Goodwill and Intangible Assets

12 Months Ended

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