BEST BUY CO INC, 10-Q filed on 6/4/2021
Quarterly Report
v3.21.1
Document Information Statement - shares
3 Months Ended
May 01, 2021
Jun. 02, 2021
Document Information [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date May 01, 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, $0.10 par value per share  
Trading Symbol BBY  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   250,472,993
Document Fiscal Period Focus Q1  
Entity Central Index Key 0000764478  
Amendment Flag false  
v3.21.1
Condensed Consolidated Balance Sheets - USD ($)
$ in Millions
May 01, 2021
Jan. 30, 2021
May 02, 2020
Current assets      
Cash and cash equivalents $ 4,278 $ 5,494 $ 3,919
Short-term investments 60    
Receivables, net 850 1,061 749
Merchandise inventories 5,721 5,612 3,993
Other current assets 359 373 335
Total current assets 11,268 12,540 8,996
Property and equipment, net 2,233 2,260 2,291
Operating lease assets 2,563 2,612 2,631
Goodwill 986 986 986
Other assets 655 669 701
Total assets 17,705 19,067 15,605
Current liabilities      
Accounts payable 6,360 6,979 4,428
Accrued compensation and related expenses 493 725 213
Accrued liabilities 978 972 769
Short-term debt 110 110 1,250
Current portion of operating lease liabilities 654 693 683
Current portion of long-term debt 15 14 673
Total current liabilities 9,641 10,521 8,804
Long-term liabilities 694 694 694
Long-term operating lease liabilities 1,983 2,012 2,076
Long-term debt 1,229 1,253 621
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 – 250.4 million, 256.9 million and 257.6 million shares, respectively 25 26 26
Additional paid-in capital 33   15
Retained earnings 3,762 4,233 3,126
Accumulated other comprehensive income 338 328 243
Total equity 4,158 4,587 3,410
Total liabilities and equity 17,705 19,067 15,605
Gift Card [Member]      
Current liabilities      
Short-term contract liabilities 297 317 257
Deferred Revenue [Member]      
Current liabilities      
Short-term contract liabilities $ 734 $ 711 $ 531
v3.21.1
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
May 01, 2021
Jan. 30, 2021
May 02, 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 250,400,000 256,900,000 257,600,000
Common stock, outstanding shares 250,400,000 256,900,000 257,600,000
v3.21.1
Condensed Consolidated Statements of Earnings - USD ($)
shares in Millions, $ in Millions
3 Months Ended
May 01, 2021
May 02, 2020
Condensed Consolidated Statements of Earnings [Abstract]    
Revenue $ 11,637 $ 8,562
Cost of sales 8,922 6,597
Gross profit 2,715 1,965
Selling, general and administrative expenses 1,988 1,735
Restructuring charges (42) 1
Operating income 769 229
Other income (expense):    
Investment income and other 3 6
Interest expense (6) (17)
Earnings before income tax expense and equity in income of affiliates 766 218
Income tax expense 172 59
Equity in income of affiliates 1  
Net earnings $ 595 $ 159
Basic earnings per share $ 2.35 $ 0.61
Diluted earnings per share $ 2.32 $ 0.61
Weighted-average common shares outstanding    
Basic 253.1 258.3
Diluted 256.7 260.4
v3.21.1
Condensed Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
3 Months Ended
May 01, 2021
May 02, 2020
Condensed Consolidated Statements of Comprehensive Income [Abstract]    
Net earnings $ 595 $ 159
Foreign currency translation adjustments, net of tax 10 (52)
Comprehensive income $ 605 $ 107
v3.21.1
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Millions
3 Months Ended
May 01, 2021
May 02, 2020
Operating activities    
Net earnings $ 595 $ 159
Adjustments to reconcile net earnings to total cash provided by operating activities:    
Depreciation and amortization 216 207
Restructuring charges (42) 1
Stock-based compensation 37 15
Other, net 6 20
Changes in operating assets and liabilities:    
Receivables 210 383
Merchandise inventories (90) 1,136
Other assets (6) (12)
Accounts payable (630) (816)
Income taxes 113 31
Other liabilities (304) (297)
Total cash provided by operating activities 105 827
Investing activities    
Additions to property and equipment (161) (178)
Purchases of investments (90) (5)
Other, net (2) 4
Total cash used in investing activities (253) (179)
Financing activities    
Repurchase of common stock (927) (62)
Dividends paid (175) (141)
Borrowings of debt   1,250
Other, net 13 2
Total cash provided by (used in) financing activities (1,089) 1,049
Effect of exchange rate changes on cash and cash equivalents 5 (18)
Increase (decrease) in cash, cash equivalents and restricted cash (1,232) 1,679
Cash, cash equivalents and restricted cash at beginning of period 5,625 2,355
Cash, cash equivalents and restricted cash at end of period $ 4,393 $ 4,034
v3.21.1
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     159   159
Other comprehensive income:          
Foreign currency translation adjustments, net of tax       (52) (52)
Stock-based compensation   $ 15     15
Issuance of common stock   6     6
Issuance of common stock (in shares) 1.7        
Common stock dividends   2 (143)   (141)
Repurchase of common stock   (8) (48)   (56)
Repurchase of common stock (in shares) (0.6)        
Balances at May. 02, 2020 $ 26 15 3,126 243 3,410
Balances (in shares) at May. 02, 2020 257.6        
Balances at Jan. 30, 2021 $ 26   4,233 328 4,587
Balances (in shares) at Jan. 30, 2021 256.9        
Net earnings     595   595
Other comprehensive income:          
Foreign currency translation adjustments, net of tax       10 10
Stock-based compensation   37     37
Issuance of common stock   19     19
Issuance of common stock (in shares) 1.9        
Common stock dividends   3 (178)   (175)
Repurchase of common stock $ (1) (26) (888)   (915)
Repurchase of common stock (in shares) (8.4)        
Balances at May. 01, 2021 $ 25 $ 33 $ 3,762 $ 338 $ 4,158
Balances (in shares) at May. 01, 2021 250.4        
v3.21.1
Basis of Presentation
3 Months Ended
May 01, 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 March 2020 the World Health Organization declared the outbreak of novel coronavirus disease (“COVID-19”) as a pandemic. Except where otherwise directed by state and local authorities, on March 22, 2020, we made the decision for the health and safety of our customers and employees to move our stores to a contactless, curbside-only operating model. We also temporarily suspended in-home delivery, repair and consultation services from March 22, 2020, through April 27, 2020, after implementing new safety guidelines. As of June 22, 2020, almost all of our stores were open for shopping and remained open through the first quarter of fiscal 2022. We continue to offer contactless curbside pick-up and in-store consultations for customers who prefer to shop that way.

