Best Buy 2016 Annual Report Download - page 77

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69
expense on a straight-line basis over the requisite service period of the award (or to an employee's eligible retirement date, if
earlier).
2. Discontinued Operations
Discontinued operations comprise the following:
Domestic Segment
During the fourth quarter of fiscal 2014, we completed the sale of mindSHIFT to Ricoh Americas Corporation, at which time
we recorded an $18 million pre-tax loss.
International Segment
Five Star - During the fourth quarter of fiscal 2015, we entered into a definitive agreement to sell our Five Star business to
Yingtan City Xiangyuan Investment Limited Partnership and Zhejiang Jiayuan Real Estate Group Co. On February 13, 2015,
we completed the sale of Five Star and recognized a gain on sale of $99 million. Following the sale of Five Star, we continue to
hold one retail property in Shanghai, China, which remains held for sale at January 30, 2016, as we continue to actively market
the property. The assets of this property are classified as held for sale in the Consolidated Balance Sheets and were $31 million
as of January 30, 2016. The presentation of discontinued operations has been retrospectively applied to all prior periods
presented.
The composition of assets and liabilities disposed of as a result of the sale of Five Star was as follows ($ in millions):
February 13, 2015
Cash and cash equivalents $ 125
Receivables 113
Merchandise inventories 252
All other assets 461
Total assets $ 951
Accounts payable $ 478
All other liabilities 128
Total liabilities $ 606
Best Buy Europe – During the second quarter of fiscal 2014, we completed the sale of our 50% ownership interest in Best Buy
Europe to CPW in return for the following consideration upon closing: net cash of £341 million ($526 million); £80 million
($123 million) of ordinary shares of CPW; £25 million ($39 million), plus 2.5% interest, to be paid by CPW on June 26, 2014;
and £25 million ($39 million), plus 2.5% interest, to be paid by CPW on June 26, 2015. We subsequently sold the ordinary
shares of CPW for $123 million on July 3, 2013. We received the first such deferred cash payment on June 26, 2014 and the
second deferred cash payment on June 26, 2015.
In conjunction with our agreement to sell our 50% ownership interest in Best Buy Europe, we entered into a deal-contingent
foreign currency forward contract to hedge £455 million of the total £471 million of net proceeds. The contract was settled in
cash following the completion of the sale on June 26, 2013, and we recognized a $2 million loss in gain (loss) from
discontinued operations on our Consolidated Statements of Earnings in fiscal 2014.