BEST BUY CO INC, 10-Q filed on 11/30/2020
Quarterly Report
v3.20.2
Document Information Statement - shares
9 Months Ended
Oct. 31, 2020
Nov. 25, 2020
Document Information [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Oct. 31, 2020  
Document Fiscal Year Focus 2020  
Current Fiscal Year End Date --02-01  
Document Transition Report false  
Entity File Number 1-9595  
Entity Registrant Name BEST BUY CO., INC.  
Entity Incorporation, State or Country Code MN  
Entity Address, Address Line One 7601 Penn Avenue South  
Entity Address, City or Town Richfield  
Entity Address, State or Province MN  
Entity Tax Identification Number 41-0907483  
Entity Address, Postal Zip Code 55423  
City Area Code 612  
Local Phone Number 291-1000  
Title of 12(b) Security Common Stock, $0.10 par value per share  
Trading Symbol BBY  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   258,944,852
Document Fiscal Period Focus Q3  
Entity Central Index Key 0000764478  
Amendment Flag false  
v3.20.2
Condensed Consolidated Balance Sheets - USD ($)
$ in Millions
Oct. 31, 2020
Feb. 01, 2020
Nov. 02, 2019
Current assets      
Cash and cash equivalents $ 5,136 $ 2,229 $ 1,205
Short-term investments 545    
Receivables, net 1,028 1,149 1,056
Merchandise inventories 7,459 5,174 7,569
Other current assets 383 305 345
Total current assets 14,551 8,857 10,175
Property and equipment, net 2,265 2,328 2,359
Operating lease assets 2,692 2,709 2,751
Goodwill 986 984 982
Other assets 708 713 659
Total assets 21,202 15,591 16,926
Current liabilities      
Accounts payable 9,110 5,288 7,232
Unredeemed gift card liabilities 278 281 271
Deferred revenue 788 501 445
Accrued compensation and related expenses 446 410 351
Accrued liabilities 968 906 769
Current portion of operating lease liabilities 685 660 644
Current portion of long-term debt 670 14 14
Total current liabilities 12,945 8,060 9,726
Long-term liabilities 798 657 636
Long-term operating lease liabilities 2,117 2,138 2,200
Long-term debt 1,256 1,257 1,239
Contingencies (Note 11)
Equity      
Preferred stock, $1.00 par value: Authorized - 400,000 shares; Issued and outstanding - none
Common stock, $0.10 par value: Authorized - 1.0 billion shares; Issued and outstanding - 258 million, 256 million and 260 million shares, respectively 26 26 26
Additional paid-in capital 133    
Retained earnings 3,659 3,158 2,809
Accumulated other comprehensive income 268 295 290
Total equity 4,086 3,479 3,125
Total liabilities and equity $ 21,202 $ 15,591 $ 16,926
v3.20.2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
Oct. 31, 2020
Feb. 01, 2020
Nov. 02, 2019
Condensed Consolidated Balance Sheets [Abstract]      
Preferred stock, par value (in dollars per share) $ 1.00 $ 1.00 $ 1.00
Preferred stock, authorized shares 400,000 400,000 400,000
Preferred stock, issued shares 0 0 0
Preferred stock, outstanding shares 0 0 0
Common stock, par value (in dollars per share) $ 0.10 $ 0.10 $ 0.10
Common stock, authorized shares 1,000,000,000.0 1,000,000,000.0 1,000,000,000.0
Common stock, issued shares 258,000,000 256,000,000 260,000,000
Common stock, outstanding shares 258,000,000 256,000,000 260,000,000
v3.20.2
Condensed Consolidated Statements of Earnings - USD ($)
shares in Millions, $ in Millions
3 Months Ended 9 Months Ended
Oct. 31, 2020
Nov. 02, 2019
Oct. 31, 2020
Nov. 02, 2019
Condensed Consolidated Statements of Earnings [Abstract]        
Revenue $ 11,853 $ 9,764 $ 30,325 $ 28,442
Cost of sales 9,058 7,403 23,295 21,629
Gross profit 2,795 2,361 7,030 6,813
Selling, general and administrative expenses 2,123 1,973 5,560 5,730
Restructuring charges 111 (7) 112 41
Operating income 561 395 1,358 1,042
Other income (expense):        
Gain on sale of investments   1   1
Investment income and other 5 9 19 33
Interest expense (11) (16) (43) (50)
Earnings before income tax expense 555 389 1,334 1,026
Income tax expense 164 96 352 230
Net earnings $ 391 $ 293 $ 982 $ 796
Basic earnings per share $ 1.50 $ 1.11 $ 3.79 $ 2.99
Diluted earnings per share $ 1.48 $ 1.10 $ 3.74 $ 2.96
Weighted-average common shares outstanding        
Basic 259.8 263.2 259.3 266.0
Diluted 263.7 265.2 262.5 269.1
v3.20.2
Condensed Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Oct. 31, 2020
Nov. 02, 2019
Oct. 31, 2020
Nov. 02, 2019
Condensed Consolidated Statements of Comprehensive Income [Abstract]        
Net earnings $ 391 $ 293 $ 982 $ 796
Foreign currency translation adjustments, net of tax 10 (4) (25) (4)
Cash flow hedges 2   (2)  
Comprehensive income $ 403 $ 289 $ 955 $ 792
v3.20.2
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Millions
9 Months Ended
Oct. 31, 2020
Nov. 02, 2019
Operating activities    
Net earnings $ 982 $ 796
Adjustments to reconcile net earnings to total cash provided by operating activities:    
Depreciation and amortization 628 607
Restructuring charges 112 41
Stock-based compensation 107 109
Deferred income taxes 19 20
Other, net 10 16
Changes in operating assets and liabilities, net of acquired assets and liabilities:    
Receivables 106 (36)
Merchandise inventories (2,300) (2,159)
Other assets (60) (2)
Accounts payable 3,824 1,984
Income taxes 121 (147)
Other liabilities 358 (292)
Total cash provided by operating activities 3,907 937
Investing activities    
Additions to property and equipment (534) (586)
Purchases of investments (620) (319)
Acquisitions, net of cash acquired   (145)
Sales of investments   322
Other, net 1 1
Total cash used in investing activities (1,153) (727)
Financing activities    
Repurchase of common stock (62) (696)
Issuance of common stock 28 45
Dividends paid (426) (398)
Borrowings of debt 1,892  
Repayments of debt (1,261) (11)
Other, net (1)  
Total cash provided by (used in) financing activities 170 (1,060)
Effect of exchange rate changes on cash and cash equivalents (8) (2)
Increase (decrease) in cash, cash equivalents and restricted cash 2,916 (852)
Cash, cash equivalents and restricted cash at beginning of period 2,355 2,184
Cash, cash equivalents and restricted cash at end of period $ 5,271 $ 1,332
v3.20.2
Condensed Consolidated Statements of Changes in Shareholders' Equity - USD ($)
shares in Millions, $ in Millions
Common Stock [Member]
Additional Paid-In Capital [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Total
Balances (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 266        
Net earnings     796   796
Other comprehensive income (loss), net of tax          
Foreign currency translation adjustments, net of tax       (4) (4)
Stock-based compensation   $ 109     109
Issuance of common stock   45     45
Issuance of common stock (in shares) 4        
Common stock dividends   6 (404)   (398)
Repurchase of common stock $ (1) (160) (546)   (707)
Repurchase of common stock (in shares) (10)        
Balances at Nov. 02, 2019 $ 26   2,809 290 3,125
Balances (in shares) at Nov. 02, 2019 260        
Balances at Aug. 03, 2019 $ 26   2,965 294 3,285
Balances (in shares) at Aug. 03, 2019 265        
Net earnings     293   293
Other comprehensive income (loss), net of tax          
Foreign currency translation adjustments, net of tax       (4) (4)
Stock-based compensation   35     35
Issuance of common stock   18     18
Common stock dividends   2 (133)   (131)
Repurchase of common stock   (55) (316)   (371)
Repurchase of common stock (in shares) (5)        
Balances at Nov. 02, 2019 $ 26   2,809 290 3,125
Balances (in shares) at Nov. 02, 2019 260        
Balances at Feb. 01, 2020 $ 26   3,158 295 3,479
Balances (in shares) at Feb. 01, 2020 256        
Net earnings     982   982
Other comprehensive income (loss), net of tax          
Foreign currency translation adjustments, net of tax       (25) (25)
Cash flow hedges       (2) (2)
Stock-based compensation   106     106
Issuance of common stock   28     28
Issuance of common stock (in shares) 3        
Common stock dividends   7 (433)   (426)
Repurchase of common stock   (8) (48)   (56)
Repurchase of common stock (in shares) (1)        
Balances at Oct. 31, 2020 $ 26 133 3,659 268 4,086
Balances (in shares) at Oct. 31, 2020 258        
Balances at Aug. 01, 2020 $ 26 83 3,413 256 3,778
Balances (in shares) at Aug. 01, 2020 258        
Net earnings     391   391
Other comprehensive income (loss), net of tax          
Foreign currency translation adjustments, net of tax       10 10
Cash flow hedges       2 2
Stock-based compensation   41     41
Issuance of common stock   6     6
Common stock dividends   3 (145)   (142)
Balances at Oct. 31, 2020 $ 26 $ 133 $ 3,659 $ 268 $ 4,086
Balances (in shares) at Oct. 31, 2020 258        
v3.20.2
Condensed Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares
3 Months Ended 9 Months Ended
Oct. 31, 2020
Nov. 02, 2019
Oct. 31, 2020
Nov. 02, 2019
Condensed Consolidated Statements of Changes in Shareholders' Equity [Abstract]        
Dividends declared per common share $ 0.55 $ 0.50 $ 1.65 $ 1.50
v3.20.2
Basis of Presentation
9 Months Ended
Oct. 31, 2020
Basis of Presentation [Abstract]  
Basis of Presentation 1. Basis of Presentation

