Company: BBY
Filing Date: 2025-09-05
Form Type: 10-Q
Source: 0000764478-25-000040
Chunk: 80

Company: BEST BUY CO INC
Filing Date: 2025-09-05
Form: 10-Q
Item: Part II, Item 2
Chunk 80
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2.     Restructuring

Restructuring charges were as follows ($ in millions):Three Months EndedSix Months EndedAugust 2, 2025August 3, 2024August 2, 2025August 3, 2024Fiscal 2026 Labor and Store Optimization Initiative$122$-$122$-Best Buy Health Optimization and China Sourcing Initiative(6)-105-Fiscal 2024 Restructuring Initiative(2)(6)(4)10Fiscal 2023 Resource Optimization Initiative-(1)-(2)Total$114$(7)$223$8Fiscal 2026 Labor and Store Optimization InitiativeIn the second quarter of fiscal 2026, we commenced a restructuring initiative intended to align field resources with changing customer behaviors, close select non-traditional store locations and redirect corporate resources for better alignment with our strategy. We currently do not expect to incur material future restructuring charges related to this initiative.All charges incurred related to this initiative were from continuing operations and presented within Restructuring charges on our Condensed Consolidated Statements of Earnings. The composition of restructuring charges incurred related to this initiative were as follows ($ in millions):Three Months EndedDomesticInternationalTotalTermination benefits$78$3$81Asset impairments(1)41-41Total$119$3$122(1)Represents asset impairments primarily related to planned store closures, including an impairment related to an indefinite-lived tradename. See Note 3, Goodwill and Intangible Assets, for additional information. The remaining carrying value of net assets approximates fair value and was immaterial as of August 2, 2025. There were no cash payments related to this initiative during the second quarter of fiscal 2026. Our restructuring accrual liabilities related to termination benefits of $81 million as of August 2, 2025, reflect expected future cash payments primarily during fiscal 2026.Best Buy Health Optimization and China Sourcing InitiativeIn the first quarter of fiscal 2026, we commenced a restructuring initiative primarily focused on optimizing our Best Buy Health business by taking actions to maximize value and improve profitability in light of its performance against our original forecasting. These actions included the exit of a component of our Best Buy Health business that was finalized during the second quarter of fiscal 2026. In addition, we also made significant changes to reduce our exposure to tariffs, particularly in China. We currently do not expect to incur material future restructuring charges related to this initiative.

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