Document Information Statement - shares	3 Months Ended
Document Information Statement - shares	May 04, 2019	Jun. 05, 2019
Document Information [Abstract]
Entity Common Stock, Shares Outstanding		267,043,142
Entity Registrant Name	BEST BUY CO INC
Entity Central Index Key	0000764478
Document Type	10-Q
Document Period End Date	May 04, 2019
Amendment Flag	false
Trading Symbol	bby
Current Fiscal Year End Date	--02-01
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	May 04, 2019	Feb. 02, 2019	May 05, 2018
Current assets
Cash and cash equivalents	$ 1,561	$ 1,980	$ 1,848
Short-term investments			785
Receivables, net	833	1,015	860
Merchandise inventories	5,195	5,409	4,964
Other current assets	425	466	473
Total current assets	8,014	8,870	8,930
Property and equipment, net	2,334	2,510	2,385
Operating lease assets	2,708
Goodwill	915	915	425
Other assets	579	606	342
Total assets	14,550	12,901	12,082
Current liabilities
Accounts payable	4,718	5,257	4,619
Unredeemed gift card liabilities	265	290	285
Deferred revenue	409	446	371
Accrued compensation and related expenses	275	482	296
Accrued liabilities	851	982	934
Current portion of operating lease liabilities	639
Current portion of long-term debt	14	56	550
Total current liabilities	7,171	7,513	7,055
Long-term liabilities	659	750	815
Long-term operating lease liabilities	2,173
Long-term debt	1,193	1,332	792
Contingencies (Note 13)
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 – 267 million, 266 million, 281 million shares, respectively	27	27	28
Retained earnings	3,038	2,985	3,082
Accumulated other comprehensive income	289	294	310
Total equity	3,354	3,306	3,420
Total liabilities and equity	$ 14,550	$ 12,901	$ 12,082

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	May 04, 2019	Feb. 02, 2019	May 05, 2018
Condensed Consolidated Balance Sheets [Abstract]
Preferred stock, par value (in dollars per share)	$ 1.00	$ 1.00	$ 1.00
Preferred stock, authorized shares	400,000	400,000	400,000
Preferred stock, issued shares	0	0	0
Preferred stock, outstanding shares	0	0	0
Common stock, par value (in dollars per share)	$ 0.10	$ 0.10	$ 0.10
Common stock, authorized shares	1,000,000,000	1,000,000,000	1,000,000,000
Common stock, issued shares	267,000,000	266,000,000	281,000,000
Common stock, outstanding shares	267,000,000	266,000,000	281,000,000

Condensed Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions	3 Months Ended
	May 04, 2019	May 05, 2018
Condensed Consolidated Statements of Earnings [Abstract]
Revenue	$ 9,142	$ 9,109
Cost of goods sold	6,973	6,984
Gross profit	2,169	2,125
Selling, general and administrative expenses	1,835	1,830
Restructuring charges		30
Operating income	334	265
Other income (expense):
Investment income and other	14	11
Interest expense	(18)	(19)
Earnings before income tax expense	330	257
Income tax expense	65	49
Net earnings	$ 265	$ 208
Basic earnings per share	$ 0.99	$ 0.74
Diluted earnings per share	$ 0.98	$ 0.72
Weighted-average common shares outstanding
Basic	267.6	282.6
Diluted	271.5	288.3

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended
	May 04, 2019	May 05, 2018
Condensed Consolidated Statements of Comprehensive Income [Abstract]
Net earnings	$ 265	$ 208
Foreign currency translation adjustments	(5)	(4)
Comprehensive income	$ 260	$ 204

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	May 04, 2019	May 05, 2018
Operating activities
Net earnings	$ 265	$ 208
Adjustments to reconcile net earnings to total cash provided by operating activities:
Depreciation and amortization	200	176
Restructuring charges		30
Stock-based compensation	36	32
Deferred income taxes	13	9
Other, net	1	(2)
Changes in operating assets and liabilities, net of acquired assets and liabilities:
Receivables	182	189
Merchandise inventories	207	243
Other assets	(14)	(13)
Accounts payable	(519)	(214)
Other liabilities	(379)	(506)
Income taxes	10	52
Total cash provided by operating activities	2	204
Investing activities
Additions to property and equipment	(193)	(181)
Sales of investments		1,245
Other, net	1	9
Total cash provided by (used in) investing activities	(192)	1,073
Financing activities
Repurchase of common stock	(98)	(400)
Issuance of common stock	11	24
Dividends paid	(134)	(128)
Repayments of debt	(4)	(11)
Other, net	(1)	(1)
Total cash used in financing activities	(226)	(516)
Effect of exchange rate changes on cash	(1)	(12)
Increase (decrease) in cash, cash equivalents and restricted cash	(417)	749
Cash, cash equivalents and restricted cash at beginning of period	2,184	1,300
Cash, cash equivalents and restricted cash at end of period	$ 1,767	$ 2,049

Condensed Consolidated Statements of Changes in Shareholders' Equity - USD ($) shares in Millions, $ in Millions	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total
Beginning balances at Feb. 03, 2018	$ 28		$ 3,270	$ 314	$ 3,612
Beginning balances (in shares) at Feb. 03, 2018	283
Increase (Decrease) in Shareholders' Equity
Net earnings			208		208
Foreign currency translation adjustments				(4)	(4)
Stock-based compensation		$ 32			32
Issuance of common stock		24			24
Issuance of common stock (in shares)	3
Common stock dividends		2	(128)		(126)
Repurchase of common stock		(58)	(341)		(399)
Repurchase of common stock (in shares)	(5)
Ending balances at May. 05, 2018	$ 28		3,082	310	3,420
Ending balances (in shares) at May. 05, 2018	281
Increase (Decrease) in Shareholders' Equity
Cumulative effect of new accounting principle in period of adoption \| Adoption of ASU 2014-09			73		73
Beginning balances at Feb. 02, 2019	$ 27		2,985	294	3,306
Beginning balances (in shares) at Feb. 02, 2019	266
Increase (Decrease) in Shareholders' Equity
Net earnings			265		265
Foreign currency translation adjustments				(5)	(5)
Stock-based compensation		36			36
Issuance of common stock		11			11
Issuance of common stock (in shares)	2
Common stock dividends		2	(136)		(134)
Repurchase of common stock		$ (49)	(57)		(106)
Repurchase of common stock (in shares)	(1)
Ending balances at May. 04, 2019	$ 27		3,038	$ 289	3,354
Ending balances (in shares) at May. 04, 2019	267
Increase (Decrease) in Shareholders' Equity
Cumulative effect of new accounting principle in period of adoption \| Adoption of ASU 2016-02			$ (19)		$ (19)

Condensed Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	May 04, 2019	May 05, 2018
Condensed Consolidated Statements of Changes in Shareholders' Equity [Abstract]
Dividends declared per common share	$ 0.50	$ 0.45

Basis of Presentation

3 Months Ended

May 04, 2019

Basis of Presentation

Basis of Presentation

1. 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, as applicable, its consolidated subsidiaries.

In the opinion of management, the accompanying condensed consolidated financial statements contain all adjustments necessary for a fair presentation as prescribed by accounting principles generally accepted in the United States (“GAAP”). All adjustments were comprised of normal recurring adjustments, except as noted in these Notes to Condensed Consolidated Financial Statements.

Historically, we have generated a large proportion of our revenue and earnings in the fiscal fourth quarter, which includes the majority of the holiday shopping season in the U.S., Canada and Mexico. Due to the seasonal nature of our business, interim results are not necessarily indicative of results for the entire fiscal year. The interim financial statements and the related notes included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended February 2, 2019. The first three months of fiscal 2020 and fiscal 2019 included 13 weeks.

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

In preparing the accompanying condensed consolidated financial statements, we evaluated the period from May 4, 2019, through the date the financial statements were issued for material subsequent events requiring recognition or disclosure. Other

than as disclosed in Note 14, Subsequent Event, no such events were identified for the reported periods.

Unadopted Accounting Pronouncements

In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which eliminates the requirement to calculate the implied fair value of goodwill (i.e., Step 2 of the current goodwill impairment test) to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value (i.e., measure the charge based on the current Step 1). We do not believe the new guidance, which is effective for fiscal years beginning after December 15, 2019, will have a material impact on our consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement - Disclosure Framework (Topic 820). The updated guidance improves the disclosure requirements for fair value measurements. The updated guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. We are currently evaluating the impact of adopting the updated provisions.

In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other - Internal Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. This guidance requires companies to apply the internal-use software guidance in Accounting Standards Codification (“ASC”) 350-40 to implementation costs incurred in a hosting arrangement that is a service contract to determine whether to capitalize certain implementation costs or expense them as incurred. We are currently evaluating the impact of adopting the updated provisions, which is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019.

Adopted Accounting Pronouncements

In February 2016, the FASB issued ASU 2016-02, Leases, which requires the recognition of operating lease assets and lease liabilities on the balance sheet. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. Under the new standard, disclosures are required to enable users of financial statements to assess the amount, timing and uncertainty of cash flows arising from leases.

In the first quarter of fiscal 2020, we adopted ASU 2016-02 using the “Comparatives Under 840 Option” approach to transition. Under this method, financial information related to periods prior to adoption will be as originally reported under the previous standard – ASC 840, Leases. The effects of adopting the new standard (ASC 842, Leases) in fiscal 2020 were recognized as a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal first quarter. We elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allows us to carry forward the historical lease classification as operating or capital leases. We also elected to combine lease and non-lease components and to exclude short-term leases from our consolidated balance sheets. We did not elect the hindsight practical expedient in determining the lease term for existing leases as of February 3, 2019.

The most significant impact of adoption was the recognition of operating lease assets and operating lease liabilities of $2.7 billion and $2.8 billion, respectively, while our accounting for existing capital leases (now referred to as finance leases) remained substantially unchanged. The cumulative impact of these changes decreased retained earnings by $19 million. We expect the impact of adoption to be immaterial to our consolidated statements of earnings and consolidated statements of cash flows on an ongoing basis. As part of our adoption, we also modified our control procedures and processes, none of which materially affected our internal control over financial reporting. See Note 3, Leases, for additional information regarding our accounting policy for leases and additional disclosures.

The cumulative effect of the changes made to our Condensed Consolidated Balance Sheets on February 3, 2019, for the adoption of this standard was as follows ($ in millions):



	February 2, 2019 As Reported		ASU 2016-02 Adjustment on February 3, 2019			February 3, 2019 Adjusted
Assets
Other current assets	$	466	$	(65)	(a)	$	401
Net property and equipment		2,510		(173)	(b)		2,337
Operating lease assets		-		2,736	(c)		2,736
Other assets		606		4	(d)		610
Liabilities
Accrued liabilities		982		(28)	(e)		954
Current portion of operating lease liabilities		-		712	(f)		712
Current portion of long-term debt		56		(43)	(b)		13
Long-term liabilities		750		(115)	(e)		635
Long-term operating lease liabilities		-		2,135	(f)		2,135
Long-term debt		1,332		(140)	(b)		1,192
Equity
Retained earnings		2,985		(19)	(g)		2,966

(a)Represents the reclassification of prepaid rent and leasehold acquisition costs to Operating lease assets.

(b)Represents the derecognition of financing obligations and reclassification to Operating lease assets.

(c)Represents the capitalization of operating lease assets and the reclassification of prepaid rent and leasehold acquisition costs, offset by the reclassification of straight-line rent accruals, tenant improvement allowances and vacant space reserves.

(d)Represents the deferred tax impact of the on-adoption adjustments.

(e)Represents the reclassification of straight-line rent accruals, tenant improvement allowances and vacant space reserves to Operating lease assets.

(f)Represents the recognition of operating lease liabilities.

(g)Represents the net-of-tax retained earnings impact of impairment charges and the derecognition of financing obligations.