Unless the context otherwise requires, the use of the terms “Best Buy,” “we,” “us” and “our” in these Notes to Condensed Consolidated Financial Statements refers to Best Buy Co., Inc. and, as applicable, its consolidated subsidiaries.

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

Historically, we have generated a large proportion of our revenue and earnings in the fiscal fourth quarter, which includes the majority of the holiday shopping season in the U.S., Canada and Mexico. Due to the seasonal nature of our business, interim results are not necessarily indicative of results for the entire fiscal year. The interim financial statements and the related notes included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended February 1, 2020. The first nine months of fiscal 2021 and fiscal 2020 included 39 weeks.

In order to align our fiscal reporting periods and comply with statutory filing requirements, we consolidate the financial results of our Mexico operations on a one-month lag. Our policy is to accelerate recording the effect of events occurring in the lag period that significantly affect our condensed consolidated financial statements. Other than as disclosed in Note 2, Restructuring Charges, no such events were identified for the reported periods.

In preparing the accompanying condensed consolidated financial statements, we evaluated the period from October 31, 2020, through the date the financial statements were issued for material subsequent events requiring recognition or disclosure. No such events were identified for the reported periods.

Total Cash, Cash Equivalents and Restricted Cash

The reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets to the totals shown within the Condensed Consolidated Statements of Cash Flows was as follows ($ in millions):

October 31, 2020

February 1, 2020

November 2, 2019

Cash and cash equivalents

$

5,136 

$

2,229 

$

1,205 

Restricted cash included in Other current assets

135 

126 

127 

Total cash, cash equivalents and restricted cash

$

5,271 

$

2,355 

$

1,332 

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

 
v3.20.2
Restructuring Charges
9 Months Ended
Oct. 31, 2020
Restructuring Charges [Abstract]  
Restructuring Charges 2. Restructuring Charges

Restructuring charges were as follows ($ in millions):

Three Months Ended

Nine Months Ended

October 31, 2020

November 2, 2019

October 31, 2020

November 2, 2019

Mexico Exit and Corporate Reorganization(1)

$

148 

$

-

$

148 

$

-

Fiscal 2020 U.S. Retail Operating Model Changes

(1)

(7)

-

41 

Total

$

147 

$

(7)

$

148 

$

41 

(1)Includes $36 million related to inventory markdowns recorded in Cost of sales on our Condensed Consolidated Statements of Earnings for the three and nine months ended October 31, 2020.

Mexico Exit and Corporate Reorganization

The novel coronavirus disease ("COVID-19") 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 these needs. In light of these changes, we have re-examined our Building the New Blue Strategy and adjusted our plans to ensure that our focus and resources are closely aligned with the opportunities we see in front of us. As a result, during the third quarter of fiscal 2021, we made the decision to exit our operations in Mexico later this fiscal year and took other actions within our Domestic segment to more broadly align our corporate organizational structure in support of our strategy.

Charges incurred in our International segment related to our decision to exit our operations in Mexico. We expect to incur additional pre-tax restructuring charges, primarily related to foreign currency translation adjustments, of approximately $50 million to $75 million. We expect operations in Mexico to be substantially complete during the fourth quarter of fiscal 2021 or early fiscal 2022.

Charges incurred in our Domestic segment primarily related to termination benefits associated with corporate organizational changes as well as impairments of technology assets held in service of our Mexico operations.

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

All charges incurred related to this plan are from continuing operations and are presented on our Condensed Consolidated Statements of Earnings as follows ($ in millions):

Statement of

Three and Nine Months Ended October 31, 2020

Earnings Location

Domestic

International

Total

Inventory markdowns

Cost of sales

$

-

$

36 

$

36 

Asset impairments

Restructuring charges

10 

48 

58 

Termination benefits

Restructuring charges

36 

18 

54 

$

46 

$

102 

$

148 

As of October 31, 2020, our termination benefits liability was $47 million, which included $7 million of cash payments related to our Domestic segment.

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 $10 million related to a voluntary early retirement offer, related to termination benefits within our Domestic segment and are presented within Restructuring charges from continuing operations on our Condensed Consolidated Statements of Earnings. As of October 31, 2020, the cumulative amount of charges incurred was $41 million and no material liability remains.
v3.20.2
Fair Value Measurements
9 Months Ended
Oct. 31, 2020
Fair Value Measurements [Abstract]  
Fair Value Measurements 3. Fair Value Measurements

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

Recurring Fair Value Measurements

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

Fair Value at

Balance Sheet Location(1)

Fair Value Hierarchy

October 31, 2020

February 1, 2020

November 2, 2019

Assets

Money market funds(2)

Cash and cash equivalents

Level 1

$

4,119 

$

524 

$

21 

Commercial paper(2)

Cash and cash equivalents

Level 2

-

75 

-

Time deposits(3)

Cash and cash equivalents

Level 2

84 

185 

85 

Time deposits(3)

Short-term investments

Level 2

545 

-

-

Money market funds(2)

Other current assets

Level 1

29 

16 

20 

Time deposits(3)

Other current assets

Level 2

100 

101 

100 

Foreign currency derivative instruments(4)

Other current assets

Level 2

2 

1 

-

Interest rate swap derivative instruments(4)

Other current assets

Level 2

7 

-

-

Marketable securities that fund deferred compensation(5)

Other assets

Level 1

51 

48 

47 

Interest rate swap derivative instruments(4)

Other assets

Level 2

95 

89 

70 

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

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

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

(4)Valued using readily observable market inputs. These instruments are custom, over-the-counter contracts with various bank counterparties that are not traded on an active market. See Note 7, Derivative Instruments, for additional information.

