BEST BUY CO INC, 10-K filed on 3/18/2022
Annual Report
v3.22.0.1
Document Information Statement - USD ($)
$ in Billions
12 Months Ended
Jan. 29, 2022
Mar. 16, 2022
Jul. 30, 2021
Document Information [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Jan. 29, 2022    
Document Fiscal Year Focus 2022    
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 Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
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    
ICFR Auditor Attestation Flag true    
Entity Public Float     $ 24.5
Entity Common Stock, Shares Outstanding   225,227,756  
Documents Incorporated by Reference [Text Block] Portions of the registrant's Definitive Proxy Statement relating to its 2022 Regular Meeting of Shareholders ("Proxy Statement") are incorporated by reference into Part III. The Proxy Statement will be filed with the U.S. Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates.‎    
Document Fiscal Period Focus FY    
Entity Central Index Key 0000764478    
Amendment Flag false    
Auditor Firm ID 34    
Auditor Location Minneapolis, Minnesota    
Auditor Name Deloitte & Touche LLP    
v3.22.0.1
Consolidated Balance Sheets - USD ($)
$ in Millions
Jan. 29, 2022
Jan. 30, 2021
Current assets    
Cash and cash equivalents $ 2,936 $ 5,494
Receivables, net 1,042 1,061
Merchandise inventories 5,965 5,612
Other current assets 596 373
Total current assets 10,539 12,540
Property and equipment    
Land and buildings 671 658
Leasehold improvements 2,160 2,192
Fixtures and equipment 5,419 6,333
Property under finance leases 91 73
Gross property and equipment 8,341 9,256
Less accumulated depreciation 6,091 6,996
Net property and equipment 2,250 2,260
Operating lease assets 2,654 2,612
Goodwill 1,384 986
Other assets 677 669
Total assets 17,504 19,067
Current liabilities    
Accounts payable 6,803 6,979
Accrued compensation and related expenses 845 725
Accrued liabilities 946 972
Short-term debt   110
Current portion of operating lease liabilities 648 693
Current portion of long-term debt 13 14
Total current liabilities 10,674 10,521
Long-term operating lease liabilities 2,061 2,012
Long-term liabilities 533 694
Long-term debt 1,216 1,253
Contingencies and commitments (Note 13)
Equity    
Preferred stock, $1.00 par value: Authorized - 400,000 shares; Issued and outstanding - none
Common stock, $0.10 par value: Authorized - 1.0 billion shares; Issued and outstanding - 227.4 shares and 256.9 shares, respectively 23 26
Additional paid-in capital
Retained earnings 2,668 4,233
Accumulated other comprehensive income 329 328
Total equity 3,020 4,587
Total liabilities and equity 17,504 19,067
Gift Card [Member]    
Current liabilities    
Short-term contract liabilities 316 317
Deferred Revenue [Member]    
Current liabilities    
Short-term contract liabilities $ 1,103 $ 711
v3.22.0.1
Consolidated Balance Sheets (Parenthetical) - $ / shares
Jan. 29, 2022
Jan. 30, 2021
Consolidated Balance Sheets [Abstract]    
Preferred stock, par value (in dollars per share) $ 1.00 $ 1.00
Preferred stock, authorized shares 400,000 400,000
Preferred stock, issued shares 0 0
Preferred stock, outstanding shares 0 0
Common stock, par value (in dollars per share) $ 0.10 $ 0.10
Common stock, authorized shares 1,000,000,000.0 1,000,000,000.0
Common stock, issued shares 227,400,000 256,900,000
Common stock, outstanding shares 227,400,000 256,900,000
v3.22.0.1
Consolidated Statements of Earnings - USD ($)
shares in Millions, $ in Millions
12 Months Ended
Jan. 29, 2022
Jan. 30, 2021
Feb. 01, 2020
Consolidated Statements of Earnings [Abstract]      
Revenue $ 51,761 $ 47,262 $ 43,638
Cost of sales 40,121 36,689 33,590
Gross profit 11,640 10,573 10,048
Selling, general and administrative expenses 8,635 7,928 7,998
Restructuring charges (34) 254 41
Operating income 3,039 2,391 2,009
Other income (expense):      
Gain on sale of investments   1 1
Investment income and other 10 37 47
Interest expense (25) (52) (64)
Earnings before income tax expense and equity in income of affiliates 3,024 2,377 1,993
Income tax expense 574 579 452
Equity in income of affiliates 4    
Net earnings $ 2,454 $ 1,798 $ 1,541
Basic earnings per share $ 9.94 $ 6.93 $ 5.82
Diluted earnings per share $ 9.84 $ 6.84 $ 5.75
Weighted-average common shares outstanding      
Basic 246.8 259.6 264.9
Diluted 249.3 263.0 268.1
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Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
12 Months Ended
Jan. 29, 2022
Jan. 30, 2021
Feb. 01, 2020
Consolidated Statements of Comprehensive Income [Abstract]      
Net earnings $ 2,454 $ 1,798 $ 1,541
Foreign currency translation adjustments, net of tax 1 (4) 1
Cash flow hedges   (2)  
Reclassification of cumulative translation adjustments into earnings due to exit of business   39  
Comprehensive income $ 2,455 $ 1,831 $ 1,542
v3.22.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
12 Months Ended
Jan. 29, 2022
Jan. 30, 2021
Feb. 01, 2020
Operating activities      
Net earnings $ 2,454 $ 1,798 $ 1,541
Adjustments to reconcile net earnings to total cash provided by operating activities:      
Depreciation and amortization 869 839 812
Restructuring charges (34) 254 41
Stock-based compensation 141 135 143
Deferred income taxes 14 (36) 70
Other, net 11 3 21
Changes in operating assets and liabilities:      
Receivables 17 73 (131)
Merchandise inventories (328) (435) 237
Other assets (14) (51) 16
Accounts payable (201) 1,676 47
Income taxes (156) 173 (132)
Other liabilities 479 498 (100)
Total cash provided by operating activities 3,252 4,927 2,565
Investing activities      
Additions to property and equipment, net of $46, $32 and $10, respectively, of non-cash capital expenditures (737) (713) (743)
Purchases of investments (233) (620) (330)
Sales of investments 66 546 322
Acquisitions, net of cash acquired (468)   (145)
Other, net   (1) 1
Total cash used in investing activities (1,372) (788) (895)
Financing activities      
Repurchase of common stock (3,502) (312) (1,003)
Issuance of common stock 29 28 48
Dividends paid (688) (568) (527)
Borrowings of debt   1,892  
Repayments of debt (133) (1,916) (15)
Other, net (3)   (1)
Total cash used in financing activities (4,297) (876) (1,498)
Effect of exchange rate changes on cash and cash equivalents (3) 7 (1)
Increase (decrease) in cash, cash equivalents and restricted cash (2,420) 3,270 171
Cash, cash equivalents and restricted cash at beginning of period 5,625 2,355 2,184
Cash, cash equivalents and restricted cash at end of period 3,205 5,625 2,355
Supplemental cash flow information      
Income taxes paid 716 442 514
Interest paid $ 22 $ 50 $ 62
v3.22.0.1
Consolidated Statements of Cash Flows (Parenthetical) - USD ($)
$ in Millions
12 Months Ended
Jan. 29, 2022
Jan. 30, 2021
Feb. 01, 2020
Consolidated Statements of Cash Flows [Abstract]      
Non-cash capital expenditures $ 46 $ 32 $ 10
v3.22.0.1
Consolidated Statements of Changes in Shareholders' Equity - USD ($)
shares in Millions, $ in Millions
Common Stock [Member]
Additional Paid-In Capital [Member]
Retained Earnings [Member]
Revision of Prior Period, Accounting Standards Update, Adjustment [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Revision of Prior Period, Accounting Standards Update, Adjustment [Member]
Total
Balances (Accounting Standards Update 2016-02 [Member]) at Feb. 02, 2019     $ (22)     $ (22)  
Balances at Feb. 02, 2019 $ 27     $ 2,985 $ 294   $ 3,306
Balances (in shares) at Feb. 02, 2019 265.7            
Net earnings       1,541     1,541
Other comprehensive income (loss):              
Foreign currency translation adjustments, net of tax         1   1
Stock-based compensation   $ 143         143
Issuance of common stock   48         48
Issuance of common stock (in shares) 4.7            
Common stock dividends   9   (536)     (527)
Repurchase of common stock $ (1) (198)   (810)     (1,009)
Repurchase of common stock (in shares) (13.9)            
Other   (2)         (2)
Balances at Feb. 01, 2020 $ 26     3,158 295   3,479
Balances (in shares) at Feb. 01, 2020 256.5            
Net earnings       1,798     1,798
Other comprehensive income (loss):              
Foreign currency translation adjustments, net of tax         (4)   (4)
Cash flow hedges         (2)   (2)
Reclassification of cumulative translation adjustments into earnings due to exit of business         (39)   (39)
Stock-based compensation   135         135
Issuance of common stock   28         28
Issuance of common stock (in shares) 3.5            
Common stock dividends   12   (580)     (568)
Repurchase of common stock   (175)   (143)     (318)
Repurchase of common stock (in shares) (3.1)            
Balances at Jan. 30, 2021 $ 26     4,233 328   4,587
Balances (in shares) at Jan. 30, 2021 256.9            
Net earnings       2,454     2,454
Other comprehensive income (loss):              
Foreign currency translation adjustments, net of tax         1   1
Stock-based compensation   141         141
Issuance of common stock   29         29
Issuance of common stock (in shares) 2.7            
Common stock dividends   14   (702)     (688)
Repurchase of common stock $ (3) $ (184)   (3,317)     (3,504)
Repurchase of common stock (in shares) (32.2)            
Balances at Jan. 29, 2022 $ 23     $ 2,668 $ 329   $ 3,020
Balances (in shares) at Jan. 29, 2022 227.4            
v3.22.0.1
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares
12 Months Ended
Jan. 29, 2022
Jan. 30, 2021
Feb. 01, 2020
Consolidated Statements of Changes in Shareholders' Equity [Abstract]      
Common Stock, Dividends, Per Share, Declared $ 2.80 $ 2.20 $ 2.00
v3.22.0.1
Summary of Significant Accounting Policies
12 Months Ended
Jan. 29, 2022
Summary of Significant Accounting Policies [Abstract]  
Basis of Presentation Notes to Consolidated Financial Statements 1.   Summary of Significant Accounting Policies Unless the context otherwise requires, the use of the terms “Best Buy,” “we,” “us” and “our” in these Notes to Consolidated Financial Statements refers to Best Buy Co., Inc. and, as applicable, its consolidated subsidiaries. Description of Business We are driven by our purpose to enrich lives through technology and our vision to personalize and humanize technology solutions for every stage of life. We accomplish this by leveraging our combination of technology and a human touch to meet our customers’ everyday needs, whether they come to us online, visit our stores or invite us into their homes. We have operations in the U.S. and Canada. We have two reportable segments: Domestic and International. The Domestic segment is comprised of our operations in all states, districts and territories of the U.S. and our Best Buy Health business, and includes the brand names Best Buy, Best Buy Ads, Best Buy Business, Best Buy Health, CST, Current Health, Geek Squad, Lively, Magnolia, Pacific Kitchen and Home and Yardbird and the domain names bestbuy.com, currenthealth.com, lively.com and yardbird.com. All of our former stores in Mexico were closed as of the end of the first quarter of fiscal 2022, and our International segment is now comprised of all operations in Canada under the brand names Best Buy, Best Buy Mobile and Geek Squad and the domain name bestbuy.ca. Refer to Note 3, Restructuring, for additional information on our Mexico exit. We acquired Current Health Ltd. (“Current Health”) and Two Peaks, LLC d/b/a Yardbird Furniture (“Yardbird”) during the fourth quarter of fiscal 2022, and Critical Signal Technologies, Inc. (“CST”) and BioSensics, LLC (“BioSensics”) in fiscal 2020. Refer to Note 2, Acquisitions, for additional information. COVID-19 In March 2020, the World Health Organization declared the outbreak of novel coronavirus disease (“COVID-19”) as a pandemic. At various times throughout fiscal 2021, we operated our stores with a contactless, curbside-only operating model and temporarily suspended in-home delivery, repair and consultation services. Throughout fiscal 2022, most of our stores remained open as we continued to navigate the pandemic and its resurgences with a focus on the health and safety of our customers and employees. We continue to offer contactless curbside pick-up, as well as digital, phone and chat options for customers who prefer to shop that way. On March 27, 2020, in response to the COVID-19 pandemic, the U.S. Congress enacted the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), which among other things, contains provisions for deferral of the employer portion of social security taxes incurred through the end of calendar 2020 and an employee retention credit, a refundable payroll credit for 50% of wages and health benefits paid to employees not providing services due to the COVID-19 pandemic. As a result of the CARES Act, we deferred $142 million of qualified payroll taxes in fiscal 2021, of which half was repaid in fiscal 2022 and half will be repaid in fiscal 2023. We also claimed employee retention credits of $81 million in fiscal 2021 that were recorded as an offset to the related employee expenses within Selling, general and administrative (“SG&A”) expenses. Basis of Presentation The consolidated financial statements include the accounts of Best Buy Co., Inc. and its consolidated subsidiaries. All intercompany balances and transactions are eliminated upon consolidation. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. ("GAAP") requires us to make estimates and assumptions. These estimates and assumptions affect the reported amounts in the consolidated financial statements, as well as the disclosure of contingent liabilities. Future results could be materially affected if actual results were to differ from these estimates and assumptions. Fiscal Year Our fiscal year ends on the Saturday nearest the end of January. Fiscal 2022, fiscal 2021 and fiscal 2020 included 52 weeks. Adopted Accounting Pronouncements In the fourth quarter of fiscal 2022, we prospectively adopted Accounting Standards Update (“ASU”) 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, issued by the Financial Accounting Standards Board. This ASU requires entities to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The update will generally result in the recognition of contract assets and contract liabilities at amounts consistent with those recorded by the acquiree immediately before the acquisition date rather than at fair value. The adoption of the new standard did not have a material impact on our results of operations, cash flows or financial position. Segment Information Our business is organized into two reportable segments: Domestic (which is comprised of all states, districts and territories of the U.S. and our Best Buy Health business) and International (which is comprised of all operations in Canada and Mexico, prior to our exit from Mexico). Our chief operating decision maker (“CODM”) is our Chief Executive Officer. Our CODM has ultimate responsibility for enterprise decisions, including determining resource allocation for, and monitoring the performance of, the consolidated enterprise, the Domestic reportable segment and the International reportable segment. Business Combinations We account for business combinations under the acquisition method of accounting. This method requires the recording of acquired assets and assumed liabilities at their acquisition date fair values. The excess of the purchase price over the fair value of assets acquired and liabilities assumed is recorded as goodwill. Results of operations related to business combinations are included prospectively beginning with the date of acquisition and transaction costs related to business combinations are recorded within SG&A. Cash, Cash Equivalents and Restricted Cash Cash, cash equivalents and restricted cash reported on our Consolidated Balance Sheets is reconciled to the total shown on our Consolidated Statements of Cash Flows as follows ($ in millions): January 29, 2022 January 30, 2021 February 1, 2020Cash and cash equivalents$ 2,936  $ 5,494  $ 2,229  Restricted cash included in Other current assets 269  131  126  Total cash, cash equivalents and restricted cash$ 3,205  $ 5,625  $ 2,355  Cash primarily consists of cash on hand and bank deposits. Cash equivalents consist of money market accounts, money market funds and time deposits with an original maturity of three months or less when purchased. The amounts of cash equivalents as of January 29, 2022, and January 30, 2021, were $1,584 million and $3,559 million, respectively, and the weighted-average interest rates were 0.2% and 0.6%, respectively. Amounts included in restricted cash are primarily restricted to use for self-insurance liabilities and product protection plans provided under our Best Buy Totaltech membership offering. Receivables Receivables consist primarily of amounts due from vendors for various vendor funding programs, banks for customer credit card and debit card transactions, online marketplace partnerships and mobile phone network operators for device sales and commissions. Receivables are stated at their carrying values, net of a reserve for expected credit losses, which is primarily based on historical collection trends. Our allowances for uncollectible receivables were $39 million and $38 million as of January 29, 2022, and January 30, 2021, respectively. We had $52 million and $88 million of write-offs in fiscal 2022 and fiscal 2021, respectively. Merchandise Inventories Merchandise inventories are recorded at the lower of cost or net realizable value. The weighted-average method is used to determine the cost of inventory which includes costs of in-bound freight to move inventory into our distribution centers. Also included in the cost of inventory are certain vendor allowances. Costs associated with storing and transporting merchandise inventories to our retail stores are expensed as incurred and included within Cost of sales on our Consolidated Statements of Earnings. Our inventory valuation also reflects markdown adjustments for the excess of the cost over the net recovery we expect to realize from the ultimate disposition of inventory, including consideration of any rights we may have to return inventory to vendors for a refund, and establishes a new cost basis. Subsequent changes in facts or circumstances do not result in the reversal of previously recorded markdown adjustments or an increase in the newly established cost basis. Our inventory valuation reflects adjustments for physical inventory losses (resulting from, for example, theft). Physical inventory is maintained through a combination of full location counts (typically once per year) and more regular cycle counts. Property and Equipment Property and equipment is recorded at cost. We depreciate property and equipment to its residual value using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are depreciated over the shorter of their estimated useful lives or the period from the date the assets are placed in service to the end of the lease term, which includes optional renewal periods if they are reasonably certain. Accelerated depreciation methods are generally used for income tax purposes. When property is retired or otherwise disposed of, the cost and accumulated depreciation are removed from our Consolidated Balance Sheets and any resulting gain or loss is reflected on our Consolidated Statements of Earnings. Repairs and maintenance costs are expensed as incurred. Major renewals or replacements that substantially extend the useful life of an asset are capitalized and depreciated. Costs associated with the acquisition or development of software for internal use are capitalized and amortized over the expected useful life of the software, generally from two years to five years. A subsequent addition, modification or upgrade to internal-use software is capitalized to the extent that it enhances the software's functionality. Capitalized software is included in Fixtures and equipment on our Consolidated Balance Sheets. Software maintenance and training costs are expensed in the period incurred. The costs of developing software for sale to customers is expensed as incurred until technological feasibility is established, which generally leads to expensing substantially all costs. Estimated useful lives by major asset category are as follows (in years): Asset CategoryUseful LifeBuildings5-35Leasehold improvements5-10Fixtures and equipment2-15 Impairment of Long-Lived Assets Long-lived assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. When evaluating long-lived assets with impairment indicators for potential impairment, we first compare the carrying value of the asset to its estimated undiscounted future cash flows. If the sum of the estimated undiscounted future cash flows is less than the carrying value of the asset, we calculate an impairment loss. The impairment loss calculation compares the carrying value of the asset to its estimated fair value, which is typically based on estimated discounted future cash flows. We recognize an impairment loss if the amount of the asset’s carrying value exceeds the asset’s estimated fair value. We evaluate locations for triggering events on a quarterly basis. For store locations, our primary indicator that asset carrying values may not be recoverable is negative store operating income for the most recent 12-month period. We also monitor other factors when evaluating store locations for impairment, including significant changes in the manner of use or expected life of the assets or significant changes in our business strategies. When reviewing long-lived assets for impairment, we group long-lived assets with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. For example, long-lived assets deployed at store locations are reviewed for impairment at the individual store level, which involves comparing the net carrying value of all assets to the net cash flow projections for each store. In addition, we conduct separate impairment reviews at other levels as appropriate, for example, to evaluate potential impairment of assets shared by several areas of operations, such as information technology systems. In the first quarter of fiscal 2021, we concluded that the COVID-19 pandemic’s impact on our store operations was a triggering event to review for potential impairments of our store assets. As a result of this analysis, we recorded an immaterial asset impairment charge for a small number of stores within SG&A. No other triggering events were identified for the periods presented. Leases The majority of our lease obligations are real estate operating leases used in our retail and distribution operations. Our finance leases are primarily equipment-related. For any lease with an initial term in excess of 12 months, the related lease assets and liabilities are recognized on our Consolidated Balance Sheets as either operating or finance leases at the inception of an agreement where it is determined that a lease exists. We have lease agreements that contain both lease and non-lease components. For lease agreements entered into or reassessed after the adoption of Accounting Standard’s Codification 842, Leases, in fiscal 2020, we have elected to combine lease and non-lease components for all classes of assets. Leases with an initial term of 12 months or less are not recorded on our Consolidated Balance Sheets; we recognize lease expense for these leases on a straight-line basis over the lease term. Operating lease assets represent the right to use an underlying asset for the lease term and operating lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are recognized based on the present value of future payments over the lease term at the commencement date. We estimate the incremental borrowing rate for each lease based on an evaluation of our credit ratings and the prevailing market rates for collateralized debt in a similar economic environment with similar payment terms and maturity dates commensurate with the terms of the lease. Our operating leases also typically require payment of real estate taxes, common area maintenance and insurance. These components comprise the majority of our variable lease cost and are excluded from the present value of our lease obligations. In instances where they are fixed, they are included due to our election to combine lease and non-lease components. Operating lease assets also include prepaid lease payments and initial direct costs and are reduced by lease incentives. Our lease terms generally do not include options to extend or terminate the lease unless it is reasonably certain that the option will be exercised. Fixed payments may contain predetermined fixed rent escalations. We recognize the related rent expense on a straight-line basis from the commencement date to the end of the lease term. Goodwill and Intangible Assets Goodwill Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. We test goodwill for impairment annually in the fiscal fourth quarter or whenever events or circumstances indicate the carrying value may not be recoverable. We monitor the existence of potential impairment indicators throughout the fiscal year. We test for goodwill impairment at the reporting unit level. Reporting units are determined by identifying components of operating segments which constitute businesses for which discrete financial information is available and is regularly reviewed by segment management. We have goodwill in two reporting units – Best Buy Domestic and Best Buy Health – with carrying values of $491 million and $893 million, respectively, as of January 29, 2022. Our detailed impairment testing involves comparing the fair value of each reporting unit with its carrying value, including goodwill. Fair value reflects the price a potential market participant would be willing to pay for the reporting unit in an arms-length transaction and typically requires analysis of discounted cash flows and other market information, such as trading multiples and other observable metrics. If the fair value of a reporting unit exceeds its carrying value, then it is concluded that no goodwill impairment has occurred. If the carrying value of a reporting unit exceeds its fair value, we recognize an impairment loss in an amount equal to the excess, not to exceed the total amount of goodwill allocated to that reporting unit. Intangible Assets Our valuation of identifiable intangible assets acquired is based on information and assumptions available to us at the time of acquisition, using income and market approaches to determine fair value, as appropriate. We amortize our definite-lived intangible assets over the estimated useful life of the asset. We review these assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets might not be recoverable and monitor for the existence of potential impairment indicators throughout the fiscal year. We record an impairment loss for any portion of the carrying value that is not recoverable. Derivatives Net Investment Hedges We use foreign exchange forward contracts to hedge against the effect of Canadian dollar exchange rate fluctuations on a portion of our net investment in our Canadian operations. The contracts have terms of up to 12 months. For a net investment hedge, we recognize changes in the fair value of the derivative as a component of foreign currency translation within other comprehensive income to offset a portion of the change in translated value of the net investment being hedged, until the investment is sold or liquidated. We limit recognition in net earnings of amounts previously recorded in other comprehensive income to circumstances such as complete or substantially complete liquidation of the net investment in the hedged foreign operation. We report the gains and losses, if any, related to the amount excluded from the assessment of hedge effectiveness in net earnings. Interest Rate Swaps We utilized “receive fixed-rate, pay variable-rate” interest rate swaps to mitigate the effect of interest rate fluctuations on our $500 million principal amount of notes due October 1, 2028 (“2028 Notes”). Our interest rate swap contracts are considered perfect hedges because the critical terms and notional amounts match those of our fixed-rate debt being hedged and are, therefore, accounted for as fair value hedges using the shortcut method. Under the shortcut method, we recognize the change in the fair value of the derivatives with an offsetting change to the carrying value of the debt. Accordingly, there is no impact on our Consolidated Statements of Earnings from the fair value of the derivatives. Derivatives Not Designated as Hedging Instruments We use foreign currency forward contracts to manage the impact of fluctuations in foreign currency exchange rates relative to recognized receivable and payable balances denominated in non-functional currencies. The contracts generally have terms of up to 12 months. These derivative instruments are not designated in hedging relationships and, therefore, we record gains and losses on these contracts directly to our Consolidated Statements of Earnings. Fair Value Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. To measure fair value, we use a three-tier valuation hierarchy based upon observable and non-observable inputs: Level 1 — Unadjusted quoted prices that are available in active markets for identical assets or liabilities at the measurement date.  