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 three months of fiscal 2022 and fiscal 2021 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 1, 2021, through the date the financial statements were issued for material subsequent events requiring recognition or disclosure. Other than the refinancing of our $1.25 billion five year senior unsecured revolving credit facility described in Note 5, Debt, 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 is reconciled to the total shown on our Condensed Consolidated Statements of Cash Flows as follows ($ in millions):

May 1, 2021

January 30, 2021

May 2, 2020

Cash and cash equivalents

$

4,278 

$

5,494 

$

3,919 

Restricted cash included in Other current assets

115 

131 

115 

Total cash, cash equivalents and restricted cash

$

4,393 

$

5,625 

$

4,034 

Amounts included in restricted cash are primarily restricted to use for workers’ compensation and general liability insurance claims.
v3.21.1
Restructuring
3 Months Ended
May 01, 2021
Restructuring [Abstract]  
Restructuring 2. Restructuring

Restructuring charges were as follows ($ in millions):

Three Months Ended

May 1, 2021

May 2, 2020

Mexico Exit and Strategic Realignment(1)

$

(48)

$

-

Fiscal 2020 U.S. Retail Operating Model Changes

-

1 

Total

$

(48)

$

1 

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

Mexico Exit and Strategic Realignment

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. As of May 1, 2021, all stores are closed 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 first quarter of fiscal 2022, 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 May 1, 2021

Earnings Location

Domestic

International

Total

Inventory markdowns

Cost of sales

$

-

$

(6)

$

(6)

Asset impairments

Restructuring charges

-

3 

3 

Termination benefits

Restructuring charges

(44)

(1)

(45)

$

(44)

$

(4)

$

(48)

Statement of

Cumulative Amount as of May 1, 2021

Earnings Location

Domestic

International

Total

Inventory markdowns

Cost of sales

$

-

$

17 

$

17 

Asset impairments(1)

Restructuring charges

10 

60 

70 

Termination benefits

Restructuring charges

79 

19 

98 

Currency translation adjustment

Restructuring charges

-

39 

39 

Other(2)

Restructuring charges

-

5 

5 

$

89 

$

140 

$

229 

(1)Remaining net carrying value approximates fair value and was immaterial as of May 1, 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

(39)

(12)

(51)

Adjustments(1)

(44)

(1)

(45)

Changes in foreign currency exchange rates

-

(1)

(1)

Balances at May 1, 2021

$

21 

$

6 

$

27 

(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 May 1, 2021, the cumulative amount of charges incurred was $41 million and no material liability remains.
v3.21.1
Fair Value Measurements
3 Months Ended
May 01, 2021
Fair Value Measurements [Abstract]  
Fair Value Measurements 3. 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

May 1, 2021

January 30, 2021

May 2, 2020

Assets

Money market funds(2)

Cash and cash equivalents

Level 1

$

1,063 

$

1,575 

$

1,153 

Time deposits(3)

Cash and cash equivalents

Level 2

639 

865 

465 

Time deposits(3)

Short-term investments

Level 2

60 

-

-

Time deposits(3)

Other current assets

Level 2

65 

65 

101 

Interest rate swap derivative instruments(4)

Other current assets

Level 2

-

-

11 

Interest rate swap derivative instruments(4)

Other assets

Level 2

65 

91 

107 

Marketable securities that fund deferred compensation(5)

Other assets

Level 1

53 

53 

45 

(1)Balance sheet location is determined by the length to maturity from the current period-end date.

(2)Valued at quoted market prices in active markets for same (Level 1) or similar (Level 2) instruments.

(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 7, 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):

May 1, 2021

January 30, 2021

May 2, 2020

Fair Value

Carrying Value

Fair Value

Carrying Value

Fair Value

Carrying Value

Long-term debt(1)

$

1,260

$

1,215 

$

1,331 

$

1,241 

$

1,315 

$

1,268 

(1)Excludes debt discounts, issuance costs and finance lease obligations.

 
v3.21.1
Goodwill and Intangible Assets
3 Months Ended
May 01, 2021
Goodwill and Intangible Assets [Abstract]  
Goodwill and Intangible Assets 4. Goodwill and Intangible Assets

Goodwill

Balances related to goodwill remained unchanged as of May 1, 2021, January 30, 2021, and May 2, 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.

Indefinite-Lived Intangible Assets

In the first quarter of fiscal 2021, we made the decision to phase out our Pacific Sales tradename in our U.S. Best Buy stores over the coming years. Consequently, we reclassified the tradename from an indefinite-lived intangible asset to a definite-lived intangible asset and have no indefinite-lived intangible assets remaining.

