BEST BUY CO INC, 10-K filed on 3/23/2016
Annual Report
Document and Entity Information (USD $)
In Billions, except Share data, unless otherwise specified
12 Months Ended
Jan. 30, 2016
Mar. 21, 2016
Aug. 1, 2015
Document and Entity Information [Abstract}
 
 
 
Entity Registrant Name
BEST BUY CO INC 
 
 
Current Fiscal Year End Date
--01-30 
 
 
Entity Voluntary Filers
No 
 
 
Document Fiscal Year Focus
2016 
 
 
Amendment Flag
false 
 
 
Entity Current Reporting Status
Yes 
 
 
Entity Well-known Seasoned Issuer
Yes 
 
 
Entity Common Stock, Shares Outstanding
 
323,347,681 
 
Entity Public Float
 
 
$ 6.6 
Document Fiscal Period Focus
FY 
 
 
Document Type
10-K 
 
 
Entity Central Index Key
0000764478 
 
 
Document Period End Date
Jan. 30, 2016 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
CONSOLIDATED BALANCE SHEETS (USD $)
Jan. 30, 2016
Jan. 31, 2015
CURRENT ASSETS
 
 
Cash and cash equivalents
$ 1,976,000,000 
$ 2,432,000,000 
Short-term investments
1,305,000,000 
1,456,000,000 
Receivables, net
1,162,000,000 
1,280,000,000 
Merchandise inventories
5,051,000,000 
5,174,000,000 
Other current assets
392,000,000 
449,000,000 
Current assets held for sale
0 
681,000,000 
Total current assets
9,886,000,000 
11,472,000,000 
Property and Equipment
 
 
Land and buildings
613,000,000 
611,000,000 
Leasehold improvements
2,220,000,000 
2,201,000,000 
Fixtures and equipment
5,002,000,000 
4,729,000,000 
Property under capital and financing leases
272,000,000 
119,000,000 
Property and equipment, gross
8,107,000,000 
7,660,000,000 
Less accumulated depreciation
5,761,000,000 
5,365,000,000 
Net property and equipment
2,346,000,000 
2,295,000,000 
Goodwill
425,000,000 
425,000,000 
Intangibles, Net
18,000,000 
57,000,000 
Other Assets
813,000,000 
829,000,000 
Non-current assets held for sale
31,000,000 
167,000,000 
Total Assets
13,519,000,000 1
15,245,000,000 1
CURRENT LIABILITIES
 
 
Accounts payable
4,450,000,000 
5,030,000,000 
Unredeemed gift card liabilities
409,000,000 
411,000,000 
Deferred revenue
357,000,000 
326,000,000 
Accrued compensation and related expenses
384,000,000 
372,000,000 
Accrued liabilities
802,000,000 
782,000,000 
Accrued income taxes
128,000,000 
230,000,000 
Current portion of long-term debt
395,000,000 
41,000,000 
Current liabilities held for sale
0 
585,000,000 
Total current liabilities
6,925,000,000 
7,777,000,000 
Long-Term Liabilities
877,000,000 
881,000,000 
Long-Term Debt
1,339,000,000 
1,572,000,000 
Contingencies and Commitments (Note 12)
   
   
Long-Term Liabilities held for sale
0 
15,000,000 
Best Buy Co., Inc. Shareholders’ Equity
 
 
Preferred stock, $1.00 par value: Authorized — 400,000 shares; Issued and outstanding — none
0 
0 
Common stock, $0.10 par value: Authorized — 1.0 billion shares; Issued and outstanding — 323,779,000 and 351,468,000 shares, respectively
32,000,000 
35,000,000 
Prepaid Share Repurchase
(55,000,000)
 
Additional paid-in capital
0 
437,000,000 
Retained earnings
4,130,000,000 
4,141,000,000 
Accumulated other comprehensive income
271,000,000 
382,000,000 
Total Best Buy Co., Inc. shareholders' equity
4,378,000,000 
4,995,000,000 
Noncontrolling interests
0 
5,000,000 
Total equity
4,378,000,000 
5,000,000,000 
Total Liabilities and Equity
$ 13,519,000,000 
$ 15,245,000,000 
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
323,779,000 
351,468,000 
Common stock, outstanding shares
323,779,000 
351,468,000 
CONSOLIDATED STATEMENTS OF EARNINGS (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Jan. 30, 2016
Jan. 31, 2015
Feb. 1, 2014
Revenue
$ 39,528 
$ 40,339 
$ 40,611 
Cost of goods sold
30,334 
31,292 
31,212 
Restructuring charges — cost of goods sold
3 
0 
0 
Gross profit
9,191 
9,047 
9,399 
Selling, general and administrative expenses
7,618 
7,592 
8,106 
Restructuring charges
198 
5 
149 
Operating income
1,375 1
1,450 2
1,144 
Other income (expense)
 
 
 
Gain on sale of investments
2 
13 
20 
Investment income and other
13 
14 
19 
Interest expense
(80)
(90)
(100)
Earnings from continuing operations before income tax expense
1,310 
1,387 
1,083 
Income tax expense
503 
141 
388 
Net earnings from continuing operations
807 
1,246 
695 
Gain (loss) from discontinued operations (Note 2), net of tax benefit (expense) of $(1), $0 and $31
90 
(11)
(172)
Net earnings including noncontrolling interests
897 
1,235 
523 
Net (earnings) loss from discontinued operations attributable to noncontrolling interests
0 
(2)
9 
Net earnings attributable to Best Buy Co., Inc. shareholders
$ 897 
$ 1,233 
$ 532 
Basic earnings (loss) per share attributable to Best Buy Co., Inc. shareholders
 
 
 
Continuing operations
$ 2.33 
$ 3.57 
$ 2.03 
Discontinued operations
$ 0.26 
$ (0.04)
$ (0.47)
Basic earnings per share
$ 2.59 
$ 3.53 
$ 1.56 
Diluted earnings (loss) per share attributable to Best Buy Co., Inc. shareholders
 
 
 
Continuing operations
$ 2.30 
$ 3.53 
$ 2.00 
Discontinued operations
$ 0.26 3
$ (0.04)3
$ (0.47)
Diluted earnings per share
$ 2.56 
$ 3.49 
$ 1.53 
Weighted-average common shares outstanding (in millions)
 
 
 
Basic
346.5 
349.5 
342.1 
Diluted
350.7 
353.6 
347.6 
CONSOLIDATED STATEMENTS OF EARNINGS (PARENTHETICAL) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 30, 2016
Jan. 31, 2015
Feb. 1, 2014
Tax effect of discontinued operations
$ 1 
$ 0 
$ (31)
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 30, 2016
Jan. 31, 2015
Feb. 1, 2014
OPERATING ACTIVITIES
 
 
 
Net earnings including noncontrolling interests
$ 897 
$ 1,235 
$ 523 
Adjustments to reconcile net earnings (loss) to total cash provided by operating activities
 
 
 
Depreciation
657 
656 
701 
Amortization of definite-lived intangible assets
0 
0 
15 
Restructuring charges
201 
23 
259 
(Gain) Loss on sale of business
(99)
(1)
143 
Stock-based compensation
104 
87 
90 
Deferred income taxes
49 
(297)
(28)
Other, net
38 
8 
62 
Changes in operating assets and liabilities:
 
 
 
Receivables
123 
(19)
7 
Merchandise inventories
86 
(141)
597 
Other assets
36 
29 
(70)
Accounts payable
(536)
434 
(986)
Other liabilities
(140)
(164)
(273)
Income taxes
(94)
85 
54 
Total cash provided by operating activities
1,322 
1,935 
1,094 
INVESTING ACTIVITIES
 
 
 
Additions to property and equipment, net of $92, $14 and $13 of non-cash capital expenditures
(649)1
(561)1
(547)1
Purchases of investments
(2,281)
(2,804)
(230)
Sales of investments
2,427 
1,580 
50 
Proceeds from sale of business, net of cash transferred
103 
39 
206 
Change in restricted assets
(47)
29 
5 
Other, net
28 
5 
(1)
Total cash used in investing activities
(419)
(1,712)
(517)
FINANCING ACTIVITIES
 
 
 
Repurchase of common stock
(1,000)
0 
0 
Payments for Repurchase of Other Equity
(55)
 
 
Issuance of common stock
47 
50 
171 
Dividends paid
(499)
(251)
(233)
Repayments of debt
(28)
(24)
(2,033)
Proceeds from issuance of debt
0 
0 
2,414 
Other, net
20 
2 
0 
Total cash provided by (used in) financing activities
(1,515)
(223)
319 
Effect of Exchange Rate Changes on Cash
(38)
(52)
(44)
Increase (Decrease) in Cash and Cash Equivalents
(650)
(52)
852 
Cash and Cash Equivalents at Beginning of Year
2,432 
2,678 
1,826 
Cash and Cash Equivalents Held-for-sale, at Beginning of Period
194 
0 
 
Cash and Cash Equivalents at End of Year
1,976 
2,626 
2,678 
Cash and Cash Equivalents Held-for-sale, at End of Period
0 
(194)
 
Cash and Cash Equivalents at End of Period, Excluding Held for Sale
1,976 
2,432 
2,678 
Supplemental Disclosure of Cash Flow Information
 
 
 
Income taxes paid
550 
355 
332 
Interest paid
$ 77 
$ 81 
$ 82 
CONSOLIDATED STATEMENTS OF CASH FLOWS (PARENTHETICAL) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 30, 2016
Jan. 31, 2015
Feb. 1, 2014
Statement of Cash Flows [Abstract]
 
 
 
Non-cash capital expenditures
$ 92 
$ 14 
$ 13 
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $)
In Millions, except Share data, unless otherwise specified
Total
Parent [Member]
Common Stock
Prepaid Share Repurchase
Additional Paid-In Capital
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
Noncontrolling Interest
Beginning balances at Feb. 02, 2013
$ 3,715 
$ 3,061 
$ 34 
 
$ 54 
$ 2,861 
$ 112 
$ 654 
Beginning balances (in shares) at Feb. 02, 2013
 
 
338,000,000 
 
 
 
 
 
Increase (decrease) in shareholders' equity
 
 
 
 
 
 
 
 
Adjustment for fiscal year-end change (Note 2)
 
 
0 
 
0 
 
 
 
Net earnings (loss)
523 
532 
 
 
 
532 
0 
(9)
Other comprehensive income (loss), net of tax:
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
(136)
(136)
0 
 
0 
0 
 
 
Foreign currency translation adjustments
(147)
(136)
 
 
 
 
(136)
(11)
Unrealized gain (loss) on available-for-sale investments
6 
7 
0 
 
0 
0 
7 
(1)
Reclassification of foreign currency translations adjustments into earnings due to sale of business
654 
508 
 
 
 
 
508 
146 
Reclassification of (gains) losses on available-for-sale investments into earnings
2 
1 
 
 
 
 
1 
1 
Sale of noncontrolling interest
(776)
 
 
 
 
 
 
(776)
Dividend distribution
(1)
 
0 
 
0 
0 
 
(1)
Tax loss from stock options canceled or exercised, restricted stock vesting and employee stock purchase plan
(22)
(22)
0 
 
(22)
0 
0 
 
Issuance of common stock under employee stock purchase plan
13 
13 
0 
 
13 
0 
0 
0 
Issuance of common stock under employee stock purchase plan (in shares)
 
 
1,000,000 
 
 
 
 
 
Stock-based compensation
97 
97 
0 
 
97 
0 
0 
0 
Restricted stock vested and stock options exercised
159 
159 
1 
 
158 
0 
0 
0 
Stock options exercised (in shares)
 
 
8,000,000 
 
 
 
 
 
Common stock dividends, $1.43 per share during the period ended January 30, 2016, $0.72 per share during the period ended January 31, 2015, $0.68 per share during the period ended February 1, 2014, respectively
(234)
(234)
0 
 
0 
(234)
0 
0 
Ending balances at Feb. 01, 2014
3,989 
3,986 
35 
 
300 
3,159 
492 
3 
Ending balances (in shares) at Feb. 01, 2014
 
 
347,000,000 
 
 
 
 
 
Increase (decrease) in shareholders' equity
 
 
 
 
 
 
 
 
Net earnings (loss)
1,235 
1,233 
0 
 
0 
1,233 
0 
2 
Other comprehensive income (loss), net of tax:
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
(103)
(103)
 
 
 
 
 
 
Foreign currency translation adjustments
(103)
(103)
0 
 
0 
0 
(103)
0 
Unrealized gain (loss) on available-for-sale investments
(3)
(3)
0 
 
0 
0 
(3)
0 
Reclassification of foreign currency translations adjustments into earnings due to sale of business
0 
 
 
 
 
 
 
 
Reclassification of (gains) losses on available-for-sale investments into earnings
(4)
(4)
0 
 
0 
0 
(4)
0 
Issuance of common stock under employee stock purchase plan
8 
8 
0 
 
8 
0 
0 
0 
Issuance of common stock under employee stock purchase plan (in shares)
 
 
0 
 
 
 
 
 
Stock-based compensation
87 
87 
0 
 
87 
0 
0 
0 
Restricted stock vested and stock options exercised
42 
42 
0 
 
42 
0 
0 
0 
Stock options exercised (in shares)
 
 
5,000,000 
 
 
 
 
 
Common stock dividends, $1.43 per share during the period ended January 30, 2016, $0.72 per share during the period ended January 31, 2015, $0.68 per share during the period ended February 1, 2014, respectively
(251)
(251)
0 
 
0 
(251)
0 
0 
Ending balances at Jan. 31, 2015
5,000 
4,995 
35 
 
437 
4,141 
382 
5 
Ending balances (in shares) at Jan. 31, 2015
 
 
352,000,000 
 
 
 
 
 
Increase (decrease) in shareholders' equity
 
 
 
 
 
 
 
 
Net earnings (loss)
897 
897 
0 
 
0 
897 
0 
0 
Other comprehensive income (loss), net of tax:
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
(44)
(44)
 
 
 
 
 
 
Foreign currency translation adjustments
(44)
(44)
0 
 
0 
0 
(44)
0 
Unrealized gain (loss) on available-for-sale investments
0 
 
 
 
 
 
 
 
Reclassification of foreign currency translations adjustments into earnings due to sale of business
(67)
(67)
0 
 
0 
0 
(67)
0 
Prepaid repurchase of common stock
(55)
(55)
 
(55)
 
 
 
 
Sale of noncontrolling interest
(5)
 
 
 
 
 
 
(5)
Tax loss from stock options canceled or exercised, restricted stock vesting and employee stock purchase plan
 
 
 
 
 
 
 
0 
Issuance of common stock under employee stock purchase plan
7 
7 
0 
 
7 
0 
0 
0 
Issuance of common stock under employee stock purchase plan (in shares)
 
 
0 
 
 
 
 
 
Stock-based compensation
104 
104 
0 
 
104 
0 
0 
0 
Restricted stock vested and stock options exercised
40 
40 
0 
 
40 
0 
0 
0 
Tax benefits from stock options exercised, restricted stock vesting and employee stock purchase plan
2 
2 
 
 
2 
 
 
 
Stock options exercised (in shares)
1,432,000 
 
5,000,000 
 
 
 
 
 
Common stock dividends, $1.43 per share during the period ended January 30, 2016, $0.72 per share during the period ended January 31, 2015, $0.68 per share during the period ended February 1, 2014, respectively
(501)
(501)
0 
 
3 
(504)
0 
0 
Repurchase of common stock
(1,000)
(1,000)
(3)
 
(593)
(404)
 
 
Repurchase of common stock (in shares)
 
 
(33,000,000)
 
 
 
 
 
Ending balances at Jan. 30, 2016
$ 4,378 
$ 4,378 
$ 32 
$ (55)
$ 0 
$ 4,130 
$ 271 
$ 0 
Ending balances (in shares) at Jan. 30, 2016
 
 
324,000,000 
 
 
 
 
 
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (PARENTHETICAL)
12 Months Ended
Jan. 30, 2016
Jan. 31, 2015
Feb. 1, 2014
Statement of Stockholders' Equity [Abstract]
 
 
 
Dividends declared per common share (in dollars per share)
$ 1.43 
$ 0.72 
$ 0.68 
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Statement (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 30, 2016
Jan. 31, 2015
Feb. 1, 2014
Net earnings including noncontrolling interests
$ 897 
$ 1,235 
$ 523 
Foreign currency translation adjustments
(44)
(103)
(147)
Unrealized gain (loss) on available-for-sale investments
0 
(3)
6 
Reclassification of foreign currency translations adjustments into earnings due to sale of business
(67)
0 
654 
Reclassification of (gains) losses on available-for-sale investments into earnings
0 
(4)
2 
Comprehensive income including noncontrolling interests
786 
1,125 
1,038 
Comprehensive income attributable to noncontrolling interests
0 
(2)
(126)
Comprehensive income attributable to Best Buy Co., Inc. shareholders
$ 786 
$ 1,123 
$ 912 
Summary of Significant 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 February 13, 2015, we sold Jiangsu Five Star Appliance Co., Limited ("Five Star"). The results of Best Buy Europe, mindSHIFT and Five Star are presented as discontinued operations for all periods. See Note 2, Discontinued Operations, for further information.

Description of Business

We are a leading provider of technology products, services and solutions. We offer these products and services to the customers who visit our stores, engage with Geek Squad agents or use our websites or mobile applications. We have operations in the U.S., Canada and Mexico. We have two reportable segments: Domestic and International. The Domestic segment is comprised of the operations in all states, districts and territories of the U.S., under various brand names including Best Buy, bestbuy.com, Best Buy Mobile, Best Buy Direct, Best Buy Express, Geek Squad, Magnolia Home Theater and Pacific Kitchen and Home. The International segment is comprised of all operations in Canada and Mexico under the brand names Best Buy, bestbuy.com.ca, bestbuy.com.mx, Best Buy Express, Best Buy Mobile and Geek Squad.

Basis of Presentation

The consolidated financial statements include the accounts of Best Buy Co., Inc. and its consolidated subsidiaries. All intercompany balances and transactions are eliminated upon consolidation.

In order to align our fiscal reporting periods and comply with statutory filing requirements, we consolidate the financial results of our Mexico operations, as well as our discontinued Europe and China operations, on a one-month lag. Our policy is to accelerate recording the effect of events occurring in the lag period that significantly affect our consolidated financial statements. No significant intervening event occurred in these operations that would have materially affected our financial condition, results of operations, liquidity or other factors had it been recorded during fiscal 2016, 2015 or 2014.

In preparing the accompanying consolidated financial statements, we evaluated the period from January 31, 2016, through the date the financial statements were issued for material subsequent events requiring recognition or disclosure. Other than as described in Note 5, Debt, and Note 7, Shareholders' Equity, no such events were identified for this period.

Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. ("GAAP") requires us to make estimates and assumptions. These estimates and assumptions affect the reported amounts in the consolidated financial statements, as well as the disclosure of contingent liabilities. Future results could be materially affected if actual results were to differ from these estimates and assumptions.

Fiscal Year

Our fiscal year ends on the Saturday nearest the end of January. Fiscal 2016, 2015, and 2014 each included 52 weeks.

New Accounting Pronouncements

In April 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-18, Reporting Discontinued Operations and Disclosures of Components of an Entity. The new guidance amends the definition of a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. We adopted the new guidance in the first quarter of fiscal 2016, and the adoption of the new guidance did not have a material impact on our consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, as a new Topic. Accounting Standards Codification (ASC) Topic 606. The new guidance provides a comprehensive framework for the analysis of revenue transactions and will apply to all of our revenue streams. Based on the current effective dates, the new guidance would first apply in the first quarter of our fiscal 2019. While we are still in the process of evaluating the effect of adoption on our financial statements, we do not currently expect a material impact on our results of operations, cash flows or financial position.

In February 2016, the FASB issued ASU 2016-02, Leases. The new guidance was issued to increase transparency and comparability among companies by requiring most leases be included on the balance sheet and by expanding disclosure requirements. Based on the current effective dates, the new guidance would first apply in the first quarter of our fiscal 2020. We are still in the process of evaluating the effect of adoption on our financial statements.

Changes in Accounting Principles

In the fourth quarter of fiscal 2016, we adopted the following ASUs:

•
The FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs in April 2015 and ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements in August 2015. The new guidance aligns the treatment of debt issuance costs, with the exception of debt issuance costs related to lines of credit, with the treatment of debt discounts, so that the debt issuance costs are presented on the balance sheet as a direct deduction from the carrying amount of that debt liability. In the fourth quarter of fiscal 2016, we retrospectively adopted ASU 2015-03 and ASU 2015-15. The adoption did not have a material impact on our results of operations, cash flows or financial position.

•
In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes. The new guidance is part of the simplification initiative and requires all deferred income tax liabilities and assets to be classified as non-current. In the fourth quarter of fiscal 2016, we retrospectively adopted ASU 2015-17. The adoption did not have a material impact on our results of operations, cash flows or financial position.

The following table reconciles the balance sheet line items impacted by the adoption of these two standards for fiscal 2015:
Balance Sheet
2015 Reported
 
ASU 2015-03 & 2015-15 Adjustments
 
ASU 2015-17 Adjustments
 
2015 Adjusted
Other current assets
$
703

 
$
(2
)
 
$
(252
)
 
$
449

Current assets held for sale
684

 
—

 
(3
)
 
681

Other assets
583

 
(6
)
 
252

 
829

   Total assets
$
15,256

 
$
(8
)
 
$
(3
)
 
$
15,245

 
 
 
 
 
 
 
 
Long-term debt
$
1,580

 
$
(8
)
 
$
—

 
$
1,572

Long-term liabilities held for sale
18

 
—

 
(3
)
 
15

   Total liabilities & equity
$
15,256

 
$
(8
)
 
$
(3
)
 
$
15,245



Cash and Cash Equivalents

Cash primarily consists of cash on hand and bank deposits. Cash equivalents consist of money market funds, treasury bills, commercial paper, corporate bonds and deposits with an original maturity of 3 months or less when purchased. The amounts of cash equivalents at January 30, 2016, and January 31, 2015, were $1,208 million and $1,660 million, respectively, and the weighted-average interest rates were 0.5% and 0.4%, respectively.

Receivables

Receivables consist principally of amounts due from mobile phone network operators for commissions earned; banks for customer credit card and debit card transactions; and vendors for various vendor funding programs.

We establish allowances for uncollectible receivables based on historical collection trends and write-off history. Our allowances for uncollectible receivables were $49 million and $59 million at January 30, 2016, and January 31, 2015, respectively.
Merchandise Inventories

Merchandise inventories are recorded at the lower of cost, using the average cost, or market. In-bound freight-related costs from our vendors are included as part of the net cost of merchandise inventories. Also included in the cost of inventory are certain vendor allowances that are not a reimbursement of specific, incremental and identifiable costs to promote a vendor's products. Other costs associated with acquiring, storing and transporting merchandise inventories to our retail stores are expensed as incurred and included in cost of goods sold.

Our inventory valuation reflects adjustments for anticipated physical inventory losses (e.g., theft) that have occurred since the last physical inventory. Physical inventory counts are taken on a regular basis to ensure that the inventory reported in our consolidated financial statements is properly stated.

Our inventory valuation also reflects markdowns for the excess of the cost over the amount we expect to realize from the ultimate sale or other disposal of the inventory. Markdowns establish a new cost basis for our inventory. Subsequent changes in facts or circumstances do not result in the reversal of previously recorded markdowns or an increase in the newly established cost basis.

Restricted Assets

Restricted cash totaled $185 million at January 30, 2016 and is included in other current assets. Restricted cash totaled $292 million at January 31, 2015, of which $184 million is related to continuing operations and included in other current assets and $108 million is included in current assets held for sale in our Consolidated Balance Sheet. Such balances are pledged as collateral or restricted to use for general liability insurance and workers' compensation insurance.

Property and Equipment

Property and equipment are recorded at cost. We compute depreciation using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are depreciated over the shorter of their estimated useful lives or the period from the date the assets are placed in service to the end of the lease term, which includes optional renewal periods if they are reasonably assured. Accelerated depreciation methods are generally used for income tax purposes.

When property is retired or otherwise disposed of, the cost and accumulated depreciation are removed from our Consolidated Balance Sheets and any resulting gain or loss is reflected in our Consolidated Statements of Earnings.

Repairs and maintenance costs are charged directly to expense as incurred. Major renewals or replacements that substantially extend the useful life of an asset are capitalized and depreciated.

Costs associated with the acquisition or development of software for internal use are capitalized and amortized over the expected useful life of the software, generally from three to seven years. A subsequent addition, modification or upgrade to internal-use software is capitalized to the extent that it enhances the software's functionality or extends its useful life. Capitalized software is included in fixtures and equipment. Software maintenance and training costs are expensed in the period incurred.

Property under capital and financing leases is comprised of buildings and equipment used in our operations. The related depreciation for capital and financing leases assets is included in depreciation expense. The carrying value of property under capital and financing leases was $165 million and $44 million at January 30, 2016, and January 31, 2015, respectively, net of accumulated depreciation of $107 million and $75 million, respectively.

Estimated useful lives by major asset category are as follows:
Asset
 
Life
(in years)
Buildings
 
35
Leasehold improvements
 
3-25
Fixtures and equipment
 
3-20
Property under capital and financing leases
 
2-20


Impairment of Long-Lived Assets and Costs Associated With Exit Activities

Long-lived assets are evaluated for impairment whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. Factors considered important that could result in an impairment review include, but are not limited to, significant under-performance relative to historical or planned operating results, significant changes in the manner of use or expected life of the assets, or significant changes in our business strategies. An impairment loss is recognized when the estimated undiscounted cash flows expected to result from the use of the asset plus net proceeds expected from the disposition of the asset (if any) are less than the carrying value of the asset net of other liabilities. When an impairment loss is recognized, the carrying amount of the asset is reduced to its estimated fair value using valuation techniques such as discounted cash flow analysis.

When reviewing long-lived assets for impairment, we group long-lived assets with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. For example, long-lived assets deployed at store locations are reviewed for impairment at the individual store level, which involves comparing the carrying value of all land, buildings, leasehold improvements, fixtures and equipment located at each store to the net cash flow projections for each store. In addition, we conduct separate impairment reviews at other levels as appropriate, for example, to evaluate potential impairment of assets shared by several areas of operations, such as information technology systems. Refer to Note 3, Fair Value Measurements, for further information associated with the long-lived assets impairments, including valuation techniques used, impairment charges incurred, and remaining carrying values.

The present value of costs associated with vacated properties, primarily future lease costs (net of expected sublease income), are charged to earnings when we cease using the property. We accelerate depreciation on property and equipment we expect to retire when a decision is made to abandon a property.

At January 30, 2016, and January 31, 2015, the obligation associated with vacant properties included in accrued liabilities in our Consolidated Balance Sheets was $44 million and $26 million, respectively, and the obligation associated with vacant properties included in long-term liabilities in our Consolidated Balance Sheets was $54 million and $43 million, respectively. The obligation associated with vacant properties at January 30, 2016, and January 31, 2015, included amounts associated with our restructuring activities as further described in Note 4, Restructuring Charges.

Leases

We conduct the majority of our retail and distribution operations from leased locations. The leases generally require payment of real estate taxes, insurance and common area maintenance, in addition to rent. The terms of our new lease agreements for large-format stores are generally less than 10 years, although we have existing leases with terms up to 20 years. Small-format stores generally have lease terms that are half the length of large-format stores. Most of the leases contain renewal options and escalation clauses, and certain store leases require contingent rents based on factors such as specified percentages of revenue or the consumer price index.

For leases that contain predetermined fixed escalations of the minimum rent, we recognize the related rent expense on a straight-line basis from the date we take possession of the property to the end of the initial lease term. We record any difference between the straight-line rent amounts and amounts payable under the leases as part of deferred rent, in accrued liabilities or long-term liabilities, as appropriate.

Cash or lease incentives received upon entering into certain store leases ("tenant allowances") are recognized on a straight-line basis as a reduction to rent from the date we take possession of the property through the end of the initial lease term. We record the unamortized portion of tenant allowances as a part of deferred rent, in accrued liabilities or long-term liabilities, as appropriate.

At January 30, 2016, and January 31, 2015, deferred rent included in accrued liabilities in our Consolidated Balance Sheets was $36 million and $31 million, respectively, and deferred rent included in long-term liabilities in our Consolidated Balance Sheets was $139 million and $195 million, respectively.

In addition, we have financing leases for agreements when we are deemed the owner of the leased buildings, typically due to significant involvement during the construction period, and do not qualify for sales recognition under the sale-leaseback accounting guidance. We record the cost of the building in property and equipment, with the related liability recorded in long-term debt. At January 30, 2016 and January 31, 2015, we had $178 million and $69 million, respectively, outstanding under financing lease obligations. The increase in financing lease obligations was primarily due to renewals on existing leases.
Assets acquired under capital and financing leases are depreciated over the shorter of the useful life of the asset or the lease term, including renewal periods, if reasonably assured.
Goodwill and Intangible Assets
Goodwill

Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. We test goodwill for impairment annually, as of the first day of the fiscal fourth quarter, or when indications of potential impairment exist. We monitor the existence of potential impairment indicators throughout the fiscal year. We test for goodwill impairment at the reporting unit level and our reporting units are the components of operating segments which constitute businesses for which discrete financial information is available and is regularly reviewed by segment management. No components were aggregated in arriving at our reporting units. Our only reporting unit with a goodwill balance at the beginning of fiscal 2016 was our Domestic segment.

Our detailed impairment testing involves comparing the fair value of each reporting unit to its carrying value, including goodwill. Fair value reflects the price a market participant would be willing to pay in a potential sale of the reporting unit and is based on discounted cash flows or relative market-based approaches. If the fair value exceeds carrying value, then it is concluded that no goodwill impairment has occurred. If the carrying value of the reporting unit exceeds its fair value, a second step is required to measure possible goodwill impairment loss. The second step includes hypothetically valuing the tangible and intangible assets and liabilities of the reporting unit as if the reporting unit had been acquired in a business combination. Then, the implied fair value of the reporting unit's goodwill is compared to the carrying value of that goodwill. If the carrying value of the reporting unit's goodwill exceeds the implied fair value of the goodwill, we recognize an impairment loss in an amount equal to the excess, not to exceed the carrying value. No goodwill impairment was recorded in fiscal 2015. In fiscal 2016, we determined that the fair value of the Best Buy Domestic reporting unit exceeded its carrying value, and as a result, no goodwill impairment was recorded in fiscal 2016.

Tradenames

We include our tradenames and customer relationships within intangibles, net in our Consolidated Balance Sheets. We have an indefinite-lived tradename related to Pacific Sales included within our Domestic segment. As of the end of fiscal 2016, we have no indefinite-lived tradenames within our International segment.

Our valuation of identifiable intangible assets acquired is based on information and assumptions available to us at the time of acquisition, using income and market approaches to determine fair value. We do not amortize our indefinite-lived tradenames, but test for impairment annually, or when indications of potential impairment exist. We utilize the relief from royalty method to determine the fair value of each of our indefinite-lived tradenames. If the carrying value exceeds the fair value, we recognize an impairment loss in an amount equal to the excess. As a part of the Canada brand restructuring, we fully impaired the indefinite-lived Future Shop tradename during fiscal 2016. Refer to Note 4, Restructuring Charges, for additional information. No other impairments were identified during fiscal 2016.

