WIXLIB

Employees. We are proud of the environment in which our employees operate, andof the strong levels of employee engagement and satisfaction we are achieving. Weinvest in the long-term development, effectiveness and engagement of ouremployees by working to ensure that we have a diverse workforce and inclusiveenvironment, robust training and development programs, and a culture where ourpeople can thrive. We received a perfect score of 100 in the Human Rights CampaignFoundation’s Corporate Equality Index and are ranked tenth in the world foremployee training and development by Training Magazine.Vendors. We partner with our vendors to help commercialize their innovations andbring them to life for the consumer. The company accomplishes this throughcustomer-focused curation of the technology it sells online and in stores; effective,targeted marketing that reaches millions of relevant consumers; in-storedemonstrations offering hands-on experiences for customers; needs-based sellingexpertise designed to solve problems and address lifestyle needs; and services thatsupport customers in installing, setting up and operating their technology.Supply Chain. We partner with our exclusive brand suppliers to ensure they meet ourexpectations for safe workplaces where workers are treated fairly. We perform audits,led by either us directly or third parties, to identify any gaps in factory performanceand the industry standard code of conduct established by the Responsible BusinessAlliance. We also provide supplier training and assist in program development tosupport best practices in relation to conflict minerals, customs and trade antiterrorism measures, and factory labor conditions.Environment. We are committed to managing our impact on the environment and areproud of our efforts to lower our carbon footprint, reducing it by 60 percent by 2020.We operate the most comprehensive e-waste recycling service in the U.S. and havecollected more than 1.5 billion pounds of e-waste for recycling since 2009. We arealso committed to providing an assortment of sustainable technology, includingENERGY STAR certified products, and have helped customers realize 707 million inutility savings since 2009.Community. We are particularly excited about the commitment we have made to helpprepare 1 million underserved teens for tech-reliant jobs each year by 2020. This willbe accomplished through the operation of our Best Buy Teen Tech Centers (yearround after school programs), which we plan to expand from 15 today to 60 by 2020;career mentoring and internship opportunities through our Career PathwaysProgram; hosted Geek Squad Academy events (free, interactive technology camps)across the country; more than 100,000 employee volunteer hours each year; andpartnerships with other organizations.

***As I hope you can tell, we are proud of the progress made in fiscal 2018 and areenthusiastic about the work ahead.Our company is a human organization. It is the energy and passion of our associatesthat drives our performance. The effort and dedication I witness every day across theorganization is inspiring, and I want to extend my gratitude to each of my colleaguesfor all they have done and continue to do in support of our mission to enrich livesthrough technology.I also would like to thank you, our shareholders, for your continued support,confidence and partnership. We have an exciting future ahead of us and deeplyappreciate the trust you have placed in us.Respectfully,Hubert Joly, Chairman and CEOBest Buy Co., Inc.* Please refer to the last three pages of the company’s 2018 Annual Report for (a)definitions and reconciliations of “GAAP to non-GAAP” and “non-GAAP return oninvested capital”, (b) information about forward looking non-GAAP financialmeasures, and (c) information about the forward-looking statements in this letter.

UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549FORM 10-K(Mark One)ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934For the fiscal year ended February 3, 2018ORTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934For the transition period fromCommission file number 1-9595toBEST BUY CO., INC.(Exact name of registrant as specified in its charter)MinnesotaState or other jurisdiction ofincorporation or organization7601 Penn Avenue SouthRichfield, Minnesota(Address of principal executive offices)41-0907483(I.R.S. EmployerIdentification No.)55423(Zip Code)Registrant's telephone number, including area code 612-291-1000Securities registered pursuant to Section 12(b) of the Act:Title of each classCommon Stock, par value .10 per shareName of each exchange on which registeredNew York Stock ExchangeSecurities registered pursuant to Section 12(g) of the Act: NoneIndicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.YesYesNoNoIndicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filingrequirements for the past 90 days.Yes NoIndicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File requiredto be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter periodthat the registrant was required to submit and post such files).Yes NoIndicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, andwill not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of thisForm 10-K or any amendment to this Form 10-K.Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. Seethe definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):Large accelerated filerAccelerated filerNon-accelerated filerSmaller reporting companyEmerging growth companyIf an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any newor revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act)YesNoThe aggregate market value of the voting and non-voting common equity held by non-affiliates of the registrant as of July 28, 2017, was approximately 13.0 billion, computed by reference to the price of 57.64 per share, the price at which the common equity was last sold on July 28, 2017, as reported onthe New York Stock Exchange-Composite Index. (For purposes of this calculation all of the registrant's directors and executive officers are deemedaffiliates of the registrant.)As of March 29, 2018, the registrant had 282,713,593 shares of its Common Stock issued and outstanding.

