Document Information Statement - shares |
9 Months Ended | |
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Nov. 03, 2018 |
Dec. 05, 2018 |
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Document Information [Abstract] | ||
Entity Common Stock, Shares Outstanding | 269,101,569 | |
Entity Registrant Name | BEST BUY CO INC | |
Entity Central Index Key | 0000764478 | |
Document Type | 10-Q | |
Document Period End Date | Nov. 03, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --02-02 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - $ / shares |
Nov. 03, 2018 |
Feb. 03, 2018 |
Oct. 28, 2017 |
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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 | 0 | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 | 0 |
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 | 272,000,000 | 283,000,000 | 296,000,000 |
Common stock, outstanding shares | 272,000,000 | 283,000,000 | 296,000,000 |
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 9 Months Ended | ||
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Nov. 03, 2018 |
Oct. 28, 2017 |
Nov. 03, 2018 |
Oct. 28, 2017 |
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Revenue | $ 9,590 | $ 9,320 | $ 28,078 | $ 26,788 |
Cost of goods sold | 7,266 | 7,040 | 21,400 | 20,333 |
Gross profit | 2,324 | 2,280 | 6,678 | 6,455 |
Selling, general and administrative expenses | 2,002 | 1,932 | 5,709 | 5,484 |
Restructuring charges | 0 | (2) | 47 | 0 |
Operating income | 322 | 350 | 922 | 971 |
Other income (expense): | ||||
Gain on sale of investments | 12 | 0 | 12 | 0 |
Investment income and other | 11 | 12 | 35 | 30 |
Interest expense | (15) | (20) | (53) | (57) |
Earnings from continuing operations before income tax expense | 330 | 342 | 916 | 944 |
Income tax expense | 53 | 104 | 187 | 309 |
Net earnings from continuing operations | 277 | 238 | 729 | 635 |
Gain from discontinued operations (Note 1), net of tax | 0 | 1 | 0 | 1 |
Net earnings | $ 277 | $ 239 | $ 729 | $ 636 |
Basic earnings per share | $ 1.01 | $ 0.80 | $ 2.62 | $ 2.09 |
Diluted earnings per share | $ 0.99 | $ 0.78 | $ 2.57 | $ 2.05 |
Weighted-average common shares outstanding (in millions) | ||||
Basic | 274.3 | 299.1 | 278.6 | 304.1 |
Diluted | 279.3 | 305.4 | 283.8 | 310.6 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
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Nov. 03, 2018 |
Oct. 28, 2017 |
Nov. 03, 2018 |
Oct. 28, 2017 |
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Net earnings | $ 277 | $ 239 | $ 729 | $ 636 |
Foreign currency translation adjustments | 4 | (17) | (14) | 25 |
Comprehensive income | $ 281 | $ 222 | $ 715 | $ 661 |
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (PARENTHETICAL) - $ / shares |
3 Months Ended | 9 Months Ended | ||
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Nov. 03, 2018 |
Oct. 28, 2017 |
Nov. 03, 2018 |
Oct. 28, 2017 |
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Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared per common share | $ 0.45 | $ 0.34 | $ 1.35 | $ 1.02 |
Basis of Presentation (Notes) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 generated a large proportion of our revenue and earnings in the fiscal fourth quarter, which includes the majority of the holiday shopping season in the U.S., Canada and Mexico. 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 included 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 February 3, 2018. The first nine months of fiscal 2019 and fiscal 2018 included 39 weeks. In order to align our fiscal reporting periods and comply with statutory filing requirements, we consolidate the financial results of our Mexico operations on a one-month lag. Our policy is to accelerate recording the effect of events occurring in the lag period that significantly affect our condensed consolidated financial statements. No such events were identified for the reported periods. In preparing the accompanying condensed consolidated financial statements, we evaluated the period from November 4, 2018, through the date the financial statements were issued for material subsequent events requiring recognition or disclosure. No such events were identified for the reported periods. Unadopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases, which will require lessees to recognize most leases on their balance sheets related to the rights and obligations created by those leases, and will expand disclosure requirements. The new guidance was issued to increase transparency and comparability among companies. In July 2018, the FASB approved an amendment to the new guidance that allows companies the option of using the effective date of the new standard as the initial application (at the beginning of the period in which is it adopted, rather than at the beginning of the earliest comparative period) and to recognize the effects of applying the new ASU as a cumulative effect adjustment to the opening balance sheet or retained earnings. Based on the effective dates, we expect to adopt the new guidance in the first quarter of fiscal 2020 using the new transition election to not restate comparative periods and are in process of implementing required upgrades to our existing lease systems. While we expect adoption to lead to a material increase in the assets and liabilities recorded on our consolidated balance sheet and an increase to our footnote disclosures related to leases, we are still evaluating the impact on our consolidated statement of earnings. We also expect that adoption of the new standard will require changes to our internal controls over financial reporting. Adopted Accounting Pronouncements In the first quarter of fiscal 2019, we prospectively adopted the following ASUs, all of which had an immaterial impact on our results of operations, cash flows and financial position.
In the first quarter of fiscal 2019, we also adopted ASU 2014-09, Revenue from Contracts with Customers. The new guidance establishes a single comprehensive model for entities to use in accounting for revenue and supersedes most revenue recognition guidance. It introduces a five-step process for revenue recognition that focuses on transfer of control, as opposed to transfer of risk and rewards under previous guidance. We elected the modified retrospective method of adoption, which we applied to contracts not completed at the date of adoption. Under this method, we recorded an increase to opening retained earnings of $73 million, net of tax, due to the cumulative impact of these changes. The impact was primarily related to the timing of revenue recognition related to our gift cards, the sale of certain software licenses and our loyalty programs. We did not make any adjustments to prior period financial statements. We expect the impact of adoption to be immaterial to our revenue, net earnings and cash flows on an ongoing basis. As part of the adoption, we also modified certain control procedures and processes, none of which had a material effect on our internal controls over financial reporting. The cumulative effect of the changes made to our Condensed Consolidated Balance Sheets on February 4, 2018, for the adoption of this standard was as follows ($ in millions):
The following tables reflect the impact of adopting this standard on our Condensed Consolidated Balance Sheets as of November 3, 2018, and our Condensed Consolidated Statements of Earnings for the three and nine months ended November 3, 2018 ($ in millions, except per share amounts):
SEC Disclosure Update In the third quarter of fiscal 2019, the U.S. Securities and Exchange Commission ("SEC") adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification, amending certain disclosure requirements that have become redundant, duplicative, overlapping, outdated or superseded. Other than the amendment's expanded disclosure requirement for interim financial statements to include both current and comparative quarter- and year-to-date reconciliations of changes in shareholders' equity, it did not have a material impact on our interim disclosures or financial statements, nor do we expect it to have a material impact on our annual disclosures or financial statements. Total Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets to the total shown within the Condensed Consolidated Statements of Cash Flows as of November 3, 2018, February 3, 2018, and October 28, 2017 ($ in millions):
Amounts included in restricted cash are pledged as collateral or restricted to use for general liability insurance and workers' compensation insurance. Discontinued Operations Discontinued operations reflects activity within our International segment. Gain from discontinued operations for the three and nine months ended October 28, 2017, was $1 million, primarily related to the proceeds attributed to a non-compete clause from the sale of Best Buy Europe to Carphone Warehouse plc. |
Acquisition Acquisition (Notes) |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination Disclosure [Text Block] | Acquisition GreatCall, Inc. On October 1, 2018, we acquired all of the outstanding shares of GreatCall, Inc. ("GreatCall") for net cash consideration of $792 million. GreatCall, a leading connected health services provider for aging consumers, offers easy-to-use mobile products and connected devices, tailored for seniors. These products are combined with a range of services, including a simple, one-touch connection to U.S.-based, specially-trained agents who can connect the user to family caregivers, provide concierge services and dispatch emergency personnel. The acquisition of GreatCall is aligned with our strategy to address health and wellness with a focus on aging consumers and how technology can help them live a more independent life. The acquisition was accounted for using the acquisition method of accounting for business combinations. Accordingly, the cost was allocated to the underlying net assets based on their respective fair values. The excess of the purchase price over the estimated fair value of the net assets acquired was recorded as goodwill. All of the goodwill was assigned to our Domestic reportable segment and is not expected to be deductible for income tax purposes. We recorded $13 million of transaction costs related to the acquisition within Selling, general and administrative ("SG&A") expenses on our Condensed Consolidated Statements of Earnings for the three months ended November 3, 2018. Results of operations from the date of acquisition were included within our Domestic segment and our Services revenue category. The acquisition of GreatCall was not material to the results of our operations. The purchase price allocation for the assets acquired and liabilities assumed is substantially complete, but may be subject to immaterial change as we complete our valuation analysis in the fourth quarter of fiscal 2019. The fair value of assets acquired and liabilities assumed as of the acquisition date on October 1, 2018, was as follows ($ in millions):
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Revenue Recognition Revenue Recognition (Notes) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Text Block] | Revenue Recognition We generate revenue primarily from the sale of products and services, both as a principal and as an agent. Revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the transaction price consideration that we expect to receive in exchange for those goods or services. Control refers to the ability of the customer to direct the use of, and obtain substantially all of, the remaining benefits from the goods or services. Our transaction price consideration is fixed, unless otherwise disclosed below as variable consideration. We generate all of our operating revenue from contracts with customers. Our revenue excludes sales and usage-based taxes collected. Revenue from product sales and services is reported net of sales refunds, which includes an estimate of future returns and contract cancellations based on historical refund rates, with a corresponding reduction to cost of sales. There is inherent judgment in estimating future refunds as they are susceptible to factors outside of our influence. However, we have significant experience in estimating the amount of refunds, based primarily on historical data. Our refund liability for sales returns was $69 million at November 3, 2018, which is included in Accrued liabilities on our Condensed Consolidated Balance Sheets and represents the expected value of the aggregate refunds that will be due to our customers. We also have a corresponding asset included in Other current assets on our Condensed Consolidated Balance Sheets that represents the inventory we expect to be returned, valued at the lower of cost or net realizable value. As of November 3, 2018, this amount was $48 million. For revenue transactions that involve more than one performance obligation, we defer the revenue associated with any unsatisfied performance obligation until the obligation is satisfied, i.e., when control of a product is transferred to the customer or a service is completed. For such contracts, we allocate revenue and any discounts to each performance obligation based on its relative standalone selling price. We determine standalone selling prices based on the prices charged to customers or, when directly observable selling prices are not available, we generally use an expected cost-plus margin approach. Our contract liabilities primarily relate to product merchandise not yet delivered to customers; unredeemed gift cards; services not yet completed; services technical support contracts, where performance is satisfied over the duration of the contract; and options that provide a material right to customers, such as our customer loyalty programs. Most of our contract liabilities have a duration of one year or less. For an insignificant portion of our technical support service contracts, terms of up to three years apply. We do not have any material contract assets. The following table provides information about receivables and contract liabilities from our contracts with customers, which reflects the aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied as of November 3, 2018, and February 4, 2018 ($ in millions):
We establish allowances for uncollectible receivables based on historical collection trends and write-off history. The following table summarizes our allowance for doubtful accounts activity related to contracts with customers during the nine months ended November 3, 2018 ($ in millions):
The following table summarizes significant changes in our contract liability balances during the nine months ended November 3, 2018 ($ in millions):
The following table includes estimated revenue from our contract liability balances expected to be recognized in future periods if performance of the contract is expected to have a duration of more than one year ($ in millions):