Level 2 — Significant other observable inputs available at the measurement date, other than quoted prices included in Level 1, either directly or indirectly, including: • Quoted prices for similar assets or liabilities in active markets;• Quoted prices for identical or similar assets or liabilities in non-active markets;• Inputs other than quoted prices that are observable for the asset or liability; and• Inputs that are derived principally from or corroborated by other observable market data. Level 3 — Significant unobservable inputs that cannot be corroborated by observable market data and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions. The fair value hierarchy requires the use of observable market data when available. In instances where the inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability. Assets and liabilities that are measured at fair value on a nonrecurring basis relate primarily to our tangible fixed assets, goodwill and other intangible assets, which are remeasured when the derived fair value is below carrying value on our Consolidated Balance Sheets. For these assets, we do not periodically adjust carrying value to fair value, except in the event of impairment. When we determine that impairment has occurred, the carrying value of the asset is reduced to fair value and the difference is recorded within SG&A and Restructuring charges on our Consolidated Statements of Earnings for non-restructuring and restructuring charges, respectively. Fair value remeasurements are based on significant unobservable inputs (Level 3). Fixed asset fair values are primarily derived using a discounted cash flow (“DCF”) model to estimate the present value of net cash flows that the asset or asset group was expected to generate. The key inputs to the DCF model generally include our forecasts of net cash generated from investment operations, as well as an appropriate discount rate. Insurance We are self-insured for certain losses related to workers’ compensation, medical, general liability and auto claims; however, we obtain third-party excess insurance coverage to limit our exposure to certain claims. Some of these self-insured losses are managed through a wholly-owned insurance captive. Liabilities associated with these losses include estimates of both claims filed and losses incurred but not yet reported. We utilize valuations provided by qualified, independent third-party actuaries as well as internal insurance and risk expertise. Our self-insured liabilities included on our Consolidated Balance Sheets were as follows ($ in millions): January 29, 2022 January 30, 2021Accrued liabilities$ 80  $ 101  Long-term liabilities 51  45  Total$ 131  $ 146  Income Taxes We account for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. We record a valuation allowance to reduce the carrying amounts of deferred tax assets if it is more likely than not that such assets will not be realized. In determining our provision for income taxes, we use an annual effective income tax rate based on annual income, permanent differences between book and tax income and statutory income tax rates. The effective income tax rate also reflects our assessment of the ultimate outcome of tax audits. We adjust our annual effective income tax rate as additional information on outcomes or events becomes available. Discrete events, such as audit settlements or changes in tax laws, are recognized in the period in which they occur. Our income tax returns are routinely examined by domestic and foreign tax authorities. At any one time, multiple tax years are subject to audit by the various taxing authorities. In evaluating the exposures associated with our various tax filing positions, we may record a liability for such exposures. A number of years may elapse before a particular matter, for which we have established a liability, is audited and fully resolved or clarified. We adjust our liability for unrecognized tax benefits and income tax provisions in the period in which an uncertain tax position is effectively settled, the statute of limitations expires for the relevant taxing authority to examine the tax position or when more information becomes available. We include our liability for unrecognized tax benefits, including accrued penalties and interest, in Long-term liabilities on our Consolidated Balance Sheets and in Income tax expense on our Consolidated Statements of Earnings. Accrued Liabilities The major components of accrued liabilities are sales tax liabilities, advertising accruals, sales return reserves, customer deposits and insurance liabilities. Long-Term Liabilities The major components of long-term liabilities are unrecognized tax benefits, income tax liabilities and self-insurance reserves. Foreign Currency Foreign currency denominated assets and liabilities are translated into U.S. dollars using the exchange rates in effect at our Consolidated Balance Sheet dates. Results of operations and cash flows are translated using the average exchange rates throughout the periods. The effect of exchange rate fluctuations on the translation of assets and liabilities is included as a component of shareholders' equity in accumulated other comprehensive income. Gains and losses from foreign currency transactions, which are included in SG&A, have not been significant in any period presented. Revenue Recognition We generate revenue from the sale of products and services, both as a principal and as an agent. Revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the transaction price consideration that we expect to receive in exchange for those goods or services. Our revenue excludes sales and usage-based taxes collected and is reported net of sales refunds, which includes an estimate of future returns and contract cancellations based on historical refund rates, with a corresponding reduction to cost of sales. We defer the revenue associated with any unsatisfied performance obligation until the obligation is satisfied, i.e., when control of a product is transferred to the customer or a service is completed. Product Revenue Product revenue is recognized when the customer takes physical control, either in our stores or at their home. Any fees charged to customers for delivery are a component of the transaction price and are recognized when delivery has been completed. We use delivery information to determine when to recognize revenue for delivered products and any related delivery fee revenue. In most cases, we are the principal to product contracts as we have control of the physical products prior to transfer to the customer. Accordingly, revenue is recognized on a gross basis. For certain sales, primarily activation-based software licenses and third-party stored-value cards, we are the sales agent providing access to the content and recognize commission revenue net of amounts due to third parties who fulfill the performance obligation. For these sales, control passes upon providing access of the content to the customer. Warranty obligations associated with the sale of our exclusive brands products are assurance-type warranties that are a guarantee of the product’s intended functionality and, therefore, do not represent a distinct performance obligation within the context of the contract. Services - When we are the principal We recognize revenue for services, such as installation, set-up, software troubleshooting, product repair, consultation and educational classes once the service is completed, as this is when the customer has the ability to direct the use of and obtain the benefits of the service or serviced product. Payment terms are typically at the point of sale, but may also occur upon completion of the service. Our service contracts are primarily with retail customers and merchandise vendors (for factory warranty repairs). For technical support membership contracts (for example, our Totaltech membership offering), we are responsible for fulfilling the support services to customers. These contracts have terms ranging from one month to one year and typically contain several performance obligations. Payment for the membership contracts is due at the start of the contract period. We have determined that our contracts do not include a significant financing component. For performance obligations provided over time, we recognize revenue on a usage basis, an input method of measuring progress over the related contract term. This method is derived by analysis of historical utilization patterns as this depicts when customers use the services and, accordingly, when delivery of the performance obligation occurs. There is judgment in (1) determining the level at which we apply a portfolio approach to these contracts; (2) measuring the relative standalone selling price for performance obligations within these contracts to the extent that they are only bundled and sold to customers with other performance obligations, or alternatively, using a cost-plus margin approach; and (3) assessing the pattern of delivery across multiple portfolios of customers, including estimating current and future usage patterns. When insufficient history is available to estimate usage, we generally recognize revenue ratably over the life of the contract. Services - When we are the agent On behalf of third-party underwriters, we sell various hardware protection plans to customers that provide extended warranty coverage on their device purchases. Such plans have terms ranging from one month to five years. Payment is due at the point of sale. Third-party underwriters assume the risk associated with the coverage and are primarily responsible for fulfillment. We record the net commissions (the amount charged to the customer less the premiums remitted to the underwriter) as revenue at a point in time when the corresponding product revenue is recognized. In addition, in some cases we are eligible to receive profit-sharing payments, a form of variable consideration, which are dependent upon the financial performance of the underwriter’s protection plan portfolio. We do not share in any losses of the portfolio. We record any profit share as revenue once the uncertainty associated with the portfolio period, which is calendar-year based, is no longer constrained using the expected value method. This typically occurs during our fiscal fourth quarter, with payment of the profit share occurring in the subsequent fiscal year. Service and commission revenues earned from the sale of extended warranties represented 1.4%, 1.6% and 1.8% of revenue in fiscal 2022, fiscal 2021 and fiscal 2020, respectively. We earn commissions from mobile network carriers to sell service contracts on their platforms. Revenue is recognized when control passes at a point in time upon sale of the contract and activation of the customer on the provider’s platform. The time between when we activate the service with the customer and when we receive payment from the content provider is generally within 30 to 60 days, which is after control has passed. Activation commissions are subject to repayment to the carrier primarily in the event of customer cancellation for specified time periods after the sale. Commission revenue from mobile network carriers is reported net of the expected cancellations, which we estimate based on historical cancellation rates. Credit Card Revenue We offer promotional financing and credit cards issued by third-party banks that manage and directly extend credit to our customers. Approximately 25% of revenue in fiscal 2022, fiscal 2021 and fiscal 2020 was transacted using one of our branded cards. We provide a license to our brand and marketing services, and we facilitate credit applications in our stores and online. The banks are the sole owners of the accounts receivable generated under the program and, accordingly, we do not hold any customer receivables related to these programs and act as an agent in the financing transactions with customers. We are eligible to receive a profit share from certain of our banking partners based on the annual performance of their corresponding portfolio, and we receive quarterly payments based on forecasts of full-year performance. This is a form of variable consideration. We record such profit share as revenue over time using the most likely amount method, which reflects the amount earned each quarter when it is determined that the likelihood of a significant revenue reversal is not probable, which is typically quarterly. Profit-share payments occur quarterly, shortly after the end of each program quarter. Best Buy Gift Cards We sell Best Buy gift cards to our customers in our retail stores, online and through select third parties. Our gift cards do not expire. We recognize revenue from gift cards when the card is redeemed by the customer. We also recognize revenue for the portion of gift card values that is not expected to be redeemed (“breakage”). We estimate breakage based on historical patterns and other factors, such as laws and regulations applicable to each jurisdiction. We recognize breakage revenue using a method that is consistent with customer redemption patterns. Typically, over 90% of gift card redemptions (and therefore recognition of over 90% of gift card breakage revenue) occur within one year of issuance. There is judgment in assessing (1) the level at which we group gift cards for analysis of breakage rates, (2) redemption patterns, and (3) the ultimate value of gift cards which we do not expect to be redeemed. Gift card breakage income was $49 million, $33 million and $35 million in fiscal 2022, fiscal 2021, and fiscal 2020, respectively. Sales Incentives We frequently offer sales incentives that entitle our customers to receive a gift card at the time of purchase or an instant savings coupon that can be redeemed towards a future purchase. For sales incentives issued to customers that are only earned in conjunction with the purchase of products or services, the sales incentives represent an option that is a material right and, accordingly, is a performance obligation in the contract. The revenue allocated to these sales incentives is deferred as a contract liability and is based on the cards that are projected to be redeemed. We recognize revenue for this performance obligation when it is redeemed by the customer or when it is not expected to be redeemed. There is judgment in determining (1) the level at which we group incentives based on similar redemption patterns, (2) future redemption patterns, and (3) the ultimate number of incentives that we do not expect to be redeemed. We also issue coupons that are not earned in conjunction with a purchase of a product or service, typically as part of targeted marketing activities. This is not a performance obligation, but is recognized as a reduction of the transaction price when redeemed by the customer. Customer Loyalty Programs We have customer loyalty programs which allow members to earn points for each purchase completed with us or when using our co-branded credit cards. Points earned enable members to receive a certificate that may be redeemed on future purchases. Depending on the customer’s membership level within our loyalty program, certificate expirations typically range from 2 to 6 months from the date of issuance. Our loyalty programs represent customer options that provide a material right and, accordingly, are performance obligations for each applicable contract. The relative standalone selling price of points earned by our loyalty program members is deferred and included in Deferred revenue on our Consolidated Balance Sheets based on the percentage of points that are projected to be redeemed. We recognize revenue for this performance obligation over time when a certificate is estimated to be redeemed by the customer. There is inherent judgment in estimating the value of our customer loyalty programs as they are susceptible to factors outside of our influence, particularly customer redemption activity. However, we have significant experience in estimating the amount and timing of redemptions of certificates, based primarily on historical data. Cost of Sales and Selling, General and Administrative Expenses The following tables illustrate the primary costs classified in each major expense category. Cost of SalesCost of products sold, including:Freight expenses associated with moving merchandise inventories from our vendors to our distribution centersVendor allowances that are not a reimbursement of specific, incremental and identifiable costsCash discounts on payments to merchandise vendorsPhysical inventory lossesMarkdownsCustomer shipping and handling expensesCosts associated with operating our distribution network, including payroll and benefit costs, occupancy costs and depreciationFreight expenses associated with moving merchandise inventories from our distribution centers to our retail storesCost of services provided, including:Payroll and benefit costs for services employees associated with providing the serviceCost of replacement parts and related freight expenses Selling, General and Administrative ExpensesPayroll and benefit costs for retail and corporate employeesOccupancy and maintenance costs of retail, services and corporate facilitiesDepreciation and amortization related to retail, services and corporate assetsAdvertising costsVendor allowances that are a reimbursement of specific, incremental and identifiable costsTender costs, including bank charges and costs associated with credit and debit card interchange feesCharitable contributionsOutside and outsourced service feesLong-lived asset impairment chargesOther administrative costs, such as supplies, travel and lodging Vendor Allowances We receive funds from our merchandise vendors through a variety of programs and arrangements, primarily in the form of purchases-based or sales-based volumes and for product advertising and placement. We recognize allowances based on purchases and sales as a reduction of cost of sales when the associated inventory is sold. Allowances for advertising and placement are recognized as a reduction of cost of sales ratably over the corresponding performance period. Funds that are determined to be a reimbursement of specific, incremental and identifiable costs incurred to sell a vendor’s products are recorded as an offset to the related expense within SG&A when incurred. Advertising Costs Advertising costs, which are included in SG&A, are expensed the first time the advertisement runs. Advertising costs consist primarily of digital and television advertisements, as well as support costs. Advertising expenses were $915 million, $819 million and $840 million in fiscal 2022, fiscal 2021 and fiscal 2020, respectively. Stock-Based Compensation We recognize stock-based compensation expense for the fair value of our stock-based compensation awards, which is determined based on the closing market price of our stock at the date of grant for time-based and performance-based share awards, and Monte-Carlo simulation for market-based share awards. Compensation expense is recognized on a straight-line basis over the period in which services are required, except where there are performance-based share awards that vest on a graded basis, in which case the expense for these awards is front-loaded or recognized on a graded-attribution basis. Forfeitures are expensed as incurred or upon termination. Comprehensive Income (Loss) Comprehensive income (loss) is computed as net earnings plus certain other items that are recorded directly to shareholders’ equity. In addition to net earnings, the significant component of comprehensive income (loss) includes foreign currency translation adjustments.
v3.22.0.1
Acquisitions
12 Months Ended
Jan. 29, 2022
Acquisitions [Abstract]  
Acquisitions 2.   Acquisitions Current Health Ltd. On November 2, 2021, we acquired all of the outstanding shares of Current Health Ltd. (“Current Health”) for net cash consideration of $389 million. Current Health is a care-at-home technology platform that brings together remote patient monitoring, telehealth and patient engagement into a single solution for healthcare organizations. The acquisition of Current Health is aligned with our focus in virtual care to enable people in their homes to connect seamlessly with their health care providers. The acquisition was accounted for using the acquisition method of accounting for business combinations. The purchase price allocation for the assets acquired and liabilities assumed is substantially complete, but may be subject to changes as we complete our valuation analysis in fiscal 2023. The acquired assets included $351 million of goodwill that was assigned to our Best Buy Health reporting unit and was not deductible for income tax purposes. Results of operations from the date of acquisition were included within our Domestic reportable segment and our Services revenue category. The acquisition of Current Health was not material to the results of our operations. Two Peaks, LLC d/b/a Yardbird Furniture On November 4, 2021, we acquired all of the outstanding shares of Two Peaks, LLC d/b/a Yardbird Furniture (“Yardbird”) for net cash consideration of $79 million. The acquisition of Yardbird, a direct-to-consumer outdoor furniture company, expands our assortment in categories like outdoor living, as more and more consumers look to make over or upgrade their outdoor living spaces. The acquisition was accounted for using the acquisition method of accounting for business combinations. The purchase price allocation for the assets acquired and liabilities assumed is substantially complete, but may be subject to changes as we complete our valuation analysis in fiscal 2023. The acquired assets included $47 million of goodwill that was assigned to our Best Buy Domestic reporting unit and was deductible for income tax purposes. Results of operations from the date of acquisition were included within our Domestic reportable segment and Other revenue category. The acquisition of Yardbird was not material to the results of our operations. BioSensics, LLC In fiscal 2020, we acquired the predictive healthcare technology business of BioSensics, LLC (“BioSensics”) on August 7, 2019, for net cash consideration of $20 million. The acquired assets included $19 million of goodwill that was assigned to our Best Buy Domestic reporting unit and was deductible for tax purposes. The acquisition currently supports our health strategy and is included in our Domestic reportable segment. The transaction was accounted for as a business combination and was not material to the results of our operations. Critical Signal Technologies, Inc. In fiscal 2020, we acquired all of the outstanding shares of Critical Signal Technologies, Inc. (“CST”), a health services company, on May 9, 2019, for net cash consideration of $125 million. The acquired assets included $52 million of goodwill that was assigned to our Best Buy Health reporting unit and was not deductible for income tax purposes. The acquisition of CST is aligned with our strategy to address health and wellness with a focus on aging seniors and how technology can help them live longer in their homes and is included in our Domestic reportable segment and Services revenue category. The acquisition was accounted for using the acquisition method of accounting for business combinations and was not material to the results of our operations.