Definite-Lived Intangible Assets

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

May 1, 2021

January 30, 2021

May 2, 2020

Weighted-Average

Gross Carrying
Amount

Accumulated
Amortization

Gross Carrying
Amount

Accumulated
Amortization

Gross Carrying
Amount

Accumulated
Amortization

Useful Life Remaining as of May 1, 2021

(in years)

Customer relationships

$

339 

$

138 

$

339 

$

124 

$

339 

$

83 

6.5

Tradenames

81 

27 

81 

24 

81 

13 

4.7

Developed technology

56 

30 

56 

27 

56 

18 

2.3

Total

$

476 

$

195 

$

476 

$

175 

$

476 

$

114 

5.8

Amortization expense was as follows ($ in millions):

Statement of

Three Months Ended

Earnings Location

May 1, 2021

May 2, 2020

Amortization expense

SG&A

$

20 

$

19 

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

Amortization Expense

Remainder of fiscal 2022

$

60 

Fiscal 2023

79 

Fiscal 2024

54 

Fiscal 2025

16 

Fiscal 2026

16 

Fiscal 2027

13 

Thereafter

43 

v3.21.1
Debt
3 Months Ended
May 01, 2021
Debt [Abstract]  
Debt

5. Debt

Short-Term Debt

U.S. Revolving Credit Facility

Subsequent to the first quarter of fiscal 2022, 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 Previous Facility as of May 1, 2021, and January 30, 2021.

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):

May 1, 2021

January 30, 2021

May 2, 2020

Notes, 5.50%, due March 15, 2021

$

-

$

-

$

650 

Notes, 4.45%, due October 1, 2028

500 

500 

500 

Notes, 1.95%, due October 1, 2030

650 

650 

-

Interest rate swap valuation adjustments

65 

91 

118 

Subtotal

1,215 

1,241 

1,268 

Debt discounts and issuance costs

(12)

(12)

(8)

Finance lease obligations

41 

38 

34 

Total long-term debt

1,244 

1,267 

1,294 

Less current portion

15 

14 

673 

Total long-term debt, less current portion

$

1,229 

$

1,253 

$

621 

See Note 3, Fair Value Measurements, for the fair value of long-term debt.
v3.21.1
Revenue
3 Months Ended
May 01, 2021
Revenue [Abstract]  
Revenue 6. 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):

May 1, 2021

January 30, 2021

May 2, 2020

Receivables, net(1)

$

545 

$

618 

$

396 

Short-term contract liabilities included in:

Unredeemed gift card liabilities

297 

317 

257 

Deferred revenue

734 

711 

531 

Accrued liabilities

79 

71 

45 

(1)Receivables are recorded net of allowances for doubtful accounts of $25 million, $32 million and $29 million as of May 1, 2021, January 30, 2021, and May 2, 2020, respectively.

During the first three months of fiscal 2022 and fiscal 2021, $684 million and $492 million of revenue was recognized, respectively, that was included in the contract liabilities at the beginning of the respective periods.

See Note 10, Segments, for information on our revenue by reportable segment and product category.
v3.21.1
Derivative Instruments
3 Months Ended
May 01, 2021
Derivative Instruments [Abstract]  
Derivative Instruments 7. 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, prior to their retirement in December 2020, and on our $500 million principal amount of notes due October 1, 2028. 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.

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 3, 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

May 1, 2021

January 30, 2021

May 2, 2020

Derivatives designated as net investment hedges

$

94 

$

153 

$

126 

Derivatives designated as interest rate swaps

500 

500 

1,150 

No hedge designation (foreign exchange contracts)

34 

51 

21 

Total

$

628 

$

704 

$

1,297 

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

Gain (Loss) Recognized

Three Months Ended

Statement of Earnings Location

May 1, 2021

May 2, 2020

Interest rate swap contracts

Interest expense

$

(26)

$

29 

Adjustments to carrying value of long-term debt

Interest expense

26 

(29)

Total

$

-

$

-

v3.21.1
Earnings per Share
3 Months Ended
May 01, 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

May 1, 2021

May 2, 2020

Numerator

Net earnings

$

595 

$

159 

Denominator

Weighted-average common shares outstanding

253.1 

258.3 

Dilutive effect of stock compensation plan awards

3.6 

2.1 

Weighted-average common shares outstanding, assuming dilution

256.7 

260.4 

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

1.1 

0.6 

Basic earnings per share

$

2.35 

$

0.61 

Diluted earnings per share

$

2.32 

$

0.61 

v3.21.1
Repurchase of Common Stock
3 Months Ended
May 01, 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, which replaced the $3.0 billion share repurchase program authorized on February 23, 2019. There is no expiration date governing the period over which we can repurchase shares under this authorization. As of May 1, 2021, $4.2 billion of the $5.0 billion share repurchase authorization was available. On May 27, 2021, we announced an increase in the amount of share repurchases planned in fiscal 2022 to $2.5 billion.

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

Three Months Ended

May 1, 2021

May 2, 2020

Total cost of shares repurchased

$

915 

$

56

Average price per share

$

108.69 

$

86.30

Number of shares repurchased

8.4 

0.6

The total cost of shares repurchased increased in the first quarter of fiscal 2022 primarily due to the temporary suspension of all share repurchases from March to November of fiscal 2021 to conserve liquidity in light of COVID-19-related concerns.

Between the end of the first quarter of fiscal 2022 on May 1, 2021, and June 2, 2021, we repurchased an incremental 0.2 million shares of our common stock at a cost of $28 million.
v3.21.1
Segments
3 Months Ended
May 01, 2021
Segments [Abstract]  
Segments 10. Segments

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

Three Months Ended

May 1, 2021

May 2, 2020

Revenue by reportable segment

Domestic

$

10,841 

$

7,915 

International

796 

647 

Total revenue

$

11,637 

$

8,562 

Revenue by product category

Domestic

Computing and Mobile Phones

$

4,793 

$

3,805 

Consumer Electronics

3,238 

2,219 

Appliances

1,548 

935 

Entertainment

669 

510 

Services

556 

421 

Other

37 

25 

Total Domestic revenue

$

10,841 

$

7,915 

International

Computing and Mobile Phones

$

394 

$

309 

Consumer Electronics

217 

177 

Appliances

68 

58 

Entertainment

65 

57 

Services

35 

32 

Other

17 

14 

Total International revenue

$

796 

$

647 

Operating income (loss) 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

May 1, 2021

May 2, 2020

Domestic

$

734 

$

241 

International

35 

(12)

