Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Jan. 30, 2016 | Mar. 21, 2016 | Aug. 01, 2015 | |
Document and Entity Information [Abstract} | |||
Entity Registrant Name | BEST BUY CO INC | ||
Current Fiscal Year End Date | --01-30 | ||
Entity Voluntary Filers | No | ||
Document Fiscal Year Focus | 2,016 | ||
Amendment Flag | false | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Common Stock, Shares Outstanding | 323,347,681 | ||
Entity Public Float | $ 6.6 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Entity Central Index Key | 764,478 | ||
Document Period End Date | Jan. 30, 2016 | ||
Entity Filer Category | Large Accelerated Filer |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Jan. 30, 2016 | Jan. 31, 2015 | |
CURRENT ASSETS | |||
Cash and cash equivalents | $ 1,976,000,000 | $ 2,432,000,000 | |
Short-term investments | 1,305,000,000 | 1,456,000,000 | |
Receivables, net | 1,162,000,000 | 1,280,000,000 | |
Merchandise inventories | 5,051,000,000 | 5,174,000,000 | |
Other current assets | 392,000,000 | 449,000,000 | |
Current assets held for sale | 0 | 681,000,000 | |
Total current assets | 9,886,000,000 | 11,472,000,000 | |
Property and Equipment | |||
Land and buildings | 613,000,000 | 611,000,000 | |
Leasehold improvements | 2,220,000,000 | 2,201,000,000 | |
Fixtures and equipment | 5,002,000,000 | 4,729,000,000 | |
Property under capital and financing leases | 272,000,000 | 119,000,000 | |
Property and equipment, gross | 8,107,000,000 | 7,660,000,000 | |
Less accumulated depreciation | 5,761,000,000 | 5,365,000,000 | |
Net property and equipment | 2,346,000,000 | 2,295,000,000 | |
Goodwill | 425,000,000 | 425,000,000 | |
Intangibles, Net | 18,000,000 | 57,000,000 | |
Other Assets | 813,000,000 | 829,000,000 | |
Non-current assets held for sale | 31,000,000 | 167,000,000 | |
Total Assets | [1] | 13,519,000,000 | 15,245,000,000 |
CURRENT LIABILITIES | |||
Accounts payable | 4,450,000,000 | 5,030,000,000 | |
Unredeemed gift card liabilities | 409,000,000 | 411,000,000 | |
Deferred revenue | 357,000,000 | 326,000,000 | |
Accrued compensation and related expenses | 384,000,000 | 372,000,000 | |
Accrued liabilities | 802,000,000 | 782,000,000 | |
Accrued income taxes | 128,000,000 | 230,000,000 | |
Current portion of long-term debt | 395,000,000 | 41,000,000 | |
Current liabilities held for sale | 0 | 585,000,000 | |
Total current liabilities | 6,925,000,000 | 7,777,000,000 | |
Long-Term Liabilities | 877,000,000 | 881,000,000 | |
Long-Term Debt | $ 1,339,000,000 | $ 1,572,000,000 | |
Contingencies and Commitments (Note 12) | |||
Long-Term Liabilities held for sale | $ 0 | $ 15,000,000 | |
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 — 323,779,000 and 351,468,000 shares, respectively | 32,000,000 | 35,000,000 | |
Prepaid Share Repurchase | (55,000,000) | ||
Prepaid Share Repurchase [Line Items] | |||
Additional paid-in capital | 0 | 437,000,000 | |
Retained earnings | 4,130,000,000 | 4,141,000,000 | |
Accumulated other comprehensive income | 271,000,000 | 382,000,000 | |
Total Best Buy Co., Inc. shareholders' equity | 4,378,000,000 | 4,995,000,000 | |
Noncontrolling interests | 0 | 5,000,000 | |
Total equity | 4,378,000,000 | 5,000,000,000 | |
Total Liabilities and Equity | $ 13,519,000,000 | $ 15,245,000,000 | |
[1] | For fiscal 2015 and 2014, assets are recast to present our retrospective adoption of ASU 2015-17 Balance Sheet Classification of Deferred Taxes, ASU 2015-03 Simplifying the Presentation of Debt Issuance Costs, and ASU 2015-15 Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. Refer to Note 1, Summary of Significant Accounting Policies, of the Notes to Consolidated Financial Statements, included in Item 8, Financial Statements and Supplementary Data, of this Annual Report on Form 10-K for further information about our credit facilities. |
CONSOLIDATED BALANCE SHEETS (PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - $ / shares | Jan. 31, 2015 | Feb. 01, 2014 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, Authorized shares | 400,000 | 400,000 |
Preferred stock, Issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, Authorized shares | 1,000,000,000 | 1,000,000,000 |
Common stock, Issued shares | 323,779,000 | 351,468,000 |
Common stock, outstanding shares | 323,779,000 | 351,468,000 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |||
Revenue | $ 39,528 | $ 40,339 | $ 40,611 | ||
Cost of goods sold | 30,334 | 31,292 | 31,212 | ||
Restructuring charges — cost of goods sold | 3 | 0 | 0 | ||
Gross profit | 9,191 | 9,047 | 9,399 | ||
Selling, general and administrative expenses | 7,618 | 7,592 | 8,106 | ||
Restructuring charges | 198 | 5 | 149 | ||
Operating income | 1,375 | [1] | 1,450 | [2] | 1,144 |
Other income (expense) | |||||
Gain on sale of investments | 2 | 13 | 20 | ||
Investment income and other | 13 | 14 | 19 | ||
Interest expense | (80) | (90) | (100) | ||
Earnings from continuing operations before income tax expense | 1,310 | 1,387 | 1,083 | ||
Income tax expense | 503 | 141 | 388 | ||
Net earnings from continuing operations | 807 | 1,246 | 695 | ||
Gain (loss) from discontinued operations (Note 2), net of tax benefit (expense) of $(1), $0 and $31 | 90 | (11) | (172) | ||
Net earnings including noncontrolling interests | 897 | 1,235 | 523 | ||
Net (earnings) loss from discontinued operations attributable to noncontrolling interests | 0 | (2) | 9 | ||
Net earnings attributable to Best Buy Co., Inc. shareholders | $ 897 | $ 1,233 | $ 532 | ||
Basic earnings (loss) per share attributable to Best Buy Co., Inc. shareholders | |||||
Continuing operations | $ 2.33 | $ 3.57 | $ 2.03 | ||
Discontinued operations | 0.26 | (0.04) | (0.47) | ||
Basic earnings per share | 2.59 | 3.53 | 1.56 | ||
Diluted earnings (loss) per share attributable to Best Buy Co., Inc. shareholders | |||||
Continuing operations | 2.30 | 3.53 | 2 | ||
Discontinued operations | 0.26 | [3] | (0.04) | [3] | (0.47) |
Diluted earnings per share | $ 2.56 | $ 3.49 | $ 1.53 | ||
Weighted-average common shares outstanding (in millions) | |||||
Basic | 346.5 | 349.5 | 342.1 | ||
Diluted | 350.7 | 353.6 | 347.6 | ||
[1] | Includes $186 million, $(4) million, $7 million and $12 million of restructuring charges recorded in the fiscal first, second, third and fourth quarters, respectively, and $201 million for the 12 months ended January 30, 2016 related to measures we took to restructure our businesses. | ||||
[2] | Includes $2 million, $5 million, $5 million and $(7) million of restructuring charges recorded in the fiscal first, second, third and fourth quarters, respectively, and $5 million for the 12 months ended January 31, 2015 related to measures we took to restructure our businesses. | ||||
[3] | The sum of our quarterly diluted earnings per share does not equal our annual diluted earnings per share due to differences in quarterly and annual weighted-average shares outstanding. |
CONSOLIDATED STATEMENTS OF EAR5
CONSOLIDATED STATEMENTS OF EARNINGS (PARENTHETICAL) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Tax effect of discontinued operations | $ 1 | $ 0 | $ (31) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Millions | 12 Months Ended | |||||
Jan. 30, 2016USD ($) | Jan. 31, 2015USD ($) | Feb. 01, 2014USD ($) | ||||
OPERATING ACTIVITIES | ||||||
Net earnings including noncontrolling interests | $ 897 | $ 1,235 | $ 523 | |||
Adjustments to reconcile net earnings (loss) to total cash provided by operating activities | ||||||
Depreciation | 657 | 656 | 701 | |||
Amortization of definite-lived intangible assets | 0 | 0 | 15 | |||
Restructuring charges | 201 | 23 | 259 | |||
(Gain) Loss on sale of business | (99) | (1) | 143 | |||
Stock-based compensation | 104 | 87 | 90 | |||
Deferred income taxes | 49 | (297) | (28) | |||
Other, net | 38 | 8 | 62 | |||
Changes in operating assets and liabilities: | ||||||
Receivables | 123 | (19) | 7 | |||
Merchandise inventories | 86 | (141) | 597 | |||
Other assets | 36 | 29 | (70) | |||
Accounts payable | (536) | 434 | (986) | |||
Other liabilities | (140) | (164) | (273) | |||
Income taxes | (94) | 85 | 54 | |||
Total cash provided by operating activities | 1,322 | 1,935 | 1,094 | |||
INVESTING ACTIVITIES | ||||||
Additions to property and equipment, net of $92, $14 and $13 of non-cash capital expenditures | (649) | [1] | (561) | [1] | (547) | [1] |
Purchases of investments | (2,281) | (2,804) | (230) | |||
Sales of investments | 2,427 | 1,580 | 50 | |||
Proceeds from sale of business, net of cash transferred | 103 | 39 | 206 | |||
Change in restricted assets | (47) | 29 | 5 | |||
Other, net | 28 | 5 | (1) | |||
Total cash used in investing activities | (419) | (1,712) | (517) | |||
FINANCING ACTIVITIES | ||||||
Repurchase of common stock | (1,000) | 0 | 0 | |||
Payments for Repurchase of Other Equity | (55) | |||||
Issuance of common stock | 47 | 50 | 171 | |||
Dividends paid | (499) | (251) | (233) | |||
Repayments of debt | (28) | (24) | (2,033) | |||
Proceeds from issuance of debt | 0 | 0 | 2,414 | |||
Other, net | 20 | 2 | 0 | |||
Total cash provided by (used in) financing activities | (1,515) | (223) | 319 | |||
Effect of Exchange Rate Changes on Cash | (38) | (52) | (44) | |||
Increase (Decrease) in Cash and Cash Equivalents | (650) | (52) | 852 | |||
Cash and Cash Equivalents at Beginning of Year | 2,432 | 2,678 | 1,826 | |||
Cash and Cash Equivalents Held-for-sale, at Beginning of Period | 194 | 0 | ||||
Cash and Cash Equivalents at End of Year | 1,976 | 2,626 | 2,678 | |||
Cash and Cash Equivalents Held-for-sale, at End of Period | 0 | (194) | ||||
Cash and Cash Equivalents at End of Period, Excluding Held for Sale | 1,976 | 2,432 | 2,678 | |||
Supplemental Disclosure of Cash Flow Information | ||||||
Income taxes paid | 550 | 355 | 332 | |||
Interest paid | $ 77 | $ 81 | $ 82 | |||
[1] | For fiscal 2015 and 2014, the International segment amounts for assets, capital expenditures and depreciation include amounts from Five Star. |
CONSOLIDATED STATEMENTS OF CAS7
CONSOLIDATED STATEMENTS OF CASH FLOWS (PARENTHETICAL) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Statement of Cash Flows [Abstract] | |||
Non-cash capital expenditures | $ 92 | $ 14 | $ 13 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Millions | Total | Parent [Member] | Common Stock | Prepaid Share Repurchase | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest |
Beginning balances at Feb. 02, 2013 | $ 3,715 | $ 3,061 | $ 34 | $ 54 | $ 2,861 | $ 112 | $ 654 | |
Beginning balances (in shares) at Feb. 02, 2013 | 338,000,000 | |||||||
Increase (decrease) in shareholders' equity | ||||||||
Adjustment for fiscal year-end change (Note 2) | $ 0 | 0 | ||||||
Net earnings (loss) | 523 | 532 | 532 | 0 | (9) | |||
Other comprehensive income (loss), net of tax: | ||||||||
Foreign currency translation adjustments | (136) | (136) | 0 | 0 | 0 | |||
Foreign currency translation adjustments | (147) | (136) | (136) | (11) | ||||
Unrealized gain (loss) on available-for-sale investments | 6 | 7 | 0 | 0 | 0 | 7 | (1) | |
Reclassification of foreign currency translations adjustments into earnings due to sale of business | 654 | 508 | 508 | 146 | ||||
Reclassification of (gains) losses on available-for-sale investments into earnings | 2 | 1 | 1 | 1 | ||||
Sale of noncontrolling interest | (776) | (776) | ||||||
Dividend distribution | (1) | 0 | 0 | 0 | (1) | |||
Tax loss from stock options canceled or exercised, restricted stock vesting and employee stock purchase plan | (22) | (22) | 0 | (22) | 0 | 0 | ||
Issuance of common stock under employee stock purchase plan | 13 | 13 | $ 0 | 13 | 0 | 0 | 0 | |
Issuance of common stock under employee stock purchase plan (in shares) | 1,000,000 | |||||||
Stock-based compensation | 97 | 97 | $ 0 | 97 | 0 | 0 | 0 | |
Restricted stock vested and stock options exercised | 159 | 159 | $ 1 | 158 | 0 | 0 | 0 | |
Stock options exercised (in shares) | 8,000,000 | |||||||
Common stock dividends, $1.43 per share during the period ended January 30, 2016, $0.72 per share during the period ended January 31, 2015, $0.68 per share during the period ended February 1, 2014, respectively | (234) | (234) | $ 0 | 0 | (234) | 0 | 0 | |
Ending balances at Feb. 01, 2014 | 3,989 | 3,986 | $ 35 | 300 | 3,159 | 492 | 3 | |
Ending balances (in shares) at Feb. 01, 2014 | 347,000,000 | |||||||
Increase (decrease) in shareholders' equity | ||||||||
Net earnings (loss) | 1,235 | 1,233 | $ 0 | 0 | 1,233 | 0 | 2 | |
Other comprehensive income (loss), net of tax: | ||||||||
Foreign currency translation adjustments | (103) | (103) | ||||||
Foreign currency translation adjustments | (103) | (103) | 0 | 0 | 0 | (103) | 0 | |
Unrealized gain (loss) on available-for-sale investments | (3) | (3) | 0 | 0 | 0 | (3) | 0 | |
Reclassification of foreign currency translations adjustments into earnings due to sale of business | 0 | |||||||
Reclassification of (gains) losses on available-for-sale investments into earnings | (4) | (4) | 0 | 0 | 0 | (4) | 0 | |
Issuance of common stock under employee stock purchase plan | 8 | 8 | $ 0 | 8 | 0 | 0 | 0 | |
Issuance of common stock under employee stock purchase plan (in shares) | 0 | |||||||
Stock-based compensation | 87 | 87 | $ 0 | 87 | 0 | 0 | 0 | |
Restricted stock vested and stock options exercised | 42 | 42 | $ 0 | 42 | 0 | 0 | 0 | |
Stock options exercised (in shares) | 5,000,000 | |||||||
Common stock dividends, $1.43 per share during the period ended January 30, 2016, $0.72 per share during the period ended January 31, 2015, $0.68 per share during the period ended February 1, 2014, respectively | (251) | (251) | $ 0 | 0 | (251) | 0 | 0 | |
Ending balances at Jan. 31, 2015 | 5,000 | 4,995 | $ 35 | 437 | 4,141 | 382 | 5 | |
Ending balances (in shares) at Jan. 31, 2015 | 352,000,000 | |||||||
Increase (decrease) in shareholders' equity | ||||||||
Net earnings (loss) | 897 | 897 | $ 0 | 0 | 897 | 0 | 0 | |
Other comprehensive income (loss), net of tax: | ||||||||
Foreign currency translation adjustments | (44) | (44) | ||||||
Foreign currency translation adjustments | (44) | (44) | 0 | 0 | 0 | (44) | 0 | |
Unrealized gain (loss) on available-for-sale investments | 0 | |||||||
Reclassification of foreign currency translations adjustments into earnings due to sale of business | (67) | (67) | 0 | 0 | 0 | (67) | 0 | |
Prepaid repurchase of common stock | (55) | (55) | $ (55) | |||||
Sale of noncontrolling interest | (5) | (5) | ||||||
Tax loss from stock options canceled or exercised, restricted stock vesting and employee stock purchase plan | 0 | |||||||
Issuance of common stock under employee stock purchase plan | 7 | 7 | $ 0 | 7 | 0 | 0 | 0 | |
Issuance of common stock under employee stock purchase plan (in shares) | 0 | |||||||
Stock-based compensation | 104 | 104 | $ 0 | 104 | 0 | 0 | 0 | |
Restricted stock vested and stock options exercised | 40 | 40 | $ 0 | 40 | 0 | 0 | 0 | |
Tax benefits from stock options exercised, restricted stock vesting and employee stock purchase plan | $ 2 | 2 | 2 | |||||
Stock options exercised (in shares) | 1,432,000 | 5,000,000 | ||||||
Common stock dividends, $1.43 per share during the period ended January 30, 2016, $0.72 per share during the period ended January 31, 2015, $0.68 per share during the period ended February 1, 2014, respectively | $ (501) | (501) | $ 0 | 3 | (504) | 0 | 0 | |
Repurchase of common stock | (1,000) | (1,000) | $ (3) | (593) | (404) | |||
Repurchase of common stock (in shares) | (33,000,000) | |||||||
Ending balances at Jan. 30, 2016 | $ 4,378 | $ 4,378 | $ 32 | $ (55) | $ 0 | $ 4,130 | $ 271 | $ 0 |
Ending balances (in shares) at Jan. 30, 2016 | 324,000,000 |
CONSOLIDATED STATEMENTS OF CHA9
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (PARENTHETICAL) - $ / shares | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared per common share (in dollars per share) | $ 1.43 | $ 0.72 | $ 0.68 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Statement - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Net earnings including noncontrolling interests | $ 897 | $ 1,235 | $ 523 |
Foreign currency translation adjustments | (44) | (103) | (147) |
Unrealized gain (loss) on available-for-sale investments | 0 | (3) | 6 |
Reclassification of foreign currency translations adjustments into earnings due to sale of business | (67) | 0 | 654 |
Reclassification of (gains) losses on available-for-sale investments into earnings | 0 | (4) | 2 |
Comprehensive income including noncontrolling interests | 786 | 1,125 | 1,038 |
Comprehensive income attributable to noncontrolling interests | 0 | (2) | (126) |
Comprehensive income attributable to Best Buy Co., Inc. shareholders | $ 786 | $ 1,123 | $ 912 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 30, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Unless the context otherwise requires, the use of the terms "Best Buy," "we," "us" and "our" in these Notes to Consolidated Financial Statements refers to Best Buy Co., Inc. and, as applicable, its consolidated subsidiaries. Discontinued Operations On June 26, 2013, we sold our 50% ownership interest in Best Buy Europe Distributions Limited ("Best Buy Europe"). On February 1, 2014, we sold mindSHIFT Technologies, Inc. ("mindSHIFT"). On February 13, 2015, we sold Jiangsu Five Star Appliance Co., Limited ("Five Star"). The results of Best Buy Europe, mindSHIFT and Five Star are presented as discontinued operations for all periods. See Note 2, Discontinued Operations , for further information. Description of Business We are a leading provider of technology products, services and solutions. We offer these products and services to the customers who visit our stores, engage with Geek Squad agents or use our websites or mobile applications. We have operations in the U.S., Canada and Mexico. We have two reportable segments: Domestic and International. The Domestic segment is comprised of the operations in all states, districts and territories of the U.S., under various brand names including Best Buy, bestbuy.com, Best Buy Mobile, Best Buy Direct, Best Buy Express, Geek Squad, Magnolia Home Theater and Pacific Kitchen and Home. The International segment is comprised of all operations in Canada and Mexico under the brand names Best Buy, bestbuy.com.ca, bestbuy.com.mx, Best Buy Express, Best Buy Mobile and Geek Squad. Basis of Presentation The consolidated financial statements include the accounts of Best Buy Co., Inc. and its consolidated subsidiaries. All intercompany balances and transactions are eliminated upon consolidation. In order to align our fiscal reporting periods and comply with statutory filing requirements, we consolidate the financial results of our Mexico operations, as well as our discontinued Europe and China operations, on a one -month lag. Our policy is to accelerate recording the effect of events occurring in the lag period that significantly affect our consolidated financial statements. No significant intervening event occurred in these operations that would have materially affected our financial condition, results of operations, liquidity or other factors had it been recorded during fiscal 2016, 2015 or 2014. In preparing the accompanying consolidated financial statements, we evaluated the period from January 31, 2016, through the date the financial statements were issued for material subsequent events requiring recognition or disclosure. Other than as described in Note 5, Debt , and Note 7, Shareholders' Equity , no such events were identified for this period. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. ("GAAP") requires us to make estimates and assumptions. These estimates and assumptions affect the reported amounts in the consolidated financial statements, as well as the disclosure of contingent liabilities. Future results could be materially affected if actual results were to differ from these estimates and assumptions. Fiscal Year Our fiscal year ends on the Saturday nearest the end of January. Fiscal 2016, 2015, and 2014 each included 52 weeks. New Accounting Pronouncements In April 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-18, Reporting Discontinued Operations and Disclosures of Components of an Entity. The new guidance amends the definition of a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. We adopted the new guidance in the first quarter of fiscal 2016, and the adoption of the new guidance did not have a material impact on our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, as a new Topic. Accounting Standards Codification (ASC) Topic 606. The new guidance provides a comprehensive framework for the analysis of revenue transactions and will apply to all of our revenue streams. Based on the current effective dates, the new guidance would first apply in the first quarter of our fiscal 2019. While we are still in the process of evaluating the effect of adoption on our financial statements, we do not currently expect a material impact on our results of operations, cash flows or financial position. In February 2016, the FASB issued ASU 2016-02, Leases. The new guidance was issued to increase transparency and comparability among companies by requiring most leases be included on the balance sheet and by expanding disclosure requirements. Based on the current effective dates, the new guidance would first apply in the first quarter of our fiscal 2020. We are still in the process of evaluating the effect of adoption on our financial statements. Changes in Accounting Principles In the fourth quarter of fiscal 2016, we adopted the following ASUs: • The FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs in April 2015 and ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements in August 2015. The new guidance aligns the treatment of debt issuance costs, with the exception of debt issuance costs related to lines of credit, with the treatment of debt discounts, so that the debt issuance costs are presented on the balance sheet as a direct deduction from the carrying amount of that debt liability. In the fourth quarter of fiscal 2016, we retrospectively adopted ASU 2015-03 and ASU 2015-15. The adoption did not have a material impact on our results of operations, cash flows or financial position. • In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes. The new guidance is part of the simplification initiative and requires all deferred income tax liabilities and assets to be classified as non-current. In the fourth quarter of fiscal 2016, we retrospectively adopted ASU 2015-17. The adoption did not have a material impact on our results of operations, cash flows or financial position. The following table reconciles the balance sheet line items impacted by the adoption of these two standards for fiscal 2015: Balance Sheet 2015 Reported ASU 2015-03 & 2015-15 Adjustments ASU 2015-17 Adjustments 2015 Adjusted Other current assets $ 703 $ (2 ) $ (252 ) $ 449 Current assets held for sale 684 — (3 ) 681 Other assets 583 (6 ) 252 829 Total assets $ 15,256 $ (8 ) $ (3 ) $ 15,245 Long-term debt $ 1,580 $ (8 ) $ — $ 1,572 Long-term liabilities held for sale 18 — (3 ) 15 Total liabilities & equity $ 15,256 $ (8 ) $ (3 ) $ 15,245 Cash and Cash Equivalents Cash primarily consists of cash on hand and bank deposits. Cash equivalents consist of money market funds, treasury bills, commercial paper, corporate bonds and deposits with an original maturity of 3 months or less when purchased. The amounts of cash equivalents at January 30, 2016 , and January 31, 2015 , were $1,208 million and $1,660 million , respectively, and the weighted-average interest rates were 0.5% and 0.4% , respectively. Receivables Receivables consist principally of amounts due from mobile phone network operators for commissions earned; banks for customer credit card and debit card transactions; and vendors for various vendor funding programs. We establish allowances for uncollectible receivables based on historical collection trends and write-off history. Our allowances for uncollectible receivables were $49 million and $59 million at January 30, 2016 , and January 31, 2015 , respectively. Merchandise Inventories Merchandise inventories are recorded at the lower of cost, using the average cost, or market. In-bound freight-related costs from our vendors are included as part of the net cost of merchandise inventories. Also included in the cost of inventory are certain vendor allowances that are not a reimbursement of specific, incremental and identifiable costs to promote a vendor's products. Other costs associated with acquiring, storing and transporting merchandise inventories to our retail stores are expensed as incurred and included in cost of goods sold. Our inventory valuation reflects adjustments for anticipated physical inventory losses (e.g., theft) that have occurred since the last physical inventory. Physical inventory counts are taken on a regular basis to ensure that the inventory reported in our consolidated financial statements is properly stated. Our inventory valuation also reflects markdowns for the excess of the cost over the amount we expect to realize from the ultimate sale or other disposal of the inventory. Markdowns establish a new cost basis for our inventory. Subsequent changes in facts or circumstances do not result in the reversal of previously recorded markdowns or an increase in the newly established cost basis. Restricted Assets Restricted cash totaled $185 million at January 30, 2016 and is included in other current assets. Restricted cash totaled $292 million at January 31, 2015 , of which $184 million is related to continuing operations and included in other current assets and $108 million is included in current assets held for sale in our Consolidated Balance Sheet. Such balances are pledged as collateral or restricted to use for general liability insurance and workers' compensation insurance. Property and Equipment Property and equipment are recorded at cost. We compute depreciation using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are depreciated over the shorter of their estimated useful lives or the period from the date the assets are placed in service to the end of the lease term, which includes optional renewal periods if they are reasonably assured. Accelerated depreciation methods are generally used for income tax purposes. When property is retired or otherwise disposed of, the cost and accumulated depreciation are removed from our Consolidated Balance Sheets and any resulting gain or loss is reflected in our Consolidated Statements of Earnings. Repairs and maintenance costs are charged directly to expense as incurred. Major renewals or replacements that substantially extend the useful life of an asset are capitalized and depreciated. Costs associated with the acquisition or development of software for internal use are capitalized and amortized over the expected useful life of the software, generally from three to seven years. A subsequent addition, modification or upgrade to internal-use software is capitalized to the extent that it enhances the software's functionality or extends its useful life. Capitalized software is included in fixtures and equipment. Software maintenance and training costs are expensed in the period incurred. Property under capital and financing leases is comprised of buildings and equipment used in our operations. The related depreciation for capital and financing leases assets is included in depreciation expense. The carrying value of property under capital and financing leases was $165 million and $44 million at January 30, 2016 , and January 31, 2015 , respectively, net of accumulated depreciation of $107 million and $75 million , respectively. Estimated useful lives by major asset category are as follows: Asset Life (in years) Buildings 35 Leasehold improvements 3-25 Fixtures and equipment 3-20 Property under capital and financing leases 2-20 Impairment of Long-Lived Assets and Costs Associated With Exit Activities Long-lived assets are evaluated for impairment whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. Factors considered important that could result in an impairment review include, but are not limited to, significant under-performance relative to historical or planned operating results, significant changes in the manner of use or expected life of the assets, or significant changes in our business strategies. An impairment loss is recognized when the estimated undiscounted cash flows expected to result from the use of the asset plus net proceeds expected from the disposition of the asset (if any) are less than the carrying value of the asset net of other liabilities. When an impairment loss is recognized, the carrying amount of the asset is reduced to its estimated fair value using valuation techniques such as discounted cash flow analysis. When reviewing long-lived assets for impairment, we group long-lived assets with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. For example, long-lived assets deployed at store locations are reviewed for impairment at the individual store level, which involves comparing the carrying value of all land, buildings, leasehold improvements, fixtures and equipment located at each store to the net cash flow projections for each store. In addition, we conduct separate impairment reviews at other levels as appropriate, for example, to evaluate potential impairment of assets shared by several areas of operations, such as information technology systems. Refer to Note 3, Fair Value Measurements , for further information associated with the long-lived assets impairments, including valuation techniques used, impairment charges incurred, and remaining carrying values. The present value of costs associated with vacated properties, primarily future lease costs (net of expected sublease income), are charged to earnings when we cease using the property. We accelerate depreciation on property and equipment we expect to retire when a decision is made to abandon a property. At January 30, 2016 , and January 31, 2015 , the obligation associated with vacant properties included in accrued liabilities in our Consolidated Balance Sheets was $44 million and $26 million , respectively, and the obligation associated with vacant properties included in long-term liabilities in our Consolidated Balance Sheets was $54 million and $43 million , respectively. The obligation associated with vacant properties at January 30, 2016 , and January 31, 2015 , included amounts associated with our restructuring activities as further described in Note 4, Restructuring Charges . Leases We conduct the majority of our retail and distribution operations from leased locations. The leases generally require payment of real estate taxes, insurance and common area maintenance, in addition to rent. The terms of our new lease agreements for large-format stores are generally less than 10 years, although we have existing leases with terms up to 20 years. Small-format stores generally have lease terms that are half the length of large-format stores. Most of the leases contain renewal options and escalation clauses, and certain store leases require contingent rents based on factors such as specified percentages of revenue or the consumer price index. For leases that contain predetermined fixed escalations of the minimum rent, we recognize the related rent expense on a straight-line basis from the date we take possession of the property to the end of the initial lease term. We record any difference between the straight-line rent amounts and amounts payable under the leases as part of deferred rent, in accrued liabilities or long-term liabilities, as appropriate. Cash or lease incentives received upon entering into certain store leases ("tenant allowances") are recognized on a straight-line basis as a reduction to rent from the date we take possession of the property through the end of the initial lease term. We record the unamortized portion of tenant allowances as a part of deferred rent, in accrued liabilities or long-term liabilities, as appropriate. At January 30, 2016 , and January 31, 2015 , deferred rent included in accrued liabilities in our Consolidated Balance Sheets was $36 million and $31 million , respectively, and deferred rent included in long-term liabilities in our Consolidated Balance Sheets was $139 million and $195 million , respectively. In addition, we have financing leases for agreements when we are deemed the owner of the leased buildings, typically due to significant involvement during the construction period, and do not qualify for sales recognition under the sale-leaseback accounting guidance. We record the cost of the building in property and equipment, with the related liability recorded in long-term debt. At January 30, 2016 and January 31, 2015 , we had $178 million and $69 million , respectively, outstanding under financing lease obligations. The increase in financing lease obligations was primarily due to renewals on existing leases. Assets acquired under capital and financing leases are depreciated over the shorter of the useful life of the asset or the lease term, including renewal periods, if reasonably assured. Goodwill and Intangible Assets Goodwill Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. We test goodwill for impairment annually, as of the first day of the fiscal fourth quarter, or when indications of potential impairment exist. We monitor the existence of potential impairment indicators throughout the fiscal year. We test for goodwill impairment at the reporting unit level and our reporting units are the components of operating segments which constitute businesses for which discrete financial information is available and is regularly reviewed by segment management. No components were aggregated in arriving at our reporting units. Our only reporting unit with a goodwill balance at the beginning of fiscal 2016 was our Domestic segment. Our detailed impairment testing involves comparing the fair value of each reporting unit to its carrying value, including goodwill. Fair value reflects the price a market participant would be willing to pay in a potential sale of the reporting unit and is based on discounted cash flows or relative market-based approaches. If the fair value exceeds carrying value, then it is concluded that no goodwill impairment has occurred. If the carrying value of the reporting unit exceeds its fair value, a second step is required to measure possible goodwill impairment loss. The second step includes hypothetically valuing the tangible and intangible assets and liabilities of the reporting unit as if the reporting unit had been acquired in a business combination. Then, the implied fair value of the reporting unit's