Best Buy 2015 Annual Report Download - page 82
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Table of Contents
75
The composition of the restructuring charges we incurred for this program in fiscal 2015, 2014 and 2013 (11-month), as well as
the cumulative amount incurred through the end of fiscal 2015, was as follows ($ in millions):
Domestic International Total
12-
Month
2015
12-
Month
2014
11-
Month
2013 Cumulative
Amount
12-
Month
2015
12-
Month
2014
11-
Month
2013 Cumulative
Amount
12-
Month
2015
12-
Month
2014
11-
Month
2013 Cumulative
Amount
Continuing operations
Inventory write-downs $ — $ — $ 1 $ 1 $ — $ — $ — $ — $ — $ — $ 1 $ 1
Property and equipment
impairments — 7 7 14 1 1 23 25 1 8 30 39
Termination benefits 9 106 46 161 5 24 9 38 14 130 55 199
Investment impairments — 16 27 43 — — — — — 16 27 43
Facility closure and
other costs 1 — 3 4 (5) 1 55 51 (4) 1 58 55
Total continuing
operations 10 129 84 223 1 26 87 114 11 155 171 337
Discontinued Operations
Inventory write-downs — — — — — — — — — — — —
Property and equipment
impairments — — — — — 1 — 1 — 1 — 1
Termination benefits — — — — 12 4 — 16 12 4 — 16
Facility closure and
other costs — — — — 6 5 — 11 6 5 — 11
Total discontinued
operations — — — — 18 10 — 28 18 10 — 28
Total $ 10 $129 $ 84 $ 223 $ 19 $ 36 $ 87 $ 142 $ 29 $165 $171 $ 365
The following table summarizes our restructuring accrual activity during fiscal 2015 and 2014 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 February 2, 2013 $ 54 $ 54 $ 108
Charges 133 16 149
Cash payments (68)(23)(91)
Adjustments(1) (8) 4 (4)
Balance at February 1, 2014 111 51 162
Charges 47 16 63
Cash payments (121)(22)(143)
Adjustments(1) (21)(14)(35)
Changes in foreign currency exchange rates — (8)(8)
Balance at January 31, 2015 $ 16 $ 23 $ 39
(1) Adjustments to termination benefits were due to higher-than-expected employee retention. Adjustments to facility closure and other costs represent
change in sublease assumptions and reductions in our remaining lease obligations.
Other Restructuring Activities
Over the last few fiscal years, we have initiated multiple restructuring programs in an effort to focus on our core business and
reduce costs. These initiatives were comprised of the following:
• Fiscal 2013 Europe Restructuring: In the third quarter of fiscal 2013 (11-month), we initiated a series of actions to
restructure our Best Buy Europe operations in our International segment intended to improve operating performance.