Total Cash, Cash Equivalents and Restricted Cash

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets to the total shown within the Condensed Consolidated Statements of Cash Flows as of May 4, 2019, February 2, 2019, and May 5, 2018 ($ in millions):



	May 4, 2019		February 2, 2019		May 5, 2018
Cash and cash equivalents	$	1,561	$	1,980	$	1,848
Restricted cash included in Other current assets		206		204		201
Total cash, cash equivalents and restricted cash	$	1,767	$	2,184	$	2,049

Amounts included in restricted cash are pledged as collateral or restricted to use for workers’ compensation and general liability insurance claims.

Fair Value Measurements

3 Months Ended

May 04, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

2. 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 our financial assets and liabilities that were accounted for at fair value on a recurring basis as of May 4, 2019, February 2, 2019, and May 5, 2018, by level within the fair value hierarchy as determined by the valuation techniques we used to determine the fair value ($ in millions):



			Fair Value at
	Fair Value Hierarchy		May 4, 2019		February 2, 2019		May 5, 2018
Assets
Cash and cash equivalents:
Money market funds		Level 1	$	18	$	98	$	19
Time deposits		Level 2		60		300		200
Short-term investments:
Commercial paper		Level 2		-		-		100
Time deposits		Level 2		-		-		685
Other current assets:
Money market funds		Level 1		93		82		58
Time deposits		Level 2		102		101		101
Foreign currency derivative instruments		Level 2		-		-		3
Interest rate swap derivative instruments		Level 2		-		-		5
Other assets:
Marketable securities that fund deferred compensation		Level 1		46		44		99
Interest rate swap derivative instruments		Level 2		28		26		-

Liabilities
Accrued liabilities:
Foreign currency derivative instruments		Level 2		-		-		1
Long-term liabilities:
Interest rate swap derivative instruments		Level 2		6		1		15

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.

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.

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.

Foreign currency derivative instruments. Comprised primarily of foreign currency forward contracts, our foreign currency derivative instruments were measured at fair value using readily observable market inputs, such as quotations on forward foreign exchange points and foreign interest rates. Our foreign currency derivative instruments were classified as Level 2 as these instruments are custom, over-the-counter contracts with various bank counterparties that are not traded in an active market.

Interest rate swap derivative instruments. Our interest rate swap contracts were measured at fair value using readily observable inputs, such as the LIBOR interest rate. Our interest rate swap derivative instruments were classified as Level 2 as these instruments are custom, over-the-counter contracts with various bank counterparties that are not traded in an active market.

Marketable securities that fund deferred compensation. The assets that fund our deferred compensation consist of investments in corporate-owned life insurance, the value of which is based on select mutual fund performance. These investments were classified as Level 1 as the shares of these mutual funds trade with sufficient frequency and volume to enable us to obtain pricing information on an ongoing basis.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Assets and liabilities that are measured at fair value on a nonrecurring basis relate primarily to our tangible fixed assets, goodwill and other intangible assets, which are remeasured when the derived fair value is below carrying value on our Condensed Consolidated Balance Sheets. For these assets, we do not periodically adjust carrying value to fair value, except in the event of impairment. When we determine that impairment has occurred, the carrying value of the asset is reduced to fair value and the difference is recorded within Selling, general and administrative (“SG&A”) expenses on our Condensed Consolidated Statements of Earnings for non-restructuring charges.

The following table summarizes the fair value remeasurements of property and equipment impairments recorded during the three months ended May 4, 2019, and May 5, 2018 ($ in millions):


	Impairments
	Three Months Ended				Remaining Net Carrying Value(2)
	May 4, 2019		May 5, 2018		May 4, 2019		May 5, 2018
Property and equipment (non-restructuring)(1)	$	2	$	2	$	2	$	-

(1)

Balances exclude immaterial amounts associated with operating lease assets.

(2)

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 May 4, 2019, and May 5, 2018.

All of the fair value remeasurements included in the table above were based on significant unobservable inputs (Level 3). Fixed asset fair values were primarily derived using a discounted cash flow ("DCF") model to estimate the present value of net cash flows that the asset or asset group was expected to generate. The key inputs to the DCF model generally included our forecasts of net cash generated from revenue, expenses and other significant cash outflows, such as capital expenditures, as well as an appropriate discount rate.

Fair Value of Financial Instruments

Our financial instruments, other than those presented in the disclosures above, include cash, receivables, other investments, accounts payable, other payables and long-term debt. The fair values of cash, receivables, accounts payable and other payables approximated carrying values because of the short-term nature of these instruments. If these instruments were measured at fair value in the financial statements, they would be classified as Level 1 in the fair value hierarchy. Fair values for other investments held at cost are not readily available, but we estimate that the carrying values for these investments approximate fair value. See Note 6, Debt, for information about the fair value of our long-term debt.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Leases

3 Months Ended

May 04, 2019

Leases [Abstract]

Leases

3. Leases

The majority of our lease obligations are real estate operating leases from which we conduct the majority of our retail and distribution operations. Our finance leases are primarily equipment-related. For any lease with an initial term in excess of 12 months, the related lease assets and liabilities are recognized on the Condensed Consolidated Balance Sheets as either operating or finance leases at the inception of an agreement where it is determined that a lease exists. We have lease agreements that contain both lease and non-lease components. For lease agreements entered into or reassessed after the adoption of ASC 842, Leases, we have elected to combine lease and non-lease components for all classes of assets. Leases with an initial term of 12 months or less are not recorded on our Condensed Consolidated Balance Sheets; we recognize lease expense for these leases on a straight-line basis over the lease term.

Operating lease assets represent the right to use an underlying asset for the lease term, and operating lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are recognized based on the present value of future payments over the lease term at commencement date. We use a collateralized incremental borrowing rate based on the information available at commencement date, including lease term, in determining the present value of future payments. Our operating leases also typically require payment of real estate taxes, common area maintenance and insurance. These components comprise the majority of our variable lease cost and are excluded from the present value of our lease obligations. In instances where they are fixed, they are included due to our election to combine lease and non-lease components. Operating lease assets also include prepaid lease payments and initial direct costs, and are reduced by lease incentives. Our lease terms generally do not include options to extend or terminate the lease unless it is reasonably certain that the option will be exercised. Fixed payments may contain predetermined fixed rent escalations. We recognize the related rent expense on a straight-line basis from the commencement date to the end of the lease term.

Supplemental balance sheet information as of May 4, 2019, related to our leases was as follows ($ in millions):



	Balance Sheet Location	May 4, 2019
Assets
Operating leases	Operating lease assets	$	2,708
Finance leases	Property and equipment, net(1)		41
Total lease assets		$	2,749
Liabilities
Current:
Operating leases	Current portion of operating lease liabilities	$	639
Finance leases	Current portion of long-term debt		14
Non-current:
Operating leases	Long-term operating lease liabilities		2,173
Finance leases	Long-term debt		27
Total lease liabilities		$	2,853

(1)

Finance leases are recorded net of accumulated depreciation of $41 million as of May 4, 2019.

The components of our total lease cost for the three months ended May 4, 2019, were as follows ($ in millions):



	Statement of Earnings Location	Three Months Ended May 4, 2019
Operating lease cost(1)	Cost of goods sold and SG&A(2)	$	195
Finance lease cost:
Depreciation of lease assets	Cost of goods sold and SG&A(2)		3
Interest on lease liabilities	Interest expense		1
Variable lease cost	Cost of goods sold and SG&A(2)		67
Sublease income	SG&A		(4)
Total lease cost		$	262

(1)

Includes short-term leases, which are immaterial.

(2)

Supply chain-related amounts are included in Cost of goods sold.

Other information related to our leases for the three months ended May 4, 2019, was as follows ($ in millions):



	Three Months Ended May 4, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	201
Operating cash flows from finance leases		1
Financing cash flows from finance leases		4
Lease assets obtained in exchange for new lease liabilities:
Operating leases		147
Finance leases		2

Weighted average remaining lease term:
Operating leases		5.4 years
Finance leases		5.3 years
Weighted average discount rate:
Operating leases		3.4	%
Finance leases		4.4	%

Future lease payments under our non-cancellable leases as of May 4, 2019, were as follows ($ in millions):



	Operating Leases(1)		Finance Leases(1)
Remainder of fiscal 2020	$	539	$	11
Fiscal 2021		708		13
Fiscal 2022		570		8
Fiscal 2023		418		4
Fiscal 2024		293		3
Fiscal 2025		187		2
Thereafter		378		5
Total future undiscounted lease payments		3,093		46
Less imputed interest		(281)		(5)
Total reported lease liability	$	2,812	$	41

(1)

Lease payments exclude $51 million of legally binding fixed costs for leases signed but not yet commenced, primarily related to operating leases.

In accordance with the prior guidance, ASC 840, Leases, our leases were previously designated as either capital, financing or operating. Previously designated capital leases are now considered finance leases under the new guidance, ASC 842, Leases, while our previously existing financing leases have been derecognized and reclassified as operating leases. The designation of operating leases remains substantially unchanged under the new guidance. The future minimum lease payments by fiscal year as determined prior to the adoption of ASC 842, Leases, under our previously designated capital, financing and operating leases (not including contingent rent) as disclosed in our Annual Report on Form 10-K for the fiscal year ended February 2, 2019, were as follows ($ in millions):



	Capital Leases		Financing Leases		Operating Leases(1)
Fiscal 2020	$	14	$	48	$	700
Fiscal 2021		11		42		648
Fiscal 2022		7		35		513
Fiscal 2023		4		24		371
Fiscal 2024		2		16		253
Thereafter		7		40		476
Total minimum lease payments		45		205	$	2,961
Less amount representing interest		(6)		(24)
Present value of minimum lease payments		39		181
Less current maturities		(12)		(43)
Present value of minimum lease maturities, less current maturities	$	27	$	138

(1)

Operating lease obligations do not include payments to landlords covering real estate taxes and common area maintenance. These charges, if included, would have increased total operating lease obligations by $0.8 billion at February 2, 2019.

Goodwill and Intangible Assets

3 Months Ended

May 04, 2019

Goodwill and Intangible Assets [Abstract]

Goodwill and Intangible Assets

4. Goodwill and Intangible Assets

Goodwill and Indefinite-Lived Intangible Assets

The following table provides the carrying values of goodwill and indefinite-lived intangible assets, which includes our Pacific Sales tradename, for the Domestic segment as of May 4, 2019, February 2, 2019, and May 5, 2018 ($ in millions):


	May 4, 2019		February 2, 2019		May 5, 2018
Goodwill	$	915	$	915	$	425
Indefinite-lived tradename included in Other assets		18		18		18

The following table provides the gross carrying amount of goodwill and cumulative goodwill impairment as of May 4, 2019, February 2, 2019, and May 5, 2018 ($ in millions):


	May 4, 2019				February 2, 2019				May 5, 2018
	Gross Carrying Amount		Cumulative Impairment		Gross Carrying Amount		Cumulative Impairment		Gross Carrying Amount		Cumulative Impairment
Goodwill	$	1,590	$	(675)	$	1,590	$	(675)	$	1,100	$	(675)

Definite-Lived Intangible Assets

We have definite-lived intangible assets related to GreatCall, Inc. (“GreatCall”) included within our Domestic segment, which is recorded within Other assets on our Condensed Consolidated Balance Sheets. The following table provides the gross carrying amount and related accumulated amortization of definite-lived intangible assets as of May 4, 2019, and February 2, 2019 ($ in millions). We had no definite-lived intangible assets as of May 5, 2018.


