Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Best Buy Co. Inc., income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Federal	367)	447)	261)	275)	547)	317)
State	132)	117)	73)	75)	59)	37)
Foreign	61)	51)	48)	64)	50)	54)
Current	560)	615)	382)	414)	656)	408)
Federal	22)	(25)	56)	4)	141)	163)
State	(9)	(16)	8)	—)	11)	21)
Foreign	1)	5)	6)	6)	10)	17)
Deferred	14)	(36)	70)	10)	162)	201)
Income tax expense	574)	579)	452)	424)	818)	609)

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
Current	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Best Buy Co. Inc. current increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.
Deferred	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Best Buy Co. Inc. deferred decreased from 2020 to 2021 but then slightly increased from 2021 to 2022.
Income tax expense	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Best Buy Co. Inc. income tax expense increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.

Best Buy Co. Inc., effective income tax rate (EITR) reconciliation

		Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
	Federal statutory income tax rate	21.00%	21.00%	21.00%	21.00%	33.70%	35.00%
	Effective income tax rate	19.00%	24.30%	22.70%	22.40%	45.00%	33.50%

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
Effective income tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Best Buy Co. Inc. effective income tax rate increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

Best Buy Co. Inc., components of deferred tax assets and liabilities

US$ in millions

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Deferred revenue	76)	67)	57)	52)	69)	104)
Compensation and benefits	156)	122)	57)	74)	32)	43)
Stock-based compensation	31)	29)	34)	35)	32)	64)
Other accrued expenses	46)	64)	37)	40)	43)	76)
Operating lease liabilities	707)	698)	734)	—)	—)	—)
Goodwill and intangibles	—)	—)	—)	—)	102)	210)
Loss and credit carryforwards	143)	143)	127)	134)	120)	123)
Other	45)	48)	59)	84)	90)	150)
Deferred tax assets	1,204)	1,171)	1,105)	419)	488)	770)
Valuation allowance	(128)	(127)	(96)	(91)	(99)	(94)
Deferred tax assets after valuation allowance	1,076)	1,044)	1,009)	328)	389)	676)
Inventory	(24)	(13)	(40)	(61)	(47)	(97)
Property and equipment	(270)	(258)	(237)	(184)	(163)	(240)
Operating lease assets	(676)	(662)	(692)	—)	—)	—)
Goodwill and intangibles	(64)	(55)	(45)	(12)	—)	—)
Other	(39)	(39)	(15)	(16)	(20)	(22)
Deferred tax liabilities	(1,073)	(1,027)	(1,029)	(273)	(230)	(359)
Net deferred tax assets (liabilities)	3)	17)	(20)	55)	159)	317)

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
Deferred tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Best Buy Co. Inc. deferred tax assets increased from 2020 to 2021 and from 2021 to 2022.
Deferred tax assets after valuation allowance	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Best Buy Co. Inc. deferred tax assets after valuation allowance increased from 2020 to 2021 and from 2021 to 2022.
Net deferred tax assets (liabilities)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Best Buy Co. Inc. net deferred tax assets (liabilities) increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.

Best Buy Co. Inc., deferred tax assets and liabilities, classification

US$ in millions

		Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
	Deferred tax assets (included in Other assets)	25)	17)	9)	55)	159)	317)
	Deferred tax liabilities (included in Long-term liabilities)	22)	—)	29)	—)	—)	—)

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
Deferred tax assets (included in Other assets)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Best Buy Co. Inc. deferred tax assets (included in Other assets) increased from 2020 to 2021 and from 2021 to 2022.
Deferred tax liabilities (included in Long-term liabilities)	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Best Buy Co. Inc. deferred tax liabilities (included in Long-term liabilities) decreased from 2020 to 2021 but then increased from 2021 to 2022 not reaching 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: Noncurrent deferred tax assets, net	25)	17)	9)	55)	159)	317)
Total assets (adjusted)	17,479)	19,050)	15,582)	12,846)	12,890)	13,539)
Adjustment to Total Liabilities
Total liabilities (as reported)	14,484)	14,480)	12,112)	9,595)	9,437)	9,147)
Less: Noncurrent deferred tax liabilities, net	22)	—)	29)	—)	—)	—)
Total liabilities (adjusted)	14,462)	14,480)	12,083)	9,595)	9,437)	9,147)
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: Net deferred tax assets (liabilities)	3)	17)	(20)	55)	159)	317)
Total Best Buy Co., Inc. shareholders’ equity (adjusted)	3,017)	4,570)	3,499)	3,251)	3,453)	4,392)
Adjustment to Net Earnings
Net earnings (as reported)	2,454)	1,798)	1,541)	1,464)	1,000)	1,228)
Add: Deferred income tax expense (benefit)	14)	(36)	70)	10)	162)	201)
Net earnings (adjusted)	2,468)	1,762)	1,611)	1,474)	1,162)	1,429)

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
Net Profit Margin
Reported net profit margin	4.74%	3.80%	3.53%	3.41%	2.37%	3.12%
Adjusted net profit margin	4.77%	3.73%	3.69%	3.44%	2.76%	3.63%
Total Asset Turnover
Reported total asset turnover	2.96	2.48	2.80	3.32	3.23	2.84
Adjusted total asset turnover	2.96	2.48	2.80	3.34	3.27	2.91
Financial Leverage
Reported financial leverage	5.80	4.16	4.48	3.90	3.61	2.94
Adjusted financial leverage	5.79	4.17	4.45	3.95	3.73	3.08
Return on Equity (ROE)
Reported ROE	81.26%	39.20%	44.29%	44.28%	27.69%	26.08%
Adjusted ROE	81.80%	38.56%	46.04%	45.34%	33.65%	32.54%
Return on Assets (ROA)
Reported ROA	14.02%	9.43%	9.88%	11.35%	7.66%	8.86%
Adjusted ROA	14.12%	9.25%	10.34%	11.47%	9.01%	10.55%

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 net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Best Buy Co. Inc. adjusted net profit margin ratio improved from 2020 to 2021 and from 2021 to 2022.
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 adjusted 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 adjusted 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)
Net earnings	2,454)	1,798)	1,541)	1,464)	1,000)	1,228)
Revenue	51,761)	47,262)	43,638)	42,879)	42,151)	39,403)
Profitability Ratio
Net profit margin¹	4.74%	3.80%	3.53%	3.41%	2.37%	3.12%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings	2,468)	1,762)	1,611)	1,474)	1,162)	1,429)
Revenue	51,761)	47,262)	43,638)	42,879)	42,151)	39,403)
Profitability Ratio
Adjusted net profit margin²	4.77%	3.73%	3.69%	3.44%	2.76%	3.63%

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 Net profit margin = 100 × Net earnings ÷ Revenue
= 100 × 2,454 ÷ 51,761 = 4.74%

² Adjusted net profit margin = 100 × Adjusted net earnings ÷ Revenue
= 100 × 2,468 ÷ 51,761 = 4.77%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Best Buy Co. Inc. adjusted net profit margin ratio improved from 2020 to 2021 and from 2021 to 2022.

	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 Deferred Taxes
Selected Financial Data (US$ in millions)
Revenue	51,761)	47,262)	43,638)	42,879)	42,151)	39,403)
Adjusted total assets	17,479)	19,050)	15,582)	12,846)	12,890)	13,539)
Activity Ratio
Adjusted total asset turnover²	2.96	2.48	2.80	3.34	3.27	2.91

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 ÷ 17,479 = 2.96

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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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	17,479)	19,050)	15,582)	12,846)	12,890)	13,539)
Adjusted total Best Buy Co., Inc. shareholders’ equity	3,017)	4,570)	3,499)	3,251)	3,453)	4,392)
Solvency Ratio
Adjusted financial leverage²	5.79	4.17	4.45	3.95	3.73	3.08

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
= 17,479 ÷ 3,017 = 5.79

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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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings	2,468)	1,762)	1,611)	1,474)	1,162)	1,429)
Adjusted total Best Buy Co., Inc. shareholders’ equity	3,017)	4,570)	3,499)	3,251)	3,453)	4,392)
Profitability Ratio
Adjusted ROE²	81.80%	38.56%	46.04%	45.34%	33.65%	32.54%

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 × Adjusted net earnings ÷ Adjusted total Best Buy Co., Inc. shareholders’ equity
= 100 × 2,468 ÷ 3,017 = 81.80%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted 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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings	2,468)	1,762)	1,611)	1,474)	1,162)	1,429)
Adjusted total assets	17,479)	19,050)	15,582)	12,846)	12,890)	13,539)
Profitability Ratio
Adjusted ROA²	14.12%	9.25%	10.34%	11.47%	9.01%	10.55%

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 × Adjusted net earnings ÷ Adjusted total assets
= 100 × 2,468 ÷ 17,479 = 14.12%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted 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 Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

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

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

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

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)