Best Buy 2014 Annual Report Download - page 82

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77
Fair Value of Financial Instruments
Our financial instruments, other than those presented in the disclosures above, include cash, receivables, short-term
investments, other investments, accounts payable, other payables, and short- and long-term debt. The fair values of cash,
receivables, short-term investments, accounts payable, other payables and short-term debt approximated carrying values
because of the short-term nature of these instruments. If these instruments were measured at fair value in the financial
statements, they would be classified as Level 1 in the fair value hierarchy. Fair values for other investments held at cost are not
readily available, but we estimate that the carrying values for these investments approximate fair value. See Note 7, Debt, for
information about the fair value of our long-term debt.
6. Restructuring Charges
Summary
Restructuring charges incurred in fiscal 2014, 2013 (11-month) and 2012 were as follows ($ in millions):
12-Month 11-Month 12-Month
2014 2013 2012
Continuing operations
Renew Blue $ 165 $ 171 $ —
Fiscal 2013 U.S. restructuring (6) 257 —
Fiscal 2012 restructuring — (1) 28
Fiscal 2011 restructuring — (12) 20
Total 159 415 48
Discontinued operations
Fiscal 2013 Europe restructuring 95 36 —
Fiscal 2012 restructuring 5 (1) 215
Fiscal 2011 restructuring — (1) 24
Total (Note 4) 100 34 239
Total $ 259 $ 449 $ 287
Renew Blue Plan
In the fourth quarter of fiscal 2013 (11-month), we began implementing initiatives intended to reduce costs and improve
operating performance. These initiatives included focusing on core business activities, reducing headcount, updating our store
operating model and optimizing our real estate portfolio. These cost reduction initiatives represent one of the key Renew Blue
priorities for fiscal 2014 and cost reductions will continue to be a priority in fiscal 2015. We incurred $165 million of charges
related to Renew Blue initiatives during fiscal 2014. Of the total charges, $129 million related to our Domestic segment, which
consisted of employee termination benefits, investment impairments, and property and equipment impairments. The remaining
$36 million of charges related to our International segment and consisted of employee termination benefits, facility closure and
other costs, and property and equipment impairments. We expect to continue to implement cost reduction initiatives throughout
fiscal 2015, as we further analyze our operations and strategies.
We incurred $171 million of charges related to Renew Blue initiatives during fiscal 2013 (11-month). Of the total charges, $84
million related to our Domestic segment, which consisted primarily of employee termination benefits, investment impairments,
and property and equipment impairments. The remaining $87 million of charges related to our International segment and
consisted of facility closure and other costs, property and equipment impairments, and employee termination benefits.
All restructuring charges related to this plan are from continuing operations. Inventory write-downs are presented in
restructuring charges - cost of goods sold in our Consolidated Statements of Earnings, and the remainder of restructuring
charges are presented in restructuring charges in our Consolidated Statements of Earnings.