Restructuring

12 Months Ended

Feb. 01, 2020

Restructuring [Abstract]

Restructuring

9.   Restructuring

Restructuring charges were as follows ($ in millions):

	2020		2019		2018
U.S. Retail Operating Model	$	41	$	-	$	-
Best Buy Mobile		-		47		9
Other		-		(1)		1
Total	$	41	$	46	$	10

U.S. Retail Operating Model

In the second quarter of fiscal 2020, we made changes primarily related to our U.S. retail operating model to increase organization effectiveness and create a more seamless customer experience across all channels. All charges incurred, including $10 million related to a voluntary early retirement offer, related to termination benefits from continuing operations within our Domestic segment.

Restructuring accrual activity related to this plan was as follows ($ in millions):

	Termination Benefits
Balance at February 2, 2019	$	-
Charges		48
Cash payments		(25)
Adjustments(1)		(7)
Balance at February 1, 2020	$	16

(1)Adjustments are related to higher-than-expected employee retention, and therefore lower severance expense.

Best Buy Mobile

On March 1, 2018, we announced our intent to close all of our 257 remaining Best Buy Mobile stand-alone stores in the U.S. This decision was a result of changing economics in the mobile industry since we began opening these stores in 2006, along with the integration of our mobile model into our core stores and on-line channel, which are more economically compelling today. All charges incurred were from continuing operations within our Domestic segment. No restructuring accrual related to this plan remains as of February 1, 2020.

Restructuring charges related to this plan were as follows ($ in millions):

	2019		2018		Cumulative Amount
Property and equipment impairments	$	-	$	1	$	1
Termination benefits		(2)		8		6
Facility closure and other costs		49		-		49
Total	$	47	$	9	$	56

Restructuring accrual activity related to this plan was as follows ($ in millions):

	Termination ‎Benefits		Facility ‎Closure and ‎Other Costs		Total
Balances at February 3, 2018	$	8	$	-	$	8
Charges		1		49		50
Cash payments		(6)		(48)		(54)
Adjustments(1)		(3)		-		(3)
Balances at February 2, 2019	$	-	$	1	$	1

(1)Adjustments represent changes in retention assumptions.

Other 

Other restructuring charges primarily relate to our Canadian brand consolidation initiated in fiscal 2016 and Renew Blue initiated in fiscal 2013. We may continue to incur immaterial adjustments for changes in sublease assumptions or potential lease buyouts. In addition, lease payments for vacated stores will continue until leases expire or are terminated.