Company: BBY
Filing Date: 2025-09-05
Form Type: 10-Q
Source: 0000764478-25-000040
Chunk: 17

Company: BEST BUY CO INC
Filing Date: 2025-09-05
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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 right-size resources to better align with our revenue outlook for fiscal 2025. We do not expect to incur material future restructuring charges related to this initiative.All charges incurred related to this initiative were comprised of employee termination benefits from continuing operations and were presented within Restructuring charges on our Condensed Consolidated Statements of Earnings as follows ($ in millions):Three Months EndedSix Months EndedCumulative Amount as ofAugust 2, 2025August 3, 2024August 2, 2025August 3, 2024August 2, 2025Domestic$(2)7$(4)$10$162International-(1)--8Total$(2)$6$(4)$10$170Restructuring accrual activity related to this initiative was as follows ($ in millions):Termination BenefitsDomesticInternationalTotalBalances at February 1, 2025$80$5$85Cash payments(15)(1)(16)Adjustments(1)(4)-(4)Balances at August 2, 2025$61$4$65(1)Represents adjustments primarily related to higher-than-expected employee retention from previously planned organizational changes.Our restructuring accrual liabilities related to termination benefits of $65 million as of August 2, 2025, reflect expected future cash payments primarily during fiscal 2026.

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Table of Contents

3.    Goodwill and Intangible Assets

GoodwillGoodwill balances by segment were as follows ($ in millions):August 2, 2025February 1, 2025August 3, 2024Gross Carrying AmountCumulative ImpairmentGross Carrying AmountCumulative ImpairmentGross Carrying AmountCumulative ImpairmentDomestic$1,450$(542)$1,450$(542)$1,450$(67)International608(608)608(608)608(608)Total$2,058$(1,150)$2,058$(1,150)$2,058$(675)In fiscal 2025, we recorded a goodwill impairment of $475 million within the Domestic segment for the Best Buy Health reporting unit. The restructuring activity that commenced in the first quarter of fiscal 2026 was a triggering event to evaluate the Best Buy Health reporting unit for impairment. No further goodwill impairment was identified. Refer to Note 2, Restructuring, for additional information.Indefinite-Lived Intangible AssetsIn the second quarter of fiscal 2026, we recorded a