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

Fair Value of Financial Instruments

The fair values of cash, receivables, accounts payable and other payables approximated their carrying values because of the short-term nature of these instruments. If these instruments were measured at fair value in the financial statements, they would be classified as Level 1 in the fair value hierarchy. Fair values for other investments held at cost are not readily available, but we estimate that the carrying values for these investments approximate their fair values.

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

October 31, 2020

February 1, 2020

November 2, 2019

Fair Value

Carrying Value

Fair Value

Carrying Value

Fair Value

Carrying Value

Long-term debt(1)

$

1,954 

$

1,902 

$

1,322 

$

1,239 

$

1,288 

$

1,220 

(1)Includes the current portion of long-term debt and excludes debt discounts, issuance costs and finance lease obligations.

 
v3.20.2
Goodwill and Intangible Assets
9 Months Ended
Oct. 31, 2020
Goodwill and Intangible Assets [Abstract]  
Goodwill and Intangible Assets 4. Goodwill and Intangible Assets

Goodwill

Balances related to goodwill were as follows ($ in millions):

October 31, 2020

February 1, 2020

November 2, 2019

Gross Carrying
Amount

Cumulative
Impairment

Gross Carrying
Amount

Cumulative
Impairment

Gross Carrying
Amount

Cumulative
Impairment

Domestic

$

1,053 

$

(67)

$

1,051 

$

(67)

$

1,049 

$

(67)

International

608 

(608)

608 

(608)

608 

(608)

Total

$

1,661 

$

(675)

$

1,659 

$

(675)

$

1,657 

$

(675)

No impairment charges were recorded during the fiscal periods presented.

Indefinite-Lived Intangible Assets

In the first quarter of fiscal 2021, we made the decision to phase out our Pacific Sales tradename in our U.S. Best Buy stores over the coming years. Consequently, we reclassified the tradename from an indefinite-lived intangible asset to a definite-lived intangible asset and have no indefinite-lived intangible assets remaining as of October 31, 2020. The carrying value of the tradename was $18 million as of February 1, 2020, and November 2, 2019, respectively, and was recorded within Other assets on our Condensed Consolidated Balance Sheets.

Definite-Lived Intangible Assets

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

October 31, 2020

February 1, 2020

November 2, 2019

Weighted-Average

Gross Carrying
Amount

Accumulated
Amortization

Gross Carrying
Amount

Accumulated
Amortization

Gross Carrying
Amount

Accumulated
Amortization

Useful Life Remaining as of October 31, 2020 (in years)

Customer relationships

$

339 

$

111 

$

339 

$

70 

$

341 

$

56 

6.7

Tradenames

81 

20 

63 

10 

63 

9 

5.1

Developed technology

56 

24 

56 

15 

56 

11 

2.8

Total

$

476 

$

155 

$

458 

$

95 

$

460 

$

76 

6.0

Amortization expense was as follows ($ in millions):

Statement of

Three Months Ended

Nine Months Ended

Earnings Location

October 31, 2020

November 2, 2019

October 31, 2020

November 2, 2019

Amortization expense

SG&A

$

20 

$

18 

$

60 

$

53 

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

Amortization Expense

Remainder of fiscal 2021

$

20 

Fiscal 2022

80 

Fiscal 2023

79 

Fiscal 2024

54 

Fiscal 2025

16 

Fiscal 2026

16 

Thereafter

56 

v3.20.2
Debt
9 Months Ended
Oct. 31, 2020
Debt [Abstract]  
Debt 5. Debt

Short-Term Debt

In light of the uncertainty surrounding the impact of COVID-19 and to maximize liquidity, we executed a short-term draw on the full amount of our $1.25 billion five year senior unsecured revolving credit facility (the “Facility”) on March 19, 2020, which remained outstanding until July 27, 2020, when the Facility was repaid in full. There were no borrowings outstanding under the Facility as of October 31, 2020, February 1, 2020, or November 2, 2019.

Information regarding our short-term debt for the nine months ended October 31, 2020, was as follows ($ in millions):

Average Amount Outstanding

Maximum Amount Outstanding

Weighted Average Interest Rate

Short-term debt

$

595 

$

1,250 

0.9 

%

Long-Term Debt

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

October 31, 2020

February 1, 2020

November 2, 2019

Notes, 5.50%, due March 15, 2021 (“2021 Notes”)

$

650 

$

650 

$

650 

Notes, 4.45%, due October 1, 2028 (“2028 Notes”)

500 

500 

500 

Notes, 1.95%, due October 1, 2030 (“2030 Notes”)

650 

-

-

Interest rate swap valuation adjustments

102 

89 

70 

Subtotal

1,902 

1,239 

1,220 

Debt discounts and issuance costs

(13)

(6)

(6)

Finance lease obligations

37 

38 

39 

Total long-term debt

1,926 

1,271 

1,253 

Less current portion

670 

14 

14 

Total long-term debt, less current portion

$

1,256 

$

1,257 

$

1,239 

2030 Notes

In October 2020, we issued 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. The net proceeds will be used to replace our 2021 Notes that mature in March 2021, which we expect to retire during the fourth quarter of fiscal 2021 by exercising our option to redeem the 2021 Notes at par.

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.

See Note 3, Fair Value Measurements, for the fair value of long-term debt.
v3.20.2
Revenue
9 Months Ended
Oct. 31, 2020
Revenue [Abstract]  
Revenue 6. Revenue

We generate all of our revenue from contracts with customers from the sale of products and services. Contract balances primarily consist of receivables and contract 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):

October 31, 2020

February 1, 2020

November 2, 2019

Receivables, net(1)

$

625 

$

567 

$

591 

Short-term contract liabilities included in:

Unredeemed gift card liabilities

278 

281 

271 

Deferred revenue

788 

501 

445 

Accrued liabilities

71 

139 

145 

Long-term contract liabilities included in:

Long-term liabilities

7 

9 

9 

(1)Receivables are recorded net of allowances for doubtful accounts of $30 million, $14 million and $13 million as of October 31, 2020, February 1, 2020, and November 2, 2019, respectively.

During the first nine months of fiscal 2021 and fiscal 2020, $792 million and $762 million of revenue was recognized, respectively, that was included in the contract liabilities at the beginning of the respective periods.

See Note 10, Segments, for information on our revenue by reportable segment and product category.
v3.20.2
Derivative Instruments
9 Months Ended
Oct. 31, 2020
Derivative Instruments [Abstract]  
Derivative Instruments 7. Derivative Instruments

We manage our economic and transaction exposure to certain risks by using foreign exchange forward contracts to hedge against the effect of Canadian dollar exchange rate fluctuations on a portion of our net investment in our Canadian operations. We also use interest rate swaps to mitigate the effect of interest rate fluctuations on our 2021 Notes and 2028 Notes. In addition, we use foreign currency forward contracts not designated as hedging instruments to manage the impact of fluctuations in foreign currency exchange rates relative to recognized receivable and payable balances denominated in non-functional currencies.

