Document Information Statement
Document Information Statement - shares | 6 Months Ended | |
Aug. 03, 2024 | Sep. 04, 2024 | |
Document Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Fiscal Period Focus | Q2 | |
Document Period End Date | Aug. 03, 2024 | |
Current Fiscal Year End Date | --02-01 | |
Document Fiscal Year Focus | 2025 | |
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, $0.10 par value per share | |
Trading Symbol | BBY | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 214,725,246 | |
Entity Central Index Key | 0000764478 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Aug. 03, 2024 | Feb. 03, 2024 | Jul. 29, 2023 |
Current assets | |||
Cash and cash equivalents | $ 1,387 | $ 1,447 | $ 1,093 |
Receivables, net | 871 | 939 | 856 |
Merchandise inventories | 5,706 | 4,958 | 5,651 |
Other current assets | 598 | 553 | 704 |
Total current assets | 8,562 | 7,897 | 8,304 |
Property and equipment, net | 2,183 | 2,260 | 2,305 |
Operating lease assets | 2,860 | 2,758 | 2,813 |
Goodwill | 1,383 | 1,383 | 1,383 |
Other assets | 636 | 669 | 513 |
Total assets | 15,624 | 14,967 | 15,318 |
Current liabilities | |||
Accounts payable | 5,542 | 4,637 | 5,471 |
Accrued compensation and related expenses | 347 | 486 | 377 |
Accrued liabilities | 756 | 902 | 709 |
Current portion of operating lease liabilities | 610 | 618 | 615 |
Current portion of long-term debt | 13 | 13 | 15 |
Total current liabilities | 8,451 | 7,909 | 8,433 |
Long-term operating lease liabilities | 2,316 | 2,199 | 2,254 |
Long-term debt | 1,157 | 1,152 | 1,145 |
Long-term liabilities | 593 | 654 | 651 |
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 - 215.0 million, 215.4 million and 217.9 million shares, respectively | 22 | 22 | 22 |
Additional paid-in capital | 31 | ||
Retained earnings | 2,775 | 2,683 | 2,491 |
Accumulated other comprehensive income | 310 | 317 | 322 |
Total equity | 3,107 | 3,053 | 2,835 |
Total liabilities and equity | 15,624 | 14,967 | 15,318 |
Gift Card [Member] | |||
Current liabilities | |||
Short-term contract liabilities | 243 | 253 | 250 |
Deferred Revenue [Member] | |||
Current liabilities | |||
Short-term contract liabilities | $ 940 | $ 1,000 | $ 996 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Aug. 03, 2024 | Feb. 03, 2024 | Jul. 29, 2023 |
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 | 215,000,000 | 215,400,000 | 217,900,000 |
Common stock, outstanding shares | 215,000,000 | 215,400,000 | 217,900,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 03, 2024 | Jul. 29, 2023 | Aug. 03, 2024 | Jul. 29, 2023 | |
Condensed Consolidated Statements of Earnings [Abstract] | ||||
Revenue | $ 9,288 | $ 9,583 | $ 18,135 | $ 19,050 |
Cost of sales | 7,102 | 7,363 | 13,885 | 14,680 |
Gross profit | 2,186 | 2,220 | 4,250 | 4,370 |
Selling, general and administrative expenses | 1,810 | 1,879 | 3,547 | 3,727 |
Restructuring charges | (7) | (7) | 8 | (16) |
Operating income | 383 | 348 | 695 | 659 |
Other income (expense): | ||||
Gain on sale of subsidiary, net | 21 | 21 | ||
Investment income and other | 21 | 12 | 46 | 33 |
Interest expense | (13) | (12) | (25) | (24) |
Earnings before income tax expense and equity in income of affiliates | 391 | 369 | 716 | 689 |
Income tax expense | 101 | 96 | 181 | 171 |
Equity in income of affiliates | 1 | 1 | 2 | |
Net earnings | $ 291 | $ 274 | $ 537 | $ 518 |
Basic earnings per share | $ 1.35 | $ 1.25 | $ 2.49 | $ 2.37 |
Diluted earnings per share | $ 1.34 | $ 1.25 | $ 2.47 | $ 2.36 |
Weighted-average common shares outstanding: | ||||
Basic | 216 | 218.6 | 216.1 | 218.7 |
Diluted | 217.1 | 219 | 217.2 | 219.5 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 03, 2024 | Jul. 29, 2023 | Aug. 03, 2024 | Jul. 29, 2023 | |
Condensed Consolidated Statements of Comprehensive Income [Abstract] | ||||
Net earnings | $ 291 | $ 274 | $ 537 | $ 518 |
Foreign currency translation adjustments, net of tax | (2) | 5 | (7) | |
Comprehensive income | $ 289 | $ 279 | $ 530 | $ 518 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Aug. 03, 2024 | Jul. 29, 2023 | |
Operating activities | ||
Net earnings | $ 537 | $ 518 |
Adjustments to reconcile net earnings to total cash provided by operating activities: | ||
Depreciation and amortization | 437 | 473 |
Restructuring charges | 8 | (16) |
Stock-based compensation | 74 | 75 |
Gain on sale of subsidiary, net | (21) | |
Other, net | 12 | 2 |
Changes in operating assets and liabilities: | ||
Receivables | 66 | 289 |
Merchandise inventories | (761) | (508) |
Other assets | (11) | (32) |
Accounts payable | 904 | (206) |
Income taxes | (183) | (148) |
Other liabilities | (266) | (245) |
Total cash provided by operating activities | 817 | 181 |
Investing activities | ||
Additions to property and equipment | (335) | (395) |
Net proceeds from sale of subsidiary | 14 | |
Other, net | (17) | |
Total cash used in investing activities | (352) | (381) |
Financing activities | ||
Repurchase of common stock | (148) | (158) |
Dividends paid | (405) | (402) |
Other, net | (4) | |
Total cash used in financing activities | (557) | (560) |
Effect of exchange rate changes on cash and cash equivalents | (3) | (2) |
Decrease in cash, cash equivalents and restricted cash | (95) | (762) |
Cash, cash equivalents and restricted cash at beginning of period | 1,793 | 2,253 |
Cash, cash equivalents and restricted cash at end of period | $ 1,698 | $ 1,491 |
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. 28, 2023 | $ 22 | $ 21 | $ 2,430 | $ 322 | $ 2,795 |
Balances (in shares) at Jan. 28, 2023 | 218.1 | ||||
Net earnings | 518 | 518 | |||
Other comprehensive (loss) income: | |||||
Stock-based compensation | 75 | 75 | |||
Issuance of common stock | 10 | 10 | |||
Issuance of common stock (in shares) | 1.8 | ||||
Common stock dividends | 7 | (410) | (403) | ||
Repurchase of common stock | (113) | (47) | $ (160) | ||
Repurchase of common stock (in shares) | (2) | (2) | |||
