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Restructuring Charges (Notes) | 3 Months Ended
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Apr. 30, 2016
Restructuring and Related Activities [Abstract] |
Restructuring Charges | Restructuring Charges Charges incurred in the three months ended April 30, 2016, and May 2, 2015, for our restructuring activities were as follows ($ in millions):
| Three Months Ended
| April 30, 2016 |  | May 2, 2015
Renew Blue Phase 2 | $ | 27 |  |  | $ | — |
Canadian brand consolidation | (1 | ) |  | 188 |
Renew Blue(1) | 3 |  |  | (2 | )
Other restructuring activities(2) | — |  |  | — |
Total restructuring charges | $ | 29 |  |  | $ | 186 |
(1) | Represents activity related to our remaining vacant space liability, primarily in our International segment, for our Renew Blue restructuring program which began in the fourth quarter of 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 $11 million at April 30, 2016.
(2) | 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 $16 million at April 30, 2016.
Renew Blue Phase 2 In the first quarter of fiscal 2017, we took several strategic actions to eliminate and simplify certain components of our operations and restructure certain field and corporate teams as part of our Renew Blue Phase 2 plan. We incurred $27 million of charges related to Phase 2 of the plan during the first three months of fiscal 2017, which primarily consisted of employee termination benefits and property and equipment impairments. All restructuring charges related to this plan are from continuing operations and are presented in restructuring charges in our Condensed Consolidated Statements of Earnings. The composition of the restructuring charges we incurred during the three months ended April 30, 2016 for Renew Blue Phase 2 was as follows ($ in millions):
| Domestic
Property and equipment impairments | $ | 7 |
Termination benefits | 20 |
Total Renew Blue - Phase 2 restructuring charges | $ | 27 |
The following table summarizes our restructuring accrual activity during the three months ended April 30, 2016, related to termination benefits as a result of Renew Blue Phase 2 ($ in millions):
| Termination Benefits
Balances at January 30, 2016 | $ | — |
Charges | 19 |
Cash payments | (4 | )
Balances at April 30, 2016 | $ | 15 |
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. For the first three months of fiscal 2017 we recognized a benefit of $1 million related to our Canadian brand consolidation, which was due to changes in our facility closure and other costs assumptions. In the first three months of 2016 we incurred $188 million of restructuring charges, which primarily consisted of lease exit costs, a tradename impairment, property and equipment impairments, employee termination benefits and inventory write-downs. The inventory write-downs related to our Canadian brand consolidation are presented in restructuring charges – cost of goods sold in our Condensed Consolidated Statements of Earnings, and the remainder of the restructuring charges are presented in restructuring charges in our Condensed Consolidated Statements of Earnings. The composition of total restructuring charges we incurred for the Canadian brand consolidation in the three months ended April 30, 2016, and May 2, 2015, as well as the cumulative amount incurred through April 30, 2016, was as follows ($ in millions):
| Three Months Ended |  |
| April 30, 2016 |  | May 2, 2015 |  | Cumulative Amount
Inventory write-downs | $ | — |  |  | $ | 8 |  |  | $ | 3 |
Property and equipment impairments | — |  |  | 29 |  |  | 30 |
Tradename impairment | — |  |  | 40 |  |  | 40 |
Termination benefits | — |  |  | 24 |  |  | 25 |
Facility closure and other costs | (1 | ) |  | 87 |  |  | 101 |
Total Canadian brand consolidation restructuring charges | $ | (1 | ) |  | $ | 188 |  |  | $ | 199 |
The following tables summarize our restructuring accrual activity during the three months ended April 30, 2016, and May 2, 2015, 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 30, 2016 | $ | 2 |  |  | $ | 64 |  |  | $ | 66 |
Charges | — |  |  | — |  |  | — |
Cash payments | (1 | ) |  | (11 | ) |  | (12 | )
Adjustments(1) | — |  |  | (1 | ) |  | (1 | )
Changes in foreign currency exchange rates | — |  |  | 6 |  |  | 6 |
Balances at April 30, 2016 | $ | 1 |  |  | $ | 58 |  |  | $ | 59 |
(1) Adjustments to facility closure and other costs represent changes in sublease assumptions.
| Termination Benefits |  | Facility Closure and Other Costs |  | Total
Balances at January 31, 2015 | $ | — |  |  | $ | — |  |  | $ | — |
Charges | 24 |  |  | 98 |  |  | 122 |
Cash payments | (17 | ) |  | (3 | ) |  | (20 | )
Changes in foreign currency exchange rates | 1 |  |  | 3 |  |  | 4 |
Balances at May 2, 2015 | $ | 8 |  |  | $ | 98 |  |  | $ | 106 |

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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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