8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) May 30, 2024

BEST BUY CO., INC.

(Exact name of registrant as specified in its charter)

Minnesota	1-9595	41-0907483
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

7601 Penn Avenue South
Richfield, Minnesota	55423
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code (612) 291-1000

N/A

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol	Name of exchange on which registered
Common Stock, $0.10 par value per share	BBY	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company 

If an emerging growth company, indicate by check mark if registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

‎

Item 2.02 Results of Operations and Financial Condition.

On May 30, 2024, Best Buy Co., Inc. (“Best Buy” or the “registrant”) issued a news release announcing its results of operations for the first quarter ended May 4, 2024.

The registrant is scheduled to conduct an earnings conference call at 8:00 a.m. Eastern Time (7:00 a.m. Central Time) today, May 30, 2024. The earnings conference call is expected to be available live on the registrant’s website at https://investors.bestbuy.com.

The news release issued on May 30, 2024, is furnished as Exhibit 99 to this Current Report on Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability of that Section unless the registrant specifically incorporates it by reference in a document filed under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

The following are furnished as Exhibits to this Current Report on Form 8-K.

Exhibit No.	Description of Exhibit
99	News release issued May 30, 2024 (furnished pursuant to Item 2.02). Any internet address provided in this release is for information purposes only and is not intended to be a hyperlink. Accordingly, no information at any internet address is included herein.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

‎

2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		BEST BUY CO., INC.
		(Registrant)
Date: May 30, 2024	By:	/s/ MATHEW R. WATSON
		Mathew R. Watson
		Senior Vice President, Finance – Controller and Chief Accounting Officer

3

EX-99

Exhibit 99

Best Buy Reports First Quarter Results

Comparable Sales Declined 6.1%

GAAP Diluted EPS Increased 2% to $1.13

Non-GAAP Diluted EPS Increased 4% to $1.20

FY25 Non-GAAP Diluted EPS Guidance Range of $5.75 to $6.20 Unchanged

MINNEAPOLIS, May 30, 2024 -- Best Buy Co., Inc. (NYSE: BBY) today announced results for the 13-week first quarter ended May 4, 2024 (“Q1 FY25”), as compared to the 13-week first quarter ended April 29, 2023 (“Q1 FY24”).

	Q1 FY25			Q1 FY24
Revenue ($ in millions)
Enterprise	$	8,847		$	9,467
Domestic segment	$	8,203		$	8,801
International segment	$	644		$	666
Enterprise comparable sales % change1		(6.1)	%		(10.1)	%
Domestic comparable sales % change1		(6.3)	%		(10.4)	%
Domestic comparable online sales % change1		(6.1)	%		(12.1)	%
International comparable sales % change1		(3.3)	%		(5.5)	%
Operating Income
GAAP operating income as a % of revenue		3.5	%		3.3	%
Non-GAAP operating income as a % of revenue		3.8	%		3.4	%
Diluted Earnings per Share ("EPS")
GAAP diluted EPS	$	1.13		$	1.11
Non-GAAP diluted EPS	$	1.20		$	1.15

For GAAP to non-GAAP reconciliations of the measures referred to in the above table, please refer to the attached supporting schedule.

“Today we are reporting better-than-expected Q1 profitability,” said Corie Barry, Best Buy CEO. “Through strong execution, we continued to manage our profitability while at the same time preparing for future growth. We made progress on our FY25 priorities, grew our paid membership base and drove improvements in our customer experiences.”

Barry continued, “The mix of macro factors continued to create a challenging sales environment for our category during the quarter and our sales were slightly softer than our expectations. We will continue to navigate the environment while remaining focused and energized about our purpose to Enrich Lives through Technology. There is exciting new innovation ahead and we intend to strengthen our position in key categories like computing, home theater and major appliances through our differentiated experiences, pointed marketing spend and competitive pricing.” 