We apply a practical expedient to expense direct costs of obtaining a contract when incurred because the amortization period would have been one year or less. See Note 12, Segments, for a disaggregation of revenue by reportable segment and product category, which represents how our chief operating decision maker reviews information internally to evaluate our financial performance and to make resource allocation and other decisions for the enterprise. Product Revenue Product revenue is recognized when control passes, which generally occurs at a point in time when the customer completes a transaction in the store and receives the merchandise. Our payment terms are typically at the point of sale. In the case of items paid for in the store, but subsequently delivered to the customer, control passes and revenue is recognized once delivery has been completed, as we have transferred possession to the customer. For transactions initiated online, customers choose whether to have it delivered to them (using third-party parcel delivery companies) or to collect their merchandise from one of our stores (“in-store pick up”). For items delivered directly to the customer, control passes and revenue is recognized when delivery has been completed to the customer, as title has passed and we have transferred possession to the customer. For in-store pick up, control passes and revenue is recognized once the customer has taken possession of the merchandise. Any fees charged to customers for delivery are a component of the transaction price and are recognized when delivery has been completed. We use delivery information at an individual contract level to determine when to recognize revenue for products and any related delivery fee revenue. Generally, we are the principal to the contract as we have control of the physical products prior to transfer to the customer. Accordingly, revenue is recognized on a gross basis. For certain sales, primarily activation-based software licenses and third-party stored-value cards, we are the sales agent providing access to the content and recognize fixed commission revenue net of amounts due to third parties who fulfill the performance obligation. For these sales, control passes upon providing access of the content to the customer. Warranty obligations associated with the sale of our exclusive brands products are assurance-type warranties that are a guarantee of the product’s intended functionality and, therefore, do not represent a distinct performance obligation within the context of the contract. Services - When we are the principal We recognize service revenue for installation, set-up, software troubleshooting, product repair, consultation and educational classes once the service is completed, as this is when the customer has the ability to direct the use of and obtain the benefits of the service or serviced product. Payment terms are typically at the point of sale, but may also occur upon completion of the service. Our service contracts are primarily with retail customers, merchandise vendors (for factory warranty repairs) and third-party underwriters who sell extended warranty protection plans. For technical support membership contracts, we are responsible for fulfilling the support services to customers. These contracts have terms ranging from one month to three years and typically contain multiple performance obligations. Payment for the membership contracts is due at the start of the contract period. We have determined that our contracts do not include a significant financing component. The primary purpose of our payment terms is to provide customers with a simplified method of purchasing our services, not to provide customers with financing. We recognize revenue over time on a service consumption basis, an input method of measuring progress over the related contract term. This method is based on historical utilization patterns as this depicts when customers use the services and discounts provided and, accordingly, when delivery of the performance obligation occurs. There is judgment in (1) determining the level at which we apply a portfolio approach to these contracts, and (2) measuring the relative standalone selling price for performance obligations within these contracts to the extent that they are only bundled and sold to customers with other performance obligations. When direct observable evidence of the standalone selling price is not available, a cost-plus margin approach is generally used. Additionally, there is judgment in (3) assessing the pattern of delivery across multiple portfolios of customers, including measuring future progress based on historical consumption patterns. When sufficient history of consumption is unavailable, we generally recognize revenue ratably over the life of the contract. Services - When we are the agent We sell various hardware protection plans to customers that provide extended warranty coverage on their device purchases. Such plans have terms ranging from one month to five years. Payment is due at the point of sale. Third-party underwriters assume the risk associated with the coverage and are primarily responsible for fulfillment. We record the fixed net commissions (the amount charged to the customer less the premiums remitted to the underwriter) as revenue at a point in time when the corresponding product revenue is recognized. In addition, we are eligible to receive profit-sharing payments, a form of variable consideration, which are dependent upon the profitable performance of the portfolio. We do not share in any losses of the portfolio. We record any such profit share as revenue once the uncertainty associated with the portfolio period, which is calendar-year based, is no longer constrained using the expected value method. This typically occurs when claims experience for the annual period is known in our fiscal fourth quarter, with payment of the profit share occurring in the subsequent fiscal year. We earn fixed commissions from mobile network carriers to sell service contracts on their platforms. Revenue is recognized when control passes at a point in time upon sale of the contract and activation of the customer on the provider’s platform. The time between when we bill the content provider and when we receive payment is generally within 30 to 60 days, which is after control has passed. Activation commissions are subject to repayment to the carrier primarily due to customer cancellation for specified time periods after the sale. Commission revenue from mobile network carriers is reported net of the expected cancellations, which we estimate based on historical cancellation rates. Credit Card Revenue We offer promotional financing and credit cards issued by third-party banks that manage and directly extend credit to our customers. We provide a license to our brand and marketing services, and we facilitate credit applications in our stores and online. The banks are the sole owners of the accounts receivable generated under the program and, accordingly, we do not hold any customer receivables related to these programs and act as an agent in the financing transactions with customers. We are eligible to receive a profit share from our banking partner based on the annual performance of the program, and we receive quarterly payments based on forecasts of full-year performance. This is a form of variable consideration. We record such profit share as revenue over time using the most likely amount method, which reflects the amount earned each quarter when it is determined that the likelihood of a significant revenue reversal is not probable, which is typically quarterly. Profit-share payments occur quarterly, shortly after the end of each program quarter. Best Buy Gift Cards We sell Best Buy gift cards to our customers in our retail stores, online and through select third parties. Our gift cards do not have an expiration date. We recognize revenue from gift cards when the card is redeemed by the customer. We also recognize revenue for the portion of gift card values that is not expected to be redeemed ("breakage"). We estimate breakage based on historical patterns and other factors, such as laws and regulations applicable to each jurisdiction. We recognize gift card breakage based on the expected pattern of gift card redemptions, based on analysis of historic trends. Typically, over 90% of gift card values are redeemed within one year of issuance. There is judgment in assessing (1) the level at which we group gift cards for analysis of breakage rates, (2) redemption patterns, and (3) the ultimate value of gift cards that we do not expect to be redeemed. Sales Incentives We frequently offer sales incentives that entitle our customers to receive a gift card at the time of purchase or an instant savings coupon that can be redeemed towards a future purchase. For sales incentives issued to customers that are only earned in conjunction with the purchase of products or services, the sales incentives represent an option that is a material right and, accordingly, is a performance obligation in the contract. The relative standalone selling price of these sales incentives is deferred as a contract liability, based on the cards or coupons that are projected to be redeemed. We recognize revenue for this performance obligation when it is redeemed by the customer or when it is not expected to be redeemed. There is judgment in determining (1) the level at which we group incentives based on similar redemption patterns, (2) redemption patterns, and (3) the ultimate number of incentives that we do not expect to be redeemed. We also issue coupons that are not earned in conjunction with a purchase of a product or service, typically as part of targeted marketing activities. This is not a performance obligation, but is recognized as a reduction of the transaction price when redeemed by the customer. Customer Loyalty Programs We have customer loyalty programs which allow members to earn points for each qualifying purchase. Points earned enable members to receive a certificate that may be redeemed on future purchases at our Best Buy branded stores. Depending on the customer's membership level within our loyalty program, certificate expirations typically range from 2 to 12 months from the date of issuance. Our loyalty programs represent customer options that provide a material right and, accordingly, are performance obligations for each applicable contract. The relative standalone selling price of points earned by our loyalty program members is deferred and included in Accrued liabilities on our Condensed Consolidated Balance Sheets based on the percentage of points that are projected to be redeemed. We recognize revenue for this performance obligation over time when a certificate is estimated to be redeemed by the customer. There is judgment in measuring the standalone selling price of this performance obligation related to our estimate of the amount of and subsequent timing of redemptions of certificates (“certificate breakage”). We determine our certificate breakage rate based upon an analysis of historic trends. There is judgment in assessing (1) the level at which we group certificates for analysis of breakage rates, (2) redemption patterns, and (3) the ultimate value of certificates that we do not expect to be redeemed. |
Fair Value Measurements (Notes) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
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 where 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 table sets forth our financial assets and liabilities that were accounted for at fair value on a recurring basis at November 3, 2018, February 3, 2018, and October 28, 2017, by level within the fair value hierarchy as determined by the valuation techniques we used to determine the fair value ($ in millions):
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 were measured at fair value as they trade in an active market using quoted market prices and, therefore, were classified as Level 1. 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. Time deposits. Our time deposits are balances held with banking institutions that cannot be withdrawn for specified terms without a penalty. Time deposits are held at face value plus accrued interest, which approximates fair value, and are 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. Interest rate swap derivative instruments. Our interest rate swap contracts were measured at fair value using readily observable inputs, such as the LIBOR interest rate. Our interest rate swap 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. Marketable securities that fund deferred compensation. The assets that fund our deferred compensation consist of investments in corporate-owned life insurance, the value of which is based on select mutual fund performance. These investments were classified as Level 1 as the shares of these mutual funds trade with sufficient frequency and volume to enable us to obtain pricing information on an ongoing basis. 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 SG&A expenses or Restructuring charges on our Condensed Consolidated Statements of Earnings for non-restructuring and restructuring charges, respectively. The following table summarizes the fair value remeasurements of property and equipment impairments recorded during the three and nine months ended November 3, 2018, and October 28, 2017 ($ in millions):
All of 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 discounted cash flow ("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. 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 long-term debt. The fair values of cash, receivables, accounts payable and other payables 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 7, Debt, for information about the fair value of our long-term debt. |
Goodwill and Intangible Assets Goodwill and Intangible Assets (Notes) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | Goodwill and Intangible Assets Goodwill and Indefinite-Lived Intangible Assets The following table provides the carrying values of goodwill and indefinite-lived intangible assets, which includes our Pacific Sales tradename, for the Domestic segment as of November 3, 2018, February 3, 2018, and October 28, 2017 ($ in millions):
The following table provides the gross carrying amount of goodwill and cumulative goodwill impairment as of November 3, 2018, February 3, 2018, and October 28, 2017 ($ in millions):
Definite-Lived Intangible Assets We have definite-lived intangible assets related to GreatCall included within our Domestic segment, which is recorded within Other assets on our Condensed Consolidated Balance Sheets. The following table provides the gross carrying amount and related accumulated amortization of definite-lived intangible assets as of November 3, 2018 ($ in millions). We had no definite-lived intangible assets as of February 3, 2018, or October 28, 2017.
