Best Buy 2016 Annual Report Download - page 69

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In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, as a new Topic. Accounting Standards
Codification (ASC) Topic 606. The new guidance provides a comprehensive framework for the analysis of revenue transactions
and will apply to all of our revenue streams. Based on the current effective dates, the new guidance would first apply in the first
quarter of our fiscal 2019. While we are still in the process of evaluating the effect of adoption on our financial statements, we
do not currently expect a material impact on our results of operations, cash flows or financial position.
In February 2016, the FASB issued ASU 2016-02, Leases. The new guidance was issued to increase transparency and
comparability among companies by requiring most leases be included on the balance sheet and by expanding disclosure
requirements. Based on the current effective dates, the new guidance would first apply in the first quarter of our fiscal 2020. We
are still in the process of evaluating the effect of adoption on our financial statements.
Changes in Accounting Principles
In the fourth quarter of fiscal 2016, we adopted the following ASUs:
• The FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs in April 2015 and ASU 2015-15,
Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements in
August 2015. The new guidance aligns the treatment of debt issuance costs, with the exception of debt issuance costs
related to lines of credit, with the treatment of debt discounts, so that the debt issuance costs are presented on the
balance sheet as a direct deduction from the carrying amount of that debt liability. In the fourth quarter of fiscal 2016,
we retrospectively adopted ASU 2015-03 and ASU 2015-15. The adoption did not have a material impact on our
results of operations, cash flows or financial position.
• In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes. The new
guidance is part of the simplification initiative and requires all deferred income tax liabilities and assets to be
classified as non-current. In the fourth quarter of fiscal 2016, we retrospectively adopted ASU 2015-17. The adoption
did not have a material impact on our results of operations, cash flows or financial position.
The following table reconciles the balance sheet line items impacted by the adoption of these two standards for fiscal 2015:
Balance Sheet 2015 Reported
ASU 2015-03
& 2015-15
Adjustments
ASU 2015-17
Adjustments 2015 Adjusted
Other current assets $ 703 $ (2)$ (252) $ 449
Current assets held for sale 684 — (3) 681
Other assets 583 (6) 252 829
Total assets $ 15,256 $ (8)$ (3) $ 15,245
Long-term debt $ 1,580 $ (8) $ — $ 1,572
Long-term liabilities held for sale 18 — (3)15
Total liabilities & equity $ 15,256 $ (8)$ (3) $ 15,245
Cash and Cash Equivalents
Cash primarily consists of cash on hand and bank deposits. Cash equivalents consist of money market funds, treasury bills,
commercial paper, corporate bonds and deposits with an original maturity of 3 months or less when purchased. The amounts of
cash equivalents at January 30, 2016, and January 31, 2015, were $1,208 million and $1,660 million, respectively, and the
weighted-average interest rates were 0.5% and 0.4%, respectively.
Receivables
Receivables consist principally of amounts due from mobile phone network operators for commissions earned; banks for
customer credit card and debit card transactions; and vendors for various vendor funding programs.
We establish allowances for uncollectible receivables based on historical collection trends and write-off history. Our allowances
for uncollectible receivables were $49 million and $59 million at January 30, 2016, and January 31, 2015, respectively.