The changes in the carrying amount of goodwill and indefinite-lived tradenames by segment were as follows in fiscal 2016, 2015 and 2014 ($ in millions):
 
Goodwill
 
Indefinite-Lived Tradenames
 
Domestic
 
International
 
Total
 
Domestic
 
International
 
Total
Balances at February 2, 2013
$
528

 
$
—

 
$
528

 
$
19

 
$
112

 
$
131

Sale of business(1)
(103
)
 
—

 
(103
)
 
—

 
(22
)
 
(22
)
Impairments
—

 
—

 
—

 
—

 
(4
)
 
(4
)
Changes in foreign currency exchange rates
—

 
—

 
—

 
—

 
(4
)
 
(4
)
Balances at February 1, 2014
425

 
—

 
425

 
19

 
82

 
101

Sale of business(2)
—

 
—

 
—

 


 
(37
)
 
(37
)
Impairments
—

 
—

 
—

 
(1
)
 
—

 
(1
)
Changes in foreign currency exchange rates
—

 
—

 
—

 
—

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

 
—

 
425

 
18

 
39

 
57

Canada brand restructuring (3)
—

 
—

 
—

 
—

 
(40
)
 
(40
)
Changes in foreign currency exchange rates
—

 
—

 
—

 
—

 
1

 
1

Balances at January 30, 2016
$
425

 
$
—

 
$
425

 
$
18

 
$
—

 
$
18


(1)
Represents goodwill written off as a result of the sale of mindSHIFT in fiscal 2014 and indefinite-lived tradenames written off as a result of the sale of Best Buy Europe in fiscal 2014.
(2)
Primarily represents the Five Star indefinite-lived tradenames classified as held for sale at January 31, 2015.
(3)
Represents the Future Shop tradename impaired as a result of the Canada brand restructuring in the first quarter of fiscal 2016. See Note 4, Restructuring Charges, for further discussion.
The following table provides the gross carrying amount of goodwill and cumulative goodwill impairment losses ($ in millions):
 
January 30, 2016
 
January 31, 2015
 
Gross Carrying
Amount
 
Cumulative
Impairment
 
Gross Carrying
Amount(1)
 
Cumulative
Impairment(1)
Goodwill
$
1,100

 
$
(675
)
 
$
1,100

 
$
(675
)

(1)
Excludes the gross carrying amount and cumulative impairment related to Five Star, which was held for sale at the end of fiscal 2015. The sale of Five Star was completed on February 13, 2015.
Insurance
 
We are self-insured for certain losses related to health, workers' compensation and general liability claims; however, we obtain third-party insurance coverage to limit our exposure to these claims. A portion of these self-insured losses are managed through a wholly-owned insurance captive. We estimate our self-insured liabilities using a number of factors, including historical claims experience, an estimate of incurred but not reported claims, demographic and severity factors, and valuations provided by independent third-party actuaries. Our self-insured liabilities included in the Consolidated Balance Sheets were as follows ($ in millions):
 
January 30, 2016
 
January 31, 2015
Accrued liabilities
$
62

 
$
60

Long-term liabilities
54

 
53

Total
$
116

 
$
113



Income Taxes

We account for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss and tax credit carry-forwards. We record a valuation allowance to reduce the carrying amounts of deferred tax assets if it is more likely than not that such assets will not be realized.

In determining our provision for income taxes, we use an annual effective income tax rate based on annual income, permanent differences between book and tax income, and statutory income tax rates. The effective income tax rate also reflects our assessment of the ultimate outcome of tax audits. We adjust our annual effective income tax rate as additional information on outcomes or events becomes available. Discrete events, such as audit settlements or changes in tax laws, are recognized in the period in which they occur.

Our income tax returns are periodically audited by U.S. federal, state and local and foreign tax authorities. At any one time, multiple tax years are subject to audit by the various tax authorities. In evaluating the tax benefits associated with our various tax filing positions, we record a tax benefit for uncertain tax positions using the highest cumulative tax benefit that is more likely than not to be realized. A number of years may elapse before a particular matter, for which we have established a liability, is audited and effectively settled. We adjust our liability for unrecognized tax benefits in the period in which we determine the issue is effectively settled with the tax authorities, the statute of limitations expires for the relevant taxing authority to examine the tax position or when more information becomes available. We include our liability for unrecognized tax benefits, including accrued penalties and interest, in accrued income taxes and long-term liabilities on our Consolidated Balance Sheets and in income tax expense in our Consolidated Statements of Earnings.

Accrued Liabilities

The major components of accrued liabilities at January 30, 2016, and January 31, 2015, were state and local tax liabilities, rent-related liabilities including accrued real estate taxes, loyalty program liabilities and self-insurance reserves.

Long-Term Liabilities

The major components of long-term liabilities at January 30, 2016, and January 31, 2015, were unrecognized tax benefits, rent-related liabilities, deferred compensation plan liabilities, self-insurance reserves and deferred revenue.

Foreign Currency

Foreign currency denominated assets and liabilities are translated into U.S. dollars using the exchange rates in effect at our consolidated balance sheet date. For operations reported on a one-month lag, we use the exchange rates in effect one month prior to our consolidated balance sheet date. Results of operations and cash flows are translated using the average exchange rates throughout the period. The effect of exchange rate fluctuations on the translation of assets and liabilities is included as a component of shareholders' equity in accumulated other comprehensive income. Gains and losses from foreign currency transactions, which are included in SG&A, have not been significant in any of the periods presented.

Revenue Recognition

We recognize revenue when the sales price is fixed or determinable, collection is reasonably assured and the customer takes possession of the merchandise, or in the case of services, the service has been provided. Revenue excludes sales taxes collected. Revenue from merchandise sales and services is reported net of sales returns, which includes an estimate of future returns based on historical return rates, with a corresponding reduction to cost of sales. Our sales returns reserve, which represents the estimated gross margin impact of returns, was $25 million and $25 million at January 30, 2016, and January 31, 2015, respectively.

For revenue transactions that involve multiple deliverables, we defer the revenue associated with any undelivered elements. The amount of revenue deferred in connection with the undelivered elements is determined using the relative fair value of each element, which is generally based on each element's relative retail price.
Our deferred revenues primarily relate to merchandise not yet delivered to customers, services not yet completed and technical support contracts not yet completed. At January 30, 2016, short-term deferred revenue was $357 million. At January 31, 2015, short-term deferred revenue was $376 million, of which $50 million is included in current liabilities held for sale in relation to the sale of Five Star. At January 30, 2016, and January 31, 2015, deferred revenue included within long-term liabilities in our Consolidated Balance Sheets was $45 million and $49 million, respectively.

Merchandise revenue
Revenue is recognized for store sales when the customer receives and pays for merchandise. In the case of items paid for in store but subsequently delivered to the customer, revenue is recognized once delivery has been completed.
For transactions initiated online, customers choose whether to collect merchandise from one of our stores (“in-store pick up”) or have it delivered to them (typically using third party parcel delivery companies). For in-store pick up, we recognize revenue once the customer has taken possession of merchandise. For items delivered directly to the customer, we recognize revenue when delivery has been completed. Any fees charged to customers for delivery are also recognized when delivery has been completed.
Services
Revenue related to consultation, design, installation, set-up, repair and educational classes are recognized once the service is complete. We sell various protection plans with extended warranty coverage for merchandise and technical support to assist customers in using their devices. Such plans have terms typically ranging from one month to five years. For extended warranty protection, third party insurers assume all risk associated with the coverage and are deemed to be the legal obligor. We record the net commissions we receive (the amount charged to the customer less the amount remitted to the insurer) as revenue when the corresponding merchandise revenue is recognized.
For technical support contracts, we assume responsibility for fulfilling the support to customers and we recognize the associated revenue either on a straight-line basis over the life of the contracts, or, if sufficient history is available, on a consumption basis.
Credit card revenue
We offer promotional financing and credit cards issued by third-party banks that manage and directly extend credit to our customers. The banks are the sole owners of the accounts receivable generated under the program and accordingly, we do not hold any consumer receivables related to these programs. We are eligible to receive a profit share from our banking partners based on the performance of the programs. We record such profit share as revenue once the portfolio period to which it relates is complete and we have sufficient evidence to estimate the amount.
Gift cards
We sell gift cards to our customers in our retail stores, online and through select third parties. We do not charge administrative fees on unused gift cards and our gift cards do not have an expiration date. We recognize revenue from gift cards when: (i) the gift card is redeemed by the customer, or (ii) the likelihood of the gift card being redeemed by the customer is remote ("gift card breakage"), and we determine that we do not have a legal obligation to remit the value of unredeemed gift cards to the relevant jurisdictions. We determine our gift card breakage rate based upon historical redemption patterns. Based on our historical information, the likelihood of a gift card remaining unredeemed can be determined 24 months after the gift card is issued. Gift card breakage income is included in revenue in our Consolidated Statements of Earnings. Gift card breakage income was $65 million, $19 million and $53 million in fiscal 2016, 2015 and 2014, respectively.

Sales Incentives
We frequently offer sales incentives that entitle our customers to receive a gift card at time of purchase or a reduction in the price of a product or service either at the point of sale or by submitting a claim for a refund (for example coupons, rebates, etc.). For sales incentives issued to the customer in conjunction with a sale of merchandise or services, the reduction in revenue is recognized at the time of sale, based on the expected retail value of the incentive expected to be redeemed.
Customer Loyalty Programs
We have customer loyalty programs which allow members to earn points for each qualifying purchase. Points earned enable members to receive a certificate that may be redeemed on future purchases at our Best Buy branded stores. Depending on the customer's membership level within our loyalty program, certificates expirations typically range from 2 to 12 months from the date of issuance. The retail value of points earned by our loyalty program members is included in accrued liabilities and recorded as a reduction of revenue at the time the points are earned, based on the percentage of points that are projected to be redeemed.
We recognize revenue when: (i) a certificate is redeemed by the customer; (ii) a certificate expires, or (iii) the likelihood of a certificate being redeemed by a customer is remote ("certificate breakage"). We determine our certificate breakage rate 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; and
 
 
—
 
Cash discounts on payments to merchandise vendors;
•
 
Cost of services provided including:
 
 
—
 
Payroll and benefits costs for services employees; and
 
 
—
 
Cost of replacement parts and related freight expenses;
•
 
Physical inventory losses;
•
 
Markdowns;
•
 
Customer shipping and handling expenses;
•
 
Costs associated with operating our distribution network, including payroll and benefit costs, occupancy costs and depreciation; and
•
 
Freight expenses associated with moving merchandise inventories from our distribution centers to our retail stores.
SG&A
•
 
Payroll and benefit costs for retail and corporate employees;
•
 
Occupancy and maintenance costs of retail, services and corporate facilities;
•
 
Depreciation and amortization related to retail, services and corporate assets;
•
 
Advertising costs;
•
 
Vendor allowances that are a reimbursement of specific, incremental and identifiable costs to promote a vendor's products;
•
 
Tender costs, including bank charges and costs associated with credit and debit card interchange fees;
•
 
Charitable contributions;
•
 
Outside and outsourced service fees;
•
 
Long-lived asset impairment charges; and
•
 
Other administrative costs, such as supplies, travel and lodging.


Vendor Allowances
 
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 $742 million, $711 million and $757 million in fiscal 2016, 2015 and 2014, 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

During the fourth quarter of fiscal 2014, we completed the sale of mindSHIFT to Ricoh Americas Corporation, at which time we recorded an $18 million pre-tax loss.

International Segment

Five Star - During the fourth quarter of fiscal 2015, we entered into a definitive agreement to sell our Five Star business to Yingtan City Xiangyuan Investment Limited Partnership and Zhejiang Jiayuan Real Estate Group Co. On February 13, 2015, we completed the sale of Five Star and recognized a gain on sale of $99 million. Following the sale of Five Star, we continue to hold one retail property in Shanghai, China, which remains held for sale at January 30, 2016, as we continue to actively market the property. The assets of this property are classified as held for sale in the Consolidated Balance Sheets and were $31 million as of January 30, 2016. The presentation of discontinued operations has been retrospectively applied to all prior periods presented.

The composition of assets and liabilities disposed of as a result of the sale of Five Star was as follows ($ in millions):
 
February 13, 2015
Cash and cash equivalents
$
125

Receivables
113

Merchandise inventories
252

All other assets
461

Total assets
$
951

 
 
Accounts payable
$
478

All other liabilities
128

Total liabilities
$
606



Best Buy Europe – During the second quarter of fiscal 2014, we completed the sale of our 50% ownership interest in Best Buy Europe to CPW in return for the following consideration upon closing: net cash of £341 million ($526 million); £80 million ($123 million) of ordinary shares of CPW; £25 million ($39 million), plus 2.5% interest, to be paid by CPW on June 26, 2014; and £25 million ($39 million), plus 2.5% interest, to be paid by CPW on June 26, 2015. We subsequently sold the ordinary shares of CPW for $123 million on July 3, 2013. We received the first such deferred cash payment on June 26, 2014 and the second deferred cash payment on June 26, 2015.

In conjunction with our agreement to sell our 50% ownership interest in Best Buy Europe, we entered into a deal-contingent foreign currency forward contract to hedge £455 million of the total £471 million of net proceeds. The contract was settled in cash following the completion of the sale on June 26, 2013, and we recognized a $2 million loss in gain (loss) from discontinued operations on our Consolidated Statements of Earnings in fiscal 2014.

The aggregate financial results of all discontinued operations for fiscal 2016, 2015 and 2014 were as follows ($ in millions):
 
2016
 
2015
 
2014
Revenue
$
217

 
$
1,564

 
$
4,615

Restructuring charges(1)
1

 
18

 
110

Loss from discontinued operations before income tax benefit (expense)(2)
(8
)
 
(12
)
 
(235
)
Income tax benefit (expense)(3)
(1
)
 
—

 
31

Gain on sale of discontinued operations(4)
99

 
1

 
32

Net earnings (loss) from discontinued operations including noncontrolling interests
90

 
(11
)
 
(172
)
Net (earnings) loss from discontinued operations attributable to noncontrolling interests
—

 
(2
)
 
9

Net earnings (loss) from discontinued operations attributable to Best Buy Co., Inc. shareholders
$
90

 
$
(13
)
 
$
(163
)
(1)
See Note 4, Restructuring Charges, for further discussion of the restructuring charges associated with discontinued operations.
(2)
Includes a $175 million impairment to write down the book value of our investment in Best Buy Europe to fair value in fiscal 2014.
(3)
Income tax benefit for fiscal 2014 includes a $27 million benefit related to a tax allocation between continuing and discontinued operations and a $15 million benefit related to the impairment of our investment in Best Buy Europe. The fiscal 2014 effective tax rate for discontinued operations differs from the statutory tax rate primarily due to the previously mentioned tax allocation, sale of mindSHIFT, restructuring charges and the impairment of our investment in Best Buy Europe. The sale of mindSHIFT, restructuring charges and impairment generally included no related tax benefit. The deferred tax assets related to the sale of mindSHIFT and restructuring charges generally resulted in an increase in the valuation allowance in an equal amount, of which the investment impairment is not tax deductible.
(4)
Gain in fiscal 2014 is primarily comprised of the following: $28 million gain (with no tax impact) from sale of Best Buy Europe fixed-line business in Switzerland in the first quarter; $24 million gain (with no tax impact) from the sale of Best Buy Europe in the second quarter; and loss of $18 million from sale of mindSHIFT in the fourth quarter. Gain in fiscal 2016 of $99 million is from sale of Five Star in the first quarter.
Fair Value Measurements
Fair Value Measurements
Fair Value Measurements

Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. To measure fair value, we use a three-tier valuation hierarchy based upon observable and non-observable inputs:

Level 1 — Unadjusted quoted prices that are available in active markets for identical assets or liabilities at the measurement date.

Level 2 — Significant other observable inputs available at the measurement date, other than quoted prices included in Level 1, either directly or indirectly, including:

•
Quoted prices for similar assets or liabilities in active markets;
•
Quoted prices for identical or similar assets in non-active markets;
•
Inputs other than quoted prices that are observable for the asset or liability; and
•
Inputs that are derived principally from or corroborated by other observable market data.

Level 3 — Significant unobservable inputs that cannot be corroborated by observable market data and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management's estimates of market participant assumptions.

Assets and Liabilities that are Measured at Fair Value on a Recurring Basis

The fair value hierarchy requires the use of observable market data when available. In instances in which the inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability.

The following table sets forth by level within the fair value hierarchy, our financial assets and liabilities that were accounted for at fair value on a recurring basis at January 30, 2016, and January 31, 2015, according to the valuation techniques we used to determine their fair values ($ in millions):
 
 
 
Fair Value at
 
Fair Value Hierarchy
 
January 30, 2016
 
January 31, 2015
Assets
 
 
 
 
 
Cash and cash equivalents
 
 
 
 
 
Money market funds
Level 1
 
$
51

 
$
265

Corporate bonds
Level 2
 
—

 
13

Commercial paper
Level 2
 
265

 
165

Time deposits
Level 2
 
306

 
100

Short-term investments
 
 
 
 
 
Corporate bonds
Level 2
 
193

 
276

Commercial paper
Level 2
 
122

 
306

Time deposits
Level 2
 
990

 
874

Other current assets
 
 
 
 
 
Foreign currency derivative instruments
Level 2
 
18

 
30

Time deposits
Level 2
 
79

 
83

Other assets
 
 
 
 
 
Interest rate swap derivative instruments
Level 2
 
25

 
1

Auction rate securities
Level 3
 
2

 
2

Marketable securities that fund deferred compensation
Level 1
 
96

 
97

Assets held for sale
 
 
 
 
 
Cash and cash equivalents
 
 
 
 
 
Money market funds
Level 1
 
—

 
16

Time deposits
Level 2
 
—

 
124

Liabilities
 
 
 
 
 
Accrued Liabilities
 
 
 
 
 
Foreign currency derivative instruments
Level 2
 
1

 
—

 
There were no transfers between levels during fiscal 2016 and 2015. In addition, there were no changes in the beginning and ending balances of items measured at fair value on a recurring basis in the table above that used significant unobservable inputs (Level 3) for fiscal 2016 and 2015.

The following methods and assumptions were used to estimate the fair value of each class of financial instrument:
 
Money Market Funds. Our money market fund investments were measured at fair value as they trade in an active market using quoted market prices and, therefore, are classified as Level 1.

Corporate Bonds. Our corporate bond investments were measured at fair value using quoted market prices. They were classified as Level 2 as they trade in a non-active market for which bond prices are readily available.
 
Commercial Paper. Our investments in commercial paper were measured using inputs based upon quoted prices for similar instruments in active markets and, therefore, were classified as Level 2.

Time Deposits. Our time deposits are balances held with banking institutions that cannot be withdrawn for specified terms without a penalty. Time deposits are held at face value plus accrued interest, which approximates fair value, and are classified as Level 2.
 
Foreign Currency Derivative Instruments. Comprised primarily of foreign currency forward contracts and foreign currency swap contracts, our foreign currency derivative instruments were measured at fair value using readily observable market inputs, such as quotations on forward foreign exchange points and foreign interest rates. Our foreign currency derivative instruments were classified as Level 2 as these instruments are custom, over-the-counter contracts with various bank counterparties that are not traded in an active market.

Interest Rate Swap Derivative Instruments. Our interest rate swap contracts were measured at fair value using readily observable inputs, such as the LIBOR interest rate. Our interest rate swap derivative instruments were classified as Level 2 as these instruments are custom, over-the-counter contracts with various bank counterparties that are not traded in an active market.
 
Auction Rate Securities. Our investments in auction rate securities ("ARS") were classified as Level 3 as quoted prices were unavailable. Due to limited market information, we utilized a DCF model to derive an estimate of fair value. The assumptions we used in preparing the DCF model include estimates with respect to the amount and timing of future interest and principal payments, forward projections of the interest rate benchmarks, the probability of full repayment of the principal considering the credit quality and guarantees in place, and the rate of return required by investors to own such securities given the current liquidity risk associated with ARS.
 
Marketable Securities that Fund Deferred Compensation. The assets that fund our deferred compensation consist of investments in mutual funds. These investments were classified as Level 1 as the shares of these mutual funds trade with sufficient frequency and volume to enable us to obtain pricing information on an ongoing basis.
 
Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis
 
Assets and liabilities that are measured at fair value on a nonrecurring basis relate primarily to our tangible fixed assets, goodwill and other intangible assets, which are remeasured when the derived fair value is below carrying value on our Consolidated Balance Sheets. For these assets, we do not periodically adjust carrying value to fair value except in the event of impairment. When we determine that impairment has occurred, the carrying value of the asset is reduced to fair value and the difference is recorded within operating income in our Consolidated Statements of Earnings.
 
The following table summarizes the fair value remeasurements for non-restructuring property and equipment impairments and restructuring activities recorded in fiscal 2016 and 2015 ($ in millions):
 
2016
 
2015
 
Impairments
 
Remaining Net
Carrying Value(1)
 
Impairments
 
Remaining Net
Carrying Value (1)
Continuing operations
 
 
 
 
 
 
 
Property and equipment (non-restructuring)
$
61

 
$
15

 
$
42

 
$
19

Restructuring activities(2)
 
 
 
 
 
 
 
Property and equipment
30

 
—

 
1

 
—

Tradename
40

 
—

 
—

 
—

Total
$
131

 
$
15

 
$
43

 
$
19

Discontinued operations(3)
 
 
 
 
 
 
 
Property and equipment
$
—

 
$
—

 
$
1

 
$
—

Total
$
—

 
$
—

 
$
1

 
$
—

(1)
Remaining net carrying value approximates fair value.
(2)
See Note 4, Restructuring Charges, for additional information.
(3)
Property and equipment and tradename impairments associated with discontinued operations are recorded within loss from discontinued operations in our Consolidated Statements of Earnings.

All of the fair value remeasurements included in the table above were based on significant unobservable inputs (Level 3). Fixed asset fair values were derived using a DCF model to estimate the present value of net cash flows that the asset or asset group is expected to generate. The key inputs to the DCF model generally included our forecasts of net cash generated from revenue, expenses and other significant cash outflows, such as capital expenditures, as well as an appropriate discount rate. In the case of assets for which the impairment was the result of restructuring activities, no future cash flows have been assumed as the assets will cease to be used and expected sale values are nominal.

Fair Value of Financial Instruments

Our financial instruments, other than those presented in the disclosures above, include cash, receivables, short-term investments, other investments, accounts payable, other payables and long-term debt. The fair values of cash, receivables, short-term investments, accounts payable and other payables approximated carrying values because of the short-term nature of these instruments. If these instruments were measured at fair value in the financial statements, they would be classified as Level 1 in the fair value hierarchy. Short-term investments other than those disclosed in the tables above represent time deposits. Fair values for other investments held at cost are not readily available, but we estimate that the carrying values for these investments approximate fair value. See Note 5, Debt, for information about the fair value of our long-term debt.
Restructuring Charges
Restructuring Charges
Restructuring Charges
 
Summary
 
Restructuring charges incurred in fiscal 2016, 2015, and 2014 were as follows ($ in millions):
 
2016
 
2015
 
2014
Continuing operations
 
 
 
 
 
Canadian brand consolidation
$
200

 
$
—

 
$
—

Renew Blue
(2
)
 
11

 
155

Other restructuring activities(1)
3

 
(6
)
 
(6
)
Total continuing operations
201

 
5

 
149

Discontinued operations
 
 
 
 
 
Renew Blue
—

 
18

 
10

Other restructuring activities(2)
—

 
—

 
100

Total
$
201

 
$
23

 
$
259


 
(1) Represents activity related to our remaining vacant space liability for U.S. large-format store closures in fiscal 2013. We may continue to incur immaterial adjustments to the liability for changes in sublease assumptions or potential lease buyouts. In addition, lease payments for vacated stores will continue until leases expire or are terminated. The remaining vacant space liability was $18 million at January 30, 2016.

(2) Activity primarily relates to our fiscal 2013 Best Buy Europe restructuring program, which is included in discontinued operations due to the sale of our 50% ownership interest in Best Buy Europe in fiscal 2014. Restructuring charges primarily consist of property and equipment impairments and employee termination benefits.

Canadian Brand Consolidation

In the first quarter of fiscal 2016, we consolidated the Future Shop and Best Buy stores and websites in Canada under the Best Buy brand. This resulted in the permanent closure of 66 Future Shop stores and the conversion of the remaining 65 Future Shop stores to the Best Buy brand. In fiscal 2016, we incurred $200 million of restructuring charges related to implementing these changes, which primarily consisted of lease exit costs, a tradename impairment, property and equipment impairments, employee termination benefits and inventory write-downs. The inventory write-downs related to our Canadian brand consolidation are presented in restructuring charges – cost of goods sold in our Consolidated Statements of Earnings, and the remainder of the restructuring charges are presented in restructuring charges in our Consolidated Statements of Earnings.

The composition of total restructuring charges we incurred for the Canadian brand consolidation in fiscal 2016 was as follows ($ in millions):
 
International
Continuing operations
 
Inventory write-downs
$
3

Property and equipment impairments
30

Tradename impairment
40

Termination benefits
25

Facility closure and other costs
102

Total continuing operations
$
200



The following tables summarize our restructuring accrual activity during the fiscal 2016, related to termination benefits and facility closure and other costs associated with Canadian brand consolidation ($ in millions):
 
Termination
Benefits
 
Facility
Closure and
Other Costs
 
Total
Balances at January 31, 2015
$
—

 
$
—

 
$
—

Charges
28

 
113

 
141

Cash payments
(24
)
 
(47
)
 
(71
)
Adjustments(1)
(2
)
 
5

 
3

Changes in foreign currency exchange rates
—

 
(7
)
 
(7
)
Balances at January 30, 2016
$
2

 
$
64

 
$
66


(1) The adjustments related to termination benefits relate to higher-than-expected employee retention. Adjustments to facility closure and other costs represent changes in sublease assumptions.

Renew Blue
 
In the fourth quarter of fiscal 2013, we launched the Renew Blue strategy, which included initiatives intended to improve operating performance and reduce costs. These initiatives included focusing on core business activities, reducing headcount, updating our store operating model and optimizing our real estate portfolio. These cost reduction initiatives represented one of the key Renew Blue priorities. We incurred $2 million of favorable adjustments related to Renew Blue initiatives in fiscal 2016. Of the total adjustments, $1 million related to our Domestic segment, which consisted primarily of changes in retention assumptions used to estimate employee termination benefits. The remaining $1 million adjustment related to our International segment and consisted of facility closure and other costs. We expect to continue to implement cost reduction initiatives throughout fiscal 2017 as we further analyze our operations and strategies.
 
We incurred $29 million of charges related to Renew Blue initiatives during fiscal 2015. Of the total charges, $10 million related to our Domestic segment, which consisted primarily of employee termination benefits. The remaining $19 million of charges related to our International segment and consisted of employee termination benefits, property and equipment impairments and facility closure and other costs.

For continuing operations, the inventory write-downs related to our Renew Blue restructuring activities are presented in restructuring charges – cost of goods sold in our Consolidated Statements of Earnings and the remainder of the restructuring charges are presented in restructuring charges. The restructuring charges from discontinued operations related to this plan are presented in discontinued operations.

The composition of the restructuring charges we incurred for this program in fiscal 2016, 2015 and 2014, as well as the cumulative amount incurred through the end of fiscal 2016, was as follows ($ in millions):
 
Domestic
 
International
 
Total
 
2016
 
2015
 
2014
 
Cumulative Amount
 
2016
 
2015
 
2014
 
Cumulative Amount
 
2016
 
2015
 
2014
 
Cumulative Amount
Continuing operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Inventory write-downs
$
—

 
$
—

 
$
—

 
$
1

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
1

Property and equipment impairments
—

 
—

 
7

 
14

 
—

 
1

 
1

 
25

 
—

 
1

 
8

 
39

Termination benefits
(2
)
 
9

 
106

 
159

 
—

 
5

 
24

 
38

 
(2
)
 
14

 
130

 
197

Investment impairments
—

 
—

 
16

 
43

 
—

 
—

 
—

 
—

 
—

 
—

 
16

 
43

Facility closure and other costs
1

 
1

 
—

 
5

 
(1
)
 
(5
)
 
1

 
50

 
—

 
(4
)
 
1

 
55

Total continuing operations
(1
)
 
10

 
129

 
222

 
(1
)
 
1

 
26

 
113

 
(2
)
 
11

 
155

 
335

Discontinued Operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property and equipment impairments
—

 
—

 
—

 
—

 
—

 
—

 
1

 
1

 
—

 
—

 
1

 
1

Termination benefits
—

 
—

 
—

 
—

 
—

 
12

 
4

 
16

 
—

 
12

 
4

 
16

Facility closure and other costs
—

 
—

 
—

 
—

 
—

 
6

 
5

 
11

 
—

 
6

 
5

 
11

Total discontinued operations
—

 
—

 
—

 
—

 
—

 
18

 
10

 
28

 
—

 
18

 
10

 
28

Total
$
(1
)
 
$
10

 
$
129

 
$
222

 
$
(1
)
 
$
19

 
$
36

 
$
141

 
$
(2
)
 
$
29

 
$
165

 
$
363

The following table summarizes our restructuring accrual activity during fiscal 2016 and 2015 related to termination benefits and facility closure and other costs associated with this program ($ in millions):
 
Termination Benefits
 
Facility
Closure and
Other Costs
 
Total
Balance at February 1, 2014
$
111

 
$
51

 
$
162

Charges
47

 
16

 
63

Cash payments
(121
)
 
(22
)
 
(143
)
Adjustments(1)
(21
)
 
(14
)
 
(35
)
Changes in foreign currency exchange rates
—

 
(8
)
 
(8
)
Balance at January 31, 2015
16

 
23

 
39

Charges
—

 
—

 
—

Cash payments
(7
)
 
(9
)
 
(16
)
Adjustments(1)
(7
)
 
(5
)
 
(12
)
Changes in foreign currency exchange rates
—

 
1

 
1

Balance at January 30, 2016
$
2

 
$
10

 
$
12


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

U.S. Revolving Credit Facilities

On June 30, 2014, we entered into a $1.25 billion five-year senior unsecured revolving credit facility agreement (the "Five-Year Facility Agreement") with a syndicate of banks. The Five-Year Facility Agreement replaced the previous $1.5 billion senior unsecured revolving credit facility with a syndicate of banks, which was originally scheduled to expire in October 2016, but was terminated on June 30, 2014.

The interest rate under the Five-Year Facility Agreement is variable and is determined at our option as: (i) the sum of (a) the greatest of (1) JPMorgan's prime rate, (2) the federal funds rate plus 0.5%, and (3) the one-month London Interbank Offered Rate (“LIBOR”) plus 1.0%, and (b) a variable margin rate (the “ABR Margin”); or (ii) the LIBOR plus a variable margin rate (the “LIBOR Margin”). In addition, a facility fee is assessed on the commitment amount. The ABR Margin, LIBOR Margin and the facility fee are based upon the registrant's current senior unsecured debt rating. Under the Five-Year Facility Agreement, the ABR Margin ranges from 0.0% to 0.925%, the LIBOR Margin ranges from 1.000% to 1.925%, and the facility fee ranges from 0.125% to 0.325%. At January 30, 2016, and January 31, 2015, there were no borrowings outstanding and at January 30, 2016, $1.25 billion was available under the Five-Year Facility Agreement.
 
The Five-Year Facility Agreement is guaranteed by specified subsidiaries of Best Buy Co., Inc. and contains customary affirmative and negative covenants. Among other things, these covenants restrict Best Buy Co., Inc. and certain of its subsidiaries' ability to incur certain types or amounts of indebtedness, incur liens on certain assets, make material changes in corporate structure or the nature of its business, dispose of material assets, engage in a change in control transaction, make certain foreign investments, enter into certain restrictive agreements, or engage in certain transactions with affiliates. The Five-Year Facility Agreement also contains financial covenants that require us to maintain a maximum cash flow leverage ratio and a minimum interest coverage ratio (both ratios measured quarterly for the previous 12 months). The Five-Year Facility Agreement contains default provisions including, but not limited to, failure to pay interest or principal when due and failure to comply with covenants.

Long-Term Debt
 
Long-term debt consisted of the following ($ in millions):
 
January 30, 2016
 
January 31, 2015
2016 Notes
$
350

 
$
350

2018 Notes
500

 
500

2021 Notes
650

 
650

Interest rate swap valuation adjustments
25

 
1

Other debt
—

 
1

Subtotal
1,525

 
1,502

Debt discounts and issuance costs
(7
)
 
(10
)
Financing lease obligations
178

 
69

Capital lease obligations
38

 
52

Total long-term debt
1,734

 
1,613

Less: current portion
(395
)
 
(41
)
Total long-term debt, less current portion
$
1,339

 
$
1,572



2018 Notes
 
On July 16, 2013, we completed the sale of $500 million principal amount of notes due August 1, 2018 (the “2018 Notes”). The 2018 Notes bear interest at a fixed rate of 5.00% per year, payable semi-annually on February 1 and August 1 of each year, beginning on February 1, 2014. Net proceeds from the sale of the 2018 Notes were $495 million, after underwriting and issue discounts totaling $5 million.
 