We recorded $6 million of aggregate amortization expense related to definite-lived intangible assets during the three and nine months ended November 3, 2018, and $0 million during the three and nine months ended October 28, 2017. The following table provides the amortization expense expected to be recognized in future periods ($ in millions):
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Restructuring (Notes) |
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Restructuring Charges | Restructuring Charges Restructuring charges incurred in the three and nine months ended November 3, 2018, and October 28, 2017, were as follows ($ in millions):
Best Buy Mobile 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., of which all remaining stores were closed during the second quarter of fiscal 2019. 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 on-line channel, which are more economically compelling today. All restructuring charges related to this plan are from continuing operations and are presented in Restructuring charges on our Condensed Consolidated Statements of Earnings. The composition of the restructuring charges we incurred for Best Buy Mobile during the three and nine months ended November 3, 2018, as well as the cumulative amount incurred through November 3, 2018, were as follows ($ in millions):
The following table summarizes our restructuring accrual activity during the nine months ended November 3, 2018, related to termination benefits and facility closure and other costs associated with Best Buy Mobile ($ in millions):
Other We have remaining vacant space liabilities at November 3, 2018, of $9 million related to our Canadian brand consolidation restructuring program, $9 million related to our Renew Blue restructuring program and $2 million related to our U.S. large-format store closures in fiscal 2013. We may continue to incur immaterial adjustments to these liabilities for changes in sublease assumptions or potential lease buyouts. In addition, lease payments for vacated stores will continue until leases expire or are terminated. |
Debt (Notes) |
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Debt | Debt Short-Term Debt U.S. Revolving Credit Facility On April 17, 2018, we entered into a $1.25 billion five-year senior unsecured revolving credit facility agreement (the "Five-Year Facility Agreement") with a syndicate of banks. The Five-Year Facility Agreement replaced the previous $1.25 billion senior unsecured revolving credit facility (the "Previous Facility") with a syndicate of banks, which was originally scheduled to expire in June 2021, but was terminated on April 17, 2018. The Five-Year Facility Agreement permits borrowings of up to $1.25 billion and expires in April 2023, with no borrowings outstanding as of November 3, 2018. There were no borrowings outstanding under the Previous Facility as of February 3, 2018, or October 28, 2017. The interest rate under the Five-Year Facility Agreement is variable and is determined at our option as: (i) the sum of (a) the greatest of (1) JPMorgan Chase Bank, N.A.'s prime rate, (2) the greater of the federal funds rate and the overnight bank funding rate plus, in each case, 0.5%, and (3) the one-month London Interbank Offered Rate (“LIBOR”), subject to certain adjustments plus 1%, and (b) a variable margin rate (the “ABR Margin”); or (ii) the LIBOR plus a variable margin rate (the “LIBOR Margin”). In addition, a facility fee is assessed on the commitment amount. The ABR Margin, LIBOR Margin and the facility fee are based upon our current senior unsecured debt rating. Under the Five-Year Facility Agreement, the ABR Margin ranges from 0.00% to 0.30%, the LIBOR Margin ranges from 0.80% to 1.30%, and the facility fee ranges from 0.08% to 0.20%. The Five-Year Facility Agreement is guaranteed by certain of our subsidiaries and contains customary affirmative and negative covenants. Among other things, these covenants restrict our and certain of our subsidiaries' abilities to incur liens on certain assets; make material changes in corporate structure or the nature of our business; dispose of material assets; engage in certain mergers, consolidations and other fundamental changes; or engage in certain transactions with affiliates. The Five-Year Facility Agreement also contains covenants that require us to maintain a maximum cash flow leverage ratio and a minimum interest coverage ratio. The Five-Year Facility Agreement contains default provisions including, but not limited to, failure to pay interest or principal when due and failure to comply with covenants. At November 3, 2018, we were in compliance with all such financial covenants. Long-Term Debt Long-term debt consisted of the following at November 3, 2018, February 3, 2018, and October 28, 2017 ($ in millions):
The fair value of total long-term debt, excluding debt discounts and issuance costs and financing and capital lease obligations, approximated $1,133 million, $1,199 million and $1,219 million at November 3, 2018, February 3, 2018, and October 28, 2017, respectively, based primarily on the market prices quoted from external sources, compared with carrying values of $1,128 million, $1,145 million and $1,150 million, respectively. If long-term debt was measured at fair value in the financial statements, it would be classified primarily as Level 2 in the fair value hierarchy. 2018 Notes Our $500 million principal amount of notes due August 1, 2018 (the "2018 Notes"), were repaid on August 1, 2018, using existing cash resources and were classified within Current portion of long-term debt on our Condensed Consolidated Balance Sheets as of February 3, 2018, and October 28, 2017. 2028 Notes On September 27, 2018, we issued $500 million principal amount of notes due October 1, 2028 (the “2028 Notes”). The 2028 Notes bear interest at a fixed rate of 4.45% per year, payable semi-annually on April 1 and October 1 of each year, beginning on April 1, 2019. Net proceeds from the issuance were $495 million after underwriting and issue discounts totaling $5 million. We may redeem some or all of the 2028 Notes at any time at a redemption price equal to the greater of (i) 100% of the principal amount, and (ii) the sum of the present values of each remaining scheduled payment of principal and interest discounted to the redemption date on a semiannual basis, plus accrued and unpaid interest on the principal amount to the redemption date as described in the indenture (including the supplemental indenture) relating to the 2028 Notes. Furthermore, if a change of control triggering event occurs, we will be required to offer to purchase the remaining unredeemed 2028 Notes at a price equal to 101% of their principal amount, plus accrued and unpaid interest to the purchase date. The 2028 Notes are unsecured and unsubordinated obligations and rank equally with all of our other unsecured and unsubordinated debt. The 2028 Notes contain covenants that, among other things, limit our ability to incur debt secured by liens or to enter into sale and lease-back transactions. At November 3, 2018, we were in compliance with all such financial covenants. See Note 5, Debt, in the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended February 3, 2018, for additional information regarding the terms of our other debt facilities, debt instruments and other obligations. |
Derivative Instruments (Notes) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | Derivative Instruments We manage our economic and transaction exposure to certain risks through the use of foreign currency derivative instruments and interest rate swaps. Our objective in holding derivatives is to reduce the volatility of net earnings, cash flows and net asset value associated with changes in foreign currency exchange rates and interest rates. We do not hold derivative instruments for trading or speculative purposes. We have no derivatives that have credit risk-related contingent features, and we mitigate our credit risk by engaging with financial institutions with investment-grade credit ratings as our counterparties. We record all derivative instruments on our Condensed Consolidated Balance Sheets at fair value and evaluate hedge effectiveness prospectively or retrospectively when electing to apply hedge accounting. We formally document all hedging relations at inception for derivative hedges and the underlying hedged items, as well as the risk management objectives and strategies for undertaking the hedge transaction. In addition, we have derivatives which are not designated as hedging instruments. Net Investment Hedges We use foreign exchange forward contracts to hedge against the effect of Canadian dollar exchange rate fluctuations on a portion of our net investment in our Canadian operations. The contracts have terms of up to 12 months. For a net investment hedge, we recognize changes in the fair value of the derivative as a component of foreign currency translation within other comprehensive income to offset a portion of the change in translated value of the net investment being hedged, until the investment is sold or liquidated. We limit recognition in net earnings of amounts previously recorded in other comprehensive income to circumstances such as complete or substantially complete liquidation of the net investment in the hedged foreign operation. We report the gains and losses, if any, related to the amount excluded from the assessment of hedge effectiveness in net earnings. Interest Rate Swaps We utilized "receive fixed-rate, pay variable-rate" interest rate swaps to mitigate the effect of interest rate fluctuations on our 2018 Notes, prior to their maturity, and currently have swaps outstanding on our 2021 Notes and 2028 Notes. Our interest rate swap contracts are considered perfect hedges because the critical terms and notional amounts match those of our fixed-rate debt being hedged and are, therefore, accounted for as fair value hedges using the shortcut method. Under the shortcut method, we recognize the change in the fair value of the derivatives with an offsetting change to the carrying value of the debt. Accordingly, there is no impact on our Condensed Consolidated Statements of Earnings from the fair value of the derivatives. Derivatives Not Designated as Hedging Instruments We use foreign currency forward contracts to manage the impact of fluctuations in foreign currency exchange rates relative to recognized receivable and payable balances denominated in non-functional currencies. The contracts generally have terms of up to 12 months. These derivative instruments are not designated in hedging relationships and, therefore, we record gains and losses on these contracts directly to net earnings. Summary of Derivative Balances The following tables present the gross fair values of our outstanding derivative instruments and the corresponding classification at November 3, 2018, February 3, 2018, and October 28, 2017 ($ in millions):
The following table presents the effects of derivative instruments on other comprehensive income ("OCI") for the three and nine months ended November 3, 2018, and October 28, 2017 ($ in millions):
The following table presents the effects of derivatives not designated as hedging instruments on our Condensed Consolidated Statements of Earnings for the three and nine months ended November 3, 2018, and October 28, 2017 ($ in millions):
The following table presents the effects of interest rate derivatives and adjustments to the carrying value of long-term debt on our Condensed Consolidated Statements of Earnings for the three and nine months ended November 3, 2018, and October 28, 2017 ($ in millions):
The following table presents the notional amounts of our derivative instruments at November 3, 2018, February 3, 2018, and October 28, 2017 ($ in millions):
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Earnings Per Share (Notes) |
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Earnings per Share | Earnings per Share We compute our basic earnings per share based on the weighted-average number of common shares outstanding and our diluted earnings per share based on the weighted-average number of common shares outstanding adjusted by the number of additional shares that would have been outstanding had potentially dilutive common shares been issued. Potentially dilutive securities include stock options, nonvested share awards and shares issuable under our employee stock purchase plan. Nonvested market-based share awards and nonvested performance-based share awards are included in the average diluted shares outstanding for each period, if established market or performance criteria have been met at the end of the respective periods. The following table presents a reconciliation of the numerators and denominators of basic and diluted earnings per share from continuing operations for the three and nine months ended November 3, 2018, and October 28, 2017 ($ and shares in millions, except per share amounts):
