Cover
Cover - USD ($) | 12 Months Ended | ||
Feb. 27, 2021 | Mar. 27, 2021 | Aug. 29, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Feb. 27, 2021 | ||
Current Fiscal Year End Date | --02-27 | ||
Document Transition Report | false | ||
Entity File Number | 0-20214 | ||
Entity Registrant Name | BED BATH & BEYOND INC. | ||
Entity Incorporation, State or Country Code | NY | ||
Entity Tax Identification Number | 11-2250488 | ||
Entity Address, Address Line One | 650 Liberty Avenue | ||
Entity Address, City or Town | Union | ||
Entity Address, State or Province | NJ | ||
Entity Address, Postal Zip Code | 07083 | ||
City Area Code | 908 | ||
Local Phone Number | 688-0888 | ||
Title of 12(b) Security | Common stock, $.01 par value | ||
Trading Symbol | BBBY | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Public Float | $ 1,486,168,316 | ||
Entity Common Stock, Shares Outstanding | 109,122,398 | ||
Documents Incorporated by Reference | Documents Incorporated by Reference Portions of the Registrant’s definitive proxy statement for the 2021 Annual Meeting of Shareholders to be filed pursuant to Regulation 14A are incorporated by reference in Part III hereof. * For purposes of this calculation, all outstanding shares of common stock have been considered held by non-affiliates other than the 3,082,800 shares beneficially owned by directors and executive officers. In making such calculation, the Registrant does not determine the affiliate or non-affiliate status of any shares for any other purpose. | ||
Entity Central Index Key | 0000886158 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Feb. 27, 2021 | Feb. 29, 2020 |
Assets | ||
Cash and cash equivalents | $ 1,352,984 | $ 1,000,340 |
Short term investment securities | 0 | 385,642 |
Merchandise inventories | 1,671,909 | 2,093,869 |
Prepaid expenses and other current assets | 595,152 | 248,342 |
Assets held-for-sale | 0 | 98,092 |
Total current assets | 3,620,045 | 3,826,285 |
Long term investment securities | 19,545 | 20,380 |
Property and equipment, net | 918,418 | 1,430,604 |
Operating lease assets | 1,587,101 | 2,006,966 |
Other assets | 311,821 | 506,280 |
Total assets | 6,456,930 | 7,790,515 |
Current liabilities: | ||
Accounts payable | 986,045 | 944,194 |
Accrued expenses and other current liabilities | 636,329 | 675,776 |
Merchandise credit and gift card liabilities | 312,486 | 340,407 |
Current operating lease liabilities | 360,061 | 463,005 |
Liabilities related to assets held-for-sale | 0 | 43,144 |
Total current liabilities | 2,294,921 | 2,466,526 |
Other liabilities | 82,279 | 204,926 |
Operating lease liabilities | 1,509,767 | 1,818,783 |
Income taxes payable | 102,664 | 46,945 |
Long term debt | 1,190,363 | 1,488,400 |
Total liabilities | 5,179,994 | 6,025,580 |
Shareholders' equity: | ||
Preferred stock - $0.01 par value; authorized - 1,000 shares; no shares issued or outstanding | 0 | 0 |
Common stock - $0.01 par value; authorized - 900,000 shares; issued 343,241 and 343,683, respectively; outstanding 109,621 and 126,528 shares, respectively | 3,432 | 3,436 |
Additional paid-in capital | 2,152,135 | 2,167,337 |
Retained earnings | 10,225,253 | 10,374,826 |
Treasury stock, at cost; 233,620 and 217,155 shares, respectively | (11,048,284) | (10,715,755) |
Accumulated other comprehensive loss | (55,600) | (64,909) |
Total shareholders' equity | 1,276,936 | 1,764,935 |
Total liabilities and shareholders' equity | $ 6,456,930 | $ 7,790,515 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Feb. 27, 2021 | Feb. 29, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 900,000,000 | 900,000,000 |
Common stock, shares issued (in shares) | 343,241,000 | 343,683,000 |
Common stock, shares outstanding (in shares) | 109,621,000 | 126,528,000 |
Treasury stock (in shares) | 233,620,000 | 217,155,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Feb. 27, 2021 | Feb. 29, 2020 | Mar. 02, 2019 | |
Income Statement [Abstract] | |||
Net sales | $ 9,233,028 | $ 11,158,580 | $ 12,028,797 |
Cost of sales | 6,114,947 | 7,616,920 | 7,924,817 |
Gross profit | 3,118,081 | 3,541,660 | 4,103,980 |
Selling, general and administrative expenses | 3,224,363 | 3,732,498 | 3,681,210 |
Goodwill and other impairments | 127,341 | 509,226 | 509,905 |
Restructuring and transformation initiative expenses | 102,202 | 0 | 0 |
Loss on sale of businesses, including impairment of assets held for sale | 1,062 | 0 | 0 |
Operating loss | (336,887) | (700,064) | (87,135) |
Interest expense, net | 76,913 | 64,789 | 69,474 |
Gain on extinguishment of debt | (77,038) | 0 | (412) |
Loss before benefit from income taxes | (336,762) | (764,853) | (156,609) |
Benefit from income taxes | (185,989) | (151,037) | (19,385) |
Net loss | $ (150,773) | $ (613,816) | $ (137,224) |
Net loss per share - Basic (in dollars per share) | $ (1.24) | $ (4.94) | $ (1.02) |
Net loss per share - Diluted (in dollars per share) | $ (1.24) | $ (4.94) | $ (1.02) |
Weighted average shares outstanding - Basic (in shares) | 121,446 | 124,352 | 134,292 |
Weighted average shares outstanding - Diluted (in shares) | 121,446 | 124,352 | 134,292 |
Dividends declared per share (in dollars per share) | $ 0 | $ 0.68 | $ 0.64 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 27, 2021 | Feb. 29, 2020 | Mar. 02, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (150,773) | $ (613,816) | $ (137,224) |
Other comprehensive (loss) income: | |||
Change in temporary impairment of auction rate securities, net of taxes | (617) | 276 | 366 |
Pension adjustment, net of taxes | (1,396) | (4,791) | (482) |
Reclassification adjustment on partial settlement of the pension plan, net of taxes | 1,522 | 0 | 0 |
Currency translation adjustment | 9,800 | (1,784) | (10,198) |
Other comprehensive income (loss) | 9,309 | (6,299) | (10,314) |
Comprehensive loss | $ (141,464) | $ (620,115) | $ (147,538) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Effect of Adoption | Common Stock | Additional Paid- in Capital | Retained Earnings | Retained EarningsEffect of Adoption | Treasury Stock | Accumulated Other Comprehensive Loss |
Balance (in shares) at Mar. 03, 2018 | 341,795 | 201,297 | ||||||
Balance at Mar. 03, 2018 | $ 2,888,628 | $ (4,221) | $ 3,418 | $ 2,057,975 | $ 11,343,503 | $ (4,221) | $ 10,467,972 | $ (48,296) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (137,224) | (137,224) | ||||||
Other comprehensive loss, net of tax | (10,314) | (10,314) | ||||||
Dividend declared | (89,171) | (89,171) | ||||||
Issuance of restricted shares, net (in shares) | 320 | |||||||
Issuance of restricted shares, net | 0 | $ 3 | (3) | |||||
Payment and vesting of performance stock units (in shares) | 464 | |||||||
Payment and vesting of performance stock units | 0 | $ 5 | (5) | |||||
Stock-based compensation expense, net | 60,657 | 60,657 | ||||||
Director fees paid in stock (in shares) | 3 | |||||||
Director fees paid in stock | $ 49 | 49 | ||||||
Repurchase of common stock, including fees (in shares) | (9,100) | (9,052) | ||||||
Repurchase of common stock, including fees | $ (148,073) | $ (148,073) | ||||||
Balance (in shares) at Mar. 02, 2019 | 342,582 | 210,349 | ||||||
Balance at Mar. 02, 2019 | $ 2,560,331 | $ (40,700) | $ 3,426 | 2,118,673 | 11,112,887 | $ (40,700) | $ 10,616,045 | (58,610) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | |||||||
Net loss | $ (613,816) | (613,816) | ||||||
Other comprehensive loss, net of tax | (6,299) | (6,299) | ||||||
Dividend declared | (83,545) | (83,545) | ||||||
Shares sold under employee stock option plans, net of taxes (in shares) | 139 | |||||||
Shares sold under employee stock option plans, net of taxes | 2,346 | $ 1 | 2,345 | |||||
Issuance of restricted shares, net (in shares) | 370 | |||||||
Issuance of restricted shares, net | 0 | $ 4 | (4) | |||||
Payment and vesting of performance stock units (in shares) | 580 | |||||||
Payment and vesting of performance stock units | 0 | $ 5 | (5) | |||||
Stock-based compensation expense, net | 46,159 | 46,159 | ||||||
Director fees paid in stock (in shares) | 12 | |||||||
Director fees paid in stock | $ 169 | 169 | ||||||
Repurchase of common stock, including fees (in shares) | (6,800) | (6,806) | ||||||
Repurchase of common stock, including fees | $ (99,710) | $ (99,710) | ||||||
Balance (in shares) at Feb. 29, 2020 | 343,683 | 217,155 | ||||||
Balance at Feb. 29, 2020 | 1,764,935 | $ 3,436 | 2,167,337 | 10,374,826 | $ 10,715,755 | (64,909) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (150,773) | (150,773) | ||||||
Other comprehensive loss, net of tax | 9,309 | 9,309 | ||||||
Dividend forfeited | 1,200 | 1,200 | ||||||
Forfeiture of restricted shares, net (in shares) | (786) | |||||||
Forfeiture of restricted shares, net | 0 | $ (8) | 8 | |||||
Payment and vesting of performance stock units (in shares) | 344 | |||||||
Payment and vesting of performance stock units | 0 | $ 4 | (4) | |||||
Stock-based compensation expense, net | 32,344 | 32,344 | ||||||
Accelerated share repurchase program (in shares) | (15,833) | |||||||
Accelerated share repurchase program | $ (375,000) | (47,550) | $ (327,450) | |||||
Repurchase of common stock, including fees (in shares) | (600) | (632) | ||||||
Repurchase of common stock, including fees | $ (5,079) | $ (5,079) | ||||||
Balance (in shares) at Feb. 27, 2021 | 343,241 | 233,620 | ||||||
Balance at Feb. 27, 2021 | $ 1,276,936 | $ 3,432 | $ 2,152,135 | $ 10,225,253 | $ 11,048,284 | $ (55,600) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | 195 Months Ended | ||
Feb. 27, 2021 | Feb. 29, 2020 | Mar. 02, 2019 | Feb. 27, 2021 | |
Cash Flows from Operating Activities: | ||||
Net loss | $ (150,773) | $ (613,816) | $ (137,224) | |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||
Depreciation and amortization | 340,912 | 342,511 | 338,825 | |
Loss on sale leaseback transaction | 0 | 27,357 | 0 | |
Gain on sale of building | 0 | 0 | (29,690) | |
Gain on extinguishment of debt | (77,038) | 0 | (412) | |
Loss on sale of businesses, including impairment of assets held for sale | 1,062 | 0 | 0 | |
Goodwill and other impairments | 127,341 | 509,226 | 509,905 | |
Stock-based compensation | 31,594 | 45,676 | 58,514 | |
Deferred income taxes | 148,741 | (145,543) | (104,089) | |
Other | (396) | (3,446) | (814) | |
Decrease (increase) in assets: | ||||
Merchandise inventories | 64,947 | 506,334 | 106,928 | |
Trading investment securities | 0 | 21 | 86,277 | |
Other current assets | (387,172) | (4,781) | 269,186 | |
Other assets | 1,519 | 218 | 218 | |
(Decrease) increase in liabilities: | ||||
Accounts payable | 168,556 | (124,206) | (90,657) | |
Accrued expenses and other current liabilities | 15,538 | 61,864 | (77,147) | |
Merchandise credit and gift card liabilities | (12,110) | 1,154 | 16,016 | |
Income taxes payable | 54,958 | (22,783) | 8,360 | |
Operating lease assets and liabilities, net | (32,813) | (2,899) | ||
Other liabilities | (26,758) | 14,054 | (35,918) | |
Net cash provided by operating activities | 268,108 | 590,941 | 918,278 | |
Cash Flows from Investing Activities: | ||||
Purchases of held-to-maturity investment securities | 0 | (443,500) | (734,424) | |
Redemption of held-to-maturity investment securities | 386,500 | 545,000 | 538,925 | |
Net proceeds from sales of businesses | 534,457 | 0 | 0 | |
Proceeds from sale-leaseback transaction | 0 | 267,277 | ||
Proceeds from sale of a building | 0 | 0 | 11,183 | |
Capital expenditures | (183,077) | (277,401) | (325,366) | |
Net cash provided by (used in) investing activities | 737,880 | 91,376 | (509,682) | |
Cash Flows from Financing Activities: | ||||
Borrowing of long-term debt | 236,400 | 0 | 0 | |
Repayments of long-term debt | (457,827) | 0 | (4,224) | |
Repurchase of common stock, including fees | (332,529) | (99,710) | (148,073) | $ (11,000,000) |
Prepayment under share repurchase agreement | (47,550) | 0 | 0 | |
Payment of dividends | (23,108) | (85,482) | (86,287) | |
Payment of deferred financing fees | (7,690) | 0 | 0 | |
Proceeds from exercise of stock options | 0 | 2,346 | 0 | |
Net cash used in financing activities | (632,304) | (182,846) | (238,584) | |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 5,075 | (977) | (7,181) | |
Net increase in cash, cash equivalents and restricted cash | 378,759 | 498,494 | 162,831 | |
Change in cash balances classified as held-for-sale | 4,815 | (4,815) | 0 | |
Net increase in cash, cash equivalents and restricted cash | 383,574 | 493,679 | 162,831 | |
Cash, cash equivalents and restricted cash: | ||||
Beginning of period | 1,023,650 | 529,971 | 367,140 | |
End of period | $ 1,407,224 | $ 1,023,650 | $ 529,971 | $ 1,407,224 |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Related Matters | 12 Months Ended |
Feb. 27, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and Related Matters | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RELATED MATTERS A. Nature of Operations Bed Bath & Beyond Inc. and subsidiaries (the "Company") is an omnichannel retailer that makes it easy for its customers to feel at home. The Company sells a wide assortment of m erchandise in the Home, Baby, Beauty & Wellness markets and operates under the names Bed Bath & Beyond ("BBB"), buybuy BABY ("BABY"), and Harmon, Harmon Face Values, or Face Values (collectively, "Harmon"). Customers can purchase products either in-store, online, with a mobile device or through a customer contact center. The Company generally has the ability to have customer purchases picked up in-store, curbside or shipped direct to the customer from the Company’s distribution facilities, stores or vendors. The Company also operates Decorist, an online interior design platform that provides personalized home design services. In addition, the Company is a partner in a joint venture which operates retail stores in Mexico under the name Bed Bath & Beyond. For fiscal 2020 , 2019 and 2018 , t he Company has accounted for its operations as two operating segments: North American Retail and Institutional Sales, which did not meet the quantitative thresholds under U.S. generally accepted accounting principles and, therefore, was not a reportable segment. The Institutional Sales operating segment was comprised of Linen Holdings, which was divested in October 2020. The Company will continue to account for its operations as one North American Retail reporting segment going forward. Net sales outside of the U.S. for the Company were not material for fiscal 2020, 2019 and 2018. As the Company operates in the retail industry, its results of operations are affected by general economic conditions and consumer spending habits. B. Fiscal Year The Company’s fiscal year is comprised of the 52 or 53-week period ending on the Saturday nearest February 28th. Accordingly, fiscal 2020, 2019 and fiscal 2018 represented 52 weeks and ended on February 27, 2021, February 29, 2020 and March 2, 2019, respectively. C. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. The Company accounts for its investment in the joint venture under the equity method. All significant intercompany balances and transactions have been eliminated in consolidation. D. Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02 In December 2019, the FASB issued ASU No. 2019-12, Income Taxes, to simplify the accounting for income taxes. The guidance eliminates certain exceptions related to the approach for intraperiod tax allocations, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences related to changes in ownership of equity method investments and foreign subsidiaries. The guidance also simplifies aspects of accounting for franchise taxes, enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The standard is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years with early adoption permitted. The Company has not adopted this standard; upon adoption, the Company does not believe this guidance will have a material impact on its consolidated financial statements. E. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires the Company to establish accounting policies and to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on historical experience and on other assumptions that it believes to be relevant under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. In particular, judgment is used in areas such as inventory valuation, impairment of long-lived assets, impairment of auction rate securities, goodwill and other indefinite lived intangible assets, accruals for self-insurance, litigation, store opening, expansion, relocation and closing costs, the provision for sales returns, vendor allowances, stock-based compensation and income and certain other taxes. Actual results could differ from these estimates. F Cash and Cash Equivalents The Company considers all highly liquid instruments purchased with original maturities of three months or less to be cash equivalents. Included in cash and cash equivalents are credit and debit card receivables from banks, which typically settle within five business days, of $64.0 million and $79.7 million as of February 27, 2021 and February 29, 2020, respectively. G. Investment Securities Investment securities consist primarily of auction rate securities, which are securities with interest rates that reset periodically through an auction process, and U.S. Treasury Bills, when outstanding. The U.S. Treasury Bills with original maturities of greater than three months were classified as short term held-to-maturity securities and stated at their amortized cost which approximated fair value. Auction rate securities are classified as available-for-sale and are stated at fair value, which had historically been consistent with cost or par value due to interest rates which reset periodically, typically every 7, 28 or 35 days. As a result, there generally were no cumulative gross unrealized holding gains or losses relating to these auction rate securities. However, beginning in mid-February 2008 due to market conditions, the auction process for the Company’s auction rate securities failed and continues to fail. These failed auctions result in a lack of liquidity in the securities and affect their estimated fair values at February 27, 2021 and February 29, 2020, but do not affect the underlying collateral of the securities. (See "Fair Value Measurements," Note 4 and "Investment Securities," Note 5). All income from these investments is recorded as interest income. Those investment securities which the Company has the ability and intent to hold until maturity are classified as held-to-maturity investments and are stated at amortized cost. Those investment securities which are bought and held principally for the purpose of selling them in the near term are classified as trading securities and are stated at fair market value. Premiums are amortized and discounts are accreted over the life of the security as adjustments to interest income using the effective interest method. Dividend and interest income are recognized when earned. H. Inventory Valuation Merchandise inventories are stated at the lower of cost or market. Inventory costs are primarily calculated using the weighted average retail inventory method. Under the retail inventory method, the valuation of inventories at cost and the resulting gross margins are calculated by applying a cost-to-retail ratio to the retail values of inventories. The inputs associated with determining the cost-to-retail ratio include: merchandise purchases, net of returns to vendors, discounts and volume and incentive rebates; inbound freight expenses; duty, insurance and commissions. The retail inventory method contains certain management judgments that may affect inventory valuation. At any one time, inventories include items that have been written down to the Company’s best estimate of their realizable value. Judgment is required in estimating realizable value and factors considered are the age of merchandise, anticipated demand based on factors such as customer preferences and fashion trends, as well as anticipated markdowns to reduce the price of merchandise from its recorded retail price to a retail price at which it is expected to be sold in the future. These estimates are based on historical experience and current information about future events which are inherently uncertain. Actual realizable value could differ materially from this estimate based upon future customer demand or economic conditions, including the duration and severity of the COVID-19 pandemic. The Company estimates its reserve for shrinkage throughout the year based on historical shrinkage and any current trends, if applicable. Actual shrinkage is recorded at year end based upon the results of the Company’s physical inventory counts for locations at which counts were conducted. For locations where physical inventory counts were not conducted in the fiscal year, an estimated shrink reserve is recorded based on historical shrinkage and any current trends, if applicable. Historically, the Company’s shrinkage has not been volatile. The Company accrues for merchandise in transit once it takes legal ownership and title to the merchandise; as such, an estimate for merchandise in transit is included in the Company’s merchandise inventories. I. Property and Equipment Property and equipment are stated at cost and are depreciated primarily using the straight-line method over the estimated useful lives of the assets (forty years for buildings; five three The cost of maintenance and repairs is charged to earnings as incurred; significant renewals and betterments are capitalized. Maintenance and repairs amounted to $117.7 million, $133.9 million, and $132.4 million for fiscal 2020, 2019 and 2018, respectively. J. Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment when events or changes in circumstances indicate the carrying value of these assets may exceed their current fair values. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the assets. Judgment is required in estimating the fair value of the assets including assumptions related to sales growth rates and market rental rates. These estimates are based on historical experience and current information about future events which are inherently uncertain. Assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. The assets and liabilities of a disposal group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet (see "Assets Held for Sale and Divestitures," Note 15). In fiscal 2020 and fiscal 2019, the Company recorded non-cash pre-tax impairment charges of $92.9 million and $75.1 million, respectively, for certain store-level assets, including leasehold improvements and operating lease assets. In fiscal 2018, the Company recorded a $23.0 million non-cash pre-tax impairment charge for certain store-level assets. These charges were recorded within goodwill and other impairments in the Company's consolidated statements of operations. In the future, if events or market conditions affect the estimated fair value to the extent that a long-lived asset is impaired, the Company will adjust the carrying value of these long-lived assets in the period in which the impairment occurs. K Goodwill and Other Indefinite Lived Intangible Assets The Company reviews its intangible assets that have indefinite lives for impairment annually as of the end of the fiscal year or when events or changes in circumstances indicate the carrying value of these assets might exceed their current fair values. Impairment testing is based upon the best information available including estimates of fair value which incorporate assumptions marketplace participants would use in making their estimates of fair value. Significant assumptions and estimates are required, including, but not limited to, projecting future cash flows, determining appropriate discount rates and terminal growth rates, and other assumptions, to estimate the fair value of goodwill and indefinite lived intangible assets. Although the Company believes the assumptions and estimates made are reasonable and appropriate, different assumptions and estimates could materially impact its reported financial results. As of June 1, 2019, the Company completed a quantitative impairment analysis of goodwill related to its reporting units by comparing the fair value of a reporting unit with its carrying amount. The Company performed a discounted cash flow analysis and market multiple analysis for each reporting unit. Based upon the analysis performed, the Company recognized non-cash pre-tax goodwill impairment charges of $391.1 million for the North American Retail reporting unit, and as of June 1, 2019, the Company did not have any goodwill recorded on its consolidated balance sheet. In fiscal 2018, the Company recognized non-cash pre-tax goodwill impairment charges of $285.1 million and $40.1 million for the North American Retail and Institutional Sales reporting units, respectively. Cumulatively, the Company has recognized non-cash pre-tax goodwill impairment charges of $676.2 million and $40.1 million for the North American Retail and Institutional Sales reporting units, respectively. The non-cash pre-tax impairment charges were primarily the result of a sustained decline in the Company's market capitalization. As of February 27, 2021, the Company did not have any goodwill recorded on its consolidated balance sheet. Other indefinite-lived intangible assets were recorded as a result of acquisitions and primarily consist of tradenames. The Company values its tradenames using a relief-from-royalty approach, which assumes the value of the tradename is the discounted cash flows of the amount that would be paid by a hypothetical market participant had they not owned the tradename and instead licensed the tradename from another company. For the fiscal years ended February 27, 2021, February 29, 2020 and March 2, 2019, the Company completed a quantitative impairment analysis for certain other indefinite lived intangible assets, by comparing the fair value of the tradenames to their carrying value and recognized non-cash pre-tax tradename impairment charges of $35.1 million, $41.8 million and $161.7 million, respectively, within goodwill and other impairments in the consolidated statement of operations. As of February 27, 2021, for the remaining other indefinite lived intangible assets, the Company assessed qualitative factors in order to determine whether any events and circumstances existed which indicated that it was more likely than not that the fair value of these other indefinite lived assets did not exceed their carrying values and concluded no such events or circumstances existed which would require an impairment test be performed. In the future, if events or market conditions affect the estimated fair value to the extent that an asset is impaired, the Company will adjust the carrying value of these assets in the period in which the impairment occurs. Included within other assets in the accompanying consolidated balance sheets as of February 27, 2021 and February 29, 2020, respectively, are $22.0 million and $91.2 million for indefinite lived tradenames and trademarks. L. Self-Insurance The Company utilizes a combination of insurance and self-insurance for a number of risks including workers’ compensation, general liability, cyber liability, property liability, automobile liability and employee related health care benefits (a portion of which is paid by its employees). Liabilities associated with the risks that the Company retains are not discounted and are estimated by considering historical claims experience, demographic factors, severity factors and other actuarial assumptions. Although the Company’s claims experience has not displayed substantial volatility in the past, actual experience could materially vary from its historical experience in the future. Factors that affect these estimates include but are not limited to: inflation, the number and severity of claims and regulatory changes. In the future, if the Company concludes an adjustment to self-insurance accruals is required, the liability will be adjusted accordingly. Beginning in the fourth quarter of fiscal 2020, the Company began insuring portions of its workers' compensation and medical insurance through a wholly owned captive insurance subsidiary (the "Captive") to enhance its risk financing strategies. The Captive is subject to regulations in Vermont, including those relating to its levels of liquidity and other requirements. The Captive was in compliance with all regulations as of February 27, 2021. As of February 27, 2021, the cash and cash equivalents at the Captive were $43.1 million. M. Shareholders’ Equity The Company has authorization to make repurchases of its common shares from time to time in the open market or through other parameters approved by the Board of Directors pursuant to existing rules and regulations. Between December 2004 and December 2020, the Company’s Board of Directors authorized, through several share repurchase programs, the repurchase of $12.775 billion of its shares of common stock. Since 2004 through the end of fiscal 2020, the Company has repurchased approximately $11.0 billion of its common stock through share repurchase programs. The Company also acquires shares of its common stock to cover employee related taxes withheld on vested restricted stock, restricted stock units and performance stock unit awards. Subsequent to the end of fiscal 2020, the Company's Board of Directors expanded the existing share repurchase authorization by an additional $175 million, which increased the total share repurchase authorization to $12.950 billion. In October 2020, the Company entered into an accelerated share repurchase agreement ("ASR Agreement") with JPMorgan Chase Bank, National Association ("JP Morgan") to repurchase $225.0 million of the Company's common stock. Pursuant to the ASR Agreement, the Company paid $225.0 million to JP Morgan and received an initial delivery of 4.5 million shares. In the fourth quarter of fiscal 2020, the Company received an additional 6.3 million shares under this ASR Agreement, based on the average of the daily volume-weighted average price of common stock during the term of the ASR Agreement. These repurchases of 10.8 million total shares resulted in a $225.0 million increase in treasury stock and reduced the number of weighted average shares outstanding. In January 2021, the Company entered into a second accelerated share repurchase agreement ("ASR Agreement 2") to repurchase an aggregate of $150.0 million of the Company’s common stock, subject to market conditions. Pursuant to ASR Agreement 2, the Company paid $150.0 million to JP Morgan, and received an initial delivery of 5.0 million shares, which was accounted for as a treasury stock transaction and resulted in a $102.5 million increase in treasury stock and also reduced the weighted average shares outstanding. The Company also recorded a $47.6 million decrease in additional paid in capital upon the inception of ASR Agreement 2. Subsequent to the end of fiscal 2020, final settlement under ASR Agreement 2 occurred and the Company received an additional 0.2 million shares. In addition, during fiscal 2020, the Company repurchased approximately 0.6 million shares of its common stock to cover employee related taxes withheld on vested restricted stock, restricted stock units and performance stock unit awards, at a total cost of approximately $5.1 million. During fiscal 2019, the Company repurchased approximately 6.8 million shares of its common stock at a total cost of approximately $99.7 million. During fiscal 2018 the Company repurchased approximately 9.1 million shares of its common stock at a total cost of approximately $148.1 million. The Company has approximately $1.7 billion remaining of authorized share repurchases as of February 27, 2021. The Company’s share repurchase program could change, and any future share repurchases will be subject to the determination of the Board of Directors, based on an evaluation of the Company’s earnings, financial condition and requirements, business conditions and other factors, including the restrictions on share repurchases under the Credit Agreement (see “Long Term Debt,” Note 7). During fiscal 2016, the Company’s Board of Directors authorized a quarterly dividend program. During fiscal 2020, 2019 and 2018, total cash dividends of $23.1 million, $85.5 million and $86.3 million were paid, respectively. In March 2020, the Company suspended its future quarterly declarations of cash dividends as a result of the COVID-19 pandemic. Any future quarterly cash dividend payments on its common stock will be subject to the determination by the Board of Directors, based on an evaluation of the Company’s earnings, financial condition and requirements, business conditions and other factors, including the restrictions on the payment of dividends contained in the Credit Agreement (See "Long Term Debt," Note 7). Cash dividends, if any, are accrued as a liability on the Company’s consolidated balance sheets and recorded as a decrease to retained earnings when declared. N. Fair Value of Financial Instruments The Company’s financial instruments include cash and cash equivalents, investment securities, accounts payable, long term debt and certain other liabilities. The Company’s investment securities consist primarily of U.S. Treasury securities, which are stated at amortized cost, and auction rate securities consisting of preferred shares of closed end municipal bond funds, which are stated at their approximate fair value. The book value of the financial instruments, excluding the Company’s long term debt, is representative of their fair values (See "Fair Value Measurements," Note 4). As of February 27, 2021, the fair value of the Company’s long term debt was approximately $1.118 billion, which is based on quoted prices in active markets for identical instruments (i.e., Level 1 valuation), compared to the carrying value of approximately $1.195 billion. O. Leases The Company determines if an arrangement is a lease or contains a lease at the inception of the contract. The Company’s leases generally contain fixed and variable components. Variable components are primarily contingent rents based upon store sales exceeding stipulated amounts. Lease agreements may also include non-lease components, such as certain taxes, insurance and common area maintenance, which the Company combines with the lease component to account for both as a single lease component. Lease liabilities, which represent the Company’s obligation to make lease payments arising from the lease, and corresponding right-of-use assets, which represent the Company’s right to use an underlying asset for the lease term, are recognized at the commencement date of the lease, which is typically the date the Company obtains possession of the leased premises, based on the present value of fixed future payments over the lease term. The Company utilizes the lease term for which it is reasonably certain to use the underlying asset, including consideration of options to extend or terminate the lease. Incentives received from landlords are recorded as a reduction to the lease right-of-use assets. The Company does not recognize lease right-of-use assets and corresponding lease liabilities for leases with initial terms of 12 months or less. The Company calculates the present value of future payments using the discount rate implicit in the lease, if available, or its incremental borrowing rate. The incremental borrowing rate is the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. The Company determined discount rates based on the rates of its unsecured borrowings, which are then adjusted for the appropriate lease term and effects of full collateralization. In determining the Company's operating lease assets and operating lease liabilities, the Company applied these incremental borrowing rates to the minimum lease payments within each lease agreement. For operating leases, lease expense relating to fixed payments is recognized on a straight-line basis over the lease term and lease expense relating to variable payments is expensed as incurred. For finance leases, the amortization of the asset is recognized over the shorter of the lease term or useful life of the underlying asset. P. Prepaid Expenses and Other Current Assets Included within prepaid expenses and other current assets in the accompanying consolidated balance sheets as of February 27, 2021 and February 29, 2020, respectively, are $595.2 million and $248.3 million. The majority of the balance as of February 27, 2021 is comprised of income tax receivable of $318.1 million. There was no income tax receivable as of February 29, 2020. (See "Provision For Income Taxes," Note 8). Q. Assets Held for Sale The Company classifies long-lived assets or disposal groups as held for sale in the period when the following held for sale criteria are met: (i) the Company commits to a plan to sell; (ii) the long-lived asset or disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such long-lived assets or disposal groups; (iii) an active program to locate a buyer and other actions required to complete the plan to sell have been initiated; (iv) the sale is probable within one year; (v) the asset or disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and (vi) it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Long-lived assets and disposal groups classified as held for sale are measured at the lower of their carrying amount or fair value less costs to sell. R. Revenue Recognition Sales are recognized upon purchase by customers at the Company’s retail stores or upon delivery for products purchased from its websites. The value of point-of-sale coupons and point-of-sale rebates that result in a reduction of the price paid by the customer are recorded as a reduction of sales. Shipping and handling fees that are billed to a customer in a sale transaction are recorded in sales. Taxes, such as sales tax, use tax and value added tax, are not included in sales. Revenues from gift cards, gift certificates and merchandise credits are recognized when redeemed. Gift cards have no provisions for reduction in the value of unused card balances over defined time periods and have no expiration dates. In fiscal 2020 and fiscal 2019, the Company recognized net sales for gift card and merchandise credit redemptions of approximately $98.0 million and $121.9 million, which were included in merchandise credit and gift card liabilities on the consolidated balance sheet as of February 27, 2021 and February 29, 2020, respectively. Sales returns are provided for in the period that the related sales are recorded based on historical experience. Although the estimate for sales returns has not varied materially from historical provisions, actual experience could vary from historical experience in the future if the level of sales return activity changes materially. In the future, if the Company concludes that an adjustment is required due to material changes in the returns activity, the liability for estimated returns and the corresponding right of return asset will be adjusted accordingly. As of February 27, 2021 and February 29, 2020, the liability for estimated returns of $36.2 million and $71.6 million is included in accrued expenses and other current liabilities and the corresponding right of return asset for merchandise of $23.4 million and $42.5 million, respectively, is included in prepaid expenses and other current assets, respectively. The Company sells a wide assortment of domestics merchandise and home furnishings. Domestics merchandise includes categories such as bed linens and related items, bath items and kitchen textiles. Home furnishings include categories such as kitchen and tabletop items, fine tabletop, basic housewares, general home furnishings (including furniture and wall décor), consumables and certain juvenile products. Sales of domestics merchandise and home furnishings accounted for approximately 34.7% and 65.3% of net sales, respectively, for fiscal 2020, 35.2% and 64.8% of net sales, respectively, for fiscal 2019 and 35.4% and 64.6% of net sales, respectively, for fiscal 2018. S. Cost of Sales Cost of sales includes the cost of merchandise, buying costs and costs of the Company’s distribution network including inbound freight charges, distribution facility costs, receiving costs, internal transfer costs and shipping and handling costs. T. Vendor Allowances The Company receives allowances from vendors in the normal course of business for various reasons including direct cooperative advertising, purchase volume and reimbursement for other expenses. Annual terms for each allowance include the basis for earning the allowance and payment terms, which vary by agreement. All vendor allowances are recorded as a reduction of inventory cost, except for direct cooperative advertising allowances which are specific, incremental and identifiable. The Company recognizes purchase volume allowances as a reduction of the cost of inventory in the quarter in which milestones are achieved. Advertising costs were reduced by direct cooperative allowances of $28.9 million, $30.9 million, and $37.0 million for fiscal 2020, 2019 and 2018, respectively. U. Store Opening, Expansion, Relocation and Closing Costs Store opening, expansion, relocation and closing costs, including markdowns, asset residual values and projected occupancy costs, are charged to earnings as incurred. V. Advertising Costs Advertising expenses related to direct response advertising are expensed on the first day of the direct response advertising event. All other advertising expenses associated with store advertising are charged to earnings as incurred. Net advertising costs amounted to $347.8 million, $478.5 million and $463.2 million for fiscal 2020, 2019 and 2018, respectively. W. Stock-Based Compensation The Company measures all employee stock-based compensation awards using a fair value method and records such expense, net of estimated forfeitures, in its consolidated financial statements. The Company’s stock-based compensation relates to restricted stock awards, stock options, restricted stock units and performance stock units. The Company’s restricted stock awards are considered nonvested share awards. X. Income Taxes The Company files a consolidated federal income tax return. Income tax returns are also filed with each taxable jurisdiction in which the Company conducts business. The Company accounts for its income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period that includes the enactment date. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act, (the "Tax Act"). The Tax Act included a mandatory one-time tax on accumulated earnings of foreign subsidiaries, and as a result, all previously unremitted earnings for which no U.S. deferred tax liability had been previously accrued has now been subject to U.S. tax. Notwithstanding the U.S. taxation of these amounts, the Company intends to continue to reinvest th |
Impact of COVID-19 Pandemic
Impact of COVID-19 Pandemic | 12 Months Ended |
Feb. 27, 2021 | |
Impact of COVID-19 Pandemic [Abstract] | |
Impact of COVID-19 Pandemic | IMPACT OF THE COVID-19 PANDEMIC In March 2020, the World Health Organization declared the COVID-19 outbreak a global pandemic. In compliance with relevant government directives, the Company closed all of its retail banner stores across the U.S. and Canada as of March 23, 2020, except for most stand-alone BABY and Harmon stores, which were categorized as essential given the nature of their products. In May 2020, the Company announced a phased approach to re-open its stores in compliance with relevant government directives, and as of the end of July 2020, nearly all of its stores reopened. The Company cannot predict, however, whether reopened stores will remain open, particularly as the regions in which it operates are experiencing a resurgence of reported new cases of COVID-19 and hospitalizations. In response to the health risks caused by the COVID-19 pandemic, the Company expanded its recently rolled out Buy Online Pick Up In Store ("BOPIS"), contactless Curbside Pickup and Same Day Delivery services to cover the vast majority of its stores. The consequences of the pandemic and impact to the economy continue to evolve and the full extent of the impact is uncertain as of the date of this filing. To date, the pandemic has materially disrupted the operations of the Company and has resulted in the recording of additional non-cash impairment charges. The Company had proactively taken steps to strengthen its financial position and liquidity, including, among other things: (i) renegotiating payment terms for goods, services and rent, managing to lower inventory levels, and reducing discretionary spending such as business travel, advertising and expenses associated with the maintenance of stores that were temporarily closed; (ii) deferring other previously planned capital expenditures; (iii) suspending dividends; and (iv) prioritizing spending on essential capital expenditures to drive strategic growth plans, including investments in digital, BOPIS and contactless Curbside Pickup services. The Company had also suspended its plans for debt reduction and postponed share repurchases, but lifted the debt repurchase suspension in August 2020 and the postponement of share repurchases in October 2020. In some instances, the renegotiations of lease terms have led to agreements with landlords for rent abatements or rental deferrals. Total payments withheld and/or delayed or deferred as of February 27, 2021 were approximately $9.6 million and are included in current lease liabilities. During the fiscal year ended February 27, 2021, the Company recognized reduced rent expense of $10.3 million related to rent abatement concessions. Additional negotiations of payment terms are still in process, and there can be no assurance that the Company will be able to successfully renegotiate payment terms with its business partners, and the ultimate outcomes of these activities, including the responses of certain business partners, are not yet known. The COVID-19 pandemic has materially adversely impacted the Company’s results of operations and cash flows in fiscal 2020, and it could continue to impact results of operations and cash flows, as well as the Company’s financial condition. Given the uncertainty regarding the spread of this virus and the timing of the economic recovery, the ultimate financial impact cannot be reasonably predicted or estimated at this time. Further, on March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") was enacted in the United States. The CARES Act is an emergency economic aid package to help mitigate the impact of the COVID-19 pandemic. Among other things, the CARES Act provides certain changes to tax laws, which may impact the Company’s results of operations, financial position and cash flows. The Company is currently implementing certain provisions of the CARES Act, such as deferring employer payroll taxes and utilizing the ability to carry back and deduct losses to offset prior income in previously filed tax returns. As of February 27, 2021, the Company has deferred $3.1 million of employer payroll taxes, of which 50% are required to be deposited by December 2021 and the remaining 50% by December 2022. During the fiscal year ended February 27, 2021, under the CARES Act, the Company recorded an additional $41.0 million benefit as a result of the fiscal 2019 net operating losses and a $111.0 million benefit as a result of the fiscal 2020 net operating losses, both of which can now be carried back to prior years during which the federal tax rate was 35%. In addition, during the fiscal year ended February 27, 2021, the Company recorded credits of $33.3 million as an offset to selling, general and administrative expenses as a result of the employee retention credits made available under the CARES Act for U.S. employees and under the Canada Emergency Wage Subsidy for Canadian employees. |