	May 4, 2019				February 2, 2019
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Customer relationships	$	258	$	29	$	258	$	16
Tradename		63		5		63		3
Developed technology		52		6		52		4
Total	$	373	$	40	$	373	$	23

We recorded $17 million and $0 million of aggregate amortization expense related to definite-lived intangible assets during the three months ended May 4, 2019, and May 5, 2018, respectively. The following table provides the amortization expense expected to be recognized in future periods ($ in millions):


	Amortization Expense
Remainder of fiscal 2020	$	51
Fiscal 2021		68
Fiscal 2022		67
Fiscal 2023		67
Fiscal 2024		48
Fiscal 2025		10
Thereafter		22

Derivative Instruments

3 Months Ended

May 04, 2019

Derivative Instruments [Abstract]

Derivative Instruments

5. Derivative Instruments

We manage our economic and transaction exposure to certain risks by using foreign currency derivative instruments and interest rate swaps. Our objective in holding derivatives is to reduce the volatility of net earnings, cash flows and net asset value associated with changes in foreign currency exchange rates and interest rates. We do not hold derivative instruments for trading or speculative purposes. We have no derivatives that have credit risk-related contingent features, and we mitigate our credit risk by engaging with financial institutions with investment-grade credit ratings as our counterparties.

We record all derivative instruments on our Condensed Consolidated Balance Sheets at fair value and evaluate hedge effectiveness prospectively or retrospectively when electing to apply hedge accounting. We formally document all hedging relations at inception for derivative hedges and the underlying hedged items, as well as the risk management objectives and strategies for undertaking the hedge transaction. In addition, we have derivatives which are not designated as hedging instruments.

Net Investment Hedges

We use foreign exchange forward contracts to hedge against the effect of Canadian dollar exchange rate fluctuations on a portion of our net investment in our Canadian operations. The contracts have terms of up to 12 months. For a net investment hedge, we recognize changes in the fair value of the derivative as a component of foreign currency translation within other comprehensive income to offset a portion of the change in translated value of the net investment being hedged, until the investment is sold or liquidated. We limit recognition in net earnings of amounts previously recorded in other comprehensive income to circumstances such as complete or substantially complete liquidation of the net investment in the hedged foreign operation. We report the gains and losses, if any, related to the amount excluded from the assessment of hedge effectiveness in net earnings.

Interest Rate Swaps

We utilized "receive fixed-rate, pay variable-rate" interest rate swaps to mitigate the effect of interest rate fluctuations on our $500 million principal amount of notes due August 1, 2018, prior to their maturity, and currently have swaps outstanding on our $650 million principal amount of notes due March 15, 2021, and $500 million principal amount of notes due October 1, 2028. Our interest rate swap contracts are considered perfect hedges because the critical terms and notional amounts match those of our fixed-rate debt being hedged and are, therefore, accounted for as fair value hedges using the shortcut method. Under the shortcut method, we recognize the change in the fair value of the derivatives with an offsetting change to the carrying value of the debt. Accordingly, there is no impact on our Condensed Consolidated Statements of Earnings from the fair value of the derivatives.

Derivatives Not Designated as Hedging Instruments

We use foreign currency forward contracts to manage the impact of fluctuations in foreign currency exchange rates relative to recognized receivable and payable balances denominated in non-functional currencies. The contracts generally have terms of up to 12 months. These derivative instruments are not designated in hedging relationships and, therefore, we record gains and losses on these contracts directly to net earnings.

Summary of Derivative Balances

The following tables present the gross fair values of our outstanding derivative instruments and the corresponding classification as of May 4, 2019, February 2, 2019, and May 5, 2018 ($ in millions):


	Balance Sheet	Assets
Contract Type	Location	May 4, 2019		February 2, 2019		May 5, 2018
Derivatives designated as net investment hedges	Other current assets	$	-	$	-	$	3
Derivatives designated as interest rate swaps	Other current assets and Other assets		28		26		5
Total		$	28	$	26	$	8


	Balance Sheet	Liabilities
Contract Type	Location	May 4, 2019		February 2, 2019		May 5, 2018
Derivatives designated as net investment hedges	Accrued liabilities	$	-	$	-	$	1
Derivatives designated as interest rate swaps	Long-term liabilities		6		1		15
Total		$	6	$	1	$	16

The following table presents the effects of derivative instruments on other comprehensive income ("OCI") for the three months ended May 4, 2019, and May 5, 2018 ($ in millions):



	Three Months Ended
Derivatives designated as net investment hedges	May 4, 2019		May 5, 2018
Pre-tax gain recognized in OCI	$	-	$	16

The following table presents the effects of derivatives not designated as hedging instruments on our Condensed Consolidated Statements of Earnings for the three months ended May 4, 2019, and May 5, 2018 ($ in millions):

Gain Recognized

Three Months Ended

Contract Type

Statement of Earnings Location

May 4, 2019

May 5, 2018

No hedge designation (foreign exchange contracts)

SG&A

$

1

$

1

The following table presents the effects of interest rate derivatives and adjustments to the carrying value of long-term debt on our Condensed Consolidated Statements of Earnings for the three months ended May 4, 2019, and May 5, 2018 ($ in millions):


		Gain (Loss) Recognized
		Three Months Ended
Contract Type	Statement of Earnings Location	May 4, 2019		May 5, 2018
Interest rate swap contracts	Interest expense	$	(2)	$	(5)
Adjustments to carrying value of long-term debt	Interest expense		2		5
Total		$	-	$	-

The following table presents the notional amounts of our derivative instruments as of May 4, 2019, February 2, 2019, and May 5, 2018 ($ in millions):



	Notional Amount
Contract Type	May 4, 2019		February 2, 2019		May 5, 2018
Derivatives designated as net investment hedges	$	15	$	15	$	135
Derivatives designated as interest rate swaps		1,150		1,150		1,150
No hedge designation (foreign exchange contracts)		44		9		39
Total	$	1,209	$	1,174	$	1,324

Debt

3 Months Ended

May 04, 2019

Debt [Abstract]

Debt

6. Debt

Short-Term Debt

We have a $1.25 billion five-year senior unsecured revolving credit facility agreement with a syndicate of banks. The agreement permits borrowings of up to $1.25 billion and expires in April 2023. There were no borrowings outstanding as of May 4, 2019, February 2, 2019, or May 5, 2018.

Long-Term Debt

Long-term debt consisted of the following as of May 4, 2019, February 2, 2019, and May 5, 2018 ($ in millions):



	May 4, 2019		February 2, 2019		May 5, 2018
Notes, 5.00%, due August 1, 2018	$	-	$	-	$	500
Notes, 5.50%, due March 15, 2021		650		650		650
Notes, 4.45%, due October 1, 2028		500		500		-
Interest rate swap valuation adjustments		23		25		(10)
Subtotal		1,173		1,175		1,140
Debt discounts and issuance costs		(7)		(7)		(2)
Financing lease obligations (1)		-		181		184
Capital lease obligations (1)		-		39		20
Finance lease obligations (1)		41		-		-
Total long-term debt		1,207		1,388		1,342
Less current portion		14		56		550
Total long-term debt, less current portion	$	1,193	$	1,332	$	792

(1)

See Note 3, Leases, for additional information regarding our lease obligations.

The fair value of total long-term debt, excluding debt discounts and issuance costs and lease obligations, approximated $1,213 million, $1,178 million, and $1,176 million as of May 4, 2019, February 2, 2019, and May 5, 2018, respectively, based primarily on the market prices quoted from external sources, compared with carrying values of $1,173 million, $1,175 million, and $1,140 million, respectively. If long-term debt were measured at fair value in the financial statements, it would be classified primarily as Level 2 in the fair value hierarchy.

The $500 million principal amount of notes due August 1, 2018, were repaid using existing cash resources and on September 27, 2018, we issued $500 million principal amount of notes due October 1, 2028.

See Note 6, Debt, in the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended February 2, 2019, for additional information regarding the terms of our other debt facilities, debt instruments and other obligations.

Revenue Recognition

3 Months Ended

May 04, 2019

Revenue Recognition [Abstract]

Revenue Recognition

7. Revenue Recognition

We generate revenue primarily from the sale of products and services, both as a principal and as an agent. We generate all of our operating revenue from contracts with customers. Our revenue excludes sales and usage-based taxes collected.

Revenue from product sales and services is reported net of sales refunds, which includes an estimate of future returns and contract cancellations based on historical refund rates, with a corresponding reduction to cost of sales. For revenue transactions that involve more than one performance obligation, we defer the revenue associated with any unsatisfied performance obligation until the obligation is satisfied.

Our contract liabilities primarily relate to product merchandise not yet delivered to customers; unredeemed gift cards; services not yet completed; services technical support contracts, where performance is satisfied over the duration of the contract; and options that provide a material right to customers, such as our customer loyalty programs. We do not have any material contract assets.

The following table provides information about receivables and contract liabilities from our contracts with customers, which reflects the aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied as of May 4, 2019, February 2, 2019, and May 5, 2018 ($ in millions):



	May 4, 2019		February 2, 2019		May 5, 2018
Receivables, net(1)	$	484	$	565	$	582
Short-term contract liabilities included in:
Unredeemed gift cards		265		290		285
Deferred revenue		409		446		371
Accrued liabilities		139		146		139
Long-term contract liabilities included in:
Long-term liabilities		10		11		20

(1)

Receivables are recorded net of allowances for doubtful accounts of $12 million, $13 million, and $26 million as of May 4, 2019, February 2, 2019, and May 5, 2018, respectively.

We establish allowances for uncollectible receivables based on historical collection trends and write-off history. The following table summarizes our allowance for doubtful accounts activity related to contracts with customers during the three months ended May 4, 2019, and May 5, 2018 ($ in millions):



	Allowance for Doubtful Accounts
Balances at February 2, 2019	$	13
Charged to expenses or other accounts		10
Other(1)		(11)
Balances at May 4, 2019	$	12

Balances at February 4, 2018	$	24
Charged to expenses or other accounts		11
Other(1)		(9)
Balances at May 5, 2018	$	26

(1)Includes bad debt write-offs, recoveries and the effect of foreign currency fluctuations.

During the three months ended May 4, 2019, and May 5, 2018, $466 million and $455 million of revenue was recognized, respectively, that was included in the contract liability balance at the beginning of the respective periods. No revenue was recognized from performance obligations satisfied in previous periods.

The following table includes estimated revenue from our contract liability balances expected to be recognized in future periods if performance of the contract is expected to have a duration of more than one year ($ in millions):



	May 4, 2019(1)
Remainder of fiscal 2020	$	9
Fiscal 2021		7
Fiscal 2022		3
Fiscal 2023		1
Thereafter		-

(1)Amounts exclude unsatisfied performance obligations from contract liability balances with a duration of one year or less. The estimated transaction price revenue disclosed above also does not include amounts of variable consideration attributable to contracts where the consideration is constrained at May 4, 2019.

See Note 12, Segments, for a disaggregation of revenue by reportable segment and product category, which represents how our chief operating decision maker reviews information internally to evaluate our financial performance and to make resource allocation and other decisions for the enterprise.

Restructuring Charges

3 Months Ended

May 04, 2019

Restructuring Charges [Abstract]

Restructuring Charges

8. Restructuring Charges

Charges incurred in the three months ended May 4, 2019, and May 5, 2018, for our restructuring activities were $0 million and $30 million, respectively. All charges incurred in the prior-year period related to Best Buy Mobile. As of May 4, 2019, we have no material liabilities remaining for any restructuring plan.

Best Buy Mobile

On March 1, 2018, we announced our intent to close all of our 257 remaining Best Buy Mobile stand-alone stores in the U.S. This decision was a result of changing economics in the mobile industry since we began opening these stores in 2006, along with the integration of our mobile model into our core stores and online channel, which are more economically compelling today. All restructuring charges related to this plan are from continuing operations and are presented in Restructuring charges on our Condensed Consolidated Statements of Earnings.

