Document Information Statement
Document Information Statement - shares | 9 Months Ended | |
Oct. 28, 2023 | Nov. 29, 2023 | |
Document Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 28, 2023 | |
Document Fiscal Year Focus | 2024 | |
Current Fiscal Year End Date | --02-03 | |
Document Transition Report | false | |
Entity File Number | 1-9595 | |
Entity Registrant Name | BEST BUY CO., INC. | |
Entity Incorporation, State or Country Code | MN | |
Entity Address, Address Line One | 7601 Penn Avenue South | |
Entity Address, City or Town | Richfield | |
Entity Address, State or Province | MN | |
Entity Tax Identification Number | 41-0907483 | |
Entity Address, Postal Zip Code | 55423 | |
City Area Code | 612 | |
Local Phone Number | 291-1000 | |
Title of 12(b) Security | Common Stock, $0.10 par value per share | |
Trading Symbol | BBY | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 215,395,970 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000764478 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Oct. 28, 2023 | Jan. 28, 2023 | Oct. 29, 2022 |
Current assets | |||
Cash and cash equivalents | $ 636 | $ 1,874 | $ 932 |
Receivables, net | 901 | 1,141 | 1,050 |
Merchandise inventories | 7,562 | 5,140 | 7,294 |
Other current assets | 766 | 647 | 646 |
Total current assets | 9,865 | 8,802 | 9,922 |
Property and equipment, net | 2,313 | 2,352 | 2,373 |
Operating lease assets | 2,827 | 2,746 | 2,799 |
Goodwill | 1,383 | 1,383 | 1,383 |
Other assets | 494 | 520 | 544 |
Total assets | 16,882 | 15,803 | 17,021 |
Current liabilities | |||
Accounts payable | 7,133 | 5,687 | 7,056 |
Accrued compensation and related expenses | 309 | 405 | 363 |
Accrued liabilities | 760 | 843 | 744 |
Current portion of operating lease liabilities | 614 | 638 | 638 |
Current portion of long-term debt | 15 | 16 | 16 |
Total current liabilities | 10,010 | 8,979 | 10,170 |
Long-term operating lease liabilities | 2,270 | 2,164 | 2,216 |
Long-term debt | 1,130 | 1,160 | 1,142 |
Long-term liabilities | 660 | 705 | 500 |
Contingencies (Note 10) | |||
Equity | |||
Preferred stock, $1.00 par value: Authorized - 400,000 shares; Issued and outstanding - none | |||
Common stock, $0.10 par value: Authorized - 1.0 billion shares; Issued and outstanding - 216.3 million, 218.1 million and 225.2 million shares, respectively | 22 | 22 | 22 |
Additional paid-in capital | 21 | 61 | |
Retained earnings | 2,482 | 2,430 | 2,597 |
Accumulated other comprehensive income | 308 | 322 | 313 |
Total equity | 2,812 | 2,795 | 2,993 |
Total liabilities and equity | 16,882 | 15,803 | 17,021 |
Gift Card [Member] | |||
Current liabilities | |||
Short-term contract liabilities | 245 | 274 | 273 |
Deferred Revenue [Member] | |||
Current liabilities | |||
Short-term contract liabilities | $ 934 | $ 1,116 | $ 1,080 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Oct. 28, 2023 | Jan. 28, 2023 | Oct. 29, 2022 |
Condensed Consolidated Balance Sheets [Abstract] | |||
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 | 216,300,000 | 218,100,000 | 225,200,000 |
Common stock, outstanding shares | 216,300,000 | 218,100,000 | 225,200,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Condensed Consolidated Statements of Earnings [Abstract] | ||||
Revenue | $ 9,756 | $ 10,587 | $ 28,806 | $ 31,563 |
Cost of sales | 7,524 | 8,255 | 22,204 | 24,591 |
Gross profit | 2,232 | 2,332 | 6,602 | 6,972 |
Selling, general and administrative expenses | 1,878 | 1,941 | 5,605 | 5,713 |
Restructuring charges | 26 | (16) | 61 | |
Operating income | 354 | 365 | 1,013 | 1,198 |
Other income (expense): | ||||
Gain on sale of subsidiary, net | 21 | |||
Investment income and other | 8 | 4 | 41 | 2 |
Interest expense | (14) | (10) | (38) | (23) |
Earnings before income tax expense and equity in income (loss) of affiliates | 348 | 359 | 1,037 | 1,177 |
Income tax expense | 86 | 84 | 257 | 252 |
Equity in income (loss) of affiliates | 1 | 2 | 1 | (1) |
Net earnings | $ 263 | $ 277 | $ 781 | $ 924 |
Basic earnings per share | $ 1.21 | $ 1.23 | $ 3.58 | $ 4.09 |
Diluted earnings per share | $ 1.21 | $ 1.22 | $ 3.57 | $ 4.07 |
Weighted-average common shares outstanding: | ||||
Basic | 217.8 | 225.5 | 218.4 | 225.9 |
Diluted | 218.3 | 226.2 | 219.1 | 226.9 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Condensed Consolidated Statements of Comprehensive Income [Abstract] | ||||
Net earnings | $ 263 | $ 277 | $ 781 | $ 924 |
Foreign currency translation adjustments, net of tax | (14) | (15) | (14) | (16) |
Comprehensive income | $ 249 | $ 262 | $ 767 | $ 908 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Oct. 28, 2023 | Oct. 29, 2022 | |
Operating activities | ||
Net earnings | $ 781 | $ 924 |
Adjustments to reconcile net earnings to total cash provided by (used in) operating activities: | ||
Depreciation and amortization | 702 | 679 |
Restructuring charges | (16) | 61 |
Stock-based compensation | 110 | 98 |
Gain on sale of subsidiary, net | (21) | |
Other, net | 7 | 19 |
Changes in operating assets and liabilities: | ||
Receivables | 240 | (14) |
Merchandise inventories | (2,444) | (1,365) |
Other assets | (17) | (1) |
Accounts payable | 1,468 | 224 |
Income taxes | (200) | 28 |
Other liabilities | (320) | (761) |
Total cash provided by (used in) operating activities | 290 | (108) |
Investing activities | ||
Additions to property and equipment | (612) | (696) |
Purchases of investments | (7) | (46) |
Net proceeds from sale of subsidiary | 14 | |
Other, net | 5 | 6 |
Total cash used in investing activities | (600) | (736) |
Financing activities | ||
Repurchase of common stock | (270) | (465) |
Dividends paid | (603) | (595) |
Other, net | 1 | 2 |
Total cash used in financing activities | (872) | (1,058) |
Effect of exchange rate changes on cash and cash equivalents | (12) | (10) |
Decrease in cash, cash equivalents and restricted cash | (1,194) | (1,912) |
Cash, cash equivalents and restricted cash at beginning of period | 2,253 | 3,205 |
Cash, cash equivalents and restricted cash at end of period | $ 1,059 | $ 1,293 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Shareholders' Equity - USD ($) shares in Millions, $ in Millions | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balances at Jan. 29, 2022 | $ 23 | $ 2,668 | $ 329 | $ 3,020 | |
Balances (in shares) at Jan. 29, 2022 | 227.4 | ||||
Net earnings | 924 | 924 | |||
Other comprehensive loss: | |||||
Foreign currency translation adjustments, net of tax | (16) | (16) | |||
Stock-based compensation | $ 98 | 98 | |||
Issuance of common stock | 15 | 15 | |||
Issuance of common stock (in shares) | 2.4 | ||||
Common stock dividends | 10 | (606) | (596) | ||
Repurchase of common stock | $ (1) | (62) | (389) | $ (452) | |
Repurchase of common stock (in shares) | (4.6) | (4.6) | |||
Balances at Oct. 29, 2022 | $ 22 | 61 | 2,597 | 313 | $ 2,993 |
Balances (in shares) at Oct. 29, 2022 | 225.2 | ||||
Balances at Jul. 30, 2022 | $ 22 | 20 | 2,522 | 328 | 2,892 |
