Best Buy 2013 Annual Report Download - page 85

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85
7. Restructuring Charges
Summary
Restructuring charges incurred in fiscal 2013 (11-month), 2012, and 2011 were as follows ($ in millions):
11-Month 12-Month
2013 2012 2011
Continuing operations
Renew Blue $ 171 $ — $ —
Fiscal 2013 Europe restructuring 36 — —
Fiscal 2013 U.S. restructuring 257 — —
Fiscal 2012 restructuring (1) 38 —
Fiscal 2011 restructuring (12) 20 147
Total 451 58 147
Discontinued operations
Fiscal 2012 restructuring (1) 205 —
Fiscal 2011 restructuring (1) 24 75
Total (Note 4) (2) 229 75
Total $ 449 $ 287 $ 222
Renew Blue Plan
In the fourth quarter of fiscal 2013 (11-month), we initiated Phase One of our Renew Blue restructuring program. The Renew
Blue program is intended to reduce costs and improve operating performance by focusing on core business activities, reducing
headcount and optimizing our real estate portfolio. We preliminarily expect to incur up to an additional $30 million of pre-tax
restructuring charges (primarily employee termination benefits, facility closure and other costs, investment impairments and
property and equipment impairments) related to Phase One of this plan. We expect to continue to implement Renew Blue
initiatives throughout fiscal 2014, as we further analyze our operations and strategies.
We incurred $171 million of charges related to Phase One of the plan during fiscal 2013 (11-month). Of the total charges, $84
million related to our Domestic segment, which consisted primarily of employee termination benefits, investment impairments
and property and equipment impairments. The remaining $87 million of charges related to our International segment and
consisted of facility closure and other costs, property and equipment impairments and employee termination benefits.
All restructuring charges related to this plan are from continuing operations. Inventory write-downs are presented in
Restructuring charges - cost of goods sold in our Consolidated Statements of Earnings, and the remainder of restructuring
charges are presented in Restructuring charges in our Consolidated Statements of Earnings.
The composition of the restructuring charges we incurred in fiscal 2013 (11-month) for Phase One of the Renew Blue plan was
as follows ($ in millions):
Domestic International Total
Continuing operations
Inventory write-downs $ 1 $ — $ 1
Property and equipment impairments 7 23 30
Termination benefits 46 9 55
Investment impairments 27 — 27
Facility closure and other costs 3 55 58
Total $ 84 $ 87 $ 171
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