Restructuring and Transformatio
Restructuring and Transformation Activities | 12 Months Ended |
Feb. 27, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Transformation Activities | RESTRUCTURING AND TRANSFORMATION ACTIVITIES Fiscal 2020 Restructuring Charges The Company recorded $149.3 million within cost of sales and restructuring and transformation initiative expenses in its consolidated statements of operations for fiscal 2020 for costs associated with its planned store closures as part of the network optimization plan for which the store closure process has commenced, workforce reduction and other transformation initiatives. As part of the Company's ongoing business transformation, on July 6, 2020, the Board of Directors of the Company approved the planned closure of approximately 200 mostly Bed Bath & Beyond stores by the end of fiscal 2021 as part of the Company's store network optimization program, 144 of which have been closed as of February 27, 2021. In fiscal 2020, the Company recorded costs associated with its planned store closures for which the store closing process has commenced of $21.0 million within cost of sales, $5.3 million of severance costs and $39.2 million of lease-related and other costs within restructuring and transformation initiative expenses in its consolidated statements of operations . At this point, the Company is unable to estimate the amount or range of amounts expected to be incurred in connection with future store closures and will provide such estimates as they become available. In addition, during the second quarter of fiscal 2020, the Company announced a major realignment of its organizational structure as part of its transformation initiative, to further simplify the Company's operations, support investment in its strategic growth plans, and provide additional financial flexibility. In connection with the organizational realignment, the Company implemented a workforce reduction of approximately 2,800 roles from across its corporate headquarters and retail stores. During the second quarter of fiscal 2020, the Company recorded pre-tax restructuring charges of approximately $23.1 million within restructuring and transformation initiative expenses in its consolidated statements of operations, related to severance and associated costs for this workforce reduction, all of which have been paid during fiscal 2020 . During fiscal 2020, t he Company also recorded costs of approximately $26.1 million within cost of sales and $34.6 million within restructuring and transformation initiative expenses in its consolidated statements of operations related to other transformation initiatives. Fiscal 2019 Restructuring Charges |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Feb. 27, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., "the exit price") in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various valuation approaches, including quoted market prices and discounted cash flows. The hierarchy for inputs used in measuring fair value maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from independent sources. Unobservable inputs are inputs that reflect a company’s judgment concerning the assumptions that market participants would use in pricing the asset or liability developed based on the best information available under the circumstances. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an asset or liability must be classified in its entirety based on the lowest level of input that is significant to the measurement of fair value. The fair value hierarchy is broken down into three levels based on the reliability of inputs as follows: • Level 1 - Valuations based on quoted prices in active markets for identical instruments that the Company is able to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. • Level 2 - Valuations based on quoted prices in active markets for instruments that are similar, or quoted prices in markets that are not active for identical or similar instruments, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. • Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The Company did not have any financial assets utilizing Level 2 inputs. Financial assets utilizing Level 3 inputs included long term investments in auction rate securities consisting of preferred shares of closed end municipal bond funds (See "Investment Securities," Note 5). The Company’s financial instruments include cash and cash equivalents, investment securities, accounts payable, long term debt and certain other liabilities. The book value of the Company's financial instruments, excluding long term debt, is representative of their fair values. The Company’s investment securities at February 29, 2020 consisted primarily of U.S. Treasury securities, which are stated at amortized cost and are based on quoted prices in active markets for identical instruments (Level 1 valuation). As of February 27, 2021 and February 29, 2020, the fair value of the Company’s long term debt was approximately $1.118 billion and $1.126 billion, respectively, which is based on quoted prices in active markets for identical instruments (i.e., Level 1 valuation), compared to the carrying value of approximately $1.195 billion and $1.495 billion, respectively. |
Investment Securities
Investment Securities | 12 Months Ended |
Feb. 27, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | INVESTMENT SECURITIES The Company’s investment securities as of February 27, 2021 and February 29, 2020 are as follows: (in millions) February 27, 2021 February 29, 2020 Available-for-sale securities: Long term $ 19.4 $ 20.3 Held-to-maturity securities: Short term — 385.6 Total investment securities $ 19.4 $ 405.9 Auction Rate Securities As of February 27, 2021 and February 29, 2020, the Company’s long term available-for-sale investment securities represented approximately $20.3 million, par value of auction rate securities, consisting of preferred shares of closed end municipal bond funds, less a temporary valuation adjustment of approximately $830,000 as of February 27, 2021 and plus a temporary valuation adjustment of approximately $5,000 as of February 29, 2020. Since these valuation adjustments are deemed to be temporary, they are recorded in accumulated other comprehensive loss, net of a related tax benefit, and did not affect the Company’s net earnings. U.S. Treasury Securities As of February 27, 2021, there were no short-term held-to-maturity securities. As of February 29, 2020 the Company had $385.6 million of short term held-to maturity securities, consisting of U.S. Treasury Bills with remaining maturities of less than one year. These securities are stated at their amortized cost, which approximates fair value. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Feb. 27, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | PROPERTY AND EQUIPMENT Property and equipment consist of the following: (in thousands) February 27, 2021 February 29, 2020 Land and buildings $ 24,840 $ 261,743 Furniture, fixtures and equipment 502,869 718,159 Leasehold improvements 721,039 1,082,765 Computer equipment and software 1,355,758 1,376,931 Total 2,604,506 3,439,598 Less: Accumulated depreciation (1,686,088) (2,008,994) Property and equipment, net $ 918,418 $ 1,430,604 |
Long Term Debt
Long Term Debt | 12 Months Ended |
Feb. 27, 2021 | |
Debt Disclosure [Abstract] | |
Long Term Debt | LONG TERM DEBT Senior Unsecured Notes On July 17, 2014, the Company issued $300 million aggregate principal amount of 3.749% senior unsecured notes due August 1, 2024, $300 million aggregate principal amount of 4.915% senior unsecured notes due August 1, 2034 and $900 million aggregate principal amount of 5.165% senior unsecured notes due August 1, 2044 (collectively, the "Notes"). Interest on the Notes is payable semi-annually on February 1 and August 1 of each year. The Notes were issued under an indenture (the "Base Indenture"), as supplemented by a first supplemental indenture (together, with the Base Indenture, the "Indenture"), which contains various restrictive covenants, which are subject to important limitations and exceptions that are described in the Indenture. The Company was in compliance with all covenants related to the Notes as of February 27, 2021. On August 10, 2020, the Company announced that it lifted its temporary suspension of planned debt reductions and had commenced cash tender offers (the "Cash Tender Offers") to purchase up to $300 million aggregate principal amount of its outstanding 4.915% senior unsecured notes due 2034 and 5.165% senior unsecured notes due 2044. On August 24, 2020, the Company announced the successful early results and early settlement date of its Cash Tender Offers. On August 28, 2020, the Company completed its Cash Tender Offers to purchase approximately $75.0 million aggregate principal amount of its 4.915% senior unsecured notes due 2034 and approximately $225.0 million aggregate principal amount of its 5.165% senior unsecured notes due 2044. The total consideration paid for the notes accepted for purchase of $220.9 million included an early tender premium of $50 per $1,000 principal amount of the notes accepted for purchase, plus accrued and unpaid interest up to, but not including, the early settlement date. The Company recorded a gain on extinguishment of debt of $77.0 million in its consolidated statement of operations for the fiscal year ended February 27, 2021, including the write off of unamortized debt financing costs related to the extinguished portion of the notes accepted for purchase and reacquisition costs. In fiscal 2018, the Company purchased and retired approximately $4.6 million of senior unsecured notes due August 1, 2024. As of February 27, 2021 and February 29, 2020, unamortized deferred financing costs associated with the Company’s 3.749% senior unsecured notes due 2024, 4.915% senior unsecured notes due 2034 and 5.165% senior unsecured notes due 2044 were $5.0 million and $7.0 million, respectively, and are included in long-term debt in the Company's consolidated balance sheets. Asset-Based Credit Agreement On June 19, 2020, the Company entered into a secured asset-based credit agreement (the "Credit Agreement") among the Company, certain of the Company’s U.S. and Canadian subsidiaries party thereto, JPMorgan Chase Bank, N.A., as administrative agent and collateral agent (in such capacity, the "Agent"), and the lenders party thereto, which replaced the Company’s previous $250 million five year senior unsecured revolving credit facility agreement maturing November 14, 2022 ("Revolver"), as well as the Company's two prior $100 million uncommitted lines of credit. The Credit Agreement provides for a secured asset-based revolving credit facility (the "ABL Facility") with aggregate revolving commitments established at closing of $850 million, including a swingline subfacility and a letter of credit subfacility. The Credit Agreement has an uncommitted expansion feature which allows the Company to request, at any time following the delivery of an initial field exam and appraisal, an increase in aggregate revolving commitments under the ABL Facility or elect to enter into a first-in-last-out loan facility, collectively, in an aggregate amount of up to $375 million, subject to certain customary conditions. The Credit Agreement matures on June 19, 2023. The proceeds advanced under the Credit Agreement were used to refinance $236.4 million in borrowings outstanding under the Revolver. These borrowings were fully repaid in August 2020. As of February 27, 2021, the Company had no loans outstanding under the ABL Facility, but had outstanding letters of credi t of $142.0 million. The ABL Facility is secured on a first priority basis (subject to customary exceptions) on all accounts receivable (including credit card receivables), inventory, certain deposit accounts and securities accounts, and certain related assets, of the Company and its subsidiaries that are borrowers or guarantors under the ABL Facility. Amounts available to be drawn from time to time under the ABL Facility (including, in part, in the form of letters of credit) are equal to the lesser of (i) outstanding revolving commitments under the Credit Agreement and (ii) a borrowing base equal to the sum of (a) 90% of eligible credit card receivables, plus (b) 90% of eligible inventory, valued at the lower of cost or market value, determined on a weighted average cost basis, minus (c) customary reserves. Subject to customary exceptions and restrictions, the Company may voluntarily repay outstanding amounts under the ABL Facility at any time without premium or penalty. Any voluntary prepayments made will not reduce commitments under the ABL Facility. If at any time the outstanding amount under the ABL Facility exceeds the lesser of (i) the aggregate revolving commitments and (ii) the borrowing base, the Company will be required to prepay outstanding amounts or cash collateralize letter of credit obligations under the ABL Facility. The Credit Agreement contains a mandatory prepayment provision which provides that if at any time (i) the aggregate amount of unrestricted cash and cash equivalents of the Company and its consolidated subsidiaries would exceed $100 million and (ii) the aggregate principal amount of all loans (other than incremental first-in-last-out loans borrowed under the expansion feature of the Credit Agreement) exceeds $600 million, then the borrowers must repay outstanding obligations under the Credit Agreement in an aggregate amount equal to the amount in excess of $600 million. Outstanding amounts under the Credit Agreement bear interest at a rate per annum equal to, at the applicable borrower’s election: (i) in the case of loans denominated in U.S. dollars, LIBOR or an alternate base rate and (ii) for loans denominated in Canadian dollars, CDOR or the Canadian prime rate, in each case as set forth in the Credit Agreement, plus an interest rate margin based on average quarterly availability ranging from (i) in the case of LIBOR loans and CDOR loans, 2.25% to 2.75%; provided that if LIBOR or CDOR is less than 1.00%, such rate shall be deemed to be 1.00%, as applicable, and (ii) in the case of alternate base rate loans and Canadian prime rate loans, 1.25% to 1.75%; provided that if the alternate base rate or Canadian prime rate is less than 2.00%, such rate shall be deemed to be 2.00%, as applicable. The Credit Agreement contains customary representations and warranties, events of default and financial, affirmative and negative covenants for facilities of this type, including but not limited to a springing financial covenant relating to a fixed charge coverage ratio, which will become effective if availability under the ABL Facility falls below a specified threshold, and restrictions on indebtedness, liens, investments and acquisitions, asset dispositions, restricted payments (including dividends and share repurchases) and prepayment of certain indebtedness. The Company was in compliance with all covenants related to the Credit Agreement as of February 27, 2021. As of February 27, 2021 and February 29, 2020, unamortized deferred financing costs associated with the Company's revolving credit facilities were $6.1 million and $0.3 million, respectively, and were recorded in other assets in the Company's consolidated balance sheets. The Company amortizes deferred financing costs for the Notes and the ABL Facility over their respective terms and such amortization is included in interest expense, net in the consolidated statements of operations. Interest expense related to the Notes and the revolving credit facilities, including the commitment fee and the amortization of deferred financing costs, was approxim ately $73.6 million for the fiscal year ended February 27, 2021 and $73.0 million for each of the fiscal years ended February 29, 2020 and March 2, 2019. |
Provision for Income Taxes
Provision for Income Taxes | 12 Months Ended |
Feb. 27, 2021 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | PROVISION FOR INCOME TAXES The components of the (benefit) provision for income taxes are as follows: FISCAL YEAR ENDED (in thousands) February 27, 2021 February 29, 2020 March 2, 2019 Current: Federal $ (336,506) $ 2,455 $ 61,721 State and local 1,211 (7,973) 22,995 (335,295) (5,518) 84,716 Deferred: Federal 150,861 (124,578) (83,576) State and local (1,555) (20,941) (20,525) 149,306 (145,519) (104,101) $ (185,989) $ (151,037) $ (19,385) At February 27, 2021 and February 29, 2020, included in other assets are net deferred income tax assets of $130.0 million and $276.5 million, respectively. These amounts represent the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The significant components of the Company’s deferred tax assets and liabilities consist of the following: (in thousands) February 27, 2021 February 29, 2020 Deferred tax assets: Inventories $ 13,040 $ 35,665 Operating lease liabilities 484,290 601,378 Insurance 9,086 20,208 Stock-based compensation 1,014 5,115 Merchandise credits and gift card liabilities 52,584 47,742 Accrued expenses 31,914 51,334 Obligations on distribution facilities — 26,126 Intangibles 1,008 — Goodwill 1,596 44,332 Carryforwards and other tax credits 86,914 118,478 Other 34,104 29,539 Valuation allowance: (26,011) — Deferred tax liabilities: Depreciation (105,649) (110,864) Intangibles — (10,251) Prepaid expenses (26,356) (2,364) Operating lease assets (409,535) (555,642) Other (17,977) (24,268) $ 130,022 $ 276,528 At February 27, 2021, the Company has federal net operating loss carryforwards of $4.6 million (tax effected), which will expire between 2025 and 2039, state net operating loss carry forwards of $33.5 million (tax effected), which will expire between 2020 and 2040, California state enterprise zone credit carryforwards of $2.1 million (tax effected), which will expire in 2023, but require taxable income in the enterprise zone to be realizable. The Company assessed the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of existing deferred tax assets in each taxpaying jurisdiction. On the basis of this evaluation, as of February 27, 2021, a valuation allowance of $10.5 million was recorded relative to the charitable contribution carryforward in the U.S., and a valuation allowance of $15.5 million was recorded relative to the Company's Canadian net deferred tax asset as the Company does not believe the deferred tax assets in that jurisdiction are more likely than not to be realized; however, the amount of the deferred tax assets considered realizable could be adjusted if estimates of future taxable income during the carryforward period change or if objective negative evidence in the form of cumulative losses is no longer present and additional weight is given to subjective evidence such as projections for future growth. The following table summarizes the activity related to the gross unrecognized tax benefits from uncertain tax positions: (in thousands) February 27, 2021 February 29, 2020 Balance at beginning of year $ 51,781 $ 61,937 Increase related to current year positions 69,106 5,009 Increase related to prior year positions — 3,857 Decrease related to prior year positions (2,797) (15,162) Settlements (4,981) (203) Lapse of statute of limitations (7,360) (3,657) Balance at end of year $ 105,749 $ 51,781 Gross unrecognized tax benefits are classified in non-current income taxes payable (or a contra deferred tax asset) on the consolidated balance sheet for uncertain tax positions taken (or expected to be taken) on a tax return. As of February 27, 2021 and February 29, 2020, approximately $61.9 million and $51.8 million, respectively, of gross unrecognized tax benefits would impact the Company’s effective tax rate. As of February 27, 2021 and February 29, 2020, the liability for gross unrecognized tax benefits included approximately $8.1 million and $9.6 million, respectively, of accrued interest. The Company recognizes interest & penalties for unrecognized tax benefits, as applicable, in income tax expense. The Company recorded a decrease to accrued interest of approximately $1.5 million for the fiscal year ended February 27, 2021 and an increase of approximately $1.3 million for the fiscal year ended February 29, 2020 for gross unrecognized tax benefits in the consolidated statement of earnings. The Company anticipates that any adjustments to gross unrecognized tax benefits which will impact income tax expense, due to the expiration of statutes of limitations, could be approximately $3.2 million in the next twelve months. However, actual results could differ from those currently anticipated. As of February 27, 2021, the Company operated in all 50 states, the District of Columbia, Puerto Rico, Canada and several other international countries and files income tax returns in the United States and various state, local and international jurisdictions. The Company is currently under examination by the Internal Revenue Service for the tax year 2017. The Company is open to examination for state, foreign and local jurisdictions with varying statutes of limitations, generally ranging from 3 to 5 years. The following table summarizes the reconciliation between the effective income tax rate and the federal statutory rate: FISCAL YEAR ENDED February 27, 2021 February 29, 2020 March 2, 2019 Federal statutory rate 21.00 % 21.00 % 21.00 % State income tax rate, net of federal impact 3.94 4.28 (1.38) Uncertain tax positions 1.63 1.33 7.24 Impact of the Tax Act — — 2.70 Goodwill non-deductible impairment charges — (4.84) (18.64) Tax deficiencies related to stock-based compensation (3.18) (3.07) (6.48) Tax credits 0.41 0.49 4.53 CARES Act 35.98 — — Valuation Allowance (7.74) — — Other 3.13 0.56 3.41 55.17 % 19.75 % 12.38 % |
Transactions and Balances With
Transactions and Balances With Related Parties | 12 Months Ended |
Feb. 27, 2021 | |
Related Party Transactions [Abstract] | |
Transactions and Balances With Related Parties | TRANSACTIONS AND BALANCES WITH RELATED PARTIES In fiscal 2002, the Company had an interest in certain life insurance policies on the lives of its Co-Founders and their spouses. The Company’s interest in these policies was equivalent to the net premiums paid by the Company. The agreements relating to the Company’s interest in the life insurance policies on the lives of its Co-Founders and their spouses were terminated in fiscal 2003. Upon termination in fiscal 2003, the Co-Founders paid to the Company $5.4 million, representing the total amount of premiums paid by the Company under the agreements and the Company was released from its contractual obligation to make substantial future premium payments. In order to confer a benefit to its Co-Founders in substitution for the aforementioned terminated agreements, as of February 27, 2004, the Company agreed to pay to the Co-Founders, at a future date, an aggregate amount of $4.2 million, which was included in accrued expenses and other current liabilities as of February 29, 2020. During the first quarter of fiscal 2020, the Company paid the Co-Founders this amount in accordance with the terms of the prior agreements entered into as of February 27, 2004. The Company has no further obligations to Messrs. Eisenberg or Feinstein in respect of the aforementioned agreements On April 21, 2019, Warren Eisenberg and Leonard Feinstein transitioned to the role of Co-Founders and Co-Chairmen Emeriti of the Board of Directors of the Company. As a result of this transition, Messrs. Eisenberg and Feinstein ceased to be officers of the Company effective as of April 21, 2019, and became entitled to the payments and benefits provided under their employment agreements that apply in the case of termination without cause, which generally include continued senior status payments until May 2027 and continued participation for Co-Founders (and their spouses, if applicable) at the Company’s expense in employee plans and programs. In addition, the Co-Founders remain entitled to supplemental pension payments specified in their employment agreements of $200,000 per year (as adjusted for a cost of living increase), until the death of the survivor of the applicable Co-Founder and his spouse, reduced by the continued senior status payments referenced above. |
