Document and Entity Information - USD ($) $ in Billions |
12 Months Ended | ||
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Feb. 03, 2018 |
Mar. 29, 2018 |
Jul. 28, 2017 |
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Document and Entity Information [Abstract} | |||
Entity Registrant Name | BEST BUY CO INC | ||
Entity Central Index Key | 0000764478 | ||
Document Type | 10-K | ||
Document Period End Date | Feb. 03, 2018 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --02-03 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 13.0 | ||
Entity Common Stock, Shares Outstanding | 282,713,593 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - $ / shares |
Feb. 03, 2018 |
Jan. 28, 2017 |
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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 | 1,000,000,000 |
Common stock, issued shares | 282,988,000 | 311,108,000 |
Common stock, outstanding shares | 282,988,000 | 311,108,000 |
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Millions, $ in Millions |
12 Months Ended | ||||||||||||
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Feb. 03, 2018 |
Jan. 28, 2017 |
Jan. 30, 2016 |
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Revenue | $ 42,151 | $ 39,403 | $ 39,528 | ||||||||||
Cost of goods sold | 32,275 | 29,963 | 30,334 | ||||||||||
Restructuring charges — cost of goods sold | 0 | 0 | 3 | ||||||||||
Gross profit | 9,876 | 9,440 | 9,191 | ||||||||||
Selling, general and administrative expenses | 8,023 | 7,547 | 7,618 | ||||||||||
Restructuring charges | 10 | 39 | 198 | ||||||||||
Operating income | 1,843 | [1] | 1,854 | [2] | 1,375 | ||||||||
Other income (expense) | |||||||||||||
Gain on sale of investments | 1 | 3 | 2 | ||||||||||
Investment income and other | 48 | 31 | 13 | ||||||||||
Interest expense | (75) | (72) | (80) | ||||||||||
Earnings from continuing operations before income tax expense | 1,817 | 1,816 | 1,310 | ||||||||||
Income tax expense | 818 | 609 | 503 | ||||||||||
Net earnings from continuing operations | 999 | [3] | 1,207 | 807 | |||||||||
Gain from discontinued operations (Note 2), net of tax expense of $0, $7 and $1, respectively | 1 | 21 | 90 | ||||||||||
Net earnings | $ 1,000 | $ 1,228 | $ 897 | ||||||||||
Basic earnings per share | |||||||||||||
Continuing operations | $ 3.33 | $ 3.79 | $ 2.33 | ||||||||||
Discontinued operations | 0.00 | 0.07 | 0.26 | ||||||||||
Basic earnings per share | 3.33 | 3.86 | 2.59 | ||||||||||
Diluted earnings per share | |||||||||||||
Continuing operations | 3.26 | 3.74 | 2.30 | ||||||||||
Discontinued operations | 0.00 | 0.07 | 0.26 | ||||||||||
Diluted earnings per share | $ 3.26 | [4] | $ 3.81 | [4] | $ 2.56 | ||||||||
Weighted-average common shares outstanding | |||||||||||||
Basic | 300.4 | 318.5 | 346.5 | ||||||||||
Diluted | 307.1 | 322.6 | 350.7 | ||||||||||
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CONSOLIDATED STATEMENTS OF EARNINGS (PARENTHETICAL) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Feb. 03, 2018 |
Jan. 28, 2017 |
Jan. 30, 2016 |
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Income Statement [Abstract] | |||
Tax effect of discontinued operations | $ 0 | $ 7 | $ 1 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Statement - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Feb. 03, 2018 |
Jan. 28, 2017 |
Jan. 30, 2016 |
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Net earnings | $ 1,000 | $ 1,228 | $ 897 |
Foreign currency translation adjustments | 35 | 10 | (44) |
Reclassification of foreign currency translations adjustments into earnings due to sale of business | 0 | (2) | (67) |
Comprehensive income | $ 1,035 | $ 1,236 | $ 786 |
CONSOLIDATED STATEMENTS OF CASH FLOWS (PARENTHETICAL) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Feb. 03, 2018 |
Jan. 28, 2017 |
Jan. 30, 2016 |
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Statement of Cash Flows [Abstract] | |||
Non-cash capital expenditures | $ 123 | $ 48 | $ 92 |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (PARENTHETICAL) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Feb. 03, 2018 |
Jan. 28, 2017 |
Jan. 30, 2016 |
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Statement of Stockholders' Equity [Abstract] | |||
Dividends declared per common share (in dollars per share) | $ 1.36 | $ 1.57 | $ 1.43 |
Summary of Significant Accounting Policies |
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Summary of Significant Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | 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 a leading provider of technology products, services and solutions. We offer these products and services to customers who visit our stores, engage with Geek Squad agents or use our websites or mobile applications. We have operations in the U.S., Canada and Mexico. We have two reportable segments: Domestic and International. The Domestic segment is comprised of the operations in all states, districts and territories of the U.S., under various brand names including Best Buy, bestbuy.com, Best Buy Mobile, Best Buy Direct, Best Buy Express, Geek Squad, Magnolia Home Theater and Pacific Kitchen and Home. The International segment is comprised of all operations in Canada and Mexico under the brand names Best Buy, Best Buy Express, Best Buy Mobile and Geek Squad and the domain names bestbuy.ca and bestbuy.com.mx. 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. 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 consolidated financial statements. No significant intervening event occurred in these operations that would have materially affected our financial condition, results of operations, liquidity or other factors had it been recorded during fiscal 2018, 2017 or 2016. Discontinued Operations Discontinued operations are primarily comprised of Jiangsu Five Star Appliance Co., Limited ("Five Star") within our International segment. See Note 2, Discontinued Operations, for further information. 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 2018 included 53 weeks, with the additional week occurring in the fourth quarter, and fiscal 2017 and 2016 each included 52 weeks. Unadopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers. The new guidance establishes a single comprehensive model for entities to use in accounting for revenue and supersedes most current revenue recognition guidance. It introduces a five-step process for revenue recognition that focuses on transfer of control, as opposed to transfer of risk and rewards under current guidance. We will adopt this standard in the first quarter of fiscal 2019 using the modified retrospective method. Under this method, we will recognize the cumulative effect of the changes in retained earnings at the date of adoption, but will not restate prior periods. We currently estimate the pre-tax impact of these changes to increase retained earnings by approximately $75 million to $100 million. We expect the impact of adoption to be immaterial to net earnings on an ongoing basis. Our adoption assessment included a detailed review of contracts for each revenue stream and a comparison of historical accounting policies to the new standard. Based on these procedures, we have determined the impact will be (1) minor changes to the timing of recognition of revenues related to our gift cards and loyalty programs and certain third-party software licenses where we are the agent, and (2) presentation changes to certain immaterial revenues that are currently reported on a gross or net basis. In addition, the balance sheet presentation of our sales return reserve will change to present a separate return asset and liability, instead of net presentation used currently. As part of our adoption, we have modified our control procedures and processes, including reporting logic from impacted systems, although we do not expect these updates to have a material effect on our internal controls over financial reporting. Additionally, the adoption of ASU 2014-09 will result in increased footnote disclosures, particularly with regard to (1) revenue-related balance sheet accounts and associated activity in the fiscal period, (2) disaggregation of revenue by channel and product category, (3) unsatisfied performance obligations for our service contracts with a duration of over one year, (4) the pro-forma impact of changes to our financial statements in the initial year of adoption, and (5) qualitative disclosures related to the nature and terms of our sales, timing of the transfer of control and judgments used in our application of the five-step process. In February 2016, the FASB issued ASU 2016-02, Leases, and has since issued additional ASUs to further clarify or add options to the issued guidance. The new guidance was issued to increase transparency and comparability among companies by requiring most leases to be included on the balance sheet and by expanding disclosure requirements. Based on the effective dates, we expect to adopt the new guidance in the first quarter of fiscal 2020 using the recently-proposed prospective method and have begun implementing required upgrades to our existing lease systems. While we expect adoption to lead to a material increase in the assets and liabilities recorded on our balance sheet and an increase to our footnote disclosures related to leases, we are still evaluating the impact on our consolidated statement of earnings. We also expect that adoption of the new standard will require changes to our internal controls over financial reporting. In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory. The new guidance requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. We will adopt ASU 2016-16 in the first quarter of fiscal 2019. Based on our preliminary assessment, we believe the impact of adopting the new guidance will be immaterial to our annual and interim financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging. The new guidance amends the hedge accounting recognition and presentation requirements. Based on the effective dates, we will prospectively adopt this standard in the first quarter of fiscal 2019. We believe the impact will be immaterial to our annual and interim financial statements. In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The new guidance allows the reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The guidance is effective for our fiscal 2020, with early adoption permitted. We plan to early adopt ASU 2018-02 in the first quarter of fiscal 2019. Based on our preliminary assessment, we believe the impact will be immaterial to our annual and interim financial statements. Adopted Accounting Pronouncements In the first quarter of fiscal 2018, we adopted the following ASUs:
The following table reconciles the Consolidated Statement of Cash Flows line items impacted by the adoption of these standards at January 28, 2017, and January 30, 2016:
Total Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of Cash, cash equivalents and restricted cash reported within our Consolidated Balance Sheets to the total shown in our Consolidated Statements of Cash Flows:
Amounts included in restricted cash are pledged as collateral or restricted to use for general liability insurance and workers' compensation insurance. Cash and Cash Equivalents Cash primarily consists of cash on hand and bank deposits. Cash equivalents consist of money market funds, commercial paper, corporate bonds and time deposits with an original maturity of 3 months or less when purchased. The amounts of cash equivalents at February 3, 2018, and January 28, 2017, were $524 million and $1,531 million, respectively, and the weighted-average interest rates were 1.1% and 0.5%, respectively. Receivables Receivables consist principally of amounts due from mobile phone network operators for device sales and commissions, banks for customer credit card and debit card transactions and vendors for various vendor funding programs. We establish allowances for uncollectible receivables based on historical collection trends and write-off history. Our allowances for uncollectible receivables were $37 million and $52 million at February 3, 2018, and January 28, 2017, respectively. Merchandise Inventories Merchandise inventories are recorded at the lower of cost or net realizable value and the weighted average method is used to determine the cost of inventory. In-bound freight-related costs from our vendors are included as part of the net cost of merchandise inventories. Also included in the cost of inventory are certain vendor allowances that are not a reimbursement of specific, incremental and identifiable costs to promote a vendor's products. Other costs associated with acquiring, storing and transporting merchandise inventories to our retail stores are expensed as incurred and included in cost of goods sold. Our inventory valuation reflects adjustments for anticipated physical inventory losses (e.g., theft) that have occurred since the last physical inventory. Physical inventory counts are taken on a regular basis to ensure that the inventory reported in our consolidated financial statements is properly stated. Our inventory valuation also reflects markdown adjustments for the excess of the cost over the net recovery we expect to realize from the ultimate sale or other disposal of inventory and establish 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. Restricted Assets Restricted cash totaled $199 million and $193 million at February 3, 2018, and January 28, 2017, respectively, and is included in Other current assets on our Consolidated Balance Sheets. Such balances are pledged as collateral or restricted to use for general liability insurance and workers' compensation insurance. Property and Equipment Property and equipment are recorded at cost. We compute depreciation 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 assured. 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 charged directly to expense 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 to seven years. A subsequent addition, modification or upgrade to internal-use software is capitalized to the extent that it enhances the software's functionality or extends its useful life. Capitalized software is included in fixtures and equipment. Software maintenance and training costs are expensed in the period incurred. Property under capital and financing leases is comprised of buildings and equipment used in our operations. These assets are typically depreciated over the shorter of the useful life of the asset or the term of the lease. The carrying value of property under capital and financing leases was $184 million and $166 million at February 3, 2018, and January 28, 2017, respectively, net of accumulated depreciation of $156 million and $134 million, respectively. Estimated useful lives by major asset category are as follows:
Impairment of Long-Lived Assets and Costs Associated With Exit Activities Long-lived assets are evaluated for impairment whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. Factors considered important that could result in an impairment review include, but are not limited to, negative operating income for the most recent 12-month period, significant under-performance relative to historical or planned operating results, significant changes in the manner of use or expected life of the assets or significant changes in our business strategies. An impairment loss is recognized when the estimated undiscounted cash flows expected to result from the use of the asset plus net proceeds expected from the disposition of the asset, if any, are less than the carrying value of the asset net of other liabilities. When an impairment loss is recognized, the carrying amount of the asset is reduced to its estimated fair value using valuation techniques, such as discounted cash flow analysis. 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 carrying value of all land, buildings, leasehold improvements, fixtures and equipment located at each store 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. Refer to Note 3, Fair Value Measurements, for further information associated with the long-lived asset impairments, including valuation techniques used, impairment charges incurred and remaining carrying values. The present value of costs associated with vacated properties, primarily future lease costs net of expected sublease income, are charged to earnings when we cease using the property. We accelerate depreciation on property and equipment we expect to retire when a decision is made to abandon a property. At February 3, 2018, and January 28, 2017, the obligation associated with vacant properties included in Accrued liabilities on our Consolidated Balance Sheets was $17 million and $29 million, respectively, and the obligation associated with vacant properties included in Long-term liabilities on our Consolidated Balance Sheets was $21 million and $37 million, respectively. The obligation associated with vacant properties at February 3, 2018, and January 28, 2017, included amounts associated with our restructuring activities as further described in Note 4, Restructuring Charges. Leases We conduct the majority of our retail and distribution operations from leased locations. The leases generally require payment of real estate taxes, insurance and common area maintenance, in addition to rent. The terms of our new lease agreements for large-format stores are generally less than 10 years, although we have existing leases with terms up to 20 years. Small-format stores generally have lease terms that are less than 3 years. Most of the leases contain renewal options and escalation clauses, and certain store leases require contingent rents based on factors such as specified percentages of revenue or the consumer price index. For leases that contain predetermined fixed escalations of the minimum rent, we recognize the related rent expense on a straight-line basis from the date we take possession of the property to the end of the initial lease term. We record any difference between the straight-line rent amounts and amounts payable under the leases as part of deferred rent, in accrued liabilities or long-term liabilities, as appropriate. Cash or lease incentives received upon entering into certain store leases ("tenant allowances") are recognized on a straight-line basis as a reduction to rent from the date we take possession of the property through the end of the initial lease term. We record the unamortized portion of tenant allowances as a part of deferred rent, in accrued liabilities or long-term liabilities, as appropriate. At February 3, 2018, and January 28, 2017, deferred rent included in Accrued liabilities on our Consolidated Balance Sheets was $30 million and $33 million, respectively, and deferred rent included in Long-term liabilities on our Consolidated Balance Sheets was $107 million and $121 million, respectively. In addition, we have financing leases for agreements when we are deemed the owner of the leased buildings, typically due to significant involvement during the construction period, and do not qualify for sales recognition under the sale-leaseback accounting guidance. We record the cost of the building in property and equipment, with the related short-term liability recorded in current portion of long-term debt and the long-term liability recorded in long-Term Debt. At February 3, 2018, and January 28, 2017, we had $191 million and $177 million, respectively, outstanding under financing lease obligations. Refer to Note 8, Leases, for maturity details. Assets acquired under capital and financing leases are depreciated over the shorter of the useful life of the asset or the lease term, including renewal periods, if reasonably assured. 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, as of the first day of the fiscal fourth quarter, or when indications of potential impairment exist. We monitor the existence of potential impairment indicators throughout the fiscal year. We test for goodwill impairment at the reporting unit level and our reporting units are the components of operating segments which constitute businesses for which discrete financial information is available and is regularly reviewed by segment management. No components were aggregated in arriving at our reporting units. Our only reporting unit with a goodwill balance at the beginning of fiscal 2018 was our Domestic segment. Our detailed impairment testing involves comparing the fair value of each reporting unit to its carrying value, including goodwill. Fair value reflects the price a market participant would be willing to pay in a potential sale of the reporting unit and is based on discounted cash flows or relative market-based approaches. If the fair value exceeds carrying value, then it is concluded that no goodwill impairment has occurred. If the carrying value of the reporting unit exceeds its fair value, a second step is required to measure possible goodwill impairment loss. The second step includes hypothetically valuing the tangible and intangible assets and liabilities of the reporting unit as if the reporting unit had been acquired in a business combination. Then, the implied fair value of the reporting unit's goodwill is compared to the carrying value of that goodwill. If the carrying value of the reporting unit's goodwill exceeds the implied fair value of the goodwill, we recognize an impairment loss in an amount equal to the excess, not to exceed the carrying value. In fiscal 2018, we determined that the fair value of the Domestic reporting unit exceeded its carrying value, and as a result, no goodwill impairment was recorded. No goodwill impairment was recorded in fiscal 2017 or 2016. Tradenames We have an indefinite-lived tradename related to Pacific Sales included within our Domestic segment, which is recorded within Other assets on our Consolidated Balance Sheets. As of the end of fiscal 2018, we have no indefinite-lived tradenames within our International segment. 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. We do not amortize our indefinite-lived tradenames, but test for impairment annually, or when indications of potential impairment exist. We utilize the relief from royalty method to determine the fair value of our indefinite-lived tradename. If the carrying value exceeds the fair value, we recognize an impairment loss in an amount equal to the excess. In fiscal 2018, we determined that the fair value of the tradenames exceeded their carrying value, and as a result, no impairment was recorded. No impairments were recorded in fiscal 2017. In fiscal 2016, we recorded a $39 million impairment related to our indefinite-lived Future Shop tradename as part of the Canadian brand consolidation. Refer to Note 4, Restructuring Charges, for additional information. No other impairments were identified in fiscal 2016. As of February 3, 2018, January 28, 2017, and January 30, 2016, the carrying amount of goodwill and indefinite-lived tradenames was $425 million and $18 million, respectively. The following table provides the gross carrying amount of goodwill and cumulative goodwill impairment losses ($ in millions):
