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Restructuring Charges (Notes)
 3 Months Ended
May 03, 2014
Restructuring and Related Activities [Abstract]  
Restructuring Charges
Restructuring Charges
 
Summary

Charges incurred in the three months ended May 3, 2014, and May 4, 2013, for our restructuring activities were as follows ($ in millions):
 
Three Months Ended
 
May 3, 2014
 
May 4, 2013
Continuing operations
 
 
 
Renew Blue
$
7

 
$
6

Fiscal 2013 U.S. restructuring
(4
)
 
—

Total continuing operations
3

 
6

Discontinued operations (Note 2)
 
 
 
Fiscal 2013 Europe restructuring
—

 
53

Total
$
3

 
$
59



Renew Blue

In the fourth quarter of fiscal 2013, we began implementing initiatives intended to reduce costs and improve operating performance. These initiatives included focusing on core business activities, reducing headcount, updating our store operating model and optimizing our real estate portfolio. These cost reduction initiatives represented one of the key Renew Blue priorities for fiscal 2014 and cost reduction continues to be a priority in fiscal 2015. We incurred $7 million and $6 million of restructuring charges related to Renew Blue initiatives during the first three months of fiscal 2015 and 2014, respectively. The charges in the first quarter of fiscal 2015 were primarily due to employee termination benefits from new actions taken, partially offset by adjustments to reduce the termination benefits liability related to previous actions and adjustments to facility closure cost liabilities due to changes in sublease assumptions. We expect to continue to implement cost reduction initiatives throughout fiscal 2015, as we further analyze our operations and strategies.

All restructuring charges related to this program are from continuing operations. Inventory write-downs are presented in restructuring charges - cost of goods sold and the remainder of restructuring charges are presented in restructuring charges in our Consolidated Statements of Earnings. The composition of the restructuring charges we incurred for this program in the three months ended May 3, 2014, and May 4, 2013, as well as the cumulative amount incurred through May 3, 2014, was as follows ($ in millions):
 
Domestic
 
International
 
Total
 
Three Months Ended
 
Cumulative
Amount
 
Three Months Ended
 
Cumulative
Amount
 
Three Months Ended
 
Cumulative
Amount
 
May 3,
2014
 
May 4,
2013
 
 
May 3,
2014
 
May 4,
2013
 
 
May 3,
2014
 
May 4,
2013
 
Continuing operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Inventory write-downs
$
—

 
$
—

 
$
1

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
1

Property and equipment impairments
—

 
1

 
14

 
1

 
—

 
26

 
1

 
1

 
40

Termination benefits
6

 
—

 
158

 
2

 
4

 
39

 
8

 
4

 
197

Investment impairments
—

 
—

 
43

 
—

 
—

 
—

 
—

 
—

 
43

Facility closure and other costs
—

 
—

 
3

 
(2
)
 
1

 
59

 
(2
)
 
1

 
62

Total
$
6

 
$
1

 
$
219

 
$
1

 
$
5

 
$
124

 
$
7

 
$
6

 
$
343



The following table summarizes our restructuring accrual activity during the three months ended May 3, 2014, and May 4, 2013, related to termination benefits and facility closure and other costs associated with this program ($ in millions):
 
Termination
Benefits
 
Facility
Closure and
Other Costs
 
Total
Balances at February 1, 2014
$
111

 
$
51

 
$
162

Charges
22

 
2

 
24

Cash payments
(26
)
 
(6
)
 
(32
)
Adjustments(1)
(14
)
 
(5
)
 
(19
)
Changes in foreign currency exchange rates
—

 
(5
)
 
(5
)
Balances at May 3, 2014
$
93

 
$
37

 
$
130

(1)
Adjustments to termination benefits were due to higher-than-expected employee retention. Adjustments to facility closure and other costs represent changes in sublease assumptions.
 