Balances (in shares) at Jul. 30, 2022 | 225.1 | ||||
Net earnings | 277 | 277 | |||
Other comprehensive loss: | |||||
Foreign currency translation adjustments, net of tax | (15) | (15) | |||
Stock-based compensation | 33 | 33 | |||
Issuance of common stock | 5 | 5 | |||
Issuance of common stock (in shares) | 0.1 | ||||
Common stock dividends | 3 | (202) | (199) | ||
Balances at Oct. 29, 2022 | $ 22 | 61 | 2,597 | 313 | 2,993 |
Balances (in shares) at Oct. 29, 2022 | 225.2 | ||||
Balances at Jan. 28, 2023 | $ 22 | 21 | 2,430 | 322 | 2,795 |
Balances (in shares) at Jan. 28, 2023 | 218.1 | ||||
Net earnings | 781 | 781 | |||
Other comprehensive loss: | |||||
Foreign currency translation adjustments, net of tax | (14) | (14) | |||
Stock-based compensation | 110 | 110 | |||
Issuance of common stock | 17 | 17 | |||
Issuance of common stock (in shares) | 1.9 | ||||
Common stock dividends | 11 | (614) | (603) | ||
Repurchase of common stock | (159) | (115) | $ (274) | ||
Repurchase of common stock (in shares) | (3.7) | (3.7) | |||
Balances at Oct. 28, 2023 | $ 22 | 2,482 | 308 | $ 2,812 | |
Balances (in shares) at Oct. 28, 2023 | 216.3 | ||||
Balances at Jul. 29, 2023 | $ 22 | 2,491 | 322 | 2,835 | |
Balances (in shares) at Jul. 29, 2023 | 217.9 | ||||
Net earnings | 263 | 263 | |||
Other comprehensive loss: | |||||
Foreign currency translation adjustments, net of tax | (14) | (14) | |||
Stock-based compensation | 35 | 35 | |||
Issuance of common stock | 7 | 7 | |||
Issuance of common stock (in shares) | 0.1 | ||||
Common stock dividends | 4 | (204) | (200) | ||
Repurchase of common stock | $ (46) | (68) | $ (114) | ||
Repurchase of common stock (in shares) | (1.7) | (1.8) | |||
Balances at Oct. 28, 2023 | $ 22 | $ 2,482 | $ 308 | $ 2,812 | |
Balances (in shares) at Oct. 28, 2023 | 216.3 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Condensed Consolidated Statements of Changes in Shareholders' Equity [Abstract] | ||||
Common Stock, Dividends, Per Share, Declared | $ 0.92 | $ 0.88 | $ 2.76 | $ 2.64 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Oct. 28, 2023 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | 1. Basis of Presentation Unless the context otherwise requires, the use of the terms “Best Buy,” “we,” “us” and “our” in these Notes to Condensed Consolidated Financial Statements refers to Best Buy Co., Inc. and, as applicable, its consolidated subsidiaries. In the opinion of management, the accompanying condensed consolidated financial statements contain all adjustments necessary for a fair presentation as prescribed by accounting principles generally accepted in the U.S. (“GAAP”). All adjustments were comprised of normal recurring adjustments, except as noted in these Notes to Condensed Consolidated Financial Statements. A large proportion of our revenue and earnings is generated in the fiscal fourth quarter, which includes the majority of the holiday shopping season. 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 January 28, 2023. The first nine months of fiscal 2024 and fiscal 2023 included 39 weeks. In preparing the accompanying condensed consolidated financial statements, we evaluated the period from October 28, 2023, through the date the financial statements were issued for material subsequent events requiring recognition or disclosure. No such events were identified. Sale of Subsidiary In the second quarter of fiscal 2024, we completed the sale of a Mexico subsidiary subsequent to our exit from operations in Mexico and recognized a $ 21 million gain within Gain on sale of subsidiary, net on our Condensed Consolidated Statements of Earnings for the nine months ended October 28, 2023. Adopted Accounting Pronouncements In the first quarter of fiscal 2024, we adopted Accounting Standards Update 2022-04 (“ASU 2022-04”), Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations . ASU 2022-04 requires entities to disclose the key terms of supplier finance programs they use in connection with the purchase of goods and services, along with the amount of obligations outstanding at the end of each period and an annual roll-forward of such obligations. Below are the interim disclosures as a result of ASU 2022-04. Supply Chain Financing We have a supply chain financing program with an independent financial institution, whereby some of our suppliers have the opportunity to receive accounts payable settlements early, at a discount, facilitated by the financial institution. Under this program, the financial institution agrees to terms with our suppliers, including amounts that are eligible for early payment, the timing of such payments and the discounts. The financial institution then pays the supplier based on the payment terms agreed to. Suppliers’ participation in this program is at their own option. The financial institution can vary discounts offered at their own discretion. Our rights and obligations to our suppliers – which are typically formalized in standardized agreements – are not affected by the existence of the program. Our liability associated with the funded participation in the program, which is included in Accounts payable on our Condensed Consolidated Balance Sheets, was $ 680 million, $ 386 million and $ 713 million as of October 28, 2023, January 28, 2023, and October 29, 2022, respectively. Total Cash, Cash Equivalents and Restricted Cash Cash, cash equivalents and restricted cash reported on our Condensed Consolidated Balance Sheets are reconciled to the total shown on our Condensed Consolidated Statements of Cash Flows as follows ($ in millions): October 28, 2023 January 28, 2023 October 29, 2022 Cash and cash equivalents $ 636 $ 1,874 $ 932 Restricted cash included in Other current assets 423 379 361 Total cash, cash equivalents and restricted cash $ 1,059 $ 2,253 $ 1,293 Amounts included in restricted cash are primarily restricted to cover product protection plans provided under our membership offerings and other self-insurance liabilities. Reclassifications Certain reclassifications of immaterial amounts previously reported have been made to the accompanying Condensed Consolidated Statements of Cash Flows to maintain consistency and comparability between periods presented. |
Restructuring
Restructuring | 9 Months Ended |
Oct. 28, 2023 | |
Restructuring [Abstract] | |
