Best Buy 2011 Annual Report Download - page 90

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$ in millions, except per share amounts or as otherwise noted
fiscal 2011, launched large-format Best Buy branded stores in the U.K. and a related online channel in the European
market.
We have consolidated Best Buy Europe in our financial results as part of our International segment from the date of
acquisition. We consolidate the financial results of Best Buy Europe on a two-month lag to align with CPW’s quarterly
reporting periods.
We recorded the net assets acquired at their estimated fair values and allocated the purchase price on a preliminary basis
using information then available. The allocation of the purchase price to the acquired assets and liabilities was finalized in
the second quarter of fiscal 2010, with no material adjustments made to the preliminary allocation. None of the goodwill
is deductible for tax purposes.
The final purchase price allocation was as follows:
Cash and cash equivalents $ 124
Restricted cash 112
Receivables 1,190
Merchandise inventories 535
Other current assets 114
Property and equipment 500
Goodwill 1,546
Tradenames 93
Customer relationships 484
Other assets 184
Total assets 4,882
Accounts payable (803)
Other current liabilities (695)
Short-term debt (299)
Long-term liabilities (246)
Total liabilities (2,043)
Noncontrolling interest(1) (643)
Purchase price allocated to assets and liabilities acquired $2,196
(1) We recorded the fair value adjustments only in respect of the 50% of net assets acquired, with the remaining 50% of the net assets
of Best Buy Europe being consolidated and recorded at their historical cost basis. This also resulted in a $643 noncontrolling
interest being reflected in our consolidated balance sheet in respect of the 50% owned by CPW.
The valuation of the identifiable intangible assets acquired was based on management’s estimates, available information
and reasonable and supportable assumptions. The valuation was generally based on the fair value of these assets using
income and market approaches. The amortizable intangible assets are being amortized using a straight-line method over
their respective estimated useful lives. The following table summarizes the identified intangible asset categories and their
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