Best Buy 2012 Annual Report Download - page 90

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$ in millions, except per share amounts or as otherwise noted
90
For continuing operations, the inventory write-downs related to our fiscal 2011 restructuring activities are presented in
Restructuring charges — cost of goods sold in our Consolidated Statements of Earnings, and the remainder of the restructuring
charges are presented in Restructuring charges in our Consolidated Statements of Earnings. However, all restructuring charges
from discontinued operations related to our fiscal 2011 restructuring activities are presented in Loss from discontinued
operations in our Consolidated Statements of Earnings. The composition of the restructuring charges we incurred in fiscal 2012
and 2011, as well as the cumulative amount incurred through the end of fiscal 2012, for our fiscal 2011 restructuring activities,
was as follows:
Domestic International Total
Fiscal
2012 Fiscal
2011 Cumulative
Amount Fiscal
2012 Fiscal
2011 Cumulative
Amount Fiscal
2012 Fiscal
2011 Cumulative
Amount
Continuing operations
Inventory write-downs $ 19 $ 9 $ 28 $ — $ — $ — $ 19 $ 9 $ 28
Property and equipment
impairments — 15 15 — 107 107 — 122 122
Termination benefits (3) 16 13 — — — (3) 16 13
Facility closure and other costs 4 — 4 — — — 4 — 4
Total 20 40 60 — 107 107 20 147 167
Discontinued operations
Inventory write-downs — — — — 15 15 — 15 15
Property and equipment
impairments 15 — 15 — 25 25 15 25 40
Termination benefits 4 — 4 7 12 19 11 12 23
Intangible asset impairments 3 10 13 — — — 3 10 13
Facility closure and other costs 3 — 3 (8) 13 5 (5) 13 8
Total 25 10 35 (1) 65 64 24 75 99
Total $ 45 $ 50 $ 95 $ (1) $ 172 $ 171 $ 44 $ 222 $ 266
The following table summarizes our restructuring accrual activity during fiscal 2012 and 2011 related to termination benefits
associated with our fiscal 2011 restructuring activities:
Termination
Benefits
Facility
Closure and
Other Costs(1) Total
Balance at February 27, 2010 $ — $ — $ —
Charges 28 13 41
Cash payments — — —
Balance at February 26, 2011 28 13 41
Charges 11 6 17
Cash payments (33)(14)(47)
Adjustments (3) 4 1
Balance at March 3, 2012 $ 3 $ 9 $ 12
(1) Included within the facility closure and other costs adjustments is $10 from the first quarter of fiscal 2012, representing an adjustment to exclude non-
cash charges or benefits, which had no impact on our Consolidated Statements of Earnings in fiscal 2012.
Fiscal 2010 Restructuring
In April 2009, we updated our Domestic store operating model, which included eliminating certain positions. In addition, in the
first quarter of fiscal 2010, we incurred restructuring charges related to employee termination benefits and business
reorganization costs at Best Buy Europe within our International segment. As a result of our restructuring efforts, we recorded
charges of $52 in the first quarter of fiscal 2010.