Termination
Benefits
 
Facility
Closure and
Other Costs
 
Total
Balances at February 2, 2013
$
54

 
$
54

 
$
108

Charges
4

 
4

 
8

Cash payments
(35
)
 
(3
)
 
(38
)
Adjustments
(2
)
 
8

 
6

Changes in foreign currency exchange rates
—

 
(1
)
 
(1
)
Balances at May 4, 2013
$
21

 
$
62

 
$
83



Fiscal 2013 U.S. Restructuring

In the first quarter of fiscal 2013, 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 were primarily comprised of facility closure costs, employee termination benefits, and property and equipment (primarily store fixtures) impairments. We have completed activities under this restructuring program and do not expect to incur further material restructuring charges, with the exception of potential adjustments to facility closure and other cost liabilities as a result of changes in sublease assumptions or lease buyouts. In addition, lease payments for vacated stores will continue until leases expire or are terminated.

The restructuring charges related to this program are from continuing operations and are presented in restructuring charges in our Consolidated Statements of Earnings. The composition of the cumulative restructuring charges we incurred for this program through May 3, 2014, was as follows ($ in millions):
 
Cumulative Amount through May 3, 2014
 
Continuing operations
 
Property and equipment impairments
$
29

Termination benefits
77

Facility closure and other costs, net
141

Total
$
247



The following table summarizes our restructuring accrual activity during the three months ended May 3, 2014, and May 4, 2013, related to termination benefits and facility closure and other costs associated with this program ($ in millions):
 
Facility
Closure and
Other Costs
Balances at February 1, 2014
$
58

Charges
1

Cash payments
(6
)
Adjustments
(4
)
Balances at May 3, 2014
$
49

 
Termination
Benefits
 
Facility
Closure and
Other Costs
 
Total
Balances at February 2, 2013
$
4

 
$
113

 
$
117

Charges
—

 
2

 
2

Cash payments
(2
)
 
(9
)
 
(11
)
Adjustments
(2
)
 
(4
)
 
(6
)
Balances at May 4, 2013
$
—

 
$
102

 
$
102



Fiscal 2013 Europe Restructuring

In the third quarter of fiscal 2013, we initiated a series of actions to restructure our Best Buy Europe operations in our International segment intended to improve operating performance. As described in Note 2, Assets Held for Sale and Discontinued Operations, we agreed to sell our 50% ownership interest in Best Buy Europe in the first quarter of fiscal 2014, and the sale was completed on June 26, 2013. This program ended as of the date of sale, at which time we wrote off all remaining restructuring liabilities. The cumulative amount of charges we incurred under this program was $131 million, which included $53 million in the first quarter of fiscal 2014, primarily related to property and equipment impairments. All restructuring charges related to this program are reported within loss from discontinued operations in our Consolidated Statements of Earnings.

The following table summarizes our restructuring accrual activity during the three months ended May 4, 2013, related to termination benefits and facility closure and other costs associated with this program ($ in millions):
 
Termination
Benefits
 
Facility
Closure and
Other Costs
 
Total
Balances at February 2, 2013
$
—

 
$
5

 
$
5

Charges
2

 
2

 
4

Cash payments
(1
)
 
(4
)
 
(5
)
Balances at May 4, 2013
$
1

 
$
3

 
$
4



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. 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. The cumulative amount of charges we incurred under this program was $246 million, comprised of $22 million within our Domestic segment and $224 million within our International segment, primarily related to property and equipment impairments and facility closure and other costs. We did not incur any charges related to this program in the first three months of fiscal 2015 or 2014 and do not expect to incur further material restructuring charges related to this program, as we have completed these restructuring activities.

The following table summarizes our restructuring accrual activity during the three months ended May 4, 2013, related to facility closure and other costs associated with this program ($ in millions):
 
Facility
Closure and
Other Costs
Balances at February 2, 2013
$
36

Cash payments
(29
)
Changes in foreign currency exchange rates
(2
)
Balances at May 4, 2013
$
5