Cover
Cover | 3 Months Ended |
May 29, 2021shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | May 29, 2021 |
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, $.01 par value |
Trading Symbol | BBBY |
Security Exchange Name | NASDAQ |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 104,513,541 |
Entity Central Index Key | 0000886158 |
Current Fiscal Year End Date | --02-26 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | May 29, 2021 | Feb. 27, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 1,097,267 | $ 1,352,984 |
Short term investment securities | 29,997 | 0 |
Merchandise inventories | 1,563,602 | 1,671,909 |
Prepaid expenses and other current assets | 515,993 | 595,152 |
Total current assets | 3,206,859 | 3,620,045 |
Long term investment securities | 19,458 | 19,545 |
Property and equipment, net | 929,335 | 918,418 |
Operating lease assets | 1,584,144 | 1,587,101 |
Other assets | 313,493 | 311,821 |
Total assets | 6,053,289 | 6,456,930 |
Current liabilities: | ||
Accounts payable | 889,883 | 986,045 |
Accrued expenses and other current liabilities | 506,674 | 636,329 |
Merchandise credit and gift card liabilities | 309,576 | 312,486 |
Current operating lease liabilities | 347,365 | 360,061 |
Total current liabilities | 2,053,498 | 2,294,921 |
Other liabilities | 78,353 | 82,279 |
Operating lease liabilities | 1,529,173 | 1,509,767 |
Income taxes payable | 102,905 | 102,664 |
Long term debt | 1,182,566 | 1,190,363 |
Total liabilities | 4,946,495 | 5,179,994 |
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 343,570 and 343,241, respectively; outstanding 104,513 and 109,621 shares, respectively | 3,435 | 3,432 |
Additional paid-in capital | 2,208,052 | 2,152,135 |
Retained earnings | 10,174,656 | 10,225,253 |
Treasury stock, at cost; 239,057 and 233,620 shares, respectively | (11,234,529) | (11,048,284) |
Accumulated other comprehensive loss | (44,820) | (55,600) |
Total shareholders' equity | 1,106,794 | 1,276,936 |
Total liabilities and shareholders' equity | $ 6,053,289 | $ 6,456,930 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | May 29, 2021 | Feb. 27, 2021 |
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) | 343,570,000 | 343,241,000 |
Common stock, shares outstanding (in shares) | 104,513,000 | 109,621,000 |
Treasury stock (in shares) | 239,057,000 | 233,620,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
May 29, 2021 | May 30, 2020 | |
Income Statement [Abstract] | ||
Net sales | $ 1,953,812 | $ 1,307,447 |
Cost of sales | 1,320,118 | 958,958 |
Gross profit | 633,694 | 348,489 |
Selling, general and administrative expenses | 658,762 | 724,157 |
Impairments | 9,129 | 85,261 |
Restructuring and transformation initiative expenses | 33,686 | 0 |
Loss on sale of businesses | 3,989 | 0 |
Operating loss | (71,872) | (460,929) |
Interest expense, net | 16,000 | 17,171 |
Loss on extinguishment of debt | 265 | 0 |
Loss before benefit for income taxes | (88,137) | (478,100) |
Benefit for income taxes | (37,263) | (175,809) |
Net loss | $ (50,874) | $ (302,291) |
Net loss per share - Basic (in dollars per share) | $ (0.48) | $ (2.44) |
Net loss per share - Diluted (in dollars per share) | $ (0.48) | $ (2.44) |
Weighted average shares outstanding - Basic (in shares) | 106,772 | 123,697 |
Weighted average shares outstanding - Diluted (in shares) | 106,772 | 123,697 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
May 29, 2021 | May 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (50,874) | $ (302,291) |
Other comprehensive income (loss): | ||
Change in temporary impairment of auction rate securities, net of taxes | (64) | (568) |
Pension adjustment, net of taxes | 0 | (304) |
Currency translation adjustment | 10,844 | (6,036) |
Other comprehensive income (loss) | 10,780 | (6,908) |
Comprehensive loss | $ (40,094) | $ (309,199) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid- in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss |
Balance (in shares) at Feb. 29, 2020 | 343,683 | |||||
Balance (in shares) at Feb. 29, 2020 | 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 | (302,291) | (302,291) | ||||
Other comprehensive income (loss), net of tax | (6,908) | (6,908) | ||||
Dividend forfeited | 0 | |||||
Forfeiture of restricted shares, net (in shares) | (108) | |||||
Forfeiture of restricted shares, net | 0 | $ (1) | 1 | |||
Payment and vesting of performance stock units (in shares) | 343 | |||||
Payment and vesting of performance stock units | 0 | $ 4 | (4) | |||
Stock-based compensation expense, net | 7,891 | 7,891 | ||||
Accelerated share repurchase program | 0 | |||||
Director fees paid in stock | 0 | |||||
Repurchase of common stock, including fees (in shares) | 456 | |||||
Repurchase of common stock, including fees | 2,537 | $ 2,537 | ||||
Balance (in shares) at May. 30, 2020 | 343,918 | |||||
Balance (in shares) at May. 30, 2020 | 217,611 | |||||
Balance at May. 30, 2020 | 1,461,090 | $ 3,439 | 2,175,225 | 10,072,535 | $ 10,718,292 | (71,817) |
Balance (in shares) at Feb. 27, 2021 | 343,241 | |||||
Balance (in shares) at Feb. 27, 2021 | 233,620 | |||||
Balance at Feb. 27, 2021 | 1,276,936 | $ 3,432 | 2,152,135 | 10,225,253 | $ 11,048,284 | (55,600) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (50,874) | (50,874) | ||||
Other comprehensive income (loss), net of tax | 10,780 | 10,780 | ||||
Dividend forfeited | 277 | 277 | ||||
Issuance of restricted shares, net (in shares) | 322 | |||||
Issuance of restricted shares, net | 0 | $ 3 | (3) | |||
Payment and vesting of performance stock units | 0 | |||||
Stock-based compensation expense, net | 8,232 | 8,232 | ||||
Accelerated share repurchase program (in shares) | (200) | |||||
Accelerated share repurchase program | 0 | 47,550 | $ (47,550) | |||
Directors fees paid in stock (shares) | 7 | |||||
Director fees paid in stock | 138 | |||||
Repurchase of common stock, including fees (in shares) | 5,237 | |||||
Repurchase of common stock, including fees | 138,695 | $ 138,695 | ||||
Balance (in shares) at May. 29, 2021 | 343,570 | |||||
Balance (in shares) at May. 29, 2021 | 239,057 | |||||
Balance at May. 29, 2021 | $ 1,106,794 | $ 3,435 | $ 2,208,052 | $ 10,174,656 | $ 11,234,529 | $ (44,820) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
May 29, 2021 | May 30, 2020 | Feb. 27, 2021 | |
Cash Flows from Operating Activities: | |||
Net loss | $ (50,874) | $ (302,291) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 68,278 | 83,601 | |
Impairments | 9,129 | 85,261 | |
Stock-based compensation | 7,918 | 7,702 | |
Deferred income taxes | (22,135) | (82,357) | |
Loss on sale of businesses | 3,989 | 0 | |
Loss on extinguishment of debt | 265 | 0 | $ (77,000) |
Other | (2,197) | (1,373) | |
Decrease (increase) in assets: | |||
Merchandise inventories | 113,366 | (138,503) | |
Other current assets | 78,544 | (105,193) | |
Other assets | 68 | 828 | |
(Decrease) increase in liabilities: | |||
Accounts payable | (102,201) | 20,874 | |
Accrued expenses and other current liabilities | (129,327) | (47,075) | |
Merchandise credit and gift card liabilities | (3,421) | (9,794) | |
Income taxes payable | 277 | 1,145 | |
Operating lease assets and liabilities, net | 3,125 | 94,127 | |
Other liabilities | (3,545) | (1,576) | |
Net cash used in operating activities | (28,741) | (394,624) | |
Cash Flows from Investing Activities: | |||
Purchases of held-to-maturity investment securities | (29,997) | 0 | |
Redemption of held-to-maturity investment securities | 0 | 357,000 | |
Capital expenditures | (73,521) | (42,351) | |
Net cash (used in) provided by investing activities | (103,518) | 314,649 | |
Cash Flows from Financing Activities: | |||
Borrowing of long-term debt | 0 | 236,400 | |
Repayments of long-term debt | (8,173) | 0 | |
Repurchase of common stock, including fees | (138,695) | (2,537) | |
Payment of dividends | (560) | (21,192) | |
