Best Buy 2013 Annual Report Download - page 86

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86
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 Phase One of the Renew Blue plan ($ in millions):
Termination
Benefits
Facility
Closure and
Other Costs Total
Balance at March 3, 2012 $ — $ — $ —
Charges 55 54 109
Cash payments (1) — (1)
Balance at February 2, 2013 $ 54 $ 54 $ 108
Fiscal 2013 Europe Restructuring
In the third quarter of fiscal 2013 (11-month), we also initiated a series of actions to restructure our Best Buy Europe operations
in our International segment intended to improve operating performance. We preliminarily expect to incur pre-tax restructuring
charges (primarily employee termination benefits, facility closure costs and property and equipment impairments) of between
$40 million and $60 million related to this plan. We expect to substantially complete these restructuring activities in fiscal
2014. We incurred $36 million of charges during fiscal 2013 (11-month) related to employee termination benefits, property and
equipment impairments and facility closure and other costs, presented in Restructuring charges in our Consolidated Statements
of Earnings. The composition of the restructuring charges we incurred in fiscal 2013 (11-month) was as follows ($ in millions):
International
Continuing operations
Property and equipment impairments $ 12
Termination benefits 19
Facility closure and other costs 5
Total $ 36
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 Europe restructuring activities ($ in millions):
Termination
Benefits
Facility
Closure and
Other Costs Total
Balance at March 3, 2012 $ — $ — $ —
Charges 19 5 24
Cash payments (19) — (19)
Balance at February 2, 2013 $ — $ 5 $ 5
Fiscal 2013 U.S. Restructuring
In the first quarter of fiscal 2013 (11-month), we initiated a series of actions to restructure operations in our Domestic segment
intended to improve operating performance. The actions included closure of 49 large-format Best Buy branded stores in the
U.S. and changes to the store and corporate operating models. The costs of implementing the changes primarily consisted of
facility closure costs, employee termination benefits and property and equipment (primarily store fixtures) impairments. We do
not expect to incur further material restructuring charges related to this program, with the exception of lease payments for
vacated stores which will continue until the lease expires or we otherwise terminate the lease.
We incurred $257 million of charges during fiscal 2013 (11-month), primarily consisting of facility closure and other costs,
termination benefits and property and equipment impairments.
All restructuring charges are from continuing operations and are presented in Restructuring charges in our Consolidated
Statements of Earnings.
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