Insurance We are self-insured for certain losses related to health, workers' compensation and general liability claims; however, we obtain third-party insurance coverage to limit our exposure to certain claims. Some of these self-insured losses are managed through a wholly-owned insurance captive. We estimate our self-insured liabilities using a number of factors, including historical claims experience, an estimate of incurred but not reported claims, demographic and severity factors and valuations provided by independent third-party actuaries. Our self-insured liabilities included in our Consolidated Balance Sheets were as follows ($ in millions):
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 periodically audited by U.S. federal, state and local and foreign tax authorities. At any one time, multiple tax years are subject to audit by the various tax 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 Accrued income taxes and 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 at February 3, 2018, and January 28, 2017, were state and local tax liabilities, advertising accruals, loyalty program liabilities, rent-related liabilities and self-insurance reserves. Long-Term Liabilities The major components of long-term liabilities at February 3, 2018, and January 28, 2017, were unrecognized tax benefits, income tax liabilities, rent-related liabilities, self-insurance reserves, deferred compensation plan liabilities and deferred revenue from service contracts. 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 date. For operations reported on a one-month lag, we use the exchange rates in effect one month prior to our Consolidated Balance Sheet date. Results of operations and cash flows are translated using the average exchange rates throughout the period. 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 of the periods presented. Revenue Recognition We recognize revenue when the sales price is fixed or determinable, collection is reasonably assured and the customer takes possession of the merchandise, or in the case of services, the service has been provided. Revenue excludes sales taxes collected. Revenue from merchandise sales and services is reported net of sales returns, which includes an estimate of future returns based on historical return rates, with a corresponding reduction to cost of sales. Our sales returns reserve, which represents the estimated gross margin impact of returns, was $23 million and $28 million at February 3, 2018, and January 28, 2017, respectively. For revenue transactions that involve multiple deliverables, we defer the revenue associated with any undelivered elements. The amount of revenue deferred in connection with the undelivered elements is determined using the relative fair value of each element. Our deferred revenues primarily relate to merchandise not yet delivered to customers, services not yet completed and technical support contracts not yet completed. Short-term deferred revenue was $453 million and $418 million as of February 3, 2018, and January 28, 2017, respectively. At February 3, 2018, and January 28, 2017, deferred revenue included within long-term liabilities was $22 million and $34 million, respectively. Merchandise revenue Revenue is recognized for store sales when the customer receives and pays for merchandise. In the case of items paid for in store but subsequently delivered to the customer, revenue is recognized once delivery has been completed. For transactions initiated online, customers choose whether to collect merchandise from one of our stores (“in-store pick up”) or have it delivered to them (typically using third-party parcel delivery companies). For in-store pick up, we recognize revenue once the customer has taken possession of merchandise. For items delivered directly to the customer, we recognize revenue when delivery has been completed. Any fees charged to customers for delivery are also recognized when delivery has been completed. Services Revenue related to consultation, design, installation, set-up, repair and educational classes are recognized once the service is complete. We sell various protection plans with extended warranty coverage for merchandise and technical support to assist customers in using their devices. Such plans have terms typically ranging from one month to five years. For extended warranty protection, third-party underwriters assume the risk associated with the coverage and are deemed to be the legal obligor. We record the net commissions we receive (the amount charged to the customer less the premiums remitted to the underwriter) as revenue when the corresponding merchandise revenue is recognized. In addition, we are eligible to receive profit-sharing payments, which are dependent upon the performance of the portfolio. We record such profit-share as revenue once the portfolio period to which it relates is complete and we have sufficient evidence to estimate the amount. Service and commission revenues earned from the sale of extended warranties represented 2.0%, 2.2% and 2.3% of revenue in fiscal 2018, 2017 and 2016, respectively. These percentages include $68 million, $133 million and $158 million in fiscal 2018, 2017 and 2016, respectively, of profit-share revenue. For technical support contracts, we assume responsibility for fulfilling the support to customers and we recognize the associated revenue either on a straight-line basis over the life of the contracts, or if sufficient history is available, on a usage basis. Credit card revenue We offer promotional financing and credit cards issued by third-party banks that manage and directly extend credit to our customers. The banks are the sole owners of the accounts receivable generated under the program and accordingly, we do not hold any consumer receivables related to these programs. We are eligible to receive a profit-share from our banking partners based on the performance of the programs. We record such profit-share as revenue once the portfolio period to which it relates is complete, and we have sufficient evidence to estimate the amount. Gift cards We sell gift cards to our customers in our retail stores, online and through select third parties. We do not charge administrative fees on unused gift cards and our gift cards do not have an expiration date. We recognize revenue from gift cards when the card is redeemed by the customer. For unredeemed gift cards, we recognize breakage when the likelihood of the gift card being redeemed by the customer is deemed remote, and we determine that we do not have a legal obligation to remit the value of the unredeemed gift cards to a relevant jurisdiction ("gift card breakage"). We determine the breakage rate based on historical redemption patterns and record projected breakage 24 months after the gift card is issued. Gift card breakage income is included in revenue. Gift card breakage income was $40 million, $37 million and $46 million in fiscal 2018, 2017 and 2016, respectively. Sales Incentives We frequently offer sales incentives that entitle our customers to receive a gift card at the time of purchase or a reduction in the price of a product or service either at the point of sale or by submitting a claim for a refund (for example, coupons, rebates, etc.). For sales incentives issued to the customer in conjunction with a sale of merchandise or services, the reduction in revenue is recognized at the time of sale, based on the expected retail value of the incentive expected to be redeemed. 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 at our Best Buy branded stores. Depending on the customer's membership level within our loyalty program, certificate expirations typically range from 2 to 12 months from the date of issuance. The value of points earned by our loyalty program members is included in accrued liabilities and recorded as a reduction of revenue at the time the points are earned, based on the value of points that are projected to be redeemed. We recognize revenue when: (1) a certificate is redeemed by the customer; (2) a certificate expires; or (3) the likelihood of a certificate being redeemed by a customer is low ("certificate breakage"). We determine our certificate breakage rate based upon historical redemption patterns. Cost of Goods Sold and Selling, General and Administrative Expenses The following table illustrates the primary costs classified in each major expense category:
Vendor Allowances We receive allowances from certain vendors through a variety of programs and arrangements intended to offset our costs of promoting and selling merchandise inventories. Vendor allowances are primarily in the form of receipt-based funds or sell-through credits. Receipt-based funds are generally determined at an agreed percentage of the purchase price and are initially deferred and recorded as a reduction of merchandise inventories. The deferred amounts are then included as a reduction of cost of goods sold when the related product is sold. Sell-through credits are generally calculated using an agreed upon amount for each unit sold and are recognized when the related product is sold. Vendor allowances provided as a reimbursement of specific, incremental and identifiable costs, such as specialized store labor or training costs, are included in SG&A as an expense reduction when the cost is incurred. Advertising Costs Advertising costs, which are included in SG&A, are expensed when the advertisement is customer-facing. Advertising costs consist primarily of digital, print and television advertisements, as well as promotional events. Advertising expenses were $776 million, $743 million and $742 million in fiscal 2018, 2017 and 2016, respectively. Stock-Based Compensation We apply the fair value recognition provisions of accounting guidance as they relate to our stock-based compensation, which requires us to recognize expense for the fair value of our stock-based compensation awards. Compensation expense is recognized over the period in which services are required. It is recognized on a straight-line basis, except where there are performance 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. |
Discontinued Operations |
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Discontinued Operations | Discontinued Operations Discontinued operations are primarily comprised of Jiangsu Five Star Appliance Co., Limited ("Five Star") within our International segment. During the fourth quarter of fiscal 2015, we entered into a definitive agreement to sell our Five Star business to Yingtan City Xiangyuan Investment Limited Partnership and Zhejiang Jiayuan Real Estate Group Co. On February 13, 2015, we completed the sale of Five Star and recognized a gain on sale of $99 million. Following the sale of Five Star, we continued to hold as available-for-sale one retail property in Shanghai, China. The assets of this property were classified as held-for-sale on our Consolidated Balance Sheets and were $31 million as of January 30, 2016. In May 2016, we completed the sale of the property and recognized a gain, net of income tax, of $16 million. The gain on sale of the property is included in Other, net within Operating activities on our Consolidated Statements of Cash Flows. The aggregate financial results of all discontinued operations for fiscal 2018, 2017 and 2016 were as follows ($ in millions):
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Fair Value Measurements |
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Fair Value Measurements | Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. To measure fair value, we use a three-tier valuation hierarchy based upon observable and non-observable inputs: Level 1 — Unadjusted quoted prices that are available in active markets for 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:
Level 3 — Significant unobservable inputs that cannot be corroborated by observable market data and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management's estimates of market participant assumptions. Assets and Liabilities that are Measured at Fair Value on a Recurring Basis The fair value hierarchy requires the use of observable market data when available. In instances in which the inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability. The following table sets forth by level within the fair value hierarchy, our financial assets and liabilities that were accounted for at fair value on a recurring basis at February 3, 2018, and January 28, 2017, according to the valuation techniques we used to determine their fair values ($ in millions):
There were no transfers between levels during the periods presented. During fiscal 2017, our remaining investments in auction rate securities ("ARS"), which were classified as Level 3, were called at par, which resulted in proceeds of $2 million and no realized gain or loss. As of February 3, 2018, and January 28, 2017, we had no items measured at fair value on a recurring basis that used significant unobservable inputs (Level 3). The following methods and assumptions were used to estimate the fair value of each class of financial instrument: Money market funds. Our money market fund investments are measured at fair value as they trade in an active market using quoted market prices and, therefore, are classified as Level 1. Commercial paper. Our investments in commercial paper are measured using inputs based upon quoted prices for similar instruments in active markets and, therefore, are classified as Level 2. Time deposits. Our time deposits are balances held with banking institutions that cannot be withdrawn for specified terms without a penalty. Time deposits are held at face value plus accrued interest, which approximates fair value, and are classified as Level 2. Foreign currency derivative instruments. Comprised primarily of foreign currency forward contracts and foreign currency swap contracts, our foreign currency derivative instruments are measured at fair value using readily observable market inputs, such as quotations on forward foreign exchange points and foreign interest rates. Our foreign currency derivative instruments are classified as Level 2, as these instruments are custom, over-the-counter contracts with various bank counterparties that are not traded in active markets. Interest rate swap derivative instruments. Our interest rate swap contracts are measured at fair value using readily observable inputs, such as the LIBOR interest rate. Our interest rate swap derivative instruments are classified as Level 2, as these instruments are custom, over-the-counter contracts with various bank counterparties that are not traded in active markets. Marketable securities that fund deferred compensation. The assets that fund our deferred compensation consist of investments in mutual funds. These investments are classified as Level 1 as the shares of these mutual funds trade with sufficient frequency and volume to enable us to obtain pricing information on an ongoing basis. Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis Assets and liabilities that are measured at fair value on a nonrecurring basis relate primarily to our tangible fixed assets, goodwill and other intangible assets, which are remeasured when the derived fair value is below carrying value on our Consolidated Balance Sheets. For these assets, we do not periodically adjust carrying value to fair value, except in the event of impairment. When we determine that impairment has occurred, the carrying value of the asset is reduced to fair value and the difference is recorded within Selling, general and administrative expenses and Restructuring charges on our Consolidated Statements of Earnings for non-restructuring and restructuring charges, respectively. There were no fair value remeasurements related to discontinued operations recorded in fiscal 2018 and 2017. The following table summarizes the fair value remeasurements related to continuing operations recorded in fiscal 2018 and 2017 ($ in millions):
All of the fair value remeasurements included in the table above were based on significant unobservable inputs (Level 3). Fixed asset fair values were derived using a discounted cash flow ("DCF") model to estimate the present value of net cash flows that the asset or asset group is expected to generate. The key inputs to the DCF model generally included our forecasts of net cash generated from revenue, expenses and other significant cash outflows, such as capital expenditures, as well as an appropriate discount rate. In the case of assets for which the impairment was the result of restructuring activities, no future cash flows have been assumed as the assets will cease to be used and expected sale values are nominal. Fair Value of Financial Instruments Our financial instruments, other than those presented in the disclosures above, include cash, receivables, other investments, accounts payable, other payables and long-term debt. The fair values of cash, receivables, accounts payable and other payables approximated carrying values because of the short-term nature of these instruments. If these instruments were measured at fair value in the financial statements, they would be classified as Level 1 in the fair value hierarchy. Fair values for other investments held at cost are not readily available, but we estimate that the carrying values for these investments approximate fair value. See Note 5, Debt, for information about the fair value of our long-term debt. |
Restructuring Charges (Notes) |
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Restructuring Charges | Restructuring Charges Summary Restructuring charges incurred in fiscal 2018, 2017 and 2016 were as follows ($ in millions):
Best Buy Mobile On March 1, 2018, we announced our intent to close all of our 257 remaining Best Buy Mobile stand-alone stores in the U.S. This decision was a result of changing economics in the mobile industry since we began opening these stores in 2006, along with the integration of our mobile model into our core stores and on-line channel, which are today more economically compelling. We expect to incur total pre-tax restructuring charges between $55 million and $65 million, primarily related to the termination of store leases that will be paid in fiscal 2019. In fiscal 2018, we incurred $9 million of restructuring charges related to implementing these changes, which consisted of $8 million of employee termination benefits and $1 million of property and equipment impairments. All restructuring charges related to this plan are from continuing operations and are presented in Restructuring charges on our Consolidated Statements of Earnings. As of February 3, 2018, the termination benefits liability was $8 million as there were no cash payments or adjustments during fiscal 2018, and the vacant space liability was $0 million. Renew Blue Phase 2 In the first quarter of fiscal 2017, we took several strategic actions to eliminate and simplify certain components of our operations and restructure certain field and corporate teams as part of our Renew Blue Phase 2 plan. In fiscal 2017, we incurred $26 million of restructuring charges related to implementing these changes, which primarily consisted of employee termination benefits and property and equipment impairments. All restructuring charges related to this plan are from continuing operations and are presented in Restructuring charges on our Consolidated Statements of Earnings. No restructuring charges were incurred in fiscal 2018 related to Renew Blue Phase 2. The composition of the restructuring charges we incurred during fiscal 2017 for Renew Blue Phase 2 was as follows ($ in millions):
There was no activity in our restructuring accrual in fiscal 2018 related to Renew Blue Phase 2. The following table summarizes our restructuring accrual activity during fiscal 2017 related to termination benefits as a result of Renew Blue Phase 2 ($ in millions):
Canadian Brand Consolidation In the first quarter of fiscal 2016, we consolidated the Future Shop and Best Buy stores and websites in Canada under the Best Buy brand. This resulted in the permanent closure of 66 Future Shop stores and the conversion of the remaining 65 Future Shop stores to the Best Buy brand. In fiscal 2018, we recorded a benefit of $2 million related to adjustments to our vacant space liabilities outstanding due to changes in estimates related to sublease income. During fiscal 2017, we incurred $3 million of restructuring charges, which primarily consisted of lease exit costs. In fiscal 2016, we incurred $200 million of restructuring charges, which primarily consisted of lease exit costs, a tradename impairment, property and equipment impairments, employee termination benefits and inventory write-downs. The inventory write-downs related to our Canadian brand consolidation are presented in Restructuring charges – cost of goods sold on our Consolidated Statements of Earnings, and the remainder of the restructuring charges are presented in Restructuring charges on our Consolidated Statements of Earnings. All restructuring charges related to this plan are from continuing operations. The composition of the restructuring charges we incurred for this program in fiscal 2018, 2017 and 2016, as well as the cumulative amount incurred through the end of fiscal 2018, was as follows ($ in millions):
The following tables summarize our restructuring accrual activity during fiscal 2018, 2017 and 2016, related to termination benefits and facility closure and other costs as a result of Canadian brand consolidation ($ in millions):