DOCUMENTS INCORPORATED BY REFERENCEPortions of the registrant's definitive Proxy Statement relating to its 2018 Regular Meeting of Shareholders ("Proxy Statement") areincorporated by reference into Part III. The Proxy Statement will be filed with the U.S. Securities and Exchange Commission within 120days after the end of the fiscal year to which this report relates.CAUTIONARY STATEMENT PURSUANT TO THEPRIVATE SECURITIES LITIGATION REFORM ACT OF 1995Section 27A of the Securities Act of 1933, as amended ("Securities Act"), and Section 21E of the Securities Exchange Act of 1934, asamended ("Exchange Act"), provide a "safe harbor" for forward-looking statements to encourage companies to provide prospectiveinformation about their companies. With the exception of historical information, the matters discussed in this Annual Report on Form 10-Kare forward-looking statements and may be identified by the use of words such as "anticipate," "assume," "believe," "estimate," "expect,""intend," "foresee," "outlook," "plan," "project" and other words and terms of similar meaning. Such statements reflect our current viewwith respect to future events and are subject to certain risks, uncertainties and assumptions. A variety of factors could cause our futureresults to differ materially from the anticipated results expressed in such forward-looking statements. Readers should review Item 1A, RiskFactors, of this Annual Report on Form 10-K for a description of important factors that could cause our future results to differ materiallyfrom those contemplated by the forward-looking statements made in this Annual Report on Form 10-K. Our forward-looking statementsspeak only as of the date of this report or as of the date they are made, and we undertake no obligation to update our forward-lookingstatements.

BEST BUY FISCAL 2018FORM10-KTABLE OF CONTENTSPART IItem 1.Item 1A.Item 1B.Item 2.Item 3.Item 4.Business.Risk Factors.Unresolved Staff Comments.Properties.Legal Proceedings.Mine Safety Disclosures.Executive Officers of the RegistrantPART IIItem 5.447161720202123Item 6.Item 7.Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of EquitySecurities.Selected Financial Data.Management's Discussion and Analysis of Financial Condition and Results of Operations.232526Item 7A.Item 8.Item 9.Item 9A.Item 9B.Quantitative and Qualitative Disclosures About Market Risk.Financial Statements and Supplementary Data.Changes in and Disagreements With Accountants on Accounting and Financial Disclosure.Controls and Procedures.Other Information.4951919191PART IIIItem 10.Item 11.Item 12.Item 13.Item 14.Certain Relationships and Related Transactions, and Director Independence.Principal Accounting Fees and Services.929292939393Exhibits, Financial Statement Schedules.Form 10-K Summary.SignaturesSchedule II9494969798Directors, Executive Officers and Corporate Governance.Executive Compensation.Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.PART IVItem 15.Item 16.