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

Our derivative instruments designated as net investment hedges, interest rate swaps and cash flow hedges are recorded on our Condensed Consolidated Balance Sheets at fair value. See Note 3, Fair Value Measurements, for gross fair values of our outstanding derivative instruments and corresponding fair value classifications.

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

Contract Type

October 31, 2020

February 1, 2020

November 2, 2019

Derivatives designated as net investment hedges

$

68 

$

129 

$

30 

Derivatives designated as interest rate swaps

1,150 

1,150 

1,150 

No hedge designation (foreign exchange contracts)

81 

31 

62 

Total

$

1,299 

$

1,310 

$

1,242 

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

Gain (Loss) Recognized

Three Months Ended

Nine Months Ended

Statement of Earnings Location

October 31, 2020

November 2, 2019

October 31, 2020

November 2, 2019

Interest rate swap contracts

Interest expense

$

(32)

$

(8)

$

13 

$

45 

Adjustments to carrying value of long-term debt

Interest expense

32 

8 

(13)

(45)

Total

$

-

$

-

$

-

$

-

v3.20.2
Earnings per Share
9 Months Ended
Oct. 31, 2020
Earnings per Share [Abstract]  
Earnings per Share 8. Earnings per Share

We compute our basic earnings per share based on the weighted-average common shares outstanding and our diluted earnings per share based on the weighted-average common shares outstanding adjusted by the number of additional shares that would have been outstanding had potentially dilutive common shares been issued.

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

Three Months Ended

Nine Months Ended

October 31, 2020

November 2, 2019

October 31, 2020

November 2, 2019

Numerator

Net earnings

$

391 

$

293 

$

982 

$

796 

Denominator

Weighted-average common shares outstanding

259.8 

263.2 

259.3 

266.0 

Dilutive effect of stock compensation plan awards

3.9 

2.0 

3.2 

3.1 

Weighted-average common shares outstanding, assuming dilution

263.7 

265.2 

262.5 

269.1 

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

-

1.1 

-

0.9 

Basic earnings per share

$

1.50 

$

1.11 

$

3.79 

$

2.99 

Diluted earnings per share

$

1.48 

$

1.10 

$

3.74 

$

2.96 

v3.20.2
Repurchase of Common Stock
9 Months Ended
Oct. 31, 2020
Repurchase of Common Stock [Abstract]  
Repurchase of Common Stock 9. Repurchase of Common Stock

On February 23, 2019, our Board of Directors authorized a $3.0 billion share repurchase program. There is no expiration date governing the period over which we can repurchase shares under the February 2019 authorization. On March 21, 2020, we announced the suspension of all share repurchases to conserve liquidity in light of COVID-19-related uncertainties. We resumed repurchases in the fourth quarter of fiscal 2021.

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

Three Months Ended

Nine Months Ended

October 31, 2020

November 2, 2019

October 31, 2020

November 2, 2019

Total cost of shares repurchased

$

-

$

371

$

56

$

707

Average price per share

$

-

$

67.28

$

86.30

$

68.56

Number of shares repurchased

-

5.5

0.6

10.3

As of October 31, 2020, $1.9 billion of the $3.0 billion share repurchase authorization was available.
v3.20.2
Segments
9 Months Ended
Oct. 31, 2020
Segments [Abstract]  
Segments 10. Segments

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

Three Months Ended

Nine Months Ended

October 31, 2020

November 2, 2019

October 31, 2020

November 2, 2019

Revenue by reportable segment

Domestic

$

10,850 

$

8,964 

$

27,893 

$

26,266 

International

1,003 

800 

2,432 

2,176 

Total revenue

$

11,853 

$

9,764 

$

30,325 

$

28,442 

Revenue by product category

Domestic:

Computing and Mobile Phones

$

5,059 

$

4,238 

$

13,130 

$

12,006 

Consumer Electronics

3,197 

2,659 

8,090 

8,101 

Appliances

1,478 

1,071 

3,703 

3,170 

Entertainment

509 

441 

1,430 

1,353 

Services

578 

519 

1,461 

1,526 

Other

29 

36 

79 

110 

Total Domestic revenue

$

10,850 

$

8,964 

$

27,893 

$

26,266 

International:

Computing and Mobile Phones

$

531 

$

407 

$

1,211 

$

1,020 

Consumer Electronics

265 

229 

663 

663 

Appliances

93 

67 

243 

209 

Entertainment

50 

37 

156 

109 

Services

51 

50 

119 

138 

Other

13 

10 

40 

37 

Total International revenue

$

1,003 

$

800 

$

2,432 

$

2,176 

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

Three Months Ended

Nine Months Ended

October 31, 2020

November 2, 2019

October 31, 2020

November 2, 2019

Domestic

$

612 

$

388 

$

1,377 

$

1,029 

International

(51)

7 

(19)

13 

Total operating income

561 

395 

1,358 

1,042 

Other income (expense):

Gain on sale of investments

-

1 

-

1 

Investment income and other

5 

9 

19 

33 

Interest expense

(11)

(16)

(43)

(50)

Earnings before income tax expense

$

555 

$

389 

$

1,334 

$

1,026 

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

October 31, 2020

February 1, 2020

November 2, 2019

Domestic

$

19,525 

$

14,247 

$

15,442 

International

1,677 

1,344 

1,484 

Total assets

$

21,202 

$

15,591 

$

16,926 

v3.20.2
Contingencies
9 Months Ended
Oct. 31, 2020
Contingencies [Abstract]  
Contingencies 11. Contingencies

We are involved in a number of legal proceedings. Where appropriate, we have made accruals with respect to these matters, which are reflected on our Condensed Consolidated Financial Statements. However, there are cases where liability is not probable or the amount cannot be reasonably estimated and, therefore, accruals have not been made. We provide disclosure of matters where we believe it is reasonably possible the impact may be material to our Condensed Consolidated Financial Statements.

v3.20.2
Basis of Presentation (Policies)
9 Months Ended
Oct. 31, 2020
Basis of Presentation [Abstract]  
Basis of Presentation Unless the context otherwise requires, the use of the terms “Best Buy,” “we,” “us” and “our” in these Notes to Condensed Consolidated Financial Statements refers to Best Buy Co., Inc. and, as applicable, its consolidated subsidiaries.

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

Historically, we have generated a large proportion of our revenue and earnings in the fiscal fourth quarter, which includes the majority of the holiday shopping season in the U.S., Canada and Mexico. Due to the seasonal nature of our business, interim results are not necessarily indicative of results for the entire fiscal year. The interim financial statements and the related notes included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended February 1, 2020. The first nine months of fiscal 2021 and fiscal 2020 included 39 weeks.

In order to align our fiscal reporting periods and comply with statutory filing requirements, we consolidate the financial results of our Mexico operations on a one-month lag. Our policy is to accelerate recording the effect of events occurring in the lag period that significantly affect our condensed consolidated financial statements. Other than as disclosed in Note 2, Restructuring Charges, no such events were identified for the reported periods.

In preparing the accompanying condensed consolidated financial statements, we evaluated the period from October 31, 2020, through the date the financial statements were issued for material subsequent events requiring recognition or disclosure. No such events were identified for the reported periods.

