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Restructuring Charges | 12 Months Ended
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Jan. 30, 2016
Restructuring and Related Activities [Abstract] |
Restructuring Charges | Restructuring Charges Summary Restructuring charges incurred in fiscal 2016, 2015, and 2014 were as follows ($ in millions):
| 2016 |  | 2015 |  | 2014
Continuing operations |  |  |  |  |
Canadian brand consolidation | $ | 200 |  |  | $ | — |  |  | $ | — |
Renew Blue | (2 | ) |  | 11 |  |  | 155 |
Other restructuring activities(1) | 3 |  |  | (6 | ) |  | (6 | )
Total continuing operations | 201 |  |  | 5 |  |  | 149 |
Discontinued operations |  |  |  |  |
Renew Blue | — |  |  | 18 |  |  | 10 |
Other restructuring activities(2) | — |  |  | — |  |  | 100 |
Total | $ | 201 |  |  | $ | 23 |  |  | $ | 259 |
(1) Represents activity related to our remaining vacant space liability for U.S. large-format store closures in fiscal 2013. We may continue to incur immaterial adjustments to the liability for changes in sublease assumptions or potential lease buyouts. In addition, lease payments for vacated stores will continue until leases expire or are terminated. The remaining vacant space liability was $18 million at January 30, 2016. (2) Activity primarily relates to our fiscal 2013 Best Buy Europe restructuring program, which is included in discontinued operations due to the sale of our 50% ownership interest in Best Buy Europe in fiscal 2014. Restructuring charges primarily consist of property and equipment impairments and employee termination benefits. Canadian Brand Consolidation In the first quarter of fiscal 2016, we consolidated the Future Shop and Best Buy stores and websites in Canada under the Best Buy brand. This resulted in the permanent closure of 66 Future Shop stores and the conversion of the remaining 65 Future Shop stores to the Best Buy brand. In fiscal 2016, we incurred $200 million of restructuring charges related to implementing these changes, which primarily consisted of lease exit costs, a tradename impairment, property and equipment impairments, employee termination benefits and inventory write-downs. The inventory write-downs related to our Canadian brand consolidation are presented in restructuring charges – cost of goods sold in our Consolidated Statements of Earnings, and the remainder of the restructuring charges are presented in restructuring charges in our Consolidated Statements of Earnings. The composition of total restructuring charges we incurred for the Canadian brand consolidation in fiscal 2016 was as follows ($ in millions):
| International
Continuing operations |
Inventory write-downs | $ | 3 |
Property and equipment impairments | 30 |
Tradename impairment | 40 |
Termination benefits | 25 |
Facility closure and other costs | 102 |
Total continuing operations | $ | 200 |
The following tables summarize our restructuring accrual activity during the fiscal 2016, related to termination benefits and facility closure and other costs associated with Canadian brand consolidation ($ in millions):
| Termination Benefits |  | Facility Closure and Other Costs |  | Total
Balances at January 31, 2015 | $ | — |  |  | $ | — |  |  | $ | — |
Charges | 28 |  |  | 113 |  |  | 141 |
Cash payments | (24 | ) |  | (47 | ) |  | (71 | )
Adjustments(1) | (2 | ) |  | 5 |  |  | 3 |
Changes in foreign currency exchange rates | — |  |  | (7 | ) |  | (7 | )
Balances at January 30, 2016 | $ | 2 |  |  | $ | 64 |  |  | $ | 66 |
(1) The adjustments related to termination benefits relate to higher-than-expected employee retention. Adjustments to facility closure and other costs represent changes in sublease assumptions. Renew Blue In the fourth quarter of fiscal 2013, we launched the Renew Blue strategy, which included initiatives intended to improve operating performance and reduce costs. 