Best Buy 2012 Annual Report Download - page 73

Download and view the complete annual report

Please find page 73 of the 2012 Best Buy annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 117

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117

$ in millions, except per share amounts or as otherwise noted
73
The changes in the carrying amount of goodwill and indefinite-lived tradenames by segment were as follows in fiscal 2012,
2011 and 2010:
Goodwill Indefinite-Lived Tradenames
Domestic International Total Domestic International Total
Balances at February 28, 2009 $ 434 $ 1,769 $ 2,203 $ 32 $ 72 $ 104
Purchase accounting adjustments(1) — 48 48 — — —
Changes in foreign currency exchange
rates — 201 201 — 8 8
Balances at February 27, 2010 434 2,018 2,452 32 80 112
Acquisitions — 5 5 — — —
Impairments(2) — — — (10) — (10)
Sale of business(3) (12) — (12)(1) — (1)
Changes in foreign currency exchange
rates — 9 9 — 4 4
Balances at February 26, 2011 422 2,032 2,454 21 84 105
Acquisitions(4) 94 — 94 1 — 1
Impairments — (1,207)(1,207) — — —
Sale of business — (7)(7)(3)(2)(5)
Changes in foreign currency exchange
rates — 1 1 — 1 1
Other(5) — — — — 28 28
Balances at March 3, 2012 $ 516 $ 819 $ 1,335 $ 19 $ 111 $ 130
(1) The adjustment in fiscal 2010 related to the finalization of the purchase price allocations from our acquisitions of Best Buy Europe and Five Star.
(2) As part of our fiscal 2011 restructuring activities, we recorded an impairment charge related to certain indefinite-lived tradenames in our Domestic
segment. See Note 7, Restructuring Charges, for further information.
(3) As a result of the sale of our Speakeasy business in the second quarter of fiscal 2011, we eliminated the carrying value of the related goodwill and
indefinite-lived tradenames as of the date of sale.
(4) Represents goodwill acquired, primarily as a result of the mindSHIFT acquisition. See Note 4, Acquisitions, for further information.
(5) Represents the transfer of certain definite-lived tradenames (at their net book value) to indefinite-lived tradenames following our decision to no
longer phase out certain tradenames. We believe these tradenames will continue to contribute to our future cash flows indefinitely.
The following table provides the gross carrying amount of goodwill and cumulative goodwill impairment losses:
March 3, 2012 February 26, 2011
Gross Carrying
Amount Cumulative
Impairment Gross Carrying
Amount Cumulative
Impairment
Goodwill $ 2,596 $ (1,261) $ 2,519 $ (65)
Our tradenames and customer relationships were as follows:
March 3, 2012 February 26, 2011
Tradenames Customer
Relationships Tradenames Customer
Relationships
Indefinite-lived $ 130 $ — $ 105 $ —
Definite-lived — 229 28 203
Total $ 130 $ 229 $ 133 $ 203