Balances at Jul. 29, 2023 | $ 22 | 2,491 | 322 | $ 2,835 | |
Balances (in shares) at Jul. 29, 2023 | 217.9 | ||||
Balances at Apr. 29, 2023 | $ 22 | 2,454 | 317 | 2,793 | |
Balances (in shares) at Apr. 29, 2023 | 218.5 | ||||
Net earnings | 274 | 274 | |||
Other comprehensive (loss) income: | |||||
Foreign currency translation adjustments, net of tax | 5 | 5 | |||
Stock-based compensation | 37 | 37 | |||
Issuance of common stock | 6 | 6 | |||
Issuance of common stock (in shares) | 0.3 | ||||
Common stock dividends | 3 | (204) | (201) | ||
Repurchase of common stock | (46) | (33) | $ (79) | ||
Repurchase of common stock (in shares) | (0.9) | (0.9) | |||
Balances at Jul. 29, 2023 | $ 22 | 2,491 | 322 | $ 2,835 | |
Balances (in shares) at Jul. 29, 2023 | 217.9 | ||||
Balances at Feb. 03, 2024 | $ 22 | 31 | 2,683 | 317 | 3,053 |
Balances (in shares) at Feb. 03, 2024 | 215.4 | ||||
Net earnings | 537 | 537 | |||
Other comprehensive (loss) income: | |||||
Foreign currency translation adjustments, net of tax | (7) | (7) | |||
Stock-based compensation | 74 | 74 | |||
Issuance of common stock | 5 | 5 | |||
Issuance of common stock (in shares) | 1.4 | ||||
Common stock dividends | 9 | (414) | (405) | ||
Repurchase of common stock | (119) | (31) | $ (150) | ||
Repurchase of common stock (in shares) | (1.8) | (1.8) | |||
Balances at Aug. 03, 2024 | $ 22 | 2,775 | 310 | $ 3,107 | |
Balances (in shares) at Aug. 03, 2024 | 215 | ||||
Balances at May. 04, 2024 | $ 22 | 26 | 2,722 | 312 | 3,082 |
Balances (in shares) at May. 04, 2024 | 216.1 | ||||
Net earnings | 291 | 291 | |||
Other comprehensive (loss) income: | |||||
Foreign currency translation adjustments, net of tax | (2) | (2) | |||
Stock-based compensation | 36 | 36 | |||
Issuance of common stock | 1 | 1 | |||
Common stock dividends | 4 | (207) | (203) | ||
Repurchase of common stock | $ (67) | (31) | $ (98) | ||
Repurchase of common stock (in shares) | (1.1) | (1.1) | |||
Balances at Aug. 03, 2024 | $ 22 | $ 2,775 | $ 310 | $ 3,107 | |
Balances (in shares) at Aug. 03, 2024 | 215 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Aug. 03, 2024 | Jul. 29, 2023 | Aug. 03, 2024 | Jul. 29, 2023 | |
Condensed Consolidated Statements of Changes in Shareholders' Equity [Abstract] | ||||
Common stock, dividends, per share, declared | $ 0.94 | $ 0.92 | $ 1.88 | $ 1.84 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Aug. 03, 2024 | |
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 February 3, 2024. The first six months of fiscal 2025 and fiscal 2024 each included 26 weeks. In preparing the accompanying condensed consolidated financial statements, we evaluated the period from August 3, 2024, 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 three and six months ended July 29, 2023. Recently Issued Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which enhances reportable segment disclosure requirements primarily through expanded disclosures around significant segment expenses. The amendments are effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. The amendments should be applied retrospectively to all prior periods presented in the financial statements. We are currently evaluating the impact of the ASU and expect to include updated segment expense disclosures in our fiscal 2025 Form 10-K. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which requires disclosure of specific categories meeting a quantitative threshold within the income tax rate reconciliation, as well as disaggregation of income taxes paid by jurisdiction. This ASU, which can be applied either prospectively or retrospectively, is effective for annual periods beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the impact of the ASU and expect to include updated income tax disclosures in our fiscal 2026 Form 10-K. 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. Our liability associated with the funded participation in the program, which is primarily included in Accounts payable on our Condensed Consolidated Balance Sheets, was $ 729 million, $ 426 million and $ 609 million as of August 3, 2024, February 3, 2024, and July 29, 2023, 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): August 3, 2024 February 3, 2024 July 29, 2023 Cash and cash equivalents $ 1,387 $ 1,447 $ 1,093 Restricted cash included in Other current assets 311 346 398 Total cash, cash equivalents and restricted cash $ 1,698 $ 1,793 $ 1,491 Amounts included in restricted cash are primarily restricted to cover product protection plans provided under our membership offerings and self-insurance liabilities. Reclassification 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 | 6 Months Ended |
Aug. 03, 2024 | |
Restructuring [Abstract] | |
Restructuring | 2. Restructuring Restructuring charges were as follows ($ in millions): Three Months Ended Six Months Ended August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023 Fiscal 2024 Restructuring Initiative $ ( 6 ) $ - $ 10 $ - Fiscal 2023 Resource Optimization Initiative ( 1 ) ( 7 ) ( 2 ) ( 16 ) Total $ ( 7 ) $ ( 7 ) $ 8 $ ( 16 ) Fiscal 2024 Restructuring Initiative During the fourth quarter of fiscal 2024, we commenced an enterprise-wide restructuring initiative intended to accomplish the following: (1) align field labor resources with where customers want to shop to optimize the customer experience; (2) redirect corporate resources for better alignment with our strategy; and (3) right-size resources to better align with our revenue outlook for fiscal 2025. All charges incurred related to this 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 Six Months Ended Cumulative Amount August 3, 2024 August 3, 2024 As of August 3, 2024 Domestic $ ( 7 ) $ 10 $ 173 International 1 - 8 Total $ ( 6 ) $ 10 $ 181 Restructuring accrual activity related to this initiative was as follows ($ in millions): Termination Benefits Domestic International Total Balances at February 3, 2024 $ 163 $ 8 $ 171 Charges 17 1 18 Cash payments ( 66 ) ( 1 ) ( 67 ) Adjustments (1) ( 7 ) ( 1 ) ( 8 ) Balances at August 3, 2024 $ 107 $ 7 $ 114 (1) Represents adjustments primarily related to higher-than-expected employee retention from previously planned organizational changes. We do not expect to incur material future restructuring charges related to this initiative. Fiscal 2023 Resource Optimization Initiative During the second quarter of fiscal 2023, we commenced an enterprise-wide initiative to better align our spending with critical strategies and operations, as well as to optimize our cost structure. 