Best Buy 2013 Annual Report Download - page 79

Download and view the complete annual report

Please find page 79 of the 2013 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 116

  • 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

79
impaired. The impairment loss was recorded in the Goodwill impairment line within our Consolidated Statements of Earnings
in the fourth quarter of fiscal 2012.
Acceleration of Intervening Event
The results of Best Buy Europe were recorded on a two-month lag in fiscal 2012. However, as described in Note 1, Summary of
Significant Accounting Policies, the Mobile buy-out in January 2012 constituted a significant intervening event. Consequently,
the recording of all accounting impacts arising from the Mobile buy-out, including the goodwill impairment, was accelerated
and recorded in the fourth quarter of fiscal 2012 due to their significance to our consolidated financial statements.
4. Discontinued Operations
During the fourth quarter of fiscal 2012, we commenced discontinued operations presentation. The presentation of discontinued
operations has been retrospectively applied to all prior periods presented. Discontinued operations comprise the following:
Domestic Segment
Speakeasy – During the second quarter of fiscal 2011, we completed the sale of Speakeasy to Covad Communications.
Speakeasy's operations primarily comprised internet-based telephony services. In consideration for the sale of Speakeasy, Best
Buy received cash consideration and a minority equity interest in the combined operations. We do not exercise significant
influence over the combined operations. Based upon the fair value of the consideration received and the carrying value of
Speakeasy at closing, we recorded a pre-tax gain on sale of $7 million in the second quarter of fiscal 2011.
Napster – During the third quarter of fiscal 2012, we sold certain assets comprising the domestic operations of Napster, Inc. to
Rhapsody International and ceased operations in the U.S. Napster's operations comprised digital media download and
streaming services in the U.S. In consideration for the sale of these assets, Best Buy received a minority investment in
Rhapsody International. We do not exercise significant influence over Rhapsody International.
International Segment
Best Buy China – During the fourth quarter of fiscal 2011, we announced the restructuring of our eight large-format Best Buy
branded stores in China. The closure of Best Buy branded stores was completed in the first quarter of fiscal 2012. Our fiscal
2011 restructuring activities included plans to restructure the large-format Best Buy branded stores in China.
Best Buy Turkey – During the fourth quarter of fiscal 2011, we announced the closure of our two large-format Best Buy
branded stores in Turkey. The exit activities were completed during the second quarter of fiscal 2012, at which time we
recorded a $4 million pre-tax gain on the sale of certain assets related to the stores.
Best Buy U.K. – During the third quarter of fiscal 2012, we announced the closure of our 11 large-format Best Buy branded
stores in the U.K. We completed the exit activities associated with these stores during the fourth quarter of fiscal 2012.
Belgium – During the fourth quarter of fiscal 2012, Best Buy Europe sold its retail business in Belgium, consisting of 82 small-
format The Phone House stores, to Belgacom S.A. As a result of the sale, a pre-tax gain of $5 million was recorded in fiscal
2012.
Table of Contents