Company: BBY
Filing Date: 2025-09-05
Form Type: 10-Q
Source: 0000764478-25-000040
Chunk: 21

Company: BEST BUY CO INC
Filing Date: 2025-09-05
Form: 10-Q
Item: Part I, Item 1
Chunk 21
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the “Previous Facility”) with a syndicate of banks, which was entered into April 2023 and scheduled to expire April 2028, but was terminated on April 18, 2025. The Five-Year Facility Agreement permits borrowings of up to $1.25 billion and expires in April 2030. There were no borrowings outstanding under the Five-Year Facility Agreement as of August 2, 2025, or the Previous Facility as of February 1, 2025, or August 3, 2024.Long-Term DebtLong-term debt consisted of the following ($ in millions):August 2, 2025February 1, 2025August 3, 2024Notes, 4.45%, due October 1, 2028 ("2028 Notes")$500$500$500Notes, 1.95%, due October 1, 2030 ("2030 Notes")650650650Interest rate swap valuation adjustments-(14)(2)Subtotal1,1501,1361,148Debt discounts and issuance costs(6)(7)(7)Finance lease obligations302529Total long-term debt1,1741,1541,170Less current portion101013Total long-term debt, less current portion$1,164$1,144$1,157Fair Value and Future MaturitiesSee Note 4, Fair Value Measurements, for the fair value of long-term debt. Both the 2028 Notes and the 2030 Notes mature within the next five fiscal years.

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Table of Contents

7.     Revenue

We generate substantially all of our revenue from contracts with customers from the sale of products and services. Contract balances primarily relate to unfulfilled membership benefits and services not yet completed, product merchandise not yet delivered to customers, deferred revenue from our private label and co-branded credit card arrangement and unredeemed gift cards. Contract balances were as follows ($ in millions):August 2, 2025February 1, 2025August 3, 2024Receivables, net(1)$486$504$474Short-term contract liabilities included in:Unredeemed gift card liabilities230253243Deferred revenue889951940Accrued liabilities605064Long-term contract liabilities included in:Long-term liabilities213229233(1)Receivables are recorded net of allowances for expected credit losses of $14 million, $20 million and $16 million as of August 2, 202