Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
May 05, 2018 | Jun. 05, 2018 | |
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 | May 5, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --02-02 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 279,391,918 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | May 05, 2018 | Feb. 03, 2018 | Apr. 29, 2017 |
Current assets | |||
Cash and cash equivalents | $ 1,848 | $ 1,101 | $ 1,651 |
Short-term investments | 785 | 2,032 | 1,948 |
Receivables, net | 860 | 1,049 | 1,011 |
Merchandise inventories | 4,964 | 5,209 | 4,637 |
Other current assets | 473 | 438 | 409 |
Total current assets | 8,930 | 9,829 | 9,656 |
Property and equipment, net | 2,385 | 2,421 | 2,287 |
Goodwill | 425 | 425 | 425 |
Other assets | 342 | 374 | 587 |
Total assets | 12,082 | 13,049 | 12,955 |
Current liabilities | |||
Accounts payable | 4,619 | 4,873 | 4,599 |
Unredeemed gift card liabilities | 285 | 385 | 389 |
Deferred revenue | 371 | 453 | 371 |
Accrued compensation and related expenses | 296 | 561 | 274 |
Accrued liabilities | 780 | 864 | 699 |
Accrued income taxes | 154 | 137 | 93 |
Current portion of long-term debt | 550 | 544 | 45 |
Total current liabilities | 7,055 | 7,817 | 6,470 |
Long-term liabilities | 815 | 809 | 684 |
Long-term debt | 792 | 811 | 1,302 |
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 — 281,000,000, 283,000,000 and 306,000,000 shares, respectively | 28 | 28 | 31 |
Retained earnings | 3,082 | 3,270 | 4,202 |
Accumulated other comprehensive income | 310 | 314 | 266 |
Total equity | 3,420 | 3,612 | 4,499 |
Total liabilities and equity | $ 12,082 | $ 13,049 | $ 12,955 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - $ / shares | May 05, 2018 | Feb. 03, 2018 | Apr. 29, 2017 |
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 | 281,000,000 | 283,000,000 | 306,000,000 |
Common stock, outstanding shares | 281,000,000 | 283,000,000 | 306,000,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
May 05, 2018 | Apr. 29, 2017 | |
Revenue | $ 9,109 | $ 8,528 |
Cost of goods sold | 6,984 | 6,506 |
Gross profit | 2,125 | 2,022 |
Selling, general and administrative expenses | 1,830 | 1,722 |
Restructuring charges | 30 | 0 |
Operating income | 265 | 300 |
Other income (expense) | ||
Investment income and other | 11 | 11 |
Interest expense | (19) | (19) |
Earnings before income tax expense | 257 | 292 |
Income tax expense | 49 | 104 |
Net earnings | $ 208 | $ 188 |
Basic earnings per share | $ 0.74 | $ 0.61 |
Diluted earnings per share (in dollars per share) | 0.72 | 0.60 |
Dividends declared per common share (in dollars per share) | $ 0.45 | $ 0.34 |
Weighted-average common shares outstanding (in millions) | ||
Basic (in shares) | 282.6 | 309.2 |
Diluted (in shares) | 288.3 | 315 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
May 05, 2018 | Apr. 29, 2017 | |
Net earnings | $ 208 | $ 188 |
Foreign currency translation adjustments | (4) | (13) |
Comprehensive income | $ 204 | $ 175 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
May 05, 2018 | Apr. 29, 2017 | |
Operating activities | ||
Net earnings | $ 208 | $ 188 |
Adjustments to reconcile net earnings to total cash provided by operating activities: | ||
Depreciation | 176 | 161 |
Restructuring charges | 30 | 0 |
Stock-based compensation | 32 | 31 |
Deferred income taxes | 9 | 12 |
Other, net | (2) | (1) |
Changes in operating assets and liabilities: | ||
Receivables | 189 | 333 |
Merchandise inventories | 243 | 223 |
Other assets | (13) | (25) |
Accounts payable | (214) | (382) |
Other liabilities | (506) | (364) |
Income taxes | 52 | 67 |
Total cash provided by operating activities | 204 | 243 |
Investing activities | ||
Additions to property and equipment | (181) | (153) |
Purchases of investments | 0 | (1,134) |
Sales of investments | 1,245 | 863 |
Other, net | 9 | 1 |
Total cash provided by (used in) investing activities | 1,073 | (423) |
Financing activities | ||
Repurchase of common stock | (400) | (373) |
Repayments of debt | (11) | (10) |
Dividends paid | (128) | (105) |
Issuance of common stock | 24 | 75 |
Other, net | (1) | 0 |
Total cash used in financing activities | (516) | (413) |
Effect of exchange rate changes on cash | (12) | (6) |
Increase (decrease) in cash, cash equivalents and restricted cash | 749 | (599) |
Cash, cash equivalents and restricted cash at beginning of period | 1,300 | 2,433 |
Cash, cash equivalents and restricted cash at end of period | $ 2,049 | $ 1,834 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balances at Jan. 28, 2017 | $ 4,709 | $ 31 | $ 0 | $ 4,399 | $ 279 |
Beginning balances (in shares) at Jan. 28, 2017 | 311 | ||||
Increase (Decrease) in Shareholders' Equity | |||||
ASU adoption cumulative adjustment | (2) | 10 | (12) | ||
Net earnings | 188 | 188 | |||
Foreign currency translation adjustments | (13) | (13) | |||
Stock-based compensation | 31 | 31 | |||
Restricted stock vested and stock options exercised | 72 | $ 0 | 72 | ||
Restricted stock vested and stock options exercised (in shares) | 3 | ||||
Issuance of common stock under employee stock purchase plan | 3 | 3 | |||
Common stock dividends | (105) | (105) | |||
Stock Repurchased During Period, Shares | (8) | ||||
Stock Repurchased During Period, Value | (384) | $ 0 | (116) | (268) | |
Ending balances at Apr. 29, 2017 | 4,499 | $ 31 | 0 | 4,202 | 266 |
Ending balances (in shares) at Apr. 29, 2017 | 306 | ||||
Beginning balances at Feb. 03, 2018 | 3,612 | $ 28 | 0 | 3,270 | 314 |
Beginning balances (in shares) at Feb. 03, 2018 | 283 | ||||
Increase (Decrease) in Shareholders' Equity | |||||
ASU adoption cumulative adjustment | 73 | 0 | 73 | ||
Net earnings | 208 | 208 | |||
Foreign currency translation adjustments | (4) | (4) | |||
Stock-based compensation | 32 | 32 | |||
Restricted stock vested and stock options exercised | 20 | $ 0 | 20 | ||
Restricted stock vested and stock options exercised (in shares) | 3 | ||||
Issuance of common stock under employee stock purchase plan | 4 | 4 | |||
Common stock dividends | (126) | 2 | (128) | ||
Stock Repurchased During Period, Shares | (5) | ||||
Stock Repurchased During Period, Value | (399) | $ 0 | (58) | (341) | |
Ending balances at May. 05, 2018 | $ 3,420 | $ 28 | $ 0 | $ 3,082 | $ 310 |
Ending balances (in shares) at May. 05, 2018 | 281 |
CONDENSED CONSOLIDATED STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (PARENTHETICAL) - $ / shares | 3 Months Ended | |
May 05, 2018 | Apr. 29, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared per common share (in dollars per share) | $ 0.45 | $ 0.34 |
Basis of Presentation (Notes)
Basis of Presentation (Notes) | 3 Months Ended |
May 05, 2018 | |
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 large proportion of our revenue and earnings in the fiscal fourth quarter, which includes the majority of the holiday shopping season in the U.S., Canada and Mexico. Due to the seasonal nature of our business, interim results are not necessarily indicative of results for the entire fiscal year. The interim financial statements and the related notes included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended February 3, 2018 . The first three months of fiscal 2019 and fiscal 2018 included 13 weeks. In order to align our fiscal reporting periods and comply with statutory filing requirements, we consolidate the financial results of our Mexico operations on a one -month lag. Our policy is to accelerate recording the effect of events occurring in the lag period that significantly affect our condensed consolidated financial statements. No such events were identified for the reported periods. In preparing the accompanying condensed consolidated financial statements, we evaluated the period from May 6, 2018 , through the date the financial statements were issued for material subsequent events requiring recognition or disclosure. No such events were identified for this period. Unadopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases , and has since issued additional ASUs to further clarify or add options to the issued guidance. The new guidance was issued to increase transparency and comparability among companies by requiring most leases to be included on the balance sheet and by expanding disclosure requirements. Based on the effective dates, we expect to adopt the new guidance in the first quarter of fiscal 2020 using the recently-proposed prospective method and have begun implementing required upgrades to our existing lease systems. While we expect adoption to lead to a material increase in the assets and liabilities recorded on our consolidated balance sheet and an increase to our footnote disclosures related to leases, we are still evaluating the impact on our consolidated statement of earnings. We also expect that adoption of the new standard will require changes to our internal controls over financial reporting. Adopted Accounting Pronouncements In the first quarter of fiscal 2019, we prospectively adopted the following ASUs, all of which had an immaterial impact on our results of operations, cash flows and financial position. • ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory • ASU 2017-12, Derivatives and Hedging • ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In the first quarter of fiscal 2019, we also adopted ASU 2014-09, Revenue from Contracts with Customers . The new guidance establishes a single comprehensive model for entities to use in accounting for revenue and supersedes most revenue recognition guidance. It introduces a five-step process for revenue recognition that focuses on transfer of control, as opposed to transfer of risk and rewards under previous guidance. We elected the modified retrospective method of adoption, which we applied to contracts not completed at the date of adoption. Under this method, we recorded an increase to opening retained earnings of $73 million , net of tax, due to the cumulative impact of these changes. The impact was primarily related to the timing of revenue recognition related to our gift cards, the sale of certain software licenses and our loyalty programs. We did not make any adjustment to prior period financial statements. We expect the impact of adoption to be immaterial to our revenue, net earnings and cash flows on an ongoing basis. As part of the adoption, we also modified certain control procedures and processes, none of which had a material effect on our internal controls over financial reporting. The following table reconciles the Condensed Consolidated Balance Sheet line items impacted by the adoption of this standard on February 4, 2018 ($ in millions): February 3, 2018 As Reported ASU 2014-09 Adjustment on February 4, 2018 February 4, 2018 Adjusted Assets Other assets $ 374 $ (19 ) $ 355 Liabilities Unredeemed gift card liabilities 385 (69 ) 316 Deferred revenue 453 (26 ) 427 Accrued liabilities 864 (3 ) 861 Accrued income taxes 137 6 143 Equity Retained earnings 3,270 73 3,343 The following tables set forth the impact of adopting this standard on our Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Earnings as of and for the three months ended May 5, 2018 ($ in millions, except per share amounts): May 5, 2018 Impact of Changes to Condensed Consolidated Balance Sheets As Reported Balances without Adoption of ASU 2014-09 Effect of Change Higher/(Lower) (1) Assets Other current assets $ 473 $ 427 $ 46 Other assets 304 323 (19 ) Liabilities Unredeemed gift card liabilities 285 355 (70 ) Deferred revenue 371 395 (24 ) Accrued liabilities 780 736 44 Accrued income taxes 154 148 6 Equity Retained earnings 3,082 3,011 71 (1) Effect of change includes the opening retained earnings adjustment as detailed within the table above. Three months ended May 5, 2018 Impact of Changes to Condensed Consolidated Statements of Earnings As Reported Balances without Adoption of ASU 2014-09 Effect of Change Higher/(Lower) Revenue $ 9,109 $ 9,100 $ 9 Cost of goods sold 6,984 6,973 11 Gross profit 2,125 2,127 (2 ) Operating income 265 267 (2 ) Income tax expense 49 50 (1 ) Net earnings 208 209 (1 ) Basic earnings per share $ 0.74 $ 0.74 $ — Diluted earnings per share $ 0.72 $ 0.73 $ (0.01 ) Total Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets to the total shown within the Condensed Consolidated Statements of Cash Flows as of May 5, 2018, February 3, 2018, and April 29, 2017 ($ in millions): May 5, 2018 February 3, 2018 April 29, 2017 Cash and cash equivalents $ 1,848 $ 1,101 $ 1,651 Restricted cash included in Other current assets 201 199 183 Total cash, cash equivalents and restricted cash $ 2,049 $ 1,300 $ 1,834 Amounts included in restricted cash are pledged as collateral or restricted to use for general liability insurance and workers' compensation insurance. Goodwill and Intangible Assets All goodwill and intangible asset balances relate to our Domestic segment. As of May 5, 2018 , February 3, 2018 , and April 29, 2017 , the carrying amount of goodwill was $425 million , respectively, net of $675 million of cumulative impairment losses, respectively. The carrying amount of indefinite-lived tradenames included within Other assets on our Condensed Consolidated Balance Sheets was $18 million as of May 5, 2018 , February 3, 2018 , and April 29, 2017 , respectively. |