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Debt (Notes) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Short-Term Debt U.S. Revolving Credit Facility On June 27, 2016, 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 June 2019, but was terminated on June 27, 2016. 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 0.50%, the LIBOR Margin ranges from 0.90% to 1.50% and the facility fee ranges from 0.10% to 0.25%. At February 3, 2018, and January 28, 2017, there were no borrowings outstanding. As of February 3, 2018, $1.25 billion was available under the Five-Year Facility Agreement. The Five-Year Facility Agreement is guaranteed by certain of our subsidiaries and contains customary affirmative and negative covenants. Among other things, these covenants restrict certain of our subsidiaries' ability to incur certain types or amounts of indebtedness, incur liens on certain assets, make material changes in corporate structure or the nature of our business, dispose of material assets, engage in a change in control transaction, make certain foreign investments, enter into certain restrictive agreements or engage in certain transactions with affiliates. The Five-Year Facility Agreement also contains covenants that require us to maintain a maximum quarterly cash flow leverage ratio and a minimum quarterly interest coverage ratio (both ratios measured quarterly for the previous 12 months). The Five-Year Facility Agreement contains default provisions including, but not limited to, failure to pay interest or principal when due and failure to comply with covenants. Long-Term Debt Long-term debt consisted of the following ($ in millions):
2018 Notes On July 16, 2013, we completed the sale of $500 million principal amount of notes due August 1, 2018 (the “2018 Notes”). The 2018 Notes bear interest at a fixed rate of 5.00% per year, payable semi-annually on February 1 and August 1 of each year, beginning on February 1, 2014. Net proceeds from the sale of the 2018 Notes were $495 million, after underwriting and issue discounts totaling $5 million. We may redeem some or all of the 2018 Notes at any time, at a redemption price equal to the greater of (1) 100% of the principal amount of the 2018 Notes to be redeemed, and (2) the sum of the present values of each remaining scheduled payment of principal and interest on the 2018 Notes to be redeemed, discounted to the redemption date on a semi-annual basis at the Treasury Rate plus 50 basis points. Furthermore, if a change of control triggering event occurs, we will be required to offer to purchase the remaining unredeemed 2018 Notes at a price equal to 101% of their principal amount, plus accrued and unpaid interest to the purchase date. The 2018 Notes are unsecured and unsubordinated obligations and rank equally with all of our other unsecured and unsubordinated debt. The 2018 Notes contain covenants that, among other things, limit our ability and the ability of our subsidiaries to incur debt secured by liens and enter into sale and lease-back transactions. As of February 3, 2018, the 2018 Notes are classified within our Current portion of long-term debt on our Consolidated Balance Sheets. 2021 Notes In March 2011, we issued $650 million principal amount of notes due March 15, 2021 (the “2021 Notes”). The 2021 Notes bear interest at a fixed rate of 5.50% per year, payable semi-annually on March 15 and September 15 of each year, beginning on September 15, 2011. The 2021 Notes were issued at a slight discount to par, which when coupled with underwriting discounts of $4 million, resulted in net proceeds from the sale of the 2021 Notes of $644 million. We may redeem some or all of the 2021 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 2021 Notes. Furthermore, if a change of control triggering event occurs, we will be required to offer to purchase the remaining unredeemed 2021 Notes at a price equal to 101% of their principal amount, plus accrued and unpaid interest to the purchase date. The 2021 Notes are unsecured and unsubordinated obligations and rank equally with all of our other unsecured and unsubordinated debt. The 2021 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 The fair value of long-term debt, excluding debt discounts and issuance costs and financing and capital lease obligations, approximated $1,199 million and $1,240 million at February 3, 2018, and January 28, 2017, respectively, based primarily on the quoted market prices, compared to carrying values of $1,145 million and $1,163 million at February 3, 2018, and January 28, 2017, respectively. If our long-term debt was recorded at fair value, it would be classified as Level 2 in the fair value hierarchy. At February 3, 2018, the future maturities of long-term debt, net of interest rate swaps and excluding debt discounts, issuance costs and financing and capital lease obligations (see Note 8, Leases, for the future lease obligation maturities), consisted of the following ($ in millions):
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Derivative Instruments Derivative Instruments (Notes) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | Derivative Instruments We manage our economic and transaction exposure to certain risks through the use of foreign currency derivative instruments and interest rate swaps. Our objective in holding derivatives is to reduce the volatility of net earnings, cash flows and net asset value associated with changes in foreign currency exchange rates and interest rates. We do not hold derivative instruments for trading or speculative purposes. We have no derivatives that have credit risk-related contingent features and we mitigate our credit risk by engaging with financial institutions with investment grade credit ratings as our counterparties. We record all derivative instruments on our Consolidated Balance Sheets at fair value and evaluate hedge effectiveness prospectively and retrospectively when electing to apply hedge accounting. We formally document all hedging relations at inception for derivative hedges and the underlying hedged items, as well as the risk management objectives and strategies for undertaking the hedge transaction. In addition, we have derivatives which are not designated as hedging instruments. Net Investment Hedges We use foreign exchange forward contracts to hedge against the effect of Canadian dollar exchange rate fluctuations on a portion of our net investment in our Canadian operations. The contracts have terms of up to 12 months. For a net investment hedge, we recognize changes in the fair value of the derivative as a component of foreign currency translation within other comprehensive income to offset a portion of the change in translated value of the net investment being hedged, until the investment is sold or liquidated. We limit recognition in net earnings of amounts previously recorded in other comprehensive income to circumstances such as complete or substantially complete liquidation of the net investment in the hedged foreign operation. We report the ineffective portion of the gain or loss, if any, in net earnings. Interest Rate Swaps We use "receive fixed-rate, pay variable-rate" interest rate swaps to mitigate the effect of interest rate fluctuations on our 2018 Notes and 2021 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 as a fair value hedge 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 net earnings. Summary of Derivative Balances The following table presents the gross fair values of our outstanding derivative instruments and the corresponding classification at February 3, 2018, and January 28, 2017 ($ in millions):
The following table presents the effects of derivative instruments by contract type on other comprehensive income ("OCI") and on our Consolidated Statements of Earnings for fiscal 2018 and 2017 ($ in millions):
The following table presents the notional amounts of our derivative instruments at February 3, 2018, and January 28, 2017 ($ in millions):
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Shareholders' Equity |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders Equity | Shareholders' Equity Stock Compensation Plans Our Best Buy Co., Inc. Amended and Restated 2014 Omnibus Incentive Plan (the "Omnibus 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 up to a total of 22.5 million shares. We have not granted incentive stock options under the Omnibus Plan. Under the terms of the Omnibus Plan, awards may be granted to our employees, officers, advisers, consultants and directors. Awards issued under the Omnibus Plan vest as determined by the Compensation and Human Resources Committee of our Board of Directors at the time of grant. Awards granted, forfeited or canceled under the previous plan, the 2004 Omnibus Stock and Incentive Plan, after February 1, 2014, adjust the amount available under the Omnibus Plan. At February 3, 2018, a total of 19.2 million shares were available for future grants under the Omnibus Plan. Upon adoption and approval of the Omnibus Plan, all of our previous equity incentive compensation plans were terminated. However, existing awards under those plans continued to vest in accordance with the original vesting schedule and will expire at the end of their original terms. Our outstanding stock options have a 10-year term. Outstanding stock options issued to employees generally vest over a three-year period. Share awards vest based either upon attainment of specified goals or solely upon continued employment ("time-based"). Outstanding share awards that are not time-based 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 ("market-based") or upon the achievement of company performance goals ("performance-based"). We have time-based share awards that vest in their entirety at the end of three-year periods, time-based share awards that vest 33% on each of the three anniversary dates of the grant date, time-based share awards where 25% of the award vests on the date of grant and 25% vests on each of the three anniversary dates thereafter and time-based share awards to directors that vest one year from the grant date. Our Employee Stock Purchase Plan, as amended, permits employees to purchase our common stock at a 5% discount from the market price at the end of semi-annual purchase periods and is non-compensatory. Employees are required to hold the common stock purchased for 12 months. In fiscal 2018, 2017 and 2016, 0.1 million, 0.2 million and 0.2 million shares, respectively, were purchased through our employee stock purchase plans. At February 3, 2018, and January 28, 2017, plan participants had accumulated $3 million and $2 million, respectively, to purchase our common stock pursuant to this plan. Stock-based compensation expense was as follows in fiscal 2018, 2017 and 2016 ($ in millions):
Stock Options Stock option activity was as follows in fiscal 2018:
The weighted-average grant-date fair value of stock options granted during fiscal 2018, 2017 and 2016 was $12.52, $8.04 and $11.59, respectively, per share. 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 2018, 2017 and 2016, was $57 million, $55 million and $14 million, respectively. At February 3, 2018, there was $2 million of unrecognized compensation expense related to stock options that is expected to be recognized over a weighted-average period of 1.3 years. Net cash proceeds from the exercise of stock options were $156 million, $164 million and $40 million in fiscal 2018, 2017 and 2016, respectively. There was $19 million, $19 million and $5 million of income tax benefits realized from stock option exercises in fiscal 2018, 2017 and 2016, respectively. In fiscal 2018, 2017 and 2016, we estimated the fair value of each stock option on the date of grant using a lattice or Black Scholes valuation model (for certain individuals) with the following assumptions:
Market-Based Share Awards The fair value of market-based share awards is determined using Monte-Carlo simulation. A summary of the status of our nonvested market-based share awards at February 3, 2018, and changes during fiscal 2018, were as follows:
At February 3, 2018, there was $19 million of unrecognized compensation expense related to nonvested market-based share awards that we expect to recognize over a weighted-average period of 1.6 years. Time-Based Share Awards The fair value of time-based share awards is determined based on the closing market price of our stock on the date of grant. This value is reduced by the present value of expected dividends during vesting when the employee is not entitled to dividends. A summary of the status of our nonvested time-based share awards at February 3, 2018, and changes during fiscal 2018, were as follows:
At February 3, 2018, there was $96 million of unrecognized compensation expense related to nonvested time-based share awards that we expect to recognize over a weighted-average period of 1.8 years. Performance-Based Share Awards The fair value of performance-based share awards is determined based on the closing market price of our stock on the date of grant. This value is reduced by the present value of expected dividends during vesting when the employee is not entitled to dividends. A summary of the status of our nonvested performance-based share awards at February 3, 2018, and changes during fiscal 2018, were as follows:
At February 3, 2018, there was $14 million of unrecognized compensation expense related to nonvested performance-based share awards that we expect to recognize over a weighted-average period of 1.9 years. Earnings per Share We compute our basic earnings per share based on the weighted-average number of common shares outstanding, and our diluted earnings per share based on the weighted-average number of common shares outstanding adjusted by the number of additional shares that would have been outstanding had the potentially dilutive common shares been issued. Potentially dilutive securities include stock options, nonvested share awards and shares issuable under our employee stock purchase plan. Nonvested market-based share awards and nonvested performance-based share awards are included in the average diluted shares outstanding each period if established market or performance criteria have been met at the end of the respective periods. At February 3, 2018, options to purchase 3.1 million shares of common stock were outstanding as follows (shares in millions):
All outstanding stock options at February 3, 2018, were in-the-money, as the average market price of our common shares was greater than the options' exercise prices. The following table presents a reconciliation of the numerators and denominators of basic and diluted earnings per share from continuing operations in fiscal 2018, 2017 and 2016 ($ and shares in millions, except per share amounts):
For fiscal 2018, 2017 and 2016, the number of potential shares that were not included in the computation of earnings per share because the effect would be anti-dilutive were 0 million, 4.5 million and 8.9 million, respectively. Repurchase of Common Stock In February 2017, our Board of Directors authorized a new $5.0 billion share repurchase program that superseded the previous $5.0 billion authorization from June 2011. There is no expiration date governing the period over which we can repurchase shares under the February 2017 authorization. On March 1, 2018, we announced our intent to repurchase $1.5 billion of shares in fiscal 2019, which reflects an updated two-year plan of $3.5 billion compared to the original $3.0 billion two-year plan announced on March 1, 2017. On January 22, 2016, we entered into a variable notional accelerated share repurchase agreement ("January 2016 ASR") with a third party financial institution to repurchase $150 million to $175 million of our common stock. Under the agreement, we paid $175 million at the beginning of the contract and received an initial delivery of 4.4 million shares on January 25, 2016. We retired these shares and recorded a $120 million reduction to stockholders' equity. As of January 30, 2016, the remaining $55 million was included as a reduction of shareholders' equity as prepaid share repurchase on our Consolidated Balance Sheets. The January 2016 ASR was settled on February 17, 2016, for a final notional amount of $165 million. Accordingly we received 1.6 million shares, which were retired, and a $10 million cash payment from our counter-party equal to the difference between the $175 million up-front payment and the final notional amount. The cash received was included as Other, net within Financing activities on our Consolidated Statements of Cash Flows. The final notional amount was determined based upon the volume-weighted average share price of our common stock during the term of the January 2016 ASR agreement. The number of shares delivered was based upon the final notional amount and the volume-weighted average share price of our common stock during the term of the agreement, less an agreed-upon discount. The following table presents information regarding the shares we repurchased and retired in fiscal 2018, 2017 and 2016 ($ and shares in millions, except per share amounts):
At February 3, 2018, $3.0 billion of the $5.0 billion of share repurchases authorized by our Board in February 2017 was available for future share repurchases. Between the end of fiscal 2018 and March 29, 2018, we repurchased an incremental 3.5 million shares of our common stock at a cost of $249 million. Repurchased shares have been retired and constitute authorized but unissued shares. Comprehensive Income (Loss) Comprehensive income (loss) is computed as net earnings plus certain other items that are recorded directly to shareholders' equity. In addition to net earnings, the significant component of comprehensive income (loss) includes foreign currency translation adjustments. Foreign currency translation adjustments do not include a provision for income tax expense when earnings from foreign operations are considered to be indefinitely reinvested outside the U.S. At this time, we are still evaluating the earnings that are indefinitely reinvested outside the U.S. Refer to Note 10, Income Taxes, for additional information. The following table provides a reconciliation of the components of accumulated other comprehensive income, net of tax, for fiscal 2018, 2017 and 2016, respectively ($ in millions):
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The composition of net rent expense for all operating leases, including leases of property and equipment, was as follows in fiscal 2018, 2017 and 2016 ($ in millions):
The future minimum lease payments under our capital, financing and operating leases by fiscal year (not including contingent rentals) at February 3, 2018, were as follows ($ in millions):
Total minimum lease payments have not been reduced by minimum sublease rent income of approximately $69 million due under future noncancelable subleases. |
Benefit Plans |
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Feb. 03, 2018 | |
Retirement Benefits [Abstract] | |
Benefit Plans | 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. The total employer contributions were $62 million, $56 million and $53 million in fiscal 2018, 2017 and 2016, respectively. We have a non-qualified, unfunded deferred compensation plan for highly compensated employees and members of our Board of Directors. Amounts contributed and deferred under our deferred compensation plan are credited or charged with the performance of investment options offered under the plan and elected by the participants. In the event of bankruptcy, the assets of the plan are available to satisfy the claims of general creditors. The liability for compensation deferred under the plan was $27 million and $31 million at February 3, 2018, and January 28, 2017, respectively, and is included in Long-term liabilities on our Consolidated Balance Sheets. We manage the risk of changes in the fair value of the liability for deferred compensation by electing to match our liability under the plan with investment vehicles that offset a substantial portion of our exposure. The fair value of the investment vehicles, which includes funding for future deferrals, was $99 million and $96 million at February 3, 2018, and January 28, 2017, respectively, and is included in Other assets on our Consolidated Balance Sheets. |
Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes The following is a reconciliation of the federal statutory income tax rate to income tax expense in fiscal 2018, 2017 and 2016 ($ in millions):
Tax Reform On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act ("tax reform" or “Tax Act”), which significantly changed U.S. tax law. Among other things, the Tax Act lowered the U.S. statutory tax rate from 35% to 21% effective January 1, 2018, broadened the base to which U.S. income tax applies, imposed a one-time deemed repatriation tax on net unremitted earnings of foreign subsidiaries not previously subject to U.S. income tax and effectively created a new minimum tax on certain future foreign earnings. In response to the Tax Act, the Securities and Exchange Commission (“SEC”) staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) that provides guidance on accounting for the impact of the Tax Act. SAB 118 allows companies to record provisional amounts to the extent that they are reasonably estimable and adjust them over time as more information becomes available, not to extend beyond the measurement period of one year from the enactment of the Tax Act. As a result of the Tax Act, we applied a blended U.S. statutory federal income tax rate of 33.7% for fiscal 2018. In addition, we recorded provisional tax expense in fiscal 2018 of $283 million. The $283 million included a $209 million charge associated with the deemed repatriation tax and a $74 million charge related to the revaluation of deferred tax assets and liabilities to reflect the new tax rate. We previously considered substantially all of the earnings in our non-U.S. subsidiaries to be indefinitely reinvested outside the U.S. and, accordingly, recorded no deferred income taxes on such earnings. At this time, and until we fully analyze the applicable provisions of the Tax Act, our intention with respect to unremitted foreign earnings is to continue to indefinitely reinvest outside the U.S. those earnings needed for working capital or additional foreign investment. Apart from the deemed repatriation tax, any incremental deferred income taxes on the unremitted foreign earnings are not expected to be material. We continue to analyze the impacts of the Tax Act for provisions that become effective in future years. One such provision is the Global Intangible Low Tax Income (“GILTI”), effectively, a new minimum tax on certain foreign earnings. Under U.S. GAAP, we can make an accounting policy election and either treat taxes on GILTI as a current period expense when incurred or factor such amounts into the measurement of deferred taxes. Due to the complexity of these new rules, we have not completed the analysis of this provision; therefore, we have not made any adjustments in our fiscal 2018 financial statements nor have we made a policy decision regarding the recording of GILTI. The actual impact of the Tax Act may differ materially from our provisional amounts due to further refinement of our calculations as allowed by SAB 118, changes in interpretations and assumptions we have made or actions we may take as a result of the Tax Act. The provisional amounts will be finalized within the one-year measurement period, as we gather and analyze the additional documentation necessary for the calculations. Earnings from continuing operations before income tax expense by jurisdiction was as follows in fiscal 2018, 2017 and 2016 ($ in millions):