Total operating income

769 

229 

Other income (expense):

Investment income and other

3 

6 

Interest expense

(6)

(17)

Earnings before income tax expense and equity in income of affiliates

$

766 

$

218 

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

May 1, 2021

January 30, 2021

May 2, 2020

Domestic

$

16,490 

$

17,625 

$

14,320 

International

1,215 

1,442 

1,285 

Total assets

$

17,705 

$

19,067 

$

15,605 

v3.21.1
Contingencies
3 Months Ended
May 01, 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.

v3.21.1
Basis of Presentation (Policies)
3 Months Ended
May 01, 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 March 2020 the World Health Organization declared the outbreak of novel coronavirus disease (“COVID-19”) as a pandemic. Except where otherwise directed by state and local authorities, on March 22, 2020, we made the decision for the health and safety of our customers and employees to move our stores to a contactless, curbside-only operating model. We also temporarily suspended in-home delivery, repair and consultation services from March 22, 2020, through April 27, 2020, after implementing new safety guidelines. As of June 22, 2020, almost all of our stores were open for shopping and remained open through the first quarter of fiscal 2022. We continue to offer contactless curbside pick-up and in-store consultations for customers who prefer to shop that way.

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 three months of fiscal 2022 and fiscal 2021 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 1, 2021, through the date the financial statements were issued for material subsequent events requiring recognition or disclosure. Other than the refinancing of our $1.25 billion five year senior unsecured revolving credit facility described in Note 5, Debt, 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 is reconciled to the total shown on our Condensed Consolidated Statements of Cash Flows as follows ($ in millions):

May 1, 2021

January 30, 2021

May 2, 2020

Cash and cash equivalents

$

4,278 

$

5,494 

$

3,919 

Restricted cash included in Other current assets

115 

131 

115 

Total cash, cash equivalents and restricted cash

$

4,393 

$

5,625 

$

4,034 

Amounts included in restricted cash are primarily restricted to use for workers’ compensation and general liability insurance claims.
v3.21.1
Basis of Presentation (Tables)
3 Months Ended
May 01, 2021
Basis of Presentation [Abstract]  
Total Cash, Cash Equivalents and Restricted Cash

May 1, 2021

January 30, 2021

May 2, 2020

Cash and cash equivalents

$

4,278 

$

5,494 

$

3,919 

Restricted cash included in Other current assets

115 

131 

115 

Total cash, cash equivalents and restricted cash

$

4,393 

$

5,625 

$

4,034 

v3.21.1
Restructuring (Tables)
3 Months Ended
May 01, 2021
Restructuring Cost and Reserve [Line Items]  
Composition of Restructuring Charges

Three Months Ended

May 1, 2021

May 2, 2020

Mexico Exit and Strategic Realignment(1)

$

(48)

$

-

Fiscal 2020 U.S. Retail Operating Model Changes

-

1 

Total

$

(48)

$

1 

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

Mexico Exit And Corporate Reorganization [Member]  
Restructuring Cost and Reserve [Line Items]  
Composition of Restructuring Charges

Statement of

Three Months Ended May 1, 2021

Earnings Location

Domestic

International

Total

Inventory markdowns

Cost of sales

$

-

$

(6)

$

(6)

Asset impairments

Restructuring charges

-

3 

3 

Termination benefits

Restructuring charges

(44)

(1)

(45)

$

(44)

$

(4)

$

(48)

Statement of

Cumulative Amount as of May 1, 2021

Earnings Location

Domestic

International

Total

Inventory markdowns

Cost of sales

$

-

$

17 

$

17 

Asset impairments(1)

Restructuring charges

10 

60 

70 

Termination benefits

Restructuring charges

79 

19 

98 

Currency translation adjustment

Restructuring charges

-

39 

39 

Other(2)

Restructuring charges

-

5 

5 

$

89 

$

140 

$

229 

(1)Remaining net carrying value approximates fair value and was immaterial as of May 1, 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

(39)

(12)

(51)

Adjustments(1)

(44)

(1)

(45)

Changes in foreign currency exchange rates

-

(1)

(1)

Balances at May 1, 2021

$

21 

$

6 

$

27 

(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.

v3.21.1
Fair Value Measurements (Tables)
3 Months Ended
May 01, 2021
Fair Value Measurements [Abstract]  
Fair Value, Assets and Liabilities Measured on Recurring Basis

Fair Value at

Balance Sheet Location(1)

Fair Value Hierarchy

May 1, 2021

January 30, 2021

May 2, 2020

Assets

Money market funds(2)

Cash and cash equivalents

Level 1

$

1,063 

$

1,575 

$

1,153 

Time deposits(3)

Cash and cash equivalents

Level 2

639 

865 

465 

Time deposits(3)

Short-term investments

Level 2

60 

-

-

Time deposits(3)

Other current assets

Level 2

65 

65 

101 

Interest rate swap derivative instruments(4)

Other current assets

Level 2

-

-

11 

Interest rate swap derivative instruments(4)

Other assets

Level 2

65 

91 

107 

Marketable securities that fund deferred compensation(5)

Other assets

Level 1

53 

53 

45 

(1)Balance sheet location is determined by the length to maturity from the current period-end date.

(2)Valued at quoted market prices in active markets for same (Level 1) or similar (Level 2) instruments.

