Best Buy 2013 Annual Report Download - page 87

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87
The composition of the restructuring charges we incurred in fiscal 2013 (11-month) was as follows ($ in millions):
Domestic
Continuing operations
Property and equipment impairments $ 29
Termination benefits 77
Facility closure and other costs 151
Total $ 257
The following table summarizes our restructuring accrual activity during fiscal 2013 (11-month) related to termination benefits
and facility closure and other costs associated with our fiscal 2013 U.S. restructuring activities ($ in millions):
Termination
Benefits
Facility
Closure and
Other Costs Total
Balance at March 3, 2012 $ — $ — $ —
Charges 109 152 261
Cash payments (65)(33)(98)
Adjustments (40)(6)(46)
Balance at February 2, 2013 $ 4 $ 113 $ 117
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, and in our International segment we closed our large-format Best Buy branded stores in the U.K. to
refocus our Best Buy Europe strategy on our small-format stores. In addition, we impaired certain information technology
("IT") assets supporting the restructured activities in our International segment. We view these restructuring activities as
necessary to meet our long-term financial performance objectives by refocusing our investments on areas that provided
profitable growth opportunities and meet our overall return expectations. All restructuring charges directly related to the large-
format Best Buy branded stores in the U.K. are reported within discontinued operations in our Consolidated Statements of
Earnings. Refer to Note 4, Discontinued Operations.
We incurred $243 million of charges related to the fiscal 2012 restructuring 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.
During fiscal 2013 (11-month), we recorded a gain of $2 million related to this plan, primarily related to our International
segment from adjustments to estimated facility closures costs associated with the closure of our Best Buy branded stores in the
U.K. We do not expect to incur further material restructuring charges related to our fiscal 2012 restructuring activities in either
our Domestic or International segments, as we have substantially completed these restructuring activities.
All restructuring charges from continuing operations related to our fiscal 2012 restructuring activities are presented in
Restructuring charges in our Consolidated Statements of Earnings, whereas all restructuring charges from discontinued
operations related to our fiscal 2012 restructuring activities are presented in Loss from discontinued operations in our
Consolidated Statements of Earnings. The composition of the restructuring charges we incurred in fiscal 2013 (11-month) and
2012, as well as the cumulative amount incurred through the end of fiscal 2013 (11-month), for our fiscal 2012 restructuring
activities, was as follows ($ in millions):
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