Beginning with our annual broad grant of restricted stock and restricted stock units in March 2018, we attach dividend equivalents to our restricted stock and restricted stock units equal to dividends payable on the same number of shares of Best Buy common stock during the applicable period. Dividend equivalents, settled in additional shares of Best Buy common stock, accrue on restricted stock and restricted stock unit awards during the vesting period. No dividend equivalents are paid on any restricted stock or restricted stock units that are forfeited prior to the vesting date. |
Comprehensive Income (Notes) |
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Comprehensive Income | Comprehensive Income Changes in accumulated other comprehensive income, net of tax, were as follows for the three and nine months ended November 3, 2018, and October 28, 2017 ($ in millions):
The gains and losses on our net investment hedges, which are included in foreign currency translation adjustments, were not material for the periods presented. Foreign currency translation adjustments do not include a provision for income tax expense when earnings from foreign operations are considered to be indefinitely reinvested outside the U.S. At this time, we are still evaluating the earnings that are indefinitely reinvested outside the U.S. Refer to Note 10, Income Taxes, of the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended February 3, 2018, for additional information. |
Repurchase of Common Stock (Notes) |
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Repurchase of Common Stock | Repurchase of Common Stock In February 2017, our Board of Directors ("Board") authorized a $5.0 billion share repurchase program that superseded the previous $5.0 billion authorization from 2011. There is no expiration date governing the period over which we can repurchase shares under the February 2017 authorization. On March 1, 2018, we announced our intent to repurchase $1.5 billion of shares in fiscal 2019, which reflects an updated two-year plan of $3.5 billion compared to the original $3.0 billion two-year plan announced on March 1, 2017. The following table presents information regarding the shares we repurchased during the three and nine months ended November 3, 2018, and October 28, 2017 ($ and shares in millions, except per share amounts):
At November 3, 2018, $1.9 billion of the $5.0 billion of share repurchases authorized by our Board in February 2017 was available for future share repurchases. Between the end of the third quarter of fiscal 2019 on November 3, 2018, and December 5, 2018, we repurchased an incremental 2.5 million shares of our common stock at a cost of $168 million. |
Segments (Notes) |
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Segments | Segments Our chief operating decision maker ("CODM") is our Chief Executive Officer. Our business is organized into two reportable segments: Domestic (which is comprised of all states, districts and territories of the U.S., including GreatCall) and International (which is comprised of all operations in Canada and Mexico). Our CODM has ultimate responsibility for enterprise decisions. Our CODM determines, in particular, resource allocation for, and monitors the performance of, the consolidated enterprise, the Domestic segment and the International segment. The Domestic segment managers and International segment managers have responsibility for operating decisions, allocating resources and assessing performance within their respective segments. Our CODM relies on internal management reporting that analyzes enterprise results to the net earnings level and segment results to the operating income level. We aggregate our Canada and Mexico businesses into one International operating segment. Our Domestic and International operating segments also represent our reportable segments. The accounting policies of the segments are the same. Revenue by reportable segment and product category were as follows for the three and nine months ended November 3, 2018, and October 28, 2017 ($ in millions):
Operating income by reportable segment and the reconciliation to earnings from continuing operations before income tax expense were as follows for the three and nine months ended November 3, 2018, and October 28, 2017 ($ in millions):
Assets by reportable segment were as follows as of November 3, 2018, February 3, 2018, and October 28, 2017 ($ in millions):
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Income Taxes Income Taxes (Notes) |
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Nov. 03, 2018 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income Taxes On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (“Tax Act”), which significantly changed U.S. tax law. Among other things, the Tax Act lowered the U.S. statutory tax rate from 35% to 21% effective January 1, 2018, broadened the base to which U.S. income tax applies, imposed a one-time deemed repatriation tax on net unremitted earnings of foreign subsidiaries not previously subject to U.S. income tax and changed how foreign earnings are subject to U.S. income tax. In response to the Tax Act, the Securities and Exchange Commission staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) that provides guidance on accounting for the impact of the Tax Act. SAB 118 allows companies to record provisional amounts to the extent they are reasonably estimable and adjust them over time as more information becomes available, not to extend beyond the measurement period of one year from the enactment of the Tax Act. As a result of the Tax Act and in accordance with SAB 118, we recorded provisional tax expense in the fourth quarter of fiscal 2018 related to the deemed repatriation tax and the revaluation of deferred tax assets and liabilities to reflect the new tax rate. We made the following adjustments to the provisional tax expense during the three months ended November 3, 2018: (1) an $18 million reduction to the deemed repatriation tax liability, resulting in an adjusted provisional tax liability of $192 million as of November 3, 2018, and (2) a $5 million reduction to the revaluation of deferred tax assets and liabilities to reflect the new tax rate, resulting in an adjusted provisional tax liability of $71 million as of November 3, 2018. We continue to gather and analyze additional information needed to complete our accounting for these items and expect to complete our accounting within the one-year measurement period provided by SAB 118. Any adjustment to these amounts during the measurement period will be recorded in income tax expense in the period in which the analysis is complete. Beginning in fiscal 2019, the Tax Act created a provision known as the global intangible low-tax income (“GILTI”) that imposes a tax on certain earnings of foreign subsidiaries. Due to the complexity of the new GILTI tax rules, we are not yet able to reasonably determine the complete effects of this provision. Therefore, we have not yet elected a policy as to whether we will recognize deferred taxes for basis differences expected to reverse or record GILTI as a current period cost when incurred. We have, however, included an estimate of the current GILTI impact in our effective tax rate for fiscal 2019. Refer to Note 10, Income Taxes, of the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended February 3, 2018, for additional information. |
Contingencies (Notes) |
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Nov. 03, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies We are involved in a number of legal proceedings. Where appropriate, we have made accruals with respect to these matters, which are reflected on our Condensed Consolidated Financial Statements. However, there are cases where liability is not probable or the amount cannot be reasonably estimated and, therefore, accruals have not been made. We provide disclosure of matters where we believe it is reasonably possible the impact may be material to our Condensed Consolidated Financial Statements. Securities Actions In February 2011, a purported class action lawsuit captioned, IBEW Local 98 Pension Fund, individually and on behalf of all others similarly situated v. Best Buy Co., Inc., et al., was filed against us and certain of our executive officers in the U.S. District Court for the District of Minnesota. This federal court action alleges, among other things, that we and the officers named in the complaint violated Sections 10(b) and 20A of the Exchange Act and Rule 10b-5 under the Exchange Act in connection with press releases and other statements relating to our fiscal 2011 earnings guidance that had been made available to the public. Additionally, in March 2011, a similar purported class action was filed by a single shareholder, Rene LeBlanc, against us and certain of our executive officers in the same court. In July 2011, after consolidation of the IBEW Local 98 Pension Fund and Rene LeBlanc actions, a consolidated complaint captioned, IBEW Local 98 Pension Fund v. Best Buy Co., Inc., et al., was filed and served. Following discovery and motion practice Plaintiffs moved to certify the purported class. By Order filed August 6, 2014, the court certified a class of persons or entities who acquired Best Buy common stock between 10:00 a.m. EDT on September 14, 2010, and December 13, 2010, and who were damaged by the alleged violations of law. The 8th Circuit Court of Appeals granted our request for interlocutory appeal. On April 12, 2016, the 8th Circuit held the trial court misapplied the law and reversed the class certification order. IBEW petitioned the 8th Circuit for a rehearing en banc, which was denied on June 1, 2016. On June 23, 2017, the trial court denied plaintiff's request to file a new Motion for Class Certification. On October 30, 2017, plaintiffs filed a motion for leave to file a second amended class action complaint which the Magistrate Judge denied on July 11, 2018. On August 24, 2018, the District Court Judge overruled plaintiff’s objections to that ruling, affirming the Magistrate Judge’s denial of leave to amend. On January 11, 2019, the District Court Judge is scheduled to hear argument on the Best Buy motion for summary judgment on the remaining claims. We continue to believe that the remaining individual plaintiff's allegations are without merit and intend to vigorously defend our company in this matter. In June 2011, a purported shareholder derivative action captioned, Salvatore M. Talluto, Derivatively and on Behalf of Best Buy Co., Inc. v. Richard M. Schulze, et al., as Defendants and Best Buy Co., Inc. as Nominal Defendant, was filed against both present and former members of our Board serving during the relevant periods in fiscal 2011 and us as a nominal defendant in the U.S. District Court for the State of Minnesota. The lawsuit alleges that the director defendants breached their fiduciary duty, among other claims, including violation of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, in failing to correct public misrepresentations and material misstatements and/or omissions regarding our fiscal 2011 earnings projections and, for certain directors, selling stock while in possession of material adverse non-public information. Additionally, in July 2011, a similar purported class action was filed by a single shareholder, Daniel Himmel, against us and certain of our executive officers in the same court. In November 2011, the respective lawsuits of Salvatore M. Talluto and Daniel Himmel were consolidated into a new action captioned, In Re: Best Buy Co., Inc. Shareholder Derivative Litigation, and a stay ordered pending the close of discovery in the consolidated IBEW Local 98 Pension Fund v. Best Buy Co., Inc., et al. case. Additionally, in June 2015, a similar purported class action was filed by a single shareholder, Khuong Tran, derivatively on behalf of Best Buy Co., Inc. against us and certain of our executive officers and directors in the same court. The Khuong Tran lawsuit has also been stayed pending the close of discovery in IBEW. The plaintiffs in the above securities actions seek damages, including interest, equitable relief and reimbursement of the costs and expenses they incurred in the lawsuits. As stated above, we believe the allegations in the above securities actions are without merit, and we intend to defend these actions vigorously. Based on our assessment of the facts underlying the claims in the above securities actions, their respective procedural litigation history and the degree to which we intend to defend our company in these matters, the amount or range of reasonably possible losses, if any, cannot be estimated. Other Legal Proceedings We are involved in various other legal proceedings arising in the normal course of conducting business. For such legal proceedings, we have accrued an amount that reflects the aggregate liability deemed probable and estimable, but this amount is not material to our consolidated financial position, results of operations or cash flows. Because of the preliminary nature of many of these proceedings, the difficulty in ascertaining the applicable facts relating to many of these proceedings, the variable treatment of claims made in many of these proceedings and the difficulty of predicting the settlement value of many of these proceedings, we are not able to estimate an amount or range of any reasonably possible additional losses. However, based upon our historical experience, the resolution of these proceedings is not expected to have a material effect on our consolidated financial position, results of operations or cash flows. |
