BEST BUY CO INC 10-Q

Item 1. Financial Statements Condensed Consol idated Balance Sheets $ in millions, except per share amounts (unaudited) November 2, 2024 February 3, 2024 October 28, 2023 Assets Current assets Cash and cash equivalents $ 643 $ 1,447 $ 636 Receivables, net 932 939 901 Merchandise inventories 7,806 4,958 7,562 Other current assets 574 553 766 Total current assets 9,955 7,897 9,865 Property and equipment, net 2,196 2,260 2,313 Operating lease assets 2,842 2,758 2,827 Goodwill 1,383 1,383 1,383 Other assets 642 669 494 Total assets $ 17,018 $ 14,967 $ 16,882 Liabilities and equity Current liabilities Accounts payable $ 7,145 $ 4,637 $ 7,133 Unredeemed gift card liabilities 246 253 245 Deferred revenue 878 1,000 934 Accrued compensation and related expenses 361 486 309 Accrued liabilities 690 902 760 Current portion of operating lease liabilities 616 618 614 Current portion of long-term debt 12 13 15 Total current liabilities 9,948 7,909 10,010 Long-term operating lease liabilities 2,293 2,199 2,270 Long-term debt 1,144 1,152 1,130 Long-term liabilities 551 654 660 Contingencies (Note 10) Equity Best Buy Co., Inc. Shareholders' Equity Preferred stock, $ 1.00 par value: Authorized - 400,000 shares; Issued and outstanding - none - - - Common stock, $ 0.10 par value: Authorized - 1.0 billion shares; Issued and outstanding - 213.8 million, 215.4 million and 216.3 million shares, respectively 22 22 22 Additional paid-in capital - 31 - Retained earnings 2,751 2,683 2,482 Accumulated other comprehensive income 309 317 308 Total equity 3,082 3,053 2,812 Total liabilities and equity $ 17,018 $ 14,967 $ 16,882 NOTE: The Consolidated Balance Sheet as of February 3, 2024, has been condensed from the audited consolidated financial statements. See Notes to Condensed Consolidated Financial Statements . ‎ 3 Table of Contents Condensed Consolidated Statements of Earnings $ and shares in millions, except per share amounts (unaudited) Three Months Ended Nine Months Ended November 2, 2024 October 28, 2023 November 2, 2024 October 28, 2023 Revenue $ 9,445 $ 9,756 $ 27,580 $ 28,806 Cost of sales 7,228 7,524 21,113 22,204 Gross profit 2,217 2,232 6,467 6,602 Selling, general and administrative expenses 1,871 1,878 5,418 5,605 Restructuring charges ( 4 ) - 4 ( 16 ) Operating income 350 354 1,045 1,013 Other income (expense): Gain on sale of subsidiary, net - - - 21 Investment income and other 19 8 65 41 Interest expense ( 13 ) ( 14 ) ( 38 ) ( 38 ) Earnings before income tax expense and equity in income of affiliates 356 348 1,072 1,037 Income tax expense 85 86 266 257 Equity in income of affiliates 2 1 4 1 Net earnings $ 273 $ 263 $ 810 $ 781 Basic earnings per share $ 1.27 $ 1.21 $ 3.76 $ 3.58 Diluted earnings per share $ 1.26 $ 1.21 $ 3.73 $ 3.57 Weighted-average common shares outstanding: Basic 214.8 217.8 215.7 218.4 Diluted 216.7 218.3 217.2 219.1 See Notes to Condensed Consolidated Financial Statements. ‎ 4 Table of Contents Conde nsed Consolidated Statements of Comprehensive Income $ in millions (unaudited) Three Months Ended Nine Months Ended November 2, 2024 October 28, 2023 November 2, 2024 October 28, 2023 Net earnings $ 273 $ 263 $ 810 $ 781 Foreign currency translation adjustments, net of tax ( 1 ) ( 14 ) ( 8 ) ( 14 ) Comprehensive income $ 272 $ 249 $ 802 $ 767 See Notes to Condensed Consolidated Financial Statements. ‎ 5 Table of Contents Condens ed Consolidated Statements of Cash Flows $ in millions (unaudited) Nine Months Ended November 2, 2024 October 28, 2023 Operating activities Net earnings $ 810 $ 781 Adjustments to reconcile net earnings to total cash provided by operating activities: Depreciation and amortization 650 702 Restructuring charges 4 ( 16 ) Stock-based compensation 108 110 Gain on sale of subsidiary, net - ( 21 ) Other, net 3 7 Changes in operating assets and liabilities: Receivables 4 240 Merchandise inventories ( 2,869 ) ( 2,444 ) Other assets ( 16 ) ( 