BEST BUY CO INC, 10-Q filed on 6/13/2012
Quarterly Report
Document and Entity Information Document
3 Months Ended
May 5, 2012
Jun. 6, 2012
Document Information [Line Items]
 
 
Entity Registrant Name
BEST BUY CO INC 
 
Current Fiscal Year End Date
--02-02 
 
Document Fiscal Year Focus
2013 
 
Amendment Flag
false 
 
Entity Current Reporting Status
Yes 
 
Entity Common Stock, Shares Outstanding
 
339,903,251 
Document Fiscal Period Focus
Q1 
 
Document Type
10-Q 
 
Entity Central Index Key
0000764478 
 
Document Period End Date
May 05, 2012 
 
Entity Filer Category
Large Accelerated Filer 
 
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
In Millions, unless otherwise specified
May 5, 2012
Mar. 3, 2012
Apr. 30, 2011
CURRENT ASSETS
 
 
 
Cash and cash equivalents
$ 1,386 
$ 1,199 
$ 2,793 
Short-term investments
20 
Receivables
1,846 
2,288 
1,713 
Merchandise inventories
6,065 
5,731 
6,508 
Other current assets
1,019 
1,079 
1,135 
Total current assets
10,316 
10,297 
12,169 
PROPERTY AND EQUIPMENT, NET
3,407 
3,471 
3,797 
GOODWILL
1,335 
1,335 
2,506 
TRADENAMES, NET
130 
130 
136 
CUSTOMER RELATIONSHIPS, NET
224 
229 
194 
EQUITY AND OTHER INVESTMENTS
128 
140 
316 
OTHER ASSETS
471 
403 
454 
TOTAL ASSETS
16,011 
16,005 
19,572 
CURRENT LIABILITIES
 
 
 
Accounts payable
5,731 
5,364 
6,102 
Unredeemed gift card liabilities
416 
456 
453 
Accrued compensation and related expenses
638 
539 
538 
Accrued liabilities
1,595 
1,685 
1,585 
Accrued income taxes
272 
288 
308 
Short-term debt
306 
480 
39 
Current portion of long-term debt
43 
43 
442 
Total current liabilities
9,001 
8,855 
9,467 
LONG-TERM LIABILITIES
1,025 
1,099 
1,179 
LONG-TERM DEBT
1,678 
1,685 
1,704 
Best Buy Co., Inc. Shareholders’ Equity
 
 
 
Preferred stock, $1.00 par value: Authorized - 400,000 shares; Issued and outstanding - none
Common stock, $0.10 par value: Authorized — 1.0 billion shares; Issued and outstanding — 342,247,000, 341,400,000 and 383,610,000 shares, respectively
34 
34 
38 
Additional paid-in capital
20 
Retained earnings
3,520 
3,621 
6,175 
Accumulated other comprehensive income
98 
90 
274 
Total Best Buy Co., Inc. shareholders' equity
3,672 
3,745 
6,487 
Noncontrolling interests
635 
621 
735 
Total equity
4,307 
4,366 
7,222 
TOTAL LIABILITIES AND EQUITY
$ 16,011 
$ 16,005 
$ 19,572 
CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) (USD $)
May 5, 2012
Mar. 3, 2012
Apr. 30, 2011
Preferred stock, par value (in dollars per share)
$ 1.00 
$ 1.00 
$ 1.00 
Preferred stock, Authorized shares
400,000 
400,000 
400,000 
Preferred stock, Issued shares
Preferred stock, outstanding shares
Common stock, par value (in dollars per share)
$ 0.10 
$ 0.10 
$ 0.10 
Common stock, Authorized shares
1,000,000,000 
1,000,000,000 
1,000,000,000 
Common stock, Issued shares
342,247,000 
341,400,000 
383,610,000 
Common stock, outstanding shares
342,247,000 
 
383,610,000 
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
May 5, 2012
Apr. 30, 2011
Revenue
$ 11,610 
$ 11,369 
Cost of goods sold
8,703 
8,448 
Gross profit
2,907 
2,921 
Selling, general and administrative expenses
2,518 
2,457 
Restructuring charges
127 
Operating income
262 
460 
Other income (expense)
 
 
Investment income and other
17 
Interest expense
(33)
(28)
Earnings from continuing operations before income tax expense and equity in loss of affiliates
235 
449 
Income tax expense
72 
155 
Equity in loss of affiliates
(2)
(1)
Net earnings from continuing operations
161 
293 
Loss from discontinued operations (Note 3), net of tax benefit of $6 and $20
(9)
(54)
Net earnings including noncontrolling interests
152 
239 
Net (earnings) from continuing operations attributable to noncontrolling interests
(38)
Net loss from discontinued operations attributable to noncontrolling interests
11 
Net earnings (loss) attributable to Best Buy Co., Inc.
158 
212 
Basic (loss) earnings per share attributable to Best Buy Co., Inc.
 
 
Continuing operations
$ 0.47 
$ 0.65 
Discontinued operations
$ (0.01)
$ (0.11)
Basic earnings per share
$ 0.46 
$ 0.54 
Diluted (loss) earnings per share attributable to Best Buy Co., Inc.
 
 
Continuing operations
$ 0.47 
$ 0.64 
Discontinued operations
$ (0.01)
$ (0.11)
Diluted earnings per share
$ 0.46 
$ 0.53 
Dividends declared per common share (in dollars per share)
$ 0.16 
$ 0.15 
Weighted-average common shares outstanding (in millions)
 
 
Basic (in shares)
342.2 
391.1 
Diluted (in shares)
342.8 
400.7 
Comprehensive income including noncontrolling interests
196 
382 
Comprehensive (income) attributable to noncontrolling interests
(14)
(49)
Comprehensive income attributable to Best Buy Co., Inc.
$ 182 
$ 333 
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (PARENTHETICAL) (USD $)
In Millions, unless otherwise specified
3 Months Ended
May 5, 2012
Apr. 30, 2011
Income tax benefit
$ 6 
$ 20 
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $)
In Millions, unless otherwise specified
Total
Total Best Buy Co., Inc. [Member]
Common Stock [Member]
Additional Paid-In Capital [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Noncontrolling Interests [Member]
Beginning balances at Jan. 29, 2011
$ 7,139 
$ 6,449 
$ 39 
$ 0 
$ 6,257 
$ 153 
$ 690 
Beginning balances (in shares) at Jan. 29, 2011
 
 
393 
 
 
 
 
Increase (Decrease) in Shareholders' Equity
 
 
 
 
 
 
 
Adjustment for fiscal year-end change (note 2) (in shares)
 
