Best Buy 2014 Annual Report Download - page 84

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79
The following table summarizes our restructuring accrual activity during fiscal 2014 and 2013 (11-month) related to
termination benefits and facility closure and other costs associated with this program ($ in millions):
Termination
Benefits
Facility
Closure and
Other Costs Total
Balance at March 3, 2012 $ — $ — $ —
Charges 19 5 24
Cash payments (19) — (19)
Balance at February 2, 2013 — 5 5
Charges 36 2 38
Cash payments (2)(7)(9)
Adjustments(1) (34) — (34)
Balance at February 1, 2014 $ — $ — $ —
(1) Represents the remaining liability written off as a result of the sale of Best Buy Europe, as described in Note 4, Discontinued Operations.
Fiscal 2013 U.S. Restructuring
In the first quarter of fiscal 2013 (11-month), we initiated a series of actions to restructure operations in our Domestic segment
intended to improve operating performance. The actions included closure of 49 large-format Best Buy branded stores in the
U.S. and changes to the store and corporate operating models. The costs of implementing the changes primarily consisted of
facility closure costs, employee termination benefits, and property and equipment (primarily store fixtures) impairments. We
recognized a reduction to restructuring charges of $6 million in fiscal 2014 as a result of the buyout of a lease for less than the
remaining vacant space liability. In fiscal 2013 (11-month), we incurred $257 million of charges, primarily consisting of facility
closure and other costs, employee termination benefits, and property and equipment impairments. We do not expect to incur
further material restructuring charges related to this program, with the exception of lease payments for vacated stores which
will continue until the lease expires or we otherwise terminate the lease.
The restructuring charges related to this program are from continuing operations and are presented in restructuring charges in
our Consolidated Statements of Earnings. The composition of the restructuring charges we incurred for this program in fiscal
2014 and 2013 (11-month), as well as the cumulative amount incurred through the end of fiscal 2014, was as follows ($ in
millions):
Domestic
12-Month 2014 11-Month 2013 Cumulative
Amount
Continuing operations
Property and equipment impairments $ — $ 29 $ 29
Termination benefits — 77 77
Facility closure and other costs (6) 151 145
Total $ (6) $ 257 $ 251
The following table summarizes our restructuring accrual activity during fiscal 2014 and 2013 (11-month) related to
termination benefits and facility closure and other costs associated with this program ($ in millions):
Termination
Benefits
Facility
Closure and
Other Costs Total
Balance at March 3, 2012 $ — $ — $ —
Charges 109 152 261
Cash payments (65)(33)(98)
Adjustments (40)(6)(46)
Balance at February 2, 2013 4 113 117
Charges — 4 4
Cash payments (2)(46)(48)
Adjustments (2)(13)(15)
Balance at February 1, 2014 $ — $ 58 $ 58