BEST BUY CO INC, 10-K filed on 3/31/2015
Annual Report
Document and Entity Information (USD $)
In Billions, except Share data, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Mar. 23, 2015
Aug. 3, 2013
Document and Entity Information [Abstract}
 
 
 
Entity Registrant Name
BEST BUY CO INC 
 
 
Current Fiscal Year End Date
--01-31 
 
 
Entity Voluntary Filers
No 
 
 
Document Fiscal Year Focus
2015 
 
 
Amendment Flag
false 
 
 
Entity Current Reporting Status
Yes 
 
 
Entity Well-known Seasoned Issuer
Yes 
 
 
Entity Common Stock, Shares Outstanding
 
352,185,626 
 
Entity Public Float
 
 
$ 6.4 
Document Fiscal Period Focus
FY 
 
 
Document Type
10-K 
 
 
Entity Central Index Key
0000764478 
 
 
Document Period End Date
Jan. 31, 2015 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
CONSOLIDATED BALANCE SHEETS (USD $)
In Millions, unless otherwise specified
Jan. 31, 2015
Feb. 1, 2014
CURRENT ASSETS
 
 
Cash and cash equivalents
$ 2,432 
$ 2,678 
Short-term investments
1,456 
223 
Receivables, net
1,280 
1,308 
Merchandise inventories
5,174 
5,376 
Other current assets
703 
900 
Current assets held for sale
684 
0 
Total current assets
11,729 
10,485 
Property and Equipment
 
 
Land and buildings
611 
758 
Leasehold improvements
2,201 
2,182 
Fixtures and equipment
4,729 
4,515 
Property under capital lease
119 
120 
Property and equipment, gross
7,660 
7,575 
Less accumulated depreciation
5,365 
4,977 
Net property and equipment
2,295 
2,598 
Goodwill
425 
425 
Intangibles, Net
57 
101 
Other Assets
583 
404 
Non-current assets held for sale
167 
0 
Total Assets
15,256 
14,013 
CURRENT LIABILITIES
 
 
Accounts payable
5,030 
5,122 
Unredeemed gift card liabilities
411 
406 
Deferred revenue
326 
399 
Accrued compensation and related expenses
372 
444 
Accrued liabilities
782 
873 
Accrued income taxes
230 
147 
Current portion of long-term debt
41 
45 
Current liabilities held for sale
585 
0 
Total current liabilities
7,777 
7,436 
Long-Term Liabilities
881 
976 
Long-Term Debt
1,580 
1,612 
Contingencies and Commitments (Note 12)
   
   
Long-Term Liabilities held for sale
18 
 
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 — 351,468,000 and 346,751,000 shares, respectively
35 
35 
Additional paid-in capital
437 
300 
Retained earnings
4,141 
3,159 
Accumulated other comprehensive income
382 
492 
Total Best Buy Co., Inc. shareholders' equity
4,995 
3,986 
Noncontrolling interests
5 
3 
Total equity
5,000 
3,989 
Total Liabilities and Equity
$ 15,256 
$ 14,013 
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) (USD $)
Jan. 31, 2015
Feb. 1, 2014
Preferred stock, par value (in dollars per share)
$ 1.00 
$ 1.00 
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
351,468,000 
346,751,000 
Common stock, outstanding shares
351,468,000 
346,751,000 
CONSOLIDATED STATEMENTS OF EARNINGS (USD $)
In Millions, except Per Share data, unless otherwise specified
11 Months Ended 12 Months Ended
Feb. 2, 2013
Jan. 31, 2015
Feb. 1, 2014
Revenue
$ 38,252 
$ 40,339 
$ 40,611 
Cost of goods sold
29,228 
31,292 
31,212 
Restructuring charges — cost of goods sold
1 
0 
0 
Gross profit
9,023 
9,047 
9,399 
Selling, general and administrative expenses
7,905 
7,592 
8,106 
Restructuring charges
414 
5 
149 
Goodwill impairments
614 
0 
0 
Operating income
90 
1,450 1
1,144 2
Other income (expense)
 
 
 
Gain on sale of investments
0 
13 
20 
Investment income and other
13 
14 
19 
Interest expense
(99)
(90)
(100)
Earnings from continuing operations before income tax expense
4 
1,387 
1,083 
Income tax expense
263 
141 
388 
Net earnings (loss) from continuing operations
(259)
1,246 
695 
Loss from discontinued operations (Note 2), net of tax benefit of $0, $31 and $30
(161)
(11)
(172)
Net earnings (loss) including noncontrolling interests
(420)
1,235 
523 
Net (earnings) loss from discontinued operations attributable to noncontrolling interests
(21)
(2)
9 
Net earnings (loss) attributable to Best Buy Co., Inc. shareholders
$ (441)
$ 1,233 
$ 532 
Basic earnings (loss) per share attributable to Best Buy Co., Inc. shareholders
 
 
 
Continuing operations
$ (0.76)3
$ 3.57 
$ 2.03 
Discontinued operations
$ (0.54)
$ (0.04)
$ (0.47)
Basic earnings (loss) per share
$ (1.30)
$ 3.53 
$ 1.56 
Diluted earnings (loss) per share attributable to Best Buy Co., Inc. shareholders
 
 
 
Continuing operations
$ (0.76)3
$ 3.53 
$ 2.00 
Discontinued operations
$ (0.54)
$ (0.04)4
$ (0.47)4
Diluted earnings (loss) per share
$ (1.30)
$ 3.49 
$ 1.53 
Weighted-average common shares outstanding (in millions)
 
 
 
Basic
338.6 3
349.5 
342.1 
Diluted
338.6 3
353.6 
347.6 
CONSOLIDATED STATEMENTS OF EARNINGS (PARENTHETICAL) (USD $)
In Millions, unless otherwise specified
11 Months Ended 12 Months Ended
Feb. 2, 2013
Jan. 31, 2015
Feb. 1, 2014
Tax effect of discontinued operations
$ (30)
$ 0 
$ (31)
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Millions, unless otherwise specified
11 Months Ended 12 Months Ended
Feb. 2, 2013
Jan. 31, 2015
Feb. 1, 2014
OPERATING ACTIVITIES
 
 
 
Net earnings (loss) including noncontrolling interests
$ (420)
$ 1,235 
$ 523 
Adjustments to reconcile net earnings (loss) to total cash provided by operating activities
 
 
 
Depreciation
794 
656 
701 
Amortization of definite-lived intangible assets
38 
0 
15 
Restructuring charges
449 
23 
259 
Goodwill impairments
822 
0 
0 
(Gain) Loss on sale of business
0 
(1)
143 
Stock-based compensation
107 
87 
90 
Deferred income taxes
(19)
(297)
(28)
Other, net
41 
8 
62 
Changes in operating assets and liabilities:
 
 
 
Receivables
(551)
(19)
7 
Merchandise inventories
(912)
(141)
597 
Other assets
(65)
29 
(70)
Accounts payable
1,735 
434 
(986)
Other liabilities
(339)
(164)
(273)
Income taxes
(226)
85 
54 
Total cash provided by operating activities
1,454 
1,935 
1,094 
INVESTING ACTIVITIES
 
 
 
Additions to property and equipment, net of $14, $13 and $29 non-cash capital expenditures
(705)
(561)
(547)
Purchases of investments
(13)
(2,804)
(230)
Sales of investments
69 
1,580 
50 
Acquisition of businesses, net of cash acquired
(31)
0 
0 
Proceeds from sale of business, net of cash transferred
25 
39 
206 
Change in restricted assets
101 
29 
5 
Other, net
16 
5 
(1)
Total cash used in investing activities
(538)
(1,712)
(517)
FINANCING ACTIVITIES
 
 
 
Repurchase of common stock
(122)
0 
0 
Issuance of common stock
25 
50 
171 
Dividends paid
(224)
(251)
(233)
Repayments of debt
(1,614)
(24)
(2,033)
Proceeds from issuance of debt
1,741 
0 
2,414 
Other, net
(17)
2 
0 
Total cash provided by (used in) financing activities
(211)
(223)
319 
Effect of Exchange Rate Changes on Cash
(4)
(52)
(44)
Increase (Decrease) in Cash and Cash Equivalents
701 
(52)
852 
Adjustment for Fiscal Year-end Change (Note 1)
(74)
0 
0 
Increase (Decrease) in Cash and Cash Equivalents After Adjustment
627 
(52)
852 
Cash and Cash Equivalents at Beginning of Year
1,199 
2,678 
1,826 
Cash and Cash Equivalents at End of Year
1,826 
2,626 
2,678 
Cash and Cash Equivalents Held-for-sale
0 
(194)
 
Cash and Cash Equivalents at End of Period, Excluding Held for Sale
1,826 
2,432 
2,678 
Supplemental Disclosure of Cash Flow Information
 
 
 
Income taxes paid
478 
355 
332 
Interest paid
$ 106 
$ 81 
$ 82 
CONSOLIDATED STATEMENTS OF CASH FLOWS (PARENTHETICAL) (USD $)
In Millions, unless otherwise specified
11 Months Ended 12 Months Ended
Jan. 28, 2012
Jan. 31, 2015
Feb. 1, 2014
Statement of Cash Flows [Abstract]
 
 
 
Non-cash capital expenditures
$ 29 
$ 14 
$ 13 
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $)
In Millions, except Share data, unless otherwise specified
Total
Parent [Member]
Common Stock
Additional Paid-In Capital
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
Noncontrolling Interest [Member]
Beginning balances at Mar. 03, 2012
$ 4,366 
$ 3,745 
$ 34 
$ 0 
$ 3,621 
$ 90 
$ 621 
Beginning balances (in shares) at Mar. 03, 2012
 
 
341,000,000 
 
 
 
 
Increase (decrease) in shareholders' equity
 
 
 
 
 
 
 
Adjustment for fiscal year-end change (Note 2)
6 
(3)
0 
0 
(14)
11 
9 
Net earnings (loss)
(420)
(441)
0 
0 
(441)
0 
21 
Other comprehensive income (loss), net of tax:
 
 
 
 
 
 
 
Foreign currency translation adjustments
15 
9 
0 
0 
0 
9 
6 
Foreign currency translation adjustments
15 
 
 
 
 
 
 
Unrealized gain (loss) on available-for-sale investments
2 
2 
0 
0 
0 
2 
0 
Reclassification of foreign currency translations adjustments into earnings due to sale of business
0 
 
 
 
 
 
 
Dividend distribution
(3)
0 
0 
0 
0 
0 
(3)
Tax loss from stock options canceled or exercised, restricted stock vesting and employee stock purchase plan
(44)
(44)
0 
(44)
0 
0 
0 
Issuance of common stock under employee stock purchase plan
24 
24 
0 
24 
0 
0 
0 
Issuance of common stock under employee stock purchase plan (in shares)
 
 
1,000,000 
 
 
 
 
Stock-based compensation
112 
112 
0 
112 
0 
0 
0 
Restricted stock vested and stock options exercised
1 
1 
0 
1 
0 
0 
0 
Stock options exercised (in shares)
 
 
2,000,000 
 
 
 
 
Common stock dividends, $0.72 per share during the period ended January 31, 2015, $0.68 per share during the period ended February 1, 2014, $0.66 per share during the period ended February 2, 2013, respectively
(222)
(222)
0 
0 
(222)
0 
0 
Repurchase of common stock
(122)
(122)
0 
(39)
(83)
0 
0 
Repurchase of common stock (in shares)
 
 
(6,000,000)
 
 
 
 
Ending balances at Feb. 02, 2013
3,715 
3,061 
34 
54 
2,861 
112 
654 
Ending balances (in shares) at Feb. 02, 2013
 
 
338,000,000 
 
 
 
 
Increase (decrease) in shareholders' equity
 
 
 
 
 
 
 
Net earnings (loss)
523 
532 
0 
0 
532 
0 
(9)
Other comprehensive income (loss), net of tax:
 
 
 
 
 
 
 
Foreign currency translation adjustments
(136)
(136)
 
 
 
 
 
Foreign currency translation adjustments
(147)
(136)
0 
0 
0 
(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 
0 
0 
0 
508 
146 
Reclassification of (gains) losses on available-for-sale investments into earnings
2 
1 
0 
0 
0 
1 
1 
Sale of noncontrolling interest
(776)
0 
0 
0 
0 
0 
(776)
Dividend distribution
(1)
0 
0 
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 
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, $0.72 per share during the period ended January 31, 2015, $0.68 per share during the period ended February 1, 2014, $0.66 per share during the period ended February 2, 2013, 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 
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)
1,679,000 
 
5,000,000 
 
 
 
 
Common stock dividends, $0.72 per share during the period ended January 31, 2015, $0.68 per share during the period ended February 1, 2014, $0.66 per share during the period ended February 2, 2013, 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 
 
 
 
 
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (PARENTHETICAL)
11 Months Ended 12 Months Ended
Feb. 2, 2013
Jan. 31, 2015
Feb. 1, 2014
Statement of Stockholders' Equity [Abstract]
 
 
 
Dividends declared per common share (in dollars per share)
$ 0.66 
$ 0.72 
$ 0.68 
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Statement (USD $)
In Millions, unless otherwise specified
11 Months Ended 12 Months Ended
Feb. 2, 2013
Jan. 31, 2015
Feb. 1, 2014
Net earnings (loss) including noncontrolling interests
$ (420)
$ 1,235 
$ 523 
Foreign currency translation adjustments
15 
(103)
(147)
Unrealized gain (loss) on available-for-sale investments
2 
(3)
6 
Reclassification of foreign currency translations adjustments into earnings due to sale of business
0 
0 
654 
Reclassification of (gains) losses on available-for-sale investments into earnings
0 
(4)
2 
Comprehensive income (loss) including noncontrolling interests
(403)
1,125 
1,038 
Comprehensive income attributable to noncontrolling interests
(27)
(2)
(126)
Comprehensive income (loss) attributable to Best Buy Co., Inc. shareholders
$ (430)
$ 1,123 
$ 912 
Summary of Significant Accounting Policies
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 December 3, 2014, we entered into a definitive agreement to sell Jiangsu Five Star Appliance Co., Limited ("Five Star"). As a result of this agreement, Five Star was classified as held for sale as of January 31, 2015. 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 expert service at unbeatable price more than 1.5 billion times a year to the consumers, small business owners and educators who visit our stores, engage with Geek Squad agents or use our websites or mobile applications. We have retail and online operations in the U.S., Canada and Mexico. We have two operating segments: Domestic and International. The Domestic segment is comprised of store, online and call center operations in all states, districts and territories of the U.S., operating under the brand names Best Buy, Best Buy Mobile, Geek Squad, Magnolia Audio Video and Pacific Sales. The International segment is comprised of: (i) all Canada store, online and call center operations, operating under the brand names Best Buy, Best Buy Mobile, Future Shop and Geek Squad and (ii) all Mexico store operations operating under the brand names Best Buy, Best Buy Express and Geek Squad.

In addition to our retail store operations, we also operate websites including bestbuy.com, bestbuy.ca, futureshop.ca and bestbuy.com.mx.

Fiscal Year

On November 2, 2011, our Board of Directors approved a change in our fiscal year-end from the Saturday nearest the end of February to the Saturday nearest the end of January, effective beginning with our fiscal year 2013. As a result of this change, our fiscal year 2013 was an 11-month transition period beginning March 4, 2012, through February 2, 2013. Concurrent with the change, we began consolidating the results of our Europe, China and Mexico operations on a one-month lag, compared to a two-month lag in prior years, to continue aligning the fiscal reporting periods of our international operations with statutory filing requirements. In these consolidated statements, including the notes thereto, financial results for fiscal 2013 are for an 11-month period. Corresponding results for fiscal 2015 and fiscal 2014 are both for 12-month periods.

As a result of the 11-month transition period for fiscal 2013, the month of January 2012 was not captured in our consolidated fiscal 2013 (11-month) results for those entities reported on a one-month lag. As a result, the Consolidated Statements of Cash Flows includes a net reconciling adjustment for the cash flows as a result of the exclusion of January 2012 in fiscal 2013 (11-month). The total adjustment was $74 million, primarily due to $50 million of cash used in financing activities and $18 million of cash used in investing activities.

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 2015, 2014 or 2013 (11-month).

In preparing the accompanying consolidated financial statements, we evaluated the period from February 1, 2015, through the date the financial statements were issued for material subsequent events requiring recognition or disclosure. Other than as described in Note 12, Contingencies and Commitments, and Note 13, Subsequent Event, 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.

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 31, 2015, and February 1, 2014, were $1,660 million and $1,705 million, respectively, and the weighted-average interest rates were 0.4% and 0.5%, respectively.

Outstanding checks in excess of funds on deposit (book overdrafts) totaled $0 million and $62 million at January 31, 2015, and February 1, 2014, respectively, and are reflected within accounts payable in our Consolidated Balance Sheets.

Receivables

Receivables consist principally of amounts due from mobile phone network operators for commissions earned; banks for customer credit card, debit card and electronic benefits transfer (EBT) 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 $59 million and $104 million at January 31, 2015, and February 1, 2014, 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 $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. Restricted cash totaled $310 million at February 1, 2014 and is included in other current assets or other assets in our Consolidated Balance Sheet. Such balances are pledged as collateral or restricted to use for vendor payables, 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, 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 lease is comprised of buildings and equipment used in our operations. The related depreciation for capital lease assets is included in depreciation expense. The carrying value of property under capital lease was $44 million and $58 million at January 31, 2015, and February 1, 2014, respectively, net of accumulated depreciation of $75 million and $62 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 lease
 
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. When an impairment loss is recognized, the carrying amount of the asset is reduced to its estimated fair value based on quoted market prices or other valuation techniques (e.g., 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.

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 31, 2015, and February 1, 2014, the obligation associated with vacant properties included in accrued liabilities in our Consolidated Balance Sheets was $26 million and $33 million, respectively, and the obligation associated with vacant properties included in long-term liabilities in our Consolidated Balance Sheets was $43 million and $86 million, respectively. The obligation associated with vacant properties at January 31, 2015, and February 1, 2014, 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 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 31, 2015, and February 1, 2014, deferred rent included in accrued liabilities in our Consolidated Balance Sheets was $31 million and $36 million, respectively, and deferred rent included in long-term liabilities in our Consolidated Balance Sheets was $195 million and $232 million, respectively.

We also lease certain equipment under noncancelable operating and capital leases. In addition, we have financing leases for which the gross cost of constructing the asset is included in property and equipment, and amounts reimbursed from the landlord are recorded as financing obligations. 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 2015 was Best Buy Domestic.

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. In fiscal 2015, 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 2015.

In fiscal 2013 (11-month), initial goodwill impairment assessments as of November 4, 2012, based on forecasts in place at that time, indicated that fair value exceeded carrying value for each reporting unit. However, operating performance in our Best Buy Canada and Five Star reporting units fell significantly below expectations in the later part of the fiscal fourth quarter. Therefore, we updated our forecasts for Best Buy Canada and Five Star and tested for goodwill impairment as of the end of fiscal 2013 (11-month). The updated forecasts, which were used as the basis for our discounted cash flow ("DCF") valuations for goodwill testing purposes, reflected significantly lower cash flows than previously forecast. Our analysis for step one of detailed impairment testing indicated that carrying values exceeded fair values for both Best Buy Canada and Five Star. Step two entailed allocating the fair values determined from step one to the fair value of all recognized and appropriately unrecognized assets and liabilities to determine the implied fair value of goodwill. In both cases, this analysis led to the conclusion that the goodwill had no value, and therefore we recorded full impairment of the goodwill associated with Best Buy Canada ($611 million) and Five Star ($208 million). The Canada goodwill impairment is included in continuing operations in our International segment, and the Five Star goodwill impairment is included in discontinued operations.

Tradenames and Customer Relationships

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. We also have an indefinite-lived tradename related to Future Shop included 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. No material impairments were identified during fiscal 2015.

The changes in the carrying amount of goodwill and indefinite-lived tradenames by segment were as follows in fiscal 2015, 2014 and 2013 (11-month) ($ in millions):
 
Goodwill
 
Indefinite-Lived Tradenames
 
Domestic
 
International
 
Total
 
Domestic
 
International
 
Total
Balances at March 3, 2012
$
516

 
$
819

 
$
1,335

 
$
19

 
$
111

 
$
130

Acquisitions(1)
15

 
—

 
15

 
—

 
—

 
—

Impairments
(3
)
 
(819
)
 
(822
)
 
—

 
—

 
—

Changes in foreign currency exchange rates
—

 
—

 
—

 
—

 
1

 
1

Balances at February 2, 2013
528

 
—

 
528

 
19

 
112

 
131

Sale of business(2)
(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

Impairments
—

 
—

 
—

 
(1
)
 
—

 
(1
)
Sale of business(3)
—

 
—

 
—

 
—

 
(37
)
 
(37
)
Changes in foreign currency exchange rates
—

 
—

 
—

 
—

 
(6
)
 
(6
)
Balances at January 31, 2015
$
425

 
$
—

 
$
425

 
$
18

 
$
39

 
$
57


(1)
Represents goodwill acquired, primarily as a result of an acquisition made by mindSHIFT in fiscal 2013 (11-month).
(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 Five Star indefinite-lived tradenames classified as held for sale at January 31, 2015.
The following table provides the gross carrying amount of goodwill and cumulative goodwill impairment losses ($ in millions):
 
January 31, 2015
 
February 1, 2014
 
Gross Carrying
Amount(1)
 
Cumulative
Impairment(1)
 
Gross Carrying
Amount
 
Cumulative
Impairment
Goodwill
$
1,100

 
$
(675
)
 
$
1,308

 
$
(883
)

(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 31, 2015
 
February 1, 2014
Accrued liabilities
$
78

 
$
88

Long-term liabilities
53

 
52

Total
$
131

 
$
140



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 31, 2015, and February 1, 2014, 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 31, 2015, and February 1, 2014, 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

Our revenue arises primarily from sales of merchandise and services. We also record revenue from sales of service contracts, extended warranties, other commissions and credit card programs. Revenue excludes sales taxes collected.

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 is recognized for store sales when the customer receives and pays for the merchandise. For online sales, we defer revenue and the related product costs for shipments that are in-transit to the customer and recognize revenue at the time the customer receives the product. Online customers typically receive goods within a few days of shipment. Revenue from merchandise sales and services is reported net of sales returns, including an estimate of future returns based on historical return rates, with a corresponding reduction to cost of sales. Our sales returns reserve was $25 million and $13 million at January 31, 2015, and February 1, 2014, respectively.

We sell service contracts and extended warranties that typically have terms ranging from 3 months to 4 years. We also receive commissions for customer subscriptions with various third parties, including mobile phone network operators. In instances where we are deemed to be the obligor on the service contract or subscription, the service and commission revenue is deferred and recognized ratably over the term of the service contract or subscription period. In instances where we are not deemed to be the obligor on the service contract or subscription, commissions are recognized in revenue when such commissions have been earned, primarily driven by commencement of service to the customer. Service and commission revenues earned from the sale of extended warranties represented 2.1%, 2.2% and 2.5% of revenue in fiscal 2015, 2014 and 2013 (11-month), 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.

At January 31, 2015, and February 1, 2014, short-term deferred revenue was $376 million, of which $50 million is included in current liabilities held for sale, and $399 million, respectively. At January 31, 2015, and February 1, 2014, deferred revenue included within long-term liabilities in our Consolidated Balance Sheets was $49 million and $50 million, respectively.