Net cash (used in) provided by financing activities | (147,428) | 212,671 | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 6,117 | (3,462) | |
Net (decrease) increase in cash, cash equivalents and restricted cash | (273,570) | 129,234 | |
Change in cash balances classified as held-for-sale | 0 | 2,270 | |
Net (decrease) increase in cash, cash equivalents and restricted cash | (273,570) | 131,504 | |
Cash, cash equivalents and restricted cash: | |||
Beginning of period | 1,407,224 | 1,023,650 | 1,023,650 |
End of period | $ 1,133,654 | $ 1,155,154 | $ 1,407,224 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
May 29, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION The accompanying consolidated financial statements have been prepared without audit. In the opinion of management, the accompanying consolidated financial statements contain all adjustments (consisting of only normal recurring accruals and elimination of intercompany balances and transactions) necessary to present fairly the financial position of Bed Bath & Beyond Inc. and subsidiaries (the "Company") as of May 29, 2021 and February 27, 2021 and the results of its operations, shareholders' equity, and comprehensive loss for the three months ended May 29, 2021 and May 30, 2020, respectively, and its cash flows for the three months ended May 29, 2021 and May 30, 2020, respectively. The accompanying unaudited consolidated financial statements are presented in accordance with the requirements for Form 10-Q and consequently do not include all the disclosures normally required by U.S. generally accepted accounting principles ("GAAP"). Reference should be made to the Company’s Annual Report on Form 10-K for the fiscal year ended February 27, 2021 for additional disclosures, including a summary of the Company’s significant accounting policies, and to subsequently filed Form 8-Ks. For fiscal 2021, the Company is accounting for its operations as one operating segment, North American Retail. For fiscal 2020, until the divestiture of Linen Holdings in October 2020, the Company accounted for its operations as two operating segments: North American Retail and Institutional Sales (which was comprised of Linen Holdings), which did not meet the quantitative thresholds under U.S. generally accepted accounting principles and, therefore, was not a reportable segment. Net sales outside of the U.S. for the Company were not material for the three months ended May 29, 2021 and May 30, 2020. As the Company operates in the retail industry, its results of operations are affected by general economic conditions and consumer spending habits. |
Impact of the COVID-19 Pandemic
Impact of the COVID-19 Pandemic | 3 Months Ended |
May 29, 2021 | |
Impact of the COVID-19 Pandemic [Abstract] | |
Impact of the COVID-19 Pandemic | IMPACT OF THE COVID-19 PANDEMIC In March 2020, the World Health Organization declared the COVID-19 outbreak a global pandemic. That same month, as a result of the COVID-19 pandemic, the Company began to temporarily close certain store locations that did not have a health and personal care department, and as of March 23, 2020, all of the Company's retail stores across the U.S. and Canada were temporarily closed except for most stand-alone buybuy BABY and Harmon stores, subject to state and local regulations. 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 re-opened and remained open through the first quarter of 2021; however, a limited number of stores either closed temporarily or continued to operate under restrictions based on local governmental orders. In the first quarter of 2020, the Company initiated actions 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, Buy Online Pick Up In Store ("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. Similar to other retailers, the Company has also withheld portions of and/or delayed payments to certain of our business partners as the Company negotiated revisions to its payment terms, in order to further maintain liquidity given the temporary store closures (See "Leases," Note 9). On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted in the United States, which provided for certain changes to tax laws, which impacted the Company’s results of operations, financial position and cash flows. The Company implemented 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 May 29, 2021 and February 27, 2021, the Company has deferred $3.1 million in each period, of employer payroll taxes, of which 50% are required to be deposited by December 2021 and the remaining 50% by December 2022. During the three months ended May 29, 2021 and May 30, 2020 , under the CARES Act, the Company recorded income tax benefits of $15.6 million and $43.0 million, respectively, as a result of the fiscal 2020 and fiscal 2019 net operating losses that can now be carried back to prior years during which the federal tax rate was 35%. In addition, during the three months ended May 29, 2021 and May 30, 2020 , the Company recorded credits of approximately $2.4 million and $22.9 million, respectively, 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. The COVID-19 pandemic materially adversely impacted the Company’s results of operations and cash flows for the first three months of fiscal 2020. Numerous uncertainties continue to surround the pandemic and its ultimate impact on the Company. Further discussion of the risks and uncertainties posed by the COVID-19 pandemic is disclosed in “Risk Factors” under Part I, Item 1A of the Company’s 2020 Form 10-K. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
May 29, 2021 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
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. For the three months ended May 29, 2021 and May 30, 2020, the Company recognized net sales for gift card and merchandise credit redemptions of approximately $30.3 million and $32.1 million, respectively, 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 May 29, 2021 and February 27, 2021, the Company recorded a liability for estimated returns of $25.8 million and $36.2 million, respectively, within accrued expenses and other current liabilities, and the corresponding right of return asset for merchandise of $15.8 million and $23.4 million, respectively, within prepaid expenses and other current assets. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
May 29, 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’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 May 29, 2021 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 May 29, 2021 and February 27, 2021, the fair value of the Company’s long term debt was approximately $1.113 billion and $1.118 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 $1.187 billion and $1.195 billion, respectively. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 3 Months Ended |
May 29, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | 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 $64.9 million and $64.0 million as of May 29, 2021 and February 27, 2021, respectively. Short-term restricted cash of $5.0 million as of May 29, 2021 and February 27, 2021, is included in prepaid expenses and other current assets on the consolidated balance sheet and long-term restricted cash of $31.4 million as of May 29, 2021 and $49.2 million as of February 27, 2021, is included in other long-term assets on the consolidated balance sheet. |
Investment Securities
Investment Securities | 3 Months Ended |
May 29, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | INVESTMENT SECURITIES The Company’s investment securities as of May 29, 2021 and February 27, 2021 are as follows: (in millions) May 29, 2021 February 27, 2021 Available-for-sale securities: Long term $ 19.4 $ 19.4 Held-to-maturity securities: Short term 30.0 — Total investment securities $ 49.4 $ 19.4 Auction Rate Securities As of May 29, 2021 and February 27, 2021, the Company’s long term available-for-sale investment securities represented approximately $20.3 million par value of auction rate securities, less temporary valuation adjustments of approximately $0.9 million and $0.8 million, respectively, consisting of preferred shares of closed end municipal bond funds. 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 |