Leases
Leases | 12 Months Ended |
Feb. 27, 2021 | |
Leases [Abstract] | |
Leases | LEASES The Company leases retail stores, as well as distribution facilities, offices and equipment, under agreements expiring at various dates throug h 2041. T he leases provide for original lease terms that generally range from 10 to 15 years and most leases provide for a series of five year renewal options, often at increased rents, the exercise of which is at the Company's sole discretion. Certain leases provide for contingent rents (which are based upon store sales exceeding stipulated amounts and are immaterial in fiscal 2020, 2019 and 2018), scheduled rent increases and renewal options. The Company is obligated under a majority of the leases to pay for taxes, insurance and common area maintenance charges. The Company subleases certain real estate to unrelated third parties, which have all been classified as operating leases. The Company recognizes sublease income on a straight-line basis over the sublease term, which generally ranges from 5 to 10 years. Most sublease arrangements provide for a series of five year renewal options, the exercise of which are at the Company's sole discretion. Similar to other retailers, during the fiscal year ended February 27, 2021, the Company has withheld portions of and/or delayed payments to certain landlords as the Company seeks to renegotiate payment terms, in order to further maintain liquidity given the temporary store closures. In some instances, the renegotiations have led to agreements with landlords for rent abatements or rental deferrals. Total payments withheld and/or delayed or deferred as of February 27, 2021 were approximate ly $9.6 million an d are included in current liabilities. Additional negotiations of payment terms are still in process. In accordance with the Financial Accounting Standards Board’s recent Staff Q&A regarding rent concessions related to the effects of the COVID-19 pandemic, the Company has elected to account for the concessions agreed to by landlords that do not result in a substantial increase in the rights of the lessor or the obligations of the lessee as though enforceable rights and obligations for those concessions existed in the original lease agreements and the Company has elected to not remeasure the related lease liabilities and right-of-use assets. For qualifying rent abatement concessions, the Company has recorded negative lease expense for the amount of the concession during the period of relief, and for qualifying deferrals of rental payments, the Company has recognized a non-interest bearing payable in lieu of recognizing a decrease in cash for the lease payment that would have been made based on the original terms of the lease agreement, which will be reduced when the deferred payment is made in the future. During the fiscal year ended February 27, 2021, the Company recognized reduced rent expense of $10.3 million related to rent abatement concessions. The components of total lease cost for the fiscal year ended February 27, 2021 and February 29, 2020 were as follows: (in thousands) Statement of Operations Location Fiscal year ended February 27, 2021 Fiscal Year Ended February 29, 2020 Operating lease cost Cost of sales and SG&A $ 582,168 $ 581,061 Finance lease cost: Depreciation of property SG&A 2,500 2,591 Interest on lease liabilities Interest expense, net 7,755 8,927 Variable lease cost Cost of sales and SG&A 189,485 203,526 Sublease income SG&A (12,574) (1,112) Total lease cost $ 769,334 $ 794,993 As of February 27, 2021 and February 29, 2020, assets and liabilities related to the Company's operating and finance leases were as follows: (in thousands) Consolidated Balance Sheet Location February 27, 2021 February 29, 2020 Assets Operating leases Operating lease assets $ 1,587,101 $ 2,006,966 Finance leases Property and equipment, net — 69,287 Total Lease assets $ 1,587,101 $ 2,076,253 Liabilities Current: Operating leases Current operating lease liabilities $ 360,061 $ 463,005 Finance leases Accrued expenses and other current liabilities — 1,541 Noncurrent: Operating leases Operating lease liabilities 1,509,767 1,818,783 Finance leases Other liabilities — 102,412 Total lease liabilities $ 1,869,828 $ 2,385,741 As of February 27, 2021, the Company's lease liabilities mature as follows: (in thousands) Operating Leases Fiscal Year: 2021 $ 462,703 2022 409,076 2023 338,706 2024 282,472 2025 219,807 Thereafter 617,804 Total lease payments $ 2,330,568 Less imputed interest $ (460,740) Present value of lease liabilities $ 1,869,828 As of February 27, 2021, the Company has entered into leases which have not yet commenced for two new or relocated locations planned for opening in fiscal 2021, for which aggregate minimum rental payments over the term of the leases are approximately $7.7 million. The Company's lease terms and discount rates were as follows: February 27, 2021 February 29, 2020 Weighted-average remaining lease term (in years) Operating leases 6.8 6.6 Finance leases — 25.7 Weighted-average discount rate Operating leases 6.4 % 6.2 % Finance leases — % 9.0 % Other information with respect to the Company's leases is as follows: (in thousands) Fiscal year ended February 27, 2021 Fiscal Year Ended February 29, 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 646,981 $ 580,030 Operating cash flows from finance leases 9,295 10,401 Operating lease assets obtained in exchange for new operating lease liabilities 305,614 548,856 During December 2019, the Company completed a sale-leaseback transaction on approximately 2.1 million square feet of owned real estate, which generated approximately $267.3 million in proceeds. As a result of the transaction, the Company recorded a loss, including transaction costs of approximately $5.7 million, of approximately $33.1 million which is included in selling, general and administrative expenses in the consolidated statement of operations for the fiscal year ended February 29, 2020. All leases entered into as a result of the sale-leaseback transaction were classified as operating leases. For certain assets included in the transaction, the Company determined that the fair value of the assets was less than the consideration received. As a result, the Company recognized a financing obligation in the amount of $14.5 million, for the additional financing obtained from the buyer. As of February 27, 2021, the financing obligation amounted to $13.8 million, of which $0.7 million is included in accrued expenses and other current liabilities, and $13.1 million is included in other liabilities, in the consolidated balance sheets. |
Leases | LEASES The Company leases retail stores, as well as distribution facilities, offices and equipment, under agreements expiring at various dates throug h 2041. T he leases provide for original lease terms that generally range from 10 to 15 years and most leases provide for a series of five year renewal options, often at increased rents, the exercise of which is at the Company's sole discretion. Certain leases provide for contingent rents (which are based upon store sales exceeding stipulated amounts and are immaterial in fiscal 2020, 2019 and 2018), scheduled rent increases and renewal options. The Company is obligated under a majority of the leases to pay for taxes, insurance and common area maintenance charges. The Company subleases certain real estate to unrelated third parties, which have all been classified as operating leases. The Company recognizes sublease income on a straight-line basis over the sublease term, which generally ranges from 5 to 10 years. Most sublease arrangements provide for a series of five year renewal options, the exercise of which are at the Company's sole discretion. Similar to other retailers, during the fiscal year ended February 27, 2021, the Company has withheld portions of and/or delayed payments to certain landlords as the Company seeks to renegotiate payment terms, in order to further maintain liquidity given the temporary store closures. In some instances, the renegotiations have led to agreements with landlords for rent abatements or rental deferrals. Total payments withheld and/or delayed or deferred as of February 27, 2021 were approximate ly $9.6 million an d are included in current liabilities. Additional negotiations of payment terms are still in process. In accordance with the Financial Accounting Standards Board’s recent Staff Q&A regarding rent concessions related to the effects of the COVID-19 pandemic, the Company has elected to account for the concessions agreed to by landlords that do not result in a substantial increase in the rights of the lessor or the obligations of the lessee as though enforceable rights and obligations for those concessions existed in the original lease agreements and the Company has elected to not remeasure the related lease liabilities and right-of-use assets. For qualifying rent abatement concessions, the Company has recorded negative lease expense for the amount of the concession during the period of relief, and for qualifying deferrals of rental payments, the Company has recognized a non-interest bearing payable in lieu of recognizing a decrease in cash for the lease payment that would have been made based on the original terms of the lease agreement, which will be reduced when the deferred payment is made in the future. During the fiscal year ended February 27, 2021, the Company recognized reduced rent expense of $10.3 million related to rent abatement concessions. The components of total lease cost for the fiscal year ended February 27, 2021 and February 29, 2020 were as follows: (in thousands) Statement of Operations Location Fiscal year ended February 27, 2021 Fiscal Year Ended February 29, 2020 Operating lease cost Cost of sales and SG&A $ 582,168 $ 581,061 Finance lease cost: Depreciation of property SG&A 2,500 2,591 Interest on lease liabilities Interest expense, net 7,755 8,927 Variable lease cost Cost of sales and SG&A 189,485 203,526 Sublease income SG&A (12,574) (1,112) Total lease cost $ 769,334 $ 794,993 As of February 27, 2021 and February 29, 2020, assets and liabilities related to the Company's operating and finance leases were as follows: (in thousands) Consolidated Balance Sheet Location February 27, 2021 February 29, 2020 Assets Operating leases Operating lease assets $ 1,587,101 $ 2,006,966 Finance leases Property and equipment, net — 69,287 Total Lease assets $ 1,587,101 $ 2,076,253 Liabilities Current: Operating leases Current operating lease liabilities $ 360,061 $ 463,005 Finance leases Accrued expenses and other current liabilities — 1,541 Noncurrent: Operating leases Operating lease liabilities 1,509,767 1,818,783 Finance leases Other liabilities — 102,412 Total lease liabilities $ 1,869,828 $ 2,385,741 As of February 27, 2021, the Company's lease liabilities mature as follows: (in thousands) Operating Leases Fiscal Year: 2021 $ 462,703 2022 409,076 2023 338,706 2024 282,472 2025 219,807 Thereafter 617,804 Total lease payments $ 2,330,568 Less imputed interest $ (460,740) Present value of lease liabilities $ 1,869,828 As of February 27, 2021, the Company has entered into leases which have not yet commenced for two new or relocated locations planned for opening in fiscal 2021, for which aggregate minimum rental payments over the term of the leases are approximately $7.7 million. The Company's lease terms and discount rates were as follows: February 27, 2021 February 29, 2020 Weighted-average remaining lease term (in years) Operating leases 6.8 6.6 Finance leases — 25.7 Weighted-average discount rate Operating leases 6.4 % 6.2 % Finance leases — % 9.0 % Other information with respect to the Company's leases is as follows: (in thousands) Fiscal year ended February 27, 2021 Fiscal Year Ended February 29, 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 646,981 $ 580,030 Operating cash flows from finance leases 9,295 10,401 Operating lease assets obtained in exchange for new operating lease liabilities 305,614 548,856 During December 2019, the Company completed a sale-leaseback transaction on approximately 2.1 million square feet of owned real estate, which generated approximately $267.3 million in proceeds. As a result of the transaction, the Company recorded a loss, including transaction costs of approximately $5.7 million, of approximately $33.1 million which is included in selling, general and administrative expenses in the consolidated statement of operations for the fiscal year ended February 29, 2020. All leases entered into as a result of the sale-leaseback transaction were classified as operating leases. For certain assets included in the transaction, the Company determined that the fair value of the assets was less than the consideration received. As a result, the Company recognized a financing obligation in the amount of $14.5 million, for the additional financing obtained from the buyer. As of February 27, 2021, the financing obligation amounted to $13.8 million, of which $0.7 million is included in accrued expenses and other current liabilities, and $13.1 million is included in other liabilities, in the consolidated balance sheets. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Feb. 27, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS Defined Contribution Plans The Company has three defined contribution savings plans covering all eligible employees of the Company (the "Plans"). Participants of the Plans may defer annual pre-tax compensation subject to statutory and Plan limitations. In addition, a certain percentage of an employee’s contributions are matched by the Company and vest over a specified period of time, subject to certain statutory and Plan limitations. The Company’s match was approximately $10.6 million, $13.7 million, and $15.5 million for fiscal 2020, 2019 and 2018, respectively, which was expensed as incurred. Defined Benefit Plan The Company has a non-contributory defined benefit pension plan for the CTS employees, hired on or before July 31, 2003, who meet specified age and length-of-service requirements. The benefits are based on years of service and the participating employee’s compensation up until retirement. The Company recognizes the overfunded or underfunded status of the pension plan as an asset or liability in its statement of financial position and recognizes changes in the funded status in the year in which the changes occur. For the years ended February 27, 2021, February 29, 2020 and March 2, 2019, the net periodic pension cost was not material to the Company’s results of operations. As of February 27, 2021 and February 29, 2020, the Company had liabilities of $3.6 million and $3.2 million, respectively, which are included in other liabilities in the Company's consolidated balance sheets. In addition, as of February 27, 2021 and February 29, 2020, the Company recognized a loss of $8.4 million, net of taxes of $3.0 million, and a loss of $8.5 million, net of taxes of $3.0 million, respectively, within accumulated other comprehensive loss. The Company remained liable for this plan upon its divestiture of CTS during fiscal 2020 and is in the process of terminating this plan. During the year ended February 27, 2021, the Company released $2.1 million from other comprehensive income in connection with the partial settlement of the plan in December 2020, which is recorded within loss on sale of businesses, including impairment of assets held for sale, in the consolidated statements of operations. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Feb. 27, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES A putative securities class action was filed on April 14, 2020 against the Company and three of its officers and/or directors (Mark Tritton, Mary Winston (the Company’s former Interim Chief Executive Officer) and Robyn D’Elia (the Company’s former Chief Financial Officer and Treasurer)) in the United States District Court for the District of New Jersey (the "New Jersey federal court"). The case, which is captioned Vitiello v. Bed Bath & Beyond Inc., et al. , Case No. 2:20-cv-04240-MCA-MAH, asserts claims under §§ 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") on behalf of a putative class of purchasers of the Company’s securities from October 2, 2019 through February 11, 2020. The Complaint alleges that certain of the Company’s disclosures about financial performance and certain other public statements during the putative class period were materially false or misleading. A similar putative securities class action, asserting the same claims on behalf of the same putative class against the same defendants, was filed on April 30, 2020. That case, captioned Kirkland v. Bed Bath & Beyond Inc., et al. , Case No. 1:20-cv-05339-MCA-MAH, is also pending in the United States District Court for the District of New Jersey. On August 14, 2020, the court consolidated the two cases and appointed Kavin Bakhda as lead plaintiff pursuant to the Private Securities Litigation Reform Act of 1995. Lead plaintiff and additional named plaintiff Richard Lipka filed an Amended Class Action Complaint on October 20, 2020, on behalf of a putative class of purchasers of the Company’s securities from September 4, 2019 through February 11, 2020. Defendants moved to dismiss the Amended Complaint on December 21, 2020. On July 10, 2020, the first of three related shareholder derivative actions was filed in the New Jersey federal court on behalf of the Company against various present and former directors and officers. The case, which is captioned Salu v. Tritton, et al. , Case No. 2:20-cv-08673-MCA-MAH (D.N.J.), asserts claims under §§ 10(b) and 20(a) of the Exchange Act and for breach of fiduciary duty, unjust enrichment, and waste of corporate assets under state law arising from the events underlying the securities class actions described above and from the Company’s repurchases of its own shares during the class period pled in the securities cases. The two other derivative actions, which assert similar claims, are captioned Grooms v. Tritton, et al. , Case No. 2:20-cv-09610-SDW-RDW (D.N.J.) (filed July 29, 2020), and Mantia v. Fleming, et al. , Case No. 2:20-cv-09763-MCA-MAH (D.N.J.) (filed July 31, 2020). On August 5, 2020, the court signed a stipulation by the parties in the Salu case to stay that action pending disposition of a motion to dismiss in the securities class action, subject to various terms outlined in the stipulation. The parties in all three derivative cases have moved to consolidate them and to apply the Salu stay of proceedings to all three actions. The court granted the motion on October 14, 2020. On August 28, 2020, another related shareholder derivative action, captioned Schneider v. Tritton, et al. , Index No 516051/2020, was filed in the Supreme Court of the State of New York, County of Kings. The claims pled in the Schneider case are similar to those pled in the three federal derivative cases, except that the Schneider complaint does not plead claims under the Exchange Act. On September 21, 2020, the parties filed a stipulation seeking to stay that action pending disposition of a motion to dismiss in the securities class action, subject to various terms and conditions. At this time, the Company is unable to estimate any potential losses that may be incurred and has not recorded a liability for the above matters. The District Attorney's office for the County of Ventura, together with District Attorneys for other counties in California (together, the "District Attorneys"), recently concluded an investigation regarding the management and disposal at the Company’s stores in California of certain materials that may be deemed hazardous or universal waste under California law. On March 19, 2019, the District Attorneys provided the Company with a settlement demand that included a proposed civil penalty, reimbursement of investigation costs, and certain injunctive relief, including modifications to the Company’s existing compliance program, which already includes associate training, on-going review of disposal rules applicable to various product categories, and specialized third-party disposal. During fiscal 2020, the Company and the District Attorneys agreed to final terms on a settlement payment of approximately $1.5 million to resolve the matter. The Company has also agreed to spend $171,000 over the next 36 months on refinements to its compliance program. The Company and District Attorneys executed a Stipulated Judgment to this effect, which was recently filed with the court. As of February 29, 2020, the Company had recorded an accrual for the estimated probable loss for this matter, and the Company made the related settlement payment during the fourth quarter of fiscal 2020. On April 21, 2019, Warren Eisenberg and Leonard Feinstein transitioned to the role of Co-Founders and Co-Chairmen Emeriti of the Board of Directors of the Company. As a result of this transition, Mr. Eisenberg and Mr. Feinstein ceased to be officers of the Company effective as of April 21, 2019, and became entitled to the payments and benefits provided under their employment agreements that apply in the case of a termination without cause, which generally include continued senior status payments until May 2027 and continued participation for the Co-Founders (and their spouses, if applicable) at the Company’s expense in employee plans and programs. In addition, the Co-Founders remain entitled to supplemental pension payments specified in their employment agreements of $200,000 per year (as adjusted for a cost of living increase), until the death of the survivor of the applicable Co-Founder and his spouse, reduced by the continued senior status payments referenced above. Pursuant to their respective restricted stock and performance stock unit agreements, shares of restricted stock and performance-based stock units granted to Messrs. Eisenberg and Feinstein vested upon their resignation as members of the Board of Directors effective May 1, 2019, subject, however, to attainment of any applicable performance goals and the certification of the applicable performance-based tests by the Compensation Committee, as provided under their award agreements. The Company’s former Chief Executive Officer ("Former CEO") departed the Company effective as of May 12, 2019. In accordance with the terms of the Former CEO's employment and equity award agreements, the Former CEO was entitled to three times his then-current salary, payable over three years in normal payroll installments, except that any amount due prior to the six months after his departure, was paid in a lump sum after such six-month period. Such amounts will be reduced by any compensation earned with any subsequent employer or otherwise and will be subject to the Former CEO's compliance with a one-year non-competition and non-solicitation covenant. On October 21, 2019, the Former CEO entered into an agreement (the "Former CEO PSU settlement agreement") with the Company to reduce the PSUs held by him by an excess amount of outstanding PSUs granted to the Former CEO in the Company’s 2018 fiscal year as a result of the use of the fiscal 2017 peer group in lieu of the fiscal 2018 peer group. Further, as a result of this departure, the time-vesting component of the Former CEO's stock-based awards accelerated, including (i) stock options (which were "underwater" and expired without having been exercised by the Former CEO), (ii) PSU awards which had previously met the related performance-based test, had been certified by the Compensation Committee, and remained subject solely to time-vesting, and (iii) PSU awards (assuming target level of performance) which remain subject to attainment of any performance goals and the certification of the applicable performance-based tests by the Compensation Committee, as provided under his award agreements and subject to the terms of the Former CEO PSU settlement agreement. The Former CEO was also party to a supplemental executive retirement benefit agreement ("SERP") and a related escrow agreement, pursuant to which the Former CEO was entitled to receive a supplemental retirement benefit as a result of the separation from service from the Company. Pursuant to the SERP, as a result of the separation from service with the Company as of May 12, 2019 being treated as a termination without cause, the Former CEO was entitled to a lump sum payment equal to the present value of an annual amount equal to 50% of the Former CEO's annual base salary on the date of termination of employment if such annual amount were paid for a period of 10 years in accordance with the Company’s normal payroll practices, subject to the Former CEO's timely execution and non-revocation of a release of claims in favor of the Company (which occurred). This amount was paid on November 13, 2019, the first business day following the six-month anniversary of the Former CEO's termination of service. The Company has no further obligations to the Former CEO under the SERP. During fiscal 2019, the Company expensed pre-tax charges related to both the transition of Messrs. Eisenberg and Feinstein to the role of Co-Founders and Co-Chairmen Emeriti of the Board of Directors of the Company and the departure of the Former CEO of approximately $36.8 million. In addition, the Company maintains employment agreements with other executives which provide for severance pay. The Company records an estimated liability related to its various claims and legal actions arising in the ordinary course of business when and to the extent that it concludes a liability is probable and the amount of the loss can be reasonably estimated. Such estimated loss is based on available information and advice from outside counsel, where appropriate. As additional information becomes available, the Company reassesses the potential liability related to claims and legal actions and revises its estimated liabilities, as appropriate. The Company expects the ultimate disposition of these matters will not have a material adverse effect on the Company’s consolidated financial position, results of operations or liquidity. The Company also cannot predict the nature and validity of claims which could be asserted in the future, and future claims could have a material impact on its earnings. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Feb. 27, 2021 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | SUPPLEMENTAL CASH FLOW INFORMATION The Company paid income taxes of $4.8 million, $44.8 million, and $61.3 million in fiscal 2020, 2019 and 2018, respectively. In addition, the Company had interest payments of approximately $75.5 million, $81.2 million, and $81.4 million in fiscal 2020, 2019 and 2018, respectively. The Company recorded an accrual for capital expenditures of $44.6 million, $36.9 million, and $51.7 million as of February 27, 2021, February 29, 2020 and March 2, 2019, respectively. In addition, the Company recorded an accrual for dividends payable of $2.1 million, $26.4 million, $28.3 million as of February 27, 2021, February 29, 2020, and March 2, 2019 respectively. In fiscal 2018, the Company recorded a $31.1 million note receivable in connection with the sale of a building. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Feb. 27, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION The Company measures all stock-based compensation awards for employees and non-employee directors using a fair value method and records such expense, net of estimated forfeitures, in its consolidated financial statements. Currently, the Company’s stock-based compensation relates to restricted stock awards, stock options, restricted stock units and performance stock units. The Company’s restricted stock awards are considered nonvested share awards. Stock-based compensation expense for the fiscal year ended February 27, 2021, February 29, 2020 and March 2, 2019 was approximately $31.6 million ($14.1 million after tax or $0.12 per diluted share), $45.7 million ($36.7 million after tax or $0.29 per diluted share), and approximately $58.5 million ($51.3 million after tax or $0.38 per diluted share), respectively. In addition, the amount of stock-based compensation cost capitalized for the years ended February 27, 2021 and February 29, 2020 was approximately $0.8 million and $0.5 million, respectively. Incentive Compensation Plans The Company may grant awards under the Bed Bath & Beyond 2018 Incentive Compensation Plan (the "2018 Plan") and the Bed Bath & Beyond 2012 Incentive Compensation Plan (the "2012 Plan"). The 2018 Plan includes an aggregate of 4.6 million shares of common stock authorized for issuance of awards permitted under the 2018 Plan, including stock options, stock appreciation rights, restricted stock awards, performance awards and other stock based awards. The 2018 Plan supplements the 2012 Plan, which amended and restated the Bed Bath & Beyond 2004 Incentive Compensation Plan (the "2004 Plan"). The 2012 Plan includes an aggregate of 43.2 million common shares authorized for issuance of awards permitted under the 2012 Plan (similar to the 2018 Plan). Outstanding awards that were covered by the 2004 Plan continue to be in effect under the 2012 Plan. The terms of the 2012 Plan and the 2018 Plan are substantially similar and enable the Company to offer incentive compensation through stock options (whether nonqualified stock options or incentive stock options), restricted stock awards, stock appreciation rights, performance awards and other stock based awards, and cash-based awards. Grants are determined by the Compensation Committee of the Board of Directors of the Company for those awards granted to executive officers, and by the Board of Directors of the Company for awards granted to non-employee directors. Stock option grants generally become exercisable in either three or five equal annual installments beginning one year from the date of grant, subject, in general, to the recipient remaining in the Company’s service on specified vesting dates. Restricted stock awards generally become vested in five to seven equal annual installments beginning one three The Company generally issues new shares for stock option exercises, restricted stock awards and vesting of restricted stock units and performance stock units. The 2018 Plan expires in May 2028. The 2012 Plan expires in May 2022. As described in further detail below, in fiscal 2020 and 2019, the Company granted stock-based awards to certain of the Company’s new executive officers as inducements material to their commencement of employment and entry into an employment agreement with the Company. The inducement awards were made in accordance with Nasdaq Listing Rule 5635(c)(4) and were not made under the 2012 Plan or the 2018 Plan. Stock Options Stock option grants were issued at fair market value on the date of grant and generally became exercisable in either three or five equal annual installments beginning one year from the date of grant, subject, in general, to the recipient remaining in the Company’s service on specified vesting dates. Option grants expired eight years after the date of grant. All option grants were nonqualified. During the fiscal year ended February 27, 2021, the remaining 822,633 options outstanding were forfeited and there were no options outstanding as of February 27, 2021. For the fiscal year ended February 27, 2021, no stock options were granted. For stock options granted in fiscal 2019 and 2018, the fair value of these stock options granted were estimated on the date of grant using a Black-Scholes option-pricing model that used the assumptions noted in the table below. The weighted average fair value for the stock options granted in fiscal 2019 and 2018 were $4.18 and $4.31, respectively. Fiscal Year Ended Black-Scholes Valuation Assumptions (1) February 29, 2020 March 2, 2019 Weighted Average Expected Life (in years) (2) 7.6 6.7 Weighted Average Expected Volatility (3) 39.41 % 34.96 % Weighted Average Risk Free Interest Rates (4) 2.39 % 2.92 % Expected Dividend Yield (5) 4.34 % 3.80 % ________________________ (1) Forfeitures were estimated based on historical experience. (2) The expected life of stock options was estimated based on historical experience. (3) Expected volatility was based on the average of historical and implied volatility. The historical volatility was determined by observing actual prices of the Company’s stock over a period commensurate with the expected life of the awards. The implied volatility represented the implied volatility of the Company’s call options, which were actively traded on multiple exchanges, had remaining maturities in excess of twelve months, had market prices close to the exercise prices of the employee stock options and were measured on the stock option grant date. (4) Based on the U.S. Treasury constant maturity interest rate whose term was consistent with the expected life of the stock options. (5) Expected dividend yield was estimated based on anticipated dividend payouts. No stock options were exercised during fiscal 2020 and 2018. The total intrinsic value for stock options exercised during fiscal 2019 was $0.1 million. Restricted Stock Restricted stock awards are issued and measured at fair market value on the date of grant and generally become vested in five to seven equal annual installments beginning one Changes in the Company’s restricted stock awards for the fiscal year ended February 27, 2021 were as follows: (Shares in thousands) Number of Restricted Shares Weighted Average Grant-Date Fair Unvested restricted stock awards, beginning of period 2,445 $ 35.50 Granted 95 8.09 Vested (706) 37.49 Forfeited (899) 32.25 Unvested restricted stock awards, end of period 935 $ 34.34 Restricted Stock Units ("RSUs") RSUs are issued and measured at fair market value on the date of grant and generally become vested in one to three equal annual installments beginning one year from the date of grant, subject, in general, to the recipient remaining in the Company’s service on specified vesting dates. RSUs are converted into shares of common stock upon vesting. As of February 27, 2021, unrecognized compensation expense related to the unvested portion of the Company’s RSUs was $25.9 million, which is expected to be recognized over a weighted average period of 2.5 years. Changes in the Company’s RSUs for the fiscal year ended February 27, 2021 were as follows: (Shares in thousands) Number of Restricted Stock Units Weighted Average Grant-Date Fair Unvested restricted stock units, beginning of period — $ — Granted 2,316 14.23 Vested (19) 23.58 Forfeited (27) 23.58 Unvested restricted stock units, end of period 2,270 $ 14.04 Performance Stock Units ("PSUs") PSUs are issued and measured at fair market value on the date of grant. Vesting of PSUs awarded to certain of the Company’s executives is dependent on the Company’s achievement of a performance-based test during a one-year period from the date of grant and during a three three The fair value of the PSUs granted in fiscal 2020 for which performance during the three-year period will be based on a relative three-year Total Shareholder Return ("TSR") goal relative to a peer group was estimated on the date of the grant using a Monte Carlo simulation that uses the assumptions noted in the following table. Fiscal Year Ended Monte Carlo Simulation Assumptions February 27, 2021 Risk Free Interest Rate 0.25 % Expected Dividend Yield — % Expected Volatility 51.47 % Expected Term 3 years Changes in the Company’s PSUs for the fiscal year ended February 27, 2021 were as follows: (Shares in thousands) Number of Performance Stock Units Weighted Average Grant-Date Fair Unvested performance stock units, beginning of period 1,414 $ 21.57 Granted 653 12.28 Vested (343) 37.50 Forfeited (249) 17.96 Unvested performance stock units, end of period 1,475 $ 14.36 Inducement Awards In fiscal 2020 and 2019, the Company granted stock-based awards to certain of the Company’s new executive officers as inducements material to their commencement of employment and entry into an employment agreement with the Company. These inducement awards were approved by the Compensation Committee of the Board of Directors of the Company and did not require shareholder approval in accordance with Nasdaq Listing Rule 5635(c)(4). RSUs granted as inducement awards are issued and measured at fair market value on the date of grant and generally become vested in one to three equal annual installments beginning one year from the date of grant, subject, in general, to the recipient remaining in the Company’s service on specified vesting dates. Changes in the RSUs granted as inducement awards for the fiscal year ended February 27, 2021 were as follows: (Shares in thousands) Number of Restricted Weighted Average Unvested restricted stock units, beginning of period 579 $ 13.65 Granted 816 6.33 Vested (446) 13.65 Forfeited — — Unvested restricted stock units, end of period 949 $ 7.36 On November 4, 2019, in connection with the appointment of the Company’s President and Chief Executive Officer, the Company granted inducement awards consisting of 578,753 RSUs, which are included in the table above, and 273,735 PSU awards. The PSUs will vest, if at all, on November 4, 2021, based on performance goals requiring the President and CEO to prepare and deliver to the Board of Directors key objectives and goals for the Company and the strategies and initiatives for the achievement of such objectives and goals, and the President and CEO's provision of updates to the Board of Directors regarding achievement of such goals and objectives, and subject, in general, to the President and CEO remaining in the Company’s service through the vesting date. During fiscal 2020, the Company granted 143,912 RSUs to Gustavo Arnal, the Company’s Chief Financial Officer and Treasurer ; 160,255 RSUs to Cindy Davis, Chief Brand Officer and President, Decorist; and 511,991 RSUs to John Hartmann, Chief Operating Officer and President, buybuyBABY, pursuant to inducement awards agreements. Other than with respect to the vesting schedule described above, these inducement awards are generally subject to substantially the same terms and conditions as awards that are made under the 2018 Plan. As of February 27, 2021, unrecognized compensation expense related to the unvested portion of the RSU and PSU inducement awards was $4.1 million and $1.3 million, respectively, which is expected to be recognized over a weighted average period of 2.0 years and 0.7 years, respectively. Consistent with the Company’s stock ownership guidelines, each inducement award recipient must hold at least fifty percent (50%) of the after-tax shares of common stock received pursuant to the inducement awards until they have satisfied the terms of such guidelines. |
Assets Held for Sale and Divest
Assets Held for Sale and Divestitures | 12 Months Ended |
Feb. 27, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets Held for Sale and Divestitures | ASSETS HELD FOR SALE AND DIVESTITURES Assets Held for Sale The Company has included businesses classified as held for sale within its continuing operations as their dispositions do not represent a strategic shift that will have a major effect on the Company’s operations and financial results. At February 29, 2020, certain assets and liabilities of Personalization Mall.com ("PMall") and One Kings Lane ("OKL") were classified as held for sale on the Company's consolidated balance sheet. PMall and OKL were sold during fiscal 2020, as further described below. Divestitures On December 14, 2020, the Company announced that it entered into a definitive agreement to sell Cost Plus World Market to Kingswood Capital Managemen t, a Los Angeles-based private equity firm. On January 15, 2021, t he Company completed the sale of Cost Plus World Market. Proceeds from the sale were approximately $63.7 million, subject to certain working capital and other adjustments. The Company recognized a loss on sale of approximately $72.0 million within loss on sale of businesses including impairment of assets held for sale in its consolidated statements of operations for the fiscal year ended February 27, 2021. The loss on sale includes a loss of $54.0 million recorded in the third quarter of fiscal 2020 to remeasure the disposal group that was classified as held for sale to the lower of carrying value or fair value less costs to sell. On October 11, 2020, the Company entered into definitive agreements to sell Christmas Tree Shops ("CTS") to Handil Holdings LLC and to sell one of the CTS distribution facilities to an institutional buyer, with a leaseback term of nine months, to provide business continuity to the Company for some of its operations currently using the facility. These transactions were completed during the third quarter of fiscal 2020, generating approximately $233.3 million in proceeds, subject to certain working capital and other adjustments, and the Company recognized a loss on sale of approximately $53.8 million, which was recorded in loss on sale of businesses including impairment of assets held for sale in its consolidated statements of operations for the fiscal year ended February 27, 2021. On October 11, 2020, the Company entered into a definitive agreement to sell Linen Holdings to The Linen Group, LLC, an affiliate of Lion Equity Partners. On October 24, 2020, the Company completed the sale of Linen Holdings for approximately $10.1 million, subject to certain working capital and other adjustments, and recognized a loss on the sale of $64.6 million, which was recorded in loss on sale of businesses including impairment of assets held for sale in its consolidated statements of operations for the fiscal year ended February 27, 2021. On February 14, 2020, the Company entered into a definitive agreement to sell PMall to 1-800-FLOWERS.COM, Inc. for $252.0 million, subject to certain working capital and other adjustments. The buyer was required to close the transaction on March 30, 2020, but failed to do so. Accordingly, the Company had filed an action to require the buyer to close the transaction. On July 20, 2020, the Company entered into a settlement agreement with respect to the litigation. Under this agreement, 1-800-FLOWERS.COM agreed to move forward with its purchase of PMall from the Company for $245.0 million, subject to certain working capital and other adjustments. The transaction closed on August 3, 2020. Net proceeds from the sale of PMall were $244.6 million , subject to certain working capital and other adjustments, and the Company recognized a gain on the sale of approximately $189.3 million , which was recorded in loss on sale of businesses including impairment of assets held for sale in its consolidated statement of operations for the fiscal year ended February 27, 2021. Upon the close of the transaction, Bed Bath & Beyond withdrew the litigation against 1-800-FLOWERS.COM and 800-FLOWERS, INC. On April 13, 2020, the Company completed the sale of OKL. Proceeds from the sale were not material. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Feb. 27, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II - Valuation and Qualifying Accounts Fiscal Years Ended February 27, 2021, February 29, 2020 and March 2, 2019 (amounts in millions) Column A Column B Column C Column C Column D Column E Description Balance at Beginning of Additions Charged to Additions Charged to Other Adjustments and/or Deductions Balance at End of Period Sales Returns and Allowance Year Ended: February 27, 2021 $ 71.6 $ 259.8 $ — $ 295.2 $ 36.2 February 29, 2020 90.5 403.1 — 422.0 71.6 March 2, 2019 41.2 488.5 95.5 (1) 534.7 90.5 (1) Due to the adoption of Financial Accounting Standards Board, Accounting Standard Update 2014-09, Revenue from Contracts with Customers (Topic 606) . |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Related Matters (Policies) | 12 Months Ended |
Feb. 27, 2021 | |
Accounting Policies [Abstract] | |
Fiscal Year | Fiscal YearThe Company’s fiscal year is comprised of the 52 or 53-week period ending on the Saturday nearest February 28th. Accordingly, fiscal 2020, 2019 and fiscal 2018 represented 52 weeks and ended on February 27, 2021, February 29, 2020 and March 2, 2019, respectively. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. The Company accounts for its investment in the joint venture under the equity method. All significant intercompany balances and transactions have been eliminated in consolidation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02 |
Use of Estimates | Use of EstimatesThe preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires the Company to establish accounting policies and to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on historical experience and on other assumptions that it believes to be relevant under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. In particular, judgment is used in areas such as inventory valuation, impairment of long-lived assets, impairment of auction rate securities, goodwill and other indefinite lived intangible assets, accruals for self-insurance, litigation, store opening, expansion, relocation and closing costs, the provision for sales returns, vendor allowances, stock-based compensation and income and certain other taxes. Actual results could differ from these estimates. |
Cash and Cash Equivalents | Cash and Cash EquivalentsThe Company considers all highly liquid instruments purchased with original maturities of three months or less to be cash equivalents. Included in cash and cash equivalents are credit and debit card receivables from banks, which typically settle within five business days, of $64.0 million and $79.7 million as of February 27, 2021 and February 29, 2020, respectively. |
Investment Securities | Investment Securities Investment securities consist primarily of auction rate securities, which are securities with interest rates that reset periodically through an auction process, and U.S. Treasury Bills, when outstanding. The U.S. Treasury Bills with original maturities of greater than three months were classified as short term held-to-maturity securities and stated at their amortized cost which approximated fair value. Auction rate securities are classified as available-for-sale and are stated at fair value, which had historically been consistent with cost or par value due to interest rates which reset periodically, typically every 7, 28 or 35 days. As a result, there generally were no cumulative gross unrealized holding gains or losses relating to these auction rate securities. However, beginning in mid-February 2008 due to market conditions, the auction process for the Company’s auction rate securities failed and continues to fail. These failed auctions result in a lack of liquidity in the securities and affect their estimated fair values at February 27, 2021 and February 29, 2020, but do not affect the underlying collateral of the securities. (See "Fair Value Measurements," Note 4 and "Investment Securities," Note 5). All income from these investments is recorded as interest income. Those investment securities which the Company has the ability and intent to hold until maturity are classified as held-to-maturity investments and are stated at amortized cost. Those investment securities which are bought and held principally for the purpose of selling them in the near term are classified as trading securities and are stated at fair market value. Premiums are amortized and discounts are accreted over the life of the security as adjustments to interest income using the effective interest method. Dividend and interest income are recognized when earned. |
