Best Buy 2015 Annual Report Download - page 77

Table of Contents
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The composition of assets and liabilities held for sale as of January 31, 2015, was as follows ($ in millions):
January 31, 2015
Cash and cash equivalents $ 194
Merchandise inventories 264
Other current assets 226
Net property and equipment 130
Other assets 37
Total assets $ 851
Accounts payable $ 452
Other current liabilities 133
Long-term liabilities 18
Total liabilities $ 603
Best Buy Europe – During the second quarter of fiscal 2014, we completed the sale of our 50% ownership interest in Best Buy
Europe to CPW in return for the following consideration upon closing: net cash of £341 million ($526 million); £80 million
($123 million) of ordinary shares of CPW; £25 million ($39 million), plus 2.5% interest, to be paid by CPW on June 26, 2014;
and £25 million ($39 million), plus 2.5% interest, to be paid by CPW on June 26, 2015. We subsequently sold the ordinary
shares of CPW for $123 million on July 3, 2013, and we received the first such deferred cash payment on June 26, 2014.
In conjunction with our agreement to sell our 50% ownership interest in Best Buy Europe, we entered into a deal-contingent
foreign currency forward contract to hedge £455 million of the total £471 million of net proceeds. The contract was settled in
cash following the completion of the sale on June 26, 2013, and we recognized a $2 million loss in gain (loss) from
discontinued operations on our Consolidated Statements of Earnings in fiscal 2014.
The aggregate financial results of all discontinued operations for fiscal 2015, 2014 and 2013 (11-month) were as follows ($ in
millions):
12-Month 11-Month
2015 2014 2013
Revenue $ 1,564 $ 4,615 $ 6,834
Restructuring charges(1) 18 110 34
Loss from discontinued operations before income tax benefit(2) (12)(235)(187)
Income tax benefit(3) — 31 30
Gain on sale of discontinued operations(4) 1 32 —
Equity in loss of affiliates — — (4)
Net loss from discontinued operations including noncontrolling interests (11)(172)(161)
Net (earnings) loss from discontinued operations attributable to noncontrolling
interests (2) 9 (21)
Net loss from discontinued operations attributable to Best Buy Co., Inc. shareholders $ (13) $ (163) $ (182)
(1) See Note 4, Restructuring Charges, for further discussion of the restructuring charges associated with discontinued operations.
(2) Includes the $175 million impairment to write down the book value of our investment in Best Buy Europe to fair value in fiscal 2014 and the $208 million
goodwill impairment related to our Five Star reporting unit in fiscal 2013 (11-month).
(3) Income tax benefit for fiscal 2014 includes a $27 million benefit related to a tax allocation between continuing and discontinued operations and a $15
million benefit related to the impairment of our investment in Best Buy Europe. The fiscal 2014 effective tax rate for discontinued operations differs from
the statutory tax rate primarily due to the previously mentioned tax allocation, sale of mindSHIFT, restructuring charges and the impairment of our
investment in Best Buy Europe. The sale of mindSHIFT, restructuring charges and impairment generally included no related tax benefit. The deferred tax
assets related to the sale of mindSHIFT and restructuring charges generally resulted in an increase in the valuation allowance in an equal amount, of
which the investment impairment is not tax deductible.
(4) Gain in fiscal 2014 is primarily comprised of the following: $28 million gain (with no tax impact) from sale of Best Buy Europe fixed-line business in
Switzerland in the first quarter; $24 million gain (with no tax impact) from the sale of Best Buy Europe in the second quarter; and loss of $18 million
from sale of mindSHIFT in the fourth quarter.