BEST BUY CO INC, 10-Q filed on 8/31/2021
Quarterly Report
v3.21.2
Document Information Statement - shares
 6 Months Ended
Jul. 31, 2021
Aug. 27, 2021
Document Information [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jul. 31, 2021  
Document Fiscal Year Focus 2021  
Current Fiscal Year End Date --01-29  
Document Transition Report false  
Entity File Number 1-9595  
Entity Registrant Name BEST BUY CO., INC.  
Entity Incorporation, State or Country Code MN  
Entity Address, Address Line One 7601 Penn Avenue South  
Entity Address, City or Town Richfield  
Entity Address, State or Province MN  
Entity Tax Identification Number 41-0907483  
Entity Address, Postal Zip Code 55423  
City Area Code 612  
Local Phone Number 291-1000  
Title of 12(b) Security Common Stock, $0.10 par value per share  
Trading Symbol BBY  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   245,964,220
Document Fiscal Period Focus Q2  
Entity Central Index Key 0000764478  
Amendment Flag false  
v3.21.2
Condensed Consolidated Balance Sheets - USD ($)
$ in Millions
Jul. 31, 2021
Jan. 30, 2021
Aug. 01, 2020
Current assets      
Cash and cash equivalents $ 4,340 $ 5,494 $ 5,305
Receivables, net 883 1,061 906
Merchandise inventories 6,417 5,612 4,136
Other current assets 400 373 336
Total current assets 12,040 12,540 10,683
Property and equipment, net 2,226 2,260 2,277
Operating lease assets 2,670 2,612 2,770
Goodwill 986 986 986
Other assets 657 669 696
Total assets 18,579 19,067 17,412
Current liabilities      
Accounts payable 6,946 6,979 6,613
Accrued compensation and related expenses 605 725 253
Accrued liabilities 892 972 893
Short-term debt 110 110  
Current portion of operating lease liabilities 643 693 674
Current portion of long-term debt 14 14 681
Total current liabilities 10,357 10,521 10,080
Long-term operating lease liabilities 2,090 2,012 2,206
Long-term debt 1,243 1,253 632
Long-term liabilities 554 694 716
Contingencies (Note 11)
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 - 247.3 million, 256.9 million and 257.6 million shares, respectively 25 26 26
Additional paid-in capital     83
Retained earnings 3,975 4,233 3,413
Accumulated other comprehensive income 335 328 256
Total equity 4,335 4,587 3,778
Total liabilities and equity 18,579 19,067 17,412
Gift Card [Member]      
Current liabilities      
Short-term contract liabilities 293 317 267
Deferred Revenue [Member]      
Current liabilities      
Short-term contract liabilities $ 854 $ 711 $ 699
v3.21.2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
Jul. 31, 2021
Jan. 30, 2021
Aug. 01, 2020
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 1,000,000,000.0 1,000,000,000.0 1,000,000,000.0
Common stock, issued shares 247,300,000 256,900,000  
Common stock, outstanding shares 247,300,000 256,900,000 258,800,000
v3.21.2
Condensed Consolidated Statements of Earnings - USD ($)
shares in Millions, $ in Millions
 3 Months Ended 6 Months Ended
Jul. 31, 2021
Aug. 01, 2020
Jul. 31, 2021
Aug. 01, 2020
Condensed Consolidated Statements of Earnings [Abstract]        
Revenue $ 11,849 $ 9,910 $ 23,486 $ 18,472
Cost of sales 9,039 7,640 17,961 14,237
Gross profit 2,810 2,270 5,525 4,235
Selling, general and administrative expenses 2,009 1,702 3,997 3,437
Restructuring charges 4   (38) 1
Operating income 797 568 1,566 797
Other income (expense)        
Investment income and other 3 8 6 14
Interest expense (6) (15) (12) (32)
Earnings before income tax expense and equity in income of affiliates 794 561 1,560 779
Income tax expense 64 129 236 188
Equity in income of affiliates 4   5  
Net earnings $ 734 $ 432 $ 1,329 $ 591
Basic earnings per share $ 2.93 $ 1.67 $ 5.28 $ 2.28
Diluted earnings per share $ 2.90 $ 1.65 $ 5.22 $ 2.26
Weighted-average common shares outstanding        
Basic 250.2 259.5 251.7 259.0
Diluted 252.8 262.1 254.7 261.4
v3.21.2
Condensed Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jul. 31, 2021
Aug. 01, 2020
Jul. 31, 2021
Aug. 01, 2020
Condensed Consolidated Statements of Comprehensive Income [Abstract]        
Net earnings $ 734 $ 432 $ 1,329 $ 591
Foreign currency translation adjustments, net of tax (3) 17 7 (35)
Cash flow hedges   (4)   (4)
Comprehensive income $ 731 $ 445 $ 1,336 $ 552
v3.21.2
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 6 Months Ended
Jul. 31, 2021
Aug. 01, 2020
Operating activities    
Net earnings $ 1,329 $ 591
Adjustments to reconcile net earnings to total cash provided by operating activities:    
Depreciation and amortization 430 414
Restructuring charges (38) 1
Stock-based compensation 71 65
Deferred income taxes 2 13
Other, net   9
Changes in operating assets and liabilities:    
Receivables 175 232
Merchandise inventories (794) 1,014
Other assets (19) (17)
Accounts payable (58) 1,343
Income taxes (162) 108
Other liabilities (72) 15
Total cash provided by operating activities 864 3,788
Investing activities    
Additions to property and equipment (323) (340)
Purchases of investments (93) (46)
Sales of investments 60  
Other, net (2) 3
Total cash used in investing activities (358) (383)
Financing activities    
Repurchase of common stock (1,323) (62)
Issuance of common stock 22 22
Dividends paid (350) (284)
Borrowings of debt   1,250
Repayments of debt (10) (1,257)
Other, net (1) (1)
Total cash used in financing activities (1,662) (332)
Effect of exchange rate changes on cash and cash equivalents 5 (6)
Increase (decrease) in cash, cash equivalents and restricted cash (1,151) 3,067
Cash, cash equivalents and restricted cash at beginning of period 5,625 2,355
Cash, cash equivalents and restricted cash at end of period $ 4,474 $ 5,422
v3.21.2
Condensed Consolidated Statements of Changes in Shareholders' Equity - USD ($)
shares in Millions, $ in Millions
Common Stock [Member]
Additional Paid-In Capital [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Total
Balances at Feb. 01, 2020 $ 26   $ 3,158 $ 295 $ 3,479
Balances (in shares) at Feb. 01, 2020 256.5        
Net earnings     591   591
Other comprehensive income (loss):          
Foreign currency translation adjustments, net of tax       (35) (35)
Cash flow hedges       (4) (4)
Stock-based compensation   $ 65     65
Issuance of common stock   22     22
Issuance of common stock (in shares) 2.9        
Common stock dividends   4 (288)   (284)
Repurchase of common stock   (8) (48)   (56)
Repurchase of common stock (in shares) (0.6)        
Balances at Aug. 01, 2020 $ 26 83 3,413 256 3,778
Balances (in shares) at Aug. 01, 2020 258.8        
Balances at May. 02, 2020 $ 26 15 3,126 243 3,410
Balances (in shares) at May. 02, 2020 257.6        
Net earnings     432   432
Other comprehensive income (loss):          
Foreign currency translation adjustments, net of tax       17 17
Cash flow hedges       (4) (4)
Stock-based compensation   50     50
Issuance of common stock   16     16
Issuance of common stock (in shares) 1.2        
Common stock dividends   2 (145)   (143)
Balances at Aug. 01, 2020 $ 26 83 3,413 256 3,778
Balances (in shares) at Aug. 01, 2020 258.8        
Balances at Jan. 30, 2021 $ 26   4,233 328 4,587
Balances (in shares) at Jan. 30, 2021 256.9        
Net earnings     1,329   1,329
Other comprehensive income (loss):          
Foreign currency translation adjustments, net of tax       7 7
Stock-based compensation   71     71
Issuance of common stock   22     22
Issuance of common stock (in shares) 2.5        
Common stock dividends   8 (358)   (350)
Repurchase of common stock $ (1) (101) (1,229)   (1,331)
Repurchase of common stock (in shares) (12.1)        
Balances at Jul. 31, 2021 $ 25   3,975 335 4,335
Balances (in shares) at Jul. 31, 2021 247.3        
Balances at May. 01, 2021 $ 25 33 3,762 338 4,158
Balances (in shares) at May. 01, 2021 250.4        
Net earnings     734   734
Other comprehensive income (loss):          
Foreign currency translation adjustments, net of tax       (3) (3)
Stock-based compensation   34     34
Issuance of common stock   3     3
Issuance of common stock (in shares) 0.6        
Common stock dividends   5 (180)   (175)
Repurchase of common stock   $ (75) (341)   (416)
Repurchase of common stock (in shares) (3.7)        
Balances at Jul. 31, 2021 $ 25   $ 3,975 $ 335 $ 4,335
Balances (in shares) at Jul. 31, 2021 247.3        
v3.21.2
Condensed Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares
 3 Months Ended 6 Months Ended
Jul. 31, 2021
Aug. 01, 2020
Jul. 31, 2021
Aug. 01, 2020
Condensed Consolidated Statements of Changes in Shareholders' Equity [Abstract]        
Common Stock, Dividends, Per Share, Declared $ 0.70 $ 0.55 $ 1.40 $ 1.10
v3.21.2
Basis of Presentation
 6 Months Ended
Jul. 31, 2021
Basis of Presentation [Abstract]  
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.