Basis of Presentation Basis of Presentation (Policies) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Accounting, Policy [Policy Text Block] | 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 generated a large proportion of our revenue and earnings in the fiscal fourth quarter, which includes the majority of the holiday shopping season in the U.S., Canada and Mexico. 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 included 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 February 3, 2018. The first nine months of fiscal 2019 and fiscal 2018 included 39 weeks. In order to align our fiscal reporting periods and comply with statutory filing requirements, we consolidate the financial results of our Mexico operations on a one-month lag. Our policy is to accelerate recording the effect of events occurring in the lag period that significantly affect our condensed consolidated financial statements. No such events were identified for the reported periods. In preparing the accompanying condensed consolidated financial statements, we evaluated the period from November 4, 2018, through the date the financial statements were issued for material subsequent events requiring recognition or disclosure. No such events were identified for the reported periods. |
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Fiscal Period, Policy [Policy Text Block] | The first nine months of fiscal 2019 and fiscal 2018 included 39 weeks. In order to align our fiscal reporting periods and comply with statutory filing requirements, we consolidate the financial results of our Mexico operations on a one-month lag. Our policy is to accelerate recording the effect of events occurring in the lag period that significantly affect our condensed consolidated financial statements. |
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New Accounting Pronouncements, Policy [Policy Text Block] | Unadopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases, which will require lessees to recognize most leases on their balance sheets related to the rights and obligations created by those leases, and will expand disclosure requirements. The new guidance was issued to increase transparency and comparability among companies. In July 2018, the FASB approved an amendment to the new guidance that allows companies the option of using the effective date of the new standard as the initial application (at the beginning of the period in which is it adopted, rather than at the beginning of the earliest comparative period) and to recognize the effects of applying the new ASU as a cumulative effect adjustment to the opening balance sheet or retained earnings. Based on the effective dates, we expect to adopt the new guidance in the first quarter of fiscal 2020 using the new transition election to not restate comparative periods and are in process of implementing required upgrades to our existing lease systems. While we expect adoption to lead to a material increase in the assets and liabilities recorded on our consolidated balance sheet and an increase to our footnote disclosures related to leases, we are still evaluating the impact on our consolidated statement of earnings. We also expect that adoption of the new standard will require changes to our internal controls over financial reporting. Adopted Accounting Pronouncements In the first quarter of fiscal 2019, we prospectively adopted the following ASUs, all of which had an immaterial impact on our results of operations, cash flows and financial position.
In the first quarter of fiscal 2019, we also adopted ASU 2014-09, Revenue from Contracts with Customers. The new guidance establishes a single comprehensive model for entities to use in accounting for revenue and supersedes most revenue recognition guidance. It introduces a five-step process for revenue recognition that focuses on transfer of control, as opposed to transfer of risk and rewards under previous guidance. We elected the modified retrospective method of adoption, which we applied to contracts not completed at the date of adoption. Under this method, we recorded an increase to opening retained earnings of $73 million, net of tax, due to the cumulative impact of these changes. The impact was primarily related to the timing of revenue recognition related to our gift cards, the sale of certain software licenses and our loyalty programs. We did not make any adjustments to prior period financial statements. We expect the impact of adoption to be immaterial to our revenue, net earnings and cash flows on an ongoing basis. As part of the adoption, we also modified certain control procedures and processes, none of which had a material effect on our internal controls over financial reporting. The cumulative effect of the changes made to our Condensed Consolidated Balance Sheets on February 4, 2018, for the adoption of this standard was as follows ($ in millions):
The following tables reflect the impact of adopting this standard on our Condensed Consolidated Balance Sheets as of November 3, 2018, and our Condensed Consolidated Statements of Earnings for the three and nine months ended November 3, 2018 ($ in millions, except per share amounts):
SEC Disclosure Update In the third quarter of fiscal 2019, the U.S. Securities and Exchange Commission ("SEC") adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification, amending certain disclosure requirements that have become redundant, duplicative, overlapping, outdated or superseded. Other than the amendment's expanded disclosure requirement for interim financial statements to include both current and comparative quarter- and year-to-date reconciliations of changes in shareholders' equity, it did not have a material impact on our interim disclosures or financial statements, nor do we expect it to have a material impact on our annual disclosures or financial statements. Total Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets to the total shown within the Condensed Consolidated Statements of Cash Flows as of November 3, 2018, February 3, 2018, and October 28, 2017 ($ in millions):
Amounts included in restricted cash are pledged as collateral or restricted to use for general liability insurance and workers' compensation insurance. |
Basis of Presentation Basis of Presentation (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The cumulative effect of the changes made to our Condensed Consolidated Balance Sheets on February 4, 2018, for the adoption of this standard was as follows ($ in millions):
The following tables reflect the impact of adopting this standard on our Condensed Consolidated Balance Sheets as of November 3, 2018, and our Condensed Consolidated Statements of Earnings for the three and nine months ended November 3, 2018 ($ in millions, except per share amounts):
SEC Disclosure Update In the third quarter of fiscal 2019, the U.S. Securities and Exchange Commission ("SEC") adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification, amending certain disclosure requirements that have become redundant, duplicative, overlapping, outdated or superseded. Other than the amendment's expanded disclosure requirement for interim financial statements to include both current and comparative quarter- and year-to-date reconciliations of changes in shareholders' equity, it did not have a material impact on our interim disclosures or financial statements, nor do we expect it to have a material impact on our annual disclosures or financial statements. Total Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets to the total shown within the Condensed Consolidated Statements of Cash Flows as of November 3, 2018, February 3, 2018, and October 28, 2017 ($ in millions):
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Acquisition Acquisition (Tables) |
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Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The fair value of assets acquired and liabilities assumed as of the acquisition date on October 1, 2018, was as follows ($ in millions):
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Contract with Customer, Asset and Liability [Table Text Block] | The following table provides information about receivables and contract liabilities from our contracts with customers, which reflects the aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied as of November 3, 2018, and February 4, 2018 ($ in millions):
We establish allowances for uncollectible receivables based on historical collection trends and write-off history. The following table summarizes our allowance for doubtful accounts activity related to contracts with customers during the nine months ended November 3, 2018 ($ in millions):
The following table summarizes significant changes in our contract liability balances during the nine months ended November 3, 2018 ($ in millions):
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Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | The following table includes estimated revenue from our contract liability balances expected to be recognized in future periods if performance of the contract is expected to have a duration of more than one year ($ in millions):
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table sets forth our financial assets and liabilities that were accounted for at fair value on a recurring basis at November 3, 2018, February 3, 2018, and October 28, 2017, by level within the fair value hierarchy as determined by the valuation techniques we used to determine the fair value ($ in millions):
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Fair Value, Assets and Liabilities Measured on Nonrecurring Basis | The following table summarizes the fair value remeasurements of property and equipment impairments recorded during the three and nine months ended November 3, 2018, and October 28, 2017 ($ in millions):
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Goodwill and Intangible Assets Goodwill and Intangible Assets (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Nov. 03, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Intangible Assets and Goodwill [Table Text Block] | The following table provides the carrying values of goodwill and indefinite-lived intangible assets, which includes our Pacific Sales tradename, for the Domestic segment as of November 3, 2018, February 3, 2018, and October 28, 2017 ($ in millions):
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Schedule of Goodwill [Table Text Block] | The following table provides the gross carrying amount of goodwill and cumulative goodwill impairment as of November 3, 2018, February 3, 2018, and October 28, 2017 ($ in millions):
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Schedule of Finite-Lived Intangible Assets [Table Text Block] | The following table provides the gross carrying amount and related accumulated amortization of definite-lived intangible assets as of November 3, 2018 ($ in millions). We had no definite-lived intangible assets as of February 3, 2018, or October 28, 2017.