v3.22.0.1
Restructuring
12 Months Ended
Jan. 29, 2022
Restructuring [Abstract]  
Restructuring 3.   Restructuring  Restructuring charges were as follows ($ in millions): 2022 2021 2020Mexico Exit and Strategic Realignment(1) $ (41) $ 277  $ - Fiscal 2020 U.S. Retail Operating Model Changes 1  - 41  Total $ (40) $ 277  $ 41  (1)Includes ($6) million and $23 million related to inventory markdowns recorded in Cost of sales on our Consolidated Statements of Earnings in fiscal 2022 and fiscal 2021, respectively. Mexico Exit and Strategic Realignment The COVID-19 pandemic has had significant impacts on, for example, the economic conditions of the markets in which we operate, customer shopping behaviors, the role of technology in peoples’ lives and the way we meet their needs. In light of these changes, we are adapting our strategy to ensure that our focus and resources are closely aligned with the opportunities we see in front of us. As a result, in the third quarter of fiscal 2021, we made the decision to exit our operations in Mexico and began taking other actions to more broadly align our organizational structure in support of our strategy. Charges incurred in our International segment primarily related to our decision to exit our operations in Mexico. All remaining stores in Mexico were closed in the first quarter of fiscal 2022, and we do not expect to incur material future restructuring charges. Charges incurred in our Domestic segment primarily related to actions taken to align our organizational structure in support of our strategy. As we continue to evolve our strategy, it is possible that we will incur material future restructuring costs, but we are unable to forecast the timing and magnitude of such costs. All charges incurred related to the exit from Mexico and strategic realignment described above were from continuing operations and were presented as follows ($ in millions): 2022 Statement of Earnings LocationDomestic International TotalInventory markdownsCost of sales$ - $ (6) $ (6) Asset impairments(1)Restructuring charges - 6  6  Termination benefitsRestructuring charges (40) (1) (41) $ (40) $ (1) $ (41) 2021 Statement of Earnings LocationDomestic International TotalInventory markdownsCost of sales$ - $ 23  $ 23  Asset impairments(1)Restructuring charges 10  57  67  Termination benefitsRestructuring charges 123  20  143  Currency translation adjustmentRestructuring charges - 39  39  Other(2)Restructuring charges - 5  5  $ 133  $ 144  $ 277  Cumulative Amount as of January 29, 2022 Statement of Earnings LocationDomestic International TotalInventory markdownsCost of sales$ - $ 17  $ 17  Asset impairments(1)Restructuring charges 10  63  73  Termination benefitsRestructuring charges 83  19  102  Currency translation adjustmentRestructuring charges - 39  39  Other(2)Restructuring charges - 5  5  $ 93  $ 143  $ 236  (1)Remaining net carrying value of asset impairments approximates fair value and was immaterial as of January 29, 2022, and January 30, 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 TotalBalances as of February 1, 2020 $ - $ - $ - Charges 123  20  143  Cash payments (19) - (19) Balances as of January 30, 2021 104  20  124  Charges 4  - 4  Cash payments (57) (18) (75) Adjustments(1) (44) (1) (45) Changes in foreign currency exchange rates - (1) (1) Balances as of January 29, 2022 $ 7  $ - $ 7  (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, including $11 million related to a voluntary early retirement offer, related to termination benefits within our Domestic segment and were presented within Restructuring charges from continuing operations on our Consolidated Statements of Earnings. As of January 29, 2022, the cumulative amount of charges incurred was $42 million and no material liability remains.
v3.22.0.1
Goodwill and Intangible Assets
12 Months Ended
Jan. 29, 2022
Goodwill and Intangible Assets [Abstract]  
Goodwill and Intangible Assets 4.   Goodwill and Intangible Assets Goodwill Goodwill balances by reportable segment were as follows ($ in millions): January 29, 2022 January 30, 2021 Gross Carrying Amount Cumulative Impairment Gross Carrying Amount Cumulative ImpairmentDomestic$ 1,451  $ (67) $ 1,053  $ (67) International 608  (608) 608  (608) Total$ 2,059  $ (675) $ 1,661  $ (675) In the first quarter of fiscal 2021, we completed a review for potential impairments of our goodwill as a result of the COVID-19 pandemic’s impact on our store operations, concluding that no impairment had occurred. A similar conclusion was reached upon completion of our annual goodwill impairment review during the fourth quarters of fiscal 2021 and fiscal 2022. As a result, no goodwill impairment charges were recorded for the periods presented. Definite-Lived Intangible Assets We have definite-lived intangible assets which are recorded within Other assets on our Consolidated Balance Sheets as follows ($ in millions): January 29, 2022 January 30, 2021 Weighted-Average Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Useful Life Remaining as of January 29, 2022 (in years)Customer relationships$ 360  $ 180  $ 339  $ 124  5.8  Tradenames 108  38  81  24  2.6  Developed technology 64  39  56  27  2.9  Total$ 532  $ 257  $ 476  $ 175  4.7  Amortization expense was as follows ($ in millions): Statement of Earnings Location2022 2021 2020Amortization expenseSG&A $ 82  $ 80  $ 72  Amortization expense expected to be recognized in future periods is as follows ($ in millions): Amount Fiscal 2023 $ 86  Fiscal 2024 60  Fiscal 2025 22  Fiscal 2026 21  Fiscal 2027 18  Thereafter 68 
v3.22.0.1
Fair Value Measurements
12 Months Ended
Jan. 29, 2022
Fair Value Measurements [Abstract]  
Fair Value Measurements 5.   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 accounted for at fair value were as follows ($ in millions): Fair Value Fair Value atAssets Balance Sheet Location(1) Hierarchy January 29, 2022 January 30, 2021Money market funds(2) Cash and cash equivalents Level 1 $ 548  $ 1,575  Time deposits(3) Cash and cash equivalents Level 2 278  865  Time deposits(3) Other current assets Level 2 - 65  Marketable securities that fund deferred compensation(4) Other assets Level 1 54  53  Interest rate swap derivative instruments(5) Other assets Level 2 50  91  (1)Balance sheet location is determined by the 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 select mutual fund performance that trade with sufficient frequency and volume to obtain pricing information on an ongoing basis. (5)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. Refer to Note 6, Derivative Instruments, for additional information. Nonrecurring Fair Value Measurements In fiscal 2022 and fiscal 2021, we recorded asset impairments related to our decision to exit our operations in Mexico. See Note 3, Restructuring, for additional information regarding the charges incurred and the net carrying value of assets remaining. Fair Value of Financial Instruments The fair values of cash, receivables, accounts payable, short-term debt 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 Consolidated Balance Sheets. If our long-term debt was 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): January 29, 2022 January 30, 2021 Fair Value Carrying Value Fair Value Carrying ValueLong-term debt(1)$ 1,205  $ 1,200  $ 1,331  $ 1,241  (1)Excludes debt discounts, issuance costs and finance lease obligations.
v3.22.0.1
Derivative Instruments
12 Months Ended
Jan. 29, 2022
Derivative Instruments [Abstract]  
Derivative Instruments 6.   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, and interest rate swaps to mitigate the effect of interest rate fluctuations on our 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. Our derivative instruments designated as net investment hedges and interest rate swaps are recorded on our Consolidated Balance Sheets at fair value. See Note 5, 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): Notional AmountContract TypeJanuary 29, 2022 January 30, 2021Derivatives designated as net investment hedges$ 155  $ 153  Derivatives designated as interest rate swap contracts 500  500  No hedging designation (foreign exchange forward contracts) 68  51  Total$ 723  $ 704  Effects of our derivative instruments on our Consolidated Statements of Earnings were as follows ($ in millions): Gain (Loss) RecognizedContract TypeStatement of Earnings Location2022 2021Interest rate swap contractsInterest expense$ (41) $ 2  Adjustments to carrying value of long-term debtInterest expense 41  (2) Total $ - $ -
v3.22.0.1
Leases
12 Months Ended
Jan. 29, 2022
Leases [Abstract]  
Leases 7.   Leases Supplemental balance sheet information related to our leases was as follows ($ in millions): Balance Sheet Location January 29, 2022 January 30, 2021Assets Operating leasesOperating lease assets $ 2,654  $ 2,612  Finance leasesProperty under finance leases, net(1) 45  37  Total lease assets $ 2,699  $ 2,649  Liabilities Current: Operating leasesCurrent portion of operating lease liabilities $ 648  $ 693  Finance leasesCurrent portion of long-term debt 13  14  Non-current: Operating leasesLong-term operating lease liabilities 2,061  2,012  Finance leasesLong-term debt 27  24  Total lease liabilities $ 2,749  $ 2,743  (1)Finance leases were recorded net of accumulated depreciation of $46 million and $36 million as of January 29, 2022, and January 30, 2021, respectively. Components of our total lease cost were as follows ($ in millions): Statement of Earnings Location 2022 2021Operating lease cost(1)Cost of sales and SG&A(2) $ 770  $ 777  Finance lease cost: Depreciation of lease assetsCost of sales and SG&A(2) 13  13  Interest on lease liabilitiesInterest expense 1  1  Variable lease costCost of sales and SG&A(2) 238  249  Sublease incomeSG&A (13) (16) Total lease cost $ 1,009  $ 1,024  (1)Includes short-term leases, which are immaterial.(2)Supply chain-related amounts are included in Cost of sales. Other information related to our leases was as follows ($ in millions): 2022 2021Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 814  $ 795  Operating cash flows from finance leases 1  1  Financing cash flows from finance leases 18  15  Lease assets obtained in exchange for new lease liabilities: Operating leases 759  608  Finance leases 21  33  Weighted average remaining lease term (in years): Operating leases 5.1  5.1  Finance leases 5.0  5.6  Weighted average discount rate: Operating leases 2.5 % 2.9 %Finance leases 2.4 % 2.9 % Future lease payments under our non-cancellable leases as of January 29, 2022, were as follows ($ in millions): Operating Leases(1) Finance Leases(1)Fiscal 2023 $ 706  $ 15  Fiscal 2024 644  12  Fiscal 2025 521  8  Fiscal 2026 390  4  Fiscal 2027 277  1  Thereafter 354  4  Total future undiscounted lease payments 2,892  44  Less imputed interest 183  4  Total reported lease liability $ 2,709  $ 40  (1)Lease payments exclude $51 million of legally binding fixed costs for leases signed but not yet commenced.
v3.22.0.1
Debt
12 Months Ended
Jan. 29, 2022
Debt [Abstract]  
Debt 8.   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. There were no borrowings outstanding under the Five Year Facility Agreement as of January 29, 2022, or under the Previous Facility as of January 30, 2021. 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. Bank Advance In conjunction with a solar energy investment, we were advanced $110 million due October 31, 2021. The advance was recorded within Short-term debt on our Consolidated Balance Sheets as of January 30, 2021, and bore interest at 0.14%. This advance was repaid on October 29, 2021. Long-Term Debt Long-term debt consisted of the following ($ in millions): January 29, 2022 January 30, 20212028 Notes$ 500  $ 500  2030 Notes 650  650  Interest rate swap valuation adjustments 50  91  Subtotal 1,200  1,241  Debt discounts and issuance costs (11) (12) Finance lease obligations 40  38  Total long-term debt 1,229  1,267  Less: current portion 13  14  Total long-term debt, less current portion$ 1,216  $ 1,253  2028 Notes In September 2018, we issued $500 million principal amount of notes due October 1, 2028 (the “2028 Notes”). The 2028 Notes bear interest at a fixed rate of 4.45% per year, payable semi-annually on April 1 and October 1 of each year, beginning on April 1, 2019. Net proceeds from the issuance were $495 million after underwriting and issuance discounts totaling $5 million. We may redeem some or all of the 2028 Notes at any time at a redemption price equal to the greater of (i) 100% of the principal amount, and (ii) the sum of the present values of each remaining scheduled payment of principal and interest discounted to the redemption date on a semiannual basis, plus accrued and unpaid interest on the principal amount to the redemption date as described in the indenture (including the supplemental indenture) relating to the 2028 Notes. Furthermore, if a change of control triggering event occurs, we will be required to offer to purchase the remaining unredeemed 2028 Notes at a price equal to 101% of their principal amount, plus accrued and unpaid interest to the purchase date. The 2028 Notes are unsecured and unsubordinated obligations and rank equally with all of our other unsecured and unsubordinated debt. The 2028 Notes contain covenants that, among other things, limit our ability to incur debt secured by liens or to enter into sale and lease-back transactions. 2030 Notes In October 2020, we issued $650 million principal amount of notes due October 1, 2030, (the “2030 Notes”) that bear interest at a fixed rate of 1.95% per year, payable semi-annually on April 1 and October 1 of each year, beginning on April 1, 2021. Net proceeds from the issuance were $642 million after underwriting and issuance discounts totaling $8 million. We may redeem some or all of the 2030 Notes at any time at a redemption price equal to the greater of (i) 100% of the principal amount, and (ii) the sum of the present values of each remaining scheduled payment of principal and interest discounted to the redemption date on a semiannual basis, plus accrued and unpaid interest on the principal amount to the redemption date as described in the indenture (including the supplemental indenture) relating to the 2030 Notes. Furthermore, if a change of control triggering event occurs, we will be required to offer to purchase the remaining unredeemed 2030 Notes at a price equal to 101% of their principal amount, plus accrued and unpaid interest to the purchase date. The 2030 Notes are unsecured and unsubordinated obligations and rank equally with all of our other unsecured and unsubordinated debt. The 2030 Notes contain covenants that, among other things, limit our ability to incur debt secured by liens or to enter into sale and lease-back transactions. Fair Value and Future Maturities See Note 5, Fair Value Measurements, for the fair value of long-term debt. As of January 29, 2022, we do not have any future maturities of long-term debt within the next five fiscal years.
v3.22.0.1
Shareholders' Equity
12 Months Ended
Jan. 29, 2022
Shareholders' Equity [Abstract]  
Shareholders' Equity 9.   Shareholders’ Equity Stock Compensation Plans The Best Buy Co., Inc. 2020 Omnibus Incentive Plan (the “2020 Plan”) approved by shareholders in June 2020 authorizes us to issue up to 18.6 million shares plus the remaining unused shares available for issuance under the Best Buy Co., Inc. Amended and Restated 2014 Omnibus Incentive Plan (the “2014 Plan”). In addition, shares subject to any outstanding awards under our prior stock incentive plans that are forfeited, cancelled or reacquired by the Company are available for reissuance under the 2020 Plan. The 2014 Plan was terminated as to the grant of any additional awards, but prior awards remain outstanding and continue to vest in accordance with the original terms of such plan. The 2020 Plan authorizes us to grant or issue non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units and other equity awards. We have not granted incentive stock options. Under the terms of the 2020 Plan, awards may be granted to our employees, officers, advisers, consultants and directors. Awards issued under the 2020 Plan vest as determined by the Compensation and Human Resources Committee of our Board of Directors (“Board”) at the time of grant. Dividend equivalents accrue on restricted stock and restricted stock units during the vesting period, are forfeitable prior to the vesting date and are settled in shares of our common stock at the vesting or distribution date. As of January 29, 2022, a total of 19.4 million shares were available for future grants under the 2020 Plan. Stock-based compensation expense was as follows ($ in millions): 2022 2021 2020Share awards: Time-based$ 109  $ 99  $ 95  Performance-based 17  21  28  Market-based 12  11  13  Stock options 3  4  7  Stock-based compensation expense 141  135  143  Income tax benefits 26  25  26  Stock-based compensation expense, net of tax$ 115  $ 110  $ 117  Time-Based Share Awards Time-based share awards vest solely upon continued employment, generally 33% on each of the three annual anniversary dates following the grant date. Time-based share awards to directors vest one year from the date of grant. Information on our time-based share awards was as follows (shares in thousands): Time-Based Share AwardsShares Weighted-Average Fair Value per ShareOutstanding as of January 30, 2021 3,843  $ 58.94  Granted 1,454  $ 118.90  Vested and distributed (1,646) $ 88.62  Forfeited (255) $ 76.94  Outstanding as of January 29, 2022 3,396  $ 80.30  The total fair value vested and distributed during fiscal 2022, fiscal 2021 and fiscal 2020 was $194 million, $145 million and $129 million, respectively. The actual tax benefits realized for the tax deductions related to vesting in fiscal 2022, fiscal 2021 and fiscal 2020 was $41 million, $33 million and $28 million, respectively. As of January 29, 2022, there was $180 million of unrecognized compensation expense related to non-vested time-based share awards that we expect to recognize over a weighted-average period of 1.9 years. Performance-Based Share Awards Performance-based share awards vest upon the achievement of company performance goals based upon compound annual growth in enterprise revenue (“CAGR”) and attainment of net earnings (“adjusted net earnings”). The number of shares of common stock that could be distributed at the end of the three-year CAGR-incentive period may range from 0% to 150% of each share granted (“target”). Shares are granted at 100% of target. Awards based on adjusted net earnings vest 33% on each of the three annual anniversary dates following the grant date if the adjusted net earnings goal has been met. Information on our performance-based share awards was as follows (shares in thousands): Performance-Based Share AwardsShares Weighted-Average Fair Value per ShareOutstanding as of January 30, 2021 929  $ 63.20  Granted 99  $ 118.19  Adjustment for performance achievement 78  $ 72.24  Distributed (366) $ 69.29  Forfeited (67) $ 55.56  Outstanding as of January 29, 2022 673  $ 68.40  The total fair value distributed during fiscal 2022, fiscal 2021 and fiscal 2020 was $43 million, $28 million and $19 million, respectively. The actual tax benefits realized for the tax deductions related to distributions in fiscal 2022, fiscal 2021 and fiscal 2020 were $3 million, $5 million and $4 million, respectively. As of January 29, 2022, there was $10 million of unrecognized compensation expense related to non-vested performance-based share awards that we expect to recognize over a weighted-average period of 1.5 years. Market-Based Share Awards Market-based share awards vest at the end of a three-year incentive period based upon our total shareholder return ("TSR") compared to the TSR of companies that comprise Standard & Poor's 500 Index. The number of shares of common stock that could be distributed at the end of the three-year TSR-incentive period may range from 0% to 150% of each share granted (“target”). Shares are granted at 100% of target. Information on our market-based share awards was as follows (shares in thousands): Market-Based Share AwardsShares Weighted-Average Fair Value per ShareOutstanding as of January 30, 2021 558  $ 65.88  Granted 147  $ 132.21  Adjustment for performance achievement 76  $ 74.30  Distributed (225) $ 74.30  Forfeited (32) $ 65.49  Outstanding as of January 29, 2022 524  $ 80.78  The total fair value distributed during fiscal 2022, fiscal 2021 and fiscal 2020 was $27 million, $37 million and $70 million, respectively. The actual tax benefits realized for the tax deductions related to distributions in fiscal 2022, fiscal 2021 and fiscal 2020 was $3 million, $8 million and $16 million, respectively. As of January 29, 2022, there was $15 million of unrecognized compensation expense related to non-vested market-based share awards that we expect to recognize over a weighted-average period of 1.8 years. Stock Options Our outstanding stock options have a 10-year term and generally vest 33% on each of the three annual anniversary dates following the grant date. Information on our stock options was as follows: Stock Options‎(in thousands) Weighted-Average‎ Exercise Price ‎per Share Weighted-Average‎ Remaining Contractual Term ‎(in years) Aggregate‎Intrinsic Value‎(in millions)Outstanding as of January 30, 2021 1,272  $ 57.83  Exercised (320) $ 57.49  Forfeited (117) $ 61.91  Outstanding as of January 29, 2022 835  $ 57.39  6.1  $ 34  Vested or expected to vest as of January 29, 2022 835  $ 57.39  6.1  $ 34  Exercisable as of January 29, 2022 295  $ 43.83  4.6  $ 16  No stock options were granted in fiscal 2022. The weighted-average grant-date fair value of stock options granted during fiscal 2021 and fiscal 2020 was $19.89 and $19.81 per share, respectively. The aggregate intrinsic value of our stock options (the amount by which the market price of the stock on the date of exercise exceeded the exercise price of the option) exercised during fiscal 2022, fiscal 2021 and fiscal 2020 was $19 million, $21 million and $59 million, respectively. As of January 29, 2022, there was $3 million of unrecognized compensation expense related to stock options that we expect to recognize over a weighted-average period of 1.1 years. Net cash proceeds from the exercise of stock options were $18 million, $20 million and $40 million in fiscal 2022, fiscal 2021 and fiscal 2020, respectively. There was $2 million, $5 million and $14 million of income tax benefits realized from stock option exercises in fiscal 2022, fiscal 2021 and fiscal 2020, respectively. We estimated the fair value of each stock option on the date of grant using a lattice valuation model with the following assumptions: Valuation Assumptions2021 2020Risk-free interest rate(1) 0.1 %- 0.9 % 1.9 %- 2.5 %Expected dividend yield 2.9 % 2.9 %Expected stock price volatility(2) 56 % 36 %Expected life of stock options (in years)(3) 6.3  7.4  (1)Based on the U.S. Treasury constant maturity interest rate whose term is consistent with the expected life of our stock options.(2)In projecting expected stock price volatility, we consider both the historical volatility of our stock price as well as implied volatilities from exchange-traded options on our stock.(3)Estimated based upon historical experience. 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 the potentially dilutive common shares been issued. Potentially dilutive securities include stock options and non-vested share awards. Non-vested market-based share awards and non-vested performance-based share awards are included in the average diluted shares outstanding each period if established market or performance criteria have been met at the end of the respective periods. As of January 29, 2022, options to purchase common stock were all in-the-money and outstanding as follows (shares in millions): Exercisable Unexercisable Total Shares % Weighted-‎Average Price‎per Share Shares % Weighted-‎Average Price‎per Share Shares % Weighted-‎Average Price‎per ShareIn-the-money 0.3  35  $ 43.83  0.5  65  $ 64.80  0.8  100  $ 57.39  Reconciliations of the numerators and denominators of basic and diluted earnings per share were as follows ($ and shares in millions, except per share amounts): 2022 2021 2020Numerator Net earnings$ 2,454  $ 1,798  $ 1,541  Denominator Weighted-average common shares outstanding 246.8  259.6  264.9  Dilutive effect of stock compensation plan awards 2.5  3.4  3.2  Weighted-average common shares outstanding, assuming dilution 249.3  263.0  268.1  Potential shares which were anti-dilutive and excluded from weighted-average share computations 0.1  - 0.8  Basic earnings per share$ 9.94  $ 6.93  $ 5.82  Diluted earnings per share$ 9.84  $ 6.84  $ 5.75  Repurchase of Common Stock On February 16, 2021, our Board approved a $5.0 billion share repurchase program. On February 28, 2022, our Board approved a new $5.0 billion share repurchase program, replacing the then-existing program, which had $1.6 billion remaining available for repurchases as of January 29, 2022. 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 preserve liquidity in light of COVID-19-related uncertainties. On May 27, 2021, we announced our plan to repurchase more than $2.5 billion of shares in fiscal 2022. Information regarding the shares we repurchased and retired was as follows ($ and shares in millions, except per share amounts): 2022 2021 2020Total cost of shares repurchased$ 3,504  $ 318  $ 1,009  Average price per share$ 108.97  $ 102.63  $ 72.34  Number of shares repurchased and retired 32.2  3.1  14.0  On March 3, 2022, we announced our plans to spend approximately $1.5 billion on share repurchases in fiscal 2023. Between the end of fiscal 2022 on January 29, 2022, and March 16, 2022, we repurchased an incremental 2.4 million shares of our common stock at a cost of $239 million.