We may redeem some or all of the 2018 Notes at any time, at a redemption price equal to the greater of (1) 100% of the principal amount of the 2018 Notes to be redeemed and (2) the sum of the present values of each remaining scheduled payment of principal and interest on the 2018 Notes to be redeemed discounted to the redemption date on a semi-annual basis at the Treasury Rate plus 50 basis points. Furthermore, if a change of control triggering event occurs, we will be required to offer to purchase the remaining unredeemed 2018 Notes at a price equal to 101% of their principal amount, plus accrued and unpaid interest to the purchase date.
 
The 2018 Notes are unsecured and unsubordinated obligations and rank equally with all of our other unsecured and unsubordinated debt. The 2018 Notes contain covenants that, among other things, limit our ability and the ability of our subsidiaries to incur debt secured by liens and enter into sale and lease-back transactions.
 
2016 and 2021 Notes
 
In March 2011, we issued $350 million principal amount of notes due March 15, 2016 (the “2016 Notes”) and $650 million principal amount of notes due March 15, 2021 (the “2021 Notes” and, together with the 2016 Notes, the “Notes”). In March 2016, we repaid the 2016 Notes using existing cash resources. The 2016 Notes bore interest at a fixed rate of 3.75% per year, while the 2021 Notes bear interest at a fixed rate of 5.50% per year. Interest on the Notes is payable semi-annually on March 15 and September 15 of each year, beginning on September 15, 2011. The Notes were issued at a slight discount to par, which when coupled with underwriting discounts of $6 million, resulted in net proceeds from the sale of the Notes of $990 million.
 
We may redeem some or all of the Notes at any time at a redemption price equal to the greater of (i) 100% of the principal amount and (ii) the sum of the present values of each remaining scheduled payment of principal and interest discounted to the redemption date on a semiannual basis, plus accrued and unpaid interest on the principal amount to the redemption date as described in the indenture (including the supplemental indenture) relating to the Notes. Furthermore, if a change of control triggering event occurs, we will be required to offer to purchase the remaining unredeemed Notes at a price equal to 101% of their principal amount, plus accrued and unpaid interest to the purchase date.

The Notes are unsecured and unsubordinated obligations and rank equally with all of our other unsecured and unsubordinated debt. The Notes contain covenants that, among other things, limit our ability to incur debt secured by liens or to enter into sale and lease-back transactions.
 
Fair Value and Future Maturities
 
The fair value of long-term debt, excluding debt discounts and issuance costs and financing and capital lease obligations, approximated $1,543 million and $1,494 million at January 30, 2016, and January 31, 2015, respectively, based primarily on the quoted market prices, compared to carrying values of $1,525 million and $1,502 million, respectively. If our long-term debt was recorded at fair value, it would be classified as Level 2 in the fair value hierarchy.
 
At January 30, 2016, the future maturities of long-term debt, excluding debt discounts and issuance costs and financing and capital lease obligations (see Note 8, Leases, for the future lease obligation maturities), consisted of the following ($ in millions):
Fiscal Year
 
 
2017
 
$
350

2018
 
—

2019
 
517

2020
 
—

2021
 
—

Thereafter
 
658

Total long-term debt
 
$
1,525

Derivative Instruments (Notes)
Derivative Instruments
Derivative Instruments

We manage our economic and transaction exposure to certain risks through the use of foreign currency derivative instruments and interest rate swaps. Our objective in holding derivatives is to reduce the volatility of net earnings, cash flows and net asset value associated with changes in foreign currency exchange rates and interest rates. We do not hold derivative instruments for trading or speculative purposes. We have no derivatives that have credit risk-related contingent features, and we mitigate our credit risk by engaging with financial institutions with investment grade credit ratings as our counterparties.

We record all derivative instruments on our Consolidated Balance Sheet at fair value and evaluate hedge effectiveness prospectively and retrospectively when electing to apply hedge accounting. We formally document all hedging relations at the inceptions for derivative hedges and the underlying hedged items, as well as the risk management objectives and strategies for undertaking the hedge transaction. In addition, we have derivatives which are not designated as hedging instruments.

Net Investment Hedges

We use foreign exchange forward contracts to hedge against the effect of Canadian dollar exchange rate fluctuations on a portion of our net investment in our Canadian operations. The contracts have terms up to 12 months. For a net investment hedge, we recognize changes in the fair value of the derivative as a component of foreign currency translation within other comprehensive income to offset a portion of the change in translated value of the net investment being hedged, until the investment is sold or liquidated. We limit recognition in net earnings of amounts previously recorded in other comprehensive income to circumstances such as complete or substantially complete liquidation of the net investment in the hedged foreign operation. We report the ineffective portion of the gain or loss, if any, in net earnings.

Interest Rate Swaps

We use "receive fixed-rate, pay variable-rate" interest rate swaps to mitigate the effect of interest rate fluctuations on a portion of our 2018 Notes and 2021 Notes. Our interest rate swap contracts are considered perfect hedges because the critical terms and notional amounts match those of our fixed-rate debt being hedged and are therefore accounted as a fair value hedge using the shortcut method. Under the shortcut method, we recognize the change in the fair value of the derivatives with an offsetting change to the carrying value of the debt. Accordingly, there is no impact on our Consolidated Statements of Earnings from the fair value of the derivatives.

Derivatives Not Designated as Hedging Instruments

We use foreign currency forward contracts to manage the impact of fluctuations in foreign currency exchange rates relative to recognized receivable and payable balances denominated in non-functional currencies. The contracts generally have terms of up to 12 months. These derivative instruments are not designated in hedging relationships and, therefore, we record gains and losses on these contracts directly to net earnings.

Summary of Derivative Balances

The following table presents the gross fair values for outstanding derivative instruments and the corresponding classification at January 30, 2016 and January 31, 2015:
 
January 30, 2016
 
January 31, 2015
Contract Type
Assets
Liabilities
 
Assets
Liabilities
Derivatives designated as net investment hedges(1)
$
15

$
1

 
$
19

$
—

Derivatives designated as interest rate swaps(2)
25

—

 
1

—

No hedge designation (foreign exchange forward contracts)(1)
3

—

 
11

—

Total
$
43

$
1

 
$
31

$
—

(1)
The fair value is recorded in other current assets or accrued liabilities.
(2)
The fair value is recorded in other assets or long-term liabilities.
    
The following table presents the effects of derivative instruments on Other Comprehensive Income ("OCI") and on our Consolidated Statements of Earnings for fiscal 2016 and 2015:
 
2016
 
2015
Contract Type
Pre-tax Gain(Loss) Recognized in OCI
 
Gain(Loss) Reclassified from Accumulated OCI to Earnings (Effective Portion)
 
Pre-tax Gain(Loss) Recognized in OCI
 
Gain(Loss) Reclassified from Accumulated OCI to Earnings (Effective Portion)
Derivatives designated as net investment hedges
$
21

 
$
—

 
$
22

 
$
—




The following table presents the effects of derivatives not designated as hedging instruments on our consolidated statements of earnings for fiscal 2016 and 2015:
 
Gain (Loss) Recognized within SG&A
Contract Type
2016
 
2015
No hedge designation (foreign exchange forward contracts)
$
4

 
$
12



The following table presents the notional amounts of our derivative instruments at January 30, 2016 and January 31, 2015:
 
Notional Amount
Contract Type
January 30, 2016
 
January 31, 2015
Derivatives designated as net investment hedges
208

 
197

Derivatives designated as interest rate swaps
750

 
145

No hedge designation (foreign exchange forward contracts)
94

 
212

Total
1,052

 
554

Shareholders' Equity
Shareholders Equity
Shareholders' Equity

Stock Compensation Plans

Our 2014 Omnibus Incentive Plan (the "Omnibus Plan") authorizes us to grant or issue non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units and other equity awards up to a total of 22.5 million shares. We have not granted incentive stock options under the Omnibus Plan. Under the terms of the Omnibus Plan, awards may be granted to our employees, officers, advisers, consultants and directors. Awards issued under the Omnibus Plan vest as determined by the Compensation and Human Resources Committee of our Board of Directors at the time of grant. Awards granted, forfeited or canceled under the previous plan, the 2004 Omnibus Stock and Incentive Plan, after February 1, 2014 adjust the amount available under the Omnibus Plan. At January 30, 2016, a total of 19.6 million shares were available for future grants under the Omnibus Plan.

Upon adoption and approval of the Omnibus Plan, all of our previous equity incentive compensation plans were terminated. However, existing awards under those plans continued to vest in accordance with the original vesting schedule and will expire at the end of their original term.

Our outstanding stock options have a 10-year term. Outstanding stock options issued to employees generally vest over a three or four-year period, and outstanding stock options issued to directors vest immediately upon grant. Share awards vest based either upon attainment of specified goals or upon continued employment. Outstanding share awards that are not time-based vest at the end of a three-year incentive period based upon our total shareholder return ("TSR") compared to the TSR of companies that comprise Standard & Poor's 500 Index ("market-based"). We have time-based share awards that vest in their entirety at the end of three-year periods, time-based share awards where 25% of the award vests on the date of grant and 25% vests on each of the three anniversary dates thereafter, and time-based share awards to directors vest one year from the grant date.

During fiscal 2014, our Employee Stock Purchase Plan was amended. The Plan permits employees to purchase our common stock at a 5% discount from the market price at the end of semi-annual purchase periods and is non-compensatory. During fiscal 2013 (11-month), the Plan permitted our employees to purchase our common stock at a 15% discount from the market price of the stock at the beginning or at the end of a semi-annual purchase period, whichever is less, and was considered compensatory. Employees are required to hold the common stock purchased for 12 months. In fiscal 2016, 2015 and 2014, 0.2 million, 0.3 million and 0.6 million shares, respectively, were purchased through our employee stock purchase plans. At January 30, 2016, and January 31, 2015, plan participants had accumulated $2 million and $1 million, respectively, to purchase our common stock pursuant to these plans.

Stock-based compensation expense was as follows in fiscal 2016, 2015 and 2014 ($ in millions):
 
2016
 
2015
 
2014
Stock options
$
15

 
$
17

 
$
25

Share awards
 
 
 
 
 
Market-based
16

 
10

 
9

Time-based
73

 
60

 
62

Employee stock purchase plans
—

 
—

 
1

Total
$
104

 
$
87

 
$
97


 
Stock Options
 
Stock option activity was as follows in fiscal 2016:
 
Stock
Options
 
Weighted-Average Exercise Price per Share
 
Weighted-Average Remaining Contractual Term
(in years)
 
Aggregate
Intrinsic Value
(in millions)
Outstanding at January 31, 2015
17,342,000

 
$
36.81

 
 
 
 

Granted
1,267,000

 
$
40.68

 
 
 
 

Exercised
(1,432,000
)
 
$
28.24

 
 
 
 

Forfeited/Canceled
(2,935,000
)
 
$
44.15

 
 
 
 

Outstanding at January 30, 2016
14,242,000

 
$
36.51

 
4.7
 
$
20

Vested or expected to vest at January 30, 2016
13,986,000

 
$
36.47

 
4.6
 
$
20

Exercisable at January 30, 2016
11,668,000

 
$
37.09

 
3.8
 
$
18


 
The weighted-average grant-date fair value of stock options granted during fiscal 2016, 2015 and 2014 was $11.59, $9.09 and $7.77, respectively, per share. The aggregate intrinsic value of our stock options (the amount by which the market price of the stock on the date of exercise exceeded the exercise price of the option) exercised during fiscal 2016, 2015 and 2014, was $14 million, $13 million and $39 million, respectively. At January 30, 2016, there was $15 million of unrecognized compensation expense related to stock options that is expected to be recognized over a weighted-average period of 1.2 years.
 
Net cash proceeds from the exercise of stock options were $40 million, $42 million and $158 million in fiscal 2016, 2015 and 2014, respectively.

There was $5 million, $5 million and $13 million of income tax benefits realized from stock option exercises in fiscal 2016, 2015 and 2014, respectively.

In fiscal 2016, 2015 and 2014, we estimated the fair value of each stock option on the date of grant using a lattice or Black Scholes valuation model (for certain individuals) with the following assumptions:
Valuation Assumptions(1)
 
2016
 
2015
 
2014
Risk-free interest rate(2)
 
0.1% – 2.1%

 
0.1% – 2.4%

 
0.1% – 1.8%

Expected dividend yield
 
2.3
%
 
2.5
%
 
2.0
%
Expected stock price volatility(3)
 
37
%
 
40
%
 
46
%
Expected life of stock options (in years)(4)
 
6.0

 
6.0

 
5.9


(1)
Forfeitures are estimated using historical experience and projected employee turnover.
(2)
Based on the U.S. Treasury constant maturity interest rate whose term is consistent with the expected life of our stock options.
(3)
In projecting expected stock price volatility, we consider both the historical volatility of our stock price as well as implied volatilities from exchange-traded options on our stock.
(4)
We estimate the expected life of stock options based upon historical experience.

Market-Based Share Awards

The fair value of market-based share awards is determined using Monte-Carlo simulation. A summary of the status of our nonvested market-based share awards at January 30, 2016, and changes during fiscal 2016, is as follows:
Market-Based Share Awards
 
Shares
 
Weighted-Average Fair Value per Share
Outstanding at January 31, 2015
 
1,704,000

 
$
24.16

Granted
 
758,000

 
$
31.48

Vested
 
(914,000
)
 
$
16.73

Forfeited/Canceled
 
(86,000
)
 
$
28.85

Outstanding at January 30, 2016
 
1,462,000

 
$
32.33



At January 30, 2016, there was $19 million of unrecognized compensation expense related to nonvested market-based share awards that we expect to recognize over a weighted-average period of 1.8 years.

Time-Based Share Awards

The fair value of time-based share awards is determined based on the closing market price of our stock on the date of grant. This value is reduced by the present value of expected dividends during vesting when the employee is not entitled to dividends.

A summary of the status of our nonvested time-based share awards at January 30, 2016, and changes during fiscal 2016, is as follows:
Time-Based Share Awards
 
Shares
 
Weighted-Average Fair Value per Share
Outstanding at January 31, 2015
 
5,543,000

 
$
24.40

Granted
 
2,683,000

 
$
38.72

Vested
 
(2,503,000
)
 
$
23.10

Forfeited/Canceled
 
(620,000
)
 
$
29.98

Outstanding at January 30, 2016
 
5,103,000

 
$
31.89



At January 30, 2016, there was $85 million of unrecognized compensation expense related to nonvested time-based share awards that we expect to recognize over a weighted-average period of 1.8 years.

Earnings per Share

We compute our basic earnings per share based on the weighted-average number of common shares outstanding, and our diluted earnings per share based on the weighted-average number of common shares outstanding adjusted by the number of additional shares that would have been outstanding had the potentially dilutive common shares been issued. Potentially dilutive securities include stock options, nonvested share awards and shares issuable under our employee stock purchase plan. Nonvested market-based share awards and nonvested performance-based share awards are included in the average diluted shares outstanding each period if established market or performance criteria have been met at the end of the respective periods.

At January 30, 2016, options to purchase 14.2 million shares of common stock were outstanding as follows (shares in millions):
 
Exercisable
 
Unexercisable
 
Total
 
Shares
 
%
 
Weighted-
Average Price
per Share
 
Shares
 
%
 
Weighted-
Average Price
per Share
 
Shares
 
%
 
Weighted-
Average Price
per Share
In-the-money
4.2

 
36
%
 
$
24.73

 
1.3

 
52
%
 
$
27.45

 
5.5

 
39
%
 
$
25.37

Out-of-the-money
7.5

 
64
%
 
$
44.15

 
1.2

 
48
%
 
$
40.51

 
8.7

 
61
%
 
$
43.62

Total
11.7

 
100
%
 
$
37.09

 
2.5

 
100
%
 
$
33.87

 
14.2

 
100
%
 
$
36.51



The computation of dilutive shares outstanding excludes the out-of-the-money stock options because such outstanding options' exercise prices were greater than the average market price of our common shares and, therefore, the effect would be anti-dilutive (i.e., including such options would result in higher earnings per share).

The following table presents a reconciliation of the numerators and denominators of basic and diluted earnings per share from continuing operations attributable to Best Buy Co., Inc. in fiscal 2016, 2015 and 2014 ($, except per share amounts, and shares in millions):
 
2016
 
2015
 
2014
Numerator (in millions):
 
 
 
 
 
Net earnings from continuing operations attributable to Best Buy Co., Inc., shareholders
$
807

 
$
1,246

 
$
695

Denominator (in millions):
 
 
 
 
 
Weighted-average common shares outstanding
346.5

 
349.5

 
342.1

Effect of potentially dilutive securities:
 
 
 
 
 
Stock options and other
4.2

 
4.1

 
5.5

Weighted-average common shares outstanding, assuming dilution
350.7

 
353.6

 
347.6

Net earnings per share from continuing operations attributable to Best Buy Co., Inc. shareholders
 
 
 
 
 
Basic
$
2.33

 
$
3.57

 
$
2.03

Diluted
$
2.30

 
$
3.53

 
$
2.00



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

On January 22, 2016, we entered into a variable notional accelerated share repurchase agreement ("ASR") with a third party financial institution to repurchase $150 million to $175 million of our common stock. Under the agreement, we paid $175 million at the beginning of the contract and received an initial delivery of 4.4 million shares on January 25, 2016. We retired these shares and recorded a $120 million reduction to stockholders' equity. As of January 30, 2016 the remaining $55 million was included as a reduction of stockholders' equity in "Prepaid Share Repurchase". We accounted for the variable component of shares to be delivered under the ASR as a forward contract indexed to our common stock, which met all of the criteria for equity classification, and therefore, was not accounted for as a derivative instrument but instead was accounted for as a component of equity. The ASR continued to meet the requirements for equity classification as of January 30, 2016.

The delivery of 4.4 million shares reduced our outstanding shares used to determine our weighted average common shares outstanding for purposes of calculating basic and diluted earnings per share for the twelve months ended January 30, 2016. We evaluated the ASR agreement for potential dilutive effects of any shares remaining to be received or owed upon settlement and determined the additional shares to be received would be anti-dilutive, and therefore they were not included in our calculation of diluted earnings per share for the the twelve months ended January 30, 2016.

The ASR was settled on February 17, 2016 for a final notional amount of $165 million. Accordingly we received 1.6 million shares, which were retired, and a $10 million cash payment from our counter-party equal to the difference between the $175 million up-front payment and the final notional amount. The final notional amount was determined based upon the volume-weighted average share price of our common stock during the term of the ASR agreement. The number of shares delivered was based upon the final notional amount and the volume-weighted average share price of our common stock during the term of the agreement, less an agreed-upon discount.

The following table presents information regarding the shares we repurchased and retired in fiscal 2016, noting that we had no repurchases and retirements in fiscal 2015 and 2014 ($, except per share amounts, and shares in millions):
 
 
2016
Total cost of shares repurchased
 
 
Open market
 
$
880

January 2016 ASR
 
120

     Total
 
$
1,000

 
 
 
Average price per share
 
 
Open market
 
$
31.03

January 2016 ASR
 
$
27.28

     Average
 
$
30.53

 
 
 
Number of shares repurchased and retired
 
 
Open market
 
28.4

January 2016 ASR
 
4.4

     Total
 
32.8


 
At January 30, 2016, $3.0 billion remained available for additional purchases under the June 2011 share repurchase program. Repurchased shares have been retired and constitute authorized but unissued shares.
 
Comprehensive Income (Loss)
 
Comprehensive income (loss) is computed as net earnings (loss) plus certain other items that are recorded directly to shareholders' equity. In addition to net earnings (loss), the significant components of comprehensive income (loss) include foreign currency translation adjustments and unrealized gains and losses, net of tax, on available-for-sale marketable equity securities. Foreign currency translation adjustments do not include a provision for income tax expense when earnings from foreign operations are considered to be indefinitely reinvested outside the U.S.

The following table provides a reconciliation of the components of accumulated other comprehensive income, net of tax, attributable to Best Buy Co., Inc. shareholders for fiscal 2016, 2015, and 2014, respectively ($ in millions):
 
Foreign Currency Translation
 
Available-For-Sale Investments
 
Total
Balances at February 2, 2013
$
113

 
$
(1
)
 
$
112

Foreign currency translation adjustments
(136
)
 
—

 
(136
)
Unrealized gains on available-for-sale investments
—

 
7

 
7

Reclassification of foreign currency translation adjustments into earnings due to sale of business
508

 
—

 
508

Reclassification of losses on available-for-sale investments into earnings
—

 
1

 
1

Balances at February 1, 2014
$
485

 
$
7

 
$
492

Foreign currency translation adjustments
(103
)
 
—

 
(103
)
Unrealized losses on available-for-sale investments
—

 
(3
)
 
(3
)
Reclassification of gains on available-for-sale investments into earnings
—

 
(4
)
 
(4
)
Balances at January 31, 2015
$
382

 
$
—

 
$
382

Foreign currency translation adjustments
(44
)
 
—

 
(44
)
Reclassification of foreign currency translation adjustments into earnings
(67
)
 
—

 
(67
)
Balances at January 30, 2016
$
271

 
$
—

 
$
271


 
There is generally no tax impact related to foreign currency translation adjustments, as the earnings are considered permanently reinvested. In addition, there were no material tax impacts related to gains or losses on available-for-sale investments in the periods presented.
Leases
Leases
Leases

The composition of net rent expense for all operating leases, including leases of property and equipment, was as follows in fiscal 2016, 2015 and 2014 ($ in millions):
 
2016
 
2015
 
2014
Minimum rentals
$
797

 
$
848

 
$
864

Contingent rentals
1

 
2

 
2

Total rent expense
798

 
850

 
866

Less: sublease income
(15
)
 
(18
)
 
(18
)
Net rent expense
$
783

 
$
832

 
$
848



The future minimum lease payments under our capital, financing and operating leases by fiscal year (not including contingent rentals) at January 30, 2016, were as follows ($ in millions):
Fiscal Year
 
Capital
Leases
 
Financing
Leases
 
Operating
Leases(1)
2017
 
$
14

 
$
42

 
$
813

2018
 
9

 
35

 
708

2019
 
6

 
29

 
572

2020
 
3

 
23

 
439

2021
 
2

 
17

 
310

Thereafter
 
12

 
66

 
521

Total minimum lease payments
 
46

 
212

 
$
3,363

Less amount representing interest
 
(8
)
 
(34
)
 
 
Present value of minimum lease payments
 
38

 
178

 
 
Less current maturities
 
(12
)
 
(33
)
 
 

Present value of minimum lease maturities, less current maturities
 
$
26

 
$
145

 
 


(1)
Operating lease obligations do not include payments to landlords covering real estate taxes and common area maintenance. These charges, if included, would increase total operating lease obligations by $1.1 billion at January 30, 2016.

Total minimum lease payments have not been reduced by minimum sublease rent income of approximately $72 million due under future noncancelable subleases.
Benefit Plans
Benefit Plans
Benefit Plans

We sponsor retirement savings plans for employees meeting certain eligibility requirements. Participants may choose from various investment options, including a fund comprised of our company stock. Participants can contribute up to 50% of their eligible compensation annually as defined by the plan document, subject to Internal Revenue Service ("IRS") limitations. We match 100% of the first 3% of participating employees' contributions and 50% of the next 2%. Employer contributions vest immediately. The total employer contributions were $53 million, $60 million and $65 million in fiscal 2016, 2015 and 2014, respectively.

We have a non-qualified, unfunded deferred compensation plan for highly compensated employees and members of our Board of Directors. Amounts contributed and deferred under our deferred compensation plan are credited or charged with the performance of investment options offered under the plan and elected by the participants. In the event of bankruptcy, the assets of the plan are available to satisfy the claims of general creditors. The liability for compensation deferred under the plan was $34 million and $44 million at January 30, 2016, and January 31, 2015, respectively, and is included in long-term liabilities. We manage the risk of changes in the fair value of the liability for deferred compensation by electing to match our liability under the plan with investment vehicles that offset a substantial portion of our exposure. The fair value of the investment vehicles, which includes funding for future deferrals, was $96 million and $97 million at January 30, 2016, and January 31, 2015, respectively, and is included in other assets.
Income Taxes
Income Taxes
Income Taxes

The following is a reconciliation of the federal statutory income tax rate to income tax expense in fiscal 2016, 2015 and 2014 ($ in millions):
 
2016
 
2015
 
2014
Federal income tax at the statutory rate
$
458

 
$
485

 
$
379

State income taxes, net of federal benefit
38

 
43

 
26

(Benefit) expense from foreign operations
5

 
(23
)
 
(23
)
Other
2

 
(11
)
 
6

Legal entity reorganization
—

 
(353
)
 
—

Income tax expense
$
503

 
$
141

 
$
388

Effective income tax rate
38.4
%
 
10.1
%
 
35.8
%

Legal Entity Reorganization

In the fourth quarter of fiscal 2012, we purchased CPW’s interest in the Best Buy Mobile profit share agreement for $1.3 billion (the “Mobile buy-out”). The Mobile buy-out completed by our U.K. subsidiary resulted in the $1.3 billion purchase price being assigned, for U.S. tax purposes only, to an intangible asset. The Mobile buy-out did not, however, result in a similar intangible asset in the U.K., as the Mobile buy-out was considered part of a tax-free equity transaction for U.K. tax purposes.

Because the U.S. tax basis in the intangible asset was considered under U.S. tax law to be held by our U.K. subsidiary, which was regarded as a foreign corporation for U.S. tax purposes, ASC 740, Income Taxes, requires that no deferred tax asset may be recorded in respect of the intangible asset. ASC 740-30-25-9 also precludes the recording of a deferred tax asset on the outside basis difference of the U.K. subsidiary. As a result, the amortization of the U.S. tax basis in the intangible asset only resulted in a periodic income tax benefit by reducing the amount of the U.K. subsidiary’s income, if any, that would otherwise have been subject to U.S. income taxes.

In the first quarter of fiscal 2015, we filed an election with the Internal Revenue Service to treat the U.K. subsidiary as a disregarded entity such that its assets are now deemed to be assets held directly by a U.S. entity for U.S. tax purposes. This tax-only election, which resulted in the liquidation of the U.K. subsidiary for U.S. tax purposes, resulted in the elimination of the Company’s outside basis difference in the U.K. subsidiary. Additionally, the election resulted in the recognition of a deferred tax asset (and corresponding income tax benefit) for the remaining unrecognized inside tax basis in the intangible, in a manner similar to a change in tax status as provided in ASC 740-10-25-32.

Earnings from continuing operations before income tax expense by jurisdiction was as follows in fiscal 2016, 2015 and 2014 ($ in millions):
 
2016
 
2015
 
2014
United States
$
1,310

 
$
1,201

 
$
699

Outside the United States
—

 
186

 
384

Earnings from continuing operations before income tax expense
$
1,310

 
$
1,387

 
$
1,083



Income tax expense was comprised of the following in fiscal 2016, 2015 and 2014 ($ in millions):
 
2016
 
2015
 
2014
Current:
 
 
 
 
 
Federal
$
347

 
$
354

 
$
305

State
48

 
51

 
46

Foreign
60

 
33

 
55

 
455

 
438

 
406

Deferred:
 
 
 
 
 
Federal
65

 
(275
)
 
(22
)
State
10

 
(26
)
 
1

Foreign
(27
)
 
4

 
3

 
48

 
(297
)
 
(18
)
Income tax expense
$
503

 
$
141

 
$
388



Deferred taxes are the result of differences between the bases of assets and liabilities for financial reporting and income tax purposes. Deferred tax assets and liabilities were comprised of the following ($ in millions):
 
January 30, 2016
 
January 31, 2015
Accrued property expenses
$
175

 
$
129

Other accrued expenses
78

 
91

Deferred revenue
99

 
93

Compensation and benefits
99

 
103

Stock-based compensation
86

 
94

Goodwill and intangibles
253

 
287

Loss and credit carryforwards
133

 
156

Other
86

 
88

Total deferred tax assets
1,009

 
1,041

Valuation allowance
(108
)
 
(143
)
Total deferred tax assets after valuation allowance
901

 
898

Property and equipment
(296
)
 
(251
)
Inventory
(69
)
 
(54
)
Other
(26
)
 
(27
)
Total deferred tax liabilities
(391
)
 
(332
)
Net deferred tax assets
$
510

 
$
566



Deferred tax assets and liabilities included in our Consolidated Balance Sheets were as follows ($ in millions):
 
January 30, 2016
 
January 31, 2015
Other assets
$
510

 
$
574

Long-term liabilities held for sale
—

 
(8
)
Net deferred tax assets
$
510

 
$
566



During the fourth quarter of fiscal 2016, we early adopted ASU 2015-17, which requires that all deferred taxes be presented as non-current on the Consolidated Balance Sheet. Refer to Note 1, Summary of Significant Accounting Policies, for further information regarding this balance sheet reclassification.

At January 30, 2016, we had total net operating loss carryforwards from international operations of $96 million, of which $89 million will expire in various years through 2036 and the remaining amounts have no expiration. Additionally, we had acquired U.S. federal net operating loss carryforwards of $19 million which expire between 2023 and 2030, U.S. federal foreign tax credit carryforwards of $1 million which expire between 2023 and 2026, state credit carryforwards of $13 million which expire in 2024, and state capital loss carryforwards of $4 million which expire in 2019.

At January 30, 2016, a valuation allowance of $108 million had been established, of which $1 million is against U.S. federal foreign tax credit carryforwards, $9 million is against U.S. federal and state capital loss carryforwards, $8 million is against state credit carryforwards and other state deferred tax assets, and $90 million is against certain international net operating loss carryforwards and other international deferred tax assets. The $35 million decrease from January 31, 2015, is primarily due to the decrease in the valuation allowance against international net operating loss carryforwards.

We have not provided deferred taxes on unremitted earnings attributable to foreign operations that have been considered to be reinvested indefinitely. These earnings relate to ongoing operations and were $896 million at January 30, 2016. It is not practicable to determine the income tax liability that would be payable if such earnings were not indefinitely reinvested.

The following table provides a reconciliation of changes in unrecognized tax benefits for fiscal 2016, 2015 and 2014 ($ in millions):
 
2016
 
2015
 
2014
Balance at beginning of period
$
410

 
$
370

 
$
383

Gross increases related to prior period tax positions
30

 
33

 
38

Gross decreases related to prior period tax positions
(13
)
 
(88
)
 
(67
)
Gross increases related to current period tax positions
59

 
114

 
34

Settlements with taxing authorities
(9
)
 
(9
)
 
(3
)
Lapse of statute of limitations
(8
)
 
(10
)
 
(15
)
Balance at end of period
$
469

 
$
410

 
$
370



Unrecognized tax benefits of $337 million, $297 million and $228 million at January 30, 2016, January 31, 2015, and February 1, 2014, respectively, would favorably impact our effective income tax rate if recognized.

We recognize interest and penalties (not included in the "unrecognized tax benefits" above), as well as interest received from favorable tax settlements, as components of income tax expense. Interest expense of $10 million was recognized in fiscal 2016. At January 30, 2016, January 31, 2015, and February 1, 2014, we had accrued interest of $89 million, $78 million and $91 million, respectively, along with accrued penalties of $1 million, $2 million and $2 million at January 30, 2016, January 31, 2015, and February 1, 2014, respectively.

We file a consolidated U.S. federal income tax return, as well as income tax returns in various states and foreign jurisdictions. With few exceptions, we are no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before fiscal 2005.

Because existing tax positions will continue to generate increased liabilities for us for unrecognized tax benefits over the next 12 months, and since we are routinely under audit by various taxing authorities, it is reasonably possible that the amount of unrecognized tax benefits will change during the next 12 months. An estimate of the amount or range of such change cannot be made at this time. However, we do not expect the change, if any, to have a material effect on our consolidated financial condition, results of operations or cash flows within the next 12 months.
Segments and Geographic 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 districts and territories). Our CODM has ultimate responsibility for enterprise decisions. Our CODM determines, in particular, resource allocation for, and monitors performance of, the consolidated enterprise, the Domestic segment and the International segment. The Domestic segment managers and International segment managers have responsibility for operating decisions, allocating resources and assessing performance within their respective segments. Our CODM relies on internal management reporting that analyzes enterprise results to the net earnings level and segment results to the operating income level.
 
