Best Buy 2015 Annual Report Download - page 95

Table of Contents
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Deferred tax assets and liabilities included in our Consolidated Balance Sheets were as follows ($ in millions):
January 31, 2015 February 1, 2014
Other current assets $ 252 $ 261
Current assets held for sale 3 —
Other assets 322 44
Other current liabilities — —
Other long-term liabilities — (21)
Long-term liabilities held for sale (11) —
Net deferred tax assets $ 566 $ 284
At January 31, 2015, we had total net operating loss carryforwards from international operations of $118 million, of which
$110 million will expire in various years through 2025 and the remaining amounts have no expiration. Additionally, we had
acquired U.S. federal net operating loss carryforwards of $21 million which expire between 2023 and 2030, U.S. federal
foreign tax credit carryforwards of $1 million which expire between 2022 and 2024, state credit carryforwards of $12 million
which expire in 2024, and state capital loss carryforwards of $4 million which expire in 2019.
At January 31, 2015, a valuation allowance of $143 million had been established, of which $1 million is against U.S. federal
foreign tax credit carryforwards, $11 million is against U.S. federal and state capital loss carryforwards, $6 million is against
state credit carryforwards and other state deferred tax assets, and $125 million is against certain international net operating loss
carryforwards and other international deferred tax assets. The $15 million decrease from February 1, 2014, is primarily due to
the decrease in the valuation allowance against the U.S. federal foreign tax credit carryforward.
We have not provided deferred taxes on unremitted earnings attributable to foreign operations that have been considered to be
reinvested indefinitely. These earnings relate to ongoing operations and were $770 million at January 31, 2015. It is not
practicable to determine the income tax liability that would be payable if such earnings were not indefinitely reinvested.
The following table provides a reconciliation of changes in unrecognized tax benefits for fiscal 2015, 2014 and 2013 (11-
month) ($ in millions):
12-Month 12-Month 11-Month
2015 2014 2013
Balance at beginning of period $ 370 $ 383 $ 387
Gross increases related to prior period tax positions 33 38 10
Gross decreases related to prior period tax positions (88)(67)(22)
Gross increases related to current period tax positions 114 34 37
Settlements with taxing authorities (9)(3)(10)
Lapse of statute of limitations (10)(15)(19)
Balance at end of period $ 410 $ 370 $ 383
Unrecognized tax benefits of $297 million, $228 million and $231 million at January 31, 2015, February 1, 2014, and February
2, 2013, respectively, would favorably impact our effective income tax rate if recognized.
We recognize interest and penalties (not included in the "unrecognized tax benefits" above), as well as interest received from
favorable tax settlements, as components of income tax expense. Interest income of $6 million was recognized in fiscal 2015.
At January 31, 2015, February 1, 2014, and February 2, 2013, we had accrued interest of $78 million, $91 million and $85
million, respectively, along with accrued penalties of $2 million, $2 million and $0 million at January 31, 2015, February 1,
2014, and February 2, 2013, respectively.