For additional information related to our credit card arrangements and customer loyalty programs, see Credit Services and Financing and Sales Incentives, respectively, below.

Gift Cards

We sell gift cards to our customers in our retail stores, through our websites and through selected 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. At that time, we recognize breakage income for those cards for which the likelihood of redemption is deemed remote and we do not have a legal obligation to remit the value of such unredeemed gift cards to the relevant jurisdictions. Gift card breakage income is included in revenue in our Consolidated Statements of Earnings.

Gift card breakage income was as follows in fiscal 2015, 2014 and 2013 (11-month) ($ in millions):
 
 
12-Month
 
12-Month
 
11-Month
 
 
2015
 
2014
 
2013
Gift card breakage income
 
$
19

 
$
53

 
$
46



Credit Services and Financing

In the U.S., we have an agreement with a bank for the issuance of promotional financing and customer loyalty credit cards bearing the Best Buy brand. Under the agreement, the bank manages and directly extends credit to our customers. Cardholders who choose promotional financing can receive deferred-interest financing on qualifying purchases. The bank is the sole owner of the accounts receivable generated under the program and accordingly, we do not hold any consumer receivables related to these programs. We earn revenue from the bank based primarily on the performance of the portfolio.
 
We also have agreements for promotional financing and credit cards with banks for our businesses in Canada and Mexico, and we account for these programs in a manner consistent with the U.S. agreement.
 
In addition, we also accept Visa®, MasterCard®, Discover®, JCB® and American Express® credit cards, as well as debit cards from all major international networks.

Sales Incentives

We frequently offer sales incentives that entitle our customers to receive a reduction in the price of a product or service. Sales incentives include discounts, coupons and other offers that entitle a customer to receive a reduction in the price of a product or service either at the point of sale or by submitting a claim for a refund or rebate. For sales incentives issued to a customer in conjunction with a sale of merchandise or services for which we are the obligor, 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. There are two primary ways that members may participate and earn loyalty points.
 
First, we have customer loyalty programs where members earn points for each purchase. Depending on the customer's membership level within our loyalty program, certificates expire either 2 or 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.
 
Second, under our credit card agreement, we have a customer loyalty credit card bearing the Best Buy brand. Cardholders earn points for purchases made at our stores and related websites in the U.S., as well as purchases at other merchants. Points earned entitle cardholders to receive certificates that may be redeemed on future purchases at our stores and related websites. Certificates expire either 2 or 12 months from the date of issuance. The retail value of points earned by our cardholders 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 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 to promote a vendor's products; 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, and travel and lodging.


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, 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 $711 million, $757 million and $703 million in fiscal 2015, 2014 and 2013 (11-month), respectively.
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).
Discontinued Operations
Discontinued Operations
Discontinued Operations

Discontinued operations comprise the following:

Domestic Segment

mindSHIFT – 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. The assets and liabilities of our Five Star business are classified as held for sale in the Consolidated Balance Sheets and the results of Five Star are presented as discontinued operations in the Consolidated Statements of Earnings.

The composition of assets and liabilities held for sale as of January 31, 2015, was as follows ($ in millions):
 
January 31, 2015
Cash and cash equivalents
$
194

Merchandise inventories
264

Other current assets
226

Net property and equipment
130

Other assets
37

Total assets
$
851

 
 
Accounts payable
$
452

Other current liabilities
133

Long-term liabilities
18

Total liabilities
$
603



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, and we received the first such deferred cash payment on June 26, 2014.

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 2015, 2014 and 2013 (11-month) were as follows ($ in millions):
 
12-Month
 
11-Month
 
2015
 
2014
 
2013
Revenue
$
1,564

 
$
4,615

 
$
6,834

Restructuring charges(1)
18

 
110

 
34

Loss from discontinued operations before income tax benefit(2)
(12
)
 
(235
)
 
(187
)
Income tax benefit(3)
—

 
31

 
30

Gain on sale of discontinued operations(4)
1

 
32

 
—

Equity in loss of affiliates
—

 
—

 
(4
)
Net loss from discontinued operations including noncontrolling interests
(11
)
 
(172
)
 
(161
)
Net (earnings) loss from discontinued operations attributable to noncontrolling interests
(2
)
 
9

 
(21
)
Net loss from discontinued operations attributable to Best Buy Co., Inc. shareholders
$
(13
)
 
$
(163
)
 
$
(182
)
(1)
See Note 4, Restructuring Charges, for further discussion of the restructuring charges associated with discontinued operations.
(2)
Includes the $175 million impairment to write down the book value of our investment in Best Buy Europe to fair value in fiscal 2014 and the $208 million goodwill impairment related to our Five Star reporting unit in fiscal 2013 (11-month).
(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.
Fair Value Measurements
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 tables set forth by level within the fair value hierarchy, our financial assets and liabilities that were accounted for at fair value on a recurring basis at January 31, 2015, and February 1, 2014, according to the valuation techniques we used to determine their fair values ($ in millions).
 
 
 
Fair Value Measurements Using Inputs Considered as
 
Fair Value at
January 31, 2015
 
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
 
 
 
 
 
 
 
Money market funds
$
265

 
$
265

 
$
—

 
$
—

Corporate bonds
13

 
—

 
13

 
—

Commercial paper
165

 
—

 
165

 
—

Short-term investments
 
 
 
 
 
 
 
Corporate bonds
276

 
—

 
276

 
—

Commercial paper
306

 
—

 
306

 
—

Other current assets
 
 
 
 
 
 
 
Foreign currency derivative instruments
30

 
—

 
30

 
—

Other assets
 
 
 
 
 
 
 
Interest rate swap derivative instruments
1

 
—

 
1

 
—

Auction rate securities
2

 
—

 
—

 
2

Marketable securities that fund deferred compensation
97

 
97

 
—

 
—

Assets held for sale
 
 
 
 
 
 
 
Cash and cash equivalents
 
 
 
 
 
 
 
Money market funds
16

 
16

 
—

 
—

 
 
 
 
Fair Value Measurements Using Inputs Considered as
 
Fair Value at
February 1, 2014
 
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
 
 
 
 
 
 
 
Money market funds
$
53

 
$
53

 
$
—

 
$
—

Commercial paper
80

 
—

 
80

 
—

Treasury bills
263

 
263

 
—

 
—

Short-term investments
 
 
 
 
 
 
 
Commercial paper
100

 
—

 
100

 
—

Other current assets


 
 

 
 

 
 

Foreign currency derivative instruments
2

 
—

 
2

 
—

Other assets


 
 

 
 

 
 

Auction rate securities
9

 
—

 
—

 
9

Marketable securities that fund deferred compensation
96

 
96

 
—

 
—

Liabilities


 
 

 
 

 
 

Accrued liabilities
 
 
 
 
 
 
 
Foreign currency derivative instruments
5

 
—

 
5

 
—


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.
 
Treasury Bills. Our Treasury bills were classified as Level 1 as they traded with sufficient frequency and volume to enable us to obtain pricing information on an ongoing basis.
 
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 Equity Securities. Our marketable equity securities were measured at fair value using quoted market prices. They were classified as Level 1 as they trade in an active market for which closing stock prices are readily available.
 
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 for fiscal 2015 and fiscal 2014 ($ in millions):
 
2015
 
2014
 
Impairments
 
Remaining Net
Carrying Value(1)
 
Impairments
 
Remaining Net
Carrying Value (1)
Continuing operations
 
 
 
 
 
 
 
Property and equipment (non-restructuring)
$
42

 
$
19

 
$
101

 
$
10

Restructuring activities(2)
 
 
 
 
 
 
 
Property and equipment
1

 
—

 
8

 
—

Investments
—

 
—

 
16

 
21

Total
$
43

 
$
19

 
$
125

 
$
31

Discontinued operations(3)
 
 
 
 
 
 
 
Property and equipment(4)
$
1

 
$
—

 
$
221

 
$
—

Tradename
—

 
—

 
4

 
—

Total
$
1

 
$
—

 
$
225

 
$
—

(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.
(4)
Includes the $175 million impairment to write down the book value of our investment in Best Buy Europe to fair value. Upon completion of the sale of Best Buy Europe as described in Note 2, Discontinued Operations, the remaining net carrying values of all assets have been reduced to zero.

All of the fair value remeasurements included in the table above were based on significant unobservable inputs (Level 3). Refer to Note 1, Summary of Significant Accounting Policies, for further information associated with the goodwill impairments. 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. For the tradename, fair value was derived using the relief from royalty method, as described in Note 1, Summary of Significant Accounting Policies. 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
Restructuring Charges
 
Summary
 
Restructuring charges incurred in fiscal 2015, 2014 and 2013 (11-month) were as follows ($ in millions):
 
12-Month
 
12-Month
 
11-Month
 
2015
 
2014
 
2013
Continuing operations
 
 
 
 
 
Renew Blue
$
11

 
$
155

 
$
171

Other restructuring activities
(6
)
 
(6
)
 
244

Total
5

 
149

 
415

Discontinued operations
 
 
 
 
 
Renew Blue
18

 
10

 
—

Other restructuring activities
—

 
100

 
34

Total (Note 2)
18

 
110

 
34

Total
$
23

 
$
259

 
$
449


 
Renew Blue Plan
 
In the fourth quarter of fiscal 2013 (11-month), we began implementing initiatives intended to reduce costs and improve operating performance. 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 for fiscal 2014 and 2015 and cost reductions will continue to be a priority in fiscal 2016. 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 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. We expect to continue to implement cost reduction initiatives throughout fiscal 2016, as we further analyze our operations and strategies.
 
We incurred $165 million of charges related to Renew Blue initiatives during fiscal 2014. Of the total charges, $129 million related to our Domestic segment, which consisted primarily of employee termination benefits, investment impairments, and property and equipment impairments. The remaining $36 million of charges related to our International segment and consisted of employee termination benefits, facility closure and other costs, and property and equipment impairments.

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 in our Consolidated Statements of Earnings. The restructuring charges from discontinued operations related to this plan are presented in loss from discontinued operations, net of tax.

The composition of the restructuring charges we incurred for this program in fiscal 2015, 2014 and 2013 (11-month), as well as the cumulative amount incurred through the end of fiscal 2015, was as follows ($ in millions):
 
Domestic
 
International
 
Total
 
12-Month 2015
 
12-Month 2014
 
11-Month 2013
 
Cumulative Amount
 
12-Month 2015
 
12-Month 2014
 
11-Month 2013
 
Cumulative Amount
 
12-Month 2015
 
12-Month 2014
 
11-Month 2013
 
Cumulative Amount
Continuing operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Inventory write-downs
$
—

 
$
—

 
$
1

 
$
1

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
1

 
$
1

Property and equipment impairments
—

 
7

 
7

 
14

 
1

 
1

 
23

 
25

 
1

 
8

 
30

 
39

Termination benefits
9

 
106

 
46

 
161

 
5

 
24

 
9

 
38

 
14

 
130

 
55

 
199

Investment impairments
—

 
16

 
27

 
43

 
—

 
—

 
—

 
—

 
—

 
16

 
27

 
43

Facility closure and other costs
1

 
—

 
3

 
4

 
(5
)
 
1

 
55

 
51

 
(4
)
 
1

 
58

 
55

Total continuing operations
10

 
129

 
84

 
223

 
1

 
26

 
87

 
114

 
11

 
155

 
171

 
337

Discontinued Operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Inventory write-downs
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

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
$
10

 
$
129

 
$
84

 
$
223

 
$
19

 
$
36

 
$
87

 
$
142

 
$
29

 
$
165

 
$
171

 
$
365

The following table summarizes our restructuring accrual activity during fiscal 2015 and 2014 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 2, 2013
$
54

 
$
54

 
$
108

Charges
133

 
16

 
149

Cash payments
(68
)
 
(23
)
 
(91
)
Adjustments(1)
(8
)
 
4

 
(4
)
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


(1)
Adjustments to termination benefits were due to higher-than-expected employee retention. Adjustments to facility closure and other costs represent change in sublease assumptions and reductions in our remaining lease obligations.    

Other Restructuring Activities

Over the last few fiscal years, we have initiated multiple restructuring programs in an effort to focus on our core business and reduce costs. These initiatives were comprised of the following:

•
Fiscal 2013 Europe Restructuring: In the third quarter of fiscal 2013 (11-month), we initiated a series of actions to restructure our Best Buy Europe operations in our International segment intended to improve operating performance. The costs incurred under this action consisted primarily of property and equipment impairments and employee termination benefits.

•
Fiscal 2013 U.S. Restructuring: In the first quarter of fiscal 2013 (11-month), we initiated a series of actions to restructure operations in our Domestic segment intended to improve operating performance. The actions included closure of 49 large-format Best Buy branded stores in the U.S. and changes to the store and corporate operating models. The costs of implementing the changes primarily consisted of facility closure costs, employee termination benefits and property and equipment (primarily store fixtures) impairments.

•
Fiscal 2012 Restructuring: In the third quarter of fiscal 2012, we implemented a series of actions to restructure operations in our Domestic and International segments that resulted in charges primarily related to property and equipment impairments and employee termination benefits. The actions within our Domestic segment included a decision to modify our strategy for certain mobile broadband offerings. In our International segment, we closed our large-format Best Buy branded stores in the U.K. and impaired certain information technology assets supporting the restructured operations.

•
Fiscal 2011 Restructuring: In the fourth quarter of fiscal 2011, we implemented a series of actions to restructure operations in our Domestic and International segments in order to improve performance and enhance customer service. The restructuring actions included plans to improve supply chain and operational efficiencies in our Domestic segment's operations, primarily focused on modifications to our distribution channels and exit from certain digital delivery services within our entertainment product category.

For continuing operations, the inventory write-downs related to these 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 in our Consolidated Statements of Earnings. The restructuring charges from discontinued operations related to these plan are presented in loss from discontinued operations, net of tax.

The composition of the restructuring charges we incurred for these programs in fiscal 2015, 2014 and 2013 (11-month), as well as the cumulative amount incurred through the end of fiscal 2015, were as follows ($ in millions):
 
Domestic
 
International
 
Total
 
12-Month 2015
 
12-Month 2014
 
11-Month 2013
 
Cumulative Amount
 
12-Month 2015
 
12-Month 2014
 
11-Month 2013
 
Cumulative Amount
 
12-Month 2015
 
12-Month 2014
 
11-Month 2013
 
Cumulative Amount
Continuing operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Inventory write-downs
$
—

 
$
—

 
$
—

 
$
28

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
28

Property and equipment impairments
—

 
—

 
17

 
49

 
—

 
—

 
—

 
112

 
—

 
—

 
17

 
161

Termination benefits
—

 
—

 
77

 
91

 
—

 
—

 
—

 
—

 
—

 
—

 
77

 
91

Facility closure and other costs
(6
)
 
(6
)
 
150

 
147

 
—

 
—

 
—

 
—

 
(6
)
 
(6
)
 
150

 
147

Total
(6
)
 
(6
)
 
244

 
315

 
—

 
—

 
—

 
112

 
(6
)
 
(6
)
 
244

 
427

Discontinued operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Inventory write-downs
—

 
—

 
—

 
—

 
—

 
7

 
—

 
33

 
—

 
7

 
—

 
33

Property and equipment impairments
—

 
—

 
—

 
15

 
—

 
45

 
12

 
188

 
—

 
45

 
12

 
203

Termination benefits
—

 
—

 
—

 
4

 
—

 
36

 
20

 
91

 
—

 
36

 
20

 
95

Tradename impairment
—

 
—

 
—

 
13

 
—

 
4

 
—

 
4

 
—

 
4

 
—

 
17

Facility closure and other costs
—

 
—

 
—

 
3

 
—

 
8

 
2

 
97

 
—

 
8

 
2

 
100

Total
—

 
—

 
—

 
35

 
—

 
100

 
34

 
413

 
—

 
100

 
34

 
448

Total
$
(6
)
 
$
(6
)
 
$
244

 
$
350

 
$
—

 
$
100

 
$
34

 
$
525

 
$
(6
)
 
$
94

 
$
278

 
$
875



The following table summarizes our restructuring accrual activity during fiscal 2015 and 2014 related to termination benefits and facility closure and other costs associated with these programs ($ in millions):
 
Termination Benefits
 
Facility
Closure and
Other Costs
 
Total
Balance at February 2, 2013
$
4

 
$
154

 
$
158

Charges
36

 
6

 
42

Cash payments
(4
)
 
(86
)
 
(90
)
Adjustments(1)
(36
)
 
(14
)
 
(50
)
Changes in foreign currency exchange rates
—

 
(2
)
 
(2
)
Balance at February 1, 2014
—


58

 
58

Charges
—

 
3

 
3

Cash payments
—

 
(21
)
 
(21
)
Adjustments(1)
—

 
(6
)
 
(6
)
Balance at January 31, 2015
$
—

 
$
34

 
$
34


(1)
Adjustments to termination benefits in fiscal 2014 were primarily due to the write-off of the remaining liability as a result of the sale of Best Buy Europe. Adjustments to facility closure and other costs represent change in sublease assumptions and reductions in our remaining lease obligations.
Debt
Debt
Debt
 
Short-Term Debt

U.S. Revolving Credit Facilities

Our $500 million 364-day senior unsecured revolving credit facility agreement with a syndicate of banks, which was entered into on June 25, 2013, expired on June 25, 2014.

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 31, 2015, and February 1, 2014, there were no borrowings outstanding and at January 31, 2015, $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 contain 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 31, 2015
 
February 1, 2014
2016 Notes
349

 
349

2018 Notes
500

 
500

2021 Notes
649

 
649

Interest rate swap valuation adjustments
1

 
—

Financing lease obligations, due 2016 to 2026, interest rates ranging from 3.0% to 8.1%
69

 
95

Capital lease obligations, due 2016 to 2035, interest rates ranging from 1.9% to 9.3%
52

 
63

Other debt, due 2017, interest rate 6.7%
1

 
1

Total long-term debt
1,621

 
1,657

Less: current portion
(41
)
 
(45
)
Total long-term debt, less current portion
$
1,580

 
$
1,612



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”). The 2016 Notes bear 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.
 
Other
 
The fair value of long-term debt approximated $1,677 million and $1,690 million at January 31, 2015, and February 1, 2014, respectively, based primarily on the quoted market prices, compared to carrying values of $1,621 million and $1,657 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 31, 2015, the future maturities of long-term debt, including capitalized leases, consisted of the following ($ in millions):
Fiscal Year
 
 
2016
 
$
41

2017
 
375

2018
 
18

2019
 
511

2020
 
6

Thereafter
 
670

Total long-term debt
 
$
1,621

Derivatives (Notes)
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

In fiscal 2015, we entered into 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. We had no net investment hedge activity during fiscal 2014.

Interest Rate Swaps

In the fourth quarter of fiscal 2015, we entered into receive fixed-rate, pay variable-rate interest rate swaps to mitigate the effect of interest rate fluctuations on a portion of our 2018 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. We had no interest rate swap activity in fiscal 2014.

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 and on certain forecast inventory purchases 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 31, 2015 and February 1, 2014:
 
January 31, 2015
 
February 1, 2014
Contract Type
Assets
Liabilities
 
Assets
Liabilities
Derivatives designated as net investment hedges(1)
19

—

 
—

—

Derivatives designated as interest rate swaps(2)
1

—

 
—

—

No hedge designation (foreign exchange forward contracts)(1)
11

—

 
2

5

Total
31

—

 
2

5

(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 2015 and 2014:
 
2015
Contract Type
Pre-tax Gain(Loss) Recognized in OCI
 
Gain(Loss) Reclassified from Accumulated OCI to Earnings (Effective Portion)
Derivatives designated as net investment hedges
22

 
—




The following table presents the effects of derivatives not designated as hedging instruments on our consolidated statements of earnings for fiscal 2015 and 2014:
 
Gain (Loss) Recognized within SG&A
Contract Type
2015
 
2014
No hedge designation (foreign exchange forward contracts)
12

 
5



The following table presents the notional amounts of our derivative instruments at January 31, 2015 and February 1, 2014:
 
Notional Amount
Contract Type
January 31, 2015
 
February 1, 2014
Derivatives designated as net investment hedges
197

 
—

Derivatives designated as interest rate swaps
145

 
—

No hedge designation (foreign exchange forward contracts)
212

 
157

Total
554

 
157

Shareholders' Equity
Shareholders Equity Including Stock Compensation Plans, Earnings Per Share, Repurchase of Common Stock, Comprehensive Income
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 31, 2015, a total of 22.7 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- and four-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 2015, 2014 and 2013 (11-month), 0.3 million, 0.6 million and 1.0 million shares, respectively, were purchased through our employee stock purchase plans. At January 31, 2015, and February 1, 2014, plan participants had accumulated $1 million and $2 million, respectively, to purchase our common stock pursuant to these plans.

Stock-based compensation expense was as follows in fiscal 2015, 2014 and 2013 (11-month) ($ in millions):
 
12-Month
 
12-Month
 
11-Month
 
2015
 
2014
 
2013
Stock options
$
17

 
$
25

 
$
43

Share awards
 
 
 
 
 
Market-based
10

 
9

 
2

Time-based
60

 
62

 
62

Employee stock purchase plans
—

 
1

 
5

Total
$
87

 
$
97

 
$
112


 
Stock Options
 
Stock option activity was as follows in fiscal 2015:
 
Stock
Options
 
Weighted-
Average
Exercise Price
per Share
 
Weighted-Average
Remaining
Contractual
Term (in years)
 
Aggregate
Intrinsic Value (in millions)
Outstanding at February 1, 2014
22,101,000

 
$
36.38

 
 
 
 

Granted
1,524,000

 
$
29.90

 
 
 
 

Exercised
(1,679,000
)
 
$
25.31

 
 
 
 

Forfeited/Canceled
(4,604,000
)
 
$
36.62

 
 
 
 

Outstanding at January 31, 2015
17,342,000

 
$
36.81

 
4.9
 
$
67

Vested or expected to vest at January 31, 2015
17,095,000

 
$
36.91

 
4.8
 
$
66

Exercisable at January 31, 2015
13,995,000

 
$
39.37

 
4.0
 
$
36


 
The weighted-average grant-date fair value of stock options granted during fiscal 2015, 2014 and 2013 (11-month) was $9.09, $7.77 and $5.11, 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 2015, 2014 and 2013 (11-month), was $13 million, $39 million and $0 million, respectively. At January 31, 2015, there was $19 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 $42 million, $158 million and $1 million in fiscal 2015, 2014 and 2013 (11-month), respectively.

There was $5 million, $13 million and $0 million of income tax benefits realized from stock option exercises in fiscal 2015, 2014 and 2013 (11-month), respectively.