goodwill is compared to the carrying value of that goodwill. If the carrying value of the reporting unit's goodwill exceeds the implied fair value of the goodwill, we recognize an impairment loss in an amount equal to the excess, not to exceed the carrying value. No goodwill impairment was recorded in fiscal 2015. In fiscal 2016, we determined that the fair value of the Best Buy Domestic reporting unit exceeded its carrying value, and as a result, no goodwill impairment was recorded in fiscal 2016. Tradenames We include our tradenames and customer relationships within intangibles, net in our Consolidated Balance Sheets. We have an indefinite-lived tradename related to Pacific Sales included within our Domestic segment. As of the end of fiscal 2016, we have no indefinite-lived tradenames within our International segment. Our valuation of identifiable intangible assets acquired is based on information and assumptions available to us at the time of acquisition, using income and market approaches to determine fair value. We do not amortize our indefinite-lived tradenames, but test for impairment annually, or when indications of potential impairment exist. We utilize the relief from royalty method to determine the fair value of each of our indefinite-lived tradenames. If the carrying value exceeds the fair value, we recognize an impairment loss in an amount equal to the excess. As a part of the Canada brand restructuring, we fully impaired the indefinite-lived Future Shop tradename during fiscal 2016. Refer to Note 4, Restructuring Charges , for additional information. No other impairments were identified during fiscal 2016. The changes in the carrying amount of goodwill and indefinite-lived tradenames by segment were as follows in fiscal 2016 , 2015 and 2014 ($ in millions): Goodwill Indefinite-Lived Tradenames Domestic International Total Domestic International Total Balances at February 2, 2013 $ 528 $ — $ 528 $ 19 $ 112 $ 131 Sale of business (1) (103 ) — (103 ) — (22 ) (22 ) Impairments — — — — (4 ) (4 ) Changes in foreign currency exchange rates — — — — (4 ) (4 ) Balances at February 1, 2014 425 — 425 19 82 101 Sale of business (2) — — — (37 ) (37 ) Impairments — — — (1 ) — (1 ) Changes in foreign currency exchange rates — — — — (6 ) (6 ) Balances at January 31, 2015 425 — 425 18 39 57 Canada brand restructuring (3) — — — — (40 ) (40 ) Changes in foreign currency exchange rates — — — — 1 1 Balances at January 30, 2016 $ 425 $ — $ 425 $ 18 $ — $ 18 (1) Represents goodwill written off as a result of the sale of mindSHIFT in fiscal 2014 and indefinite-lived tradenames written off as a result of the sale of Best Buy Europe in fiscal 2014. (2) Primarily represents the Five Star indefinite-lived tradenames classified as held for sale at January 31, 2015. (3) Represents the Future Shop tradename impaired as a result of the Canada brand restructuring in the first quarter of fiscal 2016. See Note 4, Restructuring Charges , for further discussion. The following table provides the gross carrying amount of goodwill and cumulative goodwill impairment losses ($ in millions): January 30, 2016 January 31, 2015 Gross Carrying Amount Cumulative Impairment Gross Carrying Amount (1) Cumulative Impairment (1) Goodwill $ 1,100 $ (675 ) $ 1,100 $ (675 ) (1) Excludes the gross carrying amount and cumulative impairment related to Five Star, which was held for sale at the end of fiscal 2015. The sale of Five Star was completed on February 13, 2015. Insurance We are self-insured for certain losses related to health, workers' compensation and general liability claims; however, we obtain third-party insurance coverage to limit our exposure to these claims. A portion of these self-insured losses are managed through a wholly-owned insurance captive. We estimate our self-insured liabilities using a number of factors, including historical claims experience, an estimate of incurred but not reported claims, demographic and severity factors, and valuations provided by independent third-party actuaries. Our self-insured liabilities included in the Consolidated Balance Sheets were as follows ($ in millions): January 30, 2016 January 31, 2015 Accrued liabilities $ 62 $ 60 Long-term liabilities 54 53 Total $ 116 $ 113 Income Taxes We account for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss and tax credit carry-forwards. We record a valuation allowance to reduce the carrying amounts of deferred tax assets if it is more likely than not that such assets will not be realized. In determining our provision for income taxes, we use an annual effective income tax rate based on annual income, permanent differences between book and tax income, and statutory income tax rates. The effective income tax rate also reflects our assessment of the ultimate outcome of tax audits. We adjust our annual effective income tax rate as additional information on outcomes or events becomes available. Discrete events, such as audit settlements or changes in tax laws, are recognized in the period in which they occur. Our income tax returns are periodically audited by U.S. federal, state and local and foreign tax authorities. At any one time, multiple tax years are subject to audit by the various tax authorities. In evaluating the tax benefits associated with our various tax filing positions, we record a tax benefit for uncertain tax positions using the highest cumulative tax benefit that is more likely than not to be realized. A number of years may elapse before a particular matter, for which we have established a liability, is audited and effectively settled. We adjust our liability for unrecognized tax benefits in the period in which we determine the issue is effectively settled with the tax authorities, the statute of limitations expires for the relevant taxing authority to examine the tax position or when more information becomes available. We include our liability for unrecognized tax benefits, including accrued penalties and interest, in accrued income taxes and long-term liabilities on our Consolidated Balance Sheets and in income tax expense in our Consolidated Statements of Earnings. Accrued Liabilities The major components of accrued liabilities at January 30, 2016 , and January 31, 2015 , were state and local tax liabilities, rent-related liabilities including accrued real estate taxes, loyalty program liabilities and self-insurance reserves. Long-Term Liabilities The major components of long-term liabilities at January 30, 2016 , and January 31, 2015 , were unrecognized tax benefits, rent-related liabilities, deferred compensation plan liabilities, self-insurance reserves and deferred revenue. Foreign Currency Foreign currency denominated assets and liabilities are translated into U.S. dollars using the exchange rates in effect at our consolidated balance sheet date. For operations reported on a one -month lag, we use the exchange rates in effect one month prior to our consolidated balance sheet date. Results of operations and cash flows are translated using the average exchange rates throughout the period. The effect of exchange rate fluctuations on the translation of assets and liabilities is included as a component of shareholders' equity in accumulated other comprehensive income. Gains and losses from foreign currency transactions, which are included in SG&A, have not been significant in any of the periods presented. Revenue Recognition We recognize revenue when the sales price is fixed or determinable, collection is reasonably assured and the customer takes possession of the merchandise, or in the case of services, the service has been provided. Revenue excludes sales taxes collected. Revenue from merchandise sales and services is reported net of sales returns, which includes an estimate of future returns based on historical return rates, with a corresponding reduction to cost of sales. Our sales returns reserve, which represents the estimated gross margin impact of returns, was $25 million and $25 million at January 30, 2016 , and January 31, 2015 , respectively. For revenue transactions that involve multiple deliverables, we defer the revenue associated with any undelivered elements. The amount of revenue deferred in connection with the undelivered elements is determined using the relative fair value of each element, which is generally based on each element's relative retail price. Our deferred revenues primarily relate to merchandise not yet delivered to customers, services not yet completed and technical support contracts not yet completed. At January 30, 2016 , short-term deferred revenue was $357 million . At January 31, 2015 , short-term deferred revenue was $376 million , of which $50 million is included in current liabilities held for sale in relation to the sale of Five Star. At January 30, 2016 , and January 31, 2015 , deferred revenue included within long-term liabilities in our Consolidated Balance Sheets was $45 million and $49 million , respectively. Merchandise revenue Revenue is recognized for store sales when the customer receives and pays for merchandise. In the case of items paid for in store but subsequently delivered to the customer, revenue is recognized once delivery has been completed. For transactions initiated online, customers choose whether to collect merchandise from one of our stores (“in-store pick up”) or have it delivered to them (typically using third party parcel delivery companies). For in-store pick up, we recognize revenue once the customer has taken possession of merchandise. For items delivered directly to the customer, we recognize revenue when delivery has been completed. Any fees charged to customers for delivery are also recognized when delivery has been completed. Services Revenue related to consultation, design, installation, set-up, repair and educational classes are recognized once the service is complete. We sell various protection plans with extended warranty coverage for merchandise and technical support to assist customers in using their devices. Such plans have terms typically ranging from one month to five years. For extended warranty protection, third party insurers assume all risk associated with the coverage and are deemed to be the legal obligor. We record the net commissions we receive (the amount charged to the customer less the amount remitted to the insurer) as revenue when the corresponding merchandise revenue is recognized. For technical support contracts, we assume responsibility for fulfilling the support to customers and we recognize the associated revenue either on a straight-line basis over the life of the contracts, or, if sufficient history is available, on a consumption basis. Credit card revenue We offer promotional financing and credit cards issued by third-party banks that manage and directly extend credit to our customers. The banks are the sole owners of the accounts receivable generated under the program and accordingly, we do not hold any consumer receivables related to these programs. We are eligible to receive a profit share from our banking partners based on the performance of the programs. We record such profit share as revenue once the portfolio period to which it relates is complete and we have sufficient evidence to estimate the amount. Gift cards We sell gift cards to our customers in our retail stores, online and through select third parties. We do not charge administrative fees on unused gift cards and our gift cards do not have an expiration date. We recognize revenue from gift cards when: (i) the gift card is redeemed by the customer, or (ii) the likelihood of the gift card being redeemed by the customer is remote ("gift card breakage"), and we determine that we do not have a legal obligation to remit the value of unredeemed gift cards to the relevant jurisdictions. We determine our gift card breakage rate based upon historical redemption patterns. Based on our historical information, the likelihood of a gift card remaining unredeemed can be determined 24 months after the gift card is issued. Gift card breakage income is included in revenue in our Consolidated Statements of Earnings. Gift card breakage income was $65 million , $19 million and $53 million in fiscal 2016 , 2015 and 2014 , respectively. Sales Incentives We frequently offer sales incentives that entitle our customers to receive a gift card at time of purchase or a reduction in the price of a product or service either at the point of sale or by submitting a claim for a refund (for example coupons, rebates, etc.). For sales incentives issued to the customer in conjunction with a sale of merchandise or services, the reduction in revenue is recognized at the time of sale, based on the expected retail value of the incentive expected to be redeemed. Customer Loyalty Programs We have customer loyalty programs which allow members to earn points for each qualifying purchase. Points earned enable members to receive a certificate that may be redeemed on future purchases at our Best Buy branded stores. Depending on the customer's membership level within our loyalty program, certificates expirations typically range from 2 to 12 months from the date of issuance. The retail value of points earned by our loyalty program members is included in accrued liabilities and recorded as a reduction of revenue at the time the points are earned, based on the percentage of points that are projected to be redeemed. We recognize revenue when: (i) a certificate is redeemed by the customer; (ii) a certificate expires, or (iii) the likelihood of a certificate being redeemed by a customer is remote ("certificate breakage"). We determine our certificate breakage rate b |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Jan. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations Discontinued operations comprise the following: Domestic Segment During the fourth quarter of fiscal 2014, we completed the sale of mindSHIFT to Ricoh Americas Corporation, at which time we recorded an $18 million pre-tax loss. International Segment Five Star - During the fourth quarter of fiscal 2015, we entered into a definitive agreement to sell our Five Star business to Yingtan City Xiangyuan Investment Limited Partnership and Zhejiang Jiayuan Real Estate Group Co. On February 13, 2015, we completed the sale of Five Star and recognized a gain on sale of $99 million. Following the sale of Five Star, we continue to hold one retail property in Shanghai, China, which remains held for sale at January 30, 2016, as we continue to actively market the property. The assets of this property are classified as held for sale in the Consolidated Balance Sheets and were $31 million as of January 30, 2016. The presentation of discontinued operations has been retrospectively applied to all prior periods presented. The composition of assets and liabilities disposed of as a result of the sale of Five Star was as follows ($ in millions): February 13, 2015 Cash and cash equivalents $ 125 Receivables 113 Merchandise inventories 252 All other assets 461 Total assets $ 951 Accounts payable $ 478 All other liabilities 128 Total liabilities $ 606 Best Buy Europe – During the second quarter of fiscal 2014, we completed the sale of our 50% ownership interest in Best Buy Europe to CPW in return for the following consideration upon closing: net cash of £341 million ( $526 million ); £80 million ( $123 million ) of ordinary shares of CPW; £25 million ( $39 million ), plus 2.5% interest, to be paid by CPW on June 26, 2014; and £25 million ( $39 million ), plus 2.5% interest, to be paid by CPW on June 26, 2015. We subsequently sold the ordinary shares of CPW for $123 million on July 3, 2013. We received the first such deferred cash payment on June 26, 2014 and the second deferred cash payment on June 26, 2015. In conjunction with our agreement to sell our 50% ownership interest in Best Buy Europe, we entered into a deal-contingent foreign currency forward contract to hedge £455 million of the total £471 million of net proceeds. The contract was settled in cash following the completion of the sale on June 26, 2013, and we recognized a $2 million loss in gain (loss) from discontinued operations on our Consolidated Statements of Earnings in fiscal 2014. The aggregate financial results of all discontinued operations for fiscal 2016 , 2015 and 2014 were as follows ($ in millions): 2016 2015 2014 Revenue $ 217 $ 1,564 $ 4,615 Restructuring charges (1) 1 18 110 Loss from discontinued operations before income tax benefit (expense) (2) (8 ) (12 ) (235 ) Income tax benefit (expense) (3) (1 ) — 31 Gain on sale of discontinued operations (4) 99 1 32 Net earnings (loss) from discontinued operations including noncontrolling interests 90 (11 ) (172 ) Net (earnings) loss from discontinued operations attributable to noncontrolling interests — (2 ) 9 Net earnings (loss) from discontinued operations attributable to Best Buy Co., Inc. shareholders $ 90 $ (13 ) $ (163 ) (1) See Note 4, Restructuring Charges , for further discussion of the restructuring charges associated with discontinued operations. (2) Includes a $175 million impairment to write down the book value of our investment in Best Buy Europe to fair value in fiscal 2014. (3) Income tax benefit for fiscal 2014 includes a $27 million benefit related to a tax allocation between continuing and discontinued operations and a $15 million benefit related to the impairment of our investment in Best Buy Europe. The fiscal 2014 effective tax rate for discontinued operations differs from the statutory tax rate primarily due to the previously mentioned tax allocation, sale of mindSHIFT, restructuring charges and the impairment of our investment in Best Buy Europe. The sale of mindSHIFT, restructuring charges and impairment generally included no related tax benefit. The deferred tax assets related to the sale of mindSHIFT and restructuring charges generally resulted in an increase in the valuation allowance in an equal amount, of which the investment impairment is not tax deductible. (4) Gain in fiscal 2014 is primarily comprised of the following: $28 million gain (with no tax impact) from sale of Best Buy Europe fixed-line business in Switzerland in the first quarter; $24 million gain (with no tax impact) from the sale of Best Buy Europe in the second quarter; and loss of $18 million from sale of mindSHIFT in the fourth quarter. Gain in fiscal 2016 of $99 million is from sale of Five Star in the first quarter. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. To measure fair value, we use a three-tier valuation hierarchy based upon observable and non-observable inputs: Level 1 — Unadjusted quoted prices that are available in active markets for identical assets or liabilities at the measurement date. Level 2 — Significant other observable inputs available at the measurement date, other than quoted prices included in Level 1, either directly or indirectly, including: • Quoted prices for similar assets or liabilities in active markets; • Quoted prices for identical or similar assets in non-active markets; • Inputs other than quoted prices that are observable for the asset or liability; and • Inputs that are derived principally from or corroborated by other observable market data. Level 3 — Significant unobservable inputs that cannot be corroborated by observable market data and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management's estimates of market participant assumptions. Assets and Liabilities 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 table sets forth by level within the fair value hierarchy, our financial assets and liabilities that were accounted for at fair value on a recurring basis at January 30, 2016 , and January 31, 2015 , according to the valuation techniques we used to determine their fair values ($ in millions): Fair Value at Fair Value Hierarchy January 30, 2016 January 31, 2015 Assets Cash and cash equivalents Money market funds Level 1 $ 51 $ 265 Corporate bonds Level 2 — 13 Commercial paper Level 2 265 165 Time deposits Level 2 306 100 Short-term investments Corporate bonds Level 2 193 276 Commercial paper Level 2 122 306 Time deposits Level 2 990 874 Other current assets Foreign currency derivative instruments Level 2 18 30 Time deposits Level 2 79 83 Other assets Interest rate swap derivative instruments Level 2 25 1 Auction rate securities Level 3 2 2 Marketable securities that fund deferred compensation Level 1 96 97 Assets held for sale Cash and cash equivalents Money market funds Level 1 — 16 Time deposits Level 2 — 124 Liabilities Accrued Liabilities Foreign currency derivative instruments Level 2 1 — There were no transfers between levels during fiscal 2016 and 2015. In addition, there were no changes in the beginning and ending balances of items measured at fair value on a recurring basis in the table above that used significant unobservable inputs (Level 3) for fiscal 2016 and 2015. The following methods and assumptions were used to estimate the fair value of each class of financial instrument: Money Market Funds. Our money market fund investments were measured at fair value as they trade in an active market using quoted market prices and, therefore, are classified as Level 1. Corporate Bonds. Our corporate bond investments were measured at fair value using quoted market prices. They were classified as Level 2 as they trade in a non-active market for which bond prices are readily available. Commercial Paper. Our investments in commercial paper were measured using inputs based upon quoted prices for similar instruments in active markets and, therefore, were classified as Level 2. Time Deposits. Our time deposits are balances held with banking institutions that cannot be withdrawn for specified terms without a penalty. Time deposits are held at face value plus accrued interest, which approximates fair value, and are classified as Level 2. Foreign Currency Derivative Instruments. Comprised primarily of foreign currency forward contracts and foreign currency swap contracts, our foreign currency derivative instruments were measured at fair value using readily observable market inputs, such as quotations on forward foreign exchange points and foreign interest rates. Our foreign currency derivative instruments were classified as Level 2 as these instruments are custom, over-the-counter contracts with various bank counterparties that are not traded in an active market. Interest Rate Swap Derivative Instruments. Our interest rate swap contracts were measured at fair value using readily observable inputs, such as the LIBOR interest rate. Our interest rate swap derivative instruments were classified as Level 2 as these instruments are custom, over-the-counter contracts with various bank counterparties that are not traded in an active market. Auction Rate Securities. Our investments in auction rate securities ("ARS") were classified as Level 3 as quoted prices were unavailable. Due to limited market information, we utilized a DCF model to derive an estimate of fair value. The assumptions we used in preparing the DCF model include estimates with respect to the amount and timing of future interest and principal payments, forward projections of the interest rate benchmarks, the probability of full repayment of the principal considering the credit quality and guarantees in place, and the rate of return required by investors to own such securities given the current liquidity risk associated with ARS. Marketable Securities that Fund Deferred Compensation. The assets that fund our deferred compensation consist of investments in mutual funds. These investments were classified as Level 1 as the shares of these mutual funds trade with sufficient frequency and volume to enable us to obtain pricing information on an ongoing basis. Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis Assets and liabilities that are measured at fair value on a nonrecurring basis relate primarily to our tangible fixed assets, goodwill and other intangible assets, which are remeasured when the derived fair value is below carrying value on our Consolidated Balance Sheets. For these assets, we do not periodically adjust carrying value to fair value except in the event of impairment. When we determine that impairment has occurred, the carrying value of the asset is reduced to fair value and the difference is recorded within operating income in our Consolidated Statements of Earnings. The following table summarizes the fair value remeasurements for non-restructuring property and equipment impairments and restructuring activities recorded in fiscal 2016 and 2015 ($ in millions): 2016 2015 Impairments Remaining Net Carrying Value (1) Impairments Remaining Net Carrying Value (1) Continuing operations Property and equipment (non-restructuring) $ 61 $ 15 $ 42 $ 19 Restructuring activities (2) Property and equipment 30 — 1 — Tradename 40 — — — Total $ 131 $ 15 $ 43 $ 19 Discontinued operations (3) Property and equipment $ — $ — $ 1 $ — Total $ — $ — $ 1 $ — (1) Remaining net carrying value approximates fair value. (2) See Note 4, Restructuring Charges , for additional information. (3) Property and equipment and tradename impairments associated with discontinued operations are recorded within loss from discontinued operations in our Consolidated Statements of Earnings. All of the fair value remeasurements included in the table above were based on significant unobservable inputs (Level 3). Fixed asset fair values were derived using a DCF model to estimate the present value of net cash flows that the asset or asset group is expected to generate. The key inputs to the DCF model generally included our forecasts of net cash generated from revenue, expenses and other significant cash outflows, such as capital expenditures, as well as an appropriate discount rate. In the case of assets for which the impairment was the result of restructuring activities, no future cash flows have been assumed as the assets will cease to be used and expected sale values are nominal. Fair Value of Financial Instruments Our financial instruments, other than those presented in the disclosures above, include cash, receivables, short-term investments, other investments, accounts payable, other payables and long-term debt. The fair values of cash, receivables, short-term investments, accounts payable and other payables approximated carrying values because of the short-term nature of these instruments. If these instruments were measured at fair value in the financial statements, they would be classified as Level 1 in the fair value hierarchy. Short-term investments other than those disclosed in the tables above represent time deposits. Fair values for other investments held at cost are not readily available, but we estimate that the carrying values for these investments approximate fair value. See Note 5, Debt , for information about the fair value of our long-term debt. |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Jan. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges Summary Restructuring charges incurred in fiscal 2016 , 2015 , and 2014 were as follows ($ in millions): 2016 2015 2014 Continuing operations Canadian brand consolidation $ 200 $ — $ — Renew Blue (2 ) 11 155 Other restructuring activities (1) 3 (6 ) (6 ) Total continuing operations 201 5 149 Discontinued operations Renew Blue — 18 10 Other restructuring activities (2) — — 100 Total $ 201 $ 23 $ 259 (1) Represents activity related to our remaining vacant space liability for U.S. large-format store closures in fiscal 2013. We may continue to incur immaterial adjustments to the liability for changes in sublease assumptions or potential lease buyouts. In addition, lease payments for vacated stores will continue until leases expire or are terminated. The remaining vacant space liability was $18 million at January 30, 2016. (2) Activity primarily relates to our fiscal 2013 Best Buy Europe restructuring program, which is included in discontinued operations due to the sale of our 50% ownership interest in Best Buy Europe in fiscal 2014. Restructuring charges primarily consist of property and equipment impairments and employee termination benefits. Canadian Brand Consolidation In the first quarter of fiscal 2016, we consolidated the Future Shop and Best Buy stores and websites in Canada under the Best Buy brand. This resulted in the permanent closure of 66 Future Shop stores and the conversion of the remaining 65 Future Shop stores to the Best Buy brand. In fiscal 2016, we incurred $200 million of restructuring charges related to implementing these changes, which primarily consisted of lease exit costs, a tradename impairment, property and equipment impairments, employee termination benefits and inventory write-downs. The inventory write-downs related to our Canadian brand consolidation are presented in restructuring charges – cost of goods sold in our Consolidated Statements of Earnings, and the remainder of the restructuring charges are presented in restructuring charges in our Consolidated Statements of Earnings. The composition of total restructuring charges we incurred for the Canadian brand consolidation in fiscal 2016 was as follows ($ in millions): International Continuing operations Inventory write-downs $ 3 Property and equipment impairments 30 Tradename impairment 40 Termination benefits 25 Facility closure and other costs 102 Total continuing operations $ 200 The following tables summarize our restructuring accrual activity during the fiscal 2016 , related to termination benefits and facility closure and other costs associated with Canadian brand consolidation ($ in millions): Termination Benefits Facility Closure and Other Costs Total Balances at January 31, 2015 $ — $ — $ — Charges 28 113 141 Cash payments (24 ) (47 ) (71 ) Adjustments (1) (2 ) 5 3 Changes in foreign currency exchange rates — (7 ) (7 ) Balances at January 30, 2016 $ 2 $ 64 $ 66 (1) The adjustments related to termination benefits relate to higher-than-expected employee retention. Adjustments to facility closure and other costs represent changes in sublease assumptions. Renew Blue In the fourth quarter of fiscal 2013, we launched the Renew Blue strategy, which included initiatives intended to improve operating performance and reduce costs. These initiatives included focusing on core business activities, reducing headcount, updating our store operating model and optimizing our real estate portfolio. These cost reduction initiatives represented one of the key Renew Blue priorities. We incurred $2 million of favorable adjustments related to Renew Blue initiatives in fiscal 2016. Of the total adjustments, $1 million related to our Domestic segment, which consisted primarily of changes in retention assumptions used to estimate employee termination benefits. The remaining $1 million adjustment related to our International segment and consisted of facility closure and other costs. We expect to continue to implement cost reduction initiatives throughout fiscal 2017 as we further analyze our operations and strategies. We incurred $29 million of charges related to Renew Blue initiatives during fiscal 2015. Of the total charges, $10 million related to our Domestic segment, which consisted primarily of employee termination benefits. The remaining $19 million of charges related to our International segment and consisted of employee termination benefits, property and equipment impairments and facility closure and other costs. For continuing operations, the inventory write-downs related to our Renew Blue restructuring activities are presented in restructuring charges – cost of goods sold in our Consolidated Statements of Earnings and the remainder of the restructuring charges are presented in restructuring charges. The restructuring charges from discontinued operations related to this plan are presented in discontinued operations. The composition of the restructuring charges we incurred for this program in fiscal 2016 , 2015 and 2014 , as well as the cumulative amount incurred through the end of fiscal 2016 , was as follows ($ in millions): Domestic International Total 2016 2015 2014 Cumulative Amount 2016 2015 2014 Cumulative Amount 2016 2015 2014 Cumulative Amount Continuing operations Inventory write-downs $ — $ — $ — $ 1 $ — $ — $ — $ — $ — $ — $ — $ 1 Property and equipment impairments — — 7 14 — 1 1 25 — 1 8 39 Termination benefits (2 ) 9 106 159 — 5 24 38 (2 ) 14 130 197 Investment impairments — — 16 43 — — — — — — 16 43 Facility closure and other costs 1 1 — 5 (1 ) (5 ) 1 50 — (4 ) 1 55 Total continuing operations (1 ) 10 129 222 (1 ) 1 26 113 (2 ) 11 155 335 Discontinued Operations Property and equipment impairments — — — — — — 1 1 — — 1 1 Termination benefits — — — — — 12 4 16 — 12 4 16 Facility closure and other costs — — — — — 6 5 11 — 6 5 11 Total discontinued operations — — — — — 18 10 28 — 18 10 28 Total $ (1 ) $ 10 $ 129 $ 222 $ (1 ) $ 19 $ 36 $ 141 $ (2 ) $ 29 $ 165 $ 363 The following table summarizes our restructuring accrual activity during fiscal 2016 and 2015 related to termination benefits and facility closure and other costs associated with this program ($ in millions): Termination Benefits Facility Closure and Other Costs Total Balance at February 1, 2014 $ 111 $ 51 $ 162 Charges 47 16 63 Cash payments (121 ) (22 ) (143 ) Adjustments (1) (21 ) (14 ) (35 ) Changes in foreign currency exchange rates — (8 ) (8 ) Balance at January 31, 2015 16 23 39 Charges — — — Cash payments (7 ) (9 ) (16 ) Adjustments (1) (7 ) (5 ) (12 ) Changes in foreign currency exchange rates — 1 1 Balance at January 30, 2016 $ 2 $ 10 $ 12 (1) Adjustments to termination benefits were due to higher-than-expected employee retention. Adjustments to facility closure and other costs represent changes in sublease assumptions and reductions in our remaining lease obligations. |
Debt
Debt | 12 Months Ended |