The composition of the restructuring charges we incurred for Best Buy Mobile during the three months ended May 5, 2018, as well as the cumulative amount incurred through May 4, 2019, were as follows ($ in millions):



	Three Months Ended May 5, 2018		Cumulative Amount
Property and equipment impairments	$	-	$	1
Termination benefits		1		6
Facility closure and other costs		29		49
Total restructuring charges	$	30	$	56

Earnings Per Share

3 Months Ended

May 04, 2019

Earnings Per Share [Abstract]

Earnings per Share

9. 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, dividend equivalents attached to nonvested share awards that are settled in shares of Best Buy common stock 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 for the three months ended May 4, 2019, and May 5, 2018 ($ and shares in millions, except per share amounts):


	Three Months Ended
	May 4, 2019		May 5, 2018
Numerator
Net earnings	$	265	$	208

Denominator
Weighted-average common shares outstanding		267.6		282.6
Dilutive effect of stock compensation plan awards		3.9		5.7
Weighted average common shares outstanding, assuming dilution		271.5		288.3

Potential shares which were anti-dilutive and excluded from weighted average shares computation		0.8		0.1

Basic earnings per share	$	0.99	$	0.74
Diluted earnings per share	$	0.98	$	0.72

Repurchase of Common Stock

3 Months Ended

May 04, 2019

Equity [Abstract]

Repurchase of Common Stock

10. Repurchase of Common Stock

On February 23, 2019, our Board of Directors ("Board") authorized a $3.0 billion share repurchase program. There is no expiration date governing the period over which we can repurchase shares under the February 2019 authorization.

The following table presents information regarding the shares we repurchased during the three months ended May 4, 2019, and May 5, 2018 ($ and shares in millions, except per share amounts):



	Three Months Ended
	May 4, 2019		May 5, 2018
Total cost of shares repurchased	$	106	$	399
Average price per share	$	70.77	$	71.78
Number of shares repurchased		1.5		5.6

As of May 4, 2019, $2.9 billion of the $3.0 billion share repurchase authorization was available. Between the end of the first quarter of fiscal 2020 on May 4, 2019, and June 5, 2019, we repurchased an incremental 1.2 million shares of our common stock at a cost of $80 million.

Comprehensive Income

3 Months Ended

May 04, 2019

Equity [Abstract]

Comprehensive Income

11. Comprehensive Income

Changes in accumulated other comprehensive income, net of tax, were as follows for the three months ended May 4, 2019, and May 5, 2018 ($ in millions):


	Three Months Ended
	May 4, 2019		May 5, 2018
Foreign currency translation adjustments	$	(5)	$	(4)

The gains and losses on our net investment hedges, which are included in foreign currency translation adjustments, were not material for the periods presented. Foreign currency translation adjustments do not include a provision for income tax expense when earnings from foreign operations are considered to be indefinitely reinvested outside the U.S. Refer to Note 11, Income Taxes, of the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended February 2, 2019, for additional information.

Segments

3 Months Ended

May 04, 2019

Segment [Abstract]

Segments

12. Segments

Our chief operating decision maker ("CODM") is our Chief Executive Officer. Our business is organized into two reportable segments: Domestic (which is comprised of all states, districts and territories of the U.S., including GreatCall) and International (which is comprised of all operations in Canada and Mexico). Our CODM has ultimate responsibility for enterprise decisions. Our CODM determines, in particular, resource allocation for, and monitors the performance of, the consolidated enterprise, the Domestic segment and the International segment. The Domestic segment managers and International segment managers have responsibility for operating decisions, allocating resources and assessing performance within their respective segments. Our CODM relies on internal management reporting that analyzes enterprise results to the net earnings level and segment results to the operating income level.

We aggregate our Domestic and GreatCall operating segments into one Domestic reportable segment. We also aggregate our Canada and Mexico businesses into one International operating segment, which represents the International reportable segment. The accounting policies of the segments are the same.

Revenue by reportable segment and product category were as follows for the three months ended May 4, 2019, and May 5, 2018 ($ in millions):



	Three Months Ended
	May 4, 2019		May 5, 2018
Revenue by reportable segment
Domestic	$	8,481	$	8,412
International		661		697
Total revenue	$	9,142	$	9,109

Revenue by product category (1)
Domestic
Computing and Mobile Phones	$	3,851	$	3,899
Consumer Electronics		2,662		2,655
Appliances		961		883
Entertainment		473		548
Services		497		393
Other		37		34
Total Domestic revenue	$	8,481	$	8,412
International
Computing and Mobile Phones	$	305	$	331
Consumer Electronics		203		206
Appliances		59		61
Entertainment		36		43
Services		43		39
Other		15		17
Total International revenue	$	661	$	697

(1)Refer to our Annual Report on Form 10-K for the fiscal year ended February 2, 2019, for additional information regarding the key components of each revenue category.

Operating income (loss) by reportable segment and the reconciliation to earnings before income tax expense were as follows for the three months ended May 4, 2019, and May 5, 2018 ($ in millions):



	Three Months Ended
	May 4, 2019		May 5, 2018
Domestic	$	332	$	267
International		2		(2)
Total operating income		334		265
Other income (expense):
Investment income and other		14		11
Interest expense		(18)		(19)
Earnings before income tax expense	$	330	$	257

Assets by reportable segment were as follows as of May 4, 2019, February 2, 2019, and May 5, 2018 ($ in millions):



	May 4, 2019		February 2, 2019		May 5, 2018
Domestic	$	13,332	$	11,908	$	10,955
International		1,218		993		1,127
Total assets	$	14,550	$	12,901	$	12,082

Contingencies	3 Months Ended
Contingencies	May 04, 2019
Contingencies [Abstract]
Contingencies	13. Contingencies We are involved in a number of legal proceedings. Where appropriate, we have made accruals with respect to these matters, which are reflected on our Condensed Consolidated Financial Statements. However, there are cases where liability is not probable or the amount cannot be reasonably estimated and, therefore, accruals have not been made. We provide disclosure of matters where we believe it is reasonably possible the impact may be material to our Condensed Consolidated Financial Statements. Securities Actions In February 2011, a purported class action lawsuit captioned, IBEW Local 98 Pension Fund, individually and on behalf of all others similarly situated v. Best Buy Co., Inc., et al., was filed against us and certain of our executive officers in the U.S. District Court for the District of Minnesota. This federal court action alleges, among other things, that we and the officers named in the complaint violated Sections 10(b) and 20A of the Exchange Act and Rule 10b-5 under the Exchange Act in connection with press releases and other statements relating to our fiscal 2011 earnings guidance that had been made available to the public. Additionally, in March 2011, a similar purported class action was filed by a single shareholder, Rene LeBlanc, against us and certain of our executive officers in the same court. In July 2011, after consolidation of the IBEW Local 98 Pension Fund and Rene LeBlanc actions, a consolidated complaint captioned, IBEW Local 98 Pension Fund v. Best Buy Co., Inc., et al., was filed and served. Following discovery and motion practice Plaintiffs moved to certify the purported class. By Order filed August 6, 2014, the court certified a class of persons or entities who acquired Best Buy common stock between 10:00 a.m. EDT on September 14, 2010, and December 13, 2010, and who were damaged by the alleged violations of law. The 8th Circuit Court of Appeals granted our request for interlocutory appeal. On April 12, 2016, the 8th Circuit held the trial court misapplied the law and reversed the class certification order. IBEW petitioned the 8th Circuit for a rehearing en banc, which was denied on June 1, 2016. On June 23, 2017, the trial court denied plaintiff's request to file a new Motion for Class Certification. On October 30, 2017, plaintiffs filed a motion for leave to file a second amended class action complaint which the Magistrate Judge denied on July 11, 2018. On August 24, 2018, the District Court Judge overruled plaintiff’s objections to that ruling, affirming the Magistrate Judge’s denial of leave to amend. On March 8, 2019, the District Court Judge granted Best Buy’s motion for summary judgment dismissing the remaining claims with prejudice. All appeal periods in IBEW have been exhausted and the matter is closed. In June 2011, a purported shareholder derivative action captioned, Salvatore M. Talluto, Derivatively and on Behalf of Best Buy Co., Inc. v. Richard M. Schulze, et al., as Defendants and Best Buy Co., Inc. as Nominal Defendant, was filed against both present and former members of our Board serving during the relevant periods in fiscal 2011 and us as a nominal defendant in the U.S. District Court for the State of Minnesota. The lawsuit alleges that the director defendants breached their fiduciary duty, among other claims, including violation of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, in failing to correct public misrepresentations and material misstatements and/or omissions regarding our fiscal 2011 earnings projections and, for certain directors, selling stock while in possession of material adverse non-public information. Additionally, in July 2011, a similar purported class action was filed by a single shareholder, Daniel Himmel, against us and certain of our executive officers in the same court. In November 2011, the respective lawsuits of Salvatore M. Talluto and Daniel Himmel were consolidated into a new action captioned, In Re: Best Buy Co., Inc. Shareholder Derivative Litigation, and a stay ordered pending the close of discovery in the consolidated IBEW Local 98 Pension Fund v. Best Buy Co., Inc., et al. case. Additionally, in June 2015, a similar purported class action was filed by a single shareholder, Khuong Tran, derivatively on behalf of Best Buy Co., Inc. against us and certain of our executive officers and directors in the same court. The Khuong Tran lawsuit has also been stayed pending the close of discovery in IBEW. In Tran, the court entered an Order for Dismissal Without Prejudice on March 27, 2019. The plaintiffs in the above remaining securities actions seek damages, including interest, equitable relief and reimbursement of the costs and expenses they incurred in the lawsuits. As stated above, we believe the allegations in the above securities actions are without merit, and we intend to defend these actions vigorously. Based on our assessment of the facts underlying the claims in the above securities actions, their respective procedural litigation history and the degree to which we intend to defend our company in these matters, the amount or range of reasonably possible losses, if any, cannot be estimated. Other Legal Proceedings We are involved in various other legal proceedings arising in the normal course of conducting business. For such legal proceedings, we have accrued an amount that reflects the aggregate liability deemed probable and estimable, but this amount is not material to our consolidated financial position, results of operations or cash flows. Because of the preliminary nature of many of these proceedings, the difficulty in ascertaining the applicable facts relating to many of these proceedings, the variable treatment of claims made in many of these proceedings and the difficulty of predicting the settlement value of many of these proceedings, we are not able to estimate an amount or range of any reasonably possible additional losses. However, based upon our historical experience, the resolution of these proceedings is not expected to have a material effect on our consolidated financial position, results of operations or cash flows.

Subsequent Event	3 Months Ended
Subsequent Event	May 04, 2019
Subsequent Event [Abstract]
Subsequent Event	14. Subsequent Event On April 11, 2019, we signed a definitive agreement to acquire Critical Signal Technologies, Inc. (“CST”), a health services company, for approximately $125 million and the acquisition was completed on May 9, 2019. CST will be included in our GreatCall operating segment and our Domestic reportable segment.

Basis of Presentation (Policies)

3 Months Ended

May 04, 2019

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, as applicable, its consolidated subsidiaries.

In the opinion of management, the accompanying condensed consolidated financial statements contain all adjustments necessary for a fair presentation as prescribed by accounting principles generally accepted in the United States (“GAAP”). All adjustments were comprised of normal recurring adjustments, except as noted in these Notes to Condensed Consolidated Financial Statements.

Historically, we have generated a large proportion of our revenue and earnings in the fiscal fourth quarter, which includes the majority of the holiday shopping season in the U.S., Canada and Mexico. Due to the seasonal nature of our business, interim results are not necessarily indicative of results for the entire fiscal year. The interim financial statements and the related notes included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended February 2, 2019. The first three months of fiscal 2020 and fiscal 2019 included 13 weeks.

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

In preparing the accompanying condensed consolidated financial statements, we evaluated the period from May 4, 2019, through the date the financial statements were issued for material subsequent events requiring recognition or disclosure. Other

than as disclosed in Note 14, Subsequent Event, no such events were identified for the reported periods.

Unadopted & Adopted Accounting Pronouncements

Unadopted Accounting Pronouncements

In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which eliminates the requirement to calculate the implied fair value of goodwill (i.e., Step 2 of the current goodwill impairment test) to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value (i.e., measure the charge based on the current Step 1). We do not believe the new guidance, which is effective for fiscal years beginning after December 15, 2019, will have a material impact on our consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement - Disclosure Framework (Topic 820). The updated guidance improves the disclosure requirements for fair value measurements. The updated guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. We are currently evaluating the impact of adopting the updated provisions.

