Company: BBY
Filing Date: 2025-12-05
Form Type: 10-Q
Source: 0000764478-25-000057
Chunk: 122

Company: BEST BUY CO INC
Filing Date: 2025-12-05
Form: 10-Q
Item: Part I, Item 2
Chunk 122
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4)Primarily represents the loss on disposal of a component of our Best Buy Health business.

(5)The non-GAAP adjustments primarily relate to the U.S. As such, the forecasted annual income tax on a portion of the U.S. non-GAAP adjustments is calculated using the statutory tax rate of 24.5%, adjusted for tax benefits discrete to the period. There is no forecasted annual income tax for a portion of the U.S. non-GAAP adjustments, as there is no forecasted annual tax benefit on the expenses in the calculation of GAAP income tax expense.

Adjusted operating income rate increased in the third quarter of fiscal 2026, primarily due to a favorable SG&A rate, partially offset by an unfavorable gross profit rate. 

Adjusted operating income rate in the first nine months of fiscal 2026 remained effectively unchanged from the first nine months of fiscal 2025.

Adjusted effective tax rate increased in the third quarter of fiscal 2026, primarily due to decreased tax benefits from green energy incentives and increased U.S. taxes from sourcing operations, partially offset by increased tax benefits from resolutions of tax matters. Adjusted effective tax rate increased in the first nine months of fiscal 2026, primarily due to decreased tax benefits from green energy incentives and resolutions of tax matters, as well as increased U.S. taxes from sourcing operations.

Adjusted diluted EPS increased in the third quarter of fiscal 2026, primarily due to higher adjusted operating income. 

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Adjusted diluted EPS increased in the first nine months of fiscal 2026, primarily due to higher adjusted operating income and lower diluted weighted-average common shares outstanding, partially offset by the impact of the higher adjusted effective tax rate and lower investment income.

Liquidity and Capital Resources

We closely manage our liquidity and capital resources. Our liquidity requirements depend on key variables, including the level of investment required to support our business strategies, the performance of our business, capital expenditures, dividends, credit facilities, short-term borrowing arrangements and working capital management. We modify our approach to managing these variables as changes in our operating environment arise. For example, capital expenditures and share repurchases are a component of our cash flow and capital management strategy, which, to a large extent, we can adjust in response to economic and other changes in our business environment. 

Cash and cash equivalents were as follows ($ in millions):

November 1, 2025February 1, 2025November 2, 2024Cash and cash equivalents$923$1,578$643

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