17 ) Accounts payable 2,483 1,468 Income taxes ( 219 ) ( 200 ) Other liabilities ( 397 ) ( 320 ) Total cash provided by operating activities 561 290 Investing activities Additions to property and equipment ( 528 ) ( 612 ) Net proceeds from sale of subsidiary - 14 Other, net 6 ( 2 ) Total cash used in investing activities ( 522 ) ( 600 ) Financing activities Repurchase of common stock ( 285 ) ( 270 ) Dividends paid ( 607 ) ( 603 ) Other, net - 1 Total cash used in financing activities ( 892 ) ( 872 ) Effect of exchange rate changes on cash and cash equivalents ( 2 ) ( 12 ) Decrease in cash, cash equivalents and restricted cash ( 855 ) ( 1,194 ) Cash, cash equivalents and restricted cash at beginning of period 1,793 2,253 Cash, cash equivalents and restricted cash at end of period $ 938 $ 1,059 See Notes to Condensed Consolidated Financial Statements. ‎ 6 Table of Contents Condensed Consolidated Statements of Changes in Shareholders' Equity $ and shares in millions, except per share amounts (unaudited) Common Shares Common Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Balances at August 3, 2024 215.0 $ 22 $ - $ 2,775 $ 310 $ 3,107 Net earnings, three months ended November 2, 2024 - - - 273 - 273 Other comprehensive loss: Foreign currency translation adjustments, net of tax - - - - ( 1 ) ( 1 ) Stock-based compensation - - 34 - - 34 Issuance of common stock 0.2 - 6 - - 6 Common stock dividends, $ 0.94 per share - - 4 ( 206 ) - ( 202 ) Repurchase of common stock ( 1.4 ) - ( 44 ) ( 91 ) - ( 135 ) Balances at November 2, 2024 213.8 $ 22 $ - $ 2,751 $ 309 $ 3,082 Balances at February 3, 2024 215.4 $ 22 $ 31 $ 2,683 $ 317 $ 3,053 Net earnings, nine months ended November 2, 2024 - - - 810 - 810 Other comprehensive loss: Foreign currency translation adjustments, net of tax - - - - ( 8 ) ( 8 ) Stock-based compensation - - 108 - - 108 Issuance of common stock 1.6 - 11 - - 11 Common stock dividends, $ 2.82 per share - - 13 ( 620 ) - ( 607 ) Repurchase of common stock ( 3.2 ) - ( 163 ) ( 122 ) - ( 285 ) Balances at November 2, 2024 213.8 $ 22 $ - $ 2,751 $ 309 $ 3,082 Balances at July 29, 2023 217.9 $ 22 $ - $ 2,491 $ 322 $ 2,835 Net earnings, three months ended October 28, 2023 - - - 263 - 263 Other comprehensive loss: Foreign currency translation adjustments, net of tax - - - - ( 14 ) ( 14 ) Stock-based compensation - - 35 - - 35 Issuance of common stock 0.1 - 7 - - 7 Common stock dividends, $ 0.92 per share - - 4 ( 204 ) - ( 200 ) Repurchase of common stock ( 1.7 ) - ( 46 ) ( 68 ) - ( 114 ) Balances at October 28, 2023 216.3 $ 22 $ - $ 2,482 $ 308 $ 2,812 Balances at January 28, 2023 218.1 $ 22 $ 21 $ 2,430 $ 322 $ 2,795 Net earnings, nine months ended October 28, 2023 - - - 781 - 781 Other comprehensive loss: Foreign currency translation adjustments, net of tax - - - - ( 14 ) ( 14 ) Stock-based compensation - - 110 - - 110 Issuance of common stock 1.9 - 17 - - 17 Common stock dividends, $ 2.76 per share - - 11 ( 614 ) - ( 603 ) Repurchase of common stock ( 3.7 ) - ( 159 ) ( 115 ) - ( 274 ) Balances at October 28, 2023 216.3 $ 22 $ - $ 2,482 $ 308 $ 2,812 See Notes to Condensed Consolidated Financial Statements. ‎ 7 Table of Contents Notes to Condensed Consolidated Financial Statements (unaudited) 1. Basis of Presentation Unless the context otherwise requires, the use of the terms “Best Buy,” “we,” “us” and “our” in these Notes to Condensed Consolidated Financial Statements refers to Best Buy Co., Inc. and, as applicable, its consolidated subsidiaries. In the opinion of management, the accompanying condensed consolidated financial statements contain all adjustments necessary for a fair presentation as prescribed by accounting principles generally accepted in the U.S. (“GAAP”). All adjustments were comprised of normal recurring adjustments, except as noted in these Notes to Condensed Consolidated Financial Statements. A large proportion of our revenue and earnings is generated in the