Best Buy 2014 Annual Report Download - page 71

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66
The changes in the carrying amount of goodwill and indefinite-lived tradenames by segment were as follows in fiscal 2014,
2013 (11-month) and 2012 ($ in millions):
Goodwill Indefinite-Lived Tradenames
Domestic International Total Domestic International Total
Balances at February 26, 2011 $ 422 $ 2,032 $ 2,454 $ 21 $ 84 $ 105
Acquisitions(1) 94 — 94 1 — 1
Impairments(2) —(1,207)(1,207) — — —
Sale of business — (7)(7)(3)(2)(5)
Changes in foreign currency exchange
rates — 1 1 — 1 1
Other(3) — — — — 28 28
Balances at March 3, 2012 516 819 1,335 19 111 130
Acquisitions(4) 15 — 15 — — —
Impairments (3) (819)(822) — — —
Changes in foreign currency exchange
rates — — — — 1 1
Balances at February 2, 2013 528 — 528 19 112 131
Impairments — — — — (4)(4)
Sale of business(5) (103) — (103) — (22)(22)
Changes in foreign currency exchange
rates — — — — (4)(4)
Balances at February 1, 2014 $ 425 $ — $ 425 $ 19 $ 82 $ 101
(1) Represents goodwill acquired, primarily as a result of the mindSHIFT acquisition in fiscal 2012.
(2) Represents the full impairment of goodwill attributable to Best Buy Europe as described in Note 3, Profit Share Buy-Out. The gross carrying amount of
goodwill and cumulative impairment were written off as a result of the sale of Best Buy Europe in fiscal 2014.
(3) 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.
(4) Represents goodwill acquired, primarily as a result of an acquisition made by mindSHIFT in fiscal 2013 (11-month).
(5) Represents goodwill written-off as a result of the sale of mindSHIFT in fiscal 2014 and indefinite-lived tradenames written off as a result of the sale of
Best Buy Europe in fiscal 2014.
The following table provides the gross carrying amount of goodwill and cumulative goodwill impairment losses ($ in millions):
February 1, 2014 February 2, 2013
Gross Carrying
Amount(1) Cumulative
Impairment(1) Gross Carrying
Amount Cumulative
Impairment
Goodwill $ 1,308 $ (883) $ 2,608 $ (2,080)
(1) Excludes the gross carrying amount and cumulative impairment related to Best Buy Europe and mindSHIFT, which were sold during fiscal 2014.
Insurance
We are self-insured for certain losses related to health, workers' compensation and general liability claims; however, we obtain
third-party insurance coverage to limit our exposure to these claims. A portion of these self-insured losses are managed through
a wholly-owned insurance captive. We estimate our self-insured liabilities using a number of factors, including historical claims
experience, an estimate of incurred but not reported claims, demographic and severity factors, and valuations provided by
independent third-party actuaries. Our self-insured liabilities included in the Consolidated Balance Sheets were as follows ($ in
millions):
February 1, 2014 February 2, 2013
Accrued liabilities $ 88 $ 77
Long-term liabilities 52 47
Total $ 140 $ 124