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. We recorded reductions to employee termination benefits in all periods presented, primarily within our Domestic segment, related to higher-than-expected employee retention. Cumulative charges incurred related to this initiative as of August 3, 2024, were $ 125 million, comprised of $ 122 million and $ 3 million within our Domestic and International segments, respectively. We do not expect to incur material future restructuring charges related to this initiative, and no material liability remains as of August 3, 2024. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Aug. 03, 2024 | |
Goodwill and Intangible Assets [Abstract] | |
Goodwill and Intangible Assets | 3. Goodwill and Intangible Assets Goodwill Goodwill balances were as follows as of August 3, 2024, February 3, 2024, and July 29, 2023 ($ in millions): Gross Carrying Amount Cumulative Impairment Domestic $ 1,450 $ ( 67 ) International 608 ( 608 ) Total $ 2,058 $ ( 675 ) No impairment charges were recorded during the periods presented. Indefinite-Lived Intangible Assets In the second quarter of fiscal 2025, we reclassified our Yardbird tradename from a definite-lived intangible asset to an indefinite-lived intangible asset to better reflect our expectations of the long-term use of the tradename. The carrying value of the tradename was $ 16 million as of August 3, 2024, and was recorded within Other assets on our Consolidated Balance Sheets. Definite-Lived Intangible Assets We have definite-lived intangible assets recorded within Other assets on our Condensed Consolidated Balance Sheets as follows ($ in millions): August 3, 2024 February 3, 2024 July 29, 2023 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Weighted-Average Useful Life Remaining as of August 3, 2024 (in years) Customer relationships $ 360 $ 280 $ 360 $ 276 $ 360 $ 264 9.6 Tradenames 92 75 108 69 108 63 2.2 Developed technology 64 60 64 59 64 57 3.3 Total $ 516 $ 415 $ 532 $ 404 $ 532 $ 384 8.1 Amortization expense was as follows ($ in millions): Three Months Ended Six Months Ended Statement of Earnings Location August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023 Amortization expense Selling, general and administrative expenses $ 5 $ 21 $ 11 $ 41 Amortization expense expected to be recognized in future periods is as follows ($ in millions): Amortization Expense Remainder of fiscal 2025 $ 9 Fiscal 2026 18 Fiscal 2027 16 Fiscal 2028 10 Fiscal 2029 8 Fiscal 2030 7 Thereafter 33 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Aug. 03, 2024 | |
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 and liabilities accounted for at fair value were as follows ($ in millions): Fair Value as of Balance Sheet Location (1) Fair Value Hierarchy August 3, 2024 February 3, 2024 July 29, 2023 Assets Money market funds (2) Cash and cash equivalents Level 1 $ 212 $ 330 $ 104 Time deposits (3) Cash and cash equivalents Level 2 136 60 117 Money market funds (2) Other current assets Level 1 147 182 167 Time deposits (3) Other current assets Level 2 51 50 60 Marketable securities that fund deferred compensation (4) Other assets Level 1 38 48 47 Liabilities Interest rate swap derivative instruments (5) Long-term liabilities Level 2 2 11 20 (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): August 3, 2024 February 3, 2024 July 29, 2023 Fair Value Carrying Value Fair Value Carrying Value Fair Value Carrying Value Long-term debt (1) $ 1,058 $ 1,148 $ 1,022 $ 1,139 $ 991 $ 1,130 (1) Excludes debt discou nts, issuance costs and finance lease obligations. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Aug. 03, 2024 | |
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 interest rate risk 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 fair value hedges are recorded on our Condensed Consolidated Balance Sheets at fair value. 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 August 3, 2024 February 3, 2024 July 29, 2023 Derivatives designated as net investment hedges $ 103 $ 100 $ 102 Derivatives designated as fair value hedges (interest rate swaps) 500 500 500 No hedge designation (foreign exchange contracts) 59 66 50 Total $ 662 $ 666 $ 652 Effects of our derivative instruments on our Condensed Consolidated Statements of Earnings were as follows ($ in millions): Gain (Loss) Recognized Three Months Ended Six Months Ended Statement of Earnings Location August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023 Interest rate swaps Interest expense $ 24 $ ( 10 ) $ 9 $ ( 14 ) Adjustments to carrying value of long-term debt Interest expense ( 24 ) 10 ( 9 ) 14 Total $ - $ - $ - $ - |
Debt
Debt | 6 Months Ended |
Aug. 03, 2024 | |
Debt [Abstract] | |
Debt | 6. Debt Short-Term Debt U.S. Revolving Credit Facility We have a $ 1.25 billion five-year senior unsecured revolving credit facility agreement (the “Five-Year Facility Agreement”) with a syndicate of banks that expires in April 2028. There were no borrowings outstanding under the Five-Year Facility Agreement as of August 3, 2024, February 3, 2024, or July 29, 2023. Long-Term Debt Long-term debt consisted of the following ($ in millions): August 3, 2024 February 3, 2024 July 29, 2023 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 ( 2 ) ( 11 ) ( 20 ) Subtotal 1,148 1,139 1,130 Debt discounts and issuance costs ( 7 ) ( 8 ) ( 9 ) Finance lease obligations 29 34 39 Total long-term debt 1,170 1,165 1,160 Less current portion 13 13 15 Total long-term debt, less current portion $ 1,157 $ 1,152 $ 1,145 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 | 6 Months Ended |