Revenue Recognition Revenue Rec
Revenue Recognition Revenue Recognition (Notes) | 3 Months Ended |
May 05, 2018 | |
Contract with Customer, Asset and Liability [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenue Recognition We generate revenue primarily from the sale of merchandise products and services, both as a principal and as an agent. Revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the transaction price consideration that we expect to receive in exchange for those goods or services. Control refers to the ability of the customer to direct the use of, and obtain substantially all of, the remaining benefits from the goods or services. Our transaction price consideration is fixed, unless otherwise disclosed below as variable consideration. We generate all of our operating revenue from contracts with customers. Our revenue excludes sales and usage-based taxes collected. Revenue from merchandise product sales and services is reported net of sales refunds, which includes an estimate of future returns and contract cancellations based on historical refund rates, with a corresponding reduction to cost of sales. There is inherent judgment in estimating future refunds as they are susceptible to factors outside of our influence. However, we have significant experience in estimating the amount of refunds, based primarily on historical data. Our refund liability for sales returns was $68 million at May 5, 2018 , which is included in Accrued liabilities on our Condensed Consolidated Balance Sheets and represents the expected value of the aggregate refunds that will be due to our customers. We also have a corresponding asset included in Other current assets on our Condensed Consolidated Balance Sheets that represents the inventory we expect to be returned, valued at the lower of cost or net realizable value. As of May 5, 2018 , this amount was $46 million . For revenue transactions that involve more than one performance obligation, we defer the revenue associated with any unsatisfied performance obligation until the obligation is satisfied, i.e., when control of a product is transferred to the customer or a service is completed. For such contracts, we allocate revenue and any discounts to each performance obligation based on its relative standalone selling price. We determine standalone selling prices based on the prices charged to customers or, when directly observable selling prices are not available, we generally use an expected cost-plus margin approach. Our contract liabilities primarily relate to product merchandise not yet delivered to customers; unredeemed gift cards; services not yet completed; services technical support contracts, where performance is satisfied over the duration of the contract; and options that provide a material right to customers, such as our customer loyalty programs. Most of our contract liabilities have a duration of one year or less, except our services technical support contracts, which may have a duration of up to three years. We do not have any material contract assets. The following table provides information about receivables and contract liabilities from our contracts with customers, which reflects the aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied as of May 5, 2018, and February 4, 2018 ($ in millions): May 5, 2018 February 4, 2018 Receivables, net of an allowance for doubtful accounts of $26 and $24, respectively $ 582 $ 674 Short-term contract liabilities included in: Unredeemed gift cards 285 316 Deferred revenue 371 408 Accrued liabilities 139 151 Long-term contract liabilities included in: Long-term liabilities 20 22 We establish allowances for uncollectible receivables based on historical collection trends and write-off history. The following table summarizes our allowance for doubtful account activity related to contracts with customers during the three months ended May 5, 2018 ($ in millions): Allowance for Doubtful Accounts Balances at February 4, 2018 $ 24 Charged to expenses or other accounts 11 Other (1) (9 ) Balances at May 5, 2018 $ 26 (1) Includes bad debt write-offs and recoveries and the effect of foreign currency fluctuations. The following table summarizes significant changes in our contract liability balances during the three months ended May 5, 2018 ($ in millions): Three Months Ended May 5, 2018 Revenue recognized that was included in the contract liability balance(s) as of February 4, 2018 $ 455 Revenue recognized from performance obligations satisfied in previous periods — Adjustments (1) (2 ) (1) Includes changes in the measure of progress, changes in the estimate of the transaction price or contract modifications. The following table includes estimated revenue from our contract liability balances expected to be recognized in future periods if performance of the contract is expected to have a duration of more than one year ($ in millions): May 5, 2018 (1) Remainder of fiscal 2019 $ 20 Fiscal 2020 15 Fiscal 2021 6 Fiscal 2022 2 Fiscal 2023 and thereafter 1 (1) We have elected to exclude unsatisfied performance obligations from contract liability balances with a duration of one year or less. The estimated transaction price disclosed above also does not include amounts of variable consideration attributable to contracts where the consideration is constrained at May 5, 2018. Further information about our forms of variable consideration are disclosed below. We apply a practical expedient to expense direct costs of obtaining a contract when incurred because the amortization period would have been one year or less. See Note 10, Segments, for a disaggregation of revenue by reportable segment and product category, which represents how our chief operating decision maker reviews information internally to evaluate our financial performance and to make resource allocation and other decisions for the enterprise. Merchandise product revenue Merchandise product revenue is recognized when control passes, which generally occurs at a point in time when the customer completes a transaction in the store and receives the merchandise. Our payment terms are typically at the point of sale. In the case of items paid for in the store, but subsequently delivered to the customer, control passes and revenue is recognized once delivery has been completed, as we have transferred possession to the customer. For transactions initiated online, customers choose whether to have it delivered to them (using third-party parcel delivery companies) or to collect their merchandise from one of our stores (“in-store pick up”). For items delivered directly to the customer, control passes and revenue is recognized when delivery has been completed, as title has passed and we have transferred possession to the customer. For in-store pick up, control passes and revenue is recognized once the customer has taken possession of the merchandise. Any fees charged to customers for delivery are a component of the transaction price and are recognized when delivery has been completed. We use delivery information at an individual contract level to determine when to recognize revenue for products and any related delivery fee revenue. Generally, we are the principal to the contract as we have control of the physical merchandise products prior to transfer to the customer. Accordingly, revenue is recognized on a gross basis. For certain sales, primarily activation-based software licenses and third-party stored-value cards, we are the sales agent providing access to the content and recognize fixed commission revenue net of amounts due to third parties who fulfill the performance obligation. For these sales, control passes upon providing access to the customer of the content. Warranty obligations associated with the sale of our exclusive brands products are assurance-type warranties that are a guarantee of the product’s intended functionality and, therefore, do not represent a distinct performance obligation within the context of the contract. Services - When we are the principal We recognize service revenue for installation, set-up, software troubleshooting, product repair, consultation and educational classes once the service is completed, as this is when the customer has the ability to direct the use of and obtain the benefits of the service or serviced product. Payment terms are typically at the point of sale, but may also occur upon completion of the service. Our service contracts are primarily with retail customers, merchandise vendors (for factory warranty repairs) and third-party underwriters who sell extended warranty protection plans. For technical support membership contracts, we are responsible for fulfilling the support services to customers. These contracts have terms ranging from one month to three years and typically contain multiple performance obligations. Payment is due at the start of the contract period. We have determined that our contracts do not include a significant financing component. The primary purpose of our payment terms is to provide customers with a simplified method of purchasing our services, not to provide customers with financing. We recognize revenue over time on a service consumption basis, an input method of measuring progress over the related contract term. This method is based on historical utilization patterns as this depicts when customers use the services provided and, accordingly, when the transfer of services occurs. There is judgment in (1) determining the level at which we apply a portfolio approach to these contracts, and (2) measuring the relative standalone selling price for performance obligations within these contracts to the extent that they are only bundled and sold to customers with other performance obligations. When direct observable evidence of the standalone selling price is not available, a cost-plus margin approach is generally used. Additionally, there is judgment in (3) assessing the pattern of delivery across multiple portfolios of customers, including measuring future progress based on historical consumption