In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other - Internal Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. This guidance requires companies to apply the internal-use software guidance in Accounting Standards Codification (“ASC”) 350-40 to implementation costs incurred in a hosting arrangement that is a service contract to determine whether to capitalize certain implementation costs or expense them as incurred. We are currently evaluating the impact of adopting the updated provisions, which is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019.

Adopted Accounting Pronouncements

In February 2016, the FASB issued ASU 2016-02, Leases, which requires the recognition of operating lease assets and lease liabilities on the balance sheet. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. Under the new standard, disclosures are required to enable users of financial statements to assess the amount, timing and uncertainty of cash flows arising from leases.

In the first quarter of fiscal 2020, we adopted ASU 2016-02 using the “Comparatives Under 840 Option” approach to transition. Under this method, financial information related to periods prior to adoption will be as originally reported under the previous standard – ASC 840, Leases. The effects of adopting the new standard (ASC 842, Leases) in fiscal 2020 were recognized as a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal first quarter. We elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allows us to carry forward the historical lease classification as operating or capital leases. We also elected to combine lease and non-lease components and to exclude short-term leases from our consolidated balance sheets. We did not elect the hindsight practical expedient in determining the lease term for existing leases as of February 3, 2019.

The most significant impact of adoption was the recognition of operating lease assets and operating lease liabilities of $2.7 billion and $2.8 billion, respectively, while our accounting for existing capital leases (now referred to as finance leases) remained substantially unchanged. The cumulative impact of these changes decreased retained earnings by $19 million. We expect the impact of adoption to be immaterial to our consolidated statements of earnings and consolidated statements of cash flows on an ongoing basis. As part of our adoption, we also modified our control procedures and processes, none of which materially affected our internal control over financial reporting. See Note 3, Leases, for additional information regarding our accounting policy for leases and additional disclosures.

The cumulative effect of the changes made to our Condensed Consolidated Balance Sheets on February 3, 2019, for the adoption of this standard was as follows ($ in millions):



	February 2, 2019 As Reported		ASU 2016-02 Adjustment on February 3, 2019			February 3, 2019 Adjusted
Assets
Other current assets	$	466	$	(65)	(a)	$	401
Net property and equipment		2,510		(173)	(b)		2,337
Operating lease assets		-		2,736	(c)		2,736
Other assets		606		4	(d)		610
Liabilities
Accrued liabilities		982		(28)	(e)		954
Current portion of operating lease liabilities		-		712	(f)		712
Current portion of long-term debt		56		(43)	(b)		13
Long-term liabilities		750		(115)	(e)		635
Long-term operating lease liabilities		-		2,135	(f)		2,135
Long-term debt		1,332		(140)	(b)		1,192
Equity
Retained earnings		2,985		(19)	(g)		2,966

(a)Represents the reclassification of prepaid rent and leasehold acquisition costs to Operating lease assets.

(b)Represents the derecognition of financing obligations and reclassification to Operating lease assets.

(c)Represents the capitalization of operating lease assets and the reclassification of prepaid rent and leasehold acquisition costs, offset by the reclassification of straight-line rent accruals, tenant improvement allowances and vacant space reserves.

(d)Represents the deferred tax impact of the on-adoption adjustments.

(e)Represents the reclassification of straight-line rent accruals, tenant improvement allowances and vacant space reserves to Operating lease assets.

(f)Represents the recognition of operating lease liabilities.

(g)Represents the net-of-tax retained earnings impact of impairment charges and the derecognition of financing obligations.

Total Cash, Cash Equivalents and Restricted Cash

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets to the total shown within the Condensed Consolidated Statements of Cash Flows as of May 4, 2019, February 2, 2019, and May 5, 2018 ($ in millions):



	May 4, 2019		February 2, 2019		May 5, 2018
Cash and cash equivalents	$	1,561	$	1,980	$	1,848
Restricted cash included in Other current assets		206		204		201
Total cash, cash equivalents and restricted cash	$	1,767	$	2,184	$	2,049

Amounts included in restricted cash are pledged as collateral or restricted to use for workers’ compensation and general liability insurance claims.

Basis of Presentation (Tables)

3 Months Ended

May 04, 2019

Basis of Presentation

Schedule of New Accounting Pronouncements and Changes in Accounting Principles



	February 2, 2019 As Reported		ASU 2016-02 Adjustment on February 3, 2019			February 3, 2019 Adjusted
Assets
Other current assets	$	466	$	(65)	(a)	$	401
Net property and equipment		2,510		(173)	(b)		2,337
Operating lease assets		-		2,736	(c)		2,736
Other assets		606		4	(d)		610
Liabilities
Accrued liabilities		982		(28)	(e)		954
Current portion of operating lease liabilities		-		712	(f)		712
Current portion of long-term debt		56		(43)	(b)		13
Long-term liabilities		750		(115)	(e)		635
Long-term operating lease liabilities		-		2,135	(f)		2,135
Long-term debt		1,332		(140)	(b)		1,192
Equity
Retained earnings		2,985		(19)	(g)		2,966

(a)Represents the reclassification of prepaid rent and leasehold acquisition costs to Operating lease assets.

(b)Represents the derecognition of financing obligations and reclassification to Operating lease assets.

(c)Represents the capitalization of operating lease assets and the reclassification of prepaid rent and leasehold acquisition costs, offset by the reclassification of straight-line rent accruals, tenant improvement allowances and vacant space reserves.

(d)Represents the deferred tax impact of the on-adoption adjustments.

(e)Represents the reclassification of straight-line rent accruals, tenant improvement allowances and vacant space reserves to Operating lease assets.

(f)Represents the recognition of operating lease liabilities.

(g)Represents the net-of-tax retained earnings impact of impairment charges and the derecognition of financing obligations.

Total Cash, Cash Equivalents and Restricted Cash



	May 4, 2019		February 2, 2019		May 5, 2018
Cash and cash equivalents	$	1,561	$	1,980	$	1,848
Restricted cash included in Other current assets		206		204		201
Total cash, cash equivalents and restricted cash	$	1,767	$	2,184	$	2,049

Fair Value Measurements (Tables)

3 Months Ended

May 04, 2019

Fair Value Disclosures [Abstract]

Fair Value, Assets and Liabilities Measured on Recurring Basis



			Fair Value at
	Fair Value Hierarchy		May 4, 2019		February 2, 2019		May 5, 2018
Assets
Cash and cash equivalents:
Money market funds		Level 1	$	18	$	98	$	19
Time deposits		Level 2		60		300		200
Short-term investments:
Commercial paper		Level 2		-		-		100
Time deposits		Level 2		-		-		685
Other current assets:
Money market funds		Level 1		93		82		58
Time deposits		Level 2		102		101		101
Foreign currency derivative instruments		Level 2		-		-		3
Interest rate swap derivative instruments		Level 2		-		-		5
Other assets:
Marketable securities that fund deferred compensation		Level 1		46		44		99
Interest rate swap derivative instruments		Level 2		28		26		-

Liabilities
Accrued liabilities:
Foreign currency derivative instruments		Level 2		-		-		1
Long-term liabilities:
Interest rate swap derivative instruments		Level 2		6		1		15

Summary of Fair Value Remeasurements of Property and Equipment Impairments


	Impairments
	Three Months Ended				Remaining Net Carrying Value(2)
	May 4, 2019		May 5, 2018		May 4, 2019		May 5, 2018
Property and equipment (non-restructuring)(1)	$	2	$	2	$	2	$	-

(1)

Balances exclude immaterial amounts associated with operating lease assets.

(2)

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 May 4, 2019, and May 5, 2018.

Leases (Tables)

3 Months Ended

May 04, 2019

Leases [Abstract]

Supplemental Balance Sheet Information



	Balance Sheet Location	May 4, 2019
Assets
Operating leases	Operating lease assets	$	2,708
Finance leases	Property and equipment, net(1)		41
Total lease assets		$	2,749
Liabilities
Current:
Operating leases	Current portion of operating lease liabilities	$	639
Finance leases	Current portion of long-term debt		14
Non-current:
Operating leases	Long-term operating lease liabilities		2,173
Finance leases	Long-term debt		27
Total lease liabilities		$	2,853

(1)

Finance leases are recorded net of accumulated depreciation of $41 million as of May 4, 2019.

Components of Lease Cost



	Statement of Earnings Location	Three Months Ended May 4, 2019
Operating lease cost(1)	Cost of goods sold and SG&A(2)	$	195
Finance lease cost:
Depreciation of lease assets	Cost of goods sold and SG&A(2)		3
Interest on lease liabilities	Interest expense		1
Variable lease cost	Cost of goods sold and SG&A(2)		67
Sublease income	SG&A		(4)
Total lease cost		$	262

(1)

Includes short-term leases, which are immaterial.

(2)

Supply chain-related amounts are included in Cost of goods sold.

Other Information



	Three Months Ended May 4, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	201
Operating cash flows from finance leases		1
Financing cash flows from finance leases		4
Lease assets obtained in exchange for new lease liabilities:
Operating leases		147
Finance leases		2

Weighted average remaining lease term:
Operating leases		5.4 years
Finance leases		5.3 years
Weighted average discount rate:
Operating leases		3.4	%
Finance leases		4.4	%

Future Lease Payments



	Operating Leases(1)		Finance Leases(1)
Remainder of fiscal 2020	$	539	$	11
Fiscal 2021		708		13
Fiscal 2022		570		8
Fiscal 2023		418		4
Fiscal 2024		293		3
Fiscal 2025		187		2
Thereafter		378		5
Total future undiscounted lease payments		3,093		46
Less imputed interest		(281)		(5)
Total reported lease liability	$	2,812	$	41

(1)

Lease payments exclude $51 million of legally binding fixed costs for leases signed but not yet commenced, primarily related to operating leases.

Future Lease Payments Under ASC 840



	Capital Leases		Financing Leases		Operating Leases(1)
Fiscal 2020	$	14	$	48	$	700
Fiscal 2021		11		42		648
Fiscal 2022		7		35		513
Fiscal 2023		4		24		371
Fiscal 2024		2		16		253
Thereafter		7		40		476
Total minimum lease payments		45		205	$	2,961
Less amount representing interest		(6)		(24)
Present value of minimum lease payments		39		181
Less current maturities		(12)		(43)
Present value of minimum lease maturities, less current maturities	$	27	$	138

(1)

Operating lease obligations do not include payments to landlords covering real estate taxes and common area maintenance. These charges, if included, would have increased total operating lease obligations by $0.8 billion at February 2, 2019.

Goodwill and Intangible Assets (Tables)

3 Months Ended

May 04, 2019

Goodwill and Intangible Assets [Abstract]

Goodwill and Indefinite-Lived Intangible Assets


	May 4, 2019		February 2, 2019		May 5, 2018
Goodwill	$	915	$	915	$	425
Indefinite-lived tradename included in Other assets		18		18		18

Gross Carrying Amount of Goodwill and Cumulative Goodwill Impairment


	May 4, 2019				February 2, 2019				May 5, 2018
	Gross Carrying Amount		Cumulative Impairment		Gross Carrying Amount		Cumulative Impairment		Gross Carrying Amount		Cumulative Impairment
Goodwill	$	1,590	$	(675)	$	1,590	$	(675)	$	1,100	$	(675)

Definite-Lived Intangible Assets


	May 4, 2019				February 2, 2019
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Customer relationships	$	258	$	29	$	258	$	16
Tradename		63		5		63		3
Developed technology		52		6		52		4
Total	$	373	$	40	$	373	$	23

Amortization Expense Expected to be Recognized


	Amortization Expense
Remainder of fiscal 2020	$	51
Fiscal 2021		68
Fiscal 2022		67
Fiscal 2023		67
Fiscal 2024		48
Fiscal 2025		10
Thereafter		22

Derivative Instruments (Tables)

3 Months Ended

May 04, 2019

Derivative Instruments [Abstract]

Gross Fair Values of Outstanding Derivative Instruments


	Balance Sheet	Assets
Contract Type	Location	May 4, 2019		February 2, 2019		May 5, 2018
Derivatives designated as net investment hedges	Other current assets	$	-	$	-	$	3
Derivatives designated as interest rate swaps	Other current assets and Other assets		28		26		5
Total		$	28	$	26	$	8


	Balance Sheet	Liabilities
Contract Type	Location	May 4, 2019		February 2, 2019		May 5, 2018
Derivatives designated as net investment hedges	Accrued liabilities	$	-	$	-	$	1
Derivatives designated as interest rate swaps	Long-term liabilities		6		1		15
Total		$	6	$	1	$	16

Effects of Derivative Instruments on OCI and Earnings



	Three Months Ended
Derivatives designated as net investment hedges	May 4, 2019		May 5, 2018
Pre-tax gain recognized in OCI	$	-	$	16

Effects of Derivatives Not Designated as Hedging Instruments on Earnings

Gain Recognized

Three Months Ended

Contract Type

Statement of Earnings Location

May 4, 2019

May 5, 2018

No hedge designation (foreign exchange contracts)

SG&A

$

1

$

1

Effects of Interest Rate Derivatives and Adjustments to LTD on Earnings


		Gain (Loss) Recognized
		Three Months Ended
Contract Type	Statement of Earnings Location	May 4, 2019		May 5, 2018
Interest rate swap contracts	Interest expense	$	(2)	$	(5)
Adjustments to carrying value of long-term debt	Interest expense		2		5
Total		$	-	$	-

Notional Amount of Derivative Instruments



	Notional Amount
Contract Type	May 4, 2019		February 2, 2019		May 5, 2018
Derivatives designated as net investment hedges	$	15	$	15	$	135
Derivatives designated as interest rate swaps		1,150		1,150		1,150
No hedge designation (foreign exchange contracts)		44		9		39
Total	$	1,209	$	1,174	$	1,324

Debt (Tables)

3 Months Ended

May 04, 2019

Debt [Abstract]

Schedule of Long-term Debt



	May 4, 2019		February 2, 2019		May 5, 2018
Notes, 5.00%, due August 1, 2018	$	-	$	-	$	500
Notes, 5.50%, due March 15, 2021		650		650		650
Notes, 4.45%, due October 1, 2028		500		500		-
Interest rate swap valuation adjustments		23		25		(10)
Subtotal		1,173		1,175		1,140
Debt discounts and issuance costs		(7)		(7)		(2)
Financing lease obligations (1)		-		181		184
Capital lease obligations (1)		-		39		20
Finance lease obligations (1)		41		-		-
Total long-term debt		1,207		1,388		1,342
Less current portion		14		56		550
Total long-term debt, less current portion	$	1,193	$	1,332	$	792

(1)

See Note 3, Leases, for additional information regarding our lease obligations.

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Revenue Recognition (Tables)

3 Months Ended

May 04, 2019

Revenue Recognition [Abstract]

Contract Balances and Changes in Contract Balances

The following table provides information about receivables and contract liabilities from our contracts with customers, which reflects the aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied as of May 4, 2019, February 2, 2019, and May 5, 2018 ($ in millions):



	May 4, 2019		February 2, 2019		May 5, 2018
Receivables, net(1)	$	484	$	565	$	582
Short-term contract liabilities included in:
Unredeemed gift cards		265		290		285
Deferred revenue		409		446		371
Accrued liabilities		139		146		139
Long-term contract liabilities included in:
Long-term liabilities		10		11		20

(1)

Receivables are recorded net of allowances for doubtful accounts of $12 million, $13 million, and $26 million as of May 4, 2019, February 2, 2019, and May 5, 2018, respectively.

We establish allowances for uncollectible receivables based on historical collection trends and write-off history. The following table summarizes our allowance for doubtful accounts activity related to contracts with customers during the three months ended May 4, 2019, and May 5, 2018 ($ in millions):



	Allowance for Doubtful Accounts
Balances at February 2, 2019	$	13
Charged to expenses or other accounts		10
Other(1)		(11)
Balances at May 4, 2019	$	12

Balances at February 4, 2018	$	24
Charged to expenses or other accounts		11
Other(1)		(9)
Balances at May 5, 2018	$	26

(1)Includes bad debt write-offs, recoveries and the effect of foreign currency fluctuations.

Expected Timimg for Satisfying Remaining Performance Obligation



	May 4, 2019(1)
Remainder of fiscal 2020	$	9
Fiscal 2021		7
Fiscal 2022		3
Fiscal 2023		1
Thereafter		-

(1)Amounts exclude unsatisfied performance obligations from contract liability balances with a duration of one year or less. The estimated transaction price revenue disclosed above also does not include amounts of variable consideration attributable to contracts where the consideration is constrained at May 4, 2019.

Restructuring Charges (Tables)

3 Months Ended

May 04, 2019

Best Buy Mobile [Member]

Restructuring Cost and Reserve [Line Items]

Composition of Restructuring Charges



	Three Months Ended May 5, 2018		Cumulative Amount
Property and equipment impairments	$	-	$	1
Termination benefits		1		6
Facility closure and other costs		29		49
Total restructuring charges	$	30	$	56

Earnings Per Share (Tables)

3 Months Ended

May 04, 2019

Earnings Per Share [Abstract]

Schedule of Calculation of Numerator and Denominator in Earnings Per Share


	Three Months Ended
	May 4, 2019		May 5, 2018
Numerator
Net earnings	$	265	$	208

Denominator
Weighted-average common shares outstanding		267.6		282.6
Dilutive effect of stock compensation plan awards		3.9		5.7
Weighted average common shares outstanding, assuming dilution		271.5		288.3

Potential shares which were anti-dilutive and excluded from weighted average shares computation		0.8		0.1

Basic earnings per share	$	0.99	$	0.74
Diluted earnings per share	$	0.98	$	0.72

Repurchase of Common Stock (Tables)

3 Months Ended

May 04, 2019

Equity [Abstract]

Schedule of share repurchases



	Three Months Ended
	May 4, 2019		May 5, 2018
Total cost of shares repurchased	$	106	$	399
Average price per share	$	70.77	$	71.78
Number of shares repurchased		1.5		5.6

Comprehensive Income (Tables)

3 Months Ended

May 04, 2019

Equity [Abstract]

Components of Accumulated Other Comprehensive Income


	Three Months Ended
	May 4, 2019		May 5, 2018
Foreign currency translation adjustments	$	(5)	$	(4)

Segments (Tables)

3 Months Ended

May 04, 2019

Segment [Abstract]

Revenue by Reportable Segment and Product Category



	Three Months Ended
	May 4, 2019		May 5, 2018
Revenue by reportable segment
Domestic	$	8,481	$	8,412
International		661		697
Total revenue	$	9,142	$	9,109

Revenue by product category (1)
Domestic
Computing and Mobile Phones	$	3,851	$	3,899
Consumer Electronics		2,662		2,655
Appliances		961		883
Entertainment		473		548
Services		497		393
Other		37		34
Total Domestic revenue	$	8,481	$	8,412
International
Computing and Mobile Phones	$	305	$	331
Consumer Electronics		203		206
Appliances		59		61
Entertainment		36		43
Services		43		39
Other		15		17
Total International revenue	$	661	$	697

(1)Refer to our Annual Report on Form 10-K for the fiscal year ended February 2, 2019, for additional information regarding the key components of each revenue category.

Operating Income by Reportable Segment and Reconciliation to Earnings Before Income Tax Expense



	Three Months Ended
	May 4, 2019		May 5, 2018
Domestic	$	332	$	267
International		2		(2)
Total operating income		334		265
Other income (expense):
Investment income and other		14		11
Interest expense		(18)		(19)
Earnings before income tax expense	$	330	$	257

Assets by Reportable Segment



	May 4, 2019		February 2, 2019		May 5, 2018
Domestic	$	13,332	$	11,908	$	10,955
International		1,218		993		1,127
Total assets	$	14,550	$	12,901	$	12,082

Basis of Presentation (Narrative) (Details) - USD ($)
$ in Millions

May 04, 2019

Feb. 03, 2019

Feb. 02, 2019

May 05, 2018

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Operating lease assets

$ 2,708

Operating lease liabilities

^[1]

2,812

Retained earnings

$ 3,038

$ 2,985

$ 3,082

Adoption of ASU 2016-02

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Operating lease assets

$ 2,736

Operating lease liabilities

2,800

Retained earnings

2,966

Restatement Adjustment [Member] | Adoption of ASU 2016-02

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Operating lease assets

^[2]

2,736

Retained earnings

^[3]

$ (19)

[1]	Lease payments exclude $51 million of legally binding fixed costs for leases signed but not yet commenced, primarily related to operating leases.
[2]	Represents the capitalization of operating lease assets and the reclassification of prepaid rent and leasehold acquisition costs, offset by the reclassification of straight-line rent accruals, tenant improvement allowances and vacant space reserves.
[3]	Represents the net-of-tax retained earnings impact of impairment charges and the derecognition of financing obligations.

Basis of Presentation (Schedule of Cumulative On Adoption Impact ) (Details) - USD ($)
$ in Millions

May 04, 2019

Feb. 03, 2019

Feb. 02, 2019

May 05, 2018

Assets

Other current assets

$ 425

$ 466

$ 473

Net property and equipment

2,334

2,510

2,385

Operating lease assets

2,708

Other assets

579

606

342

Liabilities

Accrued liabilities

851

982

934

Current portion of operating lease liabilities

639

Current portion of long-term debt

14

56

550

Long-term liabilities

659

750

815

Long-term operating lease liabilities

2,173

Long-term debt

1,193

1,332

792

Equity

Retained earnings

$ 3,038

2,985

$ 3,082

Adoption of ASU 2016-02

Assets

Other current assets

$ 401

Net property and equipment

2,337

Operating lease assets

2,736

Other assets

610

Liabilities

Accrued liabilities

954

Current portion of operating lease liabilities

712

Current portion of long-term debt

13

Long-term liabilities

635

Long-term operating lease liabilities

2,135

Long-term debt

1,192

Equity

Retained earnings

2,966

Adoption of ASU 2016-02 | As Reported [Member]

Assets

Other current assets

466

Net property and equipment

2,510

Other assets

606

Liabilities

Accrued liabilities

982

Current portion of long-term debt

56

Long-term liabilities

750

Long-term debt

1,332

Equity

Retained earnings

$ 2,985

Adoption of ASU 2016-02 | Restatement Adjustment [Member]

Assets

Other current assets

^[1]

(65)

Net property and equipment

^[2]

(173)

Operating lease assets

^[3]

2,736

Other assets

^[4]

4

Liabilities

Accrued liabilities

^[5]

(28)

Current portion of operating lease liabilities

^[6]

712

Current portion of long-term debt

^[2]

(43)

Long-term liabilities

^[5]

(115)

Long-term operating lease liabilities

^[6]

2,135

Long-term debt

^[2]

(140)

Equity

Retained earnings

^[7]

$ (19)

[1]	Represents the reclassification of prepaid rent and leasehold acquisition costs to Operating lease assets
[2]	Represents the derecognition of financing obligations and reclassification to Operating lease assets.
[3]	Represents the capitalization of operating lease assets and the reclassification of prepaid rent and leasehold acquisition costs, offset by the reclassification of straight-line rent accruals, tenant improvement allowances and vacant space reserves.
[4]	Represents the deferred tax impact of the on-adoption adjustments.
[5]	Represents the reclassification of straight-line rent accruals, tenant improvement allowances and vacant space reserves to Operating lease assets.
[6]	Represents the recognition of operating lease liabilities.
[7]	Represents the net-of-tax retained earnings impact of impairment charges and the derecognition of financing obligations.

