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Restructuring | 12 Months Ended
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Jan. 30, 2021
Restructuring [Abstract] |
Restructuring | 2. Restructuring Restructuring charges were as follows ($ in millions):
|  |  |  |  |  | 2021 |  | 2020 |  | 2019
Mexico Exit and Strategic Realignment(1) |  |  | $ | 277 |  |  | $ | - |  |  | $ | - |
Fiscal 2020 U.S. Retail Operating Model Changes |  |  |  | - |  |  |  | 41 |  |  |  | - |
Best Buy Mobile Exit |  |  |  |  |  |  | - |  |  |  | - |  |  |  | 47 |
Canadian Brand Consolidation |  |  |  |  |  |  | - |  |  |  | - |  |  |  | (1) |
Total |  |  |  |  |  | $ | 277 |  |  | $ | 41 |  |  | $ | 46 |
(1)Includes $23 million related to inventory markdowns recorded in Cost of sales on our Consolidated Statements of Earnings in fiscal 2021. Mexico Exit and Strategic Realignment The COVID-19 pandemic has had significant impacts on, for example, the economic conditions of the markets in which we operate, customer shopping behaviors, the role of technology in peoples’ lives and the way we meet their needs. In light of these changes, we are adapting our Building the New Blue Strategy to ensure that our focus and resources are closely aligned with the opportunities we see in front of us. As a result, in the third quarter of fiscal 2021, we made the decision to exit our operations in Mexico and began taking other actions to more broadly align our organizational structure in support of our strategy. Charges incurred in our International segment primarily related to our decision to exit our operations in Mexico. As of January 30, 2021, the exit was substantially complete and we do not expect to incur material future restructuring charges. Charges incurred in our Domestic segment primarily related to actions taken to align our organizational structure in support of our strategy. During the third quarter of fiscal 2021, we incurred $46 million of restructuring charges primarily related to termination benefits associated with corporate organizational changes, as well as impairments of technology assets held in service of our Mexico operations. During the fourth quarter of fiscal 2021, we incurred $87 million of restructuring charges related to termination benefits primarily for field employees in order to be more responsive and flexible with our workforce as we continue to refine our operating model to better serve our customers’ needs. As we continue to evolve our Building the New Blue Strategy, it is possible that we will incur material future restructuring costs, but we are unable to forecast the timing and magnitude of such costs. All charges incurred related to the exit from Mexico and strategic realignment described above were from continuing operations and were presented as follows ($ in millions):
|  |  | 2021
|  | Statement of Earnings Location | Domestic |  | International |  | Total
Inventory markdowns |  | Cost of sales | $ | - |  |  | $ | 23 |  |  | $ | 23 |
Asset impairments(1) |  | Restructuring charges |  | 10 |  |  |  | 57 |  |  |  | 67 |
Termination benefits |  | Restructuring charges |  | 123 |  |  |  | 20 |  |  |  | 143 |
Currency translation adjustment |  | Restructuring charges |  | - |  |  |  | 39 |  |  |  | 39 |
Other(2) |  | Restructuring charges |  | - |  |  |  | 5 |  |  |  | 5 |
|  |  |  |  |  |  | $ | 133 |  |  | $ | 144 |  |  | $ | 277 |
(1)Remaining net carrying value approximates fair value and is immaterial as of January 30, 2021. (2)Other charges are primarily comprised of contract termination costs. Restructuring accrual activity related to the exit from Mexico and strategic realignment described above was as follows ($ in millions):
|  |  |  |  |  | Termination Benefits
|  |  |  |  |  | Domestic |  | International |  | Total
Balances as of February 1, 2020 |  |  |  |  |  | $ | - |  |  | $ | - |  |  | $ | - |
Charges |  |  |  |  |  |  | 123 |  |  |  | 20 |  |  |  | 143 |
Cash payments |  |  |  |  |  |  | (19) |  |  |  | - |  |  |  | (19) |
Balances as of January 30, 2021 |  |  |  |  |  | $ | 104 |  |  | $ | 20 |  |  | $ | 124 |
Fiscal 2020 U.S. Retail Operating Model Changes 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 within our Domestic segment and were presented within Restructuring charges from continuing operations on our Consolidated Statements of Earnings. As of January 30, 2021, the cumulative amount of charges incurred was $41 million and no material liability remains. Best Buy Mobile Exit 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 online channel, which are more economically compelling today. The cumulative amount of charges incurred was $56 million, comprised of $49 million of facility closure and other costs, $6 million of termination benefits and $1 million of asset impairments. All charges incurred related to our Domestic segment and were presented within Restructuring charges from continuing operations on our Consolidated Statements of Earnings. No restructuring accrual related to this plan remains as of January 30, 2021.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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