patterns. When sufficient history of consumption is unavailable, we generally recognize revenue ratably over the life of the contract. Services - When we are the agent We sell various hardware protection plans to customers that provide extended warranty coverage on their device purchases. Such plans have terms ranging from one month to five years. Payment is due at the point of sale. Third-party underwriters assume the risk associated with the coverage and are primarily responsible for fulfillment. We record the fixed net commissions (the amount charged to the customer less the premiums remitted to the underwriter) as revenue at a point in time when the corresponding merchandise product revenue is recognized. In addition, we are eligible to receive profit-sharing payments, a form of variable consideration, which are dependent upon the profitable performance of the portfolio. We do not share in any losses of the portfolio. We record any such profit share as revenue once the uncertainty associated with the portfolio period, which is calendar-year based, is no longer constrained using the expected value method. This typically occurs when claims experience for the annual period is known in our fiscal fourth quarter, with payment of the profit share occurring in the subsequent fiscal year. We earn fixed commissions from mobile network carriers to sell service contracts on their platforms. Revenue is recognized when control passes at a point in time upon sale of the contract and activation of the customer on the provider’s platform. The term between when we bill the content provider and when we receive payment is generally within 30 to 60 days, which is after control has passed. Activation commissions are subject to repayment to the carrier primarily due to customer cancellation for specified time periods after the sale. Commission revenue from mobile network carriers is reported net of the expected cancellations, which we estimate based on historical cancellation rates. Credit card revenue We offer promotional financing and credit cards issued by third-party banks that manage and directly extend credit to our customers. We provide a license to our brand and marketing services, and we facilitate credit applications in our stores and online. The banks are the sole owners of the accounts receivable generated under the program and, accordingly, we do not hold any customer receivables related to these programs and act as an agent in the financing transactions with customers. We are eligible to receive a profit share from our banking partner based on the annual performance of the program, and we receive quarterly payments based on forecasts of full-year performance. This is a form of variable consideration. We record such profit share as revenue over time using the most likely amount method, which reflects the amount earned each quarter when it is determined that the likelihood of a significant revenue reversal is not probable, which is typically quarterly. Profit-share payments occur quarterly, shortly after the end of each program quarter. Best Buy gift cards We sell Best Buy gift cards to our customers in our retail stores, online and through select third parties. Our gift cards do not have an expiration date. We recognize revenue from gift cards when the card is redeemed by the customer. We also recognize revenue for the portion of gift card values that is not expected to be redeemed ("breakage"). We estimate breakage based on historical patterns and take into account other factors, such as laws and regulations applicable to each jurisdiction. We recognize gift card breakage based on the expected pattern of gift card redemptions, based on analysis of historic trends. Typically, over 90% of gift card values are redeemed within one year of issuance. There is judgment in assessing (1) the level at which we group gift cards based for analysis of breakage rates, (2) redemption patterns, and (3) the ultimate value of gift cards which we do not expect to be redeemed. Sales incentives We frequently offer sales incentives that entitle our customers to receive a gift card at the time of purchase or an instant savings coupon that can be redeemed towards a future purchase. For sales incentives issued to customers that are only earned in conjunction with the purchase of merchandise products or services, the sales incentives represent an option that is a material right and, accordingly, is a performance obligation in the contract. The relative standalone selling price of these sales incentives is deferred as a contract liability, based on the cards or coupons that are projected to be redeemed. We recognize revenue for this performance obligation when it is redeemed by the customer or when it is not expected to be redeemed. There is judgment in determining (1) the level at which we group incentives based on similar redemption patterns in order to estimate future redemption patterns of those groups, and (2) the ultimate number of incentives that we do not expect to be redeemed. We also issue coupons that are not earned in conjunction with a purchase of a merchandise product or service, typically as part of targeted marketing activities. This is not a performance obligation, but is recognized as a reduction of the transaction price when redeemed by the customer. Customer loyalty programs We have customer loyalty programs which allow members to earn points for each qualifying purchase. Points earned enable members to receive a certificate that may be redeemed on future purchases at our Best Buy branded stores. Depending on the customer's membership level within our loyalty program, certificate expirations typically range from 2 to 12 months from the date of issuance. Our loyalty programs represent customer options that provide a material right and, accordingly, are performance obligations for each applicable contract. The relative standalone selling price of points earned by our loyalty program members is deferred and included in Accrued liabilities on our Condensed Consolidated Balance Sheets based on the percentage of points that are projected to be redeemed. We recognize revenue for this performance obligation over time when a certificate is estimated to be redeemed by the customer. There is judgment in measuring the standalone selling price of this performance obligation related to our estimate of the amount of and subsequent timing of redemptions of certificates (“certificate breakage”). We determine our certificate breakage rate based upon historical redemption patterns. |
Fair Value Measurements (Notes)
Fair Value Measurements (Notes) | 3 Months Ended |
May 05, 2018 | |
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 our financial assets and liabilities that were accounted for at fair value on a recurring basis at May 5, 2018 , February 3, 2018 , and April 29, 2017 , by level within the fair value hierarchy as determined by the valuation techniques we used to determine the fair value ($ in millions): Fair Value Hierarchy Fair Value at May 5, 2018 February 3, 2018 April 29, 2017 Assets Cash and cash equivalents Money market funds Level 1 $ 19 $ 21 $ 24 Commercial paper Level 2 — 90 260 Time deposits Level 2 200 65 11 Short-term investments Commercial paper Level 2 100 474 150 Time deposits Level 2 685 1,558 1,798 Other current assets Money market funds Level 1 58 3 2 Commercial paper Level 2 — 60 60 Foreign currency derivative instruments Level 2 3 2 7 Interest rate swap derivative instruments Level 2 5 — — Time deposits Level 2 101 101 101 Other assets Marketable securities that fund deferred compensation Level 1 99 99 97 Interest rate swap derivative instruments Level 2 — — 4 Liabilities Accrued liabilities Foreign currency derivative instruments Level 2 1 8 — Interest rate swap derivative instruments Level 2 — 1 — Long-term liabilities Interest rate swap derivative instruments Level 2 15 4 1 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. 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. 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 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 Selling, general and administrative expenses and Restructuring charges in our Condensed Consolidated Statements of Earnings for non-restructuring and restructuring charges, respectively. The following table summarizes the fair value remeasurements of property and equipment impairments recorded during the three months ended May 5, 2018 , and April 29, 2017 ($ in millions): Impairments Three Months Ended Remaining Net Carrying Value (1) May 5, 2018 April 29, 2017 May 5, 2018 April 29, 2017 Property and equipment (non-restructuring) $ 2 $ 5 $ — $ — (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 May 5, 2018 , and April 29, 2017 . All of the fair value remeasurements included in the table above were based on significant unobservable inputs (Level 3). Fixed asset fair values were derived using a discounted cash flow ("DCF") model to estimate the present value of net cash flows that the asset or asset group 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. Fair Value of Financial Instruments Our financial instruments, other than those presented in the disclosures above, include cash, receivables, other investments, accounts payable, other payables and long-term debt. The fair values of cash, receivables, accounts payable and other payables approximated carrying values because of the short-term nature of these instruments. If these instruments were measured at fair value in the financial statements, they would be classified as Level 1 in the fair value hierarchy. Fair values for other investments held at cost are not readily available, but we estimate that the carrying values for these investments approximate fair value. See Note 5, Debt , for information about the fair value of our long-term debt. |
Restructuring Charges (Notes)
Restructuring Charges (Notes) | 3 Months Ended |
May 05, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges Charges incurred in the three months ended May 5, 2018 , and April 29, 2017 , for our restructuring activities were $30 million and $0 million , respectively. All charges incurred in the current period related to Best Buy Mobile. Best Buy Mobile On March 1, 2018, we announced our intent to close all of our 257 remaining Best Buy Mobile stand-alone stores in the U.S. This decision was a result of changing economics in the mobile industry since we began opening these stores in 2006, along with the integration of our mobile model into our core stores and on-line channel, which are today more economically compelling. All restructuring charges related to this plan are from continuing operations and are presented in Restructuring charges on our Condensed Consolidated Statements of Earnings. The composition of the restructuring charges we incurred for Best Buy Mobile during the three months ended May 5, 2018 , as well as the cumulative amount incurred through May 5, 2018 , were as follows ($ in millions): Three Months Ended Cumulative Amount May 5, 2018 May 5, 2018 Property and equipment impairments $ — $ 1 Termination benefits 1 9 Facility closure and other costs 29 29 Total restructuring charges $ 30 $ 39 The following table summarizes our restructuring accrual activity during the three months ended May 5, 2018 , related to termination benefits and facility closure and other costs associated with Best Buy Mobile ($ in millions): Termination Benefits Facility Closure and Other Costs Total Balances at February 3, 2018 $ 8 $ — $ 8 Charges 1 29 30 Cash payments — (26 ) (26 ) Balances at May 5, 2018 $ 9 $ 3 $ 12 Other We have remaining vacant space liabilities at May 5, 2018, of $13 million related to our Canadian Brand consolidation restructuring program, $11 million related to our Renew Blue restructuring program and $3 million related to our U.S. large-format store closures in fiscal 2013. We may continue to incur immaterial adjustments to these liabilities for changes in sublease assumptions or potential lease buyouts. In addition, lease payments for vacated stores will continue until leases expire or are terminated. |