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets | 3 Months Ended |
May 29, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Impairment of Long-Lived Assets | 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 asset. 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 are separately presented in the appropriate asset and liability sections of the balance sheet (See "Assets Held for Sale and Divestitures," Note 18). For the three months ended May 29, 2021 and May 30, 2020, the Company recorded $7.0 million and $80.4 million, respectively, of non-cash pre-tax impairment charges within impairments in its consolidated statement of operations for certain store-level assets, including leasehold improvements and operating lease assets. 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. |
Property and Equipment
Property and Equipment | 3 Months Ended |
May 29, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | PROPERTY AND EQUIPMENT As of May 29, 2021 and February 27, 2021, included in property and equipment, net is accumulated depreciation of approximately $1.7 billion in each period. |
Leases
Leases | 3 Months Ended |
May 29, 2021 | |
Leases [Abstract] | |
Leases | LEASES The Company leases retail stores, distribution facilities, offices and equipment under agreements expiring at various dates through 2041. The leases provide for original lease terms that generally range from 10 to 15 years and most leases provide for a series of five 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 5-10 years. Most sublease arrangements provide for a series of five Similar to other retailers, during the three months ended May 29, 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 May 29, 2021 and February 27, 2021 were approximately $5.5 million and $9.6 million, respectively, and are included in current liabilities. Additional negotiations of payment terms are still in process. In accordance with the Financial Accounting Standards Board’s 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 three months ended May 29, 2021, the Company recognized reduced rent expense of $1.3 million related to rent abatement concessions. No such reduced rent expense was realized in the three months ended May 30, 2020. The components of total lease cost for the three months ended May 29, 2021 and May 30, 2020, were as follows: (in thousands) Statement of Operations Location Three Months Ended May 29, May 30, Operating lease cost Cost of sales and SG&A $ 117,370 $ 148,383 Finance lease cost: Depreciation of property SG&A — 648 Interest on lease liabilities Interest expense, net — 2,233 Variable lease cost Cost of sales and SG&A 35,507 50,458 Sublease income SG&A (13,851) (278) Total lease cost $ 139,026 $ 201,444 As of May 29, 2021 and February 27, 2021, assets and liabilities related to the Company’s leases were as follows: (in thousands) Consolidated Balance Sheet Location May 29, February 27, Assets Operating leases Operating lease assets $ 1,584,144 $ 1,587,101 Total lease assets $ 1,584,144 $ 1,587,101 Liabilities Current: Operating leases Current operating lease liabilities $ 347,365 $ 360,061 Noncurrent: Operating leases Operating lease liabilities 1,529,173 1,509,767 Total lease liabilities $ 1,876,538 $ 1,869,828 As of May 29, 2021, the Company’s lease liabilities mature as follows: (in thousands) Operating Leases Fiscal Year: Remainder of 2021 $ 342,182 2022 420,835 2023 354,365 2024 298,950 2025 236,137 2026 164,743 Thereafter 513,946 Total lease payments $ 2,331,158 Less imputed interest (454,620) Present value of lease liabilities $ 1,876,538 At May 29, 2021, the Company has entered into one lease which has not yet commenced at a new location planned for opening in 2021, which is not included in the above table and for which aggregate minimum rental payments over the term of the lease is approximately $24.5 million. The Company’s lease terms and discount rates were as follows: May 29, 2021 February 27, 2021 Weighted-average remaining lease term (in years) Operating leases 6.8 6.8 Weighted-average discount rate Operating leases 6.3 % 6.4 % Other information with respect to the Company’s leases is as follows: (in thousands) Three Months Ended May 29, May 30, Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 115,788 140,977 Operating cash flows from finance leases — 2,515 Operating lease assets obtained in exchange for new operating lease liabilities 100,215 76,462 |
Leases | LEASES The Company leases retail stores, distribution facilities, offices and equipment under agreements expiring at various dates through 2041. The leases provide for original lease terms that generally range from 10 to 15 years and most leases provide for a series of five 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 5-10 years. Most sublease arrangements provide for a series of five Similar to other retailers, during the three months ended May 29, 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 May 29, 2021 and February 27, 2021 were approximately $5.5 million and $9.6 million, respectively, and are included in current liabilities. Additional negotiations of payment terms are still in process. In accordance with the Financial Accounting Standards Board’s 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 three months ended May 29, 2021, the Company recognized reduced rent expense of $1.3 million related to rent abatement concessions. No such reduced rent expense was realized in the three months ended May 30, 2020. The components of total lease cost for the three months ended May 29, 2021 and May 30, 2020, were as follows: (in thousands) Statement of Operations Location Three Months Ended May 29, May 30, Operating lease cost Cost of sales and SG&A $ 117,370 $ 148,383 Finance lease cost: Depreciation of property SG&A — 648 Interest on lease liabilities Interest expense, net — 2,233 Variable lease cost Cost of sales and SG&A 35,507 50,458 Sublease income SG&A (13,851) (278) Total lease cost $ 139,026 $ 201,444 As of May 29, 2021 and February 27, 2021, assets and liabilities related to the Company’s leases were as follows: (in thousands) Consolidated Balance Sheet Location May 29, February 27, Assets Operating leases Operating lease assets $ 1,584,144 $ 1,587,101 Total lease assets $ 1,584,144 $ 1,587,101 Liabilities Current: Operating leases Current operating lease liabilities $ 347,365 $ 360,061 Noncurrent: Operating leases Operating lease liabilities 1,529,173 1,509,767 Total lease liabilities $ 1,876,538 $ 1,869,828 As of May 29, 2021, the Company’s lease liabilities mature as follows: (in thousands) Operating Leases Fiscal Year: Remainder of 2021 $ 342,182 2022 420,835 2023 354,365 2024 298,950 2025 236,137 2026 164,743 Thereafter 513,946 Total lease payments $ 2,331,158 Less imputed interest (454,620) Present value of lease liabilities $ 1,876,538 At May 29, 2021, the Company has entered into one lease which has not yet commenced at a new location planned for opening in 2021, which is not included in the above table and for which aggregate minimum rental payments over the term of the lease is approximately $24.5 million. The Company’s lease terms and discount rates were as follows: May 29, 2021 February 27, 2021 Weighted-average remaining lease term (in years) Operating leases 6.8 6.8 Weighted-average discount rate Operating leases 6.3 % 6.4 % Other information with respect to the Company’s leases is as follows: (in thousands) Three Months Ended May 29, May 30, Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 115,788 140,977 Operating cash flows from finance leases — 2,515 Operating lease assets obtained in exchange for new operating lease liabilities 100,215 76,462 |
