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Restructuring | 6 Months Ended
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Aug. 02, 2025
Restructuring and Related Activities [Abstract] |
Restructuring | Restructuring Restructuring charges were as follows ($ in millions):
| Three Months Ended |  | Six Months Ended
| August 2, 2025 |  | August 3, 2024 |  | August 2, 2025 |  | August 3, 2024
Fiscal 2026 Labor and Store Optimization Initiative | $ | 122 |  | $ | - |  | $ | 122 |  | $ | -
Best Buy Health Optimization and China Sourcing Initiative | (6) |  | - |  | 105 |  | -
Fiscal 2024 Restructuring Initiative | (2) |  | (6) |  | (4) |  | 10
Fiscal 2023 Resource Optimization Initiative | - |  | (1) |  | - |  | (2)
Total | $ | 114 |  | $ | (7) |  | $ | 223 |  | $ | 8
Fiscal 2026 Labor and Store Optimization Initiative In the second quarter of fiscal 2026, we commenced a restructuring initiative intended to align field resources with changing customer behaviors, close select non-traditional store locations and redirect corporate resources for better alignment with our strategy. We currently do not expect to incur material future restructuring charges related to this initiative. All charges incurred related to this initiative were from continuing operations and presented within Restructuring charges on our Condensed Consolidated Statements of Earnings. The composition of restructuring charges incurred related to this initiative were as follows ($ in millions):
| Three Months Ended
| Domestic |  | International |  | Total
Termination benefits | $ | 78 |  | $ | 3 |  | $ | 81
Asset impairments(1) | 41 |  | - |  | 41
Total | $ | 119 |  | $ | 3 |  | $ | 122
(1)Represents asset impairments primarily related to planned store closures, including an impairment related to an indefinite-lived tradename. See Note 3, Goodwill and Intangible Assets, for additional information. The remaining carrying value of net assets approximates fair value and was immaterial as of August 2, 2025. There were no cash payments related to this initiative during the second quarter of fiscal 2026. Our restructuring accrual liabilities related to termination benefits of $81 million as of August 2, 2025, reflect expected future cash payments primarily during fiscal 2026. Best Buy Health Optimization and China Sourcing Initiative In the first quarter of fiscal 2026, we commenced a restructuring initiative primarily focused on optimizing our Best Buy Health business by taking actions to maximize value and improve profitability in light of its performance against our original forecasting. These actions included the exit of a component of our Best Buy Health business that was finalized during the second quarter of fiscal 2026. In addition, we also made significant changes to reduce our exposure to tariffs, particularly in China. We currently do not expect to incur material future restructuring charges related to this initiative. All charges incurred related to this initiative were from continuing operations in our Domestic segment and presented within Restructuring charges on our Condensed Consolidated Statements of Earnings. The composition of restructuring charges incurred related to this initiative were as follows ($ in millions):
| Three Months Ended |  | Six Months Ended
| August 2, 2025 |  | August 2, 2025
Asset impairments and other costs(1) | $ | (3) |  | $ | 70
Termination benefits | (3) |  | 35
Total | $ | (6) |  | $ | 105
(1)Primarily represents the full impairment of net assets related to a component of our Best Buy Health business and other exit costs. The remaining carrying value of net assets approximates fair value and was immaterial as of August 2, 2025. Restructuring accrual activity related to this initiative was as follows ($ in millions):
| Termination Benefits |  | Asset Impairments and Other Costs |  | Total
Balances at February 1, 2025 | $ | - |  | $ | - |  | $ | -
Charges | 38 |  | 28 |  | 66
Cash payments | (9) |  | (27) |  | (36)
Adjustments(1) | (3) |  | (1) |  | (4)
Balances at August 2, 2025 | $ | 26 |  | $ | - |  | $ | 26
(1)Primarily represents adjustments for termination benefits primarily related to higher-than-expected employee retention from previously planned organizational changes. Our restructuring accrual liabilities related to termination benefits of $26 million as of August 2, 2025, reflect expected future cash payments primarily during fiscal 2026. Fiscal 2024 Restructuring Initiative During the fourth quarter of fiscal 2024, we commenced an enterprise-wide restructuring initiative intended to align field labor resources with where customers want to shop and to optimize the customer experience, redirect corporate resources for better alignment with our strategy and right-size resources to better align with our revenue outlook for fiscal 2025. We do not expect to incur material future restructuring charges related to this initiative. All charges incurred related to this initiative were comprised of employee termination benefits from continuing operations and were presented within Restructuring charges on our Condensed Consolidated Statements of Earnings as follows ($ in millions):
| Three Months Ended |  | Six Months Ended |  | Cumulative Amount as of
| August 2, 2025 |  | August 3, 2024 |  | August 2, 2025 |  | August 3, 2024 |  | August 2, 2025
Domestic | $ | (2) |  | 7 |  | $ | (4) |  | $ | 10 |  | $ | 162
International | - |  | (1) |  | - |  | - |  | 8
Total | $ | (2) |  | $ | 6 |  | $ | (4) |  | $ | 10 |  | $ | 170
Restructuring accrual activity related to this initiative was as follows ($ in millions):
| Termination Benefits
| Domestic |  | International |  | Total
Balances at February 1, 2025 | $ | 80 |  | $ | 5 |  | $ | 85
Cash 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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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4.e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479823/420-10-S99-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/420/tableOfContent Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 + Details
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