Income tax expense was comprised of the following in fiscal 2018, 2017 and 2016 ($ in millions):
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):
Net deferred tax assets are included on our Consolidated Balance Sheets as Other assets as of February 3, 2018, and January 28, 2017. At February 3, 2018, we had total net operating loss carryforwards from international operations of $81 million, of which $76 million will expire in various years through 2036 and the remaining amounts have no expiration. Additionally, we had acquired U.S. federal net operating loss carryforwards of $9 million, which expire between 2023 and 2030; U.S. federal foreign tax credit carryforwards of $1 million, which expire between 2023 and 2026; U.S. federal capital loss carryforwards of $2 million, which expire in 2023; state credit carryforwards of $11 million, which expire between 2020 and 2028; state capital loss carryforwards of $6 million, which expire in 2019; international credit carryforwards of $2 million, which have no expiration; and international capital loss carryforwards of $8 million, which have no expiration. At February 3, 2018, a valuation allowance of $99 million had been established, of which $1 million is against U.S. federal foreign tax credit carryforwards; $16 million is against international, U.S. federal and state capital loss carryforwards; $7 million is against state credit carryforwards and other state deferred tax assets; and $75 million is against certain international net operating loss carryforwards and other international deferred tax assets. The $5 million increase from January 28, 2017, is primarily due to the current year loss activity and the exchange rate impact on the valuation allowance against certain international net operating loss carryforwards. The following table provides a reconciliation of changes in unrecognized tax benefits for fiscal 2018, 2017 and 2016 ($ in millions):
Unrecognized tax benefits of $263 million, $346 million and $337 million at February 3, 2018, January 28, 2017, and January 30, 2016, 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 $10 million, interest income of $9 million and interest expense of $10 million was recognized in fiscal 2018, 2017 and 2016, respectively. At February 3, 2018, January 28, 2017, and January 30, 2016, we had accrued interest of $42 million, $61 million and $89 million, respectively, along with accrued penalties of $0 million, $1 million and $1 million at February 3, 2018, January 28, 2017, and January 30, 2016, 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 tax authorities for years before fiscal 2011. Because existing tax positions will continue to generate increased liabilities for us for unrecognized tax benefits over the next 12 months, and since we are routinely under audit by various taxing authorities, it is reasonably possible that the amount of unrecognized tax benefits will change during the next 12 months. An estimate of the amount or range of such change cannot be made at this time. However, we do not expect the change, if any, to have a material effect on our consolidated financial condition, results of operations or cash flows within the next 12 months. |
Segments and Geographic Information (Notes) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment and Geographic Information | Segment and Geographic Information Segment Information Our chief operating decision maker ("CODM") is our Chief Executive Officer. Our business is organized into two reportable segments: Domestic (which is comprised of all operations within the U.S. and its districts and territories) and International (which is comprised of all operations outside the U.S. and its districts and territories). Our CODM has ultimate responsibility for enterprise decisions. Our CODM determines, in particular, resource allocation for, and monitors the performance of, the consolidated enterprise, the Domestic segment and the International segment. The Domestic segment management and International segment management have responsibility for operating decisions, allocating resources and assessing performance within their respective segments. Our CODM relies on internal management reporting that analyzes enterprise results to the net earnings level and segment results to the operating income level. We aggregate our Canada and Mexico businesses into one International operating segment. Our Domestic and International operating segments also represent our reportable segments. The accounting policies of the segments are the same as those described in Note 1, Summary of Significant Accounting Policies. The following table presents our business segment information in fiscal 2018, 2017 and 2016 ($ in millions):
Geographic Information The following table presents our geographic information in fiscal 2018, 2017 and 2016 ($ in millions):
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Contingencies and Commitments (Notes) |
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Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Commitments | Contingencies and Commitments Contingencies We are involved in a number of legal proceedings. Where appropriate, we have made accruals with respect to these matters, which are reflected in 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. Securities Actions In February 2011, a purported class action lawsuit captioned, IBEW Local 98 Pension Fund, individually and on behalf of all others similarly situated v. Best Buy Co., Inc., et al., was filed against us and certain of our executive officers in the U.S. District Court for the District of Minnesota. This federal court action alleges, among other things, that we and the officers named in the complaint violated Sections 10(b) and 20A of the Exchange Act and Rule 10b-5 under the Exchange Act in connection with press releases and other statements relating to our fiscal 2011 earnings guidance that had been made available to the public. Additionally, in March 2011, a similar purported class action was filed by a single shareholder, Rene LeBlanc, against us and certain of our executive officers in the same court. In July 2011, after consolidation of the IBEW Local 98 Pension Fund and Rene LeBlanc actions, a consolidated complaint captioned, IBEW Local 98 Pension Fund v. Best Buy Co., Inc., et al., was filed and served. We filed a motion to dismiss the consolidated complaint in September 2011, and in March 2012, subsequent to the end of fiscal 2012, the court issued a decision dismissing the action with prejudice. In April 2012, the plaintiffs filed a motion to alter or amend the court's decision on our motion to dismiss. In October 2012, the court granted plaintiff's motion to alter or amend the court's decision on our motion to dismiss in part by vacating such decision and giving plaintiff leave to file an amended complaint, which plaintiff did in October 2012. We filed a motion to dismiss the amended complaint in November 2012 and all responsive pleadings were filed in December 2012. A hearing was held on April 26, 2013. On August 5, 2013, the court issued an order granting our motion to dismiss in part and, contrary to its March 2012 order, denying the motion to dismiss in part, holding that certain of the statements alleged to have been made were not forward-looking statements and therefore were not subject to the “safe-harbor” provisions of the Private Securities Litigation Reform Act. Plaintiffs moved to certify the purported class. By Order filed August 6, 2014, the court certified a class of persons or entities who acquired Best Buy common stock between 10:00 a.m. EDT on September 14, 2010, and December 13, 2010, and who were damaged by the alleged violations of law. The 8th Circuit Court of Appeals granted our request for interlocutory appeal. On April 12, 2016, the 8th Circuit held the trial court misapplied the law and reversed the class certification order. IBEW petitioned the 8th Circuit for a rehearing en banc, which was denied on June 1, 2016. In October 2016, IBEW advised the trial court it will not seek review by the Supreme Court. On June 23, 2017, the trial court denied plaintiff's request to file a new Motion for Class Certification. On October 30, 2017, plaintiffs filed with the trial court a motion for leave to file a second amended class action complaint which Best Buy opposed in a filing on November 6, 2017. That motion is pending. We continue to believe that the remaining individual plaintiff's allegations are without merit and intend to vigorously defend our company in this matter. In June 2011, a purported shareholder derivative action captioned, Salvatore M. Talluto, Derivatively and on Behalf of Best Buy Co., Inc. v. Richard M. Schulze, et al., as Defendants and Best Buy Co., Inc. as Nominal Defendant, was filed against both present and former members of our Board of Directors serving during the relevant periods in fiscal 2011 and us as a nominal defendant in the U.S. District Court for the State of Minnesota. The lawsuit alleges that the director defendants breached their fiduciary duty, among other claims, including violation of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, in failing to correct public misrepresentations and material misstatements and/or omissions regarding our fiscal 2011 earnings projections and, for certain directors, selling stock while in possession of material adverse non-public information. Additionally, in July 2011, a similar purported class action was filed by a single shareholder, Daniel Himmel, against us and certain of our executive officers in the same court. In November 2011, the respective lawsuits of Salvatore M. Talluto and Daniel Himmel were consolidated into a new action captioned, In Re: Best Buy Co., Inc. Shareholder Derivative Litigation, and a stay ordered pending the close of discovery in the consolidated IBEW Local 98 Pension Fund v. Best Buy Co., Inc., et al. case. Additionally, in June 2015, a similar purported class action was filed by a single shareholder, Khuong Tran, derivatively on behalf of Best Buy Co., Inc. against us and certain of our executive officers and directors in the same court. The Khuong Tran lawsuit has also been stayed pending the close of discovery in IBEW. The plaintiffs in the above securities actions seek damages, including interest, equitable relief and reimbursement of the costs and expenses they incurred in the lawsuits. As stated above, we believe the allegations in the above securities actions are without merit, and we intend to defend these actions vigorously. Based on our assessment of the facts underlying the claims in the above securities actions, their respective procedural litigation history and the degree to which we intend to defend our company in these matters, the amount or range of reasonably possible losses, if any, cannot be estimated. Other Legal Proceedings We are involved in various other legal proceedings arising in the normal course of conducting business. For such legal proceedings, we have accrued an amount that reflects the aggregate liability deemed probable and estimable, but this amount is not material to our consolidated financial position, results of operations or cash flows. Because of the preliminary nature of many of these proceedings, the difficulty in ascertaining the applicable facts relating to many of these proceedings, the variable treatment of claims made in many of these proceedings and the difficulty of predicting the settlement value of many of these proceedings, we are not able to estimate an amount or range of any reasonably possible additional losses. However, based upon our historical experience, the resolution of these proceedings is not expected to have a material effect on our consolidated financial position, results of operations or cash flows. Commitments We had outstanding letters of credit with an aggregate fair value of $83 million at February 3, 2018. |
Quarterly Financial Information (Unaudited) |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplementary Financial Information (Unaudited) | Quarterly Financial Information (Unaudited) The following tables show selected operating results for each 3-month quarter and full year of fiscal 2018 and 2017 (unaudited) ($ in millions):
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Valuation and Qualifying Accounts |
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Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Valuation and Qualifying Accounts | Schedule II Valuation and Qualifying Accounts $ in millions
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Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Policies) |
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Summary of Significant Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description of Business | Description of Business We are a leading provider of technology products, services and solutions. We offer these products and services to customers who visit our stores, engage with Geek Squad agents or use our websites or mobile applications. We have operations in the U.S., Canada and Mexico. We have two reportable segments: Domestic and International. The Domestic segment is comprised of the operations in all states, districts and territories of the U.S., under various brand names including Best Buy, bestbuy.com, Best Buy Mobile, Best Buy Direct, Best Buy Express, Geek Squad, Magnolia Home Theater and Pacific Kitchen and Home. The International segment is comprised of all operations in Canada and Mexico under the brand names Best Buy, Best Buy Express, Best Buy Mobile and Geek Squad and the domain names bestbuy.ca and bestbuy.com.mx. |
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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. 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 consolidated financial statements. No significant intervening event occurred in these operations that would have materially affected our financial condition, results of operations, liquidity or other factors had it been recorded during fiscal 2018, 2017 or 2016. |
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Discontinued Operations | Discontinued Operations Discontinued operations are primarily comprised of Jiangsu Five Star Appliance Co., Limited ("Five Star") within our International segment. See Note 2, Discontinued Operations, for further information. |
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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. |
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Fiscal Period | Fiscal Year Our fiscal year ends on the Saturday nearest the end of January. Fiscal 2018 included 53 weeks, with the additional week occurring in the fourth quarter, and fiscal 2017 and 2016 each included 52 weeks. |
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New Accounting Pronouncements | Unadopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers. The new guidance establishes a single comprehensive model for entities to use in accounting for revenue and supersedes most current revenue recognition guidance. It introduces a five-step process for revenue recognition that focuses on transfer of control, as opposed to transfer of risk and rewards under current guidance. We will adopt this standard in the first quarter of fiscal 2019 using the modified retrospective method. Under this method, we will recognize the cumulative effect of the changes in retained earnings at the date of adoption, but will not restate prior periods. We currently estimate the pre-tax impact of these changes to increase retained earnings by approximately $75 million to $100 million. We expect the impact of adoption to be immaterial to net earnings on an ongoing basis. Our adoption assessment included a detailed review of contracts for each revenue stream and a comparison of historical accounting policies to the new standard. Based on these procedures, we have determined the impact will be (1) minor changes to the timing of recognition of revenues related to our gift cards and loyalty programs and certain third-party software licenses where we are the agent, and (2) presentation changes to certain immaterial revenues that are currently reported on a gross or net basis. In addition, the balance sheet presentation of our sales return reserve will change to present a separate return asset and liability, instead of net presentation used currently. As part of our adoption, we have modified our control procedures and processes, including reporting logic from impacted systems, although we do not expect these updates to have a material effect on our internal controls over financial reporting. Additionally, the adoption of ASU 2014-09 will result in increased footnote disclosures, particularly with regard to (1) revenue-related balance sheet accounts and associated activity in the fiscal period, (2) disaggregation of revenue by channel and product category, (3) unsatisfied performance obligations for our service contracts with a duration of over one year, (4) the pro-forma impact of changes to our financial statements in the initial year of adoption, and (5) qualitative disclosures related to the nature and terms of our sales, timing of the transfer of control and judgments used in our application of the five-step process. In February 2016, the FASB issued ASU 2016-02, Leases, and has since issued additional ASUs to further clarify or add options to the issued guidance. The new guidance was issued to increase transparency and comparability among companies by requiring most leases to be included on the balance sheet and by expanding disclosure requirements. Based on the effective dates, we expect to adopt the new guidance in the first quarter of fiscal 2020 using the recently-proposed prospective method and have begun implementing required upgrades to our existing lease systems. While we expect adoption to lead to a material increase in the assets and liabilities recorded on our balance sheet and an increase to our footnote disclosures related to leases, we are still evaluating the impact on our consolidated statement of earnings. We also expect that adoption of the new standard will require changes to our internal controls over financial reporting. In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory. The new guidance requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. We will adopt ASU 2016-16 in the first quarter of fiscal 2019. Based on our preliminary assessment, we believe the impact of adopting the new guidance will be immaterial to our annual and interim financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging. The new guidance amends the hedge accounting recognition and presentation requirements. Based on the effective dates, we will prospectively adopt this standard in the first quarter of fiscal 2019. We believe the impact will be immaterial to our annual and interim financial statements. In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The new guidance allows the reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The guidance is effective for our fiscal 2020, with early adoption permitted. We plan to early adopt ASU 2018-02 in the first quarter of fiscal 2019. Based on our preliminary assessment, we believe the impact will be immaterial to our annual and interim financial statements. Adopted Accounting Pronouncements In the first quarter of fiscal 2018, we adopted the following ASUs:
The following table reconciles the Consolidated Statement of Cash Flows line items impacted by the adoption of these standards at January 28, 2017, and January 30, 2016:
Total Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of Cash, cash equivalents and restricted cash reported within our Consolidated Balance Sheets to the total shown in our Consolidated Statements of Cash Flows:
Amounts included in restricted cash are pledged as collateral or restricted to use for general liability insurance and workers' compensation insurance. |
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Cash and Cash Equivalents | Cash and Cash Equivalents Cash primarily consists of cash on hand and bank deposits. Cash equivalents consist of money market funds, commercial paper, corporate bonds and time deposits with an original maturity of 3 months or less when purchased. The amounts of cash equivalents at February 3, 2018, and January 28, 2017, were $524 million and $1,531 million, respectively, and the weighted-average interest rates were 1.1% and 0.5%, respectively. |
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Receivables | Receivables Receivables consist principally of amounts due from mobile phone network operators for device sales and commissions, banks for customer credit card and debit card transactions and vendors for various vendor funding programs. We establish allowances for uncollectible receivables based on historical collection trends and write-off history. Our allowances for uncollectible receivables were $37 million and $52 million at February 3, 2018, and January 28, 2017, respectively. |
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Merchandise Inventories | Merchandise Inventories Merchandise inventories are recorded at the lower of cost or net realizable value and the weighted average method is used to determine the cost of inventory. In-bound freight-related costs from our vendors are included as part of the net cost of merchandise inventories. Also included in the cost of inventory are certain vendor allowances that are not a reimbursement of specific, incremental and identifiable costs to promote a vendor's products. Other costs associated with acquiring, storing and transporting merchandise inventories to our retail stores are expensed as incurred and included in cost of goods sold. Our inventory valuation reflects adjustments for anticipated physical inventory losses (e.g., theft) that have occurred since the last physical inventory. Physical inventory counts are taken on a regular basis to ensure that the inventory reported in our consolidated financial statements is properly stated. Our inventory valuation also reflects markdown adjustments for the excess of the cost over the net recovery we expect to realize from the ultimate sale or other disposal of inventory and establish 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. |
