Company: BBY
Filing Date: 2025-12-05
Form Type: 10-Q
Source: 0000764478-25-000057
Chunk: 18

Company: BEST BUY CO INC
Filing Date: 2025-12-05
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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airmentGross Carrying AmountCumulative ImpairmentDomestic$1,450$(660)$1,450$(542)$1,450$(67)International608(608)608(608)608(608)Total$2,058$(1,268)$2,058$(1,150)$2,058$(675)In the third quarter of fiscal 2026, we recorded a goodwill impairment of $118 million within the Domestic segment for the Best Buy Health reporting unit. The carrying value of the Best Buy Health reporting unit as of November 1, 2025, was $298 million. A change in Best Buy Health’s customer base during the quarter resulted in an impairment review of all Best Buy Health assets. The fair value of Best Buy Health was estimated primarily based on discounted cash flow analysis. The impairment reflects downward revisions of our revenue growth rates and margin rates compared to previous projections, in part due to pressures in the Medicaid and Medicare Advantage markets. In addition, definite-lived intangible asset impairments and long-lived asset impairments were also recorded. Refer to Note 4, Fair Value Measurements, for additional information.Indefinite-Lived Intangible AssetsIn the second quarter of fiscal 2026, we recorded a full impairment of $16 million related to our only remaining indefinite-lived intangible asset as a result of restructuring activity that commenced in the second quarter of fiscal 2026. Refer to Note 2, Restructuring, for additional information.Definite-Lived Intangible AssetsWe have definite-lived intangible assets recorded within Other assets on our Condensed Consolidated Balance Sheets as follows ($ in millions):November 1, 2025February 1, 2025November 2, 2024Weighted-Average Useful Life Remainingas of November 1, 2025(in years)Gross Carrying Amount(1)Accumulated Amortization(1)Gross Carrying AmountAccumulated AmortizationGross Carrying AmountAccumulated AmortizationCustomer relationships(2)$339$339$360$285$360$283-Tradenames8780927992770.9Developed technology565664616460-Total$482$475$516$425$516$4200.9(1)Gross carrying amount and accumulated amortization as of November 1, 2025, excludes $34 million and $16 million, respectively, of definite-lived intangible assets related to the exit of a component of