Best Buy 2014 Annual Report Download - page 86

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81
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 $ 17 $ 85 $ 102
Charges 1 2 3
Cash payments (18)(83)(101)
Adjustments(1) — 28 28
Changes in foreign currency exchange rates — 4 4
Balance at February 2, 2013 — 36 36
Cash payments — (33)(33)
Adjustments(2) —(1)(1)
Changes in foreign currency exchange rates — (2)(2)
Balance at February 1, 2014 $ — $ — $ —
(1) Included within adjustments to facility closure and other costs is $34 million from the first quarter of fiscal 2013 (11-month), representing an adjustment
to exclude non-cash charges or benefits, which had no impact on our Consolidated Statements of Earnings in fiscal 2013 (11-month).
(2) Included within adjustments to facility closure and other costs is a $5 million charge related to a change in sublease assumptions, offset by a $(6) million
adjustment to write off the remaining liability as a result of the sale of Best Buy Europe, as described in Note 4, Discontinued Operations.
Fiscal 2011 Restructuring Plan
In the fourth quarter of fiscal 2011, we implemented a series of actions to restructure operations in our Domestic and
International segments in order to improve performance and enhance customer service. The restructuring actions included plans
to improve supply chain and operational efficiencies in our Domestic segment's operations, primarily focused on modifications
to our distribution channels and exit from certain digital delivery services within our entertainment product category. During
fiscal 2013 (11-month), we recorded a net reduction to restructuring charges of $13 million, which related primarily to our
Domestic segment. The net reduction was largely the result of a gain recorded on the sale of a previously impaired distribution
facility and equipment during the first quarter of fiscal 2013 (11-month) (previously impaired through restructuring charges),
partially offset by charges associated with the exit from certain digital delivery services within our entertainment product
category.
In fiscal 2012, we incurred $44 million of charges related to this program, which related primarily to our Domestic segment
consisting primarily of property and equipment impairments (notably IT assets), employee termination benefits, intangible asset
impairments and other costs associated with the exit from certain digital delivery services within our entertainment product
category. Within our Domestic segment, we also incurred additional inventory write-downs as we completed the exit from
certain distribution facilities associated with our entertainment product category at the end of fiscal 2012. We have completed
activities under this program.
7. Debt
Short-Term Debt
Short-term debt consisted of the following ($ in millions):
February 1, 2014 February 2, 2013
Principal
Balance Interest
Rate Principal
Balance Interest
Rate
Europe revolving credit facility(1) $ — —% $ 596 2.0%
12-Month 11-Month
Fiscal Year 2014 2013
Maximum month-end amount outstanding during the year(1) $ 597 $ 596
Average amount outstanding during the year(1) 135 477