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Restricted Assets | Restricted Assets Restricted cash totaled $199 million and $193 million at February 3, 2018, and January 28, 2017, respectively, and is included in Other current assets on our Consolidated Balance Sheets. Such balances are pledged as collateral or restricted to use for general liability insurance and workers' compensation insurance. |
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Property and Equipment | Property and Equipment Property and equipment are recorded at cost. We compute depreciation 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 assured. 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 charged directly to expense 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 to seven years. A subsequent addition, modification or upgrade to internal-use software is capitalized to the extent that it enhances the software's functionality or extends its useful life. Capitalized software is included in fixtures and equipment. Software maintenance and training costs are expensed in the period incurred. Property under capital and financing leases is comprised of buildings and equipment used in our operations. These assets are typically depreciated over the shorter of the useful life of the asset or the term of the lease. The carrying value of property under capital and financing leases was $184 million and $166 million at February 3, 2018, and January 28, 2017, respectively, net of accumulated depreciation of $156 million and $134 million, respectively. Estimated useful lives by major asset category are as follows:
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Impairment of Long-Lived Assets and Costs Associated with Exit Activities | Impairment of Long-Lived Assets and Costs Associated With Exit Activities Long-lived assets are evaluated for impairment whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. Factors considered important that could result in an impairment review include, but are not limited to, negative operating income for the most recent 12-month period, significant under-performance relative to historical or planned operating results, significant changes in the manner of use or expected life of the assets or significant changes in our business strategies. An impairment loss is recognized when the estimated undiscounted cash flows expected to result from the use of the asset plus net proceeds expected from the disposition of the asset, if any, are less than the carrying value of the asset net of other liabilities. When an impairment loss is recognized, the carrying amount of the asset is reduced to its estimated fair value using valuation techniques, such as discounted cash flow analysis. 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 carrying value of all land, buildings, leasehold improvements, fixtures and equipment located at each store 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. Refer to Note 3, Fair Value Measurements, for further information associated with the long-lived asset impairments, including valuation techniques used, impairment charges incurred and remaining carrying values. The present value of costs associated with vacated properties, primarily future lease costs net of expected sublease income, are charged to earnings when we cease using the property. We accelerate depreciation on property and equipment we expect to retire when a decision is made to abandon a property. At February 3, 2018, and January 28, 2017, the obligation associated with vacant properties included in Accrued liabilities on our Consolidated Balance Sheets was $17 million and $29 million, respectively, and the obligation associated with vacant properties included in Long-term liabilities on our Consolidated Balance Sheets was $21 million and $37 million, respectively. The obligation associated with vacant properties at February 3, 2018, and January 28, 2017, included amounts associated with our restructuring activities as further described in Note 4, Restructuring Charges. |
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Leases | Leases We conduct the majority of our retail and distribution operations from leased locations. The leases generally require payment of real estate taxes, insurance and common area maintenance, in addition to rent. The terms of our new lease agreements for large-format stores are generally less than 10 years, although we have existing leases with terms up to 20 years. Small-format stores generally have lease terms that are less than 3 years. Most of the leases contain renewal options and escalation clauses, and certain store leases require contingent rents based on factors such as specified percentages of revenue or the consumer price index. For leases that contain predetermined fixed escalations of the minimum rent, we recognize the related rent expense on a straight-line basis from the date we take possession of the property to the end of the initial lease term. We record any difference between the straight-line rent amounts and amounts payable under the leases as part of deferred rent, in accrued liabilities or long-term liabilities, as appropriate. Cash or lease incentives received upon entering into certain store leases ("tenant allowances") are recognized on a straight-line basis as a reduction to rent from the date we take possession of the property through the end of the initial lease term. We record the unamortized portion of tenant allowances as a part of deferred rent, in accrued liabilities or long-term liabilities, as appropriate. At February 3, 2018, and January 28, 2017, deferred rent included in Accrued liabilities on our Consolidated Balance Sheets was $30 million and $33 million, respectively, and deferred rent included in Long-term liabilities on our Consolidated Balance Sheets was $107 million and $121 million, respectively. In addition, we have financing leases for agreements when we are deemed the owner of the leased buildings, typically due to significant involvement during the construction period, and do not qualify for sales recognition under the sale-leaseback accounting guidance. We record the cost of the building in property and equipment, with the related short-term liability recorded in current portion of long-term debt and the long-term liability recorded in long-Term Debt. At February 3, 2018, and January 28, 2017, we had $191 million and $177 million, respectively, outstanding under financing lease obligations. Refer to Note 8, Leases, for maturity details. Assets acquired under capital and financing leases are depreciated over the shorter of the useful life of the asset or the lease term, including renewal periods, if reasonably assured. |
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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, as of the first day of the fiscal fourth quarter, or when indications of potential impairment exist. We monitor the existence of potential impairment indicators throughout the fiscal year. We test for goodwill impairment at the reporting unit level and our reporting units are the components of operating segments which constitute businesses for which discrete financial information is available and is regularly reviewed by segment management. No components were aggregated in arriving at our reporting units. Our only reporting unit with a goodwill balance at the beginning of fiscal 2018 was our Domestic segment. Our detailed impairment testing involves comparing the fair value of each reporting unit to its carrying value, including goodwill. Fair value reflects the price a market participant would be willing to pay in a potential sale of the reporting unit and is based on discounted cash flows or relative market-based approaches. If the fair value exceeds carrying value, then it is concluded that no goodwill impairment has occurred. If the carrying value of the reporting unit exceeds its fair value, a second step is required to measure possible goodwill impairment loss. The second step includes hypothetically valuing the tangible and intangible assets and liabilities of the reporting unit as if the reporting unit had been acquired in a business combination. Then, the implied fair value of the reporting unit's goodwill is compared to the carrying value of that goodwill. If the carrying value of the reporting unit's goodwill exceeds the implied fair value of the goodwill, we recognize an impairment loss in an amount equal to the excess, not to exceed the carrying value. In fiscal 2018, we determined that the fair value of the Domestic reporting unit exceeded its carrying value, and as a result, no goodwill impairment was recorded. No goodwill impairment was recorded in fiscal 2017 or 2016. Tradenames We have an indefinite-lived tradename related to Pacific Sales included within our Domestic segment, which is recorded within Other assets on our Consolidated Balance Sheets. As of the end of fiscal 2018, we have no indefinite-lived tradenames within our International segment. 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. We do not amortize our indefinite-lived tradenames, but test for impairment annually, or when indications of potential impairment exist. We utilize the relief from royalty method to determine the fair value of our indefinite-lived tradename. If the carrying value exceeds the fair value, we recognize an impairment loss in an amount equal to the excess. In fiscal 2018, we determined that the fair value of the tradenames exceeded their carrying value, and as a result, no impairment was recorded. No impairments were recorded in fiscal 2017. In fiscal 2016, we recorded a $39 million impairment related to our indefinite-lived Future Shop tradename as part of the Canadian brand consolidation. Refer to Note 4, Restructuring Charges, for additional information. No other impairments were identified in fiscal 2016. As of February 3, 2018, January 28, 2017, and January 30, 2016, the carrying amount of goodwill and indefinite-lived tradenames was $425 million and $18 million, respectively. The following table provides the gross carrying amount of goodwill and cumulative goodwill impairment losses ($ in millions):
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Insurance | Insurance We are self-insured for certain losses related to health, workers' compensation and general liability claims; however, we obtain third-party insurance coverage to limit our exposure to certain claims. Some of these self-insured losses are managed through a wholly-owned insurance captive. We estimate our self-insured liabilities using a number of factors, including historical claims experience, an estimate of incurred but not reported claims, demographic and severity factors and valuations provided by independent third-party actuaries. Our self-insured liabilities included in our Consolidated Balance Sheets were as follows ($ in millions):
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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 periodically audited by U.S. federal, state and local and foreign tax authorities. At any one time, multiple tax years are subject to audit by the various tax 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 Accrued income taxes and Long-term liabilities on our Consolidated Balance Sheets and in Income tax expense on our Consolidated Statements of Earnings. |
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Accrued Liabilities | Accrued Liabilities The major components of accrued liabilities at February 3, 2018, and January 28, 2017, were state and local tax liabilities, advertising accruals, loyalty program liabilities, rent-related liabilities and self-insurance reserves. |
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Long-Term Liabilities | Long-Term Liabilities The major components of long-term liabilities at February 3, 2018, and January 28, 2017, were unrecognized tax benefits, income tax liabilities, rent-related liabilities, self-insurance reserves, deferred compensation plan liabilities and deferred revenue from service contracts. |
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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 date. For operations reported on a one-month lag, we use the exchange rates in effect one month prior to our Consolidated Balance Sheet date. Results of operations and cash flows are translated using the average exchange rates throughout the period. 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 of the periods presented. |
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Revenue Recognition | Revenue Recognition We recognize revenue when the sales price is fixed or determinable, collection is reasonably assured and the customer takes possession of the merchandise, or in the case of services, the service has been provided. Revenue excludes sales taxes collected. Revenue from merchandise sales and services is reported net of sales returns, which includes an estimate of future returns based on historical return rates, with a corresponding reduction to cost of sales. Our sales returns reserve, which represents the estimated gross margin impact of returns, was $23 million and $28 million at February 3, 2018, and January 28, 2017, respectively. For revenue transactions that involve multiple deliverables, we defer the revenue associated with any undelivered elements. The amount of revenue deferred in connection with the undelivered elements is determined using the relative fair value of each element. Our deferred revenues primarily relate to merchandise not yet delivered to customers, services not yet completed and technical support contracts not yet completed. Short-term deferred revenue was $453 million and $418 million as of February 3, 2018, and January 28, 2017, respectively. At February 3, 2018, and January 28, 2017, deferred revenue included within long-term liabilities was $22 million and $34 million, respectively. Merchandise revenue Revenue is recognized for store sales when the customer receives and pays for merchandise. In the case of items paid for in store but subsequently delivered to the customer, revenue is recognized once delivery has been completed. For transactions initiated online, customers choose whether to collect merchandise from one of our stores (“in-store pick up”) or have it delivered to them (typically using third-party parcel delivery companies). For in-store pick up, we recognize revenue once the customer has taken possession of merchandise. For items delivered directly to the customer, we recognize revenue when delivery has been completed. Any fees charged to customers for delivery are also recognized when delivery has been completed. Services Revenue related to consultation, design, installation, set-up, repair and educational classes are recognized once the service is complete. We sell various protection plans with extended warranty coverage for merchandise and technical support to assist customers in using their devices. Such plans have terms typically ranging from one month to five years. For extended warranty protection, third-party underwriters assume the risk associated with the coverage and are deemed to be the legal obligor. We record the net commissions we receive (the amount charged to the customer less the premiums remitted to the underwriter) as revenue when the corresponding merchandise revenue is recognized. In addition, we are eligible to receive profit-sharing payments, which are dependent upon the performance of the portfolio. We record such profit-share as revenue once the portfolio period to which it relates is complete and we have sufficient evidence to estimate the amount. Service and commission revenues earned from the sale of extended warranties represented 2.0%, 2.2% and 2.3% of revenue in fiscal 2018, 2017 and 2016, respectively. These percentages include $68 million, $133 million and $158 million in fiscal 2018, 2017 and 2016, respectively, of profit-share revenue. For technical support contracts, we assume responsibility for fulfilling the support to customers and we recognize the associated revenue either on a straight-line basis over the life of the contracts, or if sufficient history is available, on a usage basis. Credit card revenue We offer promotional financing and credit cards issued by third-party banks that manage and directly extend credit to our customers. The banks are the sole owners of the accounts receivable generated under the program and accordingly, we do not hold any consumer receivables related to these programs. We are eligible to receive a profit-share from our banking partners based on the performance of the programs. We record such profit-share as revenue once the portfolio period to which it relates is complete, and we have sufficient evidence to estimate the amount. Gift cards We sell gift cards to our customers in our retail stores, online and through select third parties. We do not charge administrative fees on unused gift cards and our gift cards do not have an expiration date. We recognize revenue from gift cards when the card is redeemed by the customer. For unredeemed gift cards, we recognize breakage when the likelihood of the gift card being redeemed by the customer is deemed remote, and we determine that we do not have a legal obligation to remit the value of the unredeemed gift cards to a relevant jurisdiction ("gift card breakage"). We determine the breakage rate based on historical redemption patterns and record projected breakage 24 months after the gift card is issued. Gift card breakage income is included in revenue. Gift card breakage income was $40 million, $37 million and $46 million in fiscal 2018, 2017 and 2016, respectively. Sales Incentives We frequently offer sales incentives that entitle our customers to receive a gift card at the time of purchase or a reduction in the price of a product or service either at the point of sale or by submitting a claim for a refund (for example, coupons, rebates, etc.). For sales incentives issued to the customer in conjunction with a sale of merchandise or services, the reduction in revenue is recognized at the time of sale, based on the expected retail value of the incentive expected to be redeemed. 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 at our Best Buy branded stores. Depending on the customer's membership level within our loyalty program, certificate expirations typically range from 2 to 12 months from the date of issuance. The value of points earned by our loyalty program members is included in accrued liabilities and recorded as a reduction of revenue at the time the points are earned, based on the value of points that are projected to be redeemed. We recognize revenue when: (1) a certificate is redeemed by the customer; (2) a certificate expires; or (3) the likelihood of a certificate being redeemed by a customer is low ("certificate breakage"). We determine our certificate breakage rate based upon historical redemption patterns. |
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Cost of Goods Sold | Cost of Goods Sold and Selling, General and Administrative Expenses The following table illustrates the primary costs classified in each major expense category:
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Selling, General and Administrative Expenses | Cost of Goods Sold and Selling, General and Administrative Expenses The following table illustrates the primary costs classified in each major expense category:
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Vendor Allowances | Vendor Allowances We receive allowances from certain vendors through a variety of programs and arrangements intended to offset our costs of promoting and selling merchandise inventories. Vendor allowances are primarily in the form of receipt-based funds or sell-through credits. Receipt-based funds are generally determined at an agreed percentage of the purchase price and are initially deferred and recorded as a reduction of merchandise inventories. The deferred amounts are then included as a reduction of cost of goods sold when the related product is sold. Sell-through credits are generally calculated using an agreed upon amount for each unit sold and are recognized when the related product is sold. Vendor allowances provided as a reimbursement of specific, incremental and identifiable costs, such as specialized store labor or training costs, are included in SG&A as an expense reduction when the cost is incurred. |
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Advertising Costs | Advertising Costs Advertising costs, which are included in SG&A, are expensed when the advertisement is customer-facing. Advertising costs consist primarily of digital, print and television advertisements, as well as promotional events. Advertising expenses were $776 million, $743 million and $742 million in fiscal 2018, 2017 and 2016, respectively. |
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Stock-Based Compensation | Stock-Based Compensation We apply the fair value recognition provisions of accounting guidance as they relate to our stock-based compensation, which requires us to recognize expense for the fair value of our stock-based compensation awards. Compensation expense is recognized over the period in which services are required. It is recognized on a straight-line basis, except where there are performance 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. |
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Summary of Significant Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The following table reconciles the Consolidated Statement of Cash Flows line items impacted by the adoption of these standards at January 28, 2017, and January 30, 2016:
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Property, Plant and Equipment [Table Text Block] | Estimated useful lives by major asset category are as follows:
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Schedule of Goodwill [Table Text Block] | The following table provides the gross carrying amount of goodwill and cumulative goodwill impairment losses ($ in millions):
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Schedule of Self Insurance Liability [Table Text Block] | Our self-insured liabilities included in our Consolidated Balance Sheets were as follows ($ in millions):
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Schedule of Primary Costs, Classified in Each Major Expense Category [Table Text Block] | The following table illustrates the primary costs classified in each major expense category:
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Discontinued Operations (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 03, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial results of discontinued operations | The aggregate financial results of all discontinued operations for fiscal 2018, 2017 and 2016 were as follows ($ in millions):
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Fair Value Measurements (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 03, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value, assets and liabilities measured on recurring basis | The following table sets forth by level within the fair value hierarchy, our financial assets and liabilities that were accounted for at fair value on a recurring basis at February 3, 2018, and January 28, 2017, according to the valuation techniques we used to determine their fair values ($ in millions):
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Fair value, assets and liabilities measured on nonrecurring basis, fair value remeasurements (impairments) | The following table summarizes the fair value remeasurements related to continuing operations recorded in fiscal 2018 and 2017 ($ in millions):
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Restructuring Charges (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 03, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Composition of restructuring charges | Restructuring charges incurred in fiscal 2018, 2017 and 2016 were as follows ($ in millions):
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Restructuring Program Renew Blue Phase 2 [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Composition of restructuring charges | The composition of the restructuring charges we incurred during fiscal 2017 for Renew Blue Phase 2 was as follows ($ in millions):
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Restructuring accrual activity | The following table summarizes our restructuring accrual activity during fiscal 2017 related to termination benefits as a result of Renew Blue Phase 2 ($ in millions):
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Restructuring Program Canadian Brand Consolidation [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Composition of restructuring charges | The composition of the restructuring charges we incurred for this program in fiscal 2018, 2017 and 2016, as well as the cumulative amount incurred through the end of fiscal 2018, was as follows ($ in millions):
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Restructuring accrual activity | The following tables summarize our restructuring accrual activity during fiscal 2018, 2017 and 2016, related to termination benefits and facility closure and other costs as a result of Canadian brand consolidation ($ in millions):
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Debt (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 03, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of long-term debt | Long-term debt consisted of the following ($ in millions):
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Schedule of future maturities of long-term debt, including capitalized leases | At February 3, 2018, the future maturities of long-term debt, net of interest rate swaps and excluding debt discounts, issuance costs and financing and capital lease obligations (see Note 8, Leases, for the future lease obligation maturities), consisted of the following ($ in millions):
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Derivative Instruments Derivative Instruments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 03, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The following table presents the gross fair values of our outstanding derivative instruments and the corresponding classification at February 3, 2018, and January 28, 2017 ($ in millions):
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Derivative Instruments, Gain (Loss) [Table Text Block] | The following table presents the effects of derivative instruments by contract type on other comprehensive income ("OCI") and on our Consolidated Statements of Earnings for fiscal 2018 and 2017 ($ in millions):
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Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | The following table presents the notional amounts of our derivative instruments at February 3, 2018, and January 28, 2017 ($ in millions):
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Shareholders' Equity Shareholders' Equity (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 03, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | Stock-based compensation expense was as follows in fiscal 2018, 2017 and 2016 ($ in millions):
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Stock option activity | Stock option activity was as follows in fiscal 2018:
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Black Scholes valuation model assumptions | In fiscal 2018, 2017 and 2016, we estimated the fair value of each stock option on the date of grant using a lattice or Black Scholes valuation model (for certain individuals) with the following assumptions:
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Summary of the status of nonvested market-based share awards | A summary of the status of our nonvested market-based share awards at February 3, 2018, and changes during fiscal 2018, were as follows:
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Summary of the status of nonvested time-based share awards | A summary of the status of our nonvested time-based share awards at February 3, 2018, and changes during fiscal 2018, were as follows:
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Summary of the status of nonvested performance-based share awards | A summary of the status of our nonvested performance-based share awards at February 3, 2018, and changes during fiscal 2018, were as follows:
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Summary of stock options outstanding | At February 3, 2018, options to purchase 3.1 million shares of common stock were outstanding as follows (shares in millions):
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Reconciliation of the numerators and denominators of basic and diluted earnings per share | The following table presents a reconciliation of the numerators and denominators of basic and diluted earnings per share from continuing operations in fiscal 2018, 2017 and 2016 ($ and shares in millions, except per share amounts):
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Repurchases of common stock | The following table presents information regarding the shares we repurchased and retired in fiscal 2018, 2017 and 2016 ($ and shares in millions, except per share amounts):
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Components of accumulated other comprehensive income, net of tax | The following table provides a reconciliation of the components of accumulated other comprehensive income, net of tax, for fiscal 2018, 2017 and 2016, respectively ($ in millions):
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Leases Leases (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of composition of net rent expense for operating leases, including leases of property and equipment | The composition of net rent expense for all operating leases, including leases of property and equipment, was as follows in fiscal 2018, 2017 and 2016 ($ in millions):
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Schedule of future minimum lease payments under capital, financing and operating leases (not including contingent rentals) | The future minimum lease payments under our capital, financing and operating leases by fiscal year (not including contingent rentals) at February 3, 2018, were as follows ($ in millions):
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Income Taxes Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 03, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of the federal statutory income tax rate to income tax expense | The following is a reconciliation of the federal statutory income tax rate to income tax expense in fiscal 2018, 2017 and 2016 ($ in millions):
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Earning before income tax expense and equity in income (loss) of affiliates | Earnings from continuing operations before income tax expense by jurisdiction was as follows in fiscal 2018, 2017 and 2016 ($ in millions):
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Components of income tax expense | Income tax expense was comprised of the following in fiscal 2018, 2017 and 2016 ($ in millions):
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||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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):
|
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Reconciliation of changes in unrecognized tax benefits | The following table provides a reconciliation of changes in unrecognized tax benefits for fiscal 2018, 2017 and 2016 ($ in millions):
|
Segment and Geographic Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 03, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business segment information | The following table presents our business segment information in fiscal 2018, 2017 and 2016 ($ in millions):
|
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Schedule of geographic information | The following table presents our geographic information in fiscal 2018, 2017 and 2016 ($ in millions):
|
Quarterly Financial Information (Unaudited) Quarterly Financial Information (Unaudited) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 03, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of supplementary financial information | The following tables show selected operating results for each 3-month quarter and full year of fiscal 2018 and 2017 (unaudited) ($ in millions):
|
Summary of Significant Accounting Policies - Description of Business (Details) |
12 Months Ended |
---|---|
Feb. 03, 2018
segments
| |
Accounting Policies [Abstract] | |
Number of Operating Segments | 2 |
Summary of Significant Accounting Policies - Basis of Presentation (Details) $ in Millions |
12 Months Ended |
---|---|
Feb. 03, 2018
USD ($)
| |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ (2) |
Reporting Lag for Certain Foreign Operations in Financial Statements | 1 month |
Retained Earnings [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ (12) |
Summary of Significant Accounting Policies - Fiscal Year (Details) |
12 Months Ended | |
---|---|---|
Feb. 03, 2018 |
Jan. 30, 2016 |
|
Fiscal Year [Abstract] | ||
Number of Weeks in Fiscal Period | 53 | 52 |
Summary of Significant Accounting Policies - Cash & Cash Equivalents (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Feb. 03, 2018 |
Jan. 28, 2017 |
|
Accounting Policies [Abstract] | ||
Maximum Term of Original Maturity to Classify an Instrument as Cash Equivalents | 3 months | |
Cash Equivalents, at Carrying Value | $ 524 | $ 1,531 |
Weighted Average Interest Rate on Cash Equivalents | 1.10% | 0.50% |
Summary of Significant Accounting Policies - Receivables (Details) - USD ($) $ in Millions |
Feb. 03, 2018 |
Jan. 28, 2017 |
---|---|---|
Accounting Policies [Abstract] | ||
Valuation Allowances and Reserves, Balance | $ 37 | $ 52 |
Summary of Significant Accounting Policies - Restricted Assets (Details) - USD ($) $ in Millions |
Feb. 03, 2018 |
Jan. 28, 2017 |
---|---|---|
Accounting Policies [Abstract] | ||
Restricted Cash and Investments | $ 199 | $ 193 |
Summary of Significant Accounting Policies - PP&E (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Feb. 03, 2018 |
Jan. 28, 2017 |
|
Property, Plant and Equipment [Line Items] | ||
Capital Leases, Balance Sheet, Assets by Major Class, Net | $ 184 | $ 166 |
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation | $ 156 | $ 134 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives, minimum (in years) | 5 years | |
Estimated useful lives, maximum (in years) | 35 years | |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives, minimum (in years) | 3 years | |
Estimated useful lives, maximum (in years) | 15 years | |
Fixtures and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives, minimum (in years) | 2 years | |
Estimated useful lives, maximum (in years) | 15 years | |
Assets Held under Capital Leases [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives, minimum (in years) | 3 years | |
Estimated useful lives, maximum (in years) | 5 years |
Summary of Significant Accounting Policies - Impairment of PPE & Exit Activities (Details) - USD ($) $ in Millions |
Feb. 03, 2018 |
Jan. 28, 2017 |
---|---|---|
Accounting Policies [Abstract] | ||
Asset Retirement Obligation, Current | $ 17 | $ 29 |
Asset Retirement Obligations, Noncurrent | $ 21 | $ 37 |
Summary of Significant Accounting Policies - Leases (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Feb. 03, 2018 |
Jan. 28, 2017 |
|
Lessor, Lease, Description [Line Items] | ||
Deferred Rent Credit, Current | $ 30 | $ 33 |
Deferred Rent Credit, Noncurrent | $ 107 | 121 |
Large-format stores [Member] | ||
Lessor, Lease, Description [Line Items] | ||
Term of Lease Agreements, Low End of Range | 10 years | |
Term of Lease Agreements, High End of Range | 20 years | |
Maximum [Member] | Small-format stores [Member] | ||
Lessor, Lease, Description [Line Items] | ||
Lessor, Operating Lease, Term of Contract | 3 years | |
Long-term Debt [Member] | ||
Lessor, Lease, Description [Line Items] | ||
Financing lease obligations | $ 191 | $ 177 |
Summary of Significant Accounting Policies - Goodwill & Indefinite Intangible (Details) - USD ($) $ in Millions |
Feb. 03, 2018 |
Jan. 28, 2017 |
---|---|---|
Summary of Significant Accounting Policies [Abstract] | ||
Indefinite-Lived Trade Names | $ 18 | |
Goodwill | 425 | $ 425 |
Goodwill, Gross | 1,100 | 1,100 |
Goodwill, Impaired, Accumulated Impairment Loss | $ 675 | $ 675 |
Summary of Significant Accounting Policies - Insurance (Details) - USD ($) $ in Millions |
Feb. 03, 2018 |
Jan. 28, 2017 |
---|---|---|
Accounting Policies [Abstract] | ||
Self-insured liabilities included in accrued liabilities | $ 67 | $ 65 |
Self-insured liabilities included in long-term liabilities | 64 | 63 |
Self insurance reserve | $ 131 | $ 128 |
Summary of Significant Accounting Policies - Foreign Currency (Details) |
12 Months Ended |
---|---|
Feb. 03, 2018 | |
Accounting Policies [Abstract] | |
Reporting Lag for Certain Foreign Operations in Financial Statements | 1 month |
Prior Period Foreign Currency Exchange Rate, Used to Align Operations Reported | 1 month |
Summary of Significant Accounting Policies - Revenue (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Feb. 03, 2018 |
Jan. 28, 2017 |
Jan. 30, 2016 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Sales returns reserve | $ 23 | $ 28 | |
Deferred revenue | 453 | 418 | |
Deferred revenue, noncurrent | $ 22 | $ 34 | |
Percentage of Commissions on Sale of Extended Warranties to Revenue | 2.00% | 2.20% | 2.30% |
Profit Share on Sale of Extended Warranties | $ 68 | $ 133 | $ 158 |
Gift Card Redeemability, Determination Period | 24 months | ||
Revenue Recognition, Milestone Method, Revenue Recognized | $ 40 | $ 37 | $ 46 |
Period of Expiration for Customer Loyalty Certificates, Low End of Range | 2 months | ||
Period of Expiration for Customer Loyalty Certificates, High End of Range | 12 months | ||
Retained Earnings [Member] | Minimum [Member] | Accounting Standards Update 2014-09 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Estimate of future ASU adoption cumulative adjustment | $ 75 | ||
Retained Earnings [Member] | Maximum [Member] | Accounting Standards Update 2014-09 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Estimate of future ASU adoption cumulative adjustment | $ 100 |
Summary of Significant Accounting Policies - Advertising Costs (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Feb. 03, 2018 |
Jan. 28, 2017 |
Jan. 30, 2016 |
|
Accounting Policies [Abstract] | |||
Advertising expense | $ 776 | $ 743 | $ 742 |
Discontinued Operations (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Feb. 03, 2018 |
Oct. 28, 2017 |
Jul. 29, 2017 |
Apr. 29, 2017 |
Jan. 28, 2017 |
Oct. 29, 2016 |
Jul. 30, 2016 |
Apr. 30, 2016 |
Feb. 03, 2018 |
Jan. 28, 2017 |
Jan. 30, 2016 |
|||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment | $ 31 | ||||||||||||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | $ 16 | ||||||||||||
Revenue | $ 0 | 0 | 217 | ||||||||||
Restructuring charges(1) | [1] | 0 | 0 | 1 | |||||||||
Gain (loss) from discontinued operations before income tax expense | 1 | 28 | (8) | ||||||||||
Income tax expense | 0 | (7) | (1) | ||||||||||
Gain on sale of discontinued operations | 0 | 0 | 99 | ||||||||||
Net earnings from discontinued operations | $ 0 | $ 1 | $ 0 | $ 0 | $ 0 | $ 2 | $ 16 | $ 3 | $ 1 | $ 21 | $ 90 | ||
|
Fair Value Measurements - Recurring (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Jan. 28, 2017 |
Feb. 03, 2018 |
|
Level 3 | Auction rate securities | ||
LIABILITIES | ||
Proceeds from Sale of Other Assets | $ 2 | |
Fair Value, Measurements, Recurring [Member] | Level 1 | Money market funds | ||
ASSETS | ||
Cash and cash equivalents | 290 | $ 21 |
Other current assets | 7 | 3 |
Fair Value, Measurements, Recurring [Member] | Level 1 | Marketable securities that fund deferred compensation | ||
ASSETS | ||
Other assets | 96 | 99 |
Fair Value, Measurements, Recurring [Member] | Level 2 | Commercial paper | ||
ASSETS | ||
Cash and cash equivalents | 0 | 90 |
Short-term investments | 349 | 474 |
Other current assets | 60 | 60 |
Fair Value, Measurements, Recurring [Member] | Level 2 | Time deposits | ||
ASSETS | ||
Cash and cash equivalents | 15 | 65 |
Short-term investments | 1,332 | 1,558 |
Other current assets | 100 | 101 |
Fair Value, Measurements, Recurring [Member] | Level 2 | Foreign currency derivative instruments | ||
ASSETS | ||
Other current assets | 2 | 2 |
LIABILITIES | ||
Accrued liabilities | 3 | 8 |
Fair Value, Measurements, Recurring [Member] | Level 2 | Interest rate swap derivative instruments | ||
ASSETS | ||
Other assets | 13 | 0 |
LIABILITIES | ||
Accrued liabilities | 0 | 1 |
Long-term liabilities | $ 0 | $ 4 |
Fair Value Measurements Fair Value Measurements - Nonrecurring (Details) - Fair Value, Measurements, Nonrecurring [Member] - Level 3 - USD ($) $ in Millions |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Feb. 03, 2018 |
Jan. 28, 2017 |
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Asset impairment charges | $ 10 | $ 36 | |||||
Remaining net carrying value | [1] | 0 | 0 | ||||
Selling, General and Administrative Expenses [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Asset impairment charges | 9 | 28 | |||||
Remaining net carrying value | [1] | 0 | 0 | ||||
Restructuring charges | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Asset impairment charges | [2] | 1 | 8 | ||||
Remaining net carrying value | [1],[2] | $ 0 | $ 0 | ||||
|
Restructuring Charges Restructuring Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Feb. 03, 2018 |
Oct. 28, 2017 |
Jul. 29, 2017 |
Apr. 29, 2017 |
Jan. 28, 2017 |
Oct. 29, 2016 |
Jul. 30, 2016 |
Apr. 30, 2016 |
Feb. 02, 2019 |
Feb. 03, 2018 |
Jan. 28, 2017 |
Jan. 30, 2016 |
Jan. 31, 2015 |
||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||
Restructuring charges | $ 10 | $ 39 | $ 198 | |||||||||||||||
Restructuring Charges, Operating Income Impact | $ 10 | $ (2) | $ 2 | $ 0 | $ 9 | $ 1 | $ 0 | $ 29 | 10 | 39 | 201 | |||||||
Restructuring Program Best Buy Mobile [Member] | ||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||
Restructuring charges | 9 | 0 | 0 | |||||||||||||||
Restructuring Program Renew Blue Phase 2 [Member] | ||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||
Restructuring charges | 0 | 26 | 0 | |||||||||||||||
Restructuring Program Canadian Brand Consolidation [Member] | ||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||
Restructuring charges | (2) | 3 | 200 | |||||||||||||||
Restructuring Reserve | 15 | 34 | 15 | 34 | 66 | $ 0 | ||||||||||||
Restructuring Program 2013 Renew Blue [Member] [Domain] | ||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||
Restructuring charges | [1] | 3 | 5 | (2) | ||||||||||||||
Other Restructuring [Member] | ||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||
Restructuring charges | [2] | 0 | 5 | 3 | ||||||||||||||
Employee Severance [Member] | Restructuring Program Best Buy Mobile [Member] | ||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||
Restructuring charges | 8 | |||||||||||||||||
Restructuring Reserve | 8 | 8 | ||||||||||||||||
Employee Severance [Member] | Restructuring Program Renew Blue Phase 2 [Member] | ||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||
Restructuring charges | 18 | |||||||||||||||||
Restructuring Reserve | 0 | 0 | 0 | |||||||||||||||
Employee Severance [Member] | Restructuring Program Canadian Brand Consolidation [Member] | ||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||
Restructuring Reserve | 0 | 0 | 0 | 0 | 2 | 0 | ||||||||||||
Employee Severance [Member] | Restructuring Program 2013 Renew Blue [Member] [Domain] | ||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||
Restructuring Reserve | 0 | 0 | ||||||||||||||||
Property and equipment write-downs [Member] | Restructuring Program Best Buy Mobile [Member] | ||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||
Restructuring charges | 1 | |||||||||||||||||
Property and equipment write-downs [Member] | Restructuring Program Renew Blue Phase 2 [Member] | ||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||
Restructuring charges | 8 | |||||||||||||||||
Facility Closing [Member] | Restructuring Program Best Buy Mobile [Member] | ||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||
Restructuring Reserve | 0 | 0 | ||||||||||||||||
Facility Closing [Member] | Restructuring Program Canadian Brand Consolidation [Member] | ||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||
Restructuring Reserve | 15 | $ 34 | 15 | 34 | 64 | $ 0 | ||||||||||||
Facility Closing [Member] | Restructuring Program 2013 Renew Blue [Member] [Domain] | ||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||
Restructuring Reserve | 11 | 11 | ||||||||||||||||
Facility Closing [Member] | Other Restructuring [Member] | ||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||
Restructuring Reserve | $ 4 | 4 | ||||||||||||||||
Domestic Segment [Member] | Restructuring Program 2013 Renew Blue [Member] [Domain] | ||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||
Restructuring charges | 0 | 0 | (1) | |||||||||||||||
International Segment [Member] | Restructuring Program 2013 Renew Blue [Member] [Domain] | ||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||
