Document and Entity Information
Document and Entity Information Document - shares | 6 Months Ended | |
Jul. 30, 2016 | Aug. 30, 2016 | |
Document Information [Line Items] | ||
Entity Registrant Name | BEST BUY CO INC | |
Entity Central Index Key | 764,478 | |
Document Type | 10-Q | |
Document Period End Date | Jul. 30, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --01-28 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 317,274,411 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jul. 30, 2016 | Jan. 30, 2016 | Aug. 01, 2015 | ||
Current assets | |||||
Cash and cash equivalents | $ 1,861 | $ 1,976 | $ 1,800 | ||
Short-term investments | 1,590 | 1,305 | 1,695 | ||
Receivables, net | 926 | 1,162 | 1,025 | ||
Merchandise inventories | 4,908 | 5,051 | 4,995 | ||
Other current assets | 409 | 392 | 465 | ||
Total current assets | 9,694 | 9,886 | 9,980 | ||
Property and equipment, net | 2,295 | 2,346 | 2,235 | ||
Goodwill | 425 | 425 | 425 | ||
Intangibles, net | 18 | 18 | 18 | ||
Other assets | 822 | 813 | 868 | ||
Non-current assets held for sale | 0 | 31 | 33 | ||
Total assets | 13,254 | 13,519 | 13,559 | ||
Current liabilities | |||||
Accounts payable | 4,800 | 4,450 | 4,680 | ||
Unredeemed gift card liabilities | 369 | 409 | 371 | ||
Deferred revenue | 380 | 357 | 316 | ||
Accrued compensation and related expenses | 272 | 384 | 285 | ||
Accrued liabilities | 840 | 802 | 778 | ||
Accrued income taxes | 96 | 128 | 26 | ||
Current portion of long-term debt | 43 | 395 | [1] | 382 | [1] |
Total current liabilities | 6,800 | 6,925 | 6,838 | ||
Long-term liabilities | 794 | 877 | 879 | ||
Long-term debt | 1,341 | 1,339 | 1,220 | ||
Best Buy Co., Inc. shareholders’ equity | |||||
Preferred stock, $1.00 par value: Authorized — 400,000 shares; Issued and outstanding — none | 0 | 0 | 0 | ||
Common stock, $0.10 par value: Authorized — 1.0 billion shares; Issued and outstanding — 317,000,000, 324,000,000 and 344,000,000 shares, respectively | 32 | 32 | 34 | ||
Prepaid Share Repurchase | 0 | (55) | 0 | ||
Additional paid-in capital | 0 | 0 | 198 | ||
Retained earnings | 3,991 | 4,130 | 4,092 | ||
Accumulated other comprehensive income | 296 | 271 | 298 | ||
Total equity | 4,319 | 4,378 | 4,622 | ||
Total liabilities and equity | $ 13,254 | $ 13,519 | $ 13,559 | ||
[1] | Our 2016 Notes, due March 15, 2016, were classified in our current portion of long-term debt as of January 30, 2016 and August 1, 2015, respectively. In March 2016, we repaid the 2016 Notes using existing cash resources. |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - $ / shares | Jul. 30, 2016 | Jan. 30, 2016 | Aug. 01, 2015 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 | $ 1 |
Preferred stock, authorized shares | 400,000 | 400,000 | 400,000 |
Preferred stock, issued shares | 0 | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 | $ 0.10 |
Common stock, authorized shares | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 |
Common stock, issued shares | 317,000,000 | 324,000,000 | 344,000,000 |
Common stock, outstanding shares | 317,000,000 | 324,000,000 | 344,000,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2016 | Aug. 01, 2015 | Jul. 30, 2016 | Aug. 01, 2015 | |
Revenue | $ 8,533 | $ 8,528 | $ 16,976 | $ 17,086 |
Cost of goods sold | 6,471 | 6,433 | 12,769 | 12,953 |
Restructuring charges – cost of goods sold | 0 | (3) | 0 | 5 |
Gross profit | 2,062 | 2,098 | 4,207 | 4,128 |
Selling, general and administrative expenses | 1,773 | 1,811 | 3,517 | 3,577 |
Restructuring charges | 0 | (1) | 29 | 177 |
Operating income | 289 | 288 | 661 | 374 |
Other income (expense) | ||||
Gain on sale of investments | 0 | 0 | 2 | 2 |
Investment income and other | 8 | 4 | 14 | 11 |
Interest expense | (18) | (20) | (38) | (40) |
Earnings from continuing operations before income tax expense | 279 | 272 | 639 | 347 |
Income tax expense | 97 | 108 | 231 | 146 |
Net earnings from continuing operations | 182 | 164 | 408 | 201 |
Gain from discontinued operations (Note 2), net of tax benefit (expense) of $(10), $-, $(7) and $3, respectively | 16 | 0 | 19 | 92 |
Net earnings | $ 198 | $ 164 | $ 427 | $ 293 |
Basic earnings | ||||
Continuing operations (in dollars per share) | $ 0.57 | $ 0.47 | $ 1.27 | $ 0.57 |
Discontinued operations (in dollars per share) | 0.05 | 0 | 0.06 | 0.26 |
Basic earnings per share (in dollars per share) | 0.62 | 0.47 | 1.33 | 0.83 |
Diluted earnings | ||||
Continuing operations (in dollars per share) | 0.56 | 0.46 | 1.26 | 0.57 |
Discontinued operations (in dollars per share) | 0.05 | 0 | 0.05 | 0.25 |
Diluted earnings per share (in dollars per share) | 0.61 | 0.46 | 1.31 | 0.82 |
Dividends declared per common share (in dollars per share) | $ 0.28 | $ 0.23 | $ 1.01 | $ 0.97 |
Weighted-average common shares outstanding (in millions) | ||||
Basic (in shares) | 320.8 | 349.6 | 322.2 | 351 |
Diluted (in shares) | 322.9 | 353.9 | 324.8 | 355.8 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (PARENTHETICAL) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2016 | Aug. 01, 2015 | Jul. 30, 2016 | Aug. 01, 2015 | |
Income tax benefit (expense) | $ (10) | $ 0 | $ (7) | $ 3 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2016 | Aug. 01, 2015 | Jul. 30, 2016 | Aug. 01, 2015 | |
Net earnings | $ 198 | $ 164 | $ 427 | $ 293 |
Foreign currency translation adjustments | (20) | (32) | 25 | (17) |
Reclassification of foreign currency translation adjustments into earnings due to sale of business | 0 | 0 | 0 | (67) |
Comprehensive income | $ 178 | $ 132 | $ 452 | $ 209 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Total Best Buy Co., Inc. [Member] | Common Stock [Member] | Prepaid Share Repurchase [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interests [Member] |
Beginning balances (in shares) at Jan. 31, 2015 | 352 | |||||||
Beginning balances at Jan. 31, 2015 | $ 5,000 | $ 4,995 | $ 35 | $ 437 | $ 4,141 | $ 382 | $ 5 | |
Increase (Decrease) in Shareholders' Equity | ||||||||
Net earnings, six months ended | 293 | 293 | 0 | 0 | 293 | 0 | 0 | |
Foreign currency translation adjustments | (17) | (17) | 0 | 0 | 0 | (17) | 0 | |
Reclassification of foreign currency translation adjustments into earnings due to sale of business | (67) | (67) | (67) | 0 | ||||
Sale of noncontrolling interest | (5) | (5) | ||||||
Stock-based compensation | 55 | 55 | $ 0 | 55 | 0 | 0 | 0 | |
Restricted stock vested and stock options exercised (in shares) | 1 | |||||||
Restricted stock vested and stock options exercised | 24 | 24 | $ 0 | 24 | 0 | 0 | 0 | |
Issuance of common stock under employee stock purchase plan (in shares) | 0 | |||||||
Issuance of common stock under employee stock purchase plan | 4 | 4 | $ 0 | 4 | 0 | 0 | 0 | |
Tax benefit (deficit) from stock options exercised, restricted stock vesting and employee stock purchase plan | 1 | 1 | 0 | 1 | 0 | 0 | 0 | |
Common stock dividends | (342) | (342) | $ 0 | 0 | (342) | 0 | 0 | |
Stock Repurchased During Period, Shares | (9) | |||||||
Stock Repurchased During Period, Value | (324) | (324) | $ (1) | (323) | 0 | |||
Ending balances (in shares) at Aug. 01, 2015 | 344 | |||||||
Ending balances at Aug. 01, 2015 | 4,622 | 4,622 | $ 34 | 198 | 4,092 | 298 | 0 | |
Beginning balances (in shares) at Jan. 30, 2016 | 324 | |||||||
Beginning balances at Jan. 30, 2016 | 4,378 | 4,378 | $ 32 | $ (55) | 0 | 4,130 | 271 | 0 |
Increase (Decrease) in Shareholders' Equity | ||||||||
Net earnings, six months ended | 427 | 427 | 0 | 0 | 427 | 0 | 0 | |
Foreign currency translation adjustments | 25 | 25 | 0 | 0 | 25 | 0 | ||
Reclassification of foreign currency translation adjustments into earnings due to sale of business | 0 | |||||||
Stock-based compensation | 57 | 57 | $ 0 | 57 | ||||
Restricted stock vested and stock options exercised (in shares) | 3 | |||||||
Restricted stock vested and stock options exercised | 20 | 20 | $ 0 | 20 | 0 | 0 | 0 | |
Settlement of accelerated share repurchase | 55 | 55 | 55 | |||||
Issuance of common stock under employee stock purchase plan (in shares) | 0 | |||||||
Issuance of common stock under employee stock purchase plan | 3 | 3 | $ 0 | 3 | 0 | 0 | 0 | |
Tax benefit (deficit) from stock options exercised, restricted stock vesting and employee stock purchase plan | 4 | 4 | 0 | 4 | 0 | 0 | 0 | |
Common stock dividends | (328) | (328) | $ 0 | 0 | (328) | 0 | 0 | |
Stock Repurchased During Period, Shares | (10) | |||||||
Stock Repurchased During Period, Value | (322) | (322) | $ 0 | (84) | (238) | |||
Ending balances (in shares) at Jul. 30, 2016 | 317 | |||||||
Ending balances at Jul. 30, 2016 | $ 4,319 | $ 4,319 | $ 32 | $ 0 | $ 0 | $ 3,991 | $ 296 | $ 0 |
CONDENSED CONSOLIDATED STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (PARENTHETICAL) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2016 | Aug. 01, 2015 | Jul. 30, 2016 | Aug. 01, 2015 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared per common share (in dollars per share) | $ 0.28 | $ 0.23 | $ 1.01 | $ 0.97 |
CONDENSED CONSOLIDATED STATEME9
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jul. 30, 2016 | Aug. 01, 2015 | |
Operating activities | ||
Net earnings | $ 427 | $ 293 |
Adjustments to reconcile net earnings to total cash provided by (used in) operating activities: | ||
Depreciation | 327 | 326 |
Restructuring charges | 29 | 182 |
Gain on sale of business, net | 0 | (99) |
Stock-based compensation | 57 | 55 |
Deferred income taxes | 0 | (41) |
Other, net | (38) | 10 |
Changes in operating assets and liabilities: | ||
Receivables | 240 | 268 |
Merchandise inventories | 160 | 168 |
Other assets | (29) | (9) |
Accounts payable | 355 | (335) |
Other liabilities | (159) | (284) |
Income taxes | (81) | (226) |
Total cash provided by operating activities | 1,288 | 308 |
Investing activities | ||
Additions to property and equipment | (276) | (293) |
Purchases of investments | (1,388) | (1,303) |
Sales of investments | 1,112 | 1,064 |
Proceeds from sale of business, net of cash transferred upon sale | 0 | 92 |
Proceeds from Sale of Property, Plant, and Equipment | 56 | 0 |
Change in restricted assets | (4) | (46) |
Settlement of net investment hedges | 5 | 8 |
Total cash used in investing activities | (495) | (478) |
Financing activities | ||
Repurchase of common stock | (271) | (321) |
Repayments of debt | (374) | (13) |
Dividends paid | (328) | (341) |
Issuance of common stock | 23 | 28 |
Other, net | 17 | 7 |
Total cash used in financing activities | (933) | (640) |
Effect of exchange rate changes on cash | 25 | (16) |
Decrease in cash and cash equivalents | (115) | (826) |
Cash and cash equivalents at beginning of period, excluding held for sale | 1,976 | 2,432 |
Cash and cash equivalents held for sale at beginning of period | 0 | 194 |
Cash and cash equivalents at end of period | $ 1,861 | $ 1,800 |
Basis of Presentation (Notes)
Basis of Presentation (Notes) | 6 Months Ended |