Total Cash, Cash Equivalents and Restricted Cash Total Cash, Cash Equivalents and Restricted Cash

The reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets to the totals shown within the Condensed Consolidated Statements of Cash Flows was as follows ($ in millions):

October 31, 2020

February 1, 2020

November 2, 2019

Cash and cash equivalents

$

5,136 

$

2,229 

$

1,205 

Restricted cash included in Other current assets

135 

126 

127 

Total cash, cash equivalents and restricted cash

$

5,271 

$

2,355 

$

1,332 

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

v3.20.2
Basis of Presentation (Tables)
9 Months Ended
Oct. 31, 2020
Basis of Presentation [Abstract]  
Total Cash, Cash Equivalents and Restricted Cash

October 31, 2020

February 1, 2020

November 2, 2019

Cash and cash equivalents

$

5,136 

$

2,229 

$

1,205 

Restricted cash included in Other current assets

135 

126 

127 

Total cash, cash equivalents and restricted cash

$

5,271 

$

2,355 

$

1,332 

v3.20.2
Restructuring Charges (Tables)
9 Months Ended
Oct. 31, 2020
Restructuring Cost and Reserve [Line Items]  
Composition of Restructuring Charges

Three Months Ended

Nine Months Ended

October 31, 2020

November 2, 2019

October 31, 2020

November 2, 2019

Mexico Exit and Corporate Reorganization(1)

$

148 

$

-

$

148 

$

-

Fiscal 2020 U.S. Retail Operating Model Changes

(1)

(7)

-

41 

Total

$

147 

$

(7)

$

148 

$

41 

(1)Includes $36 million related to inventory markdowns recorded in Cost of sales on our Condensed Consolidated Statements of Earnings for the three and nine months ended October 31, 2020.

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

Statement of

Three and Nine Months Ended October 31, 2020

Earnings Location

Domestic

International

Total

Inventory markdowns

Cost of sales

$

-

$

36 

$

36 

Asset impairments

Restructuring charges

10 

48 

58 

Termination benefits

Restructuring charges

36 

18 

54 

$

46 

$

102 

$

148 

v3.20.2
Fair Value Measurements (Tables)
9 Months Ended
Oct. 31, 2020
Fair Value Measurements [Abstract]  
Fair Value, Assets and Liabilities Measured on Recurring Basis

Fair Value at

Balance Sheet Location(1)

Fair Value Hierarchy

October 31, 2020

February 1, 2020

November 2, 2019

Assets

Money market funds(2)

Cash and cash equivalents

Level 1

$

4,119 

$

524 

$

21 

Commercial paper(2)

Cash and cash equivalents

Level 2

-

75 

-

Time deposits(3)

Cash and cash equivalents

Level 2

84 

185 

85 

Time deposits(3)

Short-term investments

Level 2

545 

-

-

Money market funds(2)

Other current assets

Level 1

29 

16 

20 

Time deposits(3)

Other current assets

Level 2

100 

101 

100 

Foreign currency derivative instruments(4)

Other current assets

Level 2

2 

1 

-

Interest rate swap derivative instruments(4)

Other current assets

Level 2

7 

-

-

Marketable securities that fund deferred compensation(5)

Other assets

Level 1

51 

48 

47 

Interest rate swap derivative instruments(4)

Other assets

Level 2

95 

89 

70 

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

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

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

(4)Valued using readily observable market inputs. These instruments are custom, over-the-counter contracts with various bank counterparties that are not traded on an active market. See Note 7, Derivative Instruments, for additional information.

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

Fair Value of Financial Instruments

October 31, 2020

February 1, 2020

November 2, 2019

Fair Value

Carrying Value

Fair Value

Carrying Value

Fair Value

Carrying Value

Long-term debt(1)

$

1,954 

$

1,902 

$

1,322 

$

1,239 

$

1,288 

$

1,220 

(1)Includes the current portion of long-term debt and excludes debt discounts, issuance costs and finance lease obligations.

v3.20.2
Goodwill and Intangible Assets (Tables)
9 Months Ended
Oct. 31, 2020
Goodwill and Intangible Assets [Abstract]  
Gross Carrying Amount of Goodwill and Cumulative Goodwill Impairment

October 31, 2020

February 1, 2020

November 2, 2019

Gross Carrying
Amount

Cumulative
Impairment

Gross Carrying
Amount

Cumulative
Impairment

Gross Carrying
Amount

Cumulative
Impairment

Domestic

$

1,053 

$

(67)

$

1,051 

$

(67)

$

1,049 

$

(67)

International

608 

(608)

608 

(608)

608 

(608)

Total

$

1,661 

$

(675)

$

1,659 

$

(675)

$

1,657 

$

(675)

Definite-Lived Intangible Assets

October 31, 2020

February 1, 2020

November 2, 2019

Weighted-Average

Gross Carrying
Amount

Accumulated
Amortization

Gross Carrying
Amount

Accumulated
Amortization

Gross Carrying
Amount

Accumulated
Amortization

Useful Life Remaining as of October 31, 2020 (in years)

Customer relationships

$

339 

$

111 

$

339 

$

70 

$

341 

$

56 

6.7

Tradenames

81 

20 

63 

10 

63 

9 

5.1

Developed technology

56 

24 

56 

15 

56 

11 

2.8

Total

$

476 

$

155 

$

458 

$

95 

$

460 

$

76 

6.0

Amortization Expense

Statement of

Three Months Ended

Nine Months Ended

Earnings Location

October 31, 2020

November 2, 2019

October 31, 2020

November 2, 2019

Amortization expense

SG&A

$

20 

$

18 

$

60 

$

53 

Amortization Expense Expected to be Recognized

Amortization Expense

Remainder of fiscal 2021

$

20 

Fiscal 2022

80 

Fiscal 2023

79 

Fiscal 2024

54 

Fiscal 2025

16 

Fiscal 2026

16 

Thereafter

56 

v3.20.2
Debt (Tables)
9 Months Ended
Oct. 31, 2020
Debt [Abstract]  
Schedule of Short-term Debt

Average Amount Outstanding

Maximum Amount Outstanding

Weighted Average Interest Rate

Short-term debt

$

595 

$

1,250 

0.9 

%

Schedule of Long-term Debt

October 31, 2020

February 1, 2020

November 2, 2019

Notes, 5.50%, due March 15, 2021 (“2021 Notes”)

$

650 

$

650 

$

650 

Notes, 4.45%, due October 1, 2028 (“2028 Notes”)

500 

500 

500 

Notes, 1.95%, due October 1, 2030 (“2030 Notes”)

650 

-

-

Interest rate swap valuation adjustments

102 

89 

70 

Subtotal

1,902 

1,239 

1,220 

Debt discounts and issuance costs

(13)

(6)

(6)

Finance lease obligations

37 

38 

39 

Total long-term debt

1,926 

1,271 

1,253 

Less current portion

670 

14 

14 

Total long-term debt, less current portion

$

1,256 

$

1,257 

$

1,239 

v3.20.2
Revenue (Tables)
9 Months Ended
Oct. 31, 2020
Revenue [Abstract]  
Contract Balances and Changes in Contract Balances

October 31, 2020

February 1, 2020

November 2, 2019

Receivables, net(1)

$

625 

$

567 

$

591 

Short-term contract liabilities included in:

Unredeemed gift card liabilities

278 

281 

271 

Deferred revenue

788 

501 

445 

Accrued liabilities

71 

139 

145 

Long-term contract liabilities included in:

Long-term liabilities

7 

9 

9 

(1)Receivables are recorded net of allowances for doubtful accounts of $30 million, $14 million and $13 million as of October 31, 2020, February 1, 2020, and November 2, 2019, respectively.

v3.20.2
Derivative Instruments (Tables)
9 Months Ended
Oct. 31, 2020
Derivative Instruments [Abstract]  
Notional Amount of Derivative Instruments

