BEST BUY CO INCBBY

BEST BUY CO INC Revenue Disclosure

10-KFiled Mar 18, 20261 min read
Revenue
We generate most of our revenue from contracts with customers from the sale of products and services. Contract balances primarily relate to unfulfilled membership benefits and services not yet completed, product merchandise not yet delivered to customers, unredeemed gift cards and deferred revenue from our private label and co-branded credit card arrangement. Contract balances were as follows ($ in millions):
January 31, 2026February 1, 2025
Receivables, net(1)
$538 $504 
Short-term contract liabilities included in:
Unredeemed gift card liabilities235 253 
Deferred revenue900 951 
Accrued liabilities57 50 
Long-term contract liabilities included in:
Long-term liabilities205 229 
(1)Receivables are recorded net of allowances for expected credit losses of $17 million and $20 million as of January 31, 2026, and February 1, 2025, respectively.

During fiscal 2026 and fiscal 2025, $1.1 billion and $1.1 billion of revenue was recognized, respectively, that was included in contract liabilities at the beginning of the respective periods.

Estimated revenue from our contract liability balances expected to be recognized in future periods if the performance of the contract is expected to have an initial duration of more than one year is as follows ($ in millions):
Fiscal YearAmount
Fiscal 2027$36 
Fiscal 202833 
Fiscal 202928 
Fiscal 203028 
Fiscal 203127 
Thereafter89 

See Note 13, Segment and Geographic Information, for information on our revenue by segment and category.
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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

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

Other Available Disclosures

Income TaxesFair ValuePP&EGoodwill & IntangiblesLeasesSegmentsDebtCommitmentsNew Standards