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. We incurred $2 million of favorable adjustments related to Renew Blue initiatives in fiscal 2016. Of the total adjustments, $1 million related to our Domestic segment, which consisted primarily of changes in retention assumptions used to estimate employee termination benefits. The remaining $1 million adjustment related to our International segment and consisted of facility closure and other costs. We expect to continue to implement cost reduction initiatives throughout fiscal 2017 as we further analyze our operations and strategies. We incurred $29 million of charges related to Renew Blue initiatives during fiscal 2015. Of the total charges, $10 million related to our Domestic segment, which consisted primarily of employee termination benefits. The remaining $19 million of charges related to our International segment and consisted of employee termination benefits, property and equipment impairments and facility closure and other costs. For continuing operations, the inventory write-downs related to our Renew Blue restructuring activities are presented in restructuring charges – cost of goods sold in our Consolidated Statements of Earnings and the remainder of the restructuring charges are presented in restructuring charges. The restructuring charges from discontinued operations related to this plan are presented in discontinued operations. The composition of the restructuring charges we incurred for this program in fiscal 2016, 2015 and 2014, as well as the cumulative amount incurred through the end of fiscal 2016, was as follows ($ in millions):
| Domestic |  | International |  | Total
| 2016 |  | 2015 |  | 2014 |  | Cumulative Amount |  | 2016 |  | 2015 |  | 2014 |  | Cumulative Amount |  | 2016 |  | 2015 |  | 2014 |  | Cumulative Amount
Continuing operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Inventory write-downs | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1 |
Property and equipment impairments | — |  |  | — |  |  | 7 |  |  | 14 |  |  | — |  |  | 1 |  |  | 1 |  |  | 25 |  |  | — |  |  | 1 |  |  | 8 |  |  | 39 |
Termination benefits | (2 | ) |  | 9 |  |  | 106 |  |  | 159 |  |  | — |  |  | 5 |  |  | 24 |  |  | 38 |  |  | (2 | ) |  | 14 |  |  | 130 |  |  | 197 |
Investment impairments | — |  |  | — |  |  | 16 |  |  | 43 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 16 |  |  | 43 |
Facility closure and other costs | 1 |  |  | 1 |  |  | — |  |  | 5 |  |  | (1 | ) |  | (5 | ) |  | 1 |  |  | 50 |  |  | — |  |  | (4 | ) |  | 1 |  |  | 55 |
Total continuing operations | (1 | ) |  | 10 |  |  | 129 |  |  | 222 |  |  | (1 | ) |  | 1 |  |  | 26 |  |  | 113 |  |  | (2 | ) |  | 11 |  |  | 155 |  |  | 335 |
Discontinued Operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Property and equipment impairments | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | 1 |  |  | — |  |  | — |  |  | 1 |  |  | 1 |
Termination benefits | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 12 |  |  | 4 |  |  | 16 |  |  | — |  |  | 12 |  |  | 4 |  |  | 16 |
Facility closure and other costs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 6 |  |  | 5 |  |  | 11 |  |  | — |  |  | 6 |  |  | 5 |  |  | 11 |
Total discontinued operations | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 18 |  |  | 10 |  |  | 28 |  |  | — |  |  | 18 |  |  | 10 |  |  | 28 |
Total | $ | (1 | ) |  | $ | 10 |  |  | $ | 129 |  |  | $ | 222 |  |  | $ | (1 | ) |  | $ | 19 |  |  | $ | 36 |  |  | $ | 141 |  |  | $ | (2 | ) |  | $ | 29 |  |  | $ | 165 |  |  | $ | 363 |
The following table summarizes our restructuring accrual activity during fiscal 2016 and 2015 related to termination benefits and facility closure and other costs associated with this program ($ in millions):
| Termination Benefits |  | Facility Closure and Other Costs |  | Total
Balance at February 1, 2014 | $ | 111 |  |  | $ | 51 |  |  | $ | 162 |
Charges | 47 |  |  | 16 |  |  | 63 |
Cash payments | (121 | ) |  | (22 | ) |  | (143 | )
Adjustments(1) | (21 | ) |  | (14 | ) |  | (35 | )
Changes in foreign currency exchange rates | — |  |  | (8 | ) |  | (8 | )
Balance at January 31, 2015 | 16 |  |  | 23 |  |  | 39 |
Charges | — |  |  | — |  |  | — |
Cash payments | (7 | ) |  | (9 | ) |  | (16 | )
Adjustments(1) | (7 | ) |  | (5 | ) |  | (12 | )
Changes in foreign currency exchange rates | — |  |  | 1 |  |  | 1 |
Balance at January 30, 2016 | $ | 2 |  |  | $ | 10 |  |  | $ | 12 |
(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 and reductions in our remaining lease obligations.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 5.P.4) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 5.P.3) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140864-122747 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 5 -Section P -Subsection 3, 4 + Details
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