(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 7, 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

May 1, 2021

January 30, 2021

May 2, 2020

Fair Value

Carrying Value

Fair Value

Carrying Value

Fair Value

Carrying Value

Long-term debt(1)

$

1,260

$

1,215 

$

1,331 

$

1,241 

$

1,315 

$

1,268 

(1)Excludes debt discounts, issuance costs and finance lease obligations.

v3.21.1
Goodwill and Intangible Assets (Tables)
3 Months Ended
May 01, 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

May 1, 2021

January 30, 2021

May 2, 2020

Weighted-Average

Gross Carrying
Amount

Accumulated
Amortization

Gross Carrying
Amount

Accumulated
Amortization

Gross Carrying
Amount

Accumulated
Amortization

Useful Life Remaining as of May 1, 2021

(in years)

Customer relationships

$

339 

$

138 

$

339 

$

124 

$

339 

$

83 

6.5

Tradenames

81 

27 

81 

24 

81 

13 

4.7

Developed technology

56 

30 

56 

27 

56 

18 

2.3

Total

$

476 

$

195 

$

476 

$

175 

$

476 

$

114 

5.8

Amortization Expense

Statement of

Three Months Ended

Earnings Location

May 1, 2021

May 2, 2020

Amortization expense

SG&A

$

20 

$

19 

Amortization Expense Expected to be Recognized

Amortization Expense

Remainder of fiscal 2022

$

60 

Fiscal 2023

79 

Fiscal 2024

54 

Fiscal 2025

16 

Fiscal 2026

16 

Fiscal 2027

13 

Thereafter

43 

v3.21.1
Debt (Tables)
3 Months Ended
May 01, 2021
Debt [Abstract]  
Schedule of Long-term Debt

May 1, 2021

January 30, 2021

May 2, 2020

Notes, 5.50%, due March 15, 2021

$

-

$

-

$

650 

Notes, 4.45%, due October 1, 2028

500 

500 

500 

Notes, 1.95%, due October 1, 2030

650 

650 

-

Interest rate swap valuation adjustments

65 

91 

118 

Subtotal

1,215 

1,241 

1,268 

Debt discounts and issuance costs

(12)

(12)

(8)

Finance lease obligations

41 

38 

34 

Total long-term debt

1,244 

1,267 

1,294 

Less current portion

15 

14 

673 

Total long-term debt, less current portion

$

1,229 

$

1,253 

$

621 

v3.21.1
Revenue (Tables)
3 Months Ended
May 01, 2021
Revenue [Abstract]  
Contract Balances and Changes in Contract Balances

May 1, 2021

January 30, 2021

May 2, 2020

Receivables, net(1)

$

545 

$

618 

$

396 

Short-term contract liabilities included in:

Unredeemed gift card liabilities

297 

317 

257 

Deferred revenue

734 

711 

531 

Accrued liabilities

79 

71 

45 

(1)Receivables are recorded net of allowances for doubtful accounts of $25 million, $32 million and $29 million as of May 1, 2021, January 30, 2021, and May 2, 2020, respectively.

v3.21.1
Derivative Instruments (Tables)
3 Months Ended
May 01, 2021
Derivative Instruments [Abstract]  
Notional Amount of Derivative Instruments

Contract Type

May 1, 2021

January 30, 2021

May 2, 2020

Derivatives designated as net investment hedges

$

94 

$

153 

$

126 

Derivatives designated as interest rate swaps

500 

500 

1,150 

No hedge designation (foreign exchange contracts)

34 

51 

21 

Total

$

628 

$

704 

$

1,297 

Effects of Interest Rate Derivatives and Adjustments to LTD on Earnings

Gain (Loss) Recognized

Three Months Ended

Statement of Earnings Location

May 1, 2021

May 2, 2020

Interest rate swap contracts

Interest expense

$

(26)

$

29 

Adjustments to carrying value of long-term debt

Interest expense

26 

(29)

Total

$

-

$

-

v3.21.1
Earnings per Share (Tables)
3 Months Ended
May 01, 2021
Earnings per Share [Abstract]  
Schedule of Calculation of Numerator and Denominator in Earnings Per Share

Three Months Ended

May 1, 2021

May 2, 2020

Numerator

Net earnings

$

595 

$

159 

Denominator

Weighted-average common shares outstanding

253.1 

258.3 

Dilutive effect of stock compensation plan awards

3.6 

2.1 

Weighted-average common shares outstanding, assuming dilution

256.7 

260.4 

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

1.1 

0.6 

Basic earnings per share

$

2.35 

$

0.61 

Diluted earnings per share

$

2.32 

$

0.61 

v3.21.1
Repurchase of Common Stock (Tables)
3 Months Ended
May 01, 2021
Shareholders' Equity [Abstract]  
Schedule of Share Repurchases

Three Months Ended

May 1, 2021

May 2, 2020

Total cost of shares repurchased

$

915 

$

56

Average price per share

$

108.69 

$

86.30

Number of shares repurchased

8.4 

0.6

v3.21.1
Segments (Tables)
3 Months Ended
May 01, 2021
Segments [Abstract]  
Revenue by Reportable Segment and Product Category

Three Months Ended

May 1, 2021

May 2, 2020

Revenue by reportable segment

Domestic

$

10,841 

$

7,915 

International

796 

647 

Total revenue

$

11,637 

$

8,562 

Revenue by product category

Domestic

Computing and Mobile Phones

$

4,793 

$

3,805 

Consumer Electronics

3,238 

2,219 

Appliances

1,548 

935 

Entertainment

669 

510 

Services

556 

421 

Other

37 

25 

Total Domestic revenue

$

10,841 

$

7,915 

International

Computing and Mobile Phones

$

394 

$

309 

Consumer Electronics

217 

177 

Appliances

68 

58 

Entertainment

65 

57 

Services

35 

32 

Other

17 

14 

Total International revenue

$

796 

$

647 

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

Three Months Ended

May 1, 2021

May 2, 2020

Domestic

$

734 

$

241 

International

35 

(12)

Total operating income

769 

229 

Other income (expense):

Investment income and other

3 

6 

Interest expense

(6)

(17)