In fiscal 2015, 2014 and 2013 (11-month), 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:
 
 
12-Month
 
12-Month
 
11-Month
Valuation Assumptions(1)
 
2015
 
2014
 
2013
Risk-free interest rate(2)
 
0.1% – 2.4%

 
0.1% – 1.8%

 
0.1% – 2.0%

Expected dividend yield
 
2.5
%
 
2.0
%
 
2.2
%
Expected stock price volatility(3)
 
40
%
 
46
%
 
44
%
Expected life of stock options (in years)(4)
 
6.0

 
5.9

 
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 based on generally accepted valuation techniques and the closing market price of our stock on the date of grant. A summary of the status of our nonvested market-based share awards at January 31, 2015, and changes during fiscal 2015, is as follows:
Market-Based Share Awards
 
Shares
 
Weighted-Average Fair Value per Share
Outstanding at February 1, 2014
 
1,636,000

 
$
20.91

Granted
 
564,000

 
$
29.22

Vested
 
(127,000
)
 
$
19.16

Forfeited/Canceled
 
(369,000
)
 
$
19.23

Outstanding at January 31, 2015
 
1,704,000

 
$
24.16



At January 31, 2015, there was $20 million of unrecognized compensation expense related to nonvested market-based share awards that we expect to recognize over a weighted-average period of 1.9 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 31, 2015, and changes during fiscal 2015, is as follows:
Time-Based Share Awards
 
Shares
 
Weighted-Average Fair Value per Share
Outstanding at February 1, 2014
 
7,065,000

 
$
21.49

Granted
 
2,609,000

 
$
28.49

Vested
 
(2,657,000
)
 
$
22.77

Forfeited/Canceled
 
(1,474,000
)
 
$
20.68

Outstanding at January 31, 2015
 
5,543,000

 
$
24.40



At January 31, 2015, there was $84 million of unrecognized compensation expense related to nonvested time-based share awards that we expect to recognize over a weighted-average period of 1.9 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 31, 2015, options to purchase 17.3 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
2.8

 
20
%
 
$
22.99

 
3.1

 
94
%
 
$
25.60

 
5.9

 
34
%
 
$
24.38

Out-of-the-money
11.2

 
80
%
 
$
43.42

 
0.2

 
6
%
 
$
34.25

 
11.4

 
66
%
 
$
43.27

Total
14.0

 
100
%
 
$
39.37

 
3.3

 
100
%
 
$
26.11

 
17.3

 
100
%
 
$
36.81



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 in fiscal 2015, 2014 and 2013 (11-month):
 
12-Month
 
12-Month
 
11-Month
 
2015
 
2014
 
2013(1)
Numerator (in millions):
 
 
 
 
 
Net earnings (loss) from continuing operations attributable to Best Buy Co., Inc., shareholders, diluted
$
1,246

 
$
695

 
$
(259
)
Denominator (in millions):
 
 
 
 
 
Weighted-average common shares outstanding
349.5

 
342.1

 
338.6

Effect of potentially dilutive securities:
 
 
 
 
 
Stock options and other
4.1

 
5.5

 
—

Weighted-average common shares outstanding, assuming dilution
353.6

 
347.6

 
338.6

Net earnings (loss) per share from continuing operations attributable to Best Buy Co., Inc. shareholders
 
 
 
 
 
Basic
$
3.57

 
$
2.03

 
$
(0.76
)
Diluted
$
3.53

 
$
2.00

 
$
(0.76
)
(1)
The calculation of diluted loss per share for fiscal 2013 (11-month) does not include potentially dilutive securities because their inclusion would be anti-dilutive (i.e., reduce the net loss per share).

Repurchase of Common Stock
 
In June 2011, our Board of Directors authorized a $5.0 billion share repurchase program. The June 2011 program replaced our prior $5.5 billion share repurchase program authorized in June 2007. There is no expiration date governing the period over which we can repurchase shares under the June 2011 share repurchase program.

The following table presents the amount and cost of shares we repurchased and retired in fiscal 2015, 2014 and 2013 (11-month) under the June 2011 program and the June 2007 program ($ and shares in millions):
 
12-Month
 
12-Month
 
11-Month
 
2015
 
2014
 
2013
June 2011 Program
 
 
 
 
 
Total number of shares repurchased
—

 
—

 
6.3

Total cost of shares repurchased
$
—

 
$
—

 
$
122


 
At January 31, 2015, $4.0 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 2015, 2014, and 2013 (11-month), respectively ($ in millions):
 
Foreign Currency Translation
 
Available-For-Sale Investments
 
Total
Balances at March 3, 2012
93

 
(3
)
 
90

Adjustment for fiscal year-end change
11

 
—

 
11

Balances at January 28, 2012
104

 
(3
)
 
101

Foreign currency translation adjustments
9

 
—

 
9

Unrealized gains on available-for-sale investments
—

 
2

 
2

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


 
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
Leases

The composition of net rent expense for all operating leases, including leases of property and equipment, was as follows in fiscal 2015, 2014 and 2013 (11-month) ($ in millions):
 
12-Month
 
12-Month
 
11-Month
 
2015
 
2014
 
2013
Minimum rentals
$
848

 
$
864

 
$
809

Contingent rentals
2

 
2

 
1

Total rent expense
850

 
866

 
810

Less: sublease income
(18
)
 
(18
)
 
(16
)
Net rent expense
$
832

 
$
848

 
$
794



The future minimum lease payments under our capital, financing and operating leases by fiscal year (not including contingent rentals) at January 31, 2015, were as follows ($ in millions):
Fiscal Year
 
Capital
Leases
 
Financing
Leases
 
Operating
Leases(1)
2016
 
$
22

 
$
24

 
$
873

2017
 
11

 
18

 
771

2018
 
7

 
14

 
641

2019
 
4

 
9

 
499

2020
 
2

 
6

 
365

Thereafter
 
15

 
9

 
727

Subtotal
 
61

 
80

 
$
3,876

Less: imputed interest
 
(9
)
 
(11
)
 
 

Present value
 
$
52

 
$
69

 
 


(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 $1.2 billion at January 31, 2015.

Total minimum lease payments have not been reduced by minimum sublease rent income of approximately $117 million due under future noncancelable subleases.
Benefit Plans
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 $60 million, $65 million and $62 million in fiscal 2015, 2014 and 2013 (11-month), 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 $44 million and $54 million at January 31, 2015, and February 1, 2014, respectively, and is included in long-term liabilities. We manage the risk of changes in the fair value of the liability for deferred compensation by electing to match our liability under the plan with investment vehicles that offset a substantial portion of our exposure. The cash value of the investment vehicles, which includes funding for future deferrals, was $97 million and $96 million at January 31, 2015, and February 1, 2014, respectively, and is included in other assets. Both the asset and the liability are carried at fair value.
Income Taxes
Income Taxes
Income Taxes

The following is a reconciliation of the federal statutory income tax rate to income tax expense in fiscal 2015, 2014 and 2013 (11-month) ($ in millions):
 
12-Month
 
12-Month
 
11-Month
 
2015
 
2014
 
2013
Federal income tax at the statutory rate
$
485

 
$
379

 
$
1

State income taxes, net of federal benefit
43

 
26

 
(2
)
(Benefit) expense from foreign operations
(23
)
 
(23
)
 
45

Other
(11
)
 
6

 
5

Legal entity reorganization
(353
)
 
—

 
—

Goodwill impairments (non-deductible)
—

 
—

 
214

Income tax expense
$
141

 
$
388

 
$
263

Effective income tax rate
10.1
%
 
35.8
%
 
7,152.3
%

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 is 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 results 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 2015, 2014 and 2013 (11-month) ($ in millions):
 
12-Month
 
12-Month
 
11-Month
 
2015
 
2014
 
2013
United States
$
1,201

 
$
699

 
$
286

Outside the United States
186

 
384

 
(282
)
Earnings from continuing operations before income tax expense
$
1,387

 
$
1,083

 
$
4



Income tax expense was comprised of the following in fiscal 2015, 2014 and 2013 (11-month) ($ in millions):
 
12-Month
 
12-Month
 
11-Month
 
2015
 
2014
 
2013
Current:
 
 
 
 
 
Federal
$
354

 
$
305

 
$
211

State
51

 
46

 
(3
)
Foreign
33

 
55

 
49

 
438

 
406

 
257

Deferred:
 
 
 
 
 
Federal
(275
)
 
(22
)
 
25

State
(26
)
 
1

 
(1
)
Foreign
4

 
3

 
(18
)
 
(297
)
 
(18
)
 
6

Income tax expense
$
141

 
$
388

 
$
263



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 31, 2015
 
February 1, 2014
Accrued property expenses
$
129

 
$
162

Other accrued expenses
91

 
133

Deferred revenue
93

 
81

Compensation and benefits
103

 
114

Stock-based compensation
94

 
110

Goodwill and intangibles
287

 
—

Loss and credit carryforwards
156

 
176

Other
88

 
103

Total deferred tax assets
1,041

 
879

Valuation allowance
(143
)
 
(158
)
Total deferred tax assets after valuation allowance
898

 
721

Property and equipment
(251
)
 
(286
)
Goodwill and intangibles
—

 
(75
)
Inventory
(54
)
 
(60
)
Other
(27
)
 
(16
)
Total deferred tax liabilities
(332
)
 
(437
)
Net deferred tax assets
$
566

 
$
284



Deferred tax assets and liabilities included in our Consolidated Balance Sheets were as follows ($ in millions):
 
January 31, 2015
 
February 1, 2014
Other current assets
$
252

 
$
261

Current assets held for sale
3

 
—

Other assets
322

 
44

Other current liabilities
—

 
—

Other long-term liabilities
—

 
(21
)
Long-term liabilities held for sale
(11
)
 
—

Net deferred tax assets
$
566

 
$
284



At January 31, 2015, we had total net operating loss carryforwards from international operations of $118 million, of which $110 million will expire in various years through 2025 and the remaining amounts have no expiration. Additionally, we had acquired U.S. federal net operating loss carryforwards of $21 million which expire between 2023 and 2030, U.S. federal foreign tax credit carryforwards of $1 million which expire between 2022 and 2024, state credit carryforwards of $12 million which expire in 2024, and state capital loss carryforwards of $4 million which expire in 2019.

At January 31, 2015, a valuation allowance of $143 million had been established, of which $1 million is against U.S. federal foreign tax credit carryforwards, $11 million is against U.S. federal and state capital loss carryforwards, $6 million is against state credit carryforwards and other state deferred tax assets, and $125 million is against certain international net operating loss carryforwards and other international deferred tax assets. The $15 million decrease from February 1, 2014, is primarily due to the decrease in the valuation allowance against the U.S. federal foreign tax credit carryforward.

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 $770 million at January 31, 2015. 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 2015, 2014 and 2013 (11-month) ($ in millions):
 
12-Month
 
12-Month
 
11-Month
 
2015
 
2014
 
2013
Balance at beginning of period
$
370

 
$
383

 
$
387

Gross increases related to prior period tax positions
33

 
38

 
10

Gross decreases related to prior period tax positions
(88
)
 
(67
)
 
(22
)
Gross increases related to current period tax positions
114

 
34

 
37

Settlements with taxing authorities
(9
)
 
(3
)
 
(10
)
Lapse of statute of limitations
(10
)
 
(15
)
 
(19
)
Balance at end of period
$
410

 
$
370

 
$
383



Unrecognized tax benefits of $297 million, $228 million and $231 million at January 31, 2015, February 1, 2014, and February 2, 2013, 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 income of $6 million was recognized in fiscal 2015. At January 31, 2015, February 1, 2014, and February 2, 2013, we had accrued interest of $78 million, $91 million and $85 million, respectively, along with accrued penalties of $2 million, $2 million and $0 million at January 31, 2015, February 1, 2014, and February 2, 2013, 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 Information
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 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 2015, 2014 and 2013 (11-month) ($ in millions):
 
12-Month
 
12-Month
 
11-Month
 
2015
 
2014
 
2013
Revenue
 
 
 
 
 
Domestic
$
36,055

 
$
35,831

 
$
33,222

International
4,284

 
4,780

 
5,030

Total revenue
$
40,339

 
$
40,611

 
$
38,252

Percentage of revenue, by revenue category
 
 
 
 
 
Domestic:
 
 
 
 
 
Consumer Electronics
31
%
 
30
%
 
32
%
Computing and Mobile Phones
47
%
 
48
%
 
45
%
Entertainment
9
%
 
8
%
 
10
%
Appliances
7
%
 
7
%
 
6
%
Services
5
%
 
6
%
 
6
%
Other
1
%
 
1
%
 
1
%
Total
100
%
 
100
%
 
100
%
International:
 
 
 
 
 
Consumer Electronics
30
%
 
29
%
 
32
%
Computing and Mobile Phones
49
%
 
50
%
 
47
%
Entertainment
9
%
 
10
%
 
10
%
Appliances
5
%
 
5
%
 
5
%
Services
6
%
 
6
%
 
6
%
Other
1
%
 
< 1%

 
< 1%

Total
100
%
 
100
%
 
100
%
Operating income (loss)
 
 
 
 
 
Domestic
$
1,437

 
$
1,145

 
$
731

International(1)
13

 
(1
)
 
(641
)
Total operating income
1,450

 
1,144

 
90

Other income (expense)
 
 
 
 
 
Gain on sale of investments
13

 
20

 
—

Investment income and other
14

 
19

 
13

Interest expense
(90
)
 
(100
)
 
(99
)
Earnings from continuing operations before income tax expense
$
1,387

 
$
1,083

 
$
4

Assets(2)
 
 
 
 
 
Domestic
$
12,998

 
$
11,146

 
$
10,874

International
2,258

 
2,867

 
5,913

Total assets
$
15,256

 
$
14,013

 
$
16,787

Capital expenditures(2)
 
 
 
 
 
Domestic
$
519

 
$
440

 
$
488

International
42

 
107

 
217

Total capital expenditures
$
561

 
$
547

 
$
705

Depreciation(2)
 
 
 
 
 
Domestic
$
575

 
$
565

 
$
561

International
81

 
136

 
233

Total depreciation
$
656

 
$
701

 
$
794

(1)
Included within our International segment's operating loss for fiscal 2013 (11-month) is a $611 million goodwill impairment charge.
(2)
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 2015, 2014 and 2013 (11-month) ($ in millions):
 
12-Month
 
12-Month
 
11-Month
 
2015
 
2014
 
2013
Net sales to customers
 
 
 
 
 
United States
$
36,055

 
$
35,831

 
$
33,222

Canada
4,047

 
4,522

 
4,818

Other
237

 
258

 
212

Total revenue
$
40,339

 
$
40,611

 
$
38,252

Long-lived assets
 
 
 
 
 
United States
$
2,100

 
$
2,190

 
$
2,404

Europe
—

 
—

 
352

Canada
174

 
244

 
341

China
—

 
139

 
142

Other
21

 
25

 
31

Total long-lived assets
$
2,295

 
$
2,598

 
$
3,270

Contingencies and Commitments
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. Briefing is complete. Oral argument is expected to be scheduled later in 2015. 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.

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 $67 million in the first quarter of fiscal 2016. We will continue to litigate against the remaining defendants and expect further settlement discussions as this matter proceeds; however, it is uncertain whether we will recover additional settlement sums or a favorable verdict at trial.

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. We expect our future contractual obligations to Accenture to range from $17 million to $89 million per year through fiscal 2018, the end of the periods under contract.

We had outstanding letters of credit and bankers' acceptances for purchase obligations with an aggregate fair value of $100 million at January 31, 2015.
Subsequent Events (Notes)
Subsequent Events [Text Block]
Subsequent Events

On February 13, 2015, we completed the sale of our Five Star business in China. The expected gain on the sale will be included in the results of discontinued operations in the first quarter of fiscal 2016.

On March 3, 2015, we announced a plan to return capital to shareholders. The plan includes a special, one-time dividend of $0.51 per share, or approximately $180 million, and a 21% increase in our regular quarterly dividend to $0.23 per share. We plan to resume share repurchases under the June 2011 program, with the intent to repurchase $1 billion in shares over the next three years.

In March 2015, we made a decision to consolidate Future Shop and Best Buy stores and websites in Canada under the Best Buy brand. This resulted in permanently closing 66 Future Shop stores and converting 65 Future Shop stores to the Best Buy brand. The costs of implementing these changes primarily consist of lease exit costs, employee severance and asset impairments. We expect to incur total pre-tax restructuring charges and non-restructuring impairments in the range of approximately $200 million to $280 million related to the actions. We expect that the majority of these charges will be recorded in the first quarter of fiscal 2016. The total charges includes approximately $140 million to $180 million of cash charges.
Supplementary Financial Information
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 2015 and 2014 (unaudited) ($ in millions):
 
Quarter
 
12-Month
 
1st
 
2nd
 
3rd
 
4th
 
2015
Revenue
$
8,639

 
$
8,459

 
$
9,032

 
$
14,209

 
$
40,339

Comparable sales % change(1)
(1.8
)%
 
(2.2
)%
 
2.9
%
 
2.0
%
 
0.5
%
Gross profit
$
1,967

 
$
1,978

 
$
2,076

 
$
3,026

 
$
9,047

Operating income(2)
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


 
Quarter
 
12-Month
 
1st
 
2nd
 
3rd
 
4th
 
2014
Revenue
$
8,928

 
$
8,734

 
$
8,924

 
$
14,025

 
$
40,611

Comparable sales % decline(1)
(1.8
)%
 
(0.6
)%
 
0.5
%
 
(1.3
)%
 
(1.0
)%
Gross profit
$
2,105

 
$
2,373

 
$
2,093

 
$
2,828

 
$
9,399

Operating income(4)
187

 
405

 
100

 
452

 
1,144

Net earnings from continuing operations
112

 
233

 
50

 
300

 
695

Gain (loss) from discontinued operations, net of tax
(185
)
 
15

 
4

 
(6
)
 
(172
)
Net earnings (loss) including noncontrolling interests
(73
)
 
248

 
54

 
294

 
523

Net earnings (loss) attributable to Best Buy Co., Inc. shareholders
(81
)
 
266

 
54

 
293

 
532

Diluted earnings (loss) per share(3)
 
 
 
 
 
 
 
 
 
Continuing operations
$
0.33

 
$
0.67

 
$
0.15

 
$
0.85

 
$
2.00

Discontinued operations
(0.57
)
 
0.10

 
0.01

 
(0.02
)
 
(0.47
)
Diluted earnings (loss) per share
$
(0.24
)
 
$
0.77

 
$
0.16

 
$
0.83

 
$
1.53

(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 store 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 $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.
(4)
Includes $5 million, $4 million, $27 million and $113 million of restructuring charges recorded in the fiscal first, second, third and fourth quarters, respectively, and $149 million for the 12 months ended February 1, 2014 related to measures we took to restructure our businesses.
Valuation and Qualifying Accounts
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 31, 2015
 
 
 
 
 
 
 
Allowance for doubtful accounts
$
104

 
$
1

 
$
(46
)
 
$
59

Year ended February 1, 2014
 
 
 
 
 
 
 
Allowance for doubtful accounts
$
92

 
$
76

 
$
(64
)
 
$
104

Year ended February 2, 2013
 
 
 
 
 
 
 
Allowance for doubtful accounts
$
72

 
$
34

 
$
(14
)
 
$
92

(1)
Includes bad debt write-offs and recoveries, acquisitions and the effect of foreign currency fluctuations.
Summary of Significant Accounting Policies (Policies)
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 December 3, 2014, we entered into a definitive agreement to sell Jiangsu Five Star Appliance Co., Limited ("Five Star"). As a result of this agreement, Five Star was classified as held for sale as of January 31, 2015. 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 expert service at unbeatable price more than 1.5 billion times a year to the consumers, small business owners and educators who visit our stores, engage with Geek Squad agents or use our websites or mobile applications. We have retail and online operations in the U.S., Canada and Mexico. We have two operating segments: Domestic and International. The Domestic segment is comprised of store, online and call center operations in all states, districts and territories of the U.S., operating under the brand names Best Buy, Best Buy Mobile, Geek Squad, Magnolia Audio Video and Pacific Sales. The International segment is comprised of: (i) all Canada store, online and call center operations, operating under the brand names Best Buy, Best Buy Mobile, Future Shop and Geek Squad and (ii) all Mexico store operations operating under the brand names Best Buy, Best Buy Express and Geek Squad.

In addition to our retail store operations, we also operate websites including bestbuy.com, bestbuy.ca, futureshop.ca and bestbuy.com.mx.
Fiscal Year 
Fiscal Year

On November 2, 2011, our Board of Directors approved a change in our fiscal year-end from the Saturday nearest the end of February to the Saturday nearest the end of January, effective beginning with our fiscal year 2013. As a result of this change, our fiscal year 2013 was an 11-month transition period beginning March 4, 2012, through February 2, 2013. Concurrent with the change, we began consolidating the results of our Europe, China and Mexico operations on a one-month lag, compared to a two-month lag in prior years, to continue aligning the fiscal reporting periods of our international operations with statutory filing requirements. In these consolidated statements, including the notes thereto, financial results for fiscal 2013 are for an 11-month period. Corresponding results for fiscal 2015 and fiscal 2014 are both for 12-month periods.

As a result of the 11-month transition period for fiscal 2013, the month of January 2012 was not captured in our consolidated fiscal 2013 (11-month) results for those entities reported on a one-month lag. As a result, the Consolidated Statements of Cash Flows includes a net reconciling adjustment for the cash flows as a result of the exclusion of January 2012 in fiscal 2013 (11-month). The total adjustment was $74 million, primarily due to $50 million of cash used in financing activities and $18 million of cash used in investing activities.

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 2015, 2014 or 2013 (11-month).

In preparing the accompanying consolidated financial statements, we evaluated the period from February 1, 2015, through the date the financial statements were issued for material subsequent events requiring recognition or disclosure. Other than as described in Note 12, Contingencies and Commitments, and Note 13, Subsequent Event, 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.

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 31, 2015, and February 1, 2014, were $1,660 million and $1,705 million, respectively, and the weighted-average interest rates were 0.4% and 0.5%, respectively.

Outstanding checks in excess of funds on deposit (book overdrafts) totaled $0 million and $62 million at January 31, 2015, and February 1, 2014, respectively, and are reflected within accounts payable in our Consolidated Balance Sheets.

Receivables 
Receivables

Receivables consist principally of amounts due from mobile phone network operators for commissions earned; banks for customer credit card, debit card and electronic benefits transfer (EBT) 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 $59 million and $104 million at January 31, 2015, and February 1, 2014, 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 $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. Restricted cash totaled $310 million at February 1, 2014 and is included in other current assets or other assets in our Consolidated Balance Sheet. Such balances are pledged as collateral or restricted to use for vendor payables, 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, 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 lease is comprised of buildings and equipment used in our operations. The related depreciation for capital lease assets is included in depreciation expense. The carrying value of property under capital lease was $44 million and $58 million at January 31, 2015, and February 1, 2014, respectively, net of accumulated depreciation of $75 million and $62 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 lease
 
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. When an impairment loss is recognized, the carrying amount of the asset is reduced to its estimated fair value based on quoted market prices or other valuation techniques (e.g., 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.

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 31, 2015, and February 1, 2014, the obligation associated with vacant properties included in accrued liabilities in our Consolidated Balance Sheets was $26 million and $33 million, respectively, and the obligation associated with vacant properties included in long-term liabilities in our Consolidated Balance Sheets was $43 million and $86 million, respectively. The obligation associated with vacant properties at January 31, 2015, and February 1, 2014, 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 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 31, 2015, and February 1, 2014, deferred rent included in accrued liabilities in our Consolidated Balance Sheets was $31 million and $36 million, respectively, and deferred rent included in long-term liabilities in our Consolidated Balance Sheets was $195 million and $232 million, respectively.

We also lease certain equipment under noncancelable operating and capital leases. In addition, we have financing leases for which the gross cost of constructing the asset is included in property and equipment, and amounts reimbursed from the landlord are recorded as financing obligations. 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 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 2015 was Best Buy Domestic.

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. In fiscal 2015, 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 2015.