Income Taxes
Income Taxes | 3 Months Ended |
May 29, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The effective income tax rate for the three months ended May 29, 2021 was 42.3% compared with 36.8% for the three months ended May 30, 2020. The effective income tax rate for the three months ended May 29, 2021 reflects the impact of charges for restructuring and transformation initiatives as well as a benefit of $15.6 million resulting from an adjustment to the estimated net operating loss incurred in fiscal 2020 which will be carried back, under the provisions of the CARES Act, to a year in which the tax rate was 35%. For the three months ended May 30, 2020, the effective tax rate included the impact of impairment charges for leasehold improvements and lease assets, a $43.0 million benefit related to fiscal 2019 net operating loss carry-back under the CARES Act, and other discrete tax items. During the three months ended May 29, 2021, the change in the gross amount of unrecognized tax benefits and accrued interest and penalties was not significant. |
Indefinite Lived Intangible Ass
Indefinite Lived Intangible Assets | 3 Months Ended |
May 29, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Indefinite Lived Intangible Assets | INDEFINITE LIVED INTANGIBLE ASSETS The Company reviews intangibles 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 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. 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. As of May 29, 2021 and May 30, 2020, the Company completed a quantitative impairment analysis for certain of its indefinite lived intangible assets, by comparing the fair value of the tradenames to their carrying value and recognized a non-cash pre-tax tradename impairment charge of $2.1 million and $5.5 million, respectively, within impairments in its consolidated statements of operations. As of May 29, 2021, for the remaining indefinite lived intangibles 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 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 May 29, 2021 and February 27, 2021, respectively, are $19.8 million and $22.0 million for indefinite lived tradenames and trademarks. |
Long Term Debt
Long Term Debt | 3 Months Ended |
May 29, 2021 | |
Debt Disclosure [Abstract] | |
Long Term Debt | LONG TERM DEBT Senior Unsecured Notes On July 17, 2014, the Company issued $300.0 million aggregate principal amount of 3.749% senior unsecured notes due August 1, 2024, $300.0 million aggregate principal amount of 4.915% senior unsecured notes due August 1, 2034 and $900.0 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 May 29, 2021. During the three months ended May 29, 2021, the Company purchased approximately $7.9 million aggregate principal amount of its 3.749% senior unsecured notes due August 1, 2024. The total consideration paid for the notes accepted for purchase of $8.2 million included accrued and unpaid interest up to, but not including, the early settlement date. The Company recorded a loss on extinguishment of debt of $0.3 million in its consolidated statement of operations for the three months ended May 29, 2021, including the write off of unamortized debt financing costs related to the extinguished portion of the notes accepted for purchase and reacquisition costs. During fiscal 2020, the Company purchased $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. As of May 29, 2021 and February 27, 2021, unamortized deferred financing costs associated with the Company ’s Notes were $4.9 million and $5.0 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 $250.0 million five The Credit Agreement provides for a secured asset-based revolving credit facility (the “ABL Facility”) with aggregate revolving commitments established at closing of $850.0 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 $375.0 million, subject to certain customary conditions. The Credit Agreement matures on June 19, 2023. The proceeds advanced under the Credit Agreement were used t o refinance $236.4 million in borrowings outstanding under the Revolver. These borrowings were fully repaid in August 2020. As of May 29, 2021, the Company had no loans outstanding under the ABL Facility, but had outstanding letters of credit of $146.2 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 $100.0 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 $600.0 million, then the borrowers must repay outstanding obligations under the Credit Agreement in an aggregate amount equal to the amount in excess of $600.0 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 May 29, 2021. As of May 29, 2021 and February 27, 2021, deferred financing costs associated with the Company's revolving credit facilities were $5.4 million and $6.1 million, respectively, and were recorded in other assets in the Company's consolidated balance sheets. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
May 29, 2021 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | SHAREHOLDERS' EQUITY The Company has authorization to make repurchases of shares of the Company’s common stock 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 April 2021, the Company’s Board of Directors authorized, through several share repurchase programs, the repurchase of up to $12.950 billion of the Company’s shares of common stock. 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. Since the initial authorization in December 2004, the aggregate total of common stock repurchased is approximately 239.1 million shares for a total cost of approximately $11.2 billion. The Company had approximately $1.7 billion remaining of authorized share repurchases as of May 29, 2021. Decisions regarding share repurchases are within the discretion of the Board of Directors, and are influenced by a number of factors, including the price of the Company's common stock, general business and economic conditions, the Company's financial condition and operating results, the emergence of alternative investment or acquisition opportunities, changes in business strategy and other factors. The Company's share repurchase program could change, and could be influenced by several factors, including business and market conditions, such as the impact of the COVID-19 pandemic. The Company reviews its alternatives with respect to its capital structure on an ongoing basis. 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 secured asset-based revolving credit facility (see “Long Term Debt,” Note 12). In the first quarter of fiscal 2020, the Company had postponed share repurchases, but lifted this postponement in October 2020. In October 2020, the Company entered into an accelerated share repurchase agreement with JPMorgan Chase Bank, National Association to repurchase $225.0 million of its common stock, subject to market conditions, which settled in the fourth quarter of fiscal 2020, resulting in the repurchase of a total of 10.8 million shares. In January 2021, the Company entered into a second accelerated share repurchase agreement to repurchase an aggregate $150.0 million of its common stock, subject to market conditions. This resulted in the repurchase of 5.0 million shares in the fourth quarter of fiscal 2020, and an additional 0.2 million shares received upon final settlement in the first quarter of fiscal 2021. During the three months ended May 29, 2021, the Company repurchased approximately 4.9 million shares at a total cost of approximately $130.4 million, including fees. Additionally, during the three months ended May 29, 2021 and May 30, 2020, the Company repurchased approximately 0.3 million and 0.5 million shares, respectively, of its common stock, to cover employee related taxes withheld on vested restricted stock, restricted stock unit awards and performance stock unit awards, at a total cost of approximately $8.3 million and $2.5 million, respectively. During fiscal 2016, the Company’s Board of Directors authorized a quarterly dividend program. During the three months ended May 29, 2021 and May 30, 2020, total cash dividends of $0.6 million and $21.2 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 12). 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. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