Jan. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt Short-Term Debt U.S. Revolving Credit Facilities On June 30, 2014, we entered into a $1.25 billion five-year senior unsecured revolving credit facility agreement (the "Five-Year Facility Agreement") with a syndicate of banks. The Five-Year Facility Agreement replaced the previous $1.5 billion senior unsecured revolving credit facility with a syndicate of banks, which was originally scheduled to expire in October 2016, but was terminated on June 30, 2014. The interest rate under the Five-Year Facility Agreement is variable and is determined at our option as: (i) the sum of (a) the greatest of (1) JPMorgan's prime rate, (2) the federal funds rate plus 0.5% , and (3) the one-month London Interbank Offered Rate (“LIBOR”) plus 1.0% , and (b) a variable margin rate (the “ABR Margin”); or (ii) the LIBOR plus a variable margin rate (the “LIBOR Margin”). In addition, a facility fee is assessed on the commitment amount. The ABR Margin, LIBOR Margin and the facility fee are based upon the registrant's current senior unsecured debt rating. Under the Five-Year Facility Agreement, the ABR Margin ranges from 0.0% to 0.925% , the LIBOR Margin ranges from 1.000% to 1.925% , and the facility fee ranges from 0.125% to 0.325% . At January 30, 2016 , and January 31, 2015 , there were no borrowings outstanding and at January 30, 2016 , $1.25 billion was available under the Five-Year Facility Agreement. The Five-Year Facility Agreement is guaranteed by specified subsidiaries of Best Buy Co., Inc. and contains customary affirmative and negative covenants. Among other things, these covenants restrict Best Buy Co., Inc. and certain of its subsidiaries' ability to incur certain types or amounts of indebtedness, incur liens on certain assets, make material changes in corporate structure or the nature of its business, dispose of material assets, engage in a change in control transaction, make certain foreign investments, enter into certain restrictive agreements, or engage in certain transactions with affiliates. The Five-Year Facility Agreement also contains financial covenants that require us to maintain a maximum cash flow leverage ratio and a minimum interest coverage ratio (both ratios measured quarterly for the previous 12 months). The Five-Year Facility Agreement contains default provisions including, but not limited to, failure to pay interest or principal when due and failure to comply with covenants. Long-Term Debt Long-term debt consisted of the following ($ in millions): January 30, 2016 January 31, 2015 2016 Notes $ 350 $ 350 2018 Notes 500 500 2021 Notes 650 650 Interest rate swap valuation adjustments 25 1 Other debt — 1 Subtotal 1,525 1,502 Debt discounts and issuance costs (7 ) (10 ) Financing lease obligations 178 69 Capital lease obligations 38 52 Total long-term debt 1,734 1,613 Less: current portion (395 ) (41 ) Total long-term debt, less current portion $ 1,339 $ 1,572 2018 Notes On July 16, 2013, we completed the sale of $500 million principal amount of notes due August 1, 2018 (the “2018 Notes”). The 2018 Notes bear interest at a fixed rate of 5.00% per year, payable semi-annually on February 1 and August 1 of each year, beginning on February 1, 2014. Net proceeds from the sale of the 2018 Notes were $495 million , after underwriting and issue discounts totaling $5 million . We may redeem some or all of the 2018 Notes at any time, at a redemption price equal to the greater of (1) 100% of the principal amount of the 2018 Notes to be redeemed and (2) the sum of the present values of each remaining scheduled payment of principal and interest on the 2018 Notes to be redeemed discounted to the redemption date on a semi-annual basis at the Treasury Rate plus 50 basis points. Furthermore, if a change of control triggering event occurs, we will be required to offer to purchase the remaining unredeemed 2018 Notes at a price equal to 101% of their principal amount, plus accrued and unpaid interest to the purchase date. The 2018 Notes are unsecured and unsubordinated obligations and rank equally with all of our other unsecured and unsubordinated debt. The 2018 Notes contain covenants that, among other things, limit our ability and the ability of our subsidiaries to incur debt secured by liens and enter into sale and lease-back transactions. 2016 and 2021 Notes In March 2011, we issued $350 million principal amount of notes due March 15, 2016 (the “2016 Notes”) and $650 million principal amount of notes due March 15, 2021 (the “2021 Notes” and, together with the 2016 Notes, the “Notes”). In March 2016, we repaid the 2016 Notes using existing cash resources. The 2016 Notes bore interest at a fixed rate of 3.75% per year, while the 2021 Notes bear interest at a fixed rate of 5.50% per year. Interest on the Notes is payable semi-annually on March 15 and September 15 of each year, beginning on September 15, 2011. The Notes were issued at a slight discount to par, which when coupled with underwriting discounts of $6 million , resulted in net proceeds from the sale of the Notes of $990 million . We may redeem some or all of the Notes at any time at a redemption price equal to the greater of (i) 100% of the principal amount and (ii) the sum of the present values of each remaining scheduled payment of principal and interest discounted to the redemption date on a semiannual basis, plus accrued and unpaid interest on the principal amount to the redemption date as described in the indenture (including the supplemental indenture) relating to the Notes. Furthermore, if a change of control triggering event occurs, we will be required to offer to purchase the remaining unredeemed Notes at a price equal to 101% of their principal amount, plus accrued and unpaid interest to the purchase date. The Notes are unsecured and unsubordinated obligations and rank equally with all of our other unsecured and unsubordinated debt. The Notes contain covenants that, among other things, limit our ability to incur debt secured by liens or to enter into sale and lease-back transactions. Fair Value and Future Maturities The fair value of long-term debt, excluding debt discounts and issuance costs and financing and capital lease obligations, approximated $1,543 million and $1,494 million at January 30, 2016 , and January 31, 2015 , respectively, based primarily on the quoted market prices, compared to carrying values of $1,525 million and $1,502 million , respectively. If our long-term debt was recorded at fair value, it would be classified as Level 2 in the fair value hierarchy. At January 30, 2016 , the future maturities of long-term debt, excluding debt discounts and issuance costs and financing and capital lease obligations (see Note 8, Leases , for the future lease obligation maturities), consisted of the following ($ in millions): Fiscal Year 2017 $ 350 2018 — 2019 517 2020 — 2021 — Thereafter 658 Total long-term debt $ 1,525 |
Derivative Instruments (Notes)
Derivative Instruments (Notes) | 12 Months Ended |
Jan. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments We manage our economic and transaction exposure to certain risks through the use of foreign currency derivative instruments and interest rate swaps. Our objective in holding derivatives is to reduce the volatility of net earnings, cash flows and net asset value associated with changes in foreign currency exchange rates and interest rates. We do not hold derivative instruments for trading or speculative purposes. We have no derivatives that have credit risk-related contingent features, and we mitigate our credit risk by engaging with financial institutions with investment grade credit ratings as our counterparties. We record all derivative instruments on our Consolidated Balance Sheet at fair value and evaluate hedge effectiveness prospectively and retrospectively when electing to apply hedge accounting. We formally document all hedging relations at the inceptions for derivative hedges and the underlying hedged items, as well as the risk management objectives and strategies for undertaking the hedge transaction. In addition, we have derivatives which are not designated as hedging instruments. Net Investment Hedges We use foreign exchange forward contracts to hedge against the effect of Canadian dollar exchange rate fluctuations on a portion of our net investment in our Canadian operations. The contracts have terms up to 12 months. For a net investment hedge, we recognize changes in the fair value of the derivative as a component of foreign currency translation within other comprehensive income to offset a portion of the change in translated value of the net investment being hedged, until the investment is sold or liquidated. We limit recognition in net earnings of amounts previously recorded in other comprehensive income to circumstances such as complete or substantially complete liquidation of the net investment in the hedged foreign operation. We report the ineffective portion of the gain or loss, if any, in net earnings. Interest Rate Swaps We use "receive fixed-rate, pay variable-rate" interest rate swaps to mitigate the effect of interest rate fluctuations on a portion of our 2018 Notes and 2021 Notes. Our interest rate swap contracts are considered perfect hedges because the critical terms and notional amounts match those of our fixed-rate debt being hedged and are therefore accounted as a fair value hedge using the shortcut method. Under the shortcut method, we recognize the change in the fair value of the derivatives with an offsetting change to the carrying value of the debt. Accordingly, there is no impact on our Consolidated Statements of Earnings from the fair value of the derivatives. Derivatives Not Designated as Hedging Instruments We use foreign currency forward contracts to manage the impact of fluctuations in foreign currency exchange rates relative to recognized receivable and payable balances denominated in non-functional currencies. The contracts generally have terms of up to 12 months. These derivative instruments are not designated in hedging relationships and, therefore, we record gains and losses on these contracts directly to net earnings. Summary of Derivative Balances The following table presents the gross fair values for outstanding derivative instruments and the corresponding classification at January 30, 2016 and January 31, 2015 : January 30, 2016 January 31, 2015 Contract Type Assets Liabilities Assets Liabilities Derivatives designated as net investment hedges (1) $ 15 $ 1 $ 19 $ — Derivatives designated as interest rate swaps (2) 25 — 1 — No hedge designation (foreign exchange forward contracts) (1) 3 — 11 — Total $ 43 $ 1 $ 31 $ — (1) The fair value is recorded in other current assets or accrued liabilities. (2) The fair value is recorded in other assets or long-term liabilities. The following table presents the effects of derivative instruments on Other Comprehensive Income ("OCI") and on our Consolidated Statements of Earnings for fiscal 2016 and 2015 : 2016 2015 Contract Type Pre-tax Gain(Loss) Recognized in OCI Gain(Loss) Reclassified from Accumulated OCI to Earnings (Effective Portion) Pre-tax Gain(Loss) Recognized in OCI Gain(Loss) Reclassified from Accumulated OCI to Earnings (Effective Portion) Derivatives designated as net investment hedges $ 21 $ — $ 22 $ — The following table presents the effects of derivatives not designated as hedging instruments on our consolidated statements of earnings for fiscal 2016 and 2015 : Gain (Loss) Recognized within SG&A Contract Type 2016 2015 No hedge designation (foreign exchange forward contracts) $ 4 $ 12 The following table presents the notional amounts of our derivative instruments at January 30, 2016 and January 31, 2015 : Notional Amount Contract Type January 30, 2016 January 31, 2015 Derivatives designated as net investment hedges 208 197 Derivatives designated as interest rate swaps 750 145 No hedge designation (foreign exchange forward contracts) 94 212 Total 1,052 554 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Jan. 30, 2016 | |
Equity [Abstract] | |
Shareholders Equity | Shareholders' Equity Stock Compensation Plans Our 2014 Omnibus Incentive Plan (the "Omnibus Plan") authorizes us to grant or issue non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units and other equity awards up to a total of 22.5 million 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, advisers, 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. Awards granted, forfeited or canceled under the previous plan, the 2004 Omnibus Stock and Incentive Plan, after February 1, 2014 adjust the amount available under the Omnibus Plan. At January 30, 2016 , a total of 19.6 million 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 three or four -year period, and outstanding stock options issued to directors vest immediately upon grant. Share awards vest based either upon attainment of specified goals or upon continued employment. Outstanding share awards that are not time-based vest at the end of a three-year incentive period based upon our total shareholder return ("TSR") compared to the TSR of companies that comprise Standard & Poor's 500 Index ("market-based"). We have time-based share awards that vest in their entirety at the end of three -year periods, 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, and time-based share awards to directors vest one year from the grant date. During fiscal 2014, our Employee Stock Purchase Plan was amended. The Plan permits employees to purchase our common stock at a 5% discount from the market price at the end of semi-annual purchase periods and is non-compensatory. During fiscal 2013 (11-month), the Plan permitted our employees to purchase our common stock at a 15% discount from the market price of the stock at the beginning or at the end of a semi-annual purchase period, whichever is less, and was considered compensatory. Employees are required to hold the common stock purchased for 12 months. In fiscal 2016 , 2015 and 2014 , 0.2 million , 0.3 million and 0.6 million shares, respectively, were purchased through our employee stock purchase plans. At January 30, 2016 , and January 31, 2015 , plan participants had accumulated $2 million and $1 million , respectively, to purchase our common stock pursuant to these plans. Stock-based compensation expense was as follows in fiscal 2016 , 2015 and 2014 ($ in millions): 2016 2015 2014 Stock options $ 15 $ 17 $ 25 Share awards Market-based 16 10 9 Time-based 73 60 62 Employee stock purchase plans — — 1 Total $ 104 $ 87 $ 97 Stock Options Stock option activity was as follows in fiscal 2016 : Stock Options Weighted-Average Exercise Price per Share Weighted-Average Remaining Contractual Term (in years) Aggregate (in millions) Outstanding at January 31, 2015 17,342,000 $ 36.81 Granted 1,267,000 $ 40.68 Exercised (1,432,000 ) $ 28.24 Forfeited/Canceled (2,935,000 ) $ 44.15 Outstanding at January 30, 2016 14,242,000 $ 36.51 4.7 $ 20 Vested or expected to vest at January 30, 2016 13,986,000 $ 36.47 4.6 $ 20 Exercisable at January 30, 2016 11,668,000 $ 37.09 3.8 $ 18 The weighted-average grant-date fair value of stock options granted during fiscal 2016 , 2015 and 2014 was $11.59 , $9.09 and $7.77 , respectively, per share. The aggregate intrinsic value of our stock options (the amount by which the market price of the stock on the date of exercise exceeded the exercise price of the option) exercised during fiscal 2016 , 2015 and 2014 , was $14 million , $13 million and $39 million , respectively. At January 30, 2016 , there was $15 million of unrecognized compensation expense related to stock options that is expected to be recognized over a weighted-average period of 1.2 years. Net cash proceeds from the exercise of stock options were $40 million , $42 million and $158 million in fiscal 2016 , 2015 and 2014 , respectively. There was $5 million , $5 million and $13 million of income tax benefits realized from stock option exercises in fiscal 2016 , 2015 and 2014 , respectively. In fiscal 2016 , 2015 and 2014 , we estimated the fair value of each stock option on the date of grant using a lattice or Black Scholes valuation model (for certain individuals) with the following assumptions: Valuation Assumptions (1) 2016 2015 2014 Risk-free interest rate (2) 0.1% – 2.1% 0.1% – 2.4% 0.1% – 1.8% Expected dividend yield 2.3 % 2.5 % 2.0 % Expected stock price volatility (3) 37 % 40 % 46 % Expected life of stock options (in years) (4) 6.0 6.0 5.9 (1) Forfeitures are estimated using historical experience and projected employee turnover. (2) Based on the U.S. Treasury constant maturity interest rate whose term is consistent with the expected life of our stock options. (3) In projecting expected stock price volatility, we consider both the historical volatility of our stock price as well as implied volatilities from exchange-traded options on our stock. (4) We estimate the expected life of stock options based upon historical experience. Market-Based Share Awards The fair value of market-based share awards is determined using Monte-Carlo simulation. A summary of the status of our nonvested market-based share awards at January 30, 2016 , and changes during fiscal 2016 , is as follows: Market-Based Share Awards Shares Weighted-Average Fair Value per Share Outstanding at January 31, 2015 1,704,000 $ 24.16 Granted 758,000 $ 31.48 Vested (914,000 ) $ 16.73 Forfeited/Canceled (86,000 ) $ 28.85 Outstanding at January 30, 2016 1,462,000 $ 32.33 At January 30, 2016 , there was $19 million of unrecognized compensation expense related to nonvested market-based share awards that we expect to recognize over a weighted-average period of 1.8 years. Time-Based Share Awards The fair value of time-based share awards is determined based on the closing market price of our stock on the date of grant. This value is reduced by the present value of expected dividends during vesting when the employee is not entitled to dividends. A summary of the status of our nonvested time-based share awards at January 30, 2016 , and changes during fiscal 2016 , is as follows: Time-Based Share Awards Shares Weighted-Average Fair Value per Share Outstanding at January 31, 2015 5,543,000 $ 24.40 Granted 2,683,000 $ 38.72 Vested (2,503,000 ) $ 23.10 Forfeited/Canceled (620,000 ) $ 29.98 Outstanding at January 30, 2016 5,103,000 $ 31.89 At January 30, 2016 , there was $85 million of unrecognized compensation expense related to nonvested time-based share awards that we expect to recognize over a weighted-average period of 1.8 years. 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 the potentially dilutive common shares been issued. Potentially dilutive securities include stock options, nonvested share awards and shares issuable under our employee stock purchase plan. Nonvested market-based share awards and nonvested performance-based share awards are included in the average diluted shares outstanding each period if established market or performance criteria have been met at the end of the respective periods. At January 30, 2016 , options to purchase 14.2 million shares of common stock were outstanding as follows (shares in millions): Exercisable Unexercisable Total Shares % Weighted- Average Price per Share Shares % Weighted- Average Price per Share Shares % Weighted- Average Price per Share In-the-money 4.2 36 % $ 24.73 1.3 52 % $ 27.45 5.5 39 % $ 25.37 Out-of-the-money 7.5 64 % $ 44.15 1.2 48 % $ 40.51 8.7 61 % $ 43.62 Total 11.7 100 % $ 37.09 2.5 100 % $ 33.87 14.2 100 % $ 36.51 The computation of dilutive shares outstanding excludes the out-of-the-money stock options because such outstanding options' exercise prices were greater than the average market price of our common shares and, therefore, the effect would be anti-dilutive (i.e., including such options would result in higher earnings per share). The following table presents a reconciliation of the numerators and denominators of basic and diluted earnings per share from continuing operations attributable to Best Buy Co., Inc. in fiscal 2016 , 2015 and 2014 ($, except per share amounts, and shares in millions): 2016 2015 2014 Numerator (in millions): Net earnings from continuing operations attributable to Best Buy Co., Inc., shareholders $ 807 $ 1,246 $ 695 Denominator (in millions): Weighted-average common shares outstanding 346.5 349.5 342.1 Effect of potentially dilutive securities: Stock options and other 4.2 4.1 5.5 Weighted-average common shares outstanding, assuming dilution 350.7 353.6 347.6 Net earnings per share from continuing operations attributable to Best Buy Co., Inc. shareholders Basic $ 2.33 $ 3.57 $ 2.03 Diluted $ 2.30 $ 3.53 $ 2.00 Repurchase of Common Stock In June 2011, our Board of Directors authorized a $5.0 billion share repurchase program. There is no expiration date governing the period over which we can repurchase shares under the June 2011 share repurchase program. On January 22, 2016, we entered into a variable notional accelerated share repurchase agreement ("ASR") with a third party financial institution to repurchase $150 million to $175 million of our common stock. Under the agreement, we paid $175 million at the beginning of the contract and received an initial delivery of 4.4 million shares on January 25, 2016. We retired these shares and recorded a $120 million reduction to stockholders' equity. As of January 30, 2016 the remaining $55 million was included as a reduction of stockholders' equity in "Prepaid Share Repurchase". We accounted for the variable component of shares to be delivered under the ASR as a forward contract indexed to our common stock, which met all of the criteria for equity classification, and therefore, was not accounted for as a derivative instrument but instead was accounted for as a component of equity. The ASR continued to meet the requirements for equity classification as of January 30, 2016. The delivery of 4.4 million shares reduced our outstanding shares used to determine our weighted average common shares outstanding for purposes of calculating basic and diluted earnings per share for the twelve months ended January 30, 2016. We evaluated the ASR agreement for potential dilutive effects of any shares remaining to be received or owed upon settlement and determined the additional shares to be received would be anti-dilutive, and therefore they were not included in our calculation of diluted earnings per share for the the twelve months ended January 30, 2016. The ASR was settled on February 17, 2016 for a final notional amount of $165 million . Accordingly we received 1.6 million shares, which were retired, and a $10 million cash payment from our counter-party equal to the difference between the $175 million up-front payment and the final notional amount. The final notional amount was determined based upon the volume-weighted average share price of our common stock during the term of the ASR agreement. The number of shares delivered was based upon the final notional amount and the volume-weighted average share price of our common stock during the term of the agreement, less an agreed-upon discount. The following table presents information regarding the shares we repurchased and retired in fiscal 2016 , noting that we had no repurchases and retirements in fiscal 2015 and 2014 ($, except per share amounts, and shares in millions): 2016 Total cost of shares repurchased Open market $ 880 January 2016 ASR 120 Total $ 1,000 Average price per share Open market $ 31.03 January 2016 ASR $ 27.28 Average $ 30.53 Number of shares repurchased and retired Open market 28.4 January 2016 ASR 4.4 Total 32.8 At January 30, 2016 , $3.0 billion remained available for additional purchases under the June 2011 share repurchase program. Repurchased shares have been retired and constitute authorized but unissued shares. Comprehensive Income (Loss) Comprehensive income (loss) is computed as net earnings (loss) plus certain other items that are recorded directly to shareholders' equity. In addition to net earnings (loss), the significant components of comprehensive income (loss) include foreign currency translation adjustments and unrealized gains and losses, net of tax, on available-for-sale marketable equity securities. Foreign currency translation adjustments do not include a provision for income tax expense when earnings from foreign operations are considered to be indefinitely reinvested outside the U.S. The following table provides a reconciliation of the components of accumulated other comprehensive income, net of tax, attributable to Best Buy Co., Inc. shareholders for fiscal 2016 , 2015 , and 2014 , respectively ($ in millions): Foreign Currency Translation Available-For-Sale Investments Total Balances at February 2, 2013 $ 113 $ (1 ) $ 112 Foreign currency translation adjustments (136 ) — (136 ) Unrealized gains on available-for-sale investments — 7 7 Reclassification of foreign currency translation adjustments into earnings due to sale of business 508 — 508 Reclassification of losses on available-for-sale investments into earnings — 1 1 Balances at February 1, 2014 $ 485 $ 7 $ 492 Foreign currency translation adjustments (103 ) — (103 ) Unrealized losses on available-for-sale investments — (3 ) (3 ) Reclassification of gains on available-for-sale investments into earnings — (4 ) (4 ) Balances at January 31, 2015 $ 382 $ — $ 382 Foreign currency translation adjustments (44 ) — (44 ) Reclassification of foreign currency translation adjustments into earnings (67 ) — (67 ) Balances at January 30, 2016 $ 271 $ — $ 271 There is generally no tax impact related to foreign currency translation adjustments, as the earnings are considered permanently reinvested. In addition, there were no material tax impacts related to gains or losses on available-for-sale investments in the periods presented. |
Leases
Leases | 12 Months Ended |
Jan. 30, 2016 | |
Leases [Abstract] | |
Leases | Leases The composition of net rent expense for all operating leases, including leases of property and equipment, was as follows in fiscal 2016 , 2015 and 2014 ($ in millions): 2016 2015 2014 Minimum rentals $ 797 $ 848 $ 864 Contingent rentals 1 2 2 Total rent expense 798 850 866 Less: sublease income (15 ) (18 ) (18 ) Net rent expense $ 783 $ 832 $ 848 The future minimum lease payments under our capital, financing and operating leases by fiscal year (not including contingent rentals) at January 30, 2016 , were as follows ($ in millions): Fiscal Year Capital Leases Financing Leases Operating Leases (1) 2017 $ 14 $ 42 $ 813 2018 9 35 708 2019 6 29 572 2020 3 23 439 2021 2 17 310 Thereafter 12 66 521 Total minimum lease payments 46 212 $ 3,363 Less amount representing interest (8 ) (34 ) Present value of minimum lease payments 38 178 Less current maturities (12 ) (33 ) Present value of minimum lease maturities, less current maturities $ 26 $ 145 (1) Operating lease obligations do not include payments to landlords covering real estate taxes and common area maintenance. These charges, if included, would increase total operating lease obligations by $1.1 billion at January 30, 2016 . Total minimum lease payments have not been reduced by minimum sublease rent income of approximately $72 million due under future noncancelable subleases. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Jan. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Benefit Plans | 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 $53 million , $60 million and $65 million in fiscal 2016 , 2015 and 2014 , 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 $34 million and $44 million at January 30, 2016 , and January 31, 2015 , 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 fair value of the investment vehicles, which includes funding for future deferrals, was $96 million and $97 million at January 30, 2016 , and January 31, 2015 , respectively, and is included in other assets. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following is a reconciliation of the federal statutory income tax rate to income tax expense in fiscal 2016 , 2015 and 2014 ($ in millions): 2016 2015 2014 Federal income tax at the statutory rate $ 458 $ 485 $ 379 State income taxes, net of federal benefit 38 43 26 (Benefit) expense from foreign operations 5 (23 ) (23 ) Other 2 (11 ) 6 Legal entity reorganization — (353 ) — Income tax expense $ 503 $ 141 $ 388 Effective income tax rate 38.4 % 10.1 % 35.8 % Legal Entity Reorganization In the fourth quarter of fiscal 2012, we purchased CPW’s interest in the Best Buy Mobile profit share agreement for $1.3 billion (the “Mobile buy-out”). The Mobile buy-out completed by our U.K. subsidiary resulted in the $1.3 billion purchase price being assigned, for U.S. tax purposes only, to an intangible asset. The Mobile buy-out did not, however, result in a similar intangible asset in the U.K., as the Mobile buy-out was considered part of a tax-free equity transaction for U.K. tax purposes. Because the U.S. tax basis in the intangible asset was considered under U.S. tax law to be held by our U.K. subsidiary, which was regarded as a foreign corporation for U.S. tax purposes, ASC 740, Income Taxes , requires that no deferred tax asset may be recorded in respect of the intangible asset. ASC 740-30-25-9 also precludes the recording of a deferred tax asset on the outside basis difference of the U.K. subsidiary. As a result, the amortization of the U.S. tax basis in the intangible asset only resulted in a periodic income tax benefit by reducing the amount of the U.K. subsidiary’s income, if any, that would otherwise have been subject to U.S. income taxes. In the first quarter of fiscal 2015, we filed an election with the Internal Revenue Service to treat the U.K. subsidiary as a disregarded entity such that its assets are now deemed to be assets held directly by a U.S. entity for U.S. tax purposes. This tax-only election, which resulted in the liquidation of the U.K. subsidiary for U.S. tax purposes, resulted in the elimination of the Company’s outside basis difference in the U.K. subsidiary. Additionally, the election resulted in the recognition of a deferred tax asset (and corresponding income tax benefit) for the remaining unrecognized inside tax basis in the intangible, in a manner similar to a change in tax status as provided in ASC 740-10-25-32. Earnings from continuing operations before income tax expense by jurisdiction was as follows in fiscal 2016 , 2015 and 2014 ($ in millions): 2016 2015 2014 United States $ 1,310 $ 1,201 $ 699 Outside the United States — 186 384 Earnings from continuing operations before income tax expense $ 1,310 $ 1,387 $ 1,083 Income tax expense was comprised of the following in fiscal 2016 , 2015 and 2014 ($ in millions): 2016 2015 2014 Current: Federal $ 347 $ 354 $ 305 State 48 51 46 Foreign 60 33 55 455 438 406 Deferred: Federal 65 (275 ) (22 ) State 10 (26 ) 1 Foreign (27 ) 4 3 48 (297 ) (18 ) Income tax expense $ 503 $ 141 $ 388 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 ($ in millions): January 30, 2016 January 31, 2015 Accrued property expenses $ 175 $ 129 Other accrued expenses 78 91 Deferred revenue 99 93 Compensation and benefits 99 103 Stock-based compensation 86 94 Goodwill and intangibles 253 287 Loss and credit carryforwards 133 156 Other 86 88 Total deferred tax assets 1,009 1,041 Valuation allowance (108 ) (143 ) Total deferred tax assets after valuation allowance 901 898 Property and equipment (296 ) (251 ) Inventory (69 ) (54 ) Other (26 ) (27 ) Total deferred tax liabilities (391 ) (332 ) Net deferred tax assets $ 510 $ 566 Deferred tax assets and liabilities included in our Consolidated Balance Sheets were as follows ($ in millions): January 30, 2016 January 31, 2015 Other assets $ 510 $ 574 Long-term liabilities held for sale — (8 ) Net deferred tax assets $ 510 $ 566 During the fourth quarter of fiscal 2016, we early adopted ASU 2015-17, which requires that all deferred taxes be presented as non-current on the Consolidated Balance Sheet. Refer to Note 1, Summary of Significant Accounting Policies , for further information regarding this balance sheet reclassification. At January 30, 2016 , we had total net operating loss carryforwards from international operations of $96 million , of which $89 million will expire in various years through 2036 and the remaining amounts have no expiration. Additionally, we had acquired U.S. federal net operating loss carryforwards of $19 million which expire between 2023 and 2030 , U.S. federal foreign tax credit carryforwards of $1 million which expire between 2023 and 2026 , state credit carryforwards of $13 million which expire in 2024 , and state capital loss carryforwards of $4 million which expire in 2019 . At January 30, 2016 , a valuation allowance of $108 million had been established, of which $1 million is against U.S. federal foreign tax credit carryforwards, $9 million is against U.S. federal and state capital loss carryforwards, $8 million is against state credit carryforwards and other state deferred tax assets, and $90 million is against certain international net operating loss carryforwards and other international deferred tax assets. The $35 million decrease from January 31, 2015 , is primarily due to the decrease in the valuation allowance against international net operating loss carryforwards. We have not provided deferred taxes on unremitted earnings attributable to foreign operations that have been considered to be reinvested indefinitely. These earnings relate to ongoing operations and were $896 million at January 30, 2016 . It is not practicable to determine the income tax liability that would be payable if such earnings were not indefinitely reinvested. The following table provides a reconciliation of changes in unrecognized tax benefits for fiscal 2016 , 2015 and 2014 ($ in millions): 2016 2015 2014 Balance at beginning of period $ 410 $ 370 $ 383 Gross increases related to prior period tax positions 30 33 38 Gross decreases related to prior period tax positions (13 ) (88 ) (67 ) Gross increases related to current period tax positions 59 114 34 Settlements with taxing authorities (9 ) (9 ) (3 ) Lapse of statute of limitations (8 ) (10 ) (15 ) Balance at end of period $ 469 $ 410 $ 370 Unrecognized tax benefits of $337 million , $297 million and $228 million at January 30, 2016 , January 31, 2015 , and February 1, 2014 , respectively, would favorably impact our effective income tax rate if recognized. We recognize interest and penalties (not included in the "unrecognized tax benefits" above), as well as interest received from favorable tax settlements, as components of income tax expense. Interest expense of $10 million was recognized in fiscal 2016 . At January 30, 2016 , January 31, 2015 , and February 1, 2014 , we had accrued interest of $89 million , $78 million and $91 million , respectively, along with accrued penalties of $1 million , $2 million and $2 million at January 30, 2016 , January 31, 2015 , and February 1, 2014 , respectively. We file a consolidated U.S. federal income tax return, as well as income tax returns in various states and foreign jurisdictions. With few exceptions, we are no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before fiscal 2005 . Because existing tax positions will continue to generate increased liabilities for us for unrecognized tax benefits over the next 12 months, and since we are routinely under audit by various taxing authorities, it is reasonably possible that the amount of unrecognized tax benefits will change during the next 12 months. An estimate of the amount or range of such change cannot be made at this time. However, we do not expect the change, if any, to have a material effect on our consolidated financial condition, results of operations or cash flows within the next 12 months. |
