BEST BUY CO INC, 10-Q filed on 9/5/2017
Quarterly Report
Document and Entity Information Document
6 Months Ended
Jul. 29, 2017
Aug. 30, 2017
Document Information [Line Items]
 
 
Entity Registrant Name
BEST BUY CO INC 
 
Entity Central Index Key
0000764478 
 
Document Type
10-Q 
 
Document Period End Date
Jul. 29, 2017 
 
Amendment Flag
false 
 
Current Fiscal Year End Date
--02-03 
 
Entity Current Reporting Status
Yes 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
299,184,572 
Document Fiscal Year Focus
2018 
 
Document Fiscal Period Focus
Q2 
 
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
In Millions, unless otherwise specified
Jul. 29, 2017
Jan. 28, 2017
Jul. 30, 2016
Current assets
 
 
 
Cash and cash equivalents
$ 1,365 
$ 2,240 
$ 1,861 
Short-term investments
2,125 
1,681 
1,590 
Receivables, net
965 
1,347 
926 
Merchandise inventories
5,167 
4,864 
4,908 
Other current assets
456 
384 
409 
Total current assets
10,078 
10,516 
9,694 
Property and equipment, net
2,327 
2,293 
2,295 
Goodwill
425 
425 
425 
Other assets
614 
622 
840 
Total assets
13,444 
13,856 
13,254 
Current liabilities
 
 
 
Accounts payable
5,072 
4,984 
4,800 
Unredeemed gift card liabilities
383 
427 
369 
Deferred revenue
427 
418 
380 
Accrued compensation and related expenses
309 
358 
272 
Accrued liabilities
787 
865 
840 
Accrued income taxes
83 
26 
96 
Current portion of long-term debt
44 
44 
43 
Total current liabilities
7,105 
7,122 
6,800 
Long-term liabilities
682 
704 
794 
Long-term debt
1,310 
1,321 
1,341 
Equity
 
 
 
Preferred stock, $1.00 par value: Authorized — 400,000 shares; Issued and outstanding — none
0 
0 
0 
Common stock, $0.10 par value: Authorized — 1.0 billion shares; Issued and outstanding — 300,000,000, 311,000,000 and 317,000,000 shares, respectively
30 
31 
32 
Retained earnings
3,996 
4,399 
3,991 
Accumulated other comprehensive income
321 
279 
296 
Total equity
4,347 
4,709 
4,319 
Total liabilities and equity
$ 13,444 
$ 13,856 
$ 13,254 
CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) (USD $)
Jul. 29, 2017
Jan. 28, 2017
Jul. 30, 2016
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
300,000,000 
311,000,000 
317,000,000 
Common stock, outstanding shares
300,000,000 
311,000,000 
317,000,000 
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jul. 29, 2017
Jul. 30, 2016
Jul. 29, 2017
Jul. 30, 2016
Revenue
$ 8,940 
$ 8,533 
$ 17,468 
$ 16,976 
Cost of goods sold
6,787 
6,471 
13,293 
12,769 
Gross profit
2,153 
2,062 
4,175 
4,207 
Selling, general and administrative expenses
1,830 
1,773 
3,552 
3,517 
Restructuring charges
2 
0 
2 
29 
Operating income
321 
289 
621 
661 
Other income (expense)
 
 
 
 
Gain on sale of investments
0 
0 
0 
2 
Investment income and other
7 
8 
18 
14 
Interest expense
(18)
(18)
(37)
(38)
Earnings from continuing operations before income tax expense
310 
279 
602 
639 
Income tax expense
101 
97 
205 
231 
Net earnings from continuing operations
209 
182 
397 
408 
Gain from discontinued operations (Note 2), net of tax benefit (expense) of $0, $(10), $0 and $(7), respectively
0 
16 
0 
19 
Net earnings
$ 209 
$ 198 
$ 397 
$ 427 
Basic earnings
 
 
 
 
Continuing operations (in dollars per share)
$ 0.69 
$ 0.57 
$ 1.29 
$ 1.27 
Discontinued operations (in dollars per share)
$ 0.00 
$ 0.05 
$ 0.00 
$ 0.06 
Basic earnings per share (in dollars per share)
$ 0.69 
$ 0.62 
$ 1.29 
$ 1.33 
Diluted earnings
 
 
 
 
Continuing operations (in dollars per share)
$ 0.67 
$ 0.56 
$ 1.27 
$ 1.26 
Discontinued operations (in dollars per share)
$ 0.00 
$ 0.05 
$ 0.00 
$ 0.05 
Diluted earnings per share (in dollars per share)
$ 0.67 
$ 0.61 
$ 1.27 
$ 1.31 
Dividends declared per common share (in dollars per share)
$ 0.34 
$ 0.28 
$ 0.68 
$ 1.01 
Weighted-average common shares outstanding (in millions)
 
 
 
 
Basic (in shares)
304.1 
320.8 
306.7 
322.2 
Diluted (in shares)
310.8 
322.9 
313.0 
324.8 
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (PARENTHETICAL) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jul. 29, 2017
Jul. 30, 2016
Jul. 29, 2017
Jul. 30, 2016
Discontinued operation, income tax benefit (expense)
$ 0 
$ (10)
$ 0 
$ (7)
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jul. 29, 2017
Jul. 30, 2016
Jul. 29, 2017
Jul. 30, 2016
Net earnings
$ 209 
$ 198 
$ 397 
$ 427 
Foreign currency translation adjustments
55 
(20)
42 
25 
Comprehensive income
$ 264 
$ 178 
$ 439 
$ 452 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jul. 29, 2017
Jul. 30, 2016
Operating activities
 
 
Net earnings
$ 397 
$ 427 
Adjustments to reconcile net earnings to total cash provided by operating activities:
 
 
Depreciation
329 
327 
Restructuring charges
2 
29 
Stock-based compensation
67 
57 
Deferred income taxes
9 
0 
Other, net
(2)
(29)
Changes in operating assets and liabilities:
 
 
Receivables
401 
239 
Merchandise inventories
(285)
161 
Other assets
(45)
(29)
Accounts payable
15 
355 
Other liabilities
(237)
(159)
Income taxes
41 
(81)
Total cash provided by operating activities
692 
1,297 
Investing activities
 
 
Additions to property and equipment
(296)
(276)
Purchases of investments
(2,221)
(1,388)
Sales of investments
1,806 
1,112 
Proceeds from property disposition
2 
56 
Other, net
1 
5 
Total cash used in investing activities
(708)
(491)
Financing activities
 
 
Repurchase of common stock
(771)
(271)
Repayments of debt
(19)
(374)
Dividends paid
(208)
(328)
Issuance of common stock
125 
23 
Other, net
(1)
8 
Total cash used in financing activities
(874)
(942)
Effect of exchange rate changes on cash
18 
25 
Decrease in cash, cash equivalents and restricted cash
(872)
(111)
Cash, cash equivalents and restricted cash at beginning of period
2,433 
2,161 
Cash, cash equivalents and restricted cash at end of period
$ 1,561 
$ 2,050 
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $)
In Millions, unless otherwise specified
Total
Common Stock
Prepaid Share Repurchase
Additional Paid-In Capital
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
Beginning balances at Jan. 30, 2016
$ 4,378 
$ 32 
$ (55)
$ 0 
$ 4,130 
$ 271 
Beginning balances (in shares) at Jan. 30, 2016
 
324 
 
 
 
 
Increase (Decrease) in Shareholders' Equity
 
 
 
 
 
 
Net earnings, six months ended
427 
 
 
 
427 
 
Foreign currency translation adjustments
25 
 
 
 
 
25 
Stock-based compensation
57 
 
 
57 
 
 
Restricted stock vested and stock options exercised
20 
 
 
20 
 
 
Restricted stock vested and stock options exercised (in shares)
 
3 
 
 
 
 
Settlement of accelerated share repurchase
55 
 
55 
 
 
 
Issuance of common stock under employee stock purchase plan
3 
 
 
3 
 
 
Tax benefit (deficit) from stock options exercised, restricted stock vesting and employee stock purchase plan
4 
 
 
4 
 
 
Common stock dividends
(328)
 
 
 
(328)
 
Stock Repurchased During Period, Shares
 
(10)
 
 
 
 
Stock Repurchased During Period, Value
(322)
0 
 
(84)
(238)
 
Ending balances at Jul. 30, 2016
4,319 
32 
0 
0 
3,991 
296 
Ending balances (in shares) at Jul. 30, 2016
 
317 
 
 
 
 
Beginning balances at Jan. 28, 2017
4,709 
31 
0 
0 
4,399 
279 
Beginning balances (in shares) at Jan. 28, 2017
 
311 
 
 
 
 
Increase (Decrease) in Shareholders' Equity
 
 
 
 
 
 
ASU adoption cumulative adjustment
(2)
 
 
10 
(12)
 
Net earnings, six months ended
397 
 
 
 
397 
 
Foreign currency translation adjustments
42 
 
 
 
 
42 
Stock-based compensation
67 
 
 
67 
 
 
Restricted stock vested and stock options exercised
121 
 
 
121 
 
 
Restricted stock vested and stock options exercised (in shares)
 
5 
 
 
 
 
Issuance of common stock under employee stock purchase plan
3 
 
 
3 
 
 
Common stock dividends
(209)
 
 
 
(209)
 
Stock Repurchased During Period, Shares
 
(16)
 
 
 
 
Stock Repurchased During Period, Value
(781)
(1)
 
(201)
(579)
 
Ending balances at Jul. 29, 2017
$ 4,347 
$ 30 
$ 0 
$ 0 
$ 3,996 
$ 321 
Ending balances (in shares) at Jul. 29, 2017
 
300 
 
 
 
 
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (PARENTHETICAL)
3 Months Ended 6 Months Ended
Jul. 29, 2017
Jul. 30, 2016
Jul. 29, 2017
Jul. 30, 2016
Statement of Stockholders' Equity [Abstract]
 
 
 
 
Dividends declared per common share (in dollars per share)
$ 0.34 
$ 0.28 
$ 0.68 
$ 1.01 
Basis of Presentation (Notes)
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 higher 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 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 January 28, 2017. The first six months of fiscal 2018 and fiscal 2017 included 26 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 July 30, 2017, through the date the financial statements were issued, for material subsequent events requiring recognition or disclosure. No such events were identified for this period.

Unadopted Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 current 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 current guidance. It also requires significantly expanded disclosures regarding revenues.

