Discontinued Operations

9 Months Ended

Nov. 01, 2014

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

On June 26, 2013, we completed the sale of our 50% ownership interest in Best Buy Europe to Carphone Warehouse Group plc ("CPW") in return for the following consideration upon closing: net cash of £341 million ($526 million); £80 million ($123 million) of ordinary shares of CPW; £25 million ($39 million), plus 2.5% interest, to be paid by CPW on June 26, 2014; and £25 million ($39 million), plus 2.5% interest, to be paid by CPW on June 26, 2015. We subsequently sold the ordinary shares of CPW for $123 million on July 3, 2013, and we received the first such deferred cash payment on June 26, 2014.

Discontinued operations are comprised of mindSHIFT Technologies, Inc. ("mindSHIFT") operations within our Domestic segment, which we sold in the fourth quarter of fiscal 2014, and Best Buy Europe operations within our International segment, as described above. The presentation of discontinued operations has been retrospectively applied to all prior periods presented.

The aggregate financial results of all discontinued operations for the three and nine months ended November 1, 2014 and November 2, 2013, respectively, were as follows ($ in millions):

	Three Months Ended				Nine Months Ended
	November 1, 2014		November 2, 2013		November 1, 2014			November 2, 2013
Revenue	$	—	$	35	$	—		$	2,785
Restructuring charges(1)	—		—		—			100
Loss from discontinued operations before income tax benefit	—		—		—			(235		)
Income tax benefit(2)	—		10		—			34
Gain on sale of discontinued operations	—		—		2			52
Income tax expense on sale	—		—		(1		)	—
Net gain (loss) from discontinued operations, including noncontrolling interests	—		10		1			(149		)
Net loss from discontinued operations attributable to noncontrolling interests	—		1		—			11
Net gain (loss) from discontinued operations attributable to Best Buy Co., Inc. shareholders	$	—	$	11	$	1		$	(138	)

(1) See Note 5, Restructuring Charges, for further discussion of the restructuring charges associated with discontinued operations.

(2) Income tax benefit for the three months ended November 2, 2013 includes a $16 million benefit related to the impairment of our investment in Best Buy Europe, partially offset by $6 million of expense related to a tax allocation between continuing and discontinued operations. The fiscal 2014 effective tax rate for discontinued operations differs from the statutory tax rate primarily due to the tax allocation, restructuring charges and the impairment of our investment in Best Buy Europe. The restructuring charges and impairment generally included minimal related tax benefit. The deferred tax assets related to the restructuring charges generally resulted in an increase in the valuation allowance in an equal amount, while the investment impairment is generally not tax deductible.