Restructuring | 2. Restructuring Fiscal 2023 Resource Optimization Initiative In light of ongoing changes in business trends, during the second quarter of fiscal 2023, we commenced an enterprise-wide initiative to better align our spending with critical strategies and operations, as well as to optimize our cost structure. We do not expect to incur material future restructuring charges related to this initiative. All charges incurred related to this initiative were comprised of employee termination benefits from continuing operations and were presented within Restructuring charges on our Condensed Consolidated Statements of Earnings as follows ($ in millions): Three Months Ended Nine Months Ended Cumulative Amount October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022 As of October 28, 2023 Domestic $ 1 $ 25 $ ( 14 ) $ 59 $ 126 International ( 1 ) - ( 2 ) - 3 Total $ - $ 25 $ ( 16 ) $ 59 $ 129 Restructuring accrual activity related to this initiative was as follows ($ in millions): Termination Benefits Domestic International Total Balances at January 29, 2022 $ - $ - $ - Charges 62 - 62 Cash payments ( 28 ) - ( 28 ) Adjustments (1) ( 3 ) - ( 3 ) Balances at October 29, 2022 $ 31 $ - $ 31 Balances at January 28, 2023 $ 102 $ 5 $ 107 Cash payments ( 64 ) ( 3 ) ( 67 ) Adjustments (1) ( 14 ) ( 2 ) ( 16 ) Balances at October 28, 2023 $ 24 $ - $ 24 (1) Represents adjustments primarily related to higher-than-expected employee retention from previously planned organizational changes. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Oct. 28, 2023 | |
Goodwill and Intangible Assets [Abstract] | |
Goodwill and Intangible Assets | 3. Goodwill and Intangible Assets Goodwill Goodwill balances were as follows ($ in millions): October 28, 2023 January 28, 2023 October 29, 2022 Gross Carrying Amount Cumulative Impairment Gross Carrying Amount Cumulative Impairment Gross Carrying Amount Cumulative Impairment Domestic $ 1,450 $ ( 67 ) $ 1,450 $ ( 67 ) $ 1,450 $ ( 67 ) International 608 ( 608 ) 608 ( 608 ) 608 ( 608 ) Total $ 2,058 $ ( 675 ) $ 2,058 $ ( 675 ) $ 2,058 $ ( 675 ) No impairment charges were recorded during the periods presented. Definite-Lived Intangible Assets We have definite-lived intangible assets recorded within Other assets on our Condensed Consolidated Balance Sheets as follows ($ in millions): October 28, 2023 January 28, 2023 October 29, 2022 Weighted-Average Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Useful Life Remaining as of October 28, 2023 (in years) Customer relationships $ 360 $ 274 $ 360 $ 236 $ 360 $ 222 10.3 Tradenames 108 66 108 56 108 52 5.0 Developed technology 64 59 64 51 64 48 4.0 Total $ 532 $ 399 $ 532 $ 343 $ 532 $ 322 8.4 Amortization expense was as follows ($ in millions): Three Months Ended Nine Months Ended Statement of Earnings Location October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022 Amortization expense SG&A $ 15 $ 21 $ 56 $ 65 Amortization expense expected to be recognized in future periods is as follows ($ in millions): Amortization Expense Remainder of fiscal 2024 $ 6 Fiscal 2025 21 Fiscal 2026 21 Fiscal 2027 18 Fiscal 2028 12 Fiscal 2029 10 Thereafter 45 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Oct. 28, 2023 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 4 . Fair Value Measurements Fair value measurements are reported in one of three levels based on the lowest level of significant input used: Level 1 (unadjusted quoted prices in active markets); Level 2 (observable market inputs, other than quoted prices included in Level 1); and Level 3 (unobservable inputs that cannot be corroborated by observable market data). Recurring Fair Value Measurements Financial assets accounted for at fair value were as follows ($ in millions): Fair Value at Balance Sheet Location (1) Fair Value Hierarchy October 28, 2023 January 28, 2023 October 29, 2022 Assets Money market funds (2) Cash and cash equivalents Level 1 $ 3 $ 280 $ 76 Time deposits (3) Cash and cash equivalents Level 2 26 203 25 Money market funds (2) Other current assets Level 1 170 178 176 Time deposits (3) Other current assets Level 2 81 - - Marketable securities that fund deferred compensation (4) Other assets Level 1 44 47 44 Liabilities Interest rate swap derivative instruments (5) Long-term liabilities Level 2 36 7 27 (1) Balance sheet location is determined by the length to maturity at date of purchase and whether the assets are restricted for particular use. (2) Valued at quoted market prices in active markets at period end. (3) Valued at face value plus accrued interest at period end, which approximates fair value. (4) Valued using the performance of mutual funds that trade with sufficient frequency and volume to obtain pricing information on an ongoing basis. (5) Valued using readily observable market inputs. These instruments are custom, over-the-counter contracts with various bank counterparties that are not traded on an active market. See Note 5, Derivative Instruments , for additional information. Fair Value of Financial Instruments The fair values of cash, certain restricted cash, receivables, accounts payable and other payables approximated their carrying values because of the short-term nature of these instruments. If these instruments were measured at fair value in the financial statements, they would be classified as Level 1 in the fair value hierarchy. Fair values for other investments held at cost are not readily available, but we estimate that the carrying values for these investments approximate their fair values. Long-term debt is presented at carrying value on our Condensed Consolidated Balance Sheets. If our long-term debt were recorded at fair value, it would be classified as Level 2 in the fair value hierarchy. Long-term debt balances were as follows ($ in millions): October 28, 2023 January 28, 2023 October 29, 2022 Fair Value Carrying Value Fair Value Carrying Value Fair Value Carrying Value Long-term debt (1) $ 931 $ 1,114 $ 1,019 $ 1,143 $ 925 $ 1,123 (1) Excludes debt discou nts, issuance costs and finance lease obligations. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Oct. 28, 2023 | |
Derivative Instruments [Abstract] | |
Derivative Instruments | 5. Derivative Instruments We manage our economic and transaction exposure to certain risks by using foreign exchange forward contracts to hedge against the effect of Canadian dollar exchange rate fluctuations on a portion of our net investment in our Canadian operations and by using interest rate swaps to mitigate the effect of interest rate fluctuations on our $ 500 million of principal amount of notes due October 1, 2028. In addition, we use foreign currency forward contracts not designated as hedging instruments to manage the impact of fluctuations in foreign currency exchange rates relative to recognized receivable and payable balances denominated in non-functional currencies. Our derivative instruments designated as net investment hedges and interest rate swaps are recorded on our Condensed Consolidated Balance Sheets at fair value. When significant, the gross fair values of our outstanding derivative instruments and corresponding fair value classifications are included in Note 4, Fair Value Measurements . Notional amounts of our derivative instruments were as follows ($ in millions): Contract Type October 28, 2023 January 28, 2023 October 29, 2022 Derivatives designated as net investment hedges $ 102 $ 114 $ 118 Derivatives designated as interest rate swap contracts 500 500 500 No hedge designation (foreign exchange contracts) 93 56 112 Total $ 695 $ 670 $ 730 Effects of our derivative instruments on our Condensed Consolidated Statements of Earnings were as follows ($ in millions): Gain (Loss) Recognized Three Months Ended Nine Months Ended Statement of Earnings Location October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022 Interest rate swap contracts Interest expense $ ( 15 ) $ ( 45 ) $ ( 29 ) $ ( 76 ) Adjustments to carrying value of long-term debt Interest expense 15 45 29 76 Total $ - $ - $ - $ - |