PART IItem 1. Business.Unless the context otherwise requires, the terms "we," "us" and "our" in this Annual Report on Form 10-K refer to Best BuyCo., Inc. and, as applicable, its consolidated subsidiaries. Any references to our website addresses do not constituteincorporation by reference of the information contained on the websites.Description of BusinessWe were incorporated in the state of Minnesota in 1966. Today, we are a leading provider of technology products, services andsolutions. We offer these products and services to customers who visit our stores, engage with Geek Squad agents or use ourwebsites or mobile applications. We have retail operations in the U.S., Canada and Mexico.Segments and Geographic AreasWe have two reportable segments: Domestic and International. The Domestic segment is comprised of the operations in allstates, districts and territories of the U.S., under various brand names including Best Buy, bestbuy.com, Best Buy Mobile, BestBuy Direct, Best Buy Express, Geek Squad, Magnolia Home Theater and Pacific Kitchen and Home. The International segmentis comprised of all operations in Canada and Mexico under the brand names Best Buy, Best Buy Express, Best Buy Mobile,Geek Squad and the domain names bestbuy.ca and bestbuy.com.mx.In March 2015, we decided to consolidate Future Shop and Best Buy stores and websites in Canada under the Best Buy brand.This resulted in permanently closing 66 Future Shop stores and converting 65 Future Shop stores to the Best Buy brand. OnMarch 1, 2018, we announced our intent to close all of our 257 remaining Best Buy Mobile stand-alone stores in the U.S. Weexpect the majority of these stores to close during the half of fiscal 2019. Additional information on these changes is includedin Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, and Note 4, RestructuringCharges, of the Notes to Consolidated Financial Statements, included in Item 8, Financial Statements and Supplementary Data,of this Annual Report on Form 10-K.Financial information about our segments and geographic areas is included in Item 7, Management's Discussion and Analysisof Financial Condition and Results of Operations, and Note 11, Segment and Geographic Information, of the Notes toConsolidated Financial Statements, included in Item 8, Financial Statements and Supplementary Data, of this Annual Reporton Form 10-K.OperationsOur Domestic and International segments are managed by leadership teams responsible for all areas of the business. Bothsegments operate a multi-channel platform that allows customers to shop when and where they want.Domestic SegmentDevelopment of merchandise and services offerings, pricing and promotions, procurement and supply chain, online and mobileapplication operations, marketing and advertising and labor deployment across all channels are centrally managed. In addition,support capabilities (for example, human resources, finance and real estate management) are generally performed at ourcorporate headquarters. We also have field operations that support retail teams from our corporate headquarters and regionallocations. Our retail stores have procedures for inventory management, asset protection, transaction processing, customerrelations, store administration, product sales and services, staff training and merchandise display that are largely standardizedwithin each store brand. All stores within each store brand generally operate under standard procedures with a degree offlexibility for store management to address certain local market characteristics.International SegmentOur Canada and Mexico store operations are similar to those in our Domestic segment.Merchandise and ServicesOur Domestic and International segments have offerings in six revenue categories: Consumer Electronics, Computing andMobile Phones, Entertainment, Appliances, Services and Other. The key components of each revenue category are as follows:4