May 29, 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, restricted stock units and performance stock units. The Company’s restricted stock awards are considered nonvested share awards. Stock-based compensation expense for the three months ended May 29, 2021 was approximately $7.9 million ($4.6 million after tax or $0.04 per diluted share). Stock-based compensation expense for the three months ended May 30, 2020 was approximately $7.7 million ($4.9 million after tax or $0.04 per diluted share). In addition, the amount of stock-based compensation cost capitalized for the three months ended May 29, 2021 and May 30, 2020 was approximately $0.3 million and $0.2 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. Restricted stock awards generally become vested in five to seven equal annual installments beginning one three one three one The Company generally issues new shares for 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, 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. Restricted Stock Awards 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 three Changes in the Company’s restricted stock for the three months ended May 29, 2021 were as follows: (Shares in thousands) Number of Restricted Weighted Average Unvested restricted stock awards, beginning of period 935 $ 34.34 Granted — — Vested (222) 42.43 Forfeited (92) 28.31 Unvested restricted stock awards, end of period 621 $ 32.27 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 May 29, 2021, unrecognized compensation expense related to the unvested portion of the Company’s RSUs was $42.8 million, which is expected to be recognized over a weighted average period of 2.6 years. Changes in the Company’s RSUs for the three months ended May 29, 2021 were as follows: (Shares in thousands) Number of Restricted Weighted Average Unvested restricted stock units, beginning of period 2,270 $ 14.04 Granted 881 25.59 Vested (142) 8.68 Forfeited (117) 23.18 Unvested restricted stock units, end of period 2,892 $ 17.46 Performance Stock Units ("PSUs") PSUs are issued and measured at fair market value on the date of grant using the following performance periods and performance metrics. The performance metrics generally include one or more of Earnings Before Interest and Taxes ("EBIT"), Total Shareholder Return ("TSR"), Return on Invested Capital ("ROIC") or Gross Margin Percentage ("GM") compared with the Company's peer groups as determined by the Compensation Committee of the Company's Board of Directors. Fiscal Year Performance Period Performance Metrics Target Achievement Range (%) 2019 3 years TSR and EBIT 0% - 150% 2020 3 years TSR 0% - 150% 2021 3 years TSR and GM 0% - 200% For the PSUs granted in fiscal 2018, the three year performance-based tests based on a combination of EBIT margin and ROIC were not met in the first quarter of fiscal 2021 and therefore, there was no payment of these awards following vesting. Vesting of PSUs awarded to certain of the Company’s executives is dependent on the Company’s achievement of a performance-based test from the date of grant, during the performance period and, assuming achievement of the performance-based test, vest at the end of the performance period noted above, subject, in general, to the executive remaining in the Company’s service on specified vesting dates. PSUs are converted into shares of common stock upon payment following vesting. Upon grant of the PSUs, the Company recognizes compensation expense related to these awards based on the Company’s estimate of the percentage of the award that will be achieved. The Company evaluates the estimate on these awards on a quarterly basis and adjusts compensation expense related to these awards, as appropriate. As of May 29, 2021, there was $22.5 million of unrecognized compensation expense associated with these awards, which is expected to be recognized over a weighted average period of 2.8 years. The fair value of the PSUs granted in fiscal 2021 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. Three Months Ended Monte Carlo Simulation Assumptions May 29, 2021 Risk Free Interest Rate 0.28 % Expected Dividend Yield — % Expected Volatility 52.20 % Expected Term 3 years Changes in the Company’s PSUs for the three months ended May 29, 2021 were as follows: (Shares in thousands) Number of Performance Weighted Average Unvested performance stock units, beginning of period 1,475 $ 14.36 Granted 597 29.06 Vested — — Forfeited or performance condition adjustments (720) 17.05 Unvested performance stock units, end of period 1,352 $ 19.38 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). The Company did not grant any such awards in fiscal 2021. 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 three months ended May 29, 2021 were as follows: (Shares in thousands) Number of Restricted Weighted Average Unvested restricted stock units, beginning of period 949 $ 7.36 Granted — — Vested (405) 8.72 Forfeited — — Unvested restricted stock units, end of period 544 $ 6.32 On November 4, 2019, in connection with the appointment of the Company’s President and Chief Executive Officer, the Company also granted inducement awards consisting of 273,735 PSU awards, which are not included above. 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. 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 May 29, 2021, unrecognized compensation expense related to the unvested portion of the RSU and PSU inducement awards was $3.4 million and $0.8 million, respectively, which is expected to be recognized over a weighted average period of 2.0 years and 0.4 years, respectively. 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 the Company’s stock ownership guidelines. |
Earnings per Share
Earnings per Share | 3 Months Ended |
May 29, 2021 | |
Earnings Per Share [Abstract] | |
Earnings per Share | EARNINGS PER SHARE The Company presents earnings per share on a basic and diluted basis. Basic earnings per share has been computed by dividing net earnings by the weighted average number of shares outstanding. Diluted earnings per share has been 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. Stock-based awards for the three months ended May 29, 2021 and May 30, 2020 of approximately 3.3 million and 2.2 million shares, respectively, were excluded from the computation of diluted earnings per share as the effect would be anti-dilutive. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
May 29, 2021 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | SUPPLEMENTAL CASH FLOW INFORMATION The Company paid income taxes of $1.4 million and $0.4 million in the first three months of fiscal 2021 and 2020, respectively. In addition, the Company made interest payments of approximately $3.0 million and $2.3 million in the first three months of fiscal 2021 and 2020, respectively. |
Restructuring and Transformatio
Restructuring and Transformation Initiative Expenses | 3 Months Ended |
