Best Buy (BBY) 10-K 28 Apr 10 2010 FY Annual report Financial data

Consolidated Balance Sheets

Consolidated Balance Sheets (USD $)
In Millions	12 Months Ended Feb. 27, 2010	12 Months Ended Feb. 28, 2009
Current Assets
Cash and cash equivalents	$1,826	$498
Short-term investments	90	11
Receivables	2,020	1,868
Merchandise inventories	5,486	4,753
Other current assets	1,144	1,062
Total current assets	10,566	8,192
Property and Equipment
Land and buildings	757	755
Leasehold improvements	2,154	2,013
Fixtures and equipment	4,447	4,060
Property under capital lease	95	112
Gross property and equipment	7,453	6,940
Less accumulated depreciation	3,383	2,766
Net property and equipment	4,070	4,174
Goodwill	2,452	2,203
Tradenames	159	173
Customer Relationships	279	322
Equity and Other Investments	324	395
Other Assets	452	367
Total Assets	18,302	15,826
Current Liabilities
Accounts payable	5,276	4,997
Unredeemed gift card liabilities	463	479
Accrued compensation and related expenses	544	459
Accrued liabilities	1,681	1,382
Accrued income taxes	316	281
Short-term debt	663	783
Current portion of long-term debt	35	54
Total current liabilities	8,978	8,435
Long-Term Liabilities	1,256	1,109
Long-Term Debt	1,104	1,126
Commitments and Contingencies (Note 13)
Best Buy Co., Inc. Shareholders' Equity
Preferred stock, $1.00 par value: Authorized - 400,000 shares; Issued and outstanding - none	0	0
Common stock, $0.10 par value: Authorized - 1.0 billion shares; Issued and outstanding - 418,815,000 and 413,684,000 shares, respectively	42	41
Additional paid-in capital	441	205
Retained earnings	5,797	4,714
Accumulated other comprehensive income (loss)	40	(317)
Total Best Buy Co., Inc. shareholders' equity	6,320	4,643
Noncontrolling interests	644	513
Total shareholders' equity	6,964	5,156
Total Liabilities and Shareholders' Equity	$18,302	$15,826

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) (USD $)
	Feb. 27, 2010	Feb. 28, 2009
Consolidated Balance Sheets
Preferred stock, par value (in dollar per share)	$1	$1
Preferred stock, shares authorized	400,000	400,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollar per share)	0.1	0.1
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued	418,815,000	413,684,000
Common stock, shares outstanding	418,815,000	413,684,000

Consolidated Statements of Earn

Consolidated Statements of Earnings (USD $)
In Millions, except Per Share data	12 Months Ended Feb. 27, 2010	12 Months Ended Feb. 28, 2009	12 Months Ended Mar. 01, 2008
Consolidated Statements of Earnings
Revenue	$49,694	$45,015	$40,023
Cost of goods sold	37,534	34,017	30,477
Gross profit	12,160	10,998	9,546
Selling, general and administrative expenses	9,873	8,984	7,385
Restructuring charges	52	78
Goodwill and tradename impairment		66
Operating income	2,235	1,870	2,161
Other income (expense)
Investment income and other	54	35	129
Investment impairment		(111)
Interest expense	(94)	(94)	(62)
Earnings before income tax expense and equity in income (loss) of affiliates	2,195	1,700	2,228
Income tax expense	802	674	815
Equity in income (loss) of affiliates	1	7	(3)
Net earnings including noncontrolling interests	1,394	1,033	1,410
Net earnings attributable to noncontrolling interests	(77)	(30)	(3)
Net earnings attributable to Best Buy Co., Inc.	$1,317	$1,003	$1,407
Earnings per share attributable to Best Buy Co., Inc.
Basic (in dollars per share)	3.16	2.43	3.2
Diluted (in dollars per share)	3.1	2.39	3.12
Weighted-average common shares outstanding (in millions)
Basic (in shares)	416.8	412.5	439.9
Diluted (in shares)	427.5	422.9	452.9

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (USD $)
In Millions	12 Months Ended Feb. 27, 2010	12 Months Ended Feb. 28, 2009	12 Months Ended Mar. 01, 2008
Operating Activities
Net earnings including noncontrolling interests	$1,394	$1,033	$1,410
Adjustments to reconcile net earnings to total cash provided by operating activities:
Depreciation	838	730	580
Amortization of definite-lived intangible assets	88	63	1
Asset impairments	4	177
Restructuring charges	52	78
Stock-based compensation	118	110	105
Deferred income taxes	(30)	(43)	74
Excess tax benefits from stock-based compensation	(7)	(6)	(24)
Other, net	(4)	12	(7)
Changes in operating assets and liabilities, net of acquired assets and liabilities:
Receivables	(63)	(419)	12
Merchandise inventories	(609)	258	(562)
Other assets	(98)	(175)	42
Accounts payable	141	139	221
Other liabilities	279	(75)	74
Income taxes	103	(5)	99
Total cash provided by operating activities	2,206	1,877	2,025
Investing Activities
Additions to property and equipment, net of $9, $42 and $80 non-cash capital expenditures in fiscal 2010, 2009 and 2008, respectively	(615)	(1,303)	(797)
Purchases of investments	(16)	(81)	(8,501)
Sales of investments	56	246	10,935
Acquisitions of businesses, net of cash acquired	(7)	(2,170)	(89)
Change in restricted assets	18	(97)	(85)
Settlement of net investment hedges	40
Other, net	(16)	(22)	1
Total cash (used in) provided by investing activities	(540)	(3,427)	1,464
Financing Activities
Repurchase of common stock			(3,461)
Issuance of common stock under employee stock purchase plan and for the exercise of stock options	138	83	146
Dividends paid	(234)	(223)	(204)
Repayments of debt	(5,342)	(4,712)	(4,353)
Proceeds from issuance of debt	5,132	5,606	4,486
Acquisition of noncontrolling interests	(34)	(146)
Excess tax benefits from stock-based compensation	7	6	24
Other, net	(15)	(23)	(16)
Total cash (used in) provided by financing activities	(348)	591	(3,378)
Effect of Exchange Rate Changes on Cash	10	19	122
Increase (Decrease) in Cash and Cash Equivalents	1,328	(940)	233
Cash and Cash Equivalents at Beginning of Year	498	1,438	1,205
Cash and Cash Equivalents at End of Year	1,826	498	1,438
Supplemental Disclosure of Cash Flow Information
Income taxes paid	732	766	644
Interest paid	$78	$83	$49

