Best Buy Fiscal Year 2022 ESG Report | 42 Diversity, Equity & Inclusion . Annually, we conduct an enterprise pay review, which takes into account employees’ responsibilities, tenure and location, and other job-related factors. Adjustments are made as needed. Ensuring employees are paid fairly and equitably is a goal across our pay processes. Pay gaps associated with gender or race persist across various industries and often reflect the broader social challenges we’re facing where unconscious bias and unequal access to opportunities are a factor. Within Best Buy we combat these challenges through regular reviews of our pay data, policies, practices and tools. How pay gaps are measured. Unadjusted or raw median pay gaps measure the difference between the median pay of one group of employees versus another (group refers to male, female, white, Black, etc.) Median pay represents a typical employee’s pay. Employees in a group are ranked based on their pay, and the individual who is between the highest and lowest paid is the representative for the entire group. This approach explicitly includes differences in job responsibilities and pay. Adjusted pay gaps measure pay differences associated with race or gender after factors are considered such as job responsibilities, seniority, experience and local labor market conditions. This is calculated using a statistical model in an attempt to measure equal pay for equal work. This approach attempts to explicitly focus on measuring whether peers doing similar work with similar qualifications are paid fairly. * B IPOC represents the following: American Indian or Alaskan Native, Asian, Black or African American, Hispanic or Latino of any race, Native Hawaiian or other Pacific Islander and anyone of two or more races. ** T he unadjusted median pay rate includes all U.S. employees (hourly and salaried) as of January 29, 2022. The pay rate was calculated using all wages, bonuses and stock awards that vested in FY22 and dividing by hours worked. *** T he adjusted pay gap includes all U.S. employees as of January 29, 2022, excluding officers, commission- based sales professionals and employees on tenure- based step-rate programs in Supply Chain. The model focuses on base pay, as almost all bonus and stock programs for this population are driven by job level, salary and company results on a formulaic basis. Control variables in the model include job level, time in job level, tenure with Best Buy and local geography. Unadjusted Pay Gaps** Median Pay Rate Adjusted Pay Gaps*** Controlled Pay Gap Women relative to Men BIPOC* relative to white Best Buy’s U.S. pay equity results 100.3% 94.2% 99.6% 99.8%