll glad you like the services disclosure. The services business really, as we’ve disclosed, includes a number of different things. The 6% of sales that Sean outlined really includes our warranty business, our computer services business, our home theater business, our mobile installation business, and some of the other service elements we have, which are referred to in our previous filings around the warranty business, the 2.2% of sales. That is just one component of that services bucket, Mitch, and it happens to be the biggest component.

Right, but I think that -- I think last year warranties were 2.2% of sales, right?

That’s correct.

Okay, but I guess -- does services mix up as a percent of sales in the second quarter then, given that it’s 6%? Or would you expect services to be 6% inclusive of warranties for the whole year?

It moves a little bit during the quarter, so it’s roughly about 6% for the entire year.

Okay. I guess I’m not following how the -- well, okay. I got you. It’s not the majority, it’s the biggest piece.

That is correct.

Okay, understood. Thank you, guys.

Thanks, Jim, and we list them generally in order of magnitude, not just for that but for everything we usually -- and thanks Mike and Jim for that answer. Next question, please.

Our next question comes from Bill Sims with Citigroup. Please go ahead.

Thank you very much and good morning. My question is on the computer business. It appears you did a phenomenal job growing the notebook computer business and continuing to gain market share. However, according to NPD, it appears the industry saw a slight sequential softening from July to August this year versus years past. Did you see -- did you as well see that take place in the industry, and can you comment about what we are seeing in the notebook computer business? Has it softened a little bit in August, relative to what you’ve seen in previous August, August going into the back to school selling season? Thank you.

I guess I would like to comment in this way; we continue to see strong growth in terms of our computing notebook share, and as I mentioned as well, desktops are moving along nicely in that same environment and customers really responded to our offerings during that timeframe. think the biggest thing as well is we continue to see that growth that Sean outline in our geek services as well. So all combined, when we look at how Best Buy performed, we are really pleased in terms of how customers reacted to our offerings and that’s how we saw --

-- though, Dave, between July and August?

We did not see a significant pattern shift at all, Brad. I mean really, for us, it pretty well stayed the same. There were some indications in the industry that a few players saw some softening but for the most part, it seemed to remain robust.

Thanks, Dave.

Okay, next question, and that was Dave and then Brad.

Your next question comes from Gary Balter with Credit Suisse. Please go ahead.

Thank you. First, I just wanted to point out an irony or inconsistency in your comments. Brian, you mentioned that we discovered service is not a separate line item and yet this is the first quarter you broke it out. In terms of the question, and I could ask the dual brands, et cetera, but the thing I think that as investors we are trying to balance is you put up another good quarter and you keep on putting up good quarters, you put some cautious comments at the end -- how should we be thinking about your thoughts on the macro outlook and what impact that can have? And now even for this year but also into ’08? And as part of that, we’re in the markets that housing is getting hit -- you know, Florida, California, Michigan -- are you seeing big differences in those markets versus your other markets right now?

Gary, why don’t I frame that and you know what? I’ll point to something that you just highlighted in your comments. When we look across our business, I think as we did last quarter, and then Brian kicked off this quarter, is we look at the strategic drivers of the business, our loyalty, our customer satisfaction, our reward zone, and I’d say it’s on purpose you heard many times in the call today adaptability. And maybe a frame to think about; when we look across the U.S., and I’ll just pick Detroit; Detroit in the quarter was up over 5%, and Detroit shouldn’t be up over 5% but it’s also one of our leading CSI markets. So what we are learning is that when we actually get it right with the customer, you can navigate an environment if you keep your head up and adapt. And so when I look at the results, and this is what you heard from us last quarter, is that we weren’t thrilled with the financial results but we were, we had a sense of satisfaction with the strategic results and that’s what we saw play through. It just so happened that this quarter, that the strategic results, the financial results in places like Detroit, Michigan made a difference.

And CSI is customer satisfaction.