Debt
Debt | 9 Months Ended |
Oct. 28, 2023 | |
Debt [Abstract] | |
Debt | 6. Debt Short-Term Debt U.S. Revolving Credit Facility On April 12, 2023, 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 entered into in May 2021 and scheduled to expire in May 2026, but was terminated on April 12, 2023. The Five-Year Facility Agreement permits borrowings of up to $ 1.25 billion and expires in April 2028. There were no borrowings outstanding under the Five-Year Facility Agreement as of October 28, 2023, or the Previous Facility as of January 28, 2023, or October 29, 2022. Long-Term Debt Long-term debt consisted of the following ($ in millions): October 28, 2023 January 28, 2023 October 29, 2022 Notes, 4.45 %, due October 1, 2028 $ 500 $ 500 $ 500 Notes, 1.95 %, due October 1, 2030 650 650 650 Interest rate swap valuation adjustments ( 36 ) ( 7 ) ( 27 ) Subtotal 1,114 1,143 1,123 Debt discounts and issuance costs ( 8 ) ( 9 ) ( 9 ) Finance lease obligations 39 42 44 Total long-term debt 1,145 1,176 1,158 Less current portion 15 16 16 Total long-term debt, less current portion $ 1,130 $ 1,160 $ 1,142 Fair Value and Future Maturities See Note 4, Fair Value Measurements , for the fair value of long-term debt. Other than the $ 500 million of principal amount of notes due October 1, 2028, we do no t have any future maturities of long-term debt within the next five fiscal years. |
Revenue
Revenue | 9 Months Ended |
Oct. 28, 2023 | |
Revenue [Abstract] | |
Revenue | 7. Revenue We generate substantially all of our revenue from contracts with customers from the sale of products and services. Contract balances primarily consist of receivables and liabilities related to unfulfilled membership benefits and services not yet completed, product merchandise not yet delivered to customers, deferred revenue from our private label and co-branded credit card arrangement and unredeemed gift cards. Contract balances were as follows ($ in millions): October 28, 2023 January 28, 2023 October 29, 2022 Receivables, net (1) $ 555 $ 581 $ 654 Short-term contract liabilities included in: Unredeemed gift card liabilities 245 274 273 Deferred revenue 934 1,116 1,080 Accrued liabilities 59 66 77 Long-term contract liabilities included in: Long-term liabilities 250 265 5 (1) Receivables are recorded net of allowances for doubtful accounts of $ 19 million, $ 22 million and $ 20 million as of October 28, 2023, January 28, 2023, and October 29, 2022, respectively. During the first nine months of fiscal 2024 and fiscal 2023, $ 1,192 million and $ 1,251 million of revenue was recognized, respectively, that was included in the contract liabilities at the beginning of the respective periods. Estimated revenue from our contract liability balances expected to be recognized in future periods if the performance of the contract is expected to have an initial duration of more than one year is as follows ($ in millions): Fiscal Year Amount Remainder of fiscal 2024 $ 10 Fiscal 2025 31 Fiscal 2026 30 Fiscal 2027 24 Fiscal 2028 24 Fiscal 2029 24 Thereafter 136 See Note 11, Segments , for information on our revenue by reportable segment and product category. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Oct. 28, 2023 | |
Earnings per Share [Abstract] | |
Earnings per Share | 8. 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. Reconciliations of the numerators and denominators of basic and diluted earnings per share were as follows ($ and shares in millions, except per share amounts): Three Months Ended Nine Months Ended October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022 Numerator Net earnings $ 263 $ 277 $ 781 $ 924 Denominator Weighted-average common shares outstanding 217.8 225.5 218.4 225.9 Dilutive effect of stock compensation plan awards 0.5 0.7 0.7 1.0 Weighted-average common shares outstanding, assuming dilution 218.3 226.2 219.1 226.9 Potential shares which were anti-dilutive and excluded from weighted-average share computations 0.3 2.3 0.4 2.3 Basic earnings per share $ 1.21 $ 1.23 $ 3.58 $ 4.09 Diluted earnings per share $ 1.21 $ 1.22 $ 3.57 $ 4.07 |
Repurchase of Common Stock
Repurchase of Common Stock | 9 Months Ended |
Oct. 28, 2023 | |
Repurchase of Common Stock [Abstract] | |
Repurchase of Common Stock | 9. Repurchase of Common Stock On February 28, 2022, our Board of Directors approved a $ 5.0 billion share repurchase program, which replaced the $ 5.0 billion share repurchase program authorized on February 16, 2021. There is no expiration date governing the period over which we can repurchase shares under this authorization . Information regarding share repurchases was as follows ($ and shares in millions, except per share amounts): Three Months Ended Nine Months Ended October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022 Total cost of shares repurchased $ 128 $ - $ 278 $ 452 Average price per share $ 71.61 $ - $ 74.16 $ 96.83 Total number of shares repurchased 1.8 - 3.7 4.6 As of October 28, 2023, $ 3.8 billion of the $ 5.0 billion share repurchase authorization was available. Between the end of the third quarter of fiscal 2024 on October 28, 2023, and November 29, 2023, we repurchased an incremental 1.0 million shares of our common stock at a cost of $ 63 million. We currently expect total share repurchases of approximately $ 350 million in fiscal 2024. |
Contingencies
Contingencies | 9 Months Ended |
Oct. 28, 2023 | |
Contingencies [Abstract] | |
Contingencies | 10. Contingencies We are involved in a number of legal proceedings. Where appropriate, we have made accruals with respect to these matters, which are reflected on our Condensed Consolidated Financial Statements. However, there are cases where liability is not probable or the amount cannot be reasonably estimated and, therefore, accruals have not been made. We provide disclosure of matters where we believe it is reasonably possible the impact may be material to our Condensed Consolidated Financial Statements. |
Segments
Segments | 9 Months Ended |
Oct. 28, 2023 | |
Segments [Abstract] | |
Segments | 11. Segments Reportable segment and product category revenue information was as follows ($ in millions): Three Months Ended Nine Months Ended October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022 Revenue by reportable segment Domestic $ 8,996 $ 9,800 $ 26,687 $ 29,263 International 760 787 2,119 2,300 Total revenue $ 9,756 $ 10,587 $ 28,806 $ 31,563 Revenue by product category Domestic: Computing and Mobile Phones $ 3,938 $ 4,337 $ 11,300 $ 12,586 Consumer Electronics 2,589 2,889 7,839 8,630 Appliances 1,238 1,469 3,961 4,717 Entertainment 594 500 1,729 1,581 Services 563 533 1,650 1,538 Other 74 72 208 211 Total Domestic revenue $ 8,996 $ 9,800 $ 26,687 $ 29,263 International: Computing and Mobile Phones $ 378 $ 389 $ 1,003 $ 1,060 Consumer Electronics 200 220 578 657 Appliances 74 74 225 249 Entertainment 54 46 164 154 Services 45 43 119 134 Other 9 15 30 46 Total International revenue $ 760 $ 787 $ 2,119 $ 2,300 Operating income by reportable segment and the reconciliation to consolidated earnings before income tax expense and equity in income (loss) of affiliates was as follows ($ in millions): Three Months Ended Nine Months Ended October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022 Domestic $ 336 $ 332 $ 955 $ 1,104 International 18 33 58 94 Total operating income 354 365 1,013 1,198 Other income (expense): Gain on sale of subsidiary, net - - 21 - Investment income and other 8 4 41 2 Interest expense ( 14 ) ( 10 ) ( 38 ) ( 23 ) Earnings before income tax expense and equity in income (loss) of affiliates $ 348 $ 359 $ 1,037 $ 1,177 Assets by reportable segment were as follows ($ in millions): October 28, 2023 January 28, 2023 October 29, 2022 Domestic $ 15,395 $ 14,549 $ 15,695 International 1,487 1,254 1,326 Total assets $ 16,882 $ 15,803 $ 17,021 |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 9 Months Ended |
Oct. 28, 2023 | |
Basis of Presentation [Abstract] | |
Total Cash, Cash Equivalents and Restricted Cash | October 28, 2023 January 28, 2023 October 29, 2022 Cash and cash equivalents $ 636 $ 1,874 $ 932 Restricted cash included in Other current assets 423 379 361 Total cash, cash equivalents and restricted cash $ 1,059 $ 2,253 $ 1,293 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Oct. 28, 2023 | |
Restructuring [Abstract] | |
Composition of Restructuring Charges | Three Months Ended Nine Months Ended Cumulative Amount October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022 As of October 28, 2023 Domestic $ 1 $ 25 $ ( 14 ) $ 59 $ 126 International ( 1 ) - ( 2 ) - 3 Total $ - $ 25 $ ( 16 ) $ 59 $ 129 |
Restructuring Accrual Activity | Termination Benefits Domestic International Total Balances at January 29, 2022 $ - $ - $ - Charges 62 - 62 Cash payments ( 28 ) - ( 28 ) Adjustments (1) ( 3 ) - ( 3 ) Balances at October 29, 2022 $ 31 $ - $ 31 Balances at January 28, 2023 $ 102 $ 5 $ 107 Cash payments ( 64 ) ( 3 ) ( 67 ) Adjustments (1) ( 14 ) ( 2 ) ( 16 ) Balances at October 28, 2023 $ 24 $ - $ 24 (1) Represents adjustments primarily related to higher-than-expected employee retention from previously planned organizational changes. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Oct. 28, 2023 | |
Goodwill and Intangible Assets [Abstract] | |
Gross Carrying Amount of Goodwill and Cumulative Goodwill Impairment | October 28, 2023 January 28, 2023 October 29, 2022 Gross Carrying Amount Cumulative Impairment Gross Carrying Amount Cumulative Impairment Gross Carrying Amount Cumulative Impairment Domestic $ 1,450 $ ( 67 ) $ 1,450 $ ( 67 ) $ 1,450 $ ( 67 ) International 608 ( 608 ) 608 ( 608 ) 608 ( 608 ) Total $ 2,058 $ ( 675 ) $ 2,058 $ ( 675 ) $ 2,058 $ ( 675 ) |
Definite-Lived Intangible Assets | October 28, 2023 January 28, 2023 October 29, 2022 Weighted-Average Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Useful Life Remaining as of October 28, 2023 (in years) Customer relationships $ 360 $ 274 $ 360 $ 236 $ 360 $ 222 10.3 Tradenames 108 66 108 56 108 52 5.0 Developed technology 64 59 64 51 64 48 4.0 Total $ 532 $ 399 $ 532 $ 343 $ 532 $ 322 8.4 |
Amortization Expense | Three Months Ended Nine Months Ended Statement of Earnings Location October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022 Amortization expense SG&A $ 15 $ 21 $ 56 $ 65 |
Amortization Expense Expected to be Recognized | Amortization Expense Remainder of fiscal 2024 $ 6 Fiscal 2025 21 Fiscal 2026 21 Fiscal 2027 18 Fiscal 2028 12 Fiscal 2029 10 Thereafter 45 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 28, 2023 | |
Fair Value Measurements [Abstract] | |
Fair Value, Assets and Liabilities Measured on Recurring Basis | Fair Value at Balance Sheet Location (1) Fair Value Hierarchy October 28, 2023 January 28, 2023 October 29, 2022 Assets Money market funds (2) Cash and cash equivalents Level 1 $ 3 $ 280 $ 76 Time deposits (3) Cash and cash equivalents Level 2 26 203 25 Money market funds (2) Other current assets Level 1 170 178 176 Time deposits (3) Other current assets Level 2 81 - - Marketable securities that fund deferred compensation (4) Other assets Level 1 44 47 44 Liabilities Interest rate swap derivative instruments (5) Long-term liabilities Level 2 36 7 27 (1) Balance sheet location is determined by the length to maturity at date of purchase and whether the assets are restricted for particular use. (2) Valued at quoted market prices in active markets at period end. (3) Valued at face value plus accrued interest at period end, which approximates fair value. (4) Valued using the performance of mutual funds that trade with sufficient frequency and volume to obtain pricing information on an ongoing basis. (5) Valued using readily observable market inputs. These instruments are custom, over-the-counter contracts with various bank counterparties that are not traded on an active market. See Note 5, Derivative Instruments , for additional information. |
Fair Value of Financial Instruments | October 28, 2023 January 28, 2023 October 29, 2022 Fair Value Carrying Value Fair Value Carrying Value Fair Value Carrying Value Long-term debt (1) $ 931 $ 1,114 $ 1,019 $ 1,143 $ 925 $ 1,123 (1) Excludes debt discou nts, issuance costs and finance lease obligations. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Oct. 28, 2023 | |
Derivative Instruments [Abstract] | |
Notional Amount of Derivative Instruments | Contract Type October 28, 2023 January 28, 2023 October 29, 2022 Derivatives designated as net investment hedges $ 102 $ 114 $ 118 Derivatives designated as interest rate swap contracts 500 500 500 No hedge designation (foreign exchange contracts) 93 56 112 Total $ 695 $ 670 $ 730 |
Effects of Derivative Instruments on Consolidated Statements of Earnings | Gain (Loss) Recognized Three Months Ended Nine Months Ended Statement of Earnings Location October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022 Interest rate swap contracts Interest expense $ ( 15 ) $ ( 45 ) $ ( 29 ) $ ( 76 ) Adjustments to carrying value of long-term debt Interest expense 15 45 29 76 Total $ - $ - $ - $ - |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Oct. 28, 2023 | |
Debt [Abstract] | |
Schedule of Long-term Debt | October 28, 2023 January 28, 2023 October 29, 2022 Notes, 4.45 %, due October 1, 2028 $ 500 $ 500 $ 500 Notes, 1.95 %, due October 1, 2030 650 650 650 Interest rate swap valuation adjustments ( 36 ) ( 7 ) ( 27 ) Subtotal 1,114 1,143 1,123 Debt discounts and issuance costs ( 8 ) ( 9 ) ( 9 ) Finance lease obligations 39 42 44 Total long-term debt 1,145 1,176 1,158 Less current portion 15 16 16 Total long-term debt, less current portion $ 1,130 $ 1,160 $ 1,142 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Oct. 28, 2023 | |
Revenue [Abstract] | |
Contract Balances and Changes in Contract Balances | October 28, 2023 January 28, 2023 October 29, 2022 Receivables, net (1) $ 555 $ 581 $ 654 Short-term contract liabilities included in: Unredeemed gift card liabilities 245 274 273 Deferred revenue 934 1,116 1,080 Accrued liabilities 59 66 77 Long-term contract liabilities included in: Long-term liabilities 250 265 5 (1) Receivables are recorded net of allowances for doubtful accounts of $ 19 million, $ 22 million and $ 20 million as of October 28, 2023, January 28, 2023, and October 29, 2022, respectively. |
Expected Timing for Satisfying Remaining Performance Obligation | Fiscal Year Amount Remainder of fiscal 2024 $ 10 Fiscal 2025 31 Fiscal 2026 30 Fiscal 2027 24 Fiscal 2028 24 Fiscal 2029 24 Thereafter 136 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Oct. 28, 2023 | |
Earnings per Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | Three Months Ended Nine Months Ended October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022 Numerator Net earnings $ 263 $ 277 $ 781 $ 924 Denominator Weighted-average common shares outstanding 217.8 225.5 218.4 225.9 Dilutive effect of stock compensation plan awards 0.5 0.7 0.7 1.0 Weighted-average common shares outstanding, assuming dilution 218.3 226.2 219.1 226.9 Potential shares which were anti-dilutive and excluded from weighted-average share computations 0.3 2.3 0.4 2.3 Basic earnings per share $ 1.21 $ 1.23 $ 3.58 $ 4.09 Diluted earnings per share $ 1.21 $ 1.22 $ 3.57 $ 4.07 |
Repurchase of Common Stock (Tab
Repurchase of Common Stock (Tables) | 9 Months Ended |
Oct. 28, 2023 | |
Repurchase of Common Stock [Abstract] | |
Schedule of Share Repurchases | Three Months Ended Nine Months Ended October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022 Total cost of shares repurchased $ 128 $ - $ 278 $ 452 Average price per share $ 71.61 $ - $ 74.16 $ 96.83 Total number of shares repurchased 1.8 - 3.7 4.6 |
Segments (Tables)
Segments (Tables) | 9 Months Ended |
Oct. 28, 2023 | |
Segments [Abstract] | |
Revenue by Reportable Segment and Product Category | Three Months Ended Nine Months Ended October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022 Revenue by reportable segment Domestic $ 8,996 $ 9,800 $ 26,687 $ 29,263 International 760 787 2,119 2,300 Total revenue $ 9,756 $ 10,587 $ 28,806 $ 31,563 Revenue by product category Domestic: Computing and Mobile Phones $ 3,938 $ 4,337 $ 11,300 $ 12,586 Consumer Electronics 2,589 2,889 7,839 8,630 Appliances 1,238 1,469 3,961 4,717 Entertainment 594 500 1,729 1,581 Services 563 533 1,650 1,538 Other 74 72 208 211 Total Domestic revenue $ 8,996 $ 9,800 $ 26,687 $ 29,263 International: Computing and Mobile Phones $ 378 $ 389 $ 1,003 $ 1,060 Consumer Electronics 200 220 578 657 Appliances 74 74 225 249 Entertainment 54 46 164 154 Services 45 43 119 134 Other 9 15 30 46 Total International revenue $ 760 $ 787 $ 2,119 $ 2,300 |
Operating Income by Reportable Segment and Reconciliation to Earnings Before Income Tax Expense | Three Months Ended Nine Months Ended October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022 Domestic $ 336 $ 332 $ 955 $ 1,104 International 18 33 58 94 Total operating income 354 365 1,013 1,198 Other income (expense): Gain on sale of subsidiary, net - - 21 - Investment income and other 8 4 41 2 Interest expense ( 14 ) ( 10 ) ( 38 ) ( 23 ) Earnings before income tax expense and equity in income (loss) of affiliates $ 348 $ 359 $ 1,037 $ 1,177 |
Assets by Reportable Segment | October 28, 2023 January 28, 2023 October 29, 2022 Domestic $ 15,395 $ 14,549 $ 15,695 International 1,487 1,254 1,326 Total assets $ 16,882 $ 15,803 $ 17,021 |
Basis of Presentation (Narrativ
Basis of Presentation (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Oct. 28, 2023 | Jan. 28, 2023 | Oct. 29, 2022 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Liability associated with funded participation | $ 680 | $ 386 | $ 713 |
Gain on sale of subsidiary, net | $ 21 |
Basis of Presentation (Total Ca
Basis of Presentation (Total Cash, Cash Equivalents and Restricted Cash) (Details) - USD ($) $ in Millions | Oct. 28, 2023 | Jan. 28, 2023 | Oct. 29, 2022 | Jan. 29, 2022 |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ||||
Cash and cash equivalents | $ 636 | $ 1,874 | $ 932 | |
Restricted cash included in Other current assets | 423 | 379 | 361 | |
Total cash, cash equivalents and restricted cash | $ 1,059 | $ 2,253 | $ 1,293 | $ 3,205 |
Restructuring (Composition of R
Restructuring (Composition of Restructuring Charges) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 26 | $ (16) | $ 61 | |
Termination Benefits [Member] | Resource Optimization Initiative [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 25 | (16) | 59 | |
Cumulative Amount | $ 129 | 129 | ||
Domestic [Member] | Termination Benefits [Member] | Resource Optimization Initiative [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1 | $ 25 | (14) | $ 59 |
Cumulative Amount | 126 | 126 | ||
International [Member] | Termination Benefits [Member] | Resource Optimization Initiative [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | (1) | (2) | ||
Cumulative Amount | $ 3 | $ 3 |
Restructuring (Restructuring Ac
Restructuring (Restructuring Accrual Activity) (Details) - Resource Optimization Initiative [Member] - Termination Benefits [Member] - USD ($) $ in Millions | 9 Months Ended | |
Oct. 28, 2023 | Oct. 29, 2022 | |
Restructuring Reserve [Roll Forward] | ||
Balances | $ 107 | |
Charges | $ 62 | |
Cash payments | (67) | (28) |
Adjustments | (16) | (3) |
Balances | 24 | 31 |
Domestic [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Balances | 102 | |
Charges | 62 | |
Cash payments | (64) | (28) |
Adjustments | (14) | (3) |
Balances | 24 | $ 31 |
International [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Balances | 5 | |
Cash payments | (3) | |
Adjustments | $ (2) |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Oct. 28, 2023 | Oct. 29, 2022 | Jan. 28, 2023 | |
Goodwill and Intangible Assets [Abstract] | |||
Goodwill and intangible assets impairment charges | $ 0 | $ 0 | $ 0 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Gross Carrying Amount of Goodwill and Cumulative Goodwill Impairment) (Details) - USD ($) $ in Millions | Oct. 28, 2023 | Jan. 28, 2023 | Oct. 29, 2022 |
Goodwill [Line Items] | |||
Gross Carrying Amount | $ 2,058 | $ 2,058 | $ 2,058 |
Cumulative Impairment | (675) | (675) | (675) |
Domestic [Member] | |||
Goodwill [Line Items] | |||
Gross Carrying Amount | 1,450 | 1,450 | 1,450 |
Cumulative Impairment | (67) | (67) | (67) |
International [Member] | |||
Goodwill [Line Items] | |||
Gross Carrying Amount | 608 | 608 | 608 |
Cumulative Impairment | $ (608) | $ (608) | $ (608) |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Definite-Lived Intangible Assets) (Details) - USD ($) $ in Millions | Oct. 28, 2023 | Jan. 28, 2023 | Oct. 29, 2022 |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 532 | $ 532 | $ 532 |
Accumulated Amortization | $ 399 | 343 | 322 |
Weighted-Average Useful Life Remaining | 8 years 4 months 24 days | ||
Customer Relationships [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 360 | 360 | 360 |
Accumulated Amortization | $ 274 | 236 | 222 |
Weighted-Average Useful Life Remaining | 10 years 3 months 18 days | ||
Tradenames [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 108 | 108 | 108 |
Accumulated Amortization | $ 66 | 56 | 52 |
Weighted-Average Useful Life Remaining | 5 years | ||
Developed Technology [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 64 | 64 | 64 |
Accumulated Amortization | $ 59 | $ 51 | $ 48 |
Weighted-Average Useful Life Remaining | 4 years |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Amortization Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Goodwill and Intangible Assets [Abstract] | ||||
Amortization expense | $ 15 | $ 21 | $ 56 | $ 65 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets (Amortization Expense Expected to be Recognized) (Details) $ in Millions | Oct. 28, 2023 USD ($) |
Goodwill and Intangible Assets [Abstract] | |
Remainder of fiscal 2024 | $ 6 |
Fiscal 2025 | 21 |
Fiscal 2026 | 21 |
Fiscal 2027 | 18 |
Fiscal 2028 | 12 |
Fiscal 2029 | 10 |
Thereafter | $ 45 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions | Oct. 28, 2023 | Jan. 28, 2023 | Oct. 29, 2022 |
Level 1 [Member] | Money Market Funds [Member] | |||
Assets | |||
Cash and cash equivalents | $ 3 | $ 280 | $ 76 |
Other current assets | 170 | 178 | 176 |
Level 1 [Member] | Marketable Securities that Fund Deferred Compensation [Member] | |||
Assets | |||
Other assets | 44 | 47 | 44 |
Level 2 [Member] | Time Deposits [Member] | |||
Assets | |||
Cash and cash equivalents | 26 | 203 | 25 |
Other current assets | 81 | ||
Level 2 [Member] | Interest Rate Swap Derivative Instruments [Member] | |||
Liabilities | |||
Long-term liabilities | $ 36 | $ 7 | $ 27 |
Fair Value Measurements (Fair_2
Fair Value Measurements (Fair Value of Financial Instruments) (Details) - USD ($) $ in Millions | Oct. 28, 2023 | Jan. 28, 2023 | Oct. 29, 2022 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Carrying value | $ 1,114 | $ 1,143 | $ 1,123 |
Level 2 [Member] | Long-term Debt [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair Value | 931 | 1,019 | 925 |
Carrying value | $ 1,114 | $ 1,143 | $ 1,123 |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) | Oct. 28, 2023 USD ($) |
Notes Due 2028 [Member] | |
Derivative [Line Items] | |
Principal amount | $ 500,000,000 |
Derivative Instruments (Notiona
Derivative Instruments (Notional Amount of Derivative Instruments) (Details) - USD ($) $ in Millions | Oct. 28, 2023 | Jan. 28, 2023 | Oct. 29, 2022 |
Derivatives, Fair Value [Line Items] | |||
Notional amount | $ 695 | $ 670 | $ 730 |
Derivatives Designated As Net Investment Hedges [Member] | Designated As Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | 102 | 114 | 118 |
Interest Rate Swap Derivative Instruments [Member] | Designated As Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | 500 | 500 | 500 |
Foreign Exchange Forward Contracts [Member] | Not Designated As Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | $ 93 | $ 56 | $ 112 |
Derivative Instruments (Effects
Derivative Instruments (Effects of Derivative Instruments on Consolidated Statements of Earnings) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Interest Rate Swap Derivative Instruments [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Gain (Loss) Recognized | $ (15) | $ (45) | $ (29) | $ (76) |
Carrying Value of Long Term Debt [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Gain (Loss) Recognized | $ 15 | $ 45 | $ 29 | $ 76 |
Debt (Short-Term Debt) (Narrati
Debt (Short-Term Debt) (Narrative) (Details) (Details) - Five-Year Facility Agreement [Member] - Revolving Credit Facility [Member] - USD ($) | Apr. 12, 2023 | Oct. 28, 2023 | Jan. 28, 2023 | Oct. 29, 2022 |
Line of Credit Facility [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 1,250,000,000 | |||
Debt instrument, term | 5 years | |||
Outstanding borrowings | $ 0 | $ 0 | $ 0 |
Debt (Fair Value and Future Mat
Debt (Fair Value and Future Maturities) (Narrative) (Details) | Oct. 28, 2023 USD ($) |
Debt Instrument [Line Items] | |
Future maturities, 2025 | $ 0 |
Future maturities, 2026 | 0 |
Future maturities, 2027 | 0 |
Future maturities, 2028 | 0 |
Future maturities, 2029 | 0 |
Notes Due 2028 [Member] | |
Debt Instrument [Line Items] | |
Principal amount | $ 500,000,000 |
Debt (Schedule of Long-Term Deb
Debt (Schedule of Long-Term Debt) (Details) - USD ($) $ in Millions | Oct. 28, 2023 | Jan. 28, 2023 | Oct. 29, 2022 |
Debt Instrument [Line Items] | |||
Interest rate swap valuation adjustments | $ (36) | $ (7) | $ (27) |
Total | 1,114 | 1,143 | 1,123 |
Debt discounts and issuance costs | (8) | (9) | (9) |
Finance lease obligations | 39 | 42 | 44 |
Total long-term debt | 1,145 | 1,176 | 1,158 |
Less current portion | 15 | 16 | 16 |
Total long-term debt, less current portion | 1,130 | 1,160 | 1,142 |
Notes Due 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 500 | 500 | 500 |
Interest rate | 4.45% | ||
Notes Due 2030 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 650 | $ 650 | $ 650 |
Interest rate | 1.95% |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Oct. 28, 2023 | Oct. 29, 2022 | |
Revenue [Abstract] | ||
Revenue recognized | $ 1,192 | $ 1,251 |
Revenue (Contract Balances and
Revenue (Contract Balances and Changes in Contract Balances) (Details) - USD ($) $ in Millions | Oct. 28, 2023 | Jan. 28, 2023 | Oct. 29, 2022 |
Revenue from Contract with Customer [Line Items] | |||
Receivables, net | $ 555 | $ 581 | $ 654 |
Receivables, allowance for doubtful accounts | 19 | 22 | 20 |
Unredeemed Gift Cards [Member] | |||
Revenue from Contract with Customer [Line Items] | |||
Short-term contract liabilities | 245 | 274 | 273 |
Deferred Revenue [Member] | |||
Revenue from Contract with Customer [Line Items] | |||
Short-term contract liabilities | 934 | 1,116 | 1,080 |
Accrued Liabilities [Member] | |||
Revenue from Contract with Customer [Line Items] | |||
Short-term contract liabilities | 59 | 66 | 77 |
Long-Term Liabilities [Member] | |||
Revenue from Contract with Customer [Line Items] | |||
Long-term contract liabilities | $ 250 | $ 265 | $ 5 |
Revenue (Expected Timing for Sa
Revenue (Expected Timing for Satisfying Remaining Performance Obligation) (Details) $ in Millions | Oct. 28, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-29 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated revenue from our contract liability balances | $ 10 |