Aug. 03, 2024 | |
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): August 3, 2024 February 3, 2024 July 29, 2023 Receivables, net (1) $ 474 $ 512 $ 485 Short-term contract liabilities included in: Unredeemed gift card liabilities 243 253 250 Deferred revenue 940 1,000 996 Accrued liabilities 64 53 64 Long-term contract liabilities included in: Long-term liabilities 233 245 254 (1) Receivables are recorded net of allowances for expected credit losses of $ 16 million, $ 23 million and $ 18 million as of August 3, 2024, February 3, 2024, and July 29, 2023, respectively. During the first six months of fiscal 2025 and fiscal 2024, $ 893 million and $ 1,026 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 2025 $ 17 Fiscal 2026 33 Fiscal 2027 27 Fiscal 2028 25 Fiscal 2029 25 Fiscal 2030 25 Thereafter 112 See Note 11, Segments , for information on our revenue by reportable segment and product category. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Aug. 03, 2024 | |
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 Six Months Ended August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023 Numerator Net earnings $ 291 $ 274 $ 537 $ 518 Denominator Weighted-average common shares outstanding 216.0 218.6 216.1 218.7 Dilutive effect of stock compensation plan awards 1.1 0.4 1.1 0.8 Weighted-average common shares outstanding, assuming dilution 217.1 219.0 217.2 219.5 Potential shares which were anti-dilutive and excluded from weighted-average share computations - 1.1 - 1.3 Basic earnings per share $ 1.35 $ 1.25 $ 2.49 $ 2.37 Diluted earnings per share $ 1.34 $ 1.25 $ 2.47 $ 2.36 |
Repurchase of Common Stock
Repurchase of Common Stock | 6 Months Ended |
Aug. 03, 2024 | |
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. 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 Six Months Ended August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023 Total cost of shares repurchased $ 98 $ 69 $ 150 $ 150 Average price per share $ 82.57 $ 76.88 $ 80.86 $ 76.48 Total number of shares repurchased 1.1 0.9 1.8 2.0 As of August 3, 2024, $ 3.6 billion of the $ 5.0 billion share repurchase authorization was available. Between the end of the second quarter of fiscal 2025 on August 3, 2024, and September 4, 2024, we repurchased an incremental 0.4 million shares of our common stock at a cost of $ 39 million. We currently expect total share repurchases of approximately $ 500 million in fiscal 2025. |
Contingencies
Contingencies | 6 Months Ended |
Aug. 03, 2024 | |
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 | 6 Months Ended |
Aug. 03, 2024 | |
Segments [Abstract] | |
Segments | 11. Segments Reportable segment and product category revenue information was as follows ($ in millions): Three Months Ended Six Months Ended August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023 Revenue by reportable segment Domestic $ 8,623 $ 8,890 $ 16,826 $ 17,691 International 665 693 1,309 1,359 Total revenue $ 9,288 $ 9,583 $ 18,135 $ 19,050 Revenue by product category Domestic: Computing and Mobile Phones $ 3,792 $ 3,674 $ 7,380 $ 7,362 Consumer Electronics 2,478 2,658 4,842 5,250 Appliances 1,177 1,384 2,267 2,723 Entertainment 498 544 1,018 1,135 Services 590 550 1,168 1,087 Other 88 80 151 134 Total Domestic revenue $ 8,623 $ 8,890 $ 16,826 $ 17,691 International: Computing and Mobile Phones $ 308 $ 309 $ 626 $ 625 Consumer Electronics 186 194 359 378 Appliances 86 92 146 151 Entertainment 39 50 85 110 Services 38 38 77 74 Other 8 10 16 21 Total International revenue $ 665 $ 693 $ 1,309 $ 1,359 Operating income by reportable segment and the reconciliation to consolidated earnings before income tax expense and equity in income of affiliates was as follows ($ in millions): Three Months Ended Six Months Ended August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023 Domestic $ 367 $ 329 $ 670 $ 619 International 16 19 25 40 Total operating income 383 348 695 659 Other income (expense): Gain on sale of subsidiary, net - 21 - 21 Investment income and other 21 12 46 33 Interest expense ( 13 ) ( 12 ) ( 25 ) ( 24 ) Earnings before income tax expense and equity in income of affiliates $ 391 $ 369 $ 716 $ 689 Assets by reportable segment were as follows ($ in millions): August 3, 2024 February 3, 2024 July 29, 2023 Domestic $ 14,471 $ 13,660 $ 14,028 International 1,153 1,307 1,290 Total assets $ 15,624 $ 14,967 $ 15,318 |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 6 Months Ended |
Aug. 03, 2024 | |
Basis of Presentation [Abstract] | |
Total Cash, Cash Equivalents and Restricted Cash | August 3, 2024 February 3, 2024 July 29, 2023 Cash and cash equivalents $ 1,387 $ 1,447 $ 1,093 Restricted cash included in Other current assets 311 346 398 Total cash, cash equivalents and restricted cash $ 1,698 $ 1,793 $ 1,491 |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Aug. 03, 2024 | |
Restructuring Cost and Reserve [Line Items] | |
Composition of Restructuring Charges | Three Months Ended Six Months Ended August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023 Fiscal 2024 Restructuring Initiative $ ( 6 ) $ - $ 10 $ - Fiscal 2023 Resource Optimization Initiative ( 1 ) ( 7 ) ( 2 ) ( 16 ) Total $ ( 7 ) $ ( 7 ) $ 8 $ ( 16 ) |
2024 Resource Optimization Initiative [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Composition of Restructuring Charges | Three Months Ended Six Months Ended Cumulative Amount August 3, 2024 August 3, 2024 As of August 3, 2024 Domestic $ ( 7 ) $ 10 $ 173 International 1 - 8 Total $ ( 6 ) $ 10 $ 181 |