Yes, customer satisfaction index, and so we are learning every day and we are teaching every day as we pay more attention to metrics beyond the financial metrics and make the [adaptation]. It’s showing up in the financial results that we are seeing in the business.

Thank you, Darren and Barry, for that clarification. Next question, please.

Our next question comes from Brian Nagel with UBS. Please go ahead.

Good morning. A couple of questions; in your press release and in your comments, you talk about market share gains. If you could just talk a little bit further about the rate at which you think you gained market share here in Q2 versus Q1. Then, maybe more specifically, some of the product categories where you think you had particularly strong gains. Thanks.

Well, as we’ve talked about in the calls prior, we’ve been picking up market share over the last 12 months in a pretty significant way across most of our categories. And really, it’s been since we’ve really combined our strength in hardware with our services, as we talked about earlier. So with the HD advantage program last September through Super Bowl and up until this year, we’ve seen significant gains across the portfolio of products in home theater. And then, beginning in February with our overt effort to connect Geek Squad services and hardware, we’ve seen an acceleration in the PC business as well. Again, across all the components of what we consider to be the PC business -- desktops, notebooks, peripherals, software, et cetera. And on top of that, because we’re combining it, our services business is picking up market share as well. So it’s across the board and it’s more significant than we had seen prior to about 12 months ago. And we are always opening up new stores, so that’s always contributing. Our percent of new stores to our total though is less than it has been historically, so it really is more of the core business that is gaining market share than it is new store related.

In addition to what you’ve heard Dave and company talk about in terms of computing, we’ve also done incredibly well in gaming and also in digital imaging. Those areas we are investing heavily in them and they are really working very well for us, and so the across-the-board picture is absolutely the right one.

Thanks, Brian, for the question, and Barry and Bob for the answers. Next question, please.

Our next question comes from Matt Fassler with Goldman Sachs. Please go ahead.

Thanks a lot. Good morning. I would like to dig a little bit deeper into the home theater margin dynamic. Can you think about where the supply chain is and your interaction with the supply chain at this point of the year versus where it was a year ago, which I believe was the time that the supply chain started to see some negative fallout? And if you can kind of put the second quarter home theater gross margin performance in context of how that should help us think about the second half.

Thanks, Matthew. When I look at last year, there was one thing that was definitely evident was a growing increase in flat panel availability and we all started to notice that in the industry, that the opposite is actually true now, particularly in smaller screen sizes. As my colleague Dave had tremendous success in notebooks, a lot of the manufacturers shifted some of their small screen size production to notebook and monitor panels, so that now 32-inch and below are actually in tight supply, which is a positive in the sense of as far as pricing is concerned. Larger screens sizes are coming into the marketplace and I think that’s where we are seeing the biggest increase in availability and in price declines right now, as those categories are starting to become more affordable. So as I look out into the second half, I see a little more stability in the availability versus the demand and hopefully that will translate itself into a more positive third quarter activity.

Thank you. Next question, please.

That would third quarter, our third quarter, which would correlate with part of the --

With November.

Right, calendar fourth quarter.

Next question, please.

Our next question comes from Mike Voss with Alex Brown Investment Management. Please go ahead.

Hi, guys, I just have a question on how much cash was actually used to buy back stock in the quarter. Was it the full $3 billion or something less than that?

The full $3 billion.

And so if I did the basic math, it looks like you paid around $52, $53 a share. If that’s accurate, how do you juxtapose that -- I guess it was an agreement you had with Goldman Sachs, but how do you juxtapose that relative to the stock that never really traded at that level in the entire quarter?

Good morning. The way that the math works on that is we only received a partial delivery of the shares underneath that agreement, so it is inaccurate just to take the number of shares divided by the dollar amount because there will be a supplemental delivery at the back end of the contract. The number of shares under that supplemental delivery is in the range that we talked about. It would depend on the market price but we would estimate it somewhere between 7 million and 12 million shares.

So when all is said and done, what do you think the average cost that you would have paid for the shares to be?

It would approximate the volume weighted average price during the contract period, which runs from mid July through the end of the fiscal year.