Debt (Notes)
Debt (Notes) | 3 Months Ended |
May 05, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt Short-Term Debt U.S. Revolving Credit Facility On April 17, 2018, 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 2021, but was terminated on April 17, 2018. The Five-Year Facility Agreement permits borrowings of up to $1.25 billion and expires in April 2023. At May 5, 2018, there were no borrowings outstanding. In addition, there were no borrowings outstanding under the Previous Facility as of February 3, 2018, and April 29, 2017. 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 0.30% , the LIBOR Margin ranges from 0.80% to 1.30% , and the facility fee ranges from 0.08% to 0.20% . The Five-Year Facility Agreement is guaranteed by certain of our subsidiaries and contains customary affirmative and negative covenants. Among other things, these covenants restrict our and certain of our subsidiaries' abilities to incur liens on certain assets; make material changes in corporate structure or the nature of our business; dispose of material assets; engage in certain mergers, consolidations and other fundamental changes;or engage in certain transactions with affiliates. The Five-Year Facility Agreement also contains covenants that require us to maintain a maximum cash flow leverage ratio and a minimum interest coverage ratio. The Five-Year Facility Agreement contains default provisions including, but not limited to, failure to pay interest or principal when due and failure to comply with covenants. Long-Term Debt Long-term debt consisted of the following at Mat 5, 2018, February 3, 2018, and April 29, 2017 ($ in millions): May 5, 2018 February 3, 2018 April 29, 2017 2018 Notes $ 500 $ 500 $ 500 2021 Notes 650 650 650 Interest rate swap valuation adjustments (10 ) (5 ) 3 Subtotal 1,140 1,145 1,153 Debt discounts and issuance costs (2 ) (3 ) (4 ) Financing lease obligations 184 191 171 Capital lease obligations 20 22 27 Total long-term debt 1,342 1,355 1,347 Less: current portion 550 544 45 Total long-term debt, less current portion $ 792 $ 811 $ 1,302 Our 2018 Notes, due August 1, 2018, are classified within our Current portion of long-term debt on our Condensed Consolidated Balance Sheets as of May 5, 2018 . The fair value of total long-term debt, excluding debt discounts and issuance costs and financing and capital lease obligations, approximated $1,176 million , $1,199 million and $1,229 million at May 5, 2018 , February 3, 2018 , and April 29, 2017 , respectively, based primarily on the market prices quoted from external sources, compared with carrying values of $1,140 million , $1,145 million and $1,153 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 Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended February 3, 2018 , for additional information regarding the terms of our debt facilities, debt instruments and other obligations. |
Derivative Instruments (Notes)
Derivative Instruments (Notes) | 3 Months Ended |
May 05, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments We manage our economic and transaction exposure to certain risks through the use of foreign currency derivative instruments and interest rate swaps. Our objective in holding derivatives is to reduce the volatility of net earnings, cash flows and net asset value associated with changes in foreign currency exchange rates and interest rates. We do not hold derivative instruments for trading or speculative purposes. We have no derivatives that have credit risk-related contingent features, and we mitigate our credit risk by engaging with financial institutions with investment grade credit ratings as our counterparties. We record all derivative instruments on our 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 of up to 12 months . For a net investment hedge, we recognize changes in the fair value of the derivative as a component of foreign currency translation within other comprehensive income to offset a portion of the change in translated value of the net investment being hedged, until the investment is sold or liquidated. We limit recognition in net earnings of amounts previously recorded in other comprehensive income to circumstances such as complete or substantially complete liquidation of the net investment in the hedged foreign operation. We report the gains and losses, if any, related to the amount excluded from the assessment of hedge effectiveness in net earnings. Interest Rate Swaps We 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 for as fair value hedges using the shortcut method. Under the shortcut method, we recognize the change in the fair value of the derivatives with an offsetting change to the carrying value of the debt. Accordingly, there is no impact on our 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. The contracts generally have terms of up to 12 months . These derivative instruments are not designated in hedging relationships and, therefore, we record gains and losses on these contracts directly to net earnings. Summary of Derivative Balances The following tables present the gross fair values for outstanding derivative instruments and the corresponding classification at May 5, 2018 , and April 29, 2017 ($ in millions): Assets Contract Type Balance Sheet Location May 5, 2018 February 3, 2018 April 29, 2017 Derivatives designated as net investment hedges Other current assets $ 3 $ 2 $ 6 Derivatives designated as interest rate swaps Other current assets and Other assets 5 — 4 No hedge designation (foreign exchange forward contracts) Other current assets — — 1 Total $ 8 $ 2 $ 11 Liabilities Contract Type Balance Sheet Location May 5, 2018 February 3, 2018 April 29, 2017 Derivatives designated as net investment hedges Accrued liabilities $ 1 $ 7 $ — Derivatives designated as interest rate swaps Accrued liabilities and Long-term liabilities 15 5 1 No hedge designation (foreign exchange forward contracts) Accrued liabilities — 1 — Total $ 16 $ 13 $ 1 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 months ended May 5, 2018 , and April 29, 2017 ($ in millions): Three Months Ended Three Months Ended May 5, 2018 April 29, 2017 Contract Type Pre-tax Gain Recognized in OCI Gain(Loss) Reclassified from Accumulated OCI to Earnings recognized in SG&A Pre-tax Gain Recognized in OCI Gain(Loss) Reclassified from Accumulated OCI to Earnings recognized in SG&A Derivatives designated as net investment hedges $ 16 $ — $ 8 $ — The following table presents the effects of derivatives not designated as hedging instruments on our Condensed Consolidated Statements of Earnings for the three months ended May 5, 2018 , and April 29, 2017 ($ in millions): Three Months Ended May 5, 2018 April 29, 2017 Contract Type Location of Gain Recognized Gain Recognized Gain Recognized No hedge designation (foreign exchange contracts) SG&A $ 1 $ 1 The following table presents the effects of interest rate derivatives and adjustments to the carrying value of long-term debt on our Condensed Consolidated Statements of Earnings for the three months ended May 5, 2018 , and April 29, 2017 ($ in millions): Gain (Loss) Recognized Contract Type Location of Gain (Loss) Recognized May 5, 2018 April 29, 2017 Interest rate swap contracts Interest Expense $ (5 ) $ (10 ) Adjustments to carrying value of long-term debt Interest Expense 5 10 Total $ — $ — The following table presents the notional amounts of our derivative instruments at May 5, 2018 , February 3, 2018 , and April 29, 2017 ($ in millions): Notional Amount Contract Type May 5, 2018 February 3, 2018 April 29, 2017 Derivatives designated as net investment hedges $ 135 $ 462 $ 206 Derivatives designated as interest rate swap contracts 1,150 1,150 825 No hedge designation (foreign exchange forward contracts) 39 33 36 Total $ 1,324 $ 1,645 $ 1,067 |
Earnings per Share (Notes)
Earnings per Share (Notes) | 3 Months Ended |
May 05, 2018 | |
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 for the three months ended May 5, 2018 , and April 29, 2017 ($ and shares in millions, except per share amounts): Three Months Ended May 5, 2018 April 29, 2017 Numerator Net earnings $ 208 $ 188 Denominator Weighted-average common shares outstanding 282.6 309.2 Dilutive effect of stock compensation plan awards 5.7 5.8 Weighted-average common shares outstanding, assuming dilution 288.3 315.0 Basic earnings per share $ 0.74 $ 0.61 Diluted earnings per share $ 0.72 $ 0.60 The number of potential shares that were excluded from the computation of diluted earnings per share because the effect would be anti-dilutive were 0.1 million and 0.7 million for the three months ended May 5, 2018 , and April 29, 2017 , respectively. Beginning with our annual broad grant of restricted stock and restricted stock units in March 2018, we attach dividend equivalents to our restricted stock and restricted stock units equal to dividends payable on the same number of shares of Best Buy common stock during the applicable period. Dividend equivalents, settled in additional shares of Best Buy common stock, accrue on restricted stock and restricted stock unit awards during the vesting period. No dividend equivalents are paid on any restricted stock or restricted stock units that are forfeited prior to the vesting date. |
Comprehensive Income (Notes)
Comprehensive Income (Notes) | 3 Months Ended |
May 05, 2018 | |
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 months ended May 5, 2018 , and April 29, 2017 ($ in millions): Foreign Currency Translation Balances at February 3, 2018 $ 314 Foreign currency translation adjustments (4 ) Balances at May 5, 2018 $ 310 Balance at January 28, 2017 $ 279 Foreign currency translation adjustments (13 ) Balance at April 29, 2017 $ 266 The gains and losses on our net investment hedges, which are included in foreign currency translation adjustments, were not material for the periods presented. Foreign currency translation adjustments do not include a provision for income tax expense when earnings from foreign operations are considered to be indefinitely reinvested outside the U.S. At this time, we are still evaluating the earnings that are indefinitely reinvested outside the U.S. Refer to Note 10, Income Taxes, of the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended February 3, 2018, for additional information. |
Repurchase of Common Stock (Not
Repurchase of Common Stock (Notes) | 3 Months Ended |
May 05, 2018 | |
Equity [Abstract] | |
Repurchase of Common Stock | Repurchase of Common Stock In February 2017, our Board of Directors ("Board") authorized a $5.0 billion share repurchase program that superseded the previous $5.0 billion authorization from 2011. There is no expiration date governing the period over which we can repurchase shares under the February 2017 authorization. On March 1, 2018, we announced our intent to repurchase at least $1.5 billion of shares in fiscal 2019, which reflects an updated two-year plan of $3.5 billion compared to the original $3.0 billion two-year plan announced March 1, 2017. The following table presents information regarding the shares we repurchased during the three months ended May 5, 2018 , and April 29, 2017 ($ and shares in millions, except per share amounts): Three Months Ended May 5, 2018 April 29, 2017 Total cost of shares repurchased (1) $ 399 $ 384 Average price per share $ 71.78 $ 46.30 Number of shares repurchased (1) 5.6 8.3 (1) As of May 5, 2018 , $12 million , or 0.2 million shares, in trades remained unsettled. As of April 29, 2017 , $19 million , or 0.3 million shares, in trades remained unsettled. The liability for unsettled trades is included in Accrued liabilities on the Condensed Consolidated Balance Sheets. At May 5, 2018, $2.6 billion of the $5.0 billion of share repurchases authorized by our Board in February 2017 was available for future share repurchases. Between the end of the first quarter of fiscal 2019 on May 5, 2018, and June 5, 2018, we repurchased an incremental 1.6 million shares of our common stock at a cost of $120 million . |
Segments (Notes)
Segments (Notes) | 3 Months Ended |
May 05, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segments Our chief operating decision maker ("CODM") is our Chief Executive Officer. Our business is organized into two reportable segments: Domestic (which is comprised of all states, districts and territories of the U.S.) and International (which is comprised of all operations in Canada and Mexico). Our CODM has ultimate responsibility for enterprise decisions. Our CODM determines, in particular, resource allocation for, and monitors the performance of, the consolidated enterprise, the Domestic segment and the International segment. The Domestic segment managers and International segment managers have responsibility for operating decisions, allocating resources and assessing performance within their respective segments. Our CODM relies on internal management reporting that analyzes enterprise results to the net earnings level and segment results to the operating income level. We aggregate our Canada and Mexico businesses into one International operating segment. Our Domestic and International operating segments also represent our reportable segments. The accounting policies of the segments are the same. Revenue by reportable segment and product category were as follows for the three months ended May 5, 2018, and April 29, 2017 ($ in millions): Three Months Ended May 5, 2018 April 29, 2017 Revenue by reportable segment Domestic $ 8,412 $ 7,912 International 697 616 Total revenue $ 9,109 $ 8,528 Revenue by product category (1) Domestic Consumer Electronics $ 2,655 $ 2,582 Computing and Mobile Phones 3,899 3,576 Entertainment 548 572 Appliances 883 777 Services 393 371 Other 34 34 Total domestic revenue $ 8,412 $ 7,912 International Consumer Electronics $ 206 $ 179 Computing and Mobile Phones 331 297 Entertainment 43 44 Appliances 61 41 Services 39 40 Other 17 15 Total international revenue $ 697 $ 616 (1) Refer to our Annual Report on Form 10-K for the fiscal year ended February 3, 2018, for additional information regarding the key components of each revenue category. Operating income (loss) by reportable segment and the reconciliation to earnings before income tax expense were as follows for the three months ended May 5, 2018, and April 29, 2017 ($ in millions): Three Months Ended May 5, 2018 April 29, 2017 Domestic $ 267 $ 298 International (2 ) 2 Total operating income 265 300 Other income (expense) Investment income and other 11 11 Interest expense (19 ) (19 ) Earnings before income tax expense $ 257 $ 292 Assets by reportable segment were as follows as of May 5, 2018, February 3, 2018, and April 29, 2017 ($ in millions): May 5, 2018 February 3, 2018 April 29, 2017 Domestic $ 10,955 $ 11,553 $ 11,691 International 1,127 1,496 1,264 Total assets $ 12,082 $ 13,049 $ 12,955 |
Income Taxes Income Taxes (Note
Income Taxes Income Taxes (Notes) | 3 Months Ended |
May 05, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (“Tax Act”), which significantly changed U.S. tax law. Among other things, the Tax Act lowered the U.S. statutory tax rate from 35% to 21% effective January 1, 2018, broadened the base to which U.S. income tax applies, imposed a one-time deemed repatriation tax on net unremitted earnings of foreign subsidiaries not previously subject to U.S. income tax and changed how foreign earnings are subject to U.S. income tax. In response to the Tax Act, the Securities and Exchange Commission staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) that provides guidance on accounting for the impact of the Tax Act. SAB 118 allows companies to record provisional amounts to the extent that they are reasonably estimable and adjust them over time as more information becomes available, not to extend beyond the measurement period of one year from the enactment of the Tax Act. As a result of the Tax Act and in accordance with SAB 118, we recorded provisional tax expense in the fourth quarter of fiscal 2018 related to the deemed repatriation tax and the revaluation of deferred tax assets and liabilities to reflect the new tax rate. We have not made any measurement period adjustments related to these items during the first quarter of fiscal 2019. We continue to gather and analyze additional information needed to complete our accounting for these items and expect to complete our accounting within the one-year measurement period provided by SAB 118. Any adjustment to these amounts during the measurement period will be recorded in income tax expense in the period in which the analysis is complete. Beginning in fiscal 2019, the Tax Act created a provision known as the global intangible low-tax income (“GILTI”) that imposes a tax on certain earnings of foreign subsidiaries. Due to the complexity of the new GILTI tax rules, we are not yet able to reasonably determine the complete effects of this provision. Therefore, we have not yet elected a policy as to whether we will recognize deferred taxes for basis differences expected to reverse or record GILTI as a current period cost when incurred. We have, however, included an estimate of the current GILTI impact in our effective tax rate for fiscal 2019. Refer to Note 10, Income Taxes, of the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended February 3, 2018, for additional information. |
Contingencies (Notes)
Contingencies (Notes) | 3 Months Ended |
May 05, 2018 | |
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. Following discovery and motion practice 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. On June 23, 2017, the trial court denied plaintiff's request to file a new Motion for Class Certification. On October 30, 2017, plaintiffs filed with the trial court a motion for leave to file a second amended class action complaint which Best Buy opposed in a filing on November 6, 2017. That motion is pending. We continue to believe that the remaining individual plaintiff's allegations are without merit and intend to vigorously defend our company in this matter. In June 2011, a purported shareholder derivative action captioned, Salvatore M. Talluto, Derivatively and on Behalf of Best Buy Co., Inc. v. Richard M. Schulze, et al. , as Defendants and Best Buy Co., Inc. as Nominal Defendant, was filed against both present and former members of our Board serving during the relevant periods in fiscal 2011 and us as a nominal defendant in the U.S. District Court for the State of Minnesota. The lawsuit alleges that the director defendants breached their fiduciary duty, among other claims, including violation of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, in failing to correct public misrepresentations and material misstatements and/or omissions regarding our fiscal 2011 earnings projections and, for certain directors, selling stock while in possession of material adverse non-public information. Additionally, in July 2011, a similar purported class action was filed by a single shareholder, Daniel Himmel, against us and certain of our executive officers in the same court. In November 2011, the respective lawsuits of Salvatore M. Talluto and Daniel Himmel were consolidated into a new action captioned, In Re: Best Buy Co., Inc. Shareholder Derivative Litigation , and a stay ordered pending the close of discovery in the consolidated IBEW Local 98 Pension Fund v. Best Buy Co., Inc., et al. case. Additionally, in June 2015, a similar purported class action was filed by a single shareholder, Khuong Tran, derivatively on behalf of Best Buy Co., Inc. against us and certain of our executive officers and directors in the same court. The Khuong Tran lawsuit has also been stayed pending the close of discovery in IBEW. The plaintiffs in the above securities actions seek damages, including interest, equitable relief and reimbursement of the costs and expenses they incurred in the lawsuits. As stated above, we believe the allegations in the above securities actions are without merit, and we intend to defend these actions vigorously. Based on our assessment of the facts underlying the claims in the above securities actions, their respective procedural litigation history and the degree to which we intend to defend our company in these matters, the amount or range of reasonably possible losses, if any, cannot be estimated. Other Legal Proceedings We are involved in various other legal proceedings arising in the normal course of conducting business. For such legal proceedings, we have accrued an amount that reflects the aggregate liability deemed probable and estimable, but this amount is not material to our consolidated financial position, results of operations or cash flows. Because of the preliminary nature of many of these proceedings, the difficulty in ascertaining the applicable facts relating to many of these proceedings, the variable treatment of claims made in many of these proceedings and the difficulty of predicting the settlement value of many of these proceedings, we are not able to estimate an amount or range of any reasonably possible additional losses. However, based upon our historical experience, the resolution of these proceedings is not expected to have a material effect on our consolidated financial position, results of operations or cash flows. |
Basis of Presentation Basis of
Basis of Presentation Basis of Presentation (Tables) | 3 Months Ended |
May 05, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following table reconciles the Condensed Consolidated Balance Sheet line items impacted by the adoption of this standard on February 4, 2018 ($ in millions): February 3, 2018 As Reported ASU 2014-09 Adjustment on February 4, 2018 February 4, 2018 Adjusted Assets Other assets $ 374 $ (19 ) $ 355 Liabilities Unredeemed gift card liabilities 385 (69 ) 316 Deferred revenue 453 (26 ) 427 Accrued liabilities 864 (3 ) 861 Accrued income taxes 137 6 143 Equity Retained earnings 3,270 73 3,343 The following tables set forth the impact of adopting this standard on our Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Earnings as of and for the three months ended May 5, 2018 ($ in millions, except per share amounts): May 5, 2018 Impact of Changes to Condensed Consolidated Balance Sheets As Reported Balances without Adoption of ASU 2014-09 Effect of Change Higher/(Lower) (1) Assets Other current assets $ 473 $ 427 $ 46 Other assets 304 323 (19 ) Liabilities Unredeemed gift card liabilities 285 355 (70 ) Deferred revenue 371 395 (24 ) Accrued liabilities 780 736 44 Accrued income taxes 154 148 6 Equity Retained earnings 3,082 3,011 71 (1) Effect of change includes the opening retained earnings adjustment as detailed within the table above. Three months ended May 5, 2018 Impact of Changes to Condensed Consolidated Statements of Earnings As Reported Balances without Adoption of ASU 2014-09 Effect of Change Higher/(Lower) Revenue $ 9,109 $ 9,100 $ 9 Cost of goods sold 6,984 6,973 11 Gross profit 2,125 2,127 (2 ) Operating income 265 267 (2 ) Income tax expense 49 50 (1 ) Net earnings 208 209 (1 ) Basic earnings per share $ 0.74 $ 0.74 $ — Diluted earnings per share $ 0.72 $ 0.73 $ (0.01 ) |
