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Goodwill and Intangible Assets | 12 Months Ended
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Feb. 01, 2025
Goodwill and Intangible Assets [Abstract] |
Goodwill and Intangible Assets | 3. Goodwill and Intangible Assets Goodwill Goodwill balances by segment were as follows ($ in millions):
| February 1, 2025 |  | February 3, 2024
| Gross Carrying Amount |  | Cumulative Impairment |  | Gross Carrying Amount |  | Cumulative Impairment
Domestic | $ | 1,450 |  |  | $ | (542) |  |  | $ | 1,450 |  |  | $ | (67) |
International |  | 608 |  |  |  | (608) |  |  |  | 608 |  |  |  | (608) |
Total | $ | 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 impairment was identified during the fourth quarter as a result of our annual impairment review. This coincides with our annual review of performance against financial and strategic goals, and the annual update of our budget and long-range financial projections. Fair value for the Best Buy Health reporting unit is estimated primarily based on DCF analysis. The impairment primarily arose from downward revisions of our revenue growth rates and margin rates compared to projections used in prior years, as the market has not scaled as we originally forecasted. Indefinite-Lived Intangible Assets In the second quarter of fiscal 2025, we reclassified our Yardbird tradename from a definite-lived intangible asset to an indefinite-lived intangible asset to better reflect our expectations of the long-term use of the tradename. The carrying value of the tradename was $16 million as of February 1, 2025, and was recorded within Other assets on our Consolidated Balance Sheets. Definite-Lived Intangible Assets We have definite-lived intangible assets which are recorded within Other assets on our Consolidated Balance Sheets as follows ($ in millions):
| February 1, 2025 |  | February 3, 2024 |  | Weighted-Average
| Gross Carrying Amount |  | Accumulated Amortization |  | Gross Carrying Amount |  | Accumulated Amortization |  | Useful Life Remaining as of February 1, 2025 (in years)
Customer relationships | $ | 360 |  |  | $ | 285 |  |  | $ | 360 |  |  | $ | 276 |  |  |  | 7.6 |
Tradenames |  | 92 |  |  |  | 79 |  |  |  | 108 |  |  |  | 69 |  |  |  | 1.7 |
Developed technology |  | 64 |  |  |  | 61 |  |  |  | 64 |  |  |  | 59 |  |  |  | 2.8 |
Total | $ | 516 |  |  | $ | 425 |  |  | $ | 532 |  |  | $ | 404 |  |  |  | 6.6 |
Amortization expense was as follows ($ in millions):
| Statement of Earnings Location | 2025 |  | 2024 |  | 2023
Amortization expense | SG&A |  | $ | 21 |  |  | $ | 61 |  |  | $ | 86 |
Amortization expense expected to be recognized in future periods is as follows ($ in millions):
Fiscal Year |  |  |  |  |  |  |  |  |  |  |  |  |  | Amount |
Fiscal 2026 |  |  |  |  |  |  |  |  |  |  |  |  | $ | 20 |
Fiscal 2027 |  |  |  |  |  |  |  |  |  |  |  |  |  | 18 |
Fiscal 2028 |  |  |  |  |  |  |  |  |  |  |  |  |  | 12 |
Fiscal 2029 |  |  |  |  |  |  |  |  |  |  |  |  |  | 10 |
Fiscal 2030 |  |  |  |  |  |  |  |  |  |  |  |  |  | 8 |
Thereafter |  |  |  |  |  |  |  |  |  |  |  |  |  | 23 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
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