Consolidated Balance Sheets (Parenthetical) - $ / shares |
Feb. 03, 2024 |
Jan. 28, 2023 |
|---|---|---|
| Consolidated Balance Sheets [Abstract] | ||
| Preferred stock, par value (in dollars per share) | $ 1.00 | $ 1.00 |
| Preferred stock, authorized shares | 400,000 | 400,000 |
| Preferred stock, issued shares | 0 | 0 |
| Preferred stock, outstanding shares | 0 | 0 |
| Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
| Common stock, authorized shares | 1,000,000,000.0 | 1,000,000,000.0 |
| Common stock, issued shares | 215,400,000 | 218,100,000 |
| Common stock, outstanding shares | 215,400,000 | 218,100,000 |
Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Feb. 03, 2024 |
Jan. 28, 2023 |
Jan. 29, 2022 |
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| Consolidated Statements of Earnings [Abstract] | |||
| Revenue | $ 43,452.0 | $ 46,298.0 | $ 51,761.0 |
| Cost of sales | 33,849.0 | 36,386.0 | 40,121.0 |
| Gross profit | 9,603.0 | 9,912.0 | 11,640.0 |
| Selling, general and administrative expenses | 7,876.0 | 7,970.0 | 8,635.0 |
| Restructuring charges | 153.0 | 147.0 | (34.0) |
| Operating income | 1,574.0 | 1,795.0 | 3,039.0 |
| Other income (expense): | |||
| Gain on sale of subsidiary, net | 21.0 | ||
| Investment income and other | 78.0 | 28.0 | 10.0 |
| Interest expense | (52.0) | (35.0) | (25.0) |
| Earnings before income tax expense and equity in income of affiliates | 1,621.0 | 1,788.0 | 3,024.0 |
| Income tax expense | 381.0 | 370.0 | 574.0 |
| Equity in income of affiliates | 1.0 | 1.0 | 4.0 |
| Net earnings | $ 1,241.0 | $ 1,419.0 | $ 2,454.0 |
| Basic earnings per share | $ 5.70 | $ 6.31 | $ 9.94 |
| Diluted earnings per share | $ 5.68 | $ 6.29 | $ 9.84 |
| Weighted-average common shares outstanding: | |||
| Basic | 217.7 | 224.8 | 246.8 |
| Diluted | 218.5 | 225.7 | 249.3 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Feb. 03, 2024 |
Jan. 28, 2023 |
Jan. 29, 2022 |
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| Consolidated Statements of Comprehensive Income [Abstract] | |||
| Net earnings | $ 1,241.0 | $ 1,419.0 | $ 2,454.0 |
| Foreign currency translation adjustments, net of tax | (5.0) | (7.0) | 1.0 |
| Comprehensive income | $ 1,236.0 | $ 1,412.0 | $ 2,455.0 |
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Feb. 03, 2024 |
Jan. 28, 2023 |
Jan. 29, 2022 |
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| Consolidated Statements of Cash Flows [Abstract] | |||
| Payment for purchased tax credits | $ 103.0 | $ 2.0 | $ 4.0 |
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares |
12 Months Ended | ||
|---|---|---|---|
Feb. 03, 2024 |
Jan. 28, 2023 |
Jan. 29, 2022 |
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| Consolidated Statements of Changes in Shareholders' Equity [Abstract] | |||
| Common stock, dividends, per share, declared | $ 3.68 | $ 3.52 | $ 2.80 |
Summary of Significant Accounting Policies |
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| Summary of Significant Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Significant Accounting Policies | Notes to Consolidated Financial Statements
1. Summary of Significant Accounting Policies
Unless the context otherwise requires, the use of the terms “Best Buy,” “we,” “us” and “our” in these Notes to Consolidated Financial Statements refers to Best Buy Co., Inc. and, as applicable, its consolidated subsidiaries.
Description of Business
We are driven by our purpose to enrich lives through technology and our vision to personalize and humanize technology solutions for every stage of life. We accomplish this by leveraging our combination of technology and a human touch to meet our customers’ everyday needs, whether they come to us online, visit our stores or invite us into their homes. We have operations in the U.S. and Canada.
We have two reportable segments: Domestic and International. The Domestic segment is comprised of our operations in all states, districts and territories of the U.S. and our Best Buy Health business, and includes the brand names Best Buy, Best Buy Ads, Best Buy Business, Best Buy Health, CST, Current Health, Geek Squad, Lively, Magnolia, Pacific Kitchen and Home, TechLiquidators and Yardbird and the domain names bestbuy.com, currenthealth.com, lively.com, techliquidators.com and yardbird.com. Our International segment is comprised of all operations in Canada under the brand names Best Buy, Best Buy Mobile and Geek Squad and the domain name bestbuy.ca.
In fiscal 2022, we acquired all of the outstanding shares of Current Health Ltd. (“Current Health”) and Two Peaks, LLC d/b/a Yardbird Furniture (“Yardbird”). Refer to Note 2, Acquisitions, for additional information.
In fiscal 2024, we completed the sale of a Mexico subsidiary subsequent to our exit from operations in Mexico and recognized a $21 million gain within Gain on sale of subsidiary, net on our Consolidated Statements of Earnings. Refer to Note 3, Restructuring, for additional information regarding our exit from operations in Mexico.
Basis of Presentation
The consolidated financial statements include the accounts of Best Buy Co., Inc. and its consolidated subsidiaries. All intercompany balances and transactions are eliminated upon consolidation.
Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. ("GAAP") requires us to make estimates and assumptions. These estimates and assumptions affect the reported amounts in the consolidated financial statements, as well as the disclosure of contingent liabilities. Future results could be materially affected if actual results were to differ from these estimates and assumptions.
Fiscal Year
Our fiscal year ends on the Saturday nearest the end of January. Fiscal 2024, fiscal 2023 and fiscal 2022 ended February 3, 2024, January 28, 2023, and January 29, 2022, respectively. Unless otherwise noted, references to years in these notes to consolidated financial statements relate to fiscal years, and not calendar years. Fiscal 2024 included 53 weeks with the 53rd week occurring in the fiscal fourth quarter. Fiscal 2023 and fiscal 2022 each included 52 weeks.
Adopted Accounting Pronouncements
In the first quarter of fiscal 2024, we adopted the Accounting Standards Update (“ASU”) 2022-04, Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations. ASU 2022-04 requires entities to disclose the key terms of the supplier finance programs they use in connection with the purchase of goods and services, along with the amount of obligations outstanding at the end of each period. Beginning in fiscal 2025, an annual roll-forward of such obligations is also required. Below are the applicable disclosures as a result of ASU 2022-04.
Supply Chain Financing
We have a supply chain financing program with an independent financial institution, whereby some of our suppliers have the opportunity to receive accounts payable settlements early, at a discount, facilitated by the financial institution. Under this program, the financial institution agrees to terms with our suppliers, including amounts that are eligible for early payment, the timing of such payments and the discounts. The financial institution then pays the supplier based on the payment terms agreed to. Suppliers’ participation in this program is at their own option. The financial institution can vary discounts offered at their own discretion. Our rights and obligations to our suppliers – which are typically formalized in standardized agreements – are not affected by the existence of the program. Our liability associated with the funded participation in the program, which is included in on our Consolidated Balance Sheets, was $426 million and $386 million as of February 3, 2024, and January 28, 2023, respectively.
New Accounting Pronouncements and Disclosure Rules
In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which enhances reportable segment disclosure requirements primarily through expanded disclosures around significant segment expenses. The amendments are effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. The amendments should be applied retrospectively to all prior periods presented in the financial statements. We are currently evaluating the impact of the ASU and expect to include updated segment expense disclosures in our fiscal 2025 Form 10-K.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires disclosure of specific categories meeting a quantitative threshold within the income tax rate reconciliation, as well as disaggregation of income taxes paid by jurisdiction. This ASU, which can be applied either prospectively or retrospectively, is effective for annual periods beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the impact of the ASU and expect to include updated income tax disclosures in our fiscal 2026 Form 10-K.
In March 2024, the U.S. Securities and Exchange Commission issued its final climate disclosure rule, which requires the disclosure of Scope 1 and Scope 2 greenhouse gas emissions and other climate-related topics in annual reports and registration statements, when material. Disclosure requirements will begin phasing in for fiscal years beginning on or after January 1, 2025. We are currently evaluating the impact of the new rule and expect to include updated climate-related disclosures in our fiscal 2026 Form 10-K.
Segment Information
Our business is organized into two reportable segments: Domestic (which is comprised of all states, districts and territories of the U.S. and our Best Buy Health business) and International (which is comprised of all operations in Canada). Our chief operating decision maker (“CODM”) is our Chief Executive Officer. Our CODM has ultimate responsibility for enterprise decisions, including determining resource allocation for, and monitoring the performance of, the consolidated enterprise, the Domestic reportable segment and the International reportable segment.
Business Combinations
We account for business combinations under the acquisition method of accounting. This method requires the recording of acquired assets and assumed liabilities at their acquisition date fair values. The excess of the purchase price over the fair value of assets acquired and liabilities assumed is recorded as goodwill. Results of operations related to business combinations are included prospectively beginning with the date of acquisition and transaction costs related to business combinations are recorded within Selling, general and administrative expenses (“SG&A”) on our Consolidated Statements of Earnings.
Cash, Cash Equivalents and Restricted Cash
Cash, cash equivalents and restricted cash reported on our Consolidated Balance Sheets are reconciled to the total shown on our Consolidated Statements of Cash Flows as follows ($ in millions):
Cash equivalents consist of highly liquid investments with original maturities of three months or less.
Amounts included in restricted cash are primarily restricted to cover product protection plans provided under our membership offerings and other self-insurance liabilities.
Receivables
Receivables consist primarily of amounts due from banks for customer credit card and debit card transactions, vendors for various vendor funding programs, mobile phone network operators for device sales and commissions, and online marketplace partnerships. Receivables are stated at their carrying values, net of a reserve for expected credit losses, which is primarily based on historical collection trends. Our allowances for uncollectible receivables were $32 million and $30 million as of February 3, 2024, and January 28, 2023, respectively. We had $43 million and $41 million of write-offs in fiscal 2024 and fiscal 2023, respectively.
Merchandise Inventories
Merchandise inventories are recorded at the lower of cost or net realizable value. The weighted-average method is used to determine the cost of inventory which includes costs of in-bound freight to move inventory into our distribution centers. Also included as a reduction to the cost of inventory are certain vendor allowances. Costs associated with storing and transporting merchandise inventories to our retail stores are expensed as incurred and included within Cost of sales on our Consolidated Statements of Earnings.
Our inventory valuation also reflects markdown adjustments for the excess of the cost over the net recovery we expect to realize from the ultimate disposition of inventory, including consideration of any rights we may have to return inventory to vendors for a refund, and establishes a new cost basis. Subsequent changes in facts or circumstances do not result in the reversal of previously recorded markdown adjustments or an increase in the newly established cost basis.
Our inventory valuation reflects adjustments for physical inventory losses (resulting from, for example, theft). Physical inventory is maintained through a combination of full location counts and more regular cycle counts.
Property and Equipment
Property and equipment is recorded at cost. We depreciate property and equipment to its residual value using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are depreciated over the shorter of their estimated useful lives or the period from the date the assets are placed in service to the end of the lease term, which includes optional renewal periods if they are reasonably certain. Accelerated depreciation methods are generally used for income tax purposes.
When property is retired or otherwise disposed of, the cost and accumulated depreciation are removed from our Consolidated Balance Sheets and any resulting gain or loss is reflected on our Consolidated Statements of Earnings.
Repairs and maintenance costs are expensed as incurred. Major renewals or replacements that substantially extend the useful life of an asset are capitalized and depreciated.
Costs associated with the acquisition or development of software for internal use are capitalized and amortized over the expected useful life of the software, generally from two years to five years. A subsequent addition, modification or upgrade to internal-use software is capitalized to the extent that it enhances the software's functionality. Capitalized software is included in Fixtures and equipment on our Consolidated Balance Sheets. Software maintenance and training costs are expensed in the period incurred. The costs of developing software for sale to customers are expensed as incurred until technological feasibility is established, which generally leads to expensing substantially all costs.
Costs associated with implementing cloud computing arrangements that are service contracts are capitalized using methodology similar to internal-use software, but are included in Other assets on our Consolidated Balance Sheets.
Estimated useful lives by major asset category are as follows (in years):
Impairment of Long-Lived Assets
Long-lived assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. When evaluating long-lived assets with impairment indicators for potential impairment, we first compare the carrying value of the asset to its estimated undiscounted future cash flows. If the sum of the estimated undiscounted future cash flows is less than the carrying value of the asset, we calculate an impairment loss. The impairment loss calculation compares the carrying value of the asset to its estimated fair value, which is typically based on estimated discounted future cash flows. We recognize an impairment loss if the amount of the asset’s carrying value exceeds the asset’s estimated fair value.
We evaluate locations for triggering events on a quarterly basis. For store locations, our primary indicator that asset carrying values may not be recoverable is negative store operating income for the most recent 12-month period. We also monitor other factors when evaluating store locations for impairment, including significant changes in the manner of use or expected life of the assets or significant changes in our business strategies.
When reviewing long-lived assets for impairment, we group long-lived assets with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. For example, long-lived assets deployed at store locations are reviewed for impairment at either the individual store level or at the local market level. Such reviews involve comparing the net carrying value of all assets to the net cash flow projections for each store or market. In addition, we conduct separate impairment reviews at other levels as appropriate, for example, to evaluate the potential impairment of assets shared by several areas of operations, such as information technology systems.
Leases
The majority of our lease obligations are real estate operating leases used in our retail and distribution operations. Our finance leases are primarily equipment-related. For any lease with an initial term in excess of 12 months, the related lease assets and liabilities are recognized on our Consolidated Balance Sheets as either operating or finance leases at the inception of an agreement where it is determined that a lease exists. We have lease agreements that contain both lease and non-lease components. For lease agreements entered into or reassessed after the adoption of Accounting Standard’s Codification 842, Leases, in fiscal 2020, we have elected to combine lease and non-lease components for all classes of assets. Leases with an initial term of 12 months or less are not recorded on our Consolidated Balance Sheets; we recognize lease expense for these leases on a straight-line basis over the lease term.