FY25 Financial Guidance

“As we look to the rest of the year, we continue to expect sequential improvement in our comparable sales performance, however, we believe we are trending towards the midpoint of our annual comparable sales guidance,” said Matt Bilunas, Best Buy CFO. “Even at the midpoint of the comparable sales guidance, we expect to deliver profitability at the high end of our non-GAAP operating income rate guidance due to a higher gross profit rate in our membership and services offerings.”

Bilunas continued, “For Q2 FY25, we expect comparable sales to decline by approximately 3% and our non-GAAP operating income rate to be approximately 3.5%.”

Best Buy’s guidance for FY25 is the following:

· Revenue of $41.3 billion to $42.6 billion

· Comparable sales1 of (3.0%) to 0.0%

· Enterprise non-GAAP operating income rate2 of 3.9% to 4.1%

· Non-GAAP effective income tax rate2 of approximately 25.0%

· Non-GAAP diluted EPS2 of $5.75 to $6.20

· Capital expenditures of approximately $750 million

Note: FY25 has 52 weeks compared to 53 weeks in FY24. The company estimates the impact of the extra week in Q4 FY24 added approximately $735 million in revenue, approximately 15 basis points of non-GAAP operating income rate and approximately $0.30 of non-GAAP diluted EPS to the full-year results.  

Domestic Segment Q1 FY25 Results

Domestic Revenue

Domestic revenue of $8.20 billion decreased 6.8% versus last year primarily driven by a comparable sales decline of 6.3%.

From a merchandising perspective, the largest drivers of the comparable sales decline on a weighted basis were appliances, home theater, gaming and mobile phones. These drivers were partially offset by growth in the services and laptop categories.

Domestic online revenue of $2.52 billion decreased 6.1% on a comparable basis, and as a percentage of total Domestic revenue, online revenue was 30.8% versus 30.5% last year.

Domestic Gross Profit Rate

Domestic gross profit rate was 23.4% versus 22.6% last year. The higher gross profit rate was primarily due to improved financial performance from the company’s services category, including its membership offerings, which was partially offset by lower product margin rates and lower profit-sharing revenue from the company’s private label and co-branded credit card arrangement.

Domestic Selling, General and Administrative Expenses (“SG&A”)

Domestic GAAP SG&A expenses were $1.60 billion, or 19.5% of revenue, versus $1.71 billion, or 19.4% of revenue, last year. On a non-GAAP basis, SG&A expenses were $1.59 billion, or 19.4% of revenue, versus $1.69 billion, or 19.2% of revenue, last year. Both GAAP and non-GAAP SG&A decreased due to: (1) lower employee compensation expense, which was primarily store payroll; (2) reduced vehicle rental costs; and (3) lower expenses across multiple other areas. These decreases were partially offset by higher technology expense.

2

International Segment Q1 FY25 Results

International Revenue

International revenue of $644 million decreased 3.3% versus last year driven by a comparable sales decline of 3.3%.

International Gross Profit Rate

International gross profit rate was 22.8% versus 23.7% last year. The lower gross profit rate was primarily due to lower product margin rates.

International SG&A

International SG&A expenses were $139 million, or 21.6% of revenue, versus $138 million, or 20.7% of revenue, last year.

Restructuring Charges

The company incurred $15 million of restructuring charges in Q1 FY25, primarily related to employee termination benefits associated with an enterprise-wide restructuring initiative that commenced in Q4 FY24. The company does not expect to incur material future restructuring charges related to this initiative. Consistent with prior practice, restructuring charges are excluded from the company’s non-GAAP results.

Share Repurchases and Dividends

In Q1 FY25, the company returned a total of $252 million to shareholders through dividends of $202 million and share repurchases of $50 million.

Today, the company announced its board of directors has authorized the payment of a regular quarterly cash dividend of $0.94 per common share. The quarterly dividend is payable on July 11, 2024, to shareholders of record as of the close of business on June 20, 2024.