We aggregate our Canada and Mexico businesses into one International operating segment. Our Domestic and International operating segments also represent our reportable segments. The accounting policies of the segments are the same as those described in Note 1, Summary of Significant Accounting Policies.

The following tables present our business segment information in fiscal 2016, 2015 and 2014 ($ in millions):
 
2016
 
2015
 
2014
Revenue
 
 
 
 
 
Domestic
$
36,365

 
$
36,055

 
$
35,831

International
3,163

 
4,284

 
4,780

Total revenue
$
39,528

 
$
40,339

 
$
40,611

Percentage of revenue, by revenue category
 
 
 
 
 
Domestic:
 
 
 
 
 
Consumer Electronics
32
%
 
31
%
 
30
%
Computing and Mobile Phones
46
%
 
47
%
 
48
%
Entertainment
8
%
 
9
%
 
8
%
Appliances
8
%
 
7
%
 
7
%
Services
5
%
 
5
%
 
6
%
Other
1
%
 
1
%
 
1
%
Total
100
%
 
100
%
 
100
%
International:
 
 
 
 
 
Consumer Electronics
31
%
 
30
%
 
29
%
Computing and Mobile Phones
48
%
 
49
%
 
50
%
Entertainment
9
%
 
9
%
 
10
%
Appliances
5
%
 
5
%
 
5
%
Services
6
%
 
6
%
 
6
%
Other
1
%
 
1
%
 
< 1%

Total
100
%
 
100
%
 
100
%
Operating income (loss)
 
 
 
 
 
Domestic
$
1,585

 
$
1,437

 
$
1,145

International
(210
)
 
13

 
(1
)
Total operating income
1,375

 
1,450

 
1,144

Other income (expense)
 
 
 
 
 
Gain on sale of investments
2

 
13

 
20

Investment income and other
13

 
14

 
19

Interest expense
(80
)
 
(90
)
 
(100
)
Earnings from continuing operations before income tax expense
$
1,310

 
$
1,387

 
$
1,083

Assets(1)(2)
 
 
 
 
 
Domestic
$
12,318

 
$
12,987

 
$
11,123

International
1,201

 
2,258

 
2,867

Total assets
$
13,519

 
$
15,245

 
$
13,990

Capital expenditures(2)
 
 
 
 
 
Domestic
$
602

 
$
519

 
$
440

International
47

 
42

 
107

Total capital expenditures
$
649

 
$
561

 
$
547

Depreciation(2)
 
 
 
 
 
Domestic
$
613

 
$
575

 
$
565

International
44

 
81

 
136

Total depreciation
$
657

 
$
656

 
$
701


(1)
For fiscal 2015 and 2014, assets are recast to present our retrospective adoption of ASU 2015-17 Balance Sheet Classification of Deferred Taxes, ASU 2015-03 Simplifying the Presentation of Debt Issuance Costs, and ASU 2015-15 Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. Refer to Note 1, Summary of Significant Accounting Policies, of the Notes to Consolidated Financial Statements, included in Item 8, Financial Statements and Supplementary Data, of this Annual Report on Form 10-K for further information about our credit facilities.
(2)
For fiscal 2015 and 2014, the International segment amounts for assets, capital expenditures and depreciation include amounts from Five Star.
Geographic Information

The following table presents our geographic information in fiscal 2016, 2015 and 2014 ($ in millions):
 
2016
 
2015
 
2014
Net sales to customers
 
 
 
 
 
United States
$
36,365

 
$
36,055

 
$
35,831

Canada
2,917

 
4,047

 
4,522

Other
246

 
237

 
258

Total revenue
$
39,528

 
$
40,339

 
$
40,611

Long-lived assets
 
 
 
 
 
United States
$
2,189

 
$
2,100

 
$
2,190

Canada
140

 
174

 
244

China
—

 
—

 
139

Other
17

 
21

 
25

Total long-lived assets
$
2,346

 
$
2,295

 
$
2,598

Contingencies and Commitments
Contingencies and Commitments
Contingencies and Commitments

Contingencies

We are involved in a number of legal proceedings. Where appropriate, we have made accruals with respect to these matters, which are reflected in our consolidated financial statements. However, there are cases where liability is not probable or the amount cannot be reasonably estimated and therefore accruals have not been made. We provide disclosure of matters where we believe it is reasonably possible the impact may be material to our consolidated financial statements.

Securities Actions
 
In February 2011, a purported class action lawsuit captioned, IBEW Local 98 Pension Fund, individually and on behalf of all others similarly situated v. Best Buy Co., Inc., et al., was filed against us and certain of our executive officers in the U.S. District Court for the District of Minnesota. This federal court action alleges, among other things, that we and the officers named in the complaint violated Sections 10(b) and 20A of the Exchange Act and Rule 10b-5 under the Exchange Act in connection with press releases and other statements relating to our fiscal 2011 earnings guidance that had been made available to the public. Additionally, in March 2011, a similar purported class action was filed by a single shareholder, Rene LeBlanc, against us and certain of our executive officers in the same court. In July 2011, after consolidation of the IBEW Local 98 Pension Fund and Rene LeBlanc actions, a consolidated complaint captioned, IBEW Local 98 Pension Fund v. Best Buy Co., Inc., et al., was filed and served. We filed a motion to dismiss the consolidated complaint in September 2011, and in March 2012, subsequent to the end of fiscal 2012, the court issued a decision dismissing the action with prejudice. In April 2012, the plaintiffs filed a motion to alter or amend the court's decision on our motion to dismiss. In October 2012, the court granted plaintiff's motion to alter or amend the court's decision on our motion to dismiss in part by vacating such decision and giving plaintiff leave to file an amended complaint, which plaintiff did in October 2012. We filed a motion to dismiss the amended complaint in November 2012 and all responsive pleadings were filed in December 2012. A hearing was held on April 26, 2013. On August 5, 2013, the court issued an order granting our motion to dismiss in part and, contrary to its March 2012 order, denying the motion to dismiss in part, holding that certain of the statements alleged to have been made were not forward-looking statements and therefore were not subject to the “safe-harbor” provisions of the Private Securities Litigation Reform Act (PSLRA). Plaintiffs moved to certify the purported class. By Order filed August 6, 2014, the court certified a class of persons or entities who acquired Best Buy common stock between 10:00 a.m. EDT on September 14, 2010, and December 13, 2010, and who were damaged by the alleged violations of law. The 8th Circuit Court of Appeals granted our request for interlocutory appeal. Oral argument was held in October 2015, and we await a decision. The trial court has stayed proceedings while the appeal is pending. We continue to believe that these allegations are without merit and intend to vigorously defend our company in this matter.
 
In June 2011, a purported shareholder derivative action captioned, Salvatore M. Talluto, Derivatively and on Behalf of Best Buy Co., Inc. v. Richard M. Schulze, et al., as Defendants and Best Buy Co., Inc. as Nominal Defendant, was filed against both present and former members of our Board of Directors serving during the relevant periods in fiscal 2011 and us as a nominal defendant in the U.S. District Court for the State of Minnesota. The lawsuit alleges that the director defendants breached their fiduciary duty, among other claims, including violation of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, in failing to correct public misrepresentations and material misstatements and/or omissions regarding our fiscal 2011 earnings projections and, for certain directors, selling stock while in possession of material adverse non-public information. Additionally, in July 2011, a similar purported class action was filed by a single shareholder, Daniel Himmel, against us and certain of our executive officers in the same court. In November 2011, the respective lawsuits of Salvatore M. Talluto and Daniel Himmel were consolidated into a new action captioned, In Re: Best Buy Co., Inc. Shareholder Derivative Litigation, and a stay ordered pending the close of discovery in the consolidated IBEW Local 98 Pension Fund v. Best Buy Co., Inc., et al. case. Additionally, in June 2015, a similar purported class action was filed by a single shareholder, Khuong Tran, derivatively on behalf of Best Buy Co., Inc. against us and certain of our executive officers and directors in the same court. The Tran lawsuit has also been stayed pending the close of discovery in IBEW.

The plaintiffs in the above securities actions seek damages, including interest, equitable relief and reimbursement of the costs and expenses they incurred in the lawsuits. As stated above, we believe the allegations in the above securities actions are without merit, and we intend to defend these actions vigorously. Based on our assessment of the facts underlying the claims in the above securities actions, their respective procedural litigation history, and the degree to which we intend to defend our company in these matters, the amount or range of reasonably possible losses, if any, cannot be estimated.
Cathode Ray Tube Action

On November 14, 2011, we filed a lawsuit captioned In re Cathode Ray Tube Antitrust Litigation in the United States District Court for the Northern District of California. We allege that the defendants engaged in price fixing in violation of antitrust regulations relating to cathode ray tubes for the time period between March 1, 1995 through November 25, 2007. No trial date has been set. In connection with this action, we received settlement proceeds net of legal expenses and costs in the amount of 
 $75 million during fiscal 2016. We will continue to litigate against the remaining defendants and expect that further settlement discussions will occur as this matter proceeds .

Other Legal Proceedings
 
We are involved in various other legal proceedings arising in the normal course of conducting business. For such legal proceedings, we have accrued an amount that reflects the aggregate liability deemed probable and estimable, but this amount is not material to our consolidated financial position, results of operations or cash flows. Because of the preliminary nature of many of these proceedings, the difficulty in ascertaining the applicable facts relating to many of these proceedings, the variable treatment of claims made in many of these proceedings and the difficulty of predicting the settlement value of many of these proceedings, we are not able to estimate an amount or range of any reasonably possible additional losses. However, based upon our historical experience, the resolution of these proceedings is not expected to have a material effect on our consolidated financial position, results of operations or cash flows.

Commitments

We engage Accenture LLP ("Accenture") to assist us with improving our operational capabilities and reducing our costs in the information systems and human resources areas. Our contract with Accenture ends during the first quarter of fiscal 2018 and we expect the spending to total $95 million up to the end of the contract.

We had outstanding letters of credit and bankers' acceptances for purchase obligations with an aggregate fair value of $89 million at January 30, 2016.
Supplementary Financial Information (Unaudited)
Supplementary Financial Information (Unaudited)
Supplementary Financial Information (Unaudited)

The following tables show selected operating results for each 3-month quarter and full year of fiscal 2016 and 2015 (unaudited) ($ in millions):
 
Quarter
 
12-Month
 
1st
 
2nd
 
3rd
 
4th
 
2016
Revenue
$
8,558

 
$
8,528

 
$
8,819

 
$
13,623

 
$
39,528

Comparable sales % change(1)
0.6
 %
 
3.8
%
 
0.8
%
 
(1.7
)%
 
0.5
 %
Comparable sales % gain (decline), excluding estimated impact of installment billing(5)
(0.7
)%
 
2.7
%
 
0.5
%
 
(1.8
)%
 
(0.1
)%
Gross profit
$
2,030

 
$
2,098

 
$
2,112

 
$
2,951

 
$
9,191

Operating income(2)
86

 
288

 
230

 
771

 
1,375

Net earnings from continuing operations
37

 
164

 
129

 
477

 
807

Gain (loss) from discontinued operations, net of tax
92

 
—

 
(4
)
 
2

 
90

Net earnings including noncontrolling interests
129

 
164

 
125

 
479

 
897

Net earnings attributable to Best Buy Co., Inc. shareholders
129

 
164

 
125

 
479

 
897

Diluted earnings (loss) per share(3)
 
 
 
 
 
 
 
 
 
Continuing operations
$
0.10

 
$
0.46

 
$
0.37

 
$
1.39

 
$
2.30

Discontinued operations
0.26

 
—

 
(0.01
)
 
0.01

 
0.26

Diluted earnings per share
$
0.36

 
$
0.46

 
$
0.36

 
$
1.40

 
$
2.56


 
Quarter
 
12-Month
 
1st
 
2nd
 
3rd
 
4th
 
2015
Revenue
$
8,639

 
$
8,459

 
$
9,032

 
$
14,209

 
$
40,339

Comparable sales % gain (decline)(1)
(1.8
)%
 
(2.2
)%
 
2.9
%
 
2.0
%
 
0.5
%
Comparable sales % gain (decline), excluding estimated impact of installment billing(5)(6)
(1.8
)%
 
(2.2
)%
 
2.2
%
 
1.3
%
 
—
%
Gross profit
$
1,967

 
$
1,978

 
$
2,076

 
$
3,026

 
$
9,047

Operating income(4)
210

 
225

 
205

 
810

 
1,450

Net earnings from continuing operations
469

 
137

 
116

 
524

 
1,246

Gain (loss) from discontinued operations, net of tax
(8
)
 
10

 
(9
)
 
(4
)
 
(11
)
Net earnings including noncontrolling interests
461

 
147

 
107

 
520

 
1,235

Net earnings attributable to Best Buy Co., Inc. shareholders
461

 
146

 
107

 
519

 
1,233

Diluted earnings (loss) per share(3)
 
 
 
 
 
 
 
 
 
Continuing operations
$
1.33

 
$
0.39

 
$
0.33

 
$
1.47

 
$
3.53

Discontinued operations
(0.02
)
 
0.03

 
(0.03
)
 
(0.01
)
 
(0.04
)
Diluted earnings per share
$
1.31

 
$
0.42

 
$
0.30

 
$
1.46

 
$
3.49

(1)
Our comparable sales calculation compares revenue from stores, websites and call centers operating for at least 14 full months, as well as revenue related to certain other comparable sales channels for a particular period to a corresponding period in the prior year. Relocated, as well as remodeled, expanded and downsized stores closed more than 14 days, are excluded from our comparable sales calculation until at least 14 full months after reopening. Acquisitions are included in the comparable sales calculation beginning with the first full quarter following the first anniversary of the date of the acquisition. The portion of the calculation of comparable sales attributable to our International segment excludes the effect of fluctuations in foreign currency exchange rates. The calculation of comparable sales excludes the impact of revenue from discontinued operations. Comparable online sales are included in our comparable sales calculation. The method of calculating comparable sales varies across the retail industry. As a result, our method of calculating comparable sales may not be the same as other retailers' methods.
(2)
Includes $186 million, $(4) million, $7 million and $12 million of restructuring charges recorded in the fiscal first, second, third and fourth quarters, respectively, and $201 million for the 12 months ended January 30, 2016 related to measures we took to restructure our businesses.
(3)
The sum of our quarterly diluted earnings per share does not equal our annual diluted earnings per share due to differences in quarterly and annual weighted-average shares outstanding.
(4)
Includes $2 million, $5 million, $5 million and $(7) million of restructuring charges recorded in the fiscal first, second, third and fourth quarters, respectively, and $5 million for the 12 months ended January 31, 2015 related to measures we took to restructure our businesses.
(5)
Represents comparable sales excluding the estimated revenue of installment billing.
(6)
Enterprise comparable sales for fiscal 2015 include revenue from continuing operations in the International segment. Excluding the International segment, Enterprise comparable sales, excluding the impact of installment billing, would have been (1.3%) in the first quarter, 2.0% in the second quarter, 2.4% in the third quarter, 0.5% in the fourth quarter and 0.5% for fiscal 2015, or equal to Domestic comparable sales excluding the impact of installment billing, for the same periods.
Valuation and Qualifying 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 30, 2016
 
 
 
 
 
 
 
Allowance for doubtful accounts
$
59

 
$
30

 
$
(40
)
 
$
49

Year ended January 31, 2015
 
 
 
 
 
 
 
Allowance for doubtful accounts
$
104

 
$
1

 
$
(46
)
 
$
59

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

 
$
76

 
$
(64
)
 
$
104

(1)
Includes bad debt write-offs and recoveries, acquisitions and the effect of foreign currency fluctuations.
Summary of Significant 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 February 13, 2015, we sold Jiangsu Five Star Appliance Co., Limited ("Five Star"). The results of Best Buy Europe, mindSHIFT and Five Star are presented as discontinued operations for all periods. See Note 2, Discontinued Operations, for further information.
Description of Business 
Description of Business

We are a leading provider of technology products, services and solutions. We offer these products and services to the customers who visit our stores, engage with Geek Squad agents or use our websites or mobile applications. We have operations in the U.S., Canada and Mexico. We have two reportable segments: Domestic and International. The Domestic segment is comprised of the operations in all states, districts and territories of the U.S., under various brand names including Best Buy, bestbuy.com, Best Buy Mobile, Best Buy Direct, Best Buy Express, Geek Squad, Magnolia Home Theater and Pacific Kitchen and Home. The International segment is comprised of all operations in Canada and Mexico under the brand names Best Buy, bestbuy.com.ca, bestbuy.com.mx, Best Buy Express, Best Buy Mobile and Geek Squad.
Basis of Presentation 
Basis of Presentation

The consolidated financial statements include the accounts of Best Buy Co., Inc. and its consolidated subsidiaries. All intercompany balances and transactions are eliminated upon consolidation.

In order to align our fiscal reporting periods and comply with statutory filing requirements, we consolidate the financial results of our Mexico operations, as well as our discontinued Europe and China operations, on a one-month lag. Our policy is to accelerate recording the effect of events occurring in the lag period that significantly affect our consolidated financial statements. No significant intervening event occurred in these operations that would have materially affected our financial condition, results of operations, liquidity or other factors had it been recorded during fiscal 2016, 2015 or 2014.

In preparing the accompanying consolidated financial statements, we evaluated the period from January 31, 2016, through the date the financial statements were issued for material subsequent events requiring recognition or disclosure. Other than as described in Note 5, Debt, and Note 7, Shareholders' Equity, no such events were identified for this period.
Use of Estimates in the Preparation of Financial Statements 
Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. ("GAAP") requires us to make estimates and assumptions. These estimates and assumptions affect the reported amounts in the consolidated financial statements, as well as the disclosure of contingent liabilities. Future results could be materially affected if actual results were to differ from these estimates and assumptions.
Fiscal Period 
Fiscal Year

Our fiscal year ends on the Saturday nearest the end of January. Fiscal 2016, 2015, and 2014 each included 52 weeks.

New Accounting Pronouncements 
New Accounting Pronouncements

In April 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-18, Reporting Discontinued Operations and Disclosures of Components of an Entity. The new guidance amends the definition of a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. We adopted the new guidance in the first quarter of fiscal 2016, and the adoption of the new guidance did not have a material impact on our consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, as a new Topic. Accounting Standards Codification (ASC) Topic 606. The new guidance provides a comprehensive framework for the analysis of revenue transactions and will apply to all of our revenue streams. Based on the current effective dates, the new guidance would first apply in the first quarter of our fiscal 2019. While we are still in the process of evaluating the effect of adoption on our financial statements, we do not currently expect a material impact on our results of operations, cash flows or financial position.

In February 2016, the FASB issued ASU 2016-02, Leases. The new guidance was issued to increase transparency and comparability among companies by requiring most leases be included on the balance sheet and by expanding disclosure requirements. Based on the current effective dates, the new guidance would first apply in the first quarter of our fiscal 2020. We are still in the process of evaluating the effect of adoption on our financial statements.

Changes in Accounting Principles

In the fourth quarter of fiscal 2016, we adopted the following ASUs:

•
The FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs in April 2015 and ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements in August 2015. The new guidance aligns the treatment of debt issuance costs, with the exception of debt issuance costs related to lines of credit, with the treatment of debt discounts, so that the debt issuance costs are presented on the balance sheet as a direct deduction from the carrying amount of that debt liability. In the fourth quarter of fiscal 2016, we retrospectively adopted ASU 2015-03 and ASU 2015-15. The adoption did not have a material impact on our results of operations, cash flows or financial position.

•
In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes. The new guidance is part of the simplification initiative and requires all deferred income tax liabilities and assets to be classified as non-current. In the fourth quarter of fiscal 2016, we retrospectively adopted ASU 2015-17. The adoption did not have a material impact on our results of operations, cash flows or financial position.

The following table reconciles the balance sheet line items impacted by the adoption of these two standards for fiscal 2015:
Balance Sheet
2015 Reported
 
ASU 2015-03 & 2015-15 Adjustments
 
ASU 2015-17 Adjustments
 
2015 Adjusted
Other current assets
$
703

 
$
(2
)
 
$
(252
)
 
$
449

Current assets held for sale
684

 
—

 
(3
)
 
681

Other assets
583

 
(6
)
 
252

 
829

   Total assets
$
15,256

 
$
(8
)
 
$
(3
)
 
$
15,245

 
 
 
 
 
 
 
 
Long-term debt
$
1,580

 
$
(8
)
 
$
—

 
$
1,572

Long-term liabilities held for sale
18

 
—

 
(3
)
 
15

   Total liabilities & equity
$
15,256

 
$
(8
)
 
$
(3
)
 
$
15,245

Cash and Cash Equivalents 
Cash and Cash Equivalents

Cash primarily consists of cash on hand and bank deposits. Cash equivalents consist of money market funds, treasury bills, commercial paper, corporate bonds and deposits with an original maturity of 3 months or less when purchased. The amounts of cash equivalents at January 30, 2016, and January 31, 2015, were $1,208 million and $1,660 million, respectively, and the weighted-average interest rates were 0.5% and 0.4%, respectively.

Receivables 
Receivables

Receivables consist principally of amounts due from mobile phone network operators for commissions earned; banks for customer credit card and debit card transactions; and vendors for various vendor funding programs.

We establish allowances for uncollectible receivables based on historical collection trends and write-off history. Our allowances for uncollectible receivables were $49 million and $59 million at January 30, 2016, and January 31, 2015, respectively.
Merchandise Inventories 
Merchandise Inventories

Merchandise inventories are recorded at the lower of cost, using the average cost, or market. In-bound freight-related costs from our vendors are included as part of the net cost of merchandise inventories. Also included in the cost of inventory are certain vendor allowances that are not a reimbursement of specific, incremental and identifiable costs to promote a vendor's products. Other costs associated with acquiring, storing and transporting merchandise inventories to our retail stores are expensed as incurred and included in cost of goods sold.

Our inventory valuation reflects adjustments for anticipated physical inventory losses (e.g., theft) that have occurred since the last physical inventory. Physical inventory counts are taken on a regular basis to ensure that the inventory reported in our consolidated financial statements is properly stated.

Our inventory valuation also reflects markdowns for the excess of the cost over the amount we expect to realize from the ultimate sale or other disposal of the inventory. Markdowns establish a new cost basis for our inventory. Subsequent changes in facts or circumstances do not result in the reversal of previously recorded markdowns or an increase in the newly established cost basis.

Restricted Assets 
Restricted Assets

Restricted cash totaled $185 million at January 30, 2016 and is included in other current assets. Restricted cash totaled $292 million at January 31, 2015, of which $184 million is related to continuing operations and included in other current assets and $108 million is included in current assets held for sale in our Consolidated Balance Sheet. Such balances are pledged as collateral or restricted to use for general liability insurance and workers' compensation insurance.

Property and Equipment 
Property and Equipment

Property and equipment are recorded at cost. We compute depreciation using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are depreciated over the shorter of their estimated useful lives or the period from the date the assets are placed in service to the end of the lease term, which includes optional renewal periods if they are reasonably assured. Accelerated depreciation methods are generally used for income tax purposes.

When property is retired or otherwise disposed of, the cost and accumulated depreciation are removed from our Consolidated Balance Sheets and any resulting gain or loss is reflected in our Consolidated Statements of Earnings.

Repairs and maintenance costs are charged directly to expense as incurred. Major renewals or replacements that substantially extend the useful life of an asset are capitalized and depreciated.

Costs associated with the acquisition or development of software for internal use are capitalized and amortized over the expected useful life of the software, generally from three to seven years. A subsequent addition, modification or upgrade to internal-use software is capitalized to the extent that it enhances the software's functionality or extends its useful life. Capitalized software is included in fixtures and equipment. Software maintenance and training costs are expensed in the period incurred.

Property under capital and financing leases is comprised of buildings and equipment used in our operations. The related depreciation for capital and financing leases assets is included in depreciation expense. The carrying value of property under capital and financing leases was $165 million and $44 million at January 30, 2016, and January 31, 2015, respectively, net of accumulated depreciation of $107 million and $75 million, respectively.

Estimated useful lives by major asset category are as follows:
Asset
 
Life
(in years)
Buildings
 
35
Leasehold improvements
 
3-25
Fixtures and equipment
 
3-20
Property under capital and financing leases
 
2-20
Impairment of Long-Lived Assets and Costs Associated with Exit Activities 
Impairment of Long-Lived Assets and Costs Associated With Exit Activities

Long-lived assets are evaluated for impairment whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. Factors considered important that could result in an impairment review include, but are not limited to, significant under-performance relative to historical or planned operating results, significant changes in the manner of use or expected life of the assets, or significant changes in our business strategies. An impairment loss is recognized when the estimated undiscounted cash flows expected to result from the use of the asset plus net proceeds expected from the disposition of the asset (if any) are less than the carrying value of the asset net of other liabilities. When an impairment loss is recognized, the carrying amount of the asset is reduced to its estimated fair value using valuation techniques such as discounted cash flow analysis.

When reviewing long-lived assets for impairment, we group long-lived assets with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. For example, long-lived assets deployed at store locations are reviewed for impairment at the individual store level, which involves comparing the carrying value of all land, buildings, leasehold improvements, fixtures and equipment located at each store to the net cash flow projections for each store. In addition, we conduct separate impairment reviews at other levels as appropriate, for example, to evaluate potential impairment of assets shared by several areas of operations, such as information technology systems. Refer to Note 3, Fair Value Measurements, for further information associated with the long-lived assets impairments, including valuation techniques used, impairment charges incurred, and remaining carrying values.

The present value of costs associated with vacated properties, primarily future lease costs (net of expected sublease income), are charged to earnings when we cease using the property. We accelerate depreciation on property and equipment we expect to retire when a decision is made to abandon a property.

At January 30, 2016, and January 31, 2015, the obligation associated with vacant properties included in accrued liabilities in our Consolidated Balance Sheets was $44 million and $26 million, respectively, and the obligation associated with vacant properties included in long-term liabilities in our Consolidated Balance Sheets was $54 million and $43 million, respectively. The obligation associated with vacant properties at January 30, 2016, and January 31, 2015, included amounts associated with our restructuring activities as further described in Note 4, Restructuring Charges.
Leases 
Leases

We conduct the majority of our retail and distribution operations from leased locations. The leases generally require payment of real estate taxes, insurance and common area maintenance, in addition to rent. The terms of our new lease agreements for large-format stores are generally less than 10 years, although we have existing leases with terms up to 20 years. Small-format stores generally have lease terms that are half the length of large-format stores. Most of the leases contain renewal options and escalation clauses, and certain store leases require contingent rents based on factors such as specified percentages of revenue or the consumer price index.

For leases that contain predetermined fixed escalations of the minimum rent, we recognize the related rent expense on a straight-line basis from the date we take possession of the property to the end of the initial lease term. We record any difference between the straight-line rent amounts and amounts payable under the leases as part of deferred rent, in accrued liabilities or long-term liabilities, as appropriate.

Cash or lease incentives received upon entering into certain store leases ("tenant allowances") are recognized on a straight-line basis as a reduction to rent from the date we take possession of the property through the end of the initial lease term. We record the unamortized portion of tenant allowances as a part of deferred rent, in accrued liabilities or long-term liabilities, as appropriate.

At January 30, 2016, and January 31, 2015, deferred rent included in accrued liabilities in our Consolidated Balance Sheets was $36 million and $31 million, respectively, and deferred rent included in long-term liabilities in our Consolidated Balance Sheets was $139 million and $195 million, respectively.

Goodwill and Intangible Assets 
Goodwill and Intangible Assets
Goodwill

Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. We test goodwill for impairment annually, as of the first day of the fiscal fourth quarter, or when indications of potential impairment exist. We monitor the existence of potential impairment indicators throughout the fiscal year. We test for goodwill impairment at the reporting unit level and our reporting units are the components of operating segments which constitute businesses for which discrete financial information is available and is regularly reviewed by segment management. No components were aggregated in arriving at our reporting units. Our only reporting unit with a goodwill balance at the beginning of fiscal 2016 was our Domestic segment.

Our detailed impairment testing involves comparing the fair value of each reporting unit to its carrying value, including goodwill. Fair value reflects the price a market participant would be willing to pay in a potential sale of the reporting unit and is based on discounted cash flows or relative market-based approaches. If the fair value exceeds carrying value, then it is concluded that no goodwill impairment has occurred. If the carrying value of the reporting unit exceeds its fair value, a second step is required to measure possible goodwill impairment loss. The second step includes hypothetically valuing the tangible and intangible assets and liabilities of the reporting unit as if the reporting unit had been acquired in a business combination. Then, the implied fair value of the reporting unit's goodwill is compared to the carrying value of that goodwill. If the carrying value of the reporting unit's goodwill exceeds the implied fair value of the goodwill, we recognize an impairment loss in an amount equal to the excess, not to exceed the carrying value. No goodwill impairment was recorded in fiscal 2015. In fiscal 2016, we determined that the fair value of the Best Buy Domestic reporting unit exceeded its carrying value, and as a result, no goodwill impairment was recorded in fiscal 2016.

Tradenames

We include our tradenames and customer relationships within intangibles, net in our Consolidated Balance Sheets. We have an indefinite-lived tradename related to Pacific Sales included within our Domestic segment. As of the end of fiscal 2016, we have no indefinite-lived tradenames within our International segment.

Our valuation of identifiable intangible assets acquired is based on information and assumptions available to us at the time of acquisition, using income and market approaches to determine fair value. We do not amortize our indefinite-lived tradenames, but test for impairment annually, or when indications of potential impairment exist. We utilize the relief from royalty method to determine the fair value of each of our indefinite-lived tradenames. If the carrying value exceeds the fair value, we recognize an impairment loss in an amount equal to the excess. As a part of the Canada brand restructuring, we fully impaired the indefinite-lived Future Shop tradename during fiscal 2016. Refer to Note 4, Restructuring Charges, for additional information. No other impairments were identified during fiscal 2016.

The changes in the carrying amount of goodwill and indefinite-lived tradenames by segment were as follows in fiscal 2016, 2015 and 2014 ($ in millions):
 
Goodwill
 
Indefinite-Lived Tradenames
 
Domestic
 
International
 
Total
 
Domestic
 
International
 
Total
Balances at February 2, 2013
$
528

 
$
—

 
$
528

 
$
19

 
$
112

 
$
131

Sale of business(1)
(103
)
 
—

 
(103
)
 
—

 
(22
)
 
(22
)
Impairments
—

 
—

 
—

 
—

 
(4
)
 
(4
)
Changes in foreign currency exchange rates
—

 
—

 
—

 
—

 
(4
)
 
(4
)
Balances at February 1, 2014
425

 
—

 
425

 
19

 
82

 
101

Sale of business(2)
—

 
—

 
—

 


 
(37
)
 
(37
)
Impairments
—

 
—

 
—

 
(1
)
 
—

 
(1
)
Changes in foreign currency exchange rates
—

 
—

 
—

 
—

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

 
—

 
425

 
18

 
39

 
57

Canada brand restructuring (3)
—

 
—

 
—

 
—

 
(40
)
 
(40
)
Changes in foreign currency exchange rates
—

 
—

 
—

 
—

 
1

 
1

Balances at January 30, 2016
$
425

 
$
—

 
$
425

 
$
18

 
$
—

 
$
18


(1)
Represents goodwill written off as a result of the sale of mindSHIFT in fiscal 2014 and indefinite-lived tradenames written off as a result of the sale of Best Buy Europe in fiscal 2014.
(2)
Primarily represents the Five Star indefinite-lived tradenames classified as held for sale at January 31, 2015.
(3)
Represents the Future Shop tradename impaired as a result of the Canada brand restructuring in the first quarter of fiscal 2016. See Note 4, Restructuring Charges, for further discussion.
The following table provides the gross carrying amount of goodwill and cumulative goodwill impairment losses ($ in millions):
 
January 30, 2016
 
January 31, 2015
 
Gross Carrying
Amount
 
Cumulative
Impairment
 
Gross Carrying
Amount(1)
 
Cumulative
Impairment(1)
Goodwill
$
1,100

 
$
(675
)
 
$
1,100

 
$
(675
)

(1)
Excludes the gross carrying amount and cumulative impairment related to Five Star, which was held for sale at the end of fiscal 2015. The sale of Five Star was completed on February 13, 2015.
Insurance 
Insurance
 
We are self-insured for certain losses related to health, workers' compensation and general liability claims; however, we obtain third-party insurance coverage to limit our exposure to these claims. A portion of these self-insured losses are managed through a wholly-owned insurance captive. We estimate our self-insured liabilities using a number of factors, including historical claims experience, an estimate of incurred but not reported claims, demographic and severity factors, and valuations provided by independent third-party actuaries. Our self-insured liabilities included in the Consolidated Balance Sheets were as follows ($ in millions):
 
January 30, 2016
 
January 31, 2015
Accrued liabilities
$
62

 
$
60

Long-term liabilities
54

 
53

Total
$
116

 
$
113

Income Taxes 


Income Taxes

We account for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss and tax credit carry-forwards. We record a valuation allowance to reduce the carrying amounts of deferred tax assets if it is more likely than not that such assets will not be realized.