In fiscal 2013 (11-month), initial goodwill impairment assessments as of November 4, 2012, based on forecasts in place at that time, indicated that fair value exceeded carrying value for each reporting unit. However, operating performance in our Best Buy Canada and Five Star reporting units fell significantly below expectations in the later part of the fiscal fourth quarter. Therefore, we updated our forecasts for Best Buy Canada and Five Star and tested for goodwill impairment as of the end of fiscal 2013 (11-month). The updated forecasts, which were used as the basis for our discounted cash flow ("DCF") valuations for goodwill testing purposes, reflected significantly lower cash flows than previously forecast. Our analysis for step one of detailed impairment testing indicated that carrying values exceeded fair values for both Best Buy Canada and Five Star. Step two entailed allocating the fair values determined from step one to the fair value of all recognized and appropriately unrecognized assets and liabilities to determine the implied fair value of goodwill. In both cases, this analysis led to the conclusion that the goodwill had no value, and therefore we recorded full impairment of the goodwill associated with Best Buy Canada ($611 million) and Five Star ($208 million). The Canada goodwill impairment is included in continuing operations in our International segment, and the Five Star goodwill impairment is included in discontinued operations.

Tradenames and Customer Relationships

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. We also have an indefinite-lived tradename related to Future Shop included 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. No material impairments were identified during fiscal 2015.

The changes in the carrying amount of goodwill and indefinite-lived tradenames by segment were as follows in fiscal 2015, 2014 and 2013 (11-month) ($ in millions):
 
Goodwill
 
Indefinite-Lived Tradenames
 
Domestic
 
International
 
Total
 
Domestic
 
International
 
Total
Balances at March 3, 2012
$
516

 
$
819

 
$
1,335

 
$
19

 
$
111

 
$
130

Acquisitions(1)
15

 
—

 
15

 
—

 
—

 
—

Impairments
(3
)
 
(819
)
 
(822
)
 
—

 
—

 
—

Changes in foreign currency exchange rates
—

 
—

 
—

 
—

 
1

 
1

Balances at February 2, 2013
528

 
—

 
528

 
19

 
112

 
131

Sale of business(2)
(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

Impairments
—

 
—

 
—

 
(1
)
 
—

 
(1
)
Sale of business(3)
—

 
—

 
—

 
—

 
(37
)
 
(37
)
Changes in foreign currency exchange rates
—

 
—

 
—

 
—

 
(6
)
 
(6
)
Balances at January 31, 2015
$
425

 
$
—

 
$
425

 
$
18

 
$
39

 
$
57


(1)
Represents goodwill acquired, primarily as a result of an acquisition made by mindSHIFT in fiscal 2013 (11-month).
(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 Five Star indefinite-lived tradenames classified as held for sale at January 31, 2015.
The following table provides the gross carrying amount of goodwill and cumulative goodwill impairment losses ($ in millions):
 
January 31, 2015
 
February 1, 2014
 
Gross Carrying
Amount(1)
 
Cumulative
Impairment(1)
 
Gross Carrying
Amount
 
Cumulative
Impairment
Goodwill
$
1,100

 
$
(675
)
 
$
1,308

 
$
(883
)

(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 31, 2015
 
February 1, 2014
Accrued liabilities
$
78

 
$
88

Long-term liabilities
53

 
52

Total
$
131

 
$
140

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 31, 2015, and February 1, 2014, 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 31, 2015, and February 1, 2014, 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

Our revenue arises primarily from sales of merchandise and services. We also record revenue from sales of service contracts, extended warranties, other commissions and credit card programs. Revenue excludes sales taxes collected.

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 is recognized for store sales when the customer receives and pays for the merchandise. For online sales, we defer revenue and the related product costs for shipments that are in-transit to the customer and recognize revenue at the time the customer receives the product. Online customers typically receive goods within a few days of shipment. Revenue from merchandise sales and services is reported net of sales returns, including an estimate of future returns based on historical return rates, with a corresponding reduction to cost of sales. Our sales returns reserve was $25 million and $13 million at January 31, 2015, and February 1, 2014, respectively.

We sell service contracts and extended warranties that typically have terms ranging from 3 months to 4 years. We also receive commissions for customer subscriptions with various third parties, including mobile phone network operators. In instances where we are deemed to be the obligor on the service contract or subscription, the service and commission revenue is deferred and recognized ratably over the term of the service contract or subscription period. In instances where we are not deemed to be the obligor on the service contract or subscription, commissions are recognized in revenue when such commissions have been earned, primarily driven by commencement of service to the customer. Service and commission revenues earned from the sale of extended warranties represented 2.1%, 2.2% and 2.5% of revenue in fiscal 2015, 2014 and 2013 (11-month), 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.

At January 31, 2015, and February 1, 2014, short-term deferred revenue was $376 million, of which $50 million is included in current liabilities held for sale, and $399 million, respectively. At January 31, 2015, and February 1, 2014, deferred revenue included within long-term liabilities in our Consolidated Balance Sheets was $49 million and $50 million, respectively.

For additional information related to our credit card arrangements and customer loyalty programs, see Credit Services and Financing and Sales Incentives, respectively, below.

Gift Cards 

Gift Cards

We sell gift cards to our customers in our retail stores, through our websites and through selected 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. At that time, we recognize breakage income for those cards for which the likelihood of redemption is deemed remote and we do not have a legal obligation to remit the value of such unredeemed gift cards to the relevant jurisdictions. Gift card breakage income is included in revenue in our Consolidated Statements of Earnings.

Gift card breakage income was as follows in fiscal 2015, 2014 and 2013 (11-month) ($ in millions):
 
 
12-Month
 
12-Month
 
11-Month
 
 
2015
 
2014
 
2013
Gift card breakage income
 
$
19

 
$
53

 
$
46

Credit Services and Financing 

Credit Services and Financing

In the U.S., we have an agreement with a bank for the issuance of promotional financing and customer loyalty credit cards bearing the Best Buy brand. Under the agreement, the bank manages and directly extends credit to our customers. Cardholders who choose promotional financing can receive deferred-interest financing on qualifying purchases. The bank is the sole owner of the accounts receivable generated under the program and accordingly, we do not hold any consumer receivables related to these programs. We earn revenue from the bank based primarily on the performance of the portfolio.
 
We also have agreements for promotional financing and credit cards with banks for our businesses in Canada and Mexico, and we account for these programs in a manner consistent with the U.S. agreement.
 
In addition, we also accept Visa®, MasterCard®, Discover®, JCB® and American Express® credit cards, as well as debit cards from all major international networks.

Sales Incentives 
Sales Incentives

We frequently offer sales incentives that entitle our customers to receive a reduction in the price of a product or service. Sales incentives include discounts, coupons and other offers that entitle a customer to receive a reduction in the price of a product or service either at the point of sale or by submitting a claim for a refund or rebate. For sales incentives issued to a customer in conjunction with a sale of merchandise or services for which we are the obligor, 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. There are two primary ways that members may participate and earn loyalty points.
 
First, we have customer loyalty programs where members earn points for each purchase. Depending on the customer's membership level within our loyalty program, certificates expire either 2 or 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.
 
Second, under our credit card agreement, we have a customer loyalty credit card bearing the Best Buy brand. Cardholders earn points for purchases made at our stores and related websites in the U.S., as well as purchases at other merchants. Points earned entitle cardholders to receive certificates that may be redeemed on future purchases at our stores and related websites. Certificates expire either 2 or 12 months from the date of issuance. The retail value of points earned by our cardholders 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 to promote a vendor's products; 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, and 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 to promote a vendor's products; 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, and 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 $711 million, $757 million and $703 million in fiscal 2015, 2014 and 2013 (11-month), 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 Accounting Policies (Tables)
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 lease
 
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 2015, 2014 and 2013 (11-month) ($ in millions):
 
Goodwill
 
Indefinite-Lived Tradenames
 
Domestic
 
International
 
Total
 
Domestic
 
International
 
Total
Balances at March 3, 2012
$
516

 
$
819

 
$
1,335

 
$
19

 
$
111

 
$
130

Acquisitions(1)
15

 
—

 
15

 
—

 
—

 
—

Impairments
(3
)
 
(819
)
 
(822
)
 
—

 
—

 
—

Changes in foreign currency exchange rates
—

 
—

 
—

 
—

 
1

 
1

Balances at February 2, 2013
528

 
—

 
528

 
19

 
112

 
131

Sale of business(2)
(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

Impairments
—

 
—

 
—

 
(1
)
 
—

 
(1
)
Sale of business(3)
—

 
—

 
—

 
—

 
(37
)
 
(37
)
Changes in foreign currency exchange rates
—

 
—

 
—

 
—

 
(6
)
 
(6
)
Balances at January 31, 2015
$
425

 
$
—

 
$
425

 
$
18

 
$
39

 
$
57


(1)
Represents goodwill acquired, primarily as a result of an acquisition made by mindSHIFT in fiscal 2013 (11-month).
(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 Five Star indefinite-lived tradenames classified as held for sale at January 31, 2015.
Schedule of goodwill 
 
January 31, 2015
 
February 1, 2014
 
Gross Carrying
Amount(1)
 
Cumulative
Impairment(1)
 
Gross Carrying
Amount
 
Cumulative
Impairment
Goodwill
$
1,100

 
$
(675
)
 
$
1,308

 
$
(883
)

(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 31, 2015
 
February 1, 2014
Accrued liabilities
$
78

 
$
88

Long-term liabilities
53

 
52

Total
$
131

 
$
140



Schedule of gift card breakage income 

Gift card breakage income was as follows in fiscal 2015, 2014 and 2013 (11-month) ($ in millions):
 
 
12-Month
 
12-Month
 
11-Month
 
 
2015
 
2014
 
2013
Gift card breakage income
 
$
19

 
$
53

 
$
46

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 to promote a vendor's products; 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, and travel and lodging.
Discontinued Operations (Tables)
Schedule of Assets and Liabilities Held-for-Sale [Table Text Block] 
The composition of assets and liabilities held for sale as of January 31, 2015, was as follows ($ in millions):
 
January 31, 2015
Cash and cash equivalents
$
194

Merchandise inventories
264

Other current assets
226

Net property and equipment
130

Other assets
37

Total assets
$
851

 
 
Accounts payable
$
452

Other current liabilities
133

Long-term liabilities
18

Total liabilities
$
603

Disposal Groups, Including Discontinued Operations [Table Text Block] 
The aggregate financial results of all discontinued operations for fiscal 2015, 2014 and 2013 (11-month) were as follows ($ in millions):
 
12-Month
 
11-Month
 
2015
 
2014
 
2013
Revenue
$
1,564

 
$
4,615

 
$
6,834

Restructuring charges(1)
18

 
110

 
34

Loss from discontinued operations before income tax benefit(2)
(12
)
 
(235
)
 
(187
)
Income tax benefit(3)
—

 
31

 
30

Gain on sale of discontinued operations(4)
1

 
32

 
—

Equity in loss of affiliates
—

 
—

 
(4
)
Net loss from discontinued operations including noncontrolling interests
(11
)
 
(172
)
 
(161
)
Net (earnings) loss from discontinued operations attributable to noncontrolling interests
(2
)
 
9

 
(21
)
Net loss from discontinued operations attributable to Best Buy Co., Inc. shareholders
$
(13
)
 
$
(163
)
 
$
(182
)
(1)
See Note 4, Restructuring Charges, for further discussion of the restructuring charges associated with discontinued operations.
(2)
Includes the $175 million impairment to write down the book value of our investment in Best Buy Europe to fair value in fiscal 2014 and the $208 million goodwill impairment related to our Five Star reporting unit in fiscal 2013 (11-month).
(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 $18 million from sale of mindSHIFT in the fourth quarter.
Fair Value Measurements (Tables)
Fair value, assets and liabilities measured on recurring basis 
The following tables set forth by level within the fair value hierarchy, our financial assets and liabilities that were accounted for at fair value on a recurring basis at January 31, 2015, and February 1, 2014, according to the valuation techniques we used to determine their fair values ($ in millions).
 
 
 
Fair Value Measurements Using Inputs Considered as
 
Fair Value at
January 31, 2015
 
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
 
 
 
 
 
 
 
Money market funds
$
265

 
$
265

 
$
—

 
$
—

Corporate bonds
13

 
—

 
13

 
—

Commercial paper
165

 
—

 
165

 
—

Short-term investments
 
 
 
 
 
 
 
Corporate bonds
276

 
—

 
276

 
—

Commercial paper
306

 
—

 
306

 
—

Other current assets
 
 
 
 
 
 
 
Foreign currency derivative instruments
30

 
—

 
30

 
—

Other assets
 
 
 
 
 
 
 
Interest rate swap derivative instruments
1

 
—

 
1

 
—

Auction rate securities
2

 
—

 
—

 
2

Marketable securities that fund deferred compensation
97

 
97

 
—

 
—

Assets held for sale
 
 
 
 
 
 
 
Cash and cash equivalents
 
 
 
 
 
 
 
Money market funds
16

 
16

 
—

 
—

 
 
 
 
Fair Value Measurements Using Inputs Considered as
 
Fair Value at
February 1, 2014
 
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
 
 
 
 
 
 
 
Money market funds
$
53

 
$
53

 
$
—

 
$
—

Commercial paper
80

 
—

 
80

 
—

Treasury bills
263

 
263

 
—

 
—

Short-term investments
 
 
 
 
 
 
 
Commercial paper
100

 
—

 
100

 
—

Other current assets


 
 

 
 

 
 

Foreign currency derivative instruments
2

 
—

 
2

 
—

Other assets


 
 

 
 

 
 

Auction rate securities
9

 
—

 
—

 
9

Marketable securities that fund deferred compensation
96

 
96

 
—

 
—

Liabilities


 
 

 
 

 
 

Accrued liabilities
 
 
 
 
 
 
 
Foreign currency derivative instruments
5

 
—

 
5

 
—

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 for fiscal 2015 and fiscal 2014 ($ in millions):
 
2015
 
2014
 
Impairments
 
Remaining Net
Carrying Value(1)
 
Impairments
 
Remaining Net
Carrying Value (1)
Continuing operations
 
 
 
 
 
 
 
Property and equipment (non-restructuring)
$
42

 
$
19

 
$
101

 
$
10

Restructuring activities(2)
 
 
 
 
 
 
 
Property and equipment
1

 
—

 
8

 
—

Investments
—

 
—

 
16

 
21

Total
$
43

 
$
19

 
$
125

 
$
31

Discontinued operations(3)
 
 
 
 
 
 
 
Property and equipment(4)
$
1

 
$
—

 
$
221

 
$
—

Tradename
—

 
—

 
4

 
—

Total
$
1

 
$
—

 
$
225

 
$
—

(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.
(4)
Includes the $175 million impairment to write down the book value of our investment in Best Buy Europe to fair value. Upon completion of the sale of Best Buy Europe as described in Note 2, Discontinued Operations, the remaining net carrying values of all assets have been reduced to zero.

Restructuring Charges (Tables)
Composition of restructuring charges for both the Domestic and International segments 
Restructuring charges incurred in fiscal 2015, 2014 and 2013 (11-month) were as follows ($ in millions):
 
12-Month
 
12-Month
 
11-Month
 
2015
 
2014
 
2013
Continuing operations
 
 
 
 
 
Renew Blue
$
11

 
$
155

 
$
171

Other restructuring activities
(6
)
 
(6
)
 
244

Total
5

 
149

 
415

Discontinued operations
 
 
 
 
 
Renew Blue
18

 
10

 
—

Other restructuring activities
—

 
100

 
34

Total (Note 2)
18

 
110

 
34

Total
$
23

 
$
259

 
$
449

Restructuring activity related to termination benefits and facility closure costs 
The following table summarizes our restructuring accrual activity during fiscal 2015 and 2014 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 2, 2013
$
54

 
$
54

 
$
108

Charges
133

 
16

 
149

Cash payments
(68
)
 
(23
)
 
(91
)
Adjustments(1)
(8
)
 
4

 
(4
)
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

Composition of restructuring charges for both the Domestic and International segments 
The composition of the restructuring charges we incurred for this program in fiscal 2015, 2014 and 2013 (11-month), as well as the cumulative amount incurred through the end of fiscal 2015, was as follows ($ in millions):
 
Domestic
 
International
 
Total
 
12-Month 2015
 
12-Month 2014
 
11-Month 2013
 
Cumulative Amount
 
12-Month 2015
 
12-Month 2014
 
11-Month 2013
 
Cumulative Amount
 
12-Month 2015
 
12-Month 2014
 
11-Month 2013
 
Cumulative Amount
Continuing operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Inventory write-downs
$
—

 
$
—

 
$
1

 
$
1

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
1

 
$
1

Property and equipment impairments
—

 
7

 
7

 
14

 
1

 
1

 
23

 
25

 
1

 
8

 
30

 
39

Termination benefits
9

 
106

 
46

 
161

 
5

 
24

 
9

 
38

 
14

 
130

 
55

 
199

Investment impairments
—

 
16

 
27

 
43

 
—

 
—

 
—

 
—

 
—

 
16

 
27

 
43

Facility closure and other costs
1

 
—

 
3

 
4

 
(5
)
 
1

 
55

 
51

 
(4
)
 
1

 
58

 
55

Total continuing operations
10

 
129

 
84

 
223

 
1

 
26

 
87

 
114

 
11

 
155

 
171

 
337

Discontinued Operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Inventory write-downs
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

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
$
10

 
$
129

 
$
84

 
$
223

 
$
19

 
$
36

 
$
87

 
$
142

 
$
29

 
$
165

 
$
171

 
$
365

Restructuring activity related to termination benefits and facility closure costs 
The following table summarizes our restructuring accrual activity during fiscal 2015 and 2014 related to termination benefits and facility closure and other costs associated with these programs ($ in millions):
 
Termination Benefits
 
Facility
Closure and
Other Costs
 
Total
Balance at February 2, 2013
$
4

 
$
154

 
$
158

Charges
36

 
6

 
42

Cash payments
(4
)
 
(86
)
 
(90
)
Adjustments(1)
(36
)
 
(14
)
 
(50
)
Changes in foreign currency exchange rates
—

 
(2
)
 
(2
)
Balance at February 1, 2014
—


58

 
58

Charges
—

 
3

 
3

Cash payments
—

 
(21
)
 
(21
)
Adjustments(1)
—

 
(6
)
 
(6
)
Balance at January 31, 2015
$
—

 
$
34

 
$
34


(1)
Adjustments to termination benefits in fiscal 2014 were primarily due to the write-off of the remaining liability as a result of the sale of Best Buy Europe. Adjustments to facility closure and other costs represent change in sublease assumptions and reductions in our remaining lease obligations.
Composition of restructuring charges for both the Domestic and International segments 
The composition of the restructuring charges we incurred for these programs in fiscal 2015, 2014 and 2013 (11-month), as well as the cumulative amount incurred through the end of fiscal 2015, were as follows ($ in millions):
 
Domestic
 
International
 
Total
 
12-Month 2015
 
12-Month 2014
 
11-Month 2013
 
Cumulative Amount
 
12-Month 2015
 
12-Month 2014
 
11-Month 2013
 
Cumulative Amount
 
12-Month 2015
 
12-Month 2014
 
11-Month 2013
 
Cumulative Amount
Continuing operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Inventory write-downs
$
—

 
$
—

 
$
—

 
$
28

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
28

Property and equipment impairments
—

 
—

 
17

 
49

 
—

 
—

 
—

 
112

 
—

 
—

 
17

 
161

Termination benefits
—

 
—

 
77

 
91

 
—

 
—

 
—

 
—

 
—

 
—

 
77

 
91

Facility closure and other costs
(6
)
 
(6
)
 
150

 
147

 
—

 
—

 
—

 
—

 
(6
)
 
(6
)
 
150

 
147

Total
(6
)
 
(6
)
 
244

 
315

 
—

 
—

 
—

 
112

 
(6
)
 
(6
)
 
244

 
427

Discontinued operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Inventory write-downs
—

 
—

 
—

 
—

 
—

 
7

 
—

 
33

 
—

 
7

 
—

 
33

Property and equipment impairments
—

 
—

 
—

 
15

 
—

 
45

 
12

 
188

 
—

 
45

 
12

 
203

Termination benefits
—

 
—

 
—

 
4

 
—

 
36

 
20

 
91

 
—

 
36

 
20

 
95

Tradename impairment
—

 
—

 
—

 
13

 
—

 
4

 
—

 
4

 
—

 
4

 
—

 
17

Facility closure and other costs
—

 
—

 
—

 
3

 
—

 
8

 
2

 
97

 
—

 
8

 
2

 
100

Total
—

 
—

 
—

 
35

 
—

 
100

 
34

 
413

 
—

 
100

 
34

 
448

Total
$
(6
)
 
$
(6
)
 
$
244

 
$
350

 
$
—

 
$
100

 
$
34

 
$
525

 
$
(6
)
 
$
94

 
$
278

 
$
875

Debt (Tables)
Schedule of long-term debt 
Long-term debt consisted of the following ($ in millions):
 
January 31, 2015
 
February 1, 2014
2016 Notes
349

 
349

2018 Notes
500

 
500

2021 Notes
649

 
649

Interest rate swap valuation adjustments
1

 
—

Financing lease obligations, due 2016 to 2026, interest rates ranging from 3.0% to 8.1%
69

 
95

Capital lease obligations, due 2016 to 2035, interest rates ranging from 1.9% to 9.3%
52

 
63

Other debt, due 2017, interest rate 6.7%
1

 
1

Total long-term debt
1,621

 
1,657

Less: current portion
(41
)
 
(45
)
Total long-term debt, less current portion
$
1,580

 
$
1,612



Schedule of future maturities of long-term debt, including capitalized leases 
At January 31, 2015, the future maturities of long-term debt, including capitalized leases, consisted of the following ($ in millions):
Fiscal Year
 
 
2016
 
$
41

2017
 
375

2018
 
18

2019
 
511

2020
 
6

Thereafter
 
670

Total long-term debt
 
$
1,621

Derivatives (Tables)
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 31, 2015 and February 1, 2014:
 
January 31, 2015
 
February 1, 2014
Contract Type
Assets
Liabilities
 
Assets
Liabilities
Derivatives designated as net investment hedges(1)
19

—

 
—

—

Derivatives designated as interest rate swaps(2)
1

—

 
—

—

No hedge designation (foreign exchange forward contracts)(1)
11

—

 
2

5

Total
31

—

 
2

5

(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 2015 and 2014:
 
2015
Contract Type
Pre-tax Gain(Loss) Recognized in OCI
 
Gain(Loss) Reclassified from Accumulated OCI to Earnings (Effective Portion)
Derivatives designated as net investment hedges
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 2015 and 2014:
 
Gain (Loss) Recognized within SG&A
Contract Type
2015
 
2014
No hedge designation (foreign exchange forward contracts)
12

 
5

Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] 
The following table presents the notional amounts of our derivative instruments at January 31, 2015 and February 1, 2014:
 
Notional Amount
Contract Type
January 31, 2015
 
February 1, 2014
Derivatives designated as net investment hedges
197

 
—

Derivatives designated as interest rate swaps
145

 
—

No hedge designation (foreign exchange forward contracts)
212

 
157

Total
554

 
157

Shareholders' Equity (Tables)
Stock-based compensation expense 
Stock-based compensation expense was as follows in fiscal 2015, 2014 and 2013 (11-month) ($ in millions):
 