v3.22.0.1
Revenue
12 Months Ended
Jan. 29, 2022
Revenue [Abstract]  
Revenue 10.   Revenue We generate substantially all of our revenue from contracts with customers from the sale of products and services. Contract balances primarily consist of receivables and liabilities related to product merchandise not yet delivered to customers, unredeemed gift cards, services not yet completed and options that provide a material right to customers, such as our customer loyalty programs. Contract balances were as follows ($ in millions): January 29, 2022 January 30, 2021Receivables(1)$ 591  $ 618  Short-term contract liabilities included in: Unredeemed gift cards 316  317  Deferred revenue 1,103  711  Accrued liabilities 83  71  (1)Receivables are recorded net of allowances for doubtful accounts of $31 million and $32 million as of January 29, 2022, and January 30, 2021, respectively. During fiscal 2022 and fiscal 2021, $924 million and $923 million of revenue was recognized, respectively, that was included in the contract liabilities at the beginning of the respective periods. See Note 14, Segment and Geographic Information, for information on our revenue by reportable segment and product category.
v3.22.0.1
Income Taxes
12 Months Ended
Jan. 29, 2022
Income Taxes [Abstract]  
Income Taxes 11.   Income Taxes Reconciliations of the federal statutory income tax rate to income tax expense were as follows ($ in millions): 2022 2021 2020Federal income tax at the statutory rate$ 635  $ 499  $ 419  State income taxes, net of federal benefit 88  72  59  Change in unrecognized tax benefits (88) 20  19  Expense (benefit) from foreign operations (8) 20  (21) Other (53) (32) (24) Income tax expense$ 574  $ 579  $ 452  Effective income tax rate 19.0 % 24.3 % 22.7 % Earnings before income tax expense and equity in income of affiliates by jurisdiction were as follows ($ in millions): 2022 2021 2020United States$ 2,677  $ 2,203  $ 1,704  Foreign 347  174  289  Earnings before income tax expense and equity in income of affiliates$ 3,024  $ 2,377  $ 1,993  Income tax expense (benefit) was comprised of the following ($ in millions): 2022 2021 2020Current: Federal$ 367  $ 447  $ 261  State 132  117  73  Foreign 61  51  48  560  615  382  Deferred: Federal 22  (25) 56  State (9) (16) 8  Foreign 1  5  6  14  (36) 70  Income tax expense$ 574  $ 579  $ 452  Deferred taxes are the result of differences between the bases of assets and liabilities for financial reporting and income tax purposes. Deferred tax assets and liabilities were comprised of the following ($ in millions): January 29, 2022 January 30, 2021Deferred revenue$ 76  $ 67  Compensation and benefits 156  122  Stock-based compensation 31  29  Other accrued expenses 46  64  Operating lease liabilities 707  698  Loss and credit carryforwards 143  143  Other 45  48  Total deferred tax assets 1,204  1,171  Valuation allowance (128) (127) Total deferred tax assets after valuation allowance 1,076  1,044  Inventory (24) (13) Property and equipment (270) (258) Operating lease assets (676) (662) Goodwill and intangibles (64) (55) Other (39) (39) Total deferred tax liabilities (1,073) (1,027) Net deferred tax assets$ 3  $ 17  Deferred taxes were presented as follows ($ in millions): Balance Sheet LocationJanuary 29, 2022 January 30, 2021Other assets$ 25  $ 17  Long-term liabilities (22) - Net deferred tax assets$ 3  $ 17  As of January 29, 2022, we had deferred tax assets for net operating loss carryforwards from international operations of $108 million, of which $93 million will expire in various years through 2038 and the remaining amounts have no expiration; acquired U.S. federal net operating loss carryforwards of $11 million, of which $4 million will expire in various years between 2025 and 2029 and the remaining amounts have no expiration; U.S. federal foreign tax credit carryforwards of $7 million, which expire between 2024 and 2032; state credit carryforwards of $3 million, which expire between 2023 and 2028; state net operating loss carryforwards of $5 million, which expire between 2023 and 2041; international credit carryforwards of $1 million, which have no expiration; and international capital loss carryforwards of $8 million, which have no expiration. As of January 29, 2022, a valuation allowance of $128 million had been established, of which $7 million is against U.S. federal foreign tax credit carryforwards, $10 million is against international, federal and state capital loss carryforwards, $110 million is against international, acquired federal and state net operating loss carryforwards, and $1 million is against international and state credit carryforwards. The $1 million increase in fiscal 2022 is primarily due to acquired international and federal net operating loss carryforwards and the current year loss activity from international net operating loss carryforwards, partially offset by the expiration of certain international net operating loss carryforwards and the exchange rate impact on the valuation allowance against certain international net operating loss carryforwards. Reconciliations of changes in unrecognized tax benefits were as follows ($ in millions): 2022 2021 2020Balances at beginning of period$ 327  $ 318  $ 300  Gross increases related to prior period tax positions 3  17  1  Gross decreases related to prior period tax positions(1) (103) (25) (5) Gross increases related to current period tax positions 28  29  34  Settlements with taxing authorities (7) (1) - Lapse of statute of limitations (13) (11) (12) Balances at end of period$ 235  $ 327  $ 318  (1)Represents multi-jurisdiction, multi-year non-cash benefits from the resolution of certain discrete tax matters. Unrecognized tax benefits of $214 million, $307 million and $300 million as of January 29, 2022, January 30, 2021, and February 1, 2020, respectively, would favorably impact our effective income tax rate if recognized. We recognize interest and penalties (not included in the “unrecognized tax benefits” above), as well as interest received from favorable tax settlements, as components of income tax expense. Interest income of $20 million, interest expense of $4 million and interest expense of $11 million was recognized in fiscal 2022, fiscal 2021 and fiscal 2020, respectively. As of January 29, 2022, January 30, 2021, and February 1, 2020, we had accrued interest of $46 million, $74 million and $67 million, respectively. We file a consolidated U.S. federal income tax return, as well as income tax returns in various states and foreign jurisdictions. With few exceptions, we are no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by taxing authorities for years before fiscal 2011. Changes in state, federal and foreign tax laws may increase or decrease our tax contingencies. The timing of the resolution of income tax examinations and controversies is highly uncertain, and the amounts ultimately paid, if any, upon resolution of the issues raised by the taxing authorities may differ from the amounts accrued. It is reasonably possible that within the next twelve months we will receive additional assessments by various taxing authorities or reach resolutions of income tax examinations or controversies in one or more jurisdictions. These assessments, resolutions or law changes could result in changes to our gross unrecognized tax benefits. The actual amount of any changes could vary significantly depending on the ultimate timing and nature of any assessments, resolutions or law changes. An estimate of the amount or range of such changes cannot be made at this time.
v3.22.0.1
Benefit Plans
12 Months Ended
Jan. 29, 2022
Benefit Plans [Abstract]  
Benefit Plans 12.   Benefit Plans We sponsor retirement savings plans for employees meeting certain eligibility requirements. Participants may choose from various investment options, including a fund comprised of our company stock. Participants can contribute up to 50% of their eligible compensation annually as defined by the plan document, subject to Internal Revenue Service limitations. We match 100% of the first 3% of participating employees’ contributions and 50% of the next 2%. Employer contributions vest immediately. In fiscal 2021, we temporarily suspended the employer contribution match from June 1, 2020, to November 6, 2020, due to uncertainty surrounding the impact of COVID-19. Total employer contributions were $77 million, $44 million and $73 million in fiscal 2022, fiscal 2021 and fiscal 2020, respectively. We offer a non-qualified, unfunded deferred compensation plan for highly-compensated employees and members of our Board. Amounts contributed and deferred under the plan are invested in options offered under the plan and elected by the participants. The liability for compensation deferred under the plan was $24 million and $25 million as of January 29, 2022, and January 30, 2021, respectively, and is included in Long-term liabilities on our Consolidated Balance Sheets. See Note 5, Fair Value Measurements, for the fair value of assets held for deferred compensation.
v3.22.0.1
Contingencies
12 Months Ended
Jan. 29, 2022
Contingencies [Abstract]  
Contingencies 13.   Contingencies and Commitments 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 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 Consolidated Financial Statements. We had outstanding letters of credit with an aggregate fair value of $74 million as of January 29, 2022.
v3.22.0.1
Segment and Geographic Information
12 Months Ended
Jan. 29, 2022
Segment and Geographic Information [Abstract]  
Segment and Geographic Information 14.   Segment and Geographic Information Reportable segment and product category revenue information was as follows ($ in millions): 2022 2021 2020Revenue by reportable segment Domestic$ 47,830  $ 43,293  $ 40,114  International 3,931  3,969  3,524  Total revenue$ 51,761  $ 47,262  $ 43,638  2022 2021 2020Revenue by product category Domestic: Computing and Mobile Phones$ 20,693  $ 19,799  $ 17,819  Consumer Electronics 15,009  13,022  13,129  Appliances 6,784  5,489  4,493  Entertainment 2,963  2,769  2,388  Services 2,190  2,082  2,126  Other 191  132  159  Total Domestic revenue$ 47,830  $ 43,293  $ 40,114  International: Computing and Mobile Phones$ 1,785  $ 1,854  $ 1,580  Consumer Electronics 1,194  1,189  1,163  Appliances 383  384  317  Entertainment 312  310  209  Services 190  170  199  Other 67  62  56  Total International revenue$ 3,931  $ 3,969  $ 3,524  Operating income by reportable segment and the reconciliation to consolidated earnings before income tax expense and equity in income of affiliates, as well as asset information by reportable segment, were as follows ($ in millions): 2022 2021 2020Operating income by reportable segment Domestic(1)$ 2,795  $ 2,348  $ 1,907  International 244  43  102  Total operating income 3,039  2,391  2,009  Other income (expense): Gain on sale of investments - 1  1  Investment income and other 10  37  47  Interest expense (25) (52) (64) Earnings before income tax expense and equity in income of affiliates$ 3,024  $ 2,377  $ 1,993  Assets Domestic$ 16,016  $ 17,625  $ 14,247  International 1,488  1,442  1,344  Total assets$ 17,504  $ 19,067  $ 15,591  Capital expenditures Domestic$ 691  $ 680  $ 691  International 46  33  52  Total capital expenditures$ 737  $ 713  $ 743  Depreciation Domestic$ 738  $ 704  $ 681  International 49  55  59  Total depreciation$ 787  $ 759  $ 740  (1)The Domestic segment operating income includes certain operations that are based in foreign tax jurisdictions and primarily relate to sourcing products into the U.S. Geographic information was as follows ($ in millions): 2022 2021 2020Revenue from external customers U.S.$ 47,830  $ 43,293  $ 40,114  Canada 3,911  3,600  3,125  Other 20  369  399  Total revenue from external customers$ 51,761  $ 47,262  $ 43,638  Property and equipment, net U.S.$ 2,128  $ 2,135  $ 2,150  Canada 120  122  140  Other 2  3  38  Total property and equipment, net$ 2,250  $ 2,260  $ 2,328 
v3.22.0.1
Summary of Significant Accounting Policies (Policies)
12 Months Ended
Jan. 29, 2022
Summary of Significant Accounting Policies [Abstract]  
Description of Business Description of Business We are driven by our purpose to enrich lives through technology and our vision to personalize and humanize technology solutions for every stage of life. We accomplish this by leveraging our combination of technology and a human touch to meet our customers’ everyday needs, whether they come to us online, visit our stores or invite us into their homes. We have operations in the U.S. and Canada. We have two reportable segments: Domestic and International. The Domestic segment is comprised of our operations in all states, districts and territories of the U.S. and our Best Buy Health business, and includes the brand names Best Buy, Best Buy Ads, Best Buy Business, Best Buy Health, CST, Current Health, Geek Squad, Lively, Magnolia, Pacific Kitchen and Home and Yardbird and the domain names bestbuy.com, currenthealth.com, lively.com and yardbird.com. All of our former stores in Mexico were closed as of the end of the first quarter of fiscal 2022, and our International segment is now comprised of all operations in Canada under the brand names Best Buy, Best Buy Mobile and Geek Squad and the domain name bestbuy.ca. Refer to Note 3, Restructuring, for additional information on our Mexico exit. We acquired Current Health Ltd. (“Current Health”) and Two Peaks, LLC d/b/a Yardbird Furniture (“Yardbird”) during the fourth quarter of fiscal 2022, and Critical Signal Technologies, Inc. (“CST”) and BioSensics, LLC (“BioSensics”) in fiscal 2020. Refer to Note 2, Acquisitions, for additional information.
COVID-19 COVID-19 In March 2020, the World Health Organization declared the outbreak of novel coronavirus disease (“COVID-19”) as a pandemic. At various times throughout fiscal 2021, we operated our stores with a contactless, curbside-only operating model and temporarily suspended in-home delivery, repair and consultation services. Throughout fiscal 2022, most of our stores remained open as we continued to navigate the pandemic and its resurgences with a focus on the health and safety of our customers and employees. We continue to offer contactless curbside pick-up, as well as digital, phone and chat options for customers who prefer to shop that way. On March 27, 2020, in response to the COVID-19 pandemic, the U.S. Congress enacted the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), which among other things, contains provisions for deferral of the employer portion of social security taxes incurred through the end of calendar 2020 and an employee retention credit, a refundable payroll credit for 50% of wages and health benefits paid to employees not providing services due to the COVID-19 pandemic. As a result of the CARES Act, we deferred $142 million of qualified payroll taxes in fiscal 2021, of which half was repaid in fiscal 2022 and half will be repaid in fiscal 2023. We also claimed employee retention credits of $81 million in fiscal 2021 that were recorded as an offset to the related employee expenses within Selling, general and administrative (“SG&A”) expenses.
Basis of Presentation Basis of Presentation The consolidated financial statements include the accounts of Best Buy Co., Inc. and its consolidated subsidiaries. All intercompany balances and transactions are eliminated upon consolidation.
Use of Estimates in the Preparation of Financial Statements Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. ("GAAP") requires us to make estimates and assumptions. These estimates and assumptions affect the reported amounts in the consolidated financial statements, as well as the disclosure of contingent liabilities. Future results could be materially affected if actual results were to differ from these estimates and assumptions.
Fiscal Year Fiscal Year Our fiscal year ends on the Saturday nearest the end of January. Fiscal 2022, fiscal 2021 and fiscal 2020 included 52 weeks.
Adopted Accounting Pronouncements Adopted Accounting Pronouncements In the fourth quarter of fiscal 2022, we prospectively adopted Accounting Standards Update (“ASU”) 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, issued by the Financial Accounting Standards Board. This ASU requires entities to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The update will generally result in the recognition of contract assets and contract liabilities at amounts consistent with those recorded by the acquiree immediately before the acquisition date rather than at fair value. The adoption of the new standard did not have a material impact on our results of operations, cash flows or financial position.
Segment Information Segment Information Our business is organized into two reportable segments: Domestic (which is comprised of all states, districts and territories of the U.S. and our Best Buy Health business) and International (which is comprised of all operations in Canada and Mexico, prior to our exit from Mexico). Our chief operating decision maker (“CODM”) is our Chief Executive Officer. Our CODM has ultimate responsibility for enterprise decisions, including determining resource allocation for, and monitoring the performance of, the consolidated enterprise, the Domestic reportable segment and the International reportable segment.
Business Combinations Business Combinations We account for business combinations under the acquisition method of accounting. This method requires the recording of acquired assets and assumed liabilities at their acquisition date fair values. The excess of the purchase price over the fair value of assets acquired and liabilities assumed is recorded as goodwill. Results of operations related to business combinations are included prospectively beginning with the date of acquisition and transaction costs related to business combinations are recorded within SG&A.
Cash, Cash Equivalents and Restricted Cash Cash, Cash Equivalents and Restricted Cash Cash, cash equivalents and restricted cash reported on our Consolidated Balance Sheets is reconciled to the total shown on our Consolidated Statements of Cash Flows as follows ($ in millions): January 29, 2022 January 30, 2021 February 1, 2020Cash and cash equivalents$ 2,936  $ 5,494  $ 2,229  Restricted cash included in Other current assets 269  131  126  Total cash, cash equivalents and restricted cash$ 3,205  $ 5,625  $ 2,355  Cash primarily consists of cash on hand and bank deposits. Cash equivalents consist of money market accounts, money market funds and time deposits with an original maturity of three months or less when purchased. The amounts of cash equivalents as of January 29, 2022, and January 30, 2021, were $1,584 million and $3,559 million, respectively, and the weighted-average interest rates were 0.2% and 0.6%, respectively. Amounts included in restricted cash are primarily restricted to use for self-insurance liabilities and product protection plans provided under our Best Buy Totaltech membership offering.
Receivables Receivables Receivables consist primarily of amounts due from vendors for various vendor funding programs, banks for customer credit card and debit card transactions, online marketplace partnerships and mobile phone network operators for device sales and commissions. Receivables are stated at their carrying values, net of a reserve for expected credit losses, which is primarily based on historical collection trends. Our allowances for uncollectible receivables were $39 million and $38 million as of January 29, 2022, and January 30, 2021, respectively. We had $52 million and $88 million of write-offs in fiscal 2022 and fiscal 2021, respectively.