 
 
 
 
 
Adjustment for fiscal year-end change (note 2)
(153)
(153)
(18)
(115)
(20)
Ending balances at Feb. 26, 2011
7,292 
6,602 
39 
18 
6,372 
173 
690 
Ending balances (in shares) at Feb. 26, 2011
 
 
393 
 
 
 
 
Beginning balances at Jan. 29, 2011
7,139 
6,449 
39 
6,257 
153 
690 
Beginning balances (in shares) at Jan. 29, 2011
 
 
393 
 
 
 
 
Increase (Decrease) in Shareholders' Equity
 
 
 
 
 
 
 
Net earnings, three months ended
239 
212 
212 
27 
Foreign currency translation adjustments
145 
125 
125 
20 
Unrealized losses (gains) on available-for-sale investments
(6)
(6)
(6)
Cash flow hedging instruments - unrealized gains (losses)
Dividend distribution
(4)
(4)
Stock-based compensation
37 
37 
37 
Stock options exercised (in shares)
 
 
 
 
 
 
Stock options exercised
25 
25 
25 
Issuance of common stock under employee stock purchase plan (in shares)
 
 
 
 
 
 
Issuance of common stock under employee stock purchase plan
23 
23 
23 
Tax benefit (deficit) from stock options exercised, restricted stock vesting and employee stock purchase plan
Common stock dividends, $0.16 per share during the period ended May 5, 2012 and $0.15 per share during the period ended April 30, 2011, respectively
(57)
(57)
(57)
Repurchase of common stock (in shares)
 
 
(11)
 
 
 
 
Repurchase of common stock
(325)
(325)
(1)
(87)
(237)
Ending balances at Apr. 30, 2011
7,222 
6,487 
38 
6,175 
274 
735 
Ending balances (in shares) at Apr. 30, 2011
 
 
384 
 
 
 
 
Beginning balances at Jan. 28, 2012
4,242 
3,621 
34 
3,513 
74 
621 
Beginning balances (in shares) at Jan. 28, 2012
 
 
346 
 
 
 
 
Increase (Decrease) in Shareholders' Equity
 
 
 
 
 
 
 
Adjustment for fiscal year-end change (note 2) (in shares)
 
 
 
 
 
 
Adjustment for fiscal year-end change (note 2)
(124)
(124)
(108)
(16)
Ending balances at Mar. 03, 2012
4,366 
3,745 
34 
3,621 
90 
621 
Ending balances (in shares) at Mar. 03, 2012
 
 
341 
 
 
 
 
Beginning balances at Jan. 28, 2012
4,242 
3,621 
34 
3,513 
74 
621 
Beginning balances (in shares) at Jan. 28, 2012
 
 
346 
 
 
 
 
Increase (Decrease) in Shareholders' Equity
 
 
 
 
 
 
 
Net earnings, three months ended
152 
158 
158 
(6)
Foreign currency translation adjustments
43 
23 
23 
20 
Unrealized losses (gains) on available-for-sale investments
Stock-based compensation
33 
33 
33 
Issuance of common stock under employee stock purchase plan (in shares)
 
 
 
 
 
 
Issuance of common stock under employee stock purchase plan
13 
13 
13 
Tax benefit (deficit) from stock options exercised, restricted stock vesting and employee stock purchase plan
(9)
(9)
(9)
Common stock dividends, $0.16 per share during the period ended May 5, 2012 and $0.15 per share during the period ended April 30, 2011, respectively
(53)
(53)
(53)
Repurchase of common stock (in shares)
 
 
(5)
 
 
 
 
Repurchase of common stock
(115)
(115)
(17)
(98)
Ending balances at May. 05, 2012
$ 4,307 
$ 3,672 
$ 34 
$ 20 
$ 3,520 
$ 98 
$ 635 
Ending balances (in shares) at May. 05, 2012
 
 
342 
 
 
 
 
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (PARENTHETICAL)
3 Months Ended
May 5, 2012
Apr. 30, 2011
Statement of Stockholders' Equity [Abstract]
 
 
Dividends declared per common share (in dollars per share)
$ 0.16 
$ 0.15 
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Millions, unless otherwise specified
3 Months Ended
May 5, 2012
Apr. 30, 2011
OPERATING ACTIVITIES
 
 
Net earnings including noncontrolling interests
$ 152 
$ 239 
Adjustments to reconcile net earnings including noncontrolling interests to total cash provided by operating activities
 
 
Depreciation
227 
222 
Amortization of definite-lived intangible assets
10 
15 
Restructuring charges
133 
32 
Stock-based compensation
33 
37 
Deferred income taxes
(98)
(129)
Other, net
20 
Changes in operating assets and liabilities
 
 
Receivables
623 
616 
Merchandise inventories
765 
926 
Other assets
(96)
(27)
Accounts payable
(1,153)
(561)
Other liabilities
(264)
(113)
Income taxes
27 
86 
Total cash provided by (used in) operating activities
379 
1,343 
INVESTING ACTIVITIES
 
 
Additions to property and equipment
(141)
(172)
Purchases of investments
(5)
(21)
Sales of investments
17 
44 
Acquisition of businesses, net of cash acquired
(10)
Proceeds from sale of business, net of cash transferred
25 
Change in restricted assets
20 
Total cash provided by (used in) investing activities
(94)
(143)
FINANCING ACTIVITIES
 
 
Repurchase of common stock
(132)
(260)
Borrowings of debt
221 
1,406 
Repayments of debt
(416)
(945)
Issuance of common stock under employee stock purchase plan and for the exercise of stock options
13 
48 
Other, net
(12)
Total cash provided by (used in) financing activities
(305)
237 
EFFECT OF EXCHANGE RATE CHANGES ON CASH
18 
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS BEFORE ADJUSTMENT
(15)
1,455 
CASH AND CASH EQUIVALENTS AT END OF PERIOD
$ 1,386 
$ 2,793 
Basis of Presentation
Basis of Presentation
Basis of Presentation
 
Unless the context otherwise requires, the use of the terms “Best Buy,” “we,” “us” and “our” in these Notes to Condensed Consolidated Financial Statements refers to Best Buy Co., Inc. and its consolidated subsidiaries.
 
In the opinion of management, the accompanying condensed consolidated financial statements contain all adjustments necessary for a fair presentation as prescribed by accounting principles generally accepted in the United States (“GAAP”). All adjustments were comprised of normal recurring adjustments, except as noted in these Notes to Condensed Consolidated Financial Statements.
 
