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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

?

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 30, 2022

OR

?

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from

to

Commission File Number: 1-9595

BEST BUY CO., INC.

(Exact name of registrant as specified in its charter)

Minnesota

(State or other jurisdiction of incorporation or organization)

41-0907483

(I.R.S. Employer Identification No.)

7601 Penn Avenue South

Richfield, Minnesota

(Address of principal executive offices)

55423

(Zip Code)

(612) 291-1000

(Registrant¡¯s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

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: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding

12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ? No ?

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (¡ì 232.405 of

this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ? No ?

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.

See the definitions of ¡°large accelerated filer,¡± ¡°accelerated filer,¡± ¡°smaller reporting company,¡± and ¡°emerging growth company¡± in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer ?

Accelerated Filer ?

Smaller Reporting Company ?

Non-accelerated Filer ?

Emerging Growth Company ?

If an emerging growth company, indicate by check mark if the 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. ?

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

The registrant had 225,168,407 shares of common stock outstanding as of May 31, 2022.

Yes ? No ?

Table of Contents

BEST BUY CO., INC.

FORM 10-Q FOR THE QUARTER ENDED APRIL 30, 2022

TABLE OF CONTENTS

Part I ¡ª Financial Information

Item 1.

Financial Statements

a)

Condensed Consolidated Balance Sheets as of April 30, 2022, January 29, 2022, and May 1, 2021

b)

Condensed Consolidated Statements of Earnings for the three months ended April 30, 2022, and May 1, 2021

c)

Condensed Consolidated Statements of Comprehensive Income for the three months ended April 30, 2022, and May 1, 2021

d)

Condensed Consolidated Statements of Cash Flows for the three months ended April 30, 2022, and May 1, 2021

e)

Condensed Consolidated Statements of Changes in Shareholders' Equity for the three months ended April 30, 2022, and May 1, 2021

f)

Notes to Condensed Consolidated Financial Statements

Item 2.

Management¡¯s Discussion and Analysis of Financial Condition and Results of Operations

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Item 4.

Controls and Procedures

Part II ¡ª Other Information

Item 1.

Legal Proceedings

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

Item 6.

Exhibits

Signatures

2

3

3

3

4

5

6

7

8

13

22

23

23

23

23

24

25

Table of Contents

PART I ¡ª FINANCIAL INFORMATION

Item 1.

Financial Statements

Condensed Consolidated Balance Sheets

$ in millions, except per share amounts (unaudited)

April 30, 2022

Assets

Current assets

Cash and cash equivalents

Short-term investments

Receivables, net

Merchandise inventories

Other current assets

Total current assets

Property and equipment, net

Operating lease assets

Goodwill

Other assets

Total assets

$

$

Liabilities and equity

Current liabilities

Accounts payable

$

Unredeemed gift card liabilities

Deferred revenue

Accrued compensation and related expenses

Accrued liabilities

Short-term debt

Current portion of operating lease liabilities

Current portion of long-term debt

Total current liabilities

Long-term operating lease liabilities

Long-term debt

Long-term liabilities

Contingencies (Note 10)

Equity

Preferred stock, $1.00 par value: Authorized - 400,000 shares; Issued and outstanding

- none

Common stock, $0.10 par value: Authorized - 1.0 billion shares; Issued and outstanding

- 224.6 million, 227.4 million and 250.4 million shares, respectively

Additional paid-in capital

Retained earnings

Accumulated other comprehensive income

Total equity

$

Total liabilities and equity

January 29, 2022

640

804

6,258

613

8,315

2,251

2,704

1,385

596

15,251

$

5,492

284

1,101

336

771

636

15

8,635

2,121

1,170

558

$

$

May 1, 2021

2,936

1,042

5,965

596

10,539

2,250

2,654

1,384

677

17,504

$

6,803

316

1,103

845

946

648

13

10,674

2,061

1,216

533

$

$

3

6,360

297

734

493

978

110

654

15

9,641

1,983

1,229

694

-

-

-

22

2,417

328

2,767

15,251

23

2,668

329

3,020

17,504

25

33

3,762

338

4,158

17,705

$

$

NOTE: The Consolidated Balance Sheet as of January 29, 2022, has been condensed from the audited consolidated financial statements.

See Notes to Condensed Consolidated Financial Statements.

4,278

60

850

5,721

359

11,268

2,233

2,563

986

655

17,705

Table of Contents

Condensed Consolidated Statements of Earnings

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

Revenue

Cost of sales

Gross profit

Selling, general and administrative expenses

Restructuring charges

Operating income

Other income (expense):

Investment income (expense) and other

Interest expense

Earnings before income tax expense and equity in income of affiliates

Income tax expense

Equity in income of affiliates

Net earnings

$

Basic earnings per share

Diluted earnings per share

Weighted-average common shares outstanding:

Basic

Diluted

Three Months Ended

April 30, 2022

May 1, 2021

10,647

$

11,637

8,294

8,922

2,353

2,715

1,890

1,988

1

(42)

462

769

$

(5)

(6)

451

110

341

$

3

(6)

766

172

1

595

$

$

1.50

1.49

$

$

2.35

2.32

226.8

228.4

See Notes to Condensed Consolidated Financial Statements.

4

253.1

256.7

Table of Contents

Condensed Consolidated Statements of Comprehensive Income

$ in millions (unaudited)

Three Months Ended

April 30, 2022

Net earnings

Foreign currency translation adjustments, net of tax

Comprehensive income

$

$

See Notes to Condensed Consolidated Financial Statements.

5

May 1, 2021

341

(1)

340

$

$

595

10

605

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