Merchandise Inventories Merchandise Inventories Merchandise inventories are recorded at the lower of cost or net realizable value. The weighted-average method is used to determine the cost of inventory which includes costs of in-bound freight to move inventory into our distribution centers. Also included in the cost of inventory are certain vendor allowances. Costs associated with storing and transporting merchandise inventories to our retail stores are expensed as incurred and included within Cost of sales on our Consolidated Statements of Earnings. Our inventory valuation also reflects markdown adjustments for the excess of the cost over the net recovery we expect to realize from the ultimate disposition of inventory, including consideration of any rights we may have to return inventory to vendors for a refund, and establishes a new cost basis. Subsequent changes in facts or circumstances do not result in the reversal of previously recorded markdown adjustments or an increase in the newly established cost basis. Our inventory valuation reflects adjustments for physical inventory losses (resulting from, for example, theft). Physical inventory is maintained through a combination of full location counts (typically once per year) and more regular cycle counts.
Property and Equipment Property and Equipment Property and equipment is recorded at cost. We depreciate property and equipment to its residual value using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are depreciated over the shorter of their estimated useful lives or the period from the date the assets are placed in service to the end of the lease term, which includes optional renewal periods if they are reasonably certain. Accelerated depreciation methods are generally used for income tax purposes. When property is retired or otherwise disposed of, the cost and accumulated depreciation are removed from our Consolidated Balance Sheets and any resulting gain or loss is reflected on our Consolidated Statements of Earnings. Repairs and maintenance costs are expensed as incurred. Major renewals or replacements that substantially extend the useful life of an asset are capitalized and depreciated. Costs associated with the acquisition or development of software for internal use are capitalized and amortized over the expected useful life of the software, generally from two years to five years. A subsequent addition, modification or upgrade to internal-use software is capitalized to the extent that it enhances the software's functionality. Capitalized software is included in Fixtures and equipment on our Consolidated Balance Sheets. Software maintenance and training costs are expensed in the period incurred. The costs of developing software for sale to customers is expensed as incurred until technological feasibility is established, which generally leads to expensing substantially all costs. Estimated useful lives by major asset category are as follows (in years): Asset CategoryUseful LifeBuildings5-35Leasehold improvements5-10Fixtures and equipment2-15
Impairment of Long-Lived Assets Impairment of Long-Lived Assets Long-lived assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. When evaluating long-lived assets with impairment indicators for potential impairment, we first compare the carrying value of the asset to its estimated undiscounted future cash flows. If the sum of the estimated undiscounted future cash flows is less than the carrying value of the asset, we calculate an impairment loss. The impairment loss calculation compares the carrying value of the asset to its estimated fair value, which is typically based on estimated discounted future cash flows. We recognize an impairment loss if the amount of the asset’s carrying value exceeds the asset’s estimated fair value. We evaluate locations for triggering events on a quarterly basis. For store locations, our primary indicator that asset carrying values may not be recoverable is negative store operating income for the most recent 12-month period. We also monitor other factors when evaluating store locations for impairment, including significant changes in the manner of use or expected life of the assets or significant changes in our business strategies. When reviewing long-lived assets for impairment, we group long-lived assets with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. For example, long-lived assets deployed at store locations are reviewed for impairment at the individual store level, which involves comparing the net carrying value of all assets to the net cash flow projections for each store. In addition, we conduct separate impairment reviews at other levels as appropriate, for example, to evaluate potential impairment of assets shared by several areas of operations, such as information technology systems. In the first quarter of fiscal 2021, we concluded that the COVID-19 pandemic’s impact on our store operations was a triggering event to review for potential impairments of our store assets. As a result of this analysis, we recorded an immaterial asset impairment charge for a small number of stores within SG&A. No other triggering events were identified for the periods presented.
Leases Leases The majority of our lease obligations are real estate operating leases used in our retail and distribution operations. Our finance leases are primarily equipment-related. For any lease with an initial term in excess of 12 months, the related lease assets and liabilities are recognized on our Consolidated Balance Sheets as either operating or finance leases at the inception of an agreement where it is determined that a lease exists. We have lease agreements that contain both lease and non-lease components. For lease agreements entered into or reassessed after the adoption of Accounting Standard’s Codification 842, Leases, in fiscal 2020, we have elected to combine lease and non-lease components for all classes of assets. Leases with an initial term of 12 months or less are not recorded on our Consolidated Balance Sheets; we recognize lease expense for these leases on a straight-line basis over the lease term. Operating lease assets represent the right to use an underlying asset for the lease term and operating lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are recognized based on the present value of future payments over the lease term at the commencement date. We estimate the incremental borrowing rate for each lease based on an evaluation of our credit ratings and the prevailing market rates for collateralized debt in a similar economic environment with similar payment terms and maturity dates commensurate with the terms of the lease. Our operating leases also typically require payment of real estate taxes, common area maintenance and insurance. These components comprise the majority of our variable lease cost and are excluded from the present value of our lease obligations. In instances where they are fixed, they are included due to our election to combine lease and non-lease components. Operating lease assets also include prepaid lease payments and initial direct costs and are reduced by lease incentives. Our lease terms generally do not include options to extend or terminate the lease unless it is reasonably certain that the option will be exercised. Fixed payments may contain predetermined fixed rent escalations. We recognize the related rent expense on a straight-line basis from the commencement date to the end of the lease term.
Goodwill and Intangible Assets Goodwill and Intangible Assets Goodwill Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. We test goodwill for impairment annually in the fiscal fourth quarter or whenever events or circumstances indicate the carrying value may not be recoverable. We monitor the existence of potential impairment indicators throughout the fiscal year. We test for goodwill impairment at the reporting unit level. Reporting units are determined by identifying components of operating segments which constitute businesses for which discrete financial information is available and is regularly reviewed by segment management. We have goodwill in two reporting units – Best Buy Domestic and Best Buy Health – with carrying values of $491 million and $893 million, respectively, as of January 29, 2022. Our detailed impairment testing involves comparing the fair value of each reporting unit with its carrying value, including goodwill. Fair value reflects the price a potential market participant would be willing to pay for the reporting unit in an arms-length transaction and typically requires analysis of discounted cash flows and other market information, such as trading multiples and other observable metrics. If the fair value of a reporting unit exceeds its carrying value, then it is concluded that no goodwill impairment has occurred. If the carrying value of a reporting unit exceeds its fair value, we recognize an impairment loss in an amount equal to the excess, not to exceed the total amount of goodwill allocated to that reporting unit. Intangible Assets Our valuation of identifiable intangible assets acquired is based on information and assumptions available to us at the time of acquisition, using income and market approaches to determine fair value, as appropriate. We amortize our definite-lived intangible assets over the estimated useful life of the asset. We review these assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets might not be recoverable and monitor for the existence of potential impairment indicators throughout the fiscal year. We record an impairment loss for any portion of the carrying value that is not recoverable.
Derivatives Derivatives Net Investment Hedges We use foreign exchange forward contracts to hedge against the effect of Canadian dollar exchange rate fluctuations on a portion of our net investment in our Canadian operations. The contracts have terms of up to 12 months. For a net investment hedge, we recognize changes in the fair value of the derivative as a component of foreign currency translation within other comprehensive income to offset a portion of the change in translated value of the net investment being hedged, until the investment is sold or liquidated. We limit recognition in net earnings of amounts previously recorded in other comprehensive income to circumstances such as complete or substantially complete liquidation of the net investment in the hedged foreign operation. We report the gains and losses, if any, related to the amount excluded from the assessment of hedge effectiveness in net earnings. Interest Rate Swaps We utilized “receive fixed-rate, pay variable-rate” interest rate swaps to mitigate the effect of interest rate fluctuations on our $500 million principal amount of notes due October 1, 2028 (“2028 Notes”). Our interest rate swap contracts are considered perfect hedges because the critical terms and notional amounts match those of our fixed-rate debt being hedged and are, therefore, accounted for as fair value hedges using the shortcut method. Under the shortcut method, we recognize the change in the fair value of the derivatives with an offsetting change to the carrying value of the debt. Accordingly, there is no impact on our Consolidated Statements of Earnings from the fair value of the derivatives. Derivatives Not Designated as Hedging Instruments We use foreign currency forward contracts to manage the impact of fluctuations in foreign currency exchange rates relative to recognized receivable and payable balances denominated in non-functional currencies. The contracts generally have terms of up to 12 months. These derivative instruments are not designated in hedging relationships and, therefore, we record gains and losses on these contracts directly to our Consolidated Statements of Earnings.
Fair Value Fair Value Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. To measure fair value, we use a three-tier valuation hierarchy based upon observable and non-observable inputs: Level 1 — Unadjusted quoted prices that are available in active markets for identical assets or liabilities at the measurement date.  Level 2 — Significant other observable inputs available at the measurement date, other than quoted prices included in Level 1, either directly or indirectly, including: • Quoted prices for similar assets or liabilities in active markets;• Quoted prices for identical or similar assets or liabilities in non-active markets;• Inputs other than quoted prices that are observable for the asset or liability; and• Inputs that are derived principally from or corroborated by other observable market data. Level 3 — Significant unobservable inputs that cannot be corroborated by observable market data and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions. The fair value hierarchy requires the use of observable market data when available. In instances where the inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability. Assets and liabilities that are measured at fair value on a nonrecurring basis relate primarily to our tangible fixed assets, goodwill and other intangible assets, which are remeasured when the derived fair value is below carrying value on our Consolidated Balance Sheets. For these assets, we do not periodically adjust carrying value to fair value, except in the event of impairment. When we determine that impairment has occurred, the carrying value of the asset is reduced to fair value and the difference is recorded within SG&A and Restructuring charges on our Consolidated Statements of Earnings for non-restructuring and restructuring charges, respectively. Fair value remeasurements are based on significant unobservable inputs (Level 3). Fixed asset fair values are primarily derived using a discounted cash flow (“DCF”) model to estimate the present value of net cash flows that the asset or asset group was expected to generate. The key inputs to the DCF model generally include our forecasts of net cash generated from investment operations, as well as an appropriate discount rate.
Insurance Insurance We are self-insured for certain losses related to workers’ compensation, medical, general liability and auto claims; however, we obtain third-party excess insurance coverage to limit our exposure to certain claims. Some of these self-insured losses are managed through a wholly-owned insurance captive. Liabilities associated with these losses include estimates of both claims filed and losses incurred but not yet reported. We utilize valuations provided by qualified, independent third-party actuaries as well as internal insurance and risk expertise. Our self-insured liabilities included on our Consolidated Balance Sheets were as follows ($ in millions): January 29, 2022 January 30, 2021Accrued liabilities$ 80  $ 101  Long-term liabilities 51  45  Total$ 131  $ 146 
Income Taxes Income Taxes We account for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. We record a valuation allowance to reduce the carrying amounts of deferred tax assets if it is more likely than not that such assets will not be realized. In determining our provision for income taxes, we use an annual effective income tax rate based on annual income, permanent differences between book and tax income and statutory income tax rates. The effective income tax rate also reflects our assessment of the ultimate outcome of tax audits. We adjust our annual effective income tax rate as additional information on outcomes or events becomes available. Discrete events, such as audit settlements or changes in tax laws, are recognized in the period in which they occur. Our income tax returns are routinely examined by domestic and foreign tax authorities. At any one time, multiple tax years are subject to audit by the various taxing authorities. In evaluating the exposures associated with our various tax filing positions, we may record a liability for such exposures. A number of years may elapse before a particular matter, for which we have established a liability, is audited and fully resolved or clarified. We adjust our liability for unrecognized tax benefits and income tax provisions in the period in which an uncertain tax position is effectively settled, the statute of limitations expires for the relevant taxing authority to examine the tax position or when more information becomes available. We include our liability for unrecognized tax benefits, including accrued penalties and interest, in Long-term liabilities on our Consolidated Balance Sheets and in Income tax expense on our Consolidated Statements of Earnings.
Accrued Liabilities Accrued Liabilities The major components of accrued liabilities are sales tax liabilities, advertising accruals, sales return reserves, customer deposits and insurance liabilities.
Long-Term Liabilities Long-Term Liabilities The major components of long-term liabilities are unrecognized tax benefits, income tax liabilities and self-insurance reserves.
Foreign Currency Foreign Currency Foreign currency denominated assets and liabilities are translated into U.S. dollars using the exchange rates in effect at our Consolidated Balance Sheet dates. Results of operations and cash flows are translated using the average exchange rates throughout the periods. The effect of exchange rate fluctuations on the translation of assets and liabilities is included as a component of shareholders' equity in accumulated other comprehensive income. Gains and losses from foreign currency transactions, which are included in SG&A, have not been significant in any period presented.
Revenue Recognition Revenue Recognition We generate revenue from the sale of products and services, both as a principal and as an agent. Revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the transaction price consideration that we expect to receive in exchange for those goods or services. Our revenue excludes sales and usage-based taxes collected and is reported net of sales refunds, which includes an estimate of future returns and contract cancellations based on historical refund rates, with a corresponding reduction to cost of sales. We defer the revenue associated with any unsatisfied performance obligation until the obligation is satisfied, i.e., when control of a product is transferred to the customer or a service is completed. Product Revenue Product revenue is recognized when the customer takes physical control, either in our stores or at their home. Any fees charged to customers for delivery are a component of the transaction price and are recognized when delivery has been completed. We use delivery information to determine when to recognize revenue for delivered products and any related delivery fee revenue. In most cases, we are the principal to product contracts as we have control of the physical products prior to transfer to the customer. Accordingly, revenue is recognized on a gross basis. For certain sales, primarily activation-based software licenses and third-party stored-value cards, we are the sales agent providing access to the content and recognize commission revenue net of amounts due to third parties who fulfill the performance obligation. For these sales, control passes upon providing access of the content to the customer. Warranty obligations associated with the sale of our exclusive brands products are assurance-type warranties that are a guarantee of the product’s intended functionality and, therefore, do not represent a distinct performance obligation within the context of the contract. Services - When we are the principal We recognize revenue for services, such as installation, set-up, software troubleshooting, product repair, consultation and educational classes once the service is completed, as this is when the customer has the ability to direct the use of and obtain the benefits of the service or serviced product. Payment terms are typically at the point of sale, but may also occur upon completion of the service. Our service contracts are primarily with retail customers and merchandise vendors (for factory warranty repairs). For technical support membership contracts (for example, our Totaltech membership offering), we are responsible for fulfilling the support services to customers. These contracts have terms ranging from one month to one year and typically contain several performance obligations. Payment for the membership contracts is due at the start of the contract period. We have determined that our contracts do not include a significant financing component. For performance obligations provided over time, we recognize revenue on a usage basis, an input method of measuring progress over the related contract term. This method is derived by analysis of historical utilization patterns as this depicts when customers use the services and, accordingly, when delivery of the performance obligation occurs. There is judgment in (1) determining the level at which we apply a portfolio approach to these contracts; (2) measuring the relative standalone selling price for performance obligations within these contracts to the extent that they are only bundled and sold to customers with other performance obligations, or alternatively, using a cost-plus margin approach; and (3) assessing the pattern of delivery across multiple portfolios of customers, including estimating current and future usage patterns. When insufficient history is available to estimate usage, we generally recognize revenue ratably over the life of the contract. Services - When we are the agent On behalf of third-party underwriters, we sell various hardware protection plans to customers that provide extended warranty coverage on their device purchases. Such plans have terms ranging from one month to five years. Payment is due at the point of sale. Third-party underwriters assume the risk associated with the coverage and are primarily responsible for fulfillment. We record the net commissions (the amount charged to the customer less the premiums remitted to the underwriter) as revenue at a point in time when the corresponding product revenue is recognized. In addition, in some cases we are eligible to receive profit-sharing payments, a form of variable consideration, which are dependent upon the financial performance of the underwriter’s protection plan portfolio. We do not share in any losses of the portfolio. We record any profit share as revenue once the uncertainty associated with the portfolio period, which is calendar-year based, is no longer constrained using the expected value method. This typically occurs during our fiscal fourth quarter, with payment of the profit share occurring in the subsequent fiscal year. Service and commission revenues earned from the sale of extended warranties represented 1.4%, 1.6% and 1.8% of revenue in fiscal 2022, fiscal 2021 and fiscal 2020, respectively. We earn commissions from mobile network carriers to sell service contracts on their platforms. Revenue is recognized when control passes at a point in time upon sale of the contract and activation of the customer on the provider’s platform. The time between when we activate the service with the customer and when we receive payment from the content provider is generally within 30 to 60 days, which is after control has passed. Activation commissions are subject to repayment to the carrier primarily in the event of customer cancellation for specified time periods after the sale. Commission revenue from mobile network carriers is reported net of the expected cancellations, which we estimate based on historical cancellation rates. Credit Card Revenue We offer promotional financing and credit cards issued by third-party banks that manage and directly extend credit to our customers. Approximately 25% of revenue in fiscal 2022, fiscal 2021 and fiscal 2020 was transacted using one of our branded cards. We provide a license to our brand and marketing services, and we facilitate credit applications in our stores and online. The banks are the sole owners of the accounts receivable generated under the program and, accordingly, we do not hold any customer receivables related to these programs and act as an agent in the financing transactions with customers. We are eligible to receive a profit share from certain of our banking partners based on the annual performance of their corresponding portfolio, and we receive quarterly payments based on forecasts of full-year performance. This is a form of variable consideration. We record such profit share as revenue over time using the most likely amount method, which reflects the amount earned each quarter when it is determined that the likelihood of a significant revenue reversal is not probable, which is typically quarterly. Profit-share payments occur quarterly, shortly after the end of each program quarter. Best Buy Gift Cards We sell Best Buy gift cards to our customers in our retail stores, online and through select third parties. Our gift cards do not expire. We recognize revenue from gift cards when the card is redeemed by the customer. We also recognize revenue for the portion of gift card values that is not expected to be redeemed (“breakage”). We estimate breakage based on historical patterns and other factors, such as laws and regulations applicable to each jurisdiction. We recognize breakage revenue using a method that is consistent with customer redemption patterns. Typically, over 90% of gift card redemptions (and therefore recognition of over 90% of gift card breakage revenue) occur within one year of issuance. There is judgment in assessing (1) the level at which we group gift cards for analysis of breakage rates, (2) redemption patterns, and (3) the ultimate value of gift cards which we do not expect to be redeemed. Gift card breakage income was $49 million, $33 million and $35 million in fiscal 2022, fiscal 2021, and fiscal 2020, respectively. Sales Incentives We frequently offer sales incentives that entitle our customers to receive a gift card at the time of purchase or an instant savings coupon that can be redeemed towards a future purchase. For sales incentives issued to customers that are only earned in conjunction with the purchase of products or services, the sales incentives represent an option that is a material right and, accordingly, is a performance obligation in the contract. The revenue allocated to these sales incentives is deferred as a contract liability and is based on the cards that are projected to be redeemed. We recognize revenue for this performance obligation when it is redeemed by the customer or when it is not expected to be redeemed. There is judgment in determining (1) the level at which we group incentives based on similar redemption patterns, (2) future redemption patterns, and (3) the ultimate number of incentives that we do not expect to be redeemed. We also issue coupons that are not earned in conjunction with a purchase of a product or service, typically as part of targeted marketing activities. This is not a performance obligation, but is recognized as a reduction of the transaction price when redeemed by the customer. Customer Loyalty Programs We have customer loyalty programs which allow members to earn points for each purchase completed with us or when using our co-branded credit cards. Points earned enable members to receive a certificate that may be redeemed on future purchases. Depending on the customer’s membership level within our loyalty program, certificate expirations typically range from 2 to 6 months from the date of issuance. Our loyalty programs represent customer options that provide a material right and, accordingly, are performance obligations for each applicable contract. The relative standalone selling price of points earned by our loyalty program members is deferred and included in Deferred revenue on our Consolidated Balance Sheets based on the percentage of points that are projected to be redeemed. We recognize revenue for this performance obligation over time when a certificate is estimated to be redeemed by the customer. There is inherent judgment in estimating the value of our customer loyalty programs as they are susceptible to factors outside of our influence, particularly customer redemption activity. However, we have significant experience in estimating the amount and timing of redemptions of certificates, based primarily on historical data.