Operating lease assets represent the right to use an underlying asset for the lease term and operating lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are recognized based on the present value of future payments over the lease term at the commencement date. We estimate the incremental borrowing rate for each lease based on an evaluation of our credit ratings and the prevailing market rates for collateralized debt in a similar economic environment with similar payment terms and maturity dates commensurate with the terms of the lease. Our operating leases also typically require payment of real estate taxes, common area maintenance and insurance. These components comprise the majority of our variable lease cost and are excluded from the present value of our lease obligations. In instances where they are fixed, they are included due to our election to combine lease and non-lease components. Operating lease assets also include prepaid lease payments and initial direct costs and are reduced by lease incentives. We generally do not include options to extend or terminate a lease unless it is reasonably certain that the option will be exercised. Fixed payments may contain predetermined fixed rent escalations. We recognize the related rent expense on a straight-line basis from the commencement date to the end of the lease term.
Goodwill and Intangible Assets
Goodwill
Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. We test goodwill for impairment annually in the fiscal fourth quarter or whenever events or circumstances indicate the carrying value may not be recoverable. We monitor the existence of potential impairment indicators throughout the fiscal year. We test for goodwill impairment at the reporting unit level. Reporting units are determined by identifying components of operating segments which constitute businesses for which discrete financial information is available and is regularly reviewed by segment management. We have goodwill in two reporting units – Best Buy Domestic and Best Buy Health – with carrying values of $492 million and $891 million, respectively, as of February 3, 2024, and January 28, 2023.
Our detailed impairment testing involves comparing the fair value of each reporting unit with its carrying value, including goodwill. Fair value reflects the price a potential market participant would be willing to pay for the reporting unit in an arms-length transaction and typically requires analysis of discounted cash flows and market data, such as revenue multiples and quoted market prices. If the fair value of a reporting unit exceeds its carrying value, we conclude that no goodwill impairment has occurred. If the carrying value of a reporting unit exceeds its fair value, we recognize an impairment loss in an amount equal to the excess, not to exceed the total amount of goodwill allocated to that reporting unit.
Intangible Assets
Our valuation of identifiable intangible assets acquired is based on information and assumptions available to us at the time of acquisition, using income and market approaches to determine fair value, as appropriate.
We amortize our definite-lived intangible assets over the estimated useful lives of the assets. We review these assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets might not be recoverable and monitor for the existence of potential impairment indicators throughout the fiscal year. We record an impairment loss for any portion of the carrying value that is not recoverable.
Derivatives
Net Investment Hedges
We use foreign currency forward contracts to hedge against the effect of Canadian dollar exchange rate fluctuations on a portion of our net investment in our Canadian operations. The contracts have terms of up to 12 months. For a net investment hedge, we recognize changes in the fair value of the derivative as a component of foreign currency translation within other comprehensive income to offset a portion of the change in translated value of the net investment being hedged, until the investment is sold or liquidated. We limit recognition in net earnings of amounts previously recorded in other comprehensive income to circumstances such as complete or substantially complete liquidation of the net investment in the hedged foreign operation. We report the gains and losses, if any, related to the amount excluded from the assessment of hedge effectiveness in net earnings.
Interest Rate Swaps
We utilize “receive fixed-rate, pay variable-rate” interest rate swaps to mitigate the effect of interest rate fluctuations on our $500 million principal amount of notes due October 1, 2028 (“2028 Notes”). Our interest rate swap contracts are considered perfect hedges because the critical terms and notional amounts match those of our fixed-rate debt being hedged and are, therefore, accounted for as fair value hedges using the shortcut method. Under the shortcut method, we recognize the change in the fair value of the derivatives with an offsetting change to the carrying value of the debt. Accordingly, there is no impact on our Consolidated Statements of Earnings from the fair value of the derivatives.
Derivatives Not Designated as Hedging Instruments
We use foreign currency forward contracts to manage the impact of fluctuations in foreign currency exchange rates relative to recognized receivable and payable balances denominated in non-functional currencies. The contracts generally have terms of up to 12 months. These derivative instruments are not designated in hedging relationships and, therefore, we record gains and losses on these contracts directly to our Consolidated Statements of Earnings.
Fair Value
Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. To measure fair value, we use a three-tier valuation hierarchy based upon observable and non-observable inputs:
Level 1 — Unadjusted quoted prices that are available in active markets for identical assets or liabilities at the measurement date.
Level 2 — Significant other observable inputs available at the measurement date, other than quoted prices included in Level 1, either directly or indirectly, including:
• Quoted prices for similar assets or liabilities in active markets; • Quoted prices for identical or similar assets or liabilities in non-active markets; • Inputs other than quoted prices that are observable for the asset or liability; and • Inputs that are derived principally from or corroborated by other observable market data.
Level 3 — Significant unobservable inputs that cannot be corroborated by observable market data and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions.
The fair value hierarchy requires the use of observable market data when available. In instances where the inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability.
Fair value remeasurements are based on significant unobservable inputs (Level 3). Fixed asset fair values are primarily derived using a discounted cash flow (“DCF”) model to estimate the present value of net cash flows that the asset or asset group was expected to generate. The key inputs to the DCF model generally include our forecasts of net cash generated from investment operations, as well as an appropriate discount rate.
Assets and liabilities that are measured at fair value on a nonrecurring basis relate primarily to our tangible fixed assets, goodwill and other intangible assets, which are remeasured when the derived fair value is below carrying value on our Consolidated Balance Sheets. For these assets, we do not periodically adjust carrying value to fair value, except in the event of impairment. When we determine that impairment has occurred, the carrying value of the asset is reduced to fair value and the difference is recorded within SG&A and Restructuring charges on our Consolidated Statements of Earnings for non-restructuring and restructuring charges, respectively.
Insurance
We are self-insured for certain losses related to workers’ compensation, medical, general liability and auto claims; however, we obtain third-party excess insurance coverage to limit our exposure to certain claims. Some of these self-insured losses are managed through a wholly-owned insurance captive. Liabilities associated with these losses include estimates of both claims filed and losses incurred but not yet reported. We utilize valuations provided by qualified, independent third-party actuaries as well as internal insurance and risk expertise. Our net self-insured liabilities included on 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 routinely examined by domestic and foreign tax authorities. At any one time, multiple tax years are subject to audit by the various taxing authorities. In evaluating the exposures associated with our various tax filing positions, we may record a liability for such exposures. A number of years may elapse before a particular matter, for which we have established a liability, is audited and fully resolved or clarified. We adjust our liability for unrecognized tax benefits and income tax provisions in the period in which an uncertain tax position is effectively settled, the statute of limitations expires for the relevant taxing authority to examine the tax position or when more information becomes available. We include our liability for unrecognized tax benefits, including accrued penalties and interest, in Long-term liabilities on our Consolidated Balance Sheets and in Income tax expense on our Consolidated Statements of Earnings. Accrued Liabilities
The major components of accrued liabilities are sales tax liabilities, advertising accruals, accrued income taxes, sales return reserves and insurance liabilities.
Long-Term Liabilities
The major components of long-term liabilities are deferred revenue from our private label and co-branded credit card arrangement and unrecognized tax benefits.
Foreign Currency
Foreign currency denominated assets and liabilities are translated into U.S. dollars using the exchange rates in effect at our Consolidated Balance Sheet dates. Results of operations and cash flows are translated using the average exchange rates throughout the periods. The effect of exchange rate fluctuations on the translation of assets and liabilities is included as a component of shareholders' equity in accumulated other comprehensive income. Gains and losses from foreign currency transactions, which are included in SG&A on our Consolidated Statements of Earnings, have not been significant in any period presented.
Revenue Recognition
We generate revenue from the sale of products and services, both as a principal and as an agent. Revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. Our revenue excludes sales and usage-based taxes collected and is reported net of sales refunds, which includes an estimate of future returns and contract cancellations based on historical refund rates, with a corresponding reduction to cost of sales. We defer the revenue associated with any unsatisfied performance obligation until the obligation is satisfied, typically when control of a product is transferred to the customer or a service is completed.
Product Revenue
Product revenue is recognized when the customer takes physical control, either in our stores or at their home. Any fees charged to customers for delivery are recognized when delivery has been completed. We use delivery information to determine when to recognize revenue for delivered products and any related delivery fee revenue.
In most cases, we are the principal to product contracts as we have control of the physical products prior to transfer to the customer. Accordingly, revenue is recognized on a gross basis.
For certain sales, primarily activation-based software licenses and third-party stored-value cards, we are the sales agent providing access to the content and recognize commission revenue net of amounts due to third parties who fulfill the performance obligation. For these transactions, commission revenue is typically recorded once customers have taken possession of licenses or cards and can access their benefits.
Warranty obligations associated with the sale of our exclusive brands products are assurance-type warranties that are a guarantee of the product’s intended functionality and, therefore, do not represent a distinct performance obligation within the context of the contract.
Services - When we are the principal
We recognize revenue for services, such as delivery, installation, set-up, software troubleshooting, product repair, and data services once the service is completed, as this is when the customer has the ability to direct the use of and obtain the benefits of the service or serviced product. Payment terms are typically at the point of sale, but may also occur upon completion of the service. Our service contracts are primarily with retail customers, merchandise vendors (for factory warranty repairs) and extended warranty underwriters.
For technical support membership contracts (for example, our Best Buy Total membership offering), we are responsible for providing support services to customers. These contracts have terms ranging from one month to one year and typically contain several performance obligations. Payment for the membership contracts is typically due at the start of the contract period. We have determined that our contracts do not include a significant financing component. For performance obligations provided over time, we recognize revenue primarily on a usage basis, an input method of measuring progress over the related contract term. This method is derived by analysis of historical utilization patterns as this depicts when customers use the services and, accordingly, when delivery of the performance obligation occurs. There is judgment in, for example, estimating the relative standalone selling price for bundled performance obligations; the appropriate recognition methodology for each performance obligation; and, for those based on usage, the expected pattern of consumption across a large portfolio of customers. When insufficient reliable and relevant history is available to estimate usage, we generally recognize revenue ratably over the life of the contract until such history has accumulated.
Services - When we are the agent
On behalf of third-party underwriters, we sell various hardware protection plans to customers that provide extended warranty coverage on their device purchases. Such plans have terms ranging from one month to five years. Payment is due at the point of sale. Third-party underwriters assume the risk associated with the coverage and are primarily responsible for fulfillment. We record the net commissions (the amount charged to the customer less the premiums remitted to the underwriter) as revenue once the corresponding product revenue is recognized. In addition, in some cases we are eligible to receive profit-sharing payments, a form of variable consideration, which are dependent upon the financial performance of the underwriter’s protection plan portfolio. We do not share in any losses of the portfolio. We record any profit share as revenue once the uncertainty associated with the portfolio period, which is calendar-year based, is no longer constrained using the expected value method. This typically occurs during our fiscal fourth quarter, with payment of the profit share occurring in the subsequent fiscal year. Net commissions and profit-sharing revenue earned from the sale of extended warranties represented 0.8%, 0.9% and 1.4% of revenue in fiscal 2024, fiscal 2023 and fiscal 2022, respectively.
We earn commissions from mobile network carriers to sell service contracts on their platforms. Revenue is recognized upon sale of the contract and activation of the customer on the provider’s platform. The time between when we activate the service with the customer and when we receive payment from the content provider is generally 30 to 60 days, which is after control has passed. Activation commissions are subject to repayment to the carrier primarily in the event of customer cancellation for specified time periods after the sale. Commission revenue from mobile network carriers is reported net of the expected cancellations, which we estimate based on historical cancellation rates.
Credit Card Revenue
We offer promotional financing and credit cards issued by third-party banks that manage and directly extend credit to our customers. Approximately 25% of Domestic revenue in fiscal 2024, fiscal 2023 and fiscal 2022 was transacted using one of our branded cards. We provide a license to our brand and marketing services, and we facilitate credit applications in our stores and online. The banks are the sole owners of the accounts receivable generated under the program and, accordingly, we do not hold any customer receivables related to these programs and act as an agent in the financing transactions with customers. We are eligible to receive a profit share from certain of our banking partners based on the annual performance of their corresponding portfolio, and we receive quarterly payments based on forecasts of full-year performance. This is a form of variable consideration. We record such profit share as revenue over time using the most likely amount method, which reflects the amount earned each quarter when it is determined that the likelihood of a significant revenue reversal is not probable, which is typically quarterly. Profit-share payments occur quarterly, shortly after the end of each program quarter. Profit-sharing revenue from our credit card arrangement approximated 1.4%, 1.4% and 0.9% of Domestic revenue in fiscal 2024, fiscal 2023 and fiscal 2022, respectively.
Best Buy Gift Cards
We sell Best Buy gift cards to our customers in our retail stores, online and through select third parties. Our gift cards do not expire. We recognize revenue from gift cards when the card is redeemed by the customer. We also recognize revenue for the portion of gift card values that is not expected to be redeemed (“breakage”). We estimate breakage based on historical patterns and other factors, such as laws and regulations applicable to each jurisdiction. We recognize breakage revenue using a method that is consistent with customer redemption patterns. Typically, over 90% of gift card redemptions (and therefore recognition of over 90% of gift card breakage revenue) occur within one year of issuance. There is judgment in assessing the level at which we group gift cards for analysis of breakage rates, redemption patterns and the ultimate value of gift cards which we do not expect to be redeemed. Gift card breakage income was $40 million, $59 million and $49 million in fiscal 2024, fiscal 2023 and fiscal 2022, respectively.
Sales Incentives
We frequently offer sales incentives that entitle our customers to receive a gift card at the time of purchase or an instant savings coupon that can be redeemed towards a future purchase. For sales incentives issued to customers that are only earned in conjunction with the purchase of products or services, the sales incentives represent an option that is a material right and, accordingly, is a performance obligation in the contract. The revenue allocated to these sales incentives is deferred as a contract liability and is based on the cards that are projected to be redeemed. We recognize revenue for this performance obligation when it is redeemed by the customer or when it is not expected to be redeemed. There is judgment in determining the level at which we group incentives based on similar redemption patterns, future redemption patterns and the ultimate number of incentives that we do not expect to be redeemed.
We also issue coupons that are not earned in conjunction with a purchase of a product or service, typically as part of targeted marketing activities. This is not a performance obligation, but is recognized as a reduction of the transaction price when redeemed by the customer.