May 29, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Transformation Initiative Expenses | RESTRUCTURING AND TRANSFORMATION INITIATIVE EXPENSES Fiscal 2021 Restructuring Charges The Company recorded $81.0 million in its consolidated statements of operations for the three months ended May 29, 2021 for costs associated with restructuring and other transformation initiatives, of which approximately $47.3 million is included in cost of sales and was related to the Company’s initiative to introduce certain new proprietary Owned Brand merchandise. In connection with the launch of certain Owned Brands, the Company recorded this cost of sales adjustment to reduce inventory that will be removed from the product assortment as part of these introductions to its estimated realizable value. In addition to this charge, approximately $33.7 million is included in restructuring and transformation initiative expenses in the consolidated statements of operations and related to the following: • Store Closures. During the first quarter of fiscal 2021, the Company had store closing activities for 16 Bed Bath & Beyond stores as part of its store network optimization program which commenced in 2020 and includes the planned closure of approximately 200 mostly Bed Bath & Beyond stores by the end of fiscal 2021. In fiscal 2020, the Company closed 144 stores and expects to close an additional 40 stores by the end of fiscal 2021 (not including the 16 store closures in the first quarter of 2021). For the three months ended May 29, 2021, the Company recorded costs associated with planned store closures for which the store closing process has commenced of approximately $18.8 million, consisting of lease-related and other costs . 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. • Other transformation initiatives . $14.9 million related to other transformation initiatives, including technology transformation and business strategy and operating model transformation programs across core functions including merchandising, supply chain and finance. Fiscal 2020 Restructuring Charges The Company recorded $149.3 million in 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. No such costs were recorded in the three months ended May 30, 2020. |
Assets Held for Sale and Divest
Assets Held for Sale and Divestitures | 3 Months Ended |
May 29, 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 May 30, 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 Management, a Los Angeles-based private equity firm. On January 15, 2021, the 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. During the three months ended May 29, 2021, the Company recognized approximately $4.0 million of loss on the sale of businesses, associated with certain working capital and other adjustments related to the above divestitures. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
May 29, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS & 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. On June 11, 2021, a third related derivative action was filed on behalf of the Company against certain present and former directors and officers. This Complaint is entitled Michael Anthony v Mark Tritton et. al. , Index No. 514167/2021 and was filed in the Supreme Court of the State of New York, Kings County. The claims are essentially the same as in the other two derivative actions. The Company is seeking a consensual stay of this case. 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, which was made in the fourth quarter of fiscal 2020. The Company has also agreed to spend $171,000 over a 36 months period 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. 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. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
May 29, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying consolidated financial statements have been prepared without audit. In the opinion of management, the accompanying consolidated financial statements contain all adjustments (consisting of only normal recurring accruals and elimination of intercompany balances and transactions) necessary to present fairly the financial position of Bed Bath & Beyond Inc. and subsidiaries (the "Company") as of May 29, 2021 and February 27, 2021 and the results of its operations, shareholders' equity, and comprehensive loss for the three months ended May 29, 2021 and May 30, 2020, respectively, and its cash flows for the three months ended May 29, 2021 and May 30, 2020, respectively. The accompanying unaudited consolidated financial statements are presented in accordance with the requirements for Form 10-Q and consequently do not include all the disclosures normally required by U.S. generally accepted accounting principles ("GAAP"). Reference should be made to the Company’s Annual Report on Form 10-K for the fiscal year ended February 27, 2021 for additional disclosures, including a summary of the Company’s significant accounting policies, and to subsequently filed Form 8-Ks. |
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. For the three months ended May 29, 2021 and May 30, 2020, the Company recognized net sales for gift card and merchandise credit redemptions of approximately $30.3 million and $32.1 million, respectively, 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. |
Cash and Cash Equivalents | The Company considers all highly liquid instruments purchased with original maturities of three months or less to be cash equivalents. |
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. |
Intangible 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 asset. 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 are separately presented in the appropriate asset and liability sections of the balance sheet (See "Assets Held for Sale and Divestitures," Note 18). The Company reviews intangibles 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 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. 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. As of May 29, 2021 and May 30, 2020, the Company completed a quantitative impairment analysis for certain of its indefinite lived intangible assets, by comparing the fair value of the tradenames to their carrying value and recognized a non-cash pre-tax tradename impairment charge of $2.1 million and $5.5 million, respectively, within impairments in its consolidated statements of operations. As of May 29, 2021, for the remaining indefinite lived intangibles 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 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. |
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, restricted stock units and performance stock units. The Company’s restricted stock awards are considered nonvested share awards. |
Earnings per Share | The Company presents earnings per share on a basic and diluted basis. Basic earnings per share has been computed by dividing net earnings by the weighted average number of shares outstanding. Diluted earnings per share has been 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) | 3 Months Ended |
May 29, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | The Company’s investment securities as of May 29, 2021 and February 27, 2021 are as follows: (in millions) May 29, 2021 February 27, 2021 Available-for-sale securities: Long term $ 19.4 $ 19.4 Held-to-maturity securities: Short term 30.0 — Total investment securities $ 49.4 $ 19.4 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
May 29, 2021 | |
Leases [Abstract] | |
Schedule of Lease Cost | The components of total lease cost for the three months ended May 29, 2021 and May 30, 2020, were as follows: (in thousands) Statement of Operations Location Three Months Ended May 29, May 30, Operating lease cost Cost of sales and SG&A $ 117,370 $ 148,383 Finance lease cost: Depreciation of property SG&A — 648 Interest on lease liabilities Interest expense, net — 2,233 Variable lease cost Cost of sales and SG&A 35,507 50,458 Sublease income SG&A (13,851) (278) Total lease cost $ 139,026 $ 201,444 |