Conference Call

Best Buy is scheduled to conduct an earnings conference call at 8:00 a.m. Eastern Time (7:00 a.m. Central Time) on May 30, 2024. A webcast of the call is expected to be available at www.investors.bestbuy.com,  both live and after the call.

Notes:

(1) The method of calculating comparable sales varies across the retail industry. As a result, our method of calculating comparable sales may not be the same as other retailers’ methods. For additional information on comparable sales, please see our most recent Annual Report on Form 10-K, and our subsequent Quarterly Reports on Form 10-Q, filed with the Securities and Exchange Commission (“SEC”), and available at www.investors.bestbuy.com.

(2) A reconciliation of the projected non-GAAP operating income rate, non-GAAP effective income tax rate, and non-GAAP diluted EPS, which are forward-looking non-GAAP financial measures, to the most directly comparable GAAP financial measures, is not provided because the company is unable to provide such reconciliation without unreasonable effort. The inability to provide a reconciliation is due to the uncertainty and inherent difficulty predicting the occurrence, the financial impact and the periods in which the non-GAAP adjustments may be recognized. These GAAP measures may include the impact of such items as restructuring charges; price-fixing settlements; goodwill and intangible asset impairments; gains and losses on sales of subsidiaries and certain investments; intangible asset amortization; certain acquisition-related costs; and the tax effect of all such items.

3

Historically, the company has excluded these items from non-GAAP financial measures. The company currently expects to continue to exclude these items in future disclosures of non-GAAP financial measures and may also exclude other items that may arise (collectively, “non-GAAP adjustments”). The decisions and events that typically lead to the recognition of non-GAAP adjustments, such as a decision to exit part of the business or reaching settlement of a legal dispute, are inherently unpredictable as to if or when they may occur. For the same reasons, the company is unable to address the probable significance of the unavailable information, which could be material to future results.

Forward-Looking and Cautionary Statements:

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. You can identify these statements by the fact that they use words such as "anticipate," “appear,” “approximate,” "assume," "believe," “continue,” “could,” "estimate," "expect," “foresee,” "guidance," "intend," “may,” “might,” "outlook," "plan," “possible,” "project" “seek,” “should,” “would,” and other words and terms of similar meaning or the negatives thereof. Such statements reflect our current views and estimates with respect to future market conditions, company performance and financial results, operational investments, business prospects, our operating model, new strategies and growth initiatives, the competitive environment, consumer behavior and other events. These statements involve a number of judgments and are subject to certain risks and uncertainties, many of which are outside the control of the Company, that could cause actual results to differ materially from the potential results discussed in such forward-looking statements. Readers should review Item 1A, Risk Factors, of our most recent Annual Report on Form 10-K, and any updated information in subsequent Quarterly Reports on Form 10-Q, for a description of important factors that could cause our actual results to differ materially from those contemplated by the forward-looking statements made in this release. Among the factors that could cause actual results and outcomes to differ materially from those contained in such forward-looking statements are the following: macroeconomic pressures in the markets in which we operate (including but not limited to recession, inflation rates, fluctuations in foreign currency exchange rates, limitations on a government’s ability to borrow and/or spend capital, fluctuations in housing prices, energy markets, jobless rates and effects related to the conflicts in Eastern Europe and the Middle East or other geopolitical events); catastrophic events, health crises and pandemics; susceptibility of the products we sell to technological advancements, product life cycle fluctuations and changes in consumer preferences; competition (including from multi-channel retailers, e-commerce business, technology service providers, traditional store-based retailers, vendors and mobile network carriers and in the provision of delivery speed and options); our ability to attract and retain qualified employees; changes in market compensation rates; our expansion into health and new products, services and technologies; our focus on services as a strategic priority; our reliance on key vendors and mobile network carriers (including product availability); our ability to maintain positive brand perception and recognition; our ability to effectively manage strategic ventures, alliances or acquisitions; our ability to effectively manage our real estate portfolio; inability of vendors or service providers to perform components of our supply chain (impacting our stores or other aspects of our operations) and other various functions of our business; risks arising from and potentially unique to our exclusive brands products; risks associated with vendors that source products outside the U.S.; our reliance on our information technology systems, internet and telecommunications access and capabilities; our ability to prevent or effectively respond to a cyber-attack, privacy or security breach; product safety and quality concerns; changes to labor or employment laws or regulations; risks arising from statutory, regulatory and legal developments (including statutes and/or regulations related to tax or privacy); evolving corporate governance and public disclosure regulations and expectations (including, but not limited to, cybersecurity and environmental, social and governance matters); risks arising from our international activities (including fluctuations in foreign currency exchange rates) and those of our vendors; failure to effectively manage our costs; our dependence on cash flows and net earnings generated during the fourth fiscal quarter; pricing investments and promotional activity; economic or regulatory developments that might affect our ability to provide attractive promotional financing; constraints in the capital markets; changes to our vendor credit terms; changes in our credit ratings; and failure to meet financial-performance guidance or other forward-looking statements. We caution that the foregoing list of important factors is not complete. Any forward-looking statements speak only as of the date they are made and we assume no obligation to update any forward-looking statement that we may make.

