Company: BBY
Filing Date: 2025-09-05
Form Type: 10-Q
Source: 0000764478-25-000040
Chunk: 81

Company: BEST BUY CO INC
Filing Date: 2025-09-05
Form: 10-Q
Item: Part II, Item 2
Chunk 81
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 charges incurred related to this initiative were from continuing operations in our Domestic segment 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 EndedSix Months EndedAugust 2, 2025August 2, 2025Asset impairments and other costs(1)$(3)$70Termination benefits(3)35Total$(6)$105(1)Primarily represents the full impairment of net assets related to a component of our Best Buy Health business and other exit costs. The remaining carrying value of net assets approximates fair value and was immaterial as of August 2, 2025.Restructuring accrual activity related to this initiative was as follows ($ in millions):Termination BenefitsAsset Impairments and Other CostsTotalBalances at February 1, 2025$-$-$-Charges382866Cash payments(9)(27)(36)Adjustments(1)(3)(1)(4)Balances at August 2, 2025$26$-$26(1)Primarily represents adjustments for termination benefits primarily related to higher-than-expected employee retention from previously planned organizational changes.Our restructuring accrual liabilities related to termination benefits of $26 million as of August 2, 2025, reflect expected future cash payments primarily during fiscal 2026.Fiscal 2024 Restructuring InitiativeDuring the fourth quarter of fiscal 2024, we commenced an enterprise-wide restructuring initiative intended to align field labor resources with where customers want to shop and to optimize the customer experience, redirect corporate resources for better alignment with our strategy and right-size resources to better align with our revenue outlook for fiscal 2025. We do not expect to incur material future restructuring charges related to this initiative.All charges incurred related to this initiative were comprised of employee termination benefits from continuing operations and were presented within Restructuring charges on our Condensed Consolidated Statements of Earnings as follows ($ in millions):Three Months EndedSix Months EndedCumulative Amount as ofAugust 2, 2025August 3, 2024August 2, 2025August 3, 2024August 2, 2025Domestic$(2)7$(4)$10$162International-(1)--8Total$(2)$6$(4)$10$170Restructuring accrual activity related to this initiative was as follows ($ in millions):Termination BenefitsDomesticInternationalTotalBalances at February