12-Month
 
12-Month
 
11-Month
 
2015
 
2014
 
2013
Stock options
$
17

 
$
25

 
$
43

Share awards
 
 
 
 
 
Market-based
10

 
9

 
2

Time-based
60

 
62

 
62

Employee stock purchase plans
—

 
1

 
5

Total
$
87

 
$
97

 
$
112

Stock option activity 
Stock option activity was as follows in fiscal 2015:
 
Stock
Options
 
Weighted-
Average
Exercise Price
per Share
 
Weighted-Average
Remaining
Contractual
Term (in years)
 
Aggregate
Intrinsic Value (in millions)
Outstanding at February 1, 2014
22,101,000

 
$
36.38

 
 
 
 

Granted
1,524,000

 
$
29.90

 
 
 
 

Exercised
(1,679,000
)
 
$
25.31

 
 
 
 

Forfeited/Canceled
(4,604,000
)
 
$
36.62

 
 
 
 

Outstanding at January 31, 2015
17,342,000

 
$
36.81

 
4.9
 
$
67

Vested or expected to vest at January 31, 2015
17,095,000

 
$
36.91

 
4.8
 
$
66

Exercisable at January 31, 2015
13,995,000

 
$
39.37

 
4.0
 
$
36

Assumption used to estimate the fair value of stock option on the date of grant using a lattice model 
In fiscal 2015, 2014 and 2013 (11-month), 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:
 
 
12-Month
 
12-Month
 
11-Month
Valuation Assumptions(1)
 
2015
 
2014
 
2013
Risk-free interest rate(2)
 
0.1% – 2.4%

 
0.1% – 1.8%

 
0.1% – 2.0%

Expected dividend yield
 
2.5
%
 
2.0
%
 
2.2
%
Expected stock price volatility(3)
 
40
%
 
46
%
 
44
%
Expected life of stock options (in years)(4)
 
6.0

 
5.9

 
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 31, 2015, and changes during fiscal 2015, is as follows:
Market-Based Share Awards
 
Shares
 
Weighted-Average Fair Value per Share
Outstanding at February 1, 2014
 
1,636,000

 
$
20.91

Granted
 
564,000

 
$
29.22

Vested
 
(127,000
)
 
$
19.16

Forfeited/Canceled
 
(369,000
)
 
$
19.23

Outstanding at January 31, 2015
 
1,704,000

 
$
24.16

Summary of the status of nonvested time-based share awards 
A summary of the status of our nonvested time-based share awards at January 31, 2015, and changes during fiscal 2015, is as follows:
Time-Based Share Awards
 
Shares
 
Weighted-Average Fair Value per Share
Outstanding at February 1, 2014
 
7,065,000

 
$
21.49

Granted
 
2,609,000

 
$
28.49

Vested
 
(2,657,000
)
 
$
22.77

Forfeited/Canceled
 
(1,474,000
)
 
$
20.68

Outstanding at January 31, 2015
 
5,543,000

 
$
24.40

Assumptions used to estimate the fair value of stock-based compensation expense associated with employee stock purchase plans on the purchase date using the Black-Scholes option-pricing valuation model 

Summary of stock options outstanding 
At January 31, 2015, options to purchase 17.3 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
2.8

 
20
%
 
$
22.99

 
3.1

 
94
%
 
$
25.60

 
5.9

 
34
%
 
$
24.38

Out-of-the-money
11.2

 
80
%
 
$
43.42

 
0.2

 
6
%
 
$
34.25

 
11.4

 
66
%
 
$
43.27

Total
14.0

 
100
%
 
$
39.37

 
3.3

 
100
%
 
$
26.11

 
17.3

 
100
%
 
$
36.81

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 in fiscal 2015, 2014 and 2013 (11-month):
 
12-Month
 
12-Month
 
11-Month
 
2015
 
2014
 
2013(1)
Numerator (in millions):
 
 
 
 
 
Net earnings (loss) from continuing operations attributable to Best Buy Co., Inc., shareholders, diluted
$
1,246

 
$
695

 
$
(259
)
Denominator (in millions):
 
 
 
 
 
Weighted-average common shares outstanding
349.5

 
342.1

 
338.6

Effect of potentially dilutive securities:
 
 
 
 
 
Stock options and other
4.1

 
5.5

 
—

Weighted-average common shares outstanding, assuming dilution
353.6

 
347.6

 
338.6

Net earnings (loss) per share from continuing operations attributable to Best Buy Co., Inc. shareholders
 
 
 
 
 
Basic
$
3.57

 
$
2.03

 
$
(0.76
)
Diluted
$
3.53

 
$
2.00

 
$
(0.76
)
(1)
The calculation of diluted loss per share for fiscal 2013 (11-month) does not include potentially dilutive securities because their inclusion would be anti-dilutive (i.e., reduce the net loss per share).
Repurchases of common stock 
The following table presents the amount and cost of shares we repurchased and retired in fiscal 2015, 2014 and 2013 (11-month) under the June 2011 program and the June 2007 program ($ and shares in millions):
 
12-Month
 
12-Month
 
11-Month
 
2015
 
2014
 
2013
June 2011 Program
 
 
 
 
 
Total number of shares repurchased
—

 
—

 
6.3

Total cost of shares repurchased
$
—

 
$
—

 
$
122

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 2015, 2014, and 2013 (11-month), respectively ($ in millions):
 
Foreign Currency Translation
 
Available-For-Sale Investments
 
Total
Balances at March 3, 2012
93

 
(3
)
 
90

Adjustment for fiscal year-end change
11

 
—

 
11

Balances at January 28, 2012
104

 
(3
)
 
101

Foreign currency translation adjustments
9

 
—

 
9

Unrealized gains on available-for-sale investments
—

 
2

 
2

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

Leases (Tables)
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 2015, 2014 and 2013 (11-month) ($ in millions):
 
12-Month
 
12-Month
 
11-Month
 
2015
 
2014
 
2013
Minimum rentals
$
848

 
$
864

 
$
809

Contingent rentals
2

 
2

 
1

Total rent expense
850

 
866

 
810

Less: sublease income
(18
)
 
(18
)
 
(16
)
Net rent expense
$
832

 
$
848

 
$
794

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 31, 2015, were as follows ($ in millions):
Fiscal Year
 
Capital
Leases
 
Financing
Leases
 
Operating
Leases(1)
2016
 
$
22

 
$
24

 
$
873

2017
 
11

 
18

 
771

2018
 
7

 
14

 
641

2019
 
4

 
9

 
499

2020
 
2

 
6

 
365

Thereafter
 
15

 
9

 
727

Subtotal
 
61

 
80

 
$
3,876

Less: imputed interest
 
(9
)
 
(11
)
 
 

Present value
 
$
52

 
$
69

 
 


(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 $1.2 billion at January 31, 2015.
Income Taxes (Tables)
Reconciliation of the federal statutory income tax rate to income tax expense 
The following is a reconciliation of the federal statutory income tax rate to income tax expense in fiscal 2015, 2014 and 2013 (11-month) ($ in millions):
 
12-Month
 
12-Month
 
11-Month
 
2015
 
2014
 
2013
Federal income tax at the statutory rate
$
485

 
$
379

 
$
1

State income taxes, net of federal benefit
43

 
26

 
(2
)
(Benefit) expense from foreign operations
(23
)
 
(23
)
 
45

Other
(11
)
 
6

 
5

Legal entity reorganization
(353
)
 
—

 
—

Goodwill impairments (non-deductible)
—

 
—

 
214

Income tax expense
$
141

 
$
388

 
$
263

Effective income tax rate
10.1
%
 
35.8
%
 
7,152.3
%

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 2015, 2014 and 2013 (11-month) ($ in millions):
 
12-Month
 
12-Month
 
11-Month
 
2015
 
2014
 
2013
United States
$
1,201

 
$
699

 
$
286

Outside the United States
186

 
384

 
(282
)
Earnings from continuing operations before income tax expense
$
1,387

 
$
1,083

 
$
4

Components of income tax expense 
Income tax expense was comprised of the following in fiscal 2015, 2014 and 2013 (11-month) ($ in millions):
 
12-Month
 
12-Month
 
11-Month
 
2015
 
2014
 
2013
Current:
 
 
 
 
 
Federal
$
354

 
$
305

 
$
211

State
51

 
46

 
(3
)
Foreign
33

 
55

 
49

 
438

 
406

 
257

Deferred:
 
 
 
 
 
Federal
(275
)
 
(22
)
 
25

State
(26
)
 
1

 
(1
)
Foreign
4

 
3

 
(18
)
 
(297
)
 
(18
)
 
6

Income tax expense
$
141

 
$
388

 
$
263

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 31, 2015
 
February 1, 2014
Accrued property expenses
$
129

 
$
162

Other accrued expenses
91

 
133

Deferred revenue
93

 
81

Compensation and benefits
103

 
114

Stock-based compensation
94

 
110

Goodwill and intangibles
287

 
—

Loss and credit carryforwards
156

 
176

Other
88

 
103

Total deferred tax assets
1,041

 
879

Valuation allowance
(143
)
 
(158
)
Total deferred tax assets after valuation allowance
898

 
721

Property and equipment
(251
)
 
(286
)
Goodwill and intangibles
—

 
(75
)
Inventory
(54
)
 
(60
)
Other
(27
)
 
(16
)
Total deferred tax liabilities
(332
)
 
(437
)
Net deferred tax assets
$
566

 
$
284

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 31, 2015
 
February 1, 2014
Other current assets
$
252

 
$
261

Current assets held for sale
3

 
—

Other assets
322

 
44

Other current liabilities
—

 
—

Other long-term liabilities
—

 
(21
)
Long-term liabilities held for sale
(11
)
 
—

Net deferred tax assets
$
566

 
$
284

Reconciliation of changes in unrecognized tax benefits 
The following table provides a reconciliation of changes in unrecognized tax benefits for fiscal 2015, 2014 and 2013 (11-month) ($ in millions):
 
12-Month
 
12-Month
 
11-Month
 
2015
 
2014
 
2013
Balance at beginning of period
$
370

 
$
383

 
$
387

Gross increases related to prior period tax positions
33

 
38

 
10

Gross decreases related to prior period tax positions
(88
)
 
(67
)
 
(22
)
Gross increases related to current period tax positions
114

 
34

 
37

Settlements with taxing authorities
(9
)
 
(3
)
 
(10
)
Lapse of statute of limitations
(10
)
 
(15
)
 
(19
)
Balance at end of period
$
410

 
$
370

 
$
383

Segment and Geographic Information (Tables)
Business segment information 
The following tables present our business segment information in fiscal 2015, 2014 and 2013 (11-month) ($ in millions):
 
12-Month
 
12-Month
 
11-Month
 
2015
 
2014
 
2013
Revenue
 
 
 
 
 
Domestic
$
36,055

 
$
35,831

 
$
33,222

International
4,284

 
4,780

 
5,030

Total revenue
$
40,339

 
$
40,611

 
$
38,252

Percentage of revenue, by revenue category
 
 
 
 
 
Domestic:
 
 
 
 
 
Consumer Electronics
31
%
 
30
%
 
32
%
Computing and Mobile Phones
47
%
 
48
%
 
45
%
Entertainment
9
%
 
8
%
 
10
%
Appliances
7
%
 
7
%
 
6
%
Services
5
%
 
6
%
 
6
%
Other
1
%
 
1
%
 
1
%
Total
100
%
 
100
%
 
100
%
International:
 
 
 
 
 
Consumer Electronics
30
%
 
29
%
 
32
%
Computing and Mobile Phones
49
%
 
50
%
 
47
%
Entertainment
9
%
 
10
%
 
10
%
Appliances
5
%
 
5
%
 
5
%
Services
6
%
 
6
%
 
6
%
Other
1
%
 
< 1%

 
< 1%

Total
100
%
 
100
%
 
100
%
Operating income (loss)
 
 
 
 
 
Domestic
$
1,437

 
$
1,145

 
$
731

International(1)
13

 
(1
)
 
(641
)
Total operating income
1,450

 
1,144

 
90

Other income (expense)
 
 
 
 
 
Gain on sale of investments
13

 
20

 
—

Investment income and other
14

 
19

 
13

Interest expense
(90
)
 
(100
)
 
(99
)
Earnings from continuing operations before income tax expense
$
1,387

 
$
1,083

 
$
4

Assets(2)
 
 
 
 
 
Domestic
$
12,998

 
$
11,146

 
$
10,874

International
2,258

 
2,867

 
5,913

Total assets
$
15,256

 
$
14,013

 
$
16,787

Capital expenditures(2)
 
 
 
 
 
Domestic
$
519

 
$
440

 
$
488

International
42

 
107

 
217

Total capital expenditures
$
561

 
$
547

 
$
705

Depreciation(2)
 
 
 
 
 
Domestic
$
575

 
$
565

 
$
561

International
81

 
136

 
233

Total depreciation
$
656

 
$
701

 
$
794

(1)
Included within our International segment's operating loss for fiscal 2013 (11-month) is a $611 million goodwill impairment charge.
(2)
International segment amounts for assets, capital expenditures and depreciation include amounts from Five Star.
Schedule of geographic information 
The following table presents our geographic information in fiscal 2015, 2014 and 2013 (11-month) ($ in millions):
 
12-Month
 
12-Month
 
11-Month
 
2015
 
2014
 
2013
Net sales to customers
 
 
 
 
 
United States
$
36,055

 
$
35,831

 
$
33,222

Canada
4,047

 
4,522

 
4,818

Other
237

 
258

 
212

Total revenue
$
40,339

 
$
40,611

 
$
38,252

Long-lived assets
 
 
 
 
 
United States
$
2,100

 
$
2,190

 
$
2,404

Europe
—

 
—

 
352

Canada
174

 
244

 
341

China
—

 
139

 
142

Other
21

 
25

 
31

Total long-lived assets
$
2,295

 
$
2,598

 
$
3,270

Supplementary Financial Information (Tables)
Schedule of supplementary financial information
The following tables show selected operating results for each 3-month quarter and full year of fiscal 2015 and 2014 (unaudited) ($ in millions):
 
Quarter
 
12-Month
 
1st
 
2nd
 
3rd
 
4th
 
2015
Revenue
$
8,639

 
$
8,459

 
$
9,032

 
$
14,209

 
$
40,339

Comparable sales % change(1)
(1.8
)%
 
(2.2
)%
 
2.9
%
 
2.0
%
 
0.5
%
Gross profit
$
1,967

 
$
1,978

 
$
2,076

 
$
3,026

 
$
9,047

Operating income(2)
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


 
Quarter
 
12-Month
 
1st
 
2nd
 
3rd
 
4th
 
2014
Revenue
$
8,928

 
$
8,734

 
$
8,924

 
$
14,025

 
$
40,611

Comparable sales % decline(1)
(1.8
)%
 
(0.6
)%
 
0.5
%
 
(1.3
)%
 
(1.0
)%
Gross profit
$
2,105

 
$
2,373

 
$
2,093

 
$
2,828

 
$
9,399

Operating income(4)
187

 
405

 
100

 
452

 
1,144

Net earnings from continuing operations
112

 
233

 
50

 
300

 
695

Gain (loss) from discontinued operations, net of tax
(185
)
 
15

 
4

 
(6
)
 
(172
)
Net earnings (loss) including noncontrolling interests
(73
)
 
248

 
54

 
294

 
523

Net earnings (loss) attributable to Best Buy Co., Inc. shareholders
(81
)
 
266

 
54

 
293

 
532

Diluted earnings (loss) per share(3)
 
 
 
 
 
 
 
 
 
Continuing operations
$
0.33

 
$
0.67

 
$
0.15

 
$
0.85

 
$
2.00

Discontinued operations
(0.57
)
 
0.10

 
0.01

 
(0.02
)
 
(0.47
)
Diluted earnings (loss) per share
$
(0.24
)
 
$
0.77

 
$
0.16

 
$
0.83

 
$
1.53

(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 store 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 $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.
(4)
Includes $5 million, $4 million, $27 million and $113 million of restructuring charges recorded in the fiscal first, second, third and fourth quarters, respectively, and $149 million for the 12 months ended February 1, 2014 related to measures we took to restructure our businesses.
Summary of Significant Accounting Policies - Discontinued Operations (Details) (Best Buy Europe [Member])
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 Accounting Policies - Description of Business (Details)
12 Months Ended
Jan. 31, 2015
segments
Accounting Policies [Abstract]
 
Number of Operating Segments
2 
Summary of Significant Accounting Policies - Fiscal Year (Details) (USD $)
In Millions, unless otherwise specified
1 Months Ended 11 Months Ended 12 Months Ended
Jan. 31, 2012
Feb. 2, 2013
Jan. 31, 2015
Feb. 1, 2014
Fiscal Year [Abstract]
 
 
 
 
Adjustment for Fiscal Year-end Change (Note 1)
$ 74 
$ (74)
$ 0 
$ 0 
Fiscal Year Change, Adjustments to Cash Flows, Financing Activities
50 
 
 
 
Fiscal Year Change, Adjustment to Cash Flows, Investing Activities
$ 18 
 
 
 
Number of Months in Fiscal Year
 
11 months 
 
 
Reporting Lag for Certain Foreign Operations in Financial Statements
 
2 months 
 
1 month 
Number of Weeks in Fiscal Year
 
P48W 
P52W 
P52W 
Summary of Significant Accounting Policies - Basis of Presentation (Details)
11 Months Ended 12 Months Ended
Feb. 2, 2013
Feb. 1, 2014
Restructuring Cost and Reserve [Line Items]
 
 
Reporting Lag for Certain Foreign Operations in Financial Statements
2 months 
1 month 
Summary of Significant Accounting Policies - Cash & Cash Equivalents (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Accounting Policies [Abstract]
 
 
Maximum Term of Original Maturity to Classify an Instrument as Cash Equivalents
3 months 
 
Cash Equivalents, at Carrying Value
$ 1,660 
$ 1,705 
Weighted Average Interest Rate on Cash Equivalents
0.40% 
0.50% 
Bank Overdrafts
$ 0 
$ 62 
Summary of Significant Accounting Policies - Receivables (Details) (USD $)
In Millions, unless otherwise specified
Jan. 31, 2015
Feb. 1, 2014
Accounting Policies [Abstract]
 
 
Valuation Allowances and Reserves, Balance
$ 59 
$ 104 
Summary of Significant Accounting Policies - Restricted Assets (Details) (USD $)
In Millions, unless otherwise specified
Jan. 31, 2015
Feb. 1, 2014
Accounting Policies [Abstract]
 
 
Restricted Cash and Investments
$ 292 
$ 310 
Restricted Cash and Investments, Continuing Operations
184 
 
Restricted Cash and Investments, Held-for-Sale
$ 108 
 
Summary of Significant Accounting Policies - PP&E (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Jan. 31, 2015
Building [Member]
Jan. 31, 2015
Leasehold Improvements [Member]
Jan. 31, 2015
Fixtures and Equipment [Member]
Jan. 31, 2015
Assets Held under Capital Leases [Member]
Property, Plant and Equipment [Line Items]
 
 
 
 
 
 
Property, Plant and Equipment, Useful Life
 
 
35 years 
 
 
 
Capital Leases, Balance Sheet, Assets by Major Class, Net
$ 44 
$ 58 
 
 
 
 
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation
$ 75 
$ 62 
 
 
 
 
Estimated useful lives, minimum (in years)
 
 
 
3 years 
3 years 
2 years 
Estimated useful lives, maximum (in years)
 
 
 
25 years 
20 years 
20 years 
Summary of Significant Accounting Policies - Impairment of PPE & Exit Activities (Details) (USD $)
In Millions, unless otherwise specified
Jan. 31, 2015
Feb. 1, 2014
Accounting Policies [Abstract]
 
 
Asset Retirement Obligation, Current
$ 26 
$ 33 
Asset Retirement Obligations, Noncurrent
$ 43 
$ 86 
Summary of Significant Accounting Policies - Leases (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
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
$ 31 
$ 36 
Deferred Rent Credit, Noncurrent
$ 195 
$ 232 
Summary of Significant Accounting Policies - Goodwill & Indefinite Intangible (Details) (USD $)
In Millions, unless otherwise specified
11 Months Ended 12 Months Ended
Feb. 2, 2013
Jan. 31, 2015
Feb. 1, 2014
Mar. 3, 2012
Goodwill [Roll Forward]
 
 
 
 
Goodwill, balance at the beginning of the period
 
$ 425 
 
 
Goodwill impairments
614 
0 
0 
 
Goodwill, balance at the end of the period
 
425 
425 
 
Indefinite-lived Intangible Assets [Roll Forward]
 
 
 
 
Goodwill, Gross
 
1,100 1
1,308 
 
Cumulative Impairment
 
(675)1
(883)
 
China [Member]
 
 
 
 
Goodwill [Roll Forward]
 
 
 
 
Goodwill impairments
 
 
208 
 
Canada [Member]
 
 
 
 
Goodwill [Roll Forward]
 
 
 
 
Goodwill impairments
 
 
611 
 
Total Operations [Member]
 
 
 
 
Goodwill [Roll Forward]
 
 
 
 
Goodwill, balance at the beginning of the period
1,335 
425 
528 
 
Goodwill acquisitions
15 2
 
 
 
Goodwill impairments
(822)
0 
0 
 
Goodwill written off related to sale of business
 
0 
(103)3
 
Goodwill changes in foreign currency exchange rates
0 
0 
0 
 
Goodwill, balance at the end of the period
528 
425 
425 
 
Indefinite-lived Intangible Assets [Roll Forward]
 
 
 
 
Indefinite-Lived Intangible Assets (Excluding Goodwill)
131 
57 
101 
130 
Intangible acquisitions
0 
 
 
 
Tradename, impairments
0 
(1)
(4)
 
Intangible written off related to sale of business
 
(37)4
(22)3
 
Intangible changes in foreign currency exchange rates
1 
(6)
(4)
 
Total Operations [Member] |
International [Member]
 
 
 
 
Goodwill [Roll Forward]
 
 
 
 
Goodwill, balance at the beginning of the period
819 
0 
0 
 
Goodwill acquisitions
0 
 
0 
 
Goodwill impairments
(819)
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
0 
0 
0 
 
Indefinite-lived Intangible Assets [Roll Forward]
 
 
 
 
Indefinite-Lived Intangible Assets (Excluding Goodwill)
112 
39 
82 
111 
Intangible acquisitions
0 
 
 
 
Tradename, impairments
0 
0 
(4)
 
Intangible written off related to sale of business
 
(37)4
(22)3
 
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
516 
425 
528 
 
Goodwill acquisitions
15 2
 
 
 
Goodwill impairments
(3)
0 
0 
 
Goodwill written off related to sale of business
 
0 
(103)3
 
Goodwill changes in foreign currency exchange rates
0 
0 
0 
 
Goodwill, balance at the end of the period
528 
425 
425 
 
Indefinite-lived Intangible Assets [Roll Forward]
 
 
 
 
Indefinite-Lived Intangible Assets (Excluding Goodwill)
19 
18 
19 
19 
Intangible acquisitions
0 
 
0 
 
Tradename, impairments
0 
(1)
0 
 
Intangible written off related to sale of business
 
0 
 
 
Intangible changes in foreign currency exchange rates
$ 0 
$ 0 
$ 0 
 
Summary of Significant Accounting Policies - Insurance (Details) (USD $)
In Millions, unless otherwise specified
Jan. 31, 2015
Feb. 1, 2014
Accounting Policies [Abstract]
 