Inventory Valuation | Inventory Valuation Merchandise inventories are stated at the lower of cost or market. Inventory costs are primarily calculated using the weighted average retail inventory method. Under the retail inventory method, the valuation of inventories at cost and the resulting gross margins are calculated by applying a cost-to-retail ratio to the retail values of inventories. The inputs associated with determining the cost-to-retail ratio include: merchandise purchases, net of returns to vendors, discounts and volume and incentive rebates; inbound freight expenses; duty, insurance and commissions. The retail inventory method contains certain management judgments that may affect inventory valuation. At any one time, inventories include items that have been written down to the Company’s best estimate of their realizable value. Judgment is required in estimating realizable value and factors considered are the age of merchandise, anticipated demand based on factors such as customer preferences and fashion trends, as well as anticipated markdowns to reduce the price of merchandise from its recorded retail price to a retail price at which it is expected to be sold in the future. These estimates are based on historical experience and current information about future events which are inherently uncertain. Actual realizable value could differ materially from this estimate based upon future customer demand or economic conditions, including the duration and severity of the COVID-19 pandemic. The Company estimates its reserve for shrinkage throughout the year based on historical shrinkage and any current trends, if applicable. Actual shrinkage is recorded at year end based upon the results of the Company’s physical inventory counts for locations at which counts were conducted. For locations where physical inventory counts were not conducted in the fiscal year, an estimated shrink reserve is recorded based on historical shrinkage and any current trends, if applicable. Historically, the Company’s shrinkage has not been volatile. The Company accrues for merchandise in transit once it takes legal ownership and title to the merchandise; as such, an estimate for merchandise in transit is included in the Company’s merchandise inventories. |
Property and Equipment | Property and EquipmentProperty and equipment are stated at cost and are depreciated primarily using the straight-line method over the estimated useful lives of the assets (forty years for buildings; five three |
Impairment of Long-Lived Assets and Assets Held For Sale | Impairment of Long-Lived AssetsThe Company reviews long-lived assets for impairment when events or changes in circumstances indicate the carrying value of these assets may exceed their current fair values. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the assets. Judgment is required in estimating the fair value of the assets including assumptions related to sales growth rates and market rental rates. These estimates are based on historical experience and current information about future events which are inherently uncertain. Assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. The assets and liabilities of a disposal group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet (see "Assets Held for Sale and Divestitures," Note 15). In fiscal 2020 and fiscal 2019, the Company recorded non-cash pre-tax impairment charges of $92.9 million and $75.1 million, respectively, for certain store-level assets, including leasehold improvements and operating lease assets. In fiscal 2018, the Company recorded a $23.0 million non-cash pre-tax impairment charge for certain store-level assets. These charges were recorded within goodwill and other impairments in the Company's consolidated statements of operations. In the future, if events or market conditions affect the estimated fair value to the extent that a long-lived asset is impaired, the Company will adjust the carrying value of these long-lived assets in the period in which the impairment occurs.Assets Held for SaleThe Company classifies long-lived assets or disposal groups as held for sale in the period when the following held for sale criteria are met: (i) the Company commits to a plan to sell; (ii) the long-lived asset or disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such long-lived assets or disposal groups; (iii) an active program to locate a buyer and other actions required to complete the plan to sell have been initiated; (iv) the sale is probable within one year; (v) the asset or disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and (vi) it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Long-lived assets and disposal groups classified as held for sale are measured at the lower of their carrying amount or fair value less costs to sell. |
Goodwill and Other Indefinite Lived Intangible Assets | Goodwill and Other Indefinite Lived Intangible Assets The Company reviews its intangible assets that have indefinite lives for impairment annually as of the end of the fiscal year or when events or changes in circumstances indicate the carrying value of these assets might exceed their current fair values. Impairment testing is based upon the best information available including estimates of fair value which incorporate assumptions marketplace participants would use in making their estimates of fair value. Significant assumptions and estimates are required, including, but not limited to, projecting future cash flows, determining appropriate discount rates and terminal growth rates, and other assumptions, to estimate the fair value of goodwill and indefinite lived intangible assets. Although the Company believes the assumptions and estimates made are reasonable and appropriate, different assumptions and estimates could materially impact its reported financial results. As of June 1, 2019, the Company completed a quantitative impairment analysis of goodwill related to its reporting units by comparing the fair value of a reporting unit with its carrying amount. The Company performed a discounted cash flow analysis and market multiple analysis for each reporting unit. Based upon the analysis performed, the Company recognized non-cash pre-tax goodwill impairment charges of $391.1 million for the North American Retail reporting unit, and as of June 1, 2019, the Company did not have any goodwill recorded on its consolidated balance sheet. In fiscal 2018, the Company recognized non-cash pre-tax goodwill impairment charges of $285.1 million and $40.1 million for the North American Retail and Institutional Sales reporting units, respectively. Cumulatively, the Company has recognized non-cash pre-tax goodwill impairment charges of $676.2 million and $40.1 million for the North American Retail and Institutional Sales reporting units, respectively. The non-cash pre-tax impairment charges were primarily the result of a sustained decline in the Company's market capitalization. As of February 27, 2021, the Company did not have any goodwill recorded on its consolidated balance sheet. Other indefinite-lived intangible assets were recorded as a result of acquisitions and primarily consist of tradenames. The Company values its tradenames using a relief-from-royalty approach, which assumes the value of the tradename is the discounted cash flows of the amount that would be paid by a hypothetical market participant had they not owned the tradename and instead licensed the tradename from another company. For the fiscal years ended February 27, 2021, February 29, 2020 and March 2, 2019, the Company completed a quantitative impairment analysis for certain other indefinite lived intangible assets, by comparing the fair value of the tradenames to their carrying value and recognized non-cash pre-tax tradename impairment charges of $35.1 million, $41.8 million and $161.7 million, respectively, within goodwill and other impairments in the consolidated statement of operations. As of February 27, 2021, for the remaining other indefinite lived intangible assets, the Company assessed qualitative factors in order to determine whether any events and circumstances existed which indicated that it was more likely than not that the fair value of these other indefinite lived assets did not exceed their carrying values and concluded no such events or circumstances existed which would require an impairment test be performed. In the future, if events or market conditions affect the estimated fair value to the extent that an asset is impaired, the Company will adjust the carrying value of these assets in the period in which the impairment occurs. |
Self-Insurance | Self-InsuranceThe Company utilizes a combination of insurance and self-insurance for a number of risks including workers’ compensation, general liability, cyber liability, property liability, automobile liability and employee related health care benefits (a portion of which is paid by its employees). Liabilities associated with the risks that the Company retains are not discounted and are estimated by considering historical claims experience, demographic factors, severity factors and other actuarial assumptions. Although the Company’s claims experience has not displayed substantial volatility in the past, actual experience could materially vary from its historical experience in the future. Factors that affect these estimates include but are not limited to: inflation, the number and severity of claims and regulatory changes. In the future, if the Company concludes an adjustment to self-insurance accruals is required, the liability will be adjusted accordingly.Beginning in the fourth quarter of fiscal 2020, the Company began insuring portions of its workers' compensation and medical insurance through a wholly owned captive insurance subsidiary (the "Captive") to enhance its risk financing strategies. The Captive is subject to regulations in Vermont, including those relating to its levels of liquidity and other requirements. |
Shareholders' Equity | Shareholders’ Equity The Company has authorization to make repurchases of its common shares from time to time in the open market or through other parameters approved by the Board of Directors pursuant to existing rules and regulations. Between December 2004 and December 2020, the Company’s Board of Directors authorized, through several share repurchase programs, the repurchase of $12.775 billion of its shares of common stock. Since 2004 through the end of fiscal 2020, the Company has repurchased approximately $11.0 billion of its common stock through share repurchase programs. The Company also acquires shares of its common stock to cover employee related taxes withheld on vested restricted stock, restricted stock units and performance stock unit awards. Subsequent to the end of fiscal 2020, the Company's Board of Directors expanded the existing share repurchase authorization by an additional $175 million, which increased the total share repurchase authorization to $12.950 billion. In October 2020, the Company entered into an accelerated share repurchase agreement ("ASR Agreement") with JPMorgan Chase Bank, National Association ("JP Morgan") to repurchase $225.0 million of the Company's common stock. Pursuant to the ASR Agreement, the Company paid $225.0 million to JP Morgan and received an initial delivery of 4.5 million shares. In the fourth quarter of fiscal 2020, the Company received an additional 6.3 million shares under this ASR Agreement, based on the average of the daily volume-weighted average price of common stock during the term of the ASR Agreement. These repurchases of 10.8 million total shares resulted in a $225.0 million increase in treasury stock and reduced the number of weighted average shares outstanding. In January 2021, the Company entered into a second accelerated share repurchase agreement ("ASR Agreement 2") to repurchase an aggregate of $150.0 million of the Company’s common stock, subject to market conditions. Pursuant to ASR Agreement 2, the Company paid $150.0 million to JP Morgan, and received an initial delivery of 5.0 million shares, which was accounted for as a treasury stock transaction and resulted in a $102.5 million increase in treasury stock and also reduced the weighted average shares outstanding. The Company also recorded a $47.6 million decrease in additional paid in capital upon the inception of ASR Agreement 2. Subsequent to the end of fiscal 2020, final settlement under ASR Agreement 2 occurred and the Company received an additional 0.2 million shares. In addition, during fiscal 2020, the Company repurchased approximately 0.6 million shares of its common stock to cover employee related taxes withheld on vested restricted stock, restricted stock units and performance stock unit awards, at a total cost of approximately $5.1 million. During fiscal 2019, the Company repurchased approximately 6.8 million shares of its common stock at a total cost of approximately $99.7 million. During fiscal 2018 the Company repurchased approximately 9.1 million shares of its common stock at a total cost of approximately $148.1 million. The Company has approximately $1.7 billion remaining of authorized share repurchases as of February 27, 2021. The Company’s share repurchase program could change, and any future share repurchases will be subject to the determination of the Board of Directors, based on an evaluation of the Company’s earnings, financial condition and requirements, business conditions and other factors, including the restrictions on share repurchases under the Credit Agreement (see “Long Term Debt,” Note 7). During fiscal 2016, the Company’s Board of Directors authorized a quarterly dividend program. During fiscal 2020, 2019 and 2018, total cash dividends of $23.1 million, $85.5 million and $86.3 million were paid, respectively. In March 2020, the Company suspended its future quarterly declarations of cash dividends as a result of the COVID-19 pandemic. Any future quarterly cash dividend payments on its common stock will be subject to the determination by the Board of Directors, based on an evaluation of the Company’s earnings, financial condition and requirements, business conditions and other factors, including the restrictions on the payment of dividends contained in the Credit Agreement (See "Long Term Debt," Note 7). Cash dividends, if any, are accrued as a liability on the Company’s consolidated balance sheets and recorded as a decrease to retained earnings when declared. |
Fair Value of Financial Instruments | Fair Value of Financial InstrumentsThe Company’s financial instruments include cash and cash equivalents, investment securities, accounts payable, long term debt and certain other liabilities. The Company’s investment securities consist primarily of U.S. Treasury securities, which are stated at amortized cost, and auction rate securities consisting of preferred shares of closed end municipal bond funds, which are stated at their approximate fair value. The book value of the financial instruments, excluding the Company’s long term debt, is representative of their fair values (See "Fair Value Measurements," Note 4). Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., "the exit price") in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various valuation approaches, including quoted market prices and discounted cash flows. The hierarchy for inputs used in measuring fair value maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from independent sources. Unobservable inputs are inputs that reflect a company’s judgment concerning the assumptions that market participants would use in pricing the asset or liability developed based on the best information available under the circumstances. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an asset or liability must be classified in its entirety based on the lowest level of input that is significant to the measurement of fair value. The fair value hierarchy is broken down into three levels based on the reliability of inputs as follows: • Level 1 - Valuations based on quoted prices in active markets for identical instruments that the Company is able to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. • Level 2 - Valuations based on quoted prices in active markets for instruments that are similar, or quoted prices in markets that are not active for identical or similar instruments, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. • Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. |
Leases | Leases The Company determines if an arrangement is a lease or contains a lease at the inception of the contract. The Company’s leases generally contain fixed and variable components. Variable components are primarily contingent rents based upon store sales exceeding stipulated amounts. Lease agreements may also include non-lease components, such as certain taxes, insurance and common area maintenance, which the Company combines with the lease component to account for both as a single lease component. Lease liabilities, which represent the Company’s obligation to make lease payments arising from the lease, and corresponding right-of-use assets, which represent the Company’s right to use an underlying asset for the lease term, are recognized at the commencement date of the lease, which is typically the date the Company obtains possession of the leased premises, based on the present value of fixed future payments over the lease term. The Company utilizes the lease term for which it is reasonably certain to use the underlying asset, including consideration of options to extend or terminate the lease. Incentives received from landlords are recorded as a reduction to the lease right-of-use assets. The Company does not recognize lease right-of-use assets and corresponding lease liabilities for leases with initial terms of 12 months or less. The Company calculates the present value of future payments using the discount rate implicit in the lease, if available, or its incremental borrowing rate. The incremental borrowing rate is the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. The Company determined discount rates based on the rates of its unsecured borrowings, which are then adjusted for the appropriate lease term and effects of full collateralization. In determining the Company's operating lease assets and operating lease liabilities, the Company applied these incremental borrowing rates to the minimum lease payments within each lease agreement. For operating leases, lease expense relating to fixed payments is recognized on a straight-line basis over the lease term and lease expense relating to variable payments is expensed as incurred. For finance leases, the amortization of the asset is recognized over the shorter of the lease term or useful life of the underlying asset. |
Revenue Recognition | Revenue Recognition Sales are recognized upon purchase by customers at the Company’s retail stores or upon delivery for products purchased from its websites. The value of point-of-sale coupons and point-of-sale rebates that result in a reduction of the price paid by the customer are recorded as a reduction of sales. Shipping and handling fees that are billed to a customer in a sale transaction are recorded in sales. Taxes, such as sales tax, use tax and value added tax, are not included in sales. Revenues from gift cards, gift certificates and merchandise credits are recognized when redeemed. Gift cards have no provisions for reduction in the value of unused card balances over defined time periods and have no expiration dates. In fiscal 2020 and fiscal 2019, the Company recognized net sales for gift card and merchandise credit redemptions of approximately $98.0 million and $121.9 million, which were included in merchandise credit and gift card liabilities on the consolidated balance sheet as of February 27, 2021 and February 29, 2020, respectively. Sales returns are provided for in the period that the related sales are recorded based on historical experience. Although the estimate for sales returns has not varied materially from historical provisions, actual experience could vary from historical experience in the future if the level of sales return activity changes materially. In the future, if the Company concludes that an adjustment is required due to material changes in the returns activity, the liability for estimated returns and the corresponding right of return asset will be adjusted accordingly. As of February 27, 2021 and February 29, 2020, the liability for estimated returns of $36.2 million and $71.6 million is included in accrued expenses and other current liabilities and the corresponding right of return asset for merchandise of $23.4 million and $42.5 million, respectively, is included in prepaid expenses and other current assets, respectively. The Company sells a wide assortment of domestics merchandise and home furnishings. Domestics merchandise includes categories such as bed linens and related items, bath items and kitchen textiles. Home furnishings include categories such as kitchen and tabletop items, fine tabletop, basic housewares, general home furnishings (including furniture and wall décor), consumables and certain juvenile products. Sales of domestics merchandise and home furnishings accounted for approximately 34.7% and 65.3% of net sales, respectively, for fiscal 2020, 35.2% and 64.8% of net sales, respectively, for fiscal 2019 and 35.4% and 64.6% of net sales, respectively, for fiscal 2018. S. Cost of Sales Cost of sales includes the cost of merchandise, buying costs and costs of the Company’s distribution network including inbound freight charges, distribution facility costs, receiving costs, internal transfer costs and shipping and handling costs. |
Store Opening, Expansion, Relocation and Closing Costs | Store Opening, Expansion, Relocation and Closing CostsStore opening, expansion, relocation and closing costs, including markdowns, asset residual values and projected occupancy costs, are charged to earnings as incurred. |
Advertising Costs | Advertising CostsAdvertising expenses related to direct response advertising are expensed on the first day of the direct response advertising event. All other advertising expenses associated with store advertising are charged to earnings as incurred. |
Stock-Based Compensation | Stock-Based CompensationThe Company measures all employee stock-based compensation awards using a fair value method and records such expense, net of estimated forfeitures, in its consolidated financial statements. The Company’s stock-based compensation relates to restricted stock awards, stock options, restricted stock units and performance stock units. The Company’s restricted stock awards are considered nonvested share awards. |
Income Taxes | Income Taxes The Company files a consolidated federal income tax return. Income tax returns are also filed with each taxable jurisdiction in which the Company conducts business. The Company accounts for its income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period that includes the enactment date. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act, (the "Tax Act"). The Tax Act included a mandatory one-time tax on accumulated earnings of foreign subsidiaries, and as a result, all previously unremitted earnings for which no U.S. deferred tax liability had been previously accrued has now been subject to U.S. tax. Notwithstanding the U.S. taxation of these amounts, the Company intends to continue to reinvest the unremitted earnings of its Canadian subsidiary. Accordingly, no additional provision has been made for U.S. or additional non-U.S. taxes with respect to these earnings, except for the transition tax resulting from the Tax Act. In the event of repatriation to the U.S., it is expected that such earnings would be subject to non-U.S. withholding taxes offset, in whole or in part, by U.S. foreign tax credits. The Company recognizes the tax benefit from an uncertain tax position only if it is at least more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon settlement with the taxing authorities. Judgment is required in determining the provision for income taxes and related accruals, deferred tax assets and liabilities. In the ordinary course of business, there are transactions and calculations where the ultimate tax outcome is uncertain. Additionally, the Company’s tax returns are subject to audit by various tax authorities. Although the Company believes that its estimates are reasonable, actual results could differ from these estimates. |
