BEST BUY CO INC, 10-Q filed on 6/9/2016
Quarterly Report
Document and Entity Information Document
3 Months Ended
Apr. 30, 2016
Jun. 3, 2016
Document Information [Line Items]
 
 
Entity Registrant Name
BEST BUY CO INC 
 
Entity Central Index Key
0000764478 
 
Document Type
10-Q 
 
Document Period End Date
Apr. 30, 2016 
 
Amendment Flag
false 
 
Current Fiscal Year End Date
--01-28 
 
Entity Current Reporting Status
Yes 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
322,752,742 
Document Fiscal Year Focus
2017 
 
Document Fiscal Period Focus
Q1 
 
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
In Millions, unless otherwise specified
Apr. 30, 2016
Jan. 30, 2016
May 2, 2015
Current assets
 
 
 
Cash and cash equivalents
$ 1,845 
$ 1,976 
$ 2,173 
Short-term investments
1,220 
1,305 
1,566 
Receivables, net
1,097 
1,162 
995 
Merchandise inventories
4,719 
5,051 
4,930 
Other current assets
401 
392 
465 
Total current assets
9,282 
9,886 
10,129 
Property and equipment, net
2,332 
2,346 
2,244 
Goodwill
425 
425 
425 
Intangibles, net
18 
18 
18 
Other assets
813 
813 
863 
Non-current assets held for sale
31 
31 
33 
Total assets
12,901 
13,519 
13,712 
Current liabilities
 
 
 
Accounts payable
4,397 
4,450 
4,584 
Unredeemed gift card liabilities
379 
409 
385 
Deferred revenue
349 
357 
304 
Accrued compensation and related expenses
277 
384 
277 
Accrued liabilities
791 
802 
743 
Accrued income taxes
97 
128 
45 
Current portion of long-term debt
44 1
395 
383 
Total current liabilities
6,334 
6,925 
6,721 
Long-term liabilities
807 
877 
906 
Long-term debt
1,334 
1,339 
1,217 
Best Buy Co., Inc. shareholders’ equity
 
 
 
Preferred stock, $1.00 par value: Authorized — 400,000 shares; Issued and outstanding — none
0 
0 
0 
Common stock, $0.10 par value: Authorized — 1.0 billion shares; Issued and outstanding — 324,000,000, 324,000,000 and 353,000,000 shares, respectively
32 
32 
35 
Prepaid Share Repurchase
0 
(55)
0 
Additional paid-in capital
0 
0 
494 
Retained earnings
4,078 
4,130 
4,009 
Accumulated other comprehensive income
316 
271 
330 
Total equity
4,426 
4,378 
4,868 
Total liabilities and equity
$ 12,901 
$ 13,519 
$ 13,712 
CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) (USD $)
Apr. 30, 2016
Jan. 30, 2016
May 2, 2015
Preferred stock, par value (in dollars per share)
$ 1.00 
$ 1.00 
$ 1.00 
Preferred stock, authorized shares
400,000 
400,000 
400,000 
Preferred stock, issued shares
0 
0 
0 
Preferred stock, outstanding shares
0 
0 
0 
Common stock, par value (in dollars per share)
$ 0.10 
$ 0.10 
$ 0.10 
Common stock, authorized shares
1,000,000,000 
1,000,000,000 
1,000,000,000 
Common stock, issued shares
324,000,000 
324,000,000 
353,000,000 
Common stock, outstanding shares
324,000,000 
324,000,000 
353,000,000 
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Apr. 30, 2016
May 2, 2015
Revenue
$ 8,443 
$ 8,558 
Cost of goods sold
6,298 
6,520 
Restructuring charges – cost of goods sold
0 
8 
Gross profit
2,145 
2,030 
Selling, general and administrative expenses
1,744 
1,766 
Restructuring charges
29 
178 
Operating income
372 
86 
Other income (expense)
 
 
Gain on sale of investments
2 
2 
Investment income and other
6 
7 
Interest expense
(20)
(20)
Earnings from continuing operations before income tax expense
360 
75 
Income tax expense
134 
38 
Net earnings from continuing operations
226 
37 
Gain from discontinued operations (Note 2), net of tax benefit of $3 and $3
3 
92 
Net earnings
$ 229 
$ 129 
Basic earnings (loss) per share attributable to Best Buy Co., Inc. shareholders
 
 
Continuing operations (in dollars per share)
$ 0.70 
$ 0.11 
Discontinued operations (in dollars per share)
$ 0.01 
$ 0.26 
Basic earnings per share (in dollars per share)
$ 0.71 
$ 0.37 
Diluted earnings (loss) per share attributable to Best Buy Co., Inc. shareholders
 
 
Continuing operations (in dollars per share)
$ 0.69 
$ 0.10 
Discontinued operations (in dollars per share)
$ 0.01 
$ 0.26 
Diluted earnings per share (in dollars per share)
$ 0.70 
$ 0.36 
Dividends declared per common share (in dollars per share)
$ 0.73 
$ 0.74 
Weighted-average common shares outstanding (in millions)
 
 
Basic (in shares)
323.6 
352.4 
Diluted (in shares)
326.7 
357.6 
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (PARENTHETICAL) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Apr. 30, 2016
May 2, 2015
Income tax benefit (expense)
$ 3 
$ 3 
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)
In Millions, unless otherwise specified
3 Months Ended
Apr. 30, 2016
May 2, 2015
Net earnings
$ 229 
$ 129 
Foreign currency translation adjustments
45 
15 
Reclassification of foreign currency translation adjustments into earnings due to sale of business
0 
(67)
Comprehensive income
$ 274 
$ 77 
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $)
In Millions, unless otherwise specified
Total
Total Best Buy Co., Inc. [Member]
Common Stock [Member]
Prepaid Share Repurchase [Member]
Additional Paid-In Capital [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Noncontrolling Interests [Member]
Beginning balances at Jan. 31, 2015
$ 5,000 
$ 4,995 
$ 35 
 
$ 437 
$ 4,141 
$ 382 
$ 5 
Beginning balances (in shares) at Jan. 31, 2015
 
 
352 
 
 
 
 
 
Increase (Decrease) in Shareholders' Equity
 
 
 
 
 
 
 
 
Net earnings, three months ended
129 
129 
0 
 
0 
129 
0 
0 
Foreign currency translation adjustments
15 
15 
0 
 
0 
0 
15 
0 
Reclassification of foreign currency translation adjustments into earnings due to sale of business
(67)
(67)
 
 
 
 
(67)
0 
Sale of noncontrolling interest
(5)
 
0 
 
0 
0 
 
(5)
Dividends
 
0 
0 
 
0 
0 
0 
 
Stock-based compensation
27 
27 
0 
 
27 
0 
0 
0 
Restricted stock vested and stock options exercised (in shares)
 
 
1 
 
 
 
 
 
Restricted stock vested and stock options exercised
22 
22 
0 
 
22 
0 
0 
0 
Issuance of common stock under employee stock purchase plan (in shares)
 
 
0 
 
 
 
 
 
Issuance of common stock under employee stock purchase plan
3 
3 
0 
 
3 
0 
0 
0 
Tax benefit (deficit) from stock options exercised, restricted stock vesting and employee stock purchase plan
5 
5 
0 
 
5 
0 
0 
0 
Common stock dividends
(261)
(261)
0 
 
0 
(261)
0 
0 
Ending balances at May. 02, 2015
4,868 
4,868 
35 
 
494 
4,009 
330 
0 
Ending balances (in shares) at May. 02, 2015
 
 
353 
 
 
 
 
 
Beginning balances at Jan. 30, 2016
4,378 
4,378 
32 
(55)
0 
4,130 
271 
0 
Beginning balances (in shares) at Jan. 30, 2016
 
 
324 
 
 
 
 
 
Increase (Decrease) in Shareholders' Equity
 
 
 
 
 
 
 
 
Net earnings, three months ended
229 
229 
0 
 
0 
229 
0 
0 
Foreign currency translation adjustments
45 
45 
0 
 
0 
0 
45 
0 
Reclassification of foreign currency translation adjustments into earnings due to sale of business
0 
 
 
 
 
 
 
 
Stock-based compensation
31 
31 
0 
 
31 
 
 
 
Restricted stock vested and stock options exercised (in shares)
 
 
3 
 
 
 
 
 
Restricted stock vested and stock options exercised
18 
18 
1 
 
17 
0 
0 
0 
Settlement of accelerated share repurchase
55 
55 
 
55 
 
 
 
 
Issuance of common stock under employee stock purchase plan (in shares)
 
 
0 
 
 
 
 
 
Issuance of common stock under employee stock purchase plan
3 
3 
0 
 
3 
0 
0 
0 
Tax benefit (deficit) from stock options exercised, restricted stock vesting and employee stock purchase plan
6 
6 
0 
 
6 
0 
0 
0 
Common stock dividends
(238)
(238)
0 
 
0 
(238)
0 
0 
Stock Repurchased During Period, Shares
 
 
(3)
 
 
 
 
 
Stock Repurchased During Period, Value
(101)
(101)
(1)
 
(57)
(43)
 