Contract Type

October 31, 2020

February 1, 2020

November 2, 2019

Derivatives designated as net investment hedges

$

68 

$

129 

$

30 

Derivatives designated as interest rate swaps

1,150 

1,150 

1,150 

No hedge designation (foreign exchange contracts)

81 

31 

62 

Total

$

1,299 

$

1,310 

$

1,242 

Effects of Interest Rate Derivatives and Adjustments to LTD on Earnings

Gain (Loss) Recognized

Three Months Ended

Nine Months Ended

Statement of Earnings Location

October 31, 2020

November 2, 2019

October 31, 2020

November 2, 2019

Interest rate swap contracts

Interest expense

$

(32)

$

(8)

$

13 

$

45 

Adjustments to carrying value of long-term debt

Interest expense

32 

8 

(13)

(45)

Total

$

-

$

-

$

-

$

-

v3.20.2
Earnings per Share (Tables)
9 Months Ended
Oct. 31, 2020
Earnings per Share [Abstract]  
Schedule of Calculation of Numerator and Denominator in Earnings Per Share

Three Months Ended

Nine Months Ended

October 31, 2020

November 2, 2019

October 31, 2020

November 2, 2019

Numerator

Net earnings

$

391 

$

293 

$

982 

$

796 

Denominator

Weighted-average common shares outstanding

259.8 

263.2 

259.3 

266.0 

Dilutive effect of stock compensation plan awards

3.9 

2.0 

3.2 

3.1 

Weighted-average common shares outstanding, assuming dilution

263.7 

265.2 

262.5 

269.1 

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

-

1.1 

-

0.9 

Basic earnings per share

$

1.50 

$

1.11 

$

3.79 

$

2.99 

Diluted earnings per share

$

1.48 

$

1.10 

$

3.74 

$

2.96 

v3.20.2
Repurchase of Common Stock (Tables)
9 Months Ended
Oct. 31, 2020
Repurchase of Common Stock [Abstract]  
Schedule of Share Repurchases

Three Months Ended

Nine Months Ended

October 31, 2020

November 2, 2019

October 31, 2020

November 2, 2019

Total cost of shares repurchased

$

-

$

371

$

56

$

707

Average price per share

$

-

$

67.28

$

86.30

$

68.56

Number of shares repurchased

-

5.5

0.6

10.3

v3.20.2
Segments (Tables)
9 Months Ended
Oct. 31, 2020
Segments [Abstract]  
Revenue by Reportable Segment and Product Category

Three Months Ended

Nine Months Ended

October 31, 2020

November 2, 2019

October 31, 2020

November 2, 2019

Revenue by reportable segment

Domestic

$

10,850 

$

8,964 

$

27,893 

$

26,266 

International

1,003 

800 

2,432 

2,176 

Total revenue

$

11,853 

$

9,764 

$

30,325 

$

28,442 

Revenue by product category

Domestic:

Computing and Mobile Phones

$

5,059 

$

4,238 

$

13,130 

$

12,006 

Consumer Electronics

3,197 

2,659 

8,090 

8,101 

Appliances

1,478 

1,071 

3,703 

3,170 

Entertainment

509 

441 

1,430 

1,353 

Services

578 

519 

1,461 

1,526 

Other

29 

36 

79 

110 

Total Domestic revenue

$

10,850 

$

8,964 

$

27,893 

$

26,266 

International:

Computing and Mobile Phones

$

531 

$

407 

$

1,211 

$

1,020 

Consumer Electronics

265 

229 

663 

663 

Appliances

93 

67 

243 

209 

Entertainment

50 

37 

156 

109 

Services

51 

50 

119 

138 

Other

13 

10 

40 

37 

Total International revenue

$

1,003 

$

800 

$

2,432 

$

2,176 

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

Three Months Ended

Nine Months Ended

October 31, 2020

November 2, 2019

October 31, 2020

November 2, 2019

Domestic

$

612 

$

388 

$

1,377 

$

1,029 

International

(51)

7 

(19)

13 

Total operating income

561 

395 

1,358 

1,042 

Other income (expense):

Gain on sale of investments

-

1 

-

1 

Investment income and other

5 

9 

19 

33 

Interest expense

(11)

(16)

(43)

(50)