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Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The following table provides the amortization expense expected to be recognized in future periods ($ in millions):
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Restructuring (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Nov. 03, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Composition of Restructuring Charges | Restructuring charges incurred in the three and nine months ended November 3, 2018, and October 28, 2017, were as follows ($ in millions):
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Best Buy Mobile | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Composition of Restructuring Charges | The composition of the restructuring charges we incurred for Best Buy Mobile during the three and nine months ended November 3, 2018, as well as the cumulative amount incurred through November 3, 2018, were as follows ($ in millions):
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Restructuring Accrual Activity | The following table summarizes our restructuring accrual activity during the nine months ended November 3, 2018, related to termination benefits and facility closure and other costs associated with Best Buy Mobile ($ in millions):
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Debt (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Nov. 03, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt | Long-term debt consisted of the following at November 3, 2018, February 3, 2018, and October 28, 2017 ($ in millions):
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Derivative Instruments Derivative Instruments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Nov. 03, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross fair values of outstanding derivative instruments | The following tables present the gross fair values of our outstanding derivative instruments and the corresponding classification at November 3, 2018, February 3, 2018, and October 28, 2017 ($ in millions):
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Effects of derivative instruments on OCI and earnings | The following table presents the effects of derivative instruments on other comprehensive income ("OCI") for the three and nine months ended November 3, 2018, and October 28, 2017 ($ in millions):
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Effects of derivatives not designated as hedging instruments on earnings | The following table presents the effects of derivatives not designated as hedging instruments on our Condensed Consolidated Statements of Earnings for the three and nine months ended November 3, 2018, and October 28, 2017 ($ in millions):
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Effects of interest rate derivatives and adjustments to LTD on earnings | The following table presents the effects of interest rate derivatives and adjustments to the carrying value of long-term debt on our Condensed Consolidated Statements of Earnings for the three and nine months ended November 3, 2018, and October 28, 2017 ($ in millions):
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Notional amount of derivative instruments | The following table presents the notional amounts of our derivative instruments at November 3, 2018, February 3, 2018, and October 28, 2017 ($ in millions):
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Earnings Per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Nov. 03, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | The following table presents a reconciliation of the numerators and denominators of basic and diluted earnings per share from continuing operations for the three and nine months ended November 3, 2018, and October 28, 2017 ($ and shares in millions, except per share amounts):
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Comprehensive Income (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Nov. 03, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of accumulated other comprehensive income | net of tax, were as follows for the three and nine months ended November 3, 2018, and October 28, 2017 ($ in millions):
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Repurchase of Common Stock (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Nov. 03, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of share repurchases | The following table presents information regarding the shares we repurchased during the three and nine months ended November 3, 2018, and October 28, 2017 ($ and shares in millions, except per share amounts):
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Segments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Nov. 03, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of revenue from segments to consolidated | Revenue by reportable segment and product category were as follows for the three and nine months ended November 3, 2018, and October 28, 2017 ($ in millions):
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Reconciliation of operating profit (loss) from segments to consolidated | Operating income by reportable segment and the reconciliation to earnings from continuing operations before income tax expense were as follows for the three and nine months ended November 3, 2018, and October 28, 2017 ($ in millions):
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Reconciliation of assets from segment to consolidated | Assets by reportable segment were as follows as of November 3, 2018, February 3, 2018, and October 28, 2017 ($ in millions):
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Basis of Presentation Schedule of Impact of ASU 2014-09 on Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Millions |
Nov. 03, 2018 |
Feb. 04, 2018 |
Feb. 03, 2018 |
Oct. 28, 2017 |
|||
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New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Other current assets | $ 508 | $ 438 | $ 431 | ||||
Other assets | 653 | $ 355 | 374 | 603 | |||
Unredeemed gift card liabilities | 281 | 316 | 385 | 375 | |||
Deferred revenue | 449 | 427 | 453 | 426 | |||
Accrued liabilities less accrued income taxes | 823 | 861 | |||||
Accrued income taxes | 21 | 143 | |||||
Retained earnings | 2,685 | 3,343 | 3,270 | $ 3,818 | |||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Other current assets | 459 | ||||||
Other assets | 672 | 374 | |||||
Unredeemed gift card liabilities | 349 | 385 | |||||
Deferred revenue | 472 | 453 | |||||
Accrued liabilities less accrued income taxes | 777 | 864 | |||||
Accrued income taxes | 15 | 137 | |||||
Retained earnings | 2,616 | $ 3,270 | |||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Adoption of ASU 2014-09 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Other current assets | [1] | 49 | |||||
Other assets | (19) | [1] | (19) | ||||
Unredeemed gift card liabilities | (68) | [1] | (69) | ||||
Deferred revenue | (23) | [1] | (26) | ||||
Accrued liabilities less accrued income taxes | 46 | [1] | (3) | ||||
Accrued income taxes | 6 | [1] | 6 | ||||
Retained earnings | $ 69 | [1] | $ 73 | ||||
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Basis of Presentation Schedule of Impact of ASU 2014-09 on Condensed Consolidated Statements of Earnings (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Nov. 03, 2018 |
Oct. 28, 2017 |
Nov. 03, 2018 |
Oct. 28, 2017 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Revenue | $ 9,590 | $ 9,320 | $ 28,078 | $ 26,788 |
Cost of goods sold | 7,266 | 7,040 | 21,400 | 20,333 |
Gross profit | 2,324 | 2,280 | 6,678 | 6,455 |
Operating income | 322 | 350 | 922 | 971 |
Income tax expense | 53 | 104 | 187 | 309 |
Net earnings | $ 277 | $ 239 | $ 729 | $ 636 |
Basic earnings per share | $ 1.01 | $ 0.80 | $ 2.62 | $ 2.09 |
Diluted earnings per share | $ 0.99 | $ 0.78 | $ 2.57 | $ 2.05 |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Revenue | $ 9,575 | $ 28,043 | ||
Cost of goods sold | 7,250 | 21,361 | ||
Gross profit | 2,325 | 6,682 | ||
Operating income | 323 | 926 | ||
Income tax expense | 53 | 188 | ||
Net earnings | $ 278 | $ 732 | ||
Basic earnings per share | $ 1.01 | $ 2.63 | ||
Diluted earnings per share | $ 0.99 | $ 2.58 | ||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Adoption of ASU 2014-09 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Revenue | $ 15 | $ 35 | ||
Cost of goods sold | 16 | 39 | ||
Gross profit | (1) | (4) | ||
Operating income | (1) | (4) | ||
Income tax expense | 0 | (1) | ||
Net earnings | $ (1) | $ (3) | ||
Basic earnings per share | $ 0 | $ (0.01) | ||
Diluted earnings per share | $ 0 | $ (0.01) |
Basis of Presentation Total Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions |
Nov. 03, 2018 |
Feb. 03, 2018 |
Oct. 28, 2017 |
Jan. 28, 2017 |
---|---|---|---|---|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cash and cash equivalents | $ 1,228 | $ 1,101 | $ 1,103 | |
Total cash, cash equivalents and restricted cash | 1,439 | 1,300 | 1,300 | $ 2,433 |
Other current assets | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Restricted cash included in Other current assets | $ 211 | $ 199 | $ 197 |
Basis of Presentation Discontinued Operations (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Nov. 03, 2018 |
Oct. 28, 2017 |
Nov. 03, 2018 |
Oct. 28, 2017 |
|
Discontinued Operations and Disposal Groups [Abstract] | ||||
Gain from discontinued operations (Note 1), net of tax | $ 0 | $ 1 | $ 0 | $ 1 |
Acquisition Acquisition (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Nov. 03, 2018 |
Nov. 03, 2018 |
Oct. 28, 2017 |
|||
Business Combinations [Abstract] | |||||
Transaction costs | $ 13 | $ 13 | |||
Business Acquisition [Line Items] | |||||
Current assets | 34 | 34 | |||
Goodwill | 496 | ||||
Intangible assets | [1] | 371 | 371 | ||
Other assets | 27 | 27 | |||
Total assets acquired | 928 | 928 | |||
Accrued liabilities | 56 | 56 | |||
Long-term liabilities | 72 | 72 | |||
Total liabilities assumed | 128 | 128 | |||
Total purchase price | 800 | ||||
Less: Cash acquired | 8 | ||||
Total purchase price, net of cash acquired | 792 | 792 | $ 0 | ||
Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 235 | 235 | |||
Intangible asset useful life | 5 years | ||||
Tradename | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 61 | 61 | |||
Intangible asset useful life | 8 years | ||||
Developed technology | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 52 | 52 | |||
Intangible asset useful life | 5 years | ||||
Commercial customer relationships | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 23 | $ 23 | |||
Intangible asset useful life | 10 years | ||||
|
Revenue Recognition Revenue Recognition (Details) $ in Millions |
