Best Buy 2012 Annual Report Download - page 88

$ in millions, except per share amounts or as otherwise noted
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well as an appropriate discount rate. For the tradename, fair value was derived using the relief from royalty method, as
described in Note 1, Summary of Significant Accounting Policies. In the case of these specific assets, for which their
impairment was the result of restructuring activities, no future cash flows have been assumed as the assets will cease to be used
and expected sale values are nominal.
Fair Value of Financial Instruments
Our financial instruments, other than those presented in the disclosures above, include cash, receivables, other investments,
accounts payable, other payables and short- and long-term debt. The fair values of cash, receivables, accounts payable, other
payables and short-term debt approximated carrying values because of the short-term nature of these instruments. Fair values
for other investments held at cost are not readily available, but we estimate that the carrying values for these investments
approximate fair value. See Note 8, Debt, for information about the fair value of our long-term debt.
7. Restructuring Charges
Fiscal 2012 Restructuring
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 3, Discontinued Operations.
We incurred $243 of charges related to the fiscal 2012 restructuring during fiscal 2012. Of the total charges, $23 related to our
Domestic segment and consisted primarily of IT asset impairments and other related costs. The remaining $220 of charges
related to our International segment and consisted primarily property and equipment impairments, facility closure and other
costs, employee termination benefits and inventory write-downs.
We do not expect to incur further material restructuring charges related to our fiscal 2012 restructuring activities in either our
Domestic or International segments. We expect to substantially complete these restructuring activities in the first half of fiscal
2013.
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 2012 for our fiscal
2012 restructuring activities was as follows:
Domestic International Total
Continuing operations
Property and equipment impairments $ 17 $ 15 $ 32
Termination benefits 1 — 1
Facility closure and other costs 5 — 5
Total 23 15 38
Discontinued operations
Inventory write-downs — 11 11
Property and equipment impairments — 96 96
Termination benefits — 16 16
Facility closure and other costs — 82 82
Total — 205 205
Total $ 23 $ 220 $ 243