Company: BBY
Filing Date: 2025-09-05
Form Type: 10-Q
Source: 0000764478-25-000040
Chunk: 82

Company: BEST BUY CO INC
Filing Date: 2025-09-05
Form: 10-Q
Item: Part II, Item 2
Chunk 82
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 1, 2025$80$5$85Cash payments(15)(1)(16)Adjustments(1)(4)-(4)Balances at August 2, 2025$61$4$65(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 $65 million as of August 2, 2025, reflect expected future cash payments primarily during fiscal 2026.

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Table of Contents

3.    Goodwill and Intangible Assets

GoodwillGoodwill balances by segment were as follows ($ in millions):August 2, 2025February 1, 2025August 3, 2024Gross Carrying AmountCumulative ImpairmentGross Carrying AmountCumulative ImpairmentGross Carrying AmountCumulative ImpairmentDomestic$1,450$(542)$1,450$(542)$1,450$(67)International608(608)608(608)608(608)Total$2,058$(1,150)$2,058$(1,150)$2,058$(675)In fiscal 2025, we recorded a goodwill impairment of $475 million within the Domestic segment for the Best Buy Health reporting unit. The restructuring activity that commenced in the first quarter of fiscal 2026 was a triggering event to evaluate the Best Buy Health reporting unit for impairment. No further goodwill impairment was identified. Refer to Note 2, Restructuring, for additional information.Indefinite-Lived Intangible AssetsIn the second quarter of fiscal 2026, we recorded a full impairment of $16 million related to our only remaining indefinite-lived intangible asset as a result of restructuring activity that commenced in the second quarter of fiscal 2026. Refer to Note 2, Restructuring, for additional information.Definite-Lived Intangible AssetsWe have definite-lived intangible assets recorded within Other assets on our Condensed Consolidated Balance Sheets as follows ($ in millions):August 2, 2025February 1, 2025August 3, 2024Weighted-Average Useful Life Remainingas of August 2, 2025(in years)Gross Carrying Amount(1)Accumulated Amortization(1)Gross Carrying AmountAccumulated AmortizationGross Carrying AmountAccumulated AmortizationCustomer relationships$339$284$360$285$360$280