Jul. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Unless the context otherwise requires, the use of the terms “Best Buy,” “we,” “us” and “our” in these Notes to Condensed Consolidated Financial Statements refers to Best Buy Co., Inc. and its consolidated subsidiaries. In the opinion of management, the accompanying condensed consolidated financial statements contain all adjustments necessary for a fair presentation as prescribed by accounting principles generally accepted in the United States (“GAAP”). All adjustments were comprised of normal recurring adjustments, except as noted in these Notes to Condensed Consolidated Financial Statements. Historically, we have generated a higher proportion of our revenue and earnings in the fiscal fourth quarter, which includes the majority of the holiday shopping season in the U.S., Canada and Mexico. Due to the seasonal nature of our business, interim results are not necessarily indicative of results for the entire fiscal year. The interim financial statements and the related notes in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended January 30, 2016 . The first six months of fiscal 2017 and fiscal 2016 included 26 weeks. In order to align our fiscal reporting periods and comply with statutory filing requirements, we consolidate the financial results of our Mexico operations on a one -month lag. Our policy is to accelerate recording the effect of events occurring in the lag period that significantly affect our consolidated financial statements. No such events were identified for this period. In preparing the accompanying condensed consolidated financial statements, we evaluated the period from July 31, 2016 , through the date the financial statements were issued, for material subsequent events requiring recognition or disclosure. No such events were identified for this period. New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers, as a new topic, Accounting Standards Codification ("ASC") Topic 606. The new guidance provides a comprehensive framework for the analysis of revenue transactions and will apply to all of our revenue streams. Based on the current effective dates, the new guidance would first apply in the first quarter of our fiscal 2019. While we are still in the process of evaluating the effect of adoption on our financial statements, we do not currently expect a material impact on our results of operations, cash flows or financial position. In February 2016, the FASB issued ASU 2016-02, Leases. The new guidance was issued to increase transparency and comparability among companies by requiring most leases be included on the balance sheet and by expanding disclosure requirements. Based on the current effective dates, the new guidance would first apply in the first quarter of our fiscal 2020. We are still in the process of evaluating the effect of adoption on our financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation: Improvements to Employee Share-Based Payment Accounting. The new guidance was issued to simplify the accounting for share-based payment transactions and includes several changes, including the requirement to recognize the income tax effects of awards that vest or settle as income tax expense and clarification of the presentation of certain components of share-based awards in the statement of cash flows. The new guidance will first apply in the first quarter of our fiscal 2018. We are still in the process of evaluating the effect of adoption on our financial statements. Changes in Accounting Principles In the fourth quarter of fiscal 2016, we retrospectively adopted ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs ; ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements ; and ASU 2015-17, Balance Sheet Classification of Deferred Taxes. The adoption did not have a material impact on our results of operations, cash flows or financial position. The following table reconciles the balance sheet line items impacted by the adoption of these standards at August 1, 2015 : Balance Sheet August 1, 2015 Reported ASU 2015-03 & 2015-15 Adjustments ASU 2015-17 Adjustments August 1, 2015 Adjusted Other current assets $ 730 $ (2 ) $ (263 ) $ 465 Other assets 610 (5 ) 263 868 Total assets $ 13,566 $ (7 ) $ — $ 13,559 Long-term debt $ 1,227 $ (7 ) $ — $ 1,220 Total liabilities & equity $ 13,566 $ (7 ) $ — $ 13,559 |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jul. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations Discontinued operations are primarily comprised of Jiangsu Five Star Appliance Co., Limited ("Five Star") within our International segment. In February 2015, we completed the sale of Five Star and recognized a gain on sale of $99 million. Following the sale of Five Star, we continued to hold as available for sale one retail property in Shanghai, China. In May 2016, we completed the sale of the property and recognized a gain on sale of the property, net of income tax, of $16 million . The gain on sale of the property is included in Other, net in the Condensed Consolidated Statements of Cash Flows. The presentation of discontinued operations has been retrospectively applied to all prior periods presented. The aggregate financial results of discontinued operations were as follows ($ in millions): Three Months Ended Six Months Ended July 30, 2016 August 1, 2015 July 30, 2016 August 1, 2015 Revenue $ — $ 5 $ — $ 217 Gain (loss) from discontinued operations before income tax benefit (expense) 26 — 26 (10 ) Income tax benefit (expense) (10 ) — (7 ) 3 Gain on sale of discontinued operations — — — 99 Net gain from discontinued operations $ 16 $ — $ 19 $ 92 |
Fair Value Measurements (Notes)
Fair Value Measurements (Notes) | 6 Months Ended |
Jul. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. To measure fair value, we use a three-tier valuation hierarchy based upon observable and non-observable inputs: Level 1 — Unadjusted quoted prices that are available in active markets for the 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. Assets and Liabilities Measured at Fair Value on a Recurring Basis 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. The following table sets forth, by level within the fair value hierarchy, our financial assets and liabilities that were accounted for at fair value on a recurring basis at July 30, 2016 , January 30, 2016 , and August 1, 2015 , according to the valuation techniques we used to determine their fair values ($ in millions). Fair Value at Fair Value Hierarchy July 30, 2016 January 30, 2016 August 1, 2015 ASSETS Cash and cash equivalents Money market funds Level 1 $ 87 $ 51 $ 21 Commercial paper Level 2 — 265 65 Time deposits Level 2 169 306 62 Short-term investments Corporate bonds Level 2 6 193 402 Commercial paper Level 2 170 122 240 Time deposits Level 2 1,414 990 1,053 Other current assets Commercial paper Level 2 60 — — Foreign currency derivative instruments Level 2 1 18 21 Time deposits Level 2 79 79 90 Other assets Interest rate swap derivative instruments Level 2 27 25 13 Auction rate securities Level 3 2 2 2 Marketable securities that fund deferred compensation Level 1 95 96 98 LIABILITIES Accrued Liabilities Foreign currency derivative instruments Level 2 5 1 — There were no transfers between levels during the periods presented. In addition, there was no change in the beginning and ending balances of items measured at fair value on a recurring basis in the tables above that used significant unobservable inputs (Level 3) for the periods presented. The following methods and assumptions were used to estimate the fair value of each class of financial instrument: Money market funds. Our money market fund investments were measured at fair value as they trade in an active market using quoted market prices and, therefore, were classified as Level 1. Commercial paper. Our investments in commercial paper were measured using inputs based upon quoted prices for similar instruments in active markets and, therefore, were classified as Level 2. Time deposits. Our time deposits are balances held with banking institutions that cannot be withdrawn for specified terms without a penalty. Time deposits are held at face value plus accrued interest, which approximates fair value, and are classified as Level 2. Corporate bonds. Our corporate bond investments were measured at fair value using quoted market prices. They were classified as Level 2 as they trade in a non-active market for which bond prices are readily available. Foreign currency derivative instruments. Comprised primarily of foreign currency forward contracts and foreign currency swap contracts, our foreign currency derivative instruments were measured at fair value using readily observable market inputs, such as quotations on forward foreign exchange points and foreign interest rates. Our foreign currency derivative instruments were classified as Level 2 as these instruments are custom, over-the-counter contracts with various bank counterparties that are not traded in an active market. Interest rate swap derivative instruments. Our interest rate swap contracts were measured at fair value using readily observable inputs, such as the LIBOR interest rate. Our interest rate swap derivative instruments were classified as Level 2 as these instruments are custom, over-the-counter contracts with various bank counterparties that are not traded in an active market. Auction rate securities. Our investments in auction rate securities ("ARS") were classified as Level 3 as quoted prices were unavailable. Due to limited market information, we utilized a discounted cash flow ("DCF") model to derive an estimate of fair value. The assumptions we used in preparing the DCF model included estimates with respect to the amount and timing of future interest and principal payments, forward projections of the interest rate benchmarks, the probability of full repayment of the principal considering the credit quality and guarantees in place and the rate of return required by investors to own such securities given the current liquidity risk associated with ARS. Marketable securities that fund deferred compensation. The assets that fund our deferred compensation consist of investments in mutual funds. These investments were classified as Level 1 as the shares of these mutual funds trade with sufficient frequency and volume to enable us to obtain pricing information on an ongoing basis. Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis Assets and liabilities that are measured at fair value on a nonrecurring basis relate primarily to our tangible fixed assets, goodwill and other intangible assets, which are remeasured when the derived fair value is below carrying value on our Condensed 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 operating income in our Condensed Consolidated Statements of Earnings. The following table summarizes the fair value remeasurements for non-restructuring property and equipment impairments and restructuring impairments recorded during the three and six months ended July 30, 2016 , and August 1, 2015 ($ in millions): Impairments Remaining Net Carrying Value (1) Three Months Ended Six Months Ended July 30, 2016 August 1, 2015 July 30, 2016 August 1, 2015 July 30, 2016 August 1, 2015 Property and equipment (non-restructuring) $ 3 $ 15 $ 8 $ 26 $ — $ 9 Restructuring activities (2) Tradename — — — 40 — — Property and equipment — 1 7 30 — — Total $ 3 $ 16 $ 15 $ 96 $ — $ 9 (1) Remaining net carrying value approximates fair value. Because assets subject to long-lived asset impairment are not measured at fair value on a recurring basis, certain fair value measurements presented in the table may reflect values at earlier measurement dates and may no longer represent the fair values at July 30, 2016 , and August 1, 2015 . (2) See Note 5, Restructuring Charges , for additional information. All of the fair value remeasurements included in the table above were based on significant unobservable inputs (Level 3). Fixed asset fair values were derived using a 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 included our forecasts of net cash generated from revenue, expenses and other significant cash outflows, such as capital expenditures, as well as an appropriate discount rate. In the case of assets for which the impairment was the result of restructuring activities, no future cash flows have been assumed as the assets will cease to be used and expected sale values are nominal. Fair Value of Financial Instruments Our financial instruments, other than those presented in the disclosures above, include cash, receivables, other investments, accounts payable, other payables and long-term debt. The fair values of cash, receivables, accounts payable and other payables approximated carrying values because of the short-term nature of these instruments. If these instruments were measured at fair value in the financial statements, they would be classified as Level 1 in the fair value hierarchy. Fair values for other investments held at cost are not readily available, but we estimate that the carrying values for these investments approximate fair value. See Note 6, Debt , for information about the fair value of our long-term debt. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Notes) | 6 Months Ended |
Jul. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The carrying values of goodwill and indefinite-lived tradenames for the Domestic segment were $425 million and $18 million , respectively, at July 30, 2016 , and $425 million and $18 million , respectively, at January 30, 2016 . The changes in the carrying values of goodwill and indefinite-lived tradenames by segment were as follows in the six months ended August 1, 2015 ($ in millions): Goodwill Indefinite-lived Tradenames Domestic Domestic International Total Balances at January 31, 2015 $ 425 $ 18 $ 39 $ 57 Changes in foreign currency exchange rates — — 1 1 Canada brand restructuring (1) — — (40 ) (40 ) Balances at August 1, 2015 $ 425 $ 18 $ — $ 18 (1) Represents the Future Shop tradename impairment as a result of the Canadian brand consolidation in the first quarter of fiscal 2016. See Note 5, Restructuring Charges , for further discussion of the Canadian brand consolidation. The following table provides the gross carrying amount of goodwill and cumulative goodwill impairment ($ in millions): July 30, 2016 January 30, 2016 August 1, 2015 Gross Carrying Amount Cumulative Impairment Gross Carrying Amount Cumulative Impairment Gross Carrying Amount Cumulative Impairment Goodwill $ 1,100 $ (675 ) $ 1,100 $ (675 ) $ 1,100 $ (675 ) |