Restructuring charges | 3 | 5 | (1) | |||||||||||||||
International Segment [Member] | Employee Severance [Member] | Restructuring Program Canadian Brand Consolidation [Member] | ||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||
Restructuring charges | 0 | 0 | 25 | |||||||||||||||
International Segment [Member] | Property and equipment write-downs [Member] | Restructuring Program Canadian Brand Consolidation [Member] | ||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||
Restructuring charges | 0 | 0 | 30 | |||||||||||||||
International Segment [Member] | Facility Closing [Member] | Restructuring Program Canadian Brand Consolidation [Member] | ||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||
Restructuring charges | $ (2) | $ 3 | $ 102 | |||||||||||||||
Scenario, Forecast [Member] | Minimum [Member] | Restructuring Program Best Buy Mobile [Member] | ||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||
Expected Future Pre-Tax Restructuring Charges | $ 55 | |||||||||||||||||
Scenario, Forecast [Member] | Maximum [Member] | Restructuring Program Best Buy Mobile [Member] | ||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||
Expected Future Pre-Tax Restructuring Charges | $ 65 | |||||||||||||||||
|
Restructuring Charges Composition of Restructuring Charges (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Feb. 03, 2018 |
Jan. 28, 2017 |
Jan. 30, 2016 |
|
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 10 | $ 39 | $ 198 |
Restructuring Program Canadian Brand Consolidation [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | (2) | 3 | 200 |
Restructuring and Related Cost, Cost Incurred to Date | 201 | ||
Restructuring Program Canadian Brand Consolidation [Member] | Inventory write-downs [Member] | International Segment [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0 | 0 | 3 |
Restructuring and Related Cost, Cost Incurred to Date | 3 | ||
Restructuring Program Canadian Brand Consolidation [Member] | Employee Severance [Member] | International Segment [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0 | 0 | 25 |
Restructuring and Related Cost, Cost Incurred to Date | 25 | ||
Restructuring Program Canadian Brand Consolidation [Member] | Property and equipment write-downs [Member] | International Segment [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0 | 0 | 30 |
Restructuring and Related Cost, Cost Incurred to Date | 30 | ||
Restructuring Program Canadian Brand Consolidation [Member] | Impairment of Intangible Assets Related to Restructuring [Member] | International Segment [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0 | 0 | 40 |
Restructuring and Related Cost, Cost Incurred to Date | 40 | ||
Restructuring Program Canadian Brand Consolidation [Member] | Facility Closing [Member] | International Segment [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | (2) | 3 | 102 |
Restructuring and Related Cost, Cost Incurred to Date | 103 | ||
Restructuring Program Renew Blue Phase 2 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0 | 26 | 0 |
Restructuring Program Renew Blue Phase 2 [Member] | Employee Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 18 | ||
Restructuring Program Renew Blue Phase 2 [Member] | Property and equipment write-downs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 8 | ||
Restructuring Program Best Buy Mobile [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 9 | $ 0 | $ 0 |
Restructuring Program Best Buy Mobile [Member] | Employee Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 8 | ||
Restructuring Program Best Buy Mobile [Member] | Property and equipment write-downs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 1 |
Restructuring Charges Restructuring Accrual Activity (Details) $ in Millions |
3 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|
May 02, 2015
USD ($)
store
|
Feb. 03, 2018
USD ($)
store
|
Jan. 28, 2017
USD ($)
|
Jan. 30, 2016
USD ($)
|
||||
Restructuring Program Renew Blue Phase 2 [Member] | Employee Severance [Member] | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring reserve, balance at beginning of period | $ 0 | $ 0 | |||||
Charges | 19 | ||||||
Cash payments | (17) | ||||||
Adjustments | (2) | ||||||
Restructuring reserve, balance at end of period | 0 | $ 0 | |||||
Restructuring Program Best Buy Mobile [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Number of Stores to be Closed | store | 257 | ||||||
Restructuring Program Best Buy Mobile [Member] | Employee Severance [Member] | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring reserve, balance at end of period | $ 8 | ||||||
Restructuring Program Best Buy Mobile [Member] | Facility Closing [Member] | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring reserve, balance at end of period | 0 | ||||||
Restructuring Program 2013 Renew Blue [Member] [Domain] | Employee Severance [Member] | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring reserve, balance at end of period | 0 | ||||||
Restructuring Program 2013 Renew Blue [Member] [Domain] | Facility Closing [Member] | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring reserve, balance at end of period | 11 | ||||||
Restructuring Program Canadian Brand Consolidation [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Number of Stores to be Closed | store | 66 | ||||||
Number of Future Shop stores converted to Best Buy stores | store | 65 | ||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring reserve, balance at beginning of period | $ 0 | 34 | 66 | 0 | |||
Charges | 0 | 1 | 141 | ||||
Cash payments | (18) | (39) | 71 | ||||
Adjustments | [1] | (2) | 2 | 3 | |||
Changes in foreign currency exchange rates | 1 | 4 | (7) | ||||
Restructuring reserve, balance at end of period | 15 | 34 | 66 | ||||
Restructuring Program Canadian Brand Consolidation [Member] | Employee Severance [Member] | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring reserve, balance at beginning of period | 0 | 0 | 2 | 0 | |||
Charges | 0 | 0 | 28 | ||||
Cash payments | 0 | (2) | 24 | ||||
Adjustments | [1] | 0 | 0 | (2) | |||
Changes in foreign currency exchange rates | 0 | 0 | 0 | ||||
Restructuring reserve, balance at end of period | 0 | 0 | 2 | ||||
Restructuring Program Canadian Brand Consolidation [Member] | Facility Closing [Member] | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring reserve, balance at beginning of period | $ 0 | 34 | 64 | 0 | |||
Charges | 0 | 1 | 113 | ||||
Cash payments | (18) | (37) | 47 | ||||
Adjustments | [1] | (2) | 2 | 5 | |||
Changes in foreign currency exchange rates | 1 | 4 | (7) | ||||
Restructuring reserve, balance at end of period | $ 15 | $ 34 | $ 64 | ||||
|
Debt Short-Term Debt (Details) - U.S. revolving credit facility - Five-Year [Member] $ in Millions |
Feb. 03, 2018
USD ($)
|
---|---|
Short-term Debt | |
Line of credit facility, current borrowing capacity | $ 1,250 |
Line of Credit Facility, Previous Borrowing Capacity | $ 1,250 |
Debt instrument, basis spread on federal funds rate (as a percent) | 0.50% |
Debt instrument, basis spread on LIBOR (as a percent) | 1.00% |
Debt instrument, lower range on ABR (as a percent) | 0.00% |
Debt instrument, higher range on ABR (as a percent) | 0.50% |
LIBOR margin, low end of the range (as a percent) | 0.90% |
LIBOR margin, high end of the range (as a percent) | 1.50% |
Debt instrument, lower range on facility fee (as a percent) | 0.10% |
Debt instrument, higher range on facility fee (as a percent) | 0.25% |
Line of credit facility, amount outstanding | $ 0 |
Debt Long-Term Debt (Details) - USD ($) $ in Millions |
1 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jul. 31, 2013 |
Mar. 31, 2011 |
Feb. 03, 2018 |
Jan. 28, 2017 |
Jul. 16, 2013 |
||||
Debt Instrument [Line Items} | ||||||||
Derivative Liability, Fair Value, Gross Liability | $ (13) | $ (3) | ||||||
Less: current portion | (544) | (44) | ||||||
Long-Term Debt | 811 | 1,321 | ||||||
Future maturities of long-term debt, including capitalized leases | ||||||||
2019 | 499 | |||||||
2020 | 0 | |||||||
2021 | 0 | |||||||
2022 | 646 | |||||||
2023 | 0 | |||||||
Thereafter | 0 | |||||||
Notes due 2018 [Member] | ||||||||
Debt Instrument [Line Items} | ||||||||
Long-term Debt | $ 500 | 500 | ||||||
Debt instrument issued, principal amount | $ 500 | |||||||
Interest rate (as a percent) | 5.00% | |||||||
Underwriting discounts | $ 5 | |||||||
Net proceeds from the sale of the Notes | $ 495 | |||||||
Redemption price, as percentage of principal amount of debt instrument (as a percent) | 100.00% | |||||||
Debt Instrument, Treasury Rate Basis Points for Redemption | 50 | |||||||
Redemption price upon control triggering event, percentage of principal amount (as a percent) | 101.00% | |||||||
Notes due 2021 [Member] | ||||||||
Debt Instrument [Line Items} | ||||||||
Long-term Debt | $ 650 | 650 | ||||||
Debt instrument issued, principal amount | $ 650 | |||||||
Interest rate (as a percent) | 5.50% | |||||||
Underwriting discounts | 4 | |||||||
Net proceeds from the sale of the Notes | $ 644 | |||||||
Redemption price, as percentage of principal amount of debt instrument (as a percent) | 100.00% | |||||||
Redemption price upon control triggering event, percentage of principal amount (as a percent) | 101.00% | |||||||
Interest Rate Swap [Member] | ||||||||
Debt Instrument [Line Items} | ||||||||
Long-term Debt | 13 | |||||||
Long-term Debt [Member] | ||||||||
Debt Instrument [Line Items} | ||||||||
Long-term debt, excluding debt discounts and issuance costs and financing and capital lease obligations | $ 1,145 | 1,163 | ||||||
Debt discounts and issuance costs | (3) | (5) | ||||||
Financing lease obligations | 191 | 177 | ||||||
Capital lease obligations | 22 | 30 | ||||||
Long-term Debt and Capital Lease Obligations, Including Current Maturities | 1,355 | 1,365 | ||||||
Less: current portion | (544) | (44) | ||||||
Long-Term Debt | 811 | 1,321 | ||||||
Long-term debt, fair value | 1,199 | 1,240 | ||||||
Interest Rate Swap [Member] | ||||||||
Debt Instrument [Line Items} | ||||||||
Derivative Liability, Fair Value, Gross Liability | [1] | $ 0 | ||||||
Interest Rate Swap [Member] | Long-term Debt [Member] | ||||||||
Debt Instrument [Line Items} | ||||||||
Derivative Liability, Fair Value, Gross Liability | [1] | $ (5) | ||||||
|
Derivative Instruments Derivative Instruments Narrative (Details) |
12 Months Ended |
---|---|
Feb. 03, 2018 | |
Net Investment Hedging [Member] | |
Derivative [Line Items] | |
Derivative, Term of Contract | 12 months |
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | |
Derivative [Line Items] | |
Derivative, Term of Contract | 12 months |
Derivative Instruments Derivative Instruments (Details) - USD ($) $ in Millions |
Feb. 03, 2018 |
Jan. 28, 2017 |
|||||
---|---|---|---|---|---|---|---|
Derivatives, Fair Value [Line Items] | |||||||
Derivative Asset, Fair Value, Gross Asset | $ 2 | $ 15 | |||||
Derivative Liability, Fair Value, Gross Liability | 13 | 3 | |||||
Derivative, Notional Amount | 1,645 | 998 | |||||
Net Investment Hedging [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative Asset, Fair Value, Gross Asset | [1] | 2 | 2 | ||||
Derivative Liability, Fair Value, Gross Liability | [1] | 7 | 2 | ||||
Derivative, Notional Amount | 462 | 205 | |||||
Interest Rate Swap [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative Asset, Fair Value, Gross Asset | [2] | 0 | 13 | ||||
Derivative Liability, Fair Value, Gross Liability | [2] | 0 | |||||
Derivative, Notional Amount | 1,150 | 750 | |||||
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative Asset, Fair Value, Gross Asset | [1] | 0 | 0 | ||||
Derivative Liability, Fair Value, Gross Liability | [1] | 1 | 1 | ||||
Derivative, Notional Amount | 33 | $ 43 | |||||
Long-term Debt [Member] | Interest Rate Swap [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative Liability, Fair Value, Gross Liability | [2] | $ 5 | |||||
|
Derivative Instruments Changes in Fair Value Hedges on Income (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Feb. 03, 2018 |
Jan. 28, 2017 |
|
Net Investment Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Pre-tax loss recognized in OCI | $ (14) | $ (14) |
Interest Rate Swap [Member] | Interest Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Interest rate swap loss | (18) | (12) |
Long-term debt gain | 18 | 12 |
Net impact | 0 | 0 |
Foreign Exchange Forward [Member] | Selling, General and Administrative Expenses [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Loss recognized within selling, general and administrative expenses | $ (3) | $ (3) |
Shareholders' Equity Shareholders' Equity Narrative (Details) - USD ($) shares in Millions, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Feb. 03, 2018 |
Jan. 28, 2017 |
Jan. 30, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 22.5 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 19.2 | ||
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Term | 10 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Time-Based Share Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Payment Award, Award Vesting Period, Minimum | 3 years | ||
Share-based Payment Award, Award Vesting Period, Maximum | 3 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Annual Vesting Percentage | 33.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | 25% of the award vests on the date of grant and 25% vests on each of the three anniversary dates thereafter | ||
Employee Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Purchase Date | 5.00% | 5.00% | 5.00% |
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 0.1 | 0.2 | 0.2 |
Employee Stock Purchase Plan Amount Accumulated by Plan Participants | $ 3 | $ 2 |
Shareholders' Equity Stock-Based Compensation Expense (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Feb. 03, 2018 |
Jan. 28, 2017 |
Jan. 30, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 129 | $ 108 | $ 104 |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | 6 | 9 | 15 |
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, Compensation Cost | 19 | 15 | 16 |
Performance-Based Share Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | 13 | 6 | 0 |
Time-Based Share Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | $ 91 | $ 78 | $ 73 |
Shareholders' Equity Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Feb. 03, 2018 |
Jan. 28, 2017 |
Jan. 30, 2016 |
||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum | [1] | 0.90% | 0.50% | 0.10% | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 3,069,000 | 6,987,000 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 32.32 | $ 36.61 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 176,000 | |||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 44.85 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 3,931,000 | |||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 40.05 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 163,000 | |||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | $ 43.50 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 5 years 1 month 6 days | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 119 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 3,069,000 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 32.32 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 5 years 1 month 6 days | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 119 | |||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 2,434,000 | |||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $ 30.40 | |||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Remaining Contractual Term | 3 years 6 months | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 99 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 12.52 | $ 8.04 | $ 11.59 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 57 | $ 55 | $ 14 | |||||||
Proceeds from Stock Options Exercised | 156 | 164 | 40 | |||||||
Employee Service Share-based Compensation, Tax Benefit from Exercise of Stock Options | $ 19 | $ 19 | $ 5 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 3.00% | 3.50% | 2.30% | |||||||
Fair Value Assumptions, Expected Volatility Rate | [2] | 38.00% | 37.00% | 37.00% | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | [3] | 6 years | 6 years | 6 years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum | [1] | 2.60% | 2.00% | 2.10% | ||||||
Employee Stock Option [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 2 | |||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 3 months 18 days | |||||||||
|
Shareholders' Equity Market-Based Share Awards (Details) - Market-Based Share Awards [Member] - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | |
---|---|---|
Feb. 03, 2018 |
Jan. 28, 2017 |
|
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, Nonvested, Number | 1,422,000 | 1,552,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 36.35 | $ 32.99 |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 564,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 42.40 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 640,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 29.46 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 54,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 35.81 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 19 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 7 months 6 days |
Shareholders' Equity Time-Based Share Awards (Details) - Time-Based Share Awards [Member] - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | |
---|---|---|
Feb. 03, 2018 |
Jan. 28, 2017 |
|
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, Nonvested, Number | 5,050,000 | 5,365,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 36.17 | $ 31.57 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 2,326,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 43.52 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 2,242,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 32.79 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 399,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 36.07 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 96 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 9 months 18 days |
Shareholders' Equity Performance-Based Share Awards (Details) - Performance-Based Share Awards [Member] - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | |
---|---|---|
Feb. 03, 2018 |
Jan. 28, 2017 |
|
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, Nonvested, Number | 685,000 | 438,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 37.04 | $ 28.98 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 416,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 42.31 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 146,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 28.98 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 23,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 29.66 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 14 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 10 months 24 days |
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Feb. 03, 2018 |
Oct. 28, 2017 |
Jul. 29, 2017 |
Apr. 29, 2017 |
Jan. 28, 2017 |
Oct. 29, 2016 |
Jul. 30, 2016 |
Apr. 30, 2016 |
Feb. 03, 2018 |
Jan. 28, 2017 |
Jan. 30, 2016 |
|
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 3,069,000 | 6,987,000 | 3,069,000 | 6,987,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 32.32 | $ 36.61 | $ 32.32 | $ 36.61 | |||||||
Numerator [Abstract] | |||||||||||
Net earnings from continuing operations attributable to Best Buy Co., Inc., diluted | $ 999 | $ 1,207 | $ 807 | ||||||||
Denominator [Abstract] | |||||||||||
Weighted-average common shares outstanding (in shares) | 300,400,000 | 318,500,000 | 346,500,000 | ||||||||
Effect of Potentially Dilutive Securities [Abstract] | |||||||||||
Stock options and other | 6,700,000 | 4,100,000 | 4,200,000 | ||||||||
Weighted-average common shares outstanding, assuming dilution (in shares) | 307,100,000 | 322,600,000 | 350,700,000 | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 4,500,000 | 8,900,000 | ||||||||
Earnings per share attributable to Best Buy Co., Inc. | |||||||||||
Basic (in dollars per share) | $ 3.33 | $ 3.79 | $ 2.33 | ||||||||
Diluted (in dollars per share) | $ 1.23 | $ 0.78 | $ 0.67 | $ 0.60 | $ 1.91 | $ 0.60 | $ 0.56 | $ 0.69 | $ 3.26 | $ 3.74 | $ 2.30 |
In the Money Stock Options [Member] | |||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 2,400,000.0 | 2,400,000.0 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Percentage | 100.00% | 100.00% | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 30.40 | $ 30.40 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Unexercisable, Number | 700,000.0 | 700,000.0 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Unexercisable, Percentage | 100.00% | 100.00% | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Unexercisable, Weighted Average Exercise Price | $ 39.71 | $ 39.71 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 3,100,000.0 | 3,100,000.0 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Percentage | 100.00% | 100.00% | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 32.32 | $ 32.32 |
Shareholders' Equity Repurchase of Common Stock (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
2 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|
Mar. 29, 2018 |
Feb. 02, 2019 |
Feb. 03, 2018 |
Jan. 28, 2017 |
Jan. 30, 2016 |
Feb. 27, 2017 |
Jun. 30, 2011 |
|
Stock Repurchases [Line Items] | |||||||
Current Two Year Projection of Share Repurchases, Value | $ 3,500 | ||||||
Prior Two Year Projection of Share Repurchases, Value | 3,000 | ||||||
Accelerated Share Repurchase Price (low end of the range) | 150 | ||||||
Accelerated Share Repurchase Price (high end of the range) | $ 175 | ||||||
Prepaid repurchase of common stock | $ 55 | ||||||
Accelerated Share Repurchase Settlement Amount | $ 165 | ||||||
Stock Repurchased and Retired at ASR Settlement, Shares | 1.6 | ||||||
Accelerated Share Repurchases, Description of Adjustment to Initial Price Paid | $ 10 | ||||||
Open market [Domain] | |||||||
Stock Repurchases [Line Items] | |||||||
Average price per share | $ 57.16 | $ 36.11 | $ 31.03 | ||||
Number of share repurchased and retired | 35.1 | 19.5 | 28.4 | ||||
Unsettled shares, cost | $ 13 | $ 8 | |||||
Unsettled shares, shares | 0.2 | 0.1 | |||||
Total cost of shares repurchased | $ 2,009 | $ 706 | $ 880 | ||||
January 2016 ASR [Domain] | |||||||
Stock Repurchases [Line Items] | |||||||
Average price per share | $ 0.00 | $ 28.55 | $ 27.28 | ||||
Number of share repurchased and retired | 0.0 | 1.6 | 4.4 | ||||
Total cost of shares repurchased | $ 0 | $ 45 | $ 120 | ||||
Total share repurchases [Domain] | |||||||