Earnings per Share | Earnings per ShareThe Company presents earnings per share on a basic and diluted basis. Basic earnings per share is computed by dividing net earnings by the weighted average number of shares outstanding. Diluted earnings per share is computed by dividing net earnings by the weighted average number of shares outstanding, including the dilutive effect of stock-based awards as calculated under the treasury stock method. |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Feb. 27, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | The Company’s investment securities as of February 27, 2021 and February 29, 2020 are as follows: (in millions) February 27, 2021 February 29, 2020 Available-for-sale securities: Long term $ 19.4 $ 20.3 Held-to-maturity securities: Short term — 385.6 Total investment securities $ 19.4 $ 405.9 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Feb. 27, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consist of the following: (in thousands) February 27, 2021 February 29, 2020 Land and buildings $ 24,840 $ 261,743 Furniture, fixtures and equipment 502,869 718,159 Leasehold improvements 721,039 1,082,765 Computer equipment and software 1,355,758 1,376,931 Total 2,604,506 3,439,598 Less: Accumulated depreciation (1,686,088) (2,008,994) Property and equipment, net $ 918,418 $ 1,430,604 |
Provision for Income Taxes (Tab
Provision for Income Taxes (Tables) | 12 Months Ended |
Feb. 27, 2021 | |
Income Tax Disclosure [Abstract] | |
Components of the Provision for Income Taxes | The components of the (benefit) provision for income taxes are as follows: FISCAL YEAR ENDED (in thousands) February 27, 2021 February 29, 2020 March 2, 2019 Current: Federal $ (336,506) $ 2,455 $ 61,721 State and local 1,211 (7,973) 22,995 (335,295) (5,518) 84,716 Deferred: Federal 150,861 (124,578) (83,576) State and local (1,555) (20,941) (20,525) 149,306 (145,519) (104,101) $ (185,989) $ (151,037) $ (19,385) |
Schedule of Deferred Tax Assets and Liabilities | The significant components of the Company’s deferred tax assets and liabilities consist of the following: (in thousands) February 27, 2021 February 29, 2020 Deferred tax assets: Inventories $ 13,040 $ 35,665 Operating lease liabilities 484,290 601,378 Insurance 9,086 20,208 Stock-based compensation 1,014 5,115 Merchandise credits and gift card liabilities 52,584 47,742 Accrued expenses 31,914 51,334 Obligations on distribution facilities — 26,126 Intangibles 1,008 — Goodwill 1,596 44,332 Carryforwards and other tax credits 86,914 118,478 Other 34,104 29,539 Valuation allowance: (26,011) — Deferred tax liabilities: Depreciation (105,649) (110,864) Intangibles — (10,251) Prepaid expenses (26,356) (2,364) Operating lease assets (409,535) (555,642) Other (17,977) (24,268) $ 130,022 $ 276,528 |
Summary of Gross Unrecognized Tax Benefits from Uncertain Tax Positions Activity | The following table summarizes the activity related to the gross unrecognized tax benefits from uncertain tax positions: (in thousands) February 27, 2021 February 29, 2020 Balance at beginning of year $ 51,781 $ 61,937 Increase related to current year positions 69,106 5,009 Increase related to prior year positions — 3,857 Decrease related to prior year positions (2,797) (15,162) Settlements (4,981) (203) Lapse of statute of limitations (7,360) (3,657) Balance at end of year $ 105,749 $ 51,781 |
Schedule of Effective Income Tax Rate Reconciliation | The following table summarizes the reconciliation between the effective income tax rate and the federal statutory rate: FISCAL YEAR ENDED February 27, 2021 February 29, 2020 March 2, 2019 Federal statutory rate 21.00 % 21.00 % 21.00 % State income tax rate, net of federal impact 3.94 4.28 (1.38) Uncertain tax positions 1.63 1.33 7.24 Impact of the Tax Act — — 2.70 Goodwill non-deductible impairment charges — (4.84) (18.64) Tax deficiencies related to stock-based compensation (3.18) (3.07) (6.48) Tax credits 0.41 0.49 4.53 CARES Act 35.98 — — Valuation Allowance (7.74) — — Other 3.13 0.56 3.41 55.17 % 19.75 % 12.38 % |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Feb. 27, 2021 | |
Leases [Abstract] | |
Schedule of Lease Cost | The components of total lease cost for the fiscal year ended February 27, 2021 and February 29, 2020 were as follows: (in thousands) Statement of Operations Location Fiscal year ended February 27, 2021 Fiscal Year Ended February 29, 2020 Operating lease cost Cost of sales and SG&A $ 582,168 $ 581,061 Finance lease cost: Depreciation of property SG&A 2,500 2,591 Interest on lease liabilities Interest expense, net 7,755 8,927 Variable lease cost Cost of sales and SG&A 189,485 203,526 Sublease income SG&A (12,574) (1,112) Total lease cost $ 769,334 $ 794,993 The Company's lease terms and discount rates were as follows: February 27, 2021 February 29, 2020 Weighted-average remaining lease term (in years) Operating leases 6.8 6.6 Finance leases — 25.7 Weighted-average discount rate Operating leases 6.4 % 6.2 % Finance leases — % 9.0 % Other information with respect to the Company's leases is as follows: (in thousands) Fiscal year ended February 27, 2021 Fiscal Year Ended February 29, 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 646,981 $ 580,030 Operating cash flows from finance leases 9,295 10,401 Operating lease assets obtained in exchange for new operating lease liabilities 305,614 548,856 |
Assets and Liabilities Related to Operating and Finance Leases | As of February 27, 2021 and February 29, 2020, assets and liabilities related to the Company's operating and finance leases were as follows: (in thousands) Consolidated Balance Sheet Location February 27, 2021 February 29, 2020 Assets Operating leases Operating lease assets $ 1,587,101 $ 2,006,966 Finance leases Property and equipment, net — 69,287 Total Lease assets $ 1,587,101 $ 2,076,253 Liabilities Current: Operating leases Current operating lease liabilities $ 360,061 $ 463,005 Finance leases Accrued expenses and other current liabilities — 1,541 Noncurrent: Operating leases Operating lease liabilities 1,509,767 1,818,783 Finance leases Other liabilities — 102,412 Total lease liabilities $ 1,869,828 $ 2,385,741 |
Schedule of Lease Liabilities, Operating | As of February 27, 2021, the Company's lease liabilities mature as follows: (in thousands) Operating Leases Fiscal Year: 2021 $ 462,703 2022 409,076 2023 338,706 2024 282,472 2025 219,807 Thereafter 617,804 Total lease payments $ 2,330,568 Less imputed interest $ (460,740) Present value of lease liabilities $ 1,869,828 |
Schedule of Lease Liabilities, Finance | As of February 27, 2021, the Company's lease liabilities mature as follows: (in thousands) Operating Leases Fiscal Year: 2021 $ 462,703 2022 409,076 2023 338,706 2024 282,472 2025 219,807 Thereafter 617,804 Total lease payments $ 2,330,568 Less imputed interest $ (460,740) Present value of lease liabilities $ 1,869,828 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Feb. 27, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Assumptions Used To Estimate the Black-Scholes Fair Value of Stock Options Granted | weighted average fair value for the stock options granted in fiscal 2019 and 2018 were $4.18 and $4.31, respectively. Fiscal Year Ended Black-Scholes Valuation Assumptions (1) February 29, 2020 March 2, 2019 Weighted Average Expected Life (in years) (2) 7.6 6.7 Weighted Average Expected Volatility (3) 39.41 % 34.96 % Weighted Average Risk Free Interest Rates (4) 2.39 % 2.92 % Expected Dividend Yield (5) 4.34 % 3.80 % ________________________ (1) Forfeitures were estimated based on historical experience. (2) The expected life of stock options was estimated based on historical experience. (3) Expected volatility was based on the average of historical and implied volatility. The historical volatility was determined by observing actual prices of the Company’s stock over a period commensurate with the expected life of the awards. The implied volatility represented the implied volatility of the Company’s call options, which were actively traded on multiple exchanges, had remaining maturities in excess of twelve months, had market prices close to the exercise prices of the employee stock options and were measured on the stock option grant date. (4) Based on the U.S. Treasury constant maturity interest rate whose term was consistent with the expected life of the stock options. (5) Expected dividend yield was estimated based on anticipated dividend payouts. |
Changes in the Company's Restricted Stock | Changes in the Company’s restricted stock awards for the fiscal year ended February 27, 2021 were as follows: (Shares in thousands) Number of Restricted Shares Weighted Average Grant-Date Fair Unvested restricted stock awards, beginning of period 2,445 $ 35.50 Granted 95 8.09 Vested (706) 37.49 Forfeited (899) 32.25 Unvested restricted stock awards, end of period 935 $ 34.34 Changes in the Company’s RSUs for the fiscal year ended February 27, 2021 were as follows: (Shares in thousands) Number of Restricted Stock Units Weighted Average Grant-Date Fair Unvested restricted stock units, beginning of period — $ — Granted 2,316 14.23 Vested (19) 23.58 Forfeited (27) 23.58 Unvested restricted stock units, end of period 2,270 $ 14.04 (Shares in thousands) Number of Restricted Weighted Average Unvested restricted stock units, beginning of period 579 $ 13.65 Granted 816 6.33 Vested (446) 13.65 Forfeited — — Unvested restricted stock units, end of period 949 $ 7.36 |
Assumptions Used To Estimate the Black-Scholes Fair Value of Performance Stock Units Granted | The fair value of the PSUs granted in fiscal 2020 for which performance during the three-year period will be based on a relative three-year Total Shareholder Return ("TSR") goal relative to a peer group was estimated on the date of the grant using a Monte Carlo simulation that uses the assumptions noted in the following table. Fiscal Year Ended Monte Carlo Simulation Assumptions February 27, 2021 Risk Free Interest Rate 0.25 % Expected Dividend Yield — % Expected Volatility 51.47 % Expected Term 3 years |
Changes in the Company's Performance Stock Units | Changes in the Company’s PSUs for the fiscal year ended February 27, 2021 were as follows: (Shares in thousands) Number of Performance Stock Units Weighted Average Grant-Date Fair Unvested performance stock units, beginning of period 1,414 $ 21.57 Granted 653 12.28 Vested (343) 37.50 Forfeited (249) 17.96 Unvested performance stock units, end of period 1,475 $ 14.36 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies and Related Matters (Details) shares in Millions | Jun. 01, 2019USD ($) | Jan. 31, 2021USD ($) | Apr. 22, 2021USD ($)shares | Feb. 27, 2021USD ($)shares | Nov. 28, 2020shares | Feb. 27, 2021USD ($)shares | Feb. 26, 2022segment | Feb. 27, 2021USD ($)daysegmentshares | Feb. 29, 2020USD ($)segmentshares | Mar. 02, 2019USD ($)segmentshares | Mar. 03, 2018USD ($) | Feb. 27, 2021USD ($) | Feb. 27, 2021USD ($) | Dec. 31, 2020USD ($) | Oct. 31, 2020USD ($) | Mar. 03, 2019USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Number of operating segments | segment | 2 | 2 | 2 | |||||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | us-gaap:AccountingStandardsUpdate201409Member | ||||||||||||||
Stockholders' equity | $ 1,276,936,000 | $ 1,276,936,000 | $ 1,276,936,000 | $ 1,764,935,000 | $ 2,560,331,000 | $ 2,888,628,000 | $ 1,276,936,000 | $ 1,276,936,000 | ||||||||
Number of business days | day | 5 | |||||||||||||||
Credit and debit card receivables, at carrying value | 64,000,000 | 64,000,000 | $ 64,000,000 | 79,700,000 | 64,000,000 | 64,000,000 | ||||||||||
Auction rate securities interval period, one | 7 days | |||||||||||||||
Auction rate securities interval period, two | 28 days | |||||||||||||||
Auction rate securities interval period, three | 35 days | |||||||||||||||
Cost of repairs and maintenance | $ 117,700,000 | 133,900,000 | 132,400,000 | |||||||||||||
Non-cash pre-tax impairment charge | 92,900,000 | 75,100,000 | 23,000,000 | |||||||||||||
Goodwill | $ 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
Indefinite-lived intangible assets | 22,000,000 | 22,000,000 | 22,000,000 | 91,200,000 | 22,000,000 | 22,000,000 | ||||||||||
Cash and cash equivalents | 1,352,984,000 | 1,352,984,000 | 1,352,984,000 | 1,000,340,000 | 1,352,984,000 | 1,352,984,000 | ||||||||||
Stock repurchase program, authorized amount | $ 12,775,000,000 | |||||||||||||||
Payments for repurchase of common stock | $ 332,529,000 | $ 99,710,000 | $ 148,073,000 | 11,000,000,000 | ||||||||||||
Treasury stock acquired (in shares) | shares | 0.6 | 6.8 | 9.1 | |||||||||||||
Increase in treasury stock | $ 5,079,000 | $ 99,710,000 | $ 148,073,000 | |||||||||||||
Decrease in additional paid in capital upon the inception of ASR Agreement 2 | (375,000,000) | |||||||||||||||
Payments for repurchase of common stock | 5,100,000 | |||||||||||||||
Remaining authorized repurchase amount | 1,700,000,000 | 1,700,000,000 | 1,700,000,000 | 1,700,000,000 | 1,700,000,000 | |||||||||||
Payments of cash dividends | 23,108,000 | 85,482,000 | 86,287,000 | |||||||||||||
Fair value of long-term debt | 1,118,000,000 | 1,118,000,000 | 1,118,000,000 | 1,126,000,000 | 1,118,000,000 | 1,118,000,000 | ||||||||||
Total long-term debt | 1,195,000,000 | 1,195,000,000 | 1,195,000,000 | 1,195,000,000 | 1,195,000,000 | |||||||||||
Prepaid expenses and other current assets | 595,152,000 | 595,152,000 | 595,152,000 | 248,342,000 | 595,152,000 | 595,152,000 | ||||||||||
Income taxes receivable | 318,100,000 | 318,100,000 | 318,100,000 | 0 | 318,100,000 | 318,100,000 | ||||||||||
Net sales for gift card and merchandise credit redemptions | 98,000,000 | 121,900,000 | ||||||||||||||
Liability for estimated returns | 36,200,000 | 36,200,000 | 36,200,000 | 71,600,000 | 36,200,000 | 36,200,000 | ||||||||||
Right of return asset for merchandise, percentage | 23,400,000 | 23,400,000 | 23,400,000 | 42,500,000 | 23,400,000 | 23,400,000 | ||||||||||
Cooperative advertising amount | 28,900,000 | 30,900,000 | 37,000,000 | |||||||||||||
Advertising expense | $ 347,800,000 | $ 478,500,000 | $ 463,200,000 | |||||||||||||
Shares excluded from computation of earnings per share (in shares) | shares | 2.4 | 5.4 | 8.2 | |||||||||||||
Operating lease assets | 1,587,101,000 | 1,587,101,000 | $ 1,587,101,000 | $ 2,006,966,000 | 1,587,101,000 | 1,587,101,000 | ||||||||||
Operating lease liabilities | $ 1,869,828,000 | 1,869,828,000 | $ 1,869,828,000 | 1,869,828,000 | 1,869,828,000 | |||||||||||
Forecast [Member] | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Number of operating segments | segment | 1 | |||||||||||||||
Domestic Merchandise | Net Sales | Product Concentration Risk | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Percentage of net sales | 34.70% | 35.20% | 35.40% | |||||||||||||
Home Furnishings | Net Sales | Product Concentration Risk | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Percentage of net sales | 65.30% | 64.80% | 64.60% | |||||||||||||
Accelerated Share Repurchase Program | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Stock repurchase program, authorized amount | $ 225,000,000 | |||||||||||||||
Payments for repurchase of common stock | $ 225,000,000 | |||||||||||||||
Treasury stock acquired (in shares) | shares | 6.3 | 4.5 | 10.8 | |||||||||||||
Increase in treasury stock | $ 225,000,000 | |||||||||||||||
Additional Accelerated Share Repurchase Program | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Stock repurchase program, authorized amount | $ 150,000,000 | |||||||||||||||
Payments for repurchase of common stock | $ 150,000,000 | |||||||||||||||
Treasury stock acquired (in shares) | shares | 5 | |||||||||||||||
Increase in treasury stock | $ 102,500,000 | |||||||||||||||
The Captive | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Cash and cash equivalents | 43,100,000 | 43,100,000 | $ 43,100,000 | 43,100,000 | 43,100,000 | |||||||||||
North American Retail | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Goodwill impairment charge | $ 391,100,000 | $ 285,100,000 | 676,200,000 | |||||||||||||
North American Retail | Trade Names | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Intangible asset impairment charge | $ 35,100,000 | $ 41,800,000 | 161,700,000 | |||||||||||||
Institutional Sales | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Goodwill impairment charge | 40,100,000 | 40,100,000 | ||||||||||||||
Minimum | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Operating lease liabilities | 2,200,000,000 | |||||||||||||||
Maximum | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Operating lease assets | $ 2,000,000,000 | |||||||||||||||
Building | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Estimated useful life | 40 years | |||||||||||||||
Furniture, Fixtures and Equipment | Minimum | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Estimated useful life | 5 years | |||||||||||||||
Furniture, Fixtures and Equipment | Maximum | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Estimated useful life | 20 years | |||||||||||||||
Computer Equipment and Software | Minimum | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Estimated useful life | 3 years | |||||||||||||||
Computer Equipment and Software | Maximum | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Estimated useful life | 10 years | |||||||||||||||
Subsequent Event | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Stock repurchase program, authorized amount | $ 12,950,000,000 | |||||||||||||||
Increase in authorized amount | $ 175,000,000 | |||||||||||||||
Subsequent Event | Additional Accelerated Share Repurchase Program | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Treasury stock acquired (in shares) | shares | 0.2 | |||||||||||||||
Effect of Adoption | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Stockholders' equity | (40,700,000) | (4,221,000) | ||||||||||||||
Retained Earnings | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Stockholders' equity | 10,225,253,000 | 10,225,253,000 | $ 10,225,253,000 | 10,374,826,000 | 11,112,887,000 | 11,343,503,000 | 10,225,253,000 | 10,225,253,000 | ||||||||
Retained Earnings | Effect of Adoption | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Stockholders' equity | (40,700,000) | (4,221,000) | $ (40,700,000) | |||||||||||||
Additional Paid- in Capital | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Stockholders' equity | $ 2,152,135,000 | $ 2,152,135,000 | 2,152,135,000 | $ 2,167,337,000 | $ 2,118,673,000 | $ 2,057,975,000 | $ 2,152,135,000 | $ 2,152,135,000 | ||||||||
Decrease in additional paid in capital upon the inception of ASR Agreement 2 | (47,550,000) | |||||||||||||||
Additional Paid- in Capital | Additional Accelerated Share Repurchase Program | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Decrease in additional paid in capital upon the inception of ASR Agreement 2 | $ (47,600,000) |
Impact of COVID-19 Pandemic (De
Impact of COVID-19 Pandemic (Details) $ in Millions | 12 Months Ended |
Feb. 27, 2021USD ($) | |
Income Taxes [Line Items] | |
Total payments withheld and/or delayed or deferred | $ 9.6 |
Reduced rent expense related to rent abatement | 10.3 |
Deferred employer payroll taxes | 3.1 |
Offset to selling, general and administrative expenses | 33.3 |
2019 | |
Income Taxes [Line Items] | |
Additional benefit from net operating losses | 41 |
2020 | |
Income Taxes [Line Items] | |
Additional benefit from net operating losses | $ 111 |
Restructuring and Transformat_2
Restructuring and Transformation Activities (Details) $ in Millions | Jul. 06, 2020store | Feb. 27, 2021USD ($) | Aug. 29, 2020USD ($)position | Feb. 27, 2021USD ($)store | Feb. 27, 2021USD ($) | Feb. 29, 2020USD ($) |
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | $ 36.8 | |||||
Fiscal 2020 Restructuring Charges | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | $ 149.3 | |||||
Number of stores expected to close | store | 200 | |||||
Number of stores closed | store | 144 | |||||
Number of positions affected by workforce reduction | position | 2,800 | |||||
Fiscal 2020 Restructuring Charges | Network Optimization Program | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | $ 21 | |||||
Severance costs | 5.3 | |||||
Lease-related costs | 39.2 | |||||
Fiscal 2020 Restructuring Charges | Employee Severance | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Severance costs | $ 23.1 | |||||
Fiscal 2020 Restructuring Charges | Other Restructuring | Cost of Sales | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Transformation initiative costs | 26.1 | |||||
Fiscal 2020 Restructuring Charges | Other Restructuring | Restructuring Charges and Transformation Initiative Charges | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Transformation initiative costs | 34.6 | |||||
Fiscal 2019 Restructuring Charges | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 102.5 | |||||
Restructuring Reserve | 17.7 | $ 17.7 | $ 17.7 | $ 73.4 | ||
Payments for restructuring charges | $ 54.6 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Feb. 27, 2021 | Feb. 29, 2020 |
Fair Value Disclosures [Abstract] | ||
Fair value of long-term debt | $ 1,118 | $ 1,126 |
Long-term debt, carrying value | $ 1,195 | $ 1,495 |
Investment Securities - Summary
Investment Securities - Summary of Investment Securities (Details) - USD ($) $ in Millions | Feb. 27, 2021 | Feb. 29, 2020 |
Available-for-sale securities: | ||
Long term | $ 19.4 | $ 20.3 |
Held-to-maturity securities: | ||
Short term | 0 | 385.6 |
Total investment securities | $ 19.4 | $ 405.9 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) - USD ($) $ in Thousands | Feb. 27, 2021 | Feb. 29, 2020 |
Marketable Securities [Line Items] | ||
Short term held-to-maturity securities | $ 0 | $ 385,600 |
Auction Rate Securities | ||
Marketable Securities [Line Items] | ||
Long term available-for-sale investment securities | 20,300 | 20,300 |
Valuation adjustments | $ 830 | $ 5 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | Feb. 27, 2021 | Feb. 29, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,604,506 | $ 3,439,598 |
Less: Accumulated depreciation | (1,686,088) | (2,008,994) |
Property and equipment, net | 918,418 | 1,430,604 |
Land and buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 24,840 | 261,743 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 502,869 | 718,159 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 721,039 | 1,082,765 |
Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,355,758 | $ 1,376,931 |
Long Term Debt - Senior Unsecur
Long Term Debt - Senior Unsecured Notes (Details) - USD ($) | 12 Months Ended | |||||
Feb. 27, 2021 | Feb. 29, 2020 | Mar. 02, 2019 | Aug. 28, 2020 | Aug. 10, 2020 | Jul. 17, 2014 | |
Debt Instrument [Line Items] | ||||||
Gain on extinguishment of debt | $ 77,038,000 | $ 0 | $ 412,000 | |||
Senior Unsecured Notes | ||||||
Debt Instrument [Line Items] | ||||||
Purchased and retired senior unsecured notes | $ 4,600,000 | |||||
Senior Unsecured Notes | The 2024 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 300,000,000 | |||||
Debt interest rate | 3.749% | |||||
Senior Unsecured Notes | The 2034 and 2044 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt repurchase (up to) | $ 300,000,000 | |||||
Total consideration paid for Notes | 220,900,000 | |||||
Early tender premium | $ 50 | |||||
Senior Unsecured Notes | The 2034 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 300,000,000 | |||||
Debt interest rate | 4.915% | |||||
Repurchased principal amount | $ 75,000,000 | |||||
Senior Unsecured Notes | The 2044 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 900,000,000 | |||||
Debt interest rate | 5.165% | 5.165% | ||||
Repurchased principal amount | $ 225,000,000 | |||||
Other Assets | Senior Unsecured Notes | ||||||
Debt Instrument [Line Items] | ||||||
Unamortized deferred financing costs | $ 5,000,000 | $ 7,000,000 |
Long Term Debt - Asset-Based Cr
Long Term Debt - Asset-Based Credit Agreement (Details) | 12 Months Ended | |||
Feb. 27, 2021USD ($)lineOfCredit | Feb. 29, 2020USD ($) | Mar. 02, 2019USD ($) | Jun. 19, 2020USD ($) | |
Debt Instrument [Line Items] | ||||
Number of uncommitted lines of credit | lineOfCredit | 2 | |||
Senior Unsecured Notes and Revolver | ||||
Debt Instrument [Line Items] | ||||
Interest expense | $ 73,600,000 | $ 73,000,000 | $ 73,000,000 | |
Revolving Credit Facility | New Revolver | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity per line | $ 250,000,000 | |||
Debt instrument term (in years) | 5 years | |||
Proceeds used to refinance borrowings | $ 236,400,000 | |||
Revolving Credit Facility | ABL Facility | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity per line | 850,000,000 | |||
Expansion feature aggregate amount (up to) | $ 375,000,000 | |||
Loans outstanding | $ 0 | |||
Outstanding letters of credit | 142,000,000 | |||
Percentage of eligible credit card receivables upon satisfaction | 90.00% | |||
Percentage of eligible inventory upon satisfaction | 90.00% | |||
Aggregate amount of unrestricted cash and cash equivalents | $ 100,000,000 | |||
Aggregate principal amount | $ 600,000,000 | |||
Revolving Credit Facility | ABL Facility | LIBOR and CDOR | ||||
Debt Instrument [Line Items] | ||||
Minimum interest rate margin | 1.00% | |||
Interest rate margin deemed | 1.00% | |||
Revolving Credit Facility | ABL Facility | LIBOR and CDOR | Minimum | ||||
Debt Instrument [Line Items] | ||||
Interest rate margin | 2.25% | |||
Revolving Credit Facility | ABL Facility | LIBOR and CDOR | Maximum | ||||
Debt Instrument [Line Items] | ||||
Interest rate margin | 2.75% | |||
Revolving Credit Facility | ABL Facility | Alternate Base Rate and Canadian Prime Rate | ||||
Debt Instrument [Line Items] | ||||
Minimum interest rate margin | 2.00% | |||
Interest rate margin deemed | 2.00% | |||
Revolving Credit Facility | ABL Facility | Alternate Base Rate and Canadian Prime Rate | Minimum | ||||
Debt Instrument [Line Items] | ||||
Interest rate margin | 1.25% | |||
Revolving Credit Facility | ABL Facility | Alternate Base Rate and Canadian Prime Rate | Maximum | ||||
Debt Instrument [Line Items] | ||||
Interest rate margin | 1.75% | |||
Uncommitted Lines of Credit | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity per line | 100,000,000 | |||
Other Assets | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Deferred financing costs | $ 6,100,000 | $ 300,000 |
Provision for Income Taxes - Co
Provision for Income Taxes - Components of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 27, 2021 | Feb. 29, 2020 | Mar. 02, 2019 | |
Current: | |||
Federal | $ (336,506) | $ 2,455 | $ 61,721 |
State and local | 1,211 | (7,973) | 22,995 |
Total Current | (335,295) | (5,518) | 84,716 |
Deferred: | |||
Federal | 150,861 | (124,578) | (83,576) |
State and local | (1,555) | (20,941) | (20,525) |
Total Deferred | 149,306 | (145,519) | (104,101) |
Total | $ (185,989) | $ (151,037) | $ (19,385) |
Provision for Income Taxes - Na
Provision for Income Taxes - Narrative (Details) $ in Millions | 12 Months Ended | |
Feb. 27, 2021USD ($)state | Feb. 29, 2020USD ($) | |
Tax Credit Carryforward [Line Items] | ||
Valuation allowance related to U.S. charitable contribution carryforward in the U.S. | $ 10.5 | |
Gross unrecognized tax benefits | 61.9 | $ 51.8 |
Accrued interest | 8.1 | 9.6 |
Interest on unrecognized tax benefits | $ 1.5 | 1.3 |
Number of states | state | 50 | |
Canada | ||
Tax Credit Carryforward [Line Items] | ||
Canadian net deferred tax asset that more likely than not will not be realized | $ 15.5 | |
Minimum | ||
Tax Credit Carryforward [Line Items] | ||
Number of years under examination | 3 years | |
Maximum | ||
Tax Credit Carryforward [Line Items] | ||
Number of years under examination | 5 years | |
Expiration of Statutes of Limitations | ||
Tax Credit Carryforward [Line Items] | ||
Adjustments to gross unrecognized tax benefits | $ 3.2 | |
Federal | IRS | ||
Tax Credit Carryforward [Line Items] | ||
Net operating loss carryforwards | 4.6 | |
State | ||
Tax Credit Carryforward [Line Items] | ||
Net operating loss carryforwards | 33.5 | |
State | California Franchise Tax Board | Enterprise Zone Credit | ||
Tax Credit Carryforward [Line Items] | ||
Net tax credit carryforward | 2.1 | |
Other Assets | ||
Tax Credit Carryforward [Line Items] | ||
Net deferred tax assets | $ 130 | $ 276.5 |
Provision for Income Taxes - De
Provision for Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Feb. 27, 2021 | Feb. 29, 2020 |
Deferred tax assets: | ||
Inventories | $ 13,040 | $ 35,665 |
Operating lease liabilities | 484,290 | 601,378 |
Insurance | 9,086 | 20,208 |
Stock-based compensation | 1,014 | 5,115 |
Merchandise credits and gift card liabilities | 52,584 | 47,742 |
Accrued expenses | 31,914 | 51,334 |
Obligations on distribution facilities | 0 | 26,126 |
Intangibles | 1,008 | 0 |
Goodwill | 1,596 | 44,332 |
Carryforwards and other tax credits | 86,914 | 118,478 |
Other | 34,104 | 29,539 |
Valuation allowance: | (26,011) | 0 |
Deferred tax liabilities: | ||
Depreciation | (105,649) | (110,864) |
Intangibles | 0 | (10,251) |
Prepaid expenses | (26,356) | (2,364) |
Operating lease assets | (409,535) | (555,642) |
Other | (17,977) | (24,268) |
Total | $ 130,022 | $ 276,528 |
Provision for Income Taxes - Un
Provision for Income Taxes - Unrecognized Tax Benefit Roll Forward (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 27, 2021 | Feb. 29, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of year | $ 51,781 | $ 61,937 |
Increase related to current year positions | 69,106 | 5,009 |
Increase related to prior year positions | 0 | 3,857 |
Decrease related to prior year positions | (2,797) | (15,162) |
Settlements | (4,981) | (203) |
Lapse of statute of limitations | (7,360) | (3,657) |
Balance at end of year | $ 105,749 | $ 51,781 |
Provision for Income Taxes - Ef
Provision for Income Taxes - Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Feb. 27, 2021 | Feb. 29, 2020 | Mar. 02, 2019 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 21.00% | 21.00% | 21.00% |
State income tax rate, net of federal impact | 3.94% | 4.28% | (1.38%) |
Uncertain tax positions | 1.63% | 1.33% | 7.24% |
Impact of the Tax Act | 0 | 0 | 0.0270 |
Goodwill non-deductible impairment charges | 0.00% | (4.84%) | (18.64%) |
Tax deficiencies related to stock-based compensation | (3.18%) | (3.07%) | (6.48%) |
Tax credits | 0.41% | 0.49% | 4.53% |
CARES Act | 35.98% | ||
Valuation Allowance | (7.74%) | 0.00% | 0.00% |
Other | 3.13% | 0.56% | 3.41% |
Total | 55.17% | 19.75% | 12.38% |
Transactions and Balances Wit_2
Transactions and Balances With Related Parties (Details) - Co-Founders - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 28, 2004 | Feb. 29, 2020 | Apr. 21, 2019 | |
Related Party Transaction [Line Items] | |||
Total amount of premiums paid | $ 5.4 | ||
Accrued Expenses and Other Current Liabilities | |||
Related Party Transaction [Line Items] | |||
Benefits payable | $ 4.2 | ||
Settlement of claims relating to continued benefits | $ 0.2 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands, ft² in Millions | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2019USD ($)ft² | Feb. 27, 2021USD ($)lease | Feb. 29, 2020USD ($) | Mar. 02, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | ||||
Renewal term | 5 years | |||
Total payments withheld and/or delayed or deferred | $ 9,600 | |||
Reduced rent expense related to rent abatement | $ 10,300 | |||
Leases not yet commenced (in number of leases) | lease | 2 | |||
Aggregate minimum rental payments for leases not yet commenced | $ 7,700 | |||
Square feet of owned real estate | ft² | 2.1 | |||
Proceeds from sale-leaseback transaction | $ 267,300 | 0 | $ 267,277 | |
Transaction costs | 5,700 | |||
Loss on sale leaseback transaction | 33,100 | 0 | $ 27,357 | $ 0 |
Financing obligation | $ 14,500 | 13,800 | ||
Accrued Expenses and Other Current Liabilities | ||||
Lessee, Lease, Description [Line Items] | ||||
Financing obligation | 700 | |||
Other Noncurrent Liabilities | ||||
Lessee, Lease, Description [Line Items] | ||||
Financing obligation | $ 13,100 | |||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease initial terms | 10 years | |||
Sublease term | 5 years | |||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease initial terms | 15 years | |||
Sublease term | 10 years |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 27, 2021 | Feb. 29, 2020 | |
Leases [Abstract] | ||
Operating lease cost | $ 582,168 | $ 581,061 |
Finance lease cost: | ||
Depreciation of property | 2,500 | 2,591 |
Interest on lease liabilities | 7,755 | 8,927 |
Variable lease cost | 189,485 | 203,526 |
Sublease income | (12,574) | (1,112) |
Total lease cost | $ 769,334 | $ 794,993 |
Leases - Schedule of Lease Asse
Leases - Schedule of Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Feb. 27, 2021 | Feb. 29, 2020 |
Assets | ||
Operating leases | $ 1,587,101 | $ 2,006,966 |
Finance leases | 0 | 69,287 |
Total Lease assets | 1,587,101 | 2,076,253 |
Current: | ||
Operating leases | 360,061 | 463,005 |
Finance leases | 0 | 1,541 |
Noncurrent: | ||
Operating leases | 1,509,767 | 1,818,783 |
Finance leases | 0 | 102,412 |
Total lease liabilities | $ 1,869,828 | $ 2,385,741 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other liabilities | Other liabilities |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property and equipment, net | Property and equipment, net |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities |
Leases - Schedule of Lease Matu
Leases - Schedule of Lease Maturities (Details) $ in Thousands | Feb. 27, 2021USD ($) |
Operating Leases | |
2021 | $ 462,703 |
2022 | 409,076 |
2023 | 338,706 |
2024 | 282,472 |
2025 | 219,807 |
Thereafter | 617,804 |
Total lease payments | 2,330,568 |
Less imputed interest | (460,740) |
Present value of lease liabilities | $ 1,869,828 |
Leases - Lease Terms and Discou
Leases - Lease Terms and Discount Rates (Details) | Feb. 27, 2021 | Feb. 29, 2020 |
Weighted-average remaining lease term | ||
Operating leases | 6 years 9 months 18 days | 6 years 7 months 6 days |
Finance leases | 0 years | 25 years 8 months 12 days |
Weighted-average discount rate | ||
Operating leases | 6.40% | 6.20% |
Finance leases | 0.00% | 9.00% |
Leases - Cash Flow Information
Leases - Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 27, 2021 | Feb. 29, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flows from operating leases | $ 646,981 | $ 580,030 |
Operating cash flows from finance leases | 9,295 | 10,401 |
Operating lease assets obtained in exchange for new operating lease liabilities | $ 305,614 | $ 548,856 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) $ in Millions | 12 Months Ended | ||
Feb. 27, 2021USD ($)plan | Feb. 29, 2020USD ($) | Mar. 02, 2019USD ($) | |
Retirement Benefits [Abstract] | |||
Number of defined contribution plans | plan | 3 | ||
Defined contribution plan match | $ 10.6 | $ 13.7 | $ 15.5 |
Defined benefit pension plan asset | 3.6 | ||
Defined benefit pension plan liability | 3.2 | ||
Other comprehensive (income) loss, after tax | 8.4 | 8.5 | |
Other comprehensive (income) loss, tax | 3 | $ 3 | |
Partial settlement of divested plan recorded within loss on sale of businesses | $ 2.1 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | May 12, 2019 | Feb. 27, 2021USD ($) | Feb. 29, 2020USD ($) | Oct. 14, 2020case | Aug. 14, 2020case | Apr. 21, 2020USD ($) |
Loss Contingencies [Line Items] | ||||||
Settlement payment | $ 1,500,000 | |||||
Amount to refine compliance program | $ 171,000 | |||||
Compliance program term | 36 months | |||||
Aggregate payroll installment payments | 3 | |||||
Payroll installment payment period | 3 years | |||||
Period after departure | 6 months | |||||
Restructuring charges | $ 36,800,000 | |||||
Vitiello v. Bed Bath & Beyond Inc., et al. and Kirkland V. Bed Bath & Beyond Inc., et al. | ||||||
Loss Contingencies [Line Items] | ||||||
Number of cases | case | 2 | |||||
Salu V. Tritton, et al., Grooms v. Tritton, et al., and Mantia v. Fleming, et al. | ||||||
Loss Contingencies [Line Items] | ||||||
Number of cases | case | 3 | |||||
Grooms v. Tritton, et al., and Mantia v. Fleming, et al. | ||||||
Loss Contingencies [Line Items] | ||||||
Number of cases | case | 2 | |||||
Co-Founders | ||||||
Loss Contingencies [Line Items] | ||||||
Supplemental pension payments per year | $ 200,000 | |||||
Percentage of base salary | 50.00% | |||||
Payment term (in years) | 10 years |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 27, 2021 | Feb. 29, 2020 | Mar. 02, 2019 | |
Supplemental Cash Flow Information [Abstract] | |||
Income taxes paid | $ 4.8 | $ 44.8 | $ 61.3 |
Interest payments | 75.5 | 81.2 | 81.4 |
Accrual for capital expenditures | 44.6 | 36.9 | 51.7 |
Dividends payable | $ 2.1 | $ 26.4 | 28.3 |
Note receivable acquired in connection with the sale of a building | $ 31.1 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) $ / shares in Units, $ in Millions | Nov. 04, 2019shares | Feb. 27, 2021USD ($)installment$ / sharesshares | Feb. 29, 2020USD ($)$ / shares | Mar. 02, 2019USD ($)$ / sharesshares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ | $ 31.6 | $ 45.7 | $ 58.5 | |
Stock-based compensation expense, after tax | $ | $ 14.1 | $ 36.7 | $ 51.3 | |
Stock-based compensation expense, after tax, per diluted share | $ / shares | $ 0.12 | $ 0.29 | $ 0.38 | |
Stock-based compensation cost capitalized | $ | $ 0.8 | $ 0.5 | ||
Options granted (in shares) | 0 | |||
Restricted Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense | $ | $ 20.4 | |||
Weighted average recognition period | 2 years 10 months 24 days | |||
Restricted Stock Units | Gustavo Arnal, Chief Financial Officer and Treasurer | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards granted (in shares) | 143,912 | |||
Restricted Stock Units | Cindy Davis, Chief Brand Officer and President, Decorist | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards granted (in shares) | 160,255 | |||
Restricted Stock Units | John Hartmann, Chief Operating Officer and President, buybuyBABY | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards granted (in shares) | 511,991 | |||
The 2012 and 2018 Plans | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period commencement | 1 year | |||
Option grant expiration period | 8 years | |||
Number of stock options forfeited (in shares) | 822,633 | |||
Options outstanding (in shares) | 0 | |||
The 2012 and 2018 Plans | Restricted Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards granted (in shares) | 95,000 | |||
The 2012 and 2018 Plans | Performance Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense | $ | $ 6.4 | |||
Weighted average recognition period | 2 years 4 months 24 days | |||
Awards granted (in shares) | 653,000 | |||
The 2012 and 2018 Plans | Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period commencement | 1 year | |||
Unrecognized compensation expense | $ | $ 25.9 | |||
Weighted average recognition period | 2 years 6 months | |||
Awards granted (in shares) | 2,316,000 | |||
The 2012 and 2018 Plans | Minimum | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of equal annual installments | installment | 3 | |||
The 2012 and 2018 Plans | Minimum | Restricted Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of equal annual installments | installment | 5 | |||
Vesting period commencement | 1 year | |||
The 2012 and 2018 Plans | Minimum | Performance Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Performance period | 1 year | |||
Target award percentage | 0.00% | |||
The 2012 and 2018 Plans | Minimum | Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of equal annual installments | installment | 1 | |||
The 2012 and 2018 Plans | Maximum | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of equal annual installments | installment | 5 | |||
The 2012 and 2018 Plans | Maximum | Restricted Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of equal annual installments | installment | 7 | |||
Vesting period commencement | 3 years | |||
The 2012 and 2018 Plans | Maximum | Performance Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
Target award percentage | 150.00% | |||
The 2012 and 2018 Plans | Maximum | Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of equal annual installments | installment | 3 | |||
The 2018 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common shares authorized for issuance (in shares) | 4,600,000 | |||
The 2012 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common shares authorized for issuance (in shares) | 43,200,000 | |||
Weighted average fair value for stock options granted (in dollars per share) | $ / shares | $ 4.18 | $ 4.31 | ||
Intrinsic value of stock options exercised | $ / shares | $ 100,000 | |||
Options exercised (in shares) | 0 | 0 | ||
Inducement Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Inducement award threshold percentage of stock ownership | 50.00% | |||
Inducement Awards | Performance Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense | $ | $ 1.3 | |||
Weighted average recognition period | 8 months 12 days | |||
Awards granted (in shares) | 273,735 | |||
Inducement Awards | Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period commencement | 1 year | |||
Unrecognized compensation expense | $ | $ 4.1 | |||
Weighted average recognition period | 2 years | |||
Awards granted (in shares) | 578,753 | 816,000 | ||
Inducement Awards | Minimum | Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of equal annual installments | installment | 1 | |||
Inducement Awards | Maximum | Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of equal annual installments | installment | 3 |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions Used to Estimate the Black-Scholes Fair Value of Stock Options Granted (Details) - Stock Options | 12 Months Ended | |
Feb. 29, 2020 | Mar. 02, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average expected life | 7 years 7 months 6 days | 6 years 8 months 12 days |
Weighted average expected volatility | 39.41% | 34.96% |
Weighted average risk free interest rates | 2.39% | 2.92% |
Expected dividend yield | 4.34% | 3.80% |
Stock-Based Compensation - Chan
Stock-Based Compensation - Changes in the Company's Restricted Stock (Details) - $ / shares | Nov. 04, 2019 | Feb. 27, 2021 |
Restricted Stock Awards | The 2012 and 2018 Plans | ||
Number of Restricted Shares | ||
Unvested awards, beginning of period (in shares) | 2,445,000 | |
Granted (in shares) | 95,000 | |
Vested (in shares) | (706,000) | |
Forfeited (in shares) | (899,000) | |
Unvested awards, end of period (in shares) | 935,000 | |
Weighted Average Grant-Date Fair Value | ||
Unvested shares, beginning of period (in dollars per share) | $ 35.50 | |
Granted (in dollars per share) | 8.09 | |
Vested (in dollars per share) | 37.49 | |
Forfeited (in dollars per share) | 32.25 | |
Unvested shares, beginning of period (in dollars per share) | $ 34.34 | |
Restricted Stock Units | The 2012 and 2018 Plans | ||
Number of Restricted Shares | ||
Unvested awards, beginning of period (in shares) | 0 | |
Granted (in shares) | 2,316,000 | |
Vested (in shares) | (19,000) | |
Forfeited (in shares) | (27,000) | |
Unvested awards, end of period (in shares) | 2,270,000 | |
Weighted Average Grant-Date Fair Value | ||
Unvested shares, beginning of period (in dollars per share) | $ 0 | |
Granted (in dollars per share) | 14.23 | |
Vested (in dollars per share) | 23.58 | |
Forfeited (in dollars per share) | 23.58 | |
Unvested shares, beginning of period (in dollars per share) | $ 14.04 | |
Restricted Stock Units | Inducement Awards | ||
Number of Restricted Shares | ||
Unvested awards, beginning of period (in shares) | 579,000 | |
Granted (in shares) | 578,753 | 816,000 |
Vested (in shares) | (446,000) | |
Forfeited (in shares) | 0 | |
Unvested awards, end of period (in shares) | 949,000 | |
Weighted Average Grant-Date Fair Value | ||
Unvested shares, beginning of period (in dollars per share) | $ 13.65 | |
Granted (in dollars per share) | 6.33 | |
Vested (in dollars per share) | 13.65 | |
Forfeited (in dollars per share) | 0 | |
Unvested shares, beginning of period (in dollars per share) | $ 7.36 |
Stock-Based Compensation - As_2
Stock-Based Compensation - Assumptions Used to Estimate the Black-Scholes Fair Value of Performance Share Units Granted (Details) - Performance Stock Units - The 2012 and 2018 Plans | 12 Months Ended |
Feb. 27, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk free interest rate | 0.25% |
Expected dividend yield | 0.00% |
Expected volatility | 51.47% |
Expected term | 3 years |
Stock-Based Compensation - Ch_2
Stock-Based Compensation - Changes in the Company's Performance Stock Units (Details) - Performance Stock Units - The 2012 and 2018 Plans shares in Thousands | 12 Months Ended |
Feb. 27, 2021$ / sharesshares | |
Number of Performance Stock Units | |
Unvested awards, beginning of period (in shares) | shares | 1,414 |
Granted (in shares) | shares | 653 |
Vested (in shares) | shares | (343) |
Forfeited (in shares) | shares | (249) |
Unvested awards, end of period (in shares) | shares | 1,475 |
Weighted Average Grant-Date Fair Value | |
Unvested shares, beginning of period (in dollars per share) | $ / shares | $ 21.57 |
Granted (in dollars per share) | $ / shares | 12.28 |
Vested (in dollars per share) | $ / shares | 37.50 |
Forfeited (in dollars per share) | $ / shares | 17.96 |
Unvested shares, beginning of period (in dollars per share) | $ / shares | $ 14.36 |
Assets Held for Sale and Dive_2
Assets Held for Sale and Divestitures (Details) - USD ($) | Jan. 15, 2021 | Oct. 11, 2020 | Aug. 03, 2020 | Nov. 28, 2020 | Feb. 27, 2021 | Feb. 29, 2020 | Mar. 02, 2019 | Oct. 24, 2020 | Feb. 14, 2020 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Gain (loss) on sale of businesses, including impairment of assets held for sale | $ (1,062,000) | $ 0 | $ 0 | ||||||
Cost Plus World Market | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Proceeds from sale of business | $ 63,700,000 | ||||||||
Remeasurement charge | $ 54,000,000 | ||||||||
Leaseback term | 9 months | ||||||||
Gain (loss) on sale of businesses, including impairment of assets held for sale | $ (72,000,000) | ||||||||
Christmas Tree Shops | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Proceeds from sale of business | $ 233,300,000 | ||||||||
Gain (loss) on sale of businesses, including impairment of assets held for sale | (53,800,000) | ||||||||
Linen Holdings | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Sale price | $ 10,100,000 | ||||||||
Gain (loss) on sale of businesses, including impairment of assets held for sale | (64,600,000) | ||||||||
PMall | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Proceeds from sale of business | $ 244,600,000 | ||||||||
Sale price | $ 245,000,000 | ||||||||
Proposed sale price | $ 252,000,000 | ||||||||
Gain (loss) on sale of businesses, including impairment of assets held for sale | $ 189,300,000 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 27, 2021 | Feb. 29, 2020 | Mar. 02, 2019 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 71.6 | $ 90.5 | $ 41.2 |
Additions Charged to Income | 259.8 | 403.1 | 488.5 |
Additions Charged to Other Accounts | 0 | 0 | 95.5 |
Adjustments and/or Deductions | 295.2 | 422 | 534.7 |
Balance at End of Period | $ 36.2 | $ 71.6 | $ 90.5 |