Customer Loyalty Programs
We have customer loyalty programs which allow members to earn points when using our private label and co-branded credit cards. Points earned enable members to receive a certificate that may be redeemed on future purchases. Certificate expirations are typically two months from the date of issuance. Our loyalty programs represent customer options that provide a material right and, accordingly, are performance obligations for each applicable contract. The relative standalone selling price of points earned by our loyalty program members is deferred and included in Deferred revenue on our Consolidated Balance Sheets based on the percentage of points that are projected to be redeemed. We recognize revenue for this performance obligation over time when a certificate is redeemed by the customer. There is inherent judgment in estimating the value of our customer loyalty programs as they are susceptible to factors outside of our influence, particularly customer redemption activity. However, we have significant experience in estimating the amount and timing of redemptions of certificates, based primarily on historical data. Cost of Sales and Selling, General and Administrative Expenses
The following tables illustrate the primary costs classified in each major expense category.
Vendor Allowances
We receive funds from our merchandise vendors through a variety of programs and arrangements, primarily in the form of purchases-based or sales-based volumes and for product advertising and placement. We recognize allowances based on purchases and sales as a reduction of cost of sales when the associated inventory is sold. Allowances for advertising and placement are recognized as a reduction of cost of sales ratably over the corresponding performance period. Funds that are determined to be a reimbursement of specific, incremental and identifiable costs incurred to sell a vendor’s products are recorded as an offset to the related expense within SG&A on our Consolidated Statements of Earnings when incurred.
Advertising Costs
Advertising costs, which are included in SG&A on our Consolidated Statements of Earnings, are expensed the first time the advertisement runs and consist primarily of digital advertisements. Advertising expenses were $794 million, $864 million and $915 million in fiscal 2024, fiscal 2023 and fiscal 2022, respectively.
Stock-Based Compensation
We recognize stock-based compensation expense for the fair value of our stock-based compensation awards, which is determined based on the closing market price of our stock at the date of grant for time-based and performance-based share awards, and Monte-Carlo simulation for market-based share awards. Compensation expense is recognized on a straight-line basis over the period in which services are required, except for certain performance-based share awards that vest on a graded basis, in which case the expense is front-loaded using the graded-attribution basis. Forfeitures are expensed as incurred or upon termination.
Comprehensive Income (Loss)
Comprehensive income (loss) is computed as net earnings plus certain other items that are recorded directly to shareholders’ equity. |
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Acquisitions |
12 Months Ended |
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Feb. 03, 2024 | |
| Acquisitions [Abstract] | |
| Acquisitions | 2. Acquisitions
Current Health Ltd.
In fiscal 2022, we acquired all outstanding shares of Current Health, a care-at-home technology platform, on November 2, 2021, for net cash consideration of $389 million. The acquisition resulted in $351 million of goodwill that was assigned to our Best Buy Health reporting unit and was deductible for income tax purposes. The acquisition is aligned with our focus in virtual care to enable people in their homes to connect seamlessly with their health care providers and is included in our Domestic reportable segment and Services revenue category. The acquisition was not material to the results of our operations.
Two Peaks, LLC d/b/a Yardbird Furniture
In fiscal 2022, we acquired all outstanding shares of Yardbird, a direct-to-consumer outdoor furniture company, on November 4, 2021, for net cash consideration of $79 million. The acquisition resulted in $47 million of goodwill that was assigned to our Best Buy Domestic reporting unit and was deductible for income tax purposes. The acquisition expands our assortment in categories like outdoor living and was not material to the results of our operations. |
Restructuring |
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| Restructuring [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring | 3. Restructuring
Restructuring charges were as follows ($ in millions):
(1)Includes ($6) million related to inventory markdowns recorded in Cost of sales on our Consolidated Statements of Earnings in fiscal 2022.
Fiscal 2024 Restructuring Initiative
During the fourth quarter of fiscal 2024, we commenced an enterprise-wide restructuring initiative intended to accomplish the following: (1) align field labor resources with where customers want to shop to optimize the customer experience; (2) redirect corporate resources for better alignment with our strategy; and (3) right-size resources to better align with our revenue outlook for fiscal 2025.
All charges incurred related to this plan were comprised of employee termination benefits from continuing operations, including $163 million and $8 million within our Domestic and International segments, respectively, and were presented within Restructuring charges on our Consolidated Statements of Earnings. We currently expect to incur additional charges in fiscal 2025, primarily within our Domestic segment, of approximately $10 million to $30 million related to this plan.
There were no cash payments related to this plan during fiscal 2024 and our termination benefits liability as of February 3, 2024, was $171 million, comprised of $163 million in our Domestic segment and $8 million in our International segment. We expect to pay up to $135 million of employee termination benefits during fiscal 2025, with the remainder being paid in fiscal 2026.
Fiscal 2023 Resource Optimization Initiative
During the second quarter of fiscal 2023, we commenced an enterprise-wide initiative to better align our spending with critical strategies and operations, as well as to optimize our cost structure. We do not expect to incur material future restructuring charges related to this plan.
All charges incurred related to this plan were comprised of employee termination benefits from continuing operations and were presented within Restructuring charges on our Consolidated Statements of Earnings as follows ($ in millions):
Restructuring accrual activity related to this plan was as follows ($ in millions):
(1)Represents adjustments primarily related to higher-than-expected employee retention from previously planned organizational changes.
Mexico Exit and Strategic Realignment
In the third quarter of fiscal 2021, we made the decision to exit our operations in Mexico and began taking other actions to more broadly align our organizational structure in support of our strategy. Charges incurred in our International segment primarily related to our decision to exit our operations in Mexico. All of our former stores in Mexico were closed as of the end of the first quarter of fiscal 2022. Charges incurred in our Domestic segment primarily related to actions taken to align our organizational structure in support of our strategy. We do not expect to incur material future restructuring charges related to this initiative and no material liability remains as of February 3, 2024.
All charges incurred related to this plan were from continuing operations and presented as follows ($ in millions):
(1)Remaining net carrying value of asset impairments approximates fair value and was immaterial as of February 3, 2024. (2)Other charges are primarily comprised of contract termination costs. No material restructuring accrual activity occurred in fiscal 2024 or fiscal 2023 related to this plan. |
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Goodwill and Intangible Assets |
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| Goodwill and Intangible Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill and Intangible Assets | 4. Goodwill and Intangible Assets
Goodwill
Goodwill balances by reportable segment were as follows ($ in millions):
No impairment charges were recorded for the periods presented.
Definite-Lived Intangible Assets
We have definite-lived intangible assets which are recorded within Other assets on our Consolidated Balance Sheets as follows ($ in millions):
Amortization expense was as follows ($ in millions):
Amortization expense expected to be recognized in future periods is as follows ($ in millions):
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Fair Value Measurements |
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| Fair Value Measurements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Measurements | 5. Fair Value Measurements
Fair value measurements are reported in one of three levels based on the lowest level of significant input used: Level 1 (unadjusted quoted prices in active markets); Level 2 (observable market inputs, other than quoted prices included in Level 1); and Level 3 (unobservable inputs that cannot be corroborated by observable market data).
Recurring Fair Value Measurements
Financial assets accounted for at fair value were as follows ($ in millions):
(1)Balance sheet location is determined by the length to maturity at date of purchase and whether the assets are restricted for particular use. (2)Valued at quoted market prices in active markets at period end. (3)Valued at face value plus accrued interest at period end, which approximates fair value. (4)Valued using the performance of mutual funds that trade with sufficient frequency and volume to obtain pricing information on an ongoing basis.
Nonrecurring Fair Value Measurements
In fiscal 2022, we recorded asset impairments related to our exit from operations in Mexico. See Note 3, Restructuring, for additional information regarding the charges incurred and the net carrying value of assets remaining.
Fair Value of Financial Instruments
The fair values of cash, certain restricted cash, receivables, accounts payable and other payables approximated their carrying values because of the short-term nature of these instruments. If these instruments were measured at fair value in the financial statements, they would be classified as Level 1 in the fair value hierarchy. Fair values for other investments held at cost are not readily available, but we estimate that the carrying values for these investments approximate their fair values.
Long-term debt is presented at carrying value on our Consolidated Balance Sheets. If our long-term debt were recorded at fair value, it would be classified as Level 2 in the fair value hierarchy. Long-term debt balances were as follows ($ in millions):
(1)Excludes debt discounts, issuance costs and finance lease obligations. |
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Derivative Instruments |
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| Derivative Instruments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Instruments |
6. Derivative Instruments
We manage our economic and transaction exposure to certain risks by using foreign currency forward contracts to hedge against the effect of Canadian dollar exchange rate fluctuations on a portion of our net investment in our Canadian operations and by using interest rate swaps to mitigate the effect of interest rate fluctuations on our 2028 Notes. In addition, we use foreign currency forward contracts not designated as hedging instruments to manage the impact of fluctuations in foreign currency exchange rates relative to recognized receivable and payable balances denominated in non-functional currencies.
Our derivative instruments designated as net investment hedges and interest rate swaps are recorded on our Consolidated Balance Sheets at fair value. See Note 5, Fair Value Measurements, for gross fair values of our outstanding derivative instruments and corresponding fair value classifications.
Notional amounts of our derivative instruments were as follows ($ in millions):
Effects of our derivative instruments on our Consolidated Statements of Earnings were as follows ($ in millions):
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Leases |
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| Leases | 7. Leases
Supplemental balance sheet information related to our leases was as follows ($ in millions):
(1) (1)Finance leases were recorded net of accumulated depreciation of $54 million and $50 million as of February 3, 2024, and January 28, 2023, respectively. Components of our total lease cost were as follows ($ in millions):
(1) (1)Includes short-term leases, which are immaterial. (2)Supply chain-related amounts are included in Cost of sales.
Other information related to our leases was as follows ($ in millions):
Future lease payments under our non-cancellable leases as of February 3, 2024, were as follows ($ in millions):
(1)Lease payments exclude $118 million of legally binding fixed costs for leases signed but not yet commenced. |
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Debt |
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| Debt | 8. Debt
Short-Term Debt
U.S. Revolving Credit Facility
On April 12, 2023, we entered into a $1.25 billion 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 entered into in May 2021 and scheduled to expire in May 2026, but was terminated on April 12, 2023. The Five-Year Facility Agreement permits borrowings of up to $1.25 billion and expires in April 2028. There were no borrowings outstanding under the Five-Year Facility Agreement as of February 3, 2024, or the Previous Facility as of January 28, 2023.
The interest rate under the Five-Year Facility Agreement is variable and, absent certain events of default, 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 effective rate and the overnight bank funding rate plus, in each case, 0.5%, and (3) Adjusted Term Secured Overnight Financing Rate (the “Adjusted Term SOFR” as defined in the Five-Year Facility Agreement) for an interest period of one month plus 1%, and (b) a variable margin rate (the “ABR Margin”); or (ii) Adjusted Term SOFR for the applicable interest period plus a variable margin rate (the “Term SOFR Margin”). In addition, a facility fee is assessed on the commitment amount. The ABR Margin, Term SOFR 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 0.100%, the Term SOFR Margin ranges from 0.680% to 1.100%, and the facility fee ranges from 0.070% to 0.150%.
The Five-Year Facility Agreement is guaranteed by certain of our subsidiaries and contains customary affirmative and negative covenants. Among other things, these covenants restrict our and certain of our subsidiaries’ abilities to incur liens on certain assets, make material changes in corporate structure or materially alter the nature of our business, dispose of material assets, engage in mergers, consolidations and certain other fundamental changes, or engage in certain transactions with affiliates.
The Five-Year Facility Agreement also contains a covenant that requires the registrant to maintain a maximum quarterly cash flow leverage ratio. The Five-Year Facility Agreement contains customary 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):
2028 Notes
In September 2018, we issued $500 million principal amount of notes due October 1, 2028 (the “2028 Notes”). The 2028 Notes bear interest at a fixed rate of 4.45% per year, payable semi-annually on April 1 and October 1 of each year, beginning on April 1, 2019. Net proceeds from the issuance were $495 million after underwriting and issuance discounts totaling $5 million.
We may redeem some or all of the 2028 Notes at any time at a redemption price equal to the greater of (i) 100% of the principal amount, and (ii) the sum of the present values of each remaining scheduled payment of principal and interest discounted to the redemption date on a semiannual basis, plus accrued and unpaid interest on the principal amount to the redemption date as described in the indenture (including the supplemental indenture) relating to the 2028 Notes. Furthermore, if a change of control triggering event occurs, we will be required to offer to purchase the remaining unredeemed 2028 Notes at a price equal to 101% of their principal amount, plus accrued and unpaid interest to the purchase date.
The 2028 Notes are unsecured and unsubordinated obligations and rank equally with all of our other unsecured and unsubordinated debt. The 2028 Notes contain covenants that, among other things, limit our ability to incur debt secured by liens or to enter into sale and lease-back transactions.
2030 Notes
In October 2020, we issued $650 million principal amount of notes due October 1, 2030, (the “2030 Notes”) that bear interest at a fixed rate of 1.95% per year, payable semi-annually on April 1 and October 1 of each year, beginning on April 1, 2021. Net proceeds from the issuance were $642 million after underwriting and issuance discounts totaling $8 million.
We may redeem some or all of the 2030 Notes at any time at a redemption price equal to the greater of (i) 100% of the principal amount, and (ii) the sum of the present values of each remaining scheduled payment of principal and interest discounted to the redemption date on a semiannual basis, plus accrued and unpaid interest on the principal amount to the redemption date as described in the indenture (including the supplemental indenture) relating to the 2030 Notes. Furthermore, if a change of control triggering event occurs, we will be required to offer to purchase the remaining unredeemed 2030 Notes at a price equal to 101% of their principal amount, plus accrued and unpaid interest to the purchase date.
The 2030 Notes are unsecured and unsubordinated obligations and rank equally with all of our other unsecured and unsubordinated debt. The 2030 Notes contain covenants that, among other things, limit our ability to incur debt secured by liens or to enter into sale and lease-back transactions.
Fair Value and Future Maturities
See Note 5, Fair Value Measurements, for the fair value of long-term debt.