Historically, we have realized more of our revenue and earnings in the fiscal fourth quarter, which includes the majority of the holiday shopping season in the U.S., Europe and Canada, than in any other fiscal quarter. Due to the seasonal nature of our business, interim results are not necessarily indicative of results for the entire fiscal year. The interim financial statements and the related notes in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended March 3, 2012.
 
Beginning in the first quarter of fiscal 2013, we changed our fiscal year-end. As a result of the change in our fiscal year-end, the comparable prior year financial statements have been recast to conform to the new fiscal calendar. The first quarter of fiscal 2013 included 14 weeks and the recast first quarter of 2012 included 13 weeks. See Note 2, Fiscal Year-end Change, for further information.
 
In order to align our fiscal reporting periods and comply with statutory filing requirements in certain foreign jurisdictions, we consolidate the financial results of our Europe, China and Mexico operations ("lag entities") on a one-month lag. Our policy is to accelerate recording the effect of events occurring in the lag period that significantly affect our consolidated financial statements. There were no significant intervening events which would have materially affected our financial condition, results of operations or liquidity had they been recorded during the three months ended May 5, 2012.
 
In preparing the accompanying condensed consolidated financial statements, we evaluated the period from May 6, 2012, through the date the financial statements were issued for material subsequent events requiring recognition or disclosure. No such events were identified for this period.

New Accounting Standards
 
Goodwill Impairment — In September 2011, the Financial Accounting Standards Board (“FASB”) issued new guidance on the testing of goodwill for impairment. Under the new guidance, entities may make a qualitative assessment of the likelihood of goodwill impairment in order to determine whether a detailed quantitative analysis is required. This new guidance is effective for fiscal years and interim periods beginning after December 15, 2011. As such, we adopted the new guidance on March 4, 2012, and determined that it did not have an impact on our consolidated financial position, results of operations or cash flows.

Comprehensive Income — In June 2011, the FASB issued new guidance on the presentation of comprehensive income. Specifically, the new guidance requires an entity to present components of net income and other comprehensive income in one continuous statement, referred to as the statement of comprehensive income, or in two separate, but consecutive statements. The new guidance eliminated the previous option to report other comprehensive income and its components in the statement of changes in equity. While the new guidance changed the presentation of comprehensive income, there are no changes to the components that are recognized in net income or other comprehensive income under current accounting guidance. This new guidance is effective for fiscal years and interim periods beginning after December 15, 2011. As such, we adopted the new guidance on March 4, 2012, and have presented total comprehensive income in our Condensed Consolidated Statements of Earnings and Comprehensive Income.

Fair Value Measurement — In April 2011, the FASB issued new guidance to converge fair value measurement and disclosure guidance with International Financial Reporting Standards. This new guidance amended current fair value measurement and disclosure guidance to include increased transparency around valuation inputs and investment categorization. This new guidance is effective for fiscal years and interim periods beginning after December 15, 2011. As such, we adopted the new guidance on March 4, 2012, and determined that it did not have an impact on our consolidated financial position, results of operations or cash flows.
Fiscal Year-end Change
Fiscal Year-End Change
Fiscal Year-end Change

Beginning in the first quarter of fiscal 2013, we changed our fiscal year-end from the Saturday nearest the end of February to the Saturday nearest the end of January. As a result of this change, our fiscal year 2013 is an 11-month transition period ending on February 2, 2013. In the first quarter of fiscal 2013, we also began consolidating the results of our Europe, China and Mexico operations on a one-month lag as a result of this change, compared to a two-month lag in fiscal year 2012, to continue to align our fiscal reporting periods with statutory filing requirements in certain foreign jurisdictions.

In order to allow an immediate transition to our new fiscal calendar and to maintain transparency and comparability of financial information included in our quarterly Form 10-Q filings, we are presenting such quarterly information on a three-month basis for both the current and prior fiscal years, in both instances based on the new fiscal calendar. Following the change to our fiscal calendar, the first quarter of fiscal 2013 is the three months ended May 5, 2012. Therefore, the Condensed Consolidated Statements of Earnings and Comprehensive Income, Consolidated Statements of Changes in Shareholders' Equity and Consolidated Statements of Cash Flows reflect results for the three-month period ended May 5, 2012. These results include our fiscal month ended March 3, 2012 (“February 2012”) for operations that are not reported on a lag (primarily our Domestic segment and Canadian operations), which were also included in our results for the fiscal year ended March 3, 2012 included in our fiscal 2012 Form 10-K. The change in fiscal calendar does not impact our quarterly financial statements for our lag entities because the reduction in the lag period from two months to one month occurred concurrent with the change in our fiscal calendar.

The following table shows the fiscal months included in the first quarters of fiscal 2013 and 2012 under our new fiscal calendar, as well as the fiscal months included the first quarter of fiscal 2012 under our previous fiscal calendar:
New Fiscal Calendar(1)
 
Previous Fiscal Calendar(1)
2013
 
2012
 
2012
February 2012 - April 2012
 
February 2011 - April 2011
 
March 2011 - May 2011
(1) 
For entities reported on a lag, the fiscal months included in the first quarters of fiscal 2013 and 2012 were January through March under both the new and previous fiscal calendars.

The Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Earnings and Comprehensive Income, Consolidated Statements of Changes in Shareholders' Equity, Consolidated Statements of Cash Flows and corresponding Notes are presented based on the new fiscal calendar (May 5, 2012 for fiscal 2013 and April 30, 2011 for fiscal 2012) and the most recent audited fiscal year (March 3, 2012).

Results for February 2012 and February 2011

As a result of the overlap of February 2012 between the fourth quarter of fiscal 2012 (previous fiscal calendar) and the first quarter of fiscal 2013 (new fiscal calendar), $3,908 of revenue from February 2012 is included in our Condensed Consolidated Statements of Earnings and Comprehensive Income for the first quarter of fiscal 2013, which was also included in our results for the fiscal year ended March 3, 2012 included in our fiscal 2012 Form 10-K.

The following table provides a summary of the adjustment to Retained earnings within the Consolidated Statements of Changes in Shareholders' Equity as a result of the overlap of February 2012 between the fourth quarter of fiscal 2012 (previous fiscal calendar) and the first quarter of fiscal 2013 (new fiscal calendar), as well as a similar overlap in the prior-year period. The primary components of the net reconciling item to Retained earnings include the net earnings from the Domestic segment and Canadian operations, offset by the impact of share repurchases which reduced Retained earnings upon their retirement.
 