1_Consolidated Statements of Ca

Consolidated Statements of Cash Flows (Parenthetical) (USD $)
In Millions	12 Months Ended Feb. 27, 2010	12 Months Ended Feb. 28, 2009	12 Months Ended Mar. 01, 2008
Consolidated Statements of Cash Flows
Non-cash capital expenditures	$9	$42	$80

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity (USD $)
In Millions	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total Best Buy Co., Inc.	Noncontrolling Interests	Total
Balances at Mar. 03, 2007	$48	$430	$5,507	$216	$6,201	$35	$6,236
Balances (in shares) at Mar. 03, 2007	481
Increase (Decrease) in Stockholders' Equity
Net earnings			1,407		1,407	3	1,410
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments				311	311	2	313
Unrealized gains (losses) on available-for-sale investments				(25)	(25)		(25)
Total comprehensive income					1,693	5	1,698
Cumulative effect of adopting a new accounting standard related to uncertain tax positions			(13)		(13)		(13)
Stock options exercised		93			93		93
Stock options exercised, shares	4
Tax benefit (loss) from stock options, restricted stock and employee stock purchase plan		17			17		17
Issuance of common stock under employee stock purchase plan		53			53		53
Issuance of common stock under employee stock purchase plan, shares	1
Stock-based compensation		105			105		105
Common stock dividends, $0.56, $0.54 and $0.46 in fiscal 2010, 2009 and 2008, respectively per share			(204)		(204)		(204)
Repurchase of common stock	(7)	(690)	(2,764)		(3,461)		(3,461)
Repurchase of common stock, shares	(75)
Balances at Mar. 01, 2008	41	8	3,933	502	4,484	40	4,524
Balances (in shares) at Mar. 01, 2008	411
Increase (Decrease) in Stockholders' Equity
Net earnings			1,003		1,003	30	1,033
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments				(830)	(830)	(175)	(1,005)
Unrealized gains (losses) on available-for-sale investments				(19)	(19)		(19)
Reclassification adjustment for impairment loss on available-for-sale security included in net earnings				30	30		30
Total comprehensive income					184	(145)	39
Acquisition of business						666	666
Acquisition of noncontrolling interest						(48)	(48)
Stock options exercised		34			34		34
Stock options exercised, shares	2
Tax benefit (loss) from stock options, restricted stock and employee stock purchase plan		4			4		4
Issuance of common stock under employee stock purchase plan		49			49		49
Issuance of common stock under employee stock purchase plan, shares	1
Stock-based compensation		110			110		110
Common stock dividends, $0.56, $0.54 and $0.46 in fiscal 2010, 2009 and 2008, respectively per share			(222)		(222)		(222)
Balances at Feb. 28, 2009	41	205	4,714	(317)	4,643	513	5,156
Balances (in shares) at Feb. 28, 2009	414
Increase (Decrease) in Stockholders' Equity
Net earnings			1,317		1,317	77	1,394
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments				329	329	76	405
Unrealized gains (losses) on available-for-sale investments				28	28		28
Cash flow hedging instruments - unrealized gain (loss)							0
Total comprehensive income					1,674	153	1,827
Purchase accounting adjustments						(22)	(22)
Stock options exercised	1	95			96		96
Stock options exercised, shares	4
Tax benefit (loss) from stock options, restricted stock and employee stock purchase plan		(19)			(19)		(19)
Issuance of common stock under employee stock purchase plan		42			42		42
Issuance of common stock under employee stock purchase plan, shares	1
Stock-based compensation		118			118		118
Common stock dividends, $0.56, $0.54 and $0.46 in fiscal 2010, 2009 and 2008, respectively per share			(234)		(234)		(234)
Balances at Feb. 27, 2010	$42	$441	$5,797	$40	$6,320	$644	$6,964
Balances (in shares) at Feb. 27, 2010	419

2_Consolidated Statements of Ch

Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) (USD $)
	12 Months Ended Feb. 27, 2010	12 Months Ended Feb. 28, 2009	12 Months Ended Mar. 01, 2008
Consolidated Statements of Changes in Shareholders' Equity
Common stock dividends, per share (in dollars per share)	0.56	0.54	0.46

