Best Buy 2014 Annual Report Download - page 83

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78
The composition of the restructuring charges we incurred for this program in fiscal 2014 and 2013 (11-month), as well as the
cumulative amount incurred through the end of fiscal 2014, was as follows ($ in millions):
Domestic International Total
12-
Month
2014
11-
Month
2013 Cumulative
Amount
12-
Month
2014
11-
Month
2013 Cumulative
Amount
12-
Month
2014
11-
Month
2013 Cumulative
Amount
Continuing operations
Inventory write-downs $ — $ 1 $ 1 $ — $ — $ — $ — $ 1 $ 1
Property and equipment
impairments 7 7 14 2 23 25 9 30 39
Termination benefits 106 46 152 28 9 37 134 55 189
Investment impairments 16 27 43 — — — 16 27 43
Facility closure and other costs — 3 3 6 55 61 6 58 64
Total $ 129 $ 84 $ 213 $ 36 $ 87 $ 123 $ 165 $ 171 $ 336
The following table summarizes our restructuring accrual activity during fiscal 2014 and 2013 (11-month) related to
termination benefits and facility closure and other costs associated with this program ($ in millions):
Termination
Benefits
Facility
Closure and
Other Costs Total
Balance at March 3, 2012 $ — $ — $ —
Charges 55 54 109
Cash payments (1) — (1)
Balance at February 2, 2013 54 54 108
Charges 133 16 149
Cash payments (68)(23)(91)
Adjustments (8) 4 (4)
Balance at February 1, 2014 $ 111 $ 51 $ 162
Fiscal 2013 Europe Restructuring
In the third quarter of fiscal 2013 (11-month), we also initiated a series of actions to restructure our Best Buy Europe operations
in our International segment intended to improve operating performance. All restructuring charges related to this program are
reported within gain (loss) from discontinued operations in our Consolidated Statements of Earnings as a result of the sale of
our 50% ownership interest in Best Buy Europe. Refer to Note 4, Discontinued Operations. We incurred $95 million of
restructuring charges in fiscal 2014, consisting primarily of property and equipment impairments, and employee termination
benefits. In fiscal 2013 (11-month), we incurred $36 million of charges related to employee termination benefits, property and
equipment impairments, and facility closure and other costs. Given the sale of Best Buy Europe, we do not expect to incur
additional restructuring charges related to this program.
The composition of the restructuring charges we incurred for this program in fiscal 2014 and 2013 (11-month), as well as the
cumulative amount incurred through the end of fiscal 2014, was as follows ($ in millions):
International
12-Month 2014 11-Month 2013 Cumulative
Amount
Discontinued operations
Inventory write-downs $ 7 $ — $ 7
Property and equipment impairments 45 12 57
Termination benefits 36 19 55
Tradename impairments 4 — 4
Facility closure and other costs 3 5 8
Total $ 95 $ 36 $ 131