Investor Contact:	Media Contact:
Mollie O'Brien	Carly Charlson
mollie.obrien@bestbuy.com	carly.charlson@bestbuy.com

4

BEST BUY CO., INC.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

($ and shares in millions, except per share amounts)

(Unaudited and subject to reclassification)

	Three Months Ended
	May 4, 2024			April 29, 2023
Revenue	$	8,847		$	9,467
Cost of sales		6,783			7,317
Gross profit		2,064			2,150
Gross profit %		23.3	%		22.7	%
Selling, general and administrative expenses		1,737			1,848
SG&A %		19.6	%		19.5	%
Restructuring charges		15			(9)
Operating income		312			311
Operating income %		3.5	%		3.3	%
Other income (expense):
Investment income and other		25			21
Interest expense		(12)			(12)
Earnings before income tax expense and equity in income (loss) of affiliates		325			320
Income tax expense		80			75
Effective tax rate		24.7	%		23.3	%
Equity in income (loss) of affiliates		1			(1)
Net earnings	$	246		$	244
Basic earnings per share	$	1.14		$	1.11
Diluted earnings per share	$	1.13		$	1.11
Weighted-average common shares outstanding:
Basic		216.2			218.9
Diluted		217.2			219.9

5

BEST BUY CO., INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

($ in millions)

(Unaudited and subject to reclassification)

	May 4, 2024		April 29, 2023
Assets
Current assets:
Cash and cash equivalents	$	1,214	$	1,030
Receivables, net		770		860
Merchandise inventories		5,225		5,219
Other current assets		544		653
Total current assets		7,753		7,762
Property and equipment, net		2,196		2,321
Operating lease assets		2,771		2,694
Goodwill		1,383		1,383
Other assets		649		528
Total assets	$	14,752	$	14,688
Liabilities and equity
Current liabilities:
Accounts payable	$	4,664	$	4,874
Unredeemed gift card liabilities		242		256
Deferred revenue		923		1,015
Accrued compensation and related expenses		380		364
Accrued liabilities		812		759
Current portion of operating lease liabilities		613		625
Current portion of long-term debt		15		15
Total current liabilities		7,649		7,908
Long-term operating lease liabilities		2,222		2,128
Long-term debt		1,134		1,155
Long-term liabilities		665		704
Equity		3,082		2,793
Total liabilities and equity	$	14,752	$	14,688

6

BEST BUY CO., INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

($ in millions)

(Unaudited and subject to reclassification)