Earnings before income tax expense

$

555 

$

389 

$

1,334 

$

1,026 

Assets by Reportable Segment

October 31, 2020

February 1, 2020

November 2, 2019

Domestic

$

19,525 

$

14,247 

$

15,442 

International

1,677 

1,344 

1,484 

Total assets

$

21,202 

$

15,591 

$

16,926 

v3.20.2
Basis of Presentation (Details) - USD ($)
$ in Millions
Oct. 31, 2020
Feb. 01, 2020
Nov. 02, 2019
Feb. 02, 2019
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]        
Cash and cash equivalents $ 5,136 $ 2,229 $ 1,205  
Restricted cash included in Other current assets 135 126 127  
Total cash, cash equivalents and restricted cash $ 5,271 $ 2,355 $ 1,332 $ 2,184
v3.20.2
Restructuring Charges (Narrative) (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Oct. 31, 2020
Nov. 02, 2019
Aug. 03, 2019
Oct. 31, 2020
Nov. 02, 2019
Restructuring Cost and Reserve [Line Items]          
Revenue $ 11,853 $ 9,764   $ 30,325 $ 28,442
Operating income 561 395   1,358 1,042
Restructuring charges 111 $ (7)   112 $ 41
Mexico Exit And Corporate Reorganization [Member]          
Restructuring Cost and Reserve [Line Items]          
Restructuring charges       148  
Restructuring Reserve 47     47  
Mexico Exit And Corporate Reorganization [Member] | Domestic [Member]          
Restructuring Cost and Reserve [Line Items]          
Restructuring Reserve 7     7  
Voluntary Early Retirement [Member] | U.S. Operating Model [Member]          
Restructuring Cost and Reserve [Line Items]          
Restructuring charges     $ 10    
Cumulative Amount 41     41  
Minimum [Member] | Mexico Exit And Corporate Reorganization [Member]          
Restructuring Cost and Reserve [Line Items]          
Expected charges 50     50  
Maximum [Member] | Mexico Exit And Corporate Reorganization [Member]          
Restructuring Cost and Reserve [Line Items]          
Expected charges $ 75     $ 75  
v3.20.2
Restructuring Charges (Composition of Restructuring Charges) (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Oct. 31, 2020
Nov. 02, 2019
Oct. 31, 2020
Nov. 02, 2019
Restructuring Cost and Reserve [Line Items]        
Restructuring charges $ 111 $ (7) $ 112 $ 41
Continuing Operations [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges 147 (7) 148 41
Mexico Exit And Corporate Reorganization [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges     148  
Inventory markdown 36   36  
Mexico Exit And Corporate Reorganization [Member] | Continuing Operations [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges 148   148  
Mexico Exit And Corporate Reorganization [Member] | Domestic [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges     46  
Mexico Exit And Corporate Reorganization [Member] | International [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges     102  
Mexico Exit And Corporate Reorganization [Member] | Inventory Markdowns [Member] | Cost of Sales [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges     36  
Mexico Exit And Corporate Reorganization [Member] | Inventory Markdowns [Member] | International [Member] | Cost of Sales [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges     36  
Mexico Exit And Corporate Reorganization [Member] | Asset Impairments [Member] | Restructuring Charges [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges     58  
Mexico Exit And Corporate Reorganization [Member] | Asset Impairments [Member] | Domestic [Member] | Restructuring Charges [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges     10  
Mexico Exit And Corporate Reorganization [Member] | Asset Impairments [Member] | International [Member] | Restructuring Charges [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges     48  
Mexico Exit And Corporate Reorganization [Member] | Termination Benefits [Member] | Restructuring Charges [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges     54  
Mexico Exit And Corporate Reorganization [Member] | Termination Benefits [Member] | Domestic [Member] | Restructuring Charges [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges     36  
Mexico Exit And Corporate Reorganization [Member] | Termination Benefits [Member] | International [Member] | Restructuring Charges [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges     $ 18  
U.S. Operating Model [Member] | Continuing Operations [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges $ (1) $ (7)   $ 41
v3.20.2
Fair Value Measurements (Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($)
$ in Millions
Oct. 31, 2020
Feb. 01, 2020
Nov. 02, 2019
Level 1 [Member] | Money market funds [Member]      
Assets      
Cash and cash equivalents $ 4,119 $ 524 $ 21
Other current assets 29 16 20
Level 1 [Member] | Marketable securities that fund deferred compensation [Member]      
Assets      
Other assets 51 48 47
Level 2 [Member] | Commercial paper [Member]      
Assets      
Cash and cash equivalents   75  
Level 2 [Member] | Time deposits [Member]      
Assets      
Cash and cash equivalents 84 185 85
Short-term investments 545    
Other current assets 100 101 100
Level 2 [Member] | Foreign currency derivative instruments [Member]      
Assets      
Other current assets 2 1  
Level 2 [Member] | Interest Rate Swap Derivative Instruments [Member]      
Assets      
Other current assets 7    
Other assets $ 95 $ 89 $ 70
v3.20.2
Fair Value Measurements (Fair Value of Financial Instruments) (Details) - USD ($)
$ in Millions
Oct. 31, 2020
Feb. 01, 2020
Nov. 02, 2019
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Carrying value $ 1,902 $ 1,239 $ 1,220
Long-term debt [Member]      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Carrying value 1,902 1,239 1,220
Level 2 [Member] | Long-term debt [Member]      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Fair Value $ 1,954 $ 1,322 $ 1,288
v3.20.2
Goodwill and Intangible Assets (Narrative) (Details) - USD ($)
9 Months Ended 12 Months Ended
Oct. 31, 2020
Nov. 02, 2019
Feb. 01, 2020
Intangible Assets [Line Items]      
Goodwill and intangible assets impairment charges $ 0 $ 0 $ 0
Tradename [Member]      
Intangible Assets [Line Items]      
Indefinite-lived intangible $ 0    
Definite-lived intangible assets   $ 18,000,000 $ 18,000,000
v3.20.2
Goodwill and Intangible Assets (Gross Carrying Amount of Goodwill and Cumulative Goodwill Impairment) (Details) - USD ($)
$ in Millions
Oct. 31, 2020
Feb. 01, 2020
Nov. 02, 2019
Goodwill [Line Items]      
Gross Carrying Amount $ 1,661 $ 1,659 $ 1,657
Cumulative Impairment (675) (675) (675)
Domestic [Member]      
Goodwill [Line Items]      
Gross Carrying Amount 1,053 1,051 1,049
Cumulative Impairment (67) (67) (67)
International [Member]      
Goodwill [Line Items]      
Gross Carrying Amount 608 608 608
Cumulative Impairment $ (608) $ (608) $ (608)
v3.20.2
Goodwill and Intangible Assets (Definite-Lived Intangible Assets) (Details) - USD ($)
$ in Millions
9 Months Ended
Oct. 31, 2020
Feb. 01, 2020
Nov. 02, 2019
Acquired Finite-Lived Intangible Assets [Line Items]      
Gross Carrying Amount $ 476 $ 458 $ 460
Accumulated Amortization $ 155 95 76
Weighted-Average Useful Life Remaining 6 years    
Customer Relationships [Member]      
Acquired Finite-Lived Intangible Assets [Line Items]      
Gross Carrying Amount $ 339 339 341
Accumulated Amortization $ 111 70 56
Weighted-Average Useful Life Remaining 6 years 8 months 12 days    
Tradename [Member]      
Acquired Finite-Lived Intangible Assets [Line Items]      
Gross Carrying Amount $ 81 63 63
Accumulated Amortization $ 20 10 9
Weighted-Average Useful Life Remaining 5 years 1 month 6 days    
Developed Technology [Member]      
Acquired Finite-Lived Intangible Assets [Line Items]      
Gross Carrying Amount $ 56 56 56
Accumulated Amortization $ 24 $ 15 $ 11
Weighted-Average Useful Life Remaining 2 years 9 months 18 days    
v3.20.2
Goodwill and Intangible Assets (Amortization Expense) (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Oct. 31, 2020
Nov. 02, 2019
Oct. 31, 2020
Nov. 02, 2019
Goodwill and Intangible Assets [Abstract]        
Amortization expense $ 20 $ 18 $ 60 $ 53
v3.20.2
Goodwill and Intangible Assets (Amortization Expense Expected to be Recognized) (Details)
$ in Millions
Oct. 31, 2020
USD ($)
Goodwill and Intangible Assets [Abstract]  
Remainder of fiscal 2021 $ 20
Fiscal 2022 80
Fiscal 2023 79
Fiscal 2024 54
Fiscal 2025 16
Fiscal 2026 16
Thereafter $ 56
v3.20.2
Debt (Narrative) (Short-Term Debt) (Details) - Revolving Credit Facility [Member] - USD ($)
Oct. 31, 2020
Feb. 01, 2020
Nov. 02, 2019
Line of Credit Facility [Line Items]      
Line of credit facility, maximum borrowing capacity $ 1,250,000,000    
Outstanding borrowings $ 0 $ 0 $ 0
v3.20.2
Debt (Narrative) (Long-Term Debt) (Details) - Notes Due 2030 [Member]