Stock Repurchases [Line Items] | |||||||
Average price per share | $ 57.16 | $ 35.54 | $ 30.53 | ||||
Number of share repurchased and retired | 35.1 | 21.1 | 32.8 | ||||
Total cost of shares repurchased | $ 2,009 | $ 751 | $ 1,000 | ||||
February 2017 share repurchase program [Member] | |||||||
Stock Repurchases [Line Items] | |||||||
Stock Repurchase Program, Authorized Amount | $ 5,000 | ||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 3,000 | ||||||
June 2011 share repurchase program [Member} | |||||||
Stock Repurchases [Line Items] | |||||||
Stock Repurchase Program, Authorized Amount | $ 5,000 | ||||||
Total share repurchases [Domain] | |||||||
Stock Repurchases [Line Items] | |||||||
Number of share repurchased and retired | 3.5 | ||||||
Total cost of shares repurchased | $ 249 | ||||||
Scenario, Forecast [Member] | |||||||
Stock Repurchases [Line Items] | |||||||
Future Intended Share Repurchase Amount, Value | $ 1,500 |
Shareholders' Equity Components of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Feb. 03, 2018 |
Jan. 28, 2017 |
Jan. 30, 2016 |
Jan. 31, 2015 |
|
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign currency translation | $ 314 | $ 279 | $ 271 | $ 382 |
Total Best Buy Co., Inc. Shareholders' Equity | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign currency translation adjustments | $ 35 | 10 | (44) | |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification of (gains) losses on available-for-sale investments into earnings | $ 2 | $ 67 |
Leases (Details) - USD ($) $ in Millions |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Feb. 03, 2018 |
Jan. 28, 2017 |
Jan. 30, 2016 |
||||
Operating Leases, Rent Expense, Net [Abstract] | ||||||
Minimum rentals | $ 797 | $ 789 | $ 797 | |||
Contingent rentals | 1 | 1 | 1 | |||
Total rent expense | 798 | 790 | 798 | |||
Less: sublease income | (16) | (16) | (15) | |||
Net rent expense | 782 | $ 774 | $ 783 | |||
Future minimum lease payments under capital leases | ||||||
2019 | 7 | |||||
2020 | 4 | |||||
2021 | 3 | |||||
2022 | 2 | |||||
2023 | 2 | |||||
Thereafter | 9 | |||||
Subtotal | 27 | |||||
Less amount representing interest | (5) | |||||
Present value of minimum lease payments | 22 | |||||
Less current maturities | (7) | |||||
Present value of minimum lease payments, less current maturities | 15 | |||||
Future minimum lease payments under financing leases | ||||||
2019 | 47 | |||||
2020 | 43 | |||||
2021 | 36 | |||||
2022 | 28 | |||||
2023 | 18 | |||||
Thereafter | 47 | |||||
Subtotal | 219 | |||||
Present value of minimum lease payments | (28) | |||||
Present value of minimum lease payments | 191 | |||||
Less current maturities | (39) | |||||
Present value of minimum lease payments, less current maturities | 152 | |||||
Future minimum lease payments under operating leases | ||||||
2019 | [1] | 791 | ||||
2020 | [1] | 669 | ||||
2021 | [1] | 533 | ||||
2022 | [1] | 396 | ||||
2023 | [1] | 257 | ||||
Thereafter | [1] | 400 | ||||
Subtotal | [1] | 3,046 | ||||
Other Operating Lease Payments | 900 | |||||
Minimum sublease rent income excluded from minimum lease payments | $ 69 | |||||
|
Benefit Plans Benefit Plans (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Feb. 03, 2018 |
Jan. 28, 2017 |
Jan. 30, 2016 |
|
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
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% | ||
Defined Contribution Plan, Cost | $ 62 | $ 56 | $ 53 |
Non-qualified, unfunded deferred compensation plan [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Deferred Compensation Liability, Classified, Noncurrent | 27 | 31 | |
Deferred Compensation Plan Assets | $ 99 | $ 96 |
Income Taxes Tax Rate Reconciliation (Details) - USD ($) |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Feb. 03, 2018 |
Feb. 03, 2018 |
Jan. 28, 2017 |
Jan. 30, 2016 |
|
Effective Income Tax Rate [Line Items] | ||||
Tax Cuts and Jobs Act, Incomplete Accounting, Change in Tax Rate, Deferred Tax Asset (Liability), Provisional Income Tax Expense (Benefit) | $ 74,000,000 | |||
Tax Cuts and Jobs Act, Incomplete Accounting, Transition Tax for Accumulated Foreign Earnings, Provisional Income Tax Expense (Benefit) | $ 209,000,000 | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 33.70% | 35.00% | 35.00% | |
Reconciliation of the federal statutory income tax rate to income tax expense | ||||
Federal income tax at the statutory rate | $ 613,000,000 | $ 635,000,000 | $ 458,000,000 | |
State income taxes, net of federal benefit | 44,000,000 | 38,000,000 | 38,000,000 | |
(Benefit) expense from foreign operations | (85,000,000) | (46,000,000) | 5,000,000 | |
Other | (37,000,000) | (18,000,000) | 2,000,000 | |
Tax Reform | 283,000,000 | |||
Income tax expense | $ 818,000,000 | $ 609,000,000 | $ 503,000,000 | |
Effective income tax rate | 45.00% | 33.50% | 38.40% | |
Adjustment for Tax Act [Member] | ||||
Effective Income Tax Rate [Line Items] | ||||
Tax Cuts and Jobs Act, Incomplete Accounting, Change in Tax Rate, Deferred Tax Asset (Liability), Provisional Income Tax Expense (Benefit) | $ 74,000,000 | |||
Tax Cuts and Jobs Act, Incomplete Accounting, Transition Tax for Accumulated Foreign Earnings, Provisional Income Tax Expense (Benefit) | 209,000,000 | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | |||
Reconciliation of the federal statutory income tax rate to income tax expense | ||||
Tax Reform | $ 283,000,000 | $ 0 | $ 0 |
Income Taxes Income Tax Expense (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Feb. 03, 2018 |
Jan. 28, 2017 |
Jan. 30, 2016 |
|
Earnings from continuing operations before income tax expense and equity in (loss) income of affiliates | |||
United States | $ 1,480 | $ 1,507 | $ 1,310 |
Outside the United States | 337 | 309 | 0 |
Earnings from continuing operations before income tax expense | 1,817 | 1,816 | 1,310 |
Current: | |||
Federal | 547 | 317 | 347 |
State | 59 | 37 | 48 |
Foreign | 50 | 54 | 60 |
Current income tax expense | 656 | 408 | 455 |
Deferred: | |||
Federal | 141 | 163 | 65 |
State | 11 | 21 | 10 |
Foreign | 10 | 17 | (27) |
Deferred income tax expense | 162 | $ 201 | $ 48 |
Income tax expense | $ 283 |
Income Taxes Components of Deferreds (Details) - USD ($) $ in Millions |
Feb. 03, 2018 |
Jan. 28, 2017 |
---|---|---|
Components of deferred tax assets and liabilities | ||
Accrued property expenses | $ 52 | $ 91 |
Other accrued expenses | 43 | 76 |
Deferred revenue | 69 | 104 |
Compensation and benefits | 32 | 43 |
Stock-based compensation | 32 | 64 |
Deferred Tax Assets, Goodwill and Intangible Assets | 102 | 210 |
Loss and credit carryforwards | 120 | 123 |
Other | 38 | 59 |
Total deferred tax assets | 488 | 770 |
Valuation allowance | (99) | (94) |
Total deferred tax assets after valuation allowance | 389 | 676 |
Property and equipment | (163) | (240) |
Inventory | (47) | (97) |
Other | (20) | (22) |
Total deferred tax liabilities | (230) | (359) |
Net deferred tax assets | 159 | 317 |
Net deferred tax assets | $ 159 | $ 317 |
Income Taxes Tax Credit and Operating Loss Carryforwards (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Feb. 03, 2018 |
Jan. 28, 2017 |
|
Tax Credit Carryforward [Line Items] | ||
Valuation allowance | $ 99 | $ 94 |
Decrease in the valuation allowance, related to the international net operating loss carryforwards and other international deferred tax assets | 5 | |
State [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | 11 | |
Tax credit carryforwards, valuation allowance | 7 | |
Capital Loss Carryforwards [Member] | State [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | 6 | |
Capital Loss Carryforwards [Member] | U.S. and State [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards, valuation allowance | 16 | |
Federal [Member] | U.S. [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Total net operating loss carryforwards | 9 | |
Federal [Member] | Foreign Tax Credit Carryforwards [Member] | U.S. [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | 1 | |
Tax credit carryforwards, valuation allowance | 1 | |
Federal [Member] | Capital Loss Carryforwards [Member] | U.S. [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | 2 | |
International [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Total net operating loss carryforwards | 81 | |
Net operating loss carryforwards subject to expiration | 76 | |
Tax credit carryforwards | 2 | |
Net operating loss carryforwards, valuation allowance | 75 | |
International [Member] | Capital Loss Carryforwards [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | $ 8 |
Income Taxes Unrecognized Tax Benefits (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Feb. 03, 2018 |
Jan. 28, 2017 |
Jan. 30, 2016 |
|
Reconciliation of changes in unrecognized tax benefits | |||
Balance at beginning of period | $ 374 | $ 469 | $ 410 |
Gross increases related to prior period tax positions | 19 | 11 | 30 |
Gross decreases related to prior period tax positions | (126) | (144) | (13) |
Gross increases related to current period tax positions | 29 | 55 | 59 |
Settlements with taxing authorities | (12) | (12) | (9) |
Lapse of statute of limitations | (5) | (5) | (8) |
Balance at end of period | 279 | 374 | 469 |
Unrecognized tax benefits that would impact the effective tax rate if recognized | 263 | 346 | 337 |
Interest expense recognized as component of income tax expense | 10 | 9 | 10 |
Accrued interest in income tax expense | 42 | 61 | 89 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | $ 0 | $ 1 | $ 1 |
Segment and Geographic Information Segment Information (Details) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Feb. 03, 2018
USD ($)
|
Oct. 28, 2017
USD ($)
|
Jul. 29, 2017
USD ($)
|
Apr. 29, 2017
USD ($)
|
Jan. 28, 2017
USD ($)
|
Oct. 29, 2016
USD ($)
|
Jul. 30, 2016
USD ($)
|
Apr. 30, 2016
USD ($)
|
Feb. 03, 2018
USD ($)
segments
|
Jan. 28, 2017
USD ($)
|
Jan. 30, 2016
USD ($)
|
|||||||||||||||||
Business segment information | |||||||||||||||||||||||||||
Number of reportable segments | segments | 2 | ||||||||||||||||||||||||||
Total revenue | $ 15,363 | $ 9,320 | $ 8,940 | $ 8,528 | $ 13,482 | $ 8,945 | $ 8,533 | $ 8,443 | $ 42,151 | $ 39,403 | $ 39,528 | ||||||||||||||||
Operating income(2) | 872 | [1] | $ 350 | [1] | $ 321 | [1] | $ 300 | [1] | 881 | [2] | $ 312 | [2] | $ 289 | [2] | $ 372 | [2] | 1,843 | [1] | 1,854 | [2] | 1,375 | ||||||
Other income (expense) | |||||||||||||||||||||||||||
Gain on sale of investments | 1 | 3 | 2 | ||||||||||||||||||||||||
Investment income and other | 48 | 31 | 13 | ||||||||||||||||||||||||
Interest expense | (75) | (72) | (80) | ||||||||||||||||||||||||
Earnings from continuing operations before income tax expense | 1,817 | 1,816 | 1,310 | ||||||||||||||||||||||||
Total assets | 13,049 | 13,856 | 13,049 | 13,856 | 13,519 | ||||||||||||||||||||||
Total capital expenditures | 688 | 580 | 649 | ||||||||||||||||||||||||
Total depreciation | 683 | 654 | 657 | ||||||||||||||||||||||||
International Segment [Member] | |||||||||||||||||||||||||||
Business segment information | |||||||||||||||||||||||||||
Total revenue | $ 3,489 | $ 3,155 | $ 3,163 | ||||||||||||||||||||||||
Percentage of revenue, by revenue category (as a percent) | 100.00% | 100.00% | 100.00% | ||||||||||||||||||||||||
Operating income(2) | $ 91 | $ 90 | $ (210) | ||||||||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||||||
Total assets | 1,496 | 1,360 | 1,496 | 1,360 | 1,201 | ||||||||||||||||||||||
Total capital expenditures | 82 | 56 | 47 | ||||||||||||||||||||||||
Total depreciation | $ 52 | $ 41 | $ 44 | ||||||||||||||||||||||||
International Segment [Member] | Consumer Electronics [Member] | |||||||||||||||||||||||||||
Business segment information | |||||||||||||||||||||||||||
Percentage of revenue, by revenue category (as a percent) | 32.00% | 31.00% | 31.00% | ||||||||||||||||||||||||
International Segment [Member] | Computing and Mobile Phones [Member] | |||||||||||||||||||||||||||
Business segment information | |||||||||||||||||||||||||||
Percentage of revenue, by revenue category (as a percent) | 46.00% | 48.00% | 48.00% | ||||||||||||||||||||||||
International Segment [Member] | Entertainment [Member] | |||||||||||||||||||||||||||
Business segment information | |||||||||||||||||||||||||||
Percentage of revenue, by revenue category (as a percent) | 7.00% | 7.00% | 9.00% | ||||||||||||||||||||||||
International Segment [Member] | Appliances [Member] | |||||||||||||||||||||||||||
Business segment information | |||||||||||||||||||||||||||
Percentage of revenue, by revenue category (as a percent) | 8.00% | 6.00% | 5.00% | ||||||||||||||||||||||||
International Segment [Member] | Services [Member] | |||||||||||||||||||||||||||
Business segment information | |||||||||||||||||||||||||||
Percentage of revenue, by revenue category (as a percent) | 5.00% | 7.00% | 6.00% | ||||||||||||||||||||||||
International Segment [Member] | Other [Member] | |||||||||||||||||||||||||||
Business segment information | |||||||||||||||||||||||||||
Percentage of revenue, by revenue category (as a percent) | 2.00% | 1.00% | 1.00% | ||||||||||||||||||||||||
Domestic Segment [Member] | |||||||||||||||||||||||||||
Business segment information | |||||||||||||||||||||||||||
Total revenue | $ 38,662 | $ 36,248 | $ 36,365 | ||||||||||||||||||||||||
Percentage of revenue, by revenue category (as a percent) | 100.00% | 100.00% | 100.00% | ||||||||||||||||||||||||
Operating income(2) | [3] | $ 1,752 | $ 1,764 | $ 1,585 | |||||||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||||||
Total assets | $ 11,553 | $ 12,496 | 11,553 | 12,496 | 12,318 | ||||||||||||||||||||||
Total capital expenditures | 606 | 524 | 602 | ||||||||||||||||||||||||
Total depreciation | $ 631 | $ 613 | $ 613 | ||||||||||||||||||||||||
Domestic Segment [Member] | Consumer Electronics [Member] | |||||||||||||||||||||||||||
Business segment information | |||||||||||||||||||||||||||
Percentage of revenue, by revenue category (as a percent) | 33.00% | 34.00% | 32.00% | ||||||||||||||||||||||||
Domestic Segment [Member] | Computing and Mobile Phones [Member] | |||||||||||||||||||||||||||
Business segment information | |||||||||||||||||||||||||||
Percentage of revenue, by revenue category (as a percent) | 45.00% | 45.00% | 46.00% | ||||||||||||||||||||||||
Domestic Segment [Member] | Entertainment [Member] | |||||||||||||||||||||||||||
Business segment information | |||||||||||||||||||||||||||
Percentage of revenue, by revenue category (as a percent) | 8.00% | 7.00% | 8.00% | ||||||||||||||||||||||||
Domestic Segment [Member] | Appliances [Member] | |||||||||||||||||||||||||||
Business segment information | |||||||||||||||||||||||||||
Percentage of revenue, by revenue category (as a percent) | 10.00% | 9.00% | 8.00% | ||||||||||||||||||||||||
Domestic Segment [Member] | Services [Member] | |||||||||||||||||||||||||||
Business segment information | |||||||||||||||||||||||||||
Percentage of revenue, by revenue category (as a percent) | 4.00% | 5.00% | 5.00% | ||||||||||||||||||||||||
Domestic Segment [Member] | Other [Member] | |||||||||||||||||||||||||||
Business segment information | |||||||||||||||||||||||||||
Percentage of revenue, by revenue category (as a percent) | 0.00% | 0.00% | 1.00% | ||||||||||||||||||||||||
|
Segment and Geographic Information Geographic Information (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Feb. 03, 2018 |
Oct. 28, 2017 |
Jul. 29, 2017 |
Apr. 29, 2017 |
Jan. 28, 2017 |
Oct. 29, 2016 |
Jul. 30, 2016 |
Apr. 30, 2016 |
Feb. 03, 2018 |
Jan. 28, 2017 |
Jan. 30, 2016 |
|
Geographic Areas, Revenues from External Customers [Abstract] | |||||||||||
Total revenue | $ 15,363 | $ 9,320 | $ 8,940 | $ 8,528 | $ 13,482 | $ 8,945 | $ 8,533 | $ 8,443 | $ 42,151 | $ 39,403 | $ 39,528 |
Geographic Areas, Long-Lived Assets [Abstract] | |||||||||||
Long-lived assets, net | 2,421 | 2,293 | 2,421 | 2,293 | 2,346 | ||||||
United States [Member] | |||||||||||
Geographic Areas, Revenues from External Customers [Abstract] | |||||||||||
Total revenue | 38,662 | 36,248 | 36,365 | ||||||||
Geographic Areas, Long-Lived Assets [Abstract] | |||||||||||
Long-lived assets, net | 2,205 | 2,120 | 2,205 | 2,120 | 2,189 | ||||||
Canada [Member] | |||||||||||
Geographic Areas, Revenues from External Customers [Abstract] | |||||||||||
Total revenue | 3,187 | 2,899 | 2,917 | ||||||||
Geographic Areas, Long-Lived Assets [Abstract] | |||||||||||
Long-lived assets, net | 190 | 156 | 190 | 156 | 140 | ||||||
Other [Member] | |||||||||||
Geographic Areas, Revenues from External Customers [Abstract] | |||||||||||
Total revenue | 302 | 256 | 246 | ||||||||
Geographic Areas, Long-Lived Assets [Abstract] | |||||||||||
Long-lived assets, net | $ 26 | $ 17 | $ 26 | $ 17 | $ 17 |
Contingencies and Commitments Commitments (Details) $ in Millions |
12 Months Ended |
---|---|
Feb. 03, 2018
USD ($)
| |
Outstanding letters of credit and bankers' acceptances [Member] | |
Commitments [Line Items] | |
Unrecorded Unconditional Purchase Obligation, Purchases | $ 83 |
Quarterly Financial Information (Unaudited) Quarterly Financial Information (Unaudited) (Details) |
3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Feb. 03, 2018
USD ($)
$ / shares
|
Oct. 28, 2017
USD ($)
$ / shares
|
Jul. 29, 2017
USD ($)
$ / shares
|
Apr. 29, 2017
USD ($)
$ / shares
|
Jan. 28, 2017
USD ($)
$ / shares
|
Oct. 29, 2016
USD ($)
$ / shares
|
Jul. 30, 2016
USD ($)
$ / shares
|
Apr. 30, 2016
USD ($)
$ / shares
|
May 02, 2015
store
|
Feb. 03, 2018
USD ($)
$ / shares
|
Jan. 28, 2017
USD ($)
$ / shares
|
Jan. 30, 2016
USD ($)
$ / shares
|
|||||||||||||||||||||
Quarterly Financial Information [Line Items] | ||||||||||||||||||||||||||||||||
Net earnings from continuing operations | $ 364,000,000 | [1] | $ 238,000,000 | [1] | $ 209,000,000 | [1] | $ 188,000,000 | [1] | $ 607,000,000 | $ 192,000,000 | $ 182,000,000 | $ 226,000,000 | $ 999,000,000 | [1] | $ 1,207,000,000 | $ 807,000,000 | ||||||||||||||||
Gain from discontinued operations (Note 2), net of tax expense of $0, $7 and $1, respectively | 0 | 1,000,000 | 0 | 0 | 0 | 2,000,000 | 16,000,000 | 3,000,000 | 1,000,000 | 21,000,000 | 90,000,000 | |||||||||||||||||||||
Revenue | $ 15,363,000,000 | $ 9,320,000,000 | $ 8,940,000,000 | $ 8,528,000,000 | $ 13,482,000,000 | $ 8,945,000,000 | $ 8,533,000,000 | $ 8,443,000,000 | $ 42,151,000,000 | $ 39,403,000,000 | 39,528,000,000 | |||||||||||||||||||||
Comparable sales % change(1) | [2] | 9.00% | 4.40% | 5.40% | 1.60% | (0.70%) | 1.80% | 0.80% | (0.10%) | 5.60% | 0.30% | |||||||||||||||||||||
Gross profit | $ 3,421,000,000 | $ 2,280,000,000 | $ 2,153,000,000 | $ 2,022,000,000 | $ 3,030,000,000 | $ 2,203,000,000 | $ 2,062,000,000 | $ 2,145,000,000 | $ 9,876,000,000 | $ 9,440,000,000 | 9,191,000,000 | |||||||||||||||||||||
Operating income(2) | 872,000,000 | [3] | 350,000,000 | [3] | 321,000,000 | [3] | 300,000,000 | [3] | 881,000,000 | [4] | 312,000,000 | [4] | 289,000,000 | [4] | 372,000,000 | [4] | 1,843,000,000 | [3] | 1,854,000,000 | [4] | 1,375,000,000 | |||||||||||
Net earnings | $ 364,000,000 | $ 239,000,000 | $ 209,000,000 | $ 188,000,000 | $ 607,000,000 | $ 194,000,000 | $ 198,000,000 | $ 229,000,000 | $ 1,000,000,000 | $ 1,228,000,000 | $ 897,000,000 | |||||||||||||||||||||
Diluted earnings (loss) per share | ||||||||||||||||||||||||||||||||
Continuing operations | $ / shares | $ 1.23 | $ 0.78 | $ 0.67 | $ 0.60 | $ 1.91 | $ 0.60 | $ 0.56 | $ 0.69 | $ 3.26 | $ 3.74 | $ 2.30 | |||||||||||||||||||||
Discontinued operations | $ / shares | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.01 | 0.05 | 0.01 | 0.00 | 0.07 | 0.26 | |||||||||||||||||||||
Diluted (in dollars per share) | $ / shares | $ 1.23 | [5] | $ 0.78 | [5] | $ 0.67 | [5] | $ 0.60 | [5] | $ 1.91 | [5] | $ 0.61 | [5] | $ 0.61 | [5] | $ 0.70 | [5] | $ 3.26 | [5] | $ 3.81 | [5] | $ 2.56 | |||||||||||
Months until inclusion in comparable store sales | 14 months | |||||||||||||||||||||||||||||||
Days Until Excluded From Comparable Sales | 14 days | |||||||||||||||||||||||||||||||
Restructuring charges | $ 10,000,000 | $ (2,000,000) | $ 2,000,000 | $ 0 | $ 9,000,000 | $ 1,000,000 | $ 0 | $ 29,000,000 | $ 10,000,000 | $ 39,000,000 | $ 201,000,000 | |||||||||||||||||||||
One-time bonus | 80,000,000 | |||||||||||||||||||||||||||||||
One-time contribution | 20,000,000 | |||||||||||||||||||||||||||||||
Tax Reform | 283,000,000 | |||||||||||||||||||||||||||||||
Tax Cuts and Jobs Act, Incomplete Accounting, Transition Tax for Accumulated Foreign Earnings, Provisional Income Tax Expense (Benefit) | 209,000,000 | |||||||||||||||||||||||||||||||
Tax Cuts and Jobs Act, Incomplete Accounting, Change in Tax Rate, Deferred Tax Asset (Liability), Provisional Income Tax Expense (Benefit) | 74,000,000 | |||||||||||||||||||||||||||||||
Proceeds from Legal Settlements | 183,000,000 | 183,000,000 | ||||||||||||||||||||||||||||||
Proceeds from Legal Settlements, net of related legal fees and costs | $ 161,000,000 | 161,000,000 | ||||||||||||||||||||||||||||||
Continuing Operations [Member] | ||||||||||||||||||||||||||||||||
Diluted earnings (loss) per share | ||||||||||||||||||||||||||||||||
Restructuring charges | $ 10,000,000 | 39,000,000 | ||||||||||||||||||||||||||||||
Restructuring Program Canadian Brand Consolidation [Member] | ||||||||||||||||||||||||||||||||
Diluted earnings (loss) per share | ||||||||||||||||||||||||||||||||
Number of Stores to be Closed | store | 66 | |||||||||||||||||||||||||||||||
Number of Future Shop stores converted to Best Buy stores | store | 65 | |||||||||||||||||||||||||||||||
Adjustment for Tax Act [Member] | ||||||||||||||||||||||||||||||||
Diluted earnings (loss) per share | ||||||||||||||||||||||||||||||||
Tax Reform | 283,000,000 | $ 0 | $ 0 | |||||||||||||||||||||||||||||
Tax Cuts and Jobs Act, Incomplete Accounting, Transition Tax for Accumulated Foreign Earnings, Provisional Income Tax Expense (Benefit) | 209,000,000 | |||||||||||||||||||||||||||||||
Tax Cuts and Jobs Act, Incomplete Accounting, Change in Tax Rate, Deferred Tax Asset (Liability), Provisional Income Tax Expense (Benefit) | $ 74,000,000 | |||||||||||||||||||||||||||||||
|
Valuation and Qualifying Accounts Valuation of Qualifying Accounts (Details) - USD ($) $ in Millions |
12 Months Ended | ||||
---|---|---|---|---|---|
Feb. 03, 2018 |
Jan. 28, 2017 |
Jan. 30, 2016 |
|||
Activity in valuation and qualifying accounts | |||||
Balance at Beginning of Period | $ 52 | ||||
Balance at End of Period | 37 | $ 52 | |||
Allowance for Doubtful Accounts [Member] | |||||
Activity in valuation and qualifying accounts | |||||
Balance at Beginning of Period | 52 | 49 | $ 59 | ||
Charged to Expenses or Other Accounts | 29 | 44 | 30 | ||
Other | [1] | (44) | (41) | (40) | |
Balance at End of Period | $ 37 | $ 52 | $ 49 | ||
|