Earnings before income tax expense and equity in income of affiliates

$

766 

$

218 

Assets by Reportable Segment

May 1, 2021

January 30, 2021

May 2, 2020

Domestic

$

16,490 

$

17,625 

$

14,320 

International

1,215 

1,442 

1,285 

Total assets

$

17,705 

$

19,067 

$

15,605 

v3.21.1
Basis of Presentation (Narrative) (Details) - Revolving Credit Facility [Member]
3 Months Ended
May 01, 2021
USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Line of credit facility, maximum borrowing capacity $ 1,250,000,000
Debt instrument, term 5 years
v3.21.1
Basis of Presentation (Total Cash, Cash Equivalents and Restricted Cash) (Details) - USD ($)
$ in Millions
May 01, 2021
Jan. 30, 2021
May 02, 2020
Feb. 01, 2020
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]        
Cash and cash equivalents $ 4,278 $ 5,494 $ 3,919  
Restricted cash included in Other current assets 115 131 115  
Total cash, cash equivalents and restricted cash $ 4,393 $ 5,625 $ 4,034 $ 2,355
v3.21.1
Restructuring (Narrative) (Details) - USD ($)
3 Months Ended
May 01, 2021
May 02, 2020
Jan. 30, 2021
Restructuring Cost and Reserve [Line Items]      
Restructuring charges $ (42,000,000) $ 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 Corporate Reorganization [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges 44,000,000    
Restructuring Reserve $ 27,000,000   $ 124,000,000
v3.21.1
Restructuring (Composition of Restructuring Charges) (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
May 01, 2021
May 02, 2020
May 01, 2021
Restructuring Cost and Reserve [Line Items]      
Restructuring charges $ (48) $ 1  
Mexico Exit And Corporate Reorganization [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges (48)   $ 229
Mexico Exit And Corporate Reorganization [Member] | Cost of Sales [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges (6)    
Mexico Exit And Corporate Reorganization [Member] | Domestic [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges (44)   89
Mexico Exit And Corporate Reorganization [Member] | International [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges (4)   140
Mexico Exit And Corporate Reorganization [Member] | Inventory Markdowns [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges (6)    
Mexico Exit And Corporate Reorganization [Member] | Inventory Markdowns [Member] | Cost of Sales [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges     17
Mexico Exit And Corporate Reorganization [Member] | Inventory Markdowns [Member] | International [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges (6)    
Mexico Exit And Corporate Reorganization [Member] | Inventory Markdowns [Member] | International [Member] | Cost of Sales [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges     17
Mexico Exit And Corporate Reorganization [Member] | Asset Impairments [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges 3    
Mexico Exit And Corporate Reorganization [Member] | Asset Impairments [Member] | Restructuring Charges [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges     70
Mexico Exit And Corporate Reorganization [Member] | Asset Impairments [Member] | Domestic [Member] | Restructuring Charges [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges     10
Mexico Exit And Corporate Reorganization [Member] | Asset Impairments [Member] | International [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges 3    
Mexico Exit And Corporate Reorganization [Member] | Asset Impairments [Member] | International [Member] | Restructuring Charges [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges     60
Mexico Exit And Corporate Reorganization [Member] | Termination Benefits [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges (45)    
Mexico Exit And Corporate Reorganization [Member] | Termination Benefits [Member] | Restructuring Charges [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges     98
Mexico Exit And Corporate Reorganization [Member] | Termination Benefits [Member] | Domestic [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges (44)    
Mexico Exit And Corporate Reorganization [Member] | Termination Benefits [Member] | Domestic [Member] | Restructuring Charges [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges     79
Mexico Exit And Corporate Reorganization [Member] | Termination Benefits [Member] | International [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges $ (1)    
Mexico Exit And Corporate Reorganization [Member] | Termination Benefits [Member] | International [Member] | Restructuring Charges [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges     19
Mexico Exit And Corporate Reorganization [Member] | Currency Translation Adjustment [Member] | Restructuring Charges [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges     39
Mexico Exit And Corporate Reorganization [Member] | Currency Translation Adjustment [Member] | International [Member] | Restructuring Charges [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges     39
Mexico Exit And Corporate Reorganization [Member] | Other [Member] | Restructuring Charges [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges     5
Mexico Exit And Corporate Reorganization [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  
v3.21.1
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 Corporate Reorganization [Member] | Termination Benefits [Member]  
Restructuring Reserve [Roll Forward]  
Balances 124,000,000
Cash payments (51,000,000)
Adjustments (45,000,000)
Changes in foreign currency exchange rates (1,000,000)
Balances 27,000,000
Domestic [Member] | Mexico Exit And Corporate Reorganization [Member] | Termination Benefits [Member]  
Restructuring Reserve [Roll Forward]  
Balances 104,000,000
Cash payments (39,000,000)
Adjustments (44,000,000)
Balances 21,000,000
International [Member] | Mexico Exit And Corporate Reorganization [Member] | Termination Benefits [Member]  
Restructuring Reserve [Roll Forward]  
Balances 20,000,000
Cash payments (12,000,000)
Adjustments (1,000,000)
Changes in foreign currency exchange rates (1,000,000)
Balances $ 6,000,000