Segments and Geographic Informa
Segments and Geographic Information | 12 Months Ended |
Jan. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Segment and Geographic Information Segment Information Our chief operating decision maker ("CODM") is our Chief Executive Officer. Our business is organized into two reportable segments: Domestic (which is comprised of all operations within the U.S. and its territories) and International (which is comprised of all operations outside the U.S. and its districts and territories). Our CODM has ultimate responsibility for enterprise decisions. Our CODM determines, in particular, resource allocation for, and monitors performance of, the consolidated enterprise, the Domestic segment and the International segment. The Domestic segment managers and International segment managers have responsibility for operating decisions, allocating resources and assessing performance within their respective segments. Our CODM relies on internal management reporting that analyzes enterprise results to the net earnings level and segment results to the operating income level. We aggregate our Canada and Mexico businesses into one International operating segment. Our Domestic and International operating segments also represent our reportable segments. The accounting policies of the segments are the same as those described in Note 1, Summary of Significant Accounting Policies . The following tables present our business segment information in fiscal 2016 , 2015 and 2014 ($ in millions): 2016 2015 2014 Revenue Domestic $ 36,365 $ 36,055 $ 35,831 International 3,163 4,284 4,780 Total revenue $ 39,528 $ 40,339 $ 40,611 Percentage of revenue, by revenue category Domestic: Consumer Electronics 32 % 31 % 30 % Computing and Mobile Phones 46 % 47 % 48 % Entertainment 8 % 9 % 8 % Appliances 8 % 7 % 7 % Services 5 % 5 % 6 % Other 1 % 1 % 1 % Total 100 % 100 % 100 % International: Consumer Electronics 31 % 30 % 29 % Computing and Mobile Phones 48 % 49 % 50 % Entertainment 9 % 9 % 10 % Appliances 5 % 5 % 5 % Services 6 % 6 % 6 % Other 1 % 1 % < 1% Total 100 % 100 % 100 % Operating income (loss) Domestic $ 1,585 $ 1,437 $ 1,145 International (210 ) 13 (1 ) Total operating income 1,375 1,450 1,144 Other income (expense) Gain on sale of investments 2 13 20 Investment income and other 13 14 19 Interest expense (80 ) (90 ) (100 ) Earnings from continuing operations before income tax expense $ 1,310 $ 1,387 $ 1,083 Assets (1)(2) Domestic $ 12,318 $ 12,987 $ 11,123 International 1,201 2,258 2,867 Total assets $ 13,519 $ 15,245 $ 13,990 Capital expenditures (2) Domestic $ 602 $ 519 $ 440 International 47 42 107 Total capital expenditures $ 649 $ 561 $ 547 Depreciation (2) Domestic $ 613 $ 575 $ 565 International 44 81 136 Total depreciation $ 657 $ 656 $ 701 (1) For fiscal 2015 and 2014, assets are recast to present our retrospective adoption of ASU 2015-17 Balance Sheet Classification of Deferred Taxes, ASU 2015-03 Simplifying the Presentation of Debt Issuance Costs, and ASU 2015-15 Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. Refer to Note 1, Summary of Significant Accounting Policies , of the Notes to Consolidated Financial Statements, included in Item 8, Financial Statements and Supplementary Data , of this Annual Report on Form 10-K for further information about our credit facilities. (2) For fiscal 2015 and 2014, the International segment amounts for assets, capital expenditures and depreciation include amounts from Five Star. Geographic Information The following table presents our geographic information in fiscal 2016 , 2015 and 2014 ($ in millions): 2016 2015 2014 Net sales to customers United States $ 36,365 $ 36,055 $ 35,831 Canada 2,917 4,047 4,522 Other 246 237 258 Total revenue $ 39,528 $ 40,339 $ 40,611 Long-lived assets United States $ 2,189 $ 2,100 $ 2,190 Canada 140 174 244 China — — 139 Other 17 21 25 Total long-lived assets $ 2,346 $ 2,295 $ 2,598 |
Contingencies and Commitments
Contingencies and Commitments | 12 Months Ended |
Jan. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Commitments | Contingencies and Commitments Contingencies We are involved in a number of legal proceedings. Where appropriate, we have made accruals with respect to these matters, which are reflected in our 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 consolidated financial statements. Securities Actions In February 2011, a purported class action lawsuit captioned, IBEW Local 98 Pension Fund, individually and on behalf of all others similarly situated v. Best Buy Co., Inc., et al. , was filed against us and certain of our executive officers in the U.S. District Court for the District of Minnesota. This federal court action alleges, among other things, that we and the officers named in the complaint violated Sections 10(b) and 20A of the Exchange Act and Rule 10b-5 under the Exchange Act in connection with press releases and other statements relating to our fiscal 2011 earnings guidance that had been made available to the public. Additionally, in March 2011, a similar purported class action was filed by a single shareholder, Rene LeBlanc, against us and certain of our executive officers in the same court. In July 2011, after consolidation of the IBEW Local 98 Pension Fund and Rene LeBlanc actions, a consolidated complaint captioned, IBEW Local 98 Pension Fund v. Best Buy Co., Inc., et al., was filed and served. We filed a motion to dismiss the consolidated complaint in September 2011, and in March 2012, subsequent to the end of fiscal 2012, the court issued a decision dismissing the action with prejudice. In April 2012, the plaintiffs filed a motion to alter or amend the court's decision on our motion to dismiss. In October 2012, the court granted plaintiff's motion to alter or amend the court's decision on our motion to dismiss in part by vacating such decision and giving plaintiff leave to file an amended complaint, which plaintiff did in October 2012. We filed a motion to dismiss the amended complaint in November 2012 and all responsive pleadings were filed in December 2012. A hearing was held on April 26, 2013. On August 5, 2013, the court issued an order granting our motion to dismiss in part and, contrary to its March 2012 order, denying the motion to dismiss in part, holding that certain of the statements alleged to have been made were not forward-looking statements and therefore were not subject to the “safe-harbor” provisions of the Private Securities Litigation Reform Act (PSLRA). Plaintiffs moved to certify the purported class. By Order filed August 6, 2014, the court certified a class of persons or entities who acquired Best Buy common stock between 10:00 a.m. EDT on September 14, 2010, and December 13, 2010, and who were damaged by the alleged violations of law. The 8th Circuit Court of Appeals granted our request for interlocutory appeal. Oral argument was held in October 2015, and we await a decision. The trial court has stayed proceedings while the appeal is pending. We continue to believe that these allegations are without merit and intend to vigorously defend our company in this matter. In June 2011, a purported shareholder derivative action captioned, Salvatore M. Talluto, Derivatively and on Behalf of Best Buy Co., Inc. v. Richard M. Schulze, et al. , as Defendants and Best Buy Co., Inc. as Nominal Defendant, was filed against both present and former members of our Board of Directors serving during the relevant periods in fiscal 2011 and us as a nominal defendant in the U.S. District Court for the State of Minnesota. The lawsuit alleges that the director defendants breached their fiduciary duty, among other claims, including violation of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, in failing to correct public misrepresentations and material misstatements and/or omissions regarding our fiscal 2011 earnings projections and, for certain directors, selling stock while in possession of material adverse non-public information. Additionally, in July 2011, a similar purported class action was filed by a single shareholder, Daniel Himmel, against us and certain of our executive officers in the same court. In November 2011, the respective lawsuits of Salvatore M. Talluto and Daniel Himmel were consolidated into a new action captioned, In Re: Best Buy Co., Inc. Shareholder Derivative Litigation, and a stay ordered pending the close of discovery in the consolidated IBEW Local 98 Pension Fund v. Best Buy Co., Inc., et al. case. Additionally, in June 2015, a similar purported class action was filed by a single shareholder, Khuong Tran, derivatively on behalf of Best Buy Co., Inc. against us and certain of our executive officers and directors in the same court. The Tran lawsuit has also been stayed pending the close of discovery in IBEW. The plaintiffs in the above securities actions seek damages, including interest, equitable relief and reimbursement of the costs and expenses they incurred in the lawsuits. As stated above, we believe the allegations in the above securities actions are without merit, and we intend to defend these actions vigorously. Based on our assessment of the facts underlying the claims in the above securities actions, their respective procedural litigation history, and the degree to which we intend to defend our company in these matters, the amount or range of reasonably possible losses, if any, cannot be estimated. Cathode Ray Tube Action On November 14, 2011, we filed a lawsuit captioned In re Cathode Ray Tube Antitrust Litigation in the United States District Court for the Northern District of California. We allege that the defendants engaged in price fixing in violation of antitrust regulations relating to cathode ray tubes for the time period between March 1, 1995 through November 25, 2007. No trial date has been set. In connection with this action, we received settlement proceeds net of legal expenses and costs in the amount of $75 million during fiscal 2016. We will continue to litigate against the remaining defendants and expect that further settlement discussions will occur as this matter proceeds . Other Legal Proceedings We are involved in various other legal proceedings arising in the normal course of conducting business. For such legal proceedings, we have accrued an amount that reflects the aggregate liability deemed probable and estimable, but this amount is not material to our consolidated financial position, results of operations or cash flows. Because of the preliminary nature of many of these proceedings, the difficulty in ascertaining the applicable facts relating to many of these proceedings, the variable treatment of claims made in many of these proceedings and the difficulty of predicting the settlement value of many of these proceedings, we are not able to estimate an amount or range of any reasonably possible additional losses. However, based upon our historical experience, the resolution of these proceedings is not expected to have a material effect on our consolidated financial position, results of operations or cash flows. Commitments We engage Accenture LLP ("Accenture") to assist us with improving our operational capabilities and reducing our costs in the information systems and human resources areas. Our contract with Accenture ends during the first quarter of fiscal 2018 and we expect the spending to total $95 million up to the end of the contract. We had outstanding letters of credit and bankers' acceptances for purchase obligations with an aggregate fair value of $89 million at January 30, 2016 . |
Supplementary Financial Informa
Supplementary Financial Information (Unaudited) | 12 Months Ended |
Jan. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Supplementary Financial Information (Unaudited) | Supplementary Financial Information (Unaudited) The following tables show selected operating results for each 3-month quarter and full year of fiscal 2016 and 2015 (unaudited) ($ in millions): Quarter 12-Month 1st 2nd 3rd 4th 2016 Revenue $ 8,558 $ 8,528 $ 8,819 $ 13,623 $ 39,528 Comparable sales % change (1) 0.6 % 3.8 % 0.8 % (1.7 )% 0.5 % Comparable sales % gain (decline), excluding estimated impact of installment billing (5) (0.7 )% 2.7 % 0.5 % (1.8 )% (0.1 )% Gross profit $ 2,030 $ 2,098 $ 2,112 $ 2,951 $ 9,191 Operating income (2) 86 288 230 771 1,375 Net earnings from continuing operations 37 164 129 477 807 Gain (loss) from discontinued operations, net of tax 92 — (4 ) 2 90 Net earnings including noncontrolling interests 129 164 125 479 897 Net earnings attributable to Best Buy Co., Inc. shareholders 129 164 125 479 897 Diluted earnings (loss) per share (3) Continuing operations $ 0.10 $ 0.46 $ 0.37 $ 1.39 $ 2.30 Discontinued operations 0.26 — (0.01 ) 0.01 0.26 Diluted earnings per share $ 0.36 $ 0.46 $ 0.36 $ 1.40 $ 2.56 Quarter 12-Month 1st 2nd 3rd 4th 2015 Revenue $ 8,639 $ 8,459 $ 9,032 $ 14,209 $ 40,339 Comparable sales % gain (decline) (1) (1.8 )% (2.2 )% 2.9 % 2.0 % 0.5 % Comparable sales % gain (decline), excluding estimated impact of installment billing (5)(6) (1.8 )% (2.2 )% 2.2 % 1.3 % — % Gross profit $ 1,967 $ 1,978 $ 2,076 $ 3,026 $ 9,047 Operating income (4) 210 225 205 810 1,450 Net earnings from continuing operations 469 137 116 524 1,246 Gain (loss) from discontinued operations, net of tax (8 ) 10 (9 ) (4 ) (11 ) Net earnings including noncontrolling interests 461 147 107 520 1,235 Net earnings attributable to Best Buy Co., Inc. shareholders 461 146 107 519 1,233 Diluted earnings (loss) per share (3) Continuing operations $ 1.33 $ 0.39 $ 0.33 $ 1.47 $ 3.53 Discontinued operations (0.02 ) 0.03 (0.03 ) (0.01 ) (0.04 ) Diluted earnings per share $ 1.31 $ 0.42 $ 0.30 $ 1.46 $ 3.49 (1) Our comparable sales calculation compares revenue from stores, websites and call centers operating for at least 14 full months, as well as revenue related to certain other comparable sales channels for a particular period to a corresponding period in the prior year. Relocated, as well as remodeled, expanded and downsized stores closed more than 14 days, are excluded from our comparable sales calculation until at least 14 full months after reopening. Acquisitions are included in the comparable sales calculation beginning with the first full quarter following the first anniversary of the date of the acquisition. The portion of the calculation of comparable sales attributable to our International segment excludes the effect of fluctuations in foreign currency exchange rates. The calculation of comparable sales excludes the impact of revenue from discontinued operations. Comparable online sales are included in our comparable sales calculation. The method of calculating comparable sales varies across the retail industry. As a result, our method of calculating comparable sales may not be the same as other retailers' methods. (2) Includes $186 million , $(4) million , $7 million and $12 million of restructuring charges recorded in the fiscal first, second, third and fourth quarters, respectively, and $201 million for the 12 months ended January 30, 2016 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 differences in quarterly and annual weighted-average shares outstanding. (4) Includes $2 million , $5 million , $5 million and $(7) million of restructuring charges recorded in the fiscal first, second, third and fourth quarters, respectively, and $5 million for the 12 months ended January 31, 2015 related to measures we took to restructure our businesses. (5) Represents comparable sales excluding the estimated revenue of installment billing. (6) Enterprise comparable sales for fiscal 2015 include revenue from continuing operations in the International segment. Excluding the International segment, Enterprise comparable sales, excluding the impact of installment billing, would have been (1.3%) in the first quarter, 2.0% in the second quarter, 2.4% in the third quarter, 0.5% in the fourth quarter and 0.5% for fiscal 2015, or equal to Domestic comparable sales excluding the impact of installment billing, for the same periods. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Jan. 30, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | Schedule II Valuation and Qualifying Accounts ($ in millions) Balance at Beginning of Period Charged to Expenses or Other Accounts Other (1) Balance at End of Period Year ended January 30, 2016 Allowance for doubtful accounts $ 59 $ 30 $ (40 ) $ 49 Year ended January 31, 2015 Allowance for doubtful accounts $ 104 $ 1 $ (46 ) $ 59 Year ended February 1, 2014 Allowance for doubtful accounts $ 92 $ 76 $ (64 ) $ 104 (1) Includes bad debt write-offs and recoveries, acquisitions and the effect of foreign currency fluctuations. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 30, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Discontinued Operations | Discontinued Operations On June 26, 2013, we sold our 50% ownership interest in Best Buy Europe Distributions Limited ("Best Buy Europe"). On February 1, 2014, we sold mindSHIFT Technologies, Inc. ("mindSHIFT"). On February 13, 2015, we sold Jiangsu Five Star Appliance Co., Limited ("Five Star"). The results of Best Buy Europe, mindSHIFT and Five Star are presented as discontinued operations for all periods. See Note 2, Discontinued Operations , for further information. |
Description of Business | Description of Business We are a leading provider of technology products, services and solutions. We offer these products and services to the customers who visit our stores, engage with Geek Squad agents or use our websites or mobile applications. We have operations in the U.S., Canada and Mexico. We have two reportable segments: Domestic and International. The Domestic segment is comprised of the operations in all states, districts and territories of the U.S., under various brand names including Best Buy, bestbuy.com, Best Buy Mobile, Best Buy Direct, Best Buy Express, Geek Squad, Magnolia Home Theater and Pacific Kitchen and Home. The International segment is comprised of all operations in Canada and Mexico under the brand names Best Buy, bestbuy.com.ca, bestbuy.com.mx, Best Buy Express, Best Buy Mobile and Geek Squad. |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of Best Buy Co., Inc. and its consolidated subsidiaries. All intercompany balances and transactions are eliminated upon consolidation. In order to align our fiscal reporting periods and comply with statutory filing requirements, we consolidate the financial results of our Mexico operations, as well as our discontinued Europe and China operations, on a one -month lag. Our policy is to accelerate recording the effect of events occurring in the lag period that significantly affect our consolidated financial statements. No significant intervening event occurred in these operations that would have materially affected our financial condition, results of operations, liquidity or other factors had it been recorded during fiscal 2016, 2015 or 2014. In preparing the accompanying consolidated financial statements, we evaluated the period from January 31, 2016, through the date the financial statements were issued for material subsequent events requiring recognition or disclosure. Other than as described in Note 5, Debt , and Note 7, Shareholders' Equity , no such events were identified for this period. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. ("GAAP") requires us to make estimates and assumptions. These estimates and assumptions affect the reported amounts in the consolidated financial statements, as well as the disclosure of contingent liabilities. Future results could be materially affected if actual results were to differ from these estimates and assumptions. |
Fiscal Period | Fiscal Year Our fiscal year ends on the Saturday nearest the end of January. Fiscal 2016, 2015, and 2014 each included 52 weeks. |
New Accounting Pronouncements | New Accounting Pronouncements In April 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-18, Reporting Discontinued Operations and Disclosures of Components of an Entity. The new guidance amends the definition of a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. We adopted the new guidance in the first quarter of fiscal 2016, and the adoption of the new guidance did not have a material impact on our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, as a new Topic. Accounting Standards Codification (ASC) Topic 606. The new guidance provides a comprehensive framework for the analysis of revenue transactions and will apply to all of our revenue streams. Based on the current effective dates, the new guidance would first apply in the first quarter of our fiscal 2019. While we are still in the process of evaluating the effect of adoption on our financial statements, we do not currently expect a material impact on our results of operations, cash flows or financial position. In February 2016, the FASB issued ASU 2016-02, Leases. The new guidance was issued to increase transparency and comparability among companies by requiring most leases be included on the balance sheet and by expanding disclosure requirements. Based on the current effective dates, the new guidance would first apply in the first quarter of our fiscal 2020. We are still in the process of evaluating the effect of adoption on our financial statements. Changes in Accounting Principles In the fourth quarter of fiscal 2016, we adopted the following ASUs: • The FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs in April 2015 and ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements in August 2015. The new guidance aligns the treatment of debt issuance costs, with the exception of debt issuance costs related to lines of credit, with the treatment of debt discounts, so that the debt issuance costs are presented on the balance sheet as a direct deduction from the carrying amount of that debt liability. In the fourth quarter of fiscal 2016, we retrospectively adopted ASU 2015-03 and ASU 2015-15. The adoption did not have a material impact on our results of operations, cash flows or financial position. • In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes. The new guidance is part of the simplification initiative and requires all deferred income tax liabilities and assets to be classified as non-current. In the fourth quarter of fiscal 2016, we retrospectively adopted ASU 2015-17. The adoption did not have a material impact on our results of operations, cash flows or financial position. The following table reconciles the balance sheet line items impacted by the adoption of these two standards for fiscal 2015: Balance Sheet 2015 Reported ASU 2015-03 & 2015-15 Adjustments ASU 2015-17 Adjustments 2015 Adjusted Other current assets $ 703 $ (2 ) $ (252 ) $ 449 Current assets held for sale 684 — (3 ) 681 Other assets 583 (6 ) 252 829 Total assets $ 15,256 $ (8 ) $ (3 ) $ 15,245 Long-term debt $ 1,580 $ (8 ) $ — $ 1,572 Long-term liabilities held for sale 18 — (3 ) 15 Total liabilities & equity $ 15,256 $ (8 ) $ (3 ) $ 15,245 |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash primarily consists of cash on hand and bank deposits. Cash equivalents consist of money market funds, treasury bills, commercial paper, corporate bonds and deposits with an original maturity of 3 months or less when purchased. The amounts of cash equivalents at January 30, 2016 , and January 31, 2015 , were $1,208 million and $1,660 million , respectively, and the weighted-average interest rates were 0.5% and 0.4% , respectively. |
Receivables | Receivables Receivables consist principally of amounts due from mobile phone network operators for commissions earned; banks for customer credit card and debit card transactions; and vendors for various vendor funding programs. We establish allowances for uncollectible receivables based on historical collection trends and write-off history. Our allowances for uncollectible receivables were $49 million and $59 million at January 30, 2016 , and January 31, 2015 , respectively. |
Merchandise Inventories | Merchandise Inventories Merchandise inventories are recorded at the lower of cost, using the average cost, or market. In-bound freight-related costs from our vendors are included as part of the net cost of merchandise inventories. Also included in the cost of inventory are certain vendor allowances that are not a reimbursement of specific, incremental and identifiable costs to promote a vendor's products. Other costs associated with acquiring, storing and transporting merchandise inventories to our retail stores are expensed as incurred and included in cost of goods sold. Our inventory valuation reflects adjustments for anticipated physical inventory losses (e.g., theft) that have occurred since the last physical inventory. Physical inventory counts are taken on a regular basis to ensure that the inventory reported in our consolidated financial statements is properly stated. Our inventory valuation also reflects markdowns for the excess of the cost over the amount we expect to realize from the ultimate sale or other disposal of the inventory. Markdowns establish a new cost basis for our inventory. Subsequent changes in facts or circumstances do not result in the reversal of previously recorded markdowns or an increase in the newly established cost basis. |
Restricted Assets | Restricted Assets Restricted cash totaled $185 million at January 30, 2016 and is included in other current assets. Restricted cash totaled $292 million at January 31, 2015 , of which $184 million is related to continuing operations and included in other current assets and $108 million is included in current assets held for sale in our Consolidated Balance Sheet. Such balances are pledged as collateral or restricted to use for general liability insurance and workers' compensation insurance. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost. We compute depreciation using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are depreciated over the shorter of their estimated useful lives or the period from the date the assets are placed in service to the end of the lease term, which includes optional renewal periods if they are reasonably assured. Accelerated depreciation methods are generally used for income tax purposes. When property is retired or otherwise disposed of, the cost and accumulated depreciation are removed from our Consolidated Balance Sheets and any resulting gain or loss is reflected in our Consolidated Statements of Earnings. Repairs and maintenance costs are charged directly to expense as incurred. Major renewals or replacements that substantially extend the useful life of an asset are capitalized and depreciated. Costs associated with the acquisition or development of software for internal use are capitalized and amortized over the expected useful life of the software, generally from three to seven years. A subsequent addition, modification or upgrade to internal-use software is capitalized to the extent that it enhances the software's functionality or extends its useful life. Capitalized software is included in fixtures and equipment. Software maintenance and training costs are expensed in the period incurred. Property under capital and financing leases is comprised of buildings and equipment used in our operations. The related depreciation for capital and financing leases assets is included in depreciation expense. The carrying value of property under capital and financing leases was $165 million and $44 million at January 30, 2016 , and January 31, 2015 , respectively, net of accumulated depreciation of $107 million and $75 million , respectively. Estimated useful lives by major asset category are as follows: Asset Life (in years) Buildings 35 Leasehold improvements 3-25 Fixtures and equipment 3-20 Property under capital and financing leases 2-20 |
Impairment of Long-Lived Assets and Costs Associated with Exit Activities | Impairment of Long-Lived Assets and Costs Associated With Exit Activities Long-lived assets are evaluated for impairment whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. Factors considered important that could result in an impairment review include, but are not limited to, significant under-performance relative to historical or planned operating results, significant changes in the manner of use or expected life of the assets, or significant changes in our business strategies. An impairment loss is recognized when the estimated undiscounted cash flows expected to result from the use of the asset plus net proceeds expected from the disposition of the asset (if any) are less than the carrying value of the asset net of other liabilities. When an impairment loss is recognized, the carrying amount of the asset is reduced to its estimated fair value using valuation techniques such as discounted cash flow analysis. When reviewing long-lived assets for impairment, we group long-lived assets with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. For example, long-lived assets deployed at store locations are reviewed for impairment at the individual store level, which involves comparing the carrying value of all land, buildings, leasehold improvements, fixtures and equipment located at each store to the net cash flow projections for each store. In addition, we conduct separate impairment reviews at other levels as appropriate, for example, to evaluate potential impairment of assets shared by several areas of operations, such as information technology systems. Refer to Note 3, Fair Value Measurements , for further information associated with the long-lived assets impairments, including valuation techniques used, impairment charges incurred, and remaining carrying values. The present value of costs associated with vacated properties, primarily future lease costs (net of expected sublease income), are charged to earnings when we cease using the property. We accelerate depreciation on property and equipment we expect to retire when a decision is made to abandon a property. At January 30, 2016 , and January 31, 2015 , the obligation associated with vacant properties included in accrued liabilities in our Consolidated Balance Sheets was $44 million and $26 million , respectively, and the obligation associated with vacant properties included in long-term liabilities in our Consolidated Balance Sheets was $54 million and $43 million , respectively. The obligation associated with vacant properties at January 30, 2016 , and January 31, 2015 , included amounts associated with our restructuring activities as further described in Note 4, Restructuring Charges . |
Leases | Leases We conduct the majority of our retail and distribution operations from leased locations. The leases generally require payment of real estate taxes, insurance and common area maintenance, in addition to rent. The terms of our new lease agreements for large-format stores are generally less than 10 years, although we have existing leases with terms up to 20 years. Small-format stores generally have lease terms that are half the length of large-format stores. Most of the leases contain renewal options and escalation clauses, and certain store leases require contingent rents based on factors such as specified percentages of revenue or the consumer price index. For leases that contain predetermined fixed escalations of the minimum rent, we recognize the related rent expense on a straight-line basis from the date we take possession of the property to the end of the initial lease term. We record any difference between the straight-line rent amounts and amounts payable under the leases as part of deferred rent, in accrued liabilities or long-term liabilities, as appropriate. Cash or lease incentives received upon entering into certain store leases ("tenant allowances") are recognized on a straight-line basis as a reduction to rent from the date we take possession of the property through the end of the initial lease term. We record the unamortized portion of tenant allowances as a part of deferred rent, in accrued liabilities or long-term liabilities, as appropriate. At January 30, 2016 , and January 31, 2015 , deferred rent included in accrued liabilities in our Consolidated Balance Sheets was $36 million and $31 million , respectively, and deferred rent included in long-term liabilities in our Consolidated Balance Sheets was $139 million and $195 million , respectively. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. We test goodwill for impairment annually, as of the first day of the fiscal fourth quarter, or when indications of potential impairment exist. We monitor the existence of potential impairment indicators throughout the fiscal year. We test for goodwill impairment at the reporting unit level and our reporting units are the components of operating segments which constitute businesses for which discrete financial information is available and is regularly reviewed by segment management. No components were aggregated in arriving at our reporting units. Our only reporting unit with a goodwill balance at the beginning of fiscal 2016 was our Domestic segment. Our detailed impairment testing involves comparing the fair value of each reporting unit to its carrying value, including goodwill. Fair value reflects the price a market participant would be willing to pay in a potential sale of the reporting unit and is based on discounted cash flows or relative market-based approaches. If the fair value exceeds carrying value, then it is concluded that no goodwill impairment has occurred. If the carrying value of the reporting unit exceeds its fair value, a second step is required to measure possible goodwill impairment loss. The second step includes hypothetically valuing the tangible and intangible assets and liabilities of the reporting unit as if the reporting unit had been acquired in a business combination. Then, the implied fair value of the reporting unit's goodwill is compared to the carrying value of that goodwill. If the carrying value of the reporting unit's goodwill exceeds the implied fair value of the goodwill, we recognize an impairment loss in an amount equal to the excess, not to exceed the carrying value. No goodwill impairment was recorded in fiscal 2015. In fiscal 2016, we determined that the fair value of the Best Buy Domestic reporting unit exceeded its carrying value, and as a result, no goodwill impairment was recorded in fiscal 2016. Tradenames We include our tradenames and customer relationships within intangibles, net in our Consolidated Balance Sheets. We have an indefinite-lived tradename related to Pacific Sales included within our Domestic segment. As of the end of fiscal 2016, we have no indefinite-lived tradenames within our International segment. Our valuation of identifiable intangible assets acquired is based on information and assumptions available to us at the time of acquisition, using income and market approaches to determine fair value. We do not amortize our indefinite-lived tradenames, but test for impairment annually, or when indications of potential impairment exist. We utilize the relief from royalty method to determine the fair value of each of our indefinite-lived tradenames. If the carrying value exceeds the fair value, we recognize an impairment loss in an amount equal to the excess. As a part of the Canada brand restructuring, we fully impaired the indefinite-lived Future Shop tradename during fiscal 2016. Refer to Note 4, Restructuring Charges , for additional information. No other impairments were identified during fiscal 2016. The changes in the carrying amount of goodwill and indefinite-lived tradenames by segment were as follows in fiscal 2016 , 2015 and 2014 ($ in millions): Goodwill Indefinite-Lived Tradenames Domestic International Total Domestic International Total Balances at February 2, 2013 $ 528 $ — $ 528 $ 19 $ 112 $ 131 Sale of business (1) (103 ) — (103 ) — (22 ) (22 ) Impairments — — — — (4 ) (4 ) Changes in foreign currency exchange rates — — — — (4 ) (4 ) Balances at February 1, 2014 425 — 425 19 82 101 Sale of business (2) — — — (37 ) (37 ) Impairments — — — (1 ) — (1 ) Changes in foreign currency exchange rates — — — — (6 ) (6 ) Balances at January 31, 2015 425 — 425 18 39 57 Canada brand restructuring (3) — — — — (40 ) (40 ) Changes in foreign currency exchange rates — — — — 1 1 Balances at January 30, 2016 $ 425 $ — $ 425 $ 18 $ — $ 18 (1) Represents goodwill written off as a result of the sale of mindSHIFT in fiscal 2014 and indefinite-lived tradenames written off as a result of the sale of Best Buy Europe in fiscal 2014. (2) Primarily represents the Five Star indefinite-lived tradenames classified as held for sale at January 31, 2015. (3) Represents the Future Shop tradename impaired as a result of the Canada brand restructuring in the first quarter of fiscal 2016. See Note 4, Restructuring Charges , for further discussion. The following table provides the gross carrying amount of goodwill and cumulative goodwill impairment losses ($ in millions): January 30, 2016 January 31, 2015 Gross Carrying Amount Cumulative Impairment Gross Carrying Amount (1) Cumulative Impairment (1) Goodwill $ 1,100 $ (675 ) $ 1,100 $ (675 ) (1) Excludes the gross carrying amount and cumulative impairment related to Five Star, which was held for sale at the end of fiscal 2015. The sale of Five Star was completed on February 13, 2015. |