	Three Months Ended
	May 4, 2024		April 29, 2023
Operating activities
Net earnings	$	246	$	244
Adjustments to reconcile net earnings to total cash provided by (used in) operating activities:
Depreciation and amortization		219		237
Restructuring charges		15		(9)
Stock-based compensation		38		38
Other, net		12		14
Changes in operating assets and liabilities:
Receivables		168		279
Merchandise inventories		(273)		(86)
Other assets		(8)		(17)
Accounts payable		43		(790)
Income taxes		13		46
Other liabilities		(317)		(287)
Total cash provided by (used in) operating activities		156		(331)
Investing activities
Additions to property and equipment		(152)		(204)
Other, net		(15)		-
Total cash used in investing activities		(167)		(204)
Financing activities
Repurchase of common stock		(50)		(79)
Dividends paid		(202)		(202)
Total cash used in financing activities		(252)		(281)
Effect of exchange rate changes on cash and cash equivalents		(3)		(5)
Decrease in cash, cash equivalents and restricted cash		(266)		(821)
Cash, cash equivalents and restricted cash at beginning of period		1,793		2,253
Cash, cash equivalents and restricted cash at end of period	$	1,527	$	1,432

7

BEST BUY CO., INC.

SEGMENT INFORMATION

($ in millions)

(Unaudited and subject to reclassification)

	Three Months Ended
Domestic Segment Results	May 4, 2024			April 29, 2023
Revenue	$	8,203		$	8,801
Comparable sales % change		(6.3)	%		(10.4)	%
Comparable online sales % change		(6.1)	%		(12.1)	%
Gross profit	$	1,917		$	1,992
Gross profit as a % of revenue		23.4	%		22.6	%
SG&A	$	1,598		$	1,710
SG&A as a % of revenue		19.5	%		19.4	%
Operating income	$	303		$	290
Operating income as a % of revenue		3.7	%		3.3	%
Domestic Segment Non-GAAP Results1
Gross profit	$	1,917		$	1,992
Gross profit as a % of revenue		23.4	%		22.6	%
SG&A	$	1,592		$	1,690
SG&A as a % of revenue		19.4	%		19.2	%
Operating income	$	325		$	302
Operating income as a % of revenue		4.0	%		3.4	%
	Three Months Ended
International Segment Results	May 4, 2024			April 29, 2023
Revenue	$	644		$	666
Comparable sales % change		(3.3)	%		(5.5)	%
Gross profit	$	147		$	158
Gross profit as a % of revenue		22.8	%		23.7	%
SG&A	$	139		$	138
SG&A as a % of revenue		21.6	%		20.7	%
Operating income	$	9		$	21
Operating income as a % of revenue		1.4	%		3.2	%
International Segment Non-GAAP Results1
Gross profit	$	147		$	158
Gross profit as a % of revenue		22.8	%		23.7	%
SG&A	$	139		$	138
SG&A as a % of revenue		21.6	%		20.7	%
Operating income	$	8		$	20
Operating income as a % of revenue		1.2	%		3.0	%

(1)For GAAP to non-GAAP reconciliations, please refer to the attached supporting schedule titled Reconciliation of Non-GAAP Financial Measures.

8

BEST BUY CO., INC.

REVENUE CATEGORY SUMMARY

(Unaudited and subject to reclassification)

	Revenue Mix				Comparable Sales
	Three Months Ended				Three Months Ended
Domestic Segment	May 4, 2024		April 29, 2023		May 4, 2024		April 29, 2023
Computing and Mobile Phones	44	%	42	%	(2.2)	%	(13.3)	%
Consumer Electronics	29	%	29	%	(8.3)	%	(9.8)	%
Appliances	13	%	15	%	(18.5)	%	(15.5)	%
Entertainment	6	%	7	%	(11.3)	%	3.8	%
Services	7	%	6	%	9.0	%	12.0	%
Other	1	%	1	%	18.2	%	(12.1)	%
Total	100	%	100	%	(6.3)	%	(10.4)	%
	Revenue Mix				Comparable Sales
	Three Months Ended				Three Months Ended
International Segment	May 4, 2024		April 29, 2023		May 4, 2024		April 29, 2023
Computing and Mobile Phones	50	%	47	%	0.7	%	(3.6)	%
Consumer Electronics	27	%	28	%	(6.6)	%	(9.1)	%
Appliances	9	%	9	%	2.0	%	(11.7)	%
Entertainment	7	%	9	%	(22.9)	%	12.0	%
Services	6	%	5	%	5.0	%	(11.2)	%
Other	1	%	2	%	(13.4)	%	(19.0)	%
Total	100	%	100	%	(3.3)	%	(5.5)	%