 
Ending balances at Apr. 30, 2016
$ 4,426 
$ 4,426 
$ 32 
$ 0 
$ 0 
$ 4,078 
$ 316 
$ 0 
Ending balances (in shares) at Apr. 30, 2016
 
 
324 
 
 
 
 
 
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (PARENTHETICAL)
3 Months Ended
Apr. 30, 2016
May 2, 2015
Statement of Stockholders' Equity [Abstract]
 
 
Dividends declared per common share (in dollars per share)
$ 0.73 
$ 0.74 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Millions, unless otherwise specified
3 Months Ended
Apr. 30, 2016
May 2, 2015
Operating activities
 
 
Net earnings
$ 229 
$ 129 
Adjustments to reconcile net earnings to total cash provided by (used in) operating activities:
 
 
Depreciation
162 
163 
Restructuring charges
29 
186 
Gain on sale of business, net
0 
(99)
Stock-based compensation
31 
27 
Deferred income taxes
8 
(25)
Other, net
(12)
3 
Changes in operating assets and liabilities:
 
 
Receivables
73 
302 
Merchandise inventories
365 
261 
Other assets
(30)
4 
Accounts payable
(73)
(446)
Other liabilities
(211)
(309)
Income taxes
(88)
(206)
Total cash provided by (used in) operating activities
483 
(10)
Investing activities
 
 
Additions to property and equipment
(136)
(124)
Purchases of investments
(591)
(547)
Sales of investments
683 
440 
Proceeds from sale of business, net of cash transferred upon sale
0 
48 
Change in restricted assets
(2)
(36)
Settlement of net investment hedges
0 
5 
Other, net
4 
0 
Total cash used in investing activities
(42)
(214)
Financing activities
 
 
Repurchase of common stock
(52)
0 
Repayments of debt
(362)
(8)
Dividends paid
(238)
(261)
Issuance of common stock
21 
25 
Other, net
19 
6 
Total cash used in financing activities
(612)
(238)
Effect of exchange rate changes on cash
40 
9 
Decrease in cash and cash equivalents
(131)
(453)
Cash and cash equivalents at beginning of period, excluding held for sale
1,976 
2,432 
Cash and cash equivalents held for sale at beginning of period
0 
194 
Cash and cash equivalents at end of period
$ 1,845 
$ 2,173 
Basis of Presentation (Notes)
Basis of Presentation
Basis of Presentation
 
Unless the context otherwise requires, the use of the terms “Best Buy,” “we,” “us” and “our” in these Notes to Condensed Consolidated Financial Statements refers to Best Buy Co., Inc. and its consolidated subsidiaries.
 
In the opinion of management, the accompanying condensed consolidated financial statements contain all adjustments necessary for a fair presentation as prescribed by accounting principles generally accepted in the United States (“GAAP”). All adjustments were comprised of normal recurring adjustments, except as noted in these Notes to Condensed Consolidated Financial Statements.

Historically, we have generated a higher proportion of our revenue and earnings in the fiscal fourth quarter, which includes the majority of the holiday shopping season in the U.S., Canada and Mexico. Due to the seasonal nature of our business, interim results are not necessarily indicative of results for the entire fiscal year. The interim financial statements and the related notes in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended January 30, 2016. The first three months of fiscal 2017 and fiscal 2016 included 13 weeks.

In order to align our fiscal reporting periods and comply with statutory filing requirements, we consolidate the financial results of our Mexico 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 such events were identified for this period.

In preparing the accompanying condensed consolidated financial statements, we evaluated the period from May 1, 2016, through the date the financial statements were issued, for material subsequent events requiring recognition or disclosure. Other than as described in Note 2, Discontinued Operations, no such events were identified for this period.

New Accounting Pronouncements

In April 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2015-05, Customer's Accounting for Fees Paid in a Cloud Computing Arrangement. The new guidance provides explicit guidance to help companies evaluate the accounting for fees paid by a customer in a cloud computing arrangement. The new guidance clarifies that if a cloud computing arrangement includes a software license, the customer should account for the license consistent with its accounting for other software licenses. If the arrangement does not include a software license, the customer should account for the arrangement as a service contract. We adopted the new guidance in the first quarter of fiscal 2017, 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.

In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation: Improvements to Employee Share-Based Payment Accounting. The new guidance was issued to simplify the accounting for share-based payment transactions and includes several changes, including the requirement to recognize the income tax effects of awards that vest or settle as income tax expense and clarification of the presentation of certain components of share-based awards in the statement of cash flows. The new guidance will first apply in the first quarter of our fiscal 2018. 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 aligned 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 at May 2, 2015:
Balance Sheet
May 2, 2015 Reported
 
ASU 2015-03 & 2015-15 Adjustments
 
ASU 2015-17 Adjustments
 
May 2, 2015 Adjusted
Other current assets
$
732

 
$
(2
)
 
$
(265
)
 
$
465

Other assets
603

 
(5
)
 
265

 
863

   Total assets
$
13,719

 
$
(7
)
 
$
—

 
$
13,712

 
 
 
 
 
 
 
 
Long-term debt
$
1,224

 
$
(7
)
 
$
—

 
$
1,217

   Total liabilities & equity
$
13,719

 
$
(7
)
 
$
—

 
$
13,712



Discontinued Operations
Discontinued Operations
Discontinued Operations

Discontinued operations are primarily comprised of Jiangsu Five Star Appliance Co., Limited ("Five Star") within our International segment. 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 continued to hold one retail property in Shanghai, China, which remained held for sale at April 30, 2016. In May 2016, we completed the sale of the property and expect to record a gain on sale in the second quarter of fiscal 2017. The presentation of discontinued operations has been retrospectively applied to all prior periods presented.

The aggregate financial results of discontinued operations were as follows ($ in millions):
 
Three Months Ended
 
April 30, 2016
 
May 2, 2015
Revenue
$
—

 
$
212

Loss from discontinued operations before income tax benefit
—

 
(10
)
Income tax benefit
3

 
3

Gain on sale of discontinued operations
—

 
99

Net gain from discontinued operations
$
3

 
$
92

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

The following tables set forth by level within the fair value hierarchy, our financial assets and liabilities that were accounted for at fair value on a recurring basis at April 30, 2016, January 30, 2016, and May 2, 2015, according to the valuation techniques we used to determine their fair values ($ in millions).
 
 
 
Fair Value at
 
Fair Value Hierarchy
 
April 30, 2016
 
January 30, 2016
 
May 2, 2015
ASSETS
 
 
 

 
 

 
 

Cash and cash equivalents
 
 
 

 
 

 
 

Money market funds
Level 1
 
$
56

 
$
51

 
$
6

Corporate bonds
Level 2
 
—

 
—

 
22

Commercial paper
Level 2
 
93

 
265

 
231

Time deposits
Level 2
 
454

 
306

 
223

Short-term investments
 
 
 
 
 
 
 
Corporate bonds
Level 2
 
78

 
193

 
320

Commercial paper
Level 2
 
110

 
122

 
237

International government bonds
Level 2
 
—

 
—

 
21

Time deposits
Level 2
 
1,032

 
990

 
988

Other current assets
 
 
 

 
 
 
 
Foreign currency derivative instruments
Level 2
 
—

 
18

 
13

Time deposits
Level 2
 
79

 
79

 
90

Other assets
 
 
 
 
 
 
 
Interest rate swap derivative instruments
Level 2
 
15

 
25

 
7

Auction rate securities
Level 3
 
2

 
2

 
2

Marketable securities that fund deferred compensation
Level 1
 
96

 
96

 
98

 
 
 
 
 
 
 
 
LIABILITIES
 
 
 

 
 

 
 

Accrued Liabilities
 
 
 

 
 

 
 

Foreign currency derivative instruments
Level 2
 
13

 
1

 
5

Interest rate swap derivative instruments
Level 2
 
—

 
—

 
2

 
There were no transfers between levels during the periods presented. In addition, there was no change in the beginning and ending balances of items measured at fair value on a recurring basis in the tables above that used significant unobservable inputs (Level 3) for the periods presented.

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, were 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.

International government bonds. Our international government 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.
 
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 discounted cash flow ("DCF") model to derive an estimate of fair value. The assumptions we used in preparing the DCF model included 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 Condensed 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 Condensed Consolidated Statements of Earnings.

The following table summarizes the fair value remeasurements for non-restructuring property and equipment impairments and restructuring impairments recorded during the three months ended April 30, 2016, and May 2, 2015 ($ in millions):
 
Three Months Ended
 
Three Months Ended
 
April 30, 2016
 
May 2, 2015
 
Impairments
 
Remaining Net Carrying Value(1)
 
Impairments
 
Remaining Net Carrying Value(1)
Property and equipment (non-restructuring)
$
5

 
$
—

 
$
11

 
$
9

Restructuring activities(2)
 
 
 
 
 
 
 
Tradename
—

 
—

 
40

 
—

Property and equipment
7

 
—

 
29

 
—

Total
$
12

 
$
—

 
$
80

 
$
9

(1)
Remaining net carrying value approximates fair value.
(2)
See Note 5, Restructuring Charges, for additional information.