Consumer Electronics - digital imaging, health and fitness, home automation, home theater and portable audio(including headphones, portable speakers and voice assistants);Computing and Mobile Phones - computing and peripherals, e-readers, mobile phones (including related mobilenetwork carrier commissions), networking, tablets and wearables (including smartwatches);Entertainment - drones, gaming hardware and software, movies, music, technology toys, virtual reality and othersoftware;Appliances - major appliances (for example, dishwashers, laundry, ovens, refrigerators, etc.) and small appliances (forexample, blenders, coffee makers, etc.);Services - consultation, delivery, design, educational classes, installation, memberships, protection plans, repair, setup and technical support; andOther - beverages, snacks, sundry items and other product offerings within our International segment (including baby,luggage and sporting goods).DistributionDomestic SegmentU.S. Best Buy online merchandise sales are typically either picked up at U.S. Best Buy stores or delivered directly to customersfrom a distribution center or retail store. Our ship-from-store capability allows us to improve product availability and deliverytimes for customers. Most merchandise is shipped directly from manufacturers to our distribution centers located throughoutthe U.S. In order to meet release dates for certain products, merchandise may be shipped directly to our stores from suppliers.International SegmentOur Canada and Mexico distribution model is similar to our Domestic segment model.Suppliers and InventoryOur Domestic and International segments purchase merchandise from a variety of suppliers. In fiscal 2018, our 20 largestsuppliers accounted for approximately 70% of the merchandise we purchased, with five suppliers – Apple, Samsung, HewlettPackard, Sony and Lenovo – representing approximately 56% of total merchandise purchased. We generally do not have longterm written contracts with our vendors that would require them to continue supplying us with merchandise or that secure anyof the key terms of our arrangements.We carefully monitor and manage our inventory levels in an effort to match quantities on hand with consumer demand asclosely as possible. Key elements to our inventory management process include the following: continuous monitoring ofhistorical and projected consumer demand, continuous monitoring and adjustment of inventory receipt levels, agreements withvendors relating to reimbursement for the cost of markdowns or sales incentives and agreements with vendors relating to returnprivileges for certain products.We also have a global sourcing operation to design, develop, test and contract-manufacture our exclusive brand products.Store DevelopmentWe had approximately 1,200 large-format and 300 small-format stores at the end of fiscal 2018 throughout our Domestic andInternational segments. Our stores are a vital component of our multi-channel strategy and we believe they are an importantcompetitive advantage. We have the ability to ship from all of our Best Buy stores in the U.S. and all of our large-format storesin Canada. Customers may also elect to pick up orders initiated online in any of our stores. Beginning in 2013, we openedvendor store-within-a-store concepts to allow closer vendor partnership and a higher quality customer experience. In fiscal2019 and beyond, we will continue to look for opportunities to optimize our store space, renegotiate leases and selectively openor close locations to support our operations, as evidenced by our recent announcement to close all of our remaining Best BuyMobile stand-alone stores in the U.S.Refer to Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, for tablesreconciling our Domestic and International segment stores open at the end of each of the last three fiscal years.5

Intellectual PropertyWe own or have the right to use valuable intellectual property such as trademarks, service marks and tradenames, including, butnot limited to, Best Buy, Best Buy Mobile, Best Buy Express, Dynex, Geek Squad, Insignia, Magnolia, Modal, My Best Buy,Pacific Sales, Pacific Kitchen and Home, Rocketfish, Platinum and our Yellow Tag logo.We have secured domestic and international trademark and service mark registrations for many of our brands. We have alsosecured patents for many of our inventions. We believe our intellectual property has significant value and is an important factorin the marketing of our company, our stores, our products and our websites.SeasonalityOur business, like that of many retailers, is seasonal. A large proportion of our revenue and earnings is generated in the fiscalfourth quarter, which includes the majority of the holiday shopping season in the U.S., Canada and Mexico.Working CapitalWe fund our business operations through a combination of available cash and cash equivalents, short-term investments andcash flows generated from operations. In addition, our revolving credit facilities are available for additional working capitalneeds, for general corporate purposes and investment and growth opportunities. Our working capital needs typically increase inthe months leading up to the holiday shopping season as we purchase inventory in advance of expected sales.CompetitionOur competitors are primarily multi-channel retailers, internet-based businesses, technology service providers, traditional storebased retailers, and vendors and mobile network carriers who offer their products and services directly to customers. Webelieve our ability to deliver a high-quality customer experience offers us a key competitive advantage. Some of ourcompetitors have lower cost operating structures and seek to compete for sales primarily on price. In addition, in the U.S.,online-only operators are not generally required to collect sales taxes in certain states. We believe this advantage will continueto be eroded as sales tax rules are re-evaluated at both the state and federal levels. We carefully monitor pricing offered by otherretailers, and maintaining price competitiveness is one of our ongoing priorities. In addition, we ha

Fiscal 2018 was another milestone year for Best Buy. We declared our Renew Blue transformation over and launched our growth strategy, Best Buy 2020: Building the New Blue. As I will detail in this letter, we have articulated a clear purpose, strategy and set of goals and investments in support of that strategy. Our fiscal 2018 financial