Cost of Sales and Selling, General and Administrative Expenses Cost of Sales and Selling, General and Administrative Expenses The following tables illustrate the primary costs classified in each major expense category. Cost of SalesCost of products sold, including:Freight expenses associated with moving merchandise inventories from our vendors to our distribution centersVendor allowances that are not a reimbursement of specific, incremental and identifiable costsCash discounts on payments to merchandise vendorsPhysical inventory lossesMarkdownsCustomer shipping and handling expensesCosts associated with operating our distribution network, including payroll and benefit costs, occupancy costs and depreciationFreight expenses associated with moving merchandise inventories from our distribution centers to our retail storesCost of services provided, including:Payroll and benefit costs for services employees associated with providing the serviceCost of replacement parts and related freight expenses Selling, General and Administrative ExpensesPayroll and benefit costs for retail and corporate employeesOccupancy and maintenance costs of retail, services and corporate facilitiesDepreciation and amortization related to retail, services and corporate assetsAdvertising costsVendor allowances that are a reimbursement of specific, incremental and identifiable costsTender costs, including bank charges and costs associated with credit and debit card interchange feesCharitable contributionsOutside and outsourced service feesLong-lived asset impairment chargesOther administrative costs, such as supplies, travel and lodging
Vendor Allowances Vendor Allowances We receive funds from our merchandise vendors through a variety of programs and arrangements, primarily in the form of purchases-based or sales-based volumes and for product advertising and placement. We recognize allowances based on purchases and sales as a reduction of cost of sales when the associated inventory is sold. Allowances for advertising and placement are recognized as a reduction of cost of sales ratably over the corresponding performance period. Funds that are determined to be a reimbursement of specific, incremental and identifiable costs incurred to sell a vendor’s products are recorded as an offset to the related expense within SG&A when incurred.
Advertising Costs Advertising Costs Advertising costs, which are included in SG&A, are expensed the first time the advertisement runs. Advertising costs consist primarily of digital and television advertisements, as well as support costs. Advertising expenses were $915 million, $819 million and $840 million in fiscal 2022, fiscal 2021 and fiscal 2020, respectively.
Stock-Based Compensation Stock-Based Compensation We recognize stock-based compensation expense for the fair value of our stock-based compensation awards, which is determined based on the closing market price of our stock at the date of grant for time-based and performance-based share awards, and Monte-Carlo simulation for market-based share awards. Compensation expense is recognized on a straight-line basis over the period in which services are required, except where there are performance-based share awards that vest on a graded basis, in which case the expense for these awards is front-loaded or recognized on a graded-attribution basis. Forfeitures are expensed as incurred or upon termination.
Comprehensive Income (Loss) Comprehensive Income (Loss) Comprehensive income (loss) is computed as net earnings plus certain other items that are recorded directly to shareholders’ equity. In addition to net earnings, the significant component of comprehensive income (loss) includes foreign currency translation adjustments.
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Summary of Significant Accounting Policies (Tables)
12 Months Ended
Jan. 29, 2022
Summary of Significant Accounting Policies [Abstract]  
Schedule of Cash and Cash Equivalents January 29, 2022 January 30, 2021 February 1, 2020Cash and cash equivalents$ 2,936  $ 5,494  $ 2,229  Restricted cash included in Other current assets 269  131  126  Total cash, cash equivalents and restricted cash$ 3,205  $ 5,625  $ 2,355 
Property, Plant and Equipment Asset CategoryUseful LifeBuildings5-35Leasehold improvements5-10Fixtures and equipment2-15
Schedule of Self Insurance Liability January 29, 2022 January 30, 2021Accrued liabilities$ 80  $ 101  Long-term liabilities 51  45  Total$ 131  $ 146 
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Restructuring (Tables)
12 Months Ended
Jan. 29, 2022
Restructuring Cost and Reserve [Line Items]  
Composition of Restructuring Charges 2022 2021 2020Mexico Exit and Strategic Realignment(1) $ (41) $ 277  $ - Fiscal 2020 U.S. Retail Operating Model Changes 1  - 41  Total $ (40) $ 277  $ 41  (1)Includes ($6) million and $23 million related to inventory markdowns recorded in Cost of sales on our Consolidated Statements of Earnings in fiscal 2022 and fiscal 2021, respectively.
Mexico Exit And Strategic Realignment [Member]  
Restructuring Cost and Reserve [Line Items]  
Composition of Restructuring Charges 2022 Statement of Earnings LocationDomestic International TotalInventory markdownsCost of sales$ - $ (6) $ (6) Asset impairments(1)Restructuring charges - 6  6  Termination benefitsRestructuring charges (40) (1) (41) $ (40) $ (1) $ (41) 2021 Statement of Earnings LocationDomestic International TotalInventory markdownsCost of sales$ - $ 23  $ 23  Asset impairments(1)Restructuring charges 10  57  67  Termination benefitsRestructuring charges 123  20  143  Currency translation adjustmentRestructuring charges - 39  39  Other(2)Restructuring charges - 5  5  $ 133  $ 144  $ 277  Cumulative Amount as of January 29, 2022 Statement of Earnings LocationDomestic International TotalInventory markdownsCost of sales$ - $ 17  $ 17  Asset impairments(1)Restructuring charges 10  63  73  Termination benefitsRestructuring charges 83  19  102  Currency translation adjustmentRestructuring charges - 39  39  Other(2)Restructuring charges - 5  5  $ 93  $ 143  $ 236  (1)Remaining net carrying value of asset impairments approximates fair value and was immaterial as of January 29, 2022, and January 30, 2021.(2)Other charges are primarily comprised of contract termination costs.
Restructuring Accrual Activity Termination Benefits Domestic International TotalBalances as of February 1, 2020 $ - $ - $ - Charges 123  20  143  Cash payments (19) - (19) Balances as of January 30, 2021 104  20  124  Charges 4  - 4  Cash payments (57) (18) (75) Adjustments(1) (44) (1) (45) Changes in foreign currency exchange rates - (1) (1) Balances as of January 29, 2022 $ 7  $ - $ 7 
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Goodwill and Intangible Assets (Tables)
12 Months Ended
Jan. 29, 2022
Goodwill and Intangible Assets [Abstract]  
Gross Carrying Amount of Goodwill and Cumulative Goodwill Impairment January 29, 2022 January 30, 2021 Gross Carrying Amount Cumulative Impairment Gross Carrying Amount Cumulative ImpairmentDomestic$ 1,451  $ (67) $ 1,053  $ (67) International 608  (608) 608  (608) Total$ 2,059  $ (675) $ 1,661  $ (675)
Definite-Lived Intangible Assets January 29, 2022 January 30, 2021 Weighted-Average Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Useful Life Remaining as of January 29, 2022 (in years)Customer relationships$ 360  $ 180  $ 339  $ 124  5.8  Tradenames 108  38  81  24  2.6  Developed technology 64  39  56  27  2.9  Total$ 532  $ 257  $ 476  $ 175  4.7 
Amortization Expense Statement of Earnings Location2022 2021 2020Amortization expenseSG&A $ 82  $ 80  $ 72 
Amortization Expense Expected to be Recognized Amount Fiscal 2023 $ 86  Fiscal 2024 60  Fiscal 2025 22  Fiscal 2026 21  Fiscal 2027 18  Thereafter 68 
v3.22.0.1
Fair Value Measurements (Tables)
12 Months Ended
Jan. 29, 2022
Fair Value Measurements [Abstract]  
Fair Value, Assets and Liabilities Measured on Recurring Basis Fair Value Fair Value atAssets Balance Sheet Location(1) Hierarchy January 29, 2022 January 30, 2021Money market funds(2) Cash and cash equivalents Level 1 $ 548  $ 1,575  Time deposits(3) Cash and cash equivalents Level 2 278  865  Time deposits(3) Other current assets Level 2 - 65  Marketable securities that fund deferred compensation(4) Other assets Level 1 54  53  Interest rate swap derivative instruments(5) Other assets Level 2 50  91  (1)Balance sheet location is determined by the 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 select mutual fund performance that trade with sufficient frequency and volume to obtain pricing information on an ongoing basis. (5)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. Refer to Note 6, Derivative Instruments, for additional information.
Fair Value of Financial Instruments January 29, 2022 January 30, 2021 Fair Value Carrying Value Fair Value Carrying ValueLong-term debt(1)$ 1,205  $ 1,200  $ 1,331  $ 1,241  (1)Excludes debt discounts, issuance costs and finance lease obligations
v3.22.0.1
Derivative Instruments (Tables)
12 Months Ended
Jan. 29, 2022
Derivative Instruments [Abstract]  
Notional Amount of Derivative Instruments Notional AmountContract TypeJanuary 29, 2022 January 30, 2021Derivatives designated as net investment hedges$ 155  $ 153  Derivatives designated as interest rate swap contracts 500  500  No hedging designation (foreign exchange forward contracts) 68  51  Total$ 723  $ 704 
Effects of Interest Rate Derivatives and Adjustments to LTD on Earnings Gain (Loss) RecognizedContract TypeStatement of Earnings Location2022 2021Interest rate swap contractsInterest expense$ (41) $ 2  Adjustments to carrying value of long-term debtInterest expense 41  (2) Total $ - $ -
v3.22.0.1
Leases (Tables)
12 Months Ended
Jan. 29, 2022
Leases [Abstract]  
Supplemental Balance Sheet Information Balance Sheet Location January 29, 2022 January 30, 2021Assets Operating leasesOperating lease assets $ 2,654  $ 2,612  Finance leasesProperty under finance leases, net(1) 45  37  Total lease assets $ 2,699  $ 2,649  Liabilities Current: Operating leasesCurrent portion of operating lease liabilities $ 648  $ 693  Finance leasesCurrent portion of long-term debt 13  14  Non-current: Operating leasesLong-term operating lease liabilities 2,061  2,012  Finance leasesLong-term debt 27  24  Total lease liabilities $ 2,749  $ 2,743  (1)Finance leases were recorded net of accumulated depreciation of $46 million and $36 million as of January 29, 2022, and January 30, 2021, respectively.
Components of Lease Cost Statement of Earnings Location 2022 2021Operating lease cost(1)Cost of sales and SG&A(2) $ 770  $ 777  Finance lease cost: Depreciation of lease assetsCost of sales and SG&A(2) 13  13  Interest on lease liabilitiesInterest expense 1  1  Variable lease costCost of sales and SG&A(2) 238  249  Sublease incomeSG&A (13) (16) Total lease cost $ 1,009  $ 1,024  (1)Includes short-term leases, which are immaterial.(2)Supply chain-related amounts are included in Cost of sales.
Other Information 2022 2021Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 814  $ 795  Operating cash flows from finance leases 1  1  Financing cash flows from finance leases 18  15  Lease assets obtained in exchange for new lease liabilities: Operating leases 759  608  Finance leases 21  33  Weighted average remaining lease term (in years): Operating leases 5.1  5.1  Finance leases 5.0  5.6  Weighted average discount rate: Operating leases 2.5 % 2.9 %Finance leases 2.4 % 2.9 %
Future Lease Payments Operating Leases(1) Finance Leases(1)Fiscal 2023 $ 706  $ 15  Fiscal 2024 644  12  Fiscal 2025 521  8  Fiscal 2026 390  4  Fiscal 2027 277  1  Thereafter 354  4  Total future undiscounted lease payments 2,892  44  Less imputed interest 183  4  Total reported lease liability $ 2,709  $ 40  (1)Lease payments exclude $51 million of legally binding fixed costs for leases signed but not yet commenced.
v3.22.0.1
Debt (Tables)
12 Months Ended
Jan. 29, 2022
Debt [Abstract]  
Schedule of Long-term Debt January 29, 2022 January 30, 20212028 Notes$ 500  $ 500  2030 Notes 650  650  Interest rate swap valuation adjustments 50  91  Subtotal 1,200  1,241  Debt discounts and issuance costs (11) (12) Finance lease obligations 40  38  Total long-term debt 1,229  1,267  Less: current portion 13  14  Total long-term debt, less current portion$ 1,216  $ 1,253 
v3.22.0.1
Shareholders' Equity (Tables)
12 Months Ended
Jan. 29, 2022
Shareholders' Equity [Abstract]  
Stock-based compensation expense 2022 2021 2020Share awards: Time-based$ 109  $ 99  $ 95  Performance-based 17  21  28  Market-based 12  11  13  Stock options 3  4  7  Stock-based compensation expense 141  135  143  Income tax benefits 26  25  26  Stock-based compensation expense, net of tax$ 115  $ 110  $ 117 
Black Scholes valuation model assumptions Valuation Assumptions2021 2020Risk-free interest rate(1) 0.1 %- 0.9 % 1.9 %- 2.5 %Expected dividend yield 2.9 % 2.9 %Expected stock price volatility(2) 56 % 36 %Expected life of stock options (in years)(3) 6.3  7.4  (1)Based on the U.S. Treasury constant maturity interest rate whose term is consistent with the expected life of our stock options.(2)In projecting expected stock price volatility, we consider both the historical volatility of our stock price as well as implied volatilities from exchange-traded options on our stock.(3)Estimated based upon historical experience.
Summary of the status of nonvested market-based share awards Market-Based Share AwardsShares Weighted-Average Fair Value per ShareOutstanding as of January 30, 2021 558  $ 65.88  Granted 147  $ 132.21  Adjustment for performance achievement 76  $ 74.30  Distributed (225) $ 74.30  Forfeited (32) $ 65.49  Outstanding as of January 29, 2022 524  $ 80.78 
Summary of the status of nonvested performance-based share awards Performance-Based Share AwardsShares Weighted-Average Fair Value per ShareOutstanding as of January 30, 2021 929  $ 63.20  Granted 99  $ 118.19  Adjustment for performance achievement 78  $ 72.24  Distributed (366) $ 69.29  Forfeited (67) $ 55.56  Outstanding as of January 29, 2022 673  $ 68.40 
Summary of stock options outstanding Stock Options‎(in thousands) Weighted-Average‎ Exercise Price ‎per Share Weighted-Average‎ Remaining Contractual Term ‎(in years) Aggregate‎Intrinsic Value‎(in millions)Outstanding as of January 30, 2021 1,272  $ 57.83  Exercised (320) $ 57.49  Forfeited (117) $ 61.91  Outstanding as of January 29, 2022 835  $ 57.39  6.1  $ 34  Vested or expected to vest as of January 29, 2022 835  $ 57.39  6.1  $ 34  Exercisable as of January 29, 2022 295  $ 43.83  4.6  $ 16 
Reconciliation of the numerators and denominators of basic and diluted earnings per share As of January 29, 2022, options to purchase common stock were all in-the-money and outstanding as follows (shares in millions): Exercisable Unexercisable Total Shares % Weighted-‎Average Price‎per Share Shares % Weighted-‎Average Price‎per Share Shares % Weighted-‎Average Price‎per ShareIn-the-money 0.3  35  $ 43.83  0.5  65  $ 64.80  0.8  100  $ 57.39  Reconciliations of the numerators and denominators of basic and diluted earnings per share were as follows ($ and shares in millions, except per share amounts): 2022 2021 2020Numerator Net earnings$ 2,454  $ 1,798  $ 1,541  Denominator Weighted-average common shares outstanding 246.8  259.6  264.9  Dilutive effect of stock compensation plan awards 2.5  3.4  3.2  Weighted-average common shares outstanding, assuming dilution 249.3  263.0  268.1  Potential shares which were anti-dilutive and excluded from weighted-average share computations 0.1  - 0.8  Basic earnings per share$ 9.94  $ 6.93  $ 5.82  Diluted earnings per share$ 9.84  $ 6.84  $ 5.75 
Schedule of share repurchases 2022 2021 2020Total cost of shares repurchased$ 3,504  $ 318  $ 1,009  Average price per share$ 108.97  $ 102.63  $ 72.34  Number of shares repurchased and retired 32.2  3.1  14.0 
v3.22.0.1
Revenue (Tables)
12 Months Ended
Jan. 29, 2022
Revenue [Abstract]  
Contract Balances and Changes in Contract Balances January 29, 2022 January 30, 2021Receivables(1)$ 591  $ 618  Short-term contract liabilities included in: Unredeemed gift cards 316  317  Deferred revenue 1,103  711  Accrued liabilities 83  71  (1)Receivables are recorded net of allowances for doubtful accounts of $31 million and $32 million as of January 29, 2022, and January 30, 2021, respectively.
v3.22.0.1
Income Taxes (Tables)
12 Months Ended
Jan. 29, 2022
Income Taxes [Abstract]  
Reconciliation of the federal statutory income tax rate to income tax expense 2022 2021 2020Federal income tax at the statutory rate$ 635  $ 499  $ 419  State income taxes, net of federal benefit 88  72  59  Change in unrecognized tax benefits (88) 20  19  Expense (benefit) from foreign operations (8) 20  (21) Other (53) (32) (24) Income tax expense$ 574  $ 579  $ 452  Effective income tax rate 19.0 % 24.3 % 22.7 %
Earning before income tax expense and equity in income (loss) of affiliates 2022 2021 2020United States$ 2,677  $ 2,203  $ 1,704  Foreign 347  174  289  Earnings before income tax expense and equity in income of affiliates$ 3,024  $ 2,377  $ 1,993 
Components of income tax expense 2022 2021 2020Current: Federal$ 367  $ 447  $ 261  State 132  117  73  Foreign 61  51  48  560  615  382  Deferred: Federal 22  (25) 56  State (9) (16) 8  Foreign 1  5  6  14  (36) 70  Income tax expense$ 574  $ 579  $ 452 
Deferred income tax assets and liabilities Deferred taxes are the result of differences between the bases of assets and liabilities for financial reporting and income tax purposes. Deferred tax assets and liabilities were comprised of the following ($ in millions): January 29, 2022 January 30, 2021Deferred revenue$ 76  $ 67  Compensation and benefits 156  122  Stock-based compensation 31  29  Other accrued expenses 46  64  Operating lease liabilities 707  698  Loss and credit carryforwards 143  143  Other 45  48  Total deferred tax assets 1,204  1,171  Valuation allowance (128) (127) Total deferred tax assets after valuation allowance 1,076  1,044  Inventory (24) (13) Property and equipment (270) (258) Operating lease assets (676) (662) Goodwill and intangibles (64) (55) Other (39) (39) Total deferred tax liabilities (1,073) (1,027) Net deferred tax assets$ 3  $ 17  Deferred taxes were presented as follows ($ in millions): Balance Sheet LocationJanuary 29, 2022 January 30, 2021Other assets$ 25  $ 17  Long-term liabilities (22) - Net deferred tax assets$ 3  $ 17 
Reconciliation of changes in unrecognized tax benefits 2022 2021 2020Balances at beginning of period$ 327  $ 318  $ 300  Gross increases related to prior period tax positions 3  17  1  Gross decreases related to prior period tax positions(1) (103) (25) (5) Gross increases related to current period tax positions 28  29  34  Settlements with taxing authorities (7) (1) - Lapse of statute of limitations (13) (11) (12) Balances at end of period$ 235  $ 327  $ 318  (1)Represents multi-jurisdiction, multi-year non-cash benefits from the resolution of certain discrete tax matters.
v3.22.0.1
Segment and Geographic Information (Tables)
12 Months Ended
Jan. 29, 2022
Segment and Geographic Information [Abstract]  
Revenue by Reportable Segment and Product Category 2022 2021 2020Revenue by reportable segment Domestic$ 47,830  $ 43,293  $ 40,114  International 3,931  3,969  3,524  Total revenue$ 51,761  $ 47,262  $ 43,638  2022 2021 2020Revenue by product category Domestic: Computing and Mobile Phones$ 20,693  $ 19,799  $ 17,819  Consumer Electronics 15,009  13,022  13,129  Appliances 6,784  5,489  4,493  Entertainment 2,963  2,769  2,388  Services 2,190  2,082  2,126  Other 191  132  159  Total Domestic revenue$ 47,830  $ 43,293  $ 40,114  International: Computing and Mobile Phones$ 1,785  $ 1,854  $ 1,580  Consumer Electronics 1,194  1,189  1,163  Appliances 383  384  317  Entertainment 312  310  209  Services 190  170  199  Other 67  62  56  Total International revenue$ 3,931  $ 3,969  $ 3,524 
Segment Information 2022 2021 2020Operating income by reportable segment Domestic(1)$ 2,795  $ 2,348  $ 1,907  International 244  43  102  Total operating income 3,039  2,391  2,009  Other income (expense): Gain on sale of investments - 1  1  Investment income and other 10  37  47  Interest expense (25) (52) (64) Earnings before income tax expense and equity in income of affiliates$ 3,024  $ 2,377  $ 1,993  Assets Domestic$ 16,016  $ 17,625  $ 14,247  International 1,488  1,442  1,344  Total assets$ 17,504  $ 19,067  $ 15,591  Capital expenditures Domestic$ 691  $ 680  $ 691  International 46  33  52  Total capital expenditures$ 737  $ 713  $ 743  Depreciation Domestic$ 738  $ 704  $ 681  International 49  55  59  Total depreciation$ 787  $ 759  $ 740  (1)The Domestic segment operating income includes certain operations that are based in foreign tax jurisdictions and primarily relate to sourcing products into the U.S.