Assets and Liabilities Related to Operating Leases | As of May 29, 2021 and February 27, 2021, assets and liabilities related to the Company’s leases were as follows: (in thousands) Consolidated Balance Sheet Location May 29, February 27, Assets Operating leases Operating lease assets $ 1,584,144 $ 1,587,101 Total lease assets $ 1,584,144 $ 1,587,101 Liabilities Current: Operating leases Current operating lease liabilities $ 347,365 $ 360,061 Noncurrent: Operating leases Operating lease liabilities 1,529,173 1,509,767 Total lease liabilities $ 1,876,538 $ 1,869,828 |
Schedule of Lease Liabilities, Operating | As of May 29, 2021, the Company’s lease liabilities mature as follows: (in thousands) Operating Leases Fiscal Year: Remainder of 2021 $ 342,182 2022 420,835 2023 354,365 2024 298,950 2025 236,137 2026 164,743 Thereafter 513,946 Total lease payments $ 2,331,158 Less imputed interest (454,620) Present value of lease liabilities $ 1,876,538 |
Schedule of Other Lease Information | The Company’s lease terms and discount rates were as follows: May 29, 2021 February 27, 2021 Weighted-average remaining lease term (in years) Operating leases 6.8 6.8 Weighted-average discount rate Operating leases 6.3 % 6.4 % Other information with respect to the Company’s leases is as follows: (in thousands) Three Months Ended May 29, May 30, Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 115,788 140,977 Operating cash flows from finance leases — 2,515 Operating lease assets obtained in exchange for new operating lease liabilities 100,215 76,462 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
May 29, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Unit Activity | Changes in the Company’s restricted stock for the three months ended May 29, 2021 were as follows: (Shares in thousands) Number of Restricted Weighted Average Unvested restricted stock awards, beginning of period 935 $ 34.34 Granted — — Vested (222) 42.43 Forfeited (92) 28.31 Unvested restricted stock awards, end of period 621 $ 32.27 Changes in the Company’s RSUs for the three months ended May 29, 2021 were as follows: (Shares in thousands) Number of Restricted Weighted Average Unvested restricted stock units, beginning of period 2,270 $ 14.04 Granted 881 25.59 Vested (142) 8.68 Forfeited (117) 23.18 Unvested restricted stock units, end of period 2,892 $ 17.46 |
Schedule of PSU Activity | Fiscal Year Performance Period Performance Metrics Target Achievement Range (%) 2019 3 years TSR and EBIT 0% - 150% 2020 3 years TSR 0% - 150% 2021 3 years TSR and GM 0% - 200% Changes in the Company’s PSUs for the three months ended May 29, 2021 were as follows: (Shares in thousands) Number of Performance Weighted Average Unvested performance stock units, beginning of period 1,475 $ 14.36 Granted 597 29.06 Vested — — Forfeited or performance condition adjustments (720) 17.05 Unvested performance stock units, end of period 1,352 $ 19.38 |
Schedule of PSU Valuation Assumptions | The fair value of the PSUs granted in fiscal 2021 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. Three Months Ended Monte Carlo Simulation Assumptions May 29, 2021 Risk Free Interest Rate 0.28 % Expected Dividend Yield — % Expected Volatility 52.20 % Expected Term 3 years |
Schedule of Share-based Compensation, Restricted Stock Units Activity | Changes in the RSUs granted as inducement awards for the three months ended May 29, 2021 were as follows: (Shares in thousands) Number of Restricted Weighted Average Unvested restricted stock units, beginning of period 949 $ 7.36 Granted — — Vested (405) 8.72 Forfeited — — Unvested restricted stock units, end of period 544 $ 6.32 |
Basis of Presentation (Details
Basis of Presentation (Details Textual) - segment | 3 Months Ended | 12 Months Ended |
May 29, 2021 | Feb. 27, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of operating segments | 1 | 2 |
Impact of COVID-19 Pandemic (De
Impact of COVID-19 Pandemic (Details) - USD ($) $ in Millions | 3 Months Ended | ||
May 29, 2021 | May 30, 2020 | Feb. 27, 2021 | |
Impact of the COVID-19 Pandemic [Abstract] | |||
Deferred employer payroll taxes | $ 3.1 | $ 3.1 | |
Effective income tax reconciliation, CARES Act, amount | 15.6 | $ 43 | |
Offset to selling, general and administrative expenses | $ 2.4 | $ 22.9 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | ||
May 29, 2021 | May 30, 2020 | Feb. 27, 2021 | |
Revenue Recognition [Line Items] | |||
Net sales for gift card and merchandise credit redemptions | $ 30.3 | $ 32.1 | |
Liability for estimated returns | 25.8 | $ 36.2 | |
Right of return asset for merchandise | $ 15.8 | $ 23.4 | |
Revenue from Contract with Customer, Product and Service Benchmark | Domestic Merchandise | Product Concentration Risk | |||
Revenue Recognition [Line Items] | |||
Percentage of net sales | 37.90% | 30.60% | |
Revenue from Contract with Customer, Product and Service Benchmark | Home Furnishings | Product Concentration Risk | |||
Revenue Recognition [Line Items] | |||
Percentage of net sales | 62.10% | 69.40% |
Fair Value Measurements (Detail
Fair Value Measurements (Details Textual) - USD ($) $ in Millions | May 29, 2021 | Feb. 27, 2021 |
Fair Value Disclosures [Abstract] | ||
Long-term debt, fair value | $ 1,113 | $ 1,118 |
Long-term debt, carrying value | $ 1,187 | $ 1,195 |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) - USD ($) $ in Millions | May 29, 2021 | Feb. 27, 2021 |
Cash and Cash Equivalents [Abstract] | ||
Credit and debit card receivables from banks | $ 64.9 | $ 64 |
Restricted Cash and Cash Equivalents, Current | 5 | 5 |
Restricted Cash and Cash Equivalents, Noncurrent | $ 31.4 | $ 49.2 |
Investment Securities - Summary
Investment Securities - Summary of Investment Securities (Details) - USD ($) | May 29, 2021 | Feb. 27, 2021 |
Available-for-sale securities: | ||
Long term | $ 19,400,000 | $ 19,400,000 |
Held-to-maturity securities: | ||
Short term | 30,000,000 | 0 |
Total investment securities | $ 49,400,000 | $ 19,400,000 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) - USD ($) | May 29, 2021 | Feb. 27, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Short term held-to-maturity securities | $ 30,000,000 | $ 0 |
Auction Rate Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Long term available-for-sale investment securities | 20,300,000 | 20,300,000 |
Valuation adjustments | $ 900,000 | $ 800,000 |
Impairment of Long-Lived Asse_2
Impairment of Long-Lived Assets (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 29, 2021 | May 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Impairment charge | $ 7 | $ 80.4 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Billions | May 29, 2021 | Feb. 27, 2021 |
Property, Plant and Equipment [Abstract] | ||
Accumulated depreciation | $ 1.7 | $ 1.7 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 3 Months Ended | ||
May 29, 2021USD ($)lease | May 30, 2020USD ($) | Feb. 27, 2021USD ($) | |
Lessee, Lease, Description [Line Items] | |||
Operating lease renewal term | 5 years | ||
Sublease renewal term | 5 years | ||
Total payments withheld and/or delayed or deferred | $ 5,500,000 | $ 9,600,000 | |
Reduced rent expense related to rent abatement | $ 1,300,000 | $ 0 | |
Number of leases not yet commenced | lease | 1 | ||
Lease not yet commenced, aggregate minimum rental payments | $ 24,500,000 | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Original lease terms, operating | 10 years | ||
Sublease term | 5 years | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Original lease terms, operating | 15 years | ||
Sublease term | 10 years |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
May 29, 2021 | May 30, 2020 | |
Leases [Abstract] | ||
Operating lease cost | $ 117,370 | $ 148,383 |
Finance lease cost: | ||
Depreciation of property | 0 | 648 |
Interest on lease liabilities | 0 | 2,233 |
Variable lease cost | 35,507 | 50,458 |
Sublease income | (13,851) | (278) |
Total lease cost | $ 139,026 | $ 201,444 |
Leases - Schedule of Lease Asse
Leases - Schedule of Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | May 29, 2021 | Feb. 27, 2021 |
Assets | ||