Restructuring Accrual Activity | Termination Benefits Domestic International Total Balances at February 3, 2024 $ 163 $ 8 $ 171 Charges 17 1 18 Cash payments ( 66 ) ( 1 ) ( 67 ) Adjustments (1) ( 7 ) ( 1 ) ( 8 ) Balances at August 3, 2024 $ 107 $ 7 $ 114 (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) | 6 Months Ended |
Aug. 03, 2024 | |
Goodwill and Intangible Assets [Abstract] | |
Gross Carrying Amount of Goodwill and Cumulative Goodwill Impairment | Gross Carrying Amount Cumulative Impairment Domestic $ 1,450 $ ( 67 ) International 608 ( 608 ) Total $ 2,058 $ ( 675 ) |
Definite-Lived Intangible Assets | August 3, 2024 February 3, 2024 July 29, 2023 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Weighted-Average Useful Life Remaining as of August 3, 2024 (in years) Customer relationships $ 360 $ 280 $ 360 $ 276 $ 360 $ 264 9.6 Tradenames 92 75 108 69 108 63 2.2 Developed technology 64 60 64 59 64 57 3.3 Total $ 516 $ 415 $ 532 $ 404 $ 532 $ 384 8.1 |
Amortization Expense | Three Months Ended Six Months Ended Statement of Earnings Location August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023 Amortization expense Selling, general and administrative expenses $ 5 $ 21 $ 11 $ 41 |
Amortization Expense Expected to be Recognized | Amortization Expense Remainder of fiscal 2025 $ 9 Fiscal 2026 18 Fiscal 2027 16 Fiscal 2028 10 Fiscal 2029 8 Fiscal 2030 7 Thereafter 33 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Aug. 03, 2024 | |
Fair Value Measurements [Abstract] | |
Fair Value, Assets and Liabilities Measured on Recurring Basis | Fair Value as of Balance Sheet Location (1) Fair Value Hierarchy August 3, 2024 February 3, 2024 July 29, 2023 Assets Money market funds (2) Cash and cash equivalents Level 1 $ 212 $ 330 $ 104 Time deposits (3) Cash and cash equivalents Level 2 136 60 117 Money market funds (2) Other current assets Level 1 147 182 167 Time deposits (3) Other current assets Level 2 51 50 60 Marketable securities that fund deferred compensation (4) Other assets Level 1 38 48 47 Liabilities Interest rate swap derivative instruments (5) Long-term liabilities Level 2 2 11 20 (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 | August 3, 2024 February 3, 2024 July 29, 2023 Fair Value Carrying Value Fair Value Carrying Value Fair Value Carrying Value Long-term debt (1) $ 1,058 $ 1,148 $ 1,022 $ 1,139 $ 991 $ 1,130 (1) Excludes debt discou nts, issuance costs and finance lease obligations. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Aug. 03, 2024 | |
Derivative Instruments [Abstract] | |
Notional Amount of Derivative Instruments | Contract Type August 3, 2024 February 3, 2024 July 29, 2023 Derivatives designated as net investment hedges $ 103 $ 100 $ 102 Derivatives designated as fair value hedges (interest rate swaps) 500 500 500 No hedge designation (foreign exchange contracts) 59 66 50 Total $ 662 $ 666 $ 652 |
Effects of Derivative Instruments on Consolidated Statements of Earnings | Gain (Loss) Recognized Three Months Ended Six Months Ended Statement of Earnings Location August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023 Interest rate swaps Interest expense $ 24 $ ( 10 ) $ 9 $ ( 14 ) Adjustments to carrying value of long-term debt Interest expense ( 24 ) 10 ( 9 ) 14 Total $ - $ - $ - $ - |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Aug. 03, 2024 | |
Debt [Abstract] | |
Schedule of Long-term Debt | August 3, 2024 February 3, 2024 July 29, 2023 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 ( 2 ) ( 11 ) ( 20 ) Subtotal 1,148 1,139 1,130 Debt discounts and issuance costs ( 7 ) ( 8 ) ( 9 ) Finance lease obligations 29 34 39 Total long-term debt 1,170 1,165 1,160 Less current portion 13 13 15 Total long-term debt, less current portion $ 1,157 $ 1,152 $ 1,145 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Aug. 03, 2024 | |
Revenue [Abstract] | |
Contract Balances and Changes in Contract Balances | August 3, 2024 February 3, 2024 July 29, 2023 Receivables, net (1) $ 474 $ 512 $ 485 Short-term contract liabilities included in: Unredeemed gift card liabilities 243 253 250 Deferred revenue 940 1,000 996 Accrued liabilities 64 53 64 Long-term contract liabilities included in: Long-term liabilities 233 245 254 (1) Receivables are recorded net of allowances for expected credit losses of $ 16 million, $ 23 million and $ 18 million as of August 3, 2024, February 3, 2024, and July 29, 2023, respectively. |
Expected Timing for Satisfying Remaining Performance Obligation | Fiscal Year Amount Remainder of fiscal 2025 $ 17 Fiscal 2026 33 Fiscal 2027 27 Fiscal 2028 25 Fiscal 2029 25 Fiscal 2030 25 Thereafter 112 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Aug. 03, 2024 | |
Earnings per Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | Three Months Ended Six Months Ended August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023 Numerator Net earnings $ 291 $ 274 $ 537 $ 518 Denominator Weighted-average common shares outstanding 216.0 218.6 216.1 218.7 Dilutive effect of stock compensation plan awards 1.1 0.4 1.1 0.8 Weighted-average common shares outstanding, assuming dilution 217.1 219.0 217.2 219.5 Potential shares which were anti-dilutive and excluded from weighted-average share computations - 1.1 - 1.3 Basic earnings per share $ 1.35 $ 1.25 $ 2.49 $ 2.37 Diluted earnings per share $ 1.34 $ 1.25 $ 2.47 $ 2.36 |
Repurchase of Common Stock (Tab
Repurchase of Common Stock (Tables) | 6 Months Ended |
Aug. 03, 2024 | |
Repurchase of Common Stock [Abstract] | |
Schedule of Share Repurchases | Three Months Ended Six Months Ended August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023 Total cost of shares repurchased $ 98 $ 69 $ 150 $ 150 Average price per share $ 82.57 $ 76.88 $ 80.86 $ 76.48 Total number of shares repurchased 1.1 0.9 1.8 2.0 |
Segments (Tables)
Segments (Tables) | 6 Months Ended |
Aug. 03, 2024 | |
Segments [Abstract] | |
Revenue by Reportable Segment and Product Category | Three Months Ended Six Months Ended August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023 Revenue by reportable segment Domestic $ 8,623 $ 8,890 $ 16,826 $ 17,691 International 665 693 1,309 1,359 Total revenue $ 9,288 $ 9,583 $ 18,135 $ 19,050 Revenue by product category Domestic: Computing and Mobile Phones $ 3,792 $ 3,674 $ 7,380 $ 7,362 Consumer Electronics 2,478 2,658 4,842 5,250 Appliances 1,177 1,384 2,267 2,723 Entertainment 498 544 1,018 1,135 Services 590 550 1,168 1,087 Other 88 80 151 134 Total Domestic revenue $ 8,623 $ 8,890 $ 16,826 $ 17,691 International: Computing and Mobile Phones $ 308 $ 309 $ 626 $ 625 Consumer Electronics 186 194 359 378 Appliances 86 92 146 151 Entertainment 39 50 85 110 Services 38 38 77 74 Other 8 10 16 21 Total International revenue $ 665 $ 693 $ 1,309 $ 1,359 |
Operating Income by Reportable Segment and Reconciliation to Earnings Before Income Tax Expense | Three Months Ended Six Months Ended August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023 Domestic $ 367 $ 329 $ 670 $ 619 International 16 19 25 40 Total operating income 383 348 695 659 Other income (expense): Gain on sale of subsidiary, net - 21 - 21 Investment income and other 21 12 46 33 Interest expense ( 13 ) ( 12 ) ( 25 ) ( 24 ) Earnings before income tax expense and equity in income of affiliates $ 391 $ 369 $ 716 $ 689 |
Assets by Reportable Segment | August 3, 2024 February 3, 2024 July 29, 2023 Domestic $ 14,471 $ 13,660 $ 14,028 International 1,153 1,307 1,290 Total assets $ 15,624 $ 14,967 $ 15,318 |
Basis of Presentation (Narrativ
Basis of Presentation (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2023 | Jul. 29, 2023 | Aug. 03, 2024 | Feb. 03, 2024 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Gain on sale of subsidiary, net | $ 21 | $ 21 | ||
Liability associated with funded participation | $ 609 | $ 609 | $ 729 | $ 426 |
Basis of Presentation (Total Ca
Basis of Presentation (Total Cash, Cash Equivalents and Restricted Cash) (Details) - USD ($) $ in Millions | Aug. 03, 2024 | Feb. 03, 2024 | Jul. 29, 2023 | Jan. 28, 2023 |
Basis of Presentation [Abstract] | ||||
Cash and cash equivalents | $ 1,387 | $ 1,447 | $ 1,093 | |
Restricted cash included in Other current assets | 311 | 346 | 398 | |
Total cash, cash equivalents and restricted cash | $ 1,698 | $ 1,793 | $ 1,491 | $ 2,253 |
Restructuring (Narrative) (Deta
Restructuring (Narrative) (Details) - 2023 Resource Optimization Initiative [Member] - Termination Benefits [Member] - Continuing Operations [Member] $ in Millions | Aug. 03, 2024 USD ($) |
Restructuring Cost and Reserve [Line Items] | |
Cumulative Amount | $ 125 |
Domestic [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative Amount | 122 |
International [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative Amount | $ 3 |
Restructuring (Composition of R
Restructuring (Composition of Restructuring Charges) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 03, 2024 | Jul. 29, 2023 | Aug. 03, 2024 | Jul. 29, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ (7) | $ (7) | $ 8 | $ (16) |
2024 Resource Optimization Initiative [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | (6) | 10 | ||
2023 Resource Optimization Initiative [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | (1) | $ (7) | (2) | $ (16) |
Termination Benefits [Member] | 2024 Resource Optimization Initiative [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | (6) | 10 | ||
Cumulative Amount | 181 | 181 | ||
Domestic [Member] | Termination Benefits [Member] | 2024 Resource Optimization Initiative [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | (7) | 10 | ||
Cumulative Amount | 173 | 173 | ||
International [Member] | Termination Benefits [Member] | 2024 Resource Optimization Initiative [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1 | |||
Cumulative Amount | $ 8 | $ 8 |
Restructuring (Restructuring Ac
Restructuring (Restructuring Accrual Activity) (Details) - 2024 Resource Optimization Initiative [Member] - Termination Benefits [Member] $ in Millions | 6 Months Ended |
Aug. 03, 2024 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Balances | $ 171 |
Charges | 18 |
Cash payments | (67) |
Adjustments | (8) |
Balances | 114 |
Domestic [Member] | |
Restructuring Reserve [Roll Forward] | |
Balances | 163 |
Charges | 17 |
Cash payments | (66) |
Adjustments | (7) |
Balances | 107 |
International [Member] | |
Restructuring Reserve [Roll Forward] | |
Balances | 8 |
Charges | 1 |
Cash payments | (1) |
Adjustments | (1) |
Balances | $ 7 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Aug. 03, 2024 | Jul. 29, 2023 | Feb. 03, 2024 | |
Intangible Assets [Line Items] | |||
Goodwill and intangible assets impairment charges | $ 0 | $ 0 | $ 0 |
Goodwill | 1,383,000,000 | $ 1,383,000,000 | $ 1,383,000,000 |
Tradenames [Member] | |||
Intangible Assets [Line Items] | |||
Goodwill | $ 16,000,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Gross Carrying Amount of Goodwill and Cumulative Goodwill Impairment) (Details) $ in Millions | Aug. 03, 2024 USD ($) |
Goodwill [Line Items] | |
Gross Carrying Amount | $ 2,058 |
Cumulative Impairment | (675) |
Domestic [Member] | |
Goodwill [Line Items] | |
Gross Carrying Amount | 1,450 |
Cumulative Impairment | (67) |
International [Member] | |
Goodwill [Line Items] | |
Gross Carrying Amount | 608 |
Cumulative Impairment | $ (608) |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Definite-Lived Intangible Assets) (Details) - USD ($) $ in Millions | Aug. 03, 2024 | Feb. 03, 2024 | Jul. 29, 2023 |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 516 | $ 532 | $ 532 |
Accumulated Amortization | $ 415 | 404 | 384 |
Weighted-Average Useful Life Remaining | 8 years 1 month 6 days | ||
Customer Relationships [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 360 | 360 | 360 |
Accumulated Amortization | $ 280 | 276 | 264 |
Weighted-Average Useful Life Remaining | 9 years 7 months 6 days | ||
Tradenames [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 92 | 108 | 108 |
Accumulated Amortization | $ 75 | 69 | 63 |
Weighted-Average Useful Life Remaining | 2 years 2 months 12 days | ||
Developed Technology [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 64 | 64 | 64 |
Accumulated Amortization | $ 60 | $ 59 | $ 57 |
Weighted-Average Useful Life Remaining | 3 years 3 months 18 days |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Amortization Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 03, 2024 | Jul. 29, 2023 | Aug. 03, 2024 | Jul. 29, 2023 | |
Goodwill and Intangible Assets [Abstract] | ||||
Amortization expense | $ 5 | $ 21 | $ 11 | $ 41 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets (Amortization Expense Expected to be Recognized) (Details) $ in Millions | Aug. 03, 2024 USD ($) |
Goodwill and Intangible Assets [Abstract] | |
Remainder of fiscal 2025 | $ 9 |
Fiscal 2026 | 18 |
Fiscal 2027 | 16 |
Fiscal 2028 | 10 |
Fiscal 2029 | 8 |
Fiscal 2030 | 7 |
Thereafter | $ 33 |
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 | Aug. 03, 2024 | Feb. 03, 2024 | Jul. 29, 2023 |
Level 1 [Member] | Money Market Funds [Member] | |||
Assets | |||
Cash and cash equivalents | $ 212 | $ 330 | $ 104 |
Other current assets | 147 | 182 | 167 |
Level 1 [Member] | Marketable Securities that Fund Deferred Compensation [Member] | |||
Assets | |||
Other assets | 38 | 48 | 47 |
Level 2 [Member] | Time Deposits [Member] | |||
Assets | |||
Cash and cash equivalents | 136 | 60 | 117 |
Other current assets | 51 | 50 | 60 |
Level 2 [Member] | Interest Rate Swap Derivative Instruments [Member] | |||
Liabilities | |||
Long-term liabilities | $ 2 | $ 11 | $ 20 |
Fair Value Measurements (Fair_2
Fair Value Measurements (Fair Value of Financial Instruments) (Details) - USD ($) $ in Millions | Aug. 03, 2024 | Feb. 03, 2024 | Jul. 29, 2023 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Carrying value | $ 1,148 | $ 1,139 | $ 1,130 |
Level 2 [Member] | Long-term Debt [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair Value | 1,058 | 1,022 | 991 |
Carrying value | $ 1,148 | $ 1,139 | $ 1,130 |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) $ in Millions | Aug. 03, 2024 USD ($) |
Notes Due 2028 [Member] | |
Derivative [Line Items] | |
Principal amount | $ 500 |
Derivative Instruments (Notiona
Derivative Instruments (Notional Amount of Derivative Instruments) (Details) - USD ($) $ in Millions | Aug. 03, 2024 | Feb. 03, 2024 | Jul. 29, 2023 |
Derivatives, Fair Value [Line Items] | |||
Notional amount | $ 662 | $ 666 | $ 652 |
Derivatives Designated As Net Investment Hedges [Member] | Designated As Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | 103 | 100 | 102 |
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 | $ 59 | $ 66 | $ 50 |
Derivative Instruments (Effects
Derivative Instruments (Effects of Derivative Instruments on Consolidated Statements of Earnings) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 03, 2024 | Jul. 29, 2023 | Aug. 03, 2024 | Jul. 29, 2023 | |
Interest Rate Swap Derivative Instruments [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Gain (Loss) Recognized | $ 24 | $ (10) | $ 9 | $ (14) |
Carrying Value of Long Term Debt [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Gain (Loss) Recognized | $ (24) | $ 10 | $ (9) | $ 14 |
Debt (Short-Term Debt) (Narrati
Debt (Short-Term Debt) (Narrative) (Details) - Five-Year Facility Agreement [Member] - Revolving Credit Facility [Member] - USD ($) | Apr. 12, 2023 | Aug. 03, 2024 | Feb. 03, 2024 | Jul. 29, 2023 |
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) | Aug. 03, 2024 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 | Aug. 03, 2024 | Feb. 03, 2024 | Jul. 29, 2023 |
Debt Instrument [Line Items] | |||
Interest rate swap valuation adjustments | $ (2) | $ (11) | $ (20) |
Subtotal | 1,148 | 1,139 | 1,130 |
Debt discounts and issuance costs | (7) | (8) | (9) |
Finance lease obligations | 29 | 34 | 39 |
Total long-term debt | 1,170 | 1,165 | 1,160 |
Less current portion | 13 | 13 | 15 |
Total long-term debt, less current portion | 1,157 | 1,152 | 1,145 |
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 | 6 Months Ended | |
Aug. 03, 2024 | Jul. 29, 2023 | |
Revenue [Abstract] | ||
Revenue recognized | $ 893 | $ 1,026 |
Revenue (Contract Balances and
Revenue (Contract Balances and Changes in Contract Balances) (Details) - USD ($) $ in Millions | Aug. 03, 2024 | Feb. 03, 2024 | Jul. 29, 2023 |
Revenue from Contract with Customer [Line Items] | |||
Receivables, net | $ 474 | $ 512 | $ 485 |
Receivables, allowance for expected credit loss | 16 | 23 | 18 |
Unredeemed Gift Cards [Member] | |||
Revenue from Contract with Customer [Line Items] | |||
Short-term contract liabilities | 243 | 253 | 250 |
Deferred Revenue [Member] | |||
Revenue from Contract with Customer [Line Items] | |||
Short-term contract liabilities | 940 | 1,000 | 996 |
Accrued Liabilities [Member] | |||
Revenue from Contract with Customer [Line Items] | |||
Short-term contract liabilities | 64 | 53 | 64 |
Long-Term Liabilities [Member] | |||
Revenue from Contract with Customer [Line Items] | |||
Long-term contract liabilities | $ 233 | $ 245 | $ 254 |
Revenue (Expected Timing for Sa
Revenue (Expected Timing for Satisfying Remaining Performance Obligation) (Details) $ in Millions | Aug. 03, 2024 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-08-04 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated revenue from our contract liability balances | $ 17 |
Performance obligations from contract liability balances, duration | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-02-02 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated revenue from our contract liability balances | $ 33 |
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 | $ 27 |
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 | $ 25 |
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 | $ 25 |
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 | $ 25 |
Performance obligations from contract liability balances, duration | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2030-02-03 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated revenue from our contract liability balances | $ 112 |
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 | 6 Months Ended | ||
Aug. 03, 2024 | Jul. 29, 2023 | Aug. 03, 2024 | Jul. 29, 2023 | |
Earnings per Share [Abstract] | ||||
Net earnings | $ 291 | $ 274 | $ 537 | $ 518 |
Weighted-average common shares outstanding (in shares) | 216 | 218.6 | 216.1 | 218.7 |
Dilutive effect of stock compensation plan awards (in shares) | 1.1 | 0.4 | 1.1 | 0.8 |
Weighted-average common shares outstanding, assuming dilution (in shares) | 217.1 | 219 | 217.2 | 219.5 |
Potential shares which were anti-dilutive and excluded from weighted-average share computations (in shares) | 1.1 | 1.3 | ||
Basic earnings per share | $ 1.35 | $ 1.25 | $ 2.49 | $ 2.37 |
Diluted earnings per share | $ 1.34 | $ 1.25 | $ 2.47 | $ 2.36 |
Repurchase of Common Stock (Nar
Repurchase of Common Stock (Narrative) (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Sep. 04, 2024 | Aug. 03, 2024 | Jul. 29, 2023 | Aug. 03, 2024 | Jul. 29, 2023 | Feb. 01, 2025 | Feb. 28, 2022 | |
Stock Repurchases [Line Items] | |||||||
Stock Repurchase Program, Authorized Amount | $ 5,000 | $ 5,000 | $ 5,000 | ||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 3,600 | 3,600 | |||||
Repurchase of common stock | $ 98 | $ 69 | $ 150 | $ 150 | |||
Repurchase of common stock (in shares) | 1.1 | 0.9 | 1.8 | 2 | |||
Forecast [Member] | |||||||
Stock Repurchases [Line Items] | |||||||
Repurchase of common stock | $ 500 | ||||||
Subsequent Event [Member] | |||||||
Stock Repurchases [Line Items] | |||||||
Repurchase of common stock | $ 39 | ||||||
Repurchase of common stock (in shares) | 0.4 |
Repurchase of Common Stock (Sch
Repurchase of Common Stock (Schedule of Share Repurchases) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 03, 2024 | Jul. 29, 2023 | Aug. 03, 2024 | Jul. 29, 2023 | |
Repurchase of Common Stock [Abstract] | ||||
Total cost of shares repurchased | $ 98 | $ 69 | $ 150 | $ 150 |
Average price per share | $ 82.57 | $ 76.88 | $ 80.86 | $ 76.48 |
Total number of shares repurchased | 1.1 | 0.9 | 1.8 | 2 |
Segments (Revenue by Reportable
Segments (Revenue by Reportable Segment and Product Category) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 03, 2024 | Jul. 29, 2023 | Aug. 03, 2024 | Jul. 29, 2023 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 9,288 | $ 9,583 | $ 18,135 | $ 19,050 |
Domestic Segment [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 8,623 | 8,890 | 16,826 | 17,691 |
Domestic Segment [Member] | Computing and Mobile Phones [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 3,792 | 3,674 | 7,380 | 7,362 |
Domestic Segment [Member] | Consumer Electronics [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 2,478 | 2,658 | 4,842 | 5,250 |
Domestic Segment [Member] | Appliances [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 1,177 | 1,384 | 2,267 | 2,723 |
Domestic Segment [Member] | Entertainment [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 498 | 544 | 1,018 | 1,135 |
Domestic Segment [Member] | Services [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 590 | 550 | 1,168 | 1,087 |
Domestic Segment [Member] | Other [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 88 | 80 | 151 | 134 |
International Segment [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 665 | 693 | 1,309 | 1,359 |
International Segment [Member] | Computing and Mobile Phones [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 308 | 309 | 626 | 625 |
International Segment [Member] | Consumer Electronics [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 186 | 194 | 359 | 378 |
International Segment [Member] | Appliances [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 86 | 92 | 146 | 151 |
International Segment [Member] | Entertainment [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 39 | 50 | 85 | 110 |
International Segment [Member] | Services [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 38 | 38 | 77 | 74 |
International Segment [Member] | Other [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 8 | $ 10 | $ 16 | $ 21 |
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 | 6 Months Ended | ||
Aug. 03, 2024 | Jul. 29, 2023 | Aug. 03, 2024 | Jul. 29, 2023 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating income | $ 383 | $ 348 | $ 695 | $ 659 |
Gain on sale of subsidiary, net | 21 | 21 | ||
Investment income and other | 21 | 12 | 46 | 33 |
Interest expense | (13) | (12) | (25) | (24) |
Earnings before income tax expense and equity in income of affiliates | 391 | 369 | 716 | 689 |
Domestic Segment [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating income | 367 | 329 | 670 | 619 |
International Segment [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating income | $ 16 | $ 19 | $ 25 | $ 40 |
Segments (Assets by Reportable
Segments (Assets by Reportable Segment) (Details) - USD ($) $ in Millions | Aug. 03, 2024 | Feb. 03, 2024 | Jul. 29, 2023 |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | $ 15,624 | $ 14,967 | $ 15,318 |
Domestic Segment [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 14,471 | 13,660 | 14,028 |
International Segment [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | $ 1,153 | $ 1,307 | $ 1,290 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Aug. 03, 2024 shares | |
Insider Trading Arrangements [Line Items] | |
Name | Corie Barry |
Title | Chief Executive Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | June 6, 2024 |
Expiration Date | September 17, 2024 |
Aggregate Available | 79,829 |