During the third quarter of fiscal 2021, we made the decision to exit our operations in Mexico. All stores in Mexico were closed as of the end of the first quarter of fiscal 2022, and our International segment will be comprised of operations in Canada going forward. Refer to Note 2, Restructuring, for additional information.

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.

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 January 30, 2021. The first six months of fiscal 2022 and fiscal 2021 included 26 weeks.

In preparing the accompanying condensed consolidated financial statements, we evaluated the period from July 31, 2021, through the date the financial statements were issued for material subsequent events requiring recognition or disclosure. No such events were identified for the reported periods.

Total Cash, Cash Equivalents and Restricted Cash

Cash, cash equivalents and restricted cash reported on our Condensed Consolidated Balance Sheets are reconciled to the total shown on our Condensed Consolidated Statements of Cash Flows as follows ($ in millions):

July 31, 2021

January 30, 2021

August 1, 2020

Cash and cash equivalents

$

4,340 

$

5,494 

$

5,305 

Restricted cash included in Other current assets

134 

131 

117 

Total cash, cash equivalents and restricted cash

$

4,474 

$

5,625 

$

5,422 

Amounts included in restricted cash are primarily restricted to use for workers’ compensation and general liability insurance claims.
v3.21.2
Restructuring
 6 Months Ended
Jul. 31, 2021
Restructuring [Abstract]  
Restructuring 2. Restructuring

Restructuring charges were as follows ($ in millions):

Three Months Ended

Six Months Ended

July 31, 2021

August 1, 2020

July 31, 2021

August 1, 2020

Mexico Exit and Strategic Realignment(1)

$

4 

$

-

$

(44)

$

-

Fiscal 2020 U.S. Retail Operating Model Changes

-

-

-

1 

Total

$

4 

$

-

$

(44)

$

1 

(1)Includes ($6) million related to inventory markdowns recorded in Cost of sales on our Condensed Consolidated Statements of Earnings for the six months ended July 31, 2021.

Mexico Exit and Strategic Realignment

In March 2020 the World Health Organization declared the outbreak of novel coronavirus disease (“COVID-19”) as a pandemic. The COVID-19 pandemic has had significant impacts on, for example, the economic conditions of the markets in which we operate, customer shopping behaviors, the role of technology in peoples’ lives and the way we meet their needs. In light of these changes, we are adapting our Building the New Blue Strategy to ensure that our focus and resources are closely aligned with the opportunities we see in front of us. As a result, in the third quarter of fiscal 2021, we made the decision to exit our operations in Mexico and began taking other actions to more broadly align our organizational structure in support of our strategy.

Charges incurred in our International segment primarily related to our decision to exit our operations in Mexico. All remaining stores in Mexico were closed in the first quarter of fiscal 2022 and we do not expect to incur material future restructuring charges related to the exit.

Charges incurred in our Domestic segment primarily related to actions taken to align our organizational structure in support of our strategy. During the six months ended July 31, 2021, we recorded a $44 million credit primarily due to a reduction in expected termination benefits resulting from adjustments to previously planned organizational changes and higher-than-expected employee retention.

As we continue to evolve our Building the New Blue Strategy, it is possible that we will incur material future restructuring costs, but we are unable to forecast the timing and magnitude of such costs.

All charges incurred related to the exit from Mexico and strategic realignment described above were from continuing operations and were presented as follows ($ in millions):

Statement of

Three Months Ended July 31, 2021

Six Months Ended July 31, 2021

Earnings Location

Domestic

International

Total

Domestic

International

Total

Inventory markdowns

Cost of sales

$

-

$

-

$

-

$

-

$

(6)

$

(6)

Asset impairments

Restructuring charges

-

4 

4 

-

7 

7 

Termination benefits

Restructuring charges

-

-

-

(44)

(1)

(45)

$

-

$

4 

$

4 

$

(44)

$

-

$

(44)

Statement of

Cumulative Amount as of July 31, 2021

Earnings Location

Domestic

International

Total

Inventory markdowns

Cost of sales

$

-

$

17 

$

17 

Asset impairments(1)

Restructuring charges

10 

64 

74 

Termination benefits

Restructuring charges

79 

19 

98 

Currency translation adjustment

Restructuring charges

-

39 

39 

Other(2)

Restructuring charges

-

5 

5 

$

89 

$

144 

$

233 

(1)Remaining net carrying value approximates fair value and was immaterial as of July 31, 2021.

(2)Other charges are primarily comprised of contract termination costs.

Restructuring accrual activity related to the exit from Mexico and strategic realignment described above was as follows ($ in millions):

Termination Benefits

Domestic

International

Total

Balances at January 30, 2021

$

104 

$

20 

$

124 

Cash payments

(48)

(15)

(63)

Adjustments(1)

(44)

(1)

(45)

Changes in foreign currency exchange rates

-

(1)

(1)

Balances at July 31, 2021

$

12 

$

3 

$

15 

(1)Represents adjustments to previously planned organizational changes in our Domestic segment and higher-than-expected employee retention in both our Domestic and International segments.

Fiscal 2020 U.S. Retail Operating Model Changes

In the second quarter of fiscal 2020, we made changes primarily related to our U.S. retail operating model to increase organization effectiveness and create a more seamless customer experience across all channels. All charges incurred were related to termination benefits within our Domestic segment and were presented within Restructuring charges from continuing operations on our Condensed Consolidated Statements of Earnings. As of July 31, 2021, the cumulative amount of charges incurred was $41 million and no material liability remains.
v3.21.2
Goodwill and Intangible Assets
 6 Months Ended
Jul. 31, 2021
Goodwill and Intangible Assets [Abstract]  
Goodwill and Intangible Assets 3. Goodwill and Intangible Assets

Goodwill

Balances related to goodwill remained unchanged as of July 31, 2021, January 30, 2021, and August 1, 2020, as follows ($ in millions):

Gross Carrying Amount

Cumulative Impairment

Domestic

$

1,053 

$

(67)

International

608 

(608)

Total

$

1,661 

$

(675)


‎

No impairment charges were recorded during the fiscal periods presented.

Definite-Lived Intangible Assets

We have definite-lived intangible assets recorded within Other assets on our Condensed Consolidated Balance Sheets as follows ($ in millions):

July 31, 2021

January 30, 2021

August 1, 2020

Weighted-Average

Gross Carrying
‎Amount

Accumulated
‎Amortization

Gross Carrying
‎Amount

Accumulated
‎Amortization

Gross Carrying
‎Amount

Accumulated
‎Amortization

Useful Life Remaining as of July 31, 2021

(in years)

Customer relationships

$

339 

$

152 

$

339 

$

124 

$

339 

$

97 

6.5

Tradenames

81 

31 

81 

24 

81 

17 

4.5

Developed technology

56 

32 

56 

27 

56 

21 

2.1

Total

$

476 

$

215 

$

476 

$

175 

$

476 

$

135 

5.7

Amortization expense was as follows ($ in millions):

Statement of

Three Months Ended

Six Months Ended

Earnings Location

July 31, 2021

August 1, 2020

July 31, 2021

August 1, 2020

Amortization expense

SG&A

$

20 

$

20 

$

40 

$

40 

Amortization expense expected to be recognized in future periods is as follows ($ in millions):

Amortization Expense

Remainder of fiscal 2022

$

40 

Fiscal 2023

79 

Fiscal 2024

54 

Fiscal 2025

16 

Fiscal 2026

16 

Fiscal 2027

13 

Thereafter

43 
v3.21.2
Fair Value Measurements
 6 Months Ended
Jul. 31, 2021
Fair Value Measurements [Abstract]  
Fair Value Measurements 4. Fair Value Measurements

Fair value measurements are reported in one of three levels based on the lowest level of significant input used: Level 1 (unadjusted quoted prices in active markets); Level 2 (observable market inputs, other than quoted prices included in Level 1); and Level 3 (unobservable inputs that cannot be corroborated by observable market data).

Recurring Fair Value Measurements

Financial assets and liabilities accounted for at fair value were as follows ($ in millions):

Fair Value at

Balance Sheet Location(1)

Fair Value Hierarchy

July 31, 2021

January 30, 2021

August 1, 2020

Assets

Money market funds(2)

Cash and cash equivalents

Level 1

$

1,113 

$

1,575 

$

1,729 

Time deposits(3)

Cash and cash equivalents

Level 2

625 

865 

390 

Time deposits(3)

Other current assets

Level 2

65 

65 

101 

Interest rate swap derivative instruments(4)

Other current assets

Level 2

-

-

18 

Interest rate swap derivative instruments(4)

Other assets

Level 2

79 

91 

115 

Marketable securities that fund deferred compensation(5)

Other assets

Level 1

54 

53 

49 

(1)Balance sheet location is determined by length to maturity.

(2)Valued at quoted market prices in active markets.

(3)Valued at face value plus accrued interest, which approximates fair value.

(4)Valued using readily observable market inputs. These instruments are custom, over-the-counter contracts with various bank counterparties that are not traded on an active market. See Note 5, Derivative Instruments, for additional information.

(5)Valued using select mutual fund performance that trade with sufficient frequency and volume to obtain pricing information on an ongoing basis.

Fair Value of Financial Instruments

The fair values of cash, receivables, accounts payable and other payables approximated their 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 their fair values.

Long-term debt is presented at carrying value on our Condensed Consolidated Balance Sheets. If our long-term debt were recorded at fair value, it would be classified as Level 2 in the fair value hierarchy. Long-term debt balances were as follows ($ in millions):

July 31, 2021

January 30, 2021

August 1, 2020

Fair Value

Carrying Value

Fair Value

Carrying Value

Fair Value

Carrying Value

Long-term debt(1)

$

1,306

$

1,229

$

1,331 

$

1,241 

$

1,386

$

1,283

(1)Excludes debt discounts, issuance costs and finance lease obligations.
v3.21.2
Derivative Instruments
 6 Months Ended
Jul. 31, 2021
Derivative Instruments [Abstract]  
Derivative Instruments 5. Derivative Instruments

We manage our economic and transaction exposure to certain risks by using 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. We also use interest rate swaps to mitigate the effect of interest rate fluctuations on our $650 million principal amount of notes due March 15, 2021 (“2021 Notes”), prior to their retirement in December 2020, and on our $500 million principal amount of notes due October 1, 2028 (“2028 Notes”). In addition, we use foreign currency forward contracts not designated as hedging instruments to manage the impact of fluctuations in foreign currency exchange rates relative to recognized receivable and payable balances denominated in non-functional currencies.

During the second quarter of fiscal 2021, we entered into Treasury Rate Lock (“T-Lock”) contracts to hedge the base interest rate variability on a portion of our then-expected refinancing of our maturing 2021 Notes. The T-Lock contracts were cash settled upon issuance of our $650 million principal amount of notes due October 1, 2030 (“2030 Notes”). The fair value of the T-Lock contracts upon settlement was released from Accumulated other comprehensive income on our Condensed Consolidated Balance Sheets and recorded in Interest expense on our Condensed Consolidated Statements of Earnings as interest is accrued over the life of the 2030 Notes.

Our derivative instruments designated as net investment hedges and interest rate swaps are recorded on our Condensed Consolidated Balance Sheets at fair value. See Note 4, Fair Value Measurements, for gross fair values of our outstanding derivative instruments and corresponding fair value classifications.

Notional amounts of our derivative instruments were as follows ($ in millions):

Contract Type

July 31, 2021

January 30, 2021

August 1, 2020

Derivatives designated as net investment hedges

$

109 

$

153 

$

68 

Derivatives designated as interest rate swaps

500 

500 

1,150 

Derivatives designated as cash flow hedges

-

-

325 

No hedge designation (foreign exchange contracts)

46 

51 

37 

Total

$

655 

$

704 

$

1,580 

Effects of our derivatives on our Condensed Consolidated Statements of Earnings were as follows ($ in millions):

Gain (Loss) Recognized

Statement of

Three Months Ended

Six Months Ended

Earnings Location

July 31, 2021

August 1, 2020

July 31, 2021

August 1, 2020

Interest rate swap contracts

Interest expense

$

14 

$

15 

$

(12)

$

44 

Adjustments to carrying value of long-term debt

Interest expense

(14)

(15)

12 

(44)

Total

$

-

$

-

$

-

$

-
v3.21.2
Debt
 6 Months Ended
Jul. 31, 2021
Debt [Abstract]  
Debt 6. Debt

Short-Term Debt

U.S. Revolving Credit Facility

On May 18, 2021, we entered into a $1.25 billion five year senior unsecured revolving credit facility agreement (the “Five-Year Facility Agreement”) with a syndicate of banks. The Five-Year Facility Agreement replaced the previous $1.25 billion senior unsecured revolving credit facility (the “Previous Facility”) with a syndicate of banks, which was originally scheduled to expire in April 2023, but was terminated on May 18, 2021. The Five-Year Facility Agreement permits borrowings of up to $1.25 billion and expires in May 2026.

The interest rate under the Five-Year Facility Agreement is variable and is determined at our option as: (i) the sum of (a) the greatest of (1) JPMorgan Chase Bank, N.A.’s prime rate, (2) the greater of the federal funds rate and the overnight bank funding rate plus, in each case, 0.5%, and (3) the one-month London Interbank Offered Rate (“LIBOR”), subject to certain adjustments plus 1%, and (b) a variable margin rate (the “ABR Margin”); or (ii) the LIBOR plus a variable margin rate (the “LIBOR Margin”). In addition, a facility fee is assessed on the commitment amount. The ABR Margin, LIBOR Margin and the facility fee are based upon our current senior unsecured debt rating. Under the Five-Year Facility Agreement, the ABR Margin ranges from 0.00% to

0.225%, the LIBOR Margin ranges from 0.805% to 1.225%, and the facility fee ranges from 0.07% to 0.15%. Additionally, the Five-Year Facility Agreement includes fallback language related to the transition from LIBOR to alternative rates. The Five-Year Facility Agreement is guaranteed by certain of our subsidiaries and contains customary affirmative and negative covenants. Among other things, these covenants restrict our and certain of our subsidiaries’ abilities to incur liens on certain assets; make material changes in corporate structure or the nature of our business; dispose of material assets; engage in certain mergers, consolidations and other fundamental changes; or engage in certain transactions with affiliates.

The Five-Year Facility Agreement also contains covenants that require us to maintain a maximum cash flow leverage ratio. The Five-Year Facility Agreement contains default provisions including, but not limited to, failure to pay interest or principal when due and failure to comply with covenants.

In the first quarter of fiscal 2021, in light of the uncertainty surrounding the impact of COVID-19 and to maximize liquidity, we executed a short-term draw on the full amount of our Previous Facility on March 19, 2020, which remained outstanding until July 27, 2020, when the Previous Facility was repaid in full. There were no borrowings outstanding under the Five-Year Facility Agreement as of July 31, 2021, or the Previous Facility as of January 30, 2021, and August 1, 2020.

Bank Advance

In conjunction with a solar energy investment, we were advanced $110 million due October 31, 2021. The advance is recorded within Short-term debt on our Condensed Consolidated Balance Sheets and bears interest at 0.14%.

Long-Term Debt

Long-term debt consisted of the following ($ in millions):

July 31, 2021

January 30, 2021

August 1, 2020

2021 Notes

$

-

$

-

$

650 

2028 Notes

500 

500 

500 

2030 Notes

650 

650 

-

Interest rate swap valuation adjustments

79 

91 

133 

Subtotal

1,229 

1,241 

1,283 

Debt discounts and issuance costs

(12)

(12)

(5)

Finance lease obligations

40 

38 

35 

Total long-term debt

1,257 

1,267 

1,313 

Less current portion

14 

14 

681 

Total long-term debt, less current portion

$

1,243 

$

1,253 

$

632 

See Note 4, Fair Value Measurements, for the fair value of long-term debt.
v3.21.2
Revenue
 6 Months Ended
Jul. 31, 2021
Revenue [Abstract]  
Revenue 7. Revenue

We generate substantially all of our revenue from contracts with customers from the sale of products and services. Contract balances primarily consist of receivables and liabilities related to product merchandise not yet delivered to customers, unredeemed gift cards, services not yet completed and options that provide a material right to customers, such as our customer loyalty programs. Contract balances were as follows ($ in millions):

July 31, 2021

January 30, 2021

August 1, 2020

Receivables, net(1)

$

528 

$

618 

$

567 

Short-term contract liabilities included in:

Unredeemed gift card liabilities

293 

317 

267 

Deferred revenue

854 

711 

699 

Accrued liabilities

79 

71 

60 

(1)Receivables are recorded net of allowances for doubtful accounts of $24 million, $32 million and $28 million as of July 31, 2021, January 30, 2021, and August 1, 2020, respectively.

During the first six months of fiscal 2022 and fiscal 2021, $866 million and $662 million of revenue was recognized, respectively, that was included in the contract liabilities at the beginning of the respective periods.

See Note 12, Segments, for information on our revenue by reportable segment and product category.
v3.21.2
Earnings per Share
 6 Months Ended
Jul. 31, 2021
Earnings per Share [Abstract]  
Earnings per Share 8. 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.

Reconciliations of the numerators and denominators of basic and diluted earnings per share were as follows ($ and shares in millions, except per share amounts):

Three Months Ended

Six Months Ended

July 31, 2021

August 1, 2020

July 31, 2021

August 1, 2020

Numerator

Net earnings

$

734 

$

432 

$

1,329 

$

591 

Denominator

Weighted-average common shares outstanding

250.2 

259.5 

251.7 

259.0 

Dilutive effect of stock compensation plan awards

2.6 

2.6 

3.0 

2.4 

Weighted-average common shares outstanding, assuming dilution

252.8 

262.1 

254.7 

261.4 

Potential shares which were anti-dilutive and excluded from weighted-average share computations

-

0.1 

-

0.5 

Basic earnings per share

$

2.93 

$

1.67 

$

5.28 

$

2.28 

Diluted earnings per share

$

2.90 

$

1.65 

$

5.22 

$

2.26 
v3.21.2
Repurchase of Common Stock
 6 Months Ended
Jul. 31, 2021
Shareholders' Equity [Abstract]  
Shareholders' Equity 9. Repurchase of Common Stock

On February 16, 2021, our Board of Directors approved a new $5.0 billion share repurchase program. There is no expiration date governing the period over which we can repurchase shares under this authorization. We temporarily suspended all share repurchases from March to November of fiscal 2021 to conserve liquidity in light of COVID-19-related uncertainties. On August 24, 2021, we announced our plan to repurchase more than $2.5 billion of shares in fiscal 2022.

Information regarding the shares we repurchased was as follows ($ and shares in millions, except per share amounts):

Three Months Ended

Six Months Ended

July 31, 2021

August 1, 2020

July 31, 2021

August 1, 2020

Total cost of shares repurchased

$

416 

$

-

$

1,331

$

56

Average price per share

$

112.75 

$

-

$

109.92

$

86.30

Number of shares repurchased

3.7 

-

12.1

0.6

As of July 31, 2021, $3.8 billion of the $5.0 billion share repurchase authorization was available. Between the end of the second quarter of fiscal 2022 on July 31, 2021, and August 27, 2021, we repurchased an incremental 1.4 million shares of our common stock at a cost of $160 million.
v3.21.2
Income Taxes
 6 Months Ended
Jul. 31, 2021
Income Taxes [Abstract]  
Income Taxes 10. Income Taxes

Unrecognized Tax Benefits

Our income tax returns are routinely examined by domestic and foreign tax authorities. During the second quarter of fiscal 2022, we reduced our unrecognized tax benefits by $101 million relating to multi-jurisdiction, multi-year non-cash benefits from the resolution of certain discrete tax matters, all of which resulted in a tax benefit in the current quarter.
v3.21.2
Contingencies
 6 Months Ended
Jul. 31, 2021
Contingencies [Abstract]  
Contingencies 11. 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.
v3.21.2
Segments
 6 Months Ended
Jul. 31, 2021
Segments [Abstract]  
Segments 12. Segments

Segment and product category revenue information was as follows ($ in millions):

Three Months Ended

Six Months Ended

July 31, 2021

August 1, 2020

July 31, 2021

August 1, 2020

Revenue by reportable segment

Domestic

$

11,011 

$

9,128 

$

21,852 

$

17,043 

International

838 

782 

1,634 

1,429 

Total revenue

$

11,849 

$

9,910 

$

23,486 

$

18,472 

Revenue by product category

Domestic

Computing and Mobile Phones

$

4,765 

$

4,306 

$

9,558 

$

8,111 

Consumer Electronics

3,380 

2,634 

6,618 

4,853 

Appliances

1,688 

1,290 

3,237 

2,225 

Entertainment

560 

411 

1,228 

921 

Services

570 

462 

1,126 

883 

Other

48 

25 

85 

50 

Total Domestic revenue

$

11,011 

$

9,128 

$

21,852 

$

17,043 

International

Computing and Mobile Phones

$

373 

$

382 

$

767 

$

691 

Consumer Electronics

250 

212 

467 

388 

Appliances

103 

91 

173 

150 

Entertainment

57 

49 

122 

106 

Services

40 

35 

75 

67 

Other

15 

13 

30 

27 

Total International revenue

$

838 

$

782 

$

1,634 

$

1,429 

Operating income by reportable segment and the reconciliation to consolidated earnings before income tax expense and equity in income of affiliates was as follows ($ in millions):

Three Months Ended

Six Months Ended

July 31, 2021

August 1, 2020

July 31, 2021

August 1, 2020

Domestic

$

757 

$

524 

$

1,491 

$

765 

International

40 

44 

75 

32 

Total operating income

797 

568 

1,566 

797 

Other income (expense):

Investment income and other

3 

8 

6 

14 

Interest expense

(6)

(15)

(12)

(32)

Earnings before income tax expense and equity in income of affiliates

$

794 

$

561 

$

1,560 

$

779 

Assets by reportable segment were as follows ($ in millions):

July 31, 2021

January 30, 2021

August 1, 2020

Domestic

$

17,296 

$

17,625 

$

15,964 

International

1,283 

1,442 

1,448 

Total assets

$

18,579 

$

19,067 

$

17,412 
v3.21.2
Basis of Presentation (Policies)
 6 Months Ended
Jul. 31, 2021
Basis of Presentation [Abstract]  
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.

During the third quarter of fiscal 2021, we made the decision to exit our operations in Mexico. All stores in Mexico were closed as of the end of the first quarter of fiscal 2022, and our International segment will be comprised of operations in Canada going forward. Refer to Note 2, Restructuring, for additional information.

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.

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 January 30, 2021. The first six months of fiscal 2022 and fiscal 2021 included 26 weeks.

In preparing the accompanying condensed consolidated financial statements, we evaluated the period from July 31, 2021, through the date the financial statements were issued for material subsequent events requiring recognition or disclosure. No such events were identified for the reported periods.
Total Cash, Cash Equivalents and Restricted Cash Total Cash, Cash Equivalents and Restricted Cash

Cash, cash equivalents and restricted cash reported on our Condensed Consolidated Balance Sheets are reconciled to the total shown on our Condensed Consolidated Statements of Cash Flows as follows ($ in millions):

July 31, 2021

January 30, 2021

August 1, 2020

Cash and cash equivalents

$

4,340 

$

5,494 

$

5,305 

Restricted cash included in Other current assets

134 

131 

117 

Total cash, cash equivalents and restricted cash

$

4,474 

$

5,625 

$

5,422 

Amounts included in restricted cash are primarily restricted to use for workers’ compensation and general liability insurance claims.
v3.21.2
Basis of Presentation (Tables)
 6 Months Ended
Jul. 31, 2021
Basis of Presentation [Abstract]  
Total Cash, Cash Equivalents and Restricted Cash

July 31, 2021

January 30, 2021

August 1, 2020

Cash and cash equivalents

$

4,340 

$

5,494 

$

5,305 

Restricted cash included in Other current assets

134 

131 

117 

Total cash, cash equivalents and restricted cash

$

4,474 

$

5,625 

$

5,422 
v3.21.2
Restructuring (Tables)
 6 Months Ended
Jul. 31, 2021
Restructuring Cost and Reserve [Line Items]  
Composition of Restructuring Charges

Three Months Ended

Six Months Ended

July 31, 2021

August 1, 2020

July 31, 2021

August 1, 2020

Mexico Exit and Strategic Realignment(1)

$

4 

$

-

$

(44)

$

-

Fiscal 2020 U.S. Retail Operating Model Changes

-

-

-

1 

Total

$

4 

$

-

$

(44)

$

1 

(1)Includes ($6) million related to inventory markdowns recorded in Cost of sales on our Condensed Consolidated Statements of Earnings for the six months ended July 31, 2021.
Mexico Exit And Strategic Realignment [Member]  
Restructuring Cost and Reserve [Line Items]  
Composition of Restructuring Charges

Statement of

Three Months Ended July 31, 2021

Six Months Ended July 31, 2021

Earnings Location

Domestic

International

Total

Domestic

International

Total

Inventory markdowns

Cost of sales

$

-

$

-

$

-

$

-

$

(6)

$

(6)

Asset impairments

Restructuring charges

-

4 

4 

-

7 

7 

Termination benefits

Restructuring charges

-

-

-

(44)

(1)

(45)

$

-

$

4 

$

4 

$

(44)

$

-

$

(44)

Statement of

Cumulative Amount as of July 31, 2021

Earnings Location

Domestic

International

Total

Inventory markdowns

Cost of sales

$

-

$

17 

$

17 

Asset impairments(1)

Restructuring charges

10 

64 

74 

Termination benefits

Restructuring charges

79 

19 

98 

Currency translation adjustment

Restructuring charges

-

39 

39 

Other(2)

Restructuring charges

-

5 

5 

$

89 

$

144 

$

233 

(1)Remaining net carrying value approximates fair value and was immaterial as of July 31, 2021.

(2)Other charges are primarily comprised of contract termination costs.
Restructuring Accrual Activity

Termination Benefits

Domestic

International

Total

Balances at January 30, 2021

$

104 

$

20 

$

124 

Cash payments

(48)

(15)

(63)

Adjustments(1)

(44)

(1)

(45)

Changes in foreign currency exchange rates

-

(1)

(1)

Balances at July 31, 2021

$

12 

$

3 

$

15 

(1)Represents adjustments to previously planned organizational changes in our Domestic segment and higher-than-expected employee retention in both our Domestic and International segments.
v3.21.2
Goodwill and Intangible Assets (Tables)
 6 Months Ended
Jul. 31, 2021
Goodwill and Intangible Assets [Abstract]  
Gross Carrying Amount of Goodwill and Cumulative Goodwill Impairment

Gross Carrying Amount

Cumulative Impairment

Domestic

$

1,053 

$

(67)

International

608 

(608)

Total

$

1,661 

$

(675)
Definite-Lived Intangible Assets

July 31, 2021

January 30, 2021

August 1, 2020

Weighted-Average

Gross Carrying
‎Amount

Accumulated
‎Amortization

Gross Carrying
‎Amount

Accumulated
‎Amortization

Gross Carrying
‎Amount

Accumulated
‎Amortization

Useful Life Remaining as of July 31, 2021

(in years)

Customer relationships

$

339 

$

152 

$

339 

$

124 

$

339 

$

97 

6.5

Tradenames

81 

31 

81 

24 

81 

17 

4.5

Developed technology

56 

32 

56 

27 

56 

21 

2.1

Total

$

476 

$

215 

$

476 

$

175 

$

476 

$

135 

5.7
Amortization Expense

Statement of

Three Months Ended

Six Months Ended

Earnings Location

July 31, 2021

August 1, 2020

July 31, 2021

August 1, 2020

Amortization expense

SG&A

$

20 

$

20 

$

40 

$

40 
Amortization Expense Expected to be Recognized

Amortization Expense

Remainder of fiscal 2022

$

40 

Fiscal 2023

79 

Fiscal 2024

54 

Fiscal 2025

16 

Fiscal 2026

16 

Fiscal 2027

13 

Thereafter

43 
v3.21.2
Fair Value Measurements (Tables)
 6 Months Ended
Jul. 31, 2021
Fair Value Measurements [Abstract]  
Fair Value, Assets and Liabilities Measured on Recurring Basis

Fair Value at

Balance Sheet Location(1)

Fair Value Hierarchy

July 31, 2021

January 30, 2021

August 1, 2020

Assets

Money market funds(2)

Cash and cash equivalents

Level 1

$

1,113 

$

1,575 

$

1,729 

Time deposits(3)

Cash and cash equivalents

Level 2

625 

865 

390 

Time deposits(3)

Other current assets

Level 2

65 

65 

101 

Interest rate swap derivative instruments(4)

Other current assets

Level 2

-

-

18 

Interest rate swap derivative instruments(4)

Other assets

Level 2

79 

91 

115 

Marketable securities that fund deferred compensation(5)

Other assets

Level 1

54 

53 

49 

(1)Balance sheet location is determined by length to maturity.

(2)Valued at quoted market prices in active markets.

(3)Valued at face value plus accrued interest, which approximates fair value.

(4)Valued using readily observable market inputs. These instruments are custom, over-the-counter contracts with various bank counterparties that are not traded on an active market. See Note 5, Derivative Instruments, for additional information.

(5)Valued using select mutual fund performance that trade with sufficient frequency and volume to obtain pricing information on an ongoing basis.

Fair Value of Financial Instruments

July 31, 2021

January 30, 2021

August 1, 2020

Fair Value

Carrying Value

Fair Value

Carrying Value

Fair Value

Carrying Value

Long-term debt(1)

$

1,306

$

1,229

$

1,331 

$

1,241 

$

1,386

$

1,283

(1)Excludes debt discounts, issuance costs and finance lease obligations.
v3.21.2
Derivative Instruments (Tables)
 6 Months Ended
Jul. 31, 2021
Derivative Instruments [Abstract]  
Notional Amount of Derivative Instruments

Contract Type

July 31, 2021

January 30, 2021

August 1, 2020

Derivatives designated as net investment hedges

$

109 

$

153 

$

68 

Derivatives designated as interest rate swaps

500 

500 

1,150 

Derivatives designated as cash flow hedges

-

-

325 

No hedge designation (foreign exchange contracts)

46 

51 

37 

Total

$

655 

$

704 

$

1,580 
Effects of Interest Rate Derivatives and Adjustments to LTD on Earnings

Gain (Loss) Recognized

Statement of

Three Months Ended

Six Months Ended

Earnings Location

July 31, 2021

August 1, 2020

July 31, 2021

August 1, 2020

Interest rate swap contracts

Interest expense

$

14 

$

15 

$

(12)

$

44 

Adjustments to carrying value of long-term debt

Interest expense

(14)

(15)

12 

(44)

Total

$

-

$

-

$

-

$

-
v3.21.2
Debt (Tables)
 6 Months Ended
Jul. 31, 2021
Debt [Abstract]  
Schedule of Long-term Debt

July 31, 2021

January 30, 2021

August 1, 2020

2021 Notes

$

-

$

-

$

650 

2028 Notes

500 

500 

500 

2030 Notes

650 

650 

-

Interest rate swap valuation adjustments

79 

91 

133 

Subtotal

1,229 

1,241 

1,283 

Debt discounts and issuance costs

(12)

(12)

(5)

Finance lease obligations

40 

38 

35 

Total long-term debt

1,257 

1,267 

1,313 

Less current portion

14 

14 

681 

Total long-term debt, less current portion

$

1,243 

$

1,253 

$

632 
v3.21.2
Revenue (Tables)
 6 Months Ended
Jul. 31, 2021
Revenue [Abstract]  
Contract Balances and Changes in Contract Balances

July 31, 2021

January 30, 2021

August 1, 2020

Receivables, net(1)

$

528 

$

618 

$

567 

Short-term contract liabilities included in:

Unredeemed gift card liabilities

293 

317 

267 

Deferred revenue

854 

711 

699 

Accrued liabilities

79 

71 

60 

(1)Receivables are recorded net of allowances for doubtful accounts of $24 million, $32 million and $28 million as of July 31, 2021, January 30, 2021, and August 1, 2020, respectively.
v3.21.2
Earnings per Share (Tables)
 6 Months Ended
Jul. 31, 2021
Earnings per Share [Abstract]  
Schedule of Calculation of Numerator and Denominator in Earnings Per Share

Three Months Ended

Six Months Ended

July 31, 2021

August 1, 2020

July 31, 2021

August 1, 2020

Numerator

Net earnings

$

734 

$

432 

$

1,329 

$

591 

Denominator

Weighted-average common shares outstanding

250.2 

259.5 

251.7 

259.0 

Dilutive effect of stock compensation plan awards

2.6 

2.6 

3.0 

2.4 

Weighted-average common shares outstanding, assuming dilution

252.8 

262.1 

254.7 

261.4 

Potential shares which were anti-dilutive and excluded from weighted-average share computations

-

0.1 

-

0.5 

Basic earnings per share

$

2.93 

$

1.67 

$

5.28 

$

2.28 

Diluted earnings per share

$

2.90 

$

1.65 

$

5.22 

$

2.26 
v3.21.2
Repurchase of Common Stock (Tables)
 6 Months Ended
Jul. 31, 2021
Shareholders' Equity [Abstract]  
Schedule of Share Repurchases

Three Months Ended

Six Months Ended

July 31, 2021

August 1, 2020

July 31, 2021

August 1, 2020

Total cost of shares repurchased

$

416 

$

-

$

1,331

$

56

Average price per share

$

112.75 

$

-

$

109.92

$

86.30

Number of shares repurchased

3.7 

-

12.1

0.6
v3.21.2
Segments (Tables)
 6 Months Ended
Jul. 31, 2021
Segments [Abstract]  
Revenue by Reportable Segment and Product Category

Three Months Ended

Six Months Ended

July 31, 2021

August 1, 2020

July 31, 2021

August 1, 2020

Revenue by reportable segment

Domestic

$

11,011 

$

9,128 

$

21,852 

$

17,043 

International

838 

782 

1,634 

1,429 

Total revenue

$

11,849 

$

9,910 

$

23,486 

$

18,472 

Revenue by product category

Domestic

Computing and Mobile Phones

$

4,765 

$

4,306 

$

9,558 

$

8,111 

Consumer Electronics

3,380 

2,634 

6,618 

4,853 

Appliances

1,688 

1,290 

3,237 

2,225 

Entertainment

560 

411 

1,228 

921 

Services

570 

462 

1,126 

883 

Other

48 

25 

85 

50 

Total Domestic revenue

$

11,011 

$

9,128 

$

21,852 

$

17,043 

International

Computing and Mobile Phones

$

373 

$

382 

$

767 

$

691 

Consumer Electronics

250 

212 

467 

388 

Appliances

103 

91 

173 

150 

Entertainment

57 

49 

122 

106 

Services

40 

35 

75 

67 

Other

15 

13 

30 

27 

Total International revenue

$

838 

$

782 

$

1,634 

$

1,429 
Operating Income by Reportable Segment and Reconciliation to Earnings Before Income Tax Expense

Three Months Ended

Six Months Ended

July 31, 2021

August 1, 2020

July 31, 2021

August 1, 2020

Domestic

$

757 

$

524 

$

1,491 

$

765 

International

40 

44 

75 

32 

Total operating income

797 

568 

1,566 

797 

Other income (expense):

Investment income and other

3 

8 

6 

14 

Interest expense

(6)

(15)

(12)

(32)

Earnings before income tax expense and equity in income of affiliates

$

794 

$

561 

$

1,560 

$

779 
Assets by Reportable Segment

July 31, 2021

January 30, 2021

August 1, 2020

Domestic

$

17,296 

$

17,625 

$

15,964 

International

1,283 

1,442 

1,448 

Total assets

$

18,579 

$

19,067 

$

17,412 
v3.21.2
Basis of Presentation (Details) - USD ($)
$ in Millions
Jul. 31, 2021
Jan. 30, 2021
Aug. 01, 2020
Feb. 01, 2020
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]        
Cash and cash equivalents $ 4,340 $ 5,494 $ 5,305  
Restricted cash included in Other current assets 134 131 117  
Total cash, cash equivalents and restricted cash $ 4,474 $ 5,625 $ 5,422 $ 2,355
v3.21.2
Restructuring (Narrative) (Details) - USD ($)
 3 Months Ended 6 Months Ended
Jul. 31, 2021
Jul. 31, 2021
Aug. 01, 2020
May 01, 2021
Jan. 30, 2021
Restructuring Cost and Reserve [Line Items]          
Restructuring charges $ 4,000,000 $ (38,000,000) $ 1,000,000    
U.S. Operating Model [Member]          
Restructuring Cost and Reserve [Line Items]          
Restructuring Reserve       $ 0  
Cumulative Amount       41,000,000  
Termination Benefits [Member] | Mexico Exit And Strategic Realignment [Member]          
Restructuring Cost and Reserve [Line Items]          
Restructuring charges   $ 44,000,000      
Restructuring Reserve       $ 15,000,000 $ 124,000,000
v3.21.2
Restructuring (Composition of Restructuring Charges) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jul. 31, 2021
May 01, 2021
Jul. 31, 2021
Aug. 01, 2020
Restructuring Cost and Reserve [Line Items]        
Restructuring charges $ 4   $ (44) $ 1
Domestic [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges     (44)  
International [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges 4      
Inventory Markdowns [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges     (6)  
Inventory Markdowns [Member] | International [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges     (6)  
Asset Impairments [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges 4   7  
Asset Impairments [Member] | International [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges 4   7  
Termination Benefits [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges     (45)  
Termination Benefits [Member] | Domestic [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges     (44)  
Termination Benefits [Member] | International [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges     (1)  
Mexico Exit And Strategic Realignment [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges $ 4 $ 233 $ (44)  
Mexico Exit And Strategic Realignment [Member] | Cost of Sales [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges   (6)    
Mexico Exit And Strategic Realignment [Member] | Domestic [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges   89    
Mexico Exit And Strategic Realignment [Member] | International [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges   144    
Mexico Exit And Strategic Realignment [Member] | Inventory Markdowns [Member] | Cost of Sales [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges   17    
Mexico Exit And Strategic Realignment [Member] | Inventory Markdowns [Member] | International [Member] | Cost of Sales [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges   17    
Mexico Exit And Strategic Realignment [Member] | Asset Impairments [Member] | Restructuring Charges [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges   74    
Mexico Exit And Strategic Realignment [Member] | Asset Impairments [Member] | Domestic [Member] | Restructuring Charges [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges   10    
Mexico Exit And Strategic Realignment [Member] | Asset Impairments [Member] | International [Member] | Restructuring Charges [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges   64    
Mexico Exit And Strategic Realignment [Member] | Termination Benefits [Member] | Restructuring Charges [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges   98    
Mexico Exit And Strategic Realignment [Member] | Termination Benefits [Member] | Domestic [Member] | Restructuring Charges [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges   79    
Mexico Exit And Strategic Realignment [Member] | Termination Benefits [Member] | International [Member] | Restructuring Charges [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges   19    
Mexico Exit And Strategic Realignment [Member] | Currency Translation Adjustment [Member] | Restructuring Charges [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges   39    
Mexico Exit And Strategic Realignment [Member] | Currency Translation Adjustment [Member] | International [Member] | Restructuring Charges [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges   39    
Mexico Exit And Strategic Realignment [Member] | Other [Member] | Restructuring Charges [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges   5    
Mexico Exit And Strategic Realignment [Member] | Other [Member] | International [Member] | Restructuring Charges [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges   $ 5    
U.S. Operating Model [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges       $ 1
v3.21.2
Restructuring (Restructuring Accrual Activity) (Details)
 3 Months Ended
May 01, 2021
USD ($)
U.S. Operating Model [Member]  
Restructuring Reserve [Roll Forward]  
Balances $ 0
Mexico Exit And Strategic Realignment [Member] | Termination Benefits [Member]  
Restructuring Reserve [Roll Forward]  
Balances 124,000,000
Cash payments (63,000,000)
Adjustments (45,000,000)
Changes in foreign currency exchange rates (1,000,000)
Balances 15,000,000
Domestic [Member] | Mexico Exit And Strategic Realignment [Member] | Termination Benefits [Member]  
Restructuring Reserve [Roll Forward]  
Balances 104,000,000
Cash payments (48,000,000)
Adjustments (44,000,000)
Balances 12,000,000
International [Member] | Mexico Exit And Strategic Realignment [Member] | Termination Benefits [Member]  
Restructuring Reserve [Roll Forward]  
Balances 20,000,000
Cash payments (15,000,000)
Adjustments (1,000,000)
Changes in foreign currency exchange rates (1,000,000)
Balances $ 3,000,000
v3.21.2
Goodwill and Intangible Assets (Narrative) (Details) - USD ($)
 6 Months Ended 12 Months Ended
Jul. 31, 2021
Aug. 01, 2020
Jan. 30, 2021
Goodwill and Intangible Assets [Abstract]      
Goodwill and intangible assets impairment charges $ 0 $ 0 $ 0
v3.21.2
Goodwill and Intangible Assets (Gross Carrying Amount of Goodwill and Cumulative Goodwill Impairment) (Details)
$ in Millions
Jul. 31, 2021
USD ($)
Goodwill [Line Items]  
Gross Carrying Amount $ 1,661
Cumulative Impairment (675)
Domestic [Member]  
Goodwill [Line Items]  
Gross Carrying Amount 1,053
Cumulative Impairment (67)
International [Member]  
Goodwill [Line Items]  
Gross Carrying Amount 608
Cumulative Impairment $ (608)
v3.21.2
Goodwill and Intangible Assets (Definite-Lived Intangible Assets) (Details) - USD ($)
$ in Millions
 6 Months Ended
Jul. 31, 2021
Jan. 30, 2021
Aug. 01, 2020
Acquired Finite-Lived Intangible Assets [Line Items]      
Gross Carrying Amount $ 476 $ 476 $ 476
Accumulated Amortization $ 215 175 135
Weighted-Average Useful Life Remaining 5 years 8 months 12 days    
Customer Relationships [Member]      
Acquired Finite-Lived Intangible Assets [Line Items]      
Gross Carrying Amount $ 339 339 339
Accumulated Amortization $ 152 124 97
Weighted-Average Useful Life Remaining 6 years 6 months    
Tradename [Member]      
Acquired Finite-Lived Intangible Assets [Line Items]      
Gross Carrying Amount $ 81 81 81
Accumulated Amortization $ 31 24 17
Weighted-Average Useful Life Remaining 4 years 6 months    
Developed Technology [Member]      
Acquired Finite-Lived Intangible Assets [Line Items]      
Gross Carrying Amount $ 56 56 56
Accumulated Amortization $ 32 $ 27 $ 21
Weighted-Average Useful Life Remaining 2 years 1 month 6 days    
v3.21.2
Goodwill and Intangible Assets (Amortization Expense) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jul. 31, 2021
Aug. 01, 2020
Jul. 31, 2021
Aug. 01, 2020
Goodwill and Intangible Assets [Abstract]        
Amortization expense $ 20 $ 20 $ 40 $ 40
v3.21.2
Goodwill and Intangible Assets (Amortization Expense Expected to be Recognized) (Details)
$ in Millions
Jul. 31, 2021
USD ($)
Goodwill and Intangible Assets [Abstract]  
Remainder of fiscal 2022 $ 40
Fiscal 2023 79
Fiscal 2024 54
Fiscal 2025 16
Fiscal 2026 16
Fiscal 2027 13
Thereafter $ 43
v3.21.2
Fair Value Measurements (Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($)
$ in Millions
Jul. 31, 2021
Jan. 30, 2021
Aug. 01, 2020
Level 1 [Member] | Money market funds [Member]      
Assets      
Cash and cash equivalents $ 1,113 $ 1,575 $ 1,729
Level 1 [Member] | Marketable securities that fund deferred compensation [Member]      
Assets      
Other assets 54 53 49
Level 2 [Member] | Time deposits [Member]      
Assets      
Cash and cash equivalents 625 865 390
Other current assets 65 65 101
Level 2 [Member] | Interest Rate Swap Derivative Instruments [Member]      
Assets      
Other current assets     18
Other assets $ 79 $ 91 $ 115
v3.21.2
Fair Value Measurements (Fair Value of Financial Instruments) (Details) - USD ($)
$ in Millions
Jul. 31, 2021
Jan. 30, 2021
Aug. 01, 2020
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Carrying value $ 1,229 $ 1,241 $ 1,283
Long-term debt [Member]      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Carrying value 1,229 1,241 1,283
Level 2 [Member] | Long-term debt [Member]      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Fair Value $ 1,306 $ 1,331 $ 1,386
v3.21.2
Derivative Instruments (Narrative) (Details)
Jul. 31, 2021
USD ($)
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
v3.21.2
Derivative Instruments (Notional Amount of Derivative Instruments) (Details) - USD ($)
$ in Millions
Jul. 31, 2021
Jan. 30, 2021
Aug. 01, 2020
Designated As Hedging Instrument [Member] | Cash Flow Hedging [Member]      
Derivatives, Fair Value [Line Items]      
Notional Amount     $ 325
Not Designated As Hedging Instrument [Member]      
Derivatives, Fair Value [Line Items]      
Notional Amount $ 655 $ 704 1,580
Derivatives Designated As Net Investment Hedges [Member] | Designated As Hedging Instrument [Member]      