Summary of Significant Accounti

Summary of Significant Accounting Policies
	12 Months Ended Feb. 27, 2010
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	1.Summary of Significant Accounting Policies Description of Business Unless the context otherwise requires, the use of the terms "we," "us" and "our" in these notes to consolidated financial statements refers to Best BuyCo.,Inc. and, as applicable, its consolidated subsidiaries. We are a multinational retailer of consumer electronics, home office products, entertainment software, appliances and related services. We operate two reportable segments: Domestic and International. The Domestic segment is comprised of store, call center and online operations in all states, districts and territories of the U.S., operating under the brand names Best Buy, Best Buy Mobile, Geek Squad, Magnolia Audio Video, Napster, Pacific Sales and Speakeasy. U.S. Best Buy stores offer a wide variety of consumer electronics, home office products, entertainment software, appliances and related services. Best Buy Mobile offers a wide selection of mobile phones, accessories and related services. Geek Squad provides residential and commercial computer repair, support and installation services. Magnolia Audio Video stores offer high-end audio and video products and related services. Napster is an online provider of digital music. Pacific Sales stores offer high-end home-improvement products including appliances, consumer electronics and related services. Speakeasy provides broadband, voice, data and information technology services. The International segment is comprised of: (i)all Canada store, call center and online operations, operating under the brand names Best Buy, Best Buy Mobile, Future Shop and Geek Squad, (ii)all Europe store, call center and online operations, operating under the brand names The Carphone Warehouse, The Phone House and Geek Squad, (iii)all China store, call center and online operations, operating under the brand names Best Buy, Geek Squad and Five Star, (iv)all Mexico store operations operating under the brand names Best Buy and Geek Squad and (v)all Turkey store operations, operating under the brand names Best Buy and Geek Squad. Our International segment offers products and services similar to those of our U.S. Best Buy stores. However, Best Buy Canada stores do not carry appliances and Best Buy China and Five Star stores do not carry entertainment software. Further, our store format and offerings in Europe are similar to our Best Buy Mobile format and offerings in the U.S., primarily offering mobile phones, voice and data service plans and related accessories and services. In support of our retail store operations, we also maintain Web sites for each of our brands including, but not limited to, BestBuy.com, BestBuy.ca, BestBuy.com.cn, espanol.BestBuy.com, BestBuyMobile.com, CarphoneWarehouse.com, Five-Star.cn, FutureShop.ca, GeekSquad.com, GeekSquad.ca, MagnoliaAV.com, Napster.com, PacificSales.com, PhoneHouse.com and Speakeasy.net. Basis of Presentation The consolidated financial statements include the accounts of Best BuyCo.,Inc. and its consolidated subsidiaries. Investments in unconsolidated entities over which we exercise significant influence but do not have control are accounted for using the equity method. Our shar

Acquisitions

Acquisitions
	12 Months Ended Feb. 27, 2010
Acquisitions
Acquisitions	2.Acquisitions Five Star We acquired a 75% interest in Jiangsu Five Star ApplianceCo.,Ltd. ("Five Star") in June 2006, for $184, which included a working capital injection of $122. At the time of the acquisition, we also entered into an agreement with Five Star's minority shareholders to acquire the remaining 25% interest in Five Star within four years, subject to Chinese government approval. In February 2009, we acquired the remaining 25% interest in Five Star, which converted Five Star into a wholly-owned foreign enterprise. The $196 purchase price for the remaining 25% interest was primarily based on a previously agreed-upon pricing formula, consisting of a base purchase price and an earn-out for the remaining Five Star shareholders. At the time of the initial purchase, we agreed to pay an amount in excess of the fair value of the net assets acquired to further our international growth plans and accelerate the integration of Best Buy and Five Star stores in China. The acquisition of the remaining 25% interest in Five Star for $196 was accounted for using the purchase method. We recorded the net assets acquired at their estimated fair values. We included Five Star's operating results, which are reported on a two-month lag, from the date of acquisition as part of our International segment. The allocation of the purchase price to the acquired assets and liabilities was finalized in the fourth quarter of fiscal 2010, with no material adjustments made to the preliminary allocation. None of the goodwill is deductible for tax purposes. The final purchase price allocation was as follows: Net assets of noncontrolling interests $ 48 Tradename 8 Goodwill 142 Total assets 198 Long-term liabilities (2 ) Purchase price allocated to assets and liabilities acquired $ 196 Napster In October 2008, we acquired Napster,Inc. ("Napster") for $122 (or $101 net of cash acquired), pursuant to a cash tender offer whereby all issued and outstanding shares of Napster common stock, and all stock purchase rights associated with such shares, were acquired by us at a price of $2.65 per share. Of the $122 purchase price, $4 represented our previous ownership interest in Napster common shares. The effective acquisition date for accounting purposes was the close of business on October31, 2008, the end of Napster's fiscal October. We entered into this transaction as we believe Napster has one of the most comprehensive and easy-to-use digital music offerings in the industry. The amount we paid in excess of the fair value of the net assets acquired was to obtain Napster's capabilities and digital subscriber base to reach new customers with an enhanced experience for exploring and selecting music and other digital entertainment products over an increasing array of devices, such as bundling the sale of hardware with digital services. We believe the combined capabilities of our two companies allows us to build stronger relationships with customers and expand the number of subscribers. We have consolidated Napster in our financial results as part of our Domestic segment fro

Investments

Investments
	12 Months Ended Feb. 27, 2010
Investments
Investments	3.Investments Investments were comprised of the following: February27, 2010 February28, 2009 Short-term investments Money market fund $ 2 $ 8 Debt securities (auction-rate securities) 88 Other investments 3 Total short-term investments $ 90 $ 11 Equity and other investments Debt securities (auction-rate securities) $ 192 $ 314 Marketable equity securities 77 41 Other investments 55 40 Total equity and other investments $ 324 $ 395 Debt Securities Our debt securities are comprised of ARS. We classify our investments in ARS as available-for-sale and carry them at fair value. ARS were intended to behave like short-term debt instruments because their interest rates reset periodically through an auction process, most commonly at intervals of seven, 28 and 35days. The auction process had historically provided a means by which we could rollover the investment or sell these securities at par in order to provide us with liquidity as needed. In mid-February 2008, auctions began to fail due to insufficient buyers, as the amount of securities submitted for sale in auctions exceeded the aggregate amount of the bids. For each failed auction, the interest rate on the security moves to a maximum rate specified for each security, and generally resets at a level higher than specified short-term interest rate benchmarks. To date, we have collected all interest due on our ARS and expect to continue to do so in the future. We sold $43 of ARS at par during fiscal 2010. However, at February27, 2010, our entire remaining ARS portfolio, consisting of 48 investments in ARS having an aggregate value at par of $285, was subject to failed auctions. Subsequent to February27, 2010, and through April26, 2010, we sold $10 (par value) of our ARS. As a result of the persistent failed auctions, and the uncertainty of when these investments could be liquidated at par, we have classified all of our investments in ARS as non-current assets within equity and other investments in our consolidated balance sheet at February27, 2010, except for $88, which was marketed and sold by UBS AG and its affiliates (collectively, "UBS") and is classified within short-term investments. In October 2008, we accepted a settlement with UBS pursuant to which UBS issued to us SeriesC-2 Auction Rate Securities Rights ("ARS Rights"). The ARS Rights provide us the right to receive the full par value of our UBS-brokered ARS of $88 plus accrued but unpaid interest at any time between June30, 2010, and July2, 2012. We plan to exercise our ARS Rights in the second quarter of fiscal 2011. Our ARS portfolio consisted of the following, at fair value: Description Natureofcollateralorguarantee February27, 2010 February28, 2009 Student loan bonds Student loans guaranteed 95% to 100% by the U.S. government $ 261 $ 276 Municipal revenue bonds 100% insured by AAA/Aaa-rated bond insurers at February27, 2010 19 24 Auction preferred securities Underlying investments of closed-en