Restructuring Charges (Notes)
Restructuring Charges (Notes) | 6 Months Ended |
Jul. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges Charges incurred in the three and six months ended July 30, 2016 , and August 1, 2015 , for our restructuring activities were as follows ($ in millions): Three Months Ended Six Months Ended July 30, 2016 August 1, 2015 July 30, 2016 August 1, 2015 Renew Blue Phase 2 $ (2 ) $ — $ 25 $ — Canadian brand consolidation 2 (4 ) 1 184 Renew Blue (1) — — 3 (2 ) Other restructuring activities (2) — — — — Total restructuring charges $ — $ (4 ) $ 29 $ 182 (1) Represents activity related to our remaining vacant space liability, primarily in our International segment, for our Renew Blue restructuring program which began in the fourth quarter of fiscal 2013. We may continue to incur immaterial adjustments to the liability for changes in sublease assumptions or potential lease buyouts. In addition, lease payments for vacated stores will continue until leases expire or are terminated. The remaining vacant space liability was $10 million at July 30, 2016 . (2) Represents activity related to our remaining vacant space liability for U.S. large-format store closures in fiscal 2013. We may continue to incur immaterial adjustments to the liability for changes in sublease assumptions or potential lease buyouts. In addition, lease payments for vacated stores will continue until leases expire or are terminated. The remaining vacant space liability was $14 million at July 30, 2016 . Renew Blue Phase 2 In the first quarter of fiscal 2017, we took several strategic actions to eliminate and simplify certain components of our operations and restructure certain field and corporate teams as part of our Renew Blue Phase 2 plan. We recorded a benefit of $2 million and incurred charges of $25 million related to Phase 2 of the plan during the second quarter and first six months of fiscal 2017 , respectively. The benefit related to lower severance costs than expected and the charges incurred primarily consisted of employee termination benefits and property and equipment impairments. All restructuring charges related to this plan are from continuing operations and are presented in restructuring charges in our Condensed Consolidated Statements of Earnings. The composition of the restructuring charges we incurred during the three and six months ended July 30, 2016 for Renew Blue Phase 2 was as follows ($ in millions): Domestic July 30, 2016 Three Months Ended Six Months Ended Property and equipment impairments $ — $ 7 Termination benefits (2 ) 18 Total Renew Blue - Phase 2 restructuring charges $ (2 ) $ 25 The following table summarizes our restructuring accrual activity during the six months ended July 30, 2016 , related to termination benefits as a result of Renew Blue Phase 2 ($ in millions): Termination Benefits Balances at January 30, 2016 $ — Charges 19 Cash payments (15 ) Adjustments (1) (2 ) Balances at July 30, 2016 $ 2 (1) Adjustments to termination benefits represent changes in retention assumptions. Canadian Brand Consolidation In the first quarter of fiscal 2016, we consolidated the Future Shop and Best Buy stores and websites in Canada under the Best Buy brand. This resulted in the permanent closure of 66 Future Shop stores and the conversion of the remaining 65 Future Shop stores to the Best Buy brand. In the second quarter and first six months of fiscal 2017 , we incurred $2 million and $1 million of restructuring charges related to our Canadian brand consolidation, respectively, which was due to changes in our facility closure and other costs assumptions. In the second quarter of fiscal 2016, we recorded a benefit of $4 million related primarily to inventory write-downs. In the first six months of 2016 we incurred $184 million of restructuring charges, which primarily consisted of lease exit costs, a tradename impairment, property and equipment impairments, employee termination benefits and inventory write-downs. The inventory write-downs related to our Canadian brand consolidation are presented in restructuring charges – cost of goods sold in our Condensed Consolidated Statements of Earnings, and the remainder of the restructuring charges are presented in restructuring charges in our Condensed Consolidated Statements of Earnings. The composition of total restructuring charges we incurred for the Canadian brand consolidation in the three and six months ended July 30, 2016 , and August 1, 2015 , as well as the cumulative amount incurred through July 30, 2016 , was as follows ($ in millions): International Three Months Ended Six Months Ended July 30, 2016 August 1, 2015 July 30, 2016 August 1, 2015 Cumulative Amount Inventory write-downs $ — $ (3 ) $ — $ 5 $ 3 Property and equipment impairments — 1 — 30 30 Tradename impairment — — — 40 40 Termination benefits — — — 24 25 Facility closure and other costs 2 (2 ) 1 85 103 Total Canadian brand consolidation restructuring charges $ 2 $ (4 ) $ 1 $ 184 $ 201 The following tables summarize our restructuring accrual activity during the six months ended July 30, 2016 , and August 1, 2015 , related to termination benefits and facility closure and other costs associated with Canadian brand consolidation ($ in millions): Termination Benefits Facility Closure and Other Costs Total Balances at January 30, 2016 $ 2 $ 64 $ 66 Charges — 1 1 Cash payments (1 ) (18 ) (19 ) Adjustments (1) — (1 ) (1 ) Changes in foreign currency exchange rates — 4 4 Balances at July 30, 2016 $ 1 $ 50 $ 51 Termination Benefits Facility Closure and Other Costs Total Balances at January 31, 2015 $ — $ — $ — Charges 27 104 131 Cash payments (21 ) (18 ) (39 ) Adjustments (1) (2 ) (4 ) (6 ) Changes in foreign currency exchange rates — (3 ) (3 ) Balances at August 1, 2015 $ 4 $ 79 $ 83 (1) Adjustments to facility closure and other costs represent changes in sublease assumptions. Adjustments to termination benefits represent changes in retention assumptions. |
Debt (Notes)
Debt (Notes) | 6 Months Ended |
Jul. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt Short-Term Debt U.S. Revolving Credit Facility On June 27, 2016, we entered into a $1.25 billion five-year senior unsecured revolving credit facility agreement (the "Five-Year Facility Agreement") with a syndicate of banks. The Five-Year Facility Agreement replaced the previous $1.25 billion senior unsecured revolving credit facility (the "Previous Facility") with a syndicate of banks, which was originally scheduled to expire in June 2019, but was terminated on June 27, 2016. The Five-Year Facility Agreement permits borrowings up to $1.25 billion and expires in June 2021. At July 30, 2016 , there were no borrowings outstanding and $1.25 billion was available under the Five-Year Facility Agreement. In addition, there were no borrowings outstanding under the Previous Facility as of January 30, 2016 , and August 1, 2015 . The interest rate under the Five-Year Facility Agreement is variable and is determined at our option as: (i) the sum of (a) the greatest of (1) JPMorgan Chase Bank, N.A.'s prime rate, (2) the greater of the federal funds rate and the overnight bank funding rate plus, in each case, 0.5%, and (3) the one-month London Interbank Offered Rate (“LIBOR”), subject to certain adjustments plus 1%, and (b) a variable margin rate (the “ABR Margin”); or (ii) the LIBOR plus a variable margin rate (the “LIBOR Margin”). In addition, a facility fee is assessed on the commitment amount. The ABR Margin, LIBOR Margin and the facility fee are based upon our current senior unsecured debt rating. Under the Five-Year Facility Agreement, the ABR Margin ranges from 0.00% to 0.50%, the LIBOR Margin ranges from 0.90% to 1.50%, and the facility fee ranges from 0.100% to 0.250%. The Five-Year Facility Agreement is guaranteed by certain of our subsidiaries and contains customary affirmative and negative covenants materially consistent with the Previous Facility. Among other things, these covenants restrict us and certain of our subsidiaries' ability to incur certain types or amounts of indebtedness, incur liens on certain assets, make material changes in corporate structure or the nature of our business, dispose of material assets, engage in a change in control transaction, make certain foreign investments, enter into certain restrictive agreements or engage in certain transactions with affiliates. The Five-Year Facility Agreement also contains covenants that require us to maintain a maximum quarterly cash flow leverage ratio and a minimum quarterly interest coverage ratio (both ratios measured quarterly for the previous 12 months). The Five-Year Facility Agreement contains default provisions including, but not limited to, failure to pay interest or principal when due and failure to comply with covenants. Long-Term Debt Long-term debt consisted of the following ($ in millions): July 30, 2016 January 30, 2016 August 1, 2015 2016 Notes $ — $ 350 $ 350 2018 Notes 500 500 500 2021 Notes 650 650 650 Interest rate swap valuation adjustments 27 25 13 Subtotal 1,177 1,525 1,513 Debt discounts and issuance costs (6 ) (7 ) (8 ) Financing lease obligations 181 178 52 Capital lease obligations 32 38 45 Total long-term debt 1,384 1,734 1,602 Less: current portion (1) (43 ) (395 ) (382 ) Total long-term debt, less current portion $ 1,341 $ 1,339 $ 1,220 (1) Our 2016 Notes, due March 15, 2016, were classified in our current portion of long-term debt as of January 30, 2016 and August 1, 2015 , respectively. In March 2016, we repaid the 2016 Notes using existing cash resources. The fair value of total long-term debt, excluding debt discounts and issuance costs and financing and capital lease obligations, approximated $1,271 million , $1,543 million , and $1,572 million at July 30, 2016 , January 30, 2016 , and August 1, 2015 , respectively, based primarily on the market prices quoted from external sources, compared with carrying values of $1,177 million , $1,525 million , and $1,513 million , respectively. If long-term debt was measured at fair value in the financial statements, it would be classified primarily as Level 2 in the fair value hierarchy. See Note 5, Debt , in the Notes to Condensed Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended January 30, 2016 , for additional information regarding the terms of our debt facilities, debt instruments and other obligations. |
Derivative Instruments (Notes)
Derivative Instruments (Notes) | 6 Months Ended |