So it should be somewhere let’s say in the low to mid 40s, given that the preponderance of the shares have already been purchased?

Certainly. What we don’t know is what the price is going to be between now and the end of February.

Right. Okay, thanks.

Thanks for the question, Mike. Next question, please.

Our next question comes from Scott Ciccarelli with RBC Capital Markets. Please go ahead.

I had a question just on the spending side. I mean, you guys have spent a lot of money and you use the term investment, of course, but you know, invested a lot of money in different parts of your business. But with the SG&A performance that we had in this quarter, should we read anything into that regarding future spending plans or expectations? I know there tends to be some lumpiness in it, but just in general in terms of what the outlook is on investment spending. Are we starting to reap some of the fruits of the previous spending? Just give us a framework, if you would. Thanks.

I hope two things are true; one is that we never stop investment spending in our growth options, and two, we are clearly gaining some of the benefits in our business and our expense model from previous expenditures, most notably the comments that we talked about this morning. The performance in our Canadian business after initial years of infrastructure investment, to see that type of leverage in that business is truly impressive. Sean also talked about how our services business has grown after a number of years of investment spending behind that, so those are two real life examples showing up in our numbers today of leverage we are getting from previous investments. When we saw the results in our first quarter, conventional wisdom may have said to start to dial back in our investment. We absolutely did not do that. As a matter of fact, we pushed forward. We opened up more new stores in the first half of this year, almost 70% more than we did last year. We continue to see that as a strong growth vehicle and we certainly look for options to continue to improve our expense structure going forward. So we are not moderating the expense lever based on just the current environment we’re in. We are really continuing to push forward on our growth options because we think that’s the longer term answer that makes our business model work and will deliver those consistent shareholder returns going forward.

Thank you, Jim. Next question, please.

Our next question comes from Danielle Fox with Merrill Lynch. Please go ahead.

Thank you. Could you talk a little bit more about what you expect to be different this year versus last in the promotional environment for Christmas? It sounds like you are expecting a more benign environment and I’m wondering why that is? And if you could also just comment on the costs associated with some of your credit promotions and how those have maybe changed. Thank you.

As we look at the back half of this year, consistent with what we said on the last call, we know that we are lapping a dramatically more promotional environment that we experienced last year, and our confidence in that around the performance for this year is really predicated on what we’ve heard in the marketplace from the different constituents, being our vendors and our customers, around the experience they had in the back half of last year. Our intelligence tells us that we are going to have a more rational promotional environment. I think that is played out in our numbers to date. Certainly in our margins within the second quarter demonstrate that. And we have a long way to go yet in the back half of the year but it is really that collective intelligence we have in the external marketplace that’s given us that view. The other things that we look at is the competitive environment from the store fronts that are out in the back half of the year has changed year over year. We have fewer competitors like CompUSA, we have Tweeter who’s got obviously fewer stores than they had last year, so there’s less retail square footage in the space that we were selling products that allows us to really accelerate for the customer. I think we also spoke on the call about our continued relationship and expansion of our strategic relationship with HSBC and that we are really using that relationship to improve our loyalty programs internally, which is having a positive impact on our ability to provide customers with attractive financial offers to buy some of the larger ticket items in our portfolio. So we continue to be very, very happy with that relationship and really believe that that’s bringing a competitive advantage in the marketplace for us.

I would also add that in the PC business last year in the back half, there was a fair amount of angst around the transition of the XP operating system, and so a number of products were cleared out early by some competitors. That led to a rush at the end of the cycle. This year, it is a much more rational cycle in the PC business and Vista has also provided some level of stability in terms of, with its features and benefits, more customers are trading up in that space to enjoy those features and benefits. So again, slightly higher prices in terms of PCs overall compared to last year, and particularly with regard to the transition costs that were experienced last year.

Thank you. That was Jim and Dave Morrish. Next question, please.

