Best Buy 2014 Annual Report Download - page 97

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92
The following table provides a reconciliation of changes in unrecognized tax benefits for fiscal 2014, 2013 (11-month) and
2012 ($ in millions):
12-Month 11-Month 12-Month
2014 2013 2012
Balance at beginning of period $ 383 $ 387 $ 359
Gross increases related to prior period tax positions 38 10 69
Gross decreases related to prior period tax positions (67)(22)(35)
Gross increases related to current period tax positions 34 37 43
Settlements with taxing authorities (3)(10)(20)
Lapse of statute of limitations (15)(19)(29)
Balance at end of period $ 370 $ 383 $ 387
Unrecognized tax benefits of $228 million, $231 million and $239 million at February 1, 2014, February 2, 2013, and March 3,
2012, respectively, would favorably impact our effective income tax rate if recognized.
We recognize interest and penalties (not included in the "unrecognized tax benefits" above), as well as interest received from
favorable tax settlements, as components of income tax expense. Interest expense of $8 million and penalties expense of $2
million were recognized in fiscal 2014. At February 1, 2014, February 2, 2013, and March 3, 2012, we had accrued interest of
$91 million, $85 million and $79 million, respectively, along with accrued penalties of $2 million, $0 million and $0 million at
February 1, 2014, February 2, 2013, and March 3, 2012, respectively.
We file a consolidated U.S. federal income tax return, as well as income tax returns in various states and foreign jurisdictions.
With few exceptions, we are no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax
authorities for years before fiscal 2005.
Because existing tax positions will continue to generate increased liabilities for us for unrecognized tax benefits over the next
12 months, and since we are routinely under audit by various taxing authorities, it is reasonably possible that the amount of
unrecognized tax benefits will change during the next 12 months. An estimate of the amount or range of such change cannot be
made at this time. However, we do not expect the change, if any, to have a material effect on our consolidated financial
condition, results of operations or cash flows within the next 12 months.
12. Segment and Geographic Information
Segment Information
Our chief operating decision maker ("CODM") is our Chief Executive Officer. Our business is organized into two segments:
Domestic (which is comprised of all operations within the U.S. and its territories) and International (which is comprised of all
operations outside the U.S. and its territories). Our CODM has ultimate responsibility for enterprise decisions. Our CODM
determines, in particular, resource allocation for, and monitors performance of, the consolidated enterprise, the Domestic
segment and the International segment. The Domestic segment managers and International segment managers have
responsibility for operating decisions, allocating resources and assessing performance within their respective segments. Our
CODM relies on internal management reporting that analyzes enterprise results to the net earnings level and segment results to
the operating income level.
We do not aggregate our operating segments, so our operating segments also represent our reportable segments. The accounting
policies of the segments are the same as those described in Note 1, Summary of Significant Accounting Policies.