Best Buy 2005 Annual Report Download - page 51

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The following table reconciles International stores open at the beginning and end of fiscal 2004:
Total Total
Stores at Stores at
End of Stores Stores End of
Fiscal 2003 Opened Closed Fiscal 2004
Future Shop 104 4 — 108
Canadian Best Buy 8 11 — 19
Total 112 15 — 127
Note: During fiscal 2004, we relocated five Future Shop stores. No Canadian Best Buy stores were relocated or remodeled during fiscal
2004. At the end of fiscal 2004, we operated 108 Future Shop stores throughout all Canadian provinces and 19 Canadian Best Buy
stores in Ontario, Alberta and Manitoba.
totaling $66 million. The results of discontinued operations
Discontinued Operations for fiscal 2004 are included through the date of the sale,
On March 25, 2005, we received notification from the June 16, 2003. Fiscal 2003 results from discontinued
Internal Revenue Service (IRS) of a favorable resolution of operations are for the entire fiscal year. For additional
outstanding tax matters regarding the disposition of our information regarding discontinued operations, refer to
interest in Musicland. Based on the agreement with the Note 2, Discontinued Operations, of the Notes to
IRS, we recognized a $50 million tax benefit in fiscal Consolidated Financial Statements, included in Item 8,
2005. Financial Statements and Supplementary Data, of this
The sale of Musicland during fiscal 2004 resulted in an Annual Report on Form 10-K.
after-tax loss on the disposal of discontinued operations
The results from discontinued operations for the past three fiscal years are as follows ($ in millions):
Discontinued Operations Performance Summary (unaudited) 2005 2004 2003
Revenue $ — $354 $1,727
Operating loss — (46) (238)
Interest expense — — (6)
Loss before income tax benefit — (46) (244)
Income tax benefit(1) — (17) (119)
Loss before the disposal and the cumulative effect of accounting changes — (29) (125)
Gain (loss) on disposal of discontinued operations(2) 50 (66) —
Cumulative effect of changes in accounting principles, net of $5 tax(3) — — (316)
Gain (loss) from discontinued operations, net of tax $ 50 $ (95) $ (441)
(1) Fiscal 2003 included a $25 million tax benefit resulting from the differences between the bases of assets and liabilities for financial
reporting and income tax purposes at acquisition, which were expected to be realized upon the disposition of Musicland.
(2) Fiscal 2005 gain on disposal of discontinued operations represents the reversal of valuation allowances on deferred tax assets.
Fiscal 2004 loss on disposal of discontinued operations is net of $25 million tax benefit offset by a $25 million valuation
allowance.
(3) In the first quarter of fiscal 2003, we recorded an after-tax, noncash impairment charge of $308 million for the full write-off of
goodwill related to our acquisition of Musicland, in accordance with SFAS No. 142, Goodwill and Other Intangible Assets, which
was adopted effective on March 3, 2002. In addition, we recorded an after-tax, noncash charge of $8 million for the change in
our method of accounting for vendor allowances in accordance with EITF No. 02-16, Accounting by a Reseller for Cash
Consideration Received from a Vendor.
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