Fair Value Measurements

Fair Value Measurements
	12 Months Ended Feb. 27, 2010
Fair Value Measurements
Fair Value Measurements	4.Fair Value Measurements We adopted new accounting guidance related to fair value measurements on March2, 2008. Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We use a three-tier valuation hierarchy based upon observable and non-observable inputs: Level1 Unadjusted quoted prices that are available in active markets for the identical assets or liabilities at the measurement date. Level2 Significant other observable inputs available at the measurement date, other than quoted prices included in Level1, either directly or indirectly, including: Quoted prices for similar assets or liabilities in active markets; Quoted prices for identical or similar assets in non-active markets; Inputs other than quoted prices that are observable for the asset or liability; and Inputs that are derived principally from or corroborated by other observable market data. Level3 Significant unobservable inputs that cannot be corroborated by observable market data and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management's estimates of market participant assumptions. Assets and Liabilities that are Measured at Fair Value on a Recurring Basis The fair value hierarchy requires the use of observable market data when available. In instances in which the inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability. The following tables set forth by level within the fair value hierarchy, our financial assets and liabilities that were accounted for at fair value on a recurring basis at February27, 2010, and February28, 2009, according to the valuation techniques we used to determine their fair values. Fair Value Measurements Using Inputs Considered as Fair Value at February27, 2010 Quoted Prices in Active Markets for Identical Assets (Level1) Significant Other Observable Inputs (Level2) Significant Unobservable Inputs (Level3) Assets Cash and cash equivalents Money market funds $ 752 $ 752 $ $ U.S. Treasury bills 300 300 Short-term investments Money market fund 2 2 Auction-rate securities 88 88 Other current assets Money market funds (restricted cash) 123 123 U.S. Treasury bills (restricted cash) 25 25 Derivative instruments 4 4 Equity and other investments

Restructuring Charges

Restructuring Charges
	12 Months Ended Feb. 27, 2010
Restructuring Charges
Restructuring Charges	5.Restructuring Charges In the fourth quarter of fiscal 2009, we implemented a restructuring plan for our domestic and international businesses to support our fiscal 2010 strategy and long-term growth plans. We believe these changes provided an operating structure that supports a more effective and efficient use of our resources and provides a platform from which key strategic initiatives can progress despite changing economic conditions. In the fourth quarter of fiscal 2009, we recorded charges of $78, related primarily to voluntary and involuntary separation plans at our corporate headquarters. In April 2009, we notified our U.S. Best Buy store employees of our intention to update our store operating model, which included eliminating certain positions. In addition, in the first quarter of fiscal 2010, we incurred restructuring charges related to employee termination benefits and business reorganization costs at Best Buy Europe within our International segment. As a result of our restructuring efforts, we recorded charges of $52 in the first quarter of fiscal 2010. No restructuring charges were recorded in the second, third or fourth quarters of fiscal 2010, and we believe we are substantially complete with our announced restructuring activities. All charges related to our restructuring plans were presented as restructuring charges in our consolidated statements of earnings. The composition of our restructuring charges incurred in fiscal 2009 and 2010, as well as the cumulative amount incurred through the end of fiscal 2010, for both the Domestic and International segments, were as follows: Domestic International Total Fiscal 2009 Fiscal 2010 Cumulative Amount Fiscal 2009 Fiscal 2010 Cumulative Amount Fiscal 2009 Fiscal 2010 Cumulative Amount Termination benefits $ 69 $ 25 $ 94 $ 6 $ 26 $ 32 $ 75 $ 51 $ 126 Facility closure costs 1 1 1 1 1 1 2 Propertyandequipment write-downs 2 2 2 2 Total $ 72 $ 25 $ 97 $ 6 $ 27 $ 33 $ 78 $ 52 $ 130 The following table summarizes our restructuring accrual activity during fiscal 2010 and 2009, related to termination benefits and facility closure costs: Termination Benefits Facility Closure Costs Total Balance at March1, 2008 $ $ $ Charges 75 1 76 Cash payments (2 ) (2 ) Balance at February28, 2009 $ 73 $ 1 $ 74 Charges 51 1 52 Cash payments (119 ) (1 ) (120 ) Effects of foreign exchange rates 3 3 Balance at February27, 2010 $ 8 $ 1 $ 9