Our next question comes from Jonathan Cramer with Cowen & Company. Please go ahead. Jonathan Cramer - Cowen & Company: Good morning. Given your out-performance in the international group this quarter, just your expectations for where the growth is going to come for the remainder of the year between domestic and international and what are some of the key drivers in the Canadian business.

Bob, I’ll be happy to talk about the balance of the domestic business if you wanted to frame the Canadian performance for the back half of the year.

First of all, I would like to say it’s more of the same. We are on a track. We’ve been on a track now for a good 12, 18 months and the focus is not changing. We’ve made some great in-roads but there is still a long way to go. We are still early into the journey and as we said, we look to 5% next year and beyond that, I’m not going to say anymore otherwise --

Five percent margins.

Five percent operating margins, so I think it is more of the same in Canada and more of the same in China. We are starting to really learn now what works and what doesn’t work in China. We’ve learned a great deal from the consumer research. We’ve seen some success. We’ve also seen what doesn’t work and we are now starting to turn those things into a model store in Five Star and we are also looking to open more Best Buy stores in the first half of next year, now that we’ve really understood. But it’s more of the same. I don’t want to say it’s different because it isn’t.

Jonathan, I’ll maybe just round out the enterprise view. I would tell you that as we looked at our estimates for the second quarter, I don’t think we -- I know we didn’t write down a 16 comp for Canada in the second quarter based on the even more difficult comparisons they had in the second quarter, so to Bob’s point, we continue to look for robust growth there but we’ll be lapping some more difficult comps in the back half of the year in Canada. In the U.S. business, we’ve actually got a number of very exciting product cycles that are different than last year. We have a gaming cycle that essentially launched in Q3 of last year with very limited availability of product. Our employees are telling us that there is strong customer demand in those spaces and we are looking forward to having much more product available to meet those needs for our customers. We are also looking at, as Dave mentioned on the call, just a large number of computer solutions, including Apple in the assortment that we didn’t have last year in that portfolio, which will be to strengthen our product mix. Also, with the Apple announcement around the new iPods and the new solutions they brought to the music space generates another level of customer excitement. And not to be forgotten in the mix, certainly as we believe we have a much stronger new release schedule in the DVD business based on the strength of the box office performers early in the year. So if I couple all that with the great progress we are making in services and Mike Vitelli’s comments around the availability of product and the new improvements we’ve made in the high definition advantage solution, we really feel good about the things that we control in the product cycle and solutions for the back half of the year. The $64,000 question that you know is how is the macro environment going to either plus that up or actually detract from that in the consumer’s mind in the back half of the year.

I think, Jonathan, the frame we absolutely want to leave you with long term though is that you should not miss the point about making our international investments. So we didn’t talk about China. Longer term, we see a $100 billion market. Services, we see a $60 billion market, and Best Buy for Business, we see an $80 billion market. And you know what? In Detroit, we saw a five comp. So what you should take away from that is that we see growth throughout all parts of our enterprise and the one I would focus us on again is I am wowed we did a five comp in Detroit. I think that is a microcosm of the opportunity that we have, and we have to continue to push out into these other places to diversify our portfolio, and so longer term I think it is going to be the combination of the diversity of the portfolio and the growth that we are seeing inherent in our core business by getting back in and figuring out in difficult times how you can do a five comp in Detroit.

All right. Thank you, Darren. We’ll take our last question, please.

Our final question comes from [Carly Whitter] with [Marisko] Capital Management. Please go ahead.

Thank you. I have two questions. The first question is on Apple. Can you elaborate a little bit more why you are starting to see some success right now? Is it really due to the presence of Apple employees in the stores? And can you talk about the mix of products that are being sold? And the second question I’ll follow up with is on appliances.