Based on our analysis thus far, we believe the impact of adopting the new guidance will be immaterial to our annual and interim financial statements. The primary impacts we have identified thus far are:

•
Minor changes to the timing of recognition of revenues related to gift cards and loyalty programs;
•
Changes to certain immaterial revenues that are currently reported on a gross basis, to be reported on a net basis (with no change in timing of recognition) with consequently no impacts to earnings; and
•
The balance sheet presentation of our sales returns reserve, which will be shown as a separate asset and liability versus the current net presentation.

In addition, we expect adoption to lead to increased footnote disclosures, particularly with regard to revenue related balance sheet accounts and revenue by channel and category. We also expect the adoption and consequent changes to our procedures and methodologies to require adjustments to our internal controls over financial reporting.

As interpretations of the new rules continue to evolve, we will continue to monitor developments and expect to finalize our conclusions in the fourth quarter of fiscal 2018. We plan to adopt this standard in the first quarter of our fiscal 2019. Providing we ultimately conclude that the impacts of adoption are immaterial, we would expect to use the modified retrospective method. Under this method, we would recognize the cumulative effect of the changes in retained earnings at the date of adoption, but would not restate prior periods.

In February 2016, the FASB issued ASU 2016-02, Leases. The new guidance was issued to increase transparency and comparability among companies by requiring most leases to be included on the balance sheet and by expanding disclosure requirements. Based on the effective dates, we expect to adopt the new guidance in the first quarter of fiscal 2020 using the modified retrospective method. While we expect adoption to lead to a material increase in the assets and liabilities recorded on our balance sheet and increase 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 2018, we adopted the following ASUs:

•
ASU 2015-11, Inventory: Simplifying the Measurement of Inventory. The adoption did not have a material impact on our results of operations, cash flows or financial position.

•
ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting. Excess tax benefits and tax deficiencies are now recognized in our provision for income taxes as a discrete event rather than as a component of stockholders’ equity. In addition, we elected to account for forfeitures as they occur. The cumulative effect of this policy change amounted to $12 million, net of tax, and was recorded as a reduction to our retained earnings opening balance. Finally, we elected to present the Condensed Consolidated Statements of Cash Flows on a retrospective transition method, and prior periods have been adjusted to present excess tax benefits as cash flows from operating activities.

•
ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments, and ASU 2016-18, Statement of Cash Flows: Restricted Cash. The retrospective adoption increased our beginning and ending cash balance within our statement of cash flows. The adoption had no other material impacts to our cash flow statement and had no impact on our results of operations or financial position.

The following table reconciles the Condensed Consolidated Statement of Cash Flows line items impacted by the adoption of these standards at July 30, 2016:
 
July 30, 2016 Reported
 
ASU 2016-09 Adjustment
 
ASU 2016-15 Adjustment
 
ASU 2016-18 Adjustment
 
July 30, 2016 Adjusted
Operating activities
 
 
 
 
 
 
 
 
 
Other, net
$
(38
)
 
$
9

 
$
—

 
$
—

 
$
(29
)
Changes in operating assets and liabilities:
 
 
 
 
 
 
 
 
 
Receivables
240

 
—

 
(1
)
 
—

 
239

Merchandise inventories
160

 
—

 
1

 
—

 
161

Total cash provided by operating activities
1,288

 
9

 
—

 
—

 
1,297

 
 
 
 
 
 
 
 
 
 
Investing activities
 
 
 
 
 
 
 
 
 
Change in restricted assets
(4
)
 
—

 
—

 
4

 
—

Total cash used in investing activities
(495
)
 
—

 
—

 
4

 
(491
)
 
 
 
 
 
 
 
 
 
 
Financing activities
 
 
 
 
 
 
 
 
 
Other, net
17

 
(9
)
 
—

 
—

 
8

Total cash used in financing activities
(933
)
 
(9
)
 
—

 
—

 
(942
)
 
 
 
 
 
 
 
 
 
 
Decrease in cash, cash equivalents and restricted cash
(115
)
 
—

 
—

 
4

 
(111
)
Cash, cash equivalents and restricted cash at beginning of period
1,976

 
—

 
—

 
185

 
2,161

Cash, cash equivalents and restricted cash at end of period
$
1,861

 
$
—

 
$
—

 
$
189

 
$
2,050



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 Sheet to the total shown in the Condensed Consolidated Statement of Cash Flows:
 
July 29, 2017
 
January 28, 2017
 
July 30, 2016
Cash and cash equivalents
$
1,365

 
$
2,240

 
$
1,861

Restricted cash included in Other current assets
196

 
193

 
189

Total cash, cash equivalents and restricted cash
$
1,561

 
$
2,433

 
$
2,050


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
Discontinued Operations

Discontinued operations are primarily comprised of Jiangsu Five Star Appliance Co., Limited ("Five Star") within our International segment. In February 2015, we completed the sale of Five Star. Following the sale, we continued to hold as available for sale one retail property in Shanghai, China. In May 2016, the second quarter of fiscal 2017, we completed the sale of the property and recognized a gain, net of income tax, of $16 million. The gain on sale of the property is included in Other, net within the operating activities section of the Condensed Consolidated Statements of Cash Flows.

The aggregate financial results of discontinued operations were as follows ($ in millions):
 
Three Months Ended
 
Six Months Ended
 
July 29, 2017
 
July 30, 2016
 
July 29, 2017
 
July 30, 2016
Gain from discontinued operations before income tax expense
$
—

 
$
26

 
$
—

 
$
26

Income tax expense
—

 
(10
)
 
—

 
(7
)
Net gain from discontinued operations
$
—

 
$
16

 
$
—

 
$
19

Fair Value Measurements (Notes)
Fair Value Measurements
Fair Value Measurements
 
Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. To measure fair value, we use a three-tier valuation hierarchy based upon observable and non-observable inputs:
 
Level 1 — Unadjusted quoted prices that are available in active markets for the identical assets or liabilities at the measurement date.
 
Level 2 — Significant other observable inputs available at the measurement date, other than quoted prices included in Level 1, either directly or indirectly, including:
 
•
Quoted prices for similar assets or liabilities in active markets;
•
Quoted prices for identical or similar assets or liabilities in non-active markets;
•
Inputs other than quoted prices that are observable for the asset or liability; and
•
Inputs that are derived principally from or corroborated by other observable market data.
 
Level 3 — Significant unobservable inputs that cannot be corroborated by observable market data and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions.
 
Assets and Liabilities Measured at Fair Value on a Recurring Basis
 
The fair value hierarchy requires the use of observable market data when available. In instances 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, by level within the fair value hierarchy, our financial assets and liabilities that were accounted for at fair value on a recurring basis at July 29, 2017, January 28, 2017, and July 30, 2016, according to the valuation techniques we used to determine their fair values ($ in millions):
 
 Fair Value Hierarchy
 
Fair Value at
 
 
July 29, 2017
 
January 28, 2017
 
July 30, 2016
ASSETS
 
 
 

 
 

 
 

Cash and cash equivalents
 
 
 

 
 

 
 

Money market funds
Level 1
 
$
175

 
$
290

 
$
87

Commercial paper
Level 2
 
60

 
—

 
—

Time deposits
Level 2
 
16

 
15

 
169

Short-term investments
 
 
 
 
 
 
 
Corporate bonds
Level 2
 
—

 
—

 
6

Commercial paper
Level 2
 
299

 
349

 
170

Time deposits
Level 2
 
1,826

 
1,332

 
1,414

Other current assets
 
 
 

 
 
 
 
Money market funds
Level 1
 
2

 
7

 
—

Commercial paper
Level 2
 
60

 
60

 
60

Foreign currency derivative instruments
Level 2
 
—

 
2

 
1

Time deposits
Level 2
 
101

 
100

 
79

Other assets
 
 
 
 
 
 
 
Marketable securities that fund deferred compensation
Level 1
 
97

 
96

 
95

Interest rate swap derivative instruments
Level 2
 
16

 
13

 
27

Auction rate securities
Level 3
 
—

 
—

 
2

 
 
 
 
 
 
 
 
LIABILITIES
 
 
 

 
 

 
 

Accrued liabilities
 
 
 

 
 

 
 

Foreign currency derivative instruments
Level 2
 
15

 
3

 
5


There were no transfers between levels during the periods presented. During the third quarter of fiscal 2017, our remaining investments in auction rate securities ("ARS") were called at par, which resulted in proceeds of $2 million and no realized gain or loss. As of January 28, 2017, we had no items measured at fair value on a recurring basis that used significant unobservable inputs (Level 3). For the three and six months ended July 29, 2017, and July 30, 2016, there were no changes in the beginning and ending balances of items measured at fair value on a recurring basis that used significant unobservable inputs (Level 3).

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.

Corporate bonds. Our corporate bond investments were measured at fair value using quoted market prices. They were classified as Level 2 as they trade in a non-active market for which bond prices are readily available.
 
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.

Marketable securities that fund deferred compensation. The assets that fund our deferred compensation consist of investments in mutual funds. 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.

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.
 
Auction rate securities. Our investments in ARS were classified as Level 3 as quoted prices were unavailable. Due to limited market information, we utilized a discounted cash flow ("DCF") model to derive an estimate of fair value. The assumptions we used in preparing the DCF model included estimates with respect to the amount and timing of future interest and principal payments, forward projections of the interest rate benchmarks, the probability of full repayment of the principal considering the credit quality and guarantees in place and the rate of return required by investors to own such securities given the current liquidity risk associated with ARS.
 
Assets and Liabilities that are 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 Selling, general and administrative expenses and Restructuring charges in our Condensed Consolidated Statements of Earnings for non-restructuring and restructuring charges, respectively.

The following table summarizes the fair value remeasurements for property and equipment impairments recorded during the three and six months ended July 29, 2017, and July 30, 2016 ($ in millions):
 
Impairments
 
Remaining Net Carrying Value(1)
 
Three Months Ended
 
Six Months Ended
 
 
 
 
 
July 29, 2017
 
July 30, 2016
 
July 29, 2017
 
July 30, 2016
 
July 29, 2017
 
July 30, 2016
Property and equipment (non-restructuring)
$
1

 
$
3

 
$
6

 
$
8

 
$
—

 
$
—

Property and equipment (restructuring)(2)
—

 
—

 
—

 
7

 
—

 
—

Total
$
1

 
$
3

 
$
6

 
$
15

 
$
—

 
$
—

(1)
Remaining net carrying value approximates fair value. Because assets subject to long-lived asset impairment are not measured at fair value on a recurring basis, certain fair value measurements presented in the table may reflect values at earlier measurement dates and may no longer represent the fair values at July 29, 2017, and July 30, 2016.
(2)
See Note 5, Restructuring Charges, for additional information.

