BEST BUY CO INCBBY

BEST BUY CO INC Fair Value Disclosure

10-KFiled Mar 18, 20263 min read
Fair Value Measurements
Fair value measurements are reported in one of three levels based on the lowest level of significant input used: Level 1 (unadjusted quoted prices in active markets); Level 2 (observable market inputs, other than quoted prices included in Level 1); and Level 3 (unobservable inputs that cannot be corroborated by observable market data).
Recurring Fair Value Measurements

Financial assets and liabilities accounted for at fair value were as follows ($ in millions):
Balance Sheet Location(1)
Fair Value
Hierarchy		Fair Value at
AssetsJanuary 31, 2026February 1, 2025
Money market funds(2)
Cash and cash equivalentsLevel 1$143 $439 
Time deposits(3)
Cash and cash equivalentsLevel 2252 150 
Commercial paper(2)
Cash and cash equivalentsLevel 237 - 
Money market funds(2)
Other current assetsLevel 1123 140 
Time deposits(3)
Other current assetsLevel 230 50 
Marketable securities that fund deferred compensation(4)
Other assetsLevel 141 39 
Liabilities
Interest rate swap derivative instruments(5)
Long-term liabilitiesLevel 21 14 
(1)Balance sheet location is determined by the length to maturity at date of purchase and whether the assets are restricted for particular use.
(2)Valued at quoted market prices in active markets at period end.
(3)Valued at face value plus accrued interest at period end, which approximates fair value.
(4)Valued using the performance of mutual funds that trade with sufficient frequency and volume to obtain pricing information on an ongoing basis.
(5)Valued using readily observable market inputs. These instruments are custom, over-the-counter contracts with various bank counterparties that are not traded on an active market. See Note 5, Derivative Instruments, for additional information.

Nonrecurring Fair Value Measurements

In fiscal 2026, we recorded asset impairments and other costs as a result of restructuring initiatives that commenced in the first and second quarters of fiscal 2026. Refer to Note 2, Restructuring, for additional information.

In the third quarter of fiscal 2026, we recorded goodwill and definite-lived intangible asset impairments related to Best Buy Health. Refer to Note 3, Goodwill and Intangible Assets, for additional information. In addition, we recorded $21 million of long-lived asset impairments related to Best Buy Health, included in SG&A on our Consolidated Statements of Earnings. The remaining carrying value of net long-lived assets subject to impairment approximates fair value and was immaterial as of January 31, 2026.

All nonrecurring fair value remeasurements mentioned above were based on significant unobservable inputs (Level 3).

Fair Value of Financial Instruments

The fair values of cash, certain restricted cash, receivables, accounts payable and other payables approximated their carrying values because of the short-term nature of these instruments. If these instruments were measured at fair value in the financial statements, they would be classified as Level 1 in the fair value hierarchy. Fair values for other investments held at cost are not readily available, but we estimate that the carrying values for these investments approximate their fair values.

Long-term debt is presented at carrying value on our Consolidated Balance Sheets. If our long-term debt were recorded at fair value, it would be classified as Level 2 in the fair value hierarchy. Long-term debt balances were as follows ($ in millions):
January 31, 2026February 1, 2025
Fair ValueCarrying ValueFair ValueCarrying Value
Long-term debt(1)
$1,089 $1,149 $1,031 $1,136 
(1)Excludes debt discounts, issuance costs and finance lease obligations.
Free Sentinel

Want the next BEST BUY CO INC fair value disclosure the moment it drops?

Set a Sentinel and we'll alert you the moment BEST BUY CO INC's next filing hits EDGAR. No credit card, your email never gets sold.

Track for free

Historical Timeline

Fiscal YearFiled
2026Mar 18, 2026Showing above
2025Mar 19, 2025
2024Mar 15, 2024
2023Mar 17, 2023
2022Mar 18, 2022
2021Mar 19, 2021
2020Mar 23, 2020
2019Mar 28, 2019
2018Apr 2, 2018
2017Mar 24, 2017
2016Mar 23, 2016

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.

Other Available Disclosures

Income TaxesRevenuePP&EGoodwill & IntangiblesLeasesSegmentsDebtCommitmentsNew Standards