 
Self-insured liabilities included in accrued liabilities
$ 78 
$ 88 
Self-insured liabilities included in long-term liabilities
53 
52 
Self insurance reserve
$ 131 
$ 140 
Summary of Significant Accounting Policies - Foreign Currency (Details)
12 Months Ended
Jan. 31, 2015
Accounting Policies [Abstract]
 
Prior Period Foreign Currency Exchange Rate, Used to Align Operations Reported
1 month 
Summary of Significant Accounting Policies - Revenue (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Accounting Policies [Abstract]
 
 
 
Sales returns reserve
$ 25 
$ 13 
 
Term of Extended Warranties, Low End of Range
3 months 
 
 
Term of Extended Warranties, High End of Range
4 years 
 
 
Percentage of Commissions on Sale of Extended Warranties to Revenue
2.10% 
2.20% 
2.50% 
Deferred Revenue, Current, Including Held-for-Sale
376 
 
 
Deferred revenue
326 
399 
 
Disposal Group, Including Discontinued Operation, Deferred Revenue, Current
50 
 
 
Deferred revenue, noncurrent
$ 49 
$ 50 
 
Summary of Significant Accounting Policies - Gift Cards (Details) (USD $)
In Millions, unless otherwise specified
11 Months Ended 12 Months Ended
Feb. 2, 2013
Jan. 31, 2015
Feb. 1, 2014
Accounting Policies [Abstract]
 
 
 
Gift Card Redeemability, Determination Period
 
24 months 
 
Gift card breakage income
$ 46 
$ 19 
$ 53 
Summary of Significant Accounting Policies - Sales Incentives (Details)
12 Months Ended
Jan. 31, 2015
Accounting Policies [Abstract]
 
Number of Ways to Earn Loyalty Points
2 
Period of Expiration for Customer Loyalty Certificates, Low End of Range
2 months 
Period of Expiration for Customer Loyalty Certificates, High End of Range
12 months 
Period of Expiration for Customer Loyalty Certificates, Credit Card, Low end of Range
2 months 
Period of Expiration for Customer Loyalty Certificates, Credit Card, High end of Range
12 months 
Summary of Significant Accounting Policies - Advertising Costs (Details) (USD $)
In Millions, unless otherwise specified
11 Months Ended 12 Months Ended
Feb. 2, 2013
Jan. 31, 2015
Feb. 1, 2014
Accounting Policies [Abstract]
 
 
 
Advertising expense
$ 703 
$ 711 
$ 757 
Discontinued Operations Discontinued Operations (Details) (USD $)
In Millions, unless otherwise specified
Jan. 31, 2015
Discontinued Operations and Disposal Groups [Abstract]
 
Cash and cash equivalents
$ 194 
Merchandise inventories
264 
Other current assets
226 
Net property and equipment
130 
Other assets
37 
Total assets
851 
Accounts payable
452 
Other current liabilities
133 
Long-Term Liabilities held for sale
18 
Total liabilities
$ 603 
Discontinued Operations (Details 2)
In Millions, unless otherwise specified
3 Months Ended 11 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended
Jan. 31, 2015
USD ($)
Nov. 1, 2014
USD ($)
Aug. 2, 2014
USD ($)
Aug. 2, 2014
GBP (£)
May 3, 2014
USD ($)
Feb. 1, 2014
USD ($)
Nov. 2, 2013
USD ($)
Aug. 3, 2013
USD ($)
May 4, 2013
USD ($)
Feb. 2, 2013
USD ($)
Jan. 31, 2015
USD ($)
Jan. 31, 2015
GBP (£)
Feb. 1, 2014
USD ($)
Feb. 1, 2014
Best Buy Europe [Member]
USD ($)
Feb. 1, 2014
Best Buy Europe fixed line of Business in Switzerland [Member]
USD ($)
Feb. 1, 2014
Domestic [Member]
mindSHIFT [Domain]
USD ($)
Feb. 28, 2009
Best Buy Europe [Member]
Feb. 1, 2014
Discontinued Operations [Member]
USD ($)
Jan. 31, 2015
Discontinued Operations [Member]
Not Designated as Hedging Instrument [Member]
GBP (£)
Jan. 31, 2015
Operating Expense [Member]
Discontinued Operations [Member]
USD ($)
Feb. 1, 2014
China [Member]
USD ($)
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 
 
 
 
Goodwill impairments
 
 
 
 
 
 
 
 
 
614 
0 
 
0 
 
 
 
 
 
 
 
208 
Business Acquisition, Percentage of Voting Interests Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
50.00% 
 
 
 
 
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
 
 
 
 
 
 
 
 
 
6,834 
1,564 
 
4,615 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
 
34 1
18 1
 
110 1
 
 
 
 
 
 
 
 
Gain (loss) from discontinued operations before income tax benefit
 
 
 
 
 
 
 
 
 
(187)2
(12)2
 
(235)2
 
 
 
 
 
 
 
 
Income tax benefit
 
 
 
 
 
 
 
 
 
30 3
0 3
 
31 3
 
 
 
 
 
 
 
 
Gain on sale of discontinued operations
 
 
 
 
 
 
 
 
 
0 4
1 4
 
32 4
24 
28 
(18)
 
 
 
 
 
Equity in loss of affiliates
 
 
 
 
 
 
 
 
 
(4)
0 
 
0 
 
 
 
 
 
 
 
 
Net gain (loss) from discontinued operations including noncontrolling interests
(4)
(9)
10 
 
(8)
(6)
4 
15 
(185)
(161)
(11)
 
(172)
 
 
 
 
 
 
 
 
Net (earnings) loss from discontinued operations attributable to noncontrolling interests
 
 
 
 
 
 
 
 
 
(21)
(2)
 
9 
 
 
 
 
 
 
 
 
Net gain (loss) from discontinued operations attributable to Best Buy Co., Inc.
 
 
 
 
 
 
 
 
 
(182)
(13)
 
(163)
 
 
 
 
 
 
 
 
Income Tax Expense (Benefit), Intraperiod Tax Allocation
 
 
 
 
 
 
 
 
 
 
27 
 
 
 
 
 
 
 
 
 
 
Other Tax Expense (Benefit)
 
 
 
 
 
 
 
 
 
 
15 
 
 
 
 
 
 
 
 
 
 
Derivative, Notional Amount
554 
 
 
 
 
157 
 
 
 
 
554 
 
157 
 
 
 
 
 
455 
 
 
Net Proceeds from Divestiture of Businesses
 
 
 
 
 
 
 
 
 
 
 
471 
 
 
 
 
 
 
 
 
 
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments
 
 
 
 
 
 
 
 
 
 
$ (12)
 
$ (5)
 
 
 
 
 
 
$ 2 
 
[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.
Fair Value Measurements (Details) (Fair Value, Measurements, Recurring [Member], USD $)
In Millions, unless otherwise specified
Jan. 31, 2015
Feb. 1, 2014
Cash and Cash Equivalents [Member] |
Money Market Funds [Member]
 
 
ASSETS
 
 
Cash and cash equivalents
$ 265 
$ 53 
Cash and Cash Equivalents, Held-for-sale, Fair Value Disclosure
16 
 
Cash and Cash Equivalents [Member] |
Corporate Bond Securities [Member]
 
 
ASSETS
 
 
Cash and cash equivalents
13 
 
Cash and Cash Equivalents [Member] |
Commercial Paper [Member]
 
 
ASSETS
 
 
Cash and cash equivalents
165 
80 
Cash and Cash Equivalents [Member] |
US Treasury Bill Securities [Member]
 
 
ASSETS
 
 
Cash and cash equivalents
 
263 
Cash and Cash Equivalents [Member] |
Fair Value, Inputs, Level 1 [Member] |
Money Market Funds [Member]
 
 
ASSETS
 
 
Cash and cash equivalents
265 
53 
Cash and Cash Equivalents, Held-for-sale, Fair Value Disclosure
16 
 
Cash and Cash Equivalents [Member] |
Fair Value, Inputs, Level 1 [Member] |
US Treasury Bill Securities [Member]
 
 
ASSETS
 
 
Cash and cash equivalents
 
263 
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
165 
80 
Short-term Investments [Member] |
Corporate Bond Securities [Member]
 
 
ASSETS
 
 
Short-term investments
276 
 
Short-term Investments [Member] |
Commercial Paper [Member]
 
 
ASSETS
 
 
Short-term investments
306 
100 
Short-term Investments [Member] |
Fair Value, Inputs, Level 2 [Member] |
Corporate Bond Securities [Member]
 
 
ASSETS
 
 
Short-term investments
276 
 
Short-term Investments [Member] |
Fair Value, Inputs, Level 2 [Member] |
Commercial Paper [Member]
 
 
ASSETS
 
 
Short-term investments
306 
100 
Other Current Assets [Member]
 
 
ASSETS
 
 
Foreign currency derivative instruments
30 
2 
Other Current Assets [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
ASSETS
 
 
Foreign currency derivative instruments
30 
2 
Other Assets [Member]
 
 
ASSETS
 
 
Interest Rate Derivative Assets, at Fair Value
1 
 
Auction rate securities
2 
9 
Marketable equity securities that fund deferred compensation
97 
96 
Other Assets [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
ASSETS
 
 
Marketable equity securities that fund deferred compensation
97 
96 
Other Assets [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
ASSETS
 
 
Interest Rate Derivative Assets, at Fair Value
1 
 
Other Assets [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
ASSETS
 
 
Auction rate securities
2 
9 
Accrued Liabilities [Member]
 
 
LIABILITIES
 
 
Foreign currency derivative instruments
 
5 
Accrued Liabilities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
LIABILITIES
 
 
Foreign currency derivative instruments
 
$ 5 
Fair Value Measurements - Impairments (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Continuing Operations [Member] |
Fair Value, Measurements, Nonrecurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Property and equipment, impairments
$ 42 
$ 101 
Property and equipment, remaining net carrying value
19 1
10 1
Total impairments
43 
125 
Total remaining net carrying value
19 1
31 1
Discontinued Operations [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Impairment of Long-Lived Assets to be Disposed of
 
175 
Discontinued Operations [Member] |
Fair Value, Measurements, Nonrecurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Property and equipment, impairments
1 2 3
221 2
Property and equipment, remaining net carrying value
0 1 2 3
0 1 2 3
Total impairments
1 
225 
Total remaining net carrying value
0 1
0 1
Discontinued Operations [Member] |
Trade Names [Member] |
Fair Value, Measurements, Nonrecurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Tradename, impairments
0 
4 
Tradename, remaining net carrying value
0 
0 1
Property and equipment write-downs [Member] |
Continuing Operations [Member] |
Fair Value, Measurements, Nonrecurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Property and equipment, impairments
1 4
8 4
Property and equipment, remaining net carrying value
0 1 4
0 1 4
Investments Impairment Charge Related to Restructuring [Member] |
Continuing Operations [Member] |
Fair Value, Measurements, Nonrecurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Investments, impairments
0 4
16 
Investments, remaining net carrying value
$ 0 1 4
$ 21 1
Restructuring Charges - Summary (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 11 Months Ended 12 Months Ended
Jan. 31, 2015
Nov. 1, 2014
Aug. 2, 2014
May 3, 2014
Feb. 1, 2014
Nov. 2, 2013
Aug. 3, 2013
May 4, 2013
Feb. 2, 2013
Jan. 31, 2015
Feb. 1, 2014
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
$ (7)
$ 5 
$ 5 
$ 2 
$ 113 
$ 27 
$ 4 
$ 5 
$ 449 
$ 23 
$ 259 
Restructuring Program 2013 Renew Blue [Member] [Domain]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
171 
29 
165 
Other Restructuring [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
278 
(6)
94 
Continuing Operations [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
415 
5 
149 
Continuing Operations [Member] |
Restructuring Program 2013 Renew Blue [Member] [Domain]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
171 
11 
155 
Continuing Operations [Member] |
Other Restructuring [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
244 
(6)
(6)
Discontinued Operations [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
34 
18 
110 
Discontinued Operations [Member] |
Restructuring Program 2013 Renew Blue [Member] [Domain]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
0 
18 
10 
Discontinued Operations [Member] |
Other Restructuring [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
$ 34 
$ 0 
$ 100 
Restructuring Charges - Renew Blue Plan (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 11 Months Ended 12 Months Ended
Jan. 31, 2015
Nov. 1, 2014
Aug. 2, 2014
May 3, 2014
Feb. 1, 2014
Nov. 2, 2013
Aug. 3, 2013
May 4, 2013
Feb. 2, 2013
Jan. 31, 2015
Feb. 1, 2014
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
$ (7)
$ 5 
$ 5 
$ 2 
$ 113 
$ 27 
$ 4 
$ 5 
$ 449 
$ 23 
$ 259 
Restructuring charges
 
 
 
 
 
 
 
 
414 
5 
149 
Continuing Operations [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
415 
5 
149 
Discontinued Operations [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
34 
18 
110 
Restructuring Program 2013 Renew Blue [Member] [Domain]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
171 
29 
165 
Restructuring and Related Cost, Cost Incurred to Date
365 
 
 
 
 
 
 
 
 
365 
 
Restructuring Reserve
39 
 
 
 
162 
 
 
 
108 
39 
162 
Restructuring charges
 
 
 
 
 
 
 
 
 
63 
149 
Payments for Restructuring
 
 
 
 
 
 
 
 
 
(143)
(91)
Restructuring Reserve, Accrual Adjustment
 
 
 
 
 
 
 
 
(4)1
(35)1
 
Restructuring Reserve, Translation Adjustment
 
 
 
 
 
 
 
 
 
8 
 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Employee Severance [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Reserve
16 
 
 
 
111 
 
 
 
54 
16 
111 
Restructuring charges
 
 
 
 
 
 
 
 
 
47 
133 
Payments for Restructuring
 
 
 
 
 
 
 
 
 
(121)
(68)
Restructuring Reserve, Accrual Adjustment
 
 
 
 
 
 
 
 
 
(21)1
(8)1
Restructuring Reserve, Translation Adjustment
 
 
 
 
 
 
 
 
 
0 
 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Facility Closing [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Reserve
23 
 
 
 
51 
 
 
 
54 
23 
51 
Restructuring charges
 
 
 
 
 
 
 
 
 
16 
16 
Payments for Restructuring
 
 
 
 
 
 
 
 
 
(22)
(23)
Restructuring Reserve, Accrual Adjustment
 
 
 
 
 
 
 
 
 
(14)1
4 1
Restructuring Reserve, Translation Adjustment
 
 
 
 
 
 
 
 
 
(8)
 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Domestic Segment [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
84 
10 
129 
Restructuring and Related Cost, Cost Incurred to Date
223 
 
 
 
 
 
 
 
 
223 
 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
International [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
87 
19 
36 
Restructuring and Related Cost, Cost Incurred to Date
142 
 
 
 
 
 
 
 
 
142 
 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Continuing Operations [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
171 
11 
155 
Restructuring and Related Cost, Cost Incurred to Date
337 
 
 
 
 
 
 
 
 
337 
 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Continuing Operations [Member] |
Inventory write-downs [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
1 
0 
0 
Restructuring and Related Cost, Cost Incurred to Date
1 
 
 
 
 
 
 
 
 
1 
 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Continuing Operations [Member] |
Property and equipment write-downs [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
30 
1 
8 
Restructuring and Related Cost, Cost Incurred to Date
39 
 
 
 
 
 
 
 
 
39 
 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Continuing Operations [Member] |
Employee Severance [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
55 
14 
130 
Restructuring and Related Cost, Cost Incurred to Date
199 
 
 
 
 
 
 
 
 
199 
 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Continuing Operations [Member] |
Investments Impairment Charge Related to Restructuring [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
27 
0 
16 
Restructuring and Related Cost, Cost Incurred to Date
43 
 
 
 
 
 
 
 
 
43 
 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Continuing Operations [Member] |
Facility Closing [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
58 
(4)
1 
Restructuring and Related Cost, Cost Incurred to Date
55 
 
 
 
 
 
 
 
 
55 
 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Continuing Operations [Member] |
Domestic Segment [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
84 
10 
129 
Restructuring and Related Cost, Cost Incurred to Date
223 
 
 
 
 
 
 
 
 
223 
 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Continuing Operations [Member] |
Domestic Segment [Member] |
Inventory write-downs [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
1 
0 
0 
Restructuring and Related Cost, Cost Incurred to Date
1 
 
 
 
 
 
 
 
 
1 
 
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 charges
 
 
 
 
 
 
 
 
7 
0 
7 
Restructuring and Related Cost, Cost Incurred to Date
14 
 
 
 
 
 
 
 
 
14 
 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Continuing Operations [Member] |
Domestic Segment [Member] |
Employee Severance [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
46 
9 
106 
Restructuring and Related Cost, Cost Incurred to Date
161 
 
 
 
 
 
 
 
 
161 
 
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 charges
 
 
 
 
 
 
 
 
27 
0 
16 
Restructuring and Related Cost, Cost Incurred to Date
43 
 
 
 
 
 
 
 
 
43 
 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Continuing Operations [Member] |
Domestic Segment [Member] |
Facility Closing [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
3 
1 
0 
Restructuring and Related Cost, Cost Incurred to Date
4 
 
 
 
 
 
 
 
 
4 
 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Continuing Operations [Member] |
International [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
87 
1 
26 
Restructuring and Related Cost, Cost Incurred to Date
114 
 
 
 
 
 
 
 
 
114 
 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Continuing Operations [Member] |
International [Member] |
Inventory write-downs [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
 
0 
0 
Restructuring and Related Cost, Cost Incurred to Date
0 
 
 
 
 
 
 
 
 
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 charges
 
 
 
 
 
 
 
 
23 
1 
1 
Restructuring and Related Cost, Cost Incurred to Date
25 
 
 
 
 
 
 
 
 
25 
 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Continuing Operations [Member] |
International [Member] |
Employee Severance [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
9 
5 
24 
Restructuring and Related Cost, Cost Incurred to Date
38 
 
 
 
 
 
 
 
 
38 
 
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 charges
 
 
 
 
 
 
 
 
 
0 
0 
Restructuring and Related Cost, Cost Incurred to Date
0 
 
 
 
 
 
 
 
 
0 
 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Continuing Operations [Member] |
International [Member] |
Facility Closing [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
55 
(5)
1 
Restructuring and Related Cost, Cost Incurred to Date
51 
 
 
 
 
 
 
 
 
51 
 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Discontinued Operations [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
0 
18 
10 
Restructuring and Related Cost, Cost Incurred to Date
28 
 
 
 
 
 
 
 
 
28 
 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Discontinued Operations [Member] |
Property and equipment write-downs [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
 
0 
1 
Restructuring and Related Cost, Cost Incurred to Date
1 
 
 
 
 
 
 
 
 
1 
 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Discontinued Operations [Member] |
Employee Severance [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
 
12 
4 
Restructuring and Related Cost, Cost Incurred to Date
16 
 
 
 
 
 
 
 
 
16 
 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Discontinued Operations [Member] |
Facility Closing [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
 
6 
5 
Restructuring and Related Cost, Cost Incurred to Date
11 
 
 
 
 
 
 
 
 
11 
 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Discontinued Operations [Member] |
Domestic Segment [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
0 
0 
0 
Restructuring and Related Cost, Cost Incurred to Date
0 
 
 
 
 
 
 
 
 
0 
 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Discontinued Operations [Member] |
International [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
 
18 
10 
Restructuring and Related Cost, Cost Incurred to Date
28 
 
 
 
 
 
 
 
 
28 
 
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 charges
 
 
 
 
 
 
 
 
 
 
1 
Restructuring and Related Cost, Cost Incurred to Date
1 
 
 
 
 
 
 
 
 
1 
 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Discontinued Operations [Member] |
International [Member] |
Employee Severance [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
 
12 
4 
Restructuring and Related Cost, Cost Incurred to Date
16 
 
 
 
 
 
 
 
 
16 
 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Discontinued Operations [Member] |
International [Member] |
Facility Closing [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
 
6 
5 
Restructuring and Related Cost, Cost Incurred to Date
$ 11 
 
 
 
 
 
 
 
 
$ 11 
 
Restructuring Charges Other Restructuring (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 11 Months Ended 12 Months Ended
Jan. 31, 2015
Nov. 1, 2014
Aug. 2, 2014
May 3, 2014
Feb. 1, 2014
Nov. 2, 2013
Aug. 3, 2013
May 4, 2013
Feb. 2, 2013
Jan. 31, 2015
Feb. 1, 2014
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
$ (7)
$ 5 
$ 5 
$ 2 
$ 113 
$ 27 
$ 4 
$ 5 
$ 449 
$ 23 
$ 259 
Restructuring charges
 
 
 
 
 
 
 
 
414 
5 
149 
Continuing Operations [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
415 
5 
149 
Discontinued Operations [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
34 
18 
110 
Other Restructuring [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Reserve
34 
 
 
 
58 
 
 
 
158 
34 
58 
Restructuring charges
 
 
 
 
 
 
 
 
278 
(6)
94 
Restructuring and Related Cost, Cost Incurred to Date
875 
 
 
 
 
 
 
 
 
875 
 
Restructuring charges
 
 
 
 
 
 
 
 
 
3 
42 
Payments for Restructuring
 
 
 
 
 
 
 
 
 
(21)
(90)
Restructuring Reserve, Accrual Adjustment
 
 
 
 
 
 
 
 
 
(6)1
(50)1
Restructuring Reserve, Translation Adjustment
 
 
 
 
 
 
 
 
 
 
(2)
Other Restructuring [Member] |
Employee Severance [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Reserve
0 
 
 
 
0 
 
 
 
4 
0 
0 
Restructuring charges
 
 
 
 
 
 
 
 
 
 
36 
Payments for Restructuring
 
 
 
 
 
 
 
 
 
0 
(4)
Restructuring Reserve, Accrual Adjustment
 
 
 
 
 
 
 
 
 
0 1
(36)1
Restructuring Reserve, Translation Adjustment
 
 
 
 
 
 
 
 
 
 
0 
Other Restructuring [Member] |
Facility Closing [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Reserve
34 
 
 
 
58 
 
 
 
154 
34 
58 
Restructuring charges
 
 
 
 
 
 
 
 
 
3 
6 
Payments for Restructuring
 
 
 
 
 
 
 
 
 
(21)
(86)
Restructuring Reserve, Accrual Adjustment
 
 
 
 
 
 
 
 
 
(6)1
(14)1
Restructuring Reserve, Translation Adjustment
 
 
 
 
 
 
 
 
 
 
(2)
Other Restructuring [Member] |
Domestic Segment [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
244 
(6)
(6)
Restructuring and Related Cost, Cost Incurred to Date
350 
 
 
 
 
 
 
 
 
350 
 
Other Restructuring [Member] |
International [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
34 
0 
100 
Restructuring and Related Cost, Cost Incurred to Date
525 
 
 
 
 
 
 
 
 
525 
 
Other Restructuring [Member] |
Continuing Operations [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
244 
(6)
(6)
Restructuring and Related Cost, Cost Incurred to Date
427 
 
 
 
 
 
 
 
 
427 
 
Other Restructuring [Member] |
Continuing Operations [Member] |
Property and equipment write-downs [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
17 
 
 
Restructuring and Related Cost, Cost Incurred to Date
161 
 
 
 
 
 
 
 