Schedule of cash, cash equivalents and restricted cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets to the total shown within the Condensed Consolidated Statements of Cash Flows as of May 5, 2018, February 3, 2018, and April 29, 2017 ($ in millions): May 5, 2018 February 3, 2018 April 29, 2017 Cash and cash equivalents $ 1,848 $ 1,101 $ 1,651 Restricted cash included in Other current assets 201 199 183 Total cash, cash equivalents and restricted cash $ 2,049 $ 1,300 $ 1,834 |
Revenue Recognition Revenue R22
Revenue Recognition Revenue Recognition (Tables) | 3 Months Ended |
May 05, 2018 | |
Contract with Customer, Asset and Liability [Abstract] | |
Contract with Customer, Asset and Liability [Table Text Block] | The following table provides information about receivables and contract liabilities from our contracts with customers, which reflects the aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied as of May 5, 2018, and February 4, 2018 ($ in millions): May 5, 2018 February 4, 2018 Receivables, net of an allowance for doubtful accounts of $26 and $24, respectively $ 582 $ 674 Short-term contract liabilities included in: Unredeemed gift cards 285 316 Deferred revenue 371 408 Accrued liabilities 139 151 Long-term contract liabilities included in: Long-term liabilities 20 22 We establish allowances for uncollectible receivables based on historical collection trends and write-off history. The following table summarizes our allowance for doubtful account activity related to contracts with customers during the three months ended May 5, 2018 ($ in millions): Allowance for Doubtful Accounts Balances at February 4, 2018 $ 24 Charged to expenses or other accounts 11 Other (1) (9 ) Balances at May 5, 2018 $ 26 (1) Includes bad debt write-offs and recoveries and the effect of foreign currency fluctuations. The following table summarizes significant changes in our contract liability balances during the three months ended May 5, 2018 ($ in millions): Three Months Ended May 5, 2018 Revenue recognized that was included in the contract liability balance(s) as of February 4, 2018 $ 455 Revenue recognized from performance obligations satisfied in previous periods — Adjustments (1) (2 ) (1) Includes changes in the measure of progress, changes in the estimate of the transaction price or contract modifications. The following table includes estimated revenue from our contract liability balances expected to be recognized in future periods if performance of the contract is expected to have a duration of more than one year ($ in millions): May 5, 2018 (1) Remainder of fiscal 2019 $ 20 Fiscal 2020 15 Fiscal 2021 6 Fiscal 2022 2 Fiscal 2023 and thereafter 1 (1) We have elected to exclude unsatisfied performance obligations from contract liability balances with a duration of one year or less. The estimated transaction price disclosed above also does not include amounts of variable consideration attributable to contracts where the consideration is constrained at May 5, 2018. Further information about our forms of variable consideration are disclosed below. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
May 05, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table sets forth our financial assets and liabilities that were accounted for at fair value on a recurring basis at May 5, 2018 , February 3, 2018 , and April 29, 2017 , by level within the fair value hierarchy as determined by the valuation techniques we used to determine the fair value ($ in millions): Fair Value Hierarchy Fair Value at May 5, 2018 February 3, 2018 April 29, 2017 Assets Cash and cash equivalents Money market funds Level 1 $ 19 $ 21 $ 24 Commercial paper Level 2 — 90 260 Time deposits Level 2 200 65 11 Short-term investments Commercial paper Level 2 100 474 150 Time deposits Level 2 685 1,558 1,798 Other current assets Money market funds Level 1 58 3 2 Commercial paper Level 2 — 60 60 Foreign currency derivative instruments Level 2 3 2 7 Interest rate swap derivative instruments Level 2 5 — — Time deposits Level 2 101 101 101 Other assets Marketable securities that fund deferred compensation Level 1 99 99 97 Interest rate swap derivative instruments Level 2 — — 4 Liabilities Accrued liabilities Foreign currency derivative instruments Level 2 1 8 — Interest rate swap derivative instruments Level 2 — 1 — Long-term liabilities Interest rate swap derivative instruments Level 2 15 4 1 |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis | The following table summarizes the fair value remeasurements of property and equipment impairments recorded during the three months ended May 5, 2018 , and April 29, 2017 ($ in millions): Impairments Three Months Ended Remaining Net Carrying Value (1) May 5, 2018 April 29, 2017 May 5, 2018 April 29, 2017 Property and equipment (non-restructuring) $ 2 $ 5 $ — $ — (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 May 5, 2018 , and April 29, 2017 . |
Restructuring Charges (Tables)
Restructuring Charges (Tables) - Restructuring Program Best Buy Mobile [Member] | 3 Months Ended |
May 05, 2018 | |
Restructuring Cost and Reserve [Line Items] | |
Composition of Restructuring Charges | The composition of the restructuring charges we incurred for Best Buy Mobile during the three months ended May 5, 2018 , as well as the cumulative amount incurred through May 5, 2018 , were as follows ($ in millions): Three Months Ended Cumulative Amount May 5, 2018 May 5, 2018 Property and equipment impairments $ — $ 1 Termination benefits 1 9 Facility closure and other costs 29 29 Total restructuring charges $ 30 $ 39 |
Restructuring Accrual Activity | The following table summarizes our restructuring accrual activity during the three months ended May 5, 2018 , related to termination benefits and facility closure and other costs associated with Best Buy Mobile ($ in millions): Termination Benefits Facility Closure and Other Costs Total Balances at February 3, 2018 $ 8 $ — $ 8 Charges 1 29 30 Cash payments — (26 ) (26 ) Balances at May 5, 2018 $ 9 $ 3 $ 12 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
May 05, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt consisted of the following at Mat 5, 2018, February 3, 2018, and April 29, 2017 ($ in millions): May 5, 2018 February 3, 2018 April 29, 2017 2018 Notes $ 500 $ 500 $ 500 2021 Notes 650 650 650 Interest rate swap valuation adjustments (10 ) (5 ) 3 Subtotal 1,140 1,145 1,153 Debt discounts and issuance costs (2 ) (3 ) (4 ) Financing lease obligations 184 191 171 Capital lease obligations 20 22 27 Total long-term debt 1,342 1,355 1,347 Less: current portion 550 544 45 Total long-term debt, less current portion $ 792 $ 811 $ 1,302 |
Derivative Instruments Derivati
Derivative Instruments Derivative Instruments (Tables) | 3 Months Ended |
May 05, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The following tables present the gross fair values for outstanding derivative instruments and the corresponding classification at May 5, 2018 , and April 29, 2017 ($ in millions): Assets Contract Type Balance Sheet Location May 5, 2018 February 3, 2018 April 29, 2017 Derivatives designated as net investment hedges Other current assets $ 3 $ 2 $ 6 Derivatives designated as interest rate swaps Other current assets and Other assets 5 — 4 No hedge designation (foreign exchange forward contracts) Other current assets — — 1 Total $ 8 $ 2 $ 11 Liabilities Contract Type Balance Sheet Location May 5, 2018 February 3, 2018 April 29, 2017 Derivatives designated as net investment hedges Accrued liabilities $ 1 $ 7 $ — Derivatives designated as interest rate swaps Accrued liabilities and Long-term liabilities 15 5 1 No hedge designation (foreign exchange forward contracts) Accrued liabilities — 1 — Total $ 16 $ 13 $ 1 |
Derivative Instruments, Gain (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 months ended May 5, 2018 , and April 29, 2017 ($ in millions): Three Months Ended Three Months Ended May 5, 2018 April 29, 2017 Contract Type Pre-tax Gain Recognized in OCI Gain(Loss) Reclassified from Accumulated OCI to Earnings recognized in SG&A Pre-tax Gain Recognized in OCI Gain(Loss) Reclassified from Accumulated OCI to Earnings recognized in SG&A Derivatives designated as net investment hedges $ 16 $ — $ 8 $ — The following table presents the effects of derivatives not designated as hedging instruments on our Condensed Consolidated Statements of Earnings for the three months ended May 5, 2018 , and April 29, 2017 ($ in millions): Three Months Ended May 5, 2018 April 29, 2017 Contract Type Location of Gain Recognized Gain Recognized Gain Recognized No hedge designation (foreign exchange contracts) SG&A $ 1 $ 1 The following table presents the effects of interest rate derivatives and adjustments to the carrying value of long-term debt on our Condensed Consolidated Statements of Earnings for the three months ended May 5, 2018 , and April 29, 2017 ($ in millions): Gain (Loss) Recognized Contract Type Location of Gain (Loss) Recognized May 5, 2018 April 29, 2017 Interest rate swap contracts Interest Expense $ (5 ) $ (10 ) Adjustments to carrying value of long-term debt Interest Expense 5 10 Total $ — $ — |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | The following table presents the notional amounts of our derivative instruments at May 5, 2018 , February 3, 2018 , and April 29, 2017 ($ in millions): Notional Amount Contract Type May 5, 2018 February 3, 2018 April 29, 2017 Derivatives designated as net investment hedges $ 135 $ 462 $ 206 Derivatives designated as interest rate swap contracts 1,150 1,150 825 No hedge designation (foreign exchange forward contracts) 39 33 36 Total $ 1,324 $ 1,645 $ 1,067 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
May 05, 2018 | |
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 for the three months ended May 5, 2018 , and April 29, 2017 ($ and shares in millions, except per share amounts): Three Months Ended May 5, 2018 April 29, 2017 Numerator Net earnings $ 208 $ 188 Denominator Weighted-average common shares outstanding 282.6 309.2 Dilutive effect of stock compensation plan awards 5.7 5.8 Weighted-average common shares outstanding, assuming dilution 288.3 315.0 Basic earnings per share $ 0.74 $ 0.61 Diluted earnings per share $ 0.72 $ 0.60 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 3 Months Ended |
May 05, 2018 | |
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 months ended May 5, 2018 , and April 29, 2017 ($ in millions): Foreign Currency Translation Balances at February 3, 2018 $ 314 Foreign currency translation adjustments (4 ) Balances at May 5, 2018 $ 310 Balance at January 28, 2017 $ 279 Foreign currency translation adjustments (13 ) Balance at April 29, 2017 $ 266 |
Repurchase of Common Stock (Tab
Repurchase of Common Stock (Tables) | 3 Months Ended |
May 05, 2018 | |
Equity [Abstract] | |
Schedule of Repurchases of Common Stock [Table Text Block] | The following table presents information regarding the shares we repurchased during the three months ended May 5, 2018 , and April 29, 2017 ($ and shares in millions, except per share amounts): Three Months Ended May 5, 2018 April 29, 2017 Total cost of shares repurchased (1) $ 399 $ 384 Average price per share $ 71.78 $ 46.30 Number of shares repurchased (1) 5.6 8.3 (1) As of May 5, 2018 , $12 million , or 0.2 million shares, in trades remained unsettled. As of April 29, 2017 , $19 million , or 0.3 million shares, in trades remained unsettled. The liability for unsettled trades is included in Accrued liabilities on the Condensed Consolidated Balance Sheets. |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
May 05, 2018 | |
Segment Reporting [Abstract] | |
Reconciliation of revenue from segments to consolidated | Revenue by reportable segment and product category were as follows for the three months ended May 5, 2018, and April 29, 2017 ($ in millions): Three Months Ended May 5, 2018 April 29, 2017 Revenue by reportable segment Domestic $ 8,412 $ 7,912 International 697 616 Total revenue $ 9,109 $ 8,528 Revenue by product category (1) Domestic Consumer Electronics $ 2,655 $ 2,582 Computing and Mobile Phones 3,899 3,576 Entertainment 548 572 Appliances 883 777 Services 393 371 Other 34 34 Total domestic revenue $ 8,412 $ 7,912 International Consumer Electronics $ 206 $ 179 Computing and Mobile Phones 331 297 Entertainment 43 44 Appliances 61 41 Services 39 40 Other 17 15 Total international revenue $ 697 $ 616 (1) Refer to our Annual Report on Form 10-K for the fiscal year ended February 3, 2018, for additional information regarding the key components of each revenue category. |
Reconciliation of operating profit (loss) from segments to consolidated | Operating income (loss) by reportable segment and the reconciliation to earnings before income tax expense were as follows for the three months ended May 5, 2018, and April 29, 2017 ($ in millions): Three Months Ended May 5, 2018 April 29, 2017 Domestic $ 267 $ 298 International (2 ) 2 Total operating income 265 300 Other income (expense) Investment income and other 11 11 Interest expense (19 ) (19 ) Earnings before income tax expense $ 257 $ 292 |
Reconciliation of assets from segment to consolidated | Assets by reportable segment were as follows as of May 5, 2018, February 3, 2018, and April 29, 2017 ($ in millions): May 5, 2018 February 3, 2018 April 29, 2017 Domestic $ 10,955 $ 11,553 $ 11,691 International 1,127 1,496 1,264 Total assets $ 12,082 $ 13,049 $ 12,955 |
Basis of Presentation Narrative
Basis of Presentation Narrative (Details) $ in Millions | 3 Months Ended | ||
May 05, 2018USD ($) | Apr. 29, 2017USD ($) | Feb. 03, 2018USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Number of Weeks in Fiscal Period | 13 | 13 | |
Reporting period lag for consolidation of financial results | 1 month | ||
Schedule of Goodwill and Indefinite Lived Intangible Assets by Segment [Line Items] | |||
Goodwill | $ 425 | $ 425 | $ 425 |
Goodwill, net of cumulative impairment losses | 675 | 675 | |
Domestic Segment [Member] | |||
Schedule of Goodwill and Indefinite Lived Intangible Assets by Segment [Line Items] | |||
Intangible Assets, Net (Excluding Goodwill) | $ 18 | $ 18 |
Basis of Presentation Schedule
Basis of Presentation Schedule of On Adoption Impact of ASU 2014-09 (Details) - USD ($) $ in Millions | May 05, 2018 | Feb. 04, 2018 | Feb. 03, 2018 | Apr. 29, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Other assets | $ 304 | |||
Unredeemed gift card liabilities | 285 | $ 385 | $ 389 | |
Deferred revenue | 371 | 453 | 371 | |
Accrued liabilities | 780 | 864 | 699 | |
Accrued income taxes | 154 | 137 | 93 | |
Retained earnings | $ 3,082 | 3,270 | $ 4,202 | |
As reported [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Other assets | 374 | |||
Unredeemed gift card liabilities | 385 | |||
Deferred revenue | 453 | |||
Accrued liabilities | 864 | |||
Accrued income taxes | 137 | |||
Retained earnings | $ 3,270 | |||
Accounting Standards Update 2014-09 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Other assets | $ (19) | |||
Unredeemed gift card liabilities | (69) | |||
Deferred revenue | (26) | |||
Accrued liabilities | (3) | |||
Accrued income taxes | 6 | |||
Retained earnings | 73 | |||
Adjustments for New Accounting Pronouncement [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Other assets | 355 | |||
Unredeemed gift card liabilities | 316 | |||
Deferred revenue | 427 | |||
Accrued liabilities | 861 | |||
Accrued income taxes | 143 | |||
Retained earnings | $ 3,343 |
Basis of Presentation Schedul33
Basis of Presentation Schedule of Impact of ASU 2014-09 on Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Millions | May 05, 2018 | Feb. 03, 2018 | Apr. 29, 2017 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Other current assets | $ 473 | $ 438 | $ 409 |
Other assets | (304) | ||
Unredeemed gift card liabilities | (285) | (385) | (389) |
Deferred revenue | (371) | (453) | (371) |
Accrued liabilities | 780 | 864 | 699 |
Accrued income taxes | 154 | 137 | 93 |
Retained earnings | 3,082 | $ 3,270 | $ 4,202 |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Other current assets | 427 | ||
Other assets | (323) | ||
Unredeemed gift card liabilities | (355) | ||
Deferred revenue | (395) | ||
Accrued liabilities | 736 | ||
Accrued income taxes | 148 | ||
Retained earnings | 3,011 | ||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Other current assets | 46 | ||
Other assets | (19) | ||
Unredeemed gift card liabilities | (70) | ||
Deferred revenue | (24) | ||
Accrued liabilities | 44 | ||
Accrued income taxes | 6 | ||
Retained earnings | $ 71 |
Basis of Presentation Schedul34
Basis of Presentation Schedule of Impact of ASU 2014-09 on Condensed Consolidated Statements of Earnings (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
May 05, 2018 | Apr. 29, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue | $ 9,109 | $ 8,528 |
Cost of goods sold | 6,984 | 6,506 |
Gross profit | 2,125 | 2,022 |
Operating income | 265 | 300 |
Income tax expense | 49 | 104 |
Net earnings | $ 208 | $ 188 |
Basic earnings per share | $ 0.74 | $ 0.61 |
Diluted earnings per share | $ 0.72 | $ 0.60 |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue | $ 9,100 | |
Cost of goods sold | 6,973 | |
Gross profit | 2,127 | |
Operating income | 267 | |
Income tax expense | 50 | |
Net earnings | $ 209 | |
Basic earnings per share | $ 0.74 | |
Diluted earnings per share | $ 0.73 | |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue | $ 9 | |
Cost of goods sold | 11 | |
Gross profit | (2) | |
Operating income | (2) | |
Income tax expense | (1) | |
Net earnings | $ (1) | |
Basic earnings per share | $ 0 | |
Diluted earnings per share | $ (0.01) |
Basis of Presentation Total Cas
Basis of Presentation Total Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | May 05, 2018 | Feb. 03, 2018 | Apr. 29, 2017 | Jan. 28, 2017 |
Schedule of cash, cash equivalents and restricted cash [Line Items] | ||||
Cash and cash equivalents | $ 1,848 | $ 1,101 | $ 1,651 | |
Cash, cash equivalents and restricted cash at end of period | 2,049 | 1,300 | 1,834 | $ 2,433 |
Other Current Assets [Member] | ||||
Schedule of cash, cash equivalents and restricted cash [Line Items] | ||||
Restricted cash included in Other current assets | $ 201 | $ 199 | $ 183 |
Revenue Recognition Revenue R36
Revenue Recognition Revenue Recognition Narrative (Details) $ in Millions | May 05, 2018USD ($) |
Contract with Customer, Asset and Liability [Abstract] | |
Revenue Recognition Sales Returns Reserve | $ 68 |
Inventory Adjustments | $ 46 |
Gift card redemption within 1 year, percentage | 90.00% |
Revenue Recognition Contract wi
Revenue Recognition Contract with Customer (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 05, 2018 | Feb. 04, 2018 | |
Contract with Customer, Asset and Liability [Abstract] | ||
Contract with Customer, Asset, Net | $ 582 | $ 674 |
Contract with Customer, Liability, Current, Unredeemed gift cards | 285 | 316 |
Contract with Customer, Liability, Current, Deferred revenue | 371 | 408 |
Contract with Customer, Liability, Current, Accrued liabilities | 139 | 151 |
Contract with Customer, Liability, Noncurrent | 20 | 22 |
Contract with Customer, Asset, Accumulated Allowance for Credit Loss | 26 | $ 24 |
Valuation Allowances and Reserves, Additions for Charges to Cost and Expense | 11 | |
Valuation Allowances and Reserves, Other | $ (9) |
Revenue Recognition Change in C
Revenue Recognition Change in Contract with Customer (Details) $ in Millions | 3 Months Ended |
May 05, 2018USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Liability, Revenue Recognized | $ 455 |
Contract with Customer, Liability, Revenue Adjustments | $ (2) |
Revenue Recognition Revenue, Re
Revenue Recognition Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction (Details) $ in Millions | May 05, 2018USD ($) |
Revenue, Performance Obligation Satisfied over Time [Abstract] | |
Revenue, Remaining Performance Obligation, in next 12 Months | $ 20 |
Revenue, Remaining Performance Obligation, in Year 1 | 15 |
Revenue, Remaining Performance Obligation, in Year 2 | 6 |
Revenue, Remaining Performance Obligation, in Year 3 | 2 |
Revenue, Remaining Performance Obligation, in Year 4 and beyond | $ 1 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions | May 05, 2018 | Feb. 03, 2018 | Apr. 29, 2017 |
Level 1 | Money market funds | |||
Assets | |||
Cash and cash equivalents | $ 19 | $ 21 | $ 24 |
Other current assets | 58 | 3 | 2 |
Level 1 | Marketable securities that fund deferred compensation | |||
Assets | |||
Other assets | 99 | 99 | 97 |
Level 2 | Commercial paper | |||
Assets | |||
Cash and cash equivalents | 0 | 90 | 260 |
Short-term investments | 100 | 474 | 150 |
Other current assets | 0 | 60 | 60 |
Level 2 | Time deposits | |||
Assets | |||
Cash and cash equivalents | 200 | 65 | 11 |
Short-term investments | 685 | 1,558 | 1,798 |
Other current assets | 101 | 101 | 101 |
Level 2 | Foreign currency derivative instruments | |||
Assets | |||
Other current assets | 3 | 2 | 7 |
Liabilities | |||
Accrued liabilities | 1 | 8 | 0 |
Level 2 | Interest rate swap derivative instruments | |||
Assets | |||
Other current assets | 5 | 0 | 0 |
Other assets | 0 | 0 | 4 |
Liabilities | |||
Accrued liabilities | 0 | 1 | 0 |
Long-term liabilities | $ 15 | $ 4 | $ 1 |
Fair Value Measurements - Nonre
Fair Value Measurements - Nonrecurring (Details) - Fair Value, Measurements, Nonrecurring [Member] - Level 3 - Selling, General and Administrative Expenses [Member] - USD ($) $ in Millions | 3 Months Ended | ||
May 05, 2018 | Apr. 29, 2017 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Asset Impairment Charges | $ 2 | $ 5 | |
Remaining net carrying value | [1] | $ 0 | $ 0 |
[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 May 5, 2018, and April 29, 2017. |
Restructuring Charges Restructu
Restructuring Charges Restructuring Narrative (Details) $ in Millions | 3 Months Ended | |
May 05, 2018USD ($)store | Apr. 29, 2017USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 30 | $ 0 |
Restructuring Program Best Buy Mobile [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 30 | |
Number of Stores to be Closed | store | 257 |
Restructuring Charges Compositi
Restructuring Charges Composition of Restructuring Charges (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 05, 2018 | Apr. 29, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 30 | $ 0 |
Restructuring Program Best Buy Mobile [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 30 | |
Restructuring and Related Cost, Cost Incurred to Date | 39 | |
Restructuring Program Best Buy Mobile [Member] | Property and equipment write-downs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0 | |
Restructuring and Related Cost, Cost Incurred to Date | 1 | |
Restructuring Program Best Buy Mobile [Member] | Termination benefits | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 1 | |
Restructuring and Related Cost, Cost Incurred to Date | 9 | |
Restructuring Program Best Buy Mobile [Member] | Facility closure and other costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 29 | |
Restructuring and Related Cost, Cost Incurred to Date | $ 29 |
Restructuring Charges Restruc44
Restructuring Charges Restructuring Accrual Activity (Details) - Restructuring Program Best Buy Mobile [Member] $ in Millions | 3 Months Ended |
May 05, 2018USD ($) | |
Restructuring Reserve [Roll Forward] | |
Restructuring reserve, balance at the beginning of the period | $ 8 |
Charges | 30 |
Cash payments | (26) |
Restructuring reserve, balance at the end of the period | 12 |
Termination benefits | |
Restructuring Reserve [Roll Forward] | |
Restructuring reserve, balance at the beginning of the period | 8 |
Charges | 1 |
Cash payments | 0 |
Restructuring reserve, balance at the end of the period | 9 |
Facility closure and other costs [Member] | |
Restructuring Reserve [Roll Forward] | |
Restructuring reserve, balance at the beginning of the period | 0 |
Charges | 29 |
Cash payments | (26) |
Restructuring reserve, balance at the end of the period | $ 3 |
Restructuring Charges Restruc45
Restructuring Charges Restructuring Other (Details) - Facility closure and other costs [Member] $ in Millions | May 05, 2018USD ($) |
Restructuring Program Canadian Brand Consolidation [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve | $ 13 |
Restructuring Program 2013 Renew Blue [Member] [Domain] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve | 11 |
Other Restructuring [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve | $ 3 |
Debt Short-Term Debt (Details)
Debt Short-Term Debt (Details) - US Revolving Credit Facility, Five Year [Member] $ in Millions | May 05, 2018USD ($) |
Short-term Debt [Line Items] | |
Line of Credit Facility, Current Borrowing Capacity | $ 1,250 |
Line of Credit Facility, Previous Borrowing Capacity | 1,250 |
Long-term Line of Credit | $ 0 |
Debt Instrument, Basis Spread on Federal Funds Rate | 0.50% |
Debt Instrument, Basis Spread on Libor | 1.00% |
Debt Instrument, Lower Range on Annual Base Rate | 0.00% |
Debt Instrument, Higher Range on Annual Base Rate | 0.30% |
Debt Instrument, Basis Spread on Variable Rate, Low End of Range | 0.80% |
Debt Instrument, Basis Spread on Variable Rate, High End of Range | 1.30% |
Debt Instrument, Lower Range on Facility Fee | 0.08% |
Debt Instrument, Higher Range on Facility Fee | 0.20% |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Millions | May 05, 2018 | Feb. 03, 2018 | Apr. 29, 2017 |
Debt Instrument [Line Items] | |||
Interest rate swap valuation adjustments | $ (16) | $ (13) | $ (1) |
Total long-term debt, including current portion | 1,342 | 1,355 | 1,347 |
Current portion of long-term debt | 550 | 544 | 45 |
Total long-term debt, less current portion | 792 | 811 | 1,302 |
Long-term Debt, Fair Value | 1,176 | 1,199 | 1,229 |
Interest rate swap derivative instruments | |||
Debt Instrument [Line Items] | |||
Interest rate swap valuation adjustments | (15) | (5) | (1) |
Notes due 2018 | |||
Debt Instrument [Line Items] | |||
Long-term debt | 500 | 500 | 500 |
Notes due 2021 | |||
Debt Instrument [Line Items] | |||
Long-term debt | 650 | 650 | 650 |
Long-term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, excluding debt discounts and issuance costs and financing and capital lease obligations | 1,140 | 1,145 | 1,153 |
Debt discounts and issuance costs | (2) | (3) | (4) |
Financing lease obligations | 184 | 191 | 171 |
Capital lease obligations | 20 | 22 | 27 |
Long-term Debt [Member] | Interest rate swap derivative instruments | |||
Debt Instrument [Line Items] | |||
Interest rate swap valuation adjustments | $ (10) | $ (5) | $ 3 |
Derivative Instruments Deriva48
Derivative Instruments Derivative Instruments Narrative (Details) | 3 Months Ended |
May 05, 2018 | |
Net Investment Hedging [Member] | |
Derivative [Line Items] | |
Derivative, Term of Contract | 12 months |
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | |
Derivative [Line Items] | |
Derivative, Term of Contract | 12 months |
Derivative Instruments (Details
Derivative Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | ||
May 05, 2018 | Apr. 29, 2017 | Feb. 03, 2018 | |
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | $ 8 | $ 11 | $ 2 |
Derivative Liability, Fair Value, Gross Liability | 16 | 1 | 13 |
Notional Amount | 1,324 | 1,067 | 1,645 |
Net Investment Hedging [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | 3 | 6 | 2 |
Derivative Liability, Fair Value, Gross Liability | 1 | 0 | 7 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax | 16 | 8 | |
Notional Amount | 135 | 206 | 462 |
Interest rate swap derivative instruments | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | 5 | 4 | 0 |
Derivative Liability, Fair Value, Gross Liability | 15 | 1 | 5 |
Notional Amount | 1,150 | 825 | 1,150 |
Interest rate swap derivative instruments | Interest Expense [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Loss on Derivative | 5 | 10 | |
Derivative, Gain on Derivative | 5 | 10 | |
Net impact | 0 | 0 | |
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | 0 | 1 | 0 |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 | 1 |
Notional Amount | 39 | 36 | $ 33 |
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | Selling, General and Administrative Expenses [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $ 1 | $ 1 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
May 05, 2018 | Apr. 29, 2017 | |
Numerator | ||
Net earnings | $ 208 | $ 188 |
Denominator | ||
Weighted-average common shares outstanding (in shares) | 282.6 | 309.2 |
Effect of potentially dilutive securities: | ||
Nonvested share awards (in shares) | 5.7 | 5.8 |
Weighted-average common shares outstanding, assuming dilution (in shares) | 288.3 | 315 |
Basic (in dollars per share) | $ 0.74 | $ 0.61 |
Diluted earnings per share | $ 0.72 | $ 0.60 |
Antidilutive securities excluded from computation of earnings per share | 0.1 | 0.7 |
Comprehensive Income (Details)
Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 05, 2018 | Apr. 29, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Foreign Currency Translation, Beginning Balance | $ 314 | $ 279 |
Foreign currency translation adjustments | (4) | (13) |
Foreign Currency Translation, Ending Balance | $ 310 | $ 266 |
Repurchase of Common Stock (Det
Repurchase of Common Stock (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | |||||
Jun. 05, 2018 | May 05, 2018 | Apr. 29, 2017 | Mar. 01, 2018 | Feb. 27, 2017 | Jun. 30, 2011 | ||
Stock Repurchases [Line Items] | |||||||
Stock Repurchase Program, Authorized Amount | $ 1,500 | $ 3,000 | |||||
Total Share Repurchases [Domain] | |||||||
Stock Repurchases [Line Items] | |||||||
Stock Repurchased and Retired During Period, Value | $ 120 | ||||||
Stock Repurchased and Retired During Period, Shares | 1.6 | ||||||
Adjusted Balance [Member] | |||||||
Stock Repurchases [Line Items] | |||||||
Stock Repurchase Program, Authorized Amount | $ 3,500 | ||||||
Open market [Domain] | |||||||
Stock Repurchases [Line Items] | |||||||
Stock Repurchased and Retired During Period, Value | [1] | $ 399 | $ 384 | ||||
Average share price | $ 71.78 | $ 46.30 | |||||
Stock Repurchased and Retired During Period, Shares | [1] | 5.6 | 8.3 | ||||
Unsettled shares, cost | $ 12 | $ 19 | |||||
Unsettled shares, shares | 0.2 | 0.3 | |||||
February 2017 share repurchase program [Member] | |||||||
Stock Repurchases [Line Items] | |||||||
Stock Repurchase Program, Authorized Amount | $ 5,000 | ||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 2,600 | ||||||
June 2011 share repurchase program [Member} | |||||||
Stock Repurchases [Line Items] | |||||||
Stock Repurchase Program, Authorized Amount | $ 5,000 | ||||||
[1] | As of May 5, 2018, $12 million, or 0.2 million shares, in trades remained unsettled. As of April 29, 2017, $19 million, or 0.3 million shares, in trades remained unsettled. The liability for unsettled trades is included in Accrued liabilities on the Condensed Consolidated Balance Sheets. |
Segments Narrative (Details)
Segments Narrative (Details) | 3 Months Ended |
May 05, 2018segments | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segments Reconciliation of Reve
Segments Reconciliation of Revenue from Segments to Consolidated (Details) - USD ($) $ in Millions | 3 Months Ended | ||
May 05, 2018 | Apr. 29, 2017 | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenue | $ 9,109 | $ 8,528 | |
Domestic Segment [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenue | 8,412 | 7,912 | |
Domestic Segment [Member] | Consumer Electronics [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenue | [1] | 2,655 | 2,582 |
Domestic Segment [Member] | Computing and Mobile Phones [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenue | [1] | 3,899 | 3,576 |
Domestic Segment [Member] | Entertainment [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenue | [1] | 548 | 572 |
Domestic Segment [Member] | Appliances [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenue | [1] | 883 | 777 |
Domestic Segment [Member] | Services [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenue | [1] | 393 | 371 |
Domestic Segment [Member] | Other Segment [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenue | [1] | 34 | 34 |
International Segment [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenue | 697 | 616 | |
International Segment [Member] | Consumer Electronics [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenue | [1] | 206 | 179 |
International Segment [Member] | Computing and Mobile Phones [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenue | [1] | 331 | 297 |
International Segment [Member] | Entertainment [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenue | [1] | 43 | 44 |
International Segment [Member] | Appliances [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenue | [1] | 61 | 41 |
International Segment [Member] | Services [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenue | [1] | 39 | 40 |
International Segment [Member] | Other Segment [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenue | [1] | $ 17 | $ 15 |
[1] | (1)Refer to our Annual Report on Form 10-K for the fiscal year ended February 3, 2018, for additional information regarding the key components of each revenue category. |
Segments Reconciliation of Oper
Segments Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 05, 2018 | Apr. 29, 2017 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Operating income (loss) | $ 265 | $ 300 |
Investment income and other | 11 | 11 |
Interest expense | (19) | (19) |
Earnings before income tax expense | 257 | 292 |
Domestic Segment [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Operating income (loss) | 267 | 298 |
International Segment [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Operating income (loss) | $ (2) | $ 2 |
Segments Reconciliation of Asse
Segments Reconciliation of Assets from Segment to Consolidated (Details) - USD ($) $ in Millions | May 05, 2018 | Feb. 03, 2018 | Apr. 29, 2017 |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | $ 12,082 | $ 13,049 | $ 12,955 |
Domestic Segment [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 10,955 | 11,553 | 11,691 |
International Segment [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | $ 1,127 | $ 1,496 | $ 1,264 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended |
May 05, 2018 | |
Effective Income Tax Rate [Line Items] | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% |
Adjustment for Tax Act [Member] | |
Effective Income Tax Rate [Line Items] | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% |