Jul. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments We manage our economic and transaction exposure to certain risks through the use of foreign currency derivative instruments and interest rate swaps. Our objective in holding derivatives is to reduce the volatility of net earnings, cash flows and net asset value associated with changes in foreign currency exchange rates and interest rates. We do not hold derivative instruments for trading or speculative purposes. We have no derivatives that have credit risk-related contingent features, and we mitigate our credit risk by engaging with major financial institutions as our counterparties. We record all derivative instruments on our Condensed Consolidated Balance Sheets at fair value and evaluate hedge effectiveness prospectively and retrospectively when electing to apply hedge accounting. We formally document all hedging relations at inception for derivative hedges and the underlying hedged items, as well as the risk management objectives and strategies for undertaking the hedge transaction. In addition, we have derivatives which are not designated as hedging instruments. Net Investment Hedges We use foreign exchange forward contracts to hedge against the effect of Canadian dollar exchange rate fluctuations on a portion of our net investment in our Canadian operations. The contracts have terms up to 12 months . For a net investment hedge, we recognize changes in the fair value of the derivative as a component of foreign currency translation within other comprehensive income to offset a portion of the change in translated value of the net investment being hedged, until the investment is sold or liquidated. We limit recognition in net earnings of amounts previously recorded in other comprehensive income to circumstances such as complete or substantially complete liquidation of the net investment in the hedged foreign operation. We report the ineffective portion of the gain or loss, if any, in net earnings. Interest Rate Swaps We use "receive fixed-rate, pay variable-rate" interest rate swaps to mitigate the effect of interest rate fluctuations on a portion of our 2018 Notes and 2021 Notes. Our interest rate swap contracts are considered perfect hedges because the critical terms and notional amounts match those of our fixed-rate debt being hedged and are therefore accounted as 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 Condensed 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 and on certain forecast inventory purchases denominated in non-functional currencies. The contracts generally have terms of up to 12 months. These derivative instruments are not designated as hedging relationships, and, therefore, we record gains and losses on these contracts directly to net earnings. Summary of Derivative Balances The following table presents the gross fair values for outstanding derivative instruments and the corresponding classification at July 30, 2016 , January 30, 2016 , and August 1, 2015 ($ in millions): July 30, 2016 January 30, 2016 August 1, 2015 Contract Type Assets Liabilities Assets Liabilities Assets Liabilities Derivatives designated as net investment hedges (1) $ 1 $ 5 $ 15 $ 1 $ 17 $ — Derivatives designated as interest rate swaps (2) 27 — 25 — 13 — No hedge designation (foreign exchange forward contracts) (1) — — 3 — 4 — Total $ 28 $ 5 $ 43 $ 1 $ 34 $ — (1) The fair value is recorded in other current assets or accrued liabilities. (2) The fair value is recorded in other assets or long-term liabilities. The following table presents the effects of derivative instruments on Other Comprehensive Income ("OCI") and on our Condensed Consolidated Statements of Earnings for the three and six months ended July 30, 2016 , and August 1, 2015 ($ in millions): Three Months Ended Six Months Ended July 30, 2016 August 1, 2015 July 30, 2016 August 1, 2015 Contract Type Pre-tax Gain(Loss) Recognized in OCI Gain(Loss) Reclassified from Accumulated OCI to Earnings (Effective Portion) Pre-tax Gain(Loss) Recognized in OCI Gain(Loss) Reclassified from Accumulated OCI to Earnings (Effective Portion) Pre-tax Gain(Loss) Recognized in OCI Gain(Loss) Reclassified from Accumulated OCI to Earnings (Effective Portion) Pre-tax Gain(Loss) Recognized in OCI Gain(Loss) Reclassified from Accumulated OCI to Earnings (Effective Portion) Derivatives designated as net investment hedges $ 8 $ — $ 15 $ — $ (16 ) $ — $ 6 $ — The following tables present the effects of derivative instruments on our Condensed Consolidated Statements of Earnings for the three and six months ended July 30, 2016 , and August 1, 2015 ($ in millions): Gain (Loss) Recognized within SG&A Three Months Ended Six Months Ended Contract Type July 30, 2016 August 1, 2015 July 30, 2016 August 1, 2015 No hedge designation (foreign exchange forward contracts) $ 2 $ 1 $ (3 ) $ (4 ) Gain (Loss) Recognized within Interest Expense Three Months Ended Six Months Ended Contract Type July 30, 2016 August 1, 2015 July 30, 2016 August 1, 2015 Interest rate swap gain $ 12 $ 8 $ 2 $ 12 Adjustments to carrying value of long-term debt (12 ) (8 ) (2 ) (12 ) Net impact on Condensed Consolidated Statements of Earnings $ — $ — $ — $ — The following table presents the notional amounts of our derivative instruments at July 30, 2016 , January 30, 2016 , and August 1, 2015 ($ in millions): Notional Amount Contract Type July 30, 2016 January 30, 2016 August 1, 2015 Derivatives designated as net investment hedges $ 203 $ 208 $ 207 Derivatives designated as interest rate swaps 750 750 750 No hedge designation (foreign exchange forward contracts) 41 94 163 Total $ 994 $ 1,052 $ 1,120 |
Earnings per Share (Notes)
Earnings per Share (Notes) | 6 Months Ended |
Jul. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share We compute our basic earnings per share based on the weighted-average number of common shares outstanding and our diluted earnings per share based on the weighted-average number of common shares outstanding adjusted by the number of additional shares that would have been outstanding had potentially dilutive common shares been issued. Potentially dilutive securities include stock options, nonvested share awards and shares issuable under our employee stock purchase plan. Nonvested market-based share awards and nonvested performance-based share awards are included in the average diluted shares outstanding for each period if established market or performance criteria have been met at the end of the respective periods. The following table presents a reconciliation of the numerators and denominators of basic and diluted earnings per share from continuing operations for the three and six months ended July 30, 2016 , and August 1, 2015 ($ and shares in millions): Three Months Ended Six Months Ended July 30, 2016 August 1, 2015 July 30, 2016 August 1, 2015 Numerator Net earnings from continuing operations $ 182 $ 164 $ 408 $ 201 Denominator Weighted-average common shares outstanding 320.8 349.6 322.2 351.0 Dilutive effect of stock compensation plan awards 2.1 4.3 2.6 4.8 Weighted-average common shares outstanding, assuming dilution 322.9 353.9 324.8 355.8 Net earnings per share from continuing operations Basic $ 0.57 $ 0.47 $ 1.27 $ 0.57 Diluted $ 0.56 $ 0.46 $ 1.26 $ 0.57 The computation of weighted-average common shares outstanding, assuming dilution, excluded options to purchase 8.8 million and 10.4 million shares of or common stock for the three months ended July 30, 2016 , and August 1, 2015 , respectively, and options to purchase 8.8 million and 10.4 million shares of our common stock for the six months ended July 30, 2016 , and August 1, 2015 , respectively. These amounts were excluded as the options’ exercise prices were greater than the average market price of our common stock for the periods presented, and, therefore, the effect would be anti-dilutive (i.e., including such options would result in higher earnings per share). |
Comprehensive Income (Notes)
Comprehensive Income (Notes) | 6 Months Ended |
Jul. 30, 2016 | |
Equity [Abstract] | |
Comprehensive Income | Comprehensive Income The following tables provide a reconciliation of the components of accumulated other comprehensive income, net of tax, attributable to Best Buy Co., Inc. for the three and six months ended July 30, 2016 , and August 1, 2015 ($ in millions): Foreign Currency Translation Balances at April 30, 2016 $ 316 Foreign currency translation adjustments (20 ) Balances at July 30, 2016 $ 296 Foreign Currency Translation Balances at January 30, 2016 $ 271 Foreign currency translation adjustments 25 Balances at July 30, 2016 $ 296 Foreign Currency Translation Balances at May 2, 2015 $ 330 Foreign currency translation adjustments (32 ) Balances at August 1, 2015 $ 298 Foreign Currency Translation Balances at January 31, 2015 $ 382 Foreign currency translation adjustments (17 ) Reclassification of foreign currency translation adjustments into earnings due to sale of business (67 ) Balances at August 1, 2015 $ 298 The gains and losses on our net investment hedges, which are included in foreign currency translation adjustments, were not material for the periods presented. There is generally no tax impact related to foreign currency translation adjustments, as the earnings are considered permanently reinvested. |
Repurchase of Common Stock (Not
Repurchase of Common Stock (Notes) | 6 Months Ended |
Jul. 30, 2016 | |
Equity [Abstract] | |
Repurchase of Common Stock [Text Block] | Repurchase of Common Stock We have a $5.0 billion share repurchase program that was authorized by our Board of Directors in June 2011. There is no expiration date governing the period over which we can repurchase shares under the June 2011 share repurchase program. As of January 30, 2016 , $3.0 billion remained available for share repurchases. On February 25, 2016, we announced our intent to repurchase up to an additional $1.0 billion over two years . On January 22, 2016, we entered into a variable notional accelerated share repurchase agreement ("ASR") with a third party financial institution to repurchase $150 million to $175 million of our common stock. Under the agreement, we paid $175 million at the beginning of the contract and received an initial delivery of 4.4 million shares on January 25, 2016 . We retired these shares and recorded a $120 million reduction to shareholders' equity. As of January 30, 2016 , the remaining $55 million was included as a reduction of shareholders' equity in Prepaid share repurchase in the Condensed Consolidated Balance Sheets. The ASR was settled on February 17, 2016, for a final notional amount of $165 million . Accordingly, we received 1.6 million shares, which were retired, and a $10 million cash payment from our counter-party equal to the difference between the $175 million up-front payment and the final notional amount. The following table presents information regarding the shares we repurchased during the three months and six months ended July 30, 2016 and August 1, 2015 ($, except per share amounts, and shares in millions): Three Months Ended Six Months Ended July 30, 2016 August 1, 2015 July 30, 2016 August 1, 2015 Total cost of shares repurchased Open market (1) $ 221 $ 324 $ 277 $ 324 Settlement of January 2016 ASR — — 45 — Total $ 221 $ 324 $ 322 $ 324 Average price per share Open market $ 30.65 $ 34.02 $ 30.98 $ 34.02 Settlement of January 2016 ASR $ — $ — $ 28.55 $ — Average $ 30.65 $ 34.02 $ 30.62 $ 34.02 Number of shares repurchased and retired Open market (1) 7.2 9.5 8.9 9.5 Settlement of January 2016 ASR — — 1.6 — Total 7.2 9.5 10.5 9.5 (1) As of July 30, 2016 , $5.8 million , or 0.2 million shares, in trades remained unsettled. As of August 1, 2015 , $2.5 million , or 0.1 million shares, in trades remained unsettled. The liability for unsettled trades is included in Accrued liabilities in the Condensed Consolidated Balance Sheets. At July 30, 2016 , approximately $2.7 billion remained available for additional purchases under the June 2011 share repurchase program. Repurchased shares are retired and constitute authorized but unissued shares. |
Segments (Notes)
Segments (Notes) | 6 Months Ended |
Jul. 30, 2016 | |
Segment Reporting [Abstract] | |
Segments | Segments Our chief operating decision maker ("CODM") is our Chief Executive Officer. Our business is organized into two segments: Domestic (which is comprised of all operations within the U.S. and its districts and territories) and International (which is comprised of all operations outside the U.S. and its territories). Our CODM has ultimate responsibility for enterprise decisions. Our CODM determines, in particular, resource allocation for, and monitors performance of, the consolidated enterprise, the Domestic segment and the International segment. The Domestic and International segment managers have responsibility for operating decisions, allocating resources and assessing performance within their respective segments. Our CODM relies on internal management reporting that analyzes enterprise results to the net earnings level and segment results to the operating income level. We aggregate our Canada and Mexico businesses into one International operating segment. Our Domestic and International operating segments also represent our reportable segments. The accounting policies of the segments are the same as those described in Note 1, Summary of Significant Accounting Policies , in the Notes to Condensed Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended January 30, 2016 . Revenue by reportable segment was as follows ($ in millions): Three Months Ended Six Months Ended July 30, 2016 August 1, 2015 July 30, 2016 August 1, 2015 Domestic $ 7,889 $ 7,878 $ 15,718 $ 15,768 International 644 650 1,258 1,318 Total revenue $ 8,533 $ 8,528 $ 16,976 $ 17,086 Operating income (loss) by reportable segment and the reconciliation to earnings from continuing operations before income tax expense were as follows ($ in millions): Three Months Ended Six Months Ended July 30, 2016 August 1, 2015 July 30, 2016 August 1, 2015 Domestic $ 289 $ 309 $ 661 $ 613 International — (21 ) — (239 ) Total operating income 289 288 661 374 Other income (expense) Gain on sale of investments — — 2 2 Investment income and other 8 4 14 11 Interest expense (18 ) (20 ) (38 ) (40 ) Earnings from continuing operations before income tax expense $ 279 $ 272 $ 639 $ 347 Assets by reportable segment were as follows ($ in millions): July 30, 2016 January 30, 2016 August 1, 2015 Domestic $ 11,968 $ 12,318 $ 12,328 International 1,286 1,201 1,231 Total assets $ 13,254 $ 13,519 $ 13,559 |
