Company: BBY
Filing Date: 2025-09-05
Form Type: 10-Q
Source: 0000764478-25-000040
Chunk: 101

Company: BEST BUY CO INC
Filing Date: 2025-09-05
Form: 10-Q
Item: Part II, Item 2
Chunk 101
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(3)0.1 %— %0.2 %— %Adjusted effective tax rate27.8 %25.8 %27.4 %25.3 %Diluted EPS$0.87 $1.34 $1.82 $2.47 Intangible asset amortization(1)0.02 0.03 0.04 0.05 Restructuring charges(2)0.54 (0.03)1.05 0.04 Loss on disposal of subsidiaries(3)0.02 - 0.02 - Income tax impact of non-GAAP adjustments(4)(0.17)- (0.50)(0.02)Adjusted diluted EPS$1.28 $1.34 $2.43 $2.54 

For additional information regarding the nature of charges discussed below, refer to Note 2, Restructuring, and Note 3, Goodwill and Intangible Assets, of the Notes to Condensed Consolidated Financial Statements, included in this Quarterly Report on Form 10-Q.

(1)Represents the non-cash amortization of definite-lived intangible assets associated with acquisitions, including customer relationships, tradenames and developed technology assets. 

(2)Represents charges for the three and six months ended August 2, 2025, primarily related to a labor and store optimization initiative that commenced in the second quarter of fiscal 2026, and charges and subsequent adjustments related to a restructuring initiative within our Best Buy Health business that commenced in the first quarter of fiscal 2026. Charges and subsequent adjustments for the three and six months ended August 3, 2024, primarily related to an enterprise-wide restructuring initiative that commenced in the fourth quarter of fiscal 2024. 

(3)Primarily represents the loss on disposal of a component of our Best Buy Health business.

(4)The non-GAAP adjustments primarily relate to the U.S. As such, the income tax charge on the U.S. non-GAAP adjustments is calculated using the statutory tax rate of 24.5%, adjusted for tax benefits discrete to the period.

Adjusted operating income rate decreased in the second quarter of fiscal 2026, primarily due to an unfavorable gross profit rate. Adjusted operating income rate in the first six months of fiscal 2026 remained effectively unchanged from the first six months of fiscal 2025.

Adjusted effective tax rate increased