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 DCF model to estimate the present value of net cash flows that the asset or asset group was expected to generate. The key inputs to the DCF model generally included our forecasts of net cash generated from revenue, expenses and other significant cash outflows, such as capital expenditures, as well as an appropriate discount rate. In the case of assets for which the impairment was the result of restructuring activities, no future cash flows have been assumed as the assets will cease to be used and expected sale values are nominal.

Fair Value of Financial Instruments

Our financial instruments, other than those presented in the disclosures above, include cash, receivables, other investments, accounts payable, other payables and 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 6, Debt, for information about the fair value of our long-term debt.
Goodwill and Intangible Assets (Notes)
Goodwill and Intangible Assets
Goodwill and Intangible Assets
 
The following table provides the carrying values of goodwill and indefinite-lived tradenames for the Domestic segment ($ in millions):
 
July 29, 2017
 
January 28, 2017
 
July 30, 2016
Goodwill
$
425

 
$
425

 
$
425

Intangible assets included in Other assets
18

 
18

 
18



The following table provides the gross carrying amount of goodwill and cumulative goodwill impairment ($ in millions):
 
July 29, 2017
 
January 28, 2017
 
July 30, 2016
 
Gross Carrying
Amount
 
Cumulative
Impairment
 
Gross Carrying
Amount
 
Cumulative
Impairment
 
Gross Carrying
Amount
 
Cumulative
Impairment
Goodwill
$
1,100

 
$
675

 
$
1,100

 
$
675

 
$
1,100

 
$
675



Restructuring Charges (Notes)
Restructuring Charges
Restructuring Charges

Charges incurred in the three and six months ended July 29, 2017, and July 30, 2016, for our restructuring activities were as follows ($ in millions):
 
Three Months Ended
 
Six Months Ended
 
July 29, 2017
 
July 30, 2016
 
July 29, 2017
 
July 30, 2016
Renew Blue Phase 2
$
—

 
$
(2
)
 
$
—

 
$
25

Canadian brand consolidation
(1
)
 
2

 
(1
)
 
1

Renew Blue(1)
3

 
—

 
3

 
3

Other restructuring activities(2)
—

 
—

 
—

 
—

Total restructuring charges
$
2

 
$
—

 
$
2

 
$
29


(1)
Represents activity related to our remaining vacant space liability, primarily in our International segment, for our Renew Blue restructuring program, which began in the fourth quarter of fiscal 2013. We may continue to incur immaterial adjustments to the liability for changes in sublease assumptions or potential lease buyouts. In addition, lease payments for vacated stores will continue until leases expire or are terminated. The remaining vacant space liability was $12 million at July 29, 2017.
(2)
Represents activity related to our remaining vacant space liability for U.S. large-format store closures in fiscal 2013. We may continue to incur immaterial adjustments to the liability for changes in sublease assumptions or potential lease buyouts. In addition, lease payments for vacated stores will continue until leases expire or are terminated. The remaining vacant space liability was $8 million at July 29, 2017.

Renew Blue Phase 2

In the first quarter of fiscal 2017, we took several strategic actions to eliminate and simplify certain components of our operations and restructure certain field and corporate teams as part of our Renew Blue Phase 2 plan. No charges were incurred in the three and six months ended July 29, 2017. We recorded a benefit of $2 million and incurred charges of $25 million related to Phase 2 of the plan during the three and six months ended July 30, 2016, respectively. The benefit related to lower employee termination benefits and the charges incurred primarily consisted of employee termination benefits and property and equipment impairments.

All restructuring charges related to this plan are from continuing operations and are presented in Restructuring charges in our Condensed Consolidated Statements of Earnings.

The composition of the restructuring charges we incurred for Renew Blue Phase 2 during the three and six months ended July 29, 2017, and July 30, 2016, as well as the cumulative amount incurred through July 29, 2017, was as follows ($ in millions):
 
Domestic
 
Three Months Ended
 
Six Months Ended
 
Cumulative Amount
 
July 29, 2017
 
July 30, 2016
 
July 29, 2017
 
July 30, 2016
 
July 29, 2017
Property and equipment impairments
$
—

 
$
—

 
$
—

 
$
7

 
$
8

Termination benefits
—

 
(2
)
 
—

 
18

 
18

Total restructuring charges
$
—

 
$
(2
)
 
$
—

 
$
25

 
$
26



As of July 29, 2017, and January 28, 2017, there was no restructuring accrual balance. The restructuring accrual activity related to termination benefits was as follows for the six months ended July 30, 2016 ($ in millions):
 
Termination
Benefits
Balances at January 30, 2016
$
—

Charges
19

Cash payments
(15
)
Adjustments(1)
(2
)
Balances at July 30, 2016
$
2


(1)
Adjustments to termination benefits represent changes in retention assumptions.

Canadian Brand Consolidation

In the first quarter of fiscal 2016, we consolidated the Future Shop and Best Buy stores and websites in Canada under the Best Buy brand. This resulted in the permanent closure of 66 Future Shop stores and the conversion of the remaining 65 Future Shop stores to the Best Buy brand.

All restructuring charges related to this plan are from continuing operations and are presented in Restructuring charges in our Condensed Consolidated Statements of Earnings.

The composition of total restructuring charges we incurred for the Canadian brand consolidation in the three and six months ended July 29, 2017, and July 30, 2016, as well as the cumulative amount incurred through July 29, 2017, was as follows ($ in millions):
 
International
 
Three Months Ended
 
Six Months Ended
 
Cumulative Amount
 
July 29, 2017
 
July 30, 2016
 
July 29, 2017
 
July 30, 2016
 
July 29, 2017
Inventory write-downs
$
—

 
$
—

 
$
—

 
$
—

 
$
3

Property and equipment impairments
—

 
—

 
—

 
—

 
30

Tradename impairment
—

 
—

 
—

 
—

 
40

Termination benefits
—

 
—

 
—

 
—

 
25

Facility closure and other costs
(1
)
 
2

 
(1
)
 
1

 
104

Total restructuring charges
$
(1
)
 
$
2

 
$
(1
)
 
$
1

 
$
202



The following tables summarize our restructuring accrual activity during the six months ended July 29, 2017, and July 30, 2016, related to termination benefits and facility closure and other costs associated with the Canadian brand consolidation ($ in millions):
 
Termination
Benefits
 
Facility
Closure and
Other Costs
 
Total
Balances at January 28, 2017
$
—

 
$
34

 
$
34

Charges
—

 
—

 
—

Cash payments
—

 
(10
)
 
(10
)
Adjustments(1)
—

 
(1
)
 
(1
)
Changes in foreign currency exchange rates
—

 
1

 
1

Balances at July 29, 2017
$
—

 
$
24

 
$
24

 
 
 
 
 
 
Balances at January 30, 2016
$
2

 
$
64

 
$
66

Charges
—

 
1

 
1

Cash payments
(1
)
 
(18
)
 
(19
)
Adjustments(1)
—

 
(1
)
 
(1
)
Changes in foreign currency exchange rates
—

 
4

 
4

Balances at July 30, 2016
$
1

 
$
50

 
$
51


(1)
Adjustments to facility closure and other costs represent changes in sublease assumptions.
Debt (Notes)
Debt
Debt

Long-term debt consisted of the following ($ in millions):
 
July 29, 2017
 
January 28, 2017
 
July 30, 2016
2018 Notes
$
500

 
$
500

 
$
500

2021 Notes
650

 
650

 
650

Interest rate swap valuation adjustments
16

 
13

 
27

Subtotal
1,166

 
1,163

 
1,177

Debt discounts and issuance costs
(4
)
 
(5
)
 
(6
)
Financing lease obligations
166

 
177

 
181

Capital lease obligations
26

 
30

 
32

Total long-term debt
1,354

 
1,365

 
1,384

Less: current portion
44

 
44

 
43

Total long-term debt, less current portion
$
1,310

 
$
1,321

 
$
1,341

 

The fair value of total long-term debt, excluding debt discounts and issuance costs and financing and capital lease obligations, approximated $1,242 million, $1,240 million and $1,271 million at July 29, 2017, January 28, 2017, and July 30, 2016, respectively, based primarily on the market prices quoted from external sources, compared with carrying values of $1,166 million, $1,163 million and $1,177 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.

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 January 28, 2017, for additional information regarding the terms of our debt facilities, debt instruments and other obligations.
Derivative Instruments (Notes)
Derivative Instruments
Derivative Instruments

We manage our economic and transaction exposure to certain risks through the use of foreign currency and interest rate swap derivative instruments. 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 major financial institutions as our counterparties.

We record all derivative instruments on our Condensed Consolidated Balance Sheets at fair value and evaluate hedge effectiveness prospectively and 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 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 ineffective portion of the gain or loss, if any, in net earnings.

Interest Rate Swaps

We use "receive fixed-rate, pay variable-rate" interest rate swaps to mitigate the effect of interest rate fluctuations on our 2018 Notes and a portion of our 2021 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 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 and on certain forecast inventory purchases denominated in non-functional currencies. The contracts generally have terms of up to 12 months. These derivative instruments are not designated as hedging relationships, and, therefore, we record gains and losses on these contracts directly to net earnings.

Summary of Derivative Balances

The following table presents the gross fair values for outstanding derivative instruments and the corresponding classification at July 29, 2017, January 28, 2017, and July 30, 2016 ($ in millions):
 
July 29, 2017
 
January 28, 2017
 
July 30, 2016
 
Assets
 
Liabilities
 
Assets
 
Liabilities
 
Assets
 
Liabilities
Derivatives designated as net investment hedges(1)
$
—

 
$
13

 
$
2

 
$
2

 
$
1

 
$
5

Derivatives designated as interest rate swaps(2)
16

 
—

 
13

 
—

 
27

 
—

No hedge designation (foreign exchange forward contracts)(1)
—

 
2

 
—

 
1

 
—

 
—

Total
$
16

 
$
15

 
$
15

 
$
3

 
$
28

 
$
5

(1)
The fair value is recorded in Other current assets or Accrued liabilities.
(2)
The fair value is recorded in Other assets or Long-term liabilities.

The following table presents the effects of derivative instruments by contract type on other comprehensive income ("OCI") and on our Condensed Consolidated Statements of Earnings for the three and six months ended July 29, 2017, and July 30, 2016 ($ in millions):
 
Three Months Ended
 
Six Months Ended
 
July 29, 2017
 
July 30, 2016
 
July 29, 2017
 
July 30, 2016
Derivatives designated as net investment hedges
 
 
 
 
 
 
 
Pre-tax gain (loss) recognized in OCI
$
(19
)
 
$
8

 
$
(11
)
 
$
(16
)
 
 
 
 
 
 
 
 
Derivatives designated as interest rate swaps
 
 
 
 
 
 
 
Gain (loss) recognized within Interest expense
 
 
 
 
 
 
 
Interest rate swap gain
$
14

 
$
12

 
$
3

 
$
2

Long-term debt loss
(14
)
 
(12
)
 
(3
)
 
(2
)
Net impact
$
—

 
$
—

 
$
—

 
$
—

 
 
 
 
 
 
 
 
No hedge designation (foreign exchange forward contracts)
 
 
 
 
 
 
Gain (loss) recognized within Selling, general and administrative expenses
$
(4
)
 
$
2

 
$
(3
)
 
$
(3
)


The following table presents the notional amounts of our derivative instruments at July 29, 2017, January 28, 2017, and July 30, 2016 ($ in millions):
 
July 29, 2017
 
January 28, 2017
 
July 30, 2016
Derivatives designated as net investment hedges
$
205

 
$
205

 
$
203

Derivatives designated as interest rate swaps
1,000

 
750

 
750

No hedge designation (foreign exchange forward contracts)
48

 
43

 
41

Total
$
1,253

 
$
998

 
$
994

Earnings per Share (Notes)
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 six months ended July 29, 2017, and July 30, 2016 ($ and shares in millions, except per share amounts):
 
Three Months Ended
 
Six Months Ended
 
July 29, 2017
 
July 30, 2016
 
July 29, 2017
 
July 30, 2016
Numerator
 

 
 

 
 
 
 
Net earnings from continuing operations
$
209

 
$
182

 
$
397

 
$
408

 
 
 
 
 
 
 
 
Denominator
 
 
 
 
 
 
 
Weighted-average common shares outstanding
304.1

 
320.8

 
306.7

 
322.2

Dilutive effect of stock compensation plan awards
6.7

 
2.1

 
6.3

 
2.6

Weighted-average common shares outstanding, assuming dilution
310.8

 
322.9

 
313.0

 
324.8

 
 
 
 
 
 
 
 
Net earnings per share from continuing operations
 
 
 
 
 
 
 
Basic
$
0.69

 
$
0.57

 
$
1.29

 
$
1.27

Diluted
$
0.67

 
$
0.56

 
$
1.27

 
$
1.26



The computation of weighted-average common shares outstanding, assuming dilution, excluded options to purchase zero shares and 8.8 million shares of common stock for the three months ended July 29, 2017, and July 30, 2016, respectively, and options to purchase zero shares and 8.8 million shares of common stock for the six months ended July 29, 2017, and July 30, 2016, respectively. These amounts were excluded as the options’ exercise prices were greater than the average market price of our common stock for the periods presented, and, therefore, the effect would be anti-dilutive (i.e., including such options would result in higher earnings per share).
Comprehensive Income (Notes)
Comprehensive Income
Comprehensive Income
 
The following tables provide a reconciliation of the components of accumulated other comprehensive income, net of tax, attributable to Best Buy Co., Inc. for the three and six months ended July 29, 2017, and July 30, 2016 ($ in millions):
 
Foreign Currency Translation
Balances at April 29, 2017
$
266

Foreign currency translation adjustments
55

Balances at July 29, 2017
$
321

 
 
Balances at January 28, 2017
$
279

Foreign currency translation adjustments
42

Balances at July 29, 2017
$
321

 
 
Balances at April 30, 2016
$
316

Foreign currency translation adjustments
(20
)
Balances at July 30, 2016
$
296

 
 
Balances at January 30, 2016
$
271

Foreign currency translation adjustments
25

Balances at July 30, 2016
$
296



The gains and losses on our net investment hedges, which are included in foreign currency translation adjustments, were not material for the periods presented. There is generally no tax impact related to foreign currency translation adjustments, as the earnings are considered permanently reinvested.
Repurchase of Common Stock (Notes)
Repurchase of Common Stock
Repurchase of Common Stock

Our Board of Directors authorized a $5.0 billion share repurchase program in February 2017. The program, which became effective on February 27, 2017, terminated and replaced a $5.0 billion share repurchase program authorized by our Board of Directors in June 2011. There is no expiration governing the period over which we can make our share repurchases under the February 2017 $5.0 billion share repurchase program.

The following table presents information regarding the shares we repurchased during the three and six months ended July 29, 2017, and July 30, 2016 ($ and shares in millions, except per share amounts):
 
Three Months Ended
 
Six Months Ended
 
July 29, 2017
 
July 30, 2016
 
July 29, 2017
 
July 30, 2016
Total cost of shares repurchased
 
 
 
 
 
 
 
Open market(1)
$
397

 
$
221

 
$
781

 
$
277

Settlement of January 2016 ASR(2)
—

 
—

 
—

 
45

Total
$
397

 
$
221

 
$
781

 
$
322

 
 
 
 
 
 
 
 
Average price per share
 
 
 
 
 
 
 
Open market
$
55.07

 
$
30.65

 
$
50.38

 
$
30.98

Settlement of January 2016 ASR(2)
$
—

 
$
—

 
$
—

 
$
28.55

Average
$
55.07

 
$
30.65

 
$
50.38

 
$
30.62

 
 
 
 
 
 
 
 
Number of shares repurchased and retired
 
 
 
 
 
 
 
Open market(1)
7.2

 
7.2

 
15.5

 
8.9

Settlement of January 2016 ASR(2)
—

 
—

 
—

 
1.6

Total
7.2

 
7.2

 
15.5

 
10.5

(1)
As of July 29, 2017, $18 million, or 0.3 million shares, in trades remained unsettled. As of July 30, 2016, $6 million, or 0.2 million shares, in trades remained unsettled. The liability for unsettled trades is included in Accrued liabilities in the Condensed Consolidated Balance Sheets.
(2)
See Note 7, Shareholders' Equity, in the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended January 28, 2017, for additional information regarding the January 2016 ASR.

Approximately 4.3 billion shares remained available for additional purchases under the February 2017 share repurchase program as of July 29, 2017. Repurchased shares are retired and constitute authorized but unissued shares.
Segments (Notes)
Segment Reporting
Segments
 
Our chief operating decision maker ("CODM") is our Chief Executive Officer. Our business is organized into two segments: Domestic (which is comprised of all operations within the U.S. and its districts and territories) and International (which is comprised of all operations within Canada and Mexico). Our CODM has ultimate responsibility for enterprise decisions. Our CODM determines, in particular, resource allocation for, and monitors 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 as those described in Note 1, Summary of Significant Accounting Policies, in the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended January 28, 2017.

Revenue by reportable segment was as follows ($ in millions):
 
Three Months Ended
 
Six Months Ended
 
July 29, 2017
 
July 30, 2016
 
July 29, 2017
 
July 30, 2016
Domestic
$
8,272

 
$
7,889

 
$
16,184

 
$
15,718

International
668

 
644

 
1,284

 
1,258

Total revenue
$
8,940

 
$
8,533

 
$
17,468

 
$
16,976



Operating income by reportable segment and the reconciliation to earnings from continuing operations before income tax expense were as follows ($ in millions):
 
Three Months Ended
 
Six Months Ended
 
July 29, 2017
 
July 30, 2016
 
July 29, 2017
 
July 30, 2016
Domestic
$
316

 
$
289

 
$
614

 
$
661

International
5

 
—

 
7

 
—

Total operating income
321

 
289

 
621

 
661

Other income (expense)
 
 
 
 
 
 
 
Gain on sale of investments
—

 
—

 
—

 
2

Investment income and other
7

 
8

 
18

 
14

Interest expense
(18
)
 
(18
)
 
(37
)
 
(38
)
Earnings from continuing operations before income tax expense
$
310

 
$
279

 
$
602

 
$
639


 
Assets by reportable segment were as follows ($ in millions):
 
July 29, 2017
 
January 28, 2017
 
July 30, 2016
Domestic
$
11,972

 
$
12,496

 
$
11,968

International
1,472

 
1,360

 
1,286

Total assets
$
13,444

 
$
13,856

 
$
13,254

Contingencies (Notes)
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 in 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. We filed a motion to dismiss the consolidated complaint in September 2011, and in March 2012, subsequent to the end of fiscal 2012, the court issued a decision dismissing the action with prejudice. In April 2012, the plaintiffs filed a motion to alter or amend the court's decision on our motion to dismiss. In October 2012, the court granted plaintiff's motion to alter or amend the court's decision on our motion to dismiss in part by vacating such decision and giving plaintiff leave to file an amended complaint, which plaintiff did in October 2012. We filed a motion to dismiss the amended complaint in November 2012 and all responsive pleadings were filed in December 2012. A hearing was held on April 26, 2013. On August 5, 2013, the court issued an order granting our motion to dismiss in part and, contrary to its March 2012 order, denying the motion to dismiss in part, holding that certain of the statements alleged to have been made were not forward-looking statements and therefore were not subject to the “safe-harbor” provisions of the Private Securities Litigation Reform Act. 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. In October 2016, IBEW advised the trial court it will not seek review by the Supreme Court. On June 23, 2017, the trial court denied Plantiff's request to file a new Motion for Class Certification. 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 of Directors 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 (Tables)
Reconciliation of recast condensed consolidated statement of cash flows 
The following table reconciles the Condensed Consolidated Statement of Cash Flows line items impacted by the adoption of these standards at July 30, 2016:
 
July 30, 2016 Reported
 
ASU 2016-09 Adjustment
 
ASU 2016-15 Adjustment
 
ASU 2016-18 Adjustment
 
July 30, 2016 Adjusted
Operating activities
 
 
 
 
 
 
 
 
 
Other, net
$
(38
)
 
$
9

 
$
—

 
$
—

 
$
(29
)
Changes in operating assets and liabilities:
 
 
 
 
 
 
 
 
 
Receivables
240

 
—

 
(1
)
 
—

 
239

Merchandise inventories
160

 
—

 
1

 
—

 
161

Total cash provided by operating activities
1,288

 
9

 
—

 
—

 
1,297

 
 
 
 
 
 
 
 
 
 
Investing activities
 
 
 
 
 
 
 
 
 
Change in restricted assets
(4
)
 
—

 
—

 
4

 
—

Total cash used in investing activities
(495
)
 
—

 
—

 
4

 
(491
)
 
 
 
 
 
 
 
 
 
 
Financing activities
 
 
 
 
 
 
 
 
 
Other, net
17

 
(9
)
 
—

 
—

 
8

Total cash used in financing activities
(933
)
 
(9
)
 
—

 
—

 
(942
)
 
 
 
 
 
 
 
 
 
 
Decrease in cash, cash equivalents and restricted cash
(115
)
 
—

 
—

 
4

 
(111
)
Cash, cash equivalents and restricted cash at beginning of period
1,976

 
—

 
—

 
185

 
2,161

Cash, cash equivalents and restricted cash at end of period
$
1,861

 
$
—

 
$
—

 
$
189

 
$
2,050

Schedule of 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 Sheet to the total shown in the Condensed Consolidated Statement of Cash Flows:
 
July 29, 2017
 
January 28, 2017
 
July 30, 2016
Cash and cash equivalents
$
1,365

 
$
2,240

 
$
1,861

Restricted cash included in Other current assets
196

 
193

 
189

Total cash, cash equivalents and restricted cash
$
1,561

 
$
2,433

 
$
2,050


Discontinued Operations (Tables)
Financial results of discontinued operations
The aggregate financial results of discontinued operations were as follows ($ in millions):
 
Three Months Ended
 
Six Months Ended
 
July 29, 2017
 
July 30, 2016
 
July 29, 2017
 
July 30, 2016
Gain from discontinued operations before income tax expense
$
—

 
$
26

 
$
—

 
$
26

Income tax expense
—

 
(10
)
 
—

 
(7
)
Net gain from discontinued operations
$
—

 
$
16

 
$
—

 
$
19

Fair Value Measurements (Tables)
Fair Value, Assets and Liabilities Measured on Recurring Basis 
The following table sets forth, by level within the fair value hierarchy, our financial assets and liabilities that were accounted for at fair value on a recurring basis at July 29, 2017, January 28, 2017, and July 30, 2016, according to the valuation techniques we used to determine their fair values ($ in millions):
 
 Fair Value Hierarchy
 
Fair Value at
 
 
July 29, 2017
 
January 28, 2017
 
July 30, 2016
ASSETS
 
 
 

 
 

 
 

Cash and cash equivalents
 
 
 

 
 

 
 

Money market funds
Level 1
 
$
175

 
$
290

 
$
87

Commercial paper
Level 2
 
60

 
—

 
—

Time deposits
Level 2
 
16

 
15

 
169

Short-term investments
 
 
 
 
 
 
 
Corporate bonds
Level 2
 
—

 
—

 
6

Commercial paper
Level 2
 
299

 
349

 
170

Time deposits
Level 2
 
1,826

 
1,332

 
1,414

Other current assets
 
 
 

 
 
 
 
Money market funds
Level 1
 
2

 
7

 
—

Commercial paper
Level 2
 
60

 
60

 
60

Foreign currency derivative instruments
Level 2
 
—

 
2

 
1

Time deposits
Level 2
 
101

 
100

 
79

Other assets
 
 
 
 
 
 
 
Marketable securities that fund deferred compensation
Level 1
 
97

 
96

 
95

Interest rate swap derivative instruments
Level 2
 
16

 
13

 
27

Auction rate securities
Level 3
 
—

 
—

 
2

 
 
 
 
 
 
 
 
LIABILITIES
 
 
 

 
 

 
 

Accrued liabilities
 
 
 

 
 

 
 

Foreign currency derivative instruments
Level 2
 
15

 
3

 
5


Fair Value, Assets and Liabilities Measured on Nonrecurring Basis 
The following table summarizes the fair value remeasurements for property and equipment impairments recorded during the three and six months ended July 29, 2017, and July 30, 2016 ($ in millions):
 
Impairments
 
Remaining Net Carrying Value(1)
 
Three Months Ended
 
Six Months Ended
 
 
 
 
 
July 29, 2017
 
July 30, 2016
 
July 29, 2017
 
July 30, 2016
 
July 29, 2017
 
July 30, 2016
Property and equipment (non-restructuring)
$
1

 
$
3

 
$
6

 
$
8

 
$
—

 
$
—

Property and equipment (restructuring)(2)
—

 
—

 
—

 
7

 
—

 
—

Total
$
1

 
$
3

 
$
6

 
$
15

 
$
—

 
$
—

(1)
Remaining net carrying value approximates fair value. Because assets subject to long-lived asset impairment are not measured at fair value on a recurring basis, certain fair value measurements presented in the table may reflect values at earlier measurement dates and may no longer represent the fair values at July 29, 2017, and July 30, 2016.
(2)
See Note 5, Restructuring Charges, for additional information.

Goodwill and Intangible Assets (Tables)
Schedule of Intangible Assets and Goodwill 
The following table provides the carrying values of goodwill and indefinite-lived tradenames for the Domestic segment ($ in millions):
 
July 29, 2017
 
January 28, 2017
 
July 30, 2016
Goodwill
$
425

 
$
425

 
$
425

Intangible assets included in Other assets
18

 
18

 
18

Schedule of Gross Amount of Goodwill and Accumulated Goodwill Impairment Losses 
The following table provides the gross carrying amount of goodwill and cumulative goodwill impairment ($ in millions):
 
July 29, 2017
 
January 28, 2017
 
July 30, 2016
 
Gross Carrying
Amount
 
Cumulative
Impairment
 
Gross Carrying
Amount
 
Cumulative
Impairment
 
Gross Carrying
Amount
 
Cumulative
Impairment
Goodwill
$
1,100

 
$
675

 
$
1,100

 
$
675

 
$
1,100

 
$
675



Restructuring Charges (Tables)
Composition of Restructuring Charges 
Charges incurred in the three and six months ended July 29, 2017, and July 30, 2016, for our restructuring activities were as follows ($ in millions):
 
Three Months Ended
 
Six Months Ended
 
July 29, 2017
 
July 30, 2016
 
July 29, 2017
 
July 30, 2016
Renew Blue Phase 2
$
—

 
$
(2
)
 
$
—

 
$
25

Canadian brand consolidation
(1
)
 
2

 
(1
)
 
1

Renew Blue(1)
3

 
—

 
3

 
3

Other restructuring activities(2)
—

 
—

 
—

 
—

Total restructuring charges
$
2

 
$
—

 
$
2

 
$
29


(1)
Represents activity related to our remaining vacant space liability, primarily in our International segment, for our Renew Blue restructuring program, which began in the fourth quarter of fiscal 2013. We may continue to incur immaterial adjustments to the liability for changes in sublease assumptions or potential lease buyouts. In addition, lease payments for vacated stores will continue until leases expire or are terminated. The remaining vacant space liability was $12 million at July 29, 2017.
(2)
Represents activity related to our remaining vacant space liability for U.S. large-format store closures in fiscal 2013. We may continue to incur immaterial adjustments to the liability for changes in sublease assumptions or potential lease buyouts. In addition, lease payments for vacated stores will continue until leases expire or are terminated. The remaining vacant space liability was $8 million at July 29, 2017.
Composition of Restructuring Charges 
The composition of the restructuring charges we incurred for Renew Blue Phase 2 during the three and six months ended July 29, 2017, and July 30, 2016, as well as the cumulative amount incurred through July 29, 2017, was as follows ($ in millions):
 
Domestic
 
Three Months Ended
 
Six Months Ended
 
Cumulative Amount
 
July 29, 2017
 
July 30, 2016
 
July 29, 2017
 
July 30, 2016
 
July 29, 2017
Property and equipment impairments
$
—

 
$
—

 
$
—

 
$
7

 
$
8

Termination benefits
—

 
(2
)
 
—

 
18

 
18

Total restructuring charges
$
—

 
$
(2
)
 
$
—

 
$
25

 
$
26



Restructuring Accrual Activity 
As of July 29, 2017, and January 28, 2017, there was no restructuring accrual balance. The restructuring accrual activity related to termination benefits was as follows for the six months ended July 30, 2016 ($ in millions):
 
Termination
Benefits
Balances at January 30, 2016
$
—

Charges
19

Cash payments
(15
)
Adjustments(1)
(2
)
Balances at July 30, 2016
$
2


(1)
Adjustments to termination benefits represent changes in retention assumptions.
Composition of Restructuring Charges 
The composition of total restructuring charges we incurred for the Canadian brand consolidation in the three and six months ended July 29, 2017, and July 30, 2016, as well as the cumulative amount incurred through July 29, 2017, was as follows ($ in millions):
 
International
 
Three Months Ended
 
Six Months Ended
 
Cumulative Amount
 
July 29, 2017
 
July 30, 2016
 
July 29, 2017
 
July 30, 2016
 
July 29, 2017
Inventory write-downs
$
—

 
$
—

 
$
—

 
$
—

 
$
3

Property and equipment impairments
—

 
—

 
—

 
—

 
30

Tradename impairment
—

 
—

 
—

 
—

 
40

Termination benefits
—

 
—

 
—

 
—

 
25

Facility closure and other costs
(1
)
 
2

 
(1
)
 
1

 
104

Total restructuring charges
$
(1
)
 
$
2

 
$
(1
)
 
$
1

 
$
202

Restructuring Accrual Activity 
The following tables summarize our restructuring accrual activity during the six months ended July 29, 2017, and July 30, 2016, related to termination benefits and facility closure and other costs associated with the Canadian brand consolidation ($ in millions):
 
Termination
Benefits
 
Facility
Closure and
Other Costs
 
Total
Balances at January 28, 2017
$
—

 
$
34

 
$
34

Charges
—

 
—

 
—

Cash payments
—

 
(10
)
 
(10
)
Adjustments(1)
—

 
(1
)
 
(1
)
Changes in foreign currency exchange rates
—

 
1

 
1

Balances at July 29, 2017
$
—

 
$
24

 
$
24

 
 
 
 
 
 
Balances at January 30, 2016
$
2

 
$
64

 
$
66

Charges
—

 
1

 
1

Cash payments
(1
)
 
(18
)
 
(19
)
Adjustments(1)
—

 
(1
)
 
(1
)
Changes in foreign currency exchange rates
—

 
4

 
4

Balances at July 30, 2016
$
1

 
$
50

 
$
51


(1)
Adjustments to facility closure and other costs represent changes in sublease assumptions.
Debt (Tables)
Schedule of Long-term Debt
Long-term debt consisted of the following ($ in millions):
 
July 29, 2017
 
January 28, 2017
 
July 30, 2016
2018 Notes
$
500

 
$
500

 
$
500

2021 Notes
650

 
650

 
650

Interest rate swap valuation adjustments
16

 
13

 
27

Subtotal
1,166

 
1,163

 
1,177

Debt discounts and issuance costs
(4
)
 
(5
)
 
(6
)
Financing lease obligations
166

 
177

 
181

Capital lease obligations
26

 
30

 
32

Total long-term debt
1,354

 
1,365

 
1,384

Less: current portion
44

 
44

 
43

Total long-term debt, less current portion
$
1,310

 
$
1,321

 
$
1,341

 

Derivative Instruments Derivative Instruments (Tables)
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] 
The following table presents the gross fair values for outstanding derivative instruments and the corresponding classification at July 29, 2017, January 28, 2017, and July 30, 2016 ($ in millions):
 
July 29, 2017
 
January 28, 2017
 
July 30, 2016
 
Assets
 
Liabilities
 
Assets
 
Liabilities
 
Assets
 
Liabilities
Derivatives designated as net investment hedges(1)
$
—

 
$
13

 
$
2

 
$
2

 
$
1

 
$
5

Derivatives designated as interest rate swaps(2)
16

 
—

 
13

 
—

 
27

 
—

No hedge designation (foreign exchange forward contracts)(1)
—

 
2

 
—

 
1

 
—

 
—

Total
$
16

 
$
15

 
$
15

 
$
3

 
$
28

 
$
5

(1)
The fair value is recorded in Other current assets or Accrued liabilities.
(2)
The fair value is recorded in Other assets or Long-term liabilities.
Derivative Instruments, Gain (Loss) [Table Text Block] 
The following table presents the effects of derivative instruments by contract type on other comprehensive income ("OCI") and on our Condensed Consolidated Statements of Earnings for the three and six months ended July 29, 2017, and July 30, 2016 ($ in millions):
 
Three Months Ended
 
Six Months Ended
 
July 29, 2017
 
July 30, 2016
 
July 29, 2017
 
July 30, 2016
Derivatives designated as net investment hedges
 
 
 
 
 
 
 
Pre-tax gain (loss) recognized in OCI
$
(19
)
 
$
8

 
$
(11
)
 
$
(16
)
 
 
 
 
 
 
 
 
Derivatives designated as interest rate swaps
 
 
 
 
 
 
 
Gain (loss) recognized within Interest expense
 
 
 
 
 
 
 
Interest rate swap gain
$
14

 
$
12

 
$
3

 
$
2

Long-term debt loss
(14
)
 
(12
)
 
(3
)
 
(2
)
Net impact
$
—

 
$
—

 
$
—

 
$
—

 
 
 
 
 
 
 
 
No hedge designation (foreign exchange forward contracts)
 
 
 
 
 
 
Gain (loss) recognized within Selling, general and administrative expenses
$
(4
)
 
$
2

 
$
(3
)
 
$
(3
)


Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] 
The following table presents the notional amounts of our derivative instruments at July 29, 2017, January 28, 2017, and July 30, 2016 ($ in millions):
 
July 29, 2017
 
January 28, 2017
 
July 30, 2016
Derivatives designated as net investment hedges
$
205

 
$
205

 
$
203

Derivatives designated as interest rate swaps
1,000

 
750

 
750

No hedge designation (foreign exchange forward contracts)
48

 
43

 
41

Total
$
1,253

 
$
998

 
$
994

Earnings per Share (Tables)
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 six months ended July 29, 2017, and July 30, 2016 ($ and shares in millions, except per share amounts):
 
Three Months Ended
 
Six Months Ended
 
July 29, 2017
 
July 30, 2016
 
July 29, 2017
 
July 30, 2016
Numerator
 

 
 

 
 
 
 
Net earnings from continuing operations
$
209

 
$
182

 
$
397

 
$
408

 
 
 
 
 
 
 
 
Denominator
 
 
 
 
 
 
 
Weighted-average common shares outstanding
304.1

 
320.8

 
306.7

 
322.2

Dilutive effect of stock compensation plan awards
6.7

 
2.1

 
6.3

 
2.6

Weighted-average common shares outstanding, assuming dilution
310.8

 
322.9

 
313.0

 
324.8

 
 
 
 
 
 
 
 
Net earnings per share from continuing operations
 
 
 
 
 
 
 
Basic
$
0.69

 
$
0.57

 
$
1.29

 
$
1.27

Diluted
$
0.67

 
$
0.56

 
$
1.27

 
$
1.26

Comprehensive Income (Tables)
Schedule of Accumulated Other Comprehensive Income (Loss)
The following tables provide a reconciliation of the components of accumulated other comprehensive income, net of tax, attributable to Best Buy Co., Inc. for the three and six months ended July 29, 2017, and July 30, 2016 ($ in millions):
 
Foreign Currency Translation
Balances at April 29, 2017
$
266

Foreign currency translation adjustments
55

Balances at July 29, 2017
$
321

 
 
Balances at January 28, 2017
$
279

Foreign currency translation adjustments
42

Balances at July 29, 2017
$
321

 
 
Balances at April 30, 2016
$
316

Foreign currency translation adjustments
(20
)
Balances at July 30, 2016
$
296

 
 
Balances at January 30, 2016
$
271

Foreign currency translation adjustments
25

Balances at July 30, 2016
$
296



Repurchase of Common Stock (Tables)
Schedule of Repurchases of Common Stock [Table Text Block]
The following table presents information regarding the shares we repurchased during the three and six months ended July 29, 2017, and July 30, 2016 ($ and shares in millions, except per share amounts):
 
Three Months Ended
 
Six Months Ended
 
July 29, 2017
 
July 30, 2016
 
July 29, 2017
 
July 30, 2016
Total cost of shares repurchased
 
 
 
 
 
 
 
Open market(1)
$
397

 
$
221

 
$
781

 
$
277

Settlement of January 2016 ASR(2)
—

 
—

 
—

 
45

Total
$
397

 
$
221

 
$
781

 
$
322

 
 
 
 
 
 
 
 
Average price per share
 
 
 
 
 
 
 
Open market
$
55.07

 
$
30.65

 
$
50.38

 
$
30.98

Settlement of January 2016 ASR(2)
$
—

 
$
—

 
$
—

 
$
28.55

Average
$
55.07

 
$
30.65

 
$
50.38

 
$
30.62

 
 
 
 
 
 
 
 
Number of shares repurchased and retired
 
 
 
 
 
 
 
Open market(1)
7.2

 
7.2

 
15.5

 
8.9

Settlement of January 2016 ASR(2)
—

 
—

 
—

 
1.6

Total
7.2

 
7.2

 
15.5

 
10.5

(1)
As of July 29, 2017, $18 million, or 0.3 million shares, in trades remained unsettled. As of July 30, 2016, $6 million, or 0.2 million shares, in trades remained unsettled. The liability for unsettled trades is included in Accrued liabilities in the Condensed Consolidated Balance Sheets.
(2)
See Note 7, Shareholders' Equity, in the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended January 28, 2017, for additional information regarding the January 2016 ASR.
Segments (Tables)
Reconciliation of revenue from segments to consolidated 
Revenue by reportable segment was as follows ($ in millions):
 
Three Months Ended
 
Six Months Ended
 
July 29, 2017
 
July 30, 2016
 
July 29, 2017
 
July 30, 2016
Domestic
$
8,272

 
$
7,889

 
$
16,184

 
$
15,718

International
668

 
644

 
1,284

 
1,258

Total revenue
$
8,940

 
$
8,533

 
$
17,468

 
$
16,976

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 ($ in millions):
 
Three Months Ended
 
Six Months Ended
 
July 29, 2017
 
July 30, 2016
 
July 29, 2017
 
July 30, 2016
Domestic
$
316

 
$
289

 
$
614

 
$
661

International
5

 
—

 
7

 
—

Total operating income
321

 
289

 
621

 
661

Other income (expense)
 
 
 
 
 
 
 
Gain on sale of investments
—

 
—

 
—

 
2

Investment income and other
7

 
8

 
18

 
14

Interest expense
(18
)
 
(18
)
 
(37
)
 
(38
)
Earnings from continuing operations before income tax expense
$
310

 
$
279

 
$
602

 
$
639

Reconciliation of assets from segment to consolidated 
Assets by reportable segment were as follows ($ in millions):
 
July 29, 2017
 
January 28, 2017
 
July 30, 2016
Domestic
$
11,972

 
$
12,496

 
$
11,968

International
1,472

 
1,360

 
1,286

Total assets
$
13,444

 
$
13,856

 
$
13,254

Basis of Presentation Narrative (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jul. 29, 2017
Jul. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
 
 
Reporting period lag for consolidation of financial results
1 month 
 
Number of Weeks in Fiscal Period
26 
26 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
ASU adoption cumulative adjustment
$ (2)
 
Retained Earnings
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
ASU adoption cumulative adjustment
$ (12)
 
Basis of Presentation Reconciliation of Recast Condensed Consolidated Statement of Cash Flows (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jul. 29, 2017
Jul. 30, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
Other, net
$ (2)
$ (29)
Receivables
401 
239 
Merchandise inventories
(285)
161 
Total cash provided by operating activities
692 
1,297 
Total cash used in investing activities
(708)
(491)
Other, net
(1)
8 
Total cash used in financing activities
(874)
(942)
Decrease in cash, cash equivalents and restricted cash
(872)
(111)
Cash, cash equivalents and restricted cash at beginning of period
2,433 
2,161 
Cash, cash equivalents and restricted cash at end of period
1,561 
2,050 
As reported [Member]
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
Other, net
 
(38)
Receivables
 
240 
Merchandise inventories
 
160 
Total cash provided by operating activities
 
1,288 
Change in restricted assets
 
(4)
Total cash used in investing activities
 
(495)
Other, net
 
17 
Total cash used in financing activities
 
(933)
Decrease in cash, cash equivalents and restricted cash
 
(115)
Cash, cash equivalents and restricted cash at beginning of period
 
1,976 
Cash, cash equivalents and restricted cash at end of period
 
1,861 
Accounting Standards Update 2016-09 [Member]
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
Other, net
 
9 
Total cash provided by operating activities
 
9 
Other, net
 
(9)
Total cash used in financing activities
 
(9)
Accounting Standards Update 2016-15 [Member]
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
Receivables
 
(1)
Merchandise inventories
 
1 
Accounting Standards Update 2016-18 [Member]
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
Change in restricted assets
 
4 
Total cash used in investing activities
 
4 
Decrease in cash, cash equivalents and restricted cash
 
4 
Cash, cash equivalents and restricted cash at beginning of period
 
185 
Cash, cash equivalents and restricted cash at end of period
 
189 
As adjusted [Member]
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
Other, net
 
(29)
Receivables
 
239 
Merchandise inventories
 
161 
Total cash provided by operating activities
 
1,297 
Change in restricted assets
 
0 
Total cash used in investing activities
 
(491)
Other, net
 
8 
Total cash used in financing activities
 
(942)
Decrease in cash, cash equivalents and restricted cash
 
(111)
Cash, cash equivalents and restricted cash at beginning of period
 
2,161 
Cash, cash equivalents and restricted cash at end of period
 
$ 2,050 
Basis of Presentation Total Cash, Cash Equivalents and Restricted Cash (Details) (USD $)
In Millions, unless otherwise specified
Jul. 29, 2017
Jan. 28, 2017
Jul. 30, 2016
Jan. 30, 2016
Schedule of cash, cash equivalents and restricted cash [Line Items]
 
 
 
 
Cash and cash equivalents
$ 1,365 
$ 2,240 
$ 1,861 
 
Restricted cash included in Other current assets
196 
193 
189 
 
Cash, cash equivalents and restricted cash at end of period
$ 1,561 
$ 2,433 
$ 2,050 
$ 2,161 
Discontinued Operations (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jul. 29, 2017
Jul. 30, 2016
Jul. 29, 2017
Jul. 30, 2016
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
 
 
Gain from discontinued operations before income tax expense
$ 0 
$ 26 
$ 0 
$ 26 
Income tax expense
0 
(10)
0 
(7)
Net gain from discontinued operations
$ 0 
$ 16 
$ 0 
$ 19 
Fair Value Measurements - Recurring (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 29, 2016
Level 3
Auction rate securities
Jul. 29, 2017
Fair Value, Measurements, Recurring [Member]
Level 1
Money market funds
Jan. 28, 2017
Fair Value, Measurements, Recurring [Member]
Level 1
Money market funds
Jul. 30, 2016
Fair Value, Measurements, Recurring [Member]
Level 1
Money market funds
Jul. 29, 2017
Fair Value, Measurements, Recurring [Member]
Level 1
Marketable securities that fund deferred compensation
Jan. 28, 2017
Fair Value, Measurements, Recurring [Member]
Level 1
Marketable securities that fund deferred compensation
Jul. 30, 2016
Fair Value, Measurements, Recurring [Member]
Level 1
Marketable securities that fund deferred compensation
Jul. 29, 2017
Fair Value, Measurements, Recurring [Member]
Level 2
Commercial paper
Jan. 28, 2017
Fair Value, Measurements, Recurring [Member]
Level 2
Commercial paper
Jul. 30, 2016
Fair Value, Measurements, Recurring [Member]
Level 2
Commercial paper
Jul. 29, 2017
Fair Value, Measurements, Recurring [Member]
Level 2
Time deposits
Jan. 28, 2017
Fair Value, Measurements, Recurring [Member]
Level 2
Time deposits
Jul. 30, 2016
Fair Value, Measurements, Recurring [Member]
Level 2
Time deposits
Jul. 29, 2017
Fair Value, Measurements, Recurring [Member]
Level 2
Corporate bonds
Jan. 28, 2017
Fair Value, Measurements, Recurring [Member]
Level 2
Corporate bonds
Jul. 30, 2016
Fair Value, Measurements, Recurring [Member]
Level 2
Corporate bonds
Jul. 29, 2017
Fair Value, Measurements, Recurring [Member]
Level 2
Foreign currency derivative instruments
Jan. 28, 2017
Fair Value, Measurements, Recurring [Member]
Level 2
Foreign currency derivative instruments
Jul. 30, 2016
Fair Value, Measurements, Recurring [Member]
Level 2
Foreign currency derivative instruments
Jul. 29, 2017
Fair Value, Measurements, Recurring [Member]
Level 2
Interest Rate Swap [Member]
Jan. 28, 2017
Fair Value, Measurements, Recurring [Member]
Level 2
Interest Rate Swap [Member]
Jul. 30, 2016
Fair Value, Measurements, Recurring [Member]
Level 2
Interest Rate Swap [Member]
Jul. 29, 2017
Fair Value, Measurements, Recurring [Member]
Level 3
Auction rate securities
Jan. 28, 2017
Fair Value, Measurements, Recurring [Member]
Level 3
Auction rate securities
Jul. 30, 2016
Fair Value, Measurements, Recurring [Member]
Level 3
Auction rate securities
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$ 175 
$ 290 
$ 87 
 
 
 
$ 60 
$ 0 
$ 0 
$ 16 
$ 15 
$ 169 
 
 
 
 
 
 
 
 
 
 
 
 
Short-term investments
 
 
 
 
 
 
 
299 
349 
170 
1,826 
1,332 
1,414 
0 
0 
6 
 
 
 
 
 
 
 
 
 
Other current assets
 
2 
7 
0 
 
 
 
60 
60 
60 
101 
100 
79 
 
 
 
0 
2 
1 
 
 
 
 
 
 
Other assets
 
 
 
 
97 
96 
95 
 
 
 
 
 
 
 
 
 
 
 
 
16 
13 
27 
0 
0 
2 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accrued liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
15 
3 
5 
 
 
 
 
 
 
Proceeds from Sale of Other Assets
$ 2 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value Measurements - Nonrecurring (Details) (Fair Value, Measurements, Nonrecurring [Member], Level 3, USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jul. 29, 2017
Jul. 30, 2016
Jul. 29, 2017
Jul. 30, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Asset Impairment Charges
$ 1 
$ 3 
$ 6 
$ 15 
Remaining net carrying value
0 1
0 1
0 1
0 1
Selling, General and Administrative Expenses [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Asset Impairment Charges
1 
3 
6 
8 
Remaining net carrying value
0 1
0 1
0 1
0 1
Restructuring Charges [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Asset Impairment Charges
0 2
0 2
0 2
7 2
Remaining net carrying value
$ 0 1 2
$ 0 1 2
$ 0 1 2
$ 0 1 2
Goodwill and Intangible Assets (Details) (USD $)
In Millions, unless otherwise specified
Jul. 29, 2017
Jan. 28, 2017
Jul. 30, 2016
Schedule of Goodwill and Indefinite Lived Intangible Assets by Segment [Line Items]
 
 
 
Goodwill
$ 425 
$ 425 
$ 425 
Domestic Segment [Member]
 
 
 
Schedule of Goodwill and Indefinite Lived Intangible Assets by Segment [Line Items]
 
 
 
Goodwill
425 
425 
425 
Intangible Assets, Net (Excluding Goodwill)
$ 18 
$ 18 
$ 18 
Goodwill and Intangible Assets Gross Goodwill (Details) (USD $)
In Millions, unless otherwise specified
Jul. 29, 2017
Jan. 28, 2017
Jul. 30, 2016
Goodwill [Line Items]
 
 
 
Goodwill, Gross
$ 1,100 
$ 1,100 
$ 1,100 
Goodwill, Impaired, Accumulated Impairment Loss
$ 675 
$ 675 
$ 675 
Restructuring Charges Summary Table (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jul. 29, 2017
Jul. 30, 2016
Jul. 29, 2017
Jul. 30, 2016
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring charges
$ 2 
$ 0 
$ 2 
$ 29 
Restructuring Program Renew Blue Phase 2 [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring charges
0 
(2)
0 
25 
Restructuring Program Canadian Brand Consolidation [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring charges
(1)
2 
(1)
1 
Restructuring Program 2013 Renew Blue [Member] [Domain]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring charges
3 1
0 1
3 1
3 1
Other Restructuring [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring charges
$ 0 2
$ 0 2
$ 0 2
$ 0 2
Restructuring Charges Restructuring Other (Details) (Facility closure and other costs [Member], USD $)
In Millions, unless otherwise specified
Jul. 29, 2017
Restructuring Program 2013 Renew Blue [Member] [Domain]
 
Restructuring Cost and Reserve [Line Items]
 
Restructuring reserve
$ 12 
Other Restructuring [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Restructuring reserve
$ 8 
Restructuring Charges Composition of Restructuring Charges (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jul. 29, 2017
Jul. 30, 2016
Jul. 29, 2017
Jul. 30, 2016
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring charges
$ 2 
$ 0 
$ 2 
$ 29 
Restructuring Program Renew Blue Phase 2 [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring charges
0 
(2)
0 
25 
Restructuring and Related Cost, Cost Incurred to Date
26 
 
26 
 
Restructuring Program Renew Blue Phase 2 [Member] |
Domestic [Member] |
Property and equipment write-downs
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring charges
0 
0 
0 
7 
Restructuring and Related Cost, Cost Incurred to Date
8 
 
8 
 
Restructuring Program Renew Blue Phase 2 [Member] |
Domestic [Member] |
Termination benefits
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring charges
0 
(2)
0 
18 
Restructuring and Related Cost, Cost Incurred to Date
18 
 
18 
 
Restructuring Program Canadian Brand Consolidation [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring charges
(1)
2 
(1)
1 
Restructuring and Related Cost, Cost Incurred to Date
202 
 
202 
 
Restructuring Program Canadian Brand Consolidation [Member] |
International Segment [Member] |
Inventory write-downs
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring charges
0 
0 
0 
0 
Restructuring and Related Cost, Cost Incurred to Date
3 
 
3 
 
Restructuring Program Canadian Brand Consolidation [Member] |
International Segment [Member] |
Property and equipment write-downs
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring charges
0 
0 
0 
0 
Restructuring and Related Cost, Cost Incurred to Date
30 
 
30 
 
Restructuring Program Canadian Brand Consolidation [Member] |
International Segment [Member] |
Tradename impairment
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring charges
0 
0 
0 
0 
Restructuring and Related Cost, Cost Incurred to Date
40 
 
40 
 
Restructuring Program Canadian Brand Consolidation [Member] |
International Segment [Member] |
Termination benefits
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring charges
0 
0 
0 
0 
Restructuring and Related Cost, Cost Incurred to Date
25 
 
25 
 
Restructuring Program Canadian Brand Consolidation [Member] |
International Segment [Member] |
Facility closure and other costs [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring charges
(1)
2 
(1)
1 
Restructuring and Related Cost, Cost Incurred to Date
$ 104 
 
$ 104 
 
Restructuring Charges Restructuring Accrual Activity (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
May 2, 2015
store
Jul. 29, 2017
Jul. 30, 2016
Restructuring Program Renew Blue Phase 2 [Member] |
Termination benefits
 
 
 
Restructuring Reserve [Roll Forward]
 
 
 
Restructuring reserve, balance at the beginning of the period
 
 
$ 0 
Charges
 
 
19 
Cash payments
 
 
(15)
Adjustments
 
 
(2)1
Restructuring reserve, balance at the end of the period
 
 
2 
Restructuring Program Canadian Brand Consolidation [Member]
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Number of stores to be closed
66 
 
 
Number of Future Shop stores converted to Best Buy stores
65 
 
 
Restructuring Reserve [Roll Forward]
 
 
 
Restructuring reserve, balance at the beginning of the period
 
34 
66 
Charges
 
0 
1 
Cash payments
 
(10)
(19)
Adjustments
 
(1)2
(1)2
Changes in foreign currency exchange rates
 
1 
4 
Restructuring reserve, balance at the end of the period
 
24 
51 
Restructuring Program Canadian Brand Consolidation [Member] |
Termination benefits
 
 
 
Restructuring Reserve [Roll Forward]
 
 
 
Restructuring reserve, balance at the beginning of the period
 
0 
2 
Charges
 
0 
0 
Cash payments
 
0 
(1)
Adjustments
 
0 
0 
Changes in foreign currency exchange rates
 
0 
0 
Restructuring reserve, balance at the end of the period
 
0 
1 
Restructuring Program Canadian Brand Consolidation [Member] |
Facility closure and other costs [Member]
 
 
 
Restructuring Reserve [Roll Forward]
 
 
 
Restructuring reserve, balance at the beginning of the period
 
34 
64 
Charges
 
0 
1 
Cash payments
 
(10)
(18)
Adjustments
 
(1)2
(1)2
Changes in foreign currency exchange rates
 
1 
4 
Restructuring reserve, balance at the end of the period
 
$ 24 
$ 50 
Debt (Details) (USD $)
In Millions, unless otherwise specified
Jul. 29, 2017
Jan. 28, 2017
Jul. 30, 2016
Debt Instrument [Line Items]
 
 
 
Long-term Debt and Capital Lease Obligations, Including Current Maturities
$ 1,354 
$ 1,365 
$ 1,384 
Current portion of long-term debt
44 
44 
43 
Long-term Debt and Capital Lease Obligations
1,310 
1,321 
1,341 
Long-term Debt, Fair Value
1,242 
1,240 
1,271 
Notes due 2018
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-term Debt
500 
500 
500 
Notes due 2021
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-term Debt
650 
650 
650 
Interest Rate Swap [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-term Debt
16 
13 
27 
Long-term Debt [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-term debt, excluding debt discounts and issuance costs and financing and capital lease obligations
1,166 
1,163 
1,177 
Debt discounts and issuance costs [Domain]
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-term Debt
(4)
(5)
(6)
Financing lease obligations [Domain]
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-term Debt
166 
177 
181 
Capital Lease Obligations [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Long-term Debt
$ 26 
$ 30 
$ 32 
Derivative Instruments Derivative Instruments Narrative (Details)
6 Months Ended
Jul. 29, 2017
Net Investment Hedging [Member]
 
Derivative [Line Items]
 
Derivative, Term of Contract
12 months 
Foreign Exchange Forward [Member] |
Not Designated as Hedging Instrument [Member]
 
Derivative [Line Items]
 
Derivative, Term of Contract
12 months 
Derivative Instruments (Details) (USD $)
In Millions, unless otherwise specified
Jul. 29, 2017
Jan. 28, 2017
Jul. 30, 2016
Derivatives, Fair Value [Line Items]
 
 
 
Derivative Asset, Fair Value, Gross Asset
$ 16 
$ 15 
$ 28 
Derivative Liability, Fair Value, Gross Liability
15 
3 
5 
Notional Amount
1,253 
998 
994 
Net Investment Hedging [Member]
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
Derivative Asset, Fair Value, Gross Asset
0 1
2 1
1 1
Derivative Liability, Fair Value, Gross Liability
13 1
2 1
5 1
Notional Amount
205 
205 
203 
Interest Rate Swap [Member]
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
Derivative Asset, Fair Value, Gross Asset
16 2
13 2
27 2
Derivative Liability, Fair Value, Gross Liability
0 2
0 2
0 2
Notional Amount
1,000 
750 
750 
Foreign Exchange Forward [Member] |
Not Designated as Hedging Instrument [Member]
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
Derivative Asset, Fair Value, Gross Asset
0 1
0 1
0 1
Derivative Liability, Fair Value, Gross Liability
2 1
1 1
0 1
Notional Amount
$ 48 
$ 43 
$ 41 
Derivative Instruments Changes in Fair Value Hedges on Income (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jul. 29, 2017
Jul. 30, 2016
Jul. 29, 2017
Jul. 30, 2016
Net Investment Hedging [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax
$ (19)
$ 8 
$ (11)
$ (16)
Interest Rate Swap [Member] |
Interest Expense [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Interest rate swap gain
14 
12 
3 
2 
Long-term debt loss
(14)
(12)
(3)
(2)
Net impact
0 
0 
0 
0 
Foreign Exchange Forward [Member] |
Not Designated as Hedging Instrument [Member] |
Selling, General and Administrative Expenses [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Gain (loss) on foreign currency derivative instruments not designated as hedging instruments
$ (4)
$ 2 
$ (3)
$ (3)
Earnings per Share (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jul. 29, 2017
Jul. 30, 2016
Jul. 29, 2017
Jul. 30, 2016
Numerator
 
 
 
 
Net earnings from continuing operations
$ 209 
$ 182 
$ 397 
$ 408 
Denominator
 
 
 
 
Weighted-average common shares outstanding (in shares)
304.1 
320.8 
306.7 
322.2 
Effect of potentially dilutive securities:
 
 
 
 
Nonvested share awards (in shares)
6.7 
2.1 
6.3 
2.6 
Weighted-average common shares outstanding, assuming dilution (in shares)
310.8 
322.9 
313.0 
324.8 
Net earnings per share from continuing operations
 
 
 
 
Basic (in dollars per share)
$ 0.69 
$ 0.57 
$ 1.29 
$ 1.27 
Diluted (in dollars per share)
$ 0.67 
$ 0.56 
$ 1.27 
$ 1.26 
Antidilutive securities excluded from computation of earnings per share
0 
8.8 
0 
8.8 
Comprehensive Income (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jul. 29, 2017
Jul. 30, 2016
Jul. 29, 2017
Jul. 30, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
Foreign Currency Translation, Beginning Balance
$ 266 
$ 316 
$ 279 
$ 271 
Foreign currency translation adjustments
55 
(20)
42 
25 
Foreign Currency Translation, Ending Balance
$ 321 
$ 296 
$ 321 
$ 296 
Repurchase of Common Stock (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jul. 29, 2017
Jul. 30, 2016
Jul. 29, 2017
Jul. 30, 2016
Open market [Domain]
 
 
 
 
Stock Repurchases [Line Items]
 
 
 
 
Stock Repurchased and Retired During Period, Value
$ 397 1
$ 221 1
$ 781 1
$ 277 1
Average share price
$ 55.07 
$ 30.65 
$ 50.38 
$ 30.98 
Stock Repurchased and Retired During Period, Shares
7.2 1
7.2 1
15.5 1
8.9 1
Unsettled shares, cost
18 
6 
18 
6 
Unsettled shares, shares
0.3 
0.2 
0.3 
0.2 
January 2016 ASR [Domain]
 
 
 
 
Stock Repurchases [Line Items]
 
 
 
 
Stock Repurchased and Retired During Period, Value
0 2
0 2
0 2
45 2
Average share price
$ 0.00 2
$ 0.00 2
$ 0.00 2
$ 28.55 2
Stock Repurchased and Retired During Period, Shares
0 2
0 2
0 2
1.6 2
Total Share Repurchases [Domain]
 
 
 
 
Stock Repurchases [Line Items]
 
 
 
 
Stock Repurchased and Retired During Period, Value
$ 397 
$ 221 
$ 781 
$ 322 
Average share price
$ 55.07 
$ 30.65 
$ 50.38 
$ 30.62 
Stock Repurchased and Retired During Period, Shares
7.2 
7.2 
15.5 
10.5 
Repurchase of Common Stock Authorized Common Stock Repurchases (Details) (USD $)
In Billions, unless otherwise specified
Jul. 29, 2017
February 2017 share repurchase program [Member]
Feb. 27, 2017
February 2017 share repurchase program [Member]
Jun. 30, 2011
June 2011 share repurchase program [Member}
Authorized Share Repurchases [Line Items]
 
 
 
Stock Repurchase Program, Authorized Amount
 
$ 5.0 
$ 5.0 
Stock Repurchase Program, Remaining Authorized Repurchase Amount
$ 4.3 
 
 
Segments Narrative (Details)
6 Months Ended
Jul. 29, 2017
segments
Segment Reporting [Abstract]
 
Number of reportable segments
2 
Segments Reconciliation of Revenue from Segments to Consolidated (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jul. 29, 2017
Jul. 30, 2016
Jul. 29, 2017
Jul. 30, 2016
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
 
 
Revenue
$ 8,940 
$ 8,533 
$ 17,468 
$ 16,976 
Domestic Segment [Member]
 
 
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
 
 
Revenue
8,272 
7,889 
16,184 
15,718 
International Segment [Member]
 
 
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
 
 
Revenue
$ 668 
$ 644 
$ 1,284 
$ 1,258 
Segments Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jul. 29, 2017
Jul. 30, 2016
Jul. 29, 2017
Jul. 30, 2016
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
 
 
 
 
Operating Income (Loss)
$ 321 
$ 289 
$ 621 
$ 661 
Gain on sale of investments
0 
0 
0 
2 
Investment income and other
7 
8 
18 
14 
Interest Expense
(18)
(18)
(37)
(38)
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest
310 
279 
602 
639 
Domestic Segment [Member]
 
 
 
 
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
 
 
 
 
Operating Income (Loss)
316 
289 
614 
661 
International Segment [Member]
 
 
 
 
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
 
 
 
 
Operating Income (Loss)
$ 5 
$ 0 
$ 7 
$ 0 
Segments Reconciliation of Assets from Segment to Consolidated (Details) (USD $)
In Millions, unless otherwise specified
Jul. 29, 2017
Jan. 28, 2017
Jul. 30, 2016
Segment Reporting, Asset Reconciling Item [Line Items]
 
 
 
Total assets
$ 13,444 
$ 13,856 
$ 13,254 
Domestic Segment [Member]
 
 
 
Segment Reporting, Asset Reconciling Item [Line Items]
 
 
 
Total assets
11,972 
12,496 
11,968 
International Segment [Member]
 
 
 
Segment Reporting, Asset Reconciling Item [Line Items]
 
 
 
Total assets
$ 1,472 
$ 1,360 
$ 1,286