Contingencies (Notes)
Contingencies (Notes) | 6 Months Ended |
Jul. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies We are involved in a number of legal proceedings. Where appropriate, we have made accruals with respect to these matters, which are reflected in our Condensed Consolidated Financial Statements. However, there are cases where liability is not probable or the amount cannot be reasonably estimated and, therefore, accruals have not been made. We provide disclosure of matters where we believe it is reasonably possible the impact may be material to our Condensed Consolidated Financial Statements. Securities Actions In February 2011, a purported class action lawsuit captioned, IBEW Local 98 Pension Fund, individually and on behalf of all others similarly situated v. Best Buy Co., Inc., et al. , was filed against us and certain of our executive officers in the U.S. District Court for the District of Minnesota. This federal court action alleges, among other things, that we and the officers named in the complaint violated Sections 10(b) and 20A of the Exchange Act and Rule 10b-5 under the Exchange Act in connection with press releases and other statements relating to our fiscal 2011 earnings guidance that had been made available to the public. Additionally, in March 2011, a similar purported class action was filed by a single shareholder, Rene LeBlanc, against us and certain of our executive officers in the same court. In July 2011, after consolidation of the IBEW Local 98 Pension Fund and Rene LeBlanc actions, a consolidated complaint captioned, IBEW Local 98 Pension Fund v. Best Buy Co., Inc., et al. , was filed and served. We filed a motion to dismiss the consolidated complaint in September 2011, and in March 2012, subsequent to the end of fiscal 2012, the court issued a decision dismissing the action with prejudice. In April 2012, the plaintiffs filed a motion to alter or amend the court's decision on our motion to dismiss. In October 2012, the court granted plaintiff's motion to alter or amend the court's decision on our motion to dismiss in part by vacating such decision and giving plaintiff leave to file an amended complaint, which plaintiff did in October 2012. We filed a motion to dismiss the amended complaint in November 2012 and all responsive pleadings were filed in December 2012. A hearing was held on April 26, 2013. On August 5, 2013, the court issued an order granting our motion to dismiss in part and, contrary to its March 2012 order, denying the motion to dismiss in part, holding that certain of the statements alleged to have been made were not forward-looking statements and therefore were not subject to the “safe-harbor” provisions of the Private Securities Litigation Reform Act. Plaintiffs moved to certify the purported class. By Order filed August 6, 2014, the court certified a class of persons or entities who acquired Best Buy common stock between 10:00 a.m. EDT on September 14, 2010, and December 13, 2010, and who were damaged by the alleged violations of law. The 8th Circuit Court of Appeals granted our request for interlocutory appeal. On April 12, 2016, the 8th Circuit held the trial court misapplied the law and reversed the class certification order. IBEW petitioned the 8th Circuit for a rehearing en banc , which was denied on June 1, 2016. We await a decision by IBEW as to whether it will appeal. We continue to believe that these allegations are without merit and intend to vigorously defend our company in this matter. In June 2011, a purported shareholder derivative action captioned, Salvatore M. Talluto, Derivatively and on Behalf of Best Buy Co., Inc. v. Richard M. Schulze, et al. , as Defendants and Best Buy Co., Inc. as Nominal Defendant, was filed against both present and former members of our Board of Directors serving during the relevant periods in fiscal 2011 and us as a nominal defendant in the U.S. District Court for the State of Minnesota. The lawsuit alleges that the director defendants breached their fiduciary duty, among other claims, including violation of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, in failing to correct public misrepresentations and material misstatements and/or omissions regarding our fiscal 2011 earnings projections and, for certain directors, selling stock while in possession of material adverse non-public information. Additionally, in July 2011, a similar purported class action was filed by a single shareholder, Daniel Himmel, against us and certain of our executive officers in the same court. In November 2011, the respective lawsuits of Salvatore M. Talluto and Daniel Himmel were consolidated into a new action captioned, In Re: Best Buy Co., Inc. Shareholder Derivative Litigation , and a stay ordered pending the close of discovery in the consolidated IBEW Local 98 Pension Fund v. Best Buy Co., Inc., et al. case. Additionally, in June 2015, a similar purported class action was filed by a single shareholder, Khuong Tran, derivatively on behalf of Best Buy Co., Inc. against us and certain of our executive officers and directors in the same court. The Tran lawsuit has also been stayed pending the close of discovery in IBEW. The plaintiffs in the above securities actions seek damages, including interest, equitable relief and reimbursement of the costs and expenses they incurred in the lawsuits. As stated above, we believe the allegations in the above securities actions are without merit, and we intend to defend these actions vigorously. Based on our assessment of the facts underlying the claims in the above securities actions, their respective procedural litigation history and the degree to which we intend to defend our company in these matters, the amount or range of reasonably possible losses, if any, cannot be estimated. Cathode Ray Tube Action On November 14, 2011, we filed a lawsuit captioned In re Cathode Ray Tube Antitrust Litigation in the United States District Court for the Northern District of California. We alleged that the defendants engaged in price fixing in violation of antitrust regulations relating to cathode ray tubes for the time period between March 1, 1995, through November 25, 2007. In connection with this action, we received settlement proceeds, net of legal expenses and costs, in the amount of $75 million during fiscal 2016. In the first quarter of fiscal 2017, we settled with the remaining defendants for $161 million , net of legal expenses and costs; $127 million of which we have received and $34 million of which we expect to receive in January 2017 or earlier. Settlement proceeds were recognized in Cost of goods sold with the associated legal expenses recorded in SG&A. This matter is now resolved. Other Legal Proceedings We are involved in various other legal proceedings arising in the normal course of conducting business. For such legal proceedings, we have accrued an amount that reflects the aggregate liability deemed probable and estimable, but this amount is not material to our consolidated financial position, results of operations or cash flows. Because of the preliminary nature of many of these proceedings, the difficulty in ascertaining the applicable facts relating to many of these proceedings, the variable treatment of claims made in many of these proceedings and the difficulty of predicting the settlement value of many of these proceedings, we are not able to estimate an amount or range of any reasonably possible additional losses. However, based upon our historical experience, the resolution of these proceedings is not expected to have a material effect on our consolidated financial position, results of operations or cash flows. |
Basis of Presentation Basis of
Basis of Presentation Basis of Presentation (Tables) | 6 Months Ended |
Aug. 01, 2015 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | The following table reconciles the balance sheet line items impacted by the adoption of these standards at August 1, 2015 : Balance Sheet August 1, 2015 Reported ASU 2015-03 & 2015-15 Adjustments ASU 2015-17 Adjustments August 1, 2015 Adjusted Other current assets $ 730 $ (2 ) $ (263 ) $ 465 Other assets 610 (5 ) 263 868 Total assets $ 13,566 $ (7 ) $ — $ 13,559 Long-term debt $ 1,227 $ (7 ) $ — $ 1,220 Total liabilities & equity $ 13,566 $ (7 ) $ — $ 13,559 |
Discontinued Operations Discont
Discontinued Operations Discontinued Operations (Tables) | 6 Months Ended |
Jul. 30, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures | The aggregate financial results of discontinued operations were as follows ($ in millions): Three Months Ended Six Months Ended July 30, 2016 August 1, 2015 July 30, 2016 August 1, 2015 Revenue $ — $ 5 $ — $ 217 Gain (loss) from discontinued operations before income tax benefit (expense) 26 — 26 (10 ) Income tax benefit (expense) (10 ) — (7 ) 3 Gain on sale of discontinued operations — — — 99 Net gain from discontinued operations $ 16 $ — $ 19 $ 92 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jul. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table sets forth, by level within the fair value hierarchy, our financial assets and liabilities that were accounted for at fair value on a recurring basis at July 30, 2016 , January 30, 2016 , and August 1, 2015 , according to the valuation techniques we used to determine their fair values ($ in millions). Fair Value at Fair Value Hierarchy July 30, 2016 January 30, 2016 August 1, 2015 ASSETS Cash and cash equivalents Money market funds Level 1 $ 87 $ 51 $ 21 Commercial paper Level 2 — 265 65 Time deposits Level 2 169 306 62 Short-term investments Corporate bonds Level 2 6 193 402 Commercial paper Level 2 170 122 240 Time deposits Level 2 1,414 990 1,053 Other current assets Commercial paper Level 2 60 — — Foreign currency derivative instruments Level 2 1 18 21 Time deposits Level 2 79 79 90 Other assets Interest rate swap derivative instruments Level 2 27 25 13 Auction rate securities Level 3 2 2 2 Marketable securities that fund deferred compensation Level 1 95 96 98 LIABILITIES Accrued Liabilities Foreign currency derivative instruments Level 2 5 1 — |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis | The following table summarizes the fair value remeasurements for non-restructuring property and equipment impairments and restructuring impairments recorded during the three and six months ended July 30, 2016 , and August 1, 2015 ($ in millions): Impairments Remaining Net Carrying Value (1) Three Months Ended Six Months Ended July 30, 2016 August 1, 2015 July 30, 2016 August 1, 2015 July 30, 2016 August 1, 2015 Property and equipment (non-restructuring) $ 3 $ 15 $ 8 $ 26 $ — $ 9 Restructuring activities (2) Tradename — — — 40 — — Property and equipment — 1 7 30 — — Total $ 3 $ 16 $ 15 $ 96 $ — $ 9 (1) Remaining net carrying value approximates fair value. Because assets subject to long-lived asset impairment are not measured at fair value on a recurring basis, certain fair value measurements presented in the table may reflect values at earlier measurement dates and may no longer represent the fair values at July 30, 2016 , and August 1, 2015 . (2) See Note 5, Restructuring Charges , for additional information. |
Goodwill and Intangible Asset25
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jul. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill, by Segment | The changes in the carrying values of goodwill and indefinite-lived tradenames by segment were as follows in the six months ended August 1, 2015 ($ in millions): Goodwill Indefinite-lived Tradenames Domestic Domestic International Total Balances at January 31, 2015 $ 425 $ 18 $ 39 $ 57 Changes in foreign currency exchange rates — — 1 1 Canada brand restructuring (1) — — (40 ) (40 ) Balances at August 1, 2015 $ 425 $ 18 $ — $ 18 (1) Represents the Future Shop tradename impairment as a result of the Canadian brand consolidation in the first quarter of fiscal 2016. See Note 5, Restructuring Charges , for further discussion of the Canadian brand consolidation. |
Schedule of Gross Amount of Goodwill and Accumulated Goodwill Impairment Losses | The following table provides the gross carrying amount of goodwill and cumulative goodwill impairment ($ in millions): July 30, 2016 January 30, 2016 August 1, 2015 Gross Carrying Amount Cumulative Impairment Gross Carrying Amount Cumulative Impairment Gross Carrying Amount Cumulative Impairment Goodwill $ 1,100 $ (675 ) $ 1,100 $ (675 ) $ 1,100 $ (675 ) |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 6 Months Ended |
Jul. 30, 2016 | |
Restructuring Cost and Reserve [Line Items] | |
Composition of Restructuring Charges | Charges incurred in the three and six months ended July 30, 2016 , and August 1, 2015 , for our restructuring activities were as follows ($ in millions): Three Months Ended Six Months Ended July 30, 2016 August 1, 2015 July 30, 2016 August 1, 2015 Renew Blue Phase 2 $ (2 ) $ — $ 25 $ — Canadian brand consolidation 2 (4 ) 1 184 Renew Blue (1) — — 3 (2 ) Other restructuring activities (2) — — — — Total restructuring charges $ — $ (4 ) $ 29 $ 182 (1) Represents activity related to our remaining vacant space liability, primarily in our International segment, for our Renew Blue restructuring program which began in the fourth quarter of fiscal 2013. We may continue to incur immaterial adjustments to the liability for changes in sublease assumptions or potential lease buyouts. In addition, lease payments for vacated stores will continue until leases expire or are terminated. The remaining vacant space liability was $10 million at July 30, 2016 . (2) Represents activity related to our remaining vacant space liability for U.S. large-format store closures in fiscal 2013. We may continue to incur immaterial adjustments to the liability for changes in sublease assumptions or potential lease buyouts. In addition, lease payments for vacated stores will continue until leases expire or are terminated. The remaining vacant space liability was $14 million at July 30, 2016 . |
Restructuring Program Renew Blue Phase 2 [Member] [Domain] | |
Restructuring Cost and Reserve [Line Items] | |
Composition of Restructuring Charges | The composition of the restructuring charges we incurred during the three and six months ended July 30, 2016 for Renew Blue Phase 2 was as follows ($ in millions): Domestic July 30, 2016 Three Months Ended Six Months Ended Property and equipment impairments $ — $ 7 Termination benefits (2 ) 18 Total Renew Blue - Phase 2 restructuring charges $ (2 ) $ 25 |
Restructuring Accrual Activity | The following table summarizes our restructuring accrual activity during the six months ended July 30, 2016 , related to termination benefits as a result of Renew Blue Phase 2 ($ in millions): Termination Benefits Balances at January 30, 2016 $ — Charges 19 Cash payments (15 ) Adjustments (1) (2 ) Balances at July 30, 2016 $ 2 |
Restructuring Program Canadian Brand Consolidation [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Composition of Restructuring Charges | International Three Months Ended Six Months Ended July 30, 2016 August 1, 2015 July 30, 2016 August 1, 2015 Cumulative Amount Inventory write-downs $ — $ (3 ) $ — $ 5 $ 3 Property and equipment impairments — 1 — 30 30 Tradename impairment — — — 40 40 Termination benefits — — — 24 25 Facility closure and other costs 2 (2 ) 1 85 103 Total Canadian brand consolidation restructuring charges $ 2 $ (4 ) $ 1 $ 184 $ 201 |
Restructuring Accrual Activity | Termination Benefits Facility Closure and Other Costs Total Balances at January 30, 2016 $ 2 $ 64 $ 66 Charges — 1 1 Cash payments (1 ) (18 ) (19 ) Adjustments (1) — (1 ) (1 ) Changes in foreign currency exchange rates — 4 4 Balances at July 30, 2016 $ 1 $ 50 $ 51 Termination Benefits Facility Closure and Other Costs Total Balances at January 31, 2015 $ — $ — $ — Charges 27 104 131 Cash payments (21 ) (18 ) (39 ) Adjustments (1) (2 ) (4 ) (6 ) Changes in foreign currency exchange rates — (3 ) (3 ) Balances at August 1, 2015 $ 4 $ 79 $ 83 (1) Adjustments to facility closure and other costs represent changes in sublease assumptions. Adjustments to termination benefits represent changes in retention assumptions. |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jul. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt consisted of the following ($ in millions): July 30, 2016 January 30, 2016 August 1, 2015 2016 Notes $ — $ 350 $ 350 2018 Notes 500 500 500 2021 Notes 650 650 650 Interest rate swap valuation adjustments 27 25 13 Subtotal 1,177 1,525 1,513 Debt discounts and issuance costs (6 ) (7 ) (8 ) Financing lease obligations 181 178 52 Capital lease obligations 32 38 45 Total long-term debt 1,384 1,734 1,602 Less: current portion (1) (43 ) (395 ) (382 ) Total long-term debt, less current portion $ 1,341 $ 1,339 $ 1,220 (1) Our 2016 Notes, due March 15, 2016, were classified in our current portion of long-term debt as of January 30, 2016 and August 1, 2015 , respectively. In March 2016, we repaid the 2016 Notes using existing cash resources. |
Derivative Instruments Derivati
Derivative Instruments Derivative Instruments (Tables) | 6 Months Ended |
Jul. 30, 2016 | |
Derivatives, Fair Value [Line Items] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The following table presents the gross fair values for outstanding derivative instruments and the corresponding classification at July 30, 2016 , January 30, 2016 , and August 1, 2015 ($ in millions): July 30, 2016 January 30, 2016 August 1, 2015 Contract Type Assets Liabilities Assets Liabilities Assets Liabilities Derivatives designated as net investment hedges (1) $ 1 $ 5 $ 15 $ 1 $ 17 $ — Derivatives designated as interest rate swaps (2) 27 — 25 — 13 — No hedge designation (foreign exchange forward contracts) (1) — — 3 — 4 — Total $ 28 $ 5 $ 43 $ 1 $ 34 $ — (1) The fair value is recorded in other current assets or accrued liabilities. (2) The fair value is recorded in other assets or long-term liabilities. |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block] | The following table presents the effects of derivative instruments on Other Comprehensive Income ("OCI") and on our Condensed Consolidated Statements of Earnings for the three and six months ended July 30, 2016 , and August 1, 2015 ($ in millions): Three Months Ended Six Months Ended July 30, 2016 August 1, 2015 July 30, 2016 August 1, 2015 Contract Type Pre-tax Gain(Loss) Recognized in OCI Gain(Loss) Reclassified from Accumulated OCI to Earnings (Effective Portion) Pre-tax Gain(Loss) Recognized in OCI Gain(Loss) Reclassified from Accumulated OCI to Earnings (Effective Portion) Pre-tax Gain(Loss) Recognized in OCI Gain(Loss) Reclassified from Accumulated OCI to Earnings (Effective Portion) Pre-tax Gain(Loss) Recognized in OCI Gain(Loss) Reclassified from Accumulated OCI to Earnings (Effective Portion) Derivatives designated as net investment hedges $ 8 $ — $ 15 $ — $ (16 ) $ — $ 6 $ — |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] | The following tables present the effects of derivative instruments on our Condensed Consolidated Statements of Earnings for the three and six months ended July 30, 2016 , and August 1, 2015 ($ in millions): Gain (Loss) Recognized within SG&A Three Months Ended Six Months Ended Contract Type July 30, 2016 August 1, 2015 July 30, 2016 August 1, 2015 No hedge designation (foreign exchange forward contracts) $ 2 $ 1 $ (3 ) $ (4 ) |
Schedule of Interest Rate Derivatives [Table Text Block] | Gain (Loss) Recognized within Interest Expense Three Months Ended Six Months Ended Contract Type July 30, 2016 August 1, 2015 July 30, 2016 August 1, 2015 Interest rate swap gain $ 12 $ 8 $ 2 $ 12 Adjustments to carrying value of long-term debt (12 ) (8 ) (2 ) (12 ) Net impact on Condensed Consolidated Statements of Earnings $ — $ — $ — $ — |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | The following table presents the notional amounts of our derivative instruments at July 30, 2016 , January 30, 2016 , and August 1, 2015 ($ in millions): Notional Amount Contract Type July 30, 2016 January 30, 2016 August 1, 2015 Derivatives designated as net investment hedges $ 203 $ 208 $ 207 Derivatives designated as interest rate swaps 750 750 750 No hedge designation (foreign exchange forward contracts) 41 94 163 Total $ 994 $ 1,052 $ 1,120 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jul. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | The following table presents a reconciliation of the numerators and denominators of basic and diluted earnings per share from continuing operations for the three and six months ended July 30, 2016 , and August 1, 2015 ($ and shares in millions): Three Months Ended Six Months Ended July 30, 2016 August 1, 2015 July 30, 2016 August 1, 2015 Numerator Net earnings from continuing operations $ 182 $ 164 $ 408 $ 201 Denominator Weighted-average common shares outstanding 320.8 349.6 322.2 351.0 Dilutive effect of stock compensation plan awards 2.1 4.3 2.6 4.8 Weighted-average common shares outstanding, assuming dilution 322.9 353.9 324.8 355.8 Net earnings per share from continuing operations Basic $ 0.57 $ 0.47 $ 1.27 $ 0.57 Diluted $ 0.56 $ 0.46 $ 1.26 $ 0.57 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 6 Months Ended |
Jul. 30, 2016 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables provide a reconciliation of the components of accumulated other comprehensive income, net of tax, attributable to Best Buy Co., Inc. for the three and six months ended July 30, 2016 , and August 1, 2015 ($ in millions): Foreign Currency Translation Balances at April 30, 2016 $ 316 Foreign currency translation adjustments (20 ) Balances at July 30, 2016 $ 296 Foreign Currency Translation Balances at January 30, 2016 $ 271 Foreign currency translation adjustments 25 Balances at July 30, 2016 $ 296 Foreign Currency Translation Balances at May 2, 2015 $ 330 Foreign currency translation adjustments (32 ) Balances at August 1, 2015 $ 298 Foreign Currency Translation Balances at January 31, 2015 $ 382 Foreign currency translation adjustments (17 ) Reclassification of foreign currency translation adjustments into earnings due to sale of business (67 ) Balances at August 1, 2015 $ 298 |
Repurchase of Common Stock (Tab
Repurchase of Common Stock (Tables) | 6 Months Ended |
Jul. 30, 2016 | |
Schedule of Repurchases of Common Stock [Abstract] | |
Schedule of Repurchases of Common Stock [Table Text Block] | The following table presents information regarding the shares we repurchased during the three months and six months ended July 30, 2016 and August 1, 2015 ($, except per share amounts, and shares in millions): Three Months Ended Six Months Ended July 30, 2016 August 1, 2015 July 30, 2016 August 1, 2015 Total cost of shares repurchased Open market (1) $ 221 $ 324 $ 277 $ 324 Settlement of January 2016 ASR — — 45 — Total $ 221 $ 324 $ 322 $ 324 Average price per share Open market $ 30.65 $ 34.02 $ 30.98 $ 34.02 Settlement of January 2016 ASR $ — $ — $ 28.55 $ — Average $ 30.65 $ 34.02 $ 30.62 $ 34.02 Number of shares repurchased and retired Open market (1) 7.2 9.5 8.9 9.5 Settlement of January 2016 ASR — — 1.6 — Total 7.2 9.5 10.5 9.5 (1) As of July 30, 2016 , $5.8 million , or 0.2 million shares, in trades remained unsettled. As of August 1, 2015 , $2.5 million , or 0.1 million shares, in trades remained unsettled. The liability for unsettled trades is included in Accrued liabilities in the Condensed Consolidated Balance Sheets. |
Segments (Tables)
Segments (Tables) | 6 Months Ended |
Jul. 30, 2016 | |
Segment Reporting [Abstract] | |
Business Segment Information | Revenue by reportable segment was as follows ($ in millions): Three Months Ended Six Months Ended July 30, 2016 August 1, 2015 July 30, 2016 August 1, 2015 Domestic $ 7,889 $ 7,878 $ 15,718 $ 15,768 International 644 650 1,258 1,318 Total revenue $ 8,533 $ 8,528 $ 16,976 $ 17,086 Operating income (loss) by reportable segment and the reconciliation to earnings from continuing operations before income tax expense were as follows ($ in millions): Three Months Ended Six Months Ended July 30, 2016 August 1, 2015 July 30, 2016 August 1, 2015 Domestic $ 289 $ 309 $ 661 $ 613 International — (21 ) — (239 ) Total operating income 289 288 661 374 Other income (expense) Gain on sale of investments — — 2 2 Investment income and other 8 4 14 11 Interest expense (18 ) (20 ) (38 ) (40 ) Earnings from continuing operations before income tax expense $ 279 $ 272 $ 639 $ 347 Assets by reportable segment were as follows ($ in millions): July 30, 2016 January 30, 2016 August 1, 2015 Domestic $ 11,968 $ 12,318 $ 12,328 International 1,286 1,201 1,231 Total assets $ 13,254 $ 13,519 $ 13,559 |
