Company: BBY
Filing Date: 2025-12-05
Form Type: 10-Q
Source: 0000764478-25-000057
Chunk: 48

Company: BEST BUY CO INC
Filing Date: 2025-12-05
Form: 10-Q
Item: Part I, Item 8
Chunk 48
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 and China Sourcing Initiative(3)—102—Fiscal 2024 Restructuring Initiative(1)(4)(5)6Fiscal 2023 Resource Optimization Initiative———(2)Total$(5)$(4)$218$4Fiscal 2026 Labor and Store Optimization InitiativeIn the second quarter of fiscal 2026, we commenced a restructuring initiative intended to align field resources with changing customer behaviors, close select non-traditional store locations and redirect corporate resources for better alignment with our strategy. We currently do not expect to incur material future restructuring charges related to this initiative.All charges incurred related to this initiative were from continuing operations and presented within Restructuring charges on our Condensed Consolidated Statements of Earnings. The composition of restructuring charges incurred related to this initiative were as follows ($ in millions):Three Months EndedNine Months EndedNovember 1, 2025November 1, 2025DomesticInternationalTotalDomesticInternationalTotalTermination benefits$(1)$—$(1)$77$3$80Asset impairments(1)———41—41Total$(1)$—$(1)$118$3$121(1)Represents asset impairments primarily related to planned store closures, including an impairment related to an indefinite-lived tradename. See Note 3, Goodwill and Intangible Assets, for additional information. The remaining carrying value of net assets approximates fair value and was immaterial as of November 1, 2025. Restructuring accrual activity related to this initiative was as follows ($ in millions):Termination BenefitsDomesticInternationalTotalBalances at February 1, 2025$-$-$-Charges78381Cash payments(17)-(17)Adjustments(1)(1)-(1)Balances at November 1, 2025$60$3$63(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 $63 million as of November 1, 2025, reflect expected future cash payments primarily during fiscal 2027.

9

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