Goodwill and Intangible Assets

12 Months Ended

Jan. 31, 2026

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill and Intangible Assets

Goodwill

Goodwill balances by segment were as follows ($ in millions):

	January 31, 2026				February 1, 2025
	Gross Carrying Amount		Cumulative Impairment		Gross Carrying Amount		Cumulative Impairment
Domestic	$	1,450	$	(660)	$	1,450	$	(542)
International	608		(608)		608		(608)
Total	$	2,058	$	(1,268)	$	2,058	$	(1,150)

In the third quarter of fiscal 2026, we recorded a goodwill impairment of $118 million within the Domestic segment for the Best Buy Health reporting unit. The carrying value of the Best Buy Health reporting unit as of January 31, 2026, was $298 million. A change in Best Buy Health’s customer base during the third quarter of fiscal 2026 resulted in an impairment review of all Best Buy Health assets. The fair value of Best Buy Health was estimated primarily based on DCF analysis. The impairment reflects downward revisions of our revenue growth rates and margin rates compared to previous projections, in part due to pressures in the Medicaid and Medicare Advantage markets. In addition, definite-lived intangible asset impairments and long-lived asset impairments were also recorded. Refer to Note 4, Fair Value Measurements, for additional information. No further impairments were identified in the fourth quarter of fiscal 2026.

Indefinite-Lived Intangible Assets

In the second quarter of fiscal 2026, we recorded a full impairment of $16 million related to our only remaining indefinite-lived intangible asset as a result of restructuring activity that commenced in the second quarter of fiscal 2026. Refer to Note 2, Restructuring, for additional information.

Definite-Lived Intangible Assets

We have definite-lived intangible assets recorded within Other assets on our Consolidated Balance Sheets as follows ($ in millions):

	January 31, 2026				February 1, 2025				Weighted-Average Useful Life Remaining as of January 31, 2026 (in years)
	Gross Carrying Amount(1)		Accumulated Amortization(1)		Gross Carrying Amount		Accumulated Amortization
Customer relationships(2)	$	339	$	339	$	360	$	285	-
Tradenames	87		82		92		79		0.7
Developed technology	56		56		64		61		-
Total	$	482	$	477	$	516	$	425	0.7

(1)Gross carrying amount and accumulated amortization as of January 31, 2026, excludes $34 million and $16 million, respectively, of definite-lived intangible assets related to the exit of a component of our Best Buy Health business in the second quarter of fiscal 2026. See Note 2, Restructuring, for additional information.

(2)Accumulated amortization as of January 31, 2026, includes $53 million of impairments related to Best Buy Health included in Goodwill and intangible asset impairments on our Consolidated Statements of Earnings.

Amortization expense, included in SG&A on our Consolidated Statements of Earnings, was as follows ($ in millions):

	2026		2025		2024
Amortization expense	$	14	$	21	$	61