Basis of Presentation (Details)
Basis of Presentation (Details) $ in Millions | 6 Months Ended | ||
Jul. 30, 2016USD ($) | Aug. 01, 2015USD ($) | Jan. 30, 2016USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Number of Weeks in Fiscal Period | 26 | 26 | |
Reporting period lag for consolidation of financial results | 1 month | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Other Assets, Current | $ 409 | $ 465 | $ 392 |
Other Assets | 868 | ||
Assets | 13,254 | 13,559 | 13,519 |
Long-term Debt, Excluding Current Maturities | 1,341 | 1,220 | 1,339 |
Liabilities and Equity | $ 13,254 | 13,559 | $ 13,519 |
Accounting Standards Update 2015-03 and 2015-15 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Other Assets, Current | (2) | ||
Other Assets | (5) | ||
Assets | (7) | ||
Long-term Debt, Excluding Current Maturities | (7) | ||
Liabilities and Equity | (7) | ||
Accounting Standards Update 2015-17 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Other Assets, Current | (263) | ||
Other Assets | 263 | ||
Assets | 0 | ||
As reported [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Other Assets, Current | 730 | ||
Other Assets | 610 | ||
Assets | 13,566 | ||
Long-term Debt, Excluding Current Maturities | 1,227 | ||
Liabilities and Equity | $ 13,566 |
Discontinued Operations Disco34
Discontinued Operations Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2016 | Aug. 01, 2015 | Jul. 30, 2016 | Aug. 01, 2015 | |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||||
Revenue | $ 0 | $ 5 | $ 0 | $ 217 |
Gain (loss) from discontinued operations before income tax benefit (expense) | 26 | 0 | 26 | (10) |
Income tax benefit (expense) | (10) | 0 | (7) | 3 |
Gain on sale of discontinued operations | 0 | 0 | 0 | 99 |
Net gain from discontinued operations | $ 16 | $ 0 | $ 19 | $ 92 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions | Jul. 30, 2016 | Jan. 30, 2016 | Aug. 01, 2015 |
Cash and Cash Equivalents [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Money Market Funds [Member] | |||
Assets | |||
Cash and cash equivalents | $ 87 | $ 51 | $ 21 |
Cash and Cash Equivalents [Member] | Significant Other Observable Inputs (Level 2) [Member] | Commercial Paper [Member] | |||
Assets | |||
Cash and cash equivalents | 0 | 265 | 65 |
Cash and Cash Equivalents [Member] | Significant Other Observable Inputs (Level 2) [Member] | Time Deposits [Member] | |||
Assets | |||
Cash and cash equivalents | 169 | 306 | 62 |
Other Current Assets [Member] | Significant Other Observable Inputs (Level 2) [Member] | Foreign Exchange and Other Derivative Financial Instruments [Member] | |||
Assets | |||
Foreign Currency Contract, Asset, Fair Value Disclosure | 1 | 18 | 21 |
Other Current Assets [Member] | Significant Other Observable Inputs (Level 2) [Member] | Commercial Paper [Member] | |||
Assets | |||
Foreign Currency Contract, Asset, Fair Value Disclosure | 60 | 0 | 0 |
Other Current Assets [Member] | Significant Other Observable Inputs (Level 2) [Member] | Time Deposits [Member] | |||
Assets | |||
Other Current Assets | 79 | 79 | 90 |
Short-term Investments [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate Bond Securities [Member] | |||
Assets | |||
Short-term investments | 6 | 193 | 402 |
Short-term Investments [Member] | Significant Other Observable Inputs (Level 2) [Member] | Commercial Paper [Member] | |||
Assets | |||
Short-term investments | 170 | 122 | 240 |
Short-term Investments [Member] | Significant Other Observable Inputs (Level 2) [Member] | Time Deposits [Member] | |||
Assets | |||
Short-term investments | 1,414 | 990 | 1,053 |
Other Assets [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Marketable securities that fund deferred compensation [Member] | |||
Assets | |||
Marketable Equity Securities that Fund Deferred Compensation, Fair Value Disclosure | 95 | 96 | 98 |
Other Assets [Member] | Significant Other Observable Inputs (Level 2) [Member] | Interest Rate Swap [Member] | |||
Assets | |||
Other Assets | 27 | 25 | 13 |
Other Assets [Member] | Significant Unobservable Inputs (Level 3) [Member] | Auction Rate Securities [Member] | |||
Assets | |||
Other Assets | 2 | 2 | 2 |
Accrued Liabilities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Foreign Exchange and Other Derivative Financial Instruments [Member] | |||
Liabilities | |||
Foreign Currency Contracts, Liability, Fair Value Disclosure | $ 5 | $ 1 | $ 0 |
Fair Value Measurements - Nonre
Fair Value Measurements - Nonrecurring (Details) - Continuing Operations [Member] - Fair Value, Measurements, Nonrecurring [Member] - Significant Unobservable Inputs (Level 3) [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 30, 2016 | Aug. 01, 2015 | Jul. 30, 2016 | Aug. 01, 2015 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Property and equipment, impairments | $ 3 | $ 15 | $ 8 | $ 26 | |
Property and equipment, remaining net carrying value | [1] | 0 | 9 | 0 | 9 |
Total remaining net carrying value | 0 | 9 | 0 | 9 | |
Total impairments | 3 | 16 | 15 | 96 | |
Impairment of Intangible Assets Related to Restructuring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Tradename, impairments | [2] | 0 | 0 | 0 | 40 |
Property and equipment write-downs [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Property and equipment, impairments | [2] | 0 | 1 | 7 | 30 |
Property and equipment, remaining net carrying value | [1] | $ 0 | $ 0 | $ 0 | $ 0 |
[1] | Remaining net carrying value approximates fair value. | ||||
[2] | See Note 5, Restructuring Charges, for additional information. |
Goodwill and Intangible Asset37
Goodwill and Intangible Assets (Details) - USD ($) $ in Millions | 6 Months Ended | ||||
Aug. 01, 2015 | Jul. 30, 2016 | Jan. 30, 2016 | Aug. 01, 2015 | ||
Schedule of Goodwill and Indefinite Lived Intangible Assets by Segment [Line Items] | |||||
Goodwill | $ 425 | $ 425 | $ 425 | $ 425 | |
Intangible Assets, Net (Excluding Goodwill) | 18 | 18 | 18 | ||
Goodwill [Roll Forward] | |||||
Goodwill, Balance at the end of the period | 425 | ||||
Indefinite-lived Tradenames [Roll Forward] | |||||
Indefinite-Lived Tradenames, Beginning balance | 57 | ||||
Indefinite-lived Intangible Assets, Translation Adjustments | 1 | ||||
Indefinite-lived Intangible Assets, Translation and Purchase Accounting Adjustments | [1] | (40) | |||
Indefinite-lived Tradenames, Ending balance | 18 | ||||
Gross amount of goodwill and the accumulated goodwill impairment losses | |||||
Gross Carrying Amount | 1,100 | 1,100 | 1,100 | ||
Cumulative Impairment | (675) | (675) | (675) | ||
Domestic [Member] | |||||
Schedule of Goodwill and Indefinite Lived Intangible Assets by Segment [Line Items] | |||||
Goodwill | 425 | $ 425 | $ 425 | $ 425 | |
Goodwill [Roll Forward] | |||||
Goodwill, Balance at the beginning of the period | 425 | ||||
Goodwill, Changes in foreign currency exchange rates | 0 | ||||
Goodwill, Impairments | 0 | ||||
Goodwill, Balance at the end of the period | 425 | ||||
Indefinite-lived Tradenames [Roll Forward] | |||||
Indefinite-Lived Tradenames, Beginning balance | 18 | ||||
Indefinite-lived Intangible Assets, Translation Adjustments | 0 | ||||
Indefinite-lived Intangible Assets, Translation and Purchase Accounting Adjustments | 0 | ||||
Indefinite-lived Tradenames, Ending balance | 18 | ||||
International [Member] | |||||
Indefinite-lived Tradenames [Roll Forward] | |||||
Indefinite-Lived Tradenames, Beginning balance | 39 | ||||
Indefinite-lived Intangible Assets, Translation Adjustments | 1 | ||||
Indefinite-lived Intangible Assets, Translation and Purchase Accounting Adjustments | [1] | (40) | |||
Indefinite-lived Tradenames, Ending balance | $ 0 | ||||
[1] | Represents the Future Shop tradename impairment as a result of the Canadian brand consolidation in the first quarter of fiscal 2016. See Note 5, Restructuring Charges, for further discussion of the Canadian brand consolidation. |
Restructuring Charges Summary T
Restructuring Charges Summary Table (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jul. 30, 2016 | Aug. 01, 2015 | Jul. 30, 2016 | Aug. 01, 2015 | ||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | $ 0 | $ (4) | $ 29 | $ 182 | |||
Restructuring Program Canadian Brand Consolidation [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | 1 | 131 | |||||
Continuing Operations [Member] | Restructuring Program Renew Blue Phase 2 [Member] [Domain] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | (2) | 0 | 25 | 0 | |||
Continuing Operations [Member] | Restructuring Program Canadian Brand Consolidation [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | 2 | (4) | 1 | 184 | |||
Continuing Operations [Member] | Restructuring Program 2013 Renew Blue [Member] [Domain] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | 0 | 0 | 3 | [1] | (2) | [1] | |
Continuing Operations [Member] | Other Restructuring [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | [2] | 0 | 0 | ||||
Continuing Operations [Member] | International Segment [Member] | Restructuring Program Canadian Brand Consolidation [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | $ 2 | $ (4) | $ 1 | $ 184 | |||
[1] | Represents activity related to our remaining vacant space liability, primarily in our International segment, for our Renew Blue restructuring program which began in the fourth quarter of fiscal 2013. We may continue to incur immaterial adjustments to the liability for changes in sublease assumptions or potential lease buyouts. In addition, lease payments for vacated stores will continue until leases expire or are terminated. The remaining vacant space liability was $10 million at July 30, 2016. | ||||||
[2] | Represents activity related to our remaining vacant space liability for U.S. large-format store closures in fiscal 2013. We may continue to incur immaterial adjustments to the liability for changes in sublease assumptions or potential lease buyouts. In addition, lease payments for vacated stores will continue until leases expire or are terminated. The remaining vacant space liability was $14 million at July 30, 2016. |
Restructuring Charges - Canadia
Restructuring Charges - Canadian Brand Consolidation (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2016USD ($) | Aug. 01, 2015USD ($) | Jul. 30, 2016USD ($) | Aug. 01, 2015USD ($)store | |
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges | $ 0 | $ (4) | $ 29 | $ 182 |
Restructuring Program Canadian Brand Consolidation [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of stores to be closed | store | 66 | |||
Number of Future Shop stores converted to Best Buy stores | store | 65 | |||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, balance at the beginning of the period | 66 | $ 0 | ||
Restructuring charges | 1 | 131 | ||
Cash payments | (19) | (39) | ||
Adjustments | (1) | (6) | ||
Restructuring Reserve, Translation Adjustment | 4 | (3) | ||
Restructuring reserve, balance at the end of the period | 51 | 83 | 51 | 83 |
Restructuring Program Canadian Brand Consolidation [Member] | Termination benefits [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, balance at the beginning of the period | 2 | 0 | ||
Restructuring charges | 0 | 27 | ||
Cash payments | (1) | (21) | ||
Adjustments | 0 | (2) | ||
Restructuring Reserve, Translation Adjustment | 0 | 0 | ||
Restructuring reserve, balance at the end of the period | 1 | 4 | 1 | 4 |
Restructuring Program Canadian Brand Consolidation [Member] | Facility closure and other costs [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, balance at the beginning of the period | 64 | 0 | ||
Restructuring charges | 1 | 104 | ||
Cash payments | (18) | (18) | ||
Adjustments | (1) | (4) | ||
Restructuring Reserve, Translation Adjustment | 4 | (3) | ||
Restructuring reserve, balance at the end of the period | 50 | 79 | 50 | 79 |
Restructuring Program Canadian Brand Consolidation [Member] | Continuing Operations [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges | 2 | (4) | 1 | 184 |
Restructuring Program Canadian Brand Consolidation [Member] | Continuing Operations [Member] | International Segment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 2 | (4) | 1 | 184 |
Restructuring and Related Cost, Cost Incurred to Date | 201 | 201 | ||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges | 2 | (4) | 1 | 184 |
Restructuring Program Canadian Brand Consolidation [Member] | Continuing Operations [Member] | International Segment [Member] | Inventory write-downs [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | (3) | 0 | 5 | |
Restructuring and Related Cost, Cost Incurred to Date | 3 | 3 | ||
Restructuring Program Canadian Brand Consolidation [Member] | Continuing Operations [Member] | International Segment [Member] | Property and equipment impairments [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 1 | 0 | 30 | |
Restructuring and Related Cost, Cost Incurred to Date | 30 | 30 | ||
Restructuring Program Canadian Brand Consolidation [Member] | Continuing Operations [Member] | International Segment [Member] | Impairment of Intangible Assets Related to Restructuring [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 0 | 0 | 40 | |
Restructuring and Related Cost, Cost Incurred to Date | 40 | 40 | ||
Restructuring Program Canadian Brand Consolidation [Member] | Continuing Operations [Member] | International Segment [Member] | Termination benefits [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 0 | 0 | 24 | |
Restructuring and Related Cost, Cost Incurred to Date | 25 | 25 | ||
Restructuring Program Canadian Brand Consolidation [Member] | Continuing Operations [Member] | International Segment [Member] | Facility closure and other costs [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 2 | $ (2) | 1 | $ 85 |
Restructuring and Related Cost, Cost Incurred to Date | $ 103 | $ 103 |
Restructuring Charges - Renew B
Restructuring Charges - Renew Blue Phase 2 (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2016 | Aug. 01, 2015 | Jul. 30, 2016 | Aug. 01, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ 0 | $ (4) | $ 29 | $ 182 |
Termination benefits [Member] | Restructuring Program Renew Blue Phase 2 [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 19 | |||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, balance at the beginning of the period | 0 | |||
Payments for Restructuring | (15) | |||
Adjustments | (2) | |||
Restructuring reserve, balance at the end of the period | 2 | 2 | ||
Facility closure and other costs [Member] | Restructuring Program Renew Blue Phase 2 [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, balance at the end of the period | 10 | 10 | ||
Continuing Operations [Member] | Restructuring Program Renew Blue Phase 2 [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges, Operating Income Impact | (2) | 25 | ||
Continuing Operations [Member] | Restructuring Program Renew Blue Phase 2 [Member] [Domain] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | (2) | $ 0 | 25 | $ 0 |
Continuing Operations [Member] | Property and equipment write-downs [Member] | Restructuring Program Renew Blue Phase 2 [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges, Operating Income Impact | 0 | 7 | ||
Continuing Operations [Member] | Termination benefits [Member] | Restructuring Program Renew Blue Phase 2 [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges, Operating Income Impact | $ (2) | $ 18 |
Restructuring Charges Restructu
Restructuring Charges Restructuring Other (Details) $ in Millions | Jul. 30, 2016USD ($) |
Facility closure and other costs [Member] | Other Restructuring [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve | $ 14 |
Long Term Debt (Details)
Long Term Debt (Details) - USD ($) $ in Millions | Jul. 30, 2016 | Jan. 30, 2016 | Aug. 01, 2015 | ||
Long-term Debt | |||||
Long-term Debt and Capital Lease Obligations, Including Current Maturities | $ 1,384 | $ 1,734 | $ 1,602 | ||
Financing Lease Obligations | 181 | 178 | 52 | ||
Long-term debt, excluding debt discounts and issuance costs and financing and capital lease obligations | 1,177 | 1,525 | 1,513 | ||
Less: current portion | (43) | (395) | [1] | (382) | [1] |
Long-term Debt, Excluding Current Maturities | 1,341 | 1,339 | 1,220 | ||
Long-term Debt, Fair Value | 1,271 | 1,543 | 1,572 | ||
2016 Notes [Member] | |||||
Long-term Debt | |||||
Long-term Debt | 0 | 350 | 350 | ||
2018 Notes [Member] | |||||
Long-term Debt | |||||
Long-term Debt | 500 | 500 | 500 | ||
2021 Notes [Member] | |||||
Long-term Debt | |||||
Long-term Debt | 650 | 650 | 650 | ||
Interest Rate Swap [Member] | |||||
Long-term Debt | |||||
Long-term Debt | 27 | 25 | 13 | ||
Long-term Debt [Member] | |||||
Long-term Debt | |||||
Long-term Debt | 1,177 | 1,525 | 1,513 | ||
Capital Lease Obligations [Member] | |||||
Long-term Debt | |||||
Long-term Debt | 32 | 38 | 45 | ||
Debt discounts and issuance costs [Member] | |||||
Long-term Debt | |||||
Long-term Debt | $ 6 | $ 7 | $ 8 | ||
[1] | Our 2016 Notes, due March 15, 2016, were classified in our current portion of long-term debt as of January 30, 2016 and August 1, 2015, respectively. In March 2016, we repaid the 2016 Notes using existing cash resources. |
Derivative Instruments (Details
Derivative Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jul. 30, 2016 | Aug. 01, 2015 | Jul. 30, 2016 | Aug. 01, 2015 | Jan. 30, 2016 | ||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Asset, Fair Value, Gross Asset | $ 28 | $ 34 | $ 28 | $ 34 | $ 43 | |
Derivative Liability, Fair Value, Gross Liability | 5 | 0 | 5 | 0 | 1 | |
Notional Amount | 994 | 1,120 | 994 | 1,120 | 1,052 | |
Net Investment Hedging [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax | 8 | 15 | (16) | 6 | ||
Derivative Asset, Fair Value, Gross Asset | 1 | 17 | 1 | 17 | 15 | |
Derivative Liability, Fair Value, Gross Liability | 5 | 0 | $ 5 | 0 | 1 | |
Contract term | 12 months | |||||
Notional Amount | 203 | 207 | $ 203 | 207 | 208 | |
Interest Rate Swap [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Asset, Fair Value, Gross Asset | [1] | 27 | 13 | 27 | 13 | 25 |
Derivative Liability, Fair Value, Gross Liability | [1] | 0 | 0 | 0 | 0 | 0 |
Notional Amount | 750 | 750 | 750 | 750 | 750 | |
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Asset, Fair Value, Gross Asset | [1] | 0 | 4 | 0 | 4 | 3 |
Derivative Liability, Fair Value, Gross Liability | [1] | 0 | 0 | $ 0 | 0 | 0 |
Contract term | 12 months | |||||
Notional Amount | 41 | 163 | $ 41 | 163 | $ 94 | |
Gain (loss) on foreign currency derivative instruments not designated as hedging instruments | $ 2 | $ 1 | $ (3) | $ (4) | ||
[1] | The fair value is recorded in other current assets |
Derivative Instruments Changes
Derivative Instruments Changes in Fair Value Hedges on Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2016 | Aug. 01, 2015 | Jul. 30, 2016 | Aug. 01, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net impact on Condensed Consolidated Statements of Earnings | $ 0 | $ 0 | $ 0 | $ 0 |
Interest Rate Swap [Member] | Interest Expense [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Interest rate swap gain | 12 | 8 | 2 | 12 |
Debt [Member] | Interest Rate Swap [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Adjustments to carrying value of long-term debt | $ (12) | $ (8) | $ (2) | $ (12) |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2016 | Aug. 01, 2015 | Jul. 30, 2016 | Aug. 01, 2015 | |
Numerator | ||||
Net earnings from continuing operations | $ 182 | $ 164 | $ 408 | $ 201 |
Denominator | ||||
Weighted-average common shares outstanding (in shares) | 320.8 | 349.6 | 322.2 | 351 |
Effect of potentially dilutive securities: | ||||
Nonvested share awards (in shares) | 2.1 | 4.3 | 2.6 | 4.8 |
Weighted-average common shares outstanding, assuming dilution (in shares) | 322.9 | 353.9 | 324.8 | 355.8 |
Net earnings per share from continuing operations | ||||
Basic (in dollars per share) | $ 0.57 | $ 0.47 | $ 1.27 | $ 0.57 |
Diluted (in dollars per share) | $ 0.56 | $ 0.46 | $ 1.26 | $ 0.57 |
Antidilutive securities excluded from computation of earnings per share | 8.8 | 8.8 | 10.4 | 10.4 |
Comprehensive Income (Details)
Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2016 | Aug. 01, 2015 | Jul. 30, 2016 | Aug. 01, 2015 | |
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Foreign currency translation adjustments | $ (20) | $ (32) | $ 25 | $ (17) |
Reclassification of foreign currency translation adjustments into earnings due to sale of business | 0 | 0 | 0 | (67) |
Foreign Currency Translation, Ending Balance | 296 | 298 | 296 | 298 |
Best Buy Co., Inc. [Member] | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Foreign Currency Translation, Beginning Balance | $ 316 | $ 330 | $ 271 | 382 |
Reclassification of foreign currency translation adjustments into earnings due to sale of business | $ (67) |
Repurchase of Common Stock (Det
Repurchase of Common Stock (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | 24 Months Ended | |||||
Jul. 30, 2016 | Apr. 30, 2016 | Aug. 01, 2015 | Jul. 30, 2016 | Aug. 01, 2015 | Jan. 30, 2016 | Jan. 27, 2018 | Feb. 25, 2016 | Jun. 30, 2011 | |
June 2011 share repurchase program [Domain] | |||||||||
Accelerated Share Repurchases [Line Items] | |||||||||
Stock Repurchased and Retired During Period, Shares | 7.2 | 9.5 | 10.5 | 9.5 | |||||
Stock Repurchased and Retired During Period, Value | $ 221 | $ 324 | $ 322 | $ 324 | |||||
January 2016 ASR [Domain] | |||||||||
Accelerated Share Repurchases [Line Items] | |||||||||
Stock Repurchased and Retired During Period, Shares | 0 | 1.6 | 0 | 0 | 4.4 | ||||
Stock Repurchased and Retired During Period, Shares | 7.2 | 9.5 | 8.9 | 9.5 | |||||
Stock Repurchased and Retired During Period, Value | $ 0 | $ 0 | $ 120 | ||||||
Average share price [Line Items] | |||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 2,700 | $ 2,700 | $ 3,000 | ||||||
Stock Repurchase Program, Authorized Amount | $ 1,000 | $ 5,000 | |||||||
Stock Repurchase Program, Period in Force | 2 years | ||||||||
January 2016 ASR [Domain] | June 2011 share repurchase program [Domain] | |||||||||
Accelerated Share Repurchases [Line Items] | |||||||||
Stock Repurchased and Retired During Period, Value | $ 45 | $ 0 | |||||||
Open market [Domain] | June 2011 share repurchase program [Domain] | |||||||||
Accelerated Share Repurchases [Line Items] | |||||||||
Unsettled shares, shares | 0.2 | 0.1 | 0.2 | 0.1 | |||||
Stock Repurchased and Retired During Period, Value | $ 221 | $ 324 | $ 277 | $ 324 | |||||
Average share price [Line Items] | |||||||||
Unsettled shares, cost | $ 5.8 | $ 2.5 | $ 5.8 | $ 2.5 |
Repurchase of Common Stock Acce
Repurchase of Common Stock Accelerated Share Repurchase (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jul. 30, 2016 | Aug. 01, 2015 | Jul. 30, 2016 | Aug. 01, 2015 | Jan. 30, 2016 | |
Accelerated Share Repurchases [Line Items] | |||||
Stock Repurchased and Retired During Period, Value | $ 0 | $ 0 | $ 120 | ||
Stock Repurchased During Period, Value | $ (322) | $ (324) | |||
Accelerated Share Repurchase Program, Adjustment | 10 | ||||
Accelerated Share Repurchase Settlement Amount | $ 165 | ||||
Prepaid repurchase of common stock | (55) | ||||
Accelerated Share Repurchase Price (low end of the range) | 150 | ||||
Accelerated Share Repurchase Price (high end of the range) | $ 175 |
Segments (Details)
Segments (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 30, 2016USD ($) | Aug. 01, 2015USD ($) | Jul. 30, 2016USD ($)segments | Aug. 01, 2015USD ($) | Jan. 30, 2016USD ($) | |
Segment Reporting [Abstract] | |||||
Number of reportable segments | segments | 2 | ||||
Business segment information | |||||
Total assets | $ 13,254 | $ 13,559 | $ 13,254 | $ 13,559 | $ 13,519 |
Total revenue | 8,533 | 8,528 | 16,976 | 17,086 | |
Operating income (loss) | 289 | 288 | 661 | 374 | |
Other income (expense) | |||||
Gain on sale of investments | 0 | 0 | 2 | 2 | |
Investment income and other | 8 | 4 | 14 | 11 | |
Interest expense | (18) | (20) | (38) | (40) | |
Earnings from continuing operations before income tax expense | 279 | 272 | 639 | 347 | |
Domestic [Member] | |||||
Business segment information | |||||
Total assets | 11,968 | 12,328 | 11,968 | 12,328 | 12,318 |
Total revenue | 7,889 | 7,878 | 15,718 | 15,768 | |
Operating income (loss) | 289 | 309 | 661 | 613 | |
International [Member] | |||||
Business segment information | |||||
Total assets | 1,286 | 1,231 | 1,286 | 1,231 | $ 1,201 |
Total revenue | 644 | 650 | 1,258 | 1,318 | |
Operating income (loss) | $ 0 | $ (21) | $ 0 | $ (239) |
Contingencies (Details)
Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jul. 30, 2016 | Jul. 30, 2016 | Jan. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Proceeds from Legal Settlements | $ 161 | $ 75 | |
Proceeds from legal settlements, received | $ 127 | ||
Future Proceeds from Legal Settlements | $ 34 |