9

BEST BUY CO., INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

($ in millions, except per share amounts)

(Unaudited and subject to reclassification)

The following information provides reconciliations of the most comparable financial measures presented in accordance with accounting principles generally accepted in the U.S. (GAAP financial measures) to presented non-GAAP financial measures. The company believes that non-GAAP financial measures, when reviewed in conjunction with GAAP financial measures, can provide more information to assist investors in evaluating current period performance and in assessing future performance. For these reasons, internal management reporting also includes non-GAAP financial measures. Generally, presented non-GAAP financial measures include adjustments for items such as restructuring charges, goodwill and intangible asset impairments, price-fixing settlements, gains and losses on subsidiaries and certain investments, intangible asset amortization, certain acquisition-related costs and the tax effect of all such items. In addition, certain other items may be excluded from non-GAAP financial measures when the company believes this provides greater clarity to management and investors. These non-GAAP financial measures should be considered in addition to, and not superior to or as a substitute for, the GAAP financial measures presented in this earnings release and the company’s financial statements and other publicly filed reports. Non-GAAP financial measures as presented herein may not be comparable to similarly titled measures used by other companies.

	Three Months Ended									Three Months Ended
	May 4, 2024									April 29, 2023
	Domestic			International			Consolidated			Domestic			International			Consolidated
SG&A	$	1,598		$	139		$	1,737		$	1,710		$	138		$	1,848
% of revenue		19.5	%		21.6	%		19.6	%		19.4	%		20.7	%		19.5	%
Intangible asset amortization1		(6)			-			(6)			(20)			-			(20)
Non-GAAP SG&A	$	1,592		$	139		$	1,731		$	1,690		$	138		$	1,828
% of revenue		19.4	%		21.6	%		19.6	%		19.2	%		20.7	%		19.3	%
Operating income	$	303		$	9		$	312		$	290		$	21		$	311
% of revenue		3.7	%		1.4	%		3.5	%		3.3	%		3.2	%		3.3	%
Intangible asset amortization1		6			-			6			20			-			20
Restructuring charges2		16			(1)			15			(8)			(1)			(9)
Non-GAAP operating income	$	325		$	8		$	333		$	302		$	20		$	322
% of revenue		4.0	%		1.2	%		3.8	%		3.4	%		3.0	%		3.4	%
Effective tax rate								24.7	%								23.3	%
Intangible asset amortization1								-	%								0.1	%
Non-GAAP effective tax rate								24.7	%								23.4	%

	Three Months Ended						Three Months Ended
	May 4, 2024						April 29, 2023
	Pretax Earnings		Net of Tax3		Per Share		Pretax Earnings		Net of Tax3		Per Share
Diluted EPS					$	1.13					$	1.11
Intangible asset amortization1	$	6	$	4		0.02	$	20	$	15		0.07
Restructuring charges2		15		11		0.05		(9)		(7)		(0.03)
Non-GAAP diluted EPS					$	1.20					$	1.15

(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 related to employee termination benefits and subsequent adjustments from higher-than-expected employee retention associated with enterprise-wide restructuring initiatives.

(3)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%.

