Company: BBY
Filing Date: 2025-12-05
Form Type: 10-Q
Source: 0000764478-25-000057
Chunk: 53

Company: BEST BUY CO INC
Filing Date: 2025-12-05
Form: 10-Q
Item: Part I, Item 8
Chunk 53
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. Fair values for other investments held at cost are not readily available, but we estimate that the carrying values for these investments approximate their fair values.Long-term debt is presented at carrying value on our Condensed Consolidated Balance Sheets. If our long-term debt were recorded at fair value, it would be classified as Level 2 in the fair value hierarchy. Long-term debt balances were as follows ($ in millions):November 1, 2025February 1, 2025November 2, 2024Fair ValueCarrying ValueFair ValueCarrying ValueFair ValueCarrying ValueLong-term debt(1)$1,076$1,143$1,031$1,136$1,028$1,134(1)Excludes debt discounts, issuance costs and finance lease obligations.

5.     Derivative Instruments

We manage our economic and transaction exposure to certain risks by using foreign exchange forward contracts to hedge against the effect of Canadian dollar exchange rate fluctuations on a portion of our net investment in our Canadian operations and by using interest rate swaps to mitigate interest rate risk on our $500 million of principal amount of notes due October 1, 2028. In addition, we use foreign currency forward contracts not designated as hedging instruments to manage the impact of fluctuations in foreign currency exchange rates relative to recognized receivable and payable balances denominated in non-functional currencies.Our derivative instruments designated as net investment hedges and fair value hedges are recorded on our Condensed Consolidated Balance Sheets at fair value. See Note 4, Fair Value Measurements, for gross fair values of our outstanding derivative instruments and corresponding fair value classifications.Notional amounts of our derivative instruments were as follows ($ in millions): November 1, 2025February 1, 2025November 2, 2024Derivatives designated as net investment hedges$119$119$119Derivatives designated as fair value hedges (interest rate swaps)500500500No hedge designation (foreign exchange contracts)7542129Total$694$661$748Effects of our fair value hedges included in Interest expense on our Condensed Consolidated Statements of Earnings were as follows ($ in millions):Gain (Loss) RecognizedThree Months EndedNine Months EndedNovember 1, 2025November 2, 2024November 1, 2025November 2, 2024Interest rate swaps$(8)$(14)$7$(5)Adjustments to carrying value of long-term debt814(7)5Total$-$-$