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 was 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, other investments, accounts payable, other payables and long-term debt. The fair values of cash, receivables, 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. 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 6, Debt, for information about the fair value of our long-term debt.
Goodwill and Intangible Assets (Notes)
Goodwill and Intangible Assets
Goodwill and Intangible Assets
 
The carrying values of goodwill and indefinite-lived tradenames for the Domestic segment were $425 million and $18 million at April 30, 2016, and $425 million and $18 million at January 30, 2016. The changes in the carrying values of goodwill and indefinite-lived tradenames by segment were as follows in the three months ended May 2, 2015 ($ in millions):
 
Goodwill
 
Indefinite-lived Tradenames
 
Domestic
 
Domestic
 
International
 
Total
Balances at January 31, 2015
$
425

 
$
18

 
$
39

 
$
57

Changes in foreign currency exchange rates
—

 
—

 
1

 
1

Canada brand restructuring(1)
—

 
—

 
(40
)
 
(40
)
Balances at May 2, 2015
$
425

 
$
18

 
$
—

 
$
18


(1)
Represents the Future Shop tradename impaired as a result of the Canadian brand consolidation in the first quarter of fiscal 2016. See Note 5, Restructuring Charges, for further discussion of the Canadian brand consolidation.

The following table provides the gross carrying amount of goodwill and cumulative goodwill impairment ($ in millions):
 
April 30, 2016
 
January 30, 2016
 
May 2, 2015
 
Gross
Carrying
Amount
 
Cumulative
Impairment
 
Gross
Carrying
Amount
 
Cumulative
Impairment
 
Gross
Carrying
Amount
 
Cumulative
Impairment
Goodwill
$
1,100

 
$
(675
)
 
$
1,100

 
$
(675
)
 
$
1,100

 
$
(675
)


Restructuring Charges (Notes)
Restructuring Charges
Restructuring Charges

Charges incurred in the three months ended April 30, 2016, and May 2, 2015, for our restructuring activities were as follows ($ in millions):
 
Three Months Ended
 
April 30, 2016
 
May 2, 2015
Renew Blue Phase 2
$
27

 
$
—

Canadian brand consolidation
(1
)
 
188

Renew Blue(1)
3

 
(2
)
Other restructuring activities(2)
—

 
—

Total restructuring charges
$
29

 
$
186


(1)
Represents activity related to our remaining vacant space liability, primarily in our International segment, for our Renew Blue restructuring program which began in the fourth quarter of 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 $11 million at April 30, 2016.
(2)
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 $16 million at April 30, 2016.

Renew Blue Phase 2

In the first quarter of fiscal 2017, we took several strategic actions to eliminate and simplify certain components of our operations and restructure certain field and corporate teams as part of our Renew Blue Phase 2 plan. We incurred $27 million of charges related to Phase 2 of the plan during the first three months of fiscal 2017, which primarily consisted of employee termination benefits and property and equipment impairments.

All restructuring charges related to this plan are from continuing operations and are presented in restructuring charges in our Condensed Consolidated Statements of Earnings.
The composition of the restructuring charges we incurred during the three months ended April 30, 2016 for Renew Blue Phase 2 was as follows ($ in millions):
 
Domestic
Property and equipment impairments
$
7

Termination benefits
20

Total Renew Blue - Phase 2 restructuring charges
$
27



The following table summarizes our restructuring accrual activity during the three months ended April 30, 2016, related to termination benefits as a result of Renew Blue Phase 2 ($ in millions):
 
Termination
Benefits
Balances at January 30, 2016
$
—

Charges
19

Cash payments
(4
)
Balances at April 30, 2016
$
15



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. For the first three months of fiscal 2017 we recognized a benefit of $1 million related to our Canadian brand consolidation, which was due to changes in our facility closure and other costs assumptions. In the first three months of 2016 we incurred $188 million of restructuring charges, 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 Condensed Consolidated Statements of Earnings, and the remainder of the restructuring charges are presented in restructuring charges in our Condensed Consolidated Statements of Earnings. The composition of total restructuring charges we incurred for the Canadian brand consolidation in the three months ended April 30, 2016, and May 2, 2015, as well as the cumulative amount incurred through April 30, 2016, was as follows ($ in millions):
 
Three Months Ended
 
 
 
April 30, 2016
 
May 2, 2015
 
Cumulative Amount
Inventory write-downs
$
—

 
$
8

 
$
3

Property and equipment impairments
—

 
29

 
30

Tradename impairment
—

 
40

 
40

Termination benefits
—

 
24

 
25

Facility closure and other costs
(1
)
 
87

 
101

Total Canadian brand consolidation restructuring charges
$
(1
)
 
$
188

 
$
199



The following tables summarize our restructuring accrual activity during the three months ended April 30, 2016, and May 2, 2015, 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 30, 2016
$
2

 
$
64

 
$
66

Charges
—

 
—

 
—

Cash payments
(1
)
 
(11
)
 
(12
)
Adjustments(1)
—

 
(1
)
 
(1
)
Changes in foreign currency exchange rates
—

 
6

 
6

Balances at April 30, 2016
$
1

 
$
58

 
$
59

(1) Adjustments to facility closure and other costs represent changes in sublease assumptions.

 
Termination
Benefits
 
Facility
Closure and
Other Costs
 
Total
Balances at January 31, 2015
$
—

 
$
—

 
$
—

Charges
24

 
98

 
122

Cash payments
(17
)
 
(3
)
 
(20
)
Changes in foreign currency exchange rates
1

 
3

 
4

Balances at May 2, 2015
$
8

 
$
98

 
$
106

Debt (Notes)
Debt
Debt

Long-term debt consisted of the following ($ in millions):
 
April 30, 2016
 
January 30, 2016
 
May 2, 2015
2016 Notes
$
—

 
$
350

 
$
350

2018 Notes
500

 
500

 
500

2021 Notes
650

 
650

 
650

Interest rate swap valuation adjustments
15

 
25

 
5

Subtotal
1,165

 
1,525

 
1,505

Debt discounts and issuance costs
(6
)
 
(7
)
 
(8
)
Financing lease obligations
184

 
178

 
60

Capital lease obligations
35

 
38

 
43

   Total long-term debt
1,378

 
1,734

 
1,600

Less: current portion(1)
(44
)
 
(395
)
 
(383
)
   Total long-term debt, less current portion
$
1,334

 
$
1,339

 
$
1,217

 
(1)
Our 2016 Notes, due March 15, 2016, were classified in our current portion of long-term debt as of January 30, 2016 and May 2, 2015, respectively. In March 2016, we repaid the 2016 Notes using existing cash resources.

The fair value of total long-term debt, excluding debt discounts and issuance costs and financing and capital lease obligations, approximated $1,249 million, $1,543 million, and $1,572 million at April 30, 2016, January 30, 2016, and May 2, 2015, respectively, based primarily on the market prices quoted from external sources, compared with carrying values of $1,165 million, $1,525 million, and $1,505 million, respectively. If long-term debt was measured at fair value in the financial statements, it would be classified primarily as Level 2 in the fair value hierarchy.

See Note 5, Debt, in the Notes to Condensed Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended January 30, 2016, for additional information regarding the terms of our debt facilities, debt instruments and other obligations.
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 major financial institutions as our counterparties.

We record all derivative instruments on our Condensed Consolidated Balance Sheets at fair value and evaluate hedge effectiveness prospectively and retrospectively when electing to apply hedge accounting. We formally document all hedging relations at inception 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 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 Condensed 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 and on certain forecast inventory purchases denominated in non-functional currencies. The contracts generally have terms of up to 12 months. These derivative instruments are not designated in hedging relationships, and, therefore, we record gains and losses on these contracts directly to net earnings.

Summary of Derivative Balances

The following table presents the gross fair values for outstanding derivative instruments and the corresponding classification at April 30, 2016, January 30, 2016, and May 2, 2015 ($ in millions):
 
April 30, 2016
 
January 30, 2016
 
May 2, 2015
Contract Type
Assets
 
Liabilities
 
Assets
 
Liabilities
 
Assets
 
Liabilities
Derivatives designated as net investment hedges(1)
$
—

 
$
11

 
$
15

 
$
1

 
$
8

 
$
2

Derivatives designated as interest rate swaps(2)
15

 
—

 
25

 
—

 
7

 
2

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

 
2

 
3

 
—

 
5

 
3

Total
$
15

 
$
13

 
$
43

 
$
1

 
$
20

 
$
7

(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 Condensed Consolidated Statements of Earnings for the three months ended April 30, 2016, and May 2, 2015 ($ in millions):
 
Three Months Ended
 
April 30, 2016
 
May 2, 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
$
(22
)
 
$
—

 
$
(9
)
 
$
—



The following tables present the effects of derivative instruments on our Condensed Consolidated Statements of Earnings for the three months ended April 30, 2016, and May 2, 2015 ($ in millions):
 
Gain (Loss) Recognized within SG&A
 
Three Months Ended
Contract Type
April 30, 2016
 
May 2, 2015
No hedge designation (foreign exchange forward contracts)
$
(5
)
 
$
(5
)


 
Gain (Loss) Recognized within Interest Expense
 
Three Months Ended
Contract Type
April 30, 2016
 
May 2, 2015
Interest rate swap gain (loss)
$
(10
)
 
$
4

Adjustments to carrying value of long-term debt
10

 
(4
)
Net impact on Condensed Consolidated Statements of Earnings
$
—

 
$
—



The following table presents the notional amounts of our derivative instruments at April 30, 2016, January 30, 2016, and May 2, 2015 ($ in millions):
 
Notional Amount
Contract Type
April 30, 2016
 
January 30, 2016
 
May 2, 2015
Derivatives designated as net investment hedges
$
204

 
$
208

 
$
222

Derivatives designated as interest rate swaps
750

 
750

 
750

No hedge designation (foreign exchange forward contracts)
95

 
94

 
199

Total
$
1,049

 
$
1,052

 
$
1,171

Earnings per Share (Notes)
Earnings per Share
Earnings per Share
 
We compute our basic earnings per share based on the weighted-average number of common shares outstanding and our diluted earnings per share based on the weighted-average number of common shares outstanding adjusted by the number of additional shares that would have been outstanding had potentially dilutive common shares been issued. 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 for each period if established market or performance criteria have been met at the end of the respective periods.

