Best Buy 2012 Annual Report Download - page 82

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$ in millions, except per share amounts or as otherwise noted
82
The financial results of discontinued operations for fiscal 2012, 2011 and 2010 were as follows:
2012 2011 2010
Revenue $ 411 $ 525 $ 451
Restructuring charges(1) 229 75 —
Loss from discontinued operations before income tax benefit (406)(260)(134)
Income tax benefit 89 57 33
Gain on sale of discontinued operations 9 7 —
Income tax benefit on sale — 8 —
Net loss from discontinued operations including noncontrolling interests (308)(188)(101)
Net loss from discontinued operations attributable to noncontrolling interests 134 38 19
Net loss from discontinued operations attributable to Best Buy Co., Inc. $ (174) $ (150) $ (82)
(1) See Note 7, Restructuring Charges, for further discussion of the restructuring charges associated with discontinued operations.
4. Acquisitions
mindSHIFT
In December 2011, we acquired 100% of mindSHIFT Technologies, Inc. ("mindSHIFT"), a managed service provider for
small- and mid-sized companies, for $175 (or $168 net of cash acquired). The acquisition date was the close of business on
December 28, 2011. We have consolidated mindSHIFT in our financial results as part of our Domestic segment from the date
of acquisition. We expect the allocation of the purchase price to the acquired assets and liabilities to be finalized in the first
quarter of fiscal 2013. Of the $175 final purchase price, $74 was allocated to customer relationships and $91 was allocated to
goodwill, with the remaining $10 allocated primarily to working capital and property, plant and equipment. The customer
relationships will be amortized over a weighted average period of 15 years. None of the goodwill is deductible for tax purposes.
We entered into this transaction as mindSHIFT is the leading managed service provider for small and mid-sized business in the
U.S. Coupled with our retail, Geek Squad services and Best Buy for Business operations, we anticipate that mindSHIFT will
capture a greater share of the small-to-mid-sized managed service provider market.
5. Investments
Investments were comprised of the following:
March 3,
2012 February 26,
2011
Short-term investments
Money market fund $ — $ 2
U.S. Treasury bills — 20
Total short-term investments $ — $ 22
Equity and other investments
Debt securities (auction rate securities) $ 82 $ 110
Marketable equity securities 3 146
Other investments 55 72
Total equity and other investments $ 140 $ 328
Debt Securities
Our debt securities are comprised of ARS. ARS were intended to behave like short-term debt instruments because their interest
rates reset periodically through an auction process, most commonly at intervals of seven, 28 and 35 days. The auction process