v3.21.1
Fair Value Measurements (Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($)
$ in Millions
May 01, 2021
Jan. 30, 2021
May 02, 2020
Level 1 [Member] | Money market funds [Member]      
Assets      
Cash and cash equivalents $ 1,063 $ 1,575 $ 1,153
Level 1 [Member] | Marketable securities that fund deferred compensation [Member]      
Assets      
Other assets 53 53 45
Level 2 [Member] | Time deposits [Member]      
Assets      
Cash and cash equivalents 639 865 465
Short-term investments 60    
Other current assets 65 65 101
Level 2 [Member] | Interest Rate Swap Derivative Instruments [Member]      
Assets      
Other current assets     11
Other assets $ 65 $ 91 $ 107
v3.21.1
Fair Value Measurements (Fair Value of Financial Instruments) (Details) - USD ($)
$ in Millions
May 01, 2021
Jan. 30, 2021
May 02, 2020
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Carrying value $ 1,215 $ 1,241 $ 1,268
Long-term debt [Member]      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Carrying value 1,215 1,241 1,268
Level 2 [Member] | Long-term debt [Member]      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Fair Value $ 1,260 $ 1,331 $ 1,315
v3.21.1
Goodwill and Intangible Assets (Narrative) (Details) - USD ($)
3 Months Ended 12 Months Ended
May 01, 2021
May 02, 2020
Jan. 30, 2021
Intangible Assets [Line Items]      
Goodwill and intangible assets impairment charges $ 0 $ 0 $ 0
Tradename [Member]      
Intangible Assets [Line Items]      
Indefinite-lived intangible $ 0    
v3.21.1
Goodwill and Intangible Assets (Gross Carrying Amount of Goodwill and Cumulative Goodwill Impairment) (Details)
$ in Millions
May 01, 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)
v3.21.1
Goodwill and Intangible Assets (Definite-Lived Intangible Assets) (Details) - USD ($)
$ in Millions
3 Months Ended
May 01, 2021
Jan. 30, 2021
May 02, 2020
Acquired Finite-Lived Intangible Assets [Line Items]      
Gross Carrying Amount $ 476 $ 476 $ 476
Accumulated Amortization $ 195 175 114
Weighted-Average Useful Life Remaining 5 years 9 months 18 days    
Customer Relationships [Member]      
Acquired Finite-Lived Intangible Assets [Line Items]      
Gross Carrying Amount $ 339 339 339
Accumulated Amortization $ 138 124 83
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 $ 27 24 13
Weighted-Average Useful Life Remaining 4 years 8 months 12 days    
Developed Technology [Member]      
Acquired Finite-Lived Intangible Assets [Line Items]      
Gross Carrying Amount $ 56 56 56
Accumulated Amortization $ 30 $ 27 $ 18
Weighted-Average Useful Life Remaining 2 years 3 months 18 days    
v3.21.1
Goodwill and Intangible Assets (Amortization Expense) (Details) - USD ($)
$ in Millions
3 Months Ended
May 01, 2021
May 02, 2020
Goodwill and Intangible Assets [Abstract]    
Amortization expense $ 20 $ 19
v3.21.1
Goodwill and Intangible Assets (Amortization Expense Expected to be Recognized) (Details)
$ in Millions
May 01, 2021
USD ($)
Goodwill and Intangible Assets [Abstract]  
Remainder of fiscal 2022 $ 60
Fiscal 2023 79
Fiscal 2024 54
Fiscal 2025 16
Fiscal 2026 16
Fiscal 2027 13
Thereafter $ 43
v3.21.1
Debt (Narrative) (Short-Term Debt) (Details) - USD ($)
3 Months Ended
May 18, 2021
May 01, 2021
Jan. 30, 2021
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  
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    
Five-Year Facility Agreement [Member] | Fed Funds Effective Rate Overnight Index Swap Rate [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] | Fed Funds Effective Rate Overnight Index Swap Rate [Member] | Revolving Credit Facility [Member]      
Line of Credit Facility [Line Items]      
Variable interest rate 0.00%    
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] | Maximum [Member] | Revolving Credit Facility [Member]      
Line of Credit Facility [Line Items]      
Facility fee 0.15%    
Five-Year Facility Agreement [Member] | Maximum [Member] | Fed Funds Effective Rate Overnight Index Swap Rate [Member] | Revolving Credit Facility [Member]      
Line of Credit Facility [Line Items]      
Variable interest rate 0.225%    
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%    
Previous Facility [Member] | Revolving Credit Facility [Member]      
Line of Credit Facility [Line Items]      
Line of credit facility, maximum borrowing capacity   $ 1,250,000,000  
Outstanding borrowings   $ 0 $ 0
Bank Advance [Member]      
Line of Credit Facility [Line Items]      
Interest rate   0.14%  
Debt Instrument, Face Amount   $ 110,000,000  
v3.21.1
Debt (Schedule of Long-Term Debt) (Details) - USD ($)
$ in Millions
May 01, 2021
Jan. 30, 2021
May 02, 2020
Debt Instrument [Line Items]      
Total $ 1,215 $ 1,241 $ 1,268
Debt discounts and issuance costs (12) (12) (8)
Finance lease obligations 41 38 34
Total long-term debt 1,244 1,267 1,294
Less current portion 15 14 673
Total long-term debt, less current portion 1,229 1,253 621
Interest Rate Swap Derivative Instruments [Member]      
Debt Instrument [Line Items]      
Interest rate swap valuation adjustments 65 91 118
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  
v3.21.1
Revenue (Narrative) (Details) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
May 01, 2021
Jan. 30, 2021
Revenue [Abstract]    
Revenue recognized $ 684 $ 492
v3.21.1
Revenue (Contract Balances and Changes in Contract Balances) (Details) - USD ($)
$ in Millions
May 01, 2021
Jan. 30, 2021
May 02, 2020
Revenue from Contract with Customer [Line Items]      
Receivables, net $ 545 $ 618 $ 396
Short-term contract liabilities included in:      
Receivables, allowance for doubtful accounts 25 32 29
Unredeemed Gift Cards [Member]      
Short-term contract liabilities included in:      
Short-term contract liabilities 297 317 257
Deferred Revenue [Member]      
Short-term contract liabilities included in:      
Short-term contract liabilities 734 711 531
Accrued Liability [Member]      
Short-term contract liabilities included in:      
Short-term contract liabilities $ 79 $ 71 $ 45
v3.21.1
Derivative Instruments (Narrative) (Details) - USD ($)
May 01, 2021
Jan. 30, 2021
May 02, 2020