 
161 
 
Other Restructuring [Member] |
Continuing Operations [Member] |
Employee Severance [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
77 
0 
0 
Restructuring and Related Cost, Cost Incurred to Date
91 
 
 
 
 
 
 
 
 
91 
 
Other Restructuring [Member] |
Continuing Operations [Member] |
Facility Closing [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
150 
(6)
(6)
Restructuring and Related Cost, Cost Incurred to Date
147 
 
 
 
 
 
 
 
 
147 
 
Other Restructuring [Member] |
Continuing Operations [Member] |
Inventory write-downs [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
0 
0 
0 
Restructuring and Related Cost, Cost Incurred to Date
28 
 
 
 
 
 
 
 
 
28 
 
Other Restructuring [Member] |
Continuing Operations [Member] |
Domestic Segment [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
244 
(6)
(6)
Restructuring and Related Cost, Cost Incurred to Date
315 
 
 
 
 
 
 
 
 
315 
 
Other Restructuring [Member] |
Continuing Operations [Member] |
Domestic Segment [Member] |
Property and equipment write-downs [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
17 
0 
0 
Restructuring and Related Cost, Cost Incurred to Date
49 
 
 
 
 
 
 
 
 
49 
 
Other Restructuring [Member] |
Continuing Operations [Member] |
Domestic Segment [Member] |
Employee Severance [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
77 
0 
0 
Restructuring and Related Cost, Cost Incurred to Date
91 
 
 
 
 
 
 
 
 
91 
 
Other Restructuring [Member] |
Continuing Operations [Member] |
Domestic Segment [Member] |
Facility Closing [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
150 
(6)
(6)
Restructuring and Related Cost, Cost Incurred to Date
147 
 
 
 
 
 
 
 
 
147 
 
Other Restructuring [Member] |
Continuing Operations [Member] |
Domestic Segment [Member] |
Inventory write-downs [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
0 
0 
0 
Restructuring and Related Cost, Cost Incurred to Date
28 
 
 
 
 
 
 
 
 
28 
 
Other Restructuring [Member] |
Continuing Operations [Member] |
International [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
0 
0 
0 
Restructuring and Related Cost, Cost Incurred to Date
112 
 
 
 
 
 
 
 
 
112 
 
Other Restructuring [Member] |
Continuing Operations [Member] |
International [Member] |
Property and equipment write-downs [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
0 
0 
0 
Restructuring and Related Cost, Cost Incurred to Date
112 
 
 
 
 
 
 
 
 
112 
 
Other Restructuring [Member] |
Continuing Operations [Member] |
International [Member] |
Employee Severance [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
0 
0 
0 
Other Restructuring [Member] |
Continuing Operations [Member] |
International [Member] |
Facility Closing [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
0 
0 
0 
Restructuring and Related Cost, Cost Incurred to Date
0 
 
 
 
 
 
 
 
 
0 
 
Other Restructuring [Member] |
Continuing Operations [Member] |
International [Member] |
Inventory write-downs [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
0 
0 
0 
Restructuring and Related Cost, Cost Incurred to Date
0 
 
 
 
 
 
 
 
 
0 
 
Other Restructuring [Member] |
Discontinued Operations [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
34 
0 
100 
Restructuring and Related Cost, Cost Incurred to Date
448 
 
 
 
 
 
 
 
 
448 
 
Other Restructuring [Member] |
Discontinued Operations [Member] |
Property and equipment write-downs [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
12 
0 
45 
Restructuring and Related Cost, Cost Incurred to Date
203 
 
 
 
 
 
 
 
 
203 
 
Other Restructuring [Member] |
Discontinued Operations [Member] |
Employee Severance [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
20 
0 
36 
Restructuring and Related Cost, Cost Incurred to Date
95 
 
 
 
 
 
 
 
 
95 
 
Other Restructuring [Member] |
Discontinued Operations [Member] |
Impairment of Intangible Assets Related to Restructuring [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
 
 
4 
Restructuring and Related Cost, Cost Incurred to Date
17 
 
 
 
 
 
 
 
 
17 
 
Other Restructuring [Member] |
Discontinued Operations [Member] |
Facility Closing [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
2 
0 
8 
Restructuring and Related Cost, Cost Incurred to Date
100 
 
 
 
 
 
 
 
 
100 
 
Other Restructuring [Member] |
Discontinued Operations [Member] |
Inventory write-downs [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
0 
0 
7 
Restructuring and Related Cost, Cost Incurred to Date
33 
 
 
 
 
 
 
 
 
33 
 
Other Restructuring [Member] |
Discontinued Operations [Member] |
Domestic Segment [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
0 
0 
0 
Restructuring and Related Cost, Cost Incurred to Date
35 
 
 
 
 
 
 
 
 
35 
 
Other Restructuring [Member] |
Discontinued Operations [Member] |
Domestic Segment [Member] |
Property and equipment write-downs [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
0 
0 
0 
Restructuring and Related Cost, Cost Incurred to Date
15 
 
 
 
 
 
 
 
 
15 
 
Other Restructuring [Member] |
Discontinued Operations [Member] |
Domestic Segment [Member] |
Employee Severance [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
0 
0 
0 
Restructuring and Related Cost, Cost Incurred to Date
4 
 
 
 
 
 
 
 
 
4 
 
Other Restructuring [Member] |
Discontinued Operations [Member] |
Domestic Segment [Member] |
Impairment of Intangible Assets Related to Restructuring [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring and Related Cost, Cost Incurred to Date
13 
 
 
 
 
 
 
 
 
13 
 
Other Restructuring [Member] |
Discontinued Operations [Member] |
Domestic Segment [Member] |
Facility Closing [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
0 
0 
0 
Restructuring and Related Cost, Cost Incurred to Date
3 
 
 
 
 
 
 
 
 
3 
 
Other Restructuring [Member] |
Discontinued Operations [Member] |
Domestic Segment [Member] |
Inventory write-downs [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
0 
0 
0 
Restructuring and Related Cost, Cost Incurred to Date
0 
 
 
 
 
 
 
 
 
0 
 
Other Restructuring [Member] |
Discontinued Operations [Member] |
International [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
34 
0 
100 
Restructuring and Related Cost, Cost Incurred to Date
413 
 
 
 
 
 
 
 
 
413 
 
Other Restructuring [Member] |
Discontinued Operations [Member] |
International [Member] |
Property and equipment write-downs [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
12 
0 
45 
Restructuring and Related Cost, Cost Incurred to Date
188 
 
 
 
 
 
 
 
 
188 
 
Other Restructuring [Member] |
Discontinued Operations [Member] |
International [Member] |
Employee Severance [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
20 
0 
36 
Restructuring and Related Cost, Cost Incurred to Date
91 
 
 
 
 
 
 
 
 
91 
 
Other Restructuring [Member] |
Discontinued Operations [Member] |
International [Member] |
Impairment of Intangible Assets Related to Restructuring [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
 
 
4 
Restructuring and Related Cost, Cost Incurred to Date
4 
 
 
 
 
 
 
 
 
4 
 
Other Restructuring [Member] |
Discontinued Operations [Member] |
International [Member] |
Facility Closing [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
2 
0 
8 
Restructuring and Related Cost, Cost Incurred to Date
97 
 
 
 
 
 
 
 
 
97 
 
Other Restructuring [Member] |
Discontinued Operations [Member] |
International [Member] |
Inventory write-downs [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
0 
0 
7 
Restructuring and Related Cost, Cost Incurred to Date
$ 33 
 
 
 
 
 
 
 
 
$ 33 
 
Debt - Short-Term Debt (Details) (USD $)
In Millions, unless otherwise specified
Jan. 31, 2015
U.S. revolving credit facility [Member]
 
Short-term Debt
 
Line of credit facility, amount outstanding
$ 0 
U.S. revolving credit facility - 364-Day [Member]
 
Short-term Debt
 
Line of Credit Facility, Previous Borrowing Capacity
500 
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) (USD $)
In Millions, unless otherwise specified
1 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Mar. 31, 2011
2016 and 2021 Notes [Member]
Jan. 31, 2015
2016 and 2021 Notes [Member]
Jan. 31, 2015
2016 Notes [Member]
Feb. 1, 2014
2016 Notes [Member]
Mar. 31, 2011
2016 Notes [Member]
Jul. 31, 2013
Notes due 2018 [Member]
Jan. 31, 2015
Notes due 2018 [Member]
Feb. 1, 2014
Notes due 2018 [Member]
Jul. 16, 2013
Notes due 2018 [Member]
Jan. 31, 2015
2021 Notes [Member]
Feb. 1, 2014
2021 Notes [Member]
Mar. 31, 2011
2021 Notes [Member]
Jan. 31, 2015
Interest Rate Swap [Member]
Feb. 1, 2014
Interest Rate Swap [Member]
Jan. 31, 2015
Financing Lease Obligations [Member]
Feb. 1, 2014
Financing Lease Obligations [Member]
Jan. 31, 2015
Capital Lease Obligations [Member]
Feb. 1, 2014
Capital Lease Obligations [Member]
Jan. 31, 2015
Other debt [Member]
Feb. 1, 2014
Other debt [Member]
Jan. 31, 2015
Minimum [Member]
Financing Lease Obligations [Member]
Jan. 31, 2015
Minimum [Member]
Capital Lease Obligations [Member]
Jan. 31, 2015
Maximum [Member]
Financing Lease Obligations [Member]
Jan. 31, 2015
Maximum [Member]
Capital Lease Obligations [Member]
Jan. 31, 2015
Notes due 2018 [Member]
Long-term Debt.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total long-term debt
$ 1,621 
$ 1,657 
 
 
$ 349 
$ 349 
 
 
$ 500 
$ 500 
 
$ 649 
$ 649 
 
$ 1 
$ 0 
$ 69 
$ 95 
$ 52 
$ 63 
$ 1 
$ 1 
 
 
 
 
 
Less: current portion
(41)
(45)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total long-term debt, less current portion
1,580 
1,612 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt, fair value
1,677 
1,690 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument issued, principal amount
 
 
 
 
 
 
350 
 
 
 
500 
 
 
650 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate (as a percent)
 
 
 
 
3.75% 
 
 
 
 
 
5.00% 
5.50% 
 
 
 
 
 
 
 
 
6.70% 
 
3.00% 
1.90% 
8.10% 
9.30% 
 
Underwriting discounts
 
 
6 
 
 
 
 
5 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net proceeds from the sale of the Notes
 
 
990 
 
 
 
 
495 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Redemption price, as percentage of principal amount of debt instrument (as a percent)
 
 
 
100.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.00% 
Debt Instrument, Treasury Rate Basis Points for Redemption
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
50 
Redemption price upon control triggering event, percentage of principal amount (as a percent)
 
 
 
101.00% 
 
 
 
 
101.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Future maturities of long-term debt, including capitalized leases
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2016
41 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2017
375 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2018
18 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2019
511 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2020
6 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Thereafter
$ 670 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Derivatives, Fair Value [Line Items]
 
 
Derivative Asset, Fair Value, Gross Asset
$ 31 
$ 2 
Derivative Liability, Fair Value, Gross Liability
 
5 
Derivative, Notional Amount
554 
157 
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments
12 
5 
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax
22 
 
Net Investment Hedging [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Asset, Fair Value, Gross Asset
19 1
 
Derivative, Notional Amount
197 
0 
Interest Rate Swap [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Asset, Fair Value, Gross Asset
1 2
 
Derivative, Notional Amount
145 
0 
Foreign Exchange Forward [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Asset, Fair Value, Gross Asset
11 1
2 1
Derivative Liability, Fair Value, Gross Liability
 
5 1
Derivative, Notional Amount
$ 212 
$ 157 
Shareholders' Equity (Details) (USD $)
In Millions, except Share data, unless otherwise specified
11 Months Ended 12 Months Ended
Feb. 2, 2013
Jan. 31, 2015
Feb. 1, 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)
 
22,700,000 
 
Stock-based compensation expense (in dollars)
$ 112 
$ 87 
$ 97 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
 
 
 
Outstanding at the beginning of the period (in shares)
 
22,101,000 
 
Granted (in shares)
 
1,524,000 
 
Exercised (in shares)
 
(1,679,000)
 
Forfeited/Canceled (in shares)
 
(4,604,000)
 
Outstanding at the end of the period (in shares)
 
17,342,000 
22,101,000 
Vested or expected to vest at the end of the period (in shares)
 
17,095,000 
 
Exercisable at the end of the period (in shares)
 
13,995,000 
 
Weighted Average Exercise Price [Roll Forward]
 
 
 
Outstanding at the beginning of the period (in dollars per share)
 
$ 36.38 
 
Granted (in dollars per share)
 
$ 29.90 
 
Exercised (in dollars per share)
 
$ 25.31 
 
Forfeited/Canceled (in dollars per share)
 
$ 36.62 
 
Outstanding at the end of the period (in dollars per share)
 
$ 36.81 
$ 36.38 
Vested or expected to vest at the end of the period (in dollars per share)
 
$ 36.91 
 
Exercisable at the end of the period (in dollars per share)
 
$ 39.37 
 
Weighted Average Remaining Contractual Term, Years [Abstract]
 
 
 
Outstanding at the end of the period (in years)
 
4 years 11 months 
 
Vested or expected to vest at the end of the period (in years)
 
4 years 10 months 
 
Exercisable at the end of the period (in years)
 
4 years 
 
Aggregate Intrinsic Value [Abstract]
 
 
 
Outstanding at the end of the period (in dollars)
 
67 
 
Vested or expected to vest at the end of the period (in dollars)
 
66 
 
Exercisable at the end of the period (in dollars)
 
36 
 
Weighted-average grant-date fair value of stock options granted (in dollars per share)
$ 5.11 
$ 9.09 
$ 7.77 
Aggregate intrinsic value of stock options exercised (in dollars)
0 
13 
39 
Net cash proceeds from the exercise of stock options (in dollars)
1 
42 
158 
Actual income tax benefit realized from stock option exercises (in dollars)
0 
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)
0.10% 1 2
0.10% 1 2
0.10% 1 2
Risk-free interest rate high end of the range (as a percent)
2.00% 1 2
2.40% 1 2
1.80% 1 2
Expected dividend yield (as a percent)
2.20% 2
2.50% 2
2.00% 2
Expected stock price volatility (as a percent)
44.00% 2 3
40.00% 2 3
46.00% 2 3
Expected life of stock options (in years)
5 years 10 months 24 days 2 4
6 years 2 4
5 years 10 months 24 days 2 4
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)
43 
17 
25 
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 2 months 
 
Market-based [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Stock-based compensation expense (in dollars)
2 
10 
9 
Aggregate Intrinsic Value [Abstract]
 
 
 
Unrecognized compensation (in dollars)
 
20 
 
Weighted-average period over which compensation expense is expected to be recognized (in years)
 
1 year 11 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)
 
1,636,000 
 
Granted (in shares)
 
564,000 
 
Vested (in shares)
 
(127,000)
 
Forfeited/Canceled (in shares)
 
(369,000)
 
Outstanding at the end of the period (in shares)
 
1,704,000 
1,636,000 
Weighted Average Fair Value Per Share [Roll Forward]
 
 
 
Outstanding at the beginning of the period (in dollars per share)
 
$ 20.91 
 
Granted (in dollars per share)
 
$ 29.22 
 
Vested (in dollars per share)
 
$ 19.16 
 
Forfeited/Canceled (in dollars per share)
 
$ 19.23 
 
Outstanding at the end of the period (in dollars per share)
 
$ 24.16 
$ 20.91 
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)
62 
60 
62 
Aggregate Intrinsic Value [Abstract]
 
 
 
Unrecognized compensation (in dollars)
 
84 
 
Weighted-average period over which compensation expense is expected to be recognized (in years)
 
1 year 11 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)
 
7,065,000 
 
Granted (in shares)
 
2,609,000 
 
Vested (in shares)
 
(2,657,000)
 
Forfeited/Canceled (in shares)
 
(1,474,000)
 
Outstanding at the end of the period (in shares)
 
5,543,000 
7,065,000 
Weighted Average Fair Value Per Share [Roll Forward]
 
 
 
Outstanding at the beginning of the period (in dollars per share)
 
$ 21.49 
 
Granted (in dollars per share)
 
$ 28.49 
 
Vested (in dollars per share)
 
$ 22.77 
 
Forfeited/Canceled (in dollars per share)
 
$ 20.68 
 
Outstanding at the end of the period (in dollars per share)
 
$ 24.40 
$ 21.49 
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)
1,000,000 
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)
5 
0 
1 
Weighted Average Fair Value Per Share [Roll Forward]
 
 
 
Amount accumulated by plan participants to purchase common stock (in dollars)
 
$ 1 
$ 2 
Shareholders' Equity (Details 2) (USD $)
3 Months Ended 11 Months Ended 12 Months Ended
Jan. 31, 2015
Nov. 1, 2014
Aug. 2, 2014
May 3, 2014
Feb. 1, 2014
Nov. 2, 2013
Aug. 3, 2013
May 4, 2013
Feb. 2, 2013
Jan. 31, 2015
Feb. 1, 2014
Mar. 3, 2012
Jan. 28, 2012
Jun. 30, 2011
Jun. 30, 2007
Outstanding Options to Purchase Common Stock [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net cash proceeds from the exercise of stock options (in dollars)
 
 
 
 
 
 
 
 
$ 1,000,000 
$ 42,000,000 
$ 158,000,000 
 
 
 
 
Weighted-average grant-date fair value of stock options granted (in dollars per share)
 
 
 
 
 
 
 
 
$ 5.11 
$ 9.09 
$ 7.77 
 
 
 
 
Exercisable stock options (in shares)
13,995,000 
 
 
 
 
 
 
 
 
13,995,000 
 
 
 
 
 
Percentage of exercisable stock options (as a percent)
100.00% 
 
 
 
 
 
 
 
 
100.00% 
 
 
 
 
 
Exercisable stock options, weighted-average price (in dollars per share)
$ 39.37 
 
 
 
 
 
 
 
 
$ 39.37 
 
 
 
 
 
Unexercisable stock options (in shares)
3,300,000.0 
 
 
 
 
 
 
 
 
3,300,000.0 
 
 
 
 
 
Percentage of unexercisable stock options (as a percent)
100.00% 
 
 
 
 
 
 
 
 
100.00% 
 
 
 
 
 
Unexercisable stock options, weighted-average price (in dollars per share)
$ 26.11 
 
 
 
 
 
 
 
 
$ 26.11 
 
 
 
 
 
Total outstanding stock options (in shares)
17,342,000 
 
 
 
22,101,000 
 
 
 
 
17,342,000 
22,101,000 
 
 
 
 
Percentage of outstanding stock options (as a percent)
100.00% 
 
 
 
 
 
 
 
 
100.00% 
 
 
 
 
 
Outstanding stock options, weighted-average price (in dollars per share)
$ 36.81 
 
 
 
$ 36.38 
 
 
 
 
$ 36.81 
$ 36.38 
 
 
 
 
Numerator [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest
524,000,000 
116,000,000 
137,000,000 
469,000,000 
300,000,000 
50,000,000 
233,000,000 
112,000,000 
(259,000,000)
1,246,000,000 
695,000,000 
 
 
 
 
Net earnings from continuing operations attributable to Best Buy Co., Inc., diluted
 
 
 
 
 
 
 
 
(259,000,000)1
1,246,000,000 
695,000,000 
 
 
 
 
Denominator [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average common shares outstanding (in shares)
 
 
 
 
 
 
 
 
338,600,000 1
349,500,000 
342,100,000 
 
 
 
 
Effect of Potentially Dilutive Securities [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock options and other (in shares)
 
 
 
 
 
 
 
 
0 1
4,100,000 
5,500,000 
 
 
 
 
Weighted-average common shares outstanding, assuming dilution (in shares)
 
 
 
 
 
 
 
 
338,600,000 1
353,600,000 
347,600,000 
 
 
 
 
Earnings per share attributable to Best Buy Co., Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic (in dollars per share)
 
 
 
 
 
 
 
 
$ (0.76)1
$ 3.57 
$ 2.03 
 
 
 
 
Diluted (in dollars per share)
$ 1.47 
$ 0.33 
$ 0.39 
$ 1.33 
$ 0.85 
$ 0.15 
$ 0.67 
$ 0.33 
$ (0.76)1
$ 3.53 
$ 2.00 
 
 
 
 
Share repurchases authorized (in shares)
 
 
 
 
 
 
 
 
 
 
 
 
 
5,000,000,000 
5,500,000,000 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation
382,000,000 
 
 
 
485,000,000 
 
 
 
113,000,000 
382,000,000 
485,000,000 
93,000,000 
104,000,000 
 
 
Unrealized gains (losses) on available-for-sale investments
0 
 
 
 
7,000,000 
 
 
 
(1,000,000)
0 
7,000,000 
(3,000,000)
(3,000,000)
 
 
Total
382,000,000 
 
 
 
492,000,000 
 
 
 
112,000,000 
382,000,000 
492,000,000 
90,000,000 
101,000,000 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value
 
 
 
 
 
 
 
 
0 
13,000,000 
39,000,000 
 
 
 
 
Actual income tax benefit realized from stock option exercises (in dollars)
 
 
 
 
 
 
 
 
0 
5,000,000 
13,000,000 
 
 
 
 
In-the-money [Member]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding Options to Purchase Common Stock [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exercisable stock options (in shares)
2,800,000.0 
 
 
 
 
 
 
 
 
2,800,000.0 
 
 
 
 
 
Percentage of exercisable stock options (as a percent)
20.00% 
 
 
 
 
 
 
 
 
20.00% 
 
 
 
 
 
Exercisable stock options, weighted-average price (in dollars per share)
$ 22.99 
 
 
 
 
 
 
 
 
$ 22.99 
 
 
 
 
 
Unexercisable stock options (in shares)
3,100,000.0 
 
 
 
 
 
 
 
 
3,100,000.0 
 
 
 
 
 
Percentage of unexercisable stock options (as a percent)
94.00% 
 
 
 
 
 
 
 
 
94.00% 
 
 
 
 
 
Unexercisable stock options, weighted-average price (in dollars per share)
$ 25.60 
 
 
 
 
 
 
 
 
$ 25.60 
 
 
 
 
 
Total outstanding stock options (in shares)
5,900,000.0 
 
 
 
 
 
 
 
 
5,900,000.0 
 
 
 
 
 
Percentage of outstanding stock options (as a percent)
34.00% 
 
 
 
 
 
 
 
 
34.00% 
 
 
 
 
 
Outstanding stock options, weighted-average price (in dollars per share)
$ 24.38 
 
 
 
 
 
 
 
 
$ 24.38 
 
 
 
 
 
Out-of-the-money [Member]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding Options to Purchase Common Stock [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exercisable stock options (in shares)
11,200,000.0 
 
 
 
 
 
 
 
 
11,200,000.0 
 
 
 
 
 
Percentage of exercisable stock options (as a percent)
80.00% 
 
 
 
 
 
 
 
 
80.00% 
 
 
 
 
 
Exercisable stock options, weighted-average price (in dollars per share)
$ 43.42 
 
 
 
 
 
 
 
 
$ 43.42 
 
 
 
 
 
Unexercisable stock options (in shares)
200,000.0 
 
 
 
 
 
 
 
 
200,000.0 
 
 
 
 
 
Percentage of unexercisable stock options (as a percent)
6.00% 
 
 
 
 
 
 
 
 
6.00% 
 
 
 
 
 