In determining our provision for income taxes, we use an annual effective income tax rate based on annual income, permanent differences between book and tax income, and statutory income tax rates. The effective income tax rate also reflects our assessment of the ultimate outcome of tax audits. We adjust our annual effective income tax rate as additional information on outcomes or events becomes available. Discrete events, such as audit settlements or changes in tax laws, are recognized in the period in which they occur.

Our income tax returns are periodically audited by U.S. federal, state and local and foreign tax authorities. At any one time, multiple tax years are subject to audit by the various tax authorities. In evaluating the tax benefits associated with our various tax filing positions, we record a tax benefit for uncertain tax positions using the highest cumulative tax benefit that is more likely than not to be realized. A number of years may elapse before a particular matter, for which we have established a liability, is audited and effectively settled. We adjust our liability for unrecognized tax benefits in the period in which we determine the issue is effectively settled with the tax authorities, the statute of limitations expires for the relevant taxing authority to examine the tax position or when more information becomes available. We include our liability for unrecognized tax benefits, including accrued penalties and interest, in accrued income taxes and long-term liabilities on our Consolidated Balance Sheets and in income tax expense in our Consolidated Statements of Earnings.

Accrued Liabilities 

Accrued Liabilities

The major components of accrued liabilities at January 30, 2016, and January 31, 2015, were state and local tax liabilities, rent-related liabilities including accrued real estate taxes, loyalty program liabilities and self-insurance reserves.

Long-Term Liabilities 

Long-Term Liabilities

The major components of long-term liabilities at January 30, 2016, and January 31, 2015, were unrecognized tax benefits, rent-related liabilities, deferred compensation plan liabilities, self-insurance reserves and deferred revenue.

Foreign Currency 

Foreign Currency

Foreign currency denominated assets and liabilities are translated into U.S. dollars using the exchange rates in effect at our consolidated balance sheet date. For operations reported on a one-month lag, we use the exchange rates in effect one month prior to our consolidated balance sheet date. Results of operations and cash flows are translated using the average exchange rates throughout the period. The effect of exchange rate fluctuations on the translation of assets and liabilities is included as a component of shareholders' equity in accumulated other comprehensive income. Gains and losses from foreign currency transactions, which are included in SG&A, have not been significant in any of the periods presented.

Revenue Recognition 

Revenue Recognition

We recognize revenue when the sales price is fixed or determinable, collection is reasonably assured and the customer takes possession of the merchandise, or in the case of services, the service has been provided. Revenue excludes sales taxes collected. Revenue from merchandise sales and services is reported net of sales returns, which includes an estimate of future returns based on historical return rates, with a corresponding reduction to cost of sales. Our sales returns reserve, which represents the estimated gross margin impact of returns, was $25 million and $25 million at January 30, 2016, and January 31, 2015, respectively.

For revenue transactions that involve multiple deliverables, we defer the revenue associated with any undelivered elements. The amount of revenue deferred in connection with the undelivered elements is determined using the relative fair value of each element, which is generally based on each element's relative retail price.
Our deferred revenues primarily relate to merchandise not yet delivered to customers, services not yet completed and technical support contracts not yet completed. At January 30, 2016, short-term deferred revenue was $357 million. At January 31, 2015, short-term deferred revenue was $376 million, of which $50 million is included in current liabilities held for sale in relation to the sale of Five Star. At January 30, 2016, and January 31, 2015, deferred revenue included within long-term liabilities in our Consolidated Balance Sheets was $45 million and $49 million, respectively.

Merchandise revenue
Revenue is recognized for store sales when the customer receives and pays for merchandise. In the case of items paid for in store but subsequently delivered to the customer, revenue is recognized once delivery has been completed.
For transactions initiated online, customers choose whether to collect merchandise from one of our stores (“in-store pick up”) or have it delivered to them (typically using third party parcel delivery companies). For in-store pick up, we recognize revenue once the customer has taken possession of merchandise. For items delivered directly to the customer, we recognize revenue when delivery has been completed. Any fees charged to customers for delivery are also recognized when delivery has been completed.
Services
Revenue related to consultation, design, installation, set-up, repair and educational classes are recognized once the service is complete. We sell various protection plans with extended warranty coverage for merchandise and technical support to assist customers in using their devices. Such plans have terms typically ranging from one month to five years. For extended warranty protection, third party insurers assume all risk associated with the coverage and are deemed to be the legal obligor. We record the net commissions we receive (the amount charged to the customer less the amount remitted to the insurer) as revenue when the corresponding merchandise revenue is recognized.
For technical support contracts, we assume responsibility for fulfilling the support to customers and we recognize the associated revenue either on a straight-line basis over the life of the contracts, or, if sufficient history is available, on a consumption basis.
Credit card revenue
We offer promotional financing and credit cards issued by third-party banks that manage and directly extend credit to our customers. The banks are the sole owners of the accounts receivable generated under the program and accordingly, we do not hold any consumer receivables related to these programs. We are eligible to receive a profit share from our banking partners based on the performance of the programs. We record such profit share as revenue once the portfolio period to which it relates is complete and we have sufficient evidence to estimate the amount.
Gift cards
We sell gift cards to our customers in our retail stores, online and through select third parties. We do not charge administrative fees on unused gift cards and our gift cards do not have an expiration date. We recognize revenue from gift cards when: (i) the gift card is redeemed by the customer, or (ii) the likelihood of the gift card being redeemed by the customer is remote ("gift card breakage"), and we determine that we do not have a legal obligation to remit the value of unredeemed gift cards to the relevant jurisdictions. We determine our gift card breakage rate based upon historical redemption patterns. Based on our historical information, the likelihood of a gift card remaining unredeemed can be determined 24 months after the gift card is issued. Gift card breakage income is included in revenue in our Consolidated Statements of Earnings. Gift card breakage income was $65 million, $19 million and $53 million in fiscal 2016, 2015 and 2014, respectively.

Sales Incentives
We frequently offer sales incentives that entitle our customers to receive a gift card at time of purchase or a reduction in the price of a product or service either at the point of sale or by submitting a claim for a refund (for example coupons, rebates, etc.). For sales incentives issued to the customer in conjunction with a sale of merchandise or services, the reduction in revenue is recognized at the time of sale, based on the expected retail value of the incentive expected to be redeemed.
Customer Loyalty Programs
We have customer loyalty programs which allow members to earn points for each qualifying purchase. Points earned enable members to receive a certificate that may be redeemed on future purchases at our Best Buy branded stores. Depending on the customer's membership level within our loyalty program, certificates expirations typically range from 2 to 12 months from the date of issuance. The retail value of points earned by our loyalty program members is included in accrued liabilities and recorded as a reduction of revenue at the time the points are earned, based on the percentage of points that are projected to be redeemed.
We recognize revenue when: (i) a certificate is redeemed by the customer; (ii) a certificate expires, or (iii) the likelihood of a certificate being redeemed by a customer is remote ("certificate breakage"). We determine our certificate breakage rate based upon historical redemption patterns.
Cost of Goods Sold 
Cost of Goods Sold and Selling, General and Administrative Expenses
The following table illustrates the primary costs classified in each major expense category:
Cost of Goods Sold
•
 
Total cost of products sold including:
 
 
—
 
Freight expenses associated with moving merchandise inventories from our vendors to our distribution centers;
 
 
—
 
Vendor allowances that are not a reimbursement of specific, incremental and identifiable costs; and
 
 
—
 
Cash discounts on payments to merchandise vendors;
•
 
Cost of services provided including:
 
 
—
 
Payroll and benefits costs for services employees; and
 
 
—
 
Cost of replacement parts and related freight expenses;
•
 
Physical inventory losses;
•
 
Markdowns;
•
 
Customer shipping and handling expenses;
•
 
Costs associated with operating our distribution network, including payroll and benefit costs, occupancy costs and depreciation; and
•
 
Freight expenses associated with moving merchandise inventories from our distribution centers to our retail stores.
SG&A
•
 
Payroll and benefit costs for retail and corporate employees;
•
 
Occupancy and maintenance costs of retail, services and corporate facilities;
•
 
Depreciation and amortization related to retail, services and corporate assets;
•
 
Advertising costs;
•
 
Vendor allowances that are a reimbursement of specific, incremental and identifiable costs to promote a vendor's products;
•
 
Tender costs, including bank charges and costs associated with credit and debit card interchange fees;
•
 
Charitable contributions;
•
 
Outside and outsourced service fees;
•
 
Long-lived asset impairment charges; and
•
 
Other administrative costs, such as supplies, travel and lodging.


Selling, General and Administrative Expenses 
Cost of Goods Sold and Selling, General and Administrative Expenses
The following table illustrates the primary costs classified in each major expense category:
Cost of Goods Sold
•
 
Total cost of products sold including:
 
 
—
 
Freight expenses associated with moving merchandise inventories from our vendors to our distribution centers;
 
 
—
 
Vendor allowances that are not a reimbursement of specific, incremental and identifiable costs; and
 
 
—
 
Cash discounts on payments to merchandise vendors;
•
 
Cost of services provided including:
 
 
—
 
Payroll and benefits costs for services employees; and
 
 
—
 
Cost of replacement parts and related freight expenses;
•
 
Physical inventory losses;
•
 
Markdowns;
•
 
Customer shipping and handling expenses;
•
 
Costs associated with operating our distribution network, including payroll and benefit costs, occupancy costs and depreciation; and
•
 
Freight expenses associated with moving merchandise inventories from our distribution centers to our retail stores.
SG&A
•
 
Payroll and benefit costs for retail and corporate employees;
•
 
Occupancy and maintenance costs of retail, services and corporate facilities;
•
 
Depreciation and amortization related to retail, services and corporate assets;
•
 
Advertising costs;
•
 
Vendor allowances that are a reimbursement of specific, incremental and identifiable costs to promote a vendor's products;
•
 
Tender costs, including bank charges and costs associated with credit and debit card interchange fees;
•
 
Charitable contributions;
•
 
Outside and outsourced service fees;
•
 
Long-lived asset impairment charges; and
•
 
Other administrative costs, such as supplies, travel and lodging.
Vendor Allowances 
Vendor Allowances
 
We receive allowances from certain vendors through a variety of programs and arrangements intended to offset our costs of promoting and selling merchandise inventories. Vendor allowances are primarily in the form of receipt-based funds or sell-through credits. Receipt-based funds are generally determined at an agreed percentage of purchases and are initially deferred and recorded as a reduction of merchandise inventories. The deferred amounts are then included as a reduction of cost of goods sold when the related product is sold. Sell-through credits are generally determined at an agreed percentage of sales and are recognized when the related product is sold. Vendor allowances provided as a reimbursement of specific, incremental and identifiable costs, such as specialized store labor or training costs, are included in SG&A as an expense reduction when the cost is incurred.
Advertising Costs 
Advertising Costs
 
Advertising costs, which are included in SG&A, are expensed the first time the advertisement runs. Advertising costs consist primarily of digital, print and television advertisements, as well as promotional events. Advertising expenses were $742 million, $711 million and $757 million in fiscal 2016, 2015 and 2014, respectively.
Stock-Based Compensation 
Stock-Based Compensation
 
We apply the fair value recognition provisions of accounting guidance as they relate to our stock-based compensation, which require us to recognize expense for the fair value of our stock-based compensation awards. We recognize compensation expense on a straight-line basis over the requisite service period of the award (or to an employee's eligible retirement date, if earlier).
Summary of Significant Accounting Policies (Tables)
12 Months Ended
Jan. 30, 2016
Jan. 31, 2015
Summary of Significant Accounting Policies [Abstract]
 
 
Schedule of New Accounting Pronouncements and Changes in Accounting Principles
 
Text Block 
Schedule of estimated useful lives by major asset category
Text Block 
 
Schedule of changes in carrying amount of goodwill and indefinite lived tradenames by segment
Text Block 
 
Schedule of goodwill
Text Block 
 
Schedule of self insurance liability
Text Block 
 
Schedule of primary costs, classified in each major expense category
Text Block 
 
Schedule of New Accounting Pronouncements and Changes in Accounting Principles 

The following table reconciles the balance sheet line items impacted by the adoption of these two standards for fiscal 2015:
Balance Sheet
2015 Reported
 
ASU 2015-03 & 2015-15 Adjustments
 
ASU 2015-17 Adjustments
 
2015 Adjusted
Other current assets
$
703

 
$
(2
)
 
$
(252
)
 
$
449

Current assets held for sale
684

 
—

 
(3
)
 
681

Other assets
583

 
(6
)
 
252

 
829

   Total assets
$
15,256

 
$
(8
)
 
$
(3
)
 
$
15,245

 
 
 
 
 
 
 
 
Long-term debt
$
1,580

 
$
(8
)
 
$
—

 
$
1,572

Long-term liabilities held for sale
18

 
—

 
(3
)
 
15

   Total liabilities & equity
$
15,256

 
$
(8
)
 
$
(3
)
 
$
15,245

Schedule of estimated useful lives by major asset category 
Estimated useful lives by major asset category are as follows:
Asset
 
Life
(in years)
Buildings
 
35
Leasehold improvements
 
3-25
Fixtures and equipment
 
3-20
Property under capital and financing leases
 
2-20
Schedule of changes in carrying amount of goodwill and indefinite lived tradenames by segment 

The changes in the carrying amount of goodwill and indefinite-lived tradenames by segment were as follows in fiscal 2016, 2015 and 2014 ($ in millions):
 
Goodwill
 
Indefinite-Lived Tradenames
 
Domestic
 
International
 
Total
 
Domestic
 
International
 
Total
Balances at February 2, 2013
$
528

 
$
—

 
$
528

 
$
19

 
$
112

 
$
131

Sale of business(1)
(103
)
 
—

 
(103
)
 
—

 
(22
)
 
(22
)
Impairments
—

 
—

 
—

 
—

 
(4
)
 
(4
)
Changes in foreign currency exchange rates
—

 
—

 
—

 
—

 
(4
)
 
(4
)
Balances at February 1, 2014
425

 
—

 
425

 
19

 
82

 
101

Sale of business(2)
—

 
—

 
—

 


 
(37
)
 
(37
)
Impairments
—

 
—

 
—

 
(1
)
 
—

 
(1
)
Changes in foreign currency exchange rates
—

 
—

 
—

 
—

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

 
—

 
425

 
18

 
39

 
57

Canada brand restructuring (3)
—

 
—

 
—

 
—

 
(40
)
 
(40
)
Changes in foreign currency exchange rates
—

 
—

 
—

 
—

 
1

 
1

Balances at January 30, 2016
$
425

 
$
—

 
$
425

 
$
18

 
$
—

 
$
18


(1)
Represents goodwill written off as a result of the sale of mindSHIFT in fiscal 2014 and indefinite-lived tradenames written off as a result of the sale of Best Buy Europe in fiscal 2014.
(2)
Primarily represents the Five Star indefinite-lived tradenames classified as held for sale at January 31, 2015.
(3)
Represents the Future Shop tradename impaired as a result of the Canada brand restructuring in the first quarter of fiscal 2016. See Note 4, Restructuring Charges, for further discussion.
Schedule of goodwill 
 
January 30, 2016
 
January 31, 2015
 
Gross Carrying
Amount
 
Cumulative
Impairment
 
Gross Carrying
Amount(1)
 
Cumulative
Impairment(1)
Goodwill
$
1,100

 
$
(675
)
 
$
1,100

 
$
(675
)

(1)
Excludes the gross carrying amount and cumulative impairment related to Five Star, which was held for sale at the end of fiscal 2015. The sale of Five Star was completed on February 13, 2015.
Schedule of self insurance liability 
Our self-insured liabilities included in the Consolidated Balance Sheets were as follows ($ in millions):
 
January 30, 2016
 
January 31, 2015
Accrued liabilities
$
62

 
$
60

Long-term liabilities
54

 
53

Total
$
116

 
$
113



Schedule of primary costs, classified in each major expense category 
The following table illustrates the primary costs classified in each major expense category:
Cost of Goods Sold
•
 
Total cost of products sold including:
 
 
—
 
Freight expenses associated with moving merchandise inventories from our vendors to our distribution centers;
 
 
—
 
Vendor allowances that are not a reimbursement of specific, incremental and identifiable costs; and
 
 
—
 
Cash discounts on payments to merchandise vendors;
•
 
Cost of services provided including:
 
 
—
 
Payroll and benefits costs for services employees; and
 
 
—
 
Cost of replacement parts and related freight expenses;
•
 
Physical inventory losses;
•
 
Markdowns;
•
 
Customer shipping and handling expenses;
•
 
Costs associated with operating our distribution network, including payroll and benefit costs, occupancy costs and depreciation; and
•
 
Freight expenses associated with moving merchandise inventories from our distribution centers to our retail stores.
SG&A
•
 
Payroll and benefit costs for retail and corporate employees;
•
 
Occupancy and maintenance costs of retail, services and corporate facilities;
•
 
Depreciation and amortization related to retail, services and corporate assets;
•
 
Advertising costs;
•
 
Vendor allowances that are a reimbursement of specific, incremental and identifiable costs to promote a vendor's products;
•
 
Tender costs, including bank charges and costs associated with credit and debit card interchange fees;
•
 
Charitable contributions;
•
 
Outside and outsourced service fees;
•
 
Long-lived asset impairment charges; and
•
 
Other administrative costs, such as supplies, travel and lodging.
Discontinued Operations (Tables)
Schedule of Assets and Liabilities Held-for-Sale [Table Text Block] 
The composition of assets and liabilities disposed of as a result of the sale of Five Star was as follows ($ in millions):
 
February 13, 2015
Cash and cash equivalents
$
125

Receivables
113

Merchandise inventories
252

All other assets
461

Total assets
$
951

 
 
Accounts payable
$
478

All other liabilities
128

Total liabilities
$
606

Disposal Groups, Including Discontinued Operations [Table Text Block] 
The aggregate financial results of all discontinued operations for fiscal 2016, 2015 and 2014 were as follows ($ in millions):
 
2016
 
2015
 
2014
Revenue
$
217

 
$
1,564

 
$
4,615

Restructuring charges(1)
1

 
18

 
110

Loss from discontinued operations before income tax benefit (expense)(2)
(8
)
 
(12
)
 
(235
)
Income tax benefit (expense)(3)
(1
)
 
—

 
31

Gain on sale of discontinued operations(4)
99

 
1

 
32

Net earnings (loss) from discontinued operations including noncontrolling interests
90

 
(11
)
 
(172
)
Net (earnings) loss from discontinued operations attributable to noncontrolling interests
—

 
(2
)
 
9

Net earnings (loss) from discontinued operations attributable to Best Buy Co., Inc. shareholders
$
90

 
$
(13
)
 
$
(163
)
(1)
See Note 4, Restructuring Charges, for further discussion of the restructuring charges associated with discontinued operations.
(2)
Includes a $175 million impairment to write down the book value of our investment in Best Buy Europe to fair value in fiscal 2014.
(3)
Income tax benefit for fiscal 2014 includes a $27 million benefit related to a tax allocation between continuing and discontinued operations and a $15 million benefit related to the impairment of our investment in Best Buy Europe. The fiscal 2014 effective tax rate for discontinued operations differs from the statutory tax rate primarily due to the previously mentioned tax allocation, sale of mindSHIFT, restructuring charges and the impairment of our investment in Best Buy Europe. The sale of mindSHIFT, restructuring charges and impairment generally included no related tax benefit. The deferred tax assets related to the sale of mindSHIFT and restructuring charges generally resulted in an increase in the valuation allowance in an equal amount, of which the investment impairment is not tax deductible.
(4)
Gain in fiscal 2014 is primarily comprised of the following: $28 million gain (with no tax impact) from sale of Best Buy Europe fixed-line business in Switzerland in the first quarter; $24 million gain (with no tax impact) from the sale of Best Buy Europe in the second quarter; and loss of $18 million from sale of mindSHIFT in the fourth quarter. Gain in fiscal 2016 of $99 million is from sale of Five Star in the first quarter.
Fair Value Measurements (Tables)
Fair value, assets and liabilities measured on recurring basis 
The following table sets forth by level within the fair value hierarchy, our financial assets and liabilities that were accounted for at fair value on a recurring basis at January 30, 2016, and January 31, 2015, according to the valuation techniques we used to determine their fair values ($ in millions):
 
 
 
Fair Value at
 
Fair Value Hierarchy
 
January 30, 2016
 
January 31, 2015
Assets
 
 
 
 
 
Cash and cash equivalents
 
 
 
 
 
Money market funds
Level 1
 
$
51

 
$
265

Corporate bonds
Level 2
 
—

 
13

Commercial paper
Level 2
 
265

 
165

Time deposits
Level 2
 
306

 
100

Short-term investments
 
 
 
 
 
Corporate bonds
Level 2
 
193

 
276

Commercial paper
Level 2
 
122

 
306

Time deposits
Level 2
 
990

 
874

Other current assets
 
 
 
 
 
Foreign currency derivative instruments
Level 2
 
18

 
30

Time deposits
Level 2
 
79

 
83

Other assets
 
 
 
 
 
Interest rate swap derivative instruments
Level 2
 
25

 
1

Auction rate securities
Level 3
 
2

 
2

Marketable securities that fund deferred compensation
Level 1
 
96

 
97

Assets held for sale
 
 
 
 
 
Cash and cash equivalents
 
 
 
 
 
Money market funds
Level 1
 
—

 
16

Time deposits
Level 2
 
—

 
124

Liabilities
 
 
 
 
 
Accrued Liabilities
 
 
 
 
 
Foreign currency derivative instruments
Level 2
 
1

 
—

 
Fair value, assets and liabilities measured on nonrecurring basis, fair value remeasurements (impairments) 
The following table summarizes the fair value remeasurements for non-restructuring property and equipment impairments and restructuring activities recorded in fiscal 2016 and 2015 ($ in millions):
 
2016
 
2015
 
Impairments
 
Remaining Net
Carrying Value(1)
 
Impairments
 
Remaining Net
Carrying Value (1)
Continuing operations
 
 
 
 
 
 
 
Property and equipment (non-restructuring)
$
61

 
$
15

 
$
42

 
$
19

Restructuring activities(2)
 
 
 
 
 
 
 
Property and equipment
30

 
—

 
1

 
—

Tradename
40

 
—

 
—

 
—

Total
$
131

 
$
15

 
$
43

 
$
19

Discontinued operations(3)
 
 
 
 
 
 
 
Property and equipment
$
—

 
$
—

 
$
1

 
$
—

Total
$
—

 
$
—

 
$
1

 
$
—

(1)
Remaining net carrying value approximates fair value.
(2)
See Note 4, Restructuring Charges, for additional information.
(3)
Property and equipment and tradename impairments associated with discontinued operations are recorded within loss from discontinued operations in our Consolidated Statements of Earnings.

Restructuring Charges (Tables)
Composition of restructuring charges 
Restructuring charges incurred in fiscal 2016, 2015, and 2014 were as follows ($ in millions):
 
2016
 
2015
 
2014
Continuing operations
 
 
 
 
 
Canadian brand consolidation
$
200

 
$
—

 
$
—

Renew Blue
(2
)
 
11

 
155

Other restructuring activities(1)
3

 
(6
)
 
(6
)
Total continuing operations
201

 
5

 
149

Discontinued operations
 
 
 
 
 
Renew Blue
—

 
18

 
10

Other restructuring activities(2)
—

 
—

 
100

Total
$
201

 
$
23

 
$
259

Restructuring accrual activity 
The following tables summarize our restructuring accrual activity during the fiscal 2016, related to termination benefits and facility closure and other costs associated with Canadian brand consolidation ($ in millions):
 
Termination
Benefits
 
Facility
Closure and
Other Costs
 
Total
Balances at January 31, 2015
$
—

 
$
—

 
$
—

Charges
28

 
113

 
141

Cash payments
(24
)
 
(47
)
 
(71
)
Adjustments(1)
(2
)
 
5

 
3

Changes in foreign currency exchange rates
—

 
(7
)
 
(7
)
Balances at January 30, 2016
$
2

 
$
64

 
$
66


(1) The adjustments related to termination benefits relate to higher-than-expected employee retention. Adjustments to facility closure and other costs represent changes in sublease assumptions.
Composition of restructuring charges 
The composition of total restructuring charges we incurred for the Canadian brand consolidation in fiscal 2016 was as follows ($ in millions):
 
International
Continuing operations
 
Inventory write-downs
$
3

Property and equipment impairments
30

Tradename impairment
40

Termination benefits
25

Facility closure and other costs
102

Total continuing operations
$
200

Restructuring accrual activity 
The following table summarizes our restructuring accrual activity during fiscal 2016 and 2015 related to termination benefits and facility closure and other costs associated with this program ($ in millions):
 
Termination Benefits
 
Facility
Closure and
Other Costs
 
Total
Balance at February 1, 2014
$
111

 
$
51

 
$
162

Charges
47

 
16

 
63

Cash payments
(121
)
 
(22
)
 
(143
)
Adjustments(1)
(21
)
 
(14
)
 
(35
)
Changes in foreign currency exchange rates
—

 
(8
)
 
(8
)
Balance at January 31, 2015
16

 
23

 
39

Charges
—

 
—

 
—

Cash payments
(7
)
 
(9
)
 
(16
)
Adjustments(1)
(7
)
 
(5
)
 
(12
)
Changes in foreign currency exchange rates
—

 
1

 
1

Balance at January 30, 2016
$
2

 
$
10

 
$
12

Composition of restructuring charges 
The composition of the restructuring charges we incurred for this program in fiscal 2016, 2015 and 2014, as well as the cumulative amount incurred through the end of fiscal 2016, was as follows ($ in millions):
 
Domestic
 
International
 
Total
 
2016
 
2015
 
2014
 
Cumulative Amount
 
2016
 
2015
 
2014
 
Cumulative Amount
 
2016
 
2015
 
2014
 
Cumulative Amount
Continuing operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Inventory write-downs
$
—

 
$
—

 
$
—

 
$
1

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
1

Property and equipment impairments
—

 
—

 
7

 
14

 
—

 
1

 
1

 
25

 
—

 
1

 
8

 
39

Termination benefits
(2
)
 
9

 
106

 
159

 
—

 
5

 
24

 
38

 
(2
)
 
14

 
130

 
197

Investment impairments
—

 
—

 
16

 
43

 
—

 
—

 
—

 
—

 
—

 
—

 
16

 
43

Facility closure and other costs
1

 
1

 
—

 
5

 
(1
)
 
(5
)
 
1

 
50

 
—

 
(4
)
 
1

 
55

Total continuing operations
(1
)
 
10

 
129

 
222

 
(1
)
 
1

 
26

 
113

 
(2
)
 
11

 
155

 
335

Discontinued Operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property and equipment impairments
—

 
—

 
—

 
—

 
—

 
—

 
1

 
1

 
—

 
—

 
1

 
1

Termination benefits
—

 
—

 
—

 
—

 
—

 
12

 
4

 
16

 
—

 
12

 
4

 
16

Facility closure and other costs
—

 
—

 
—

 
—

 
—

 
6

 
5

 
11

 
—

 
6

 
5

 
11

Total discontinued operations
—

 
—

 
—

 
—

 
—

 
18

 
10

 
28

 
—

 
18

 
10

 
28

Total
$
(1
)
 
$
10

 
$
129

 
$
222

 
$
(1
)
 
$
19

 
$
36

 
$
141

 
$
(2
)
 
$
29

 
$
165

 
$
363

Debt (Tables)
Schedule of long-term debt 
Long-term debt consisted of the following ($ in millions):
 
January 30, 2016
 
January 31, 2015
2016 Notes
$
350

 
$
350

2018 Notes
500

 
500

2021 Notes
650

 
650

Interest rate swap valuation adjustments
25

 
1

Other debt
—

 
1

Subtotal
1,525

 
1,502

Debt discounts and issuance costs
(7
)
 
(10
)
Financing lease obligations
178

 
69

Capital lease obligations
38

 
52

Total long-term debt
1,734

 
1,613

Less: current portion
(395
)
 
(41
)
Total long-term debt, less current portion
$
1,339

 
$
1,572



Schedule of future maturities of long-term debt, including capitalized leases 
At January 30, 2016, the future maturities of long-term debt, excluding debt discounts and issuance costs and financing and capital lease obligations (see Note 8, Leases, for the future lease obligation maturities), consisted of the following ($ in millions):
Fiscal Year
 
 
2017
 
$
350

2018
 
—

2019
 
517

2020
 
—

2021
 
—

Thereafter
 
658

Total long-term debt
 
$
1,525

Derivative Instruments (Tables)
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] 
The following table presents the gross fair values for outstanding derivative instruments and the corresponding classification at January 30, 2016 and January 31, 2015:
 
January 30, 2016
 
January 31, 2015
Contract Type
Assets
Liabilities
 
Assets
Liabilities
Derivatives designated as net investment hedges(1)
$
15

$
1

 
$
19

$
—

Derivatives designated as interest rate swaps(2)
25

—

 
1

—

No hedge designation (foreign exchange forward contracts)(1)
3

—

 
11

—

Total
$
43

$
1

 
$
31

$
—

(1)
The fair value is recorded in other current assets or accrued liabilities.
(2)
The fair value is recorded in other assets or long-term liabilities
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block] 
The following table presents the effects of derivative instruments on Other Comprehensive Income ("OCI") and on our Consolidated Statements of Earnings for fiscal 2016 and 2015:
 
2016
 
2015
Contract Type
Pre-tax Gain(Loss) Recognized in OCI
 
Gain(Loss) Reclassified from Accumulated OCI to Earnings (Effective Portion)
 
Pre-tax Gain(Loss) Recognized in OCI
 
Gain(Loss) Reclassified from Accumulated OCI to Earnings (Effective Portion)
Derivatives designated as net investment hedges
$
21

 
$
—

 
$
22

 
$
—

Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] 

The following table presents the effects of derivatives not designated as hedging instruments on our consolidated statements of earnings for fiscal 2016 and 2015:
 
Gain (Loss) Recognized within SG&A
Contract Type
2016
 
2015
No hedge designation (foreign exchange forward contracts)
$
4

 
$
12

Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] 
The following table presents the notional amounts of our derivative instruments at January 30, 2016 and January 31, 2015:
 
Notional Amount
Contract Type
January 30, 2016
 
January 31, 2015
Derivatives designated as net investment hedges
208

 
197

Derivatives designated as interest rate swaps
750

 
145

No hedge designation (foreign exchange forward contracts)
94

 
212

Total
1,052

 
554

Shareholders' Equity (Tables)
Stock-based compensation expense 
Stock-based compensation expense was as follows in fiscal 2016, 2015 and 2014 ($ in millions):
 
2016
 
2015
 
2014
Stock options
$
15

 
$
17

 
$
25

Share awards
 
 
 
 
 
Market-based
16

 
10

 
9

Time-based
73

 
60

 
62

Employee stock purchase plans
—

 
—

 
1

Total
$
104

 
$
87

 
$
97

Stock option activity 
Stock option activity was as follows in fiscal 2016:
 
Stock
Options
 
Weighted-Average Exercise Price per Share
 
Weighted-Average Remaining Contractual Term
(in years)
 
Aggregate
Intrinsic Value
(in millions)
Outstanding at January 31, 2015
17,342,000

 
$
36.81

 
 
 
 

Granted
1,267,000

 
$
40.68

 
 
 
 

Exercised
(1,432,000
)
 
$
28.24

 
 
 
 

Forfeited/Canceled
(2,935,000
)
 
$
44.15

 
 
 
 

Outstanding at January 30, 2016
14,242,000

 
$
36.51

 
4.7
 
$
20

Vested or expected to vest at January 30, 2016
13,986,000

 
$
36.47

 
4.6
 
$
20

Exercisable at January 30, 2016
11,668,000

 
$
37.09

 
3.8
 
$
18

Assumption used to estimate the fair value of stock option on the date of grant using a lattice or Black Scholes model 
In fiscal 2016, 2015 and 2014, we estimated the fair value of each stock option on the date of grant using a lattice or Black Scholes valuation model (for certain individuals) with the following assumptions:
Valuation Assumptions(1)
 
2016
 
2015
 
2014
Risk-free interest rate(2)
 
0.1% – 2.1%

 
0.1% – 2.4%

 
0.1% – 1.8%

Expected dividend yield
 
2.3
%
 
2.5
%
 
2.0
%
Expected stock price volatility(3)
 
37
%
 
40
%
 
46
%
Expected life of stock options (in years)(4)
 
6.0

 
6.0

 
5.9


(1)
Forfeitures are estimated using historical experience and projected employee turnover.
(2)
Based on the U.S. Treasury constant maturity interest rate whose term is consistent with the expected life of our stock options.
(3)
In projecting expected stock price volatility, we consider both the historical volatility of our stock price as well as implied volatilities from exchange-traded options on our stock.
(4)
We estimate the expected life of stock options based upon historical experience.