Not Designated As Hedging Instrument [Member]      
Derivative [Line Items]      
Derivative, Notional Amount $ 34,000,000 $ 51,000,000 $ 21,000,000
Derivatives Designated As Net Investment Hedges [Member] | Designated As Hedging Instrument [Member]      
Derivative [Line Items]      
Derivative, Notional Amount 94,000,000 153,000,000 126,000,000
Foreign Exchange Forward Contracts [Member] | Not Designated As Hedging Instrument [Member]      
Derivative [Line Items]      
Derivative, Notional Amount 628,000,000 $ 704,000,000 $ 1,297,000,000
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    
v3.21.1
Derivative Instruments (Notional Amount of Derivative Instruments) (Details) - USD ($)
$ in Millions
May 01, 2021
Jan. 30, 2021
May 02, 2020
Not Designated As Hedging Instrument [Member]      
Derivatives, Fair Value [Line Items]      
Notional Amount $ 34 $ 51 $ 21
Derivatives Designated As Net Investment Hedges [Member] | Designated As Hedging Instrument [Member]      
Derivatives, Fair Value [Line Items]      
Notional Amount 94 153 126
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 $ 628 $ 704 $ 1,297
v3.21.1
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
May 01, 2021
May 02, 2020
Derivatives, Fair Value [Line Items]    
Gain (Loss) Recognized
Interest Rate Swap Derivative Instruments [Member]    
Derivatives, Fair Value [Line Items]    
Gain (Loss) Recognized (26) 29
Carrying Value Of Long Term Debt [Member]    
Derivatives, Fair Value [Line Items]    
Gain (Loss) Recognized $ 26 $ (29)
v3.21.1
Earnings per Share (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
3 Months Ended
May 01, 2021
May 02, 2020
Earnings per Share [Abstract]    
Net earnings $ 595 $ 159
Weighted-average common shares outstanding (in shares) 253.1 258.3
Dilutive effect of stock compensation plan awards (in shares) 3.6 2.1
Weighted-average common shares outstanding, assuming dilution (in shares) 256.7 260.4
Potential shares which were anti-dilutive and excluded from weighted-average share computations (in shares) 1.1 0.6
Basic earnings per share $ 2.35 $ 0.61
Diluted earnings per share $ 2.32 $ 0.61
v3.21.1
Repurchase of Common Stock (Narrative) (Details) - USD ($)
shares in Millions, $ in Millions
1 Months Ended 3 Months Ended
Jun. 02, 2021
May 01, 2021
May 02, 2020
May 27, 2021
Feb. 16, 2021
Feb. 23, 2019
Stock Repurchases [Line Items]            
Stock Repurchase Program, Authorized Amount       $ 2,500    
Repurchase of common stock   $ 915 $ 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   $ 4,200        
February 2019 Share Repurchase Program [Member]            
Stock Repurchases [Line Items]            
Stock Repurchase Program, Authorized Amount           $ 3,000
Subsequent Event [Member]            
Stock Repurchases [Line Items]            
Repurchase of common stock $ 28          
Repurchase of common stock (in shares) 0.2          
v3.21.1
Repurchase of Common Stock (Schedule of share repurchases) (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
3 Months Ended
May 01, 2021
May 02, 2020
Shareholders' Equity [Abstract]    
Total cost of shares repurchased $ 915 $ 56
Average price per share $ 108.69 $ 86.30
Number of shares repurchased 8.4 0.6
v3.21.1
Segments (Revenue by Reportable Segment and Product Category) (Details) - USD ($)
$ in Millions
3 Months Ended
May 01, 2021
May 02, 2020
Segment Reporting, Revenue Reconciling Item [Line Items]    
Revenues $ 11,637 $ 8,562
Domestic Segment [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Revenues 10,841 7,915
Domestic Segment [Member] | Computing and Mobile Phones [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Revenues 4,793 3,805
Domestic Segment [Member] | Consumer Electronics [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Revenues 3,238 2,219
Domestic Segment [Member] | Appliances [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Revenues 1,548 935
Domestic Segment [Member] | Entertainment [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Revenues 669 510
Domestic Segment [Member] | Services [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Revenues 556 421
Domestic Segment [Member] | Other [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Revenues 37 25
International Segment [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Revenues 796 647
International Segment [Member] | Computing and Mobile Phones [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Revenues 394 309
International Segment [Member] | Consumer Electronics [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Revenues 217 177
International Segment [Member] | Appliances [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Revenues 68 58
International Segment [Member] | Entertainment [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Revenues 65 57
International Segment [Member] | Services [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Revenues 35 32
International Segment [Member] | Other [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Revenues $ 17 $ 14
v3.21.1
Segments (Operating Income by Reportable Segment and Reconciliation to Earnings Before Income Tax Expense) (Details) - USD ($)
$ in Millions
3 Months Ended
May 01, 2021
May 02, 2020
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]    
Operating income $ 769 $ 229
Investment income and other 3 6
Interest expense (6) (17)
Earnings before income tax expense and equity in income of affiliates 766 218
Domestic Segment [Member]    
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]    
Operating income 734 241
International Segment [Member]    
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]    
Operating income $ 35 $ (12)
v3.21.1
Segments (Assets by Reportable Segment) (Details) - USD ($)
$ in Millions
May 01, 2021
Jan. 30, 2021
May 02, 2020
Segment Reporting, Asset Reconciling Item [Line Items]      
Total assets $ 17,705 $ 19,067 $ 15,605
Domestic Segment [Member]      
Segment Reporting, Asset Reconciling Item [Line Items]      
Total assets 16,490 17,625 14,320
International Segment [Member]      
Segment Reporting, Asset Reconciling Item [Line Items]      
Total assets $ 1,215 $ 1,442 $ 1,285