Insurance | Insurance We are self-insured for certain losses related to health, workers' compensation and general liability claims; however, we obtain third-party insurance coverage to limit our exposure to these claims. A portion of these self-insured losses are managed through a wholly-owned insurance captive. We estimate our self-insured liabilities using a number of factors, including historical claims experience, an estimate of incurred but not reported claims, demographic and severity factors, and valuations provided by independent third-party actuaries. Our self-insured liabilities included in the Consolidated Balance Sheets were as follows ($ in millions): January 30, 2016 January 31, 2015 Accrued liabilities $ 62 $ 60 Long-term liabilities 54 53 Total $ 116 $ 113 |
Income Taxes | Income Taxes We account for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss and tax credit carry-forwards. We record a valuation allowance to reduce the carrying amounts of deferred tax assets if it is more likely than not that such assets will not be realized. In determining our provision for income taxes, we use an annual effective income tax rate based on annual income, permanent differences between book and tax income, and statutory income tax rates. The effective income tax rate also reflects our assessment of the ultimate outcome of tax audits. We adjust our annual effective income tax rate as additional information on outcomes or events becomes available. Discrete events, such as audit settlements or changes in tax laws, are recognized in the period in which they occur. Our income tax returns are periodically audited by U.S. federal, state and local and foreign tax authorities. At any one time, multiple tax years are subject to audit by the various tax authorities. In evaluating the tax benefits associated with our various tax filing positions, we record a tax benefit for uncertain tax positions using the highest cumulative tax benefit that is more likely than not to be realized. A number of years may elapse before a particular matter, for which we have established a liability, is audited and effectively settled. We adjust our liability for unrecognized tax benefits in the period in which we determine the issue is effectively settled with the tax authorities, the statute of limitations expires for the relevant taxing authority to examine the tax position or when more information becomes available. We include our liability for unrecognized tax benefits, including accrued penalties and interest, in accrued income taxes and long-term liabilities on our Consolidated Balance Sheets and in income tax expense in our Consolidated Statements of Earnings. |
Accrued Liabilities | Accrued Liabilities The major components of accrued liabilities at January 30, 2016 , and January 31, 2015 , were state and local tax liabilities, rent-related liabilities including accrued real estate taxes, loyalty program liabilities and self-insurance reserves. |
Long-Term Liabilities | Long-Term Liabilities The major components of long-term liabilities at January 30, 2016 , and January 31, 2015 , were unrecognized tax benefits, rent-related liabilities, deferred compensation plan liabilities, self-insurance reserves and deferred revenue. |
Foreign Currency | Foreign Currency Foreign currency denominated assets and liabilities are translated into U.S. dollars using the exchange rates in effect at our consolidated balance sheet date. For operations reported on a one -month lag, we use the exchange rates in effect one month prior to our consolidated balance sheet date. Results of operations and cash flows are translated using the average exchange rates throughout the period. The effect of exchange rate fluctuations on the translation of assets and liabilities is included as a component of shareholders' equity in accumulated other comprehensive income. Gains and losses from foreign currency transactions, which are included in SG&A, have not been significant in any of the periods presented. |
Revenue Recognition | Revenue Recognition We recognize revenue when the sales price is fixed or determinable, collection is reasonably assured and the customer takes possession of the merchandise, or in the case of services, the service has been provided. Revenue excludes sales taxes collected. Revenue from merchandise sales and services is reported net of sales returns, which includes an estimate of future returns based on historical return rates, with a corresponding reduction to cost of sales. Our sales returns reserve, which represents the estimated gross margin impact of returns, was $25 million and $25 million at January 30, 2016 , and January 31, 2015 , respectively. For revenue transactions that involve multiple deliverables, we defer the revenue associated with any undelivered elements. The amount of revenue deferred in connection with the undelivered elements is determined using the relative fair value of each element, which is generally based on each element's relative retail price. Our deferred revenues primarily relate to merchandise not yet delivered to customers, services not yet completed and technical support contracts not yet completed. At January 30, 2016 , short-term deferred revenue was $357 million . At January 31, 2015 , short-term deferred revenue was $376 million , of which $50 million is included in current liabilities held for sale in relation to the sale of Five Star. At January 30, 2016 , and January 31, 2015 , deferred revenue included within long-term liabilities in our Consolidated Balance Sheets was $45 million and $49 million , respectively. Merchandise revenue Revenue is recognized for store sales when the customer receives and pays for merchandise. In the case of items paid for in store but subsequently delivered to the customer, revenue is recognized once delivery has been completed. For transactions initiated online, customers choose whether to collect merchandise from one of our stores (“in-store pick up”) or have it delivered to them (typically using third party parcel delivery companies). For in-store pick up, we recognize revenue once the customer has taken possession of merchandise. For items delivered directly to the customer, we recognize revenue when delivery has been completed. Any fees charged to customers for delivery are also recognized when delivery has been completed. Services Revenue related to consultation, design, installation, set-up, repair and educational classes are recognized once the service is complete. We sell various protection plans with extended warranty coverage for merchandise and technical support to assist customers in using their devices. Such plans have terms typically ranging from one month to five years. For extended warranty protection, third party insurers assume all risk associated with the coverage and are deemed to be the legal obligor. We record the net commissions we receive (the amount charged to the customer less the amount remitted to the insurer) as revenue when the corresponding merchandise revenue is recognized. For technical support contracts, we assume responsibility for fulfilling the support to customers and we recognize the associated revenue either on a straight-line basis over the life of the contracts, or, if sufficient history is available, on a consumption basis. Credit card revenue We offer promotional financing and credit cards issued by third-party banks that manage and directly extend credit to our customers. The banks are the sole owners of the accounts receivable generated under the program and accordingly, we do not hold any consumer receivables related to these programs. We are eligible to receive a profit share from our banking partners based on the performance of the programs. We record such profit share as revenue once the portfolio period to which it relates is complete and we have sufficient evidence to estimate the amount. Gift cards We sell gift cards to our customers in our retail stores, online and through select third parties. We do not charge administrative fees on unused gift cards and our gift cards do not have an expiration date. We recognize revenue from gift cards when: (i) the gift card is redeemed by the customer, or (ii) the likelihood of the gift card being redeemed by the customer is remote ("gift card breakage"), and we determine that we do not have a legal obligation to remit the value of unredeemed gift cards to the relevant jurisdictions. We determine our gift card breakage rate based upon historical redemption patterns. Based on our historical information, the likelihood of a gift card remaining unredeemed can be determined 24 months after the gift card is issued. Gift card breakage income is included in revenue in our Consolidated Statements of Earnings. Gift card breakage income was $65 million , $19 million and $53 million in fiscal 2016 , 2015 and 2014 , respectively. Sales Incentives We frequently offer sales incentives that entitle our customers to receive a gift card at time of purchase or a reduction in the price of a product or service either at the point of sale or by submitting a claim for a refund (for example coupons, rebates, etc.). For sales incentives issued to the customer in conjunction with a sale of merchandise or services, the reduction in revenue is recognized at the time of sale, based on the expected retail value of the incentive expected to be redeemed. Customer Loyalty Programs We have customer loyalty programs which allow members to earn points for each qualifying purchase. Points earned enable members to receive a certificate that may be redeemed on future purchases at our Best Buy branded stores. Depending on the customer's membership level within our loyalty program, certificates expirations typically range from 2 to 12 months from the date of issuance. The retail value of points earned by our loyalty program members is included in accrued liabilities and recorded as a reduction of revenue at the time the points are earned, based on the percentage of points that are projected to be redeemed. We recognize revenue when: (i) a certificate is redeemed by the customer; (ii) a certificate expires, or (iii) the likelihood of a certificate being redeemed by a customer is remote ("certificate breakage"). We determine our certificate breakage rate based upon historical redemption patterns. |
Cost of Goods Sold | Cost of Goods Sold and Selling, General and Administrative Expenses The following table illustrates the primary costs classified in each major expense category: Cost of Goods Sold • Total cost of products sold including: — Freight expenses associated with moving merchandise inventories from our vendors to our distribution centers; — Vendor allowances that are not a reimbursement of specific, incremental and identifiable costs; and — Cash discounts on payments to merchandise vendors; • Cost of services provided including: — Payroll and benefits costs for services employees; and — Cost of replacement parts and related freight expenses; • Physical inventory losses; • Markdowns; • Customer shipping and handling expenses; • Costs associated with operating our distribution network, including payroll and benefit costs, occupancy costs and depreciation; and • Freight expenses associated with moving merchandise inventories from our distribution centers to our retail stores. SG&A • Payroll and benefit costs for retail and corporate employees; • Occupancy and maintenance costs of retail, services and corporate facilities; • Depreciation and amortization related to retail, services and corporate assets; • Advertising costs; • Vendor allowances that are a reimbursement of specific, incremental and identifiable costs to promote a vendor's products; • Tender costs, including bank charges and costs associated with credit and debit card interchange fees; • Charitable contributions; • Outside and outsourced service fees; • Long-lived asset impairment charges; and • Other administrative costs, such as supplies, travel and lodging. |
Selling, General and Administrative Expenses | Cost of Goods Sold and Selling, General and Administrative Expenses The following table illustrates the primary costs classified in each major expense category: Cost of Goods Sold • Total cost of products sold including: — Freight expenses associated with moving merchandise inventories from our vendors to our distribution centers; — Vendor allowances that are not a reimbursement of specific, incremental and identifiable costs; and — Cash discounts on payments to merchandise vendors; • Cost of services provided including: — Payroll and benefits costs for services employees; and — Cost of replacement parts and related freight expenses; • Physical inventory losses; • Markdowns; • Customer shipping and handling expenses; • Costs associated with operating our distribution network, including payroll and benefit costs, occupancy costs and depreciation; and • Freight expenses associated with moving merchandise inventories from our distribution centers to our retail stores. SG&A • Payroll and benefit costs for retail and corporate employees; • Occupancy and maintenance costs of retail, services and corporate facilities; • Depreciation and amortization related to retail, services and corporate assets; • Advertising costs; • Vendor allowances that are a reimbursement of specific, incremental and identifiable costs to promote a vendor's products; • Tender costs, including bank charges and costs associated with credit and debit card interchange fees; • Charitable contributions; • Outside and outsourced service fees; • Long-lived asset impairment charges; and • Other administrative costs, such as supplies, travel and lodging. |
Vendor Allowances | Vendor Allowances We receive allowances from certain vendors through a variety of programs and arrangements intended to offset our costs of promoting and selling merchandise inventories. Vendor allowances are primarily in the form of receipt-based funds or sell-through credits. Receipt-based funds are generally determined at an agreed percentage of purchases and are initially deferred and recorded as a reduction of merchandise inventories. The deferred amounts are then included as a reduction of cost of goods sold when the related product is sold. Sell-through credits are generally determined at an agreed percentage of sales and are recognized when the related product is sold. Vendor allowances provided as a reimbursement of specific, incremental and identifiable costs, such as specialized store labor or training costs, are included in SG&A as an expense reduction when the cost is incurred. |
Advertising Costs | Advertising Costs Advertising costs, which are included in SG&A, are expensed the first time the advertisement runs. Advertising costs consist primarily of digital, print and television advertisements, as well as promotional events. Advertising expenses were $742 million , $711 million and $757 million in fiscal 2016 , 2015 and 2014 , respectively. |
Stock-Based Compensation | Stock-Based Compensation We apply the fair value recognition provisions of accounting guidance as they relate to our stock-based compensation, which require us to recognize expense for the fair value of our stock-based compensation awards. We recognize compensation expense on a straight-line basis over the requisite service period of the award (or to an employee's eligible retirement date, if earlier). |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |
Jan. 30, 2016 | Jan. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | ||
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following table reconciles the balance sheet line items impacted by the adoption of these two standards for fiscal 2015: Balance Sheet 2015 Reported ASU 2015-03 & 2015-15 Adjustments ASU 2015-17 Adjustments 2015 Adjusted Other current assets $ 703 $ (2 ) $ (252 ) $ 449 Current assets held for sale 684 — (3 ) 681 Other assets 583 (6 ) 252 829 Total assets $ 15,256 $ (8 ) $ (3 ) $ 15,245 Long-term debt $ 1,580 $ (8 ) $ — $ 1,572 Long-term liabilities held for sale 18 — (3 ) 15 Total liabilities & equity $ 15,256 $ (8 ) $ (3 ) $ 15,245 | |
Schedule of estimated useful lives by major asset category | Estimated useful lives by major asset category are as follows: Asset Life (in years) Buildings 35 Leasehold improvements 3-25 Fixtures and equipment 3-20 Property under capital and financing leases 2-20 | |
Schedule of changes in carrying amount of goodwill and indefinite lived tradenames by segment | The changes in the carrying amount of goodwill and indefinite-lived tradenames by segment were as follows in fiscal 2016 , 2015 and 2014 ($ in millions): Goodwill Indefinite-Lived Tradenames Domestic International Total Domestic International Total Balances at February 2, 2013 $ 528 $ — $ 528 $ 19 $ 112 $ 131 Sale of business (1) (103 ) — (103 ) — (22 ) (22 ) Impairments — — — — (4 ) (4 ) Changes in foreign currency exchange rates — — — — (4 ) (4 ) Balances at February 1, 2014 425 — 425 19 82 101 Sale of business (2) — — — (37 ) (37 ) Impairments — — — (1 ) — (1 ) Changes in foreign currency exchange rates — — — — (6 ) (6 ) Balances at January 31, 2015 425 — 425 18 39 57 Canada brand restructuring (3) — — — — (40 ) (40 ) Changes in foreign currency exchange rates — — — — 1 1 Balances at January 30, 2016 $ 425 $ — $ 425 $ 18 $ — $ 18 (1) Represents goodwill written off as a result of the sale of mindSHIFT in fiscal 2014 and indefinite-lived tradenames written off as a result of the sale of Best Buy Europe in fiscal 2014. (2) Primarily represents the Five Star indefinite-lived tradenames classified as held for sale at January 31, 2015. (3) Represents the Future Shop tradename impaired as a result of the Canada brand restructuring in the first quarter of fiscal 2016. See Note 4, Restructuring Charges , for further discussion. | |
Schedule of goodwill | January 30, 2016 January 31, 2015 Gross Carrying Amount Cumulative Impairment Gross Carrying Amount (1) Cumulative Impairment (1) Goodwill $ 1,100 $ (675 ) $ 1,100 $ (675 ) (1) Excludes the gross carrying amount and cumulative impairment related to Five Star, which was held for sale at the end of fiscal 2015. The sale of Five Star was completed on February 13, 2015. | |
Schedule of self insurance liability | Our self-insured liabilities included in the Consolidated Balance Sheets were as follows ($ in millions): January 30, 2016 January 31, 2015 Accrued liabilities $ 62 $ 60 Long-term liabilities 54 53 Total $ 116 $ 113 | |
Schedule of primary costs, classified in each major expense category | The following table illustrates the primary costs classified in each major expense category: Cost of Goods Sold • Total cost of products sold including: — Freight expenses associated with moving merchandise inventories from our vendors to our distribution centers; — Vendor allowances that are not a reimbursement of specific, incremental and identifiable costs; and — Cash discounts on payments to merchandise vendors; • Cost of services provided including: — Payroll and benefits costs for services employees; and — Cost of replacement parts and related freight expenses; • Physical inventory losses; • Markdowns; • Customer shipping and handling expenses; • Costs associated with operating our distribution network, including payroll and benefit costs, occupancy costs and depreciation; and • Freight expenses associated with moving merchandise inventories from our distribution centers to our retail stores. SG&A • Payroll and benefit costs for retail and corporate employees; • Occupancy and maintenance costs of retail, services and corporate facilities; • Depreciation and amortization related to retail, services and corporate assets; • Advertising costs; • Vendor allowances that are a reimbursement of specific, incremental and identifiable costs to promote a vendor's products; • Tender costs, including bank charges and costs associated with credit and debit card interchange fees; • Charitable contributions; • Outside and outsourced service fees; • Long-lived asset impairment charges; and • Other administrative costs, such as supplies, travel and lodging. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Schedule of Assets and Liabilities Held-for-Sale [Table Text Block] | The composition of assets and liabilities disposed of as a result of the sale of Five Star was as follows ($ in millions): February 13, 2015 Cash and cash equivalents $ 125 Receivables 113 Merchandise inventories 252 All other assets 461 Total assets $ 951 Accounts payable $ 478 All other liabilities 128 Total liabilities $ 606 |
Disposal Groups, Including Discontinued Operations [Table Text Block] | The aggregate financial results of all discontinued operations for fiscal 2016 , 2015 and 2014 were as follows ($ in millions): 2016 2015 2014 Revenue $ 217 $ 1,564 $ 4,615 Restructuring charges (1) 1 18 110 Loss from discontinued operations before income tax benefit (expense) (2) (8 ) (12 ) (235 ) Income tax benefit (expense) (3) (1 ) — 31 Gain on sale of discontinued operations (4) 99 1 32 Net earnings (loss) from discontinued operations including noncontrolling interests 90 (11 ) (172 ) Net (earnings) loss from discontinued operations attributable to noncontrolling interests — (2 ) 9 Net earnings (loss) from discontinued operations attributable to Best Buy Co., Inc. shareholders $ 90 $ (13 ) $ (163 ) (1) See Note 4, Restructuring Charges , for further discussion of the restructuring charges associated with discontinued operations. (2) Includes a $175 million impairment to write down the book value of our investment in Best Buy Europe to fair value in fiscal 2014. (3) Income tax benefit for fiscal 2014 includes a $27 million benefit related to a tax allocation between continuing and discontinued operations and a $15 million benefit related to the impairment of our investment in Best Buy Europe. The fiscal 2014 effective tax rate for discontinued operations differs from the statutory tax rate primarily due to the previously mentioned tax allocation, sale of mindSHIFT, restructuring charges and the impairment of our investment in Best Buy Europe. The sale of mindSHIFT, restructuring charges and impairment generally included no related tax benefit. The deferred tax assets related to the sale of mindSHIFT and restructuring charges generally resulted in an increase in the valuation allowance in an equal amount, of which the investment impairment is not tax deductible. (4) Gain in fiscal 2014 is primarily comprised of the following: $28 million gain (with no tax impact) from sale of Best Buy Europe fixed-line business in Switzerland in the first quarter; $24 million gain (with no tax impact) from the sale of Best Buy Europe in the second quarter; and loss of $18 million from sale of mindSHIFT in the fourth quarter. Gain in fiscal 2016 of $99 million is from sale of Five Star in the first quarter. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair value, assets and liabilities measured on recurring basis | The following table sets forth by level within the fair value hierarchy, our financial assets and liabilities that were accounted for at fair value on a recurring basis at January 30, 2016 , and January 31, 2015 , according to the valuation techniques we used to determine their fair values ($ in millions): Fair Value at Fair Value Hierarchy January 30, 2016 January 31, 2015 Assets Cash and cash equivalents Money market funds Level 1 $ 51 $ 265 Corporate bonds Level 2 — 13 Commercial paper Level 2 265 165 Time deposits Level 2 306 100 Short-term investments Corporate bonds Level 2 193 276 Commercial paper Level 2 122 306 Time deposits Level 2 990 874 Other current assets Foreign currency derivative instruments Level 2 18 30 Time deposits Level 2 79 83 Other assets Interest rate swap derivative instruments Level 2 25 1 Auction rate securities Level 3 2 2 Marketable securities that fund deferred compensation Level 1 96 97 Assets held for sale Cash and cash equivalents Money market funds Level 1 — 16 Time deposits Level 2 — 124 Liabilities Accrued Liabilities Foreign currency derivative instruments Level 2 1 — |
Fair value, assets and liabilities measured on nonrecurring basis, fair value remeasurements (impairments) | The following table summarizes the fair value remeasurements for non-restructuring property and equipment impairments and restructuring activities recorded in fiscal 2016 and 2015 ($ in millions): 2016 2015 Impairments Remaining Net Carrying Value (1) Impairments Remaining Net Carrying Value (1) Continuing operations Property and equipment (non-restructuring) $ 61 $ 15 $ 42 $ 19 Restructuring activities (2) Property and equipment 30 — 1 — Tradename 40 — — — Total $ 131 $ 15 $ 43 $ 19 Discontinued operations (3) Property and equipment $ — $ — $ 1 $ — Total $ — $ — $ 1 $ — (1) Remaining net carrying value approximates fair value. (2) See Note 4, Restructuring Charges , for additional information. (3) Property and equipment and tradename impairments associated with discontinued operations are recorded within loss from discontinued operations in our Consolidated Statements of Earnings. |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Restructuring Cost and Reserve [Line Items] | |
Composition of restructuring charges | Restructuring charges incurred in fiscal 2016 , 2015 , and 2014 were as follows ($ in millions): 2016 2015 2014 Continuing operations Canadian brand consolidation $ 200 $ — $ — Renew Blue (2 ) 11 155 Other restructuring activities (1) 3 (6 ) (6 ) Total continuing operations 201 5 149 Discontinued operations Renew Blue — 18 10 Other restructuring activities (2) — — 100 Total $ 201 $ 23 $ 259 |
Restructuring Program Canadian Brand Consolidation [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring accrual activity | The following tables summarize our restructuring accrual activity during the fiscal 2016 , related to termination benefits and facility closure and other costs associated with Canadian brand consolidation ($ in millions): Termination Benefits Facility Closure and Other Costs Total Balances at January 31, 2015 $ — $ — $ — Charges 28 113 141 Cash payments (24 ) (47 ) (71 ) Adjustments (1) (2 ) 5 3 Changes in foreign currency exchange rates — (7 ) (7 ) Balances at January 30, 2016 $ 2 $ 64 $ 66 (1) The adjustments related to termination benefits relate to higher-than-expected employee retention. Adjustments to facility closure and other costs represent changes in sublease assumptions. |
Composition of restructuring charges | The composition of total restructuring charges we incurred for the Canadian brand consolidation in fiscal 2016 was as follows ($ in millions): International Continuing operations Inventory write-downs $ 3 Property and equipment impairments 30 Tradename impairment 40 Termination benefits 25 Facility closure and other costs 102 Total continuing operations $ 200 |
Restructuring Program 2013 Renew Blue [Member] [Domain] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring accrual activity | The following table summarizes our restructuring accrual activity during fiscal 2016 and 2015 related to termination benefits and facility closure and other costs associated with this program ($ in millions): Termination Benefits Facility Closure and Other Costs Total Balance at February 1, 2014 $ 111 $ 51 $ 162 Charges 47 16 63 Cash payments (121 ) (22 ) (143 ) Adjustments (1) (21 ) (14 ) (35 ) Changes in foreign currency exchange rates — (8 ) (8 ) Balance at January 31, 2015 16 23 39 Charges — — — Cash payments (7 ) (9 ) (16 ) Adjustments (1) (7 ) (5 ) (12 ) Changes in foreign currency exchange rates — 1 1 Balance at January 30, 2016 $ 2 $ 10 $ 12 |
Composition of restructuring charges | The composition of the restructuring charges we incurred for this program in fiscal 2016 , 2015 and 2014 , as well as the cumulative amount incurred through the end of fiscal 2016 , was as follows ($ in millions): Domestic International Total 2016 2015 2014 Cumulative Amount 2016 2015 2014 Cumulative Amount 2016 2015 2014 Cumulative Amount Continuing operations Inventory write-downs $ — $ — $ — $ 1 $ — $ — $ — $ — $ — $ — $ — $ 1 Property and equipment impairments — — 7 14 — 1 1 25 — 1 8 39 Termination benefits (2 ) 9 106 159 — 5 24 38 (2 ) 14 130 197 Investment impairments — — 16 43 — — — — — — 16 43 Facility closure and other costs 1 1 — 5 (1 ) (5 ) 1 50 — (4 ) 1 55 Total continuing operations (1 ) 10 129 222 (1 ) 1 26 113 (2 ) 11 155 335 Discontinued Operations Property and equipment impairments — — — — — — 1 1 — — 1 1 Termination benefits — — — — — 12 4 16 — 12 4 16 Facility closure and other costs — — — — — 6 5 11 — 6 5 11 Total discontinued operations — — — — — 18 10 28 — 18 10 28 Total $ (1 ) $ 10 $ 129 $ 222 $ (1 ) $ 19 $ 36 $ 141 $ (2 ) $ 29 $ 165 $ 363 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Long-term debt consisted of the following ($ in millions): January 30, 2016 January 31, 2015 2016 Notes $ 350 $ 350 2018 Notes 500 500 2021 Notes 650 650 Interest rate swap valuation adjustments 25 1 Other debt — 1 Subtotal 1,525 1,502 Debt discounts and issuance costs (7 ) (10 ) Financing lease obligations 178 69 Capital lease obligations 38 52 Total long-term debt 1,734 1,613 Less: current portion (395 ) (41 ) Total long-term debt, less current portion $ 1,339 $ 1,572 |
Schedule of future maturities of long-term debt, including capitalized leases | At January 30, 2016 , the future maturities of long-term debt, excluding debt discounts and issuance costs and financing and capital lease obligations (see Note 8, Leases , for the future lease obligation maturities), consisted of the following ($ in millions): Fiscal Year 2017 $ 350 2018 — 2019 517 2020 — 2021 — Thereafter 658 Total long-term debt $ 1,525 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The following table presents the gross fair values for outstanding derivative instruments and the corresponding classification at January 30, 2016 and January 31, 2015 : January 30, 2016 January 31, 2015 Contract Type Assets Liabilities Assets Liabilities Derivatives designated as net investment hedges (1) $ 15 $ 1 $ 19 $ — Derivatives designated as interest rate swaps (2) 25 — 1 — No hedge designation (foreign exchange forward contracts) (1) 3 — 11 — Total $ 43 $ 1 $ 31 $ — (1) The fair value is recorded in other current assets or accrued liabilities. (2) The fair value is recorded in other assets or long-term liabilities |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block] | The following table presents the effects of derivative instruments on Other Comprehensive Income ("OCI") and on our Consolidated Statements of Earnings for fiscal 2016 and 2015 : 2016 2015 Contract Type Pre-tax Gain(Loss) Recognized in OCI Gain(Loss) Reclassified from Accumulated OCI to Earnings (Effective Portion) Pre-tax Gain(Loss) Recognized in OCI Gain(Loss) Reclassified from Accumulated OCI to Earnings (Effective Portion) Derivatives designated as net investment hedges $ 21 $ — $ 22 $ — |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] | The following table presents the effects of derivatives not designated as hedging instruments on our consolidated statements of earnings for fiscal 2016 and 2015 : Gain (Loss) Recognized within SG&A Contract Type 2016 2015 No hedge designation (foreign exchange forward contracts) $ 4 $ 12 |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | The following table presents the notional amounts of our derivative instruments at January 30, 2016 and January 31, 2015 : Notional Amount Contract Type January 30, 2016 January 31, 2015 Derivatives designated as net investment hedges 208 197 Derivatives designated as interest rate swaps 750 145 No hedge designation (foreign exchange forward contracts) 94 212 Total 1,052 554 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Equity [Abstract] | |
