
	Three Months Ended
	May 2, 2026		May 3, 2025
Fiscal 2026 Labor and Store Optimization Initiative	$	(8)	$	-
Best Buy Health Optimization and China Sourcing Initiative	(1)		111
Fiscal 2024 Restructuring Initiative	-		(2)
Total	$	(9)	$	109

In the second quarter of fiscal 2026, we commenced a restructuring initiative intended to align field resources with changing customer behaviors, close select non-traditional store locations and redirect corporate resources for better alignment with our strategy. We currently do not expect to incur material future restructuring charges related to this initiative.

All charges incurred related to this initiative were from continuing operations and presented within Restructuring charges on our Condensed Consolidated Statements of Earnings. The composition of restructuring charges incurred related to this initiative were as follows ($ in millions):



	Three Months Ended May 2, 2026		Cumulative Amount as of May 2, 2026
	Domestic			Domestic		International		Total
Termination benefits	$	(7)		$	61	$	3	$	64
Asset impairments and other costs(1)	(1)			45		-		45
Total	$	(8)		$	106	$	3	$	109

(1)Cumulative amount as of May 2, 2026 primarily represents asset impairments related to planned store closures, an impairment related to an indefinite-lived tradename and other exit costs. The remaining carrying value of net assets approximates fair value and was immaterial as of May 2, 2026.


	Termination Benefits
	Domestic		International		Total
Balances at January 31, 2026	$	42	$	3	$	45

Cash payments	(8)		(1)		(9)
Adjustments(1)	(7)		-		(7)
Balances at May 2, 2026	$	27	$	2	$	29

(1)Represents adjustments primarily related to higher-than-expected employee retention from previously planned organizational changes.

Our restructuring accrual liabilities primarily related to termination benefits of $29 million as of May 2, 2026, reflect expected future cash payments primarily during fiscal 2027 and fiscal 2028.

In the first quarter of fiscal 2026, we commenced a restructuring initiative primarily focused on optimizing our Best Buy Health business by taking actions to maximize value and improve profitability in light of its performance against our original forecasting. These actions included the exit of a component of our Best Buy Health business that was finalized during the second quarter of fiscal 2026. In addition, we also made significant changes to reduce our exposure to tariffs, particularly in China. We currently do not expect to incur material future restructuring charges related to this initiative and no material liability remains as of May 2, 2026.

During the fourth quarter of fiscal 2024, we commenced an enterprise-wide restructuring initiative intended to align field labor resources with where customers want to shop and to optimize the customer experience, redirect corporate resources for better alignment with our strategy and right-size resources to better align with our revenue outlook for fiscal 2025. There were no expenses incurred related to this initiative in the first quarter of fiscal 2027, and we do not expect to incur material future restructuring charges related to this initiative.

The only remaining restructuring accrual related to this initiative relates to our Domestic segment and was as follows ($ in millions):

Our restructuring accrual liability related to termination benefits of $30 million as of May 2, 2026, reflects expected future cash payments primarily during fiscal 2028.