10

Return on Assets and Non-GAAP Return on Investment

The tables below provide calculations of return on assets ("ROA") (GAAP financial measure) and non-GAAP return on investment (“ROI”) (non-GAAP financial measure) for the periods presented. The company believes ROA is the most directly comparable financial measure to ROI. Non-GAAP ROI is defined as non-GAAP adjusted operating income after tax divided by average invested operating assets. All periods presented below apply this methodology consistently. The company believes non-GAAP ROI is a meaningful metric for investors to evaluate capital efficiency because it measures how key assets are deployed by adjusting operating income and total assets for the items noted below. This method of determining non-GAAP ROI may differ from other companies' methods and therefore may not be comparable to those used by other companies.

Return on Assets ("ROA")	May 4, 20241			April 29, 20231
Net earnings	$	1,243		$	1,322
Total assets		15,909			16,242
ROA		7.8	%		8.1	%
Non-GAAP Return on Investment ("ROI")	May 4, 20241			April 29, 20231
Numerator
Operating income	$	1,575		$	1,644
Add: Non-GAAP operating income adjustments2		224			221
Add: Operating lease interest3		114			114
Less: Income taxes4		(469)			(485)
Add: Depreciation		858			847
Add: Operating lease amortization5		660			664
Adjusted operating income after tax	$	2,962		$	3,005
Denominator
Total assets	$	15,909		$	16,242
Less: Excess cash6		(330)			(264)
Add: Accumulated depreciation and amortization7		5,167			5,110
Less: Adjusted current liabilities8		(8,355)			(8,853)
Average invested operating assets	$	12,391		$	12,235
Non-GAAP ROI		23.9	%		24.6	%

(1) Income statement accounts represent the activity for the trailing 12 months ended as of each of the balance sheet dates. Balance sheet accounts represent the average account balances for the trailing 12 months ended as of each of the balance sheet dates.

(2) Non-GAAP operating income adjustments include continuing operations adjustments for restructuring charges and intangible asset amortization. Additional details regarding these adjustments are included in the Reconciliation of Non-GAAP Financial Measures schedule within the company’s earnings releases.

(3) Operating lease interest represents the add-back to operating income to approximate the total interest expense that the company would incur if its operating leases were owned and financed by debt. The add-back is approximated by multiplying average operating lease assets by 4%, which approximates the interest rate on the company’s operating lease liabilities.

(4) Income taxes are approximated by using a blended statutory rate at the Enterprise level based on statutory rates from the countries in which the company does business, which primarily consists of the U.S. with a statutory rate of 24.5% for the periods presented.

(5) Operating lease amortization represents operating lease cost less operating lease interest. Operating lease cost includes short-term leases, which are immaterial, and excludes variable lease costs as these costs are not included in the operating lease asset balance.

(6) Excess cash represents the amount of cash, cash equivalents and short-term investments greater than $1 billion, which approximates the amount of cash the company believes is necessary to run the business and may fluctuate over time.

(7) Accumulated depreciation and amortization represents accumulated depreciation related to property and equipment and accumulated amortization related to definite-lived intangible assets.

(8) Adjusted current liabilities represent total current liabilities less short-term debt and the current portions of operating lease liabilities and long-term debt.

11

XML

Document And Entity Information	May 30, 2024
Document And Entity Information [Abstract]
Document Type	8-K
Document Period End Date	May 30, 2024
Entity Registrant Name	BEST BUY CO., INC.
Entity Incorporation, State or Country Code	MN
Entity File Number	1-9595
Entity Tax Identification Number	41-0907483
Entity Address, Address Line One	7601 Penn Avenue South
Entity Address, City or Town	Richfield
Entity Address, State or Province	MN
Entity Address, Postal Zip Code	55423
City Area Code	612
Local Phone Number	291-1000
Written Communications	false
Soliciting Material	false
Pre Commencement Tender Offer	false
Pre Commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, $0.10 par value per share
Trading Symbol	BBY
Security Exchange Name	NYSE
Entity Emerging Growth Company	false
Entity Central Index Key	0000764478
Amendment Flag	false