Stock-based compensation expense | Stock-based compensation expense was as follows in fiscal 2016 , 2015 and 2014 ($ in millions): 2016 2015 2014 Stock options $ 15 $ 17 $ 25 Share awards Market-based 16 10 9 Time-based 73 60 62 Employee stock purchase plans — — 1 Total $ 104 $ 87 $ 97 |
Stock option activity | Stock option activity was as follows in fiscal 2016 : Stock Options Weighted-Average Exercise Price per Share Weighted-Average Remaining Contractual Term (in years) Aggregate (in millions) Outstanding at January 31, 2015 17,342,000 $ 36.81 Granted 1,267,000 $ 40.68 Exercised (1,432,000 ) $ 28.24 Forfeited/Canceled (2,935,000 ) $ 44.15 Outstanding at January 30, 2016 14,242,000 $ 36.51 4.7 $ 20 Vested or expected to vest at January 30, 2016 13,986,000 $ 36.47 4.6 $ 20 Exercisable at January 30, 2016 11,668,000 $ 37.09 3.8 $ 18 |
Assumption used to estimate the fair value of stock option on the date of grant using a lattice or Black Scholes model | In fiscal 2016 , 2015 and 2014 , we estimated the fair value of each stock option on the date of grant using a lattice or Black Scholes valuation model (for certain individuals) with the following assumptions: Valuation Assumptions (1) 2016 2015 2014 Risk-free interest rate (2) 0.1% – 2.1% 0.1% – 2.4% 0.1% – 1.8% Expected dividend yield 2.3 % 2.5 % 2.0 % Expected stock price volatility (3) 37 % 40 % 46 % Expected life of stock options (in years) (4) 6.0 6.0 5.9 (1) Forfeitures are estimated using historical experience and projected employee turnover. (2) Based on the U.S. Treasury constant maturity interest rate whose term is consistent with the expected life of our stock options. (3) In projecting expected stock price volatility, we consider both the historical volatility of our stock price as well as implied volatilities from exchange-traded options on our stock. (4) We estimate the expected life of stock options based upon historical experience. |
Summary of the status of nonvested market-based share awards | A summary of the status of our nonvested market-based share awards at January 30, 2016 , and changes during fiscal 2016 , is as follows: Market-Based Share Awards Shares Weighted-Average Fair Value per Share Outstanding at January 31, 2015 1,704,000 $ 24.16 Granted 758,000 $ 31.48 Vested (914,000 ) $ 16.73 Forfeited/Canceled (86,000 ) $ 28.85 Outstanding at January 30, 2016 1,462,000 $ 32.33 |
Summary of the status of nonvested time-based share awards | A summary of the status of our nonvested time-based share awards at January 30, 2016 , and changes during fiscal 2016 , is as follows: Time-Based Share Awards Shares Weighted-Average Fair Value per Share Outstanding at January 31, 2015 5,543,000 $ 24.40 Granted 2,683,000 $ 38.72 Vested (2,503,000 ) $ 23.10 Forfeited/Canceled (620,000 ) $ 29.98 Outstanding at January 30, 2016 5,103,000 $ 31.89 |
Summary of stock options outstanding | At January 30, 2016 , options to purchase 14.2 million shares of common stock were outstanding as follows (shares in millions): Exercisable Unexercisable Total Shares % Weighted- Average Price per Share Shares % Weighted- Average Price per Share Shares % Weighted- Average Price per Share In-the-money 4.2 36 % $ 24.73 1.3 52 % $ 27.45 5.5 39 % $ 25.37 Out-of-the-money 7.5 64 % $ 44.15 1.2 48 % $ 40.51 8.7 61 % $ 43.62 Total 11.7 100 % $ 37.09 2.5 100 % $ 33.87 14.2 100 % $ 36.51 |
Reconciliation of the numerators and denominators of basic and diluted earnings per share | The following table presents a reconciliation of the numerators and denominators of basic and diluted earnings per share from continuing operations attributable to Best Buy Co., Inc. in fiscal 2016 , 2015 and 2014 ($, except per share amounts, and shares in millions): 2016 2015 2014 Numerator (in millions): Net earnings from continuing operations attributable to Best Buy Co., Inc., shareholders $ 807 $ 1,246 $ 695 Denominator (in millions): Weighted-average common shares outstanding 346.5 349.5 342.1 Effect of potentially dilutive securities: Stock options and other 4.2 4.1 5.5 Weighted-average common shares outstanding, assuming dilution 350.7 353.6 347.6 Net earnings per share from continuing operations attributable to Best Buy Co., Inc. shareholders Basic $ 2.33 $ 3.57 $ 2.03 Diluted $ 2.30 $ 3.53 $ 2.00 |
Repurchases of common stock | The following table presents information regarding the shares we repurchased and retired in fiscal 2016 , noting that we had no repurchases and retirements in fiscal 2015 and 2014 ($, except per share amounts, and shares in millions): 2016 Total cost of shares repurchased Open market $ 880 January 2016 ASR 120 Total $ 1,000 Average price per share Open market $ 31.03 January 2016 ASR $ 27.28 Average $ 30.53 Number of shares repurchased and retired Open market 28.4 January 2016 ASR 4.4 Total 32.8 |
Components of accumulated other comprehensive income, net of tax | The following table provides a reconciliation of the components of accumulated other comprehensive income, net of tax, attributable to Best Buy Co., Inc. shareholders for fiscal 2016 , 2015 , and 2014 , respectively ($ in millions): Foreign Currency Translation Available-For-Sale Investments Total Balances at February 2, 2013 $ 113 $ (1 ) $ 112 Foreign currency translation adjustments (136 ) — (136 ) Unrealized gains on available-for-sale investments — 7 7 Reclassification of foreign currency translation adjustments into earnings due to sale of business 508 — 508 Reclassification of losses on available-for-sale investments into earnings — 1 1 Balances at February 1, 2014 $ 485 $ 7 $ 492 Foreign currency translation adjustments (103 ) — (103 ) Unrealized losses on available-for-sale investments — (3 ) (3 ) Reclassification of gains on available-for-sale investments into earnings — (4 ) (4 ) Balances at January 31, 2015 $ 382 $ — $ 382 Foreign currency translation adjustments (44 ) — (44 ) Reclassification of foreign currency translation adjustments into earnings (67 ) — (67 ) Balances at January 30, 2016 $ 271 $ — $ 271 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Leases [Abstract] | |
Schedule of composition of net rent expense for operating leases, including leases of property and equipment | The composition of net rent expense for all operating leases, including leases of property and equipment, was as follows in fiscal 2016 , 2015 and 2014 ($ in millions): 2016 2015 2014 Minimum rentals $ 797 $ 848 $ 864 Contingent rentals 1 2 2 Total rent expense 798 850 866 Less: sublease income (15 ) (18 ) (18 ) Net rent expense $ 783 $ 832 $ 848 |
Schedule of future minimum lease payments under capital, financing and operating leases (not including contingent rentals) | The future minimum lease payments under our capital, financing and operating leases by fiscal year (not including contingent rentals) at January 30, 2016 , were as follows ($ in millions): Fiscal Year Capital Leases Financing Leases Operating Leases (1) 2017 $ 14 $ 42 $ 813 2018 9 35 708 2019 6 29 572 2020 3 23 439 2021 2 17 310 Thereafter 12 66 521 Total minimum lease payments 46 212 $ 3,363 Less amount representing interest (8 ) (34 ) Present value of minimum lease payments 38 178 Less current maturities (12 ) (33 ) Present value of minimum lease maturities, less current maturities $ 26 $ 145 (1) Operating lease obligations do not include payments to landlords covering real estate taxes and common area maintenance. These charges, if included, would increase total operating lease obligations by $1.1 billion at January 30, 2016 . |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of the federal statutory income tax rate to income tax expense | The following is a reconciliation of the federal statutory income tax rate to income tax expense in fiscal 2016 , 2015 and 2014 ($ in millions): 2016 2015 2014 Federal income tax at the statutory rate $ 458 $ 485 $ 379 State income taxes, net of federal benefit 38 43 26 (Benefit) expense from foreign operations 5 (23 ) (23 ) Other 2 (11 ) 6 Legal entity reorganization — (353 ) — Income tax expense $ 503 $ 141 $ 388 Effective income tax rate 38.4 % 10.1 % 35.8 % |
Earning before income tax expense and equity in income (loss) of affiliates | Earnings from continuing operations before income tax expense by jurisdiction was as follows in fiscal 2016 , 2015 and 2014 ($ in millions): 2016 2015 2014 United States $ 1,310 $ 1,201 $ 699 Outside the United States — 186 384 Earnings from continuing operations before income tax expense $ 1,310 $ 1,387 $ 1,083 |
Components of income tax expense | Income tax expense was comprised of the following in fiscal 2016 , 2015 and 2014 ($ in millions): 2016 2015 2014 Current: Federal $ 347 $ 354 $ 305 State 48 51 46 Foreign 60 33 55 455 438 406 Deferred: Federal 65 (275 ) (22 ) State 10 (26 ) 1 Foreign (27 ) 4 3 48 (297 ) (18 ) Income tax expense $ 503 $ 141 $ 388 |
Deferred income tax assets and liabilities | 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 ($ in millions): January 30, 2016 January 31, 2015 Accrued property expenses $ 175 $ 129 Other accrued expenses 78 91 Deferred revenue 99 93 Compensation and benefits 99 103 Stock-based compensation 86 94 Goodwill and intangibles 253 287 Loss and credit carryforwards 133 156 Other 86 88 Total deferred tax assets 1,009 1,041 Valuation allowance (108 ) (143 ) Total deferred tax assets after valuation allowance 901 898 Property and equipment (296 ) (251 ) Inventory (69 ) (54 ) Other (26 ) (27 ) Total deferred tax liabilities (391 ) (332 ) Net deferred tax assets $ 510 $ 566 |
Schedule of deferred tax assets and liabilities included in consolidated balance sheets | Deferred tax assets and liabilities included in our Consolidated Balance Sheets were as follows ($ in millions): January 30, 2016 January 31, 2015 Other assets $ 510 $ 574 Long-term liabilities held for sale — (8 ) Net deferred tax assets $ 510 $ 566 |
Reconciliation of changes in unrecognized tax benefits | The following table provides a reconciliation of changes in unrecognized tax benefits for fiscal 2016 , 2015 and 2014 ($ in millions): 2016 2015 2014 Balance at beginning of period $ 410 $ 370 $ 383 Gross increases related to prior period tax positions 30 33 38 Gross decreases related to prior period tax positions (13 ) (88 ) (67 ) Gross increases related to current period tax positions 59 114 34 Settlements with taxing authorities (9 ) (9 ) (3 ) Lapse of statute of limitations (8 ) (10 ) (15 ) Balance at end of period $ 469 $ 410 $ 370 |
Segment and Geographic Informat
Segment and Geographic Information (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Segment Reporting [Abstract] | |
Business segment information | The following tables present our business segment information in fiscal 2016 , 2015 and 2014 ($ in millions): 2016 2015 2014 Revenue Domestic $ 36,365 $ 36,055 $ 35,831 International 3,163 4,284 4,780 Total revenue $ 39,528 $ 40,339 $ 40,611 Percentage of revenue, by revenue category Domestic: Consumer Electronics 32 % 31 % 30 % Computing and Mobile Phones 46 % 47 % 48 % Entertainment 8 % 9 % 8 % Appliances 8 % 7 % 7 % Services 5 % 5 % 6 % Other 1 % 1 % 1 % Total 100 % 100 % 100 % International: Consumer Electronics 31 % 30 % 29 % Computing and Mobile Phones 48 % 49 % 50 % Entertainment 9 % 9 % 10 % Appliances 5 % 5 % 5 % Services 6 % 6 % 6 % Other 1 % 1 % < 1% Total 100 % 100 % 100 % Operating income (loss) Domestic $ 1,585 $ 1,437 $ 1,145 International (210 ) 13 (1 ) Total operating income 1,375 1,450 1,144 Other income (expense) Gain on sale of investments 2 13 20 Investment income and other 13 14 19 Interest expense (80 ) (90 ) (100 ) Earnings from continuing operations before income tax expense $ 1,310 $ 1,387 $ 1,083 Assets (1)(2) Domestic $ 12,318 $ 12,987 $ 11,123 International 1,201 2,258 2,867 Total assets $ 13,519 $ 15,245 $ 13,990 Capital expenditures (2) Domestic $ 602 $ 519 $ 440 International 47 42 107 Total capital expenditures $ 649 $ 561 $ 547 Depreciation (2) Domestic $ 613 $ 575 $ 565 International 44 81 136 Total depreciation $ 657 $ 656 $ 701 (1) For fiscal 2015 and 2014, assets are recast to present our retrospective adoption of ASU 2015-17 Balance Sheet Classification of Deferred Taxes, ASU 2015-03 Simplifying the Presentation of Debt Issuance Costs, and ASU 2015-15 Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. Refer to Note 1, Summary of Significant Accounting Policies , of the Notes to Consolidated Financial Statements, included in Item 8, Financial Statements and Supplementary Data , of this Annual Report on Form 10-K for further information about our credit facilities. (2) For fiscal 2015 and 2014, the International segment amounts for assets, capital expenditures and depreciation include amounts from Five Star. |
Schedule of geographic information | The following table presents our geographic information in fiscal 2016 , 2015 and 2014 ($ in millions): 2016 2015 2014 Net sales to customers United States $ 36,365 $ 36,055 $ 35,831 Canada 2,917 4,047 4,522 Other 246 237 258 Total revenue $ 39,528 $ 40,339 $ 40,611 Long-lived assets United States $ 2,189 $ 2,100 $ 2,190 Canada 140 174 244 China — — 139 Other 17 21 25 Total long-lived assets $ 2,346 $ 2,295 $ 2,598 |
Supplementary Financial Infor36
Supplementary Financial Information (Unaudited) (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of supplementary financial information | The following tables show selected operating results for each 3-month quarter and full year of fiscal 2016 and 2015 (unaudited) ($ in millions): Quarter 12-Month 1st 2nd 3rd 4th 2016 Revenue $ 8,558 $ 8,528 $ 8,819 $ 13,623 $ 39,528 Comparable sales % change (1) 0.6 % 3.8 % 0.8 % (1.7 )% 0.5 % Comparable sales % gain (decline), excluding estimated impact of installment billing (5) (0.7 )% 2.7 % 0.5 % (1.8 )% (0.1 )% Gross profit $ 2,030 $ 2,098 $ 2,112 $ 2,951 $ 9,191 Operating income (2) 86 288 230 771 1,375 Net earnings from continuing operations 37 164 129 477 807 Gain (loss) from discontinued operations, net of tax 92 — (4 ) 2 90 Net earnings including noncontrolling interests 129 164 125 479 897 Net earnings attributable to Best Buy Co., Inc. shareholders 129 164 125 479 897 Diluted earnings (loss) per share (3) Continuing operations $ 0.10 $ 0.46 $ 0.37 $ 1.39 $ 2.30 Discontinued operations 0.26 — (0.01 ) 0.01 0.26 Diluted earnings per share $ 0.36 $ 0.46 $ 0.36 $ 1.40 $ 2.56 Quarter 12-Month 1st 2nd 3rd 4th 2015 Revenue $ 8,639 $ 8,459 $ 9,032 $ 14,209 $ 40,339 Comparable sales % gain (decline) (1) (1.8 )% (2.2 )% 2.9 % 2.0 % 0.5 % Comparable sales % gain (decline), excluding estimated impact of installment billing (5)(6) (1.8 )% (2.2 )% 2.2 % 1.3 % — % Gross profit $ 1,967 $ 1,978 $ 2,076 $ 3,026 $ 9,047 Operating income (4) 210 225 205 810 1,450 Net earnings from continuing operations 469 137 116 524 1,246 Gain (loss) from discontinued operations, net of tax (8 ) 10 (9 ) (4 ) (11 ) Net earnings including noncontrolling interests 461 147 107 520 1,235 Net earnings attributable to Best Buy Co., Inc. shareholders 461 146 107 519 1,233 Diluted earnings (loss) per share (3) Continuing operations $ 1.33 $ 0.39 $ 0.33 $ 1.47 $ 3.53 Discontinued operations (0.02 ) 0.03 (0.03 ) (0.01 ) (0.04 ) Diluted earnings per share $ 1.31 $ 0.42 $ 0.30 $ 1.46 $ 3.49 (1) Our comparable sales calculation compares revenue from stores, websites and call centers operating for at least 14 full months, as well as revenue related to certain other comparable sales channels for a particular period to a corresponding period in the prior year. Relocated, as well as remodeled, expanded and downsized stores closed more than 14 days, are excluded from our comparable sales calculation until at least 14 full months after reopening. Acquisitions are included in the comparable sales calculation beginning with the first full quarter following the first anniversary of the date of the acquisition. The portion of the calculation of comparable sales attributable to our International segment excludes the effect of fluctuations in foreign currency exchange rates. The calculation of comparable sales excludes the impact of revenue from discontinued operations. Comparable online sales are included in our comparable sales calculation. The method of calculating comparable sales varies across the retail industry. As a result, our method of calculating comparable sales may not be the same as other retailers' methods. (2) Includes $186 million , $(4) million , $7 million and $12 million of restructuring charges recorded in the fiscal first, second, third and fourth quarters, respectively, and $201 million for the 12 months ended January 30, 2016 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 differences in quarterly and annual weighted-average shares outstanding. (4) Includes $2 million , $5 million , $5 million and $(7) million of restructuring charges recorded in the fiscal first, second, third and fourth quarters, respectively, and $5 million for the 12 months ended January 31, 2015 related to measures we took to restructure our businesses. (5) Represents comparable sales excluding the estimated revenue of installment billing. (6) Enterprise comparable sales for fiscal 2015 include revenue from continuing operations in the International segment. Excluding the International segment, Enterprise comparable sales, excluding the impact of installment billing, would have been (1.3%) in the first quarter, 2.0% in the second quarter, 2.4% in the third quarter, 0.5% in the fourth quarter and 0.5% for fiscal 2015, or equal to Domestic comparable sales excluding the impact of installment billing, for the same periods. |
Summary of Significant Accoun37
Summary of Significant Accounting Policies - Discontinued Operations (Details) | Feb. 28, 2009 |
Best Buy Europe [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Business Acquisition, Percentage of Voting Interests Acquired | 50.00% |
Summary of Significant Accoun38
Summary of Significant Accounting Policies - Description of Business (Details) | 12 Months Ended |
Jan. 30, 2016segments | |
Accounting Policies [Abstract] | |
Number of Operating Segments | 2 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies - Basis of Presentation (Details) | 12 Months Ended | |
Jan. 30, 2016 | Jan. 31, 2015 | |
Accounting Policies [Abstract] | ||
Period of Expiration for Customer Loyalty Certificates, High End of Range | 12 months | 12 months |
Reporting Lag for Certain Foreign Operations in Financial Statements | 1 month |
Summary of Significant Accoun40
Summary of Significant Accounting Policies - Fiscal Year (Details) | 12 Months Ended |
Jan. 30, 2016 | |
Fiscal Year [Abstract] | |
Number of Weeks in Fiscal Period | 52 |
Summary of Significant Accoun41
Summary of Significant Accounting Policies - Changes in accounting policies (Details) $ in Millions | 12 Months Ended |
Jan. 31, 2015USD ($) | |
Other Current Assets [Member] | As reported [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 703 |
Other Current Assets [Member] | Accounting Standards Update 2015-03 and 2015-15 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (2) |
Other Current Assets [Member] | Accounting Standards Update 2015-17 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (252) |
Other Current Assets [Member] | Adjusted Balance [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 449 |
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | As reported [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 684 |
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | Accounting Standards Update 2015-03 and 2015-15 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 0 |
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | Accounting Standards Update 2015-17 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (3) |
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | Adjusted Balance [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 681 |
Other Assets [Member] | As reported [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 583 |
Other Assets [Member] | Accounting Standards Update 2015-03 and 2015-15 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (6) |
Other Assets [Member] | Accounting Standards Update 2015-17 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 252 |
Other Assets [Member] | Adjusted Balance [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 829 |
Assets, Total [Member] | As reported [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 15,256 |
Assets, Total [Member] | Accounting Standards Update 2015-03 and 2015-15 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (8) |
Assets, Total [Member] | Accounting Standards Update 2015-17 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (3) |
Assets, Total [Member] | Adjusted Balance [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 15,245 |
Long-term Debt [Member] | As reported [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 1,580 |
Long-term Debt [Member] | Accounting Standards Update 2015-03 and 2015-15 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (8) |
Long-term Debt [Member] | Accounting Standards Update 2015-17 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 0 |
Long-term Debt [Member] | Adjusted Balance [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 1,572 |
Long-Term Liabilities Held-for-Sale [Member] | As reported [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 18 |
Long-Term Liabilities Held-for-Sale [Member] | Accounting Standards Update 2015-03 and 2015-15 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 0 |
Long-Term Liabilities Held-for-Sale [Member] | Accounting Standards Update 2015-17 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (3) |
Long-Term Liabilities Held-for-Sale [Member] | Adjusted Balance [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 15 |
Liabilities, Total [Member] | As reported [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 15,256 |
Liabilities, Total [Member] | Accounting Standards Update 2015-03 and 2015-15 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (8) |
Liabilities, Total [Member] | Accounting Standards Update 2015-17 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (3) |
Liabilities, Total [Member] | Adjusted Balance [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 15,245 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies - Cash & Cash Equivalents (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 30, 2016 | Jan. 31, 2015 | |
Accounting Policies [Abstract] | ||
Maximum Term of Original Maturity to Classify an Instrument as Cash Equivalents | 3 months | |
Cash Equivalents, at Carrying Value | $ 1,208 | $ 1,660 |
Weighted Average Interest Rate on Cash Equivalents | 0.50% | 0.40% |
Summary of Significant Accoun43
Summary of Significant Accounting Policies - Receivables (Details) - USD ($) $ in Millions | Jan. 30, 2016 | Jan. 31, 2015 |
Accounting Policies [Abstract] | ||
Valuation Allowances and Reserves, Balance | $ 49 | $ 59 |
Summary of Significant Accoun44
Summary of Significant Accounting Policies - Restricted Assets (Details) - USD ($) $ in Millions | Jan. 30, 2016 | Jan. 31, 2015 |
Accounting Policies [Abstract] | ||
Restricted Cash and Investments | $ 185 | $ 292 |
Restricted Cash and Investments, Continuing Operations | 184 | |
Restricted Cash and Investments, Held-for-Sale | $ 108 |
Summary of Significant Accoun45
Summary of Significant Accounting Policies - PP&E (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 31, 2015 | Jan. 30, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Capital Leases, Balance Sheet, Assets by Major Class, Net | $ 44 | $ 165 |
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation | $ 75 | $ 107 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 35 years | |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives, minimum (in years) | 3 years | |
Estimated useful lives, maximum (in years) | 25 years | |
Fixtures and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives, minimum (in years) | 3 years | |
Estimated useful lives, maximum (in years) | 20 years | |
Assets Held under Capital Leases [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives, minimum (in years) | 2 years | |
Estimated useful lives, maximum (in years) | 20 years |
Summary of Significant Accoun46
Summary of Significant Accounting Policies - Impairment of PPE & Exit Activities (Details) - USD ($) $ in Millions | Jan. 30, 2016 | Jan. 31, 2015 |
Accounting Policies [Abstract] | ||
Asset Retirement Obligation, Current | $ 44 | $ 26 |
Asset Retirement Obligations, Noncurrent | $ 54 | $ 43 |
Summary of Significant Accoun47
Summary of Significant Accounting Policies - Leases (Details) - USD ($) | 12 Months Ended | |
Jan. 30, 2016 | Jan. 31, 2015 | |
Accounting Policies [Abstract] | ||
Term of Lease Agreements, Low End of Range | 10 years | |
Term of Lease Agreements, High End of Range | 20 years | |
Deferred Rent Credit, Current | $ 36,000,000 | $ 31,000,000 |
Deferred Rent Credit, Noncurrent | 139,000,000 | 195,000,000 |
Financing Lease Obligations | $ 178,000,000 | $ 69,000,000 |
Summary of Significant Accoun48
Summary of Significant Accounting Policies - Goodwill & Indefinite Intangible (Details) - USD ($) $ in Millions | 12 Months Ended | |||||||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |||||
Goodwill [Roll Forward] | ||||||||
Goodwill, balance at the beginning of the period | $ 425 | |||||||
Goodwill, balance at the end of the period | 425 | $ 425 | ||||||
Indefinite-lived Intangible Assets [Roll Forward] | ||||||||
Goodwill, Gross | 1,100 | 1,100 | [1] | |||||
Cumulative Impairment | (675) | (675) | [1] | |||||
International [Member] | ||||||||
Goodwill [Roll Forward] | ||||||||
Goodwill written off related to sale of business | $ 0 | |||||||
Domestic Segment [Member] | ||||||||
Goodwill [Roll Forward] | ||||||||
Goodwill written off related to sale of business | [2] | (103) | ||||||
Indefinite-lived Intangible Assets [Roll Forward] | ||||||||
Intangible written off related to sale of business | 0 | |||||||
Total Operations [Member] | ||||||||
Goodwill [Roll Forward] | ||||||||
Goodwill, balance at the beginning of the period | 425 | 425 | 528 | |||||
Goodwill impairments | 0 | |||||||
Goodwill written off related to sale of business | 0 | (103) | [2] | |||||
Goodwill changes in foreign currency exchange rates | 0 | 0 | ||||||
Goodwill, balance at the end of the period | 425 | 425 | 425 | |||||
Goodwill, Other Changes | 0 | |||||||
Indefinite-lived Intangible Assets [Roll Forward] | ||||||||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 18 | 57 | 101 | $ 131 | ||||
Tradename, impairments | (40) | [3] | (1) | (4) | ||||
Intangible written off related to sale of business | (37) | [4] | (22) | [2] | ||||
Intangible changes in foreign currency exchange rates | 1 | (6) | ||||||
Indefinite-Lived Intangible Assets, Other | (4) | |||||||
Total Operations [Member] | International [Member] | ||||||||
Goodwill [Roll Forward] | ||||||||
Goodwill, balance at the beginning of the period | 0 | 0 | 0 | |||||
Goodwill acquisitions | 0 | |||||||
Goodwill impairments | 0 | 0 | 0 | |||||
Goodwill changes in foreign currency exchange rates | 0 | 0 | 0 | |||||
Goodwill, balance at the end of the period | 0 | 0 | 0 | |||||
Indefinite-lived Intangible Assets [Roll Forward] | ||||||||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 0 | 39 | 82 | 112 | ||||
Tradename, impairments | (40) | [3] | 0 | (4) | ||||
Intangible written off related to sale of business | (37) | [4] | (22) | [2] | ||||
Intangible changes in foreign currency exchange rates | 1 | (6) | (4) | |||||
Total Operations [Member] | Domestic Segment [Member] | ||||||||
Goodwill [Roll Forward] | ||||||||
Goodwill, balance at the beginning of the period | 425 | 425 | 528 | |||||
Goodwill impairments | 0 | 0 | 0 | |||||
Goodwill written off related to sale of business | 0 | |||||||
Goodwill changes in foreign currency exchange rates | 0 | 0 | 0 | |||||
Goodwill, balance at the end of the period | 425 | 425 | 425 | |||||
Indefinite-lived Intangible Assets [Roll Forward] | ||||||||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 18 | $ 18 | 19 | $ 19 | ||||
Intangible acquisitions | ||||||||
Tradename, impairments | 0 | $ (1) | 0 | |||||
Intangible changes in foreign currency exchange rates | $ 0 | $ 0 | $ 0 | |||||
[1] | Excludes the gross carrying amount and cumulative impairment related to Five Star, which was held for sale at the end of fiscal 2015. The sale of Five Star was completed on February 13, 2015. | |||||||
[2] | Represents goodwill written off as a result of the sale of mindSHIFT in fiscal 2014 and indefinite-lived tradenames written off as a result of the sale of Best Buy Europe in fiscal 2014. | |||||||
[3] | Represents the Future Shop tradename impaired as a result of the Canada brand restructuring in the first quarter of fiscal 2016. See Note 4, Restructuring Charges, for further discussion. | |||||||
[4] | Primarily represents the Five Star indefinite-lived tradenames classified as held for sale at January 31, 2015. |
Summary of Significant Accoun49
Summary of Significant Accounting Policies - Insurance (Details) - USD ($) $ in Millions | Jan. 30, 2016 | Jan. 31, 2015 |
Accounting Policies [Abstract] | ||
Self-insured liabilities included in accrued liabilities | $ 62 | $ 60 |
Self-insured liabilities included in long-term liabilities | 54 | 53 |
Self insurance reserve | $ 116 | $ 113 |
Summary of Significant Accoun50
Summary of Significant Accounting Policies - Foreign Currency (Details) | 12 Months Ended |
Jan. 30, 2016 | |
Accounting Policies [Abstract] | |
Prior Period Foreign Currency Exchange Rate, Used to Align Operations Reported | 1 month |
Summary of Significant Accoun51
Summary of Significant Accounting Policies - Revenue (Details) - USD ($) $ in Millions | Jan. 30, 2016 | Jan. 31, 2015 |
Accounting Policies [Abstract] | ||
Sales returns reserve | $ 25 | $ 25 |
Deferred revenue | 357 | 326 |
Deferred Revenue, Current, Including Held-for-Sale | 376 | |
Disposal Group, Including Discontinued Operation, Deferred Revenue, Current | 50 | |
Deferred revenue, noncurrent | $ 45 | $ 49 |
Summary of Significant Accoun52
Summary of Significant Accounting Policies - Gift Cards (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Accounting Policies [Abstract] | |||
Gift Card Redeemability, Determination Period | 24 months | ||
Gift card breakage income | $ 65 | $ 19 | $ 53 |
Summary of Significant Accoun53
Summary of Significant Accounting Policies - Customer Loyalty Programs (Details) | 12 Months Ended | |
Jan. 30, 2016 | Jan. 31, 2015 | |
Accounting Policies [Abstract] | ||
Period of Expiration for Customer Loyalty Certificates, Low End of Range | 2 months | 2 months |
Period of Expiration for Customer Loyalty Certificates, High End of Range | 12 months | 12 months |
Summary of Significant Accoun54
Summary of Significant Accounting Policies - Advertising Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Accounting Policies [Abstract] | |||
Advertising expense | $ 742 | $ 711 | $ 757 |
Discontinued Operations Discont
Discontinued Operations Discontinued Operations (Details) - USD ($) $ in Millions | Jan. 30, 2016 | Feb. 13, 2015 |
Discontinued Operations and Disposal Groups [Abstract] | ||
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment | $ 31 | |
Cash and cash equivalents | $ 125 | |
Receivables | 113 | |
Merchandise inventories | 252 | |
All other assets | 461 | |
Total assets | 951 | |
Accounts payable | 478 | |
All other liabilities | 128 | |
Total liabilities | $ 606 |
Discontinued Operations (Detail
Discontinued Operations (Details 2) £ in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Jan. 30, 2016USD ($) | Oct. 31, 2015USD ($) | Aug. 01, 2015USD ($) | May. 02, 2015USD ($) | Jan. 31, 2015USD ($) | Nov. 01, 2014USD ($) | Aug. 02, 2014USD ($) | May. 03, 2014USD ($) | Aug. 03, 2013USD ($) | Aug. 03, 2013GBP (£) | Jan. 30, 2016USD ($) | Jan. 31, 2015USD ($) | Jan. 31, 2015GBP (£) | Feb. 01, 2014USD ($) | Jan. 31, 2015GBP (£) | Feb. 28, 2009 | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||||
Proceeds from Divestiture of Businesses | $ 526 | £ 341 | ||||||||||||||||
Dollar Amount of Shares Received from Divestiture of Business | 123 | 80 | ||||||||||||||||
Future Cash Consideration from Divestiture of Business, Due within One Year | 39 | 25 | ||||||||||||||||
Future Cash Consideration from Divestiture of Business, Due within Two Years | $ 39 | £ 25 | ||||||||||||||||
Interest Rate on Future Cash Consideration from Divestiture of Business | 2.50% | 2.50% | ||||||||||||||||
Revenue | $ 217 | $ 1,564 | $ 4,615 | |||||||||||||||
Restructuring charges | [1] | 1 | 18 | 110 | ||||||||||||||
Gain (loss) from discontinued operations before income tax benefit | (8) | (12) | (235) | [2] | ||||||||||||||
Income tax benefit | (1) | 0 | 31 | [3] | ||||||||||||||
Gain on sale of discontinued operations | [4] | 99 | 1 | 32 | ||||||||||||||
Net gain (loss) from discontinued operations including noncontrolling interests | $ 2 | $ (4) | $ 0 | $ 92 | $ (4) | $ (9) | $ 10 | $ (8) | 90 | (11) | (172) | |||||||
Net (earnings) loss from discontinued operations attributable to noncontrolling interests | 0 | (2) | 9 | |||||||||||||||
Net gain (loss) from discontinued operations attributable to Best Buy Co., Inc. | 90 | (13) | (163) | |||||||||||||||
Income Tax Expense (Benefit), Intraperiod Tax Allocation | 27 | |||||||||||||||||
Other Tax Expense (Benefit) | 15 | |||||||||||||||||
Derivative, Notional Amount | $ 1,052 | $ 554 | 1,052 | 554 | ||||||||||||||
Net Proceeds from Divestiture of Businesses | £ | £ 471 | |||||||||||||||||
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $ (4) | (12) | ||||||||||||||||
Best Buy Europe [Member] | ||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||||
Gain on sale of discontinued operations | 24 | |||||||||||||||||
Best Buy Europe fixed line of Business in Switzerland [Member] | ||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||||
Gain on sale of discontinued operations | 28 | |||||||||||||||||
Domestic [Member] | mindSHIFT [Domain] | ||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||||
Gain on sale of discontinued operations | (18) | |||||||||||||||||
Best Buy Europe [Member] | ||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 50.00% | |||||||||||||||||
Discontinued Operations [Member] | ||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||||
Impairment of Long-Lived Assets to be Disposed of | $ 175 | |||||||||||||||||
Discontinued Operations [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||||
Derivative, Notional Amount | £ | £ 455 | |||||||||||||||||
Operating Expense [Member] | Discontinued Operations [Member] | ||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||||
