Best Buy 2015 Annual Report Download - page 84

Table of Contents
77
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 these programs ($ in millions):
Termination
Benefits
Facility
Closure and
Other Costs Total
Balance at February 2, 2013 $ 4 $ 154 $ 158
Charges 36 6 42
Cash payments (4)(86)(90)
Adjustments(1) (36)(14)(50)
Changes in foreign currency exchange rates — (2)(2)
Balance at February 1, 2014 — 58 58
Charges — 3 3
Cash payments — (21)(21)
Adjustments(1) —(6)(6)
Balance at January 31, 2015 $ — $ 34 $ 34
(1) Adjustments to termination benefits in fiscal 2014 were primarily due to the write-off of the remaining liability as a result of the sale of Best Buy Europe.
Adjustments to facility closure and other costs represent change in sublease assumptions and reductions in our remaining lease obligations.
5. Debt
Short-Term Debt
U.S. Revolving Credit Facilities
Our $500 million 364-day senior unsecured revolving credit facility agreement with a syndicate of banks, which was entered
into on June 25, 2013, expired on June 25, 2014.
On June 30, 2014, we entered into a $1.25 billion five-year senior unsecured revolving credit facility agreement (the "Five-Year
Facility Agreement") with a syndicate of banks. The Five-Year Facility Agreement replaced the previous $1.5 billion senior
unsecured revolving credit facility with a syndicate of banks, which was originally scheduled to expire in October 2016, but
was terminated on June 30, 2014.
The interest rate under the Five-Year Facility Agreement is variable and is determined at our option as: (i) the sum of (a) the
greatest of (1) JPMorgan's prime rate, (2) the federal funds rate plus 0.5%, and (3) the one-month London Interbank Offered
Rate (“LIBOR”) plus 1.0%, and (b) a variable margin rate (the “ABR Margin”); or (ii) the LIBOR plus a variable margin rate
(the “LIBOR Margin”). In addition, a facility fee is assessed on the commitment amount. The ABR Margin, LIBOR Margin
and the facility fee are based upon the registrant's current senior unsecured debt rating. Under the Five-Year Facility
Agreement, the ABR Margin ranges from 0.0% to 0.925%, the LIBOR Margin ranges from 1.000% to 1.925%, and the facility
fee ranges from 0.125% to 0.325%. At January 31, 2015, and February 1, 2014, there were no borrowings outstanding and at
January 31, 2015, $1.25 billion was available under the Five-Year Facility Agreement.
The Five-Year Facility Agreement is guaranteed by specified subsidiaries of Best Buy Co., Inc. and contain customary
affirmative and negative covenants. Among other things, these covenants restrict Best Buy Co., Inc. and certain of its
subsidiaries' ability to incur certain types or amounts of indebtedness, incur liens on certain assets, make material changes in
corporate structure or the nature of its business, dispose of material assets, engage in a change in control transaction, make
certain foreign investments, enter into certain restrictive agreements, or engage in certain transactions with affiliates. The Five-
Year Facility Agreement also contains financial covenants that require us to maintain a maximum cash flow leverage ratio and a
minimum interest coverage ratio (both ratios measured quarterly for the previous 12 months). The Five-Year Facility
Agreement contains default provisions including, but not limited to, failure to pay interest or principal when due and failure to
comply with covenants.