$ in Millions
1 Months Ended 9 Months Ended
Oct. 31, 2020
USD ($)
Oct. 31, 2020
USD ($)
Debt Instrument [Line Items]    
Interest rate 1.95% 1.95%
Debt Issuance Costs, Gross $ 8 $ 8
Proceeds from Debt, Net of Issuance Costs $ 642  
Debt Instrument, Redemption Price, Percentage   100.00%
Debt Instrument, Redemption Price, Control Triggering Percentage   101.00%
v3.20.2
Debt (Schedule of Short-term Debt) (Details)
$ in Millions
9 Months Ended
Oct. 31, 2020
USD ($)
Debt [Abstract]  
Average Outstanding Amount $ 595
Maximum Amount Outstanding $ 1,250
Weighted Average Interest Rate 0.90%
v3.20.2
Debt (Schedule of Long-Term Debt) (Details) - USD ($)
$ in Millions
Oct. 31, 2020
Feb. 01, 2020
Nov. 02, 2019
Debt Instrument [Line Items]      
Total $ 1,902 $ 1,239 $ 1,220
Debt discounts and issuance costs (13) (6) (6)
Finance lease obligations 37 38 39
Total long-term debt 1,926 1,271 1,253
Less current portion 670 14 14
Total long-term debt, less current portion 1,256 1,257 1,239
Interest Rate Swap Derivative Instruments [Member]      
Debt Instrument [Line Items]      
Interest rate swap valuation adjustments 102 89 70
Notes due 2021 [Member]      
Debt Instrument [Line Items]      
Long-term debt $ 650 650 650
Interest rate 5.50%    
Notes due 2028 [Member]      
Debt Instrument [Line Items]      
Long-term debt $ 500 $ 500 $ 500
Interest rate 4.45%    
Notes Due 2030 [Member]      
Debt Instrument [Line Items]      
Long-term debt $ 650    
Interest rate 1.95%    
v3.20.2
Revenue (Narrative) (Details) - USD ($)
$ in Millions
9 Months Ended
Oct. 31, 2020
Nov. 02, 2019
Revenue [Abstract]    
Revenue recognized $ 792 $ 762
v3.20.2
Revenue (Contract Balances and Changes in Contract Balances) (Details) - USD ($)
$ in Millions
Oct. 31, 2020
Feb. 01, 2020
Nov. 02, 2019
Revenue from Contract with Customer [Line Items]      
Receivables, net $ 625 $ 567 $ 591
Short-term contract liabilities included in:      
Short-term contract liabilities 278 281 271
Long-term contract liabilities included in:      
Long-term liabilities 7 9 9
Receivables, allowance for doubtful accounts 30 14 13
Unredeemed Gift Cards [Member]      
Short-term contract liabilities included in:      
Short-term contract liabilities 278 281 271
Deferred Revenue [Member]      
Short-term contract liabilities included in:      
Short-term contract liabilities 788 501 445
Accrued Liability [Member]      
Short-term contract liabilities included in:      
Short-term contract liabilities $ 71 $ 139 $ 145
v3.20.2
Derivative Instruments (Notional Amount of Derivative Instruments) (Details) - Not Designated As Hedging Instrument [Member] - USD ($)
$ in Millions
Oct. 31, 2020
Feb. 01, 2020
Nov. 02, 2019
Cash Flow Hedging [Member]      
Derivatives, Fair Value [Line Items]      
Notional Amount $ 81 $ 31 $ 62
Derivatives Designated As Net Investment Hedges [Member]      
Derivatives, Fair Value [Line Items]      
Notional Amount 68 129 30
Interest Rate Swap Derivative Instruments [Member]      
Derivatives, Fair Value [Line Items]      
Notional Amount 1,150 1,150 1,150
Foreign Exchange Forward Contracts [Member]      
Derivatives, Fair Value [Line Items]      
Notional Amount $ 1,299 $ 1,310 $ 1,242
v3.20.2
Derivative Instruments (Effects of Interest Rate Derivatives and Adjustments to LTD on Earnings) (Details) - Designated As Hedging Instrument [Member] - Interest Expense [Member] - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Oct. 31, 2020
Nov. 02, 2019
Oct. 31, 2020
Nov. 02, 2019
Derivatives, Fair Value [Line Items]        
Gain (Loss) Recognized
Interest Rate Swap Derivative Instruments [Member]        
Derivatives, Fair Value [Line Items]        
Gain (Loss) Recognized (32) (8) 13 45
Carrying Value Of Long Term Debt [Member]        
Derivatives, Fair Value [Line Items]        
Gain (Loss) Recognized $ 32 $ 8 $ (13) $ (45)
v3.20.2
Earnings per Share (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
3 Months Ended 9 Months Ended
Oct. 31, 2020
Nov. 02, 2019
Oct. 31, 2020
Nov. 02, 2019
Earnings per Share [Abstract]        
Net earnings $ 391 $ 293 $ 982 $ 796
Weighted-average common shares outstanding (in shares) 259.8 263.2 259.3 266.0
Dilutive effect of stock compensation plan awards (in shares) 3.9 2.0 3.2 3.1
Weighted-average common shares outstanding, assuming dilution (in shares) 263.7 265.2 262.5 269.1
Potential shares which were anti-dilutive and excluded from weighted-average share computations (in shares)   1.1   0.9
Basic earnings per share $ 1.50 $ 1.11 $ 3.79 $ 2.99
Diluted earnings per share $ 1.48 $ 1.10 $ 3.74 $ 2.96
v3.20.2
Repurchase of Common Stock (Narrative) (Details) - February 2019 Share Repurchase Program [Member] - USD ($)
$ in Billions
Oct. 31, 2020
Feb. 23, 2019
Stock Repurchases [Line Items]    
Stock Repurchase Program, Authorized Amount $ 3.0 $ 3.0
Stock Repurchase Program, Remaining Authorized Repurchase Amount $ 1.9  
v3.20.2
Repurchase of Common Stock (Schedule of share repurchases) (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
3 Months Ended 9 Months Ended
Nov. 02, 2019
Oct. 31, 2020
Nov. 02, 2019
Repurchase of Common Stock [Abstract]      
Total cost of shares repurchased $ 371 $ 56 $ 707
Average price per share $ 67.28 $ 86.30 $ 68.56
Number of shares repurchased 5.5 0.6 10.3
v3.20.2
Segments (Revenue by Reportable Segment and Product Category) (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Oct. 31, 2020
Nov. 02, 2019
Oct. 31, 2020
Nov. 02, 2019
Segment Reporting, Revenue Reconciling Item [Line Items]        
Revenues $ 11,853 $ 9,764 $ 30,325 $ 28,442
Domestic Segment [Member]        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Revenues 10,850 8,964 27,893 26,266
Domestic Segment [Member] | Computing and Mobile Phones [Member]        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Revenues 5,059 4,238 13,130 12,006
Domestic Segment [Member] | Consumer Electronics [Member]        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Revenues 3,197 2,659 8,090 8,101
Domestic Segment [Member] | Appliances [Member]        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Revenues 1,478 1,071 3,703 3,170
Domestic Segment [Member] | Entertainment [Member]        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Revenues 509 441 1,430 1,353
Domestic Segment [Member] | Services [Member]        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Revenues 578 519 1,461 1,526
Domestic Segment [Member] | Other [Member]        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Revenues 29 36 79 110
International Segment [Member]        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Revenues 1,003 800 2,432 2,176
International Segment [Member] | Computing and Mobile Phones [Member]        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Revenues 531 407 1,211 1,020
International Segment [Member] | Consumer Electronics [Member]        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Revenues 265 229 663 663
International Segment [Member] | Appliances [Member]        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Revenues 93 67 243 209
International Segment [Member] | Entertainment [Member]        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Revenues 50 37 156 109
International Segment [Member] | Services [Member]        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Revenues 51 50 119 138
International Segment [Member] | Other [Member]        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Revenues $ 13 $ 10 $ 40 $ 37
v3.20.2
Segments (Operating Income by Reportable Segment and Reconciliation to Earnings Before Income Tax Expense) (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Oct. 31, 2020
Nov. 02, 2019
Oct. 31, 2020
Nov. 02, 2019
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]        
Operating income $ 561 $ 395 $ 1,358 $ 1,042
Gain on sale of investments   1   1
Investment income and other 5 9 19 33
Interest expense (11) (16) (43) (50)
Earnings before income tax expense 555 389 1,334 1,026
Domestic Segment [Member]        
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]        
Operating income 612 388 1,377 1,029
International Segment [Member]        
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]        
Operating income $ (51) $ 7 $ (19) $ 13
v3.20.2
Segments (Assets by Reportable Segment) (Details) - USD ($)
$ in Millions
Oct. 31, 2020
Feb. 01, 2020
Nov. 02, 2019
Segment Reporting, Asset Reconciling Item [Line Items]      
Total assets $ 21,202 $ 15,591 $ 16,926
Domestic Segment [Member]      
Segment Reporting, Asset Reconciling Item [Line Items]      
Total assets 19,525 14,247 15,442
International Segment [Member]      
Segment Reporting, Asset Reconciling Item [Line Items]      
Total assets $ 1,677 $ 1,344 $ 1,484