Company: BBY
Filing Date: 2025-12-05
Form Type: 10-Q
Source: 0000764478-25-000057
Chunk: 52

Company: BEST BUY CO INC
Filing Date: 2025-12-05
Form: 10-Q
Item: Part I, Item 8
Chunk 52
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Fair Value HierarchyNovember 1, 2025February 1, 2025November 2, 2024AssetsMoney market funds(2)Cash and cash equivalentsLevel 1$29$439$40Time deposits(3)Cash and cash equivalentsLevel 21341505Money market funds(2)Other current assetsLevel 1122140139Time deposits(3)Other current assetsLevel 2405050Marketable securities that fund deferred compensation(4)Other assetsLevel 1413938LiabilitiesInterest rate swap derivative instruments(5)Long-term liabilitiesLevel 271416(1)Balance sheet location is determined by the length to maturity at date of purchase and whether the assets are restricted for particular use.(2)Valued at quoted market prices in active markets at period end.(3)Valued at face value plus accrued interest at period end, which approximates fair value.(4)Valued using the performance of mutual funds that trade with sufficient frequency and volume to obtain pricing information on an ongoing basis.(5)Valued using readily observable market inputs. These instruments are custom, over-the-counter contracts with various bank counterparties that are not traded on an active market. See Note 5, Derivative Instruments, for additional information.Nonrecurring Fair Value MeasurementsIn the first six months of fiscal 2026, we recorded asset impairments and other costs as a result of restructuring initiatives that commenced in the first and second quarters of fiscal 2026. Refer to Note 2, Restructuring, for additional information.In the third quarter of fiscal 2026, we recorded goodwill and definite-lived intangible asset impairments related to Best Buy Health. Refer to Note 3, Goodwill and Intangible Assets, for additional information. In addition, we recorded $21 million of long-lived asset impairments related to Best Buy Health, included in SG&A on our Condensed Consolidated Statements of Earnings. The remaining carrying value of net long-lived assets subject to impairment approximates fair value and was immaterial as of November 1, 2025.All nonrecurring fair value remeasurements mentioned above were based on significant unobservable inputs (Level 3).

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Fair Value of Financial InstrumentsThe fair values of cash, certain restricted cash, receivables, accounts payable and other payables approximated their carrying values because of the short-term nature of these instruments. If these instruments were measured at fair value in the financial statements, they would be classified as Level 1 in the fair value hierarchy