Best Buy 2014 Annual Report Download - page 78

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73
The composition of assets and liabilities disposed of on June 26, 2013, as a result of the sale of Best Buy Europe was as follows
($ in millions):
June 26, 2013
Cash and cash equivalents $ 597
Receivables 1,295
Merchandise inventories 554
Other current assets 168
Net property and equipment 159
Other assets 316
Total assets 3,089
Accounts payable 790
Short-term debt 973
Other current liabilities 1,145
Long-term liabilities 65
Total liabilities 2,973
The aggregate financial results of all discontinued operations for fiscal 2014, 2013 (11-month) and 2012 were as follows ($ in
millions):
12-Month 11-Month 12-Month
2014 2013 2012
Revenue $ 2,815 $ 5,259 $ 5,658
Restructuring charges(1) 100 34 239
Gain (loss) from discontinued operations before income tax benefit (240) 15 (1,521)
Income tax benefit(2) 42 37 122
Gain on sale of discontinued operations 32 — —
Equity in loss of affiliates — (5)(3)
Net gain (loss) from discontinued operations including noncontrolling interests (166) 47 (1,402)
Net (gain) loss from discontinued operations attributable to noncontrolling interests 11 (19)(1,250)
Net gain (loss) from discontinued operations attributable to Best Buy Co., Inc.
shareholders $(155) $ 28 $ (2,652)
(1) See Note 6, Restructuring Charges, for further discussion of the restructuring charges associated with discontinued operations.
(2) Income tax benefit for fiscal 2014 includes a $27 million benefit related to a tax allocation between continuing and discontinued operations and a $15
million benefit related to the impairment of our investment in Best Buy Europe. The fiscal 2014 effective tax rate for discontinued operations differs from
the statutory tax rate primarily due to the previously mentioned tax allocation, sale of mindSHIFT, restructuring charges and the impairment of our
investment in Best Buy Europe. The sale of mindSHIFT, restructuring charges and impairment generally included no related tax benefit. The deferred tax
assets related to the sale of mindSHIFT and restructuring charges generally resulted in an increase in the valuation allowance in an equal amount, of
which the investment impairment is not tax deductible.
5. Fair Value Measurements
Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most
advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. To
measure fair value, we use a three-tier valuation hierarchy based upon observable and non-observable inputs:
Level 1 — Unadjusted quoted prices that are available in active markets for identical assets or liabilities at the measurement
date.