Other than our 2028 Notes, we do not have any future maturities of long-term debt within the next five fiscal years. |
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Shareholders' Equity |
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| Shareholders' Equity | 9. Shareholders’ Equity
Stock Compensation Plans
The Best Buy Co., Inc. 2020 Omnibus Incentive Plan (the “2020 Plan”) approved by shareholders in June 2020 authorizes us to issue up to 18.6 million shares plus the remaining unused shares available for issuance under the Best Buy Co., Inc. Amended and Restated 2014 Omnibus Incentive Plan (the “2014 Plan”). In addition, shares subject to any outstanding awards under our prior stock incentive plans that are forfeited, cancelled or reacquired by the Company are available for reissuance under the 2020 Plan. The 2014 Plan was terminated as to the grant of any additional awards, but prior awards remain outstanding and continue to vest in accordance with the original terms of such plan.
The 2020 Plan authorizes us to grant or issue non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units and other equity awards. We have not granted incentive stock options. Under the terms of the 2020 Plan, awards may be granted to our employees, officers, advisers, consultants and directors. Awards issued under the 2020 Plan vest as determined by the Compensation and Human Resources Committee of our Board of Directors (“Board”) at the time of grant. Dividend equivalents accrue on restricted stock and restricted stock units during the vesting period, are forfeitable prior to the vesting date and are settled in shares of our common stock at the vesting or distribution date. As of February 3, 2024, a total of 13.0 million shares were available for future grants under the 2020 Plan.
Stock-based compensation expense was as follows ($ in millions):
Time-Based Share Awards
Time-based share awards vest solely upon continued employment, generally 33% on each of the three annual anniversary dates following the grant date. Time-based share awards to directors vest one year from the date of grant. Information on our time-based share awards was as follows (shares in thousands):
The total fair value vested and distributed during fiscal 2024, fiscal 2023 and fiscal 2022 was $114 million, $159 million and $194 million, respectively. The actual tax benefits realized for the tax deductions related to vesting in fiscal 2024, fiscal 2023 and fiscal 2022 were $24 million, $33 million and $41 million, respectively. As of February 3, 2024, there was $140 million of unrecognized compensation expense related to non-vested time-based share awards that we expect to recognize over a weighted-average period of 1.8 years.
Market-Based Share Awards
Market-based share awards vest at the end of a three-year incentive period based upon our total shareholder return ("TSR") compared to the TSR of companies that comprise Standard & Poor's 500 Index. The number of shares of common stock that could be distributed at the end of the three-year TSR-incentive period may range from 0% to 150% of each share granted (“target”). Shares are granted at 100% of target. Information on our market-based share awards was as follows (shares in thousands):
Distributions of market-based share awards in fiscal 2024 were not significant. The total fair value distributed during fiscal 2023 and fiscal 2022 was $18 million and $27 million, respectively. The actual tax benefits realized for the tax deductions related to distributions were $2 million and $3 million in fiscal 2023 and fiscal 2022, respectively. As of February 3, 2024, there was $21 million of unrecognized compensation expense related to non-vested market-based share awards that we expect to recognize over a weighted-average period of 1.7 years.
Performance-Based Share Awards
Performance-based share awards generally vest upon the achievement of company performance goals based upon certain revenue or profitability measures. For revenue-based performance awards, the number of shares of common stock that could be distributed at the end of the incentive period may range from 0% to 150% of each share granted (“target”). Shares are granted at 100% of target. Awards based on profitability measures vest 33% on each of the three annual anniversary dates following the grant date if the measure of profitability goal has been met. Information on our performance-based share awards was as follows (shares in thousands):
The total fair value distributed during fiscal 2024, fiscal 2023 and fiscal 2022 was $15 million, $37 million and $43 million, respectively. The actual tax benefits realized for the tax deductions related to distributions in fiscal 2024, fiscal 2023 and fiscal 2022 were $1 million, $3 million and $3 million, respectively. As of February 3, 2024, there was less than $1 million of unrecognized compensation expense related to non-vested performance-based share awards that we expect to recognize over a weighted-average period of 0.2 years.
Stock Options
Our outstanding stock options have a 10-year term and generally vest 33% on each of the three annual anniversary dates following the grant date. All outstanding stock options were vested and exercisable as of February 3, 2024. Information on our stock options was as follows:
No stock options were granted in the fiscal years presented. 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 2024, fiscal 2023 and fiscal 2022 was $2 million, $6 million and $19 million, respectively. As of February 3, 2024, there was no unrecognized compensation expense related to stock options that we expect to recognize.
Net cash proceeds from the exercise of stock options were $9 million, $4 million and $18 million in fiscal 2024, fiscal 2023 and fiscal 2022, respectively. Income tax benefits realized from stock option exercises were immaterial for all periods presented.
Earnings per Share
We compute our basic earnings per share based on the weighted-average number of common shares outstanding, and our diluted earnings per share based on the weighted-average number of common shares outstanding adjusted by the number of additional shares that would have been outstanding had the potentially dilutive common shares been issued. Potentially dilutive securities include stock options and non-vested share awards. Non-vested market-based share awards and non-vested performance-based share awards are included in the average diluted shares outstanding each period if established market or performance criteria have been met at the end of the respective periods.
As of February 3, 2024, all outstanding options to purchase common stock were exercisable and in-the-money, with a weighted-average price per share of $59.71.
Reconciliations of the numerators and denominators of basic and diluted earnings per share were as follows ($ and shares in millions, except per share amounts):
Repurchase of Common Stock
On February 28, 2022, our Board approved a $5.0 billion share repurchase program, which replaced the $5.0 billion share repurchase program authorized on February 16, 2021. The program had $3,784 million remaining available for repurchases as of February 3, 2024. There is no expiration date governing the period over which we can repurchase shares under this authorization.
Information regarding the shares we repurchased and retired was as follows ($ and shares in millions, except per share amounts):
We currently expect to spend approximately $350 million on share repurchases in fiscal 2025. |
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Revenue |
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| Revenue | 10. Revenue
We generate substantially all of our revenue from contracts with customers from the sale of products and services. Contract balances primarily consist of receivables and liabilities related to unfulfilled membership benefits and services not yet completed, product merchandise not yet delivered to customers, deferred revenue from our private label and co-branded credit card arrangement and unredeemed gift cards. Contract balances were as follows ($ in millions):
(1)Receivables are recorded net of allowances for doubtful accounts of $23 million and $22 million as of February 3, 2024, and January 28, 2023, respectively.
During fiscal 2024 and fiscal 2023, $1,283 million and $1,346 million of revenue was recognized, respectively, that was included in the contract liabilities at the beginning of the respective periods.
Estimated revenue from our contract liability balances expected to be recognized in future periods if the performance of the contract is expected to have an initial duration of more than one year is as follows ($ in millions):
See Note 14, Segment and Geographic Information, for information on our revenue by reportable segment and product category. |
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Income Taxes |
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| Income Taxes | 11. Income Taxes
Reconciliations of the federal statutory income tax rate to income tax expense were as follows ($ in millions):
Earnings before income tax expense and equity in income of affiliates by jurisdiction were as follows ($ in millions):
Income tax expense (benefit) was comprised of the following ($ 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):
Deferred taxes were presented as follows ($ in millions):
As of February 3, 2024, we had deferred tax assets for net operating loss carryforwards from international operations of $118 million, of which $32 million will expire in various years through 2040 and the remaining amounts have no expiration; acquired U.S. federal net operating loss carryforwards of $5 million, of which $2 million will expire in various years between 2025 and 2029 and the remaining amounts have no expiration; U.S. federal foreign tax credit carryforwards of $29 million, which will expire between 2025 and 2034; state credit carryforwards of $2 million, which will expire between 2025 and 2033; state net operating loss carryforwards of $10 million, which will expire between 2025 and 2044; international credit carryforwards of $1 million, which have no expiration; and international capital loss carryforwards of $8 million, which have no expiration.
As of February 3, 2024, a valuation allowance of $175 million had been established, of which $29 million is against U.S. federal foreign tax credit carryforwards, $14 million is against international, federal and state capital loss carryforwards, $124 million is against international and state net operating loss carryforwards, $1 million is against international and state credit carryforwards, and $7 million is against other foreign deferred tax assets. The increase in fiscal 2024 was primarily due to current year loss activity from international net operating loss carryforwards, and the set-up of additional valuation allowances against U.S. federal foreign tax credit and capital loss carryforwards and certain foreign deferred tax assets. These increases were partially offset by disposals and releases relating to certain international net operating loss carryforwards.
Reconciliations of changes in unrecognized tax benefits were as follows ($ in millions):
(1) (1)
(1)Represents multi-jurisdiction, multi-year resolutions of certain discrete tax matters.
Unrecognized tax benefits of $121 million, $141 million and $214 million as of February 3, 2024, January 28, 2023, and January 29, 2022, 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 expense of $3 million, interest income of $6 million and interest income of $20 million was recognized in fiscal 2024, fiscal 2023 and fiscal 2022, respectively. As of February 3, 2024, January 28, 2023, and January 29, 2022, we had accrued interest of $43 million, $42 million and $46 million, respectively.
We file a consolidated U.S. federal income tax return, as well as income tax returns in various states and foreign jurisdictions. With few exceptions, we are no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by taxing authorities for years before fiscal 2014.
Changes in state, federal and foreign tax laws may increase or decrease our tax contingencies. The timing of the resolution of income tax examinations and controversies is highly uncertain, and the amounts ultimately paid, if any, upon resolution of the issues raised by the taxing authorities may differ from the amounts accrued. It is reasonably possible that within the next twelve months we will receive additional assessments by various taxing authorities or reach resolutions of income tax examinations or controversies in one or more jurisdictions. These assessments, resolutions or law changes could result in changes to our gross unrecognized tax benefits. The actual amount of any changes could vary significantly depending on the ultimate timing and nature of any assessments, resolutions or law changes. An estimate of the amount or range of such changes cannot be made at this time. |
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Benefit Plans |
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Feb. 03, 2024 | |
| Benefit Plans [Abstract] | |
| Benefit Plans | 12. Benefit Plans
We sponsor retirement savings plans for employees meeting certain eligibility requirements. Participants may choose from various investment options, including a fund comprised of our company stock. Participants can contribute up to 50% of their eligible compensation annually as defined by the plan document, subject to Internal Revenue Service limitations. We match 100% of the first 3% of participating employees’ contributions and 50% of the next 2%. Employer contributions vest immediately. Total employer contributions were $76 million, $77 million and $77 million in fiscal 2024, fiscal 2023 and fiscal 2022, respectively.
We offer a non-qualified, unfunded deferred compensation plan for highly-compensated employees and members of our Board. Amounts contributed and deferred under the plan are invested in options offered under the plan and elected by the participants. The liability for compensation deferred under the plan was $24 million and $20 million as of February 3, 2024, and January 28, 2023, respectively, and is included in Long-term liabilities on our Consolidated Balance Sheets. See Note 5, Fair Value Measurements, for the fair value of assets held for deferred compensation. |
Contingencies and Commitments |
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Feb. 03, 2024 | |
| Contingencies and Commitments [Abstract] | |
| Contingencies and Commitments | 13. Contingencies and Commitments
We are involved in a number of legal proceedings. Where appropriate, we have made accruals with respect to these matters, which are reflected on our Consolidated Financial Statements. However, there are cases where liability is not probable or the amount cannot be reasonably estimated and, therefore, accruals have not been made. We provide disclosure of matters where we believe it is reasonably possible the impact may be material to our Consolidated Financial Statements.
We had outstanding letters of credit totaling $71 million as of February 3, 2024. |
Segment and Geographic Information |
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| Segment and Geographic Information | 14. Segment and Geographic Information
Reportable segment and product category revenue information was as follows ($ in millions):
Operating income by reportable segment and the reconciliation to consolidated earnings before income tax expense and equity in income of affiliates, as well as asset information by reportable segment, were as follows ($ in millions):
(1)Domestic operating income includes certain operations that are based in foreign tax jurisdictions and primarily relate to sourcing products into the U.S.
Geographic information was as follows ($ in millions):
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Summary of Significant Accounting Policies (Policies) |
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| Summary of Significant Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Description of Business | Description of Business
We are driven by our purpose to enrich lives through technology and our vision to personalize and humanize technology solutions for every stage of life. We accomplish this by leveraging our combination of technology and a human touch to meet our customers’ everyday needs, whether they come to us online, visit our stores or invite us into their homes. We have operations in the U.S. and Canada.
We have two reportable segments: Domestic and International. The Domestic segment is comprised of our operations in all states, districts and territories of the U.S. and our Best Buy Health business, and includes the brand names Best Buy, Best Buy Ads, Best Buy Business, Best Buy Health, CST, Current Health, Geek Squad, Lively, Magnolia, Pacific Kitchen and Home, TechLiquidators and Yardbird and the domain names bestbuy.com, currenthealth.com, lively.com, techliquidators.com and yardbird.com. Our International segment is comprised of all operations in Canada under the brand names Best Buy, Best Buy Mobile and Geek Squad and the domain name bestbuy.ca.
In fiscal 2022, we acquired all of the outstanding shares of Current Health Ltd. (“Current Health”) and Two Peaks, LLC d/b/a Yardbird Furniture (“Yardbird”). Refer to Note 2, Acquisitions, for additional information.
In fiscal 2024, we completed the sale of a Mexico subsidiary subsequent to our exit from operations in Mexico and recognized a $21 million gain within Gain on sale of subsidiary, net on our Consolidated Statements of Earnings. Refer to Note 3, Restructuring, for additional information regarding our exit from operations in Mexico. |
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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. |
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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 Year | Fiscal Year
Our fiscal year ends on the Saturday nearest the end of January. Fiscal 2024, fiscal 2023 and fiscal 2022 ended February 3, 2024, January 28, 2023, and January 29, 2022, respectively. Unless otherwise noted, references to years in these notes to consolidated financial statements relate to fiscal years, and not calendar years. Fiscal 2024 included 53 weeks with the 53rd week occurring in the fiscal fourth quarter. Fiscal 2023 and fiscal 2022 each included 52 weeks. |
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| Adopted Accounting Pronouncements and New Accounting Pronouncements and Disclosure Rules | Adopted Accounting Pronouncements
In the first quarter of fiscal 2024, we adopted the Accounting Standards Update (“ASU”) 2022-04, Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations. ASU 2022-04 requires entities to disclose the key terms of the supplier finance programs they use in connection with the purchase of goods and services, along with the amount of obligations outstanding at the end of each period. Beginning in fiscal 2025, an annual roll-forward of such obligations is also required. Below are the applicable disclosures as a result of ASU 2022-04.