Nov. 03, 2018
USD ($)
|
---|---|
Revenue from Contract with Customer [Abstract] | |
Refund liability for sales returns | $ 69 |
Estimated inventory to be returned | $ 48 |
Gift card redemption within 1 year, percentage | 90.00% |
Revenue Recognition Contract with Customer (Details) - USD ($) $ in Millions |
9 Months Ended | |||
---|---|---|---|---|
Nov. 03, 2018 |
Feb. 04, 2018 |
|||
Revenue from Contract with Customer [Abstract] | ||||
Contract with Customer, Asset, Receivables, net | $ 588 | $ 674 | ||
Contract with Customer, Liability, Current, Unredeemed gift cards | 281 | 316 | ||
Contract with Customer, Liability, Current, Deferred revenue | 449 | 408 | ||
Contract with Customer, Liability, Current, Accrued liabilities | 149 | 151 | ||
Contract with Customer, Liability, Long-term liabilities | 12 | 22 | ||
Contract with Customer, Asset, Allowance for uncollectible receivables | 15 | $ 24 | ||
Allowance charged to expense or other accounts | 27 | |||
Allowance, other | [1] | $ (36) | ||
|
Revenue Recognition Change in Contract with Customer (Details) $ in Millions |
9 Months Ended | |||||
---|---|---|---|---|---|---|
Nov. 03, 2018
USD ($)
| ||||||
Revenue from Contract with Customer [Abstract] | ||||||
Contract with Customer, Liability, Revenue recognized | $ 729 | |||||
Contract with Customer, Liability, Increase (decrease) due to acquisition | 14 | [1] | ||||
Contract with Customer, Liability, Revenue adjustments | $ 2 | [2] | ||||
|
Revenue Recognition Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction (Details) - USD ($) $ in Millions |
Nov. 03, 2018 |
Aug. 04, 2018 |
|||
---|---|---|---|---|---|
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-05-05 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 6 months | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-11-04 | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue, Remaining Performance Obligation, Amount | [1] | $ 6 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-02-03 | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue, Remaining Performance Obligation, Amount | [1] | 14 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-05-04 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-02-02 | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue, Remaining Performance Obligation, Amount | [1] | 6 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-05-02 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-31 | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue, Remaining Performance Obligation, Amount | [1] | 2 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-05-01 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-30 | |||||
Revenue from Contract with Customer [Abstract] | |||||
Revenue, Remaining Performance Obligation, Amount | [1] | $ 1 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-30 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | |||||
|
Recurring (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions |
Nov. 03, 2018 |
Feb. 03, 2018 |
Oct. 28, 2017 |
---|---|---|---|
Level 1 | Money market funds | |||
ASSETS | |||
Cash and cash equivalents | $ 126 | $ 21 | $ 84 |
Other current assets | 72 | 3 | 8 |
Level 1 | Marketable securities that fund deferred compensation | |||
ASSETS | |||
Other assets | 100 | 99 | 98 |
Level 2 | Commercial paper | |||
ASSETS | |||
Cash and cash equivalents | 0 | 90 | 0 |
Short-term investments | 0 | 474 | 588 |
Other current assets | 0 | 60 | 60 |
Level 2 | Time deposits | |||
ASSETS | |||
Cash and cash equivalents | 0 | 65 | 0 |
Short-term investments | 76 | 1,558 | 1,649 |
Other current assets | 100 | 101 | 100 |
Level 2 | Foreign currency derivative instruments | |||
ASSETS | |||
Other current assets | 1 | 2 | 5 |
Liabilities | |||
Accrued liabilities | 0 | 8 | 5 |
Level 2 | Interest rate swap derivative instruments | |||
ASSETS | |||
Other current assets | 0 | 0 | 3 |
Liabilities | |||
Accrued liabilities | 0 | 1 | 0 |
Long-term liabilities | $ 22 | $ 4 | $ 3 |
Nonrecurring (Details) - Fair Value, Measurements, Nonrecurring [Member] - Level 3 - SG&A - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Nov. 03, 2018 |
Oct. 28, 2017 |
Nov. 03, 2018 |
Oct. 28, 2017 |
|||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Asset Impairment Charges | $ 3 | $ 2 | $ 8 | $ 8 | ||
Remaining net carrying value | [1] | $ 0 | $ 0 | $ 0 | $ 0 | |
|
Goodwill and Intangible Assets Goodwill and Intangible Assets (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Nov. 03, 2018 |
Oct. 28, 2017 |
Nov. 03, 2018 |
Oct. 28, 2017 |
Feb. 03, 2018 |
|
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Accumulated amortization | $ 6 | $ 6 | |||
Finite-Lived Intangible Assets, Gross carrying amount | 371 | 371 | |||
Goodwill | 921 | $ 425 | 921 | $ 425 | $ 425 |
Indefinite-lived tradename included in Other assets | 18 | 18 | 18 | 18 | 18 |
Goodwill, Gross carrying amount | 1,596 | 1,100 | 1,596 | 1,100 | 1,100 |
Goodwill, Cumulative impairment | 675 | 675 | 675 | 675 | $ 675 |
Amortization of Intangible Assets | 6 | $ 0 | 6 | $ 0 | |
Finite-Lived Intangible Assets, Amortization Expense, Remainder of fiscal 2019 | 17 | 17 | |||
Finite-Lived Intangible Assets, Amortization Expense, Fiscal 2020 | 67 | 67 | |||
Finite-Lived Intangible Assets, Amortization Expense, Fiscal 2021 | 67 | 67 | |||
Finite-Lived Intangible Assets, Amortization Expense, Fiscal 2022 | 67 | 67 | |||
Finite-Lived Intangible Assets, Amortization Expense, Fiscal 2023 and thereafter | 147 | 147 | |||
Customer relationships | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Accumulated amortization | 4 | 4 | |||
Finite-Lived Intangible Assets, Gross carrying amount | 258 | 258 | |||
Tradename | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Accumulated amortization | 1 | 1 | |||
Finite-Lived Intangible Assets, Gross carrying amount | 61 | 61 | |||
Developed technology | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Accumulated amortization | 1 | 1 | |||
Finite-Lived Intangible Assets, Gross carrying amount | $ 52 | $ 52 |
Restructuring Charges Restructuring Narrative (Details) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Nov. 03, 2018
USD ($)
|
Oct. 28, 2017
USD ($)
|
Nov. 03, 2018
USD ($)
store
|
Oct. 28, 2017
USD ($)
|
Feb. 03, 2018
USD ($)
|
|
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 0 | $ (2) | $ 47 | $ 0 | |
Best Buy Mobile | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 0 | 0 | $ 47 | 0 | |
Number of Stores to be Closed | store | 257 | ||||
Restructuring Reserve | 1 | $ 1 | $ 8 | ||
Canadian brand consolidation | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 0 | 2 | 0 | 3 | |
Renew Blue | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 0 | $ 0 | 0 | $ 3 | |
Facility closure and other costs | Best Buy Mobile | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 0 | 49 | |||
Restructuring Reserve | 1 | 1 | $ 0 | ||
Facility closure and other costs | Canadian brand consolidation | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve | 9 | 9 | |||
Facility closure and other costs | Renew Blue | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve | 9 | 9 | |||
Facility closure and other costs | U.S. large format store closures | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve | $ 2 | $ 2 |
Restructuring Charges Composition of Restructuring Charges (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Nov. 03, 2018 |
Oct. 28, 2017 |
Nov. 03, 2018 |
Oct. 28, 2017 |
|
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 0 | $ (2) | $ 47 | $ 0 |
Best Buy Mobile | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 0 | $ 0 | 47 | $ 0 |
Restructuring and Related Cost, Cost Incurred to Date | 56 | 56 | ||
Best Buy Mobile | Property and equipment impairments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 0 | 0 | ||
Restructuring and Related Cost, Cost Incurred to Date | 1 | 1 | ||
Best Buy Mobile | Termination benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 0 | 2 | ||
Restructuring and Related Cost, Cost Incurred to Date | 6 | 6 | ||
Best Buy Mobile | Facility closure and other costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 0 | 49 | ||
Restructuring and Related Cost, Cost Incurred to Date | $ 49 | $ 49 |
Restructuring Charges Restructuring Accrual Activity (Details) - Best Buy Mobile $ in Millions |
9 Months Ended | |||
---|---|---|---|---|
Nov. 03, 2018
USD ($)
| ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, balance at the beginning of the period | $ 8 | |||
Charges | 50 | |||
Cash payments | (54) | |||
Adjustments | (3) | [1] | ||
Restructuring reserve, balance at the end of the period | 1 | |||
Termination benefits | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, balance at the beginning of the period | 8 | |||
Charges | 1 | |||
Cash payments | (6) | |||
Adjustments | (3) | [1] | ||
Restructuring reserve, balance at the end of the period | 0 | |||
Facility closure and other costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, balance at the beginning of the period | 0 | |||
Charges | 49 | |||
Cash payments | (48) | |||
Adjustments | 0 | |||
Restructuring reserve, balance at the end of the period | $ 1 | |||
|
Debt Short-Term Debt (Details) $ in Millions |
9 Months Ended |
---|---|
Nov. 03, 2018
USD ($)
| |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Current Borrowing Capacity | $ 1,250 |
Federal Funds Rate [Domain] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Interest Rate Description | 0.005 |
London Interbank Offered Rate (LIBOR) [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Interest Rate Description | 0.01 |
Minimum [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Interest Rate Description | 0 |
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Interest Rate Description | 0.008 |
Minimum [Member] | Facility Fee [Domain] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Interest Rate Description | 0.00075 |
Maximum [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Interest Rate Description | 0.003 |
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Interest Rate Description | 0.013 |
Maximum [Member] | Facility Fee [Domain] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Interest Rate Description | 0.002 |
Previously Reported [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Current Borrowing Capacity | $ 1,250 |
Long-Term Debt (Details) - USD ($) $ in Millions |
9 Months Ended | |||
---|---|---|---|---|
Nov. 03, 2018 |
Sep. 27, 2018 |
Feb. 03, 2018 |
Oct. 28, 2017 |
|
Debt Instrument [Line Items] | ||||
Interest rate swap valuation adjustments | $ (22) | $ (13) | $ (8) | |
Total long-term debt, including current portion | 1,326 | 1,355 | 1,329 | |
Current portion of long-term debt | 46 | 544 | 545 | |
Total long-term debt, less current portion | 1,280 | 811 | 784 | |
Long-term Debt, Fair Value | 1,133 | 1,199 | 1,219 | |
Notes due 2018 | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 0 | 500 | 500 | |
Extinguishment of Debt, Amount | 500 | |||
Notes due 2021 | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 650 | 650 | 650 | |
Notes due 2028 | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 500 | 0 | 0 | |
Debt Instrument, Face Amount | $ 500 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.45% | |||
Debt Issuance Costs, Gross | $ 5 | |||
Proceeds from Debt, Net of Issuance Costs | $ 495 | |||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||
Debt Instrument, Redemption Price, Control Triggering Percentage | 101.00% | |||
Long-term Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, excluding debt discounts and issuance costs and financing and capital lease obligations | $ 1,128 | 1,145 | 1,150 | |
Debt discounts and issuance costs | (8) | (3) | (3) | |
Financing lease obligations | 189 | 191 | 158 | |
Capital lease obligations | 17 | 22 | 24 | |
Interest rate swap derivative instruments | Long-term Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate swap valuation adjustments | $ (22) | $ (5) | $ 0 |
Derivative Instruments Derivative Instruments Narrative (Details) |
9 Months Ended |
---|---|
Nov. 03, 2018 | |
Derivatives designated as net investment hedges | |
Derivative [Line Items] | |
Derivative, Term of Contract | 12 months |
Foreign exchange forward contracts | Not Designated as Hedging Instrument [Member] | |
Derivative [Line Items] | |
Derivative, Term of Contract | 12 months |
Derivative Instruments (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Nov. 03, 2018 |
Oct. 28, 2017 |
Nov. 03, 2018 |
Oct. 28, 2017 |
Feb. 03, 2018 |
|
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | $ 1 | $ 8 | $ 1 | $ 8 | $ 2 |
Derivative Liability, Fair Value, Gross Liability | 22 | 8 | 22 | 8 | 13 |
Notional Amount | 1,233 | 1,454 | 1,233 | 1,454 | 1,645 |
Derivatives designated as net investment hedges | |||||
Derivatives, Fair Value [Line Items] | |||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax | 2 | 8 | 21 | (3) | |
Notional Amount | 16 | 240 | 16 | 240 | 462 |
Interest rate swap derivative instruments | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional Amount | 1,150 | 1,150 | 1,150 | 1,150 | 1,150 |
Interest rate swap derivative instruments | Interest expense | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, Loss on Derivative | (15) | (16) | (16) | (13) | |
Derivative, Gain on Derivative | 15 | 16 | 16 | 13 | |
Net impact | 0 | 0 | 0 | 0 | |
Foreign exchange forward contracts | Not Designated as Hedging Instrument [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 0 | 2 | 0 | 2 | 0 |
Notional Amount | 67 | 64 | 67 | 64 | 33 |
Foreign exchange forward contracts | Not Designated as Hedging Instrument [Member] | SG&A | |||||
Derivatives, Fair Value [Line Items] | |||||
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | 0 | 2 | 2 | (1) | |
Other current assets | Derivatives designated as net investment hedges | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 1 | 3 | 1 | 3 | 2 |
Other current assets and Other assets | Interest rate swap derivative instruments | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 0 | 3 | 0 | 3 | 0 |
Accrued liabilities | Derivatives designated as net investment hedges | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 0 | 5 | 0 | 5 | 7 |
Accrued liabilities | Foreign exchange forward contracts | Not Designated as Hedging Instrument [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 | 0 | 0 | 1 |
Accrued liabilities and Long-term liabilities | Interest rate swap derivative instruments | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | $ 22 | $ 3 | $ 22 | $ 3 | $ 5 |
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Nov. 03, 2018 |
Oct. 28, 2017 |
Nov. 03, 2018 |
Oct. 28, 2017 |
|
Earnings Per Share [Abstract] | ||||
Net earnings from continuing operations | $ 277 | $ 238 | $ 729 | $ 635 |
Weighted-average common shares outstanding (in shares) | 274.3 | 299.1 | 278.6 | 304.1 |
Dilutive effect of stock compensation plan awards | 5.0 | 6.3 | 5.2 | 6.5 |
Weighted-average common shares outstanding, assuming dilution (in shares) | 279.3 | 305.4 | 283.8 | 310.6 |
Anti-dilutive securities excluded from Weighted-average common shares outstanding, assuming dilution | 0.1 | 0.0 | 0.1 | 0.0 |
Basic earnings per share | $ 1.01 | $ 0.80 | $ 2.62 | $ 2.09 |
Diluted earnings per share | $ 0.99 | $ 0.78 | $ 2.57 | $ 2.05 |
Comprehensive Income (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Nov. 03, 2018 |
Oct. 28, 2017 |
Nov. 03, 2018 |
Oct. 28, 2017 |
|
Equity [Abstract] | ||||
Foreign currency translation adjustments | $ 4 | $ (17) | $ (14) | $ 25 |
Repurchase of Common Stock (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|---|
Dec. 05, 2018 |
Nov. 03, 2018 |
Oct. 28, 2017 |
Nov. 03, 2018 |
Oct. 28, 2017 |
Mar. 01, 2018 |
Mar. 01, 2017 |
Feb. 27, 2017 |
Jun. 30, 2011 |
|
Total Share Repurchases [Domain] | |||||||||
Stock Repurchases [Line Items] | |||||||||
Total cost of shares repurchased | $ 168 | ||||||||
Number of shares repurchased | 2.5 | ||||||||
Open market [Domain] | |||||||||
Stock Repurchases [Line Items] | |||||||||
Total cost of shares repurchased | $ 369 | $ 366 | $ 1,143 | $ 1,147 | |||||
Average price per share | $ 76.04 | $ 57.14 | $ 74.10 | $ 52.35 | |||||
Number of shares repurchased | 4.8 | 6.4 | 15.4 | 21.9 | |||||
February 2017 share repurchase program [Member] | |||||||||
Stock Repurchases [Line Items] | |||||||||
Stock Repurchase Program, Authorized Amount | $ 5,000 | ||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 1,900 | $ 1,900 | |||||||
June 2011 share repurchase program [Member} | |||||||||
Stock Repurchases [Line Items] | |||||||||
Stock Repurchase Program, Authorized Amount | $ 5,000 | ||||||||
Scenario, Plan [Member] | |||||||||
Stock Repurchases [Line Items] | |||||||||
Stock Repurchase Program, Authorized Amount | $ 1,500 | ||||||||
Scenario, Plan [Member] | Adjusted Balance [Member] | |||||||||
Stock Repurchases [Line Items] | |||||||||
Stock Repurchase Program, Authorized Amount | $ 3,500 | $ 3,000 |
Segments (Details) |
9 Months Ended |
---|---|
Nov. 03, 2018
segments
| |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 2 |
Segments Revenue by Reportable Segment and Product Category (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Nov. 03, 2018 |
Oct. 28, 2017 |
Nov. 03, 2018 |
Oct. 28, 2017 |
||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||
Revenues | $ 9,590 | $ 9,320 | $ 28,078 | $ 26,788 | |||
Domestic Segment [Member] | |||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||
Revenues | 8,756 | 8,491 | 25,807 | 24,675 | |||
Domestic Segment [Member] | Computing and Mobile Phones [Member] | |||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||
Revenues | [1] | 4,125 | 4,097 | 11,947 | 11,532 | ||
Domestic Segment [Member] | Consumer Electronics [Member] | |||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||
Revenues | [1] | 2,665 | 2,590 | 8,091 | 7,782 | ||
Domestic Segment [Member] | Appliances [Member] | |||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||
Revenues | [1] | 964 | 884 | 2,860 | 2,575 | ||
Domestic Segment [Member] | Entertainment [Member] | |||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||
Revenues | [1] | 558 | 508 | 1,617 | 1,572 | ||
Domestic Segment [Member] | Services [Member] | |||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||
Revenues | [1] | 409 | 382 | 1,185 | 1,120 | ||
Domestic Segment [Member] | Other Segment [Member] | |||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||
Revenues | [1] | 35 | 30 | 107 | 94 | ||
International Segment [Member] | |||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||
Revenues | 834 | 829 | 2,271 | 2,113 | |||
International Segment [Member] | Computing and Mobile Phones [Member] | |||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||
Revenues | [1] | 425 | 431 | 1,092 | 1,040 | ||
International Segment [Member] | Consumer Electronics [Member] | |||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||
Revenues | [1] | 221 | 227 | 644 | 616 | ||
International Segment [Member] | Appliances [Member] | |||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||
Revenues | [1] | 69 | 63 | 215 | 165 | ||
International Segment [Member] | Entertainment [Member] | |||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||
Revenues | [1] | 55 | 49 | 140 | 129 | ||
International Segment [Member] | Services [Member] | |||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||
Revenues | [1] | 46 | 42 | 127 | 118 | ||
International Segment [Member] | Other Segment [Member] | |||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||
Revenues | [1] | $ 18 | $ 17 | $ 53 | $ 45 | ||
|
Segments Operating income by Reportable Segment and Reconciliation to Earnings Before Income Tax Expense (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Nov. 03, 2018 |
Oct. 28, 2017 |
Nov. 03, 2018 |
Oct. 28, 2017 |
|
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating income | $ 322 | $ 350 | $ 922 | $ 971 |
Gain on sale of investments | 12 | 0 | 12 | 0 |
Investment income and other | 11 | 12 | 35 | 30 |
Interest expense | (15) | (20) | (53) | (57) |
Earnings from continuing operations before income tax expense | 330 | 342 | 916 | 944 |
Domestic Segment [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating income | 315 | 345 | 911 | 959 |
International Segment [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating income | $ 7 | $ 5 | $ 11 | $ 12 |
Segments Assets by Reportable Segment (Details) - USD ($) $ in Millions |
Nov. 03, 2018 |
Feb. 03, 2018 |
Oct. 28, 2017 |
---|---|---|---|
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | $ 15,000 | $ 13,049 | $ 14,785 |
Domestic Segment [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 13,812 | 11,553 | 13,140 |
International Segment [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | $ 1,188 | $ 1,496 | $ 1,645 |
Income Taxes Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | 12 Months Ended |
---|---|---|---|
Nov. 03, 2018 |
Nov. 03, 2018 |
Feb. 03, 2018 |
|
Income Tax Disclosure [Abstract] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% | |
Tax Cuts and Jobs Act, Incomplete Accounting, Transition Tax for Accumulated Foreign Earnings, Provisional Income Tax Expense (Benefit) | $ 18 | $ 192 | |
Tax Cuts and Jobs Act, Incomplete Accounting, Change in Tax Rate, Deferred Tax Asset (Liability), Provisional Income Tax Expense (Benefit) | $ 5 | $ 71 |