Derivatives, Fair Value [Line Items]      
Notional Amount 109 153 68
Interest Rate Swap Derivative Instruments [Member] | Designated As Hedging Instrument [Member]      
Derivatives, Fair Value [Line Items]      
Notional Amount 500 500 1,150
Foreign Exchange Forward Contracts [Member] | Not Designated As Hedging Instrument [Member]      
Derivatives, Fair Value [Line Items]      
Notional Amount $ 46 $ 51 $ 37
v3.21.2
Derivative Instruments (Effects of Interest Rate Derivatives and Adjustments to LTD on Earnings) (Details) - Designated As Hedging Instrument [Member] - Interest Expense [Member] - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jul. 31, 2021
Aug. 01, 2020
Jul. 31, 2021
Aug. 01, 2020
Derivatives, Fair Value [Line Items]        
Gain (Loss) Recognized
Interest Rate Swap Derivative Instruments [Member]        
Derivatives, Fair Value [Line Items]        
Gain (Loss) Recognized 14 15 (12) 44
Carrying Value Of Long Term Debt [Member]        
Derivatives, Fair Value [Line Items]        
Gain (Loss) Recognized $ (14) $ (15) $ 12 $ (44)
v3.21.2
Debt (Narrative) (Short-Term Debt) (Details) - USD ($)
 6 Months Ended
Jul. 31, 2021
May 01, 2021
Jan. 30, 2021
Five-Year Facility Agreement [Member] | Revolving Credit Facility [Member]      
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
Five-Year Facility Agreement [Member] | Fed Funds Effective Rate Overnight Index Swap Rate [Member] | Revolving Credit Facility [Member]      
Line of Credit Facility [Line Items]      
Variable interest rate 0.50%    
Five-Year Facility Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member]      
Line of Credit Facility [Line Items]      
Variable interest rate 1.00%    
Five-Year Facility Agreement [Member] | Minimum [Member] | Revolving Credit Facility [Member]      
Line of Credit Facility [Line Items]      
Facility fee 0.07%    
Five-Year Facility Agreement [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member]      
Line of Credit Facility [Line Items]      
Variable interest rate 0.805%    
Five-Year Facility Agreement [Member] | Minimum [Member] | Alternative Base Rate [Member] | Revolving Credit Facility [Member]      
Line of Credit Facility [Line Items]      
Variable interest rate 0.00%    
Five-Year Facility Agreement [Member] | Maximum [Member] | Revolving Credit Facility [Member]      
Line of Credit Facility [Line Items]      
Facility fee 0.15%    
Five-Year Facility Agreement [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member]      
Line of Credit Facility [Line Items]      
Variable interest rate 1.225%    
Five-Year Facility Agreement [Member] | Maximum [Member] | Alternative Base Rate [Member] | Revolving Credit Facility [Member]      
Line of Credit Facility [Line Items]      
Variable interest rate 0.225%    
Bank Advance [Member]      
Line of Credit Facility [Line Items]      
Interest rate 0.14%    
Debt Instrument, Face Amount $ 110,000,000    
v3.21.2
Debt (Schedule of Long-Term Debt) (Details) - USD ($)
$ in Millions
Jul. 31, 2021
Jan. 30, 2021
Aug. 01, 2020
Debt Instrument [Line Items]      
Total $ 1,229 $ 1,241 $ 1,283
Debt discounts and issuance costs (12) (12) (5)
Finance lease obligations 40 38 35
Total long-term debt 1,257 1,267 1,313
Less current portion 14 14 681
Total long-term debt, less current portion 1,243 1,253 632
Interest Rate Swap Derivative Instruments [Member]      
Debt Instrument [Line Items]      
Interest rate swap valuation adjustments 79 91 133
Notes due 2021 [Member]      
Debt Instrument [Line Items]      
Long-term debt     650
Notes due 2028 [Member]      
Debt Instrument [Line Items]      
Long-term debt 500 500 $ 500
Notes Due 2030 [Member]      
Debt Instrument [Line Items]      
Long-term debt $ 650 $ 650  
v3.21.2
Revenue (Narrative) (Details) - USD ($)
$ in Millions
 6 Months Ended 12 Months Ended
Jul. 31, 2021
Jan. 30, 2021
Revenue [Abstract]    
Revenue recognized $ 866 $ 662
v3.21.2
Revenue (Contract Balances and Changes in Contract Balances) (Details) - USD ($)
$ in Millions
Jul. 31, 2021
Jan. 30, 2021
Aug. 01, 2020
Revenue from Contract with Customer [Line Items]      
Receivables, net $ 528 $ 618 $ 567
Short-term contract liabilities included in:      
Receivables, allowance for doubtful accounts 24 32 28
Unredeemed Gift Cards [Member]      
Short-term contract liabilities included in:      
Short-term contract liabilities 293 317 267
Deferred Revenue [Member]      
Short-term contract liabilities included in:      
Short-term contract liabilities 854 711 699
Accrued Liability [Member]      
Short-term contract liabilities included in:      
Short-term contract liabilities $ 79 $ 71 $ 60
v3.21.2
Earnings per Share (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended 6 Months Ended
Jul. 31, 2021
Aug. 01, 2020
Jul. 31, 2021
Aug. 01, 2020
Earnings per Share [Abstract]        
Net earnings $ 734 $ 432 $ 1,329 $ 591
Weighted-average common shares outstanding (in shares) 250.2 259.5 251.7 259.0
Dilutive effect of stock compensation plan awards (in shares) 2.6 2.6 3.0 2.4
Weighted-average common shares outstanding, assuming dilution (in shares) 252.8 262.1 254.7 261.4
Potential shares which were anti-dilutive and excluded from weighted-average share computations (in shares)   0.1   0.5
Basic earnings per share $ 2.93 $ 1.67 $ 5.28 $ 2.28
Diluted earnings per share $ 2.90 $ 1.65 $ 5.22 $ 2.26
v3.21.2
Repurchase of Common Stock (Narrative) (Details) - USD ($)
shares in Millions, $ in Millions
 1 Months Ended 3 Months Ended 6 Months Ended
Aug. 24, 2021
Aug. 27, 2021
Jul. 31, 2021
Jul. 31, 2021
Aug. 01, 2020
Stock Repurchases [Line Items]          
Repurchase of common stock     $ 416 $ 1,331 $ 56
February 2021 Share Repurchase Program [Member]          
Stock Repurchases [Line Items]          
Stock Repurchase Program, Authorized Amount     5,000 5,000  
Stock Repurchase Program, Remaining Authorized Repurchase Amount     $ 3,800 $ 3,800  
Scenario, Plan [Member] | February 2021 Share Repurchase Program [Member]          
Stock Repurchases [Line Items]          
Repurchase of common stock $ 2,500        
Subsequent Event [Member]          
Stock Repurchases [Line Items]          
Repurchase of common stock   $ 160      
Repurchase of common stock (in shares)   1.4      
v3.21.2
Repurchase of Common Stock (Schedule of share repurchases) (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended 6 Months Ended
Jul. 31, 2021
Jul. 31, 2021
Aug. 01, 2020
Shareholders' Equity [Abstract]      
Total cost of shares repurchased $ 416 $ 1,331 $ 56
Average price per share $ 112.75 $ 109.92 $ 86.30
Number of shares repurchased 3.7 12.1 0.6
v3.21.2
Income Taxes (Details)
$ in Millions
 3 Months Ended
Jul. 31, 2021
USD ($)
Income Taxes [Abstract]  
Decrease in unrecognized tax benefits $ 101
v3.21.2
Segments (Revenue by Reportable Segment and Product Category) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jul. 31, 2021
Aug. 01, 2020
Jul. 31, 2021
Aug. 01, 2020
Segment Reporting, Revenue Reconciling Item [Line Items]        
Revenues $ 11,849 $ 9,910 $ 23,486 $ 18,472
Domestic Segment [Member]        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Revenues 11,011 9,128 21,852 17,043
Domestic Segment [Member] | Computing and Mobile Phones [Member]        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Revenues 4,765 4,306 9,558 8,111
Domestic Segment [Member] | Consumer Electronics [Member]        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Revenues 3,380 2,634 6,618 4,853
Domestic Segment [Member] | Appliances [Member]        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Revenues 1,688 1,290 3,237 2,225
Domestic Segment [Member] | Entertainment [Member]        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Revenues 560 411 1,228 921
Domestic Segment [Member] | Services [Member]        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Revenues 570 462 1,126 883
Domestic Segment [Member] | Other [Member]        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Revenues 48 25 85 50
International Segment [Member]        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Revenues 838 782 1,634 1,429
International Segment [Member] | Computing and Mobile Phones [Member]        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Revenues 373 382 767 691
International Segment [Member] | Consumer Electronics [Member]        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Revenues 250 212 467 388
International Segment [Member] | Appliances [Member]        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Revenues 103 91 173 150
International Segment [Member] | Entertainment [Member]        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Revenues 57 49 122 106
International Segment [Member] | Services [Member]        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Revenues 40 35 75 67
International Segment [Member] | Other [Member]        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Revenues $ 15 $ 13 $ 30 $ 27
v3.21.2
Segments (Operating Income by Reportable Segment and Reconciliation to Earnings Before Income Tax Expense) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jul. 31, 2021
Aug. 01, 2020
Jul. 31, 2021
Aug. 01, 2020
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]        
Operating income $ 797 $ 568 $ 1,566 $ 797
Investment income and other 3 8 6 14
Interest expense (6) (15) (12) (32)
Earnings before income tax expense and equity in income of affiliates 794 561 1,560 779
Domestic Segment [Member]        
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]        
Operating income 757 524 1,491 765
International Segment [Member]        
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]        
Operating income $ 40 $ 44 $ 75 $ 32
v3.21.2
Segments (Assets by Reportable Segment) (Details) - USD ($)
$ in Millions
Jul. 31, 2021
Jan. 30, 2021
Aug. 01, 2020
Segment Reporting, Asset Reconciling Item [Line Items]      
Total assets $ 18,579 $ 19,067 $ 17,412
Domestic Segment [Member]      
Segment Reporting, Asset Reconciling Item [Line Items]      
Total assets 17,296 17,625 15,964
International Segment [Member]      
Segment Reporting, Asset Reconciling Item [Line Items]      
Total assets $ 1,283 $ 1,442 $ 1,448