Operating leases | $ 1,584,144 | $ 1,587,101 |
Total lease assets | 1,584,144 | 1,587,101 |
Current: | ||
Operating leases | 347,365 | 360,061 |
Noncurrent: | ||
Operating leases | 1,529,173 | 1,509,767 |
Total lease liabilities | $ 1,876,538 | $ 1,869,828 |
Leases - Schedule of Lease Matu
Leases - Schedule of Lease Maturities (Details) $ in Thousands | May 29, 2021USD ($) |
Operating Leases | |
Remainder of 2021 | $ 342,182 |
2022 | 420,835 |
2023 | 354,365 |
2024 | 298,950 |
2025 | 236,137 |
2026 | 164,743 |
Thereafter | 513,946 |
Total lease payments | 2,331,158 |
Less imputed interest | (454,620) |
Present value of lease liabilities | $ 1,876,538 |
Leases - Lease Terms and Discou
Leases - Lease Terms and Discount Rates (Details) | May 29, 2021 | Feb. 27, 2021 |
Weighted-average remaining lease term | ||
Operating leases | 6 years 9 months 18 days | 6 years 9 months 18 days |
Weighted-average discount rate | ||
Operating leases | 6.30% | 6.40% |
Leases - Cash Flow Information
Leases - Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
May 29, 2021 | May 30, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flows from operating leases | $ 115,788 | $ 140,977 |
Operating cash flows from finance leases | 0 | 2,515 |
Operating lease assets obtained in exchange for new operating lease liabilities | ||
Operating lease assets obtained in exchange for new operating lease liabilities | $ 100,215 | $ 76,462 |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | 3 Months Ended | |
May 29, 2021USD ($)state | May 30, 2020USD ($) | |
Tax Credit Carryforward [Line Items] | ||
Effective income tax rate | 42.30% | 36.80% |
Effective income tax reconciliation, CARES Act, amount | $ | $ 15.6 | $ 43 |
Number of states in which entity operates | state | 50 | |
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 |
Indefinite Lived Intangible A_2
Indefinite Lived Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | ||
May 29, 2021 | May 30, 2020 | Feb. 27, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Impairments of indefinite lived intangible assets | $ 2.1 | $ 5.5 | |
Indefinite lived tradenames and trademarks | $ 19.8 | $ 22 |
Long Term Debt - Senior Unsecur
Long Term Debt - Senior Unsecured Notes (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
May 29, 2021 | May 30, 2020 | Feb. 27, 2021 | Aug. 24, 2020 | Aug. 10, 2020 | Jul. 17, 2014 | |
Debt Instrument [Line Items] | ||||||
Loss on extinguishment of debt | $ 265,000 | $ 0 | $ (77,000,000) | |||
Senior Unsecured Notes [Member] | The 2024 Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 300,000,000 | |||||
Debt interest rate | 3.749% | |||||
Repurchased principal amount | 7,900,000 | |||||
Total consideration paid for Notes | 8,200,000 | |||||
Senior Unsecured Notes [Member] | The 2034 Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 300,000,000 | |||||
Debt interest rate | 4.915% | |||||
Repurchased principal amount | $ 75,000,000 | |||||
Senior Unsecured Notes [Member] | The 2044 Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 900,000,000 | |||||
Debt interest rate | 5.165% | |||||
Repurchased principal amount | $ 225,000,000 | |||||
Senior Unsecured Notes [Member] | The 2034 and 2044 Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Total consideration paid for Notes | $ 220,900,000 | |||||
Early tender premium | $ 50 | |||||
Other Assets [Member] | Senior Unsecured Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Unamortized deferred financing costs | $ 4,900,000 | $ 5,000,000 |
Long Term Debt - Asset-Based Cr
Long Term Debt - Asset-Based Credit Agreement (Details) | 3 Months Ended | |||
May 29, 2021USD ($)lineOfCredit | May 30, 2020USD ($) | Feb. 27, 2021USD ($) | Jun. 19, 2020USD ($) | |
Debt Instrument [Line Items] | ||||
Number of uncommitted lines of credit | lineOfCredit | 2 | |||
Senior Unsecured Notes and Revolver [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest expense | $ 16,400,000 | $ 18,200,000 | ||
Revolving Credit Facility [Member] | New Revolver [Member] | ||||
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 [Member] | ABL Facility [Member] | ||||
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 | 146,200,000 | |||
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 [Member] | ABL Facility [Member] | LIBOR and CDOR [Member] | ||||
Debt Instrument [Line Items] | ||||
Minimum interest rate margin | 1.00% | |||
Interest rate margin deemed | 1.00% | |||
Revolving Credit Facility [Member] | ABL Facility [Member] | LIBOR and CDOR [Member] | Minimum | ||||
Debt Instrument [Line Items] | ||||
Interest rate margin | 2.25% | |||
Revolving Credit Facility [Member] | ABL Facility [Member] | LIBOR and CDOR [Member] | Maximum | ||||
Debt Instrument [Line Items] | ||||
Interest rate margin | 2.75% | |||
Revolving Credit Facility [Member] | ABL Facility [Member] | Alternate Base Rate and Canadian Prime Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Minimum interest rate margin | 2.00% | |||
Interest rate margin deemed | 2.00% | |||
Revolving Credit Facility [Member] | ABL Facility [Member] | Alternate Base Rate and Canadian Prime Rate [Member] | Minimum | ||||
Debt Instrument [Line Items] | ||||
Interest rate margin | 1.25% | |||
Revolving Credit Facility [Member] | ABL Facility [Member] | Alternate Base Rate and Canadian Prime Rate [Member] | Maximum | ||||
Debt Instrument [Line Items] | ||||
Interest rate margin | 1.75% | |||
Uncommitted Lines of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity per line | 100,000,000 | |||
Other Assets [Member] | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Deferred financing costs | $ 5,400,000 | $ 6,100,000 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) shares in Thousands | 1 Months Ended | 3 Months Ended | 198 Months Ended | |||
Jan. 31, 2021 | Oct. 31, 2020 | May 29, 2021 | Feb. 27, 2021 | May 30, 2020 | May 29, 2021 | |
Share Repurchases [Line Items] | ||||||
Share repurchase program authorized amount | $ 225,000,000 | $ 12,950,000,000 | $ 12,950,000,000 | |||
Repurchase of common stock, including fees | 138,695,000 | $ 2,537,000 | ||||
Shares repurchased | 10,800 | 239,100 | ||||
Accelerated share repurchase program | 0 | 0 | ||||
Total cost of common stock repurchased | 138,695,000 | 2,537,000 | $ 11,200,000,000 | |||
Remaining authorized share repurchase amount under program | 1,700,000,000 | $ 1,700,000,000 | ||||
Total cash dividends paid | $ 560,000 | $ 21,192,000 | ||||
Taxes on Vested Awards | ||||||
Share Repurchases [Line Items] | ||||||
Shares repurchased | 300 | 500 | ||||
Total cost of common stock repurchased | $ 8,300,000 | $ 2,500,000 | ||||
Common Stock | ||||||
Share Repurchases [Line Items] | ||||||
Shares repurchased | 4,900 | |||||
Total cost of common stock repurchased | $ 130,400,000 | |||||
Treasury Stock | ||||||
Share Repurchases [Line Items] | ||||||
Shares repurchased | 5,237 | 456 | ||||
Accelerated share repurchase program | $ 47,550,000 | |||||
Total cost of common stock repurchased | 138,695,000 | $ 2,537,000 | ||||
Additional Paid- in Capital | ||||||
Share Repurchases [Line Items] | ||||||
Accelerated share repurchase program | $ (47,550,000) | |||||
Accelerated Share Repurchase Program 4Q2020 | ||||||
Share Repurchases [Line Items] | ||||||
Repurchase of common stock, including fees | $ 150,000,000 | |||||
Shares repurchased | 5,000 | |||||
Accelerated Share Repurchase Program 1Q2021 | ||||||
Share Repurchases [Line Items] | ||||||
Shares repurchased | 200 |
Stock-Based Compensation - Text
Stock-Based Compensation - Textual (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
May 29, 2021 | May 30, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
Stock-based compensation expense | $ 7.9 | $ 7.7 |
Stock-based compensation expense, after tax | $ 4.6 | $ 4.9 |
Stock-based compensation expense, after tax, per diluted share | $ 0.04 | $ 0.04 |
Stock-based compensