Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Best Buy Co. Inc., balance sheet: goodwill and intangible assets

US$ in millions

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Goodwill	1,384)	986)	984)	915)	425)	425)
Tradename	—)	—)	18)	18)	18)	18)
Indefinite-lived intangible asset	—)	—)	18)	18)	18)	18)
Customer relationships	360)	339)	339)	258)	—)	—)
Tradenames	108)	81)	63)	63)	—)	—)
Developed technology	64)	56)	56)	52)	—)	—)
Definite-lived intangible assets, gross carrying amount	532)	476)	458)	373)	—)	—)
Accumulated amortization	(257)	(175)	(95)	(23)	—)	—)
Definite-lived intangible assets, net	275)	301)	363)	350)	—)	—)
Intangible assets	275)	301)	381)	368)	18)	18)
Goodwill and intangible assets	1,659)	1,287)	1,365)	1,283)	443)	443)

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

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Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	Best Buy Co. Inc. goodwill increased from 2020 to 2021 and from 2021 to 2022.
Intangible assets	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Best Buy Co. Inc. intangible assets decreased from 2020 to 2021 and from 2021 to 2022.
Goodwill and intangible assets	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Best Buy Co. Inc. goodwill and intangible assets decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.

Best Buy Co. Inc., adjustments to financial statements

US$ in millions

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Adjustment to Total Assets
Total assets (as reported)	17,504)	19,067)	15,591)	12,901)	13,049)	13,856)
Less: Goodwill	1,384)	986)	984)	915)	425)	425)
Total assets (adjusted)	16,120)	18,081)	14,607)	11,986)	12,624)	13,431)
Adjustment to Total Best Buy Co., Inc. Shareholders’ Equity
Total Best Buy Co., Inc. shareholders’ equity (as reported)	3,020)	4,587)	3,479)	3,306)	3,612)	4,709)
Less: Goodwill	1,384)	986)	984)	915)	425)	425)
Total Best Buy Co., Inc. shareholders’ equity (adjusted)	1,636)	3,601)	2,495)	2,391)	3,187)	4,284)

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

Best Buy Co. Inc., Financial Data: Reported vs. Adjusted

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Best Buy Co. Inc., adjusted financial ratios

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Total Asset Turnover
Reported total asset turnover	2.96	2.48	2.80	3.32	3.23	2.84
Adjusted total asset turnover	3.21	2.61	2.99	3.58	3.34	2.93
Financial Leverage
Reported financial leverage	5.80	4.16	4.48	3.90	3.61	2.94
Adjusted financial leverage	9.85	5.02	5.85	5.01	3.96	3.14
Return on Equity (ROE)
Reported ROE	81.26%	39.20%	44.29%	44.28%	27.69%	26.08%
Adjusted ROE	150.00%	49.93%	61.76%	61.23%	31.38%	28.66%
Return on Assets (ROA)
Reported ROA	14.02%	9.43%	9.88%	11.35%	7.66%	8.86%
Adjusted ROA	15.22%	9.94%	10.55%	12.21%	7.92%	9.14%

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Best Buy Co. Inc. adjusted total asset turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Best Buy Co. Inc. adjusted financial leverage ratio decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Best Buy Co. Inc. adjusted ROE deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Best Buy Co. Inc. adjusted ROA deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

Best Buy Co. Inc., Financial Ratios: Reported vs. Adjusted

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	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
As Reported
Selected Financial Data (US$ in millions)
Revenue	51,761)	47,262)	43,638)	42,879)	42,151)	39,403)
Total assets	17,504)	19,067)	15,591)	12,901)	13,049)	13,856)
Activity Ratio
Total asset turnover¹	2.96	2.48	2.80	3.32	3.23	2.84
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenue	51,761)	47,262)	43,638)	42,879)	42,151)	39,403)
Adjusted total assets	16,120)	18,081)	14,607)	11,986)	12,624)	13,431)
Activity Ratio
Adjusted total asset turnover²	3.21	2.61	2.99	3.58	3.34	2.93

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

2022 Calculations

¹ Total asset turnover = Revenue ÷ Total assets
= 51,761 ÷ 17,504 = 2.96

² Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 51,761 ÷ 16,120 = 3.21

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Best Buy Co. Inc. adjusted total asset turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
As Reported
Selected Financial Data (US$ in millions)
Total assets	17,504)	19,067)	15,591)	12,901)	13,049)	13,856)
Total Best Buy Co., Inc. shareholders’ equity	3,020)	4,587)	3,479)	3,306)	3,612)	4,709)
Solvency Ratio
Financial leverage¹	5.80	4.16	4.48	3.90	3.61	2.94
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	16,120)	18,081)	14,607)	11,986)	12,624)	13,431)
Adjusted total Best Buy Co., Inc. shareholders’ equity	1,636)	3,601)	2,495)	2,391)	3,187)	4,284)
Solvency Ratio
Adjusted financial leverage²	9.85	5.02	5.85	5.01	3.96	3.14

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

2022 Calculations

¹ Financial leverage = Total assets ÷ Total Best Buy Co., Inc. shareholders’ equity
= 17,504 ÷ 3,020 = 5.80

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Best Buy Co., Inc. shareholders’ equity
= 16,120 ÷ 1,636 = 9.85

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Best Buy Co. Inc. adjusted financial leverage ratio decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
As Reported
Selected Financial Data (US$ in millions)
Net earnings	2,454)	1,798)	1,541)	1,464)	1,000)	1,228)
Total Best Buy Co., Inc. shareholders’ equity	3,020)	4,587)	3,479)	3,306)	3,612)	4,709)
Profitability Ratio
ROE¹	81.26%	39.20%	44.29%	44.28%	27.69%	26.08%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net earnings	2,454)	1,798)	1,541)	1,464)	1,000)	1,228)
Adjusted total Best Buy Co., Inc. shareholders’ equity	1,636)	3,601)	2,495)	2,391)	3,187)	4,284)
Profitability Ratio
Adjusted ROE²	150.00%	49.93%	61.76%	61.23%	31.38%	28.66%

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

2022 Calculations

¹ ROE = 100 × Net earnings ÷ Total Best Buy Co., Inc. shareholders’ equity
= 100 × 2,454 ÷ 3,020 = 81.26%

² Adjusted ROE = 100 × Net earnings ÷ Adjusted total Best Buy Co., Inc. shareholders’ equity
= 100 × 2,454 ÷ 1,636 = 150.00%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Best Buy Co. Inc. adjusted ROE deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
As Reported
Selected Financial Data (US$ in millions)
Net earnings	2,454)	1,798)	1,541)	1,464)	1,000)	1,228)
Total assets	17,504)	19,067)	15,591)	12,901)	13,049)	13,856)
Profitability Ratio
ROA¹	14.02%	9.43%	9.88%	11.35%	7.66%	8.86%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net earnings	2,454)	1,798)	1,541)	1,464)	1,000)	1,228)
Adjusted total assets	16,120)	18,081)	14,607)	11,986)	12,624)	13,431)
Profitability Ratio
Adjusted ROA²	15.22%	9.94%	10.55%	12.21%	7.92%	9.14%

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

2022 Calculations

¹ ROA = 100 × Net earnings ÷ Total assets
= 100 × 2,454 ÷ 17,504 = 14.02%

² Adjusted ROA = 100 × Net earnings ÷ Adjusted total assets
= 100 × 2,454 ÷ 16,120 = 15.22%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Best Buy Co. Inc. adjusted ROA deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

Best Buy Co. Inc. (NYSE:BBY)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Best Buy Co. Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Best Buy Co. Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)