Best Buy 2014 Annual Report Download - page 85

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80
Fiscal 2012 Restructuring Plan
In the third quarter of fiscal 2012, we implemented a series of actions to restructure operations in our Domestic and
International segments. The actions within our Domestic segment included a decision to modify our strategy for certain mobile
broadband offerings. In our International segment, we closed our large-format Best Buy branded stores in the U.K. and
impaired certain information technology assets supporting the restructured operations. All restructuring charges related to Best
Buy Europe, including the charges related to the large-format Best Buy branded stores in the U.K., are reported within gain
(loss) from discontinued operations in our Consolidated Statements of Earnings. Refer to Note 4, Discontinued Operations. All
other restructuring charges related to this program are from continuing operations and are presented in restructuring charges in
our Consolidated Statements of Earnings.
We incurred $5 million of charges related to this program in fiscal 2014, representing a change in sublease assumptions. During
fiscal 2013 (11-month), we recorded a gain of $2 million related to this program, primarily related to our International segment
from adjustments to estimated facility closures costs associated with the closure of our Best Buy branded stores in the U.K.
We incurred $243 million of charges related to this program during fiscal 2012. Of the total charges, $23 million related to our
Domestic segment and consisted primarily of IT asset impairments and other related costs. The remaining $220 million of
charges related to our International segment and consisted primarily of property and equipment impairments, facility closure
and other costs, employee termination benefits and inventory write-downs. We do not expect to incur further material
restructuring charges related to this program in either our Domestic or International segments, as we have substantially
completed these restructuring activities.
The composition of the restructuring charges we incurred for this program in fiscal 2014, 2013 (11-month) and 2012, as well as
the cumulative amount incurred through the end of fiscal 2014, was as follows ($ in millions):
Domestic International Total
12-
Month
2014
11-
Month
2013
12-
Month
2012 Cumulative
Amount
12-
Month
2014
11-
Month
2013
12-
Month
2012 Cumulative
Amount
12-
Month
2014
11-
Month
2013
12-
Month
2012 Cumulative
Amount
Continuing operations
Property and equipment
impairments $ — $ — $ 17 $ 17 $ — $ — $ 5 $ 5 $ — $ — $ 22 $ 22
Termination benefits — — 1 1 — — — — — — 1 1
Facility closure and
other costs — (1) 5 4 — — — — — (1) 5 4
Total — (1) 23 22 — — 5 5 — (1) 28 27
Discontinued operations
Inventory write-downs — — — — — — 11 11 — — 11 11
Property and equipment
impairments — — — — — — 106 106 — — 106 106
Termination benefits — — — — — 1 16 17 — 1 16 17
Facility closure and
other costs — — — — 5 (2) 82 85 5 (2) 82 85
Total — — — — 5 (1) 215 219 5 (1) 215 219
Total $ — $ (1) $ 23 $ 22 $ 5 $ (1) $ 220 $ 224 $ 5 $ (2) $ 243 $ 246