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $ (2) | |||||||||||||||||
[1] | See Note 4, Restructuring Charges, for further discussion of the restructuring charges associated with discontinued operations. | |||||||||||||||||
[2] | Includes a $175 million impairment to write down the book value of our investment in Best Buy Europe to fair value in fiscal 2014. | |||||||||||||||||
[3] | Income tax benefit for fiscal 2014 includes a $27 million benefit related to a tax allocation between continuing and discontinued operations and a $15 million benefit related to the impairment of our investment in Best Buy Europe. The fiscal 2014 effective tax rate for discontinued operations differs from the statutory tax rate primarily due to the previously mentioned tax allocation, sale of mindSHIFT, restructuring charges and the impairment of our investment in Best Buy Europe. The sale of mindSHIFT, restructuring charges and impairment generally included no related tax benefit. The deferred tax assets related to the sale of mindSHIFT and restructuring charges generally resulted in an increase in the valuation allowance in an equal amount, of which the investment impairment is not tax deductible. | |||||||||||||||||
[4] | Gain in fiscal 2014 is primarily comprised of the following: $28 million gain (with no tax impact) from sale of Best Buy Europe fixed-line business in Switzerland in the first quarter; $24 million gain (with no tax impact) from the sale of Best Buy Europe in the second quarter; and loss of $18 million from sale of mindSHIFT in the fourth quarter. Gain in fiscal 2016 of $99 million is from sale of Five Star in the first quarter. |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions | Jan. 30, 2016 | Jan. 31, 2015 |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member] | ||
ASSETS | ||
Cash and cash equivalents | $ 51 | $ 265 |
Cash and Cash Equivalents, Held-for-sale, Fair Value Disclosure | 16 | |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate Bond Securities [Member] | ||
ASSETS | ||
Cash and cash equivalents | 13 | |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | Commercial Paper [Member] | ||
ASSETS | ||
Cash and cash equivalents | 265 | 165 |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | Bank Time Deposits [Member] | ||
ASSETS | ||
Cash and cash equivalents | 306 | 100 |
Cash and Cash Equivalents, Held-for-sale, Fair Value Disclosure | 124 | |
Short-term Investments [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate Bond Securities [Member] | ||
ASSETS | ||
Short-term investments | 193 | 276 |
Short-term Investments [Member] | Fair Value, Inputs, Level 2 [Member] | Commercial Paper [Member] | ||
ASSETS | ||
Short-term investments | 122 | 306 |
Short-term Investments [Member] | Fair Value, Inputs, Level 2 [Member] | Bank Time Deposits [Member] | ||
ASSETS | ||
Short-term investments | 990 | 874 |
Other Current Assets [Member] | Fair Value, Inputs, Level 2 [Member] | Bank Time Deposits [Member] | ||
ASSETS | ||
Other Current Assets, Fair Value Disclosure | 79 | 83 |
Other Current Assets [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign Exchange and Other Derivative Financial Instruments [Member] | ||
ASSETS | ||
Foreign currency derivative instruments | 18 | 30 |
Other Assets [Member] | Fair Value, Inputs, Level 1 [Member] | Marketable securities that fund deferred compensation [Member] | ||
ASSETS | ||
Marketable equity securities that fund deferred compensation | 96 | 97 |
Other Assets [Member] | Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member] | ||
ASSETS | ||
Other Assets, Fair Value Disclosure | 25 | 1 |
Other Assets [Member] | Fair Value, Inputs, Level 3 [Member] | Auction Rate Securities [Member] | ||
ASSETS | ||
Other Assets, Fair Value Disclosure | 2 | 2 |
Accrued Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign Exchange and Other Derivative Financial Instruments [Member] | ||
LIABILITIES | ||
Foreign Currency Contracts, Liability, Fair Value Disclosure | $ 1 | $ 0 |
Fair Value Measurements - Impai
Fair Value Measurements - Impairments (Details) - Fair Value, Measurements, Nonrecurring [Member] - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Millions | 12 Months Ended | ||||
Jan. 30, 2016 | Jan. 31, 2015 | ||||
Continuing Operations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Property and equipment, impairments | $ 61 | $ 42 | |||
Property and equipment, remaining net carrying value | [1] | 15 | 19 | ||
Restructuring, Settlement and Impairment Provisions | 131 | 43 | |||
Total remaining net carrying value | [1] | 15 | 19 | ||
Discontinued Operations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impairment of Long-Lived Assets Held-for-use | 0 | ||||
Property and equipment, impairments | 0 | 1 | [2] | ||
Property and equipment, remaining net carrying value | 0 | 0 | |||
Total remaining net carrying value | 0 | 0 | |||
Property and equipment write-downs [Member] | Continuing Operations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impairment of Long-Lived Assets Held-for-use | [3] | 30 | |||
Property and equipment, impairments | [3] | 1 | |||
Property and equipment, remaining net carrying value | 0 | 0 | |||
Investments Impairment Charge Related to Restructuring [Member] | Continuing Operations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Tradename, impairments | 40 | [3] | 0 | ||
Tradename, remaining net carrying value | $ 0 | $ 0 | |||
[1] | Remaining net carrying value approximates fair value. | ||||
[2] | Property and equipment and tradename impairments associated with discontinued operations are recorded within loss from discontinued operations in our Consolidated Statements of Earnings. | ||||
[3] | See Note 4, Restructuring Charges, for additional information. |
Restructuring Charges Summary (
Restructuring Charges Summary (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May. 02, 2015 | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | May. 03, 2014 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 28, 2009 | ||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Vacant Space Reserve | $ 18 | $ 18 | |||||||||||
Restructuring charges | 198 | $ 5 | $ 149 | ||||||||||
Restructuring charges | $ 12 | $ 7 | $ (4) | $ 186 | $ (7) | $ 5 | $ 5 | $ 2 | 201 | 23 | 259 | ||
Continuing Operations [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | 201 | 5 | 149 | ||||||||||
Restructuring charges | 201 | 5 | |||||||||||
Continuing Operations [Member] | Restructuring Program Canadian Brand Consolidation [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | 200 | ||||||||||||
Continuing Operations [Member] | Restructuring Program 2013 Renew Blue [Member] [Domain] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | (2) | 11 | 155 | ||||||||||
Continuing Operations [Member] | Other Restructuring [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | [1] | 3 | (6) | (6) | |||||||||
Continuing Operations [Member] | International [Member] | Restructuring Program Canadian Brand Consolidation [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | 200 | ||||||||||||
Restructuring charges | $ 200 | ||||||||||||
Discontinued Operations [Member] | Restructuring Program 2013 Renew Blue [Member] [Domain] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | $ 18 | 10 | |||||||||||
Discontinued Operations [Member] | Other Restructuring [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | [2] | $ 100 | |||||||||||
Best Buy Europe [Member] | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 50.00% | ||||||||||||
[1] | (1) Represents activity related to our remaining vacant space liability for U.S. large-format store closures in fiscal 2013. We may continue to incur immaterial adjustments to the liability for changes in sublease assumptions or potential lease buyouts. In addition, lease payments for vacated stores will continue until leases expire or are terminated. The remaining vacant space liability was $18 million at January 30, 2016. | ||||||||||||
[2] | (2) Activity primarily relates to our fiscal 2013 Best Buy Europe restructuring program, which is included in discontinued operations due to the sale of our 50% ownership interest in Best Buy Europe in fiscal 2014. Restructuring charges primarily consist of property and equipment impairments and employee termination benefits. |
Restructuring Charges Canadian
Restructuring Charges Canadian Brand Consolidation (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Jan. 30, 2016USD ($) | Oct. 31, 2015USD ($) | Aug. 01, 2015USD ($) | May. 02, 2015USD ($) | Jan. 31, 2015USD ($) | Nov. 01, 2014USD ($) | Aug. 02, 2014USD ($) | May. 03, 2014USD ($) | Jan. 30, 2016USD ($)store | Jan. 31, 2015USD ($) | Feb. 01, 2014USD ($) | ||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring charges | $ 198 | $ 5 | $ 149 | |||||||||
Restructuring charges | $ 12 | $ 7 | $ (4) | $ 186 | $ (7) | $ 5 | $ 5 | $ 2 | $ 201 | 23 | 259 | |
Restructuring Program Canadian Brand Consolidation [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Number of Stores to be Closed | store | 66 | |||||||||||
Payments for Restructuring | $ (71) | |||||||||||
Restructuring Reserve, Accrual Adjustment | [1] | 3 | ||||||||||
Restructuring Reserve, Translation Adjustment | (7) | |||||||||||
Restructuring Reserve | 66 | 0 | 66 | 0 | ||||||||
Restructuring Charges, Rollforward | $ 141 | |||||||||||
Number of Future Shop stores converted to Best Buy stores | store | 65 | |||||||||||
Employee Severance [Member] | Restructuring Program Canadian Brand Consolidation [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Payments for Restructuring | $ (24) | |||||||||||
Restructuring Reserve, Accrual Adjustment | [1] | (2) | ||||||||||
Restructuring Reserve, Translation Adjustment | 0 | |||||||||||
Restructuring Reserve | 2 | 2 | ||||||||||
Restructuring Charges, Rollforward | 28 | |||||||||||
Facility Closing [Member] | Restructuring Program Canadian Brand Consolidation [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Payments for Restructuring | (47) | |||||||||||
Restructuring Reserve, Accrual Adjustment | [1] | 5 | ||||||||||
Restructuring Reserve, Translation Adjustment | (7) | |||||||||||
Restructuring Reserve | $ 64 | $ 0 | 64 | 0 | ||||||||
Restructuring Charges, Rollforward | 113 | |||||||||||
Continuing Operations [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring charges | 201 | 5 | $ 149 | |||||||||
Restructuring charges | 201 | $ 5 | ||||||||||
Continuing Operations [Member] | Restructuring Program Canadian Brand Consolidation [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring charges | 200 | |||||||||||
Continuing Operations [Member] | International [Member] | Restructuring Program Canadian Brand Consolidation [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring charges | 200 | |||||||||||
Restructuring charges | 200 | |||||||||||
Continuing Operations [Member] | International [Member] | Inventory write-downs [Member] | Restructuring Program Canadian Brand Consolidation [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring charges | 3 | |||||||||||
Continuing Operations [Member] | International [Member] | Property and equipment write-downs [Member] | Restructuring Program Canadian Brand Consolidation [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring charges | 30 | |||||||||||
Continuing Operations [Member] | International [Member] | Tradename Impairment [Member] | Restructuring Program Canadian Brand Consolidation [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring charges | 40 | |||||||||||
Continuing Operations [Member] | International [Member] | Employee Severance [Member] | Restructuring Program Canadian Brand Consolidation [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring charges | 25 | |||||||||||
Continuing Operations [Member] | International [Member] | Facility Closing [Member] | Restructuring Program Canadian Brand Consolidation [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring charges | $ 102 | |||||||||||
[1] | (1) The adjustments related to termination benefits relate to higher-than-expected employee retention. Adjustments to facility closure and other costs represent changes in sublease assumptions. |
Restructuring Charges Renew Blu
Restructuring Charges Renew Blue Plan (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May. 02, 2015 | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | May. 03, 2014 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | ||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring charges | $ 198 | $ 5 | $ 149 | |||||||||
Restructuring charges | $ 12 | $ 7 | $ (4) | $ 186 | $ (7) | $ 5 | $ 5 | $ 2 | 201 | 23 | 259 | |
Continuing Operations [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring charges | 201 | 5 | 149 | |||||||||
Restructuring charges | 201 | 5 | ||||||||||
Restructuring Program 2013 Renew Blue [Member] [Domain] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring charges | (2) | 29 | ||||||||||
Restructuring and Related Cost, Cost Incurred to Date | 363 | 363 | ||||||||||
Restructuring charges | (2) | 29 | 165 | |||||||||
Restructuring Reserve | 12 | 39 | 12 | 39 | 162 | |||||||
Restructuring Charges, Rollforward | 0 | 63 | ||||||||||
Payments for Restructuring | (16) | (143) | ||||||||||
Restructuring Reserve, Accrual Adjustment | [1] | (12) | (35) | |||||||||
Restructuring Reserve, Translation Adjustment | 1 | |||||||||||
Restructuring Program 2013 Renew Blue [Member] [Domain] | Employee Severance [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring Reserve | 2 | 16 | 2 | 16 | 111 | |||||||
Restructuring Charges, Rollforward | 0 | 47 | ||||||||||
Payments for Restructuring | (7) | (121) | ||||||||||
Restructuring Reserve, Accrual Adjustment | [1] | (7) | (21) | |||||||||
Restructuring Reserve, Translation Adjustment | 0 | |||||||||||
Restructuring Program 2013 Renew Blue [Member] [Domain] | Facility Closing [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring Reserve | 10 | 23 | 10 | 23 | 51 | |||||||
Restructuring Charges, Rollforward | 0 | 16 | ||||||||||
Payments for Restructuring | (9) | (22) | ||||||||||
Restructuring Reserve, Accrual Adjustment | [1] | (5) | (14) | |||||||||
Restructuring Reserve, Translation Adjustment | 1 | |||||||||||
Restructuring Program 2013 Renew Blue [Member] [Domain] | Domestic Segment [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and Related Cost, Cost Incurred to Date | 222 | 222 | ||||||||||
Restructuring charges | (1) | 10 | 129 | |||||||||
Restructuring Program 2013 Renew Blue [Member] [Domain] | International [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring charges | (1) | 19 | ||||||||||
Restructuring and Related Cost, Cost Incurred to Date | 141 | 141 | ||||||||||
Restructuring charges | (1) | 19 | 36 | |||||||||
Restructuring Program 2013 Renew Blue [Member] [Domain] | Continuing Operations [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and Related Cost, Cost Incurred to Date | 335 | 335 | ||||||||||
Restructuring charges | (2) | 11 | 155 | |||||||||
Restructuring Program 2013 Renew Blue [Member] [Domain] | Continuing Operations [Member] | Inventory write-downs [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and Related Cost, Cost Incurred to Date | 1 | 1 | ||||||||||
Restructuring charges | 0 | |||||||||||
Restructuring Program 2013 Renew Blue [Member] [Domain] | Continuing Operations [Member] | Property and equipment write-downs [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and Related Cost, Cost Incurred to Date | 39 | 39 | ||||||||||
Restructuring charges | 0 | 1 | 8 | |||||||||
Restructuring Program 2013 Renew Blue [Member] [Domain] | Continuing Operations [Member] | Investments Impairment Charge Related to Restructuring [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and Related Cost, Cost Incurred to Date | 43 | 43 | ||||||||||
Restructuring charges | 0 | 0 | 16 | |||||||||
Restructuring Program 2013 Renew Blue [Member] [Domain] | Continuing Operations [Member] | Employee Severance [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and Related Cost, Cost Incurred to Date | 197 | 197 | ||||||||||
Restructuring charges | (2) | 14 | 130 | |||||||||
Restructuring Program 2013 Renew Blue [Member] [Domain] | Continuing Operations [Member] | Facility Closing [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and Related Cost, Cost Incurred to Date | 55 | 55 | ||||||||||
Restructuring charges | 0 | (4) | 1 | |||||||||
Restructuring Program 2013 Renew Blue [Member] [Domain] | Continuing Operations [Member] | Domestic Segment [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring charges | (1) | 10 | ||||||||||
Restructuring and Related Cost, Cost Incurred to Date | 222 | 222 | ||||||||||
Restructuring charges | (1) | 10 | 129 | |||||||||
Restructuring Program 2013 Renew Blue [Member] [Domain] | Continuing Operations [Member] | Domestic Segment [Member] | Inventory write-downs [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and Related Cost, Cost Incurred to Date | 1 | 1 | ||||||||||
Restructuring charges | 0 | 0 | ||||||||||
Restructuring Program 2013 Renew Blue [Member] [Domain] | Continuing Operations [Member] | Domestic Segment [Member] | Property and equipment write-downs [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and Related Cost, Cost Incurred to Date | 14 | 14 | ||||||||||
Restructuring charges | 0 | 7 | ||||||||||
Restructuring Program 2013 Renew Blue [Member] [Domain] | Continuing Operations [Member] | Domestic Segment [Member] | Investments Impairment Charge Related to Restructuring [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and Related Cost, Cost Incurred to Date | 43 | 43 | ||||||||||
Restructuring charges | 0 | 16 | ||||||||||
Restructuring Program 2013 Renew Blue [Member] [Domain] | Continuing Operations [Member] | Domestic Segment [Member] | Employee Severance [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and Related Cost, Cost Incurred to Date | 159 | 159 | ||||||||||
Restructuring charges | (2) | 9 | 106 | |||||||||
Restructuring Program 2013 Renew Blue [Member] [Domain] | Continuing Operations [Member] | Domestic Segment [Member] | Facility Closing [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and Related Cost, Cost Incurred to Date | 5 | 5 | ||||||||||
Restructuring charges | 1 | 1 | 0 | |||||||||
Restructuring Program 2013 Renew Blue [Member] [Domain] | Continuing Operations [Member] | International [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and Related Cost, Cost Incurred to Date | 113 | 113 | ||||||||||
Restructuring charges | (1) | 1 | 26 | |||||||||
Restructuring Program 2013 Renew Blue [Member] [Domain] | Continuing Operations [Member] | International [Member] | Inventory write-downs [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and Related Cost, Cost Incurred to Date | 0 | 0 | ||||||||||
Restructuring charges | 0 | |||||||||||
Restructuring Program 2013 Renew Blue [Member] [Domain] | Continuing Operations [Member] | International [Member] | Property and equipment write-downs [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and Related Cost, Cost Incurred to Date | 25 | 25 | ||||||||||
Restructuring charges | 0 | 1 | 1 | |||||||||
Restructuring Program 2013 Renew Blue [Member] [Domain] | Continuing Operations [Member] | International [Member] | Investments Impairment Charge Related to Restructuring [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and Related Cost, Cost Incurred to Date | 0 | 0 | ||||||||||
Restructuring charges | 0 | 0 | ||||||||||
Restructuring Program 2013 Renew Blue [Member] [Domain] | Continuing Operations [Member] | International [Member] | Employee Severance [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and Related Cost, Cost Incurred to Date | 38 | 38 | ||||||||||
Restructuring charges | 0 | 5 | 24 | |||||||||
Restructuring Program 2013 Renew Blue [Member] [Domain] | Continuing Operations [Member] | International [Member] | Facility Closing [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and Related Cost, Cost Incurred to Date | 50 | 50 | ||||||||||
Restructuring charges | (1) | (5) | 1 | |||||||||
Restructuring Program 2013 Renew Blue [Member] [Domain] | Discontinued Operations [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and Related Cost, Cost Incurred to Date | 28 | 28 | ||||||||||
Restructuring charges | 0 | 18 | 10 | |||||||||
Restructuring Program 2013 Renew Blue [Member] [Domain] | Discontinued Operations [Member] | Property and equipment write-downs [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and Related Cost, Cost Incurred to Date | 1 | 1 | ||||||||||
Restructuring charges | 0 | 1 | ||||||||||
Restructuring Program 2013 Renew Blue [Member] [Domain] | Discontinued Operations [Member] | Employee Severance [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and Related Cost, Cost Incurred to Date | 16 | 16 | ||||||||||
Restructuring charges | 0 | 12 | 4 | |||||||||
Restructuring Program 2013 Renew Blue [Member] [Domain] | Discontinued Operations [Member] | Facility Closing [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and Related Cost, Cost Incurred to Date | 11 | 11 | ||||||||||
Restructuring charges | 0 | 6 | 5 | |||||||||
Restructuring Program 2013 Renew Blue [Member] [Domain] | Discontinued Operations [Member] | Domestic Segment [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and Related Cost, Cost Incurred to Date | 0 | 0 | ||||||||||
Restructuring charges | 0 | 0 | 0 | |||||||||
Restructuring Program 2013 Renew Blue [Member] [Domain] | Discontinued Operations [Member] | International [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and Related Cost, Cost Incurred to Date | 28 | 28 | ||||||||||
Restructuring charges | 0 | 18 | 10 | |||||||||
Restructuring Program 2013 Renew Blue [Member] [Domain] | Discontinued Operations [Member] | International [Member] | Property and equipment write-downs [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and Related Cost, Cost Incurred to Date | 1 | 1 | ||||||||||
Restructuring charges | 0 | 1 | ||||||||||
Restructuring Program 2013 Renew Blue [Member] [Domain] | Discontinued Operations [Member] | International [Member] | Employee Severance [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and Related Cost, Cost Incurred to Date | 16 | 16 | ||||||||||
Restructuring charges | 0 | 12 | 4 | |||||||||
Restructuring Program 2013 Renew Blue [Member] [Domain] | Discontinued Operations [Member] | International [Member] | Facility Closing [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and Related Cost, Cost Incurred to Date | 11 | 11 | ||||||||||
Restructuring charges | 0 | 6 | 5 | |||||||||
Restructuring Program Canadian Brand Consolidation [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring Reserve | 66 | 0 | 66 | 0 | ||||||||
Restructuring Charges, Rollforward | 141 | |||||||||||
Payments for Restructuring | (71) | |||||||||||
Restructuring Reserve, Accrual Adjustment | [2] | (3) | ||||||||||
Restructuring Reserve, Translation Adjustment | (7) | |||||||||||
Restructuring Program Canadian Brand Consolidation [Member] | Employee Severance [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring Reserve | 2 | 2 | ||||||||||
Restructuring Charges, Rollforward | 28 | |||||||||||
Payments for Restructuring | (24) | |||||||||||
Restructuring Reserve, Accrual Adjustment | [2] | 2 | ||||||||||
Restructuring Reserve, Translation Adjustment | 0 | |||||||||||
Restructuring Program Canadian Brand Consolidation [Member] | Facility Closing [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring Reserve | $ 64 | $ 0 | 64 | 0 | ||||||||
Restructuring Charges, Rollforward | 113 | |||||||||||
Payments for Restructuring | (47) | |||||||||||
Restructuring Reserve, Accrual Adjustment | [2] | (5) | ||||||||||
Restructuring Reserve, Translation Adjustment | (7) | |||||||||||
Restructuring Program Canadian Brand Consolidation [Member] | Continuing Operations [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring charges | 200 | |||||||||||
Restructuring Program Canadian Brand Consolidation [Member] | Continuing Operations [Member] | International [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring charges | 200 | |||||||||||
Restructuring charges | 200 | |||||||||||
Restructuring Program Canadian Brand Consolidation [Member] | Continuing Operations [Member] | International [Member] | Inventory write-downs [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring charges | 3 | |||||||||||
Restructuring Program Canadian Brand Consolidation [Member] | Continuing Operations [Member] | International [Member] | Property and equipment write-downs [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring charges | 30 | |||||||||||
Restructuring Program Canadian Brand Consolidation [Member] | Continuing Operations [Member] | International [Member] | Tradename Impairment [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring charges | 40 | |||||||||||
Restructuring Program Canadian Brand Consolidation [Member] | Continuing Operations [Member] | International [Member] | Employee Severance [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring charges | 25 | |||||||||||
Restructuring Program Canadian Brand Consolidation [Member] | Continuing Operations [Member] | International [Member] | Facility Closing [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring charges | 102 | |||||||||||
Restructuring Program 2013 Renew Blue [Member] [Domain] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring Reserve, Translation Adjustment | (8) | |||||||||||
Restructuring Program 2013 Renew Blue [Member] [Domain] | Employee Severance [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring Reserve, Translation Adjustment | 0 | |||||||||||
Restructuring Program 2013 Renew Blue [Member] [Domain] | Facility Closing [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring Reserve, Translation Adjustment | (8) | |||||||||||
Restructuring Program 2013 Renew Blue [Member] [Domain] | Continuing Operations [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring charges | $ (2) | 11 | 155 | |||||||||
Restructuring Program 2013 Renew Blue [Member] [Domain] | Discontinued Operations [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring charges | $ 18 | $ 10 | ||||||||||
[1] | Adjustments to termination benefits were due to higher-than-expected employee retention. Adjustments to facility closure and other costs represent changes in sublease assumptions and reductions in our remaining lease obligations. | |||||||||||
[2] | (1) The adjustments related to termination benefits relate to higher-than-expected employee retention. Adjustments to facility closure and other costs represent changes in sublease assumptions. |
Debt - Short-Term Debt (Details
Debt - Short-Term Debt (Details) $ in Millions | Jan. 30, 2016USD ($) |
U.S. revolving credit facility [Member] | |
Short-term Debt | |
Line of credit facility, amount outstanding | $ 0 |
U.S. revolving credit facility - Five-Year [Member] | |
Short-term Debt | |
Line of Credit Facility, Previous Borrowing Capacity | 1,500 |
Line of credit facility, current borrowing capacity | $ 1,250 |
Debt instrument, basis spread on federal funds rate (as a percent) | 0.50% |
Debt instrument, basis spread on LIBOR (as a percent) | 1.00% |
Debt instrument, lower range on ABR (as a percent) | 0.00% |
Debt instrument, higher range on ABR (as a percent) | 0.925% |
LIBOR margin, low end of the range (as a percent) | 1.00% |
LIBOR margin, high end of the range (as a percent) | 1.925% |
Debt instrument, lower range on facility fee (as a percent) | 0.125% |
Debt instrument, higher range on facility fee (as a percent) | 0.325% |
Debt - Long-Term Debt (Details)
Debt - Long-Term Debt (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Jul. 31, 2013 | Mar. 31, 2011 | Jan. 30, 2016 | Jan. 31, 2015 | Jul. 16, 2013 | |
Long-term Debt. | |||||
Total long-term debt | $ 1,525,000,000 | $ 1,502,000,000 | |||
Financing Lease Obligations | 178,000,000 | 69,000,000 | |||
Long-term Debt and Capital Lease Obligations, Including Current Maturities | 1,734,000,000 | 1,613,000,000 | |||
Less: current portion | (395,000,000) | (41,000,000) | |||
Long-term Debt, Excluding Current Maturities | 1,339,000,000 | 1,572,000,000 | |||
Long-term debt, fair value | 1,543,000,000 | 1,494,000,000 | |||
Future maturities of long-term debt, including capitalized leases | |||||
2,017 | 350,000,000 | ||||
2,018 | 0 | ||||
2,019 | 517,000,000 | ||||
2,020 | 0 | ||||
2,021 | 0 | ||||
Thereafter | $ 658,000,000 | ||||
2016 and 2021 Notes [Member] | |||||
Long-term Debt. | |||||
Underwriting discounts | $ 6,000,000 | ||||
Net proceeds from the sale of the Notes | 990,000,000 | ||||
Redemption price, as percentage of principal amount of debt instrument (as a percent) | 100.00% | ||||
Redemption price upon control triggering event, percentage of principal amount (as a percent) | 101.00% | ||||
2016 Notes [Member] | |||||
Long-term Debt. | |||||
Total long-term debt | $ 350,000,000 | 350,000,000 | |||
Debt instrument issued, principal amount | 350,000,000 | ||||
Interest rate (as a percent) | 3.75% | ||||
Notes due 2018 [Member] | |||||
Long-term Debt. | |||||
Total long-term debt | $ 500,000,000 | 500,000,000 | |||
Debt instrument issued, principal amount | $ 500,000,000 | ||||
Interest rate (as a percent) | 5.00% | ||||
Underwriting discounts | $ 5,000,000 | ||||
Net proceeds from the sale of the Notes | $ 495,000,000 | ||||
Redemption price upon control triggering event, percentage of principal amount (as a percent) | 101.00% | ||||
2021 Notes [Member] | |||||
Long-term Debt. | |||||
Total long-term debt | $ 650,000,000 | 650,000,000 | |||
Debt instrument issued, principal amount | $ 650,000,000 | ||||
Interest rate (as a percent) | 5.50% | ||||
Interest Rate Swap [Member] | |||||
Long-term Debt. | |||||
Total long-term debt | $ 25,000,000 | 1,000,000 | |||
Capital Lease Obligations [Member] | |||||
Long-term Debt. | |||||
Total long-term debt | 38,000,000 | 52,000,000 | |||
Debt discounts and issuance costs [Member] | |||||
Long-term Debt. | |||||
Total long-term debt | (7,000,000) | (10,000,000) | |||
Other debt [Member] | |||||
Long-term Debt. | |||||
Total long-term debt | $ 0 | $ 1,000,000 | |||
Notes due 2018 [Member] | |||||
Long-term Debt. | |||||
Redemption price, as percentage of principal amount of debt instrument (as a percent) | 100.00% | ||||
Debt Instrument, Treasury Rate Basis Points for Redemption | 50 |
Derivative Instruments (Details
Derivative Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | ||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | $ 43 | $ 31 | |
Derivative Liability, Fair Value, Gross Liability | 1 | 0 | |
Derivative, Notional Amount | 1,052 | 554 | |
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | 4 | 12 | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax | 21 | 22 | |
Net Investment Hedging [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | [1] | 15 | 19 |
Derivative Liability, Fair Value, Gross Liability | [1] | 1 | |
Derivative, Notional Amount | 208 | 197 | |
Interest Rate Swap [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | [2] | 25 | 1 |
Derivative, Notional Amount | 750 | 145 | |
Foreign Exchange Forward [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | [1] | 3 | 11 |
Derivative Liability, Fair Value, Gross Liability | [1] | 0 | |
Derivative, Notional Amount | $ 94 | $ 212 | |
[1] | The fair value is recorded in other current assets or accrued liabilities | ||
[2] | The fair value is recorded in other assets or long-term liabilities |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 11 Months Ended | 12 Months Ended | |||
Feb. 02, 2013 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized under the Omnibus Plan (in shares) | 22,500,000 | ||||
Number of shares available for future grants under the Omnibus Plan (in shares) | 19,600,000 | ||||
Stock-based compensation expense (in dollars) | $ 104 | $ 87 | $ 97 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||
Outstanding at the beginning of the period (in shares) | 17,342,000 | ||||
Granted (in shares) | 1,267,000 | ||||
Exercised (in shares) | (1,432,000) | ||||
Forfeited/Canceled (in shares) | (2,935,000) | ||||
Outstanding at the end of the period (in shares) | 14,242,000 | 17,342,000 | |||
Vested or expected to vest at the end of the period (in shares) | 13,986,000 | ||||
Exercisable at the end of the period (in shares) | 11,668,000 | ||||
Weighted Average Exercise Price [Roll Forward] | |||||
Outstanding at the beginning of the period (in dollars per share) | $ 36.81 | ||||
Granted (in dollars per share) | 40.68 | ||||
Exercised (in dollars per share) | 28.24 | ||||
Forfeited/Canceled (in dollars per share) | 44.15 | ||||
Outstanding at the end of the period (in dollars per share) | 36.51 | $ 36.81 | |||
Vested or expected to vest at the end of the period (in dollars per share) | 36.47 | ||||
Exercisable at the end of the period (in dollars per share) | $ 37.09 | ||||
Weighted Average Remaining Contractual Term, Years [Abstract] | |||||
Outstanding at the end of the period (in years) | 4 years 8 months | ||||
Vested or expected to vest at the end of the period (in years) | 4 years 7 months | ||||
Exercisable at the end of the period (in years) | 3 years 10 months | ||||
Aggregate Intrinsic Value [Abstract] | |||||
Outstanding at the end of the period (in dollars) | $ 20 | ||||
Vested or expected to vest at the end of the period (in dollars) | 20 | ||||
Exercisable at the end of the period (in dollars) | $ 18 | ||||
Weighted-average grant-date fair value of stock options granted (in dollars per share) | $ 11.59 | $ 9.09 | $ 7.77 | ||
Aggregate intrinsic value of stock options exercised (in dollars) | $ 14 | $ 13 | $ 39 | ||
Net cash proceeds from the exercise of stock options (in dollars) | 40 | 42 | 158 | ||
Actual income tax benefit realized from stock option exercises (in dollars) | $ 5 | $ 5 | $ 13 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||||
Risk-free interest rate low end of the range (as a percent) | [1],[2] | 0.10% | 0.10% | 0.10% | |
Risk-free interest rate high end of the range (as a percent) | [1],[2] | 2.10% | 2.40% | 1.80% | |
Expected dividend yield (as a percent) | [2] | 2.30% | 2.50% | 2.00% | |
Expected stock price volatility (as a percent) | [2],[3] | 37.00% | 40.00% | 46.00% | |
Expected life of stock options (in years) | [2],[4] | 6 years | 6 years | 5 years 10 months 24 days | |
Employee Stock Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Term of stock options (in years) | 10 years | ||||
Vesting period (in years) | 4 years | ||||
Stock-based compensation expense (in dollars) | $ 15 | $ 17 | $ 25 | ||
Aggregate Intrinsic Value [Abstract] | |||||