The following table presents a reconciliation of the numerators and denominators of basic and diluted earnings per share from continuing operations for the three months ended April 30, 2016, and May 2, 2015 ($ and shares in millions):
 
Three Months Ended
 
April 30, 2016
 
May 2, 2015
Numerator
 

 
 

Net earnings from continuing operations
$
226

 
$
37

 


 


Denominator
 
 
 
Weighted-average common shares outstanding
323.6

 
352.4

Dilutive effect of stock compensation plan awards
3.1

 
5.2

Weighted-average common shares outstanding, assuming dilution
326.7

 
357.6

 
 
 
 
Net earnings per share from continuing operations
 
 
 
Basic
$
0.70

 
$
0.11

Diluted
$
0.69

 
$
0.10



The computation of weighted-average common shares outstanding, assuming dilution, excluded options to purchase 9.1 million and 10.1 million shares of our common stock for the three months ended April 30, 2016, and May 2, 2015, respectively. These amounts were excluded as the options’ exercise prices were greater than the average market price of our common stock for the periods presented, and, therefore, the effect would be anti-dilutive (i.e., including such options would result in higher earnings per share).
Comprehensive Income (Notes)
Comprehensive Income
Comprehensive Income
 
The following tables provide a reconciliation of the components of accumulated other comprehensive income, net of tax, attributable to Best Buy Co., Inc. for the three months ended April 30, 2016, and May 2, 2015 ($ in millions):
 
Foreign Currency Translation
Balances at January 30, 2016
$
271

Foreign currency translation adjustments
45

Balances at April 30, 2016
$
316

 
 
 
Foreign Currency Translation
Balances at January 31, 2015
$
382

Foreign currency translation adjustments
15

Reclassification of foreign currency translation adjustments into earnings due to sale of business
(67
)
Balances at May 2, 2015
$
330



The gains and losses on our net investment hedges, which are included in foreign currency translation, were not material for the periods presented. There is generally no tax impact related to foreign currency translation adjustments, as the earnings are considered permanently reinvested.
Repurchase of Common Stock (Notes)
Schedule of Repurchase Agreements [Table Text Block] 
Repurchase of Common Stock

We have a $5.0 billion share repurchase program that was authorized by our Board of Directors in June 2011. There is no expiration date governing the period over which we can repurchase shares under the June 2011 share repurchase program. As of January 30, 2016, $3.0 billion remained available for share repurchases. On February 25, 2016, we announced our intent to repurchase up to an additional $1.0 billion over 2 years.

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 in the Condensed Consolidated Balance Sheets. 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 following table presents information regarding the shares we repurchased during the three months ended April 30, 2016, noting that we had no repurchases for the three months ended May 2, 2015 ($, except per share amounts, and shares in millions):
 
Three Months Ended

April 30, 2016
Total cost of shares repurchased
 
  Open market(1)
$
56

  Settlement of January 2016 ASR
45

  Total
$
101

 

Average price per share
 
  Open market
$
32.41

  Settlement of January 2016 ASR
$
28.55

  Average
$
30.55

 
 
Number of shares repurchased and retired
 
  Open market(1)
1.7

  Settlement of January 2016 ASR
1.6

  Total
3.3

(1)
Of the $56 million of shares repurchased, $4.0 million, or 0.1 million shares, in trades remained unsettled as of April 30, 2016. The liability for unsettled trades is included in Accrued liabilities in the Condensed Consolidated Balance Sheets.

At April 30, 2016, approximately $2.9 billion remained available for additional purchases under the June 2011 share repurchase program. Repurchased shares are retired and constitute authorized but unissued shares.
Schedule of Repurchases of Common Stock [Table Text Block] 
The following table presents information regarding the shares we repurchased during the three months ended April 30, 2016, noting that we had no repurchases for the three months ended May 2, 2015 ($, except per share amounts, and shares in millions):
 
Three Months Ended

April 30, 2016
Total cost of shares repurchased
 
  Open market(1)
$
56

  Settlement of January 2016 ASR
45

  Total
$
101

 

Average price per share
 
  Open market
$
32.41

  Settlement of January 2016 ASR
$
28.55

  Average
$
30.55

 
 
Number of shares repurchased and retired
 
  Open market(1)
1.7

  Settlement of January 2016 ASR
1.6

  Total
3.3

(1)
Of the $56 million of shares repurchased, $4.0 million, or 0.1 million shares, in trades remained unsettled as of April 30, 2016. The liability for unsettled trades is included in Accrued liabilities in the Condensed Consolidated Balance Sheets.
Segments (Notes)
Segments
Segments
 
Our chief operating decision maker ("CODM") is our Chief Executive Officer. Our business is organized into two segments: Domestic (which is comprised of all operations within the U.S. and its districts and territories) and International (which is comprised of all operations outside the U.S. and its territories). Our CODM has ultimate responsibility for enterprise decisions. Our CODM determines, in particular, resource allocation for, and monitors performance of, the consolidated enterprise, the Domestic segment and the International segment. The Domestic 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, in the Notes to Condensed Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended January 30, 2016.








Revenue by reportable segment was as follows ($ in millions):
 
Three Months Ended
 
April 30, 2016
 
May 2, 2015
Domestic
$
7,829

 
$
7,890

International
614

 
668

Total revenue
$
8,443

 
$
8,558



Operating income (loss) by reportable segment and the reconciliation to earnings from continuing operations before income tax expense were as follows ($ in millions):
 
Three Months Ended
 
April 30, 2016
 
May 2, 2015
Domestic
$
372

 
$
304

International
—

 
(218
)
Total operating income
372

 
86

Other income (expense)
 
 
 
Gain on sale of investments
2

 
2

Investment income and other
6

 
7

Interest expense
(20
)
 
(20
)
Earnings from continuing operations before income tax expense
$
360

 
$
75

 
Assets by reportable segment were as follows ($ in millions):
 
April 30, 2016
 
January 30, 2016
 
May 2, 2015
Domestic
$
11,562

 
$
12,318

 
$
12,388

International
1,339

 
1,201

 
1,324

Total assets
$
12,901

 
$
13,519

 
$
13,712

Contingencies (Notes)
Contingencies
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 condensed consolidated financial statements. However, there are cases where liability is not probable or the amount cannot be reasonably estimated and therefore accruals have not been made. We provide disclosure of matters where we believe it is reasonably possible the impact may be material to our condensed consolidated financial statements.

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. On April 12, 2016, the 8th Circuit held the trial court misapplied the law and reversed the class certification order. IBEW petitioned the 8th Circuit for a rehearing en banc, which was denied on June 1, 2016. That Petition 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. In connection with this action, we received settlement proceeds net of legal expenses and costs in the amount of $75 million during fiscal 2016. In the first quarter of fiscal 2017, we settled with the remaining defendants for a total of $161 million, net of legal expenses and costs; $127 million of which we have received and $34 million of which we expect to receive in January 2017 or earlier.  This matter is now resolved.

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.
Basis of Presentation Basis of Presentation (Tables)
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]
The following table reconciles the balance sheet line items impacted by the adoption of these two standards at May 2, 2015:
Balance Sheet
May 2, 2015 Reported
 
ASU 2015-03 & 2015-15 Adjustments
 
ASU 2015-17 Adjustments
 
May 2, 2015 Adjusted
Other current assets
$
732

 
$
(2
)
 
$
(265
)
 
$
465

Other assets
603

 
(5
)
 
265

 
863

   Total assets
$
13,719

 
$
(7
)
 
$
—

 
$
13,712

 
 
 
 
 
 
 
 
Long-term debt
$
1,224

 
$
(7
)
 
$
—

 
$
1,217

   Total liabilities & equity
$
13,719

 
$
(7
)
 
$
—

 
$
13,712

Discontinued Operations Discontinued Operations (Tables)
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures
The aggregate financial results of discontinued operations were as follows ($ in millions):
 
Three Months Ended
 
April 30, 2016
 
May 2, 2015
Revenue
$
—

 
$
212

Loss from discontinued operations before income tax benefit
—

 
(10
)
Income tax benefit
3

 
3

Gain on sale of discontinued operations
—

 
99

Net gain from discontinued operations
$
3

 
$
92

Fair Value Measurements (Tables)
Fair Value, Assets and Liabilities Measured on Recurring Basis 
The following tables set forth by level within the fair value hierarchy, our financial assets and liabilities that were accounted for at fair value on a recurring basis at April 30, 2016, January 30, 2016, and May 2, 2015, according to the valuation techniques we used to determine their fair values ($ in millions).
 
 
 
Fair Value at
 
Fair Value Hierarchy
 
April 30, 2016
 
January 30, 2016
 
May 2, 2015
ASSETS
 
 
 

 
 

 
 

Cash and cash equivalents
 
 
 

 
 

 
 

Money market funds
Level 1
 
$
56

 
$
51

 
$
6

Corporate bonds
Level 2
 
—

 
—

 
22

Commercial paper
Level 2
 
93

 
265

 
231

Time deposits
Level 2
 
454

 
306

 
223

Short-term investments
 
 
 
 
 
 
 
Corporate bonds
Level 2
 
78

 
193

 
320

Commercial paper
Level 2
 
110

 
122

 
237

International government bonds
Level 2
 
—

 
—

 
21

Time deposits
Level 2
 
1,032

 
990

 
988

Other current assets
 
 
 

 
 
 
 
Foreign currency derivative instruments
Level 2
 
—

 
18

 
13

Time deposits
Level 2
 
79

 
79

 
90

Other assets
 
 
 
 
 
 
 
Interest rate swap derivative instruments
Level 2
 
15

 
25

 
7

Auction rate securities
Level 3
 
2

 
2

 
2

Marketable securities that fund deferred compensation
Level 1
 
96

 
96

 
98

 
 
 
 
 
 
 
 
LIABILITIES
 
 
 

 
 

 
 

Accrued Liabilities
 
 
 

 
 

 
 

Foreign currency derivative instruments
Level 2
 
13

 
1

 
5

Interest rate swap derivative instruments
Level 2
 
—

 
—

 
2

 
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis 
The following table summarizes the fair value remeasurements for non-restructuring property and equipment impairments and restructuring impairments recorded during the three months ended April 30, 2016, and May 2, 2015 ($ in millions):
 
Three Months Ended
 
Three Months Ended
 
April 30, 2016
 
May 2, 2015
 
Impairments
 
Remaining Net Carrying Value(1)
 
Impairments
 
Remaining Net Carrying Value(1)
Property and equipment (non-restructuring)
$
5

 
$
—

 
$
11

 
$
9

Restructuring activities(2)
 
 
 
 
 
 
 
Tradename
—

 
—

 
40

 
—

Property and equipment
7

 
—

 
29

 
—

Total
$
12

 
$
—

 
$
80

 
$
9

(1)
Remaining net carrying value approximates fair value.
(2)
See Note 5, Restructuring Charges, for additional information.

Goodwill and Intangible Assets (Tables)
Schedule of Intangible Assets and Goodwill, by Segment 
The changes in the carrying values of goodwill and indefinite-lived tradenames by segment were as follows in the three months ended May 2, 2015 ($ in millions):
 
Goodwill
 
Indefinite-lived Tradenames
 
Domestic
 
Domestic
 
International
 
Total
Balances at January 31, 2015
$
425

 
$
18

 
$
39

 
$
57

Changes in foreign currency exchange rates
—

 
—

 
1

 
1

Canada brand restructuring(1)
—

 
—

 
(40
)
 
(40
)
Balances at May 2, 2015
$
425

 
$
18

 
$
—

 
$
18


(1)
Represents the Future Shop tradename impaired as a result of the Canadian brand consolidation in the first quarter of fiscal 2016. See Note 5, Restructuring Charges, for further discussion of the Canadian brand consolidation.

Schedule of Gross Amount of Goodwill and Accumulated Goodwill Impairment Losses 
The following table provides the gross carrying amount of goodwill and cumulative goodwill impairment ($ in millions):
 
April 30, 2016
 
January 30, 2016
 
May 2, 2015
 
Gross
Carrying
Amount
 
Cumulative
Impairment
 
Gross
Carrying
Amount
 
Cumulative
Impairment
 
Gross
Carrying
Amount
 
Cumulative
Impairment
Goodwill
$
1,100

 
$
(675
)
 
$
1,100

 
$
(675
)
 
$
1,100

 
$
(675
)


Restructuring Charges (Tables)
Composition of Restructuring Charges 
Charges incurred in the three months ended April 30, 2016, and May 2, 2015, for our restructuring activities were as follows ($ in millions):
 
Three Months Ended
 
April 30, 2016
 
May 2, 2015
Renew Blue Phase 2
$
27

 
$
—

Canadian brand consolidation
(1
)
 
188

Renew Blue(1)
3

 
(2
)
Other restructuring activities(2)
—

 
—

Total restructuring charges
$
29

 
$
186


(1)
Represents activity related to our remaining vacant space liability, primarily in our International segment, for our Renew Blue restructuring program which began in the fourth quarter of 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 $11 million at April 30, 2016.
(2)
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 $16 million at April 30, 2016.
Composition of Restructuring Charges 
The composition of the restructuring charges we incurred during the three months ended April 30, 2016 for Renew Blue Phase 2 was as follows ($ in millions):
 
Domestic
Property and equipment impairments
$
7

Termination benefits
20

Total Renew Blue - Phase 2 restructuring charges
$
27



Restructuring Accrual Activity 
The following table summarizes our restructuring accrual activity during the three months ended April 30, 2016, related to termination benefits as a result of Renew Blue Phase 2 ($ in millions):
 
Termination
Benefits
Balances at January 30, 2016
$
—

Charges
19

Cash payments
(4
)
Balances at April 30, 2016
$
15

Composition of Restructuring Charges 
 
Three Months Ended
 
 
 
April 30, 2016
 
May 2, 2015
 
Cumulative Amount
Inventory write-downs
$
—

 
$
8

 
$
3

Property and equipment impairments
—

 
29

 
30

Tradename impairment
—

 
40

 
40

Termination benefits
—

 
24

 
25

Facility closure and other costs
(1
)
 
87

 
101

Total Canadian brand consolidation restructuring charges
$
(1
)
 
$
188

 
$
199

Restructuring Accrual Activity 
 
Termination
Benefits
 
Facility
Closure and
Other Costs
 
Total
Balances at January 30, 2016
$
2

 
$
64

 
$
66

Charges
—

 
—

 
—

Cash payments
(1
)
 
(11
)
 
(12
)
Adjustments(1)
—

 
(1
)
 
(1
)
Changes in foreign currency exchange rates
—

 
6

 
6

Balances at April 30, 2016
$
1

 
$
58

 
$
59

(1) Adjustments to facility closure and other costs represent changes in sublease assumptions.

 
Termination
Benefits
 
Facility
Closure and
Other Costs
 
Total
Balances at January 31, 2015
$
—

 
$
—

 
$
—

Charges
24

 
98

 
122

Cash payments
(17
)
 
(3
)
 
(20
)
Changes in foreign currency exchange rates
1

 
3

 
4

Balances at May 2, 2015
$
8

 
$
98

 
$
106

Debt (Tables)
Schedule of Long-term Debt
Long-term debt consisted of the following ($ in millions):
 
April 30, 2016
 
January 30, 2016
 
May 2, 2015
2016 Notes
$
—

 
$
350

 
$
350

2018 Notes
500

 
500

 
500

2021 Notes
650

 
650

 
650

Interest rate swap valuation adjustments
15

 
25

 
5

Subtotal
1,165

 
1,525

 
1,505

Debt discounts and issuance costs
(6
)
 
(7
)
 
(8
)
Financing lease obligations
184

 
178

 
60

Capital lease obligations
35

 
38

 
43

   Total long-term debt
1,378

 
1,734

 
1,600

Less: current portion(1)
(44
)
 
(395
)
 
(383
)
   Total long-term debt, less current portion
$
1,334

 
$
1,339

 
$
1,217

 
(1)
Our 2016 Notes, due March 15, 2016, were classified in our current portion of long-term debt as of January 30, 2016 and May 2, 2015, respectively. In March 2016, we repaid the 2016 Notes using existing cash resources.
Derivative Instruments Derivative Instruments (Tables)
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] 
 
April 30, 2016
 
January 30, 2016
 
May 2, 2015
Contract Type
Assets
 
Liabilities
 
Assets
 
Liabilities
 
Assets
 
Liabilities
Derivatives designated as net investment hedges(1)
$
—

 
$
11

 
$
15

 
$
1

 
$
8

 
$
2

Derivatives designated as interest rate swaps(2)
15

 
—

 
25

 
—

 
7

 
2

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

 
2

 
3

 
—

 
5

 
3

Total
$
15

 
$
13

 
$
43

 
$
1

 
$
20

 
$
7

(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] 
 
Three Months Ended
 
April 30, 2016
 
May 2, 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
$
(22
)
 
$
—

 
$
(9
)
 
$
—

Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] 
 