Geographic Information 2022 2021 2020Revenue from external customers U.S.$ 47,830  $ 43,293  $ 40,114  Canada 3,911  3,600  3,125  Other 20  369  399  Total revenue from external customers$ 51,761  $ 47,262  $ 43,638  Property and equipment, net U.S.$ 2,128  $ 2,135  $ 2,150  Canada 120  122  140  Other 2  3  38  Total property and equipment, net$ 2,250  $ 2,260  $ 2,328 
v3.22.0.1
Summary of Significant Accounting Policies (Narrative) (Details)
12 Months Ended
Jan. 29, 2022
USD ($)
segment
Jan. 30, 2021
USD ($)
Feb. 01, 2020
USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Number of Operating Segments | segment 2    
Cash Equivalents, at Carrying Value $ 1,584,000,000 $ 3,559,000,000  
Weighted Average Interest Rate on Cash Equivalents 0.20% 0.60%  
Allowances for uncollectible receivables $ 39,000,000 $ 38,000,000  
Write-offs 52,000,000 88,000,000  
Goodwill $ 1,384,000,000 $ 986,000,000  
Percentage of Commissions on Sale of Extended Warranties to Revenue 1.40% 1.60% 1.80%
Gift card redemption within 1 year, percentage 90.00%    
Revenue recognized $ 924,000,000 $ 923,000,000  
Period of Expiration for Customer Loyalty Certificates, Low End of Range 2 months    
Period of Expiration for Customer Loyalty Certificates, High End of Range 6 months    
Advertising expense $ 915,000,000 $ 819,000,000 $ 840,000,000
Branded cards 25.00% 25.00% 25.00%
CARES Act, Qualified Deferred Payroll Taxes   $ 142,000,000  
CARES Act, Employee Retention Credits   81,000,000  
2028 Notes [Member]      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Debt $ 500,000,000    
Best Buy Health [Member]      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Goodwill 893,000,000    
Best Buy Domestic [Member]      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Goodwill 491,000,000    
Best Buy Gift Cards [Member]      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Revenue recognized $ 49,000,000 $ 33,000,000 $ 35,000,000
Minimum [Member]      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Term of contract 1 month    
Customer loyalty program, certificate expiration period 1 month    
Minimum [Member] | Software [Member]      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Estimated useful lives 2 years    
Maximum [Member]      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Term of contract 1 year    
Customer loyalty program, certificate expiration period 5 years    
Maximum [Member] | Software [Member]      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Estimated useful lives 5 years    
v3.22.0.1
Summary of Significant Accounting Policies (Schedule of Cash and Cash Equivalents) (Details) - USD ($)
$ in Millions
Jan. 29, 2022
Jan. 30, 2021
Feb. 01, 2020
Feb. 02, 2019
Cash and Cash Equivalents [Line Items]        
Cash and cash equivalents $ 2,936 $ 5,494    
Total cash, cash equivalents and restricted cash 3,205 5,625 $ 2,355 $ 2,184
Other Current Assets [Member]        
Cash and Cash Equivalents [Line Items]        
Cash and cash equivalents 2,936 5,494 2,229  
Restricted cash included in Other current assets 269 131 126  
Total cash, cash equivalents and restricted cash $ 3,205 $ 5,625 $ 2,355  
v3.22.0.1
Summary of Significant Accounting Policies (Property, Plant and Equipment) (Details)
12 Months Ended
Jan. 29, 2022
Buildings | Minimum [Member]  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 5 years
Buildings | Maximum [Member]  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 35 years
Leasehold improvements | Minimum [Member]  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 5 years
Leasehold improvements | Maximum [Member]  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 10 years
Fixtures and equipment | Minimum [Member]  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 2 years
Fixtures and equipment | Maximum [Member]  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 15 years
v3.22.0.1
Summary of Significant Accounting Policies (Schedule of Self Insurance Liability) (Details) - USD ($)
$ in Millions
Jan. 29, 2022
Jan. 30, 2021
Summary of Significant Accounting Policies [Abstract]    
Accrued liabilities $ 80 $ 101
Long-term liabilities 51 45
Total $ 131 $ 146
v3.22.0.1
Acquisitions (Details) - USD ($)
$ in Millions
12 Months Ended
Nov. 04, 2021
Nov. 02, 2021
Aug. 07, 2019
May 09, 2019
Jan. 29, 2022
Feb. 01, 2020
Jan. 30, 2021
Business Acquisition [Line Items]              
Total purchase price, net of cash acquired         $ 468 $ 145  
Goodwill         $ 1,384   $ 986
Current Health Ltd. [Member]              
Business Acquisition [Line Items]              
Total purchase price, net of cash acquired   $ 389          
Two Peaks, LLC d/b/a Yardbird Furniture [Member]              
Business Acquisition [Line Items]              
Total purchase price, net of cash acquired $ 79            
Goodwill $ 47            
Critical Signal Technologies, Inc. [Member]              
Business Acquisition [Line Items]              
Total purchase price, net of cash acquired       $ 125      
BioSensics, LLC [Member]              
Business Acquisition [Line Items]              
Total purchase price, net of cash acquired     $ 20        
Goodwill     $ 19        
Customer Relationships [Member]              
Business Acquisition [Line Items]              
Goodwill   $ 351          
v3.22.0.1
Restructuring (Narrative) (Details) - USD ($)
3 Months Ended 12 Months Ended
Aug. 03, 2019
Jan. 29, 2022
Jan. 30, 2021
Feb. 01, 2020
Restructuring Cost and Reserve [Line Items]        
Restructuring charges   $ (34,000,000) $ 254,000,000 $ 41,000,000
U.S. Operating Model [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring Reserve   0    
Cumulative Amount   42,000,000    
Voluntary Early Retirement [Member] | U.S. Operating Model [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges $ 11,000,000      
Termination Benefits [Member] | Mexico Exit And Strategic Realignment [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring Reserve   $ 7,000,000 $ 124,000,000  
v3.22.0.1
Restructuring (Composition of Restructuring Charges) (Details) - USD ($)
$ in Millions
12 Months Ended 24 Months Ended
Jan. 29, 2022
Jan. 30, 2021
Feb. 01, 2020
Jan. 29, 2022
Restructuring Cost and Reserve [Line Items]        
Restructuring charges $ (40) $ 277 $ 41  
Mexico Exit And Strategic Realignment [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges (41) 277    
Mexico Exit And Strategic Realignment [Member] | Continuing Operations [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges   277   $ 236
Mexico Exit And Strategic Realignment [Member] | Cost of Sales [Member]        
Restructuring Cost and Reserve [Line Items]        
Inventory markdown 6 23    
Mexico Exit And Strategic Realignment [Member] | Domestic [Member] | Continuing Operations [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges   133   93
Mexico Exit And Strategic Realignment [Member] | International [Member] | Continuing Operations [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges   144   143
Mexico Exit And Strategic Realignment [Member] | Inventory Markdowns [Member] | Cost of Sales [Member] | Continuing Operations [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges (6) 23   17
Mexico Exit And Strategic Realignment [Member] | Inventory Markdowns [Member] | International [Member] | Cost of Sales [Member] | Continuing Operations [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges (6) 23   17
Mexico Exit And Strategic Realignment [Member] | Asset Impairments [Member] | Continuing Operations [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges       73
Mexico Exit And Strategic Realignment [Member] | Asset Impairments [Member] | Restructuring Charges [Member] | Continuing Operations [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges 6 67    
Mexico Exit And Strategic Realignment [Member] | Asset Impairments [Member] | Domestic [Member] | Continuing Operations [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges       10
Mexico Exit And Strategic Realignment [Member] | Asset Impairments [Member] | Domestic [Member] | Restructuring Charges [Member] | Continuing Operations [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges   10    
Mexico Exit And Strategic Realignment [Member] | Asset Impairments [Member] | International [Member] | Continuing Operations [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges       63
Mexico Exit And Strategic Realignment [Member] | Asset Impairments [Member] | International [Member] | Restructuring Charges [Member] | Continuing Operations [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges 6 57    
Mexico Exit And Strategic Realignment [Member] | Termination Benefits [Member] | Continuing Operations [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges       102
Mexico Exit And Strategic Realignment [Member] | Termination Benefits [Member] | Restructuring Charges [Member] | Continuing Operations [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges (41) 143    
Mexico Exit And Strategic Realignment [Member] | Termination Benefits [Member] | Domestic [Member] | Continuing Operations [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges       83
Mexico Exit And Strategic Realignment [Member] | Termination Benefits [Member] | Domestic [Member] | Restructuring Charges [Member] | Continuing Operations [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges (40) 123    
Mexico Exit And Strategic Realignment [Member] | Termination Benefits [Member] | International [Member] | Continuing Operations [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges       19
Mexico Exit And Strategic Realignment [Member] | Termination Benefits [Member] | International [Member] | Restructuring Charges [Member] | Continuing Operations [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges (1) 20    
Mexico Exit And Strategic Realignment [Member] | Currency Translation Adjustment [Member] | Continuing Operations [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges       39
Mexico Exit And Strategic Realignment [Member] | Currency Translation Adjustment [Member] | Restructuring Charges [Member] | Continuing Operations [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges   39    
Mexico Exit And Strategic Realignment [Member] | Currency Translation Adjustment [Member] | International [Member] | Continuing Operations [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] | Continuing Operations [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges   39    
Mexico Exit And Strategic Realignment [Member] | Other [Member] | Continuing Operations [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges       5
Mexico Exit And Strategic Realignment [Member] | Other [Member] | Restructuring Charges [Member] | Continuing Operations [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges (41) 5    
Mexico Exit And Strategic Realignment [Member] | Other [Member] | Domestic [Member] | Restructuring Charges [Member] | Continuing Operations [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges (40)      
Mexico Exit And Strategic Realignment [Member] | Other [Member] | International [Member] | Continuing Operations [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges       $ 5
Mexico Exit And Strategic Realignment [Member] | Other [Member] | International [Member] | Restructuring Charges [Member] | Continuing Operations [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges (1) $ 5    
U.S. Operating Model [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges $ 1   $ 41  
v3.22.0.1
Restructuring (Restructuring Accrual Activity) (Details) - USD ($)
12 Months Ended
Jan. 29, 2022
Jan. 30, 2021
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  
Charges 4,000,000 $ 143,000,000
Cash payments (75,000,000) (19,000,000)
Adjustments (45,000,000)  
Changes in foreign currency exchange rates (1,000,000)  
Balances 7,000,000 124,000,000
Domestic [Member] | Mexico Exit And Strategic Realignment [Member] | Termination Benefits [Member]    
Restructuring Reserve [Roll Forward]    
Balances 104,000,000  
Charges 4,000,000 123,000,000
Cash payments (57,000,000) (19,000,000)
Adjustments (44,000,000)  
Balances 7,000,000 104,000,000
International [Member] | Mexico Exit And Strategic Realignment [Member] | Termination Benefits [Member]    
Restructuring Reserve [Roll Forward]    
Balances 20,000,000  
Charges   20,000,000
Cash payments (18,000,000)  
Adjustments (1,000,000)  
Changes in foreign currency exchange rates $ (1,000,000)  
Balances   $ 20,000,000
v3.22.0.1
Goodwill and Intangible Assets (Gross Carrying Amount of Goodwill and Cumulative Goodwill Impairment) (Details) - USD ($)
$ in Millions
Jan. 29, 2022
Jan. 30, 2021
Goodwill [Line Items]    
Gross Carrying Amount $ 2,059 $ 1,661
Cumulative Impairment (675) (675)
Domestic [Member]    
Goodwill [Line Items]    
Gross Carrying Amount 1,451 1,053
Cumulative Impairment (67) (67)
International [Member]    
Goodwill [Line Items]    
Gross Carrying Amount 608 608
Cumulative Impairment $ (608) $ (608)
v3.22.0.1
Goodwill and Intangible Assets (Definite-Lived Intangible Assets) (Details) - USD ($)
$ in Millions
12 Months Ended
Jan. 29, 2022
Jan. 30, 2021
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 532 $ 476
Accumulated Amortization $ 257 175
Weighted-Average Useful Life Remaining 4 years 8 months 12 days  
Customer Relationships [Member]    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 360 339
Accumulated Amortization $ 180 124
Weighted-Average Useful Life Remaining 5 years 9 months 18 days  
Tradename [Member]    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 108 81
Accumulated Amortization $ 38 24
Weighted-Average Useful Life Remaining 2 years 7 months 6 days  
Developed Technology [Member]    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 64 56
Accumulated Amortization $ 39 $ 27
Weighted-Average Useful Life Remaining 2 years 10 months 24 days  
v3.22.0.1
Goodwill and Intangible Assets (Amortization Expense) (Details) - USD ($)
$ in Millions
12 Months Ended
Jan. 29, 2022
Jan. 30, 2021
Feb. 01, 2020
Goodwill and Intangible Assets [Abstract]      
Amortization expense $ 82 $ 80 $ 72
v3.22.0.1
Goodwill and Intangible Assets (Amortization Expense Expected to be Recognized) (Details)
$ in Millions
Jan. 29, 2022
USD ($)
Goodwill and Intangible Assets [Abstract]  
Fiscal 2023 $ 86
Fiscal 2024 60
Fiscal 2025 22
Fiscal 2026 21
Fiscal 2027 18
Thereafter $ 68
v3.22.0.1
Fair Value Measurements (Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($)
$ in Millions
Jan. 29, 2022
Jan. 30, 2021
Level 1 [Member] | Money market funds [Member]    
Assets    
Cash and cash equivalents $ 548 $ 1,575
Level 1 [Member] | Marketable securities that fund deferred compensation [Member]    
Assets    
Other assets 54 53
Level 2 [Member] | Time deposits [Member]    
Assets    
Cash and cash equivalents 278 865
Other current assets   65
Level 2 [Member] | Interest Rate Swap Derivative Instruments [Member]    
Assets    
Other assets $ 50 $ 91
v3.22.0.1
Fair Value Measurements (Fair Value of Financial Instruments) (Details) - USD ($)
$ in Millions
Jan. 29, 2022
Jan. 30, 2021
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Carrying value $ 1,200 $ 1,241
Level 2 [Member] | Debt [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Fair Value 1,205 1,331
Carrying value $ 1,200 $ 1,241
v3.22.0.1
Derivative Instruments (Notional Amount of Derivative Instruments) (Details) - USD ($)
$ in Millions
Jan. 29, 2022
Jan. 30, 2021
Derivatives, Fair Value [Line Items]    
Notional Amount $ 723 $ 704
Derivatives Designated As Net Investment Hedges [Member] | Designated As Hedging Instrument [Member]    
Derivatives, Fair Value [Line Items]    
Notional Amount 155 153
Interest Rate Swap Derivative Instruments [Member] | Designated As Hedging Instrument [Member]    
Derivatives, Fair Value [Line Items]    
Notional Amount 500 500
Foreign Exchange Forward Contracts [Member] | Not Designated As Hedging Instrument [Member]    
Derivatives, Fair Value [Line Items]    
Notional Amount $ 68 $ 51
v3.22.0.1
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
12 Months Ended
Jan. 29, 2022
Jan. 30, 2021
Interest Rate Swap Derivative Instruments [Member]    
Derivatives, Fair Value [Line Items]    
Gain (Loss) Recognized $ (41) $ 2
Carrying Value Of Long Term Debt [Member]    
Derivatives, Fair Value [Line Items]    
Gain (Loss) Recognized $ 41 $ (2)
v3.22.0.1
Leases (Supplemental Balance Sheet Information) (Details) - USD ($)
$ in Millions
Jan. 29, 2022
Jan. 30, 2021
Assets    
Operating leases $ 2,654 $ 2,612
Finance leases 45 37
Total lease assets 2,699 2,649
Current:    
Operating leases 648 693
Finance leases 13 14
Non-current:    
Operating leases 2,061 2,012
Finance leases 27 24
Total lease liabilities 2,749 2,743
Accumulated depreciation 6,091 6,996
Finance Leases [Member]    
Non-current:    
Accumulated depreciation $ 46 $ 36
v3.22.0.1
Leases (Components of Lease Cost) (Details) - USD ($)
$ in Millions
12 Months Ended
Jan. 29, 2022
Jan. 30, 2021
Leases [Abstract]    
Operating lease cost $ 770 $ 777
Depreciation of lease assets 13 13
Interest on lease liabilities 1 1
Variable lease cost 238 249
Sublease income (13) (16)
Total lease cost $ 1,009 $ 1,024
v3.22.0.1
Leases (Other Information) (Details) - USD ($)
$ in Millions
12 Months Ended
Jan. 29, 2022
Jan. 30, 2021
Cash paid for amounts included in the measurement of lease liabilities:    
Operating cash flows from operating leases $ 814 $ 795
Operating cash flows from finance leases 1 1
Financing cash flows from finance leases 18 15
Lease assets obtained in exchange for new lease liabilities:    
Operating leases 759 608
Finance leases $ 21 $ 33
Weighted average remaining lease term:    
Operating leases 5 years 1 month 6 days 5 years 1 month 6 days
Finance leases 5 years 5 years 7 months 6 days
Weighted average discount rate:    
Operating leases 2.50% 2.90%
Finance leases 2.40% 2.90%
v3.22.0.1
Leases (Future Lease Payments) (Details) - USD ($)
$ in Millions
Jan. 29, 2022
Jan. 30, 2021
Operating Leases    
2023 $ 706  
2024 644  
2025 521  
2026 390  
2027 277  
Thereafter 354  
Total future undiscounted lease payments 2,892  
Less imputed interest 183  
Total reported lease liability 2,709  
Financing Leases    
2023 15  
2024 12  
2025 8  
2026 4  
2027 1  
Thereafter 4  
Total future undiscounted lease payments 44  
Less imputed interest 4  
Total reported lease liability 40 $ 38
Leases signed but not yet commenced $ 51  
v3.22.0.1
Debt (Narrative) (Short-Term Debt) (Details)
12 Months Ended
Jan. 29, 2022
USD ($)
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
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]  
Line of credit facility, maximum borrowing capacity $ 110,000,000
Interest rate 0.14%
Notes Due 2030 [Member]  
Line of Credit Facility [Line Items]  
Interest rate 1.95%
Debt Instrument, Face Amount $ 650,000,000
v3.22.0.1
Debt (Narrative) (Long-Term Debt) (Details) - USD ($)
1 Months Ended 12 Months Ended
Sep. 30, 2018
Jan. 29, 2022
Debt Instrument [Line Items]    
2022   $ 0
2023   0
2024   0
2025   0
2026   0
Notes due 2028 [Member]    
Debt Instrument [Line Items]    
Debt Instrument, Face Amount   $ 500,000,000
Interest rate   4.45%
Debt Issuance Costs, Gross $ 5,000,000  
Proceeds from Debt, Net of Issuance Costs $ 495,000,000  
Debt Instrument, Redemption Price, Percentage   100.00%
Debt Instrument, Redemption Price, Control Triggering Percentage   101.00%
Notes Due 2030 [Member]    
Debt Instrument [Line Items]    
Debt Instrument, Face Amount   $ 650,000,000
Interest rate   1.95%
Debt Instrument, Unamortized Discount   $ 8,000,000
Proceeds from Debt, Net of Issuance Costs   $ 642,000,000
Debt Instrument, Redemption Price, Percentage   100.00%
Debt Instrument, Redemption Price, Control Triggering Percentage   101.00%
v3.22.0.1
Debt (Schedule of Long-Term Debt) (Details) - USD ($)
$ in Millions
Jan. 29, 2022
Jan. 30, 2021
Debt Instrument [Line Items]    
Total $ 1,200 $ 1,241
Debt discounts and issuance costs (11) (12)
Finance lease obligations 40 38
Total long-term debt 1,229 1,267
Less current portion 13 14
Total long-term debt, less current portion 1,216 1,253
Interest Rate Swap Derivative Instruments [Member]    
Debt Instrument [Line Items]    
Interest rate swap valuation adjustments 50 91
Notes due 2028 [Member]    
Debt Instrument [Line Items]    
Long-term debt $ 500 500
Interest rate 4.45%  
Notes Due 2030 [Member]    
Debt Instrument [Line Items]    
Long-term debt $ 650 $ 650
Interest rate 1.95%  
v3.22.0.1
Shareholders' Equity (Narrative) (Details) - USD ($)
$ / shares in Units, $ in Millions
2 Months Ended 12 Months Ended
Mar. 03, 2022
May 27, 2021
Mar. 16, 2022
Jan. 29, 2022
Jan. 30, 2021
Feb. 01, 2020
Feb. 28, 2022
Feb. 16, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized       18,600,000        
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant       19,400,000        
Stock Repurchase Program, Authorized Amount               $ 5,000
Total cost of shares repurchased   $ 2,500   $ 3,504 $ 318 $ 1,009    
Number of shares repurchased and retired       32,200,000 3,100,000 14,000,000.0    
Share-based Payment Arrangement, Tranche One [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage       33.00%        
Share-based Payment Arrangement, Tranche Three [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage       33.00%        