Unexercisable stock options, weighted-average price (in dollars per share)
$ 34.25 
 
 
 
 
 
 
 
 
$ 34.25 
 
 
 
 
 
Total outstanding stock options (in shares)
11,400,000.0 
 
 
 
 
 
 
 
 
11,400,000.0 
 
 
 
 
 
Percentage of outstanding stock options (as a percent)
66.00% 
 
 
 
 
 
 
 
 
66.00% 
 
 
 
 
 
Outstanding stock options, weighted-average price (in dollars per share)
$ 43.27 
 
 
 
 
 
 
 
 
$ 43.27 
 
 
 
 
 
June 2011 share repurchase program [Member}
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding Options to Purchase Common Stock [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amounting remaining for additional share repurchases
4,000,000,000 
 
 
 
 
 
 
 
 
4,000,000,000 
 
 
 
 
 
Open Market Repurchases [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total number of shares repurchased
 
 
 
 
 
 
 
 
6,300,000 
0 
0 
 
 
 
 
Total cost of shares repurchased
 
 
 
 
 
 
 
 
122,000,000 
0 
0 
 
 
 
 
Market-based [Member]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding Options to Purchase Common Stock [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrecognized compensation (in dollars)
$ 20,000,000 
 
 
 
 
 
 
 
 
$ 20,000,000 
 
 
 
 
 
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 11 months 
 
 
 
 
 
Employee Stock [Member]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding Options to Purchase Common Stock [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Issuance of common stock under employee stock purchase plan (in shares)
 
 
 
 
 
 
 
 
1,000,000 
300,000 
600,000 
 
 
 
 
Shareholders' Equity - Components of Accumulated Other Comprehensive Income (Details) (USD $)
In Millions, unless otherwise specified
1 Months Ended 11 Months Ended 12 Months Ended
Mar. 3, 2012
Feb. 2, 2013
Jan. 31, 2015
Feb. 1, 2014
Jan. 28, 2012
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
 
Foreign currency translation
$ 93 
$ 113 
$ 382 
$ 485 
$ 104 
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax
(3)
(1)
0 
7 
(3)
Accumulated other comprehensive income
90 
112 
382 
492 
101 
Other Comprehensive Income (Loss), Adjustments, Net of Tax
11 
 
 
 
 
Foreign currency translation adjustments
 
15 
(103)
(136)
 
Unrealized gain (loss) on available-for-sale investments
 
2 
(3)
6 
 
Reclassification of foreign currency translations adjustments into earnings due to sale of business
 
0 
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
 
9 
(103)
(136)
 
Unrealized gain (loss) on available-for-sale investments
 
2 
(3)
7 
 
Reclassification of foreign currency translations adjustments into earnings due to sale of business
 
 
 
508 
 
Reclassification of (gains) losses on available-for-sale investments into earnings
 
 
$ (4)
$ 1 
 
Leases (Details) (USD $)
In Millions, unless otherwise specified
11 Months Ended 12 Months Ended
Feb. 2, 2013
Jan. 31, 2015
Feb. 1, 2014
Operating Leases, Rent Expense, Net [Abstract]
 
 
 
Minimum rentals
$ 809 
$ 848 
$ 864 
Contingent rentals
1 
2 
2 
Total rent expense
810 
850 
866 
Less: sublease income
(16)
(18)
(18)
Net rent expense
794 
832 
848 
Future minimum lease payments under capital leases
 
 
 
2016
 
22 
 
2017
 
11 
 
2018
 
7 
 
2019
 
4 
 
2020
 
2 
 
Thereafter
 
15 
 
Subtotal
 
61 
 
Less: imputed interest
 
(9)
 
Present value
 
52 
 
Future minimum lease payments under financing leases
 
 
 
2016
 
24 
 
2017
 
18 
 
2018
 
14 
 
2019
 
9 
 
2020
 
6 
 
Thereafter
 
9 
 
Subtotal
 
80 
 
Less: imputed interest
 
(11)
 
Present value
 
69 
 
Future minimum lease payments under operating leases
 
 
 
2016
 
873 1
 
2017
 
771 1
 
2018
 
641 1
 
2019
 
499 1
 
2020
 
365 1
 
Thereafter
 
727 1
 
Subtotal
 
3,876 1
 
Other Operating Lease Payments
 
1,200 
 
Minimum sublease rent income excluded from minimum lease payments
 
$ 117 
 
Benefit Plans (Details) (USD $)
In Millions, unless otherwise specified
11 Months Ended 12 Months Ended
Feb. 2, 2013
Jan. 31, 2015
Feb. 1, 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
$ 62 
$ 60 
$ 65 
Non-qualified, unfunded deferred compensation plan [Member]
 
 
 
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
 
 
 
Deferred Compensation Liability, Classified, Noncurrent
 
44 
54 
Deferred Compensation Plan Assets
 
$ 97 
$ 96 
Income Taxes - Tax Rate Reconciliation (Details) (USD $)
In Millions, unless otherwise specified
11 Months Ended 12 Months Ended
Feb. 2, 2013
Jan. 31, 2015
Feb. 1, 2014
Mar. 3, 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
1 
485 
379 
 
State income taxes, net of federal benefit
(2)
43 
26 
 
(Benefit) expense from foreign operations
45 
(23)
(23)
 
Other
5 
(11)
6 
 
Effective Income Tax Rate Reconciliation, Legal Entity Reorganization
 
(353)
 
 
Goodwill impairments (non-deductible)
214 
0 
0 
 
Income tax expense
$ 263 
$ 141 
$ 388 
 
Effective income tax rate
7,152.30% 
10.10% 
35.80% 
 
Income Taxes - Income Tax Expense (Details) (USD $)
In Millions, unless otherwise specified
11 Months Ended 12 Months Ended
Feb. 2, 2013
Jan. 31, 2015
Feb. 1, 2014
Earnings from continuing operations before income tax expense and equity in (loss) income of affiliates
 
 
 
United States
$ 286 
$ 1,201 
$ 699 
Outside the United States
(282)
186 
384 
Earnings from continuing operations before income tax expense
4 
1,387 
1,083 
Current:
 
 
 
Federal
211 
354 
305 
State
(3)
51 
46 
Foreign
49 
33 
55 
Current income tax expense
257 
438 
406 
Deferred:
 
 
 
Federal
25 
(275)
(22)
State
(1)
(26)
1 
Foreign
(18)
4 
3 
Deferred income tax expense
6 
(297)
(18)
Income tax expense
$ 263 
$ 141 
$ 388 
Income Taxes - Components of Deferreds (Details) (USD $)
In Millions, unless otherwise specified
Jan. 31, 2015
Feb. 1, 2014
Components of deferred tax assets and liabilities
 
 
Accrued property expenses
$ 129 
$ 162 
Other accrued expenses
91 
133 
Deferred revenue
93 
81 
Compensation and benefits
103 
114 
Stock-based compensation
94 
110 
Deferred Tax Assets, Goodwill and Intangible Assets
287 
 
Loss and credit carryforwards
156 
176 
Other
88 
103 
Total deferred tax assets
1,041 
879 
Valuation allowance
(143)
(158)
Total deferred tax assets after valuation allowance
898 
721 
Property and equipment
(251)
(286)
Goodwill and intangibles
0 
(75)
Inventory
(54)
(60)
Other
(27)
(16)
Total deferred tax liabilities
(332)
(437)
Net deferred tax assets
566 
284 
Other current assets
252 
261 
Deferred Tax Assets, Net of Valuation Allowance, Current, Held-for-Sale
3 
 
Other assets
322 
44 
Other current liabilities
0 
0 
Other long-term liabilities
0 
(21)
Deferred Tax Liabilities, Net, Noncurrent, Held-for-Sale
(11)
 
Net deferred tax assets
$ 566 
$ 284 
Income Taxes - Tax Credit and Operating Loss Carryforwards (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Feb. 1, 2014
Tax Credit Carryforward [Line Items]
 
 
Valuation allowance
$ 143 
$ 158 
Decrease in the valuation allowance, related to the international net operating loss carryforwards and other international deferred tax assets
(15)
 
Unremitted earnings of foreign operations
770 
 
State [Member]
 
 
Tax Credit Carryforward [Line Items]
 
 
Tax credit carryforwards
12 
 
Tax credit carryforwards, valuation allowance
6 
 
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
11 
 
Federal [Member] |
U.S. [Member]
 
 
Tax Credit Carryforward [Line Items]
 
 
Total net operating loss carryforwards
21 
 
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
118 
 
Net operating loss carryforwards subject to expiration
110 
 
Net operating loss carryforwards, valuation allowance
$ 125 
 
Income Taxes - Unrecognized Tax Benefits (Details) (USD $)
In Millions, unless otherwise specified
11 Months Ended 12 Months Ended
Feb. 2, 2013
Jan. 31, 2015
Feb. 1, 2014
Reconciliation of changes in unrecognized tax benefits
 
 
 
Balance at beginning of period
$ 387 
$ 370 
$ 383 
Gross increases related to prior period tax positions
10 
33 
38 
Gross decreases related to prior period tax positions
(22)
(88)
(67)
Gross increases related to current period tax positions
37 
114 
34 
Settlements with taxing authorities
(10)
(9)
(3)
Lapse of statute of limitations
(19)
(10)
(15)
Balance at end of period
383 
410 
370 
Unrecognized tax benefits that would impact the effective tax rate if recognized
231 
297 
228 
Interest expense recognized as component of income tax expense
 
6 
 
Accrued interest in income tax expense
85 
78 
91 
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense
$ 0 
$ 2 
$ 2 
Segment and Geographic Information - Segment Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 11 Months Ended 12 Months Ended
Jan. 31, 2015
Nov. 1, 2014
Aug. 2, 2014
May 3, 2014
Feb. 1, 2014
Nov. 2, 2013
Aug. 3, 2013
May 4, 2013
Feb. 2, 2013
Jan. 31, 2015
segments
Feb. 1, 2014
Business segment information
 
 
 
 
 
 
 
 
 
 
 
Number of reportable segments
 
 
 
 
 
 
 
 
 
2 
 
Goodwill impairments
 
 
 
 
 
 
 
 
$ 614 
$ 0 
$ 0 
Total revenue
14,209 
9,032 
8,459 
8,639 
14,025 
8,924 
8,734 
8,928 
38,252 
40,339 
40,611 
Operating income (loss)
810 1
205 1
225 1
210 1
452 2
100 2
405 2
187 2
90 
1,450 1
1,144 2
Other income (expense)
 
 
 
 
 
 
 
 
 
 
 
Gain on sale of investments
 
 
 
 
 
 
 
 
0 
13 
20 
Investment income and other
 
 
 
 
 
 
 
 
13 
14 
19 
Interest expense
 
 
 
 
 
 
 
 
(99)
(90)
(100)
Earnings from continuing operations before income tax expense
 
 
 
 
 
 
 
 
4 
1,387 
1,083 
Total Assets
15,256 
 
 
 
14,013 
 
 
 
16,787 
15,256 
14,013 
Total capital expenditures
 
 
 
 
 
 
 
 
705 
561 
547 
Total depreciation
 
 
 
 
 
 
 
 
794 
656 
701 
Domestic [Member]
 
 
 
 
 
 
 
 
 
 
 
Business segment information
 
 
 
 
 
 
 
 
 
 
 
Total revenue
 
 
 
 
 
 
 
 
33,222 
36,055 
35,831 
Percentage of revenue, by revenue category (as a percent)
 
 
 
 
 
 
 
 
100.00% 
100.00% 
100.00% 
Operating income (loss)
 
 
 
 
 
 
 
 
731 
1,437 
1,145 
Other income (expense)
 
 
 
 
 
 
 
 
 
 
 
Total Assets
12,998 
 
 
 
11,146 
 
 
 
10,874 
12,998 
11,146 
Total capital expenditures
 
 
 
 
 
 
 
 
488 
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)
 
 
 
 
 
 
 
 
45.00% 
47.00% 
48.00% 
Domestic [Member] |
Entertainment [Member]
 
 
 
 
 
 
 
 
 
 
 
Business segment information
 
 
 
 
 
 
 
 
 
 
 
Percentage of revenue, by revenue category (as a percent)
 
 
 
 
 
 
 
 
10.00% 
9.00% 
8.00% 
Domestic [Member] |
Appliances [Member]
 
 
 
 
 
 
 
 
 
 
 
Business segment information
 
 
 
 
 
 
 
 
 
 
 
Percentage of revenue, by revenue category (as a percent)
 
 
 
 
 
 
 
 
6.00% 
7.00% 
7.00% 
Domestic [Member] |
Services [Member]
 
 
 
 
 
 
 
 
 
 
 
Business segment information
 
 
 
 
 
 
 
 
 
 
 
Percentage of revenue, by revenue category (as a percent)
 
 
 
 
 
 
 
 
6.00% 
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
 
 
 
 
 
 
 
 
5,030 
4,284 
4,780 
Percentage of revenue, by revenue category (as a percent)
 
 
 
 
 
 
 
 
100.00% 
100.00% 
100.00% 
Operating income (loss)
 
 
 
 
 
 
 
 
(641)3
13 
(1)
Other income (expense)
 
 
 
 
 
 
 
 
 
 
 
Total Assets
2,258 4
 
 
 
2,867 4
 
 
 
5,913 4
2,258 4
2,867 4
Total capital expenditures
 
 
 
 
 
 
 
 
217 4
42 4
107 4
International [Member] |
Consumer Electronics [Member]
 
 
 
 
 
 
 
 
 
 
 
Business segment information
 
 
 
 
 
 
 
 
 
 
 
Percentage of revenue, by revenue category (as a percent)
 
 
 
 
 
 
 
 
32.00% 
30.00% 
29.00% 
International [Member] |
Computing and Mobile Phones [Member]
 
 
 
 
 
 
 
 
 
 
 
Business segment information
 
 
 
 
 
 
 
 
 
 
 
Percentage of revenue, by revenue category (as a percent)
 
 
 
 
 
 
 
 
47.00% 
49.00% 
50.00% 
International [Member] |
Entertainment [Member]
 
 
 
 
 
 
 
 
 
 
 
Business segment information
 
 
 
 
 
 
 
 
 
 
 
Percentage of revenue, by revenue category (as a percent)
 
 
 
 
 
 
 
 
10.00% 
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% 
 
Maximum percentage of revenue, by revenue category (as a percent)
 
 
 
 
1.00% 
 
 
 
1.00% 
 
1.00% 
Continuing Operations [Member]
 
 
 
 
 
 
 
 
 
 
 
Other income (expense)
 
 
 
 
 
 
 
 
 
 
 
Total depreciation
 
 
 
 
 
 
 
 
794 
656 
701 
Continuing Operations [Member] |
Domestic [Member]
 
 
 
 
 
 
 
 
 
 
 
Other income (expense)
 
 
 
 
 
 
 
 
 
 
 
Total depreciation
 
 
 
 
 
 
 
 
561 
575 
565 
Continuing Operations [Member] |
International [Member]
 
 
 
 
 
 
 
 
 
 
 
Other income (expense)
 
 
 
 
 
 
 
 
 
 
 
Total depreciation
 
 
 
 
 
 
 
 
$ 233 4
$ 81 4
$ 136 4
Segment and Geographic Information - Geographic Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 11 Months Ended 12 Months Ended
Jan. 31, 2015
Nov. 1, 2014
Aug. 2, 2014
May 3, 2014
Feb. 1, 2014
Nov. 2, 2013
Aug. 3, 2013
May 4, 2013
Feb. 2, 2013
Jan. 31, 2015
Feb. 1, 2014
Geographic Areas, Revenues from External Customers [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Total revenue
$ 14,209 
$ 9,032 
$ 8,459 
$ 8,639 
$ 14,025 
$ 8,924 
$ 8,734 
$ 8,928 
$ 38,252 
$ 40,339 
$ 40,611 
Geographic Areas, Long-Lived Assets [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Property, Plant and Equipment, Net
2,295 
 
 
 
2,598 
 
 
 
3,270 
2,295 
2,598 
United States [Member]
 
 
 
 
 
 
 
 
 
 
 
Geographic Areas, Revenues from External Customers [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Total revenue
 
 
 
 
 
 
 
 
33,222 
36,055 
35,831 
Geographic Areas, Long-Lived Assets [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Property, Plant and Equipment, Net
2,100 
 
 
 
2,190 
 
 
 
2,404 
2,100 
2,190 
Europe [Member]
 
 
 
 
 
 
 
 
 
 
 
Geographic Areas, Long-Lived Assets [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Property, Plant and Equipment, Net
0 
 
 
 
0 
 
 
 
352 
0 
0 
Canada [Member]
 
 
 
 
 
 
 
 
 
 
 
Geographic Areas, Revenues from External Customers [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Total revenue
 
 
 
 
 
 
 
 
4,818 
4,047 
4,522 
Geographic Areas, Long-Lived Assets [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Property, Plant and Equipment, Net
174 
 
 
 
244 
 
 
 
341 
174 
244 
China [Member]
 
 
 
 
 
 
 
 
 
 
 
Geographic Areas, Long-Lived Assets [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Property, Plant and Equipment, Net
0 
 
 
 
139 
 
 
 
142 
0 
139 
Other [Member]
 
 
 
 
 
 
 
 
 
 
 
Geographic Areas, Revenues from External Customers [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Total revenue
 
 
 
 
 
 
 
 
212 
237 
258 
Geographic Areas, Long-Lived Assets [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Property, Plant and Equipment, Net
$ 21 
 
 
 
$ 25 
 
 
 
$ 31 
$ 21 
$ 25 
Contingencies and Commitments - Commitments (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Accenture Service Contract [Member]
 
Commitments [Line Items]
 
Long-term Future Contractual Obligations, Low End of the Range
$ 17 
Long-term Future Contractual Obligations, High End of the Range
89 
Outstanding letters of credit and bankers' acceptances [Member]
 
Commitments [Line Items]
 
Unrecorded Unconditional Purchase Obligation, Purchases
$ 100 
Contingencies and Commitments Gain Contingencies (Details) (USD $)
In Millions, unless otherwise specified
2 Months Ended
Mar. 31, 2015
Gain Contingencies [Line Items]
 
Proceeds from Legal Settlements
$ 67 
Subsequent Events (Details) (USD $)
36 Months Ended
Jun. 30, 2011
Jun. 30, 2007
Feb. 3, 2018
Subsequent Event [Member]
Mar. 28, 2015
Subsequent Event [Member]
Mar. 3, 2015
Subsequent Event [Member]
Mar. 28, 2015
Minimum [Member]
Subsequent Event [Member]
Mar. 28, 2015
Maximum [Member]
Subsequent Event [Member]
Subsequent Event [Line Items]
 
 
 
 
 
 
 
Special Dividend per Share
 
 
 
 
$ 0.51 
 
 
Special Dividend Payment, Aggregate
 
 
 
 
$ 180,000,000 
 
 
Dividend Percentage Increase
 
 
 
 
21.00% 
 
 
Payments of Ordinary Dividends, Common Stock
 
 
 
 
0.23 
 
 
Stock Repurchase Program, Authorized Amount
5,000,000,000 
5,500,000,000 
 
 
1,000,000,000 
 
 
Stock Repurchase Program, Period in Force
 
 
3 years 
 
 
 
 
Number of Future Shop Stores to be Closed
 
 
 
66 
 
 
 
Number of Future Shop Stores Converting to Best Buy Stores
 
 
 
65 
 
 
 
Restructuring and Related Cost, Expected Cost
 
 
 
 
 
200,000,000 
280,000,000 
Expected Cash Payments for Restructuring
 
 
 
 
 
$ 140,000,000 
$ 180,000,000 
Supplementary Financial Information (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 11 Months Ended 12 Months Ended
Jan. 31, 2015
Nov. 1, 2014
Aug. 2, 2014
May 3, 2014
Feb. 1, 2014
Nov. 2, 2013
Aug. 3, 2013
May 4, 2013
Feb. 2, 2013
Jan. 31, 2015
Feb. 1, 2014
Quarterly Financial Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenue
$ 14,209 
$ 9,032 
$ 8,459 
$ 8,639 
$ 14,025 
$ 8,924 
$ 8,734 
$ 8,928 
$ 38,252 
$ 40,339 
$ 40,611 
Comparable store sales % change (as a percent)
2.00% 1
2.90% 1
(2.20%)1
(1.80%)1
(1.30%)1
0.50% 1
(0.60%)1
(1.80%)1
 
0.50% 1
(1.00%)1
Gross profit
3,026 
2,076 
1,978 
1,967 
2,828 
2,093 
2,373 
2,105 
9,023 
9,047 
9,399 
Operating income (loss)
810 2
205 2
225 2
210 2
452 3
100 3
405 3
187 3
90 
1,450 2
1,144 3
Net earnings (loss) from continuing operations
524 
116 
137 
469 
300 
50 
233 
112 
(259)
1,246 
695 
Gain (loss) from discontinued operations, net of tax
(4)
(9)
10 
(8)
(6)
4 
15 
(185)
(161)
(11)
(172)
Net earnings (loss) including noncontrolling interests
520 
107 
147 
461 
294 
54 
248 
(73)
(420)
1,235 
523 
Net earnings (loss) attributable to Best Buy Co., Inc.
519 
107 
146 
461 
293 
54 
266 
(81)
(441)
1,233 
532 
Diluted earnings (loss) per share
 
 
 
 
 
 
 
 
 
 
 
Continuing operations
$ 1.47 
$ 0.33 
$ 0.39 
$ 1.33 
$ 0.85 
$ 0.15 
$ 0.67 
$ 0.33 
$ (0.76)4
$ 3.53 
$ 2.00 
Discontinued operations
$ (0.01)5
$ (0.03)5
$ 0.03 5
$ (0.02)5
$ (0.02)5
$ 0.01 5
$ 0.10 5
$ (0.57)5
$ (0.54)
$ (0.04)5
$ (0.47)5
Diluted (in dollars per share)
$ 1.46 
$ 0.30 
$ 0.42 
$ 1.31 
$ 0.83 
$ 0.16 
$ 0.77 
$ (0.24)
$ (1.30)
$ 3.49 
$ 1.53 
Months until inclusion in comparable store sales
 
 
 
 
 
 
 
 
 
14 months 
 
Days Until Excluded From Comparable Sales
 
 
 
 
 
 
 
 
 
14 days 
 
Restructuring charges
(7)
5 
5 
2 
113 
27 
4 
5 
449 
23 
259 
Goodwill impairments
 
 
 
 
 
 
 
 
614 
0 
0 
Continuing Operations [Member]
 
 
 
 
 
 
 
 
 
 
 
Diluted earnings (loss) per share
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
$ 415 
$ 5 
$ 149 
[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 store 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.
Valuation and Qualifying Accounts (Details) (USD $)
In Millions, unless otherwise specified
11 Months Ended 12 Months Ended
Feb. 2, 2013
Jan. 31, 2015
Feb. 1, 2014
Feb. 26, 2011
Activity in valuation and qualifying accounts
 
 
 
 
Balance at End of Period
 
$ 59 
$ 104 
 
Allowance for Doubtful Accounts [Member]
 
 
 
 
Activity in valuation and qualifying accounts
 
 
 
 
Balance at Beginning of Period
92 
104 
 
72 
Charged to Expenses or Other Accounts
34 
1 
76 
 
Other
(14)1
(46)1
(64)1
 
Balance at End of Period
 
$ 59 
$ 104 
$ 72