Summary of the status of nonvested market-based share awards 
A summary of the status of our nonvested market-based share awards at January 30, 2016, and changes during fiscal 2016, is as follows:
Market-Based Share Awards
 
Shares
 
Weighted-Average Fair Value per Share
Outstanding at January 31, 2015
 
1,704,000

 
$
24.16

Granted
 
758,000

 
$
31.48

Vested
 
(914,000
)
 
$
16.73

Forfeited/Canceled
 
(86,000
)
 
$
28.85

Outstanding at January 30, 2016
 
1,462,000

 
$
32.33

Summary of the status of nonvested time-based share awards 
A summary of the status of our nonvested time-based share awards at January 30, 2016, and changes during fiscal 2016, is as follows:
Time-Based Share Awards
 
Shares
 
Weighted-Average Fair Value per Share
Outstanding at January 31, 2015
 
5,543,000

 
$
24.40

Granted
 
2,683,000

 
$
38.72

Vested
 
(2,503,000
)
 
$
23.10

Forfeited/Canceled
 
(620,000
)
 
$
29.98

Outstanding at January 30, 2016
 
5,103,000

 
$
31.89

Summary of stock options outstanding 
At January 30, 2016, options to purchase 14.2 million shares of common stock were outstanding as follows (shares in millions):
 
Exercisable
 
Unexercisable
 
Total
 
Shares
 
%
 
Weighted-
Average Price
per Share
 
Shares
 
%
 
Weighted-
Average Price
per Share
 
Shares
 
%
 
Weighted-
Average Price
per Share
In-the-money
4.2

 
36
%
 
$
24.73

 
1.3

 
52
%
 
$
27.45

 
5.5

 
39
%
 
$
25.37

Out-of-the-money
7.5

 
64
%
 
$
44.15

 
1.2

 
48
%
 
$
40.51

 
8.7

 
61
%
 
$
43.62

Total
11.7

 
100
%
 
$
37.09

 
2.5

 
100
%
 
$
33.87

 
14.2

 
100
%
 
$
36.51

Reconciliation of the numerators and denominators of basic and diluted earnings per share 
The following table presents a reconciliation of the numerators and denominators of basic and diluted earnings per share from continuing operations attributable to Best Buy Co., Inc. in fiscal 2016, 2015 and 2014 ($, except per share amounts, and shares in millions):
 
2016
 
2015
 
2014
Numerator (in millions):
 
 
 
 
 
Net earnings from continuing operations attributable to Best Buy Co., Inc., shareholders
$
807

 
$
1,246

 
$
695

Denominator (in millions):
 
 
 
 
 
Weighted-average common shares outstanding
346.5

 
349.5

 
342.1

Effect of potentially dilutive securities:
 
 
 
 
 
Stock options and other
4.2

 
4.1

 
5.5

Weighted-average common shares outstanding, assuming dilution
350.7

 
353.6

 
347.6

Net earnings per share from continuing operations attributable to Best Buy Co., Inc. shareholders
 
 
 
 
 
Basic
$
2.33

 
$
3.57

 
$
2.03

Diluted
$
2.30

 
$
3.53

 
$
2.00

Repurchases of common stock 
The following table presents information regarding the shares we repurchased and retired in fiscal 2016, noting that we had no repurchases and retirements in fiscal 2015 and 2014 ($, except per share amounts, and shares in millions):
 
 
2016
Total cost of shares repurchased
 
 
Open market
 
$
880

January 2016 ASR
 
120

     Total
 
$
1,000

 
 
 
Average price per share
 
 
Open market
 
$
31.03

January 2016 ASR
 
$
27.28

     Average
 
$
30.53

 
 
 
Number of shares repurchased and retired
 
 
Open market
 
28.4

January 2016 ASR
 
4.4

     Total
 
32.8

Components of accumulated other comprehensive income, net of tax 
The following table provides a reconciliation of the components of accumulated other comprehensive income, net of tax, attributable to Best Buy Co., Inc. shareholders for fiscal 2016, 2015, and 2014, respectively ($ in millions):
 
Foreign Currency Translation
 
Available-For-Sale Investments
 
Total
Balances at February 2, 2013
$
113

 
$
(1
)
 
$
112

Foreign currency translation adjustments
(136
)
 
—

 
(136
)
Unrealized gains on available-for-sale investments
—

 
7

 
7

Reclassification of foreign currency translation adjustments into earnings due to sale of business
508

 
—

 
508

Reclassification of losses on available-for-sale investments into earnings
—

 
1

 
1

Balances at February 1, 2014
$
485

 
$
7

 
$
492

Foreign currency translation adjustments
(103
)
 
—

 
(103
)
Unrealized losses on available-for-sale investments
—

 
(3
)
 
(3
)
Reclassification of gains on available-for-sale investments into earnings
—

 
(4
)
 
(4
)
Balances at January 31, 2015
$
382

 
$
—

 
$
382

Foreign currency translation adjustments
(44
)
 
—

 
(44
)
Reclassification of foreign currency translation adjustments into earnings
(67
)
 
—

 
(67
)
Balances at January 30, 2016
$
271

 
$
—

 
$
271

Leases (Tables)
Schedule of composition of net rent expense for operating leases, including leases of property and equipment 
The composition of net rent expense for all operating leases, including leases of property and equipment, was as follows in fiscal 2016, 2015 and 2014 ($ in millions):
 
2016
 
2015
 
2014
Minimum rentals
$
797

 
$
848

 
$
864

Contingent rentals
1

 
2

 
2

Total rent expense
798

 
850

 
866

Less: sublease income
(15
)
 
(18
)
 
(18
)
Net rent expense
$
783

 
$
832

 
$
848

Schedule of future minimum lease payments under capital, financing and operating leases (not including contingent rentals) 
The future minimum lease payments under our capital, financing and operating leases by fiscal year (not including contingent rentals) at January 30, 2016, were as follows ($ in millions):
Fiscal Year
 
Capital
Leases
 
Financing
Leases
 
Operating
Leases(1)
2017
 
$
14

 
$
42

 
$
813

2018
 
9

 
35

 
708

2019
 
6

 
29

 
572

2020
 
3

 
23

 
439

2021
 
2

 
17

 
310

Thereafter
 
12

 
66

 
521

Total minimum lease payments
 
46

 
212

 
$
3,363

Less amount representing interest
 
(8
)
 
(34
)
 
 
Present value of minimum lease payments
 
38

 
178

 
 
Less current maturities
 
(12
)
 
(33
)
 
 

Present value of minimum lease maturities, less current maturities
 
$
26

 
$
145

 
 


(1)
Operating lease obligations do not include payments to landlords covering real estate taxes and common area maintenance. These charges, if included, would increase total operating lease obligations by $1.1 billion at January 30, 2016.
Income Taxes (Tables)
Reconciliation of the federal statutory income tax rate to income tax expense 
The following is a reconciliation of the federal statutory income tax rate to income tax expense in fiscal 2016, 2015 and 2014 ($ in millions):
 
2016
 
2015
 
2014
Federal income tax at the statutory rate
$
458

 
$
485

 
$
379

State income taxes, net of federal benefit
38

 
43

 
26

(Benefit) expense from foreign operations
5

 
(23
)
 
(23
)
Other
2

 
(11
)
 
6

Legal entity reorganization
—

 
(353
)
 
—

Income tax expense
$
503

 
$
141

 
$
388

Effective income tax rate
38.4
%
 
10.1
%
 
35.8
%

Earning before income tax expense and equity in income (loss) of affiliates 
Earnings from continuing operations before income tax expense by jurisdiction was as follows in fiscal 2016, 2015 and 2014 ($ in millions):
 
2016
 
2015
 
2014
United States
$
1,310

 
$
1,201

 
$
699

Outside the United States
—

 
186

 
384

Earnings from continuing operations before income tax expense
$
1,310

 
$
1,387

 
$
1,083

Components of income tax expense 
Income tax expense was comprised of the following in fiscal 2016, 2015 and 2014 ($ in millions):
 
2016
 
2015
 
2014
Current:
 
 
 
 
 
Federal
$
347

 
$
354

 
$
305

State
48

 
51

 
46

Foreign
60

 
33

 
55

 
455

 
438

 
406

Deferred:
 
 
 
 
 
Federal
65

 
(275
)
 
(22
)
State
10

 
(26
)
 
1

Foreign
(27
)
 
4

 
3

 
48

 
(297
)
 
(18
)
Income tax expense
$
503

 
$
141

 
$
388

Deferred income tax assets and liabilities 
Deferred taxes are the result of differences between the bases of assets and liabilities for financial reporting and income tax purposes. Deferred tax assets and liabilities were comprised of the following ($ in millions):
 
January 30, 2016
 
January 31, 2015
Accrued property expenses
$
175

 
$
129

Other accrued expenses
78

 
91

Deferred revenue
99

 
93

Compensation and benefits
99

 
103

Stock-based compensation
86

 
94

Goodwill and intangibles
253

 
287

Loss and credit carryforwards
133

 
156

Other
86

 
88

Total deferred tax assets
1,009

 
1,041

Valuation allowance
(108
)
 
(143
)
Total deferred tax assets after valuation allowance
901

 
898

Property and equipment
(296
)
 
(251
)
Inventory
(69
)
 
(54
)
Other
(26
)
 
(27
)
Total deferred tax liabilities
(391
)
 
(332
)
Net deferred tax assets
$
510

 
$
566

Schedule of deferred tax assets and liabilities included in consolidated balance sheets 
Deferred tax assets and liabilities included in our Consolidated Balance Sheets were as follows ($ in millions):
 
January 30, 2016
 
January 31, 2015
Other assets
$
510

 
$
574

Long-term liabilities held for sale
—

 
(8
)
Net deferred tax assets
$
510

 
$
566

Reconciliation of changes in unrecognized tax benefits 
The following table provides a reconciliation of changes in unrecognized tax benefits for fiscal 2016, 2015 and 2014 ($ in millions):
 
2016
 
2015
 
2014
Balance at beginning of period
$
410

 
$
370

 
$
383

Gross increases related to prior period tax positions
30

 
33

 
38

Gross decreases related to prior period tax positions
(13
)
 
(88
)
 
(67
)
Gross increases related to current period tax positions
59

 
114

 
34

Settlements with taxing authorities
(9
)
 
(9
)
 
(3
)
Lapse of statute of limitations
(8
)
 
(10
)
 
(15
)
Balance at end of period
$
469

 
$
410

 
$
370

Segment and Geographic Information (Tables)
Business segment information 
The following tables present our business segment information in fiscal 2016, 2015 and 2014 ($ in millions):
 
2016
 
2015
 
2014
Revenue
 
 
 
 
 
Domestic
$
36,365

 
$
36,055

 
$
35,831

International
3,163

 
4,284

 
4,780

Total revenue
$
39,528

 
$
40,339

 
$
40,611

Percentage of revenue, by revenue category
 
 
 
 
 
Domestic:
 
 
 
 
 
Consumer Electronics
32
%
 
31
%
 
30
%
Computing and Mobile Phones
46
%
 
47
%
 
48
%
Entertainment
8
%
 
9
%
 
8
%
Appliances
8
%
 
7
%
 
7
%
Services
5
%
 
5
%
 
6
%
Other
1
%
 
1
%
 
1
%
Total
100
%
 
100
%
 
100
%
International:
 
 
 
 
 
Consumer Electronics
31
%
 
30
%
 
29
%
Computing and Mobile Phones
48
%
 
49
%
 
50
%
Entertainment
9
%
 
9
%
 
10
%
Appliances
5
%
 
5
%
 
5
%
Services
6
%
 
6
%
 
6
%
Other
1
%
 
1
%
 
< 1%

Total
100
%
 
100
%
 
100
%
Operating income (loss)
 
 
 
 
 
Domestic
$
1,585

 
$
1,437

 
$
1,145

International
(210
)
 
13

 
(1
)
Total operating income
1,375

 
1,450

 
1,144

Other income (expense)
 
 
 
 
 
Gain on sale of investments
2

 
13

 
20

Investment income and other
13

 
14

 
19

Interest expense
(80
)
 
(90
)
 
(100
)
Earnings from continuing operations before income tax expense
$
1,310

 
$
1,387

 
$
1,083

Assets(1)(2)
 
 
 
 
 
Domestic
$
12,318

 
$
12,987

 
$
11,123

International
1,201

 
2,258

 
2,867

Total assets
$
13,519

 
$
15,245

 
$
13,990

Capital expenditures(2)
 
 
 
 
 
Domestic
$
602

 
$
519

 
$
440

International
47

 
42

 
107

Total capital expenditures
$
649

 
$
561

 
$
547

Depreciation(2)
 
 
 
 
 
Domestic
$
613

 
$
575

 
$
565

International
44

 
81

 
136

Total depreciation
$
657

 
$
656

 
$
701


(1)
For fiscal 2015 and 2014, assets are recast to present our retrospective adoption of ASU 2015-17 Balance Sheet Classification of Deferred Taxes, ASU 2015-03 Simplifying the Presentation of Debt Issuance Costs, and ASU 2015-15 Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. Refer to Note 1, Summary of Significant Accounting Policies, of the Notes to Consolidated Financial Statements, included in Item 8, Financial Statements and Supplementary Data, of this Annual Report on Form 10-K for further information about our credit facilities.
(2)
For fiscal 2015 and 2014, the International segment amounts for assets, capital expenditures and depreciation include amounts from Five Star.
Schedule of geographic information 
The following table presents our geographic information in fiscal 2016, 2015 and 2014 ($ in millions):
 
2016
 
2015
 
2014
Net sales to customers
 
 
 
 
 
United States
$
36,365

 
$
36,055

 
$
35,831

Canada
2,917

 
4,047

 
4,522

Other
246

 
237

 
258

Total revenue
$
39,528

 
$
40,339

 
$
40,611

Long-lived assets
 
 
 
 
 
United States
$
2,189

 
$
2,100

 
$
2,190

Canada
140

 
174

 
244

China
—

 
—

 
139

Other
17

 
21

 
25

Total long-lived assets
$
2,346

 
$
2,295

 
$
2,598

Supplementary Financial Information (Unaudited) (Tables)
Schedule of supplementary financial information
The following tables show selected operating results for each 3-month quarter and full year of fiscal 2016 and 2015 (unaudited) ($ in millions):
 
Quarter
 
12-Month
 
1st
 
2nd
 
3rd
 
4th
 
2016
Revenue
$
8,558

 
$
8,528

 
$
8,819

 
$
13,623

 
$
39,528

Comparable sales % change(1)
0.6
 %
 
3.8
%
 
0.8
%
 
(1.7
)%
 
0.5
 %
Comparable sales % gain (decline), excluding estimated impact of installment billing(5)
(0.7
)%
 
2.7
%
 
0.5
%
 
(1.8
)%
 
(0.1
)%
Gross profit
$
2,030

 
$
2,098

 
$
2,112

 
$
2,951

 
$
9,191

Operating income(2)
86

 
288

 
230

 
771

 
1,375

Net earnings from continuing operations
37

 
164

 
129

 
477

 
807

Gain (loss) from discontinued operations, net of tax
92

 
—

 
(4
)
 
2

 
90

Net earnings including noncontrolling interests
129

 
164

 
125

 
479

 
897

Net earnings attributable to Best Buy Co., Inc. shareholders
129

 
164

 
125

 
479

 
897

Diluted earnings (loss) per share(3)
 
 
 
 
 
 
 
 
 
Continuing operations
$
0.10

 
$
0.46

 
$
0.37

 
$
1.39

 
$
2.30

Discontinued operations
0.26

 
—

 
(0.01
)
 
0.01

 
0.26

Diluted earnings per share
$
0.36

 
$
0.46

 
$
0.36

 
$
1.40

 
$
2.56


 
Quarter
 
12-Month
 
1st
 
2nd
 
3rd
 
4th
 
2015
Revenue
$
8,639

 
$
8,459

 
$
9,032

 
$
14,209

 
$
40,339

Comparable sales % gain (decline)(1)
(1.8
)%
 
(2.2
)%
 
2.9
%
 
2.0
%
 
0.5
%
Comparable sales % gain (decline), excluding estimated impact of installment billing(5)(6)
(1.8
)%
 
(2.2
)%
 
2.2
%
 
1.3
%
 
—
%
Gross profit
$
1,967

 
$
1,978

 
$
2,076

 
$
3,026

 
$
9,047

Operating income(4)
210

 
225

 
205

 
810

 
1,450

Net earnings from continuing operations
469

 
137

 
116

 
524

 
1,246

Gain (loss) from discontinued operations, net of tax
(8
)
 
10

 
(9
)
 
(4
)
 
(11
)
Net earnings including noncontrolling interests
461

 
147

 
107

 
520

 
1,235

Net earnings attributable to Best Buy Co., Inc. shareholders
461

 
146

 
107

 
519

 
1,233

Diluted earnings (loss) per share(3)
 
 
 
 
 
 
 
 
 
Continuing operations
$
1.33

 
$
0.39

 
$
0.33

 
$
1.47

 
$
3.53

Discontinued operations
(0.02
)
 
0.03

 
(0.03
)
 
(0.01
)
 
(0.04
)
Diluted earnings per share
$
1.31

 
$
0.42

 
$
0.30

 
$
1.46

 
$
3.49

(1)
Our comparable sales calculation compares revenue from stores, websites and call centers operating for at least 14 full months, as well as revenue related to certain other comparable sales channels for a particular period to a corresponding period in the prior year. Relocated, as well as remodeled, expanded and downsized stores closed more than 14 days, are excluded from our comparable sales calculation until at least 14 full months after reopening. Acquisitions are included in the comparable sales calculation beginning with the first full quarter following the first anniversary of the date of the acquisition. The portion of the calculation of comparable sales attributable to our International segment excludes the effect of fluctuations in foreign currency exchange rates. The calculation of comparable sales excludes the impact of revenue from discontinued operations. Comparable online sales are included in our comparable sales calculation. The method of calculating comparable sales varies across the retail industry. As a result, our method of calculating comparable sales may not be the same as other retailers' methods.
(2)
Includes $186 million, $(4) million, $7 million and $12 million of restructuring charges recorded in the fiscal first, second, third and fourth quarters, respectively, and $201 million for the 12 months ended January 30, 2016 related to measures we took to restructure our businesses.
(3)
The sum of our quarterly diluted earnings per share does not equal our annual diluted earnings per share due to differences in quarterly and annual weighted-average shares outstanding.
(4)
Includes $2 million, $5 million, $5 million and $(7) million of restructuring charges recorded in the fiscal first, second, third and fourth quarters, respectively, and $5 million for the 12 months ended January 31, 2015 related to measures we took to restructure our businesses.
(5)
Represents comparable sales excluding the estimated revenue of installment billing.
(6)
Enterprise comparable sales for fiscal 2015 include revenue from continuing operations in the International segment. Excluding the International segment, Enterprise comparable sales, excluding the impact of installment billing, would have been (1.3%) in the first quarter, 2.0% in the second quarter, 2.4% in the third quarter, 0.5% in the fourth quarter and 0.5% for fiscal 2015, or equal to Domestic comparable sales excluding the impact of installment billing, for the same periods.
Summary of Significant 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. 30, 2016
segments
Accounting Policies [Abstract]
 
Number of Operating Segments
2 
Summary of Significant Accounting Policies - Basis of Presentation (Details)
12 Months Ended
Jan. 30, 2016
Jan. 31, 2015
Accounting Policies [Abstract]
 
 
Period of Expiration for Customer Loyalty Certificates, High End of Range
12 months 
12 months 
Reporting Lag for Certain Foreign Operations in Financial Statements
1 month 
 
Summary of Significant Accounting Policies - Fiscal Year (Details)
12 Months Ended
Jan. 30, 2016
Fiscal Year [Abstract]
 
Number of Weeks in Fiscal Period
52 
Summary of Significant Accounting Policies - Changes in accounting policies (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 31, 2015
Other Current Assets [Member] |
As reported [Member]
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification
$ 703 
Other Current Assets [Member] |
Accounting Standards Update 2015-03 and 2015-15 [Member]
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification
(2)
Other Current Assets [Member] |
Accounting Standards Update 2015-17 [Member]
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification
(252)
Other Current Assets [Member] |
Adjusted Balance [Member]
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification
449 
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] |
As reported [Member]
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification
684 
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] |
Accounting Standards Update 2015-03 and 2015-15 [Member]
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification
0 
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] |
Accounting Standards Update 2015-17 [Member]
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification
(3)
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] |
Adjusted Balance [Member]
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification
681 
Other Assets [Member] |
As reported [Member]
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification
583 
Other Assets [Member] |
Accounting Standards Update 2015-03 and 2015-15 [Member]
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification
(6)
Other Assets [Member] |
Accounting Standards Update 2015-17 [Member]
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification
252 
Other Assets [Member] |
Adjusted Balance [Member]
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification
829 
Assets, Total [Member] |
As reported [Member]
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification
15,256 
Assets, Total [Member] |
Accounting Standards Update 2015-03 and 2015-15 [Member]
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification
(8)
Assets, Total [Member] |
Accounting Standards Update 2015-17 [Member]
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification
(3)
Assets, Total [Member] |
Adjusted Balance [Member]
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification
15,245 
Long-term Debt [Member] |
As reported [Member]
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification
1,580 
Long-term Debt [Member] |
Accounting Standards Update 2015-03 and 2015-15 [Member]
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification
(8)
Long-term Debt [Member] |
Accounting Standards Update 2015-17 [Member]
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification
0 
Long-term Debt [Member] |
Adjusted Balance [Member]
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification
1,572 
Long-Term Liabilities Held-for-Sale [Member] |
As reported [Member]
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification
18 
Long-Term Liabilities Held-for-Sale [Member] |
Accounting Standards Update 2015-03 and 2015-15 [Member]
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification
0 
Long-Term Liabilities Held-for-Sale [Member] |
Accounting Standards Update 2015-17 [Member]
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification
(3)
Long-Term Liabilities Held-for-Sale [Member] |
Adjusted Balance [Member]
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification
15 
Liabilities, Total [Member] |
As reported [Member]
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification
15,256 
Liabilities, Total [Member] |
Accounting Standards Update 2015-03 and 2015-15 [Member]
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification
(8)
Liabilities, Total [Member] |
Accounting Standards Update 2015-17 [Member]
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification
(3)
Liabilities, Total [Member] |
Adjusted Balance [Member]
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification
$ 15,245 
Summary of Significant Accounting Policies - Cash & Cash Equivalents (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 30, 2016
Jan. 31, 2015
Accounting Policies [Abstract]
 
 
Maximum Term of Original Maturity to Classify an Instrument as Cash Equivalents
 
3 months 
Cash Equivalents, at Carrying Value
$ 1,208 
$ 1,660 
Weighted Average Interest Rate on Cash Equivalents
0.50% 
0.40% 
Summary of Significant Accounting Policies - Receivables (Details) (USD $)
In Millions, unless otherwise specified
Jan. 30, 2016
Jan. 31, 2015
Accounting Policies [Abstract]
 
 
Valuation Allowances and Reserves, Balance
$ 49 
$ 59 
Summary of Significant Accounting Policies - Restricted Assets (Details) (USD $)
In Millions, unless otherwise specified
Jan. 30, 2016
Jan. 31, 2015
Accounting Policies [Abstract]
 
 
Restricted Cash and Investments
$ 185 
$ 292 
Restricted Cash and Investments, Continuing Operations
 
184 
Restricted Cash and Investments, Held-for-Sale
 
$ 108 
Summary of Significant Accounting Policies - PP&E (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 30, 2016
Jan. 31, 2015
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
$ 165 
$ 44 
 
 
 
 
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation
$ 107 
$ 75 
 
 
 
 
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. 30, 2016
Jan. 31, 2015
Accounting Policies [Abstract]
 
 
Asset Retirement Obligation, Current
$ 44 
$ 26 
Asset Retirement Obligations, Noncurrent
$ 54 
$ 43 
Summary of Significant Accounting Policies - Leases (Details) (USD $)
12 Months Ended
Jan. 30, 2016
Jan. 31, 2015
Accounting Policies [Abstract]
 
 
Term of Lease Agreements, Low End of Range
10 years 
 
Term of Lease Agreements, High End of Range
20 years 
 
Deferred Rent Credit, Current
$ 36,000,000 
$ 31,000,000 
Deferred Rent Credit, Noncurrent
139,000,000 
195,000,000 
Financing Lease Obligations
$ 178,000,000 
$ 69,000,000 
Summary of Significant Accounting Policies - Goodwill & Indefinite Intangible (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 30, 2016
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Goodwill [Roll Forward]
 
 
 
 
Goodwill, balance at the end of the period
$ 425 
$ 425 
 
 
Indefinite-lived Intangible Assets [Roll Forward]
 
 
 
 
Goodwill, Gross
1,100 
1,100 1
 
 
Cumulative Impairment
(675)
(675)1
 
 
International [Member]
 
 
 
 
Goodwill [Roll Forward]
 
 
 
 
Goodwill written off related to sale of business
 
 
0 
 
Domestic Segment [Member]
 
 
 
 
Goodwill [Roll Forward]
 
 
 
 
Goodwill written off related to sale of business
 
 
(103)2
 
Indefinite-lived Intangible Assets [Roll Forward]
 
 
 
 
Intangible written off related to sale of business
 
 
0 
 
Total Operations [Member]
 
 
 
 
Goodwill [Roll Forward]
 
 
 
 
Goodwill, balance at the beginning of the period
425 
425 
528 
 
Goodwill impairments
 
0 
 
 
Goodwill written off related to sale of business
 
0 
(103)2
 
Goodwill changes in foreign currency exchange rates
0 
0 
 
 
Goodwill, balance at the end of the period
425 
425 
425 
 
Goodwill, Other Changes
 
 
0 
 
Indefinite-lived Intangible Assets [Roll Forward]
 
 
 
 
Indefinite-Lived Intangible Assets (Excluding Goodwill)
18 
57 
101 
131 
Tradename, impairments
(40)3
(1)
(4)
 
Intangible written off related to sale of business
 
(37)4
(22)2
 
Intangible changes in foreign currency exchange rates
1 
(6)
 
 
Indefinite-Lived Intangible Assets, Other
 
 
(4)
 
Total Operations [Member] |
International [Member]
 
 
 
 
Goodwill [Roll Forward]
 
 
 
 
Goodwill, balance at the beginning of the period
0 
0 
0 
 
Goodwill acquisitions
 
0 
 
 
Goodwill impairments
0 
0 
0 
 
Goodwill changes in foreign currency exchange rates
0 
0 
0 
 
Goodwill, balance at the end of the period
0 
0 
0 
 
Indefinite-lived Intangible Assets [Roll Forward]
 
 
 
 
Indefinite-Lived Intangible Assets (Excluding Goodwill)
0 
39 
82 
112 
Tradename, impairments
(40)3
0 
(4)
 
Intangible written off related to sale of business
 
(37)4
(22)2
 
Intangible changes in foreign currency exchange rates
1 
(6)
(4)
 
Total Operations [Member] |
Domestic Segment [Member]
 
 
 
 
Goodwill [Roll Forward]
 
 
 
 
Goodwill, balance at the beginning of the period
425 
425 
528 
 
Goodwill impairments
0 
0 
0 
 
Goodwill written off related to sale of business
 
0 
 
 
Goodwill changes in foreign currency exchange rates
0 
0 
0 
 
Goodwill, balance at the end of the period
425 
425 
425 
 
Indefinite-lived Intangible Assets [Roll Forward]
 
 
 
 
Indefinite-Lived Intangible Assets (Excluding Goodwill)
18 
18 
19 
19 
Intangible acquisitions
 
   
 
 
Tradename, impairments
0 
(1)
0 
 
Intangible changes in foreign currency exchange rates
$ 0 
$ 0 
$ 0 
 
Summary of Significant Accounting Policies - Insurance (Details) (USD $)
In Millions, unless otherwise specified
Jan. 30, 2016
Jan. 31, 2015
Accounting Policies [Abstract]
 
 
Self-insured liabilities included in accrued liabilities
$ 62 
$ 60 
Self-insured liabilities included in long-term liabilities
54 
53 
Self insurance reserve
$ 116 
$ 113 
Summary of Significant Accounting Policies - Foreign Currency (Details)
12 Months Ended
Jan. 30, 2016
Accounting Policies [Abstract]
 
Prior Period Foreign Currency Exchange Rate, Used to Align Operations Reported
1 month 
Summary of Significant Accounting Policies - Revenue (Details) (USD $)
In Millions, unless otherwise specified
Jan. 30, 2016
Jan. 31, 2015
Accounting Policies [Abstract]
 
 
Sales returns reserve
$ 25 
$ 25 
Deferred revenue
357 
326 
Deferred Revenue, Current, Including Held-for-Sale
 
376 
Disposal Group, Including Discontinued Operation, Deferred Revenue, Current
 
50 
Deferred revenue, noncurrent
$ 45 
$ 49 
Summary of Significant Accounting Policies - Gift Cards (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 30, 2016
Jan. 31, 2015
Feb. 1, 2014
Accounting Policies [Abstract]
 
 
 
Gift Card Redeemability, Determination Period
24 months 
 
 
Gift card breakage income
$ 65 
$ 19 
$ 53 
Summary of Significant Accounting Policies - Customer Loyalty Programs (Details)
12 Months Ended
Jan. 30, 2016
Jan. 31, 2015
Accounting Policies [Abstract]
 
 
Period of Expiration for Customer Loyalty Certificates, Low End of Range
2 months 
2 months 
Period of Expiration for Customer Loyalty Certificates, High End of Range
12 months 
12 months 
Summary of Significant Accounting Policies - Advertising Costs (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 30, 2016
Jan. 31, 2015
Feb. 1, 2014
Accounting Policies [Abstract]
 
 
 
Advertising expense
$ 742 
$ 711 
$ 757 
Discontinued Operations Discontinued Operations (Details) (USD $)
In Millions, unless otherwise specified
Jan. 30, 2016
Feb. 13, 2015
Discontinued Operations and Disposal Groups [Abstract]
 
 
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment
$ 31 
 
Cash and cash equivalents
 
125 
Receivables
 
113 
Merchandise inventories
 
252 
All other assets
 
461 
Total assets
 
951 
Accounts payable
 
478 
All other liabilities
 
128 
Total liabilities
 
$ 606 
Discontinued Operations (Details 2)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended
Jan. 30, 2016
USD ($)
Oct. 31, 2015
USD ($)
Aug. 1, 2015
USD ($)
May 2, 2015
USD ($)
Jan. 31, 2015
USD ($)
Nov. 1, 2014
USD ($)
Aug. 2, 2014
USD ($)
May 3, 2014
USD ($)
Aug. 3, 2013
USD ($)
Aug. 3, 2013
GBP (£)
Jan. 30, 2016
USD ($)
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 ($)
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 
 
 
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
 
 
 
 
 
 
 
 
 
 
217 
1,564 
 
4,615 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
 
 
1 1
18 1
 
110 1
 
 
 
 
 
 
 
Gain (loss) from discontinued operations before income tax benefit
 
 
 
 
 
 
 
 
 
 
(8)
(12)
 
(235)2
 
 
 
 
 
 
 
Income tax benefit
 
 
 
 
 
 
 
 
 
 
(1)
0 
 
31 3
 
 
 
 
 
 
 
Gain on sale of discontinued operations
 
 
 
 
 
 
 
 
 
 
99 4
1 4
 
32 4
24 
28 
(18)
 
 
 
 
Net gain (loss) from discontinued operations including noncontrolling interests
2 
(4)
0 
92 
(4)
(9)
10 
(8)
 
 
90 
(11)
 
(172)
 
 
 
 
 
 
 
Net (earnings) loss from discontinued operations attributable to noncontrolling interests
 
 
 
 
 
 
 
 
 
 
0 
(2)
 
9 
 
 
 
 
 
 
 
Net gain (loss) from discontinued operations attributable to Best Buy Co., Inc.
 