Supply Chain Financing
We have a supply chain financing program with an independent financial institution, whereby some of our suppliers have the opportunity to receive accounts payable settlements early, at a discount, facilitated by the financial institution. Under this program, the financial institution agrees to terms with our suppliers, including amounts that are eligible for early payment, the timing of such payments and the discounts. The financial institution then pays the supplier based on the payment terms agreed to. Suppliers’ participation in this program is at their own option. The financial institution can vary discounts offered at their own discretion. Our rights and obligations to our suppliers – which are typically formalized in standardized agreements – are not affected by the existence of the program. Our liability associated with the funded participation in the program, which is included in on our Consolidated Balance Sheets, was $426 million and $386 million as of February 3, 2024, and January 28, 2023, respectively.
New Accounting Pronouncements and Disclosure Rules
In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which enhances reportable segment disclosure requirements primarily through expanded disclosures around significant segment expenses. The amendments are effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. The amendments should be applied retrospectively to all prior periods presented in the financial statements. We are currently evaluating the impact of the ASU and expect to include updated segment expense disclosures in our fiscal 2025 Form 10-K.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires disclosure of specific categories meeting a quantitative threshold within the income tax rate reconciliation, as well as disaggregation of income taxes paid by jurisdiction. This ASU, which can be applied either prospectively or retrospectively, is effective for annual periods beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the impact of the ASU and expect to include updated income tax disclosures in our fiscal 2026 Form 10-K.
In March 2024, the U.S. Securities and Exchange Commission issued its final climate disclosure rule, which requires the disclosure of Scope 1 and Scope 2 greenhouse gas emissions and other climate-related topics in annual reports and registration statements, when material. Disclosure requirements will begin phasing in for fiscal years beginning on or after January 1, 2025. We are currently evaluating the impact of the new rule and expect to include updated climate-related disclosures in our fiscal 2026 Form 10-K. |
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| Segment Information | Segment Information
Our business is organized into two reportable segments: Domestic (which is comprised of all states, districts and territories of the U.S. and our Best Buy Health business) and International (which is comprised of all operations in Canada). Our chief operating decision maker (“CODM”) is our Chief Executive Officer. Our CODM has ultimate responsibility for enterprise decisions, including determining resource allocation for, and monitoring the performance of, the consolidated enterprise, the Domestic reportable segment and the International reportable segment. |
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| Business Combinations | Business Combinations
We account for business combinations under the acquisition method of accounting. This method requires the recording of acquired assets and assumed liabilities at their acquisition date fair values. The excess of the purchase price over the fair value of assets acquired and liabilities assumed is recorded as goodwill. Results of operations related to business combinations are included prospectively beginning with the date of acquisition and transaction costs related to business combinations are recorded within Selling, general and administrative expenses (“SG&A”) on our Consolidated Statements of Earnings. |
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| Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash
Cash, cash equivalents and restricted cash reported on our Consolidated Balance Sheets are reconciled to the total shown on our Consolidated Statements of Cash Flows as follows ($ in millions):
Cash equivalents consist of highly liquid investments with original maturities of three months or less.
Amounts included in restricted cash are primarily restricted to cover product protection plans provided under our membership offerings and other self-insurance liabilities. |
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| Receivables | Receivables
Receivables consist primarily of amounts due from banks for customer credit card and debit card transactions, vendors for various vendor funding programs, mobile phone network operators for device sales and commissions, and online marketplace partnerships. Receivables are stated at their carrying values, net of a reserve for expected credit losses, which is primarily based on historical collection trends. Our allowances for uncollectible receivables were $32 million and $30 million as of February 3, 2024, and January 28, 2023, respectively. We had $43 million and $41 million of write-offs in fiscal 2024 and fiscal 2023, respectively. |
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| Merchandise Inventories | Merchandise Inventories
Merchandise inventories are recorded at the lower of cost or net realizable value. The weighted-average method is used to determine the cost of inventory which includes costs of in-bound freight to move inventory into our distribution centers. Also included as a reduction to the cost of inventory are certain vendor allowances. Costs associated with storing and transporting merchandise inventories to our retail stores are expensed as incurred and included within Cost of sales on our Consolidated Statements of Earnings.
Our inventory valuation also reflects markdown adjustments for the excess of the cost over the net recovery we expect to realize from the ultimate disposition of inventory, including consideration of any rights we may have to return inventory to vendors for a refund, and establishes a new cost basis. Subsequent changes in facts or circumstances do not result in the reversal of previously recorded markdown adjustments or an increase in the newly established cost basis.
Our inventory valuation reflects adjustments for physical inventory losses (resulting from, for example, theft). Physical inventory is maintained through a combination of full location counts and more regular cycle counts. |
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| Property and Equipment | Property and Equipment
Property and equipment is recorded at cost. We depreciate property and equipment to its residual value using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are depreciated over the shorter of their estimated useful lives or the period from the date the assets are placed in service to the end of the lease term, which includes optional renewal periods if they are reasonably certain. Accelerated depreciation methods are generally used for income tax purposes.
When property is retired or otherwise disposed of, the cost and accumulated depreciation are removed from our Consolidated Balance Sheets and any resulting gain or loss is reflected on our Consolidated Statements of Earnings.
Repairs and maintenance costs are expensed as incurred. Major renewals or replacements that substantially extend the useful life of an asset are capitalized and depreciated.
Costs associated with the acquisition or development of software for internal use are capitalized and amortized over the expected useful life of the software, generally from two years to five years. A subsequent addition, modification or upgrade to internal-use software is capitalized to the extent that it enhances the software's functionality. Capitalized software is included in Fixtures and equipment on our Consolidated Balance Sheets. Software maintenance and training costs are expensed in the period incurred. The costs of developing software for sale to customers are expensed as incurred until technological feasibility is established, which generally leads to expensing substantially all costs.
Costs associated with implementing cloud computing arrangements that are service contracts are capitalized using methodology similar to internal-use software, but are included in Other assets on our Consolidated Balance Sheets.
Estimated useful lives by major asset category are as follows (in years):
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| Impairment of Long-Lived Assets | Impairment of Long-Lived Assets
Long-lived assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. When evaluating long-lived assets with impairment indicators for potential impairment, we first compare the carrying value of the asset to its estimated undiscounted future cash flows. If the sum of the estimated undiscounted future cash flows is less than the carrying value of the asset, we calculate an impairment loss. The impairment loss calculation compares the carrying value of the asset to its estimated fair value, which is typically based on estimated discounted future cash flows. We recognize an impairment loss if the amount of the asset’s carrying value exceeds the asset’s estimated fair value.
We evaluate locations for triggering events on a quarterly basis. For store locations, our primary indicator that asset carrying values may not be recoverable is negative store operating income for the most recent 12-month period. We also monitor other factors when evaluating store locations for impairment, including significant changes in the manner of use or expected life of the assets or significant changes in our business strategies.
When reviewing long-lived assets for impairment, we group long-lived assets with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. For example, long-lived assets deployed at store locations are reviewed for impairment at either the individual store level or at the local market level. Such reviews involve comparing the net carrying value of all assets to the net cash flow projections for each store or market. In addition, we conduct separate impairment reviews at other levels as appropriate, for example, to evaluate the potential impairment of assets shared by several areas of operations, such as information technology systems. |
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| Leases | Leases
The majority of our lease obligations are real estate operating leases used in our retail and distribution operations. Our finance leases are primarily equipment-related. For any lease with an initial term in excess of 12 months, the related lease assets and liabilities are recognized on our Consolidated Balance Sheets as either operating or finance leases at the inception of an agreement where it is determined that a lease exists. We have lease agreements that contain both lease and non-lease components. For lease agreements entered into or reassessed after the adoption of Accounting Standard’s Codification 842, Leases, in fiscal 2020, we have elected to combine lease and non-lease components for all classes of assets. Leases with an initial term of 12 months or less are not recorded on our Consolidated Balance Sheets; we recognize lease expense for these leases on a straight-line basis over the lease term.
Operating lease assets represent the right to use an underlying asset for the lease term and operating lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are recognized based on the present value of future payments over the lease term at the commencement date. We estimate the incremental borrowing rate for each lease based on an evaluation of our credit ratings and the prevailing market rates for collateralized debt in a similar economic environment with similar payment terms and maturity dates commensurate with the terms of the lease. Our operating leases also typically require payment of real estate taxes, common area maintenance and insurance. These components comprise the majority of our variable lease cost and are excluded from the present value of our lease obligations. In instances where they are fixed, they are included due to our election to combine lease and non-lease components. Operating lease assets also include prepaid lease payments and initial direct costs and are reduced by lease incentives. We generally do not include options to extend or terminate a lease unless it is reasonably certain that the option will be exercised. Fixed payments may contain predetermined fixed rent escalations. We recognize the related rent expense on a straight-line basis from the commencement date to the end of the lease term. |
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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 in the fiscal fourth quarter or whenever events or circumstances indicate the carrying value may not be recoverable. We monitor the existence of potential impairment indicators throughout the fiscal year. We test for goodwill impairment at the reporting unit level. Reporting units are determined by identifying components of operating segments which constitute businesses for which discrete financial information is available and is regularly reviewed by segment management. We have goodwill in two reporting units – Best Buy Domestic and Best Buy Health – with carrying values of $492 million and $891 million, respectively, as of February 3, 2024, and January 28, 2023.
Our detailed impairment testing involves comparing the fair value of each reporting unit with its carrying value, including goodwill. Fair value reflects the price a potential market participant would be willing to pay for the reporting unit in an arms-length transaction and typically requires analysis of discounted cash flows and market data, such as revenue multiples and quoted market prices. If the fair value of a reporting unit exceeds its carrying value, we conclude that no goodwill impairment has occurred. If the carrying value of a reporting unit exceeds its fair value, we recognize an impairment loss in an amount equal to the excess, not to exceed the total amount of goodwill allocated to that reporting unit.
Intangible Assets
Our valuation of identifiable intangible assets acquired is based on information and assumptions available to us at the time of acquisition, using income and market approaches to determine fair value, as appropriate.
We amortize our definite-lived intangible assets over the estimated useful lives of the assets. We review these assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets might not be recoverable and monitor for the existence of potential impairment indicators throughout the fiscal year. We record an impairment loss for any portion of the carrying value that is not recoverable. |
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| Derivatives | Derivatives
Net Investment Hedges
We use foreign currency forward contracts to hedge against the effect of Canadian dollar exchange rate fluctuations on a portion of our net investment in our Canadian operations. The contracts have terms of up to 12 months. For a net investment hedge, we recognize changes in the fair value of the derivative as a component of foreign currency translation within other comprehensive income to offset a portion of the change in translated value of the net investment being hedged, until the investment is sold or liquidated. We limit recognition in net earnings of amounts previously recorded in other comprehensive income to circumstances such as complete or substantially complete liquidation of the net investment in the hedged foreign operation. We report the gains and losses, if any, related to the amount excluded from the assessment of hedge effectiveness in net earnings.
Interest Rate Swaps
We utilize “receive fixed-rate, pay variable-rate” interest rate swaps to mitigate the effect of interest rate fluctuations on our $500 million principal amount of notes due October 1, 2028 (“2028 Notes”). Our interest rate swap contracts are considered perfect hedges because the critical terms and notional amounts match those of our fixed-rate debt being hedged and are, therefore, accounted for as fair value hedges using the shortcut method. Under the shortcut method, we recognize the change in the fair value of the derivatives with an offsetting change to the carrying value of the debt. Accordingly, there is no impact on our Consolidated Statements of Earnings from the fair value of the derivatives.
Derivatives Not Designated as Hedging Instruments
We use foreign currency forward contracts to manage the impact of fluctuations in foreign currency exchange rates relative to recognized receivable and payable balances denominated in non-functional currencies. The contracts generally have terms of up to 12 months. These derivative instruments are not designated in hedging relationships and, therefore, we record gains and losses on these contracts directly to our Consolidated Statements of Earnings.
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| Fair Value | Fair Value
Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. To measure fair value, we use a three-tier valuation hierarchy based upon observable and non-observable inputs:
Level 1 — Unadjusted quoted prices that are available in active markets for identical assets or liabilities at the measurement date.
Level 2 — Significant other observable inputs available at the measurement date, other than quoted prices included in Level 1, either directly or indirectly, including:
• Quoted prices for similar assets or liabilities in active markets; • Quoted prices for identical or similar assets or liabilities in non-active markets; • Inputs other than quoted prices that are observable for the asset or liability; and • Inputs that are derived principally from or corroborated by other observable market data.
Level 3 — Significant unobservable inputs that cannot be corroborated by observable market data and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions.
The fair value hierarchy requires the use of observable market data when available. In instances where the inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability.
Fair value remeasurements are based on significant unobservable inputs (Level 3). Fixed asset fair values are primarily derived using a discounted cash flow (“DCF”) model to estimate the present value of net cash flows that the asset or asset group was expected to generate. The key inputs to the DCF model generally include our forecasts of net cash generated from investment operations, as well as an appropriate discount rate.
