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Discontinued Operations
 12 Months Ended
Jan. 31, 2015
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
Discontinued Operations

Discontinued operations comprise the following:

Domestic Segment

mindSHIFT – During the fourth quarter of fiscal 2014, we completed the sale of mindSHIFT to Ricoh Americas Corporation, at which time we recorded an $18 million pre-tax loss.

International Segment

Five Star – During the fourth quarter of fiscal 2015, we entered into a definitive agreement to sell our Five Star business to Yingtan City Xiangyuan Investment Limited Partnership and Zhejiang Jiayuan Real Estate Group Co. The assets and liabilities of our Five Star business are classified as held for sale in the Consolidated Balance Sheets and the results of Five Star are presented as discontinued operations in the Consolidated Statements of Earnings.

The composition of assets and liabilities held for sale as of January 31, 2015, was as follows ($ in millions):
 
January 31, 2015
Cash and cash equivalents
$
194

Merchandise inventories
264

Other current assets
226

Net property and equipment
130

Other assets
37

Total assets
$
851

 
 
Accounts payable
$
452

Other current liabilities
133

Long-term liabilities
18

Total liabilities
$
603



Best Buy Europe – During the second quarter of fiscal 2014, we completed the sale of our 50% ownership interest in Best Buy Europe to 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.

In conjunction with our agreement to sell our 50% ownership interest in Best Buy Europe, we entered into a deal-contingent foreign currency forward contract to hedge £455 million of the total £471 million of net proceeds. The contract was settled in cash following the completion of the sale on June 26, 2013, and we recognized a $2 million loss in gain (loss) from discontinued operations on our Consolidated Statements of Earnings in fiscal 2014.

The aggregate financial results of all discontinued operations for fiscal 2015, 2014 and 2013 (11-month) were as follows ($ in millions):
 
12-Month
 
11-Month
 
2015
 
2014
 
2013
Revenue
$
1,564

 
$
4,615

 
$
6,834

Restructuring charges(1)
18

 
110

 
34

Loss from discontinued operations before income tax benefit(2)
(12
)
 
(235
)
 
(187
)
Income tax benefit(3)
—

 
31

 
30

Gain on sale of discontinued operations(4)
1

 
32

 
—

Equity in loss of affiliates
—

 
—

 
(4
)
Net loss from discontinued operations including noncontrolling interests
(11
)
 
(172
)
 
(161
)
Net (earnings) loss from discontinued operations attributable to noncontrolling interests
(2
)
 
9

 
(21
)
Net loss from discontinued operations attributable to Best Buy Co., Inc. shareholders
$
(13
)
 
$
(163
)
 
$
(182
)
(1)
See Note 4, Restructuring Charges, for further discussion of the restructuring charges associated with discontinued operations.
(2)
Includes the $175 million impairment to write down the book value of our investment in Best Buy Europe to fair value in fiscal 2014 and the $208 million goodwill impairment related to our Five Star reporting unit in fiscal 2013 (11-month).
(3)
Income tax benefit for fiscal 2014 includes a $27 million benefit related to a tax allocation between continuing and discontinued operations and a $15 million benefit related to the impairment of our investment in Best Buy Europe. The fiscal 2014 effective tax rate for discontinued operations differs from the statutory tax rate primarily due to the previously mentioned tax allocation, sale of mindSHIFT, restructuring charges and the impairment of our investment in Best Buy Europe. The sale of mindSHIFT, restructuring charges and impairment generally included no related tax benefit. The deferred tax assets related to the sale of mindSHIFT and restructuring charges generally resulted in an increase in the valuation allowance in an equal amount, of which the investment impairment is not tax deductible.
(4)
Gain in fiscal 2014 is primarily comprised of the following: $28 million gain (with no tax impact) from sale of Best Buy Europe fixed-line business in Switzerland in the first quarter; $24 million gain (with no tax impact) from the sale of Best Buy Europe in the second quarter; and loss of $18 million from sale of mindSHIFT in the fourth quarter.