 
 
 
 
 
 
 
 
 
90 
(13)
 
(163)
 
 
 
 
 
 
 
Income Tax Expense (Benefit), Intraperiod Tax Allocation
 
 
 
 
 
 
 
 
 
 
 
 
 
27 
 
 
 
 
 
 
 
Other Tax Expense (Benefit)
 
 
 
 
 
 
 
 
 
 
 
 
 
15 
 
 
 
 
 
 
 
Derivative, Notional Amount
1,052 
 
 
 
554 
 
 
 
 
 
1,052 
554 
 
 
 
 
 
 
 
455 
 
Net Proceeds from Divestiture of Businesses
 
 
 
 
 
 
 
 
 
 
 
 
471 
 
 
 
 
 
 
 
 
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments
 
 
 
 
 
 
 
 
 
 
$ (4)
$ (12)
 
 
 
 
 
 
 
 
$ (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. 30, 2016
Jan. 31, 2015
Cash and Cash Equivalents [Member] |
Fair Value, Inputs, Level 1 [Member] |
Money Market Funds [Member]
 
 
ASSETS
 
 
Cash and cash equivalents
$ 51 
$ 265 
Cash and Cash Equivalents, Held-for-sale, Fair Value Disclosure
 
16 
Cash and Cash Equivalents [Member] |
Fair Value, Inputs, Level 2 [Member] |
Corporate Bond Securities [Member]
 
 
ASSETS
 
 
Cash and cash equivalents
 
13 
Cash and Cash Equivalents [Member] |
Fair Value, Inputs, Level 2 [Member] |
Commercial Paper [Member]
 
 
ASSETS
 
 
Cash and cash equivalents
265 
165 
Cash and Cash Equivalents [Member] |
Fair Value, Inputs, Level 2 [Member] |
Bank Time Deposits [Member]
 
 
ASSETS
 
 
Cash and cash equivalents
306 
100 
Cash and Cash Equivalents, Held-for-sale, Fair Value Disclosure
 
124 
Short-term Investments [Member] |
Fair Value, Inputs, Level 2 [Member] |
Corporate Bond Securities [Member]
 
 
ASSETS
 
 
Short-term investments
193 
276 
Short-term Investments [Member] |
Fair Value, Inputs, Level 2 [Member] |
Commercial Paper [Member]
 
 
ASSETS
 
 
Short-term investments
122 
306 
Short-term Investments [Member] |
Fair Value, Inputs, Level 2 [Member] |
Bank Time Deposits [Member]
 
 
ASSETS
 
 
Short-term investments
990 
874 
Other Current Assets [Member] |
Fair Value, Inputs, Level 2 [Member] |
Bank Time Deposits [Member]
 
 
ASSETS
 
 
Other Current Assets, Fair Value Disclosure
79 
83 
Other Current Assets [Member] |
Fair Value, Inputs, Level 2 [Member] |
Foreign Exchange and Other Derivative Financial Instruments [Member]
 
 
ASSETS
 
 
Foreign currency derivative instruments
18 
30 
Other Assets [Member] |
Fair Value, Inputs, Level 1 [Member] |
Marketable securities that fund deferred compensation [Member]
 
 
ASSETS
 
 
Marketable equity securities that fund deferred compensation
96 
97 
Other Assets [Member] |
Fair Value, Inputs, Level 2 [Member] |
Interest Rate Swap [Member]
 
 
ASSETS
 
 
Other Assets, Fair Value Disclosure
25 
1 
Other Assets [Member] |
Fair Value, Inputs, Level 3 [Member] |
Auction Rate Securities [Member]
 
 
ASSETS
 
 
Other Assets, Fair Value Disclosure
2 
2 
Accrued Liabilities [Member] |
Fair Value, Inputs, Level 2 [Member] |
Foreign Exchange and Other Derivative Financial Instruments [Member]
 
 
ASSETS
 
 
Foreign Currency Contracts, Liability, Fair Value Disclosure
$ 1 
$ 0 
Fair Value Measurements - Impairments (Details) (Fair Value, Measurements, Nonrecurring [Member], Fair Value, Inputs, Level 3 [Member], USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 30, 2016
Jan. 31, 2015
Continuing Operations [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Property and equipment, impairments
$ 61 
$ 42 
Property and equipment, remaining net carrying value
15 1
19 1
Restructuring, Settlement and Impairment Provisions
131 
43 
Total remaining net carrying value
15 1
19 1
Discontinued Operations [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Impairment of Long-Lived Assets Held-for-use
0 
 
Property and equipment, impairments
0 
1 2
Property and equipment, remaining net carrying value
0 
0 
Total remaining net carrying value
0 
0 
Property and equipment write-downs [Member] |
Continuing Operations [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Impairment of Long-Lived Assets Held-for-use
30 3
 
Property and equipment, impairments
 
1 3
Property and equipment, remaining net carrying value
0 
0 
Investments Impairment Charge Related to Restructuring [Member] |
Continuing Operations [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Tradename, impairments
40 3
0 
Tradename, remaining net carrying value
$ 0 
$ 0 
Restructuring Charges Summary (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Jan. 30, 2016
Oct. 31, 2015
Aug. 1, 2015
May 2, 2015
Jan. 31, 2015
Nov. 1, 2014
Aug. 2, 2014
May 3, 2014
Jan. 30, 2016
Jan. 31, 2015
Feb. 1, 2014
Jan. 30, 2016
Continuing Operations [Member]
Jan. 31, 2015
Continuing Operations [Member]
Feb. 1, 2014
Continuing Operations [Member]
Jan. 30, 2016
Continuing Operations [Member]
Restructuring Program Canadian Brand Consolidation [Member]
Jan. 30, 2016
Continuing Operations [Member]
Restructuring Program 2013 Renew Blue [Member] [Domain]
Jan. 31, 2015
Continuing Operations [Member]
Restructuring Program 2013 Renew Blue [Member] [Domain]
Feb. 1, 2014
Continuing Operations [Member]
Restructuring Program 2013 Renew Blue [Member] [Domain]
Jan. 30, 2016
Continuing Operations [Member]
Other Restructuring [Member]
Jan. 31, 2015
Continuing Operations [Member]
Other Restructuring [Member]
Feb. 1, 2014
Continuing Operations [Member]
Other Restructuring [Member]
Jan. 30, 2016
Continuing Operations [Member]
International [Member]
Restructuring Program Canadian Brand Consolidation [Member]
Jan. 31, 2015
Discontinued Operations [Member]
Restructuring Program 2013 Renew Blue [Member] [Domain]
Feb. 1, 2014
Discontinued Operations [Member]
Restructuring Program 2013 Renew Blue [Member] [Domain]
Feb. 1, 2014
Discontinued Operations [Member]
Other Restructuring [Member]
Feb. 28, 2009
Best Buy Europe [Member]
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vacant Space Reserve
$ 18 
 
 
 
 
 
 
 
$ 18 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Acquisition, Percentage of Voting Interests Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
50.00% 
Restructuring charges
 
 
 
 
 
 
 
 
198 
5 
149 
201 
5 
149 
200 
(2)
11 
155 
3 1
(6)1
(6)1
200 
 
 
 
 
Restructuring charges
$ 12 
$ 7 
$ (4)
$ 186 
$ (7)
$ 5 
$ 5 
$ 2 
$ 201 
$ 23 
$ 259 
$ 201 
$ 5 
 
 
 
 
 
 
 
 
$ 200 
$ 18 
$ 10 
$ 100 2
 
Restructuring Charges Canadian Brand Consolidation (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Jan. 30, 2016
Oct. 31, 2015
Aug. 1, 2015
May 2, 2015
Jan. 31, 2015
Nov. 1, 2014
Aug. 2, 2014
May 3, 2014
Jan. 30, 2016
Jan. 31, 2015
Feb. 1, 2014
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
$ 198 
$ 5 
$ 149 
Restructuring charges
12 
7 
(4)
186 
(7)
5 
5 
2 
201 
23 
259 
Restructuring Program Canadian Brand Consolidation [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Number of Stores to be Closed
 
 
 
 
 
 
 
 
66 
 
 
Payments for Restructuring
 
 
 
 
 
 
 
 
(71)
 
 
Restructuring Reserve, Accrual Adjustment
 
 
 
 
 
 
 
 
3 1
 
 
Restructuring Reserve, Translation Adjustment
 
 
 
 
 
 
 
 
(7)
 
 
Restructuring Reserve
66 
 
 
 
0 
 
 
 
66 
0 
 
Restructuring Charges, Rollforward
 
 
 
 
 
 
 
 
141 
 
 
Number of Future Shop stores converted to Best Buy stores
 
 
 
 
 
 
 
 
65 
 
 
Employee Severance [Member] |
Restructuring Program Canadian Brand Consolidation [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Payments for Restructuring
 
 
 
 
 
 
 
 
(24)
 
 
Restructuring Reserve, Accrual Adjustment
 
 
 
 
 
 
 
 
(2)1
 
 
Restructuring Reserve, Translation Adjustment
 
 
 
 
 
 
 
 
0 
 
 
Restructuring Reserve
2 
 
 
 
 
 
 
 
2 
 
 
Restructuring Charges, Rollforward
 
 
 
 
 
 
 
 
28 
 
 
Facility Closing [Member] |
Restructuring Program Canadian Brand Consolidation [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Payments for Restructuring
 
 
 
 
 
 
 
 
(47)
 
 
Restructuring Reserve, Accrual Adjustment
 
 
 
 
 
 
 
 
5 1
 
 
Restructuring Reserve, Translation Adjustment
 
 
 
 
 
 
 
 
(7)
 
 
Restructuring Reserve
64 
 
 
 
0 
 
 
 
64 
0 
 
Restructuring Charges, Rollforward
 
 
 
 
 
 
 
 
113 
 
 
Continuing Operations [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
201 
5 
149 
Restructuring charges
 
 
 
 
 
 
 
 
201 
5 
 
Continuing Operations [Member] |
Restructuring Program Canadian Brand Consolidation [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
200 
 
 
Continuing Operations [Member] |
International [Member] |
Restructuring Program Canadian Brand Consolidation [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
200 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
200 
 
 
Continuing Operations [Member] |
International [Member] |
Inventory write-downs [Member] |
Restructuring Program Canadian Brand Consolidation [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
3 
 
 
Continuing Operations [Member] |
International [Member] |
Property and equipment write-downs [Member] |
Restructuring Program Canadian Brand Consolidation [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
30 
 
 
Continuing Operations [Member] |
International [Member] |
Tradename Impairment [Member] |
Restructuring Program Canadian Brand Consolidation [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
40 
 
 
Continuing Operations [Member] |
International [Member] |
Employee Severance [Member] |
Restructuring Program Canadian Brand Consolidation [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
25 
 
 
Continuing Operations [Member] |
International [Member] |
Facility Closing [Member] |
Restructuring Program Canadian Brand Consolidation [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
$ 102 
 
 
Restructuring Charges Renew Blue Plan (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Jan. 30, 2016
Oct. 31, 2015
Aug. 1, 2015
May 2, 2015
Jan. 31, 2015
Nov. 1, 2014
Aug. 2, 2014
May 3, 2014
Jan. 30, 2016
Jan. 31, 2015
Feb. 1, 2014
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
$ 198 
$ 5 
$ 149 
Restructuring charges
12 
7 
(4)
186 
(7)
5 
5 
2 
201 
23 
259 
Continuing Operations [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
201 
5 
149 
Restructuring charges
 
 
 
 
 
 
 
 
201 
5 
 
Restructuring Program 2013 Renew Blue [Member] [Domain]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
(2)
29 
 
Restructuring and Related Cost, Cost Incurred to Date
363 
 
 
 
 
 
 
 
363 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
(2)
29 
165 
Restructuring Reserve
12 
 
 
 
39 
 
 
 
12 
39 
162 
Restructuring Charges, Rollforward
 
 
 
 
 
 
 
 
0 
63 
 
Payments for Restructuring
 
 
 
 
 
 
 
 
(16)
(143)
 
Restructuring Reserve, Accrual Adjustment
 
 
 
 
 
 
 
 
(12)1
(35)1
 
Restructuring Reserve, Translation Adjustment
 
 
 
 
 
 
 
 
1 
 
 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Employee Severance [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Reserve
2 
 
 
 
16 
 
 
 
2 
16 
111 
Restructuring Charges, Rollforward
 
 
 
 
 
 
 
 
0 
47 
 
Payments for Restructuring
 
 
 
 
 
 
 
 
(7)
(121)
 
Restructuring Reserve, Accrual Adjustment
 
 
 
 
 
 
 
 
(7)1
(21)1
 
Restructuring Reserve, Translation Adjustment
 
 
 
 
 
 
 
 
0 
 
 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Facility Closing [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Reserve
10 
 
 
 
23 
 
 
 
10 
23 
51 
Restructuring Charges, Rollforward
 
 
 
 
 
 
 
 
0 
16 
 
Payments for Restructuring
 
 
 
 
 
 
 
 
(9)
(22)
 
Restructuring Reserve, Accrual Adjustment
 
 
 
 
 
 
 
 
(5)1
(14)1
 
Restructuring Reserve, Translation Adjustment
 
 
 
 
 
 
 
 
1 
 
 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Domestic Segment [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring and Related Cost, Cost Incurred to Date
222 
 
 
 
 
 
 
 
222 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
(1)
10 
129 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
International [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
(1)
19 
 
Restructuring and Related Cost, Cost Incurred to Date
141 
 
 
 
 
 
 
 
141 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
(1)
19 
36 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Continuing Operations [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring and Related Cost, Cost Incurred to Date
335 
 
 
 
 
 
 
 
335 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
(2)
11 
155 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Continuing Operations [Member] |
Inventory write-downs [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring and Related Cost, Cost Incurred to Date
1 
 
 
 
 
 
 
 
1 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
 
 
0 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Continuing Operations [Member] |
Property and equipment write-downs [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring and Related Cost, Cost Incurred to Date
39 
 
 
 
 
 
 
 
39 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
0 
1 
8 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Continuing Operations [Member] |
Investments Impairment Charge Related to Restructuring [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring and Related Cost, Cost Incurred to Date
43 
 
 
 
 
 
 
 
43 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
0 
0 
16 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Continuing Operations [Member] |
Employee Severance [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring and Related Cost, Cost Incurred to Date
197 
 
 
 
 
 
 
 
197 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
(2)
14 
130 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Continuing Operations [Member] |
Facility Closing [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring and Related Cost, Cost Incurred to Date
55 
 
 
 
 
 
 
 
55 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
0 
(4)
1 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Continuing Operations [Member] |
Domestic Segment [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
(1)
10 
 
Restructuring and Related Cost, Cost Incurred to Date
222 
 
 
 
 
 
 
 
222 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
(1)
10 
129 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Continuing Operations [Member] |
Domestic Segment [Member] |
Inventory write-downs [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring and Related Cost, Cost Incurred to Date
1 
 
 
 
 
 
 
 
1 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
0 
 
0 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Continuing Operations [Member] |
Domestic Segment [Member] |
Property and equipment write-downs [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring and Related Cost, Cost Incurred to Date
14 
 
 
 
 
 
 
 
14 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
0 
 
7 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Continuing Operations [Member] |
Domestic Segment [Member] |
Investments Impairment Charge Related to Restructuring [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring and Related Cost, Cost Incurred to Date
43 
 
 
 
 
 
 
 
43 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
 
0 
16 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Continuing Operations [Member] |
Domestic Segment [Member] |
Employee Severance [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring and Related Cost, Cost Incurred to Date
159 
 
 
 
 
 
 
 
159 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
(2)
9 
106 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Continuing Operations [Member] |
Domestic Segment [Member] |
Facility Closing [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring and Related Cost, Cost Incurred to Date
5 
 
 
 
 
 
 
 
5 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
1 
1 
0 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Continuing Operations [Member] |
International [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring and Related Cost, Cost Incurred to Date
113 
 
 
 
 
 
 
 
113 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
(1)
1 
26 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Continuing Operations [Member] |
International [Member] |
Inventory write-downs [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring and Related Cost, Cost Incurred to Date
0 
 
 
 
 
 
 
 
0 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
0 
 
 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Continuing Operations [Member] |
International [Member] |
Property and equipment write-downs [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring and Related Cost, Cost Incurred to Date
25 
 
 
 
 
 
 
 
25 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
0 
1 
1 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Continuing Operations [Member] |
International [Member] |
Investments Impairment Charge Related to Restructuring [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring and Related Cost, Cost Incurred to Date
0 
 
 
 
 
 
 
 
0 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
0 
0 
 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Continuing Operations [Member] |
International [Member] |
Employee Severance [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring and Related Cost, Cost Incurred to Date
38 
 
 
 
 
 
 
 
38 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
0 
5 
24 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Continuing Operations [Member] |
International [Member] |
Facility Closing [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring and Related Cost, Cost Incurred to Date
50 
 
 
 
 
 
 
 
50 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
(1)
(5)
1 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Discontinued Operations [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring and Related Cost, Cost Incurred to Date
28 
 
 
 
 
 
 
 
28 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
0 
18 
10 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Discontinued Operations [Member] |
Property and equipment write-downs [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring and Related Cost, Cost Incurred to Date
1 
 
 
 
 
 
 
 
1 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
 
0 
1 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Discontinued Operations [Member] |
Employee Severance [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring and Related Cost, Cost Incurred to Date
16 
 
 
 
 
 
 
 
16 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
0 
12 
4 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Discontinued Operations [Member] |
Facility Closing [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring and Related Cost, Cost Incurred to Date
11 
 
 
 
 
 
 
 
11 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
0 
6 
5 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Discontinued Operations [Member] |
Domestic Segment [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring and Related Cost, Cost Incurred to Date
0 
 
 
 
 
 
 
 
0 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
0 
0 
0 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Discontinued Operations [Member] |
International [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring and Related Cost, Cost Incurred to Date
28 
 
 
 
 
 
 
 
28 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
0 
18 
10 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Discontinued Operations [Member] |
International [Member] |
Property and equipment write-downs [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring and Related Cost, Cost Incurred to Date
1 
 
 
 
 
 
 
 
1 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
 
0 
1 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Discontinued Operations [Member] |
International [Member] |
Employee Severance [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring and Related Cost, Cost Incurred to Date
16 
 
 
 
 
 
 
 
16 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
0 
12 
4 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Discontinued Operations [Member] |
International [Member] |
Facility Closing [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring and Related Cost, Cost Incurred to Date
11 
 
 
 
 
 
 
 
11 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
0 
6 
5 
Restructuring Program Canadian Brand Consolidation [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Reserve
66 
 
 
 
0 
 
 
 
66 
0 
 
Restructuring Charges, Rollforward
 
 
 
 
 
 
 
 
141 
 
 
Payments for Restructuring
 
 
 
 
 
 
 
 
(71)
 
 
Restructuring Reserve, Accrual Adjustment
 
 
 
 
 
 
 
 
(3)2
 
 
Restructuring Reserve, Translation Adjustment
 
 
 
 
 
 
 
 
(7)
 
 
Restructuring Program Canadian Brand Consolidation [Member] |
Employee Severance [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Reserve
2 
 
 
 
 
 
 
 
2 
 
 
Restructuring Charges, Rollforward
 
 
 
 
 
 
 
 
28 
 
 
Payments for Restructuring
 
 
 
 
 
 
 
 
(24)
 
 
Restructuring Reserve, Accrual Adjustment
 
 
 
 
 
 
 
 
2 2
 
 
Restructuring Reserve, Translation Adjustment
 
 
 
 
 
 
 
 
0 
 
 
Restructuring Program Canadian Brand Consolidation [Member] |
Facility Closing [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Reserve
64 
 
 
 
0 
 
 
 
64 
0 
 
Restructuring Charges, Rollforward
 
 
 
 
 
 
 
 
113 
 
 
Payments for Restructuring
 
 
 
 
 
 
 
 
(47)
 
 
Restructuring Reserve, Accrual Adjustment
 
 
 
 
 
 
 
 
(5)2
 
 
Restructuring Reserve, Translation Adjustment
 
 
 
 
 
 
 
 
(7)
 
 
Restructuring Program Canadian Brand Consolidation [Member] |
Continuing Operations [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
200 
 
 
Restructuring Program Canadian Brand Consolidation [Member] |
Continuing Operations [Member] |
International [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
200 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
200 
 
 
Restructuring Program Canadian Brand Consolidation [Member] |
Continuing Operations [Member] |
International [Member] |
Inventory write-downs [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
3 
 
 
Restructuring Program Canadian Brand Consolidation [Member] |
Continuing Operations [Member] |
International [Member] |
Property and equipment write-downs [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
30 
 
 
Restructuring Program Canadian Brand Consolidation [Member] |
Continuing Operations [Member] |
International [Member] |
Tradename Impairment [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
40 
 
 
Restructuring Program Canadian Brand Consolidation [Member] |
Continuing Operations [Member] |
International [Member] |
Employee Severance [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
25 
 
 
Restructuring Program Canadian Brand Consolidation [Member] |
Continuing Operations [Member] |
International [Member] |
Facility Closing [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
102 
 
 
Restructuring Program 2013 Renew Blue [Member] [Domain]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Reserve, Translation Adjustment
 
 
 
 
 
 
 
 
 
(8)
 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Employee Severance [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Reserve, Translation Adjustment
 
 
 
 
 
 
 
 
 
0 
 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Facility Closing [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Reserve, Translation Adjustment
 
 
 
 
 
 
 
 
 
(8)
 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Continuing Operations [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
(2)
11 
155 
Restructuring Program 2013 Renew Blue [Member] [Domain] |
Discontinued Operations [Member]
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
 
$ 18 
$ 10 
Debt - Short-Term Debt (Details) (USD $)
In Millions, unless otherwise specified
Jan. 30, 2016
U.S. revolving credit facility [Member]
 
Short-term Debt
 
Line of credit facility, amount outstanding
$ 0 
U.S. revolving credit facility - Five-Year [Member]
 
Short-term Debt
 
Line of Credit Facility, Previous Borrowing Capacity
1,500 
Line of credit facility, current borrowing capacity
$ 1,250 
Debt instrument, basis spread on federal funds rate (as a percent)
0.50% 
Debt instrument, basis spread on LIBOR (as a percent)
1.00% 
Debt instrument, lower range on ABR (as a percent)
0.00% 
Debt instrument, higher range on ABR (as a percent)
0.925% 
LIBOR margin, low end of the range (as a percent)
1.00% 
LIBOR margin, high end of the range (as a percent)
1.925% 
Debt instrument, lower range on facility fee (as a percent)
0.125% 
Debt instrument, higher range on facility fee (as a percent)
0.325% 
Debt - Long-Term Debt (Details) (USD $)
1 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended
Jan. 30, 2016
Jan. 31, 2015
Mar. 31, 2011
2016 and 2021 Notes [Member]
Jan. 30, 2016
2016 and 2021 Notes [Member]
Jan. 30, 2016
2016 Notes [Member]
Jan. 31, 2015
2016 Notes [Member]
Mar. 31, 2011
2016 Notes [Member]
Jul. 31, 2013
Notes due 2018 [Member]
Jan. 30, 2016
Notes due 2018 [Member]
Jan. 31, 2015
Notes due 2018 [Member]
Jul. 16, 2013
Notes due 2018 [Member]
Jan. 30, 2016
2021 Notes [Member]
Jan. 31, 2015
2021 Notes [Member]
Mar. 31, 2011
2021 Notes [Member]
Jan. 30, 2016
Interest Rate Swap [Member]
Jan. 31, 2015
Interest Rate Swap [Member]
Jan. 30, 2016
Capital Lease Obligations [Member]
Jan. 31, 2015
Capital Lease Obligations [Member]
Jan. 30, 2016
Debt discounts and issuance costs [Member]
Jan. 31, 2015
Debt discounts and issuance costs [Member]
Jan. 30, 2016
Other debt [Member]
Jan. 31, 2015
Other debt [Member]
Jan. 30, 2016
Notes due 2018 [Member]
Long-term Debt.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total long-term debt
$ 1,525,000,000 
$ 1,502,000,000 
 
 
$ 350,000,000 
$ 350,000,000 
 
 
$ 500,000,000 
$ 500,000,000 
 
$ 650,000,000 
$ 650,000,000 
 
$ 25,000,000 
$ 1,000,000 
$ 38,000,000 
$ 52,000,000 
$ (7,000,000)
$ (10,000,000)
$ 0 
$ 1,000,000 
 
Financing Lease Obligations
178,000,000 
69,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt and Capital Lease Obligations, Including Current Maturities
1,734,000,000 
1,613,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Less: current portion
(395,000,000)
(41,000,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt, Excluding Current Maturities
1,339,000,000 
1,572,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt, fair value
1,543,000,000 
1,494,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument issued, principal amount
 
 
 
 
 
 
350,000,000 
 
 
 
500,000,000 
 
 
650,000,000 
 
 
 
 
 
 
 
 
 
Interest rate (as a percent)
 
 
 
 
3.75% 
 
 
 
 
 
5.00% 
5.50% 
 
 
 
 
 
 
 
 
 
 
 
Underwriting discounts
 
 
6,000,000 
 
 
 
 
5,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net proceeds from the sale of the Notes
 
 
990,000,000 
 
 
 
 
495,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2017
350,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2018
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2019
517,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2020
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2021
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Thereafter
$ 658,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Instruments (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 30, 2016
Jan. 31, 2015
Derivatives, Fair Value [Line Items]
 
 
Derivative Asset, Fair Value, Gross Asset
$ 43 
$ 31 
Derivative Liability, Fair Value, Gross Liability
1 
0 
Derivative, Notional Amount
1,052 
554 
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments
4 
12 
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax
21 
22 
Net Investment Hedging [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Asset, Fair Value, Gross Asset
15 1
19 1
Derivative Liability, Fair Value, Gross Liability
1 1
 
Derivative, Notional Amount
208 
197 
Interest Rate Swap [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Asset, Fair Value, Gross Asset
25 2
1 2
Derivative, Notional Amount
750 
145 
Foreign Exchange Forward [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Asset, Fair Value, Gross Asset
3 1
11 1
Derivative Liability, Fair Value, Gross Liability
 
0 1
Derivative, Notional Amount
$ 94 
$ 212 
Shareholders' Equity (Details) (USD $)
In Millions, except Share data, unless otherwise specified
11 Months Ended 12 Months Ended
Feb. 2, 2013
Jan. 30, 2016
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)
 
19,600,000 
 
 
Stock-based compensation expense (in dollars)
 
$ 104 
$ 87 
$ 97 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
 
 
 
 
Outstanding at the beginning of the period (in shares)
 
17,342,000 
 
 
Granted (in shares)
 
1,267,000 
 
 
Exercised (in shares)
 
(1,432,000)
 
 
Forfeited/Canceled (in shares)
 
(2,935,000)
 
 
Outstanding at the end of the period (in shares)
 
14,242,000 
17,342,000 
 
Vested or expected to vest at the end of the period (in shares)
 
13,986,000 
 
 
Exercisable at the end of the period (in shares)
 
11,668,000 
 
 
Weighted Average Exercise Price [Roll Forward]
 
 
 
 
Outstanding at the beginning of the period (in dollars per share)
 
$ 36.81 
 
 
Granted (in dollars per share)
 
$ 40.68 
 
 
Exercised (in dollars per share)
 
$ 28.24 
 
 
Forfeited/Canceled (in dollars per share)
 
$ 44.15 
 
 
Outstanding at the end of the period (in dollars per share)
 
$ 36.51 
$ 36.81 
 
Vested or expected to vest at the end of the period (in dollars per share)
 
$ 36.47 
 
 
Exercisable at the end of the period (in dollars per share)
 
$ 37.09 
 
 
Weighted Average Remaining Contractual Term, Years [Abstract]
 
 
 
 
Outstanding at the end of the period (in years)
 
4 years 8 months 
 
 
Vested or expected to vest at the end of the period (in years)
 
4 years 7 months 
 
 
Exercisable at the end of the period (in years)
 
3 years 10 months 
 
 
Aggregate Intrinsic Value [Abstract]
 
 
 
 
Outstanding at the end of the period (in dollars)
 
20 
 
 
Vested or expected to vest at the end of the period (in dollars)
 
20 
 
 
Exercisable at the end of the period (in dollars)
 
18 
 
 
Weighted-average grant-date fair value of stock options granted (in dollars per share)
 
$ 11.59 
$ 9.09 
$ 7.77 
Aggregate intrinsic value of stock options exercised (in dollars)
 
14 
13 
39 
Net cash proceeds from the exercise of stock options (in dollars)
 
40 
42 
158 
Actual income tax benefit realized from stock option exercises (in dollars)
 
5 
5 
13 
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
 
 
 
 
Risk-free interest rate low end of the range (as a percent)
 
0.10% 1 2
0.10% 1 2
0.10% 1 2
Risk-free interest rate high end of the range (as a percent)
 
2.10% 1 2
2.40% 1 2
1.80% 1 2
Expected dividend yield (as a percent)
 
2.30% 1
2.50% 1
2.00% 1
Expected stock price volatility (as a percent)
 
37.00% 1 3
40.00% 1 3
46.00% 1 3
Expected life of stock options (in years)
 
6 years 1 4
6 years 1 4
5 years 10 months 24 days 1 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)
 
15 
17 
25 
Aggregate Intrinsic Value [Abstract]
 
 
 
 
Unrecognized compensation (in dollars)
 
15 
 
 
Weighted-average period over which compensation expense is expected to be recognized (in years)
 
1 year 2 months 
 
 
Market-based [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Stock-based compensation expense (in dollars)
 
16 
10 
9 
Aggregate Intrinsic Value [Abstract]
 
 
 
 
Unrecognized compensation (in dollars)
 
19 
 
 
Weighted-average period over which compensation expense is expected to be recognized (in years)
 
1 year 10 months 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward]
 
 
 
 
Outstanding at the beginning of the period (in shares)
 
1,704,000 
 
 
Granted (in shares)
 
758,000 
 
 
Vested (in shares)
 
(914,000)
 
 
Forfeited/Canceled (in shares)
 
(86,000)
 
 
Outstanding at the end of the period (in shares)
 
1,462,000 
1,704,000 
 
Weighted Average Fair Value Per Share [Roll Forward]
 
 
 
 
Outstanding at the beginning of the period (in dollars per share)
 
$ 24.16 
 
 
Granted (in dollars per share)
 
$ 31.48 
 
 
Vested (in dollars per share)
 
$ 16.73 
 
 
Forfeited/Canceled (in dollars per share)
 
$ 28.85 
 
 
Outstanding at the end of the period (in dollars per share)
 
