Company: BBY
Filing Date: 2025-12-05
Form Type: 10-Q
Source: 0000764478-25-000057
Chunk: 21

Company: BEST BUY CO INC
Filing Date: 2025-12-05
Form: 10-Q
Item: Part I, Item 1
Chunk 21
---
 our Canadian operations and by using interest rate swaps to mitigate interest rate risk on our $500 million of principal amount of notes due October 1, 2028. In addition, we use foreign currency forward contracts not designated as hedging instruments to manage the impact of fluctuations in foreign currency exchange rates relative to recognized receivable and payable balances denominated in non-functional currencies.Our derivative instruments designated as net investment hedges and fair value hedges are recorded on our Condensed Consolidated Balance Sheets at fair value. See Note 4, Fair Value Measurements, for gross fair values of our outstanding derivative instruments and corresponding fair value classifications.Notional amounts of our derivative instruments were as follows ($ in millions): November 1, 2025February 1, 2025November 2, 2024Derivatives designated as net investment hedges$119$119$119Derivatives designated as fair value hedges (interest rate swaps)500500500No hedge designation (foreign exchange contracts)7542129Total$694$661$748Effects of our fair value hedges included in Interest expense on our Condensed Consolidated Statements of Earnings were as follows ($ in millions):Gain (Loss) RecognizedThree Months EndedNine Months EndedNovember 1, 2025November 2, 2024November 1, 2025November 2, 2024Interest rate swaps$(8)$(14)$7$(5)Adjustments to carrying value of long-term debt814(7)5Total$-$-$-$-

6.     Debt

Short-Term DebtU.S. Revolving Credit FacilityOn April 18, 2025, we entered into a $1.25 billion five-year senior unsecured revolving credit facility agreement (the “Five-Year Facility Agreement”) with a syndicate of banks. The Five-Year Facility Agreement replaced the previous $1.25 billion senior unsecured revolving credit facility (the “Previous Facility”) with a syndicate of banks, which was entered into April 2023 and scheduled to expire April 2028, but was terminated on April 18, 2025. The Five-Year Facility Agreement permits borrowings of up to $1.25 billion and expires in April 2030. There were no borrowings outstanding under the Five-Year Facility Agreement as of November 1, 2025, or the Previous Facility as of February 1, 2025, or November 2, 2024.

13

Long-Term DebtLong