Gain (Loss) Recognized within SG&A
 
Three Months Ended
Contract Type
April 30, 2016
 
May 2, 2015
No hedge designation (foreign exchange forward contracts)
$
(5
)
 
$
(5
)
Schedule of Interest Rate Derivatives [Table Text Block] 
 
Gain (Loss) Recognized within Interest Expense
 
Three Months Ended
Contract Type
April 30, 2016
 
May 2, 2015
Interest rate swap gain (loss)
$
(10
)
 
$
4

Adjustments to carrying value of long-term debt
10

 
(4
)
Net impact on Condensed Consolidated Statements of Earnings
$
—

 
$
—

Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] 
 
Notional Amount
Contract Type
April 30, 2016
 
January 30, 2016
 
May 2, 2015
Derivatives designated as net investment hedges
$
204

 
$
208

 
$
222

Derivatives designated as interest rate swaps
750

 
750

 
750

No hedge designation (foreign exchange forward contracts)
95

 
94

 
199

Total
$
1,049

 
$
1,052

 
$
1,171

Earnings per Share (Tables)
Schedule of Calculation of Numerator and Denominator in Earnings Per Share
The following table presents a reconciliation of the numerators and denominators of basic and diluted earnings per share from continuing operations for the three months ended April 30, 2016, and May 2, 2015 ($ and shares in millions):
 
Three Months Ended
 
April 30, 2016
 
May 2, 2015
Numerator
 

 
 

Net earnings from continuing operations
$
226

 
$
37

 


 


Denominator
 
 
 
Weighted-average common shares outstanding
323.6

 
352.4

Dilutive effect of stock compensation plan awards
3.1

 
5.2

Weighted-average common shares outstanding, assuming dilution
326.7

 
357.6

 
 
 
 
Net earnings per share from continuing operations
 
 
 
Basic
$
0.70

 
$
0.11

Diluted
$
0.69

 
$
0.10

Comprehensive Income (Tables)
Schedule of Accumulated Other Comprehensive Income (Loss)
The following tables provide a reconciliation of the components of accumulated other comprehensive income, net of tax, attributable to Best Buy Co., Inc. for the three months ended April 30, 2016, and May 2, 2015 ($ in millions):
 
Foreign Currency Translation
Balances at January 30, 2016
$
271

Foreign currency translation adjustments
45

Balances at April 30, 2016
$
316

 
 
 
Foreign Currency Translation
Balances at January 31, 2015
$
382

Foreign currency translation adjustments
15

Reclassification of foreign currency translation adjustments into earnings due to sale of business
(67
)
Balances at May 2, 2015
$
330



Repurchase of Common Stock (Tables)
Schedule of Repurchases of Common Stock [Table Text Block]
The following table presents information regarding the shares we repurchased during the three months ended April 30, 2016, noting that we had no repurchases for the three months ended May 2, 2015 ($, except per share amounts, and shares in millions):
 
Three Months Ended

April 30, 2016
Total cost of shares repurchased
 
  Open market(1)
$
56

  Settlement of January 2016 ASR
45

  Total
$
101

 

Average price per share
 
  Open market
$
32.41

  Settlement of January 2016 ASR
$
28.55

  Average
$
30.55

 
 
Number of shares repurchased and retired
 
  Open market(1)
1.7

  Settlement of January 2016 ASR
1.6

  Total
3.3

(1)
Of the $56 million of shares repurchased, $4.0 million, or 0.1 million shares, in trades remained unsettled as of April 30, 2016. The liability for unsettled trades is included in Accrued liabilities in the Condensed Consolidated Balance Sheets.
Segments (Tables)
Business Segment Information
Revenue by reportable segment was as follows ($ in millions):
 
Three Months Ended
 
April 30, 2016
 
May 2, 2015
Domestic
$
7,829

 
$
7,890

International
614

 
668

Total revenue
$
8,443

 
$
8,558



Operating income (loss) by reportable segment and the reconciliation to earnings from continuing operations before income tax expense were as follows ($ in millions):
 
Three Months Ended
 
April 30, 2016
 
May 2, 2015
Domestic
$
372

 
$
304

International
—

 
(218
)
Total operating income
372

 
86

Other income (expense)
 
 
 
Gain on sale of investments
2

 
2

Investment income and other
6

 
7

Interest expense
(20
)
 
(20
)
Earnings from continuing operations before income tax expense
$
360

 
$
75

 
Assets by reportable segment were as follows ($ in millions):
 
April 30, 2016
 
January 30, 2016
 
May 2, 2015
Domestic
$
11,562

 
$
12,318

 
$
12,388

International
1,339

 
1,201

 
1,324

Total assets
$
12,901

 
$
13,519

 
$
13,712

Basis of Presentation (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Apr. 30, 2016
May 2, 2015
Jan. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
 
 
 
Number of Weeks in Fiscal Period
13 
13 
 
Reporting period lag for consolidation of financial results
1 month 
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
 
Other Assets, Current
$ 401 
$ 465 
$ 392 
Other Assets
 
863 
 
Assets
12,901 
13,712 
13,519 
Long-term Debt, Excluding Current Maturities
1,334 
1,217 
1,339 
Liabilities and Equity
12,901 
13,712 
13,519 
Accounting Standards Update 2015-03 and 2015-15 [Member]
 
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
 
Other Assets, Current
 
(2)
 
Other Assets
 
(5)
 
Assets
 
7 
 
Long-term Debt, Excluding Current Maturities
 
(7)
 
Liabilities and Equity
 
7 
 
Accounting Standards Update 2015-17 [Member]
 
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
 
Other Assets, Current
 
(265)
 
Other Assets
 
265 
 
Assets
 
0 
 
As reported [Member]
 
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
 
Other Assets, Current
 
732 
 
Other Assets
 
603 
 
Assets
 
13,719 
 
Long-term Debt, Excluding Current Maturities
 
1,224 
 
Liabilities and Equity
 
$ 13,719 
 
Discontinued Operations Discontinued Operations (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Apr. 30, 2016
May 2, 2015
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
 
 
Revenue
$ 0 
$ 212 
Loss from discontinued operations before income tax benefit
0 
(10)
Income tax benefit
3 
3 
Gain on sale of discontinued operations
0 
99 
Net gain from discontinued operations
$ 3 
$ 92 
Fair Value Measurements - Recurring (Details) (Fair Value, Measurements, Recurring [Member], USD $)
In Millions, unless otherwise specified
Apr. 30, 2016
Jan. 30, 2016
May 2, 2015
Cash and Cash Equivalents [Member] |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] |
Money Market Funds [Member]
 
 
 
Assets
 
 
 
Cash and cash equivalents
$ 56 
$ 51 
$ 6 
Cash and Cash Equivalents [Member] |
Significant Other Observable Inputs (Level 2) [Member] |
Corporate Bond Securities [Member]
 
 
 
Assets
 
 
 
Cash and cash equivalents
0 
0 
22 
Cash and Cash Equivalents [Member] |
Significant Other Observable Inputs (Level 2) [Member] |
Commercial Paper [Member]
 
 
 
Assets
 
 
 
Cash and cash equivalents
93 
265 
231 
Cash and Cash Equivalents [Member] |
Significant Other Observable Inputs (Level 2) [Member] |
Time Deposits [Member]
 
 
 
Assets
 
 
 
Cash and cash equivalents
454 
306 
223 
Other Current Assets [Member] |
Significant Other Observable Inputs (Level 2) [Member] |
Foreign Exchange and Other Derivative Financial Instruments [Member]
 
 
 
Assets
 
 
 
Foreign Currency Contract, Asset, Fair Value Disclosure
0 
18 
13 
Other Current Assets [Member] |
Significant Other Observable Inputs (Level 2) [Member] |
Time Deposits [Member]
 
 
 
Assets
 
 
 
Other Current Assets
79 
79 
90 
Short-term Investments [Member] |
Significant Other Observable Inputs (Level 2) [Member] |
Corporate Bond Securities [Member]
 
 
 
Assets
 
 
 
Short-term investments
78 
193 
320 
Short-term Investments [Member] |
Significant Other Observable Inputs (Level 2) [Member] |
Commercial Paper [Member]
 
 
 
Assets
 
 
 
Short-term investments
110 
122 
237 
Short-term Investments [Member] |
Significant Other Observable Inputs (Level 2) [Member] |
Foreign Government Debt [Member]
 
 
 
Assets
 
 
 
Short-term investments
0 
0 
21 
Short-term Investments [Member] |
Significant Other Observable Inputs (Level 2) [Member] |
Time Deposits [Member]
 
 
 
Assets
 
 
 
Short-term investments
1,032 
990 
988 
Other Assets [Member] |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] |
Marketable securities that fund deferred compensation [Member]
 
 
 
Assets
 
 
 
Marketable Equity Securities that Fund Deferred Compensation, Fair Value Disclosure
96 
96 
98 
Other Assets [Member] |
Significant Other Observable Inputs (Level 2) [Member] |
Interest Rate Swap [Member]
 
 
 
Assets
 
 
 
Other Assets
15 
25 
7 
Other Assets [Member] |
Significant Unobservable Inputs (Level 3) [Member] |
Auction Rate Securities [Member]
 