Basis of Presentation (Total Cash, Cash Equivalents and Restricted Cash) (Details) - USD ($) $ in Millions	May 04, 2019	Feb. 02, 2019	May 05, 2018	Feb. 03, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Cash and cash equivalents	$ 1,561	$ 1,980	$ 1,848
Restricted cash included in Other current assets	206	204	201
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Total	$ 1,767	$ 2,184	$ 2,049	$ 1,300

Fair Value Measurements (Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions	May 04, 2019	Feb. 02, 2019	May 05, 2018
Level 1 [Member] \| Money market funds [Member]
ASSETS
Cash and cash equivalents	$ 18	$ 98	$ 19
Other current assets	93	82	58
Level 1 [Member] \| Marketable securities that fund deferred compensation [Member]
ASSETS
Other assets	46	44	99
Level 2 [Member] \| Time deposits [Member]
ASSETS
Cash and cash equivalents	60	300	200
Short-term investments			685
Other current assets	102	101	101
Level 2 [Member] \| Commercial paper [Member]
ASSETS
Short-term investments			100
Level 2 [Member] \| Foreign currency derivative instruments [Member]
ASSETS
Other current assets			3
Liabilities
Accrued liabilities			1
Level 2 [Member] \| Interest rate swap derivative instruments [Member]
ASSETS
Other current assets			5
Other assets	28	26
Liabilities
Long-term liabilities	$ 6	$ 1	$ 15

Fair Value Measurements (Summary of Fair Value Remeasurements of Property and Equipment Impairments) (Details) - Fair Value, Measurements, Nonrecurring [Member] - Level 3 [Member] - SG&A [Member] - USD ($)
$ in Millions

3 Months Ended

May 04, 2019

May 05, 2018

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Impairments

^[1]

$ 2

Remaining Net Carrying Value

^[1],[2]

$ 2

[1]	Balances exclude immaterial amounts associated with operating lease assets.
[2]	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 May 4, 2019, and May 5, 2018.

Leases (Supplemental Balance Sheet Information) (Details)
$ in Millions

May 04, 2019

USD ($)

Assets

Operating leases

$ 2,708

Finance leases

$ 41

^[1]

Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]

us-gaap:PropertyPlantAndEquipmentNet

Total leased assets

$ 2,749

Current:

Operating leases

639

Finance leases

$ 14

Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]

us-gaap:LongTermDebtCurrent

Non-current:

Operating leases

$ 2,173

Finance leases

$ 27

Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]

us-gaap:LongTermDebtAndCapitalLeaseObligations

Total lease liabilities

$ 2,853

Accumulated depreciation

$ 41

[1]	Finance leases are recorded net of accumulated depreciation of $41 million as of May 4, 2019.

Leases (Components of Lease Cost) (Details)
$ in Millions

3 Months Ended

May 04, 2019

USD ($)

Leases [Abstract]

Operating lease cost

$ 195

^[1],[2]

Depreciation of lease assets

3

^[2]

Interest on lease liabilities

1

Variable lease cost

67

^[2]

Sublease income

(4)

Total lease cost

$ 262

[1]	Includes short-term leases, which are immaterial.
[2]	Supply chain-related amounts are included in Cost of goods sold.

Leases (Other Information) (Details) $ in Millions	3 Months Ended
Leases (Other Information) (Details) $ in Millions	May 04, 2019 USD ($)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 201
Operating cash flows from finance leases	1
Financing cash flows from finance leases	4
Lease assets obtained in exchange for new lease liabilities:
Operating leases	147
Finance leases	$ 2
Weighted average remaining lease term:
Operating leases	5 years 4 months 24 days
Finance leases	5 years 3 months 18 days
Weighted average discount rate:
Operating leases	3.40%
Finance leases	4.40%

Leases (Future Lease Payments) (Details)
$ in Millions

May 04, 2019

USD ($)

Operating Leases

Remainder of fiscal 2020

$ 539

^[1]

Fiscal 2021

708

^[1]

Fiscal 2022

570

^[1]

Fiscal 2023

418

^[1]

Fiscal 2024

293

^[1]

Fiscal 2025

187

^[1]

Thereafter

378

^[1]

Total future undiscounted lease payments

3,093

^[1]

Less imputed interest

(281)

^[1]

Total reported lease liability

2,812

^[1]

Financing Leases

Remainder of fiscal 2020

11

^[1]

Fiscal 2021

13

^[1]

Fiscal 2022

8

^[1]

Fiscal 2023

4

^[1]

Fiscal 2024

3

^[1]

Fiscal 2025

2

^[1]

Thereafter

5

^[1]

Total future undiscounted lease payments

46

^[1]

Less imputed interest

(5)

^[1]

Total reported lease liability

41

^[1],[2]

Leases signed but not yet commenced

$ 51

[1]	Lease payments exclude $51 million of legally binding fixed costs for leases signed but not yet commenced, primarily related to operating leases.
[2]	See Note 3, Leases, for additional information regarding our lease obligations.

Leases (Future Lease Payments Under ASC 840) (Details)
$ in Millions

12 Months Ended

Feb. 02, 2019

USD ($)

Capital Leases

$ 14

11

7

4

2

7

Total minimum lease payments

45

Less amount representing interest

(6)

Present value of minimum lease payments

39

Less current maturities

(12)

Present value of minimum lease maturities, less current maturities

27

48

42

35

24

16

40

Total minimum lease payments

205

Less amount representing interest

(24)

Present value of minimum lease payments

181

Less current maturities

(43)

Present value of minimum lease maturities, less current maturities

138

Operating Lease

Fiscal 2020

700

^[1]

Fiscal 2021

648

^[1]

Fiscal 2022

513

^[1]

Fiscal 2023

371

^[1]

Fiscal 2024

253

^[1]

Thereafter

476

^[1]

Total minimum lease payments

2,961

^[1]

Operating lease obligations excluded

$ 800

[1]	Operating lease obligations do not include payments to landlords covering real estate taxes and common area maintenance. These charges, if included, would have increased total operating lease obligations by $0.8 billion at February 2, 2019.

Goodwill and Intangible Assets (Narrative) (Details) - USD ($)	3 Months Ended
	May 04, 2019	May 05, 2018
Goodwill and Intangible Assets [Abstract]
Amortization expense	$ 17,000,000	$ 0

Goodwill and Intangible Assets (Goodwill and Indefinite-Lived Intangible Assets) (Details) - USD ($) $ in Millions	May 04, 2019	Feb. 02, 2019	May 05, 2018
Goodwill and Intangible Assets [Abstract]
Goodwill	$ 915	$ 915	$ 425
Indefinite-lived tradename included in Other assets	$ 18	$ 18	$ 18

Goodwill and Intangible Assets (Gross Carrying Amount of Goodwill and Cumulative Goodwill Impairment) (Details) - USD ($) $ in Millions	May 04, 2019	Feb. 02, 2019	May 05, 2018
Goodwill and Intangible Assets [Abstract]
Gross Carrying Amount	$ 1,590	$ 1,590	$ 1,100
Cumulative Impairment	$ (675)	$ (675)	$ (675)

Goodwill and Intangible Assets (Definite-Lived Intangible Assets) (Details) - USD ($) $ in Millions	May 04, 2019	Feb. 02, 2019
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 373	$ 373
Accumulated Amortization	40	23
Customer Relationships [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	258	258
Accumulated Amortization	29	16
Tradenames [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	63	63
Accumulated Amortization	5	3
Developed Technology [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	52	52
Accumulated Amortization	$ 6	$ 4

Goodwill and Intangible Assets (Amortization Expense Expected to be Recognized) (Details) $ in Millions	May 04, 2019 USD ($)
Goodwill and Intangible Assets [Abstract]
Remainder of fiscal 2020	$ 51
Fiscal 2021	68
Fiscal 2022	67
Fiscal 2023	67
Fiscal 2024	48
Fiscal 2025	10
Thereafter	$ 22

Derivative Instruments (Narrative) (Details)	3 Months Ended
Derivative Instruments (Narrative) (Details)	May 04, 2019 USD ($)
Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Term of Contract	12 months
Derivatives designated as net investment hedges \| Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Term of Contract	12 months
Notes due 2018 [Member]
Derivative [Line Items]
Debt Instrument, Face Amount	$ 500,000,000
Notes due 2021 [Member]
Derivative [Line Items]
Debt Instrument, Face Amount	650,000,000
Notes due 2028 [Member]
Derivative [Line Items]
Debt Instrument, Face Amount	$ 500,000,000

Derivative Instruments (Gross Fair Values of Outstanding Derivative Instruments) (Details) - USD ($) $ in Millions	May 04, 2019	Feb. 02, 2019	May 05, 2018
Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Assets	$ 28	$ 26	$ 8
Liabilities	6	1	16
Interest rate swap derivative instruments [Member]
Derivatives, Fair Value [Line Items]
Liabilities	(23)	(25)	10
Other current assets \| Derivatives designated as net investment hedges \| Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Assets			3
Other current assets and Other assets \| Interest rate swap derivative instruments [Member] \| Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Assets	28	26	5
Accrued liabilities \| Derivatives designated as net investment hedges \| Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Liabilities			1
Long-term liabilities \| Interest rate swap derivative instruments [Member] \| Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Liabilities	$ 6	$ 1	$ 15

Derivative Instruments (Effects of Derivative Instruments on OCI and Earnings) (Details) $ in Millions	3 Months Ended
	May 05, 2018 USD ($)
Designated as Hedging Instrument [Member] \| Derivatives designated as net investment hedges
Derivatives, Fair Value [Line Items]
Pre-tax gain recognized in OCI	$ 16

Derivative Instruments (Effects of Derivatives Not Designated as Hedging Instruments on Earnings) (Details) $ in Millions	3 Months Ended
	May 05, 2018 USD ($)
SG&A [Member] \| Foreign exchange forward contracts \| Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Gain Recognized	$ 1

Derivative Instruments (Effects of Interest Rate Derivatives and Adjustments to LTD on Earnings) (Details) - Designated as Hedging Instrument [Member] - USD ($) $ in Millions	3 Months Ended
	May 04, 2019	May 05, 2018
Derivatives, Fair Value [Line Items]
Gain (Loss) Recognized
Interest rate swap derivative instruments [Member] \| Interest Expense [Member]
Derivatives, Fair Value [Line Items]
Gain (Loss) Recognized	(2)	$ (5)
Carrying Value Of Long Term Debt [Member] \| Interest Expense [Member]
Derivatives, Fair Value [Line Items]
Gain (Loss) Recognized	$ 2	$ 5

Derivative Instruments (Notional Amount of Derivative Instruments) (Details) - USD ($) $ in Millions	May 04, 2019	Feb. 02, 2019	May 05, 2018
Derivatives, Fair Value [Line Items]
Notional Amount	$ 1,209	$ 1,174	$ 1,324
Derivatives designated as net investment hedges \| Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Notional Amount	15	15	135
Interest rate swap derivative instruments [Member] \| Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Notional Amount	1,150	1,150	1,150
Foreign exchange forward contracts \| Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Notional Amount	$ 44	$ 9	$ 39

Debt (Narrative) (Short-Term Debt) (Details) - Revolving Credit Facility [Member] - USD ($)	3 Months Ended
	May 04, 2019	Feb. 02, 2019	May 05, 2018
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 1,250,000,000
Debt instrument, term	5 years
Outstanding borrowings	$ 0	$ 0	$ 0

- Definition

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

Debt (Narrative) (Long-Term Debt) (Details) - USD ($)	3 Months Ended
Debt (Narrative) (Long-Term Debt) (Details) - USD ($)	May 04, 2019	Feb. 02, 2019	May 05, 2018
Debt Instrument [Line Items]
Long-term Debt, Fair Value	$ 1,213,000,000	$ 1,178,000,000	$ 1,176,000,000
Carrying value	1,173,000,000	$ 1,175,000,000	$ 1,140,000,000
Notes due 2018 [Member]
Debt Instrument [Line Items]
Extinguishment of Debt, Amount	500,000,000
Debt Instrument, Face Amount	500,000,000
Notes due 2028 [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 500,000,000

Debt (Schedule of Long-Term Debt) (Details) - USD ($)
$ in Millions

May 04, 2019

Feb. 02, 2019

May 05, 2018

Debt Instrument [Line Items]

Subtotal

$ 1,173

$ 1,175

$ 1,140

Debt discounts and issuance costs

(7)

(2)

Financing lease obligations

^[1]

181

184

Capital lease obligations

^[1]

39

20

Finance lease obligations

^[1],[2]

41

Long-term Debt, Total

1,207

1,388

1,342

Current portion of long-term debt

14

56

550

Total long-term debt, less current portion

1,193

1,332

792

Interest rate swap derivative instruments [Member]

Debt Instrument [Line Items]

Interest rate swap valuation adjustments

$ 23

25

(10)

Notes due 2018 [Member]

Debt Instrument [Line Items]

Long-term debt

500

Interest rate

5.00%

Notes due 2021 [Member]

Debt Instrument [Line Items]

Long-term debt

$ 650

650

$ 650

Interest rate

5.50%

Notes due 2028 [Member]

Debt Instrument [Line Items]

Long-term debt

$ 500

Interest rate

4.45%

[1]	See Note 3, Leases, for additional information regarding our lease obligations.
[2]	Lease payments exclude $51 million of legally binding fixed costs for leases signed but not yet commenced, primarily related to operating leases.

Revenue Recognition (Narrative) (Details) - USD ($)	3 Months Ended
Revenue Recognition (Narrative) (Details) - USD ($)	May 04, 2019	May 05, 2018
Revenue Recognition [Abstract]
Revenue recognized	$ 466,000,000	$ 455,000,000
Revenue recognized from performance obligations satisfied in previous periods	$ 0	$ 0

Revenue Recognition (Receivables and Contract Liabilities from Contracts with Customers) (Details) - USD ($)
$ in Millions

May 04, 2019

Feb. 02, 2019

May 05, 2018

Feb. 03, 2018

Revenue Recognition [Abstract]

Receivables, net

^[1]

$ 484

$ 565

$ 582

Short-term contract liabilities included in:

Unredeemed gift cards

265

290

285

Deferred revenue

409

446

371

Accrued liabilities

139

146

139

Long-term contract liabilities included in:

Long-term liabilities

10

11

20

Receivables, allowance for doubtful accounts

$ 12

$ 13

$ 26

$ 24

[1]	Receivables are recorded net of allowances for doubtful accounts of $12 million, $13 million, and $26 million as of May 4, 2019, February 2, 2019, and May 5, 2018, respectively.

Revenue Recognition (Allowance for Doubtful Accounts Related to Contracts with Customers) (Details) - USD ($)
$ in Millions

3 Months Ended

May 04, 2019

May 05, 2018

Revenue Recognition [Abstract]

Balances

$ 13

$ 24

Charged to expenses or other accounts

10

11

Other

^[1]

(11)

(9)

Balances

$ 12

$ 26

[1]	Includes bad debt write-offs, recoveries and the effect of foreign currency fluctuations.

Revenue Recognition (Expected Timimg for Satisfying Remaining Performance Obligation) (Details)
$ in Millions

May 04, 2019

USD ($)

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-12-31

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]

Estimated revenue from our contract liability balances

$ 9

^[1]

Performance obligations from contract liability balances, duration

1 year

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-12-31

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]

Estimated revenue from our contract liability balances

$ 7

^[1]

Performance obligations from contract liability balances, duration

1 year

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-12-31

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]

Estimated revenue from our contract liability balances

$ 3

^[1]

Performance obligations from contract liability balances, duration

1 year

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-12-31

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]

Estimated revenue from our contract liability balances

$ 1

^[1]

Performance obligations from contract liability balances, duration

1 year

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-12-31

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]

Estimated revenue from our contract liability balances

^[1]

Performance obligations from contract liability balances, duration

1 year

[1]

Amounts exclude unsatisfied performance obligations from contract liability balances with a duration of one year or less. The estimated transaction price revenue disclosed above also does not include amounts of variable consideration attributable to contracts where the consideration is constrained at May 4, 2019.

Restructuring Charges (Narrative) (Details)	3 Months Ended
Restructuring Charges (Narrative) (Details)	May 04, 2019 USD ($)	May 05, 2018 USD ($)	Mar. 01, 2018 store
Restructuring Cost and Reserve [Line Items]
Restructuring charges		$ 30,000,000
Best Buy Mobile [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 0	30,000,000
Number of stores to be closed \| store			257
Restructuring reserve	$ 0
Facility closure and other costs [Member] \| Best Buy Mobile [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges		$ 29,000,000

Restructuring Charges (Composition of Restructuring Charges) (Details) - USD ($)	3 Months Ended
	May 04, 2019	May 05, 2018
Restructuring Cost and Reserve [Line Items]
Restructuring charges		$ 30,000,000
Best Buy Mobile [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 0	30,000,000
Cumulative Amount	56,000,000
Best Buy Mobile [Member] \| Property and equipment impairments [Member]
Restructuring Cost and Reserve [Line Items]
Cumulative Amount	1,000,000
Best Buy Mobile [Member] \| Termination benefits [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges		1,000,000
Cumulative Amount	6,000,000
Best Buy Mobile [Member] \| Facility closure and other costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges		$ 29,000,000
Cumulative Amount	$ 49,000,000

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	May 04, 2019	May 05, 2018
Earnings Per Share [Abstract]
Net earnings	$ 265	$ 208
Weighted-average common shares outstanding (in shares)	267.6	282.6
Dilutive effect of stock compensation plan awards	3.9	5.7
Weighted-average common shares outstanding, assuming dilution (in shares)	271.5	288.3
Potential shares which were anti-dilutive and excluded from weighted average shares computation	0.8	0.1
Basic earnings per share	$ 0.99	$ 0.74
Diluted earnings per share	$ 0.98	$ 0.72

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=114873790&loc=SL114874131-224263

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109260490&loc=d3e1337-109256

Reference 3: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=109256448&loc=d3e4984-109258

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
-URI http://asc.fasb.org/extlink&oid=115205541&loc=SL114868664-224227

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=109260490&loc=d3e1252-109256

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(23))
-URI http://asc.fasb.org/extlink&oid=114873765&loc=SL114874048-224260

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=109260490&loc=SL5780133-109256

+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=109256448&loc=d3e4984-109258

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=109260490&loc=d3e1252-109256

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(23))
-URI http://asc.fasb.org/extlink&oid=114873765&loc=SL114874048-224260

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109260490&loc=d3e1337-109256

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
-URI http://asc.fasb.org/extlink&oid=115205541&loc=SL114868664-224227

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=109260490&loc=SL5780133-109256

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=114873790&loc=SL114874131-224263

+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Repurchase of Common Stock (Narrative) (Details) - USD ($) shares in Millions, $ in Millions	1 Months Ended	3 Months Ended
	Jun. 05, 2019	May 04, 2019	May 05, 2018
Stock Repurchases [Line Items]
Total cost of shares repurchased		$ 106	$ 399
Number of shares repurchased		1.5	5.6
February 2019 Share Repurchase Program [Member]
Stock Repurchases [Line Items]
Stock Repurchase Program, Authorized Amount		$ 3,000
Stock Repurchase Program, Remaining Authorized Repurchase Amount		$ 2,900
Subsequent Event [Member] \| February 2019 Share Repurchase Program [Member]
Stock Repurchases [Line Items]
Total cost of shares repurchased	$ 80
Number of shares repurchased	1.2

Repurchase of Common Stock (Schedule of share repurchases) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	May 04, 2019	May 05, 2018
Equity [Abstract]
Total cost of shares repurchased	$ 106	$ 399
Average price per share	$ 70.77	$ 71.78
Number of shares repurchased	1.5	5.6

Comprehensive Income (Details) - USD ($) $ in Millions	May 04, 2019	Feb. 02, 2019	May 05, 2018	Feb. 03, 2018
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income, net of tax	$ 3,354	$ 3,306	$ 3,420	$ 3,612
Accumulated Foreign Currency Adjustment Including Portion Attributable to Noncontrolling Interest [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income, net of tax	$ (5)		$ (4)

Segments (Narrative) (Details)	3 Months Ended
Segments (Narrative) (Details)	May 04, 2019 segment
Segment [Abstract]
Number of Reportable Segments	2

Segments (Revenue by Reportable Segment and Product Category) (Details) - USD ($)
$ in Millions

3 Months Ended

May 04, 2019

May 05, 2018

Segment Reporting, Revenue Reconciling Item [Line Items]

Revenues

$ 9,142

$ 9,109

Domestic Segment [Member]

Segment Reporting, Revenue Reconciling Item [Line Items]

Revenues

^[1]

8,481

8,412

Domestic Segment [Member] | Computing and Mobile Phones [Member]

Segment Reporting, Revenue Reconciling Item [Line Items]

Revenues

^[1]

3,851

3,899

Domestic Segment [Member] | Consumer Electronics [Member]

Segment Reporting, Revenue Reconciling Item [Line Items]

Revenues

^[1]

2,662

2,655

Domestic Segment [Member] | Appliances [Member]

Segment Reporting, Revenue Reconciling Item [Line Items]

Revenues

^[1]

961

883

Domestic Segment [Member] | Entertainment [Member]

Segment Reporting, Revenue Reconciling Item [Line Items]

Revenues

^[1]

473

548

Domestic Segment [Member] | Services [Member]

Segment Reporting, Revenue Reconciling Item [Line Items]

Revenues

^[1]

497

393

Domestic Segment [Member] | Other [Member]

Segment Reporting, Revenue Reconciling Item [Line Items]

Revenues

^[1]

37

34

International Segment [Member]

Segment Reporting, Revenue Reconciling Item [Line Items]

Revenues

^[1]

661

697

International Segment [Member] | Computing and Mobile Phones [Member]

Segment Reporting, Revenue Reconciling Item [Line Items]

Revenues

^[1]

305

331

International Segment [Member] | Consumer Electronics [Member]

Segment Reporting, Revenue Reconciling Item [Line Items]

Revenues

^[1]

203

206

International Segment [Member] | Appliances [Member]

Segment Reporting, Revenue Reconciling Item [Line Items]

Revenues

^[1]

59

61

International Segment [Member] | Entertainment [Member]

Segment Reporting, Revenue Reconciling Item [Line Items]

Revenues

^[1]

36

43

International Segment [Member] | Services [Member]

Segment Reporting, Revenue Reconciling Item [Line Items]

Revenues

^[1]

43

39

International Segment [Member] | Other [Member]

Segment Reporting, Revenue Reconciling Item [Line Items]

Revenues

^[1]

$ 15

$ 17

[1]	Refer to our Annual Report on Form 10-K for the fiscal year ended February 2, 2019, for additional information regarding the key components of each revenue category.

Segments (Operating Income by Reportable Segment and Reconciliation to Earnings Before Income Tax Expense) (Details) - USD ($) $ in Millions	3 Months Ended
	May 04, 2019	May 05, 2018
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income	$ 334	$ 265
Investment income and other	14	11
Interest expense	(18)	(19)
Earnings before income tax expense	330	257
Domestic Segment [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income	332	267
International Segment [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income	$ 2	$ (2)

Segments (Assets by Reportable Segment) (Details) - USD ($) $ in Millions	May 04, 2019	Feb. 02, 2019	May 05, 2018
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	$ 14,550	$ 12,901	$ 12,082
Domestic Segment [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	13,332
International Segment [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	$ 1,218

Subsequent Event (Details) $ in Millions	May 09, 2019 USD ($)
Subsequent Event [Member]
Subsequent Event [Line Items]
Definitive agreement	$ 125