Assets and liabilities that are measured at fair value on a nonrecurring basis relate primarily to our tangible fixed assets, goodwill and other intangible assets, which are remeasured when the derived fair value is below carrying value on our Consolidated Balance Sheets. For these assets, we do not periodically adjust carrying value to fair value, except in the event of impairment. When we determine that impairment has occurred, the carrying value of the asset is reduced to fair value and the difference is recorded within SG&A and Restructuring charges on our Consolidated Statements of Earnings for non-restructuring and restructuring charges, respectively. |
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| Insurance | Insurance
We are self-insured for certain losses related to workers’ compensation, medical, general liability and auto claims; however, we obtain third-party excess insurance coverage to limit our exposure to certain claims. Some of these self-insured losses are managed through a wholly-owned insurance captive. Liabilities associated with these losses include estimates of both claims filed and losses incurred but not yet reported. We utilize valuations provided by qualified, independent third-party actuaries as well as internal insurance and risk expertise. Our net self-insured liabilities included on 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 routinely examined by domestic and foreign tax authorities. At any one time, multiple tax years are subject to audit by the various taxing authorities. In evaluating the exposures associated with our various tax filing positions, we may record a liability for such exposures. A number of years may elapse before a particular matter, for which we have established a liability, is audited and fully resolved or clarified. We adjust our liability for unrecognized tax benefits and income tax provisions in the period in which an uncertain tax position is effectively settled, the statute of limitations expires for the relevant taxing authority to examine the tax position or when more information becomes available. We include our liability for unrecognized tax benefits, including accrued penalties and interest, in Long-term liabilities on our Consolidated Balance Sheets and in Income tax expense on our Consolidated Statements of Earnings. |
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| Accrued Liabilities | Accrued Liabilities
The major components of accrued liabilities are sales tax liabilities, advertising accruals, accrued income taxes, sales return reserves and insurance liabilities. |
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| Long-Term Liabilities | Long-Term Liabilities
The major components of long-term liabilities are deferred revenue from our private label and co-branded credit card arrangement and unrecognized tax benefits. |
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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 dates. Results of operations and cash flows are translated using the average exchange rates throughout the periods. The effect of exchange rate fluctuations on the translation of assets and liabilities is included as a component of shareholders' equity in accumulated other comprehensive income. Gains and losses from foreign currency transactions, which are included in SG&A on our Consolidated Statements of Earnings, have not been significant in any period presented. |
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| Revenue Recognition | Revenue Recognition
We generate revenue from the sale of products and services, both as a principal and as an agent. Revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. Our revenue excludes sales and usage-based taxes collected and is reported net of sales refunds, which includes an estimate of future returns and contract cancellations based on historical refund rates, with a corresponding reduction to cost of sales. We defer the revenue associated with any unsatisfied performance obligation until the obligation is satisfied, typically when control of a product is transferred to the customer or a service is completed.
Product Revenue
Product revenue is recognized when the customer takes physical control, either in our stores or at their home. Any fees charged to customers for delivery are recognized when delivery has been completed. We use delivery information to determine when to recognize revenue for delivered products and any related delivery fee revenue.
In most cases, we are the principal to product contracts as we have control of the physical products prior to transfer to the customer. Accordingly, revenue is recognized on a gross basis.
For certain sales, primarily activation-based software licenses and third-party stored-value cards, we are the sales agent providing access to the content and recognize commission revenue net of amounts due to third parties who fulfill the performance obligation. For these transactions, commission revenue is typically recorded once customers have taken possession of licenses or cards and can access their benefits.
Warranty obligations associated with the sale of our exclusive brands products are assurance-type warranties that are a guarantee of the product’s intended functionality and, therefore, do not represent a distinct performance obligation within the context of the contract.
Services - When we are the principal
We recognize revenue for services, such as delivery, installation, set-up, software troubleshooting, product repair, and data services once the service is completed, as this is when the customer has the ability to direct the use of and obtain the benefits of the service or serviced product. Payment terms are typically at the point of sale, but may also occur upon completion of the service. Our service contracts are primarily with retail customers, merchandise vendors (for factory warranty repairs) and extended warranty underwriters.
For technical support membership contracts (for example, our Best Buy Total membership offering), we are responsible for providing support services to customers. These contracts have terms ranging from one month to one year and typically contain several performance obligations. Payment for the membership contracts is typically due at the start of the contract period. We have determined that our contracts do not include a significant financing component. For performance obligations provided over time, we recognize revenue primarily on a usage basis, an input method of measuring progress over the related contract term. This method is derived by analysis of historical utilization patterns as this depicts when customers use the services and, accordingly, when delivery of the performance obligation occurs. There is judgment in, for example, estimating the relative standalone selling price for bundled performance obligations; the appropriate recognition methodology for each performance obligation; and, for those based on usage, the expected pattern of consumption across a large portfolio of customers. When insufficient reliable and relevant history is available to estimate usage, we generally recognize revenue ratably over the life of the contract until such history has accumulated.
Services - When we are the agent
On behalf of third-party underwriters, we sell various hardware protection plans to customers that provide extended warranty coverage on their device purchases. Such plans have terms ranging from one month to five years. Payment is due at the point of sale. Third-party underwriters assume the risk associated with the coverage and are primarily responsible for fulfillment. We record the net commissions (the amount charged to the customer less the premiums remitted to the underwriter) as revenue once the corresponding product revenue is recognized. In addition, in some cases we are eligible to receive profit-sharing payments, a form of variable consideration, which are dependent upon the financial performance of the underwriter’s protection plan portfolio. We do not share in any losses of the portfolio. We record any profit share as revenue once the uncertainty associated with the portfolio period, which is calendar-year based, is no longer constrained using the expected value method. This typically occurs during our fiscal fourth quarter, with payment of the profit share occurring in the subsequent fiscal year. Net commissions and profit-sharing revenue earned from the sale of extended warranties represented 0.8%, 0.9% and 1.4% of revenue in fiscal 2024, fiscal 2023 and fiscal 2022, respectively.
We earn commissions from mobile network carriers to sell service contracts on their platforms. Revenue is recognized upon sale of the contract and activation of the customer on the provider’s platform. The time between when we activate the service with the customer and when we receive payment from the content provider is generally 30 to 60 days, which is after control has passed. Activation commissions are subject to repayment to the carrier primarily in the event of customer cancellation for specified time periods after the sale. Commission revenue from mobile network carriers is reported net of the expected cancellations, which we estimate based on historical cancellation rates.
Credit Card Revenue
We offer promotional financing and credit cards issued by third-party banks that manage and directly extend credit to our customers. Approximately 25% of Domestic revenue in fiscal 2024, fiscal 2023 and fiscal 2022 was transacted using one of our branded cards. We provide a license to our brand and marketing services, and we facilitate credit applications in our stores and online. The banks are the sole owners of the accounts receivable generated under the program and, accordingly, we do not hold any customer receivables related to these programs and act as an agent in the financing transactions with customers. We are eligible to receive a profit share from certain of our banking partners based on the annual performance of their corresponding portfolio, and we receive quarterly payments based on forecasts of full-year performance. This is a form of variable consideration. We record such profit share as revenue over time using the most likely amount method, which reflects the amount earned each quarter when it is determined that the likelihood of a significant revenue reversal is not probable, which is typically quarterly. Profit-share payments occur quarterly, shortly after the end of each program quarter. Profit-sharing revenue from our credit card arrangement approximated 1.4%, 1.4% and 0.9% of Domestic revenue in fiscal 2024, fiscal 2023 and fiscal 2022, respectively.
Best Buy Gift Cards
We sell Best Buy gift cards to our customers in our retail stores, online and through select third parties. Our gift cards do not expire. We recognize revenue from gift cards when the card is redeemed by the customer. We also recognize revenue for the portion of gift card values that is not expected to be redeemed (“breakage”). We estimate breakage based on historical patterns and other factors, such as laws and regulations applicable to each jurisdiction. We recognize breakage revenue using a method that is consistent with customer redemption patterns. Typically, over 90% of gift card redemptions (and therefore recognition of over 90% of gift card breakage revenue) occur within one year of issuance. There is judgment in assessing the level at which we group gift cards for analysis of breakage rates, redemption patterns and the ultimate value of gift cards which we do not expect to be redeemed. Gift card breakage income was $40 million, $59 million and $49 million in fiscal 2024, fiscal 2023 and fiscal 2022, respectively.
Sales Incentives
We frequently offer sales incentives that entitle our customers to receive a gift card at the time of purchase or an instant savings coupon that can be redeemed towards a future purchase. For sales incentives issued to customers that are only earned in conjunction with the purchase of products or services, the sales incentives represent an option that is a material right and, accordingly, is a performance obligation in the contract. The revenue allocated to these sales incentives is deferred as a contract liability and is based on the cards that are projected to be redeemed. We recognize revenue for this performance obligation when it is redeemed by the customer or when it is not expected to be redeemed. There is judgment in determining the level at which we group incentives based on similar redemption patterns, future redemption patterns and the ultimate number of incentives that we do not expect to be redeemed.
We also issue coupons that are not earned in conjunction with a purchase of a product or service, typically as part of targeted marketing activities. This is not a performance obligation, but is recognized as a reduction of the transaction price when redeemed by the customer.
Customer Loyalty Programs
We have customer loyalty programs which allow members to earn points when using our private label and co-branded credit cards. Points earned enable members to receive a certificate that may be redeemed on future purchases. Certificate expirations are typically two months from the date of issuance. Our loyalty programs represent customer options that provide a material right and, accordingly, are performance obligations for each applicable contract. The relative standalone selling price of points earned by our loyalty program members is deferred and included in Deferred revenue on our Consolidated Balance Sheets based on the percentage of points that are projected to be redeemed. We recognize revenue for this performance obligation over time when a certificate is redeemed by the customer. There is inherent judgment in estimating the value of our customer loyalty programs as they are susceptible to factors outside of our influence, particularly customer redemption activity. However, we have significant experience in estimating the amount and timing of redemptions of certificates, based primarily on historical data. |
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| Cost of Sales and Selling, General and Administrative Expenses | Cost of Sales and Selling, General and Administrative Expenses
The following tables illustrate the primary costs classified in each major expense category.
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| Vendor Allowances | Vendor Allowances
We receive funds from our merchandise vendors through a variety of programs and arrangements, primarily in the form of purchases-based or sales-based volumes and for product advertising and placement. We recognize allowances based on purchases and sales as a reduction of cost of sales when the associated inventory is sold. Allowances for advertising and placement are recognized as a reduction of cost of sales ratably over the corresponding performance period. Funds that are determined to be a reimbursement of specific, incremental and identifiable costs incurred to sell a vendor’s products are recorded as an offset to the related expense within SG&A on our Consolidated Statements of Earnings when incurred. |
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| Advertising Costs | Advertising Costs
Advertising costs, which are included in SG&A on our Consolidated Statements of Earnings, are expensed the first time the advertisement runs and consist primarily of digital advertisements. Advertising expenses were $794 million, $864 million and $915 million in fiscal 2024, fiscal 2023 and fiscal 2022, respectively. |
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| Stock-Based Compensation | Stock-Based Compensation We recognize stock-based compensation expense for the fair value of our stock-based compensation awards, which is determined based on the closing market price of our stock at the date of grant for time-based and performance-based share awards, and Monte-Carlo simulation for market-based share awards. Compensation expense is recognized on a straight-line basis over the period in which services are required, except for certain performance-based share awards that vest on a graded basis, in which case the expense is front-loaded using the graded-attribution basis. Forfeitures are expensed as incurred or upon termination. |
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| Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) is computed as net earnings plus certain other items that are recorded directly to shareholders’ equity |
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Summary of Significant Accounting Policies (Tables) |
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| Schedule of Cash, Cash Equivalents and Restricted Cash |
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| Schedule of Estimated Useful Lives |
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| Schedule of Self Insurance Liability |
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Restructuring (Tables) |
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| Composition of Restructuring Charges |
(1)Includes ($6) million related to inventory markdowns recorded in Cost of sales on our Consolidated Statements of Earnings in fiscal 2022. |
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| Composition of Restructuring Charges |
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| Restructuring Accrual Activity |
(1)Represents adjustments primarily related to higher-than-expected employee retention from previously planned organizational changes. |
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| Mexico Exit And Strategic Realignment [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Composition of Restructuring Charges |
(1)Remaining net carrying value of asset impairments approximates fair value and was immaterial as of February 3, 2024. (2)Other charges are primarily comprised of contract termination costs. |
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Goodwill and Intangible Assets (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 03, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill and Intangible Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gross Carrying Amount of Goodwill and Cumulative Goodwill Impairment |
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| Definite-Lived Intangible Assets |
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| Amortization Expense |
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| Amortization Expense Expected to be Recognized |
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Fair Value Measurements (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Feb. 03, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Measurements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value, Assets and Liabilities Measured on Recurring Basis |
(1)Balance sheet location is determined by the length to maturity at date of purchase and whether the assets are restricted for particular use. (2)Valued at quoted market prices in active markets at period end. (3)Valued at face value plus accrued interest at period end, which approximates fair value. (4)Valued using the performance of mutual funds that trade with sufficient frequency and volume to obtain pricing information on an ongoing basis. |
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| Fair Value of Financial Instruments |
(1)Excludes debt discounts, issuance costs and finance lease obligations. |
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Derivative Instruments (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Feb. 03, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Instruments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Notional Amount of Derivative Instruments |
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| Effects of Derivative Instruments on Consolidated Statements of Earnings |
|
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Leases (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 03, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Supplemental Balance Sheet Information |
(1) (1)Finance leases were recorded net of accumulated depreciation of $54 million and $50 million as of February 3, 2024, and January 28, 2023, respectively. |
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| Components of Lease Cost |
(1) (1)Includes short-term leases, which are immaterial. (2)Supply chain-related amounts are included in Cost of sales. |
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| Other Information |
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| Future Lease Payments |
(1)Lease payments exclude $118 million of legally binding fixed costs for leases signed but not yet commenced. |
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Debt (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Feb. 03, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Long-term Debt |
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Shareholders' Equity (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 03, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shareholders' Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-Based Compensation Expense |
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| Time-Based Share Awards |
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| Market-Based Share Awards |
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| Performance-Based Share Awards |
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| Stock Option Activity |
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| Earnings Per Share |
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| Share Repurchases and Retired |
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Revenue (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 03, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Contract Balances and Changes in Contract Balances |
(1)Receivables are recorded net of allowances for doubtful accounts of $23 million and $22 million as of February 3, 2024, and January 28, 2023, respectively. |
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| Expected Timing for Satisfying Remaining Performance Obligation |
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Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 03, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Taxes [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Reconciliation of Federal Statutory Income Tax Rate to Income Tax Expense |
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| Earning Before Income Tax Expense and Equity in Income of Affiliates |
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| Income Tax Expense (Benefit) |
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| Deferred Income Tax Assets and Liabilities |
Deferred taxes were presented as follows ($ in millions):
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| Reconciliation of Changes in Unrecognized Tax Benefits | (1)
(1)Represents multi-jurisdiction, multi-year resolutions of certain discrete tax matters. |
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Segment and Geographic Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 03, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment and Geographic Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue by Reportable Segment and Product Category |
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| Segment Information |
(1)Domestic operating income includes certain operations that are based in foreign tax jurisdictions and primarily relate to sourcing products into the U.S. |
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| Geographic Information |
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Summary of Significant Accounting Policies (Schedule of Cash, Cash Equivalents and Restricted Cash) (Details) - USD ($) $ in Millions |
Feb. 03, 2024 |
Jan. 28, 2023 |
Jan. 29, 2022 |
Jan. 30, 2021 |
|---|---|---|---|---|
| Summary of Significant Accounting Policies [Abstract] | ||||
| Cash and cash equivalents | $ 1,447.0 | $ 1,874.0 | $ 2,936.0 | |
| Restricted cash included in Other current assets | 346.0 | 379.0 | 269.0 | |
| Total cash, cash equivalents and restricted cash | $ 1,793.0 | $ 2,253.0 | $ 3,205.0 | $ 5,625.0 |
Summary of Significant Accounting Policies (Schedule of Estimated Useful Lives) (Details) |
Feb. 03, 2024 |
|---|---|
| Buildings | Minimum [Member] | |
| Property, Plant and Equipment [Line Items] | |
| Estimated useful lives | 5 years |
| Buildings | Maximum [Member] | |
| Property, Plant and Equipment [Line Items] | |
| Estimated useful lives | 35 years |
| Leasehold improvements | Minimum [Member] | |
| Property, Plant and Equipment [Line Items] | |
| Estimated useful lives | 5 years |
| Leasehold improvements | Maximum [Member] | |
| Property, Plant and Equipment [Line Items] | |
| Estimated useful lives | 10 years |
| Fixtures and equipment | Minimum [Member] | |
| Property, Plant and Equipment [Line Items] | |
| Estimated useful lives | 2 years |
| Fixtures and equipment | Maximum [Member] | |
| Property, Plant and Equipment [Line Items] | |
| Estimated useful lives | 15 years |
Summary of Significant Accounting Policies (Schedule of Self Insurance Liability) (Details) - USD ($) $ in Millions |
Feb. 03, 2024 |
Jan. 28, 2023 |
|---|---|---|
| Summary of Significant Accounting Policies [Abstract] | ||
| Short-term liabilities | $ 111.0 | $ 111.0 |
| Long-term liabilities | 57.0 | 53.0 |
| Total | $ 168.0 | $ 164.0 |
Acquisitions (Details) - USD ($) $ in Millions |
12 Months Ended | |||||
|---|---|---|---|---|---|---|
Nov. 04, 2021 |
Nov. 02, 2021 |
Jan. 29, 2022 |
Feb. 03, 2024 |
Jan. 28, 2023 |
Nov. 02, 2022 |
|
| Business Acquisition [Line Items] | ||||||
| Total purchase price, net of cash acquired | $ 468.0 | |||||
| Goodwill | $ 1,383.0 | $ 1,383.0 | ||||
| Current Health Ltd. [Member] | ||||||
| Business Acquisition [Line Items] | ||||||
| Total purchase price, net of cash acquired | $ 389.0 | |||||
| Goodwill | $ 351.0 | |||||
| Two Peaks, LLC d/b/a Yardbird Furniture [Member] | ||||||
| Business Acquisition [Line Items] | ||||||
| Total purchase price, net of cash acquired | $ 79.0 | |||||
| Goodwill | $ 47.0 |
Restructuring (Restructuring Accrual Activity) (Details) - 2023 Resource Optimization Initiative [Member] - Termination Benefits [Member] - USD ($) $ in Millions |
12 Months Ended | |
|---|---|---|
Feb. 03, 2024 |
Jan. 28, 2023 |
|
| Restructuring Reserve [Roll Forward] | ||
| Balances | $ 107.0 | |
| Charges | $ 150.0 | |
| Cash payments | (73.0) | (38.0) |
| Adjustments | (18.0) | (5.0) |
| Balances | 16.0 | 107.0 |
| Domestic [Member] | ||
| Restructuring Reserve [Roll Forward] | ||
| Balances | 102.0 | |
| Charges | 145.0 | |
| Cash payments | (70.0) | (38.0) |
| Adjustments | (16.0) | (5.0) |
| Balances | 16.0 | 102.0 |
| International [Member] | ||
| Restructuring Reserve [Roll Forward] | ||
| Balances | 5.0 | |
| Charges | 5.0 | |
| Cash payments | (3.0) | |
| Adjustments | $ (2.0) | |
| Balances | $ 5.0 | |
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) |
12 Months Ended | ||
|---|---|---|---|
Feb. 03, 2024 |
Jan. 28, 2023 |
Jan. 29, 2022 |
|
| Goodwill and Intangible Assets [Abstract] | |||
| Goodwill and intangible assets impairment charges | $ 0 | $ 0 | $ 0 |
Goodwill and Intangible Assets (Gross Carrying Amount of Goodwill and Cumulative Goodwill Impairment) (Details) - USD ($) $ in Millions |
Feb. 03, 2024 |
Jan. 28, 2023 |
|---|---|---|
| Goodwill [Line Items] | ||
| Gross Carrying Amount | $ 2,058.0 | $ 2,058.0 |
| Cumulative Impairment | (675.0) | (675.0) |
| Domestic [Member] | ||
| Goodwill [Line Items] | ||
| Gross Carrying Amount | 1,450.0 | 1,450.0 |
| Cumulative Impairment | (67.0) | (67.0) |
| International [Member] | ||
| Goodwill [Line Items] | ||
| Gross Carrying Amount | 608.0 | 608.0 |
| Cumulative Impairment | $ (608.0) | $ (608.0) |
Goodwill and Intangible Assets (Definite-Lived Intangible Assets) (Details) - USD ($) $ in Millions |
Feb. 03, 2024 |
Jan. 28, 2023 |
|---|---|---|
| Acquired Finite-Lived Intangible Assets [Line Items] | ||
| Gross Carrying Amount | $ 532.0 | $ 532.0 |
| Accumulated Amortization | $ 404.0 | 343.0 |
| Weighted-Average Useful Life Remaining | 8 years 2 months 12 days | |
| Customer Relationships [Member] | ||
| Acquired Finite-Lived Intangible Assets [Line Items] | ||
| Gross Carrying Amount | $ 360.0 | 360.0 |
| Accumulated Amortization | $ 276.0 | 236.0 |
| Weighted-Average Useful Life Remaining | 10 years 1 month 6 days | |
| Tradenames [Member] | ||
| Acquired Finite-Lived Intangible Assets [Line Items] | ||
| Gross Carrying Amount | $ 108.0 | 108.0 |
| Accumulated Amortization | $ 69.0 | 56.0 |
| Weighted-Average Useful Life Remaining | 4 years 9 months 18 days | |
| Developed Technology [Member] | ||
| Acquired Finite-Lived Intangible Assets [Line Items] | ||
| Gross Carrying Amount | $ 64.0 | 64.0 |
| Accumulated Amortization | $ 59.0 | $ 51.0 |
| Weighted-Average Useful Life Remaining | 3 years 9 months 18 days |
Goodwill and Intangible Assets (Amortization Expense) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Feb. 03, 2024 |
Jan. 28, 2023 |
Jan. 29, 2022 |
|
| Goodwill and Intangible Assets [Abstract] | |||
| Amortization expense | $ 61.0 | $ 86.0 | $ 82.0 |
Goodwill and Intangible Assets (Amortization Expense Expected to be Recognized) (Details) $ in Millions |
Feb. 03, 2024
USD ($)
|
|---|---|
| Goodwill and Intangible Assets [Abstract] | |
| Fiscal 2025 | $ 21.0 |
| Fiscal 2026 | 21.0 |
| Fiscal 2027 | 18.0 |
| Fiscal 2028 | 12.0 |
| Fiscal 2029 | 11.0 |
| Thereafter | $ 45.0 |
Fair Value Measurements (Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions |
Feb. 03, 2024 |
Jan. 28, 2023 |
|---|---|---|
| Level 1 [Member] | Money Market Funds [Member] | ||
| Assets | ||
| Cash and cash equivalents | $ 330.0 | $ 280.0 |
| Other current assets | 182.0 | 178.0 |
| Level 1 [Member] | Marketable Securities that Fund Deferred Compensation [Member] | ||
| Assets | ||
| Other assets | 48.0 | 47.0 |
| Level 2 [Member] | Time Deposits [Member] | ||
| Assets | ||
| Cash and cash equivalents | 60.0 | $ 203.0 |
| Other current assets | $ 50.0 |
Fair Value Measurements (Fair Value of Financial Instruments) (Details) - USD ($) $ in Millions |
Feb. 03, 2024 |
Jan. 28, 2023 |
|---|---|---|
| Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
| Carrying value | $ 1,139.0 | $ 1,143.0 |
| Level 2 [Member] | Long-term Debt [Member] | ||
| Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
| Fair Value | 1,022.0 | 1,019.0 |
| Carrying value | $ 1,139.0 | $ 1,143.0 |
Derivative Instruments (Notional Amount of Derivative Instruments) (Details) - USD ($) $ in Millions |
Feb. 03, 2024 |
Jan. 28, 2023 |
|---|---|---|
| Derivatives, Fair Value [Line Items] | ||
| Notional amount | $ 666.0 | $ 670.0 |
| Derivatives Designated As Net Investment Hedges [Member] | Designated As Hedging Instrument [Member] | ||
| Derivatives, Fair Value [Line Items] | ||
| Notional amount | 100.0 | 114.0 |
| Interest Rate Swap Derivative Instruments [Member] | Designated As Hedging Instrument [Member] | ||
| Derivatives, Fair Value [Line Items] | ||
| Notional amount | 500.0 | 500.0 |
| Foreign Exchange Forward Contracts [Member] | Not Designated As Hedging Instrument [Member] | ||
| Derivatives, Fair Value [Line Items] | ||
| Notional amount | $ 66.0 | $ 56.0 |
Derivative Instruments (Gross Fair Values of Outstanding Derivative Instruments) (Details) - Designated As Hedging Instrument [Member] - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Feb. 03, 2024 |
Jan. 28, 2023 |
Jan. 29, 2022 |
|
| Interest Rate Swap Derivative Instruments [Member] | |||
| Derivatives, Fair Value [Line Items] | |||
| Gain (Loss) Recognized | $ (4.0) | $ (57.0) | $ (41.0) |
| Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest Expense | Interest Expense | Interest Expense |
| Carrying Value of Long Term Debt [Member] | |||
| Derivatives, Fair Value [Line Items] | |||
| Gain (Loss) Recognized | $ 4.0 | $ 57.0 | $ 41.0 |
| Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest Expense | Interest Expense | Interest Expense |
Leases (Supplemental Balance Sheet Information) (Details) - USD ($) $ in Millions |
Feb. 03, 2024 |
Jan. 28, 2023 |
|---|---|---|
| Assets | ||
| Operating leases | $ 2,758.0 | $ 2,746.0 |
| Finance leases | $ 43.0 | $ 50.0 |
| Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property Under Finance Leases | Property Under Finance Leases |
| Total lease assets | $ 2,801.0 | $ 2,796.0 |
| Current: | ||
| Operating leases | 618.0 | 638.0 |
| Finance leases | $ 13.0 | $ 16.0 |
| Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Long-term Debt, Current Maturities | Long-term Debt, Current Maturities |
| Non-current: | ||
| Operating leases | $ 2,199.0 | $ 2,164.0 |
| Finance leases | $ 21.0 | $ 26.0 |
| Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term Debt and Capital Lease Obligations | Long-term Debt and Capital Lease Obligations |
| Total lease liabilities | $ 2,851.0 | $ 2,844.0 |
| Accumulated depreciation | 4,816.0 | 4,624.0 |
| Finance Leases [Member] | ||
| Non-current: | ||
| Accumulated depreciation | $ 54.0 | $ 50.0 |
Leases (Components of Lease Cost) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Feb. 03, 2024 |
Jan. 28, 2023 |
Jan. 29, 2022 |
|
| Leases [Abstract] | |||
| Operating lease cost | $ 777.0 | $ 780.0 | $ 770.0 |
| Depreciation of lease assets | 16.0 | 15.0 | 13.0 |
| Interest on lease liabilities | 1.0 | 1.0 | 1.0 |
| Variable lease cost | 239.0 | 233.0 | 238.0 |
| Sublease income | (11.0) | (12.0) | (13.0) |
| Total lease cost | $ 1,022.0 | $ 1,017.0 | $ 1,009.0 |
Leases (Other Information) (Details) - USD ($) $ in Millions |
12 Months Ended | |
|---|---|---|
Feb. 03, 2024 |
Jan. 28, 2023 |
|
| Cash paid for amounts included in the measurement of lease liabilities: | ||
| Operating cash flows from operating leases | $ 772.0 | $ 781.0 |
| Operating cash flows from finance leases | 1.0 | 1.0 |
| Financing cash flows from finance leases | 14.0 | 18.0 |
| Lease assets obtained in exchange for new lease liabilities: | ||
| Operating leases | 717.0 | 809.0 |
| Finance leases | $ 11.0 | $ 18.0 |
| Weighted average remaining lease term (in years): | ||
| Operating leases | 5 years 2 months 12 days | 5 years 1 month 6 days |
| Finance leases | 5 years 10 months 24 days | 5 years 6 months |
| Weighted average discount rate: | ||
| Operating leases | 3.60% | 3.00% |
| Finance leases | 3.90% | 3.20% |
Leases (Future Lease Payments) (Details) - USD ($) $ in Millions |
Feb. 03, 2024 |
Jan. 28, 2023 |
|---|---|---|
| Operating Leases | ||
| 2025 | $ 708.0 | |
| 2026 | 675.0 | |
| 2027 | 559.0 | |
| 2028 | 432.0 | |
| 2029 | 288.0 | |
| Thereafter | 460.0 | |
| Total future undiscounted lease payments | 3,122.0 | |
| Less imputed interest | 305.0 | |
| Total reported lease liability | 2,817.0 | |
| Financing Leases | ||
| 2025 | 16.0 | |
| 2026 | 10.0 | |
| 2027 | 6.0 | |
| 2028 | 3.0 | |
| 2029 | 1.0 | |
| Thereafter | 3.0 | |
| Total future undiscounted lease payments | 39.0 | |
| Less imputed interest | 5.0 | |
| Total reported lease liability | 34.0 | $ 42.0 |
| Leases signed but not yet commenced | $ 118.0 |
Debt (Long-Term Debt) (Narrative) (Details) - USD ($) |
1 Months Ended | 12 Months Ended |
|---|---|---|
Sep. 30, 2018 |
Feb. 03, 2024 |
|
| Debt Instrument [Line Items] | ||
| Future maturities, 2025 | $ 0 | |
| Future maturities, 2026 | 0 | |
| Future maturities, 2027 | 0 | |
| Future maturities, 2028 | 0 | |
| Future maturities, 2029 | 0 | |
| Notes Due 2028 [Member] | ||
| Debt Instrument [Line Items] | ||
| Principal amount | $ 500,000,000 | |
| Debt issuance costs | $ 5,000,000 | |
| Proceeds from debt, net of issuance costs | $ 495,000,000 | |
| Redemption price, percentage | 100.00% | |
| Control triggering percentage | 101.00% | |
| Interest rate | 4.45% | |
| Notes Due 2030 [Member] | ||
| Debt Instrument [Line Items] | ||
| Principal amount | $ 650,000,000 | |
| Unamortized discount | 8,000,000 | |
| Proceeds from debt, net of issuance costs | $ 642,000,000 | |
| Redemption price, percentage | 100.00% | |
| Control triggering percentage | 101.00% | |
| Interest rate | 1.95% |
Debt (Schedule of Long-Term Debt) (Details) - USD ($) $ in Millions |
Feb. 03, 2024 |
Jan. 28, 2023 |
|---|---|---|
| Debt Instrument [Line Items] | ||
| Total | $ 1,139.0 | $ 1,143.0 |
| Debt discounts and issuance costs | (8.0) | (9.0) |
| Finance lease obligations | 34.0 | 42.0 |
| Total long-term debt | 1,165.0 | 1,176.0 |
| Less current portion | 13.0 | 16.0 |
| Total long-term debt, less current portion | 1,152.0 | 1,160.0 |
| Interest Rate Swap Derivative Instruments [Member] | ||
| Debt Instrument [Line Items] | ||
| Interest rate swap valuation adjustments | (11.0) | (7.0) |
| Notes Due 2028 [Member] | ||
| Debt Instrument [Line Items] | ||
| Long-term debt | 500.0 | 500.0 |
| Notes Due 2030 [Member] | ||
| Debt Instrument [Line Items] | ||
| Long-term debt | $ 650.0 | $ 650.0 |
Shareholders' Equity (Time-Based Share Awards) (Details) - Time-Based Share Awards [Member] |
12 Months Ended |
|---|---|
|
Feb. 03, 2024
$ / shares
shares
| |
| Shares | |
| Outstanding | shares | 3,046 |
| Granted | shares | 2,003 |
| Vested and distributed | shares | (1,476) |
| Forfeited | shares | (307) |
| Outstanding | shares | 3,266 |
| Weighted-Average Fair Value per Share | |
| Outstanding | $ / shares | $ 90.96 |
| Granted | $ / shares | 77.70 |
| Vested and distributed | $ / shares | 85.71 |
| Forfeited | $ / shares | 91.83 |
| Outstanding | $ / shares | $ 85.71 |
Shareholders' Equity (Market-Based Share Awards) (Details) - Market-Based Share Awards [Member] |
12 Months Ended |
|---|---|
|
Feb. 03, 2024
$ / shares
shares
| |
| Shares | |
| Outstanding | shares | 514 |
| Granted | shares | 267 |
| Adjustment for performance achievement | shares | (178) |
| Forfeited | shares | (24) |
| Outstanding | shares | 579 |
| Weighted-Average Fair Value per Share | |
| Outstanding | $ / shares | $ 96.61 |
| Granted | $ / shares | 86.95 |
| Adjustment for performance achievement | $ / shares | 53.18 |
| Forfeited | $ / shares | 98.03 |
| Outstanding | $ / shares | $ 106.38 |
Shareholders' Equity (Performance-Based Share Awards) (Details) - Performance-Based Share Awards [Member] |
12 Months Ended |
|---|---|
|
Feb. 03, 2024
$ / shares
shares
| |
| Shares | |
| Outstanding | shares | 288 |
| Granted | shares | 2 |
| Adjustment for performance achievement | shares | (46) |
| Distributed | shares | (195) |
| Forfeited | shares | (4) |
| Outstanding | shares | 45 |
| Weighted-Average Fair Value per Share | |
| Outstanding | $ / shares | $ 67.36 |
| Granted | $ / shares | 111.87 |
| Adjustment for performance achievement | $ / shares | 51.79 |
| Distributed | $ / shares | 61.07 |
| Forfeited | $ / shares | 77.40 |
| Outstanding | $ / shares | $ 111.68 |
Shareholders' Equity (Stock Option Activity) (Details) - Stock Option [Member] - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Feb. 03, 2024 |
Jan. 28, 2023 |
Jan. 29, 2022 |
|
| Stock Options | |||
| Outstanding | 720 | ||
| Granted | 0 | 0 | 0 |
| Exercised | (152) | ||
| Forfeited | (39) | ||
| Outstanding | 529 | 720 | |
| Weighted-Average Exercise Price per Share | |||
| Outstanding | $ 60.91 | ||
| Exercised | 62.97 | ||
| Forfeited | 69.11 | ||
| Outstanding | $ 59.71 | $ 60.91 | |
| Weighted-Average Remaining Contractual Term [Abstract] | |||
| Outstanding | 4 years 10 months 24 days | ||
| Aggregate Intrinsic Value [Abstract] | |||
| Outstanding | $ 8.0 | ||
Shareholders' Equity (Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Feb. 03, 2024 |
Jan. 28, 2023 |
Jan. 29, 2022 |
|
| Numerator [Abstract] | |||
| Net earnings | $ 1,241.0 | $ 1,419.0 | $ 2,454.0 |
| Denominator [Abstract] | |||
| Weighted-average common shares outstanding (in shares) | 217.7 | 224.8 | 246.8 |
| Effect of Potentially Dilutive Securities [Abstract] | |||
| Dilutive effect of stock compensation plan awards (in shares) | 0.8 | 0.9 | 2.5 |
| Weighted-average common shares outstanding, assuming dilution (in shares) | 218.5 | 225.7 | 249.3 |
| Potential shares which were anti-dilutive and excluded from weighted-average share computations (in shares) | 0.7 | 0.1 | |
| Earnings per share attributable to Best Buy Co., Inc. | |||
| Basic (in dollars per share) | $ 5.70 | $ 6.31 | $ 9.94 |
| Diluted (in dollars per share) | $ 5.68 | $ 6.29 | $ 9.84 |
Shareholders' Equity (Schedule of Share Repurchases) (Details) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Feb. 03, 2024 |
Jan. 28, 2023 |
Jan. 29, 2022 |
|
| Shareholders' Equity [Abstract] | |||
| Total cost of shares repurchased | $ 340.0 | $ 1,001.0 | $ 3,504.0 |
| Average price per share | $ 72.52 | $ 84.78 | $ 108.97 |
| Total number of shares repurchased | 4.7 | 11.8 | 32.2 |
Revenue (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | |
|---|---|---|
Feb. 03, 2024 |
Jan. 28, 2023 |
|
| Revenue [Abstract] | ||
| Revenue recognized | $ 1,283 | $ 1,346 |
Revenue (Contract Balances and Changes in Contract Balances) (Details) - USD ($) $ in Millions |
Feb. 03, 2024 |
Jan. 28, 2023 |
|---|---|---|
| Revenue from Contract with Customer [Line Items] | ||
| Receivables, net | $ 512.0 | $ 581.0 |
| Receivables, allowance for doubtful accounts | 23.0 | 22.0 |
| Unredeemed Gift Cards [Member] | ||
| Revenue from Contract with Customer [Line Items] | ||
| Short-term contract liabilities | 253.0 | 274.0 |
| Deferred Revenue [Member] | ||
| Revenue from Contract with Customer [Line Items] | ||
| Short-term contract liabilities | 1,000.0 | 1,116.0 |
| Accrued Liabilities [Member] | ||
| Revenue from Contract with Customer [Line Items] | ||
| Short-term contract liabilities | 53.0 | 66.0 |
| Long-Term Liabilities [Member] | ||
| Revenue from Contract with Customer [Line Items] | ||
| Long-term contract liabilities | $ 245.0 | $ 265.0 |
Income Taxes (Reconciliation of Federal Statutory Income Tax Rate to Income Tax Expense) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Feb. 03, 2024 |
Jan. 28, 2023 |
Jan. 29, 2022 |
|
| Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
| Federal income tax at the statutory rate | $ 340.0 | $ 376.0 | $ 635.0 |
| State income taxes, net of federal benefit | 57.0 | 63.0 | 88.0 |
| Change in unrecognized tax benefits | (6.0) | (45.0) | (88.0) |
| Benefit from foreign operations | (8.0) | (4.0) | (8.0) |
| Other | (2.0) | (20.0) | (53.0) |
| Income tax expense | $ 381.0 | $ 370.0 | $ 574.0 |
| Effective income tax rate | 23.50% | 20.70% | 19.00% |
Income Taxes (Earning Before Income Tax Expense and Equity in Income of Affiliates) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Feb. 03, 2024 |
Jan. 28, 2023 |
Jan. 29, 2022 |
|
| Income Taxes [Abstract] | |||
| United States | $ 1,389.0 | $ 1,533.0 | $ 2,677.0 |
| Foreign | 232.0 | 255.0 | 347.0 |
| Earnings before income tax expense and equity in income of affiliates | $ 1,621.0 | $ 1,788.0 | $ 3,024.0 |
Income Taxes (Income Tax Expense (Benefit)) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Feb. 03, 2024 |
Jan. 28, 2023 |
Jan. 29, 2022 |
|
| Current: | |||
| Federal | $ 452.0 | $ 213.0 | $ 367.0 |
| State | 104.0 | 64.0 | 132.0 |
| Foreign | 39.0 | 42.0 | 61.0 |
| Current income tax expense | 595.0 | 319.0 | 560.0 |
| Deferred: | |||
| Federal | (177.0) | 33.0 | 22.0 |
| State | (37.0) | 19.0 | (9.0) |
| Foreign | (1.0) | 1.0 | |
| Deferred income tax expense (benefit) | (214.0) | 51.0 | 14.0 |
| Income tax expense | $ 381.0 | $ 370.0 | $ 574.0 |
Income Taxes (Reconciliation of Changes in Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Feb. 03, 2024 |
Jan. 28, 2023 |
Jan. 29, 2022 |
|
| Reconciliation of changes in unrecognized tax benefits | |||
| Balances at beginning of period | $ 163.0 | $ 235.0 | $ 327.0 |
| Gross increases related to prior period tax positions | 10.0 | 28.0 | 3.0 |
| Gross decreases related to prior period tax positions | (11.0) | (75.0) | (103.0) |
| Gross increases related to current period tax positions | 20.0 | 21.0 | 28.0 |
| Settlements with taxing authorities | (3.0) | (7.0) | |
| Lapse of statute of limitations | (39.0) | (46.0) | (13.0) |
| Balances at end of period | $ 140.0 | $ 163.0 | $ 235.0 |
Benefit Plans (Details) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Feb. 03, 2024 |
Jan. 28, 2023 |
Jan. 29, 2022 |
|
| Benefit Plans [Abstract] | |||
| Maximum percentage of a participant's eligible compensation that a participant may contribute annually to the plan (as a percent) | 50.00% | ||
| Percentage of matching contribution made by company of first 3% of participating employees' contributions (as a percent) | 100.00% | ||
| Percentage of participating employees' contribution, matched 100% (as a percent) | 3.00% | ||
| Percentage of matching contribution made by company, of next 2% of participating employees' contributions (as a percent) | 50.00% | ||
| Percentage of participating employees' contribution, matched 50% (as a percent) | 2.00% | ||
| Deferred Compensation Arrangement with Individual, Contributions by Employer | $ 76 | $ 77 | $ 77 |
| Deferred Compensation Liability, Classified, Noncurrent | $ 24 | $ 20 | |
Contingencies and Commitments (Details) $ in Millions |
Feb. 03, 2024
USD ($)
|
|---|---|
| Contingencies and Commitments [Abstract] | |
| Letters of Credit Outstanding, Amount | $ 71.0 |
Segment and Geographic Information (Geographic Information) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Feb. 03, 2024 |
Jan. 28, 2023 |
Jan. 29, 2022 |
|
| Segment Reporting Information [Line Items] | |||
| Revenues | $ 43,452.0 | $ 46,298.0 | $ 51,761.0 |
| Property and equipment, net | 2,260.0 | 2,352.0 | 2,250.0 |
| United States | |||
| Segment Reporting Information [Line Items] | |||
| Revenues | 40,097.0 | 42,794.0 | 47,830.0 |
| Property and equipment, net | 2,157.0 | 2,243.0 | 2,128.0 |
| Canada | |||
| Segment Reporting Information [Line Items] | |||
| Revenues | 3,355.0 | 3,504.0 | 3,911.0 |
| Property and equipment, net | 102.0 | 107.0 | 120.0 |
| Other | |||
| Segment Reporting Information [Line Items] | |||
| Revenues | 20.0 | ||
| Property and equipment, net | $ 1.0 | $ 2.0 | $ 2.0 |
Insider Trading Arrangements |
3 Months Ended |
|---|---|
|
Feb. 03, 2024
shares
| |
| Insider Trading Arrangements [Line Items] | |
| Material Terms of Trading Arrangement | Rule 10b5-1 Plan Elections
Set forth below are developments regarding trading plan arrangements among our directors and officers (as defined in Rule 16a-1(f) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) for the quarter ended February 3, 2024.
On December 6, 2023, Jason Bonfig, the Company’s Senior Executive Vice President of Customer Offerings and Fulfillment, entered into a trading plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act, providing for the potential sale of up to 28,500 shares of our common stock through February 28, 2025. |
| Name | Jason Bonfig |
| Title | Senior Executive Vice President of Customer Offerings and Fulfillment |
| Rule 10b5-1 Arrangement Adopted | true |
| Adoption Date | December 6, 2023 |
| Rule 10b5-1 Arrangement Terminated | false |
| Termination Date | February 28, 2025 |
| Aggregate Available | 28,500 |