To begin with, I guess there’s a number of different reasons you could look at the success we’re enjoying. First of all, I think we’ve established a very good brand presence for Apple in our store. We work very closely with Apple to make sure that we lived up to their brand expectations, but at the same time you asked a question around having their employees in our store and our employees in our store. I think we are very pleasantly surprised that there’s joint learning going on between our employees and their employees, and I think the overall level that we are able to generate in terms of customer satisfaction with the Apple brand between both sets of employees has improved significantly, and the spillover into even regular Microsoft PCs has been exciting, and so we are enjoying growth on both sides of that.

And are you seeing a lot of the strength on the Apple side in the Mac side or on the music side?

I’ll let Julie Owen comment on the iPod side, but with regard to iMac, we’re seeing significant improvement in terms of sales levels, even in many stores above what’s being experienced in the Apple stores, so I’m really, really happy with the number of products we’re putting out the door and as well, it’s been all incremental in those particular stores, so pretty exciting results.

On the Apple side, in the music -- and I’d actually call it music and video space, Apple continues to introduce some exciting products that really make people get access to bring in their music and now, with the new Nano video screen, the ability to take your video everywhere. So we are seeing a ton of excitement from consumers around those products and they love coming to Best Buy to see the full solution of how they might bring those things together. We’ve got some nice inventory of that and see a huge upside for consumers in that space.

This is also working well for us in Canada and in China. And looking at things through the lens of the customer and applying the customer segmentation data in Shanghai, we’ve actually got a very large Apple store inside our store and we’ve seen spectacular results. I don’t want to disclose the share that we’ve got of Apple’s business in Shanghai but let’s just say it’s pretty big. In Canada, Apple is also accounting for a large proportion of our business. It’s looking at what it is that customers really want as opposed to what we think they want. It’s taking the data, the customer analytics and really applying it to space allocation and the way in which we create the shopping experience. And there’s no question it’s working well for us and if the Canadian team were here, they would tell you how well it has really worked for us. And as a result of that, we are getting great investment and cooperation with Apple to build it out.

I would add one thing, sorry, Jen. I would add just one thing; Apple’s a very vivid example. We have a number of our vendor partners making some really good moves around working with us on being customer focused and delivering value propositions that matter to our customers. Apple’s just a particularly vivid example at this moment.

Okay, that’s helpful. Thanks. The second question I had was on appliances, which the whole market is down and your comps are down, seven on top of down two last year. Can you talk about how promotional that category is, what the trends were like intra-quarter, and the competitive environment?

Thanks for asking about appliances because we think that’s one of the spaces where we’ve made some really positive progress, even in this down market. It’s one of the spaces where our customer satisfaction index with the employees in that department is the highest in the company. We’ve gained share in the down market. Part of the decline was also a pretty significant decline versus last year in air conditioning, so we actually saw some positive signs in other areas. But I think we are in a great position, both because we have a relatively modest share in the space. We’ve made some significant improvements in the products that we have and the customers we have that when that market starts to come back on a macro level, we’ll continue to gain share there. Competitively, I think everybody is looking at the space and saying you are not going to be able to buy share in a time like this because it’s -- and people are I think acting accordingly.

Thanks, Mike. With that, we are going to conclude our call. On the previous question, just so all know, it was Dave Morrish, Julie Own, Senior Vice President of Entertainment, and Bob Willett. Thanks to our audience for participating in our second quarter earnings conference call. As a reminder, a replay will be available by dialing in the U.S. 800-405-2236, or internationally 303-590-3000, and entering the personal identification number of 11096979. The replay will be available from about 12:00 p.m. today until 1:00 a.m. Eastern Time next Tuesday, September 25th. You can also hear the replay on www.bestbuy.com. Just click on “For Our Investors”. If you have additional questions, please call Jennifer Driscoll at 612-291-6110; Charles Marentette at 612-291-6184; or me, Carla Haugen, at 612-291-6146. Reporters, on the other hand, should contact Sue Busch, Director of Corporate Public Relations, at 612-291-6114. And that concludes our call.

Ladies and gentlemen, this does conclude the Best Buy conference call for the second quarter of fiscal 2008. You may now disconnect and we thank you for using AT&T teleconferencing. Did the analysts get it right?: