BEST BUY CO INC, 10-Q filed on 12/2/2016
Quarterly Report
Document and Entity Information Document
9 Months Ended
Oct. 29, 2016
Nov. 30, 2016
Document Information [Line Items]
 
 
Entity Registrant Name
BEST BUY CO INC 
 
Entity Central Index Key
0000764478 
 
Document Type
10-Q 
 
Document Period End Date
Oct. 29, 2016 
 
Amendment Flag
false 
 
Current Fiscal Year End Date
--01-28 
 
Entity Current Reporting Status
Yes 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
313,826,197 
Document Fiscal Year Focus
2017 
 
Document Fiscal Period Focus
Q3 
 
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
In Millions, unless otherwise specified
Oct. 29, 2016
Jan. 30, 2016
Oct. 31, 2015
Current assets
 
 
 
Cash and cash equivalents
$ 1,341 
$ 1,976 
$ 1,697 
Short-term investments
1,777 
1,305 
1,650 
Receivables, net
1,174 
1,162 
1,061 
Merchandise inventories
6,331 
5,051 
6,651 
Other current assets
398 
392 
409 
Total current assets
11,021 
9,886 
11,468 
Property and equipment, net
2,298 
2,346 
2,329 
Goodwill
425 
425 
425 
Intangibles, net
18 
18 
18 
Other assets
780 
813 
897 
Non-current assets held for sale
31 
32 
Total assets
14,542 
13,519 
15,169 
Current liabilities
 
 
 
Accounts payable
6,233 
4,450 
6,184 
Unredeemed gift card liabilities
377 
409 
379 
Deferred revenue
380 
357 
330 
Accrued compensation and related expenses
308 
384 
306 
Accrued liabilities
782 
802 
790 
Accrued income taxes
43 
128 
23 
Current portion of long-term debt
43 1
395 1
383 1
Total current liabilities
8,166 
6,925 
8,395 
Long-term liabilities
791 
877 
874 
Long-term debt
1,324 
1,339 
1,250 
Best Buy Co., Inc. shareholders’ equity
 
 
 
Preferred stock, $1.00 par value: Authorized — 400,000 shares; Issued and outstanding — none
Common stock, $0.10 par value: Authorized — 1.0 billion shares; Issued and outstanding — 313,000,000, 324,000,000 and 345,000,000 shares, respectively
31 
32 
34 
Prepaid Share Repurchase
(55)
   
Additional paid-in capital
185 
Retained earnings
3,953 
4,130 
4,135 
Accumulated other comprehensive income
277 
271 
296 
Total equity
4,261 
4,378 
4,650 
Total liabilities and equity
$ 14,542 
$ 13,519 
$ 15,169 
CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) (USD $)
Oct. 29, 2016
Jan. 30, 2016
Oct. 31, 2015
Preferred stock, par value (in dollars per share)
$ 1.00 
$ 1.00 
$ 1.00 
Preferred stock, authorized shares
400,000 
400,000 
400,000 
Preferred stock, issued shares
Preferred stock, outstanding shares
Common stock, par value (in dollars per share)
$ 0.10 
$ 0.10 
$ 0.10 
Common stock, authorized shares
1,000,000,000 
1,000,000,000 
1,000,000,000 
Common stock, issued shares
313,000,000 
324,000,000 
345,000,000 
Common stock, outstanding shares
313,000,000 
324,000,000 
345,000,000 
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 29, 2016
Oct. 31, 2015
Oct. 29, 2016
Oct. 31, 2015
Revenue
$ 8,945 
$ 8,819 
$ 25,921 
$ 25,905 
Cost of goods sold
6,742 
6,708 
19,511 
19,661 
Restructuring charges – cost of goods sold
(1)
Gross profit
2,203 
2,112 
6,410 
6,240 
Selling, general and administrative expenses
1,890 
1,874 
5,407 
5,451 
Restructuring charges
30 
185 
Operating income
312 
230 
973 
604 
Other income (expense)
 
 
 
 
Gain on sale of investments
Investment income and other
22 
14 
Interest expense
(16)
(20)
(54)
(60)
Earnings from continuing operations before income tax expense
304 
213 
943 
560 
Income tax expense
112 
84 
343 
230 
Net earnings from continuing operations
192 
129 
600 
330 
Gain (loss) from discontinued operations (Note 2), net of tax benefit (expense) of $-, $-, $(7) and $3, respectively
(4)
21 
88 
Net earnings
$ 194 
$ 125 
$ 621 
$ 418 
Basic earnings
 
 
 
 
Continuing operations (in dollars per share)
$ 0.61 
$ 0.37 
$ 1.87 
$ 0.95 
Discontinued operations (in dollars per share)
$ 0.00 
$ (0.01)
$ 0.07 
$ 0.25 
Basic earnings per share (in dollars per share)
$ 0.61 
$ 0.36 
$ 1.94 
$ 1.20 
Diluted earnings
 
 
 
 
Continuing operations (in dollars per share)
$ 0.60 
$ 0.37 
$ 1.85 
$ 0.93 
Discontinued operations (in dollars per share)
$ 0.01 
$ (0.01)
$ 0.07 
$ 0.25 
Diluted earnings per share (in dollars per share)
$ 0.61 
$ 0.36 
$ 1.92 
$ 1.18 
Dividends declared per common share (in dollars per share)
$ 0.28 
$ 0.23 
$ 1.29 
$ 1.20 
Weighted-average common shares outstanding (in millions)
 
 
 
 
Basic (in shares)
316.2 
344.7 
320.2 
348.9 
Diluted (in shares)
320.0 
349.0 
323.6 
353.6 
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (PARENTHETICAL) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 29, 2016
Oct. 31, 2015
Oct. 29, 2016
Oct. 31, 2015
Income tax benefit (expense)
$ 0 
$ 0 
$ (7)
$ 3 
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 29, 2016
Oct. 31, 2015
Oct. 29, 2016
Oct. 31, 2015
Net earnings
$ 194 
$ 125 
$ 621 
$ 418 
Foreign currency translation adjustments
(19)
(2)
(19)
Reclassification of foreign currency translation adjustments into earnings due to sale of business
(67)
Comprehensive income
$ 175 
$ 123 
$ 627 
$ 332 
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $)
In Millions, unless otherwise specified
Total
Total Best Buy Co., Inc. [Member]
Common Stock [Member]
Prepaid Share Repurchase [Member]
Additional Paid-In Capital [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Noncontrolling Interests [Member]
Beginning balances at Jan. 31, 2015
$ 5,000 
$ 4,995 
$ 35 
 
$ 437 
$ 4,141 
$ 382 
$ 5 
Beginning balances (in shares) at Jan. 31, 2015
 
 
352 
 
 
 
 
 
Increase (Decrease) in Shareholders' Equity
 
 
 
 
 
 
 
 
Net earnings, nine months ended
418 
418 
 
418 
Foreign currency translation adjustments
(19)
(19)
 
(19)
Reclassification of foreign currency translation adjustments into earnings due to sale of business
(67)
(67)
 
 
 
 
(67)
Sale of noncontrolling interest
(5)
 
 
 
 
 
 
(5)
Stock-based compensation
80 
80 
 
80 
Restricted stock vested and stock options exercised (in shares)
 
 
 
 
 
 
 
Restricted stock vested and stock options exercised
36 
36 
 
36 
Issuance of common stock under employee stock purchase plan (in shares)
 
 
 
 
 
 
 
Issuance of common stock under employee stock purchase plan
 
Tax benefit (deficit) from stock options exercised, restricted stock vesting and employee stock purchase plan
 
Common stock dividends
(421)
(421)
 
(424)
Stock Repurchased During Period, Shares
 
 
(11)
 
 
 
 
 
Stock Repurchased During Period, Value
(388)
(388)
(1)
 
(387)
 
 
Ending balances at Oct. 31, 2015
4,650 
4,650 
34 
 
185 
4,135 
296 
Ending balances (in shares) at Oct. 31, 2015
 
 
345 
 
 
 
 
 
Beginning balances at Jan. 30, 2016
4,378 
4,378 
32 
(55)
4,130 
271 
Beginning balances (in shares) at Jan. 30, 2016
 
 
324 
 
 
 
 
 
Increase (Decrease) in Shareholders' Equity
 
 
 
 
 
 
 
 
Net earnings, nine months ended
621 
621 
 
621 
Foreign currency translation adjustments
 
Reclassification of foreign currency translation adjustments into earnings due to sale of business
 
 
 
 
 
 
 
Stock-based compensation
82 
82 
 
82 
 
 
 
Restricted stock vested and stock options exercised (in shares)
 
 
 
 
 
 
 
Restricted stock vested and stock options exercised
60 
60 
 
59 
Settlement of accelerated share repurchase
55 
55 
 
55 
 
 
 
 
Issuance of common stock under employee stock purchase plan (in shares)
 
 
 
 
 
 
 
Issuance of common stock under employee stock purchase plan
 
Tax benefit (deficit) from stock options exercised, restricted stock vesting and employee stock purchase plan
(3)
(3)
 
(3)
Common stock dividends
(417)
(417)
 
(417)
Stock Repurchased During Period, Shares
 
 
(16)
 
 
 
 
 
Stock Repurchased During Period, Value
(528)
(528)
 
(145)
(381)
 
 
Ending balances at Oct. 29, 2016
$ 4,261 
$ 4,261 
$ 31 
$ 0 
$ 0 
$ 3,953 
$ 277 
$ 0 
Ending balances (in shares) at Oct. 29, 2016
 
 
313 
 
 
 
 
 
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (PARENTHETICAL)
3 Months Ended 9 Months Ended
Oct. 29, 2016
Oct. 31, 2015
Oct. 29, 2016
Oct. 31, 2015
Statement of Stockholders' Equity [Abstract]
 
 
 
 
Dividends declared per common share (in dollars per share)
$ 0.28 
$ 0.23 
$ 1.29 
$ 1.20 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Millions, unless otherwise specified
9 Months Ended
Oct. 29, 2016
Oct. 31, 2015
Operating activities
 
 
Net earnings
$ 621 
$ 418 
Adjustments to reconcile net earnings to total cash provided by operating activities:
 
 
Depreciation
491 
494 
Restructuring charges
30 
189 
Gain on sale of business, net
(99)
Stock-based compensation
82 
80 
Deferred income taxes
28 
(43)
Other Noncash Income (Expense)
(34)
Changes in operating assets and liabilities:
 
 
Receivables
80 
229 
Merchandise inventories
(1,370)
(1,494)
Other assets
(18)
20 
Accounts payable
1,801 
1,152 
Other liabilities
(192)
(271)
Income taxes
(124)
(215)
Total cash provided by operating activities
1,395 
463 
Investing activities
 
 
Additions to property and equipment
(445)
(493)
Purchases of investments
(2,149)
(2,012)
Sales of investments
1,685 
1,816 
Proceeds from sale of business, net of cash transferred upon sale
102 
Proceeds from Sale of Property, Plant, and Equipment
56 
Change in restricted assets
(8)
(45)
Settlement of net investment hedges
14 
Total cash used in investing activities
(856)
(618)
Financing activities
 
 
Repurchase of common stock
(472)
(385)
Repayments of debt
(384)
(18)
Dividends paid
(417)
(421)
Issuance of common stock
66 
44 
Other, net
20 
19 
Total cash used in financing activities
(1,187)
(761)
Effect of exchange rate changes on cash
13 
(13)
Decrease in cash and cash equivalents
(635)
(929)
Cash and cash equivalents at beginning of period, excluding held for sale
1,976 
2,432 
Cash and cash equivalents held for sale at beginning of period
194 
Cash and cash equivalents at end of period
$ 1,341 
$ 1,697 
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 30, 2016. The first nine months of fiscal 2017 and fiscal 2016 included 39 weeks.

In order to align our fiscal reporting periods and comply with statutory filing requirements, we consolidate the financial results of our Mexico operations on a one-month lag. Our policy is to accelerate recording the effect of events occurring in the lag period that significantly affect our condensed consolidated financial statements. No such events were identified for this period.

In preparing the accompanying condensed consolidated financial statements, we evaluated the period from October 30, 2016, through the date the financial statements were issued, for material subsequent events requiring recognition or disclosure. No such events were identified for this period.

New Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers, as a new topic, Accounting Standards Codification ("ASC") Topic 606. The new guidance provides a comprehensive framework for the analysis of revenue transactions and will apply to all of our revenue streams. We plan to adopt this standard in the first quarter of our fiscal 2019, which aligns with the required adoption date; however, we have not concluded on our method of transition upon adoption. While we are still in the process of evaluating the effect of adoption on our financial statements, we do not currently expect a material impact on our results of operations, cash flows or financial position.

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, the new guidance would first apply in the first quarter of our fiscal 2020. While we expect adoption to lead to a material increase in the assets and liabilities recorded on our balance sheet, we are still evaluating the overall impact on our financial statements.

In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation: Improvements to Employee Share-Based Payment Accounting. The new guidance changes certain aspects of accounting for share-based payments including accounting for income taxes, forfeitures and classifications in the statement of cash flows. We plan to adopt this standard in the first quarter of fiscal 2018, which aligns with the required adoption date. We are still in the process of evaluating the standard and the effect of adoption on our financial statements.

Changes in Accounting Principles

In the fourth quarter of fiscal 2016, we retrospectively adopted ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs; ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements; and ASU 2015-17, Balance Sheet Classification of Deferred Taxes. The adoption did not have a material impact on our results of operations, cash flows or financial position.
The following table reconciles the balance sheet line items impacted by the adoption of these standards at October 31, 2015:
Balance Sheet
October 31, 2015 Reported
 
ASU 2015-03 & 2015-15 Adjustments
 
ASU 2015-17 Adjustments
 
October 31, 2015 Adjusted
Other current assets
$
676

 
$
(2
)
 
$
(265
)
 
$
409

Other assets
636

 
(4
)
 
265

 
897

   Total assets
$
15,175

 
$
(6
)
 
$

 
$
15,169

 
 
 
 
 
 
 
 
Long-term debt
$
1,256

 
$
(6
)
 
$

 
$
1,250

   Total liabilities & equity
$
15,175

 
$
(6
)
 
$

 
$
15,169



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 and recognized a gain on sale of $99 million. Following the sale of Five Star, we continued to hold as available for sale one retail property in Shanghai, China. In May 2016, 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 operating activities in the Condensed Consolidated Statements of Cash Flows. The presentation of discontinued operations has been retrospectively applied to all prior periods presented.

The aggregate financial results of discontinued operations were as follows ($ in millions):
 
Three Months Ended
 
Nine Months Ended
 
October 29, 2016
 
October 31, 2015
 
October 29, 2016
 
October 31, 2015
Revenue
$

 
$

 
$

 
$
217

Gain (loss) from discontinued operations before income tax benefit (expense)
2

 
(4
)
 
28

 
(14
)
Income tax benefit (expense)

 

 
(7
)
 
3

Gain on sale of discontinued operations

 

 

 
99

Net gain (loss) from discontinued operations
$
2

 
$
(4
)
 
$
21

 
$
88

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 October 29, 2016, January 30, 2016, and October 31, 2015, according to the valuation techniques we used to determine their fair values ($ in millions).
 
 
 
Fair Value at
 
Fair Value Hierarchy
 
October 29, 2016
 
January 30, 2016
 
October 31, 2015
ASSETS
 
 
 

 
 

 
 

Cash and cash equivalents
 
 
 

 
 

 
 

Money market funds
Level 1
 
$
97

 
$
51

 
$
2

Commercial paper
Level 2
 

 
265

 
108

Time deposits
Level 2
 
11

 
306

 
222

Short-term investments
 
 
 
 
 
 
 
Corporate bonds
Level 2
 

 
193

 
333

Commercial paper
Level 2
 
250

 
122

 
288

Time deposits
Level 2
 
1,527

 
990

 
1,029

Other current assets
 
 
 

 
 
 
 
Money market funds
Level 1
 
3

 

 

Commercial paper
Level 2
 
60

 

 

Foreign currency derivative instruments
Level 2
 
5

 
18

 
14

Time deposits
Level 2
 
100

 
79

 
79

Other assets
 
 
 
 
 
 
 
Interest rate swap derivative instruments
Level 2
 
13

 
25

 
10

Auction rate securities
Level 3
 

 
2

 
2

Marketable securities that fund deferred compensation
Level 1
 
96

 
96

 
96

 
 
 
 
 
 
 
 
LIABILITIES
 
 
 

 
 

 
 

Accrued Liabilities
 
 
 

 
 

 
 

Foreign currency derivative instruments
Level 2
 
3

 
1

 

 
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 October 29, 2016, we had no items measured at fair value on a recurring basis that used significant unobservable inputs (Level 3). For the periods ended January 30, 2016, and October 31, 2015, 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.

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.
 
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.

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 operating income in our Condensed Consolidated Statements of Earnings.

The following table summarizes the fair value remeasurements for non-restructuring property and equipment impairments and restructuring impairments recorded during the three and nine months ended October 29, 2016, and October 31, 2015 ($ in millions):
 
Impairments
 
Remaining Net Carrying Value(1)
 
Three Months Ended
 
Nine Months Ended
 
 
 
 
 
October 29, 2016
 
October 31, 2015
 
October 29, 2016
 
October 31, 2015
 
October 29, 2016
 
October 31, 2015
Property and equipment (non-restructuring)
$
8

 
$
9

 
$
16

 
$
34

 
$

 
$
10

Restructuring activities(2)
 
 
 
 
 
 
 
 
 
 
 
Tradename

 

 

 
40

 

 

Property and equipment
1

 

 
8

 
30

 

 

Total
$
9

 
$
9

 
$
24

 
$
104

 
$

 
$
10

(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 October 29, 2016, and October 31, 2015.
(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 carrying values of goodwill and indefinite-lived tradenames for the Domestic segment were $425 million and $18 million, respectively, at October 29, 2016, and $425 million and $18 million, respectively, at January 30, 2016. The changes in the carrying values of goodwill and indefinite-lived tradenames by segment were as follows in the nine months ended October 31, 2015 ($ in millions):
 
Goodwill
 
Indefinite-lived Tradenames
 
Domestic
 
Domestic
 
International
 
Total
Balances at January 31, 2015
$
425

 
$
18

 
$
39

 
$
57

Changes in foreign currency exchange rates

 

 
1

 
1

Canada brand restructuring(1)

 

 
(40
)
 
(40
)
Balances at October 31, 2015
$
425

 
$
18

 
$

 
$
18


(1)
Represents the Future Shop tradename impairment as a result of the Canadian brand consolidation in the first quarter of fiscal 2016. See Note 5, Restructuring Charges, for further discussion of the Canadian brand consolidation.

The following table provides the gross carrying amount of goodwill and cumulative goodwill impairment ($ in millions):
 
October 29, 2016
 
January 30, 2016
 
October 31, 2015
 
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 nine months ended October 29, 2016, and October 31, 2015, for our restructuring activities were as follows ($ in millions):
 
Three Months Ended
 
Nine Months Ended
 
October 29, 2016
 
October 31, 2015
 
October 29, 2016
 
October 31, 2015
Renew Blue Phase 2
$
1

 
$

 
$
26

 
$

Canadian brand consolidation
(2
)
 
5

 
(1
)
 
189

Renew Blue(1)
1

 

 
4

 
(2
)
Other restructuring activities(2)
1

 
2

 
1

 
2

Total restructuring charges
$
1

 
$
7

 
$
30

 
$
189


(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 $10 million at October 29, 2016.
(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 $12 million at October 29, 2016.

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. We recorded an expense of $1 million and $26 million related to Phase 2 of the plan during the three and nine months ended October 29, 2016, respectively. The expense consisted primarily 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 during the three and nine months ended October 29, 2016, for Renew Blue Phase 2 was as follows ($ in millions):
 
Domestic
 
October 29, 2016
 
Three Months Ended
 
Nine Months Ended
Property and equipment impairments
$
1

 
$
8

Termination benefits

 
18

Total Renew Blue Phase 2 restructuring charges
$
1

 
$
26



The following table summarizes our restructuring accrual activity during the nine months ended October 29, 2016, related to termination benefits as a result of Renew Blue Phase 2 ($ in millions):
 
Termination
Benefits
Balances at January 30, 2016
$

Charges
19

Cash payments
(16
)
Adjustments(1)
(2
)
Balances at October 29, 2016
$
1


(1) Adjustments to termination benefits primarily 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. In the three and nine months ended October 29, 2016, we recognized benefits of $2 million and $1 million related to our Canadian brand consolidation, respectively, which was due to changes in our facility closure and other costs assumptions. In the third quarter of fiscal 2016, we incurred $5 million of restructuring charges related to lease exit costs and employee termination benefits. In the first nine months of 2016 we incurred $189 million of restructuring charges, which primarily consisted of lease exit costs, a tradename impairment, property and equipment impairments, employee termination benefits and inventory write-downs. 

The inventory write-downs related to our Canadian brand consolidation are presented in restructuring charges – cost of goods sold in our Condensed Consolidated Statements of Earnings, and the remainder of the restructuring charges 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 nine months ended October 29, 2016, and October 31, 2015, as well as the cumulative amount incurred through October 29, 2016, was as follows ($ in millions):
 
International
 
Three Months Ended
 
Nine Months Ended
 
 
 
October 29, 2016
 
October 31, 2015
 
October 29, 2016
 
October 31, 2015
 
Cumulative Amount
Inventory write-downs
$

 
$
(1
)
 
$

 
$
4

 
$
3

Property and equipment impairments

 

 

 
30

 
30

Tradename impairment

 

 

 
40

 
40

Termination benefits

 
2

 

 
26

 
25

Facility closure and other costs
(2
)
 
4

 
(1
)
 
89

 
101

Total Canadian brand consolidation restructuring charges
$
(2
)
 
$
5

 
$
(1
)
 
$
189

 
$
199



The following tables summarize our restructuring accrual activity during the nine months ended October 29, 2016, and October 31, 2015, 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 30, 2016
$
2

 
$
64

 
$
66

Charges

 
1

 
1

Cash payments
(2
)
 
(29
)
 
(31
)
Adjustments(1)

 
(2
)
 
(2
)
Changes in foreign currency exchange rates

 
3

 
3

Balances at October 29, 2016
$

 
$
37

 
$
37


 
Termination
Benefits
 
Facility
Closure and
Other Costs
 
Total
Balances at January 31, 2015
$

 
$

 
$

Charges
28

 
113

 
141

Cash payments
(22
)
 
(28
)
 
(50
)
Adjustments(1)
(2
)
 
(9
)
 
(11
)
Changes in foreign currency exchange rates

 
(3
)
 
(3
)
Balances at October 31, 2015
$
4

 
$
73

 
$
77

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

Short-Term Debt

U.S. Revolving Credit Facility

On June 27, 2016, we entered into a $1.25 billion five-year senior unsecured revolving credit facility agreement (the "Five-Year Facility Agreement") with a syndicate of banks. The Five-Year Facility Agreement replaced the previous $1.25 billion senior unsecured revolving credit facility (the "Previous Facility") with a syndicate of banks, which was originally scheduled to expire in June 2019, but was terminated on June 27, 2016. The Five-Year Facility Agreement permits borrowings up to $1.25 billion and expires in June 2021. At October 29, 2016, there were no borrowings outstanding and $1.25 billion was available under the Five-Year Facility Agreement. In addition, there were no borrowings outstanding under the Previous Facility as of January 30, 2016, and October 31, 2015.

The interest rate under the Five-Year Facility Agreement is variable and is determined at our option as: (i) the sum of (a) the greatest of (1) JPMorgan Chase Bank, N.A.'s prime rate, (2) the greater of the federal funds rate and the overnight bank funding rate plus, in each case, 0.5% and (3) the one-month London Interbank Offered Rate (“LIBOR”), subject to certain adjustments plus 1% and (b) a variable margin rate (the “ABR Margin”); or (ii) the LIBOR plus a variable margin rate (the “LIBOR Margin”). In addition, a facility fee is assessed on the commitment amount. The ABR Margin, LIBOR Margin and the facility fee are based upon our current senior unsecured debt rating. Under the Five-Year Facility Agreement, the ABR Margin ranges from 0.00% to 0.50%, the LIBOR Margin ranges from 0.90% to 1.50%, and the facility fee ranges from 0.100% to 0.250%.
 
The Five-Year Facility Agreement is guaranteed by certain of our subsidiaries and contains customary affirmative and negative covenants materially consistent with the Previous Facility. Among other things, these covenants restrict our and certain of our subsidiaries' ability to incur certain types or amounts of indebtedness, incur liens on certain assets, make material changes in corporate structure or the nature of our business, dispose of material assets, engage in a change in control transaction, make certain foreign investments, enter into certain restrictive agreements or engage in certain transactions with affiliates. The Five-Year Facility Agreement also contains covenants that require us to maintain a maximum quarterly cash flow leverage ratio and a minimum quarterly interest coverage ratio (both ratios measured quarterly for the previous 12 months). The Five-Year Facility Agreement contains default provisions including, but not limited to, failure to pay interest or principal when due and failure to comply with covenants.

Long-Term Debt

Long-term debt consisted of the following ($ in millions):
 
October 29, 2016
 
January 30, 2016
 
October 31, 2015
2016 Notes
$

 
$
350

 
$
350

2018 Notes
500

 
500

 
500

2021 Notes
650

 
650

 
649

Interest rate swap valuation adjustments
13

 
25

 
10

Subtotal
1,163

 
1,525

 
1,509

Debt discounts and issuance costs
(5
)
 
(7
)
 
(6
)
Financing lease obligations
180

 
178

 
88

Capital lease obligations
29

 
38

 
42

Total long-term debt
1,367

 
1,734

 
1,633

Less: current portion(1)
(43
)
 
(395
)
 
(383
)
Total long-term debt, less current portion
$
1,324

 
$
1,339

 
$
1,250

 
(1)
Our 2016 Notes, due March 15, 2016, were classified in our current portion of long-term debt as of January 30, 2016 and October 31, 2015, respectively. In March 2016, we repaid the 2016 Notes using existing cash resources.

The fair value of total long-term debt, excluding debt discounts and issuance costs and financing and capital lease obligations, approximated $1,260 million, $1,543 million and $1,587 million at October 29, 2016, January 30, 2016, and October 31, 2015, respectively, based primarily on the market prices quoted from external sources, compared with carrying values of $1,163 million, $1,525 million and $1,509 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 30, 2016, 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 a portion of our 2018 Notes and 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 October 29, 2016, January 30, 2016, and October 31, 2015 ($ in millions):
 
October 29, 2016
 
January 30, 2016
 
October 31, 2015
Contract Type
Assets
 
Liabilities
 
Assets
 
Liabilities
 
Assets
 
Liabilities
Derivatives designated as net investment hedges(1)
$
4

 
$
3

 
$
15

 
$
1

 
$
12

 
$

Derivatives designated as interest rate swaps(2)
13

 

 
25

 

 
10

 

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

 

 
3

 

 
2

 

Total
$
18

 
$
3

 
$
43

 
$
1

 
$
24

 
$

(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 on other comprehensive income ("OCI") and on our Condensed Consolidated Statements of Earnings for the three and nine months ended October 29, 2016, and October 31, 2015 ($ in millions):
 
Three Months Ended
 
Nine Months Ended
 
October 29, 2016
 
October 31, 2015
 
October 29, 2016
 
October 31, 2015
Contract Type
Pre-tax Gain(Loss) Recognized in OCI
 
Gain(Loss) Reclassified from Accumulated OCI to Earnings (Effective Portion)
 
Pre-tax Gain(Loss) Recognized in OCI
 
Gain(Loss) Reclassified from Accumulated OCI to Earnings (Effective Portion)
 
Pre-tax Gain(Loss) Recognized in OCI
 
Gain(Loss) Reclassified from Accumulated OCI to Earnings (Effective Portion)
 
Pre-tax Gain(Loss) Recognized in OCI
 
Gain(Loss) Reclassified from Accumulated OCI to Earnings (Effective Portion)
Derivatives designated as net investment hedges
$
6

 
$

 
$

 
$

 
$
(10
)
 
$

 
$
6

 
$



The following tables present the effects of derivative instruments on our Condensed Consolidated Statements of Earnings for the three and nine months ended October 29, 2016, and October 31, 2015 ($ in millions):
 
Gain (Loss) Recognized within SG&A
 
Three Months Ended
 
Nine Months Ended
Contract Type
October 29, 2016
 
October 31, 2015
 
October 29, 2016
 
October 31, 2015
No hedge designation (foreign exchange forward contracts)
$
1

 
$
1

 
$
(2
)
 
$
(3
)

 
Gain (Loss) Recognized within Interest Expense
 
Three Months Ended
 
Nine Months Ended
Contract Type
October 29, 2016
 
October 31, 2015
 
October 29, 2016
 
October 31, 2015
Interest rate swap gain
$
(14
)
 
$
(3
)
 
$
(12
)
 
$
9

Adjustments to carrying value of long-term debt
14

 
3

 
12

 
(9
)
Net impact on Condensed Consolidated Statements of Earnings
$

 
$

 
$

 
$



The following table presents the notional amounts of our derivative instruments at October 29, 2016, January 30, 2016, and October 31, 2015 ($ in millions):
 
Notional Amount
Contract Type
October 29, 2016
 
January 30, 2016
 
October 31, 2015
Derivatives designated as net investment hedges
$
203

 
$
208

 
$
222

Derivatives designated as interest rate swaps
750

 
750

 
750

No hedge designation (foreign exchange forward contracts)
59

 
94

 
195

Total
$
1,012

 
$
1,052

 
$
1,167

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 nine months ended October 29, 2016, and October 31, 2015 ($ and shares in millions, except per share amounts):
 
Three Months Ended
 
Nine Months Ended
 
October 29, 2016
 
October 31, 2015
 
October 29, 2016
 
October 31, 2015
Numerator
 

 
 

 
 
 
 
Net earnings from continuing operations
$
192

 
$
129

 
$
600

 
$
330

 


 


 
 
 
 
Denominator
 
 
 
 
 
 
 
Weighted-average common shares outstanding
316.2

 
344.7

 
320.2

 
348.9

Dilutive effect of stock compensation plan awards
3.8

 
4.3

 
3.4

 
4.7

Weighted-average common shares outstanding, assuming dilution
320.0

 
349.0

 
323.6

 
353.6

 
 
 
 
 
 
 
 
Net earnings per share from continuing operations
 
 
 
 
 
 
 
Basic
$
0.61

 
$
0.37

 
$
1.87

 
$
0.95

Diluted
$
0.60

 
$
0.37

 
$
1.85

 
$
0.93



The computation of weighted-average common shares outstanding, assuming dilution, excluded options to purchase 6.3 million and 10.1 million shares of or common stock for the three months ended October 29, 2016, and October 31, 2015, respectively, and options to purchase 6.9 million and 10.0 million shares of our common stock for the nine months ended October 29, 2016, and October 31, 2015, 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 nine months ended October 29, 2016, and October 31, 2015 ($ in millions):
 
Foreign Currency Translation
Balances at July 30, 2016
$
296

Foreign currency translation adjustments
(19
)
Balances at October 29, 2016
$
277

 
 
 
Foreign Currency Translation
Balances at January 30, 2016
$
271

Foreign currency translation adjustments
6

Balances at October 29, 2016
$
277

 
 
 
Foreign Currency Translation
Balances at August 1, 2015
$
298

Foreign currency translation adjustments
(2
)
Balances at October 31, 2015
$
296

 
 
 
Foreign Currency Translation
Balances at January 31, 2015
$
382

Foreign currency translation adjustments
(19
)
Reclassification of foreign currency translation adjustments into earnings due to sale of business
(67
)
Balances at October 31, 2015
$
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 [Text Block]
Repurchase of Common Stock

We have a $5.0 billion share repurchase program that was authorized by our Board of Directors in June 2011. There is no expiration date governing the period over which we can repurchase shares under the June 2011 share repurchase program. As of January 30, 2016, $3.0 billion remained available for share repurchases. On February 25, 2016, we announced our intent to repurchase up to an additional $1.0 billion over two years.

On January 22, 2016, we entered into a variable notional accelerated share repurchase agreement ("ASR") with a third party financial institution to repurchase $150 million to $175 million of our common stock. Under the agreement, we paid $175 million at the beginning of the contract and received an initial delivery of 4.4 million shares on January 25, 2016. We retired these shares and recorded a $120 million reduction to shareholders' equity. As of January 30, 2016, the remaining $55 million was included as a reduction of shareholders' equity in Prepaid share repurchase in the Condensed Consolidated Balance Sheets. The ASR was settled on February 17, 2016, for a final notional amount of $165 million. Accordingly, we received 1.6 million shares, which were retired, and a $10 million cash payment from our counter-party equal to the difference between the $175 million up-front payment and the final notional amount.

The following table presents information regarding the shares we repurchased during the three months and nine months ended October 29, 2016, and October 31, 2015 ($ and shares in millions, except per share amounts):
 
Three Months Ended
 
Nine Months Ended
 
October 29, 2016
 
October 31, 2015
 
October 29, 2016
 
October 31, 2015
Total cost of shares repurchased
 
 
 
 
 
 
 
  Open market(1)
$
206

 
$
64

 
$
483

 
$
388

  Settlement of January 2016 ASR

 

 
45

 

  Total
$
206

 
$
64

 
$
528

 
$
388

 

 
 
 
 
 
 
Average price per share
 
 
 
 
 
 
 
  Open market
$
37.67

 
$
35.17

 
$
33.52

 
$
34.20

  Settlement of January 2016 ASR
$

 
$

 
$
28.55

 
$

  Average
$
37.67

 
$
35.17

 
$
33.03

 
$
34.20

 
 
 
 
 
 
 
 
Number of shares repurchased and retired
 
 
 
 
 
 
 
  Open market(1)
5.5

 
1.8

 
14.4

 
11.3

  Settlement of January 2016 ASR

 

 
1.6

 

  Total
5.5

 
1.8

 
16.0

 
11.3

(1)
As of October 29, 2016, $11 million, or 0.3 million shares, in trades remained unsettled. As of October 31, 2015, $3 million, or 0.1 million shares, in trades remained unsettled. The liability for unsettled trades is included in Accrued liabilities in the Condensed Consolidated Balance Sheets.

At October 29, 2016, approximately $2.5 billion remained available for additional purchases under the June 2011 share repurchase program. Repurchased shares are retired and constitute authorized but unissued shares.
Segments (Notes)
Segments
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 outside the U.S. and its territories). 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 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 30, 2016.

Revenue by reportable segment was as follows ($ in millions):
 
Three Months Ended
 
Nine Months Ended
 
October 29, 2016
 
October 31, 2015
 
October 29, 2016
 
October 31, 2015
Domestic
$
8,192

 
$
8,090

 
$
23,910

 
$
23,858

International
753

 
729

 
2,011

 
2,047

Total revenue
$
8,945

 
$
8,819

 
$
25,921

 
$
25,905



Operating income (loss) by reportable segment and the reconciliation to earnings from continuing operations before income tax expense were as follows ($ in millions):
 
Three Months Ended
 
Nine Months Ended
 
October 29, 2016
 
October 31, 2015
 
October 29, 2016
 
October 31, 2015
Domestic
$
298

 
$
244

 
$
959

 
$
857

International
14

 
(14
)
 
14

 
(253
)
Total operating income
312

 
230

 
973

 
604

Other income (expense)
 
 
 
 
 
 
 
Gain on sale of investments

 

 
2

 
2

Investment income and other
8

 
3

 
22

 
14

Interest expense
(16
)
 
(20
)
 
(54
)
 
(60
)
Earnings from continuing operations before income tax expense
$
304

 
$
213

 
$
943

 
$
560

 
Assets by reportable segment were as follows ($ in millions):
 
October 29, 2016
 
January 30, 2016
 
October 31, 2015
Domestic
$
13,115

 
$
12,318

 
$
13,817

International
1,427

 
1,201

 
1,352

Total assets
$
14,542

 
$
13,519

 
$
15,169

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. The trial court has set a January 2017 conference to discuss next steps. We continue to believe that these 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.

Cathode Ray Tube Action

On November 14, 2011, we filed a lawsuit captioned In re Cathode Ray Tube Antitrust Litigation in the United States District Court for the Northern District of California. We alleged that the defendants engaged in price fixing in violation of antitrust regulations relating to cathode ray tubes for the time period between March 1, 1995, through November 25, 2007. In connection with this action, we received settlement proceeds, net of legal expenses and costs, in the amount of $75 million during fiscal 2016. In the first quarter of fiscal 2017, we settled with the remaining defendants for $161 million, net of legal expenses and costs; $127 million of which we have received and $34 million of which we expect to receive in January 2017 or earlier.  Settlement proceeds were recognized in Cost of goods sold with the associated legal expenses recorded in SG&A. This matter is now resolved.

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)
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]
The following table reconciles the balance sheet line items impacted by the adoption of these standards at October 31, 2015:
Balance Sheet
October 31, 2015 Reported
 
ASU 2015-03 & 2015-15 Adjustments
 
ASU 2015-17 Adjustments
 
October 31, 2015 Adjusted
Other current assets
$
676

 
$
(2
)
 
$
(265
)
 
$
409

Other assets
636

 
(4
)
 
265

 
897

   Total assets
$
15,175

 
$
(6
)
 
$

 
$
15,169

 
 
 
 
 
 
 
 
Long-term debt
$
1,256

 
$
(6
)
 
$

 
$
1,250

   Total liabilities & equity
$
15,175

 
$
(6
)
 
$

 
$
15,169

Discontinued Operations Discontinued Operations (Tables)
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures
The aggregate financial results of discontinued operations were as follows ($ in millions):
 
Three Months Ended
 
Nine Months Ended
 
October 29, 2016
 
October 31, 2015
 
October 29, 2016
 
October 31, 2015
Revenue
$

 
$

 
$

 
$
217

Gain (loss) from discontinued operations before income tax benefit (expense)
2

 
(4
)
 
28

 
(14
)
Income tax benefit (expense)

 

 
(7
)
 
3

Gain on sale of discontinued operations

 

 

 
99

Net gain (loss) from discontinued operations
$
2

 
$
(4
)
 
$
21

 
$
88

Fair Value Measurements (Tables)
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 October 29, 2016, January 30, 2016, and October 31, 2015, according to the valuation techniques we used to determine their fair values ($ in millions).
 
 
 
Fair Value at
 
Fair Value Hierarchy
 
October 29, 2016
 
January 30, 2016
 
October 31, 2015
ASSETS
 
 
 

 
 

 
 

Cash and cash equivalents
 
 
 

 
 

 
 

Money market funds
Level 1
 
$
97

 
$
51

 
$
2

Commercial paper
Level 2
 

 
265

 
108

Time deposits
Level 2
 
11

 
306

 
222

Short-term investments
 
 
 
 
 
 
 
Corporate bonds
Level 2
 

 
193

 
333

Commercial paper
Level 2
 
250

 
122

 
288

Time deposits
Level 2
 
1,527

 
990

 
1,029

Other current assets
 
 
 

 
 
 
 
Money market funds
Level 1
 
3

 

 

Commercial paper
Level 2
 
60

 

 

Foreign currency derivative instruments
Level 2
 
5

 
18

 
14

Time deposits
Level 2
 
100

 
79

 
79

Other assets
 
 
 
 
 
 
 
Interest rate swap derivative instruments
Level 2
 
13

 
25

 
10

Auction rate securities
Level 3
 

 
2

 
2

Marketable securities that fund deferred compensation
Level 1
 
96

 
96

 
96

 
 
 
 
 
 
 
 
LIABILITIES
 
 
 

 
 

 
 

Accrued Liabilities
 
 
 

 
 

 
 

Foreign currency derivative instruments
Level 2
 
3

 
1

 

 
The following table summarizes the fair value remeasurements for non-restructuring property and equipment impairments and restructuring impairments recorded during the three and nine months ended October 29, 2016, and October 31, 2015 ($ in millions):
 
Impairments
 
Remaining Net Carrying Value(1)
 
Three Months Ended
 
Nine Months Ended
 
 
 
 
 
October 29, 2016
 
October 31, 2015
 
October 29, 2016
 
October 31, 2015
 
October 29, 2016
 
October 31, 2015
Property and equipment (non-restructuring)
$
8

 
$
9

 
$
16

 
$
34

 
$

 
$
10

Restructuring activities(2)
 
 
 
 
 
 
 
 
 
 
 
Tradename

 

 

 
40

 

 

Property and equipment
1

 

 
8

 
30

 

 

Total
$
9

 
$
9

 
$
24

 
$
104

 
$

 
$
10

(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 October 29, 2016, and October 31, 2015.
(2)
See Note 5, Restructuring Charges, for additional information.

Goodwill and Intangible Assets (Tables)
The changes in the carrying values of goodwill and indefinite-lived tradenames by segment were as follows in the nine months ended October 31, 2015 ($ in millions):
 
Goodwill
 
Indefinite-lived Tradenames
 
Domestic
 
Domestic
 
International
 
Total
Balances at January 31, 2015
$
425

 
$
18

 
$
39

 
$
57

Changes in foreign currency exchange rates

 

 
1

 
1

Canada brand restructuring(1)

 

 
(40
)
 
(40
)
Balances at October 31, 2015
$
425

 
$
18

 
$

 
$
18


(1)
Represents the Future Shop tradename impairment as a result of the Canadian brand consolidation in the first quarter of fiscal 2016. See Note 5, Restructuring Charges, for further discussion of the Canadian brand consolidation.
The following table provides the gross carrying amount of goodwill and cumulative goodwill impairment ($ in millions):
 
October 29, 2016
 
January 30, 2016
 
October 31, 2015
 
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)
Charges incurred in the three and nine months ended October 29, 2016, and October 31, 2015, for our restructuring activities were as follows ($ in millions):
 
Three Months Ended
 
Nine Months Ended
 
October 29, 2016
 
October 31, 2015
 
October 29, 2016
 
October 31, 2015
Renew Blue Phase 2
$
1

 
$

 
$
26

 
$

Canadian brand consolidation
(2
)
 
5

 
(1
)
 
189

Renew Blue(1)
1

 

 
4

 
(2
)
Other restructuring activities(2)
1

 
2

 
1

 
2

Total restructuring charges
$
1

 
$
7

 
$
30

 
$
189


(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 $10 million at October 29, 2016.
(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 $12 million at October 29, 2016.
The composition of the restructuring charges we incurred during the three and nine months ended October 29, 2016, for Renew Blue Phase 2 was as follows ($ in millions):
 
Domestic
 
October 29, 2016
 
Three Months Ended
 
Nine Months Ended
Property and equipment impairments
$
1

 
$
8

Termination benefits

 
18

Total Renew Blue Phase 2 restructuring charges
$
1

 
$
26



The following table summarizes our restructuring accrual activity during the nine months ended October 29, 2016, related to termination benefits as a result of Renew Blue Phase 2 ($ in millions):
 
Termination
Benefits
Balances at January 30, 2016
$

Charges
19

Cash payments
(16
)
Adjustments(1)
(2
)
Balances at October 29, 2016
$
1


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

The composition of total restructuring charges we incurred for the Canadian brand consolidation in the three and nine months ended October 29, 2016, and October 31, 2015, as well as the cumulative amount incurred through October 29, 2016, was as follows ($ in millions):
 
International
 
Three Months Ended
 
Nine Months Ended
 
 
 
October 29, 2016
 
October 31, 2015
 
October 29, 2016
 
October 31, 2015
 
Cumulative Amount
Inventory write-downs
$

 
$
(1
)
 
$

 
$
4

 
$
3

Property and equipment impairments

 

 

 
30

 
30

Tradename impairment

 

 

 
40

 
40

Termination benefits

 
2

 

 
26

 
25

Facility closure and other costs
(2
)
 
4

 
(1
)
 
89

 
101

Total Canadian brand consolidation restructuring charges
$
(2
)
 
$
5

 
$
(1
)
 
$
189

 
$
199

The following tables summarize our restructuring accrual activity during the nine months ended October 29, 2016, and October 31, 2015, 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 30, 2016
$
2

 
$
64

 
$
66

Charges

 
1

 
1

Cash payments
(2
)
 
(29
)
 
(31
)
Adjustments(1)

 
(2
)
 
(2
)
Changes in foreign currency exchange rates

 
3

 
3

Balances at October 29, 2016
$

 
$
37

 
$
37


 
Termination
Benefits
 
Facility
Closure and
Other Costs
 
Total
Balances at January 31, 2015
$

 
$

 
$

Charges
28

 
113

 
141

Cash payments
(22
)
 
(28
)
 
(50
)
Adjustments(1)
(2
)
 
(9
)
 
(11
)
Changes in foreign currency exchange rates

 
(3
)
 
(3
)
Balances at October 31, 2015
$
4

 
$
73

 
$
77

(1) Adjustments to facility closure and other costs represent changes in sublease assumptions. Adjustments to termination benefits represent changes in retention assumptions.
Debt (Tables)
Schedule of Long-term Debt
Long-term debt consisted of the following ($ in millions):
 
October 29, 2016
 
January 30, 2016
 
October 31, 2015
2016 Notes
$

 
$
350

 
$
350

2018 Notes
500

 
500

 
500

2021 Notes
650

 
650

 
649

Interest rate swap valuation adjustments
13

 
25

 
10

Subtotal
1,163

 
1,525

 
1,509

Debt discounts and issuance costs
(5
)
 
(7
)
 
(6
)
Financing lease obligations
180

 
178

 
88

Capital lease obligations
29

 
38

 
42

Total long-term debt
1,367

 
1,734

 
1,633

Less: current portion(1)
(43
)
 
(395
)
 
(383
)
Total long-term debt, less current portion
$
1,324

 
$
1,339

 
$
1,250

 
(1)
Our 2016 Notes, due March 15, 2016, were classified in our current portion of long-term debt as of January 30, 2016 and October 31, 2015, respectively. In March 2016, we repaid the 2016 Notes using existing cash resources.
Derivative Instruments Derivative Instruments (Tables)
The following table presents the gross fair values for outstanding derivative instruments and the corresponding classification at October 29, 2016, January 30, 2016, and October 31, 2015 ($ in millions):
 
October 29, 2016
 
January 30, 2016
 
October 31, 2015
Contract Type
Assets
 
Liabilities
 
Assets
 
Liabilities
 
Assets
 
Liabilities
Derivatives designated as net investment hedges(1)
$
4

 
$
3

 
$
15

 
$
1

 
$
12

 
$

Derivatives designated as interest rate swaps(2)
13

 

 
25

 

 
10

 

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

 

 
3

 

 
2

 

Total
$
18

 
$
3

 
$
43

 
$
1

 
$
24

 
$

(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 on other comprehensive income ("OCI") and on our Condensed Consolidated Statements of Earnings for the three and nine months ended October 29, 2016, and October 31, 2015 ($ in millions):
 
Three Months Ended
 
Nine Months Ended
 
October 29, 2016
 
October 31, 2015
 
October 29, 2016
 
October 31, 2015
Contract Type
Pre-tax Gain(Loss) Recognized in OCI
 
Gain(Loss) Reclassified from Accumulated OCI to Earnings (Effective Portion)
 
Pre-tax Gain(Loss) Recognized in OCI
 
Gain(Loss) Reclassified from Accumulated OCI to Earnings (Effective Portion)
 
Pre-tax Gain(Loss) Recognized in OCI
 
Gain(Loss) Reclassified from Accumulated OCI to Earnings (Effective Portion)
 
Pre-tax Gain(Loss) Recognized in OCI
 
Gain(Loss) Reclassified from Accumulated OCI to Earnings (Effective Portion)
Derivatives designated as net investment hedges
$
6

 
$

 
$

 
$

 
$
(10
)
 
$

 
$
6

 
$

The following tables present the effects of derivative instruments on our Condensed Consolidated Statements of Earnings for the three and nine months ended October 29, 2016, and October 31, 2015 ($ in millions):
 
Gain (Loss) Recognized within SG&A
 
Three Months Ended
 
Nine Months Ended
Contract Type
October 29, 2016
 
October 31, 2015
 
October 29, 2016
 
October 31, 2015
No hedge designation (foreign exchange forward contracts)
$
1

 
$
1

 
$
(2
)
 
$
(3
)
 
Gain (Loss) Recognized within Interest Expense
 
Three Months Ended
 
Nine Months Ended
Contract Type
October 29, 2016
 
October 31, 2015
 
October 29, 2016
 
October 31, 2015
Interest rate swap gain
$
(14
)
 
$
(3
)
 
$
(12
)
 
$
9

Adjustments to carrying value of long-term debt
14

 
3

 
12

 
(9
)
Net impact on Condensed Consolidated Statements of Earnings
$

 
$

 
$

 
$

The following table presents the notional amounts of our derivative instruments at October 29, 2016, January 30, 2016, and October 31, 2015 ($ in millions):
 
Notional Amount
Contract Type
October 29, 2016
 
January 30, 2016
 
October 31, 2015
Derivatives designated as net investment hedges
$
203

 
$
208

 
$
222

Derivatives designated as interest rate swaps
750

 
750

 
750

No hedge designation (foreign exchange forward contracts)
59

 
94

 
195

Total
$
1,012

 
$
1,052

 
$
1,167

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 nine months ended October 29, 2016, and October 31, 2015 ($ and shares in millions, except per share amounts):
 
Three Months Ended
 
Nine Months Ended
 
October 29, 2016
 
October 31, 2015
 
October 29, 2016
 
October 31, 2015
Numerator
 

 
 

 
 
 
 
Net earnings from continuing operations
$
192

 
$
129

 
$
600

 
$
330

 


 


 
 
 
 
Denominator
 
 
 
 
 
 
 
Weighted-average common shares outstanding
316.2

 
344.7

 
320.2

 
348.9

Dilutive effect of stock compensation plan awards
3.8

 
4.3

 
3.4

 
4.7

Weighted-average common shares outstanding, assuming dilution
320.0

 
349.0

 
323.6

 
353.6

 
 
 
 
 
 
 
 
Net earnings per share from continuing operations
 
 
 
 
 
 
 
Basic
$
0.61

 
$
0.37

 
$
1.87

 
$
0.95

Diluted
$
0.60

 
$
0.37

 
$
1.85

 
$
0.93

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 nine months ended October 29, 2016, and October 31, 2015 ($ in millions):
 
Foreign Currency Translation
Balances at July 30, 2016
$
296

Foreign currency translation adjustments
(19
)
Balances at October 29, 2016
$
277

 
 
 
Foreign Currency Translation
Balances at January 30, 2016
$
271

Foreign currency translation adjustments
6

Balances at October 29, 2016
$
277

 
 
 
Foreign Currency Translation
Balances at August 1, 2015
$
298

Foreign currency translation adjustments
(2
)
Balances at October 31, 2015
$
296

 
 
 
Foreign Currency Translation
Balances at January 31, 2015
$
382

Foreign currency translation adjustments
(19
)
Reclassification of foreign currency translation adjustments into earnings due to sale of business
(67
)
Balances at October 31, 2015
$
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 months and nine months ended October 29, 2016, and October 31, 2015 ($ and shares in millions, except per share amounts):
 
Three Months Ended
 
Nine Months Ended
 
October 29, 2016
 
October 31, 2015
 
October 29, 2016
 
October 31, 2015
Total cost of shares repurchased
 
 
 
 
 
 
 
  Open market(1)
$
206

 
$
64

 
$
483

 
$
388

  Settlement of January 2016 ASR

 

 
45

 

  Total
$
206

 
$
64

 
$
528

 
$
388

 

 
 
 
 
 
 
Average price per share
 
 
 
 
 
 
 
  Open market
$
37.67

 
$
35.17

 
$
33.52

 
$
34.20

  Settlement of January 2016 ASR
$

 
$

 
$
28.55

 
$

  Average
$
37.67

 
$
35.17

 
$
33.03

 
$
34.20

 
 
 
 
 
 
 
 
Number of shares repurchased and retired
 
 
 
 
 
 
 
  Open market(1)
5.5

 
1.8

 
14.4

 
11.3

  Settlement of January 2016 ASR

 

 
1.6

 

  Total
5.5

 
1.8

 
16.0

 
11.3

(1)
As of October 29, 2016, $11 million, or 0.3 million shares, in trades remained unsettled. As of October 31, 2015, $3 million, or 0.1 million shares, in trades remained unsettled. The liability for unsettled trades is included in Accrued liabilities in the Condensed Consolidated Balance Sheets.
Segments (Tables)
Business Segment Information
Revenue by reportable segment was as follows ($ in millions):
 
Three Months Ended
 
Nine Months Ended
 
October 29, 2016
 
October 31, 2015
 
October 29, 2016
 
October 31, 2015
Domestic
$
8,192

 
$
8,090

 
$
23,910

 
$
23,858

International
753

 
729

 
2,011

 
2,047

Total revenue
$
8,945

 
$
8,819

 
$
25,921

 
$
25,905



Operating income (loss) by reportable segment and the reconciliation to earnings from continuing operations before income tax expense were as follows ($ in millions):
 
Three Months Ended
 
Nine Months Ended
 
October 29, 2016
 
October 31, 2015
 
October 29, 2016
 
October 31, 2015
Domestic
$
298

 
$
244

 
$
959

 
$
857

International
14

 
(14
)
 
14

 
(253
)
Total operating income
312

 
230

 
973

 
604

Other income (expense)
 
 
 
 
 
 
 
Gain on sale of investments

 

 
2

 
2

Investment income and other
8

 
3

 
22

 
14

Interest expense
(16
)
 
(20
)
 
(54
)
 
(60
)
Earnings from continuing operations before income tax expense
$
304

 
$
213

 
$
943

 
$
560

 
Assets by reportable segment were as follows ($ in millions):
 
October 29, 2016
 
January 30, 2016
 
October 31, 2015
Domestic
$
13,115

 
$
12,318

 
$
13,817

International
1,427

 
1,201

 
1,352

Total assets
$
14,542

 
$
13,519

 
$
15,169

Basis of Presentation (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Oct. 29, 2016
Oct. 31, 2015
Jan. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
 
 
 
Number of Weeks in Fiscal Period
39 
39 
 
Reporting period lag for consolidation of financial results
1 month 
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
 
Other Assets, Current
$ 398 
$ 409 
$ 392 
Other Assets
 
897 
 
Assets
14,542 
15,169 
13,519 
Long-term Debt, Excluding Current Maturities
1,324 
1,250 
1,339 
Liabilities and Equity
14,542 
15,169 
13,519 
Accounting Standards Update 2015-03 and 2015-15 [Member]
 
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
 
Other Assets, Current
 
(2)
 
Other Assets
 
(4)
 
Assets
 
(6)
 
Long-term Debt, Excluding Current Maturities
 
(6)
 
Liabilities and Equity
 
(6)
 
Accounting Standards Update 2015-17 [Member]
 
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
 
Other Assets, Current
 
(265)
 
Other Assets
 
265 
 
Assets
 
 
As reported [Member]
 
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
 
Other Assets, Current
 
676 
 
Other Assets
 
636 
 
Assets
 
15,175 
 
Long-term Debt, Excluding Current Maturities
 
1,256 
 
Liabilities and Equity
 
$ 15,175 
 
Discontinued Operations Discontinued Operations (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 29, 2016
Oct. 31, 2015
Oct. 29, 2016
Oct. 31, 2015
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
 
 
 
 
Revenue
$ 0 
$ 0 
$ 0 
$ 217 
Gain (loss) from discontinued operations before income tax benefit (expense)
(4)
28 
(14)
Income tax benefit (expense)
(7)
Gain on sale of discontinued operations
99 
Net gain (loss) from discontinued operations
$ 2 
$ (4)
$ 21 
$ 88 
Fair Value Measurements - Recurring (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 29, 2016
Oct. 29, 2016
Cash and Cash Equivalents [Member]
Fair Value, Measurements, Recurring [Member]
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Money Market Funds [Member]
Jan. 30, 2016
Cash and Cash Equivalents [Member]
Fair Value, Measurements, Recurring [Member]
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Money Market Funds [Member]
Oct. 31, 2015
Cash and Cash Equivalents [Member]
Fair Value, Measurements, Recurring [Member]
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Money Market Funds [Member]
Oct. 29, 2016
Cash and Cash Equivalents [Member]
Fair Value, Measurements, Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Commercial Paper [Member]
Jan. 30, 2016
Cash and Cash Equivalents [Member]
Fair Value, Measurements, Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Commercial Paper [Member]
Oct. 31, 2015
Cash and Cash Equivalents [Member]
Fair Value, Measurements, Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Commercial Paper [Member]
Oct. 29, 2016
Cash and Cash Equivalents [Member]
Fair Value, Measurements, Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Time Deposits [Member]
Jan. 30, 2016
Cash and Cash Equivalents [Member]
Fair Value, Measurements, Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Time Deposits [Member]
Oct. 31, 2015
Cash and Cash Equivalents [Member]
Fair Value, Measurements, Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Time Deposits [Member]
Oct. 29, 2016
Other Current Assets [Member]
Fair Value, Measurements, Recurring [Member]
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Money Market Funds [Member]
Jan. 30, 2016
Other Current Assets [Member]
Fair Value, Measurements, Recurring [Member]
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Money Market Funds [Member]
Oct. 31, 2015
Other Current Assets [Member]
Fair Value, Measurements, Recurring [Member]
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Money Market Funds [Member]
Oct. 29, 2016
Other Current Assets [Member]
Fair Value, Measurements, Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Foreign Exchange and Other Derivative Financial Instruments [Member]
Jan. 30, 2016
Other Current Assets [Member]
Fair Value, Measurements, Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Foreign Exchange and Other Derivative Financial Instruments [Member]
Oct. 31, 2015
Other Current Assets [Member]
Fair Value, Measurements, Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Foreign Exchange and Other Derivative Financial Instruments [Member]
Oct. 29, 2016
Other Current Assets [Member]
Fair Value, Measurements, Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Commercial Paper [Member]
Jan. 30, 2016
Other Current Assets [Member]
Fair Value, Measurements, Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Commercial Paper [Member]
Oct. 31, 2015
Other Current Assets [Member]
Fair Value, Measurements, Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Commercial Paper [Member]
Oct. 29, 2016
Other Current Assets [Member]
Fair Value, Measurements, Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Time Deposits [Member]
Jan. 30, 2016
Other Current Assets [Member]
Fair Value, Measurements, Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Time Deposits [Member]
Oct. 31, 2015
Other Current Assets [Member]
Fair Value, Measurements, Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Time Deposits [Member]
Oct. 29, 2016
Short-term Investments [Member]
Fair Value, Measurements, Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Corporate Bond Securities [Member]
Jan. 30, 2016
Short-term Investments [Member]
Fair Value, Measurements, Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Corporate Bond Securities [Member]
Oct. 31, 2015
Short-term Investments [Member]
Fair Value, Measurements, Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Corporate Bond Securities [Member]
Oct. 29, 2016
Short-term Investments [Member]
Fair Value, Measurements, Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Commercial Paper [Member]
Jan. 30, 2016
Short-term Investments [Member]
Fair Value, Measurements, Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Commercial Paper [Member]
Oct. 31, 2015
Short-term Investments [Member]
Fair Value, Measurements, Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Commercial Paper [Member]
Oct. 29, 2016
Short-term Investments [Member]
Fair Value, Measurements, Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Time Deposits [Member]
Jan. 30, 2016
Short-term Investments [Member]
Fair Value, Measurements, Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Time Deposits [Member]
Oct. 31, 2015
Short-term Investments [Member]
Fair Value, Measurements, Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Time Deposits [Member]
Oct. 29, 2016
Other Assets [Member]
Fair Value, Measurements, Recurring [Member]
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Marketable securities that fund deferred compensation [Member]
Jan. 30, 2016
Other Assets [Member]
Fair Value, Measurements, Recurring [Member]
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Marketable securities that fund deferred compensation [Member]
Oct. 31, 2015
Other Assets [Member]
Fair Value, Measurements, Recurring [Member]
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Marketable securities that fund deferred compensation [Member]
Oct. 29, 2016
Other Assets [Member]
Fair Value, Measurements, Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Interest Rate Swap [Member]
Jan. 30, 2016
Other Assets [Member]
Fair Value, Measurements, Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Interest Rate Swap [Member]
Oct. 31, 2015
Other Assets [Member]
Fair Value, Measurements, Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Interest Rate Swap [Member]
Oct. 29, 2016
Other Assets [Member]
Fair Value, Measurements, Recurring [Member]
Significant Unobservable Inputs (Level 3) [Member]
Auction Rate Securities [Member]
Jan. 30, 2016
Other Assets [Member]
Fair Value, Measurements, Recurring [Member]
Significant Unobservable Inputs (Level 3) [Member]
Auction Rate Securities [Member]
Oct. 31, 2015
Other Assets [Member]
Fair Value, Measurements, Recurring [Member]
Significant Unobservable Inputs (Level 3) [Member]
Auction Rate Securities [Member]
Oct. 29, 2016
Accrued Liabilities [Member]
Fair Value, Measurements, Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Foreign Exchange and Other Derivative Financial Instruments [Member]
Jan. 30, 2016
Accrued Liabilities [Member]
Fair Value, Measurements, Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Foreign Exchange and Other Derivative Financial Instruments [Member]
Oct. 31, 2015
Accrued Liabilities [Member]
Fair Value, Measurements, Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Foreign Exchange and Other Derivative Financial Instruments [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value, Level 3 Transfers out, Description
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$ 97 
$ 51 
$ 2 
$ 0 
$ 265 
$ 108 
$ 11 
$ 306 
$ 222 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Short-term investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
193 
333 
250 
122 
288 
1,527 
990 
1,029 
 
 
 
 
 
 
 
 
 
 
 
 
Other Current Assets
 
 
 
 
 
 
 
 
 
 
18 
14 
60 
100 
79 
79 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
13 
25 
10 
 
 
 
Marketable Equity Securities that Fund Deferred Compensation, Fair Value Disclosure
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
96 
96 
96 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign Currency Contracts, Liability, Fair Value Disclosure
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 3 
$ 1 
$ 0 
Fair Value Measurements - Nonrecurring (Details) (Continuing Operations [Member], Fair Value, Measurements, Nonrecurring [Member], Significant Unobservable Inputs (Level 3) [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 29, 2016
Oct. 31, 2015
Oct. 29, 2016
Oct. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Property and equipment, impairments
$ 8 
$ 9 
$ 16 
$ 34 
Property and equipment, remaining net carrying value
1
10 1
1
10 1
Total remaining net carrying value
10 
10 
Total impairments
24 
104 
Impairment of Intangible Assets Related to Restructuring [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Tradename, impairments
2
2
2
40 2
Property and equipment write-downs [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Property and equipment, impairments
2
2
2
30 2
Property and equipment, 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
9 Months Ended
Oct. 31, 2015
Oct. 29, 2016
Jan. 30, 2016
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 [Roll Forward]
 
 
 
Goodwill, Balance at the beginning of the period
 
425 
425 
Goodwill, Balance at the end of the period
425 
425 
425 
Indefinite-lived Tradenames [Roll Forward]
 
 
 
Indefinite-Lived Tradenames, Beginning balance
57 
 
 
Indefinite-lived Intangible Assets, Translation Adjustments
 
 
Indefinite-lived Intangible Assets, Translation and Purchase Accounting Adjustments
(40)1
 
 
Indefinite-lived Tradenames, Ending balance
18 
 
 
Gross amount of goodwill and the accumulated goodwill impairment losses
 
 
 
Gross Carrying Amount
1,100 
1,100 
1,100 
Cumulative Impairment
(675)
(675)
(675)
Domestic [Member]
 
 
 
Schedule of Goodwill and Indefinite Lived Intangible Assets by Segment [Line Items]
 
 
 
Goodwill
425 
425 
425 
Goodwill [Roll Forward]
 
 
 
Goodwill, Balance at the beginning of the period
425 
425 
425 
Goodwill, Changes in foreign currency exchange rates
 
 
Goodwill, Impairments
1
 
 
Goodwill, Balance at the end of the period
425 
425 
425 
Indefinite-lived Tradenames [Roll Forward]
 
 
 
Indefinite-Lived Tradenames, Beginning balance
18 
 
 
Indefinite-lived Intangible Assets, Translation Adjustments
 
 
Indefinite-lived Intangible Assets, Translation and Purchase Accounting Adjustments
1
 
 
Indefinite-lived Tradenames, Ending balance
18 
 
 
International [Member]
 
 
 
Indefinite-lived Tradenames [Roll Forward]
 
 
 
Indefinite-Lived Tradenames, Beginning balance
39 
 
 
Indefinite-lived Intangible Assets, Translation Adjustments
 
 
Indefinite-lived Intangible Assets, Translation and Purchase Accounting Adjustments
(40)1
 
 
Indefinite-lived Tradenames, Ending balance
$ 0 
 
 
Restructuring Charges Summary Table (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 29, 2016
Oct. 31, 2015
Oct. 29, 2016
Oct. 31, 2015
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring charges
$ 1 
$ 7 
$ 30 
$ 189 
Facility closure and other costs [Member] |
Restructuring Program 2013 Renew Blue [Member] [Domain]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring Reserve
10 
 
10 
 
Facility closure and other costs [Member] |
Other Restructuring [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring Reserve
12 
 
12 
 
Continuing Operations [Member] |
Restructuring Program Renew Blue Phase 2 [Member] [Domain]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring charges
26 
Continuing Operations [Member] |
Restructuring Program 2013 Renew Blue [Member] [Domain]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring charges
1
1
1
(2)1
Continuing Operations [Member] |
Other Restructuring [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring charges
2
2
2
2
Continuing Operations [Member] |
International Segment [Member] |
Restructuring Program Canadian Brand Consolidation [Member and] [Domain]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring charges
$ (2)
$ 5 
$ (1)
$ 189 
Restructuring Charges - Renew Blue Phase 2 (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 29, 2016
Oct. 31, 2015
Oct. 29, 2016
Oct. 31, 2015
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring Charges
$ 1 
$ 7 
$ 30 
$ 189 
Termination benefits [Member] |
Restructuring Program Renew Blue Phase 2 [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring Charges
 
 
19 
 
Restructuring Reserve [Roll Forward]
 
 
 
 
Restructuring reserve, balance at the beginning of the period
 
 
 
Payments for Restructuring
 
 
(16)
 
Adjustments
 
 
(2)1
 
Restructuring reserve, balance at the end of the period
 
 
Continuing Operations [Member] |
Restructuring Program Renew Blue Phase 2 [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring Charges, Operating Income Impact
 
26 
 
Continuing Operations [Member] |
Termination benefits [Member] |
Restructuring Program Renew Blue Phase 2 [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring Charges, Operating Income Impact
 
18 
 
Continuing Operations [Member] |
Facility closure and other costs [Member] |
Restructuring Program Renew Blue Phase 2 [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring Charges, Operating Income Impact
$ 1 
 
$ 8 
 
Restructuring Charges - Canadian Brand Consolidation (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 29, 2016
Oct. 31, 2015
Oct. 29, 2016
Oct. 31, 2015
Restructuring Reserve [Roll Forward]
 
 
 
 
Restructuring charges
$ 1 
$ 7 
$ 30 
$ 189 
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
 
 
66 
Restructuring charges
 
 
141 
Cash payments
 
 
(31)
(50)
Adjustments
 
 
(2)1
(11)1
Restructuring Reserve, Translation Adjustment
 
 
(3)
Restructuring reserve, balance at the end of the period
37 
77 
37 
77 
Restructuring Program Canadian Brand Consolidation [Member] |
Termination benefits [Member]
 
 
 
 
Restructuring Reserve [Roll Forward]
 
 
 
 
Restructuring reserve, balance at the beginning of the period
 
 
Restructuring charges
 
 
28 
Cash payments
 
 
(2)
(22)
Adjustments
 
 
1
(2)1
Restructuring Reserve, Translation Adjustment
 
 
Restructuring reserve, balance at the end of the period
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
 
 
64 
Restructuring charges
 
 
113 
Cash payments
 
 
(29)
(28)
Adjustments
 
 
(2)1
(9)1
Restructuring Reserve, Translation Adjustment
 
 
(3)
Restructuring reserve, balance at the end of the period
37 
73 
37 
73 
Restructuring Program Canadian Brand Consolidation [Member] |
Continuing Operations [Member]
 
 
 
 
Restructuring Reserve [Roll Forward]
 
 
 
 
Restructuring charges
(2)
(1)
189 
Restructuring Program Canadian Brand Consolidation [Member] |
Continuing Operations [Member] |
International Segment [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring Charges
(2)
(1)
189 
Restructuring and Related Cost, Cost Incurred to Date
199 
 
199 
 
Restructuring Program Canadian Brand Consolidation [Member] |
Continuing Operations [Member] |
International Segment [Member] |
Inventory write-downs [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring Charges
 
(1)
Restructuring and Related Cost, Cost Incurred to Date
 
 
Restructuring Program Canadian Brand Consolidation [Member] |
Continuing Operations [Member] |
International Segment [Member] |
Property and equipment impairments [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring Charges
 
30 
Restructuring and Related Cost, Cost Incurred to Date
30 
 
30 
 
Restructuring Program Canadian Brand Consolidation [Member] |
Continuing Operations [Member] |
International Segment [Member] |
Impairment of Intangible Assets Related to Restructuring [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring Charges
 
40 
Restructuring and Related Cost, Cost Incurred to Date
40 
 
40 
 
Restructuring Program Canadian Brand Consolidation [Member] |
Continuing Operations [Member] |
International Segment [Member] |
Termination benefits [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring Charges
 
26 
Restructuring and Related Cost, Cost Incurred to Date
25 
 
25 
 
Restructuring Program Canadian Brand Consolidation [Member] |
Continuing Operations [Member] |
International Segment [Member] |
Facility closure and other costs [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring Charges
(2)
(1)
89 
Restructuring and Related Cost, Cost Incurred to Date
$ 101 
 
$ 101 
 
Restructuring Charges Restructuring Other (Details) (Facility closure and other costs [Member], Other Restructuring [Member], USD $)
In Millions, unless otherwise specified
Oct. 29, 2016
Facility closure and other costs [Member] |
Other Restructuring [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Restructuring Reserve
$ 12 
Long Term Debt (Details) (USD $)
In Millions, unless otherwise specified
Oct. 29, 2016
Jan. 30, 2016
Oct. 31, 2015
Long-term Debt
 
 
 
Long-term Debt and Capital Lease Obligations, Including Current Maturities
$ 1,367 
$ 1,734 
$ 1,633 
Financing Lease Obligations
180 
178 
88 
Long-term debt, excluding debt discounts and issuance costs and financing and capital lease obligations
1,163 
1,525 
1,509 
Less: current portion
(43)1
(395)1
(383)1
Long-term Debt, Excluding Current Maturities
1,324 
1,339 
1,250 
Long-term Debt, Fair Value
1,260 
1,543 
1,587 
2016 Notes [Member]
 
 
 
Long-term Debt
 
 
 
Long-term Debt
350 
350 
2018 Notes [Member]
 
 
 
Long-term Debt
 
 
 
Long-term Debt
500 
500 
500 
2021 Notes [Member]
 
 
 
Long-term Debt
 
 
 
Long-term Debt
650 
650 
649 
Interest Rate Swap [Member]
 
 
 
Long-term Debt
 
 
 
Long-term Debt
13 
25 
10 
Long-term Debt [Member]
 
 
 
Long-term Debt
 
 
 
Long-term Debt
1,163 
1,525 
1,509 
Capital Lease Obligations [Member]
 
 
 
Long-term Debt
 
 
 
Long-term Debt
29 
38 
42 
Debt discounts and issuance costs [Member]
 
 
 
Long-term Debt
 
 
 
Long-term Debt
$ (5)
$ (7)
$ (6)
Derivative Instruments (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 29, 2016
Oct. 31, 2015
Oct. 29, 2016
Oct. 31, 2015
Jan. 30, 2016
Derivatives, Fair Value [Line Items]
 
 
 
 
 
Derivative Asset, Fair Value, Gross Asset
$ 18 
$ 24 
$ 18 
$ 24 
$ 43 
Derivative Liability, Fair Value, Gross Liability
Notional Amount
1,012 
1,167 
1,012 
1,167 
1,052 
Net Investment Hedging [Member]
 
 
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
 
 
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax
(10)
 
Derivative Asset, Fair Value, Gross Asset
1
12 1
1
12 1
15 1
Derivative Liability, Fair Value, Gross Liability
1
1
1
1
1
Contract term
 
 
12 months 
 
 
Notional Amount
203 
222 
203 
222 
208 
Interest Rate Swap [Member]
 
 
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
 
 
Derivative Asset, Fair Value, Gross Asset
13 2
10 2
13 2
10 2
25 2
Derivative Liability, Fair Value, Gross Liability
2
2
2
2
2
Notional Amount
750 
750 
750 
750 
750 
Foreign Exchange Forward [Member] |
Not Designated as Hedging Instrument [Member]
 
 
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
 
 
Derivative Asset, Fair Value, Gross Asset
1
1
1
1
1
Derivative Liability, Fair Value, Gross Liability
1
1
1
1
1
Contract term
 
 
12 months 
 
 
Notional Amount
59 
195 
59 
195 
94 
Gain (loss) on foreign currency derivative instruments not designated as hedging instruments
$ 1 
$ 1 
$ (2)
$ (3)
 
Derivative Instruments Changes in Fair Value Hedges on Income (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 29, 2016
Oct. 31, 2015
Oct. 29, 2016
Oct. 31, 2015
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Net impact on Condensed Consolidated Statements of Earnings
$ 0 
$ 0 
$ 0 
$ 0 
Interest Rate Swap [Member] |
Interest Expense [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Interest rate swap gain
(14)
(3)
(12)
Debt [Member] |
Interest Rate Swap [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Adjustments to carrying value of long-term debt
$ 14 
$ 3 
$ 12 
$ (9)
Earnings per Share (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 29, 2016
Oct. 31, 2015
Oct. 29, 2016
Oct. 31, 2015
Numerator
 
 
 
 
Net earnings from continuing operations
$ 192 
$ 129 
$ 600 
$ 330 
Denominator
 
 
 
 
Weighted-average common shares outstanding (in shares)
316.2 
344.7 
320.2 
348.9 
Effect of potentially dilutive securities:
 
 
 
 
Nonvested share awards (in shares)
3.8 
4.3 
3.4 
4.7 
Weighted-average common shares outstanding, assuming dilution (in shares)
320.0 
349.0 
323.6 
353.6 
Net earnings per share from continuing operations
 
 
 
 
Basic (in dollars per share)
$ 0.61 
$ 0.37 
$ 1.87 
$ 0.95 
Diluted (in dollars per share)
$ 0.60 
$ 0.37 
$ 1.85 
$ 0.93 
Antidilutive securities excluded from computation of earnings per share
6.3 
10.1 
6.9 
10.0 
Comprehensive Income (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 29, 2016
Oct. 31, 2015
Oct. 29, 2016
Oct. 31, 2015
Oct. 31, 2015
Best Buy Co., Inc. [Member]
Jul. 30, 2016
Best Buy Co., Inc. [Member]
Jan. 30, 2016
Best Buy Co., Inc. [Member]
Aug. 1, 2015
Best Buy Co., Inc. [Member]
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward]
 
 
 
 
 
 
 
 
Foreign Currency Translation, Beginning Balance
 
 
 
 
$ 382 
$ 296 
$ 271 
$ 298 
Foreign currency translation adjustments
(19)
(2)
(19)
 
 
 
 
Reclassification of foreign currency translation adjustments into earnings due to sale of business
(67)
(67)
 
 
 
Foreign Currency Translation, Ending Balance
$ 277 
$ 296 
$ 277 
$ 296 
 
$ 296 
$ 271 
$ 298 
Repurchase of Common Stock (Details) (USD $)
Share data in Millions, except Per Share data, unless otherwise specified
12 Months Ended 24 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 12 Months Ended 3 Months Ended 9 Months Ended
Jan. 30, 2016
Jan. 27, 2018
Oct. 29, 2016
Feb. 25, 2016
Jun. 30, 2011
Oct. 29, 2016
June 2011 share repurchase program [Domain]
Oct. 31, 2015
June 2011 share repurchase program [Domain]
Oct. 29, 2016
June 2011 share repurchase program [Domain]
Oct. 31, 2015
June 2011 share repurchase program [Domain]
Oct. 29, 2016
June 2011 share repurchase program [Domain]
Open market [Domain]
Oct. 31, 2015
June 2011 share repurchase program [Domain]
Open market [Domain]
Oct. 29, 2016
January 2016 ASR [Domain]
Oct. 31, 2015
January 2016 ASR [Domain]
Oct. 29, 2016
January 2016 ASR [Domain]
Oct. 31, 2015
January 2016 ASR [Domain]
Jan. 30, 2016
January 2016 ASR [Domain]
Oct. 29, 2016
Open market [Domain]
Oct. 31, 2015
Open market [Domain]
Oct. 29, 2016
Open market [Domain]
Oct. 31, 2015
Open market [Domain]
Accelerated Share Repurchases [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock Repurchased and Retired During Period, Shares
 
 
 
 
 
5.5 
1.8 
16.0 
11.3 
 
 
1.6 
4.4 
5.5 1
1.8 1
14.4 1
11.3 1
Unsettled shares, shares
 
 
 
 
 
 
 
 
 
0.3 
0.1 
 
 
 
 
 
 
 
 
 
Stock Repurchased and Retired During Period, Value
$ 120,000,000 
 
 
 
 
$ 206,000,000 
$ 64,000,000 
$ 528,000,000 
$ 388,000,000 
 
 
$ 0 
$ 0 
$ 45,000,000 
$ 0 
 
$ 206,000,000 1
$ 64,000,000 1
$ 483,000,000 1
$ 388,000,000 1
Average share price
 
 
 
 
 
$ 37.67 
$ 35.17 
$ 33.03 
$ 34.20 
 
 
$ 0.00 
$ 0.00 
$ 28.55 
$ 0.00 
 
$ 37.67 
$ 35.17 
$ 33.52 
$ 34.20 
Unsettled shares, cost
 
 
 
 
 
 
 
 
 
11,000,000 
3,000,000 
 
 
 
 
 
 
 
 
 
Stock Repurchase Program, Remaining Authorized Repurchase Amount
3,000,000,000 
 
2,500,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock Repurchase Program, Authorized Amount
 
 
 
$ 1,000,000,000 
$ 5,000,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock Repurchase Program, Period in Force
 
2 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Repurchase of Common Stock Accelerated Share Repurchase (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended 12 Months Ended
Oct. 29, 2016
Oct. 31, 2015
Jan. 30, 2016
Equity [Abstract]
 
 
 
Stock Repurchased and Retired During Period, Value
 
 
$ 120 
Stock Repurchased During Period, Value
(528)
(388)
 
Accelerated Share Repurchase Program, Adjustment
10 
 
 
Accelerated Share Repurchase Settlement Amount
165 
 
 
Prepaid repurchase of common stock
 
 
(55)
Accelerated Share Repurchase Price (low end of the range)
 
 
150 
Accelerated Share Repurchase Price (high end of the range)
 
 
$ 175 
Segments (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 29, 2016
Oct. 31, 2015
Oct. 29, 2016
segments
Oct. 31, 2015
Jan. 30, 2016
Segment Reporting [Abstract]
 
 
 
 
 
Number of reportable segments
 
 
 
 
Business segment information
 
 
 
 
 
Total assets
$ 14,542 
$ 15,169 
$ 14,542 
$ 15,169 
$ 13,519 
Total revenue
8,945 
8,819 
25,921 
25,905 
 
Operating income (loss)
312 
230 
973 
604 
 
Other income (expense)
 
 
 
 
 
Gain on sale of investments
 
Investment income and other
22 
14 
 
Interest expense
(16)
(20)
(54)
(60)
 
Earnings from continuing operations before income tax expense
304 
213 
943 
560 
 
Domestic [Member]
 
 
 
 
 
Business segment information
 
 
 
 
 
Total assets
13,115 
13,817 
13,115 
13,817 
12,318 
Total revenue
8,192 
8,090 
23,910 
23,858 
 
Operating income (loss)
298 
244 
959 
857 
 
International [Member]
 
 
 
 
 
Business segment information
 
 
 
 
 
Total assets
1,427 
1,352 
1,427 
1,352 
1,201 
Total revenue
753 
729 
2,011 
2,047 
 
Operating income (loss)
$ 14 
$ (14)
$ 14 
$ (253)
 
Contingencies (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended 12 Months Ended
Oct. 29, 2016
Jan. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
 
 
Proceeds from Legal Settlements
$ 161 
$ 75 
Proceeds from legal settlements, received
127 
 
Future Proceeds from Legal Settlements
$ 34