Unrecognized compensation (in dollars) | $ 15 | ||||
Weighted-average period over which compensation expense is expected to be recognized (in years) | 1 year 2 months | ||||
Market-based [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense (in dollars) | $ 16 | $ 10 | 9 | ||
Aggregate Intrinsic Value [Abstract] | |||||
Unrecognized compensation (in dollars) | $ 19 | ||||
Weighted-average period over which compensation expense is expected to be recognized (in years) | 1 year 10 months | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |||||
Outstanding at the beginning of the period (in shares) | 1,704,000 | ||||
Granted (in shares) | 758,000 | ||||
Vested (in shares) | (914,000) | ||||
Forfeited/Canceled (in shares) | (86,000) | ||||
Outstanding at the end of the period (in shares) | 1,462,000 | 1,704,000 | |||
Weighted Average Fair Value Per Share [Roll Forward] | |||||
Outstanding at the beginning of the period (in dollars per share) | $ 24.16 | ||||
Granted (in dollars per share) | 31.48 | ||||
Vested (in dollars per share) | 16.73 | ||||
Forfeited/Canceled (in dollars per share) | 28.85 | ||||
Outstanding at the end of the period (in dollars per share) | $ 32.33 | $ 24.16 | |||
Time-based [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Payment Award, Award Vesting Period, Minimum | 3 years | ||||
Share-based Payment Award, Award Vesting Period, Maximum | 4 years | ||||
Vesting percentage per increment, options vesting in annual increments | 25% of the award vests on the date of grant and 25% vests on each of the three anniversary dates thereafter | ||||
Annual vesting percentage, options vesting in annual increments | 25.00% | ||||
Stock-based compensation expense (in dollars) | $ 73 | $ 60 | $ 62 | ||
Aggregate Intrinsic Value [Abstract] | |||||
Unrecognized compensation (in dollars) | $ 85 | ||||
Weighted-average period over which compensation expense is expected to be recognized (in years) | 1 year 10 months | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |||||
Outstanding at the beginning of the period (in shares) | 5,543,000 | ||||
Granted (in shares) | 2,683,000 | ||||
Vested (in shares) | (2,503,000) | ||||
Forfeited/Canceled (in shares) | (620,000) | ||||
Outstanding at the end of the period (in shares) | 5,103,000 | 5,543,000 | |||
Weighted Average Fair Value Per Share [Roll Forward] | |||||
Outstanding at the beginning of the period (in dollars per share) | $ 24.40 | ||||
Granted (in dollars per share) | 38.72 | ||||
Vested (in dollars per share) | 23.10 | ||||
Forfeited/Canceled (in dollars per share) | 29.98 | ||||
Outstanding at the end of the period (in dollars per share) | $ 31.89 | $ 24.40 | |||
Employee Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Issuance of common stock under employee stock purchase plan (in shares) | 200,000 | 300,000 | 600,000 | ||
Discounted purchase rate on the market price of the stock (as a percent) | 15.00% | 5.00% | 5.00% | ||
Stock-based compensation expense (in dollars) | $ 0 | $ 0 | $ 1 | ||
Weighted Average Fair Value Per Share [Roll Forward] | |||||
Amount accumulated by plan participants to purchase common stock (in dollars) | $ 2 | $ 1 | |||
[1] | Based on the U.S. Treasury constant maturity interest rate whose term is consistent with the expected life of our stock options. | ||||
[2] | Forfeitures are estimated using historical experience and projected employee turnover. | ||||
[3] | In projecting expected stock price volatility, we consider both the historical volatility of our stock price as well as implied volatilities from exchange-traded options on our stock. | ||||
[4] | We estimate the expected life of stock options based upon historical experience. |
Shareholders' Equity (Details 2
Shareholders' Equity (Details 2) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May. 02, 2015 | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | May. 03, 2014 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | Jun. 30, 2011 | |
Outstanding Options to Purchase Common Stock [Line Items] | |||||||||||||
Net cash proceeds from the exercise of stock options (in dollars) | $ 40 | $ 42 | $ 158 | ||||||||||
Weighted-average grant-date fair value of stock options granted (in dollars per share) | $ 11.59 | $ 9.09 | $ 7.77 | ||||||||||
Exercisable stock options (in shares) | 11,668,000 | 11,668,000 | |||||||||||
Percentage of exercisable stock options (as a percent) | 100.00% | 100.00% | |||||||||||
Exercisable stock options, weighted-average price (in dollars per share) | $ 37.09 | $ 37.09 | |||||||||||
Unexercisable stock options (in shares) | 2,500,000 | 2,500,000 | |||||||||||
Percentage of unexercisable stock options (as a percent) | 100.00% | 100.00% | |||||||||||
Unexercisable stock options, weighted-average price (in dollars per share) | $ 33.87 | $ 33.87 | |||||||||||
Total outstanding stock options (in shares) | 14,242,000 | 17,342,000 | 14,242,000 | 17,342,000 | |||||||||
Percentage of outstanding stock options (as a percent) | 100.00% | 100.00% | |||||||||||
Outstanding stock options, weighted-average price (in dollars per share) | $ 36.51 | $ 36.81 | $ 36.51 | $ 36.81 | |||||||||
Adjustment for assumed dilution: | |||||||||||||
Net earnings from continuing operations attributable to Best Buy Co., Inc., diluted | $ 807 | $ 1,246 | $ 695 | ||||||||||
Denominator [Abstract] | |||||||||||||
Weighted-average common shares outstanding (in shares) | 346,500,000 | 349,500,000 | 342,100,000 | ||||||||||
Effect of Potentially Dilutive Securities [Abstract] | |||||||||||||
Stock options and other (in shares) | 4,200,000 | 4,100,000 | 5,500,000 | ||||||||||
Weighted-average common shares outstanding, assuming dilution (in shares) | 350,700,000 | 353,600,000 | 347,600,000 | ||||||||||
Earnings per share attributable to Best Buy Co., Inc. | |||||||||||||
Basic (in dollars per share) | $ 2.33 | $ 3.57 | $ 2.03 | ||||||||||
Diluted (in dollars per share) | $ 1.39 | $ 0.37 | $ 0.46 | $ 0.10 | $ 1.47 | $ 0.33 | $ 0.39 | $ 1.33 | $ 2.30 | $ 3.53 | $ 2 | ||
Share repurchases authorized (in shares) | $ 5,000 | ||||||||||||
Open Market Repurchases [Abstract] | |||||||||||||
Stock Repurchased and Retired During Period, Value | $ 120 | ||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||
Foreign currency translation | $ 271 | $ 382 | 271 | $ 382 | $ 485 | $ 113 | |||||||
Unrealized gains (losses) on available-for-sale investments | 0 | 0 | 0 | 0 | 7 | (1) | |||||||
Total | $ 271 | $ 382 | 271 | 382 | 492 | $ 112 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | 14 | 13 | 39 | ||||||||||
Actual income tax benefit realized from stock option exercises (in dollars) | $ 5 | $ 5 | $ 13 | ||||||||||
In-the-money [Member] | |||||||||||||
Outstanding Options to Purchase Common Stock [Line Items] | |||||||||||||
Exercisable stock options (in shares) | 4,200,000 | 4,200,000 | |||||||||||
Percentage of exercisable stock options (as a percent) | 36.00% | 36.00% | |||||||||||
Exercisable stock options, weighted-average price (in dollars per share) | $ 24.73 | $ 24.73 | |||||||||||
Unexercisable stock options (in shares) | 1,300,000 | 1,300,000 | |||||||||||
Percentage of unexercisable stock options (as a percent) | 52.00% | 52.00% | |||||||||||
Unexercisable stock options, weighted-average price (in dollars per share) | $ 27.45 | $ 27.45 | |||||||||||
Total outstanding stock options (in shares) | 5,500,000 | 5,500,000 | |||||||||||
Percentage of outstanding stock options (as a percent) | 39.00% | 39.00% | |||||||||||
Outstanding stock options, weighted-average price (in dollars per share) | $ 25.37 | $ 25.37 | |||||||||||
Out-of-the-money [Member] | |||||||||||||
Outstanding Options to Purchase Common Stock [Line Items] | |||||||||||||
Exercisable stock options (in shares) | 7,500,000 | 7,500,000 | |||||||||||
Percentage of exercisable stock options (as a percent) | 64.00% | 64.00% | |||||||||||
Exercisable stock options, weighted-average price (in dollars per share) | $ 44.15 | $ 44.15 | |||||||||||
Unexercisable stock options (in shares) | 1,200,000 | 1,200,000 | |||||||||||
Percentage of unexercisable stock options (as a percent) | 48.00% | 48.00% | |||||||||||
Unexercisable stock options, weighted-average price (in dollars per share) | $ 40.51 | $ 40.51 | |||||||||||
Total outstanding stock options (in shares) | 8,700,000 | 8,700,000 | |||||||||||
Percentage of outstanding stock options (as a percent) | 61.00% | 61.00% | |||||||||||
Outstanding stock options, weighted-average price (in dollars per share) | $ 43.62 | $ 43.62 | |||||||||||
June 2011 share repurchase program [Member} | |||||||||||||
Outstanding Options to Purchase Common Stock [Line Items] | |||||||||||||
Amounting remaining for additional share repurchases | $ 3,000 | $ 3,000 | |||||||||||
Open Market Repurchases [Abstract] | |||||||||||||
Total number of shares repurchased | 32,800,000 | ||||||||||||
Stock Repurchased and Retired During Period, Value | $ 1,000 | ||||||||||||
Open market [Domain] | |||||||||||||
Open Market Repurchases [Abstract] | |||||||||||||
Total number of shares repurchased | 28,400,000 | ||||||||||||
January 2016 ASR [Domain] | |||||||||||||
Open Market Repurchases [Abstract] | |||||||||||||
Total number of shares repurchased | 4,400,000 | ||||||||||||
Market-based [Member] | |||||||||||||
Outstanding Options to Purchase Common Stock [Line Items] | |||||||||||||
Unrecognized compensation (in dollars) | $ 19 | $ 19 | |||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||
Weighted-average period over which compensation expense is expected to be recognized (in years) | 1 year 10 months | ||||||||||||
Employee Stock [Member] | |||||||||||||
Outstanding Options to Purchase Common Stock [Line Items] | |||||||||||||
Issuance of common stock under employee stock purchase plan (in shares) | 200,000 | 300,000 | 600,000 | ||||||||||
Open market [Domain] | June 2011 share repurchase program [Member} | |||||||||||||
Open Market Repurchases [Abstract] | |||||||||||||
Stock Repurchased and Retired During Period, Value | $ 880 |
Shareholders' Equity Components
Shareholders' Equity Components of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign currency translation | $ 271 | $ 382 | $ 485 | $ 113 |
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | 0 | 0 | 7 | (1) |
Accumulated other comprehensive income | 271 | 382 | 492 | $ 112 |
Foreign currency translation adjustments | (44) | (103) | (136) | |
Unrealized gain (loss) on available-for-sale investments | 0 | (3) | 6 | |
Reclassification of foreign currency translations adjustments into earnings due to sale of business | (67) | 0 | 654 | |
Reclassification of (gains) losses on available-for-sale investments into earnings | (4) | 2 | ||
Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign currency translation adjustments | (44) | (103) | (136) | |
Unrealized gain (loss) on available-for-sale investments | (3) | 7 | ||
Reclassification of foreign currency translations adjustments into earnings due to sale of business | $ (67) | 508 | ||
Reclassification of (gains) losses on available-for-sale investments into earnings | $ (4) | $ 1 |
Shareholders' Equity Accelerate
Shareholders' Equity Accelerated Share Repurchase (Details) shares in Millions, $ in Millions | 12 Months Ended |
Jan. 30, 2016USD ($)shares | |
Equity [Abstract] | |
Accelerated Share Repurchase Price (low end of the range) | $ 150 |
Accelerated Share Repurchase Price (high end of the range) | $ 175 |
Stock Repurchased and Retired at ASR Settlement, Shares | shares | 1.6 |
Prepaid repurchase of common stock | $ 55 |
Stock Repurchased and Retired During Period, Value | 120 |
Accelerated Share Repurchases, Cash or Stock Settlement | 165 |
Accelerated Share Repurchases, Description of Adjustment to Initial Price Paid | $ 10 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | ||
Operating Leases, Rent Expense, Net [Abstract] | ||||
Minimum rentals | $ 797 | $ 848 | $ 864 | |
Contingent rentals | 1 | 2 | 2 | |
Total rent expense | 798 | 850 | 866 | |
Less: sublease income | (15) | (18) | (18) | |
Net rent expense | 783 | $ 832 | $ 848 | |
Future minimum lease payments under capital leases | ||||
2,016 | 14 | |||
2,017 | 9 | |||
2,018 | 6 | |||
2,019 | 3 | |||
2,020 | 2 | |||
Thereafter | 12 | |||
Subtotal | 46 | |||
Less: imputed interest | (8) | |||
Capital Leases, Future Minimum Payments, Present Value | 38 | |||
Capital Lease Obligations, Current | (12) | |||
Present value | 26 | |||
Future minimum lease payments under financing leases | ||||
Financing Leases, Future Minimum Payments Due, Next Twelve Months | 42 | |||
2,017 | 35 | |||
2,018 | 29 | |||
2,019 | 23 | |||
2,020 | 17 | |||
Thereafter | 66 | |||
Subtotal | 212 | |||
Less: imputed interest | (34) | |||
Financing Leases, Future Minimum Payments, Present Value | 178 | |||
2,016 | (33) | |||
Present value | 145 | |||
Future minimum lease payments under operating leases | ||||
2,016 | [1] | 813 | ||
2,017 | [1] | 708 | ||
2,018 | [1] | 572 | ||
2,019 | [1] | 439 | ||
2,020 | [1] | 310 | ||
Thereafter | [1] | 521 | ||
Subtotal | [1] | 3,363 | ||
Other Operating Lease Payments | 1,100 | |||
Minimum sublease rent income excluded from minimum lease payments | $ 72 | |||
[1] | Operating lease obligations do not include payments to landlords covering real estate taxes and common area maintenance. These charges, if included, would increase total operating lease obligations by $1.1 billion at January 30, 2016. |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Maximum percentage of a participant's eligible compensation that a participant may contribute annually to the plan (as a percent) | 50.00% | ||
Percentage of matching contribution made by company of first 3% of participating employees' contributions (as a percent) | 100.00% | ||
Percentage of participating employees' contribution, matched 100% (as a percent) | 3.00% | ||
Percentage of matching contribution made by company, of next 2% of participating employees' contributions (as a percent) | 50.00% | ||
Percentage of participating employees' contribution, matched 50% (as a percent) | 2.00% | ||
Defined Contribution Plan, Cost Recognized | $ 53 | $ 60 | $ 65 |
Non-qualified, unfunded deferred compensation plan [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Deferred Compensation Liability, Classified, Noncurrent | 34 | 44 | |
Deferred Compensation Plan Assets | $ 96 | $ 97 |
Income Taxes - Tax Rate Reconci
Income Taxes - Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | Mar. 03, 2012 | |
Income Tax Disclosure [Abstract] | ||||
Profit Share Buy-Out Purchase Price | $ 1,300 | |||
Reconciliation of the federal statutory income tax rate to income tax expense | ||||
Federal income tax at the statutory rate | $ 458 | $ 485 | $ 379 | |
State income taxes, net of federal benefit | 38 | 43 | 26 | |
(Benefit) expense from foreign operations | 5 | (23) | (23) | |
Other | 2 | (11) | 6 | |
Effective Income Tax Rate Reconciliation, Legal Entity Reorganization | 0 | (353) | 0 | |
Income tax expense | $ 503 | $ 141 | $ 388 | |
Effective income tax rate | 38.40% | 10.10% | 35.80% |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Earnings from continuing operations before income tax expense and equity in (loss) income of affiliates | |||
United States | $ 1,310 | $ 1,201 | $ 699 |
Outside the United States | 0 | 186 | 384 |
Earnings from continuing operations before income tax expense | 1,310 | 1,387 | 1,083 |
Current: | |||
Federal | 347 | 354 | 305 |
State | 48 | 51 | 46 |
Foreign | 60 | 33 | 55 |
Current income tax expense | 455 | 438 | 406 |
Deferred: | |||
Federal | 65 | (275) | (22) |
State | 10 | (26) | 1 |
Foreign | (27) | 4 | 3 |
Deferred income tax expense | 48 | (297) | (18) |
Income tax expense | $ 503 | $ 141 | $ 388 |
Income Taxes - Components of De
Income Taxes - Components of Deferreds (Details) - USD ($) $ in Millions | Jan. 30, 2016 | Jan. 31, 2015 |
Components of deferred tax assets and liabilities | ||
Accrued property expenses | $ 175 | $ 129 |
Other accrued expenses | 78 | 91 |
Deferred revenue | 99 | 93 |
Compensation and benefits | 99 | 103 |
Stock-based compensation | 86 | 94 |
Deferred Tax Assets, Goodwill and Intangible Assets | 253 | 287 |
Loss and credit carryforwards | 133 | 156 |
Other | 86 | 88 |
Total deferred tax assets | 1,009 | 1,041 |
Valuation allowance | (108) | (143) |
Total deferred tax assets after valuation allowance | 901 | 898 |
Property and equipment | (296) | (251) |
Inventory | (69) | (54) |
Other | (26) | (27) |
Total deferred tax liabilities | (391) | (332) |
Net deferred tax assets | 510 | 566 |
Other assets | 510 | 574 |
Deferred Tax Liabilities, Net, Noncurrent, Held-for-Sale | 0 | (8) |
Net deferred tax assets | $ 510 | $ 566 |
Income Taxes - Tax Credit and O
Income Taxes - Tax Credit and Operating Loss Carryforwards (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 30, 2016 | Jan. 31, 2015 | |
Tax Credit Carryforward [Line Items] | ||
Valuation allowance | $ 108 | $ 143 |
Decrease in the valuation allowance, related to the international net operating loss carryforwards and other international deferred tax assets | 35 | |
Unremitted earnings of foreign operations | 896 | |
State [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | 13 | |
Tax credit carryforwards, valuation allowance | 8 | |
Capital Loss Carryforwards [Member] | State [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | 4 | |
Capital Loss Carryforwards [Member] | U.S. and State [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards, valuation allowance | 9 | |
Federal [Member] | U.S. [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Total net operating loss carryforwards | 19 | |
Federal [Member] | Foreign Tax Credit Carryforwards [Member] | U.S. [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | 1 | |
Tax credit carryforwards, valuation allowance | 1 | |
International [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Total net operating loss carryforwards | 96 | |
Net operating loss carryforwards subject to expiration | 89 | |
Net operating loss carryforwards, valuation allowance | $ 90 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Reconciliation of changes in unrecognized tax benefits | |||
Balance at beginning of period | $ 410 | $ 370 | $ 383 |
Gross increases related to prior period tax positions | 30 | 33 | 38 |
Gross decreases related to prior period tax positions | (13) | (88) | (67) |
Gross increases related to current period tax positions | 59 | 114 | 34 |
Settlements with taxing authorities | (9) | (9) | (3) |
Lapse of statute of limitations | (8) | (10) | (15) |
Balance at end of period | 469 | 410 | 370 |
Unrecognized tax benefits that would impact the effective tax rate if recognized | 337 | 297 | 228 |
Interest expense recognized as component of income tax expense | 10 | ||
Accrued interest in income tax expense | 89 | 78 | 91 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | $ 1 | $ 2 | $ 2 |
Segment and Geographic Inform76
Segment and Geographic Information - Segment Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||
Jan. 30, 2016USD ($) | Oct. 31, 2015USD ($) | Aug. 01, 2015USD ($) | May. 02, 2015USD ($) | Jan. 31, 2015USD ($) | Nov. 01, 2014USD ($) | Aug. 02, 2014USD ($) | May. 03, 2014USD ($) | Jan. 30, 2016USD ($)segments | Jan. 31, 2015USD ($) | Feb. 01, 2014USD ($) | Feb. 02, 2013 | ||||||||||||
Business segment information | |||||||||||||||||||||||
Number of reportable segments | segments | 2 | ||||||||||||||||||||||
Total revenue | $ 13,623 | $ 8,819 | $ 8,528 | $ 8,558 | $ 14,209 | $ 9,032 | $ 8,459 | $ 8,639 | $ 39,528 | $ 40,339 | $ 40,611 | ||||||||||||
Operating income (loss) | 771 | [1] | $ 230 | [1] | $ 288 | [1] | $ 86 | [1] | 810 | [2] | $ 205 | [2] | $ 225 | [2] | $ 210 | [2] | 1,375 | [1] | 1,450 | [3] | 1,144 | ||
Other income (expense) | |||||||||||||||||||||||
Gain on sale of investments | 2 | 13 | 20 | ||||||||||||||||||||
Investment income and other | 13 | 14 | 19 | ||||||||||||||||||||
Interest expense | (80) | (90) | (100) | ||||||||||||||||||||
Earnings from continuing operations before income tax expense | 1,310 | 1,387 | 1,083 | ||||||||||||||||||||
Total Assets | [4] | 13,519 | 15,245 | 13,519 | 15,245 | 13,990 | |||||||||||||||||
Total capital expenditures | [5] | 649 | 561 | 547 | |||||||||||||||||||
Total depreciation | 657 | 656 | 701 | ||||||||||||||||||||
Domestic [Member] | |||||||||||||||||||||||
Business segment information | |||||||||||||||||||||||
Total revenue | $ 36,365 | $ 36,055 | $ 35,831 | ||||||||||||||||||||
Percentage of revenue, by revenue category (as a percent) | 100.00% | 100.00% | 100.00% | ||||||||||||||||||||
Operating income (loss) | $ 1,585 | $ 1,437 | $ 1,145 | ||||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||
Total Assets | [4] | 12,318 | 12,987 | 12,318 | 12,987 | 11,123 | |||||||||||||||||
Total capital expenditures | [5] | $ 602 | $ 519 | $ 440 | |||||||||||||||||||
Domestic [Member] | Consumer Electronics [Member] | |||||||||||||||||||||||
Business segment information | |||||||||||||||||||||||
Percentage of revenue, by revenue category (as a percent) | 32.00% | 31.00% | 30.00% | ||||||||||||||||||||
Domestic [Member] | Computing and Mobile Phones [Member] | |||||||||||||||||||||||
Business segment information | |||||||||||||||||||||||
Percentage of revenue, by revenue category (as a percent) | 46.00% | 47.00% | 48.00% | ||||||||||||||||||||
Domestic [Member] | Entertainment [Member] | |||||||||||||||||||||||
Business segment information | |||||||||||||||||||||||
Percentage of revenue, by revenue category (as a percent) | 8.00% | 9.00% | 8.00% | ||||||||||||||||||||
Domestic [Member] | Appliances [Member] | |||||||||||||||||||||||
Business segment information | |||||||||||||||||||||||
Percentage of revenue, by revenue category (as a percent) | 8.00% | 7.00% | 7.00% | ||||||||||||||||||||
Domestic [Member] | Services [Member] | |||||||||||||||||||||||
Business segment information | |||||||||||||||||||||||
Percentage of revenue, by revenue category (as a percent) | 5.00% | 5.00% | 6.00% | ||||||||||||||||||||
Domestic [Member] | Other [Member] | |||||||||||||||||||||||
Business segment information | |||||||||||||||||||||||
Percentage of revenue, by revenue category (as a percent) | 1.00% | 1.00% | 1.00% | ||||||||||||||||||||
International [Member] | |||||||||||||||||||||||
Business segment information | |||||||||||||||||||||||
Total revenue | $ 3,163 | $ 4,284 | $ 4,780 | ||||||||||||||||||||
Percentage of revenue, by revenue category (as a percent) | 100.00% | 100.00% | 100.00% | ||||||||||||||||||||
Operating income (loss) | $ (210) | $ 13 | $ (1) | ||||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||
Total Assets | [4] | $ 1,201 | $ 2,258 | 1,201 | 2,258 | 2,867 | |||||||||||||||||
Total capital expenditures | [5] | $ 47 | $ 42 | $ 107 | |||||||||||||||||||
International [Member] | Consumer Electronics [Member] | |||||||||||||||||||||||
Business segment information | |||||||||||||||||||||||
Percentage of revenue, by revenue category (as a percent) | 31.00% | 30.00% | 29.00% | ||||||||||||||||||||
International [Member] | Computing and Mobile Phones [Member] | |||||||||||||||||||||||
Business segment information | |||||||||||||||||||||||
Percentage of revenue, by revenue category (as a percent) | 48.00% | 49.00% | 50.00% | ||||||||||||||||||||
International [Member] | Entertainment [Member] | |||||||||||||||||||||||
Business segment information | |||||||||||||||||||||||
Percentage of revenue, by revenue category (as a percent) | 9.00% | 9.00% | 10.00% | ||||||||||||||||||||
International [Member] | Appliances [Member] | |||||||||||||||||||||||
Business segment information | |||||||||||||||||||||||
Percentage of revenue, by revenue category (as a percent) | 5.00% | 5.00% | 5.00% | ||||||||||||||||||||
International [Member] | Services [Member] | |||||||||||||||||||||||
Business segment information | |||||||||||||||||||||||
Percentage of revenue, by revenue category (as a percent) | 6.00% | 6.00% | 6.00% | ||||||||||||||||||||
International [Member] | Other [Member] | |||||||||||||||||||||||
Business segment information | |||||||||||||||||||||||
Percentage of revenue, by revenue category (as a percent) | 1.00% | 1.00% | |||||||||||||||||||||
Maximum percentage of revenue, by revenue category (as a percent) | 1.00% | 1.00% | |||||||||||||||||||||
Continuing Operations [Member] | |||||||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||
Total depreciation | [5] | $ 657 | $ 656 | $ 701 | |||||||||||||||||||
Continuing Operations [Member] | Domestic [Member] | |||||||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||
Total depreciation | [5] | 613 | 575 | 565 | |||||||||||||||||||
Continuing Operations [Member] | International [Member] | |||||||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||
Total depreciation | [5] | $ 44 | $ 81 | $ 136 | |||||||||||||||||||
[1] | Includes $186 million, $(4) million, $7 million and $12 million of restructuring charges recorded in the fiscal first, second, third and fourth quarters, respectively, and $201 million for the 12 months ended January 30, 2016 related to measures we took to restructure our businesses. | ||||||||||||||||||||||
[2] | Enterprise comparable sales for fiscal 2015 include revenue from continuing operations in the International segment. Excluding the International segment, Enterprise comparable sales, excluding the impact of installment billing, would have been (1.3%) in the first quarter, 2.0% in the second quarter, 2.4% in the third quarter, 0.5% in the fourth quarter and 0.5% for fiscal 2015, or equal to Domestic comparable sales excluding the impact of installment billing, for the same periods. | ||||||||||||||||||||||
[3] | Includes $2 million, $5 million, $5 million and $(7) million of restructuring charges recorded in the fiscal first, second, third and fourth quarters, respectively, and $5 million for the 12 months ended January 31, 2015 related to measures we took to restructure our businesses. | ||||||||||||||||||||||
[4] | For fiscal 2015 and 2014, assets are recast to present our retrospective adoption of ASU 2015-17 Balance Sheet Classification of Deferred Taxes, ASU 2015-03 Simplifying the Presentation of Debt Issuance Costs, and ASU 2015-15 Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. Refer to Note 1, Summary of Significant Accounting Policies, of the Notes to Consolidated Financial Statements, included in Item 8, Financial Statements and Supplementary Data, of this Annual Report on Form 10-K for further information about our credit facilities. | ||||||||||||||||||||||
[5] | For fiscal 2015 and 2014, the International segment amounts for assets, capital expenditures and depreciation include amounts from Five Star. |
Segment and Geographic Inform77
Segment and Geographic Information - Geographic Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May. 02, 2015 | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | May. 03, 2014 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Geographic Areas, Revenues from External Customers [Abstract] | |||||||||||
Total revenue | $ 13,623 | $ 8,819 | $ 8,528 | $ 8,558 | $ 14,209 | $ 9,032 | $ 8,459 | $ 8,639 | $ 39,528 | $ 40,339 | $ 40,611 |
Geographic Areas, Long-Lived Assets [Abstract] | |||||||||||
Property, Plant and Equipment, Net | 2,346 | 2,295 | 2,346 | 2,295 | 2,598 | ||||||
United States [Member] | |||||||||||
Geographic Areas, Revenues from External Customers [Abstract] | |||||||||||
Total revenue | 36,365 | 36,055 | 35,831 | ||||||||
Geographic Areas, Long-Lived Assets [Abstract] | |||||||||||
Property, Plant and Equipment, Net | 2,189 | 2,100 | 2,189 | 2,100 | 2,190 | ||||||
Canada [Member] | |||||||||||
Geographic Areas, Revenues from External Customers [Abstract] | |||||||||||
Total revenue | 2,917 | 4,047 | 4,522 | ||||||||
Geographic Areas, Long-Lived Assets [Abstract] | |||||||||||
Property, Plant and Equipment, Net | 140 | 174 | 140 | 174 | 244 | ||||||
China [Member] | |||||||||||
Geographic Areas, Long-Lived Assets [Abstract] | |||||||||||
Property, Plant and Equipment, Net | 0 | 0 | 0 | 0 | 139 | ||||||
Other [Member] | |||||||||||
Geographic Areas, Revenues from External Customers [Abstract] | |||||||||||
Total revenue | 246 | 237 | 258 | ||||||||
Geographic Areas, Long-Lived Assets [Abstract] | |||||||||||
Property, Plant and Equipment, Net | $ 17 | $ 21 | $ 17 | $ 21 | $ 25 |
Contingencies and Commitments -
Contingencies and Commitments - Commitments (Details) $ in Millions | 12 Months Ended |
Jan. 30, 2016USD ($) | |
Accenture Service Contract [Member] | |
Commitments [Line Items] | |
Long-term Future Contractual Obligations, High End of the Range | $ 95 |
Outstanding letters of credit and bankers' acceptances [Member] | |
Commitments [Line Items] | |
Unrecorded Unconditional Purchase Obligation, Purchases | $ 89 |
Contingencies and Commitments G
Contingencies and Commitments Gain Contingencies (Details) $ in Millions | 12 Months Ended |
Jan. 30, 2016USD ($) | |
Gain Contingencies [Line Items] | |
Proceeds from Legal Settlements | $ 75 |
Supplementary Financial Infor80
Supplementary Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May. 02, 2015 | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | May. 03, 2014 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | ||||||||||||
Quarterly Financial Information [Line Items] | ||||||||||||||||||||||
Revenue | $ 13,623 | $ 8,819 | $ 8,528 | $ 8,558 | $ 14,209 | $ 9,032 | $ 8,459 | $ 8,639 | $ 39,528 | $ 40,339 | $ 40,611 | |||||||||||
Comparable store sales % change (as a percent) | [1] | (1.70%) | 0.80% | 3.80% | 0.60% | 2.00% | 2.90% | (2.20%) | (1.80%) | 0.50% | 0.50% | |||||||||||
Comparable Sales, Excluding Installment Billing, Percent Change | (1.80%) | 0.50% | 2.70% | (0.70%) | 1.30% | 2.20% | (2.20%) | (1.80%) | (0.10%) | 0.00% | ||||||||||||
Gross profit | $ 2,951 | $ 2,112 | $ 2,098 | $ 2,030 | $ 3,026 | $ 2,076 | $ 1,978 | $ 1,967 | $ 9,191 | $ 9,047 | 9,399 | |||||||||||
Operating income (loss) | 771 | [2] | 230 | [2] | 288 | [2] | 86 | [2] | 810 | [3] | 205 | [3] | 225 | [3] | 210 | [3] | 1,375 | [2] | 1,450 | [4] | 1,144 | |
Net earnings (loss) from continuing operations | 477 | 129 | 164 | 37 | 524 | 116 | 137 | 469 | 807 | 1,246 | 695 | |||||||||||
Gain (loss) from discontinued operations, net of tax | 2 | (4) | 0 | 92 | (4) | (9) | 10 | (8) | 90 | (11) | (172) | |||||||||||
Net earnings including noncontrolling interests | 479 | 125 | 164 | 129 | 520 | 107 | 147 | 461 | 897 | 1,235 | 523 | |||||||||||
Net earnings (loss) attributable to Best Buy Co., Inc. | $ 479 | $ 125 | $ 164 | $ 129 | $ 519 | $ 107 | $ 146 | $ 461 | $ 897 | $ 1,233 | $ 532 | |||||||||||
Diluted earnings (loss) per share | ||||||||||||||||||||||
Continuing operations | $ 1.39 | $ 0.37 | $ 0.46 | $ 0.10 | $ 1.47 | $ 0.33 | $ 0.39 | $ 1.33 | $ 2.30 | $ 3.53 | $ 2 | |||||||||||
Discontinued operations | 0.01 | [5] | (0.01) | [5] | 0 | [5] | 0.26 | [5] | (0.01) | [5] | (0.03) | [5] | 0.03 | [5] | (0.02) | [5] | 0.26 | [5] | (0.04) | [5] | (0.47) | |
Diluted (in dollars per share) | $ 1.40 | $ 0.36 | $ 0.46 | $ 0.36 | $ 1.46 | $ 0.30 | $ 0.42 | $ 1.31 | $ 2.56 | $ 3.49 | $ 1.53 | |||||||||||
Months until inclusion in comparable store sales | 14 months | |||||||||||||||||||||
Days Until Excluded From Comparable Sales | 14 days | |||||||||||||||||||||
Restructuring charges | $ 12 | $ 7 | $ (4) | $ 186 | $ (7) | $ 5 | $ 5 | $ 2 | $ 201 | $ 23 | $ 259 | |||||||||||
Continuing Operations [Member] | ||||||||||||||||||||||
Diluted earnings (loss) per share | ||||||||||||||||||||||
Restructuring charges | $ 201 | $ 5 | ||||||||||||||||||||
[1] | Our comparable sales calculation compares revenue from stores, websites and call centers operating for at least 14 full months, as well as revenue related to certain other comparable sales channels for a particular period to a corresponding period in the prior year. Relocated, as well as remodeled, expanded and downsized stores closed more than 14 days, are excluded from our comparable sales calculation until at least 14 full months after reopening. Acquisitions are included in the comparable sales calculation beginning with the first full quarter following the first anniversary of the date of the acquisition. The portion of the calculation of comparable sales attributable to our International segment excludes the effect of fluctuations in foreign currency exchange rates. The calculation of comparable sales excludes the impact of revenue from discontinued operations. Comparable online sales are included in our comparable sales calculation. The method of calculating comparable sales varies across the retail industry. As a result, our method of calculating comparable sales may not be the same as other retailers' methods. | |||||||||||||||||||||
[2] | Includes $186 million, $(4) million, $7 million and $12 million of restructuring charges recorded in the fiscal first, second, third and fourth quarters, respectively, and $201 million for the 12 months ended January 30, 2016 related to measures we took to restructure our businesses. | |||||||||||||||||||||
[3] | Enterprise comparable sales for fiscal 2015 include revenue from continuing operations in the International segment. Excluding the International segment, Enterprise comparable sales, excluding the impact of installment billing, would have been (1.3%) in the first quarter, 2.0% in the second quarter, 2.4% in the third quarter, 0.5% in the fourth quarter and 0.5% for fiscal 2015, or equal to Domestic comparable sales excluding the impact of installment billing, for the same periods. | |||||||||||||||||||||
[4] | Includes $2 million, $5 million, $5 million and $(7) million of restructuring charges recorded in the fiscal first, second, third and fourth quarters, respectively, and $5 million for the 12 months ended January 31, 2015 related to measures we took to restructure our businesses. | |||||||||||||||||||||
[5] | The sum of our quarterly diluted earnings per share does not equal our annual diluted earnings per share due to differences in quarterly and annual weighted-average shares outstanding. |
Valuation and Qualifying Acco81
Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | ||
Activity in valuation and qualifying accounts | ||||
Balance at Beginning of Period | $ 59 | |||
Balance at End of Period | 49 | $ 59 | ||
Allowance for Doubtful Accounts [Member] | ||||
Activity in valuation and qualifying accounts | ||||
Balance at Beginning of Period | 59 | 104 | $ 92 | |
Charged to Expenses or Other Accounts | 30 | 1 | 76 | |
Other | [1] | (40) | (46) | (64) |
Balance at End of Period | $ 49 | $ 59 | $ 104 | |
[1] | Includes bad debt write-offs and recoveries, acquisitions and the effect of foreign currency fluctuations. |