fiscal fourth quarter, which includes the majority of the holiday shopping season. Due to the seasonal nature of our business, interim results are not necessarily indicative of results for the entire fiscal year. The interim financial statements and the related notes included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended February 3, 2024. The first nine months of fiscal 2025 and fiscal 2024 each included 39 weeks. In preparing the accompanying condensed consolidated financial statements, we evaluated the period from November 2, 2024, through the date the financial statements were issued for material subsequent events requiring recognition or disclosure. No such events were identified. Sale of Subsidiary In the second quarter of fiscal 2024, we completed the sale of a Mexico subsidiary subsequent to our exit from operations in Mexico and recognized a $ 21 million gain within Gain on sale of subsidiary, net on our Condensed Consolidated Statements of Earnings for the nine months ended October 28, 2023. Recently Issued Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which enhances reportable segment disclosure requirements primarily through expanded disclosures around significant segment expenses. The amendments are effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. The amendments should be applied retrospectively to all prior periods presented in the financial statements. We are currently evaluating the impact of the ASU and expect to include updated segment expense disclosures in our fiscal 2025 Form 10-K. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which requires disclosure of specific categories meeting a quantitative threshold within the income tax rate reconciliation, as well as disaggregation of income taxes paid by jurisdiction. This ASU, which can be applied either prospectively or retrospectively, is effective for annual periods beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the impact of the ASU and expect to include updated income tax disclosures in our fiscal 2026 Form 10-K. In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses , which requires disclosure of specific expense categories in the notes to financial statements. The amendments are effective for fiscal years beginning after December 15, 2026, and for interim periods within fiscal years beginning after December 15, 2027. We are currently evaluating the impact of the ASU and expect to include updated expense disclosures in our fiscal 2028 Form 10-K. Supply Chain Financing We have a supply chain financing program with an independent financial institution, whereby some of our suppliers have the opportunity to receive accounts payable settlements early, at a discount, facilitated by the financial institution. Our liability associated with the funded participation in the program, which is primarily included in Accounts payable on our Condensed Consolidated Balance Sheets, was $ 793 million, $ 426 million and $ 680 million as of November 2, 2024, February 3, 2024, and October 28, 2023, respectively. ‎ 8 Table of Contents Total Cash, Cash Equivalents and Restricted Cash Cash, cash equivalents and restricted cash reported on our Condensed Consolidated Balance Sheets are reconciled to the total shown on our Condensed Consolidated Statements of Cash Flows as follows ($ in millions): November 2, 2024 February 3, 2024 October 28, 2023 Cash and cash equivalents $ 643 $ 1,447 $ 636 Restricted cash included in Other current assets 295 346 423 Total cash, cash equivalents and restricted cash $ 938 $ 1,793 $ 1,059 Amounts included in restricted cash are primarily restricted to cover product protection plans provided under our membership offerings and self-insurance liabilities. Reclassification Certain reclassifications of immaterial amounts previously reported have been made to the accompanying Condensed Consolidated Statements of Cash Flows to maintain consistency and comparability between periods presented. 2. Restructuring Restructuring charges were as follows ($ in millions): Three Months Ended Nine Months Ended November 2, 2024 October 28, 2023 November 2, 2024 October 28, 2023 Fiscal 2024 Restructuring Initiative $ ( 4 ) $ - $ 6 $ - Fiscal 2023 Resource Optimization Initiative - - ( 2 ) ( 16 ) Total $ ( 4 ) $ - $ 4 $ ( 16 ) Fiscal 2024 Restructuring Initiative During the fourth quarter of fiscal 2024, we commenced an enterprise-wide restructuring initiative intended to accomplish the following: (1) align field labor resources with where customers want to shop to optimize the customer experience; (2) redirect corporate resources for better alignment with our strategy; and (3) right-size resources to better align with our revenue outlook for fiscal 2025. All charges incurred related to this initiative were comprised of employee termination benefits from continuing operations and were presented within Restructuring charges on our Condensed Consolidated Statements of Earnings as follows ($ in millions): Three Months Ended Nine Months Ended Cumulative Amount November 2, 2024 November 2, 2024 As of November 2, 2024 Domestic $ ( 4 ) $ 6 $ 169 International - - 8 Total $ ( 4 ) $ 6 $ 177 Restructuring accrual activity related to this initiative was as follows ($ in millions): Termination Benefits Domestic International Total Balances at February 3, 2024 $ 163 $ 8 $ 171 Charges 17 1 18 Cash payments ( 82 ) ( 2 ) ( 84 ) Adjustments (1) ( 11 ) ( 1 ) ( 12 ) Balances at November 2, 2024 $ 87 $ 6 $ 93 (1) Represents adjustments primarily related to higher-than-expected employee retention from previously planned organizational changes. We do not expect to incur material future restructuring charges related to this initiative. 9 Table of Contents Fiscal 2023 Resource Optimization Initiative During the second quarter of fiscal 2023, we commenced an enterprise-wide initiative to better align our spending with critical strategies and operations, as well as to optimize our cost structure. All charges incurred related to this initiative were comprised of employee termination benefits from continuing operations and were presented within Restructuring charges on our Condensed Consolidated Statements of Earnings. We recorded reductions to employee termination benefits in the first nine months of fiscal 2025 and fiscal 2024, primarily within our Domestic segment, related to higher-than-expected employee retention. Cumulative charges incurred related to this initiative as of November 2, 2024, were $ 125 million, comprised of $ 122 million and $ 3 million within our Domestic and International segments, respectively. We do not expect to incur material future restructuring charges related to this initiative, and no material liability remains as of November 2, 2024. 3. Goodwill and Intangible Assets Goodwill Goodwill balances were as follows as of November 2, 2024, February 3, 2024, and October 28, 2023 ($ in millions): Gross Carrying Amount Cumulative Impairment Domestic $ 1,450 $ ( 67 ) International 608 ( 608 ) Total $ 2,058 $ ( 675 ) No impairment charges were recorded during the periods presented. 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 November 2, 2024, and was recorded within Other assets on our Consolidated Balance Sheets. Definite-Lived Intangible Assets We have definite-lived intangible assets recorded within Other assets on our Condensed Consolidated Balance Sheets as follows ($ in millions): November 2, 2024 February 3, 2024 October 28, 2023 Gross Carrying ‎ Amount Accumulated ‎ Amortization Gross Carrying ‎ Amount Accumulated ‎ Amortization Gross Carrying ‎ Amount Accumulated ‎ Amortization Weighted-Average Useful Life Remaining ‎ as of November 2, 2024 (in years) Customer relationships $ 360 $ 283 $ 360 $ 276 $ 360 $ 274 9.4 Tradenames 92 77 108 69 108 66 1.9 Developed technology 64 60 64 59 64 59 3.0 Total $ 516 $ 420 $ 532 $ 404 $ 532 $ 399 8.0 Amortization expense was as follows ($ in millions): Three Months Ended Nine Months Ended Statement of Earnings Location November 2, 2024 October 28, 2023 November 2, 2024 October 28, 2023 Amortization expense Selling, general and administrative expenses $ 5 $ 15 $ 16 $ 56 Amortization expense expected to be recognized in future periods is as follows ($ in millions): Amortization Expense Remainder of fiscal 2025 $ 4 Fiscal 2026 18 Fiscal 2027 16 Fiscal 2028 10 Fiscal 2029 8 Fiscal 2030 7 Thereafter 33 10 Table of Contents 4 . Fair Value Measurements Fair value measurements are reported in one of three levels based on the lowest level of significant input used: Level 1 (unadjusted quoted prices in active markets); Level 2 (observable market inputs, other than quoted prices included in Level 1); and Level 3 (unobservable inputs that cannot be corroborated by observable market data). Recurring Fair Value Measurements Financial assets and liabilities accounted for at fair value were as follows ($ in millions): Fair Value as of Balance Sheet Location (1) Fair Value Hierarchy November 2, 2024 February 3, 2024 October 28, 2023 Assets Money market funds (2) Cash and cash equivalents Level 1 $ 40 $ 330 $ 3 Time deposits (3) Cash and cash equivalents Level 2 5 60 26 Money market funds (2) Other current assets Level 1 139 182 170 Time deposits (3) Other current assets Level 2 50 50 81 Marketable securities that fund deferred compensation (4) Other assets Level 1 38 48 44 Liabilities Interest rate swap derivative instruments (5) Long-term liabilities Level 2 16 11 36 (1) Balance sheet location is determined by the length to maturity at date of purchase and whether the assets are restricted for particular use. (2) Valued at quoted market prices in active markets at period end. (3) Valued at face value plus accrued interest at period end, which approximates fair value. (4) Valued using the performance of mutual funds that trade with sufficient frequency and volume to obtain pricing information on an ongoing basis. (5) Valued using readily observable market inputs. These instruments are custom, over-the-counter contracts with various bank counterparties that are not traded on an active market. See Note 5, Derivative Instruments , for additional information. Fair Value of Financial Instruments The fair values of cash, certain restricted cash, receivables, accounts payable and other payables approximated their carrying values because of the short-term nature of these instruments. If these instruments were measured at fair value in the financial statements, they would be classified as Level 1 in the fair value hierarchy. Fair values for other investments held at cost are not readily available, but we estimate that the carrying values for these investments approximate their fair values. Long-term debt is presented at carrying value on our Condensed Consolidated Balance Sheets. If our long-term debt were recorded at fair value, it would be classified as Level 2 in the fair value hierarchy. Long-term debt balances were as follows ($ in millions): November 2, 2024 February 3, 2024 October 28, 2023 Fair Value Carrying Value Fair Value Carrying Value Fair Value Carrying Value Long-term debt (1) $ 1,028 $ 1,134 $ 1,022 $ 1,139 $ 931 $ 1,114 (1) Excludes debt discou nts, issuance costs and finance lease obligations. 5. Derivative Instruments We manage our economic and transaction exposure to certain risks by using foreign exchange forward contracts to hedge against the effect of Canadian dollar exchange rate fluctuations on a portion of our net investment in our Canadian operations and by using interest rate swaps to mitigate interest rate risk on our $ 500 million of principal amount of notes due October 1, 2028. In addition, we use foreign currency forward contracts not designated as hedging instruments to manage the impact of fluctuations in foreign currency exchange rates relative to recognized receivable and payable balances denominated in non-functional currencies. Our derivative instruments designated as net investment hedges and fair value hedges are recorded on our Condensed Consolidated Balance Sheets at fair value. The gross fair values of our outstanding derivative instruments and corresponding fair value classifications are included in Note 4, Fair Value Measurements . Notional amounts of our derivative instruments were as follows ($ in millions): Contract Type November 2, 2024 February 3, 2024 October 28, 2023 Derivatives designated as net investment hedges $ 119 $ 100 $ 102 Derivatives designated as fair value hedges (interest rate swaps) 500 500 500 No hedge designation (foreign exchange contracts) 129 66 93 Total $ 748 $ 666 $ 695 11 Table of Contents Effects of our derivative instruments on our Condensed Consolidated Statements of Earnings were as follows ($ in millions): Gain (Loss) Recognized Three Months Ended Nine Months Ended Statement of Earnings Location November 2, 2024 October 28, 2023 November 2, 2024 October 28, 2023 Interest rate swaps Interest expense $ ( 14 ) $ ( 15 ) $ ( 5 ) $ ( 29 ) Adjustments to carrying value of long-term debt Interest expense 14 15 5 29 Total $ - $ - $ - $ - 6. Debt Short-Term Debt U.S. Revolving Credit Facility We have a $ 1.25 billion five-year senior unsecured revolving credit facility agreement (the “Five-Year Facility Agreement”) with a syndicate of banks that expires in April 2028. There were no borrowings outstanding under the Five-Year Facility Agreement as of November 2, 2024, February 3, 2024, or October 28, 2023. Long-Term Debt Long-term debt consisted of the following ($ in millions): November 2, 2024 February 3, 2024 October 28, 2023 Notes, 4.45 %, due October 1, 2028 $ 500 $ 500 $ 500 Notes, 1.95 %, due October 1, 2030 650 650 650 Interest rate swap valuation adjustments ( 16 ) ( 11 ) ( 36 ) Subtotal 1,134 1,139 1,114 Debt discounts and issuance costs ( 7 ) ( 8 ) ( 8 ) Finance lease obligations 29 34 39 Total long-term debt 1,156 1,165 1,145 Less current portion 12 13 15 Total long-term debt, less current portion $ 1,144 $ 1,152 $ 1,130 Fair Value and Future Maturities See Note 4, Fair Value Measurements , for the fair value of long-term debt. Other than the $ 500 million of principal amount of notes due October 1, 2028, we do no t have any future maturities of long-term debt within the next five fiscal years. 7. Revenue We generate substantially all 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, deferred revenue from our private label and co-branded credit card arrangement and unredeemed gift cards. Contract balances were as follows ($ in millions): November 2, 2024 February 3, 2024 October 28, 2023 Receivables, net (1) $ 471 $ 512 $ 555 Short-term contract liabilities included in: Unredeemed gift card liabilities 246 253 245 Deferred revenue 878 1,000 934 Accrued liabilities 58 53 59 Long-term contract liabilities included in: Long-term liabilities 237 245 250 (1) Receivables are recorded net of allowances for expected credit losses of $ 16 million, $ 23 million and $ 19 million as of November 2, 2024, February 3, 2024, and October 28, 2023, respectively. During the first nine months of fiscal 2025 and fiscal 2024, $ 1,054 million and $ 1,192 million of revenue was recognized, respectively, that was included in the contract liabilities at the beginning of the respective periods. 12 Table of Contents 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 Year Amount Remainder of fiscal 2025 $ 10 Fiscal 2026 35 Fiscal 2027 30 Fiscal 2028 26 Fiscal 2029 26 Fiscal 2030 26 Thereafter 115 See Note 11, Segments , for information on our revenue by reportable segment and product category. 8. Earnings per Share We compute our basic earnings per share based on the weighted-average number of common shares outstanding and our diluted earnings per share based on the weighted-average number of common shares outstanding adjusted by the number of additional shares that would have been outstanding had potentially dilutive common shares been issued. Reconciliations of the numerators and denominators of basic and diluted earnings per share were as follows ($ and shares in millions, except per share amounts): Three Months Ended Nine Months Ended November 2, 2024 October 28, 2023 November 2, 2024 October 28, 2023 Numerator Net earnings $ 273 $ 263 $ 810 $ 781 Denominator Weighted-average common shares outstanding 214.8 217.8 215.7 218.4 Dilutive effect of stock compensation plan awards 1.9 0.5 1.5 0.7 Weighted-average common shares outstanding, assuming dilution 216.7 218.3 217.2 219.1 Potential shares which were anti-dilutive and excluded from weighted-average share computations - 0.3 - 0.4 Basic earnings per share $ 1.27 $ 1.21 $ 3.76 $ 3.58 Diluted earnings per share $ 1.26 $ 1.21 $ 3.73 $ 3.57 9. Repurchase of Common Stock On February 28, 2022, our Board of Directors approved a $ 5.0 billion share repurchase program. There is no expiration date governing the period over which we can repurchase shares under this authorization . Information regarding share repurchases was as follows ($ and shares in millions, except per share amounts): Three Months Ended Nine Months Ended November 2, 2024 October 28, 2023 November 2, 2024 October 28, 2023 Total cost of shares repurchased $ 135 $ 128 $ 285 $ 278 Average price per share $ 95.43 $ 71.61 $ 87.19 $ 74.16 Total number of shares repurchased 1.4 1.8 3.2 3.7 As of November 2, 2024, $ 3.5 billion of the $ 5.0 billion share repurchase authorization was available. 10. Contingencies We are involved in a number of legal proceedings. Where appropriate, we have made accruals with respect to these matters, which are reflected on our Condensed Consolidated Financial Statements. However, there are cases where liability is not probable or the amount cannot be reasonably estimated and, therefore, accruals have not been made. We provide disclosure of matters where we believe it is reasonably possible the impact may be material to our Condensed Consolidated Financial Statements. ‎ 13 Table of Contents 11. Segments Reportable segment and product category revenue information was as follows ($ in millions): Three Months Ended Nine Months Ended November 2, 2024 October 28, 2023 November 2, 2024 October 28, 2023 Revenue by reportable segment Domestic $ 8,697 $ 8,996 $ 25,523 $ 26,687 International 748 760 2,057 2,119 Total revenue $ 9,445 $ 9,756 $ 27,580 $ 28,806 Revenue by product category Domestic: Computing and Mobile Phones $ 4,065 $ 3,938 $ 11,445 $ 11,300 Consumer Electronics 2,425 2,589 7,267 7,839 Appliances 1,057 1,238 3,324 3,961 Entertainment 479 594 1,497 1,729 Services 601 563 1,769 1,650 Other 70 74 221 208 Total Domestic revenue $ 8,697 $ 8,996 $ 25,523 $ 26,687 International: Computing and Mobile Phones $ 386 $ 378 $ 1,012 $ 1,003 Consumer Electronics 194 200 553 578 Appliances 67 74 213 225 Entertainment 47 54 132 164 Services 47 45 124 119 Other 7 9 23 30 Total International revenue $ 748 $ 760 $ 2,057 $ 2,119 Operating income by reportable segment and the reconciliation to consolidated earnings before income tax expense and equity in income of affiliates was as follows ($ in millions): Three Months Ended Nine Months Ended November 2, 2024 October 28, 2023 November 2, 2024 October 28, 2023 Domestic $ 337 $ 336 $ 1,007 $ 955 International 13 18 38 58 Total operating income 350 354 1,045 1,013 Other income (expense): Gain on sale of subsidiary, net - - - 21 Investment income and other 19 8 65 41 Interest expense ( 13 ) ( 14 ) ( 38 ) ( 38 ) Earnings before income tax expense and equity in income of affiliates $ 356 $ 348 $ 1,072 $ 1,037 Assets by reportable segment were as follows ($ in millions): November 2, 2024 February 3, 2024 October 28, 2023 Domestic $ 15,551 $ 13,660 $ 15,395 International 1,467 1,307 1,487 Total assets $ 17,018 $ 14,967 $ 16,882 14 Table of Contents