Performance obligations from contract liability balances, duration | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-02-04 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated revenue from our contract liability balances | $ 31 |
Performance obligations from contract liability balances, duration | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-31 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated revenue from our contract liability balances | $ 30 |
Performance obligations from contract liability balances, duration | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-02-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated revenue from our contract liability balances | $ 24 |
Performance obligations from contract liability balances, duration | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-31 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated revenue from our contract liability balances | $ 24 |
Performance obligations from contract liability balances, duration | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-30 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated revenue from our contract liability balances | $ 24 |
Performance obligations from contract liability balances, duration | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-02-04 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated revenue from our contract liability balances | $ 136 |
Performance obligations from contract liability balances, duration | 1 year |
Earnings per Share (Schedule of
Earnings per Share (Schedule of Calculation of Numerator and Denominator in Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Earnings per Share [Abstract] | ||||
Net earnings | $ 263 | $ 277 | $ 781 | $ 924 |
Weighted-average common shares outstanding (in shares) | 217.8 | 225.5 | 218.4 | 225.9 |
Dilutive effect of stock compensation plan awards (in shares) | 0.5 | 0.7 | 0.7 | 1 |
Weighted-average common shares outstanding, assuming dilution (in shares) | 218.3 | 226.2 | 219.1 | 226.9 |
Potential shares which were anti-dilutive and excluded from weighted-average share computations (in shares) | 0.3 | 2.3 | 0.4 | 2.3 |
Basic earnings per share | $ 1.21 | $ 1.23 | $ 3.58 | $ 4.09 |
Diluted earnings per share | $ 1.21 | $ 1.22 | $ 3.57 | $ 4.07 |
Repurchase of Common Stock (Nar
Repurchase of Common Stock (Narrative) (Details) - USD ($) shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Nov. 29, 2023 | Oct. 28, 2023 | Oct. 28, 2023 | Oct. 29, 2022 | Feb. 03, 2024 | Feb. 28, 2022 | Feb. 16, 2021 | |
Stock Repurchases [Line Items] | |||||||
Stock Repurchase Program, Authorized Amount | $ 5,000 | $ 5,000 | $ 5,000 | $ 5,000 | |||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 3,800 | $ 3,800 | |||||
Repurchase of common stock (in shares) | 1.8 | 3.7 | 4.6 | ||||
Repurchase of common stock | $ 128 | $ 278 | $ 452 | ||||
Forecast [Member] | |||||||
Stock Repurchases [Line Items] | |||||||
Repurchase of common stock | $ 350 | ||||||
Subsequent Event [Member] | |||||||
Stock Repurchases [Line Items] | |||||||
Repurchase of common stock (in shares) | 1 | ||||||
Repurchase of common stock | $ 63 |
Repurchase of Common Stock (Sch
Repurchase of Common Stock (Schedule of Share Repurchases) (Details) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |
Oct. 28, 2023 | Oct. 28, 2023 | Oct. 29, 2022 | |
Repurchase of Common Stock [Abstract] | |||
Total cost of shares repurchased | $ 128 | $ 278 | $ 452 |
Average price per share | $ 71.61 | $ 74.16 | $ 96.83 |
Total number of shares repurchased | 1.8 | 3.7 | 4.6 |
Segments (Revenue by Reportable
Segments (Revenue by Reportable Segment and Product Category) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 9,756 | $ 10,587 | $ 28,806 | $ 31,563 |
Domestic Segment [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 8,996 | 9,800 | 26,687 | 29,263 |
Domestic Segment [Member] | Computing and Mobile Phones [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 3,938 | 4,337 | 11,300 | 12,586 |
Domestic Segment [Member] | Consumer Electronics [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 2,589 | 2,889 | 7,839 | 8,630 |
Domestic Segment [Member] | Appliances [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 1,238 | 1,469 | 3,961 | 4,717 |
Domestic Segment [Member] | Entertainment [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 594 | 500 | 1,729 | 1,581 |
Domestic Segment [Member] | Services [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 563 | 533 | 1,650 | 1,538 |
Domestic Segment [Member] | Other [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 74 | 72 | 208 | 211 |
International Segment [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 760 | 787 | 2,119 | 2,300 |
International Segment [Member] | Computing and Mobile Phones [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 378 | 389 | 1,003 | 1,060 |
International Segment [Member] | Consumer Electronics [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 200 | 220 | 578 | 657 |
International Segment [Member] | Appliances [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 74 | 74 | 225 | 249 |
International Segment [Member] | Entertainment [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 54 | 46 | 164 | 154 |
International Segment [Member] | Services [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 45 | 43 | 119 | 134 |
International Segment [Member] | Other [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 9 | $ 15 | $ 30 | $ 46 |
Segments (Operating Income by R
Segments (Operating Income by Reportable Segment and Reconciliation to Earnings Before Income Tax Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating income | $ 354 | $ 365 | $ 1,013 | $ 1,198 |
Gain on sale of subsidiary, net | 21 | |||
Investment income and other | 8 | 4 | 41 | 2 |
Interest expense | (14) | (10) | (38) | (23) |
Earnings before income tax expense and equity in income (loss) of affiliates | 348 | 359 | 1,037 | 1,177 |
Domestic Segment [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating income | 336 | 332 | 955 | 1,104 |
International Segment [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating income | $ 18 | $ 33 | $ 58 | $ 94 |
Segments (Assets by Reportable
Segments (Assets by Reportable Segment) (Details) - USD ($) $ in Millions | Oct. 28, 2023 | Jan. 28, 2023 | Oct. 29, 2022 |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | $ 16,882 | $ 15,803 | $ 17,021 |
Domestic Segment [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 15,395 | 14,549 | 15,695 |
International Segment [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | $ 1,487 | $ 1,254 | $ 1,326 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Oct. 28, 2023 | |
Insider Trading Arrangements [Line Items] | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |