Company: BBY
Filing Date: 2025-12-05
Form Type: 10-Q
Source: 0000764478-25-000057
Chunk: 22

Company: BEST BUY CO INC
Filing Date: 2025-12-05
Form: 10-Q
Item: Part I, Item 1
Chunk 22
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-term debt consisted of the following ($ in millions):November 1, 2025February 1, 2025November 2, 2024Notes, 4.45%, due October 1, 2028 ("2028 Notes")$500$500$500Notes, 1.95%, due October 1, 2030 ("2030 Notes")650650650Interest rate swap valuation adjustments(7)(14)(16)Subtotal1,1431,1361,134Debt discounts and issuance costs(6)(7)(7)Finance lease obligations282529Total long-term debt1,1651,1541,156Less current portion101012Total long-term debt, less current portion$1,155$1,144$1,144Fair Value and Future MaturitiesSee Note 4, Fair Value Measurements, for the fair value of long-term debt. The 2028 Notes mature in fiscal 2029 and the 2030 Notes mature in fiscal 2031.

7.     Revenue

We generate substantially all of our revenue from contracts with customers from the sale of products and services. Contract balances primarily relate to unfulfilled membership benefits and services not yet completed, product merchandise not yet delivered to customers, unredeemed gift cards and deferred revenue from our private label and co-branded credit card arrangement. Contract balances were as follows ($ in millions):November 1, 2025February 1, 2025November 2, 2024Receivables, net(1)$605$504$471Short-term contract liabilities included in:Unredeemed gift card liabilities231253246Deferred revenue853951878Accrued liabilities675058Long-term contract liabilities included in:Long-term liabilities209229237(1)Receivables are recorded net of allowances for expected credit losses of $15 million, $20 million and $16 million as of November 1, 2025, February 1, 2025, and November 2, 2024, respectively. During the first nine months of fiscal 2026 and fiscal 2025, $1,003 million and $1,054 million of revenue was recognized, respectively, that was included in the contract liabilities at the beginning of the respective periods. Estimated revenue from our contract liability balances expected to be recognized in future periods if the performance of the contract is expected to have an initial duration of more than one year is as follows ($ in millions):Fiscal YearAmountRemainder