Best Buy 2015 Annual Report Download - page 83

Table of Contents
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The costs incurred under this action consisted primarily of property and equipment impairments and employee
termination benefits.
• 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.
• 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 that resulted in charges primarily related to property and
equipment impairments and employee termination benefits. The actions within our Domestic segment included a
decision to modify our strategy for certain mobile broadband offerings. In our International segment, we closed our
large-format Best Buy branded stores in the U.K. and impaired certain information technology assets supporting the
restructured operations.
• Fiscal 2011 Restructuring: In the fourth quarter of fiscal 2011, we implemented a series of actions to restructure
operations in our Domestic and International segments in order to improve performance and enhance customer
service. The restructuring actions included plans to improve supply chain and operational efficiencies in our Domestic
segment's operations, primarily focused on modifications to our distribution channels and exit from certain digital
delivery services within our entertainment product category.
For continuing operations, the inventory write-downs related to these restructuring activities are presented in restructuring
charges – cost of goods sold in our Consolidated Statements of Earnings and the remainder of the restructuring charges are
presented in restructuring charges in our Consolidated Statements of Earnings. The restructuring charges from discontinued
operations related to these plan are presented in loss from discontinued operations, net of tax.
The composition of the restructuring charges we incurred for these programs in fiscal 2015, 2014 and 2013 (11-month), as well
as the cumulative amount incurred through the end of fiscal 2015, were as follows ($ in millions):
Domestic International Total
12-
Month
2015
12-
Month
2014
11-
Month
2013 Cumulative Amount
12-
Month
2015
12-
Month
2014
11-
Month
2013 Cumulative Amount
12-
Month
2015
12-
Month
2014
11-
Month
2013 Cumulative Amount
Continuing operations
Inventory write-downs $ — $ — $ — $ 28 $ — $ — $ — $ — $ — $ — $ — $ 28
Property and equipment
impairments — — 17 49 — — — 112 — — 17 161
Termination benefits — — 77 91 — — — — — — 77 91
Facility closure and
other costs (6) (6) 150 147 — — — — (6) (6) 150 147
Total (6) (6) 244 315 — — — 112 (6) (6) 244 427
Discontinued operations
Inventory write-downs — — — — — 7 — 33 — 7 — 33
Property and equipment
impairments — — — 15 — 45 12 188 — 45 12 203
Termination benefits — — — 4 — 36 20 91 — 36 20 95
Tradename impairment — — — 13 — 4 — 4 — 4 — 17
Facility closure and
other costs — — — 3 — 8 2 97 — 8 2 100
Total — — — 35 — 100 34 413 — 100 34 448
Total $ (6) $ (6) $ 244 $ 350 $ — $ 100 $ 34 $ 525 $ (6) $ 94 $ 278 $ 875