$ 32.33 
$ 24.16 
 
Time-based [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Share-based Payment Award, Award Vesting Period, Minimum
 
3 years 
 
 
Share-based Payment Award, Award Vesting Period, Maximum
 
4 years 
 
 
Vesting percentage per increment, options vesting in annual increments
 
25% of the award vests on the date of grant and 25% vests on each of the three anniversary dates thereafter 
 
 
Annual vesting percentage, options vesting in annual increments
 
25.00% 
 
 
Stock-based compensation expense (in dollars)
 
73 
60 
62 
Aggregate Intrinsic Value [Abstract]
 
 
 
 
Unrecognized compensation (in dollars)
 
85 
 
 
Weighted-average period over which compensation expense is expected to be recognized (in years)
 
1 year 10 months 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward]
 
 
 
 
Outstanding at the beginning of the period (in shares)
 
5,543,000 
 
 
Granted (in shares)
 
2,683,000 
 
 
Vested (in shares)
 
(2,503,000)
 
 
Forfeited/Canceled (in shares)
 
(620,000)
 
 
Outstanding at the end of the period (in shares)
 
5,103,000 
5,543,000 
 
Weighted Average Fair Value Per Share [Roll Forward]
 
 
 
 
Outstanding at the beginning of the period (in dollars per share)
 
$ 24.40 
 
 
Granted (in dollars per share)
 
$ 38.72 
 
 
Vested (in dollars per share)
 
$ 23.10 
 
 
Forfeited/Canceled (in dollars per share)
 
$ 29.98 
 
 
Outstanding at the end of the period (in dollars per share)
 
$ 31.89 
$ 24.40 
 
Employee Stock [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Issuance of common stock under employee stock purchase plan (in shares)
 
200,000 
300,000 
600,000 
Discounted purchase rate on the market price of the stock (as a percent)
15.00% 
5.00% 
 
5.00% 
Stock-based compensation expense (in dollars)
 
0 
0 
1 
Weighted Average Fair Value Per Share [Roll Forward]
 
 
 
 
Amount accumulated by plan participants to purchase common stock (in dollars)
 
$ 2 
$ 1 
 
Shareholders' Equity (Details 2) (USD $)
3 Months Ended 12 Months Ended
Jan. 30, 2016
Oct. 31, 2015
Aug. 1, 2015
May 2, 2015
Jan. 31, 2015
Nov. 1, 2014
Aug. 2, 2014
May 3, 2014
Jan. 30, 2016
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Jun. 30, 2011
Outstanding Options to Purchase Common Stock [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
Net cash proceeds from the exercise of stock options (in dollars)
 
 
 
 
 
 
 
 
$ 40,000,000 
$ 42,000,000 
$ 158,000,000 
 
 
Weighted-average grant-date fair value of stock options granted (in dollars per share)
 
 
 
 
 
 
 
 
$ 11.59 
$ 9.09 
$ 7.77 
 
 
Exercisable stock options (in shares)
11,668,000 
 
 
 
 
 
 
 
11,668,000 
 
 
 
 
Percentage of exercisable stock options (as a percent)
100.00% 
 
 
 
 
 
 
 
100.00% 
 
 
 
 
Exercisable stock options, weighted-average price (in dollars per share)
$ 37.09 
 
 
 
 
 
 
 
$ 37.09 
 
 
 
 
Unexercisable stock options (in shares)
2,500,000.0 
 
 
 
 
 
 
 
2,500,000.0 
 
 
 
 
Percentage of unexercisable stock options (as a percent)
100.00% 
 
 
 
 
 
 
 
100.00% 
 
 
 
 
Unexercisable stock options, weighted-average price (in dollars per share)
$ 33.87 
 
 
 
 
 
 
 
$ 33.87 
 
 
 
 
Total outstanding stock options (in shares)
14,242,000 
 
 
 
17,342,000 
 
 
 
14,242,000 
17,342,000 
 
 
 
Percentage of outstanding stock options (as a percent)
100.00% 
 
 
 
 
 
 
 
100.00% 
 
 
 
 
Outstanding stock options, weighted-average price (in dollars per share)
$ 36.51 
 
 
 
$ 36.81 
 
 
 
$ 36.51 
$ 36.81 
 
 
 
Numerator [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
Net earnings from continuing operations attributable to Best Buy Co., Inc., diluted
 
 
 
 
 
 
 
 
807,000,000 
1,246,000,000 
695,000,000 
 
 
Denominator [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average common shares outstanding (in shares)
 
 
 
 
 
 
 
 
346,500,000 
349,500,000 
342,100,000 
 
 
Effect of Potentially Dilutive Securities [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock options and other (in shares)
 
 
 
 
 
 
 
 
4,200,000 
4,100,000 
5,500,000 
 
 
Weighted-average common shares outstanding, assuming dilution (in shares)
 
 
 
 
 
 
 
 
350,700,000 
353,600,000 
347,600,000 
 
 
Earnings per share attributable to Best Buy Co., Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic (in dollars per share)
 
 
 
 
 
 
 
 
$ 2.33 
$ 3.57 
$ 2.03 
 
 
Diluted (in dollars per share)
$ 1.39 
$ 0.37 
$ 0.46 
$ 0.10 
$ 1.47 
$ 0.33 
$ 0.39 
$ 1.33 
$ 2.30 
$ 3.53 
$ 2.00 
 
 
Share repurchases authorized (in shares)
 
 
 
 
 
 
 
 
 
 
 
 
5,000,000,000 
Open Market Repurchases [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock Repurchased and Retired During Period, Value
 
 
 
 
 
 
 
 
120,000,000 
 
 
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation
271,000,000 
 
 
 
382,000,000 
 
 
 
271,000,000 
382,000,000 
485,000,000 
113,000,000 
 
Unrealized gains (losses) on available-for-sale investments
0 
 
 
 
0 
 
 
 
0 
0 
7,000,000 
(1,000,000)
 
Total
271,000,000 
 
 
 
382,000,000 
 
 
 
271,000,000 
382,000,000 
492,000,000 
112,000,000 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value
 
 
 
 
 
 
 
 
14,000,000 
13,000,000 
39,000,000 
 
 
Actual income tax benefit realized from stock option exercises (in dollars)
 
 
 
 
 
 
 
 
5,000,000 
5,000,000 
13,000,000 
 
 
In-the-money [Member]
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding Options to Purchase Common Stock [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
Exercisable stock options (in shares)
4,200,000.0 
 
 
 
 
 
 
 
4,200,000.0 
 
 
 
 
Percentage of exercisable stock options (as a percent)
36.00% 
 
 
 
 
 
 
 
36.00% 
 
 
 
 
Exercisable stock options, weighted-average price (in dollars per share)
$ 24.73 
 
 
 
 
 
 
 
$ 24.73 
 
 
 
 
Unexercisable stock options (in shares)
1,300,000.0 
 
 
 
 
 
 
 
1,300,000.0 
 
 
 
 
Percentage of unexercisable stock options (as a percent)
52.00% 
 
 
 
 
 
 
 
52.00% 
 
 
 
 
Unexercisable stock options, weighted-average price (in dollars per share)
$ 27.45 
 
 
 
 
 
 
 
$ 27.45 
 
 
 
 
Total outstanding stock options (in shares)
5,500,000.0 
 
 
 
 
 
 
 
5,500,000.0 
 
 
 
 
Percentage of outstanding stock options (as a percent)
39.00% 
 
 
 
 
 
 
 
39.00% 
 
 
 
 
Outstanding stock options, weighted-average price (in dollars per share)
$ 25.37 
 
 
 
 
 
 
 
$ 25.37 
 
 
 
 
Out-of-the-money [Member]
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding Options to Purchase Common Stock [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
Exercisable stock options (in shares)
7,500,000.0 
 
 
 
 
 
 
 
7,500,000.0 
 
 
 
 
Percentage of exercisable stock options (as a percent)
64.00% 
 
 
 
 
 
 
 
64.00% 
 
 
 
 
Exercisable stock options, weighted-average price (in dollars per share)
$ 44.15 
 
 
 
 
 
 
 
$ 44.15 
 
 
 
 
Unexercisable stock options (in shares)
1,200,000.0 
 
 
 
 
 
 
 
1,200,000.0 
 
 
 
 
Percentage of unexercisable stock options (as a percent)
48.00% 
 
 
 
 
 
 
 
48.00% 
 
 
 
 
Unexercisable stock options, weighted-average price (in dollars per share)
$ 40.51 
 
 
 
 
 
 
 
$ 40.51 
 
 
 
 
Total outstanding stock options (in shares)
8,700,000.0 
 
 
 
 
 
 
 
8,700,000.0 
 
 
 
 
Percentage of outstanding stock options (as a percent)
61.00% 
 
 
 
 
 
 
 
61.00% 
 
 
 
 
Outstanding stock options, weighted-average price (in dollars per share)
$ 43.62 
 
 
 
 
 
 
 
$ 43.62 
 
 
 
 
June 2011 share repurchase program [Member}
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding Options to Purchase Common Stock [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
Amounting remaining for additional share repurchases
3,000,000,000 
 
 
 
 
 
 
 
3,000,000,000 
 
 
 
 
Open Market Repurchases [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
Total number of shares repurchased
 
 
 
 
 
 
 
 
32,800,000 
 
 
 
 
Stock Repurchased and Retired During Period, Value
 
 
 
 
 
 
 
 
1,000,000,000 
 
 
 
 
Open market [Domain]
 
 
 
 
 
 
 
 
 
 
 
 
 
Open Market Repurchases [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
Total number of shares repurchased
 
 
 
 
 
 
 
 
28,400,000 
 
 
 
 
January 2016 ASR [Domain]
 
 
 
 
 
 
 
 
 
 
 
 
 
Open Market Repurchases [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
Total number of shares repurchased
 
 
 
 
 
 
 
 
4,400,000 
 
 
 
 
Market-based [Member]
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding Options to Purchase Common Stock [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrecognized compensation (in dollars)
19,000,000 
 
 
 
 
 
 
 
19,000,000 
 
 
 
 
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 10 months 
 
 
 
 
Employee Stock [Member]
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding Options to Purchase Common Stock [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
Issuance of common stock under employee stock purchase plan (in shares)
 
 
 
 
 
 
 
 
200,000 
300,000 
600,000 
 
 
Open market [Domain] |
June 2011 share repurchase program [Member}
 
 
 
 
 
 
 
 
 
 
 
 
 
Open Market Repurchases [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock Repurchased and Retired During Period, Value
 
 
 
 
 
 
 
 
$ 880,000,000 
 
 
 
 
Shareholders' Equity Components of Accumulated Other Comprehensive Income (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 30, 2016
Jan. 31, 2015
Feb. 1, 2014
Feb. 2, 2013
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
Foreign currency translation
$ 271 
$ 382 
$ 485 
$ 113 
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax
0 
0 
7 
(1)
Accumulated other comprehensive income
271 
382 
492 
112 
Foreign currency translation adjustments
(44)
(103)
(136)
 
Unrealized gain (loss) on available-for-sale investments
0 
(3)
6 
 
Reclassification of foreign currency translations adjustments into earnings due to sale of business
(67)
0 
654 
 
Reclassification of (gains) losses on available-for-sale investments into earnings
 
(4)
2 
 
Parent [Member]
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
Foreign currency translation adjustments
(44)
(103)
(136)
 
Unrealized gain (loss) on available-for-sale investments
 
(3)
7 
 
Reclassification of foreign currency translations adjustments into earnings due to sale of business
(67)
 
508 
 
Reclassification of (gains) losses on available-for-sale investments into earnings
 
$ (4)
$ 1 
 
Shareholders' Equity Accelerated Share Repurchase (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 30, 2016
Equity [Abstract]
 
Accelerated Share Repurchase Price (low end of the range)
$ 150 
Accelerated Share Repurchase Price (high end of the range)
175 
Stock Repurchased and Retired at ASR Settlement, Shares
1.6 
Prepaid repurchase of common stock
55 
Stock Repurchased and Retired During Period, Value
120 
Accelerated Share Repurchases, Cash or Stock Settlement
165 
Accelerated Share Repurchases, Description of Adjustment to Initial Price Paid
$ 10 
Leases (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 30, 2016
Jan. 31, 2015
Feb. 1, 2014
Operating Leases, Rent Expense, Net [Abstract]
 
 
 
Minimum rentals
$ 797 
$ 848 
$ 864 
Contingent rentals
1 
2 
2 
Total rent expense
798 
850 
866 
Less: sublease income
(15)
(18)
(18)
Net rent expense
783 
832 
848 
Future minimum lease payments under capital leases
 
 
 
2016
14 
 
 
2017
9 
 
 
2018
6 
 
 
2019
3 
 
 
2020
2 
 
 
Thereafter
12 
 
 
Subtotal
46 
 
 
Less: imputed interest
(8)
 
 
Capital Leases, Future Minimum Payments, Present Value
38 
 
 
Capital Lease Obligations, Current
(12)
 
 
Present value
26 
 
 
Future minimum lease payments under financing leases
 
 
 
Financing Leases, Future Minimum Payments Due, Next Twelve Months
42 
 
 
2017
35 
 
 
2018
29 
 
 
2019
23 
 
 
2020
17 
 
 
Thereafter
66 
 
 
Subtotal
212 
 
 
Less: imputed interest
(34)
 
 
Financing Leases, Future Minimum Payments, Present Value
178 
 
 
2016
(33)
 
 
Present value
145 
 
 
Future minimum lease payments under operating leases
 
 
 
2016
813 1
 
 
2017
708 1
 
 
2018
572 1
 
 
2019
439 1
 
 
2020
310 1
 
 
Thereafter
521 1
 
 
Subtotal
3,363 1
 
 
Other Operating Lease Payments
1,100 
 
 
Minimum sublease rent income excluded from minimum lease payments
$ 72 
 
 
Benefit Plans (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 30, 2016
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
$ 53 
$ 60 
$ 65 
Non-qualified, unfunded deferred compensation plan [Member]
 
 
 
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
 
 
 
Deferred Compensation Liability, Classified, Noncurrent
34 
44 
 
Deferred Compensation Plan Assets
$ 96 
$ 97 
 
Income Taxes - Tax Rate Reconciliation (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 30, 2016
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
458 
485 
379 
 
State income taxes, net of federal benefit
38 
43 
26 
 
(Benefit) expense from foreign operations
5 
(23)
(23)
 
Other
2 
(11)
6 
 
Effective Income Tax Rate Reconciliation, Legal Entity Reorganization
0 
(353)
0 
 
Income tax expense
$ 503 
$ 141 
$ 388 
 
Effective income tax rate
38.40% 
10.10% 
35.80% 
 
Income Taxes - Income Tax Expense (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 30, 2016
Jan. 31, 2015
Feb. 1, 2014
Earnings from continuing operations before income tax expense and equity in (loss) income of affiliates
 
 
 
United States
$ 1,310 
$ 1,201 
$ 699 
Outside the United States
0 
186 
384 
Earnings from continuing operations before income tax expense
1,310 
1,387 
1,083 
Current:
 
 
 
Federal
347 
354 
305 
State
48 
51 
46 
Foreign
60 
33 
55 
Current income tax expense
455 
438 
406 
Deferred:
 
 
 
Federal
65 
(275)
(22)
State
10 
(26)
1 
Foreign
(27)
4 
3 
Deferred income tax expense
48 
(297)
(18)
Income tax expense
$ 503 
$ 141 
$ 388 
Income Taxes - Components of Deferreds (Details) (USD $)
In Millions, unless otherwise specified
Jan. 30, 2016
Jan. 31, 2015
Components of deferred tax assets and liabilities
 
 
Accrued property expenses
$ 175 
$ 129 
Other accrued expenses
78 
91 
Deferred revenue
99 
93 
Compensation and benefits
99 
103 
Stock-based compensation
86 
94 
Deferred Tax Assets, Goodwill and Intangible Assets
253 
287 
Loss and credit carryforwards
133 
156 
Other
86 
88 
Total deferred tax assets
1,009 
1,041 
Valuation allowance
(108)
(143)
Total deferred tax assets after valuation allowance
901 
898 
Property and equipment
(296)
(251)
Inventory
(69)
(54)
Other
(26)
(27)
Total deferred tax liabilities
(391)
(332)
Net deferred tax assets
510 
566 
Other assets
510 
574 
Deferred Tax Liabilities, Net, Noncurrent, Held-for-Sale
0 
(8)
Net deferred tax assets
$ 510 
$ 566 
Income Taxes - Tax Credit and Operating Loss Carryforwards (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 30, 2016
Jan. 31, 2015
Tax Credit Carryforward [Line Items]
 
 
Valuation allowance
$ 108 
$ 143 
Decrease in the valuation allowance, related to the international net operating loss carryforwards and other international deferred tax assets
35 
 
Unremitted earnings of foreign operations
896 
 
State [Member]
 
 
Tax Credit Carryforward [Line Items]
 
 
Tax credit carryforwards
13 
 
Tax credit carryforwards, valuation allowance
8 
 
Capital Loss Carryforwards [Member] |
State [Member]
 
 
Tax Credit Carryforward [Line Items]
 
 
Tax credit carryforwards
4 
 
Capital Loss Carryforwards [Member] |
U.S. and State [Member]
 
 
Tax Credit Carryforward [Line Items]
 
 
Tax credit carryforwards, valuation allowance
9 
 
Federal [Member] |
U.S. [Member]
 
 
Tax Credit Carryforward [Line Items]
 
 
Total net operating loss carryforwards
19 
 
Federal [Member] |
Foreign Tax Credit Carryforwards [Member] |
U.S. [Member]
 
 
Tax Credit Carryforward [Line Items]
 
 
Tax credit carryforwards
1 
 
Tax credit carryforwards, valuation allowance
1 
 
International [Member]
 
 
Tax Credit Carryforward [Line Items]
 
 
Total net operating loss carryforwards
96 
 
Net operating loss carryforwards subject to expiration
89 
 
Net operating loss carryforwards, valuation allowance
$ 90 
 
Income Taxes - Unrecognized Tax Benefits (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 30, 2016
Jan. 31, 2015
Feb. 1, 2014
Reconciliation of changes in unrecognized tax benefits
 
 
 
Balance at beginning of period
$ 410 
$ 370 
$ 383 
Gross increases related to prior period tax positions
30 
33 
38 
Gross decreases related to prior period tax positions
(13)
(88)
(67)
Gross increases related to current period tax positions
59 
114 
34 
Settlements with taxing authorities
(9)
(9)
(3)
Lapse of statute of limitations
(8)
(10)
(15)
Balance at end of period
469 
410 
370 
Unrecognized tax benefits that would impact the effective tax rate if recognized
337 
297 
228 
Interest expense recognized as component of income tax expense
10 
 
 
Accrued interest in income tax expense
89 
78 
91 
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense
$ 1 
$ 2 
$ 2 
Segment and Geographic Information - Segment Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended 12 Months Ended
Jan. 30, 2016
Oct. 31, 2015
Aug. 1, 2015
May 2, 2015
Jan. 31, 2015
Nov. 1, 2014
Aug. 2, 2014
May 3, 2014
Jan. 30, 2016
segments
Jan. 31, 2015
Feb. 1, 2014
Jan. 30, 2016
Domestic [Member]
Jan. 31, 2015
Domestic [Member]
Feb. 1, 2014
Domestic [Member]
Jan. 30, 2016
Domestic [Member]
Consumer Electronics [Member]
Jan. 31, 2015
Domestic [Member]
Consumer Electronics [Member]
Feb. 1, 2014
Domestic [Member]
Consumer Electronics [Member]
Jan. 30, 2016
Domestic [Member]
Computing and Mobile Phones [Member]
Jan. 31, 2015
Domestic [Member]
Computing and Mobile Phones [Member]
Feb. 1, 2014
Domestic [Member]
Computing and Mobile Phones [Member]
Jan. 30, 2016
Domestic [Member]
Entertainment [Member]
Jan. 31, 2015
Domestic [Member]
Entertainment [Member]
Feb. 1, 2014
Domestic [Member]
Entertainment [Member]
Jan. 30, 2016
Domestic [Member]
Appliances [Member]
Jan. 31, 2015
Domestic [Member]
Appliances [Member]
Feb. 1, 2014
Domestic [Member]
Appliances [Member]
Jan. 30, 2016
Domestic [Member]
Services [Member]
Jan. 31, 2015
Domestic [Member]
Services [Member]
Feb. 1, 2014
Domestic [Member]
Services [Member]
Jan. 30, 2016
Domestic [Member]
Other [Member]
Jan. 31, 2015
Domestic [Member]
Other [Member]
Feb. 1, 2014
Domestic [Member]
Other [Member]
Jan. 30, 2016
International [Member]
Jan. 31, 2015
International [Member]
Feb. 1, 2014
International [Member]
Jan. 30, 2016
International [Member]
Consumer Electronics [Member]
Jan. 31, 2015
International [Member]
Consumer Electronics [Member]
Feb. 1, 2014
International [Member]
Consumer Electronics [Member]
Jan. 30, 2016
International [Member]
Computing and Mobile Phones [Member]
Jan. 31, 2015
International [Member]
Computing and Mobile Phones [Member]
Feb. 1, 2014
International [Member]
Computing and Mobile Phones [Member]
Jan. 30, 2016
International [Member]
Entertainment [Member]
Jan. 31, 2015
International [Member]
Entertainment [Member]
Feb. 1, 2014
International [Member]
Entertainment [Member]
Jan. 30, 2016
International [Member]
Appliances [Member]
Jan. 31, 2015
International [Member]
Appliances [Member]
Feb. 1, 2014
International [Member]
Appliances [Member]
Jan. 30, 2016
International [Member]
Services [Member]
Jan. 31, 2015
International [Member]
Services [Member]
Feb. 1, 2014
International [Member]
Services [Member]
Jan. 30, 2016
International [Member]
Other [Member]
Jan. 31, 2015
International [Member]
Other [Member]
Feb. 1, 2014
International [Member]
Other [Member]
Feb. 2, 2013
International [Member]
Other [Member]
Jan. 30, 2016
Continuing Operations [Member]
Jan. 31, 2015
Continuing Operations [Member]
Feb. 1, 2014
Continuing Operations [Member]
Jan. 30, 2016
Continuing Operations [Member]
Domestic [Member]
Jan. 31, 2015
Continuing Operations [Member]
Domestic [Member]
Feb. 1, 2014
Continuing Operations [Member]
Domestic [Member]
Jan. 30, 2016
Continuing Operations [Member]
International [Member]
Jan. 31, 2015
Continuing Operations [Member]
International [Member]
Feb. 1, 2014
Continuing Operations [Member]
International [Member]
Business segment information
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of reportable segments
 
 
 
 
 
 
 
 
2 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total revenue
$ 13,623 
$ 8,819 
$ 8,528 
$ 8,558 
$ 14,209 
$ 9,032 
$ 8,459 
$ 8,639 
$ 39,528 
$ 40,339 
$ 40,611 
$ 36,365 
$ 36,055 
$ 35,831 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 3,163 
$ 4,284 
$ 4,780 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of revenue, by revenue category (as a percent)
 
 
 
 
 
 
 
 
 
 
 
100.00% 
100.00% 
100.00% 
32.00% 
31.00% 
30.00% 
46.00% 
47.00% 
48.00% 
8.00% 
9.00% 
8.00% 
8.00% 
7.00% 
7.00% 
5.00% 
5.00% 
6.00% 
1.00% 
1.00% 
1.00% 
100.00% 
100.00% 
100.00% 
31.00% 
30.00% 
29.00% 
48.00% 
49.00% 
50.00% 
9.00% 
9.00% 
10.00% 
5.00% 
5.00% 
5.00% 
6.00% 
6.00% 
6.00% 
1.00% 
1.00% 
 
 
 
 
 
 
 
 
 
 
 
Maximum percentage of revenue, by revenue category (as a percent)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.00% 
1.00% 
 
 
 
 
 
 
 
 
 
Operating income (loss)
771 1
230 1
288 1
86 1
810 2
205 2
225 2
210 2
1,375 1
1,450 3
1,144 
1,585 
1,437 
1,145 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(210)
13 
(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other income (expense)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain on sale of investments
 
 
 
 
 
 
 
 
2 
13 
20 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment income and other
 
 
 
 
 
 
 
 
13 
14 
19 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
 
 
 
 
 
 
 
(80)
(90)
(100)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings from continuing operations before income tax expense
 
 
 
 
 
 
 
 
1,310 
1,387 
1,083 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
13,519 4
 
 
 
15,245 4
 
 
 
13,519 4
15,245 4
13,990 4
12,318 4
12,987 4
11,123 4
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,201 4
2,258 4
2,867 4
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total capital expenditures
 
 
 
 
 
 
 
 
649 5
561 5
547 5
602 5
519 5
440 5
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
47 5
42 5
107 5
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total depreciation
 
 
 
 
 
 
 
 
$ 657 
$ 656 
$ 701 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 657 5
$ 656 5
$ 701 5
$ 613 5
$ 575 5
$ 565 5
$ 44 5
$ 81 5
$ 136 5
Segment and Geographic Information - Geographic Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Jan. 30, 2016
Oct. 31, 2015
Aug. 1, 2015
May 2, 2015
Jan. 31, 2015
Nov. 1, 2014
Aug. 2, 2014
May 3, 2014
Jan. 30, 2016
Jan. 31, 2015
Feb. 1, 2014
Geographic Areas, Revenues from External Customers [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Total revenue
$ 13,623 
$ 8,819 
$ 8,528 
$ 8,558 
$ 14,209 
$ 9,032 
$ 8,459 
$ 8,639 
$ 39,528 
$ 40,339 
$ 40,611 
Geographic Areas, Long-Lived Assets [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Property, Plant and Equipment, Net
2,346 
 
 
 
2,295 
 
 
 
2,346 
2,295 
2,598 
United States [Member]
 
 
 
 
 
 
 
 
 
 
 
Geographic Areas, Revenues from External Customers [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Total revenue
 
 
 
 
 
 
 
 
36,365 
36,055 
35,831 
Geographic Areas, Long-Lived Assets [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Property, Plant and Equipment, Net
2,189 
 
 
 
2,100 
 
 
 
2,189 
2,100 
2,190 
Canada [Member]
 
 
 
 
 
 
 
 
 
 
 
Geographic Areas, Revenues from External Customers [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Total revenue
 
 
 
 
 
 
 
 
2,917 
4,047 
4,522 
Geographic Areas, Long-Lived Assets [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Property, Plant and Equipment, Net
140 
 
 
 
174 
 
 
 
140 
174 
244 
China [Member]
 
 
 
 
 
 
 
 
 
 
 
Geographic Areas, Long-Lived Assets [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Property, Plant and Equipment, Net
0 
 
 
 
0 
 
 
 
0 
0 
139 
Other [Member]
 
 
 
 
 
 
 
 
 
 
 
Geographic Areas, Revenues from External Customers [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Total revenue
 
 
 
 
 
 
 
 
246 
237 
258 
Geographic Areas, Long-Lived Assets [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Property, Plant and Equipment, Net
$ 17 
 
 
 
$ 21 
 
 
 
$ 17 
$ 21 
$ 25 
Contingencies and Commitments - Commitments (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 30, 2016
Accenture Service Contract [Member]
 
Commitments [Line Items]
 
Long-term Future Contractual Obligations, High End of the Range
$ 95 
Outstanding letters of credit and bankers' acceptances [Member]
 
Commitments [Line Items]
 
Unrecorded Unconditional Purchase Obligation, Purchases
$ 89 
Contingencies and Commitments Gain Contingencies (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 30, 2016
Gain Contingencies [Line Items]
 
Proceeds from Legal Settlements
$ 75 
Supplementary Financial Information (Unaudited) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Jan. 30, 2016
Oct. 31, 2015
Aug. 1, 2015
May 2, 2015
Jan. 31, 2015
Nov. 1, 2014
Aug. 2, 2014
May 3, 2014
Jan. 30, 2016
Jan. 31, 2015
Feb. 1, 2014
Quarterly Financial Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenue
$ 13,623 
$ 8,819 
$ 8,528 
$ 8,558 
$ 14,209 
$ 9,032 
$ 8,459 
$ 8,639 
$ 39,528 
$ 40,339 
$ 40,611 
Comparable store sales % change (as a percent)
(1.70%)1
0.80% 1
3.80% 1
0.60% 1
2.00% 1
2.90% 1
(2.20%)1
(1.80%)1
0.50% 1
0.50% 1
 
Comparable Sales, Excluding Installment Billing, Percent Change
(1.80%)
0.50% 
2.70% 
(0.70%)
1.30% 
2.20% 
(2.20%)
(1.80%)
(0.10%)
0.00% 
 
Gross profit
2,951 
2,112 
2,098 
2,030 
3,026 
2,076 
1,978 
1,967 
9,191 
9,047 
9,399 
Operating income (loss)
771 2
230 2
288 2
86 2
810 3
205 3
225 3
210 3
1,375 2
1,450 4
1,144 
Net earnings (loss) from continuing operations
477 
129 
164 
37 
524 
116 
137 
469 
807 
1,246 
695 
Gain (loss) from discontinued operations, net of tax
2 
(4)
0 
92 
(4)
(9)
10 
(8)
90 
(11)
(172)
Net earnings including noncontrolling interests
479 
125 
164 
129 
520 
107 
147 
461 
897 
1,235 
523 
Net earnings (loss) attributable to Best Buy Co., Inc.
479 
125 
164 
129 
519 
107 
146 
461 
897 
1,233 
532 
Diluted earnings (loss) per share
 
 
 
 
 
 
 
 
 
 
 
Continuing operations
$ 1.39 
$ 0.37 
$ 0.46 
$ 0.10 
$ 1.47 
$ 0.33 
$ 0.39 
$ 1.33 
$ 2.30 
$ 3.53 
$ 2.00 
Discontinued operations
$ 0.01 5
$ (0.01)5
$ 0.00 5
$ 0.26 5
$ (0.01)5
$ (0.03)5
$ 0.03 5
$ (0.02)5
$ 0.26 5
$ (0.04)5
$ (0.47)
Diluted (in dollars per share)
$ 1.40 
$ 0.36 
$ 0.46 
$ 0.36 
$ 1.46 
$ 0.30 
$ 0.42 
$ 1.31 
$ 2.56 
$ 3.49 
$ 1.53 
Months until inclusion in comparable store sales
 
 
 
 
 
 
 
 
14 months 
 
 
Days Until Excluded From Comparable Sales
 
 
 
 
 
 
 
 
14 days 
 
 
Restructuring charges
12 
7 
(4)
186 
(7)
5 
5 
2 
201 
23 
259 
Continuing Operations [Member]
 
 
 
 
 
 
 
 
 
 
 
Diluted earnings (loss) per share
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
 
 
 
 
 
 
 
 
$ 201 
$ 5 
 
[1] Our comparable sales calculation compares revenue from stores, websites and call centers operating for at least 14 full months, as well as revenue related to certain other comparable sales channels for a particular period to a corresponding period in the prior year. Relocated, as well as remodeled, expanded and downsized stores closed more than 14 days, are excluded from our comparable sales calculation until at least 14 full months after reopening. Acquisitions are included in the comparable sales calculation beginning with the first full quarter following the first anniversary of the date of the acquisition. The portion of the calculation of comparable sales attributable to our International segment excludes the effect of fluctuations in foreign currency exchange rates. The calculation of comparable sales excludes the impact of revenue from discontinued operations. Comparable online sales are included in our comparable sales calculation. The method of calculating comparable sales varies across the retail industry. As a result, our method of calculating comparable sales may not be the same as other retailers' methods.
Valuation and Qualifying Accounts (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 30, 2016
Jan. 31, 2015
Feb. 1, 2014
Activity in valuation and qualifying accounts
 
 
 
Balance at End of Period
$ 49 
$ 59 
 
Allowance for Doubtful Accounts [Member]
 
 
 
Activity in valuation and qualifying accounts
 
 
 
Balance at Beginning of Period
59 
104 
92 
Charged to Expenses or Other Accounts
30 
1 
76 
Other
(40)1
(46)1
(64)1
Balance at End of Period
$ 49 
$ 59 
$ 104