February 2012
 
February 2011
Net earnings
$
206

 
$
115

Impact of share repurchases(1)
(98
)
 

Net reconciling item to Retained earnings
$
108

 
$
115

(1)
Share repurchases reduced Retained earnings after the Additional paid-in capital balance was reduced to zero during February 2012.

In addition, the Consolidated Statements of Cash Flows includes a net reconciling item (adjustment) for the cash flows as a result of the overlap described above. The total adjustment for the overlap of February 2012 was $202, primarily due to $135 of cash used in financing activities and $46 of cash used in investing activities. The total adjustment for February 2011 was $235 due almost entirely to $228 of cash used in operating activities. The adjustments for both periods included the effect of exchange rate changes on our cash balances.
Discontinued Operations
Discontinued Operations
Discontinued Operations

Discontinued operations comprise: (i) Napster operations within our Domestic segment; (ii) large-format Best Buy branded store operations in China, Turkey and the United Kingdom ("U.K.") within our International segment; and (iii) The PhoneHouse stores in Belgium within our International Segment. Discontinued operations presentation has been retrospectively applied to all prior periods presented.

The financial results of discontinued operations for three months ended May 5, 2012, and April 30, 2011, were as follows:
 
May 5, 2012
 
April 30, 2011
 
 
 
(recast)
Revenue
$
8

 
$
128

 
 
 
 
Restructuring charges(1)
6

 
28

 
 
 
 
Loss from discontinued operations before income tax benefit
(15
)
 
(74
)
Income tax benefit
6

 
20

Net loss from discontinued operations including noncontrolling interests
(9
)
 
(54
)
Net loss from discontinued operations attributable to noncontrolling interests
6

 
11

Net loss from discontinued operations attributable to Best Buy Co., Inc.
$
(3
)
 
$
(43
)
 
(1)  
See Note 7, Restructuring Charges, for further discussion of the restructuring charges associated with discontinued operations.
Investments
Investments
Investments
 
Investments were comprised of the following:
 
May 5, 2012
 
March 3, 2012
 
April 30, 2011
 
 
 
 
 
(recast)
Short-term investments
 

 
 

 
 
U.S. Treasury bills

 

 
20

 
 
 
 
 
 
Equity and other investments
 

 
 

 
 

Debt securities (auction rate securities)
$
66

 
$
82

 
$
97

Marketable equity securities
3

 
3

 
147

Other investments
59

 
55

 
72

Total equity and other investments
$
128

 
$
140

 
$
316


Debt Securities
 
Our debt securities are comprised of auction rate securities (“ARS”). ARS were intended to behave like short-term debt instruments because their interest rates reset periodically through an auction process, most commonly at intervals of seven, 28 and 35 days. The auction process had historically provided a means by which we could rollover the investment or sell these securities at par in order to provide us with liquidity as needed. As a result, we classify our investments in ARS as available-for-sale and carry them at fair value.

In February 2008, auctions began to fail due to insufficient buyers, as the amount of securities submitted for sale in auctions exceeded the aggregate amount of the bids. For each failed auction, the interest rate on the security moves to a maximum rate specified for each security, and generally resets at a level higher than specified short-term interest rate benchmarks. To date, we have collected all interest due on our ARS and expect to continue to do so in the future. Due to persistent failed auctions, and the uncertainty of when these investments could be liquidated at par, we have classified all of our investments in ARS as non-current assets within Equity and Other Investments in our Condensed Consolidated Balance Sheet at May 5, 2012.
 
We sold $17 of ARS at par during the first quarter of fiscal 2013. However, at May 5, 2012, our entire remaining ARS portfolio, consisting of 14 investments in ARS with an aggregate value at par of $71, was subject to failed auctions.
 
Our ARS portfolio consisted of the following, at fair value:

Description
 
Nature of collateral or guarantee
 
May 5, 2012
 
March 3, 2012
 
April 30, 2011
 
 
 
 
 
 
 
 
(recast)
Student loan bonds
 
Student loans guaranteed 95% to 100% by the U.S. government
 
$
64

 
$
80

 
$
95

Municipal revenue bonds
 
100% insured by AA/Aa-rated bond insurers at May 5, 2012
 
2

 
2

 
2

Total fair value plus accrued interest(1)
 
 
 
$
66

 
$
82

 
$
97

 
(1) 
The par value and weighted-average interest rates (taxable equivalent) of our ARS were $71, $88 and $101, and 0.66%, 0.50% and 0.75%, respectively, at May 5, 2012, March 3, 2012, and April 30, 2011, respectively.
 
At May 5, 2012, our ARS portfolio was 25% AAA/Aaa-rated, 64% AA/Aa-rated and 11% A/A-rated.
 
The investment principal associated with failed auctions will not be accessible until successful auctions occur, a buyer is found outside of the auction process, the issuers establish a different form of financing to replace these securities, or final payments are due according to the contractual maturities of the debt issuances, which range from four to 30 years. We do not intend to sell our remaining ARS until we can recover the full principal amount through one of the means described above. In addition, we do not believe it is more likely than not that we would be required to sell our remaining ARS until we can recover the full principal amount based on our other sources of liquidity.

We evaluated our entire ARS portfolio of $71 (par value) for impairment at May 5, 2012, based primarily on the methodology described in Note 5, Fair Value Measurements. As a result of this review, we determined that the fair value of our ARS portfolio at May 5, 2012, was $66. Accordingly, a $5 pre-tax unrealized loss is recognized in accumulated other comprehensive income. This unrealized loss reflects a temporary impairment on all of our investments in ARS. The estimated fair value of our ARS portfolio could change significantly based on future market conditions. We will continue to assess the fair value of our ARS portfolio for substantive changes in relevant market conditions, changes in our financial condition or other changes that may alter our estimates described above.

We may be required to record an additional unrealized holding loss or an impairment charge to earnings if we determine that our ARS portfolio has incurred a further decline in fair value that is temporary or other-than-temporary, respectively. Factors that we consider when assessing our ARS portfolio for other-than-temporary impairment include the duration and severity of the impairment, the reason for the decline in value, the potential recovery period, the nature of the collateral or guarantees in place and our intent and ability to hold an investment.
 
We had $(3), $(3) and $(2) of unrealized loss, net of tax, recorded in accumulated other comprehensive income at May 5, 2012, March 3, 2012, and April 30, 2011, respectively, related to our investments in debt securities.
 
Marketable Equity Securities
 
We invest in marketable equity securities and classify them as available-for-sale. Investments in marketable equity securities are classified as non-current assets within Equity and Other Investments in our Condensed Consolidated Balance Sheets and are reported at fair value based on quoted market prices.
 
Our investments in marketable equity securities were as follows:
 
May 5, 2012
 
March 3, 2012
 
April 30, 2011
 
 
 
 
 
(recast)
Common stock of TalkTalk Telecom Group PLC
$

 
$

 
$
87

Common stock of Carphone Warehouse Group plc

 

 
60

Other
3

 
3

 

Total
$
3

 
$
3

 
$
147


 
We review all investments for other-than-temporary impairment at least quarterly or as indicators of impairment exist. Indicators of impairment include the duration and severity of the decline in fair value as well as the intent and ability to hold the investment to allow for a recovery in the market value of the investment. In addition, we consider qualitative factors that include, but are not limited to: (i) the financial condition and business plans of the investee including its future earnings potential, (ii) the investee’s credit rating, and (iii) the current and expected market and industry conditions in which the investee operates. If a decline in the fair value of an investment is deemed by management to be other-than-temporary, the cost basis of the investment is written down to fair value, and the amount of the write-down is included in net earnings.

All unrealized holding gains or losses related to our investments in marketable equity securities are reflected net of tax in accumulated other comprehensive income in shareholders’ equity. The total unrealized gain, net of tax, included in accumulated other comprehensive income was $0, $0 and $74 at May 5, 2012, March 3, 2012, and April 30, 2011, respectively.
 
Other Investments
 
The aggregate carrying values of investments accounted for using either the cost method or the equity method at May 5, 2012, March 3, 2012, and April 30, 2011, were $59, $55 and $72, respectively.
Fair Value Measurements
Fair Value Measurements
Fair Value Measurements
 
Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. To measure fair value, we use a three-tier valuation hierarchy based upon observable and non-observable inputs:
 
Level 1 — Unadjusted quoted prices that are available in active markets for the identical assets or liabilities at the measurement date.
 
Level 2 — Significant other observable inputs available at the measurement date, other than quoted prices included in Level 1, either directly or indirectly, including:
 
Quoted prices for similar assets or liabilities in active markets;
Quoted prices for identical or similar assets in non-active markets;
Inputs other than quoted prices that are observable for the asset or liability; and
Inputs that are derived principally from or corroborated by other observable market data.
 
Level 3 — Significant unobservable inputs that cannot be corroborated by observable market data and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions.
 
Assets and Liabilities Measured at Fair Value on a Recurring Basis
 
The fair value hierarchy requires the use of observable market data when available. In instances in which the inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability. The following tables set forth by level within the fair value hierarchy, our financial assets and liabilities that were accounted for at fair value on a recurring basis at May 5, 2012, March 3, 2012, and April 30, 2011, according to the valuation techniques we used to determine their fair values.
 
 
 
Fair Value Measurements
Using Inputs Considered as
 
Fair Value at
May 5, 2012
 
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
ASSETS
 

 
 

 
 

 
 

Cash and cash equivalents
 

 
 

 
 

 
 

Money market funds
$
439

 
$
439

 
$

 
$

Other current assets
 

 
 

 
 

 
 

Money market funds (restricted cash)
104

 
104

 

 

U.S. Treasury bills (restricted cash)
30

 
30

 

 

Equity and other investments
 

 
 

 
 

 
 

Auction rate securities
66

 

 

 
66

Marketable equity securities
3

 
3

 

 


 
 
 
Fair Value Measurements
Using Inputs Considered as
 
Fair Value at
March 3, 2012
 
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
ASSETS
 

 
 

 
 

 
 

Cash and cash equivalents
 

 
 

 
 

 
 

Money market funds
$
272

 
$
272

 
$

 
$

Other current assets
 

 
 

 
 

 
 

Money market funds (restricted cash)
119

 
119

 

 

U.S. Treasury bills (restricted cash)
30

 
30

 

 

Foreign currency derivative instruments
1

 

 
1

 

Equity and other investments
 

 
 

 
 

 
 

Auction rate securities
82

 

 

 
82

Marketable equity securities
3

 
3

 

 

 
 
 
 
 
 
 
 
LIABILITIES
 

 
 

 
 

 
 

Accrued liabilities
 

 
 

 
 

 
 

Foreign currency derivative instruments
2

 

 
2

 

 
 
 
 
Fair Value Measurements
Using Inputs Considered as
 
Fair Value at
April 30, 2011
 
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
(recast)
 
(recast)
 
(recast)
 
(recast)
ASSETS
 

 
 

 
 

 
 

Cash and cash equivalents
 
 
 
 
 
 
 
Money market funds
1,485

 
1,485

 

 

Commercial paper
60

 

 
60

 

U.S. Treasury bills
190

 
190

 

 

Short-term investments
 

 
 

 
 

 
 

U.S. Treasury bills
20

 
20

 

 

Other current assets
 

 
 

 
 

 
 

Money market funds (restricted assets)
107

 
107

 

 

U.S. Treasury bills (restricted assets)
70

 
70

 

 

Foreign currency derivative instruments
9

 

 
9

 

Equity and other investments
 

 
 

 
 

 
 

Auction rate securities
97

 

 

 
97

Marketable equity securities
147

 
147

 

 

Other assets
 

 
 

 
 

 
 

Foreign currency derivative instruments
2

 

 
2

 

 
 
 
 
 
 
 
 
LIABILITIES
 

 
 

 
 

 
 

Accrued liabilities
 
 
 
 
 
 
 
Foreign currency derivative instruments
2

 

 
2

 



The following tables provide a reconciliation between the beginning and ending balances of items measured at fair value on a recurring basis in the tables above that used significant unobservable inputs (Level 3) for the two months ended May 5, 2012, and April 30, 2011.
 
Debt securities-
Auction rate securities only
 
Student loan
bonds
 
Municipal
revenue bonds
 
Total
Balances at March 3, 2012
$
80

 
$
2

 
$
82

Changes in unrealized losses included in other comprehensive income
1

 

 
1

Sales
(17
)
 

 
(17
)
Balances at May 5, 2012
$
64

 
$
2

 
$
66

  
 
Debt securities-
Auction rate securities only
 
Student loan
bonds
 
Municipal
revenue bonds
 
Total
Balances at February 26, 2011
$
108

 
$
2

 
$
110

Changes in unrealized losses included in other comprehensive income
1

 

 
1

Sales
(14
)
 

 
(14
)
Balances at April 30, 2011 (recast)
$
95

 
$
2

 
$
97

 
The following methods and assumptions were used to estimate the fair value of each class of financial instrument:
 
Money Market Funds.  Our money market fund investments that are traded in an active market were measured at fair value using quoted market prices and, therefore, were classified as Level 1.

U.S. Treasury Bills.  Our U.S. Treasury notes were classified as Level 1 as they trade with sufficient frequency and volume to enable us to obtain pricing information on an ongoing basis.
 
Commercial Paper.  Our investments in commercial paper were measured using inputs based upon quoted prices for similar instruments in active markets and, therefore, were classified as Level 2.
 
Foreign Currency Derivative Instruments.  Comprised primarily of foreign currency forward contracts and foreign currency swap contracts, our foreign currency derivative instruments were measured at fair value using readily observable market inputs, such as quotations on forward foreign exchange points and foreign interest rates. Our foreign currency derivative instruments were classified as Level 2 as these instruments are custom, over-the-counter contracts with various bank counterparties that are not traded in an active market.
 
Auction Rate Securities.  Our investments in ARS were classified as Level 3 as quoted prices were unavailable due to events described in Note 4, Investments. Due to limited market information, we utilized a discounted cash flow (“DCF”) model to derive an estimate of fair value. The unobservable inputs and assumptions we used in preparing the DCF model included estimates with respect to the amount and timing of future interest and principal payments, forward projections of the interest rate benchmarks, the probability of full repayment of the principal considering the credit quality and guarantees in place, and the rate of return required by investors to own such securities given the current liquidity risk associated with ARS. Changes in these unobservable inputs are not likely to have a significant impact on the fair value measurement or our ARS.
 
Marketable Equity Securities.  Our marketable equity securities were measured at fair value using quoted market prices. They were classified as Level 1 as they trade in an active market for which closing stock prices are readily available.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
 
Assets and liabilities that are measured at fair value on a nonrecurring basis relate primarily to our tangible fixed assets, goodwill and other intangible assets, which are remeasured when the derived fair value is below carrying value on our Condensed Consolidated Balance Sheets. For these assets, we do not periodically adjust carrying value to fair value except in the event of impairment. When we determine that impairment has occurred, the carrying value of the asset is reduced to fair value and the difference is recorded within Operating Income in our Condensed Consolidated Statements of Earnings and Comprehensive Income.

With the exception of fixed asset impairments associated with our restructuring activities described in Note 7, Restructuring Charges, we had no significant remeasurements of such assets or liabilities to fair value during the three months ended May 5, 2012, and April 30, 2011. The following table summarizes the fair value remeasurments recorded three months ended May 5, 2012, and April 30, 2011:
 
Three Months Ended
 
Three Months Ended
 
May 5, 2012
 
April 30, 2011
 
Impairments
 
Remaining Net Carrying Value
 
Impairments
 
Remaining Net Carrying Value
 
 
 
 
 
(recast)
 
(recast)
Continuing Operations
 
 
 
 
 
 
 
Property and equipment
$
26

 
$

 
$
1

 
$



The fair value remeasurements included in the table above were based on significant unobservable inputs (Level 3). Fixed asset fair values were derived using a DCF model to estimate the present value of net cash flows that the asset or asset group was expected to generate. The key inputs to the DCF model generally included our forecasts of net cash generated from revenue, expenses and other significant cash outflows, such as capital expenditures, as well as an appropriate discount rate. In the case of these specific assets, for which their impairment was the result of restructuring activities, no future cash flows have been assumed as the assets will cease to be used and expected sale values are nominal.

Fair Value of Financial Instruments
 
Our financial instruments, other than those presented in the disclosures above, include cash, receivables, other investments, accounts payable, other payables and short- and long-term debt. The fair values of cash, receivables, accounts payable, other payables and short-term debt approximated carrying values because of the short-term nature of these instruments. If these instruments were measured at fair value in the financial statements, they would be classified as Level 1 in the fair value hierarchy. Fair values for other investments held at cost are not readily available, but we estimate that the carrying values for these investments approximate fair value. See Note 8, Debt, for information about the fair value of our long-term debt.
Goodwill and Intangible Assets
Goodwill and Intangible Assets
Goodwill and Intangible Assets
 
The changes in the carrying values of goodwill and indefinite-lived tradenames by segment were as follows in the two months ended May 5, 2012, and April 30, 2011:
 
Goodwill
 
Indefinite-lived Tradenames
 
Domestic
 
International
 
Total
 
Domestic
 
International
 
Total
Balances at March 3, 2012
$
516

 
$
819

 
$
1,335

 
$
19

 
$
111

 
$
130

Changes in foreign currency exchange rates

 
(4
)
 
(4
)
 

 

 

Acquisitions
4

 

 
4

 

 

 

Balances at May 5, 2012
$
520

 
$
815

 
$
1,335

 
$
19

 
$
111

 
$
130

 

 
Goodwill
 
Indefinite-lived Tradenames
 
Domestic
 
International
 
Total
 
Domestic
 
International
 
Total
Balances at February 26, 2011
$
422

 
$
2,032

 
$
2,454

 
$
21

 
$
84

 
$
105

Changes in foreign currency exchange rates

 
52

 
52

 

 
3

 
3

Other(1)

 

 

 

 
28

 
28

Balances at April 30, 2011 (recast)
$
422

 
$
2,084

 
$
2,506

 
$
21

 
$
115

 
$
136

(1) 
Represents the transfer of certain definite-lived tradenames (at their net book value) to indefinite-lived tradenames following our decision to no longer phase out certain tradenames. We believe these tradenames will continue to contribute to our future cash flows indefinitely.

The following table provides the gross carrying amount of goodwill and cumulative goodwill impairment losses:
 
May 5, 2012
 
March 3, 2012
 
April 30, 2011
 
Gross
Carrying
Amount
 
Cumulative
Impairment
 
Gross
Carrying
Amount
 
Cumulative
Impairment
 
Gross
Carrying
Amount
 
Cumulative
Impairment
 
 
 
 
 
 
 
 
 
(recast)
 
(recast)
Goodwill
$
2,596

 
$
(1,261
)
 
$
2,596

 
$
(1,261
)
 
$
2,571

 
$
(65
)

 
The following table provides the gross carrying values and related accumulated amortization of definite-lived intangible assets:
 
May 5, 2012
 
March 3, 2012
 
April 30, 2011
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
 
 
 
 
 
 
 
 
(recast)
 
(recast)
Customer relationships
463

 
(239
)
 
453

 
(224
)
 
393

 
(199
)


Total amortization expense for the three months ended May 5, 2012, and April 30, 2011, was $10 and $15, respectively. The estimated future amortization expense for identifiable intangible assets is as follows:
Fiscal Year
 