 
 
Assets
 
 
 
Other Assets
2 
2 
2 
Accrued Liabilities [Member] |
Significant Other Observable Inputs (Level 2) [Member] |
Foreign Exchange and Other Derivative Financial Instruments [Member]
 
 
 
Liabilities
 
 
 
Foreign Currency Contracts, Liability, Fair Value Disclosure
13 
1 
5 
Accrued Liabilities [Member] |
Significant Other Observable Inputs (Level 2) [Member] |
Interest Rate Swap [Member]
 
 
 
Liabilities
 
 
 
Foreign Currency Contracts, Liability, Fair Value Disclosure
$ 0 
$ 0 
$ 2 
Fair Value Measurements - Nonrecurring (Details) (Continuing Operations [Member], Fair Value, Measurements, Nonrecurring [Member], Significant Unobservable Inputs (Level 3) [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended
Apr. 30, 2016
May 2, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Property and equipment, impairments
$ 5 
$ 11 
Property and equipment, remaining net carrying value
0 1
9 1
Total impairments
12 
80 
Total remaining net carrying value
0 1
9 1
Impairment of Intangible Assets Related to Restructuring [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Tradename, impairments
0 2
 
Investments Impairment Charge Related to Restructuring [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Tradename, impairments
 
40 
Property and equipment write-downs [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Property and equipment, impairments
7 2
29 2
Property and equipment, remaining net carrying value
$ 0 1 2
$ 0 1 2
Goodwill and Intangible Assets (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
May 2, 2015
Apr. 30, 2016
Jan. 30, 2016
Schedule of Goodwill and Indefinite Lived Intangible Assets by Segment [Line Items]
 
 
 
Goodwill
$ 425 
$ 425 
$ 425 
Intangible Assets, Net (Excluding Goodwill)
18 
18 
18 
Goodwill [Roll Forward]
 
 
 
Goodwill, Balance at the beginning of the period
 
425 
425 
Goodwill, Balance at the end of the period
425 
425 
425 
Indefinite-lived Tradenames [Roll Forward]
 
 
 
Indefinite-Lived Tradenames, Beginning balance
57 
 
 
Indefinite-lived Intangible Assets, Translation Adjustments
1 
 
 
Indefinite-lived Intangible Assets, Translation and Purchase Accounting Adjustments
(40)1
 
 
Indefinite-lived Tradenames, Ending balance
18 
 
 
Gross amount of goodwill and the accumulated goodwill impairment losses
 
 
 
Gross Carrying Amount
1,100 
1,100 
1,100 
Cumulative Impairment
(675)
(675)
(675)
Domestic [Member]
 
 
 
Schedule of Goodwill and Indefinite Lived Intangible Assets by Segment [Line Items]
 
 
 
Goodwill
425 
425 
425 
Goodwill [Roll Forward]
 
 
 
Goodwill, Balance at the beginning of the period
425 
425 
425 
Goodwill, Changes in foreign currency exchange rates
0 
 
 
Goodwill, Impairments
0 
 
 
Goodwill, Balance at the end of the period
425 
425 
425 
Indefinite-lived Tradenames [Roll Forward]
 
 
 
Indefinite-Lived Tradenames, Beginning balance
18 
 
 
Indefinite-lived Intangible Assets, Translation Adjustments
0 
 
 
Indefinite-lived Intangible Assets, Translation and Purchase Accounting Adjustments
0 
 
 
Indefinite-lived Tradenames, Ending balance
18 
 
 
International [Member]
 
 
 
Indefinite-lived Tradenames [Roll Forward]
 
 
 
Indefinite-Lived Tradenames, Beginning balance
39 
 
 
Indefinite-lived Intangible Assets, Translation Adjustments
1 
 
 
Indefinite-lived Intangible Assets, Translation and Purchase Accounting Adjustments
(40)1
 
 
Indefinite-lived Tradenames, Ending balance
$ 0 
 
 
Restructuring Charges Summary Table (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Apr. 30, 2016
May 2, 2015
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring charges
$ 29 
$ 186 
Restructuring Program Canadian Brand Consolidation [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring charges
0 
122 
Continuing Operations [Member] |
Restructuring Program Renew Blue Phase 2 [Member] [Domain]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring charges
27 
 
Continuing Operations [Member] |
Restructuring Program Canadian Brand Consolidation [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring charges
(1)
188 
Continuing Operations [Member] |
Restructuring Program 2013 Renew Blue [Member] [Domain]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring charges
3 1
(2)1
Continuing Operations [Member] |
Other Restructuring [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring charges
0 2
0 2
Continuing Operations [Member] |
International Segment [Member] |
Restructuring Program Canadian Brand Consolidation [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring charges
$ (1)
$ 188 
Restructuring Charges - Canadian Brand Consolidation (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Apr. 30, 2016
May 2, 2015
Restructuring Reserve [Roll Forward]
 
 
Restructuring charges
$ 29 
$ 186 
Restructuring Program Canadian Brand Consolidation [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Number of stores to be closed
 
66 
Number of Future Shop stores converted to Best Buy stores
 
65 
Restructuring Reserve [Roll Forward]
 
 
Restructuring reserve, balance at the beginning of the period
66 
0 
Restructuring charges
0 
122 
Cash payments
(12)
(20)
Adjustments
(1)1
 
Restructuring Reserve, Translation Adjustment
6 
4 
Restructuring reserve, balance at the end of the period
59 
106 
Restructuring Program Canadian Brand Consolidation [Member] |
Termination benefits [Member]
 
 
Restructuring Reserve [Roll Forward]
 
 
Restructuring reserve, balance at the beginning of the period
2 
0 
Restructuring charges
0 
24 
Cash payments
(1)
(17)
Adjustments
0 1
 
Restructuring Reserve, Translation Adjustment
0 
1 
Restructuring reserve, balance at the end of the period
1 
8 
Restructuring Program Canadian Brand Consolidation [Member] |
Facility closure and other costs [Member]
 
 
Restructuring Reserve [Roll Forward]
 
 
Restructuring reserve, balance at the beginning of the period
64 
0 
Restructuring charges
0 
98 
Cash payments
(11)
(3)
Adjustments
(1)1
 
Restructuring Reserve, Translation Adjustment
6 
3 
Restructuring reserve, balance at the end of the period
58 
98 
Restructuring Program Canadian Brand Consolidation [Member] |
Continuing Operations [Member]
 
 
Restructuring Reserve [Roll Forward]
 
 
Restructuring charges
(1)
188 
Restructuring Program Canadian Brand Consolidation [Member] |
Continuing Operations [Member] |
International Segment [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring Charges
(1)
188 
Restructuring and Related Cost, Cost Incurred to Date
199 
 
Restructuring Reserve [Roll Forward]
 
 
Restructuring charges
(1)
188 
Restructuring Program Canadian Brand Consolidation [Member] |
Continuing Operations [Member] |
International Segment [Member] |
Inventory write-downs [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring Charges
0 
8 
Restructuring and Related Cost, Cost Incurred to Date
3 
 
Restructuring Program Canadian Brand Consolidation [Member] |
Continuing Operations [Member] |
International Segment [Member] |
Property and equipment impairments [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring Charges
0 
29 
Restructuring and Related Cost, Cost Incurred to Date
30 
 
Restructuring Program Canadian Brand Consolidation [Member] |
Continuing Operations [Member] |
International Segment [Member] |
Impairment of Intangible Assets Related to Restructuring [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring Charges
0 
40 
Restructuring and Related Cost, Cost Incurred to Date
40 
 
Restructuring Program Canadian Brand Consolidation [Member] |
Continuing Operations [Member] |
International Segment [Member] |
Termination benefits [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring Charges
0 
24 
Restructuring and Related Cost, Cost Incurred to Date
25 
 
Restructuring Program Canadian Brand Consolidation [Member] |
Continuing Operations [Member] |
International Segment [Member] |
Facility closure and other costs [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring Charges
(1)
87 
Restructuring and Related Cost, Cost Incurred to Date
$ 101 
 
Restructuring Charges - Renew Blue Phase 2 (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Apr. 30, 2016
May 2, 2015
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring Charges
$ 29 
$ 186 
Termination benefits [Member] |
Restructuring Program Renew Blue Phase 2 [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring Charges
19 
 
Restructuring Reserve [Roll Forward]
 
 
Restructuring reserve, balance at the beginning of the period
0 
 
Payments for Restructuring
(4)
 
Restructuring reserve, balance at the end of the period
15 
 
Facility closure and other costs [Member] |
Restructuring Program Renew Blue Phase 2 [Member]
 
 
Restructuring Reserve [Roll Forward]
 
 
Restructuring reserve, balance at the end of the period
11 
 
Continuing Operations [Member] |
Restructuring Program Renew Blue Phase 2 [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring Charges
27 
 
Restructuring Charges, Operating Income Impact
27 
 
Continuing Operations [Member] |
Restructuring Program Renew Blue Phase 2 [Member] [Domain]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring Charges
27 
 
Continuing Operations [Member] |
Property and equipment write-downs [Member] |
Restructuring Program Renew Blue Phase 2 [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring Charges, Operating Income Impact
7 
 