Share-based Payment Arrangement, Tranche Two [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage       33.00%        
Employee Stock Option [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period       10 years        
Weighted-average grant-date fair value         $ 19.89 $ 19.81    
Aggregate intrinsic value       $ 19 $ 21 $ 59    
Proceeds from Stock Options Exercised       18 20 40    
Employee Service Share-based Compensation, Tax Benefit from Exercise of Stock Options       2 5 14    
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized       $ 3        
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition       1 year 1 month 6 days        
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross       0        
Employee Stock Option [Member] | Share-based Payment Arrangement, Tranche One [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage       33.00%        
Employee Stock Option [Member] | Share-based Payment Arrangement, Tranche Three [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage       33.00%        
Employee Stock Option [Member] | Share-based Payment Arrangement, Tranche Two [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage       33.00%        
Time-Based Share Awards [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period       1 year        
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value       $ 194 145 129    
Employee Service Share-based Compensation, Tax Benefit from Exercise of Stock Options       41 33 28    
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized       $ 180        
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition       1 year 10 months 24 days        
Time-Based Share Awards [Member] | Share-based Payment Arrangement, Tranche One [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage       33.00%        
Time-Based Share Awards [Member] | Share-based Payment Arrangement, Tranche Three [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage       33.00%        
Time-Based Share Awards [Member] | Share-based Payment Arrangement, Tranche Two [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage       33.00%        
Performance-Based Share Awards [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value       $ 43 28 19    
Employee Service Share-based Compensation, Tax Benefit from Exercise of Stock Options       3 5 4    
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized       $ 10        
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition       1 year 6 months        
Share Based Compensation, Performance Target       100.00%        
Market-Based Share Awards [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value       $ 27 37 70    
Employee Service Share-based Compensation, Tax Benefit from Exercise of Stock Options       3 $ 8 $ 16    
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized       $ 15        
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition       1 year 9 months 18 days        
Share Based Compensation, Performance Target       100.00%        
Subsequent Event [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Stock Repurchase Program, Authorized Amount             $ 5,000  
Stock Repurchase Program, Remaining Authorized Repurchase Amount             $ 1,600  
Total cost of shares repurchased     $ 239          
Number of shares repurchased and retired     2,400,000          
Subsequent Event [Member] | Scenario, Plan [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Total cost of shares repurchased $ 1,500              
Minimum [Member] | Performance-Based Share Awards [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Share Based Compensation, Performance Target       0.00%        
Minimum [Member] | Market-Based Share Awards [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Share Based Compensation, Performance Target       0.00%        
Maximum [Member] | Performance-Based Share Awards [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Share Based Compensation, Performance Target       150.00%        
Maximum [Member] | Market-Based Share Awards [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Share Based Compensation, Performance Target       150.00%        
v3.22.0.1
Shareholders' Equity (Stock-Based Compensation Expense) (Details) - USD ($)
$ in Millions
12 Months Ended
Jan. 29, 2022
Jan. 30, 2021
Feb. 01, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Allocated Share-based Compensation Expense $ 141 $ 135 $ 143
Share Based Compensation, Tax 26 25 26
Share Based Compensation, Net 115 110 117
Employee Stock Option [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Allocated Share-based Compensation Expense 3 4 7
Market-Based Share Awards [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Allocated Share-based Compensation Expense 12 11 13
Performance-Based Share Awards [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Allocated Share-based Compensation Expense 17 21 28
Time-Based Share Awards [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Allocated Share-based Compensation Expense $ 109 $ 99 $ 95
v3.22.0.1
Shareholders' Equity (Stock Option Activity) (Details)
$ / shares in Units, $ in Millions
12 Months Ended
Jan. 29, 2022
USD ($)
$ / shares
shares
Stock Options  
Outstanding 800,000
Weighted-Average Exercise Price per Share  
Outstanding | $ / shares $ 57.39
Employee Stock Option [Member]  
Stock Options  
Outstanding 1,272,000
Granted 0
Exercised (320,000)
Forfeited/canceled (117,000)
Outstanding 835,000
Vested or expected to vest 835,000
Exercisable 295,000
Weighted-Average Exercise Price per Share  
Outstanding | $ / shares $ 57.83
Exercised | $ / shares 57.49
Forfeited/canceled | $ / shares 61.91
Outstanding | $ / shares 57.39
Vested or expected to vest | $ / shares 57.39
Exercisable | $ / shares $ 43.83
Weighted-Average Remaining Contractual Term [Abstract]  
Outstanding 6 years 1 month 6 days
Exercisable 4 years 7 months 6 days
Aggregate Intrinsic Value [Abstract]  
Outstanding | $ $ 34
Exercisable | $ $ 16
v3.22.0.1
Shareholders' Equity (Black Scholes Valuation Model Assumptions) (Details) - Employee Stock Option [Member]
12 Months Ended
Jan. 29, 2022
Jan. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Expected dividend yield 2.90% 2.90%
Expected stock price volatility 56.00% 36.00%
Expected life of stock options (in years) 6 years 3 months 18 days 7 years 4 months 24 days
Minimum [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Risk-free interest rate 0.10% 1.90%
Maximum [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Risk-free interest rate 0.90% 2.50%
v3.22.0.1
Shareholders' Equity (Market-Based Share Awards) (Details) - Market-Based Share Awards [Member]
$ / shares in Units, shares in Thousands, $ in Millions
12 Months Ended
Jan. 29, 2022
USD ($)
$ / shares
shares
Shares  
Outstanding | shares 558
Granted | shares 147
Adjustment for performance achievement | shares 76
Distributed | shares 225
Forfeited/canceled | shares (32)
Outstanding | shares 524
Weighted-Average Fair Value per Share  
Outstanding | $ / shares $ 65.88
Granted | $ / shares 132.21
Adjustment for performance achievement | $ / shares 74.30
Distributed | $ / shares 74.30
Forfeited/canceled | $ / shares 65.49
Outstanding | $ / shares $ 80.78
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ $ 15
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition 1 year 9 months 18 days
v3.22.0.1
Shareholders' Equity (Time-Based Share Awards) (Details) - Time-Based Share Awards [Member]
$ / shares in Units, shares in Thousands, $ in Millions
12 Months Ended
Jan. 29, 2022
USD ($)
$ / shares
shares
Shares  
Outstanding | shares 3,843
Granted | shares 1,454
Vested | shares (1,646)
Forfeited/canceled | shares (255)
Outstanding | shares 3,396
Weighted-Average Fair Value per Share  
Outstanding | $ / shares $ 58.94
Granted | $ / shares 118.90
Vested | $ / shares 88.62
Forfeited/canceled | $ / shares 76.94
Outstanding | $ / shares $ 80.30
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ $ 180
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition 1 year 10 months 24 days
v3.22.0.1
Shareholders' Equity (Performance-Based Share Awards) (Details) - Performance-Based Share Awards [Member]
$ / shares in Units, shares in Thousands, $ in Millions
12 Months Ended
Jan. 29, 2022
USD ($)
$ / shares
shares
Shares  
Outstanding | shares 929
Granted | shares 99
Adjustment for performance achievement | shares 78
Distributed | shares 366
Forfeited/canceled | shares 67
Outstanding | shares 673
Weighted-Average Fair Value per Share  
Outstanding | $ / shares $ 63.20
Granted | $ / shares 118.19
Adjustment for performance achievement | $ / shares 72.24
Distributed | $ / shares 69.29
Forfeited/canceled | $ / shares 55.56
Outstanding | $ / shares $ 68.40
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ $ 10
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition 1 year 6 months
v3.22.0.1
Shareholders' Equity (Earnings Per Share) (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
12 Months Ended
Jan. 29, 2022
Jan. 30, 2021
Feb. 01, 2020
Earnings per Share [Abstract]      
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number 0.3    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Percentage 35.00%    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price $ 43.83    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Unexercisable, Number 0.5    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Unexercisable, Percentage 65.00%    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Unexercisable, Weighted Average Exercise Price $ 64.80    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number 0.8    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Percentage 100.00%    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price $ 57.39    
Numerator [Abstract]      
Net earnings $ 2,454 $ 1,798 $ 1,541
Denominator [Abstract]      
Weighted-average common shares outstanding (in shares) 246.8 259.6 264.9
Effect of Potentially Dilutive Securities [Abstract]      
Dilutive effect of stock compensation plan awards (in shares) 2.5 3.4 3.2
Weighted-average common shares outstanding, assuming dilution (in shares) 249.3 263.0 268.1
Potential shares which were anti-dilutive and excluded from weighted-average share computations (in shares) 0.1   0.8
Earnings per share attributable to Best Buy Co., Inc.      
Basic (in dollars per share) $ 9.94 $ 6.93 $ 5.82
Diluted (in dollars per share) $ 9.84 $ 6.84 $ 5.75
v3.22.0.1
Shareholders' Equity (Schedule of share repurchases) (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
12 Months Ended
May 27, 2021
Jan. 29, 2022
Jan. 30, 2021
Feb. 01, 2020
Stock Repurchases [Line Items]        
Total cost of shares repurchased $ 2,500 $ 3,504 $ 318 $ 1,009
Average price per share   $ 108.97 $ 102.63 $ 72.34
Number of shares repurchased   32.2 3.1 14.0
v3.22.0.1
Revenue (Narrative) (Details) - USD ($)
$ in Millions
12 Months Ended
Jan. 29, 2022
Jan. 30, 2021
Revenue [Abstract]    
Revenue recognized $ 924 $ 923
v3.22.0.1
Revenue (Contract Balances and Changes in Contract Balances) (Details) - USD ($)
$ in Millions
Jan. 29, 2022
Jan. 30, 2021
Revenue from Contract with Customer [Line Items]    
Receivables, net $ 591 $ 618
Short-term contract liabilities included in:    
Receivables, allowance for doubtful accounts 31 32
Unredeemed Gift Cards [Member]    
Short-term contract liabilities included in:    
Short-term contract liabilities 316 317
Deferred Revenue [Member]    
Short-term contract liabilities included in:    
Short-term contract liabilities 1,103 711
Accrued Liability [Member]    
Short-term contract liabilities included in:    
Short-term contract liabilities $ 83 $ 71
v3.22.0.1
Income Taxes (Narrative) (Details) - USD ($)
$ in Millions
12 Months Ended
Jan. 29, 2022
Jan. 30, 2021
Feb. 01, 2020
Effective Income Tax Rate [Line Items]      
Total net operating loss carryforwards $ 108    
Net operating loss carryforwards subject to expiration 93    
Valuation allowance 128 $ 127  
Change in the valuation allowance, related to the international net operating loss carryforwards and other international deferred tax assets 1    
Unrecognized tax benefits that would impact the effective tax rate if recognized 214 307 $ 300
Interest expense recognized as component of income tax expense 20 4 11
Accrued interest in income tax expense 46 74 $ 67
Decrease in unrecognized tax benefits 7 $ 1  
International [Member]      
Effective Income Tax Rate [Line Items]      
Total net operating loss carryforwards 1    
Tax credit carryforwards 8    
Tax credit carryforwards, valuation allowance 1    
Net operating loss carryforwards, valuation allowance 10    
Federal [Member]      
Effective Income Tax Rate [Line Items]      
Total net operating loss carryforwards 11    
Net operating loss carryforwards subject to expiration 4    
Tax credit carryforwards, valuation allowance 7    
Foreign Tax Credit Carryforwards [Member] | Federal [Member]      
Effective Income Tax Rate [Line Items]      
Tax credit carryforwards 7    
State [Member]      
Effective Income Tax Rate [Line Items]      
Net operating loss carryforwards subject to expiration 5    
State [Member] | International [Member]      
Effective Income Tax Rate [Line Items]      
Tax credit carryforwards, valuation allowance 110    
State [Member] | Foreign Tax Credit Carryforwards [Member]      
Effective Income Tax Rate [Line Items]      
Tax credit carryforwards $ 3    
v3.22.0.1
Income Taxes (Tax Rate Reconciliation) (Details) - USD ($)
$ in Millions
12 Months Ended
Jan. 29, 2022
Jan. 30, 2021
Feb. 01, 2020
Effective Income Tax Rate Reconciliation, Amount [Abstract]      
Federal income tax at the statutory rate $ 635 $ 499 $ 419
State income taxes, net of federal benefit 88 72 59
Change in unrecognized tax benefits (88) 20 19
Benefit from foreign operations (8) 20 (21)
Other (53) (32) (24)
Income Tax Expense (Benefit), Total $ 574 $ 579 $ 452
Effective income tax rate 19.00% 24.30% 22.70%
v3.22.0.1
Income Taxes (Income Tax Expense) (Details) - USD ($)
$ in Millions
12 Months Ended
Jan. 29, 2022
Jan. 30, 2021
Feb. 01, 2020
Earnings from continuing operations before income tax expense and equity in (loss) income of affiliates      
United States $ 2,677 $ 2,203 $ 1,704
Foreign 347 174 289
Earnings before income tax expense and equity in income of affiliates 3,024 2,377 1,993
Current:      
Federal 367 447 261
State 132 117 73
Foreign 61 51 48
Current income tax expense 560 615 382
Deferred:      
Federal 22 (25) 56
State (9) (16) 8
Foreign 1 5 6
Deferred Income Tax Expense (Benefit), Total 14 (36) 70
Income Tax Expense (Benefit), Total $ 574 $ 579 $ 452
v3.22.0.1
Income Taxes (Components of Deferreds) (Details) - USD ($)
$ in Millions
Jan. 29, 2022
Jan. 30, 2021
Components of deferred tax assets and liabilities    
Deferred revenue $ 76 $ 67
Compensation and benefits 156 122
Stock-based compensation 31 29
Other accrued expenses 46 64
Operating lease liabilities 707 698
Loss and credit carryforwards 143 143
Other 45 48
Total deferred tax assets 1,204 1,171
Valuation allowance (128) (127)
Total deferred tax assets after valuation allowance 1,076 1,044
Inventory (24) (13)
Property and equipment (270) (258)
Operating lease assets (676) (662)
Goodwill and intangibles (64) (55)
Other (39) (39)
Total deferred tax liabilities (1,073) (1,027)
Net deferred tax assets 3 17
Other current assets and Other assets    
Components of deferred tax assets and liabilities    
Net deferred tax assets 25 $ 17
Long-Term Liabilities [Member]    
Components of deferred tax assets and liabilities    
Net deferred tax liabilities $ (22)  
v3.22.0.1
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($)
$ in Millions
12 Months Ended
Jan. 29, 2022
Jan. 30, 2021
Feb. 01, 2020
Reconciliation of changes in unrecognized tax benefits      
Balance at beginning of period $ 327 $ 318 $ 300
Gross increases related to prior period tax positions 3 17 1
Gross decreases related to prior period tax positions (103) (25) (5)
Gross increases related to current period tax positions 28 29 34
Settlements with taxing authorities (7) (1)  
Lapse of statute of limitations (13) (11) (12)
Balance at end of period $ 235 $ 327 $ 318
v3.22.0.1
Benefit Plans (Details) - USD ($)
$ in Millions
12 Months Ended
Jan. 29, 2022
Jan. 30, 2021
Feb. 01, 2020
Benefit Plans [Abstract]      
Maximum percentage of a participant's eligible compensation that a participant may contribute annually to the plan (as a percent) 50.00%    
Percentage of matching contribution made by company of first 3% of participating employees' contributions (as a percent) 100.00%    
Percentage of participating employees' contribution, matched 100% (as a percent) 3.00%    
Percentage of matching contribution made by company, of next 2% of participating employees' contributions (as a percent) 50.00%    
Percentage of participating employees' contribution, matched 50% (as a percent) 2.00%    
Deferred Compensation Arrangement with Individual, Contributions by Employer $ 77 $ 44 $ 73
Deferred Compensation Liability, Classified, Noncurrent $ 24 $ 25  
v3.22.0.1
Contingencies and Commitments (Details)
$ in Millions
Jan. 29, 2022
USD ($)
Contingencies [Abstract]  
Letters of Credit Outstanding, Amount $ 74
v3.22.0.1
Segment and Geographic Information (Revenue by Reportable Segment and Product Category) (Details) - USD ($)
$ in Millions
12 Months Ended
Jan. 29, 2022
Jan. 30, 2021
Feb. 01, 2020
Segment Reporting, Revenue Reconciling Item [Line Items]      
Revenues $ 51,761 $ 47,262 $ 43,638
Domestic Segment [Member]      
Segment Reporting, Revenue Reconciling Item [Line Items]      
Revenues 47,830 43,293 40,114
Domestic Segment [Member] | Computing and Mobile Phones [Member]      
Segment Reporting, Revenue Reconciling Item [Line Items]      
Revenues 20,693 19,799 17,819
Domestic Segment [Member] | Consumer Electronics [Member]      
Segment Reporting, Revenue Reconciling Item [Line Items]      
Revenues 15,009 13,022 13,129
Domestic Segment [Member] | Appliances [Member]      
Segment Reporting, Revenue Reconciling Item [Line Items]      
Revenues 6,784 5,489 4,493
Domestic Segment [Member] | Entertainment [Member]      
Segment Reporting, Revenue Reconciling Item [Line Items]      
Revenues 2,963 2,769 2,388
Domestic Segment [Member] | Services [Member]      
Segment Reporting, Revenue Reconciling Item [Line Items]      
Revenues 2,190 2,082 2,126
Domestic Segment [Member] | Other [Member]      
Segment Reporting, Revenue Reconciling Item [Line Items]      
Revenues 191 132 159
International Segment [Member]      
Segment Reporting, Revenue Reconciling Item [Line Items]      
Revenues 3,931 3,969 3,524
International Segment [Member] | Computing and Mobile Phones [Member]      
Segment Reporting, Revenue Reconciling Item [Line Items]      
Revenues 1,785 1,854 1,580
International Segment [Member] | Consumer Electronics [Member]      
Segment Reporting, Revenue Reconciling Item [Line Items]      
Revenues 1,194 1,189 1,163
International Segment [Member] | Appliances [Member]      
Segment Reporting, Revenue Reconciling Item [Line Items]      
Revenues 383 384 317
International Segment [Member] | Entertainment [Member]      
Segment Reporting, Revenue Reconciling Item [Line Items]      
Revenues 312 310 209
International Segment [Member] | Services [Member]      
Segment Reporting, Revenue Reconciling Item [Line Items]      
Revenues 190 170 199
International Segment [Member] | Other [Member]      
Segment Reporting, Revenue Reconciling Item [Line Items]      
Revenues $ 67 $ 62 $ 56
v3.22.0.1
Segment and Geographic Information (Segment Information) (Details) - USD ($)
$ in Millions
12 Months Ended
Jan. 29, 2022
Jan. 30, 2021
Feb. 01, 2020
Business segment information      
Operating income $ 3,039 $ 2,391 $ 2,009
Other income (expense):      
Gain on sale of investments   1 1
Investment income and other 10 37 47
Interest expense (25) (52) (64)
Earnings before income tax expense 3,024 2,377 1,993
Total assets 17,504 19,067 15,591
Total capital expenditures 737 713 743
Total depreciation 787 759 740
Domestic Segment [Member]      
Business segment information      
Operating income 2,795 2,348 1,907
Other income (expense):      
Total assets 16,016 17,625 14,247
Total capital expenditures 691 680 691
Total depreciation 738 704 681
International Segment [Member]      
Business segment information      
Operating income 244 43 102
Other income (expense):      
Total assets 1,488 1,442 1,344
Total capital expenditures 46 33 52
Total depreciation $ 49 $ 55 $ 59
v3.22.0.1
Segment and Geographic Information (Geographic Information) (Details) - USD ($)
$ in Millions
12 Months Ended
Jan. 29, 2022
Jan. 30, 2021
Feb. 01, 2020
Segment Reporting Information [Line Items]      
Revenues $ 51,761 $ 47,262 $ 43,638
Geographic Areas, Long-Lived Assets [Abstract]      
Property and equipment, net 2,250 2,260 2,328
United States      
Segment Reporting Information [Line Items]      
Revenues 47,830 43,293 40,114
Geographic Areas, Long-Lived Assets [Abstract]      
Property and equipment, net 2,128 2,135 2,150
Canada      
Segment Reporting Information [Line Items]      
Revenues 3,911 3,600 3,125
Geographic Areas, Long-Lived Assets [Abstract]      
Property and equipment, net 120 122 140
Other      
Segment Reporting Information [Line Items]      
Revenues 20 369 399
Geographic Areas, Long-Lived Assets [Abstract]      
Property and equipment, net $ 2 $ 3 $ 38