Remainder of fiscal 2013
$
32

2014
41

2015
41

2016
41

2017
23

Thereafter
46



Restructuring Charges
Restructuring Charges
Restructuring Charges
 
Summary

Restructuring charges incurred in the three months ended May 5, 2012 and April 30, 2011, for our fiscal 2013, fiscal 2012 and fiscal 2011 restructuring activities were as follows:
 
Three Months Ended
 
May 5, 2012
 
April 30, 2011
 
 
 
(recast)
Continuing operations
 
 
 
Fiscal 2013 restructuring
$
133

 
$

Fiscal 2012 restructuring
6

 

Fiscal 2011 restructuring
(12
)
 
4

Total
127

 
4

Discontinued operations
 
 
 
Fiscal 2013 restructuring

 

Fiscal 2012 restructuring
3

 

Fiscal 2011 restructuring
3

 
28

Total (Note 3)
6

 
28

Total
$
133

 
$
32



Fiscal 2013 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 include closure of approximately 50 large-format Best Buy branded stores in the U.S., changes to the store and corporate operating models, and other measures intended to reduce costs associated with product life-cycle management and supply chain. The costs of implementing the changes primarily consist of facility closure costs, employee termination benefits and property and equipment (primarily store fixtures) impairments.

We incurred $133 of charges related to the fiscal 2013 restructuring in the first quarter of fiscal 2013. All charges were recorded within our Domestic segment and consisted primarily of termination benefits and property and equipment impairments triggered by our change in the intended use of those assets resulting from the strategic actions.

We expect to incur additional pre-tax restructuring charges (primarily facility closure costs) of between $165 and $215 related to our fiscal 2013 restructuring activities. The estimated facility closure costs associated with lease commitments on vacated stores will be recognized when stores are closed. The majority of the facility closure costs will be recorded in the second quarter of fiscal 2013, as we closed 39 stores. We expect to substantially complete these restructuring activities in fiscal 2013, with the exception of lease payments for vacated stores which will continue until the lease expires or we otherwise terminate the lease.

All restructuring charges related to our fiscal 2013 restructuring activities are from continuing operations and are presented in Restructuring charges in our Condensed Consolidated Statements of Earnings and Comprehensive Income. The composition of the restructuring charges we incurred in the three months ended May 5, 2012 for our fiscal 2013 restructuring activities in the Domestic segment was as follows:
 
Three Months Ended
May 5, 2012
Continuing operations
 
Property and equipment impairments
$
25

Termination benefits
107

Facility closure and other costs, net
1

Total
$
133



The following table summarizes our restructuring accrual activity during the two months ended May 5, 2012 related to termination benefits and facility closure and other costs associated with our 2013 restructuring activities:
 
Termination
Benefits
 
Facility
Closure and
Other Costs
 
Total
Balance at March 3, 2012
$

 
$

 
$

Charges
103

 
1

 
104

Cash payments

 

 

Adjustments

 

 

Balance at May 5, 2012
$
103

 
$
1

 
$
104


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, and in our International segment we closed our large-format Best Buy branded stores in the U.K. to refocus our Best Buy Europe strategy on our small-format stores. In addition, we impaired certain information technology ("IT") assets supporting the restructured activities in our International segment. We view these restructuring activities as necessary to meet our long-term financial performance objectives by refocusing our investments on areas that provide profitable growth opportunities and meet our overall return expectations. All restructuring charges directly related to the large-format Best Buy branded stores in the U.K. are reported within Loss from discontinued operations in our Condensed Consolidated Statements of Earnings and Comprehensive Income. Refer to Note 3, Discontinued Operations.

We incurred $9 of charges related to the fiscal 2012 restructuring in the first quarter of fiscal 2013. Of the total charges, $6 related to our Domestic segment and consisted primarily of other costs resulting from the modified strategy for certain mobile broadband offerings. The remaining $3 of charges related to our International segment and were directly associated with the closure of our Best Buy branded stores in the U.K.

We do not expect to incur further material restructuring charges related to our fiscal 2012 restructuring activities in either our Domestic or International segments. We expect to substantially complete these restructuring activities in the first half of fiscal 2013.

All restructuring charges from continuing operations related to our fiscal 2012 restructuring activities are presented in Restructuring charges in our Condensed Consolidated Statements of Earnings and Comprehensive Income, whereas all restructuring charges from discontinued operations related to our fiscal 2012 restructuring activities are presented in Loss from discontinued operations in our Condensed Consolidated Statements of Earnings and Comprehensive Income. The composition of the restructuring charges we incurred in the three months ended May 5, 2012, as well as the cumulative amount incurred through May 5, 2012, for our fiscal 2012 restructuring activities for both the Domestic and International segments was as follows:
 
Domestic
 
International
 
Total
 
Three Months
Ended
May 5, 2012
 
Cumulative
Amount
through
May 5, 2012
 
Three Months
Ended
May 5, 2012
 
Cumulative
Amount
through
May 5, 2012
 
Three Months
Ended
May 5, 2012
 
Cumulative
Amount
through
May 5, 2012
Continuing operations
 
 
 
 
 
 
 
 
 
 
 
Property and equipment impairments
$
1

 
$
17

 
$

 
$
15

 
$
1

 
$
32

Termination benefits

 
1

 

 

 

 
1

Facility closure and other costs, net
5

 
5

 

 

 
5

 
5

Total
6

 
23

 

 
15

 
6

 
38

 
 
 
 
 
 
 
 
 
 
 
 
Discontinued operations
 
 
 
 
 
 
 
 
 
 
 
Inventory write-downs

 

 

 
11

 

 
11

Property and equipment impairments

 

 

 
96

 

 
96

Termination benefits

 

 
1

 
17

 
1

 
17

Facility closure and other costs, net

 

 
2

 
84

 
2

 
84

Total

 

 
3

 
208

 
3

 
208

Total
$
6

 
$
23

 
$
3

 
$
223

 
$
9

 
$
246

 
The following table summarizes our restructuring accrual activity during the two months ended May 5, 2012 related to termination benefits and facility closure and other costs associated with our 2012 restructuring activities:
 
Termination
Benefits
 
Facility
Closure and
Other Costs(1)
 
Total
Balance at March 3, 2012
$
17

 
$
85

 
$
102

Charges
1

 
2

 
3

Cash payments
(14
)
 
(43
)
 
(57
)
Adjustments

 
34

 
34

Changes in foreign currency exchange rates

 
3

 
3

Balance at May 5, 2012
$
4

 
$
81

 
$
85

(1) 
Included within the facility closure and other costs adjustments is $34 from the first quarter of fiscal 2013, representing an adjustment to exclude non-cash charges or benefits, which had no impact on our Condensed Consolidated Statements of Earnings and Comprehensive Income in the first quarter of fiscal 2013.
 
Fiscal 2011 Restructuring

In the fourth quarter of fiscal 2011, we implemented a series of actions to restructure operations in our Domestic and International segments in order to improve performance and enhance customer service. The restructuring actions included plans to improve supply chain and operational efficiencies in our Domestic segment's operations, primarily focused on modifications to our distribution channels and exit from certain digital delivery services within our entertainment product category. The actions also included plans to exit the Turkey market and restructure the Best Buy branded stores in China. As part of the international restructuring, we also impaired certain IT assets supporting the restructured activities in our International segment. We view these restructuring activities as necessary to meet our long-term growth goals by investing in businesses that have the potential to meet our internal rate of return expectations. All restructuring charges directly related to Turkey and China, as well as the Domestic charges directly related to our exit from certain digital delivery services within our entertainment product category, are reported within discontinued operations in our Condensed Consolidated Statements of Earnings and Comprehensive Income. Refer to Note 3, Discontinued Operations.

We incurred $32 of charges related to the fiscal 2011 restructuring in the first quarter of fiscal 2012. Of the total charges, $5 related to our Domestic segment and consisted primarily of property and equipment impairments and facility closure costs associated with supply chain and operational improvements. Within our International segment, we incurred $27 of charges consisting primarily of termination benefits and facility closure costs related to actions taken to exit from the Turkey market and restructure our Best Buy branded stores in China.

During the first quarter of fiscal 2013, we recorded a net reduction to restructuring charges of $(9), all of which related to our Domestic segment. The net reduction was largely the result of a gain recorded on the sale of a previously impaired distribution facility and equipment during the first quarter of fiscal 2013 (previously impaired through restructuring charges), partially offset by charges associated with the exit from certain digital delivery services within our entertainment product category.

We do not expect to incur further material restructuring charges related to our fiscal 2011 restructuring activities in either our Domestic or International segments.

For continuing operations, the cumulative inventory write-downs related to our fiscal 2011 restructuring activities were presented in Restructuring charges — cost of goods sold in our Condensed Consolidated Statements of Earnings and Comprehensive Income. The remainder of the restructuring charges are presented in Restructuring charges in our Condensed Consolidated Statements of Earnings and Comprehensive Income. However, all restructuring charges from discontinued operations related to our fiscal 2011 restructuring activities are presented in Loss from discontinued operations in our Condensed Consolidated Statements of Earnings and Comprehensive Income. The composition of the restructuring charges we incurred in the three months ended May 5, 2012 and April 30, 2011, as well as the cumulative amount incurred through May 5, 2012, for our fiscal 2011 restructuring activities for both the Domestic and International segments was as follows:
 
Domestic
 
International
 
Total
 
Three Months Ended
 
Cumulative
Amount
through
May 5, 2012
 
Three Months Ended
 
Cumulative
Amount
through
May 5, 2012
 
Three Months Ended
 
Cumulative
Amount
through
May 5, 2012
 
May 5,
2012
 
April 30,
2011
 
 
May 5,
2012
 
April 30,
2011
 
 
May 5,
2012
 
April 30,
2011
 
 
 
 
(recast)
 
 
 
 
 
(recast)
 
 
 
 
 
(recast)
 
 
Continuing operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Inventory write-downs
$

 
$

 
$
28

 
$

 
$

 
$

 
$

 
$

 
$
28

Property and equipment impairments
(12
)
 
2

 
3

 

 
(1
)
 
107

 
(12
)
 
1

 
110

Termination benefits

 
1

 
13

 

 

 

 

 
1

 
13

Facility closure and other costs, net

 
2

 
4

 

 

 

 

 
2

 
4

Total
(12
)
 
5

 
48

 

 
(1
)
 
107

 
(12
)
 
4

 
155

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Discontinued operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Inventory write-downs

 

 

 

 

 
15

 

 

 
15

Property and equipment impairments

 

 
15

 

 

 
25

 

 

 
40

Termination benefits

 

 
4

 

 
14

 
19

 

 
14

 
23

Intangible asset impairments

 

 
13

 

 

 

 

 

 
13

Facility closure and other costs, net
3

 

 
3

 

 
14

 
5

 
3

 
14

 
8

Total
3

 

 
35

 

 
28

 
64

 
3

 
28

 
99

Total
$
(9
)
 
$
5

 
$
83

 
$

 
$
27

 
$
171

 
$
(9
)
 
$
32

 
$
254

 
The following tables summarize our restructuring accrual activity during the two months ended May 5, 2012, and April 30, 2011, related to termination benefits and facility closure and other costs associated with our 2011 restructuring activities:    
 
Termination
Benefits
 
Facility
Closure and
Other Costs(1)
 
Total
Balance at February 26, 2011
$
28

 
$
13

 
$
41

Charges
2

 

 
2

Cash payments
(11
)
 
(3
)
 
(14
)
Adjustments
(2
)
 
10

 
8

Balance at April 30, 2011 (recast)
$
17

 
$
20

 
$
37

 
(1) 
Included within the facility closure and other costs adjustments is $10 from the first quarter of fiscal 2011, representing an adjustment to exclude non-cash charges or benefits, which had no impact on our Consolidated Statements of Earnings and Comprehensive Income in the first quarter of fiscal 2012.
 
Termination
Benefits
 
Facility
Closure and
Other Costs
 
Total
Balance at March 3, 2012
$
3

 
$
9

 
$
12

Charges

 

 

Cash payments
(2
)
 
(3
)
 
(5
)
Adjustments

 

 

Balance at May 5, 2012
$
1

 
$
6

 
$
7

Debt
Debt
Debt
 
Short-Term Debt
 
Short-term debt consisted of the following:
 
May 5, 2012
 
March 3, 2012
 
April 30, 2011
 
 
 
 
 
(recast)
U.S. revolving credit facility – 364-Day
$

 
$

 
$

U.S. revolving credit facility – Five-Year

 

 

Europe revolving credit facility
306

 
480

 

Europe receivables financing facility

 

 
24

Old Europe revolving credit facility

 

 

Canada revolving demand facility

 

 

China revolving demand facilities

 

 
15

Total short-term debt
$
306

 
$
480

 
$
39


Long-Term Debt
 
Long-term debt consisted of the following:
 
May 5, 2012
 
March 3, 2012
 
April 30, 2011
 
 
 
 
 
(recast)
2013 Notes
$
500

 
$
500