Continuing Operations [Member] |
Termination benefits [Member] |
Restructuring Program Renew Blue Phase 2 [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring Charges, Operating Income Impact
$ 20 
 
Restructuring Charges Restructuring Other (Details) (Facility closure and other costs [Member], Other Restructuring [Member], USD $)
In Millions, unless otherwise specified
Apr. 30, 2016
Facility closure and other costs [Member] |
Other Restructuring [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Restructuring Reserve
$ 16 
Long Term Debt (Details) (USD $)
In Millions, unless otherwise specified
Apr. 30, 2016
Jan. 30, 2016
May 2, 2015
Long-term Debt
 
 
 
Long-term Debt
$ 1,378 
 
 
Long-term Debt and Capital Lease Obligations, Including Current Maturities
 
1,734 
1,600 
Financing Lease Obligations
184 
178 
60 
Long-term debt, excluding debt discounts and issuance costs and financing and capital lease obligations
1,165 
1,525 
1,505 
Less: current portion
(44)1
(395)
(383)
Long-term Debt, Excluding Current Maturities
1,334 
1,339 
1,217 
Long-term Debt, Fair Value
1,249 
1,543 
1,572 
2016 Notes [Member]
 
 
 
Long-term Debt
 
 
 
Long-term Debt
0 
350 
350 
2018 Notes [Member]
 
 
 
Long-term Debt
 
 
 
Long-term Debt
500 
500 
500 
2021 Notes [Member]
 
 
 
Long-term Debt
 
 
 
Long-term Debt
650 
650 
650 
Interest Rate Swap [Member]
 
 
 
Long-term Debt
 
 
 
Long-term Debt
15 
25 
5 
Long-term Debt [Member]
 
 
 
Long-term Debt
 
 
 
Long-term Debt
1,165 
1,525 
1,505 
Capital Lease Obligations [Member]
 
 
 
Long-term Debt
 
 
 
Long-term Debt
35 
38 
43 
Debt discounts and issuance costs [Member]
 
 
 
Long-term Debt
 
 
 
Long-term Debt
$ (6)
$ (7)
$ (8)
Derivative Instruments (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Apr. 30, 2016
May 2, 2015
Jan. 30, 2016
Derivatives, Fair Value [Line Items]
 
 
 
Derivative Asset, Fair Value, Gross Asset
$ 15 
$ 20 
$ 43 
Derivative Liability, Fair Value, Gross Liability
13 
7 
1 
Notional Amount
1,049 
1,171 
1,052 
Net Investment Hedging [Member]
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax
(22)
(9)
 
Derivative Asset, Fair Value, Gross Asset
0 1
8 1
15 1
Derivative Liability, Fair Value, Gross Liability
11 1
2 1
1 1
Contract term
12 months 
 
 
Notional Amount
204 
222 
208 
Interest Rate Swap [Member]
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
Derivative Asset, Fair Value, Gross Asset
15 2
7 2
25 2
Derivative Liability, Fair Value, Gross Liability
0 2
2 2
0 2
Notional Amount
750 
750 
750 
Foreign Exchange Forward [Member] |
Not Designated as Hedging Instrument [Member]
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
Derivative Asset, Fair Value, Gross Asset
0 1
5 1
3 1
Derivative Liability, Fair Value, Gross Liability
2 1
3 1
0 1
Contract term
12 months 
 
 
Notional Amount
95 
199 
94 
Gain (loss) on foreign currency derivative instruments not designated as hedging instruments
$ (5)
$ (5)
 
Derivative Instruments Changes in Fair Value Hedges on Income (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Apr. 30, 2016
May 2, 2015
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Net impact on Condensed Consolidated Statements of Earnings
$ 0 
$ 0 
Interest Rate Swap [Member] |
Interest Expense [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Interest rate swap gain (loss)
 
4 
Adjustments to carrying value of long-term debt
(10)
 
Debt [Member] |
Interest Rate Swap [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Interest rate swap gain (loss)
10 
 
Adjustments to carrying value of long-term debt
 
$ (4)
Earnings per Share (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Apr. 30, 2016
May 2, 2015
Numerator
 
 
Net earnings from continuing operations
$ 226 
$ 37 
Denominator
 
 
Weighted-average common shares outstanding (in shares)
323.6 
352.4 
Effect of potentially dilutive securities:
 
 
Nonvested share awards (in shares)
3.1 
5.2 
Weighted-average common shares outstanding, assuming dilution (in shares)
326.7 
357.6 
Net earnings per share from continuing operations
 
 
Basic (in dollars per share)
$ 0.70 
$ 0.11 
Diluted (in dollars per share)
$ 0.69 
$ 0.10 
Antidilutive securities excluded from computation of earnings per share
9.1 
10.1 
Comprehensive Income (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Apr. 30, 2016
May 2, 2015
May 2, 2015
Best Buy Co., Inc. [Member]
Jan. 30, 2016
Best Buy Co., Inc. [Member]
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward]
 
 
 
 
Foreign Currency Translation, Beginning Balance
 
 
$ 382 
$ 271 
Foreign currency translation adjustments
45 
15 
 
 
Reclassification of foreign currency translation adjustments into earnings due to sale of business
0 
(67)
(67)
 
Foreign Currency Translation, Ending Balance
$ 316 
$ 330 
 
$ 271 
Repurchase of Common Stock (Details) (USD $)
Share data in Millions, unless otherwise specified
3 Months Ended 12 Months Ended 24 Months Ended
Apr. 30, 2016
Jan. 30, 2016
Jan. 27, 2018
Feb. 25, 2016
Jun. 30, 2011
Accelerated Share Repurchases [Line Items]
 
 
 
 
 
Stock Repurchased and Retired During Period, Shares
1.7 
 
 
 
 
Stock Repurchased and Retired During Period, Value
$ 45,000,000 
$ 120,000,000 
 
 
 
Stock Repurchase Program, Remaining Authorized Repurchase Amount
2,900,000,000 
3,000,000,000 
 
 
 
Stock Repurchase Program, Authorized Amount
 
 
 
1,000,000,000 
5,000,000,000 
Stock Repurchase Program, Period in Force
 
 
2 years 
 
 
June 2011 share repurchase program [Domain]
 
 
 
 
 
Accelerated Share Repurchases [Line Items]
 
 
 
 
 
Stock Repurchased and Retired During Period, Shares
3.3 
 
 
 
 
Stock Repurchased and Retired During Period, Value
101,000,000 
 
 
 
 
January 2016 ASR [Domain]
 
 
 
 
 
Accelerated Share Repurchases [Line Items]
 
 
 
 
 
Stock Repurchased and Retired During Period, Shares
1.6 
4.4 
 
 
 
Open market [Domain] |
June 2011 share repurchase program [Domain]
 
 
 
 
 
Accelerated Share Repurchases [Line Items]
 
 
 
 
 
Unsettled shares, shares
0.1 
 
 
 
 
Stock Repurchased and Retired During Period, Value
56,000,000 
 
 
 
 
Unsettled shares, cost
$ 4,000,000 
 
 
 
 
Repurchase of Common Stock Accelerated Share Repurchase (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Apr. 30, 2016
Jan. 30, 2016
Equity [Abstract]
 
 
Stock Repurchased and Retired During Period, Value
$ 45 
$ 120 
Stock Repurchased During Period, Value
101 
 
Accelerated Share Repurchase Program, Adjustment
10 
 
Accelerated Share Repurchase Settlement Amount
165 
 
Prepaid repurchase of common stock
 
(55)
Accelerated Share Repurchase Price (low end of the range)
 
150 
Accelerated Share Repurchase Price (high end of the range)
 
$ 175 
Stock Repurchased and Retired During Period, Shares
1.7 
 
January 2016 ASR [Domain]
 
 
Equity [Abstract]
 
 
Stock Repurchased and Retired During Period, Shares
1.6 
4.4 
Segments (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Apr. 30, 2016
segments
May 2, 2015
Jan. 30, 2016
Segment Reporting [Abstract]
 
 
 
Number of reportable segments
2 
 
 
Business segment information
 
 
 
Total assets
$ 12,901 
$ 13,712 
$ 13,519 
Total revenue
8,443 
8,558 
 
Operating income (loss)
372 
86 
 
Other income (expense)
 
 
 
Gain on sale of investments
2 
2 
 
Investment income and other
6 
7 
 
Interest expense
(20)
(20)
 
Earnings from continuing operations before income tax expense
360 
75 
 
Domestic [Member]
 
 
 
Business segment information
 
 
 
Total assets
11,562 
12,388 
12,318 
Total revenue
7,829 
7,890 
 
Operating income (loss)
372 
304 
 
International [Member]
 
 
 
Business segment information
 
 
 
Total assets
1,339 
1,324 
1,201 
Total revenue
614 
668 
 
Operating income (loss)
$ 0 
$ (218)
 
Contingencies (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Apr. 30, 2016
Jan. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
 
 
Proceeds from Legal Settlements
$ 161 
$ 75 
Proceeds from legal settlements, received
127 
 
Future Proceeds from Legal Settlements
$ 34