Debt

Debt
	12 Months Ended Feb. 27, 2010
Debt
Debt	6.Debt Short-Term Debt Short-term debt consisted of the following: February27, 2010 February28, 2009 Principal Balance Interest Rate Principal Balance Interest Rate JPMorgan revolving credit facility $ $ 162 0.7% to 1.5% ARS revolving credit line Europe receivables financing facility 442 3.6% Europe revolving credit facility 206 1.4% 584 1.2% to 3.9% Canada revolving demand facility 2 4.0% China revolving demand facilities 15 4.4% 35 4.6% to 5.0% Total short-term debt $ 663 $ 783 Fiscal Year 2010 2009 Maximum month-end outstanding during the year $ 1,262 $ 2,712 Average amount outstanding during the year $ 881 $ 1,167 Weighted-average interest rate 2.1% 3.2% JPMorgan Revolving Credit Facility We have a $2.3billion five-year unsecured revolving credit facility, as amended (the "Credit Facility"), with a syndicate of banks, including JPMorgan Chase Bank, N.A., acting as administrative agent. Amounts outstanding under letters of credit, if any, reduce amounts available under the Credit Facility. The Credit Facility expires in September 2012. At February27, 2010, there we no borrowings outstanding and $2.3billion was available under the Credit Facility. At April26, 2010, we had no borrowings outstanding under the Credit Facility. Interest rates under the Credit Facility are variable and are determined at our option at: (i)the greater of the federal funds rate plus 0.5% or JPMorgan's prime rate, or (ii)the LIBOR plus an applicable LIBOR margin. A facility fee is assessed on the commitment amount. Both the LIBOR margin and the facility fee were set based upon our then current senior unsecured debt rating. The LIBOR margin ranges from 0.32% to 0.60%, and the facility fee ranges from 0.08% to 0.15%. The Credit Facility is guaranteed by certain of our subsidiaries and contains customary affirmative and negative covenants. Among other things, these covenants restrict or prohibit our ability to incur certain types or amounts of indebtedness, incur liens on certain assets, make material changes to our corporate structure or the nature of our business, dispose of material assets, allow non-material subsidiaries to make guarantees, engage in a change in control transaction, or engage in certain transactions with our affiliates. The Credit Facility also contains covenants that require us to maintain a maximum quarterly cash flow leverage ratio and a minimum quarterly interest coverage ratio. We were in compliance with all such covenants at February27, 2010. ARS Revolving Credit Line As described in Note3, Investments, we entered into an agreement with UBS Bank ("UBS") for an $88 revolving credit line that is secured by the $88 par value of our UBS-brokered ARS. Interest rates under the credit line are variable based on the weighted-average rate of interest we earn on our UBS-brokered ARS. The credit line will terminate at the time UBS buys back our UBS-brokered ARS pursuant to the settl

Derivative Instruments

Derivative Instruments
	12 Months Ended Feb. 27, 2010
Derivative Instruments
Derivative Instruments	7.Derivative Instruments We manage our economic and transaction exposure to certain market-based risks through the use of derivative instruments. Under this strategy, we utilize foreign currency exchange contracts to manage foreign currency exposure to certain forecasted inventory purchases, revenue streams and net investments in certain foreign operations. Our primary objective in holding derivatives is to reduce the volatility of net earnings and cash flows as well as net asset values associated with changes in foreign currency exchange rates. We do not hold or issue derivative financial instruments for trading or speculative purposes. We record all derivatives on our consolidated balance sheets at fair value and evaluate hedge effectiveness prospectively and retrospectively when electing to apply hedge accounting treatment. We formally document all hedging relationships at inception for all derivative hedges and the underlying hedged items, as well as the risk management objectives and strategies for undertaking the hedge transactions. Our strategy employs both cash flow and net investment hedges. We classify the cash flows from derivatives treated as hedges in our consolidated statements of cash flows in the same category as the item being hedged. In addition, we have derivatives which are not designated as hedging instruments. We have no derivatives that have credit risk-related contingent features, and we mitigate our credit risk by engaging with major financial institutions as our counterparties. Cash Flow Hedges We enter into foreign exchange forward contracts to hedge against the effect of exchange rate fluctuations on certain revenue streams denominated in non-functional currencies. The contracts have terms of up to three years. We report the effective portion of the gain or loss on a cash flow hedge as a component of other comprehensive income and it is subsequently reclassified into net earnings in the period in which the hedged transaction affects net earnings or the forecasted transaction is no longer probable of occurring. We report the ineffective portion, if any, of the gain or loss in net earnings. Net Investment Hedges We also enter into foreign exchange swap contracts to hedge against the effect of euro and swiss franc exchange rate fluctuations on net investments of certain foreign operations. For a net investment hedge, we recognize changes in the fair value of the derivative as a component of foreign currency translation within other comprehensive income to offset a portion of the change in the translated value of the net investment being hedged, until the investment is sold or liquidated. We limit recognition in net earnings of amounts previously recorded in cumulative translation of other comprehensive income to circumstances such as complete or substantially complete liquidation of the net investment in the hedged foreign operation. We report the ineffective portion, if any, of the gain or loss in net earnings. Subsequent to February27, 2010, we discontinued this hedging strategy upon maturity of the foreign exchange swap contracts and no longer have contracts that hedge net investments of foreig

Shareholders' Equity

Shareholders' Equity
	12 Months Ended Feb. 27, 2010
Shareholders' Equity
Shareholders' Equity	8.Shareholders' Equity Stock Compensation Plans Our 2004 Omnibus Stock and Incentive Plan, as amended (the "Omnibus Plan"), authorizes us to grant or issue non-qualified stock options, incentive stock options, share awards and other equity awards up to a total of 52million shares. We have not granted incentive stock options under the Omnibus Plan. Under the terms of the Omnibus Plan, awards may be granted to our employees, officers, advisors, consultants and directors. Awards issued under the Omnibus Plan vest as determined by the Compensation and Human Resources Committee of our Board of Directors at the time of grant. At February27, 2010, a total of 14.8million shares were available for future grants under the Omnibus Plan. Upon adoption and approval of the Omnibus Plan, all of our previous equity incentive compensation plans were terminated. However, existing awards under those plans continued to vest in accordance with the original vesting schedule and will expire at the end of their original term. Our outstanding stock options have a 10-year term. Outstanding stock options issued to employees generally vest over a four-year period, and outstanding stock options issued to directors vest immediately upon grant. Share awards vest based either upon attainment of established goals or upon continued employment ("time-based"). Outstanding share awards that are not time-based typically vest at the end of a three-year incentive period based either upon our total shareholder return ("TSR") compared with the TSR of companies that comprise Standard Poor's 500 Index or growth in our common stock price ("market-based"), or upon the achievement of company or personal performance goals ("performance-based"). We have time-based share awards that vest in their entirety at the end of three- and four-year periods and time-based share awards where 25% of the award vests on the date of grant and 25% vests on each of the three anniversary dates thereafter. Our 2003 Employee Stock Purchase Plan permitted and our 2008 Employee Stock Purchase Plan permits our employees to purchase our common stock at 85% of the market price of the stock at the beginning or at the end of a semi-annual purchase period, whichever is less. Stock-based compensation expense was as follows in fiscal 2010, 2009 and 2008: 2010 2009 2008 Stock options $ 85 $ 77 $ 69 Share awards Market-based 8 13 15 Performance-based 1 2 4 Time-based 10 4 3 Employee stock purchase plans 14 14 14 Total $ 118 $ 110 $ 105 Stock Options Stock option activity was as follows in fiscal 2010: Stock Options Weighted- Average Exercise Price per Share Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at February28, 2009 37,768,000 $ 38.37 Granted 5,453,000 35.50 Exercised (3,088,000 ) 30.67 Forfeited/Canceled (3,545,000 ) 42.56 OutstandingatFebruary27,2010

Leases

Leases
	12 Months Ended Feb. 27, 2010
Leases
Leases	9.Leases The composition of net rent expense for all operating leases, including leases of property and equipment, was as follows in fiscal 2010, 2009 and 2008: 2010 2009 2008 Minimum rentals $ 1,145 $ 962 $ 757 Contingent rentals 2 1 1 Total rent expense 1,147 963 758 Less: sublease income (20 ) (23 ) (22 ) Net rent expense $ 1,127 $ 940 $ 736 The future minimum lease payments under our capital, financing and operating leases by fiscal year (not including contingent rentals) at February27, 2010, were as follows: Fiscal Year Capital Leases Financing Leases Operating Leases 2011 $ 17 $ 32 $ 1,162 2012 11 32 1,098 2013 5 32 1,032 2014 4 30 966 2015 4 28 887 Thereafter 26 81 3,335 Subtotal 67 235 $ 8,480 Less: imputed interest (18 ) (49 ) Present value $ 49 $ 186 Total minimum lease payments have not been reduced by minimum sublease rent income of approximately $98 due under future noncancelable subleases. During fiscal 2010 and 2009, we entered into agreements totaling $9 and $35, respectively, related to various information system and real estate capital leases.

Benefit Plans

Benefit Plans
	12 Months Ended Feb. 27, 2010
Benefit Plans
Benefit Plans	10.Benefit Plans We sponsor retirement savings plans for employees meeting certain eligibility requirements. Participants may choose from various investment options including a fund comprised of our company stock. Participants can contribute up to 50% of their eligible compensation annually as defined by the plan document, subject to Internal Revenue Service ("IRS") limitations. We match 100% of the first 3% of participating employees' contributions and 50% of the next 2%. Employer contributions vest immediately. The total employer contributions were $62, $58 and $53 in fiscal 2010, 2009 and 2008, respectively. We have a non-qualified, unfunded deferred compensation plan for highly compensated employees and members of our Board of Directors. Amounts contributed and deferred under our deferred compensation plan are credited or charged with the performance of investment options offered under the plan and elected by the participants. In the event of bankruptcy, the assets of the plan are available to satisfy the claims of general creditors. The liability for compensation deferred under the plan was $61 and $55 at February27, 2010, and February28, 2009, respectively, and is included in long-term liabilities. We manage the risk of changes in the fair value of the liability for deferred compensation by electing to match our liability under the plan with investment vehicles that offset a substantial portion of our exposure. The cash value of the investment vehicles, which includes funding for future deferrals, was $75 and $64 at February27, 2010, and February28, 2009, respectively, and is included in other assets. Both the asset and the liability are carried at fair value.

Income Taxes

Income Taxes
	12 Months Ended Feb. 27, 2010
Income Taxes
Income Taxes	11.Income Taxes The following is a reconciliation of the federal statutory income tax rate to income tax expense in fiscal 2010, 2009 and 2008: 2010 2009 2008 Federal income tax at the statutory rate $ 768 $ 595 $ 780 State income taxes, net of federal benefit 66 49 67 Benefit from foreign operations (41 ) (30 ) (25 ) Non-taxable interest income (1 ) (3 ) (17 ) Other 10 16 10 Impairments(1) 47 Income tax expense $ 802 $ 674 $ 815 Effective income tax rate 36.5% 39.6% 36.6% (1) Tax impact of the other-than-temporary impairment of our investment in the common stock of CPW and the non-deductibility of our goodwill impairment charge. Earnings before income tax expense and equity in income (loss) of affiliates by jurisdiction was as follows in fiscal 2010, 2009 and 2008: 2010 2009 2008 United States $ 1,870 $ 1,540 $ 1,931 Outside the United States 325 160 297 Earnings before income tax expense and equity in income (loss) of affiliates $ 2,195 $ 1,700 $ 2,228 Income tax expense was comprised of the following in fiscal 2010, 2009 and 2008: 2010 2009 2008 Current: Federal $ 666 $ 573 $ 609 State 113 78 110 Foreign 53 66 22 832 717 741 Deferred: Federal (13 ) (7 ) 47 State (11 ) 1 (7 ) Foreign (6 ) (37 ) 34 (30 ) (43 ) 74 Income tax expense $ 802 $ 674 $ 815 Deferred taxes are the result of differences between the bases of assets and liabilities for financial reporting and income tax purposes. Deferred tax assets and liabilities were comprised of the following: February27, 2010 February28, 2009 Accrued property expenses $ 149 $ 145 Other accrued expenses 126 152 Deferred revenue 150 115 Compensation and benefits 64 65 Stock-based compensation 125 127 Net operating loss carryforwards 211 150 Other 60 84 Total deferred tax assets 885 838 Valuation allowance (151 ) (79 ) Total deferred tax assets after valuation allowance 734 759 Property and equipment (381 ) (383 ) Convertible debt (71 ) (62 ) Goodwill and intangibles (125 ) (130 ) Other (31 ) (47 ) Total deferred tax liabilities (608 ) (622 ) Net deferred tax assets $ 126 $ 137 Deferred tax assets and liabilities included in our consolidated balance sheets were as follows: February27, 2010 February28, 2009 Other current assets $ 244 $ 236 Other assets 19 28 Other long-term liabilities (137 ) (127 ) Net deferred tax assets $ 126 $ 137 At Februa

Segment and Geographic Informat

Segment and Geographic Information
	12 Months Ended Feb. 27, 2010
Segment and Geographic Information
Segment and Geographic Information	12.Segment and Geographic Information Segment Information We have organized our operations into two segments: Domestic and International. These segments are the primary areas of measurement and decision-making by our chief operating decision maker. The Domestic reportable segment is comprised of all store, call center and online operations within the U.S. and its territories. The International reportable segment is comprised of all store, call center and online operations outside the U.S. and its territories. We rely on an internal management reporting process that provides segment information to the operating income level for purposes of making financial decisions and allocating resources. The accounting policies of the segments are the same as those described in Note1, Summary of Significant Accounting Policies. The following tables present our business segment information in fiscal 2010, 2009 and 2008: 2010 2009 2008 Revenue Domestic $ 37,314 $ 35,070 $ 33,328 International 12,380 9,945 6,695 Total revenue $ 49,694 $ 45,015 $ 40,023 Percentage of revenue, by revenue category Domestic: Consumer electronics 39% 39% 41% Home office 34% 31% 28% Entertainment software 16% 19% 20% Appliances 4% 5% 5% Services 6% 6% 6% Other 1% < 1% < 1% Total 100% 100% 100% International: Consumer electronics 20% 26% 39% Home office 53% 45% 30% Entertainment software 7% 9% 13% Appliances 8% 10% 13% Services 12% 10% 5% Other <1% <1% <1% Total 100% 100% 100% 2010 2009 2008 Operating income Domestic $ 2,071 $ 1,758 $ 1,999 International 164 112 162 Total operating income 2,235 1,870 2,161 Other income (expense) Investment income and other 54 35 129 Investment impairment (111 ) Interest expense (94 ) (94 ) (62 ) Earnings from operations before income tax expense and equity in income (loss) of affiliates $ 2,195 $ 1,700 $ 2,228 Assets Domestic $ 10,431 $ 9,059 $ 8,194 International 7,871 6,767 4,564 Total assets $ 18,302 $ 15,826 $ 12,758 Capital expenditures Domestic $ 385 $ 971 $ 673 International 230 332 124 Total capital expenditures $ 615 $ 1,303 $ 797 Depreciation Domestic $ 585 $ 550 $ 500 International 253 180 80 Total depreciation $ 838 $ 730 $ 580 Geographic Information The following tables present our geographic information in fiscal 2010, 2009 and 2008:

Contingencies and Commitments

Contingencies and Commitments
	12 Months Ended Feb. 27, 2010
Contingencies and Commitments
Contingencies and Commitments	13.Contingencies and Commitments Contingencies In December 2005, a purported class action lawsuit captioned, Jasmen Holloway, et al. v. Best BuyCo.,Inc., was filed in the U.S. District Court for the Northern District of California alleging we discriminate against women and minority individuals on the basis of gender, race, color and/or national origin with respect to our employment policies and practices. The action seeks an end to discriminatory policies and practices, an award of back and front pay, punitive damages and injunctive relief, including rightful place relief for all class members. At February27, 2010, no accrual had been established as it was not possible to estimate the possible loss or range of loss because this matter had not advanced to a stage where we could make any such estimate. A class certification hearing was held in June 2009, and we await the Court's decision. We believe the allegations are without merit and intend to defend this action vigorously. We are involved in various other legal proceedings arising in the normal course of conducting business. We believe the amounts provided in our consolidated financial statements, as prescribed by GAAP, are adequate in light of the probable and estimable liabilities. The resolution of those other proceedings is not expected to have a material impact on our results of operations or financial condition. Commitments We engage AccentureLLP ("Accenture") to assist us with improving our operational capabilities and reducing our costs in the information systems, procurement and human resources areas. Our future contractual obligations to Accenture are expected to range from $171 to $271 per year through 2016, the end of the periods under contract. We had outstanding letters of credit and bankers' acceptances for purchase obligations with an aggregate fair value of $469 at February27, 2010. At February27, 2010, we had commitments for the purchase and construction of facilities valued at approximately $54. Also, at February27, 2010, we had entered into lease commitments for land and buildings for 31 future locations. These lease commitments with real estate developers provide for minimum rentals ranging from 9 to 15years, which if consummated based on current cost estimates, will approximate $9 annually over the initial lease terms. These minimum rentals are reported in the future minimum lease payments included in Note9, Leases.

Related-Party Transactions

Related-Party Transactions
	12 Months Ended Feb. 27, 2010
Related-Party Transactions
Related-Party Transactions	14.Related-Party Transactions Best Buy Europe had the following related-party transactions and balances with CPW in fiscal 2010 and 2009: 2010 2009 Revenue earned (primarily commission revenue and fees for information technology services provided to CPW) $ 63 $ 12 SGA incurred for rent paid to CPW 6 29 Interest expense incurred on credit facility with CPW as lender 4 15 Accounts payable to CPW at the end of the fiscal year 4 108 Accounts receivable from CPW at the end of the fiscal year 31 60 Balance outstanding on credit facility from CPW at the end of the fiscal year (see Note6, Debt) 206 584

Condensed Consolidating Financi

Condensed Consolidating Financial Information
	12 Months Ended Feb. 27, 2010
Condensed Consolidating Financial Information
Condensed Consolidating Financial Information	15.Condensed Consolidating Financial Information The SEC's rules require that condensed consolidating financial information be provided for a subsidiary that has guaranteed the debt of a registrant issued in a public offering, where the guarantee is full and unconditional and where the voting interest of the subsidiary is 100% owned by the registrant. Our convertible debentures, which had an aggregate principal balance and carrying amount of $402 at February27, 2010, are jointly and severally guaranteed by our wholly-owned indirect subsidiary Best Buy Stores,L.P. ("Guarantor Subsidiary"). Investments in subsidiaries of Best Buy Stores,L.P., which have not guaranteed the convertible debentures ("Non-Guarantor Subsidiaries"), are required to be accounted for under the equity method, even though all such subsidiaries meet the requirements to be consolidated under GAAP. Set forth below are condensed consolidating financial statements presenting the financial position, results of operations, and cash flows of (i)Best BuyCo.,Inc., (ii)the Guarantor Subsidiary, (iii)the Non-Guarantor Subsidiaries, and (iv)the eliminations necessary to arrive at consolidated information for our company. We filea consolidated U.S. federal income tax return. Income taxes are allocated in accordance with our tax allocation agreement. U.S. affiliates receive no tax benefit for taxable losses, but are allocated taxes at the required effective income tax rate if they have taxable income. The following tables present condensed consolidating balance sheets as of February27, 2010, and February28, 2009, and condensed consolidating statements of earnings and cash flows for the fiscal years ended February27, 2010, February28, 2009, and March1, 2008, and should be read in conjunction with the consolidated financial statements herein. We have reclassified certain prior-year amounts as described in Note1, Summary of Significant Accounting Policies. Condensed Consolidating Balance Sheets At February27, 2010 Best Buy Co.,Inc. Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current Assets Cash and cash equivalents $ 1,170 $ 53 $ 603 $ $ 1,826 Short-term investments 88 2 90 Receivables 485 1,535 2,020 Merchandise inventories 3,662 1,873 (49 ) 5,486 Other current assets 221 149 775 (1 ) 1,144 Intercompany receivable 7,983 (7,983 ) Intercompany note receivable 833 (833 ) Total current assets 2,312 4,349 12,771 (8,866 ) 10,566 Net Property and Equipment 214 1,864 1,992 4,070 Goodwill 6 2,446 2,452 Tradenames 159 159 Customer Relationships 279 279 Equity and Other Investments 216 108 324 Other Assets 103 34 362 (47 ) 452 Investments in Subsidiaries 12,246 287 2,296 (14,829 )

Supplementary Financial Informa

Supplementary Financial Information (Unaudited)
	12 Months Ended Feb. 27, 2010
Supplementary Financial Information (Unaudited)
Supplementary Financial Information (Unaudited)	16.Supplementary Financial Information (Unaudited) The following tables show selected operating results for each quarter and full year of fiscal 2010 and 2009 (unaudited): Quarter Fiscal Year 1st 2nd 3rd 4th Fiscal 2010 Revenue $ 10,095 $ 11,022 $ 12,024 $ 16,553 $ 49,694 Comparable store sales % change(1) (6.2 )% (3.9 )% 1.7% 7.0% 0.6% Gross profit $ 2,557 $ 2,684 $ 2,942 $ 3,977 $ 12,160 Operating income(2) 296 280 376 1,283 2,235 Net earnings attributable to Best BuyCo.,Inc. 153 158 227 779 1,317 Diluted earnings per share(3) 0.36 0.37 0.53 1.82 3.10 Quarter Fiscal Year 1st 2nd 3rd 4th Fiscal 2009 Revenue $ 8,990 $ 9,801 $ 11,500 $ 14,724 $ 45,015 Comparable store sales % change(1) 3.7% 4.2% (5.3 )% (4.9 )% (1.3 )% Gross profit $ 2,133 $ 2,381 $ 2,861 $ 3,623 $ 10,998 Operating income(4) 277 339 274 980 1,870 Net earnings attributable to Best BuyCo.,Inc.(5) 179 202 52 570 1,003 Diluted earnings per share 0.43 0.48 0.13 1.35 2.39 Note: Certain fiscal year totals may not add due to rounding. (1) Comprised of revenue from stores operating for at least 14 full months as well as revenue related to call centers, Web sites and our other comparable sales channels. Revenue we earn from sales of merchandise to wholesalers or dealers is not included within our comparable store sales calculation. Relocated, remodeled and expanded stores are excluded from our comparable store sales calculation until at least 14 full months after reopening. Acquired stores are included in our comparable store sales calculation beginning with the first full quarter following the first anniversary of the date of the acquisition. The portion of our calculation of the comparable store sales percentage change attributable to our International segment excludes the effect of fluctuations in foreign currency exchange rates. The method of calculating comparable store sales varies across the retail industry. As a result, our method of calculating comparable store sales may not be the same as other retailers' methods. (2) Includes $52 of restructuring charges recorded in the fiscal first quarter related to measures we took to restructure our businesses. (3) The sum of our quarterly diluted earnings per share does not equal our annual diluted earnings per share due to the impact of the timing of stock option exercises on quarterly and annual weighted-average shares outstanding. (4) Includes $78 of restructuring charges recorded in the fiscal fourth quarter related to measures we took to restructure our businesses and $66 of goodwill and tradename impairment charges recorded in the fiscal fourth quarter related to our Speakeasy business. (5) Includes a $96 investment impairment charge recorded in the fiscal third quarter related to our investment in the com

Valuation and Qualifying Accoun

Valuation and Qualifying Accounts
	12 Months Ended Feb. 27, 2010
Valuation and Qualifying Accounts
Valuation and Qualifying Accounts	ScheduleII Valuation and Qualifying Accounts($ in millions) Balance at Beginning of Period Charged to Expenses or Other Accounts Other(1) Balance at End of Period Year ended February27, 2010 Allowance for doubtful accounts $ 97 $ 48 $ (44 ) $ 101 Year ended February28, 2009 Allowance for doubtful accounts $ 24 $ (5 ) $ 78 $ 97 Year ended March1, 2008 Allowance for doubtful accounts $ 17 $ 15 $ (8 ) $ 24 (1) Includes bad debt write-offs and recoveries, acquisitions and the effect of foreign currency fluctuations.

Document and Entity Information

Document and Entity Information (USD $)
In Billions, except Share data	12 Months Ended Feb. 27, 2010	Apr. 26, 2010	Aug. 29, 2009
Document and Entity Information
Entity Registrant Name	BEST BUY CO INC
Entity Central Index Key	0000764478
Document Type	10-K
Document Period End Date	2010-02-27
Amendment Flag	false
Current Fiscal Year End Date	--02-27
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$11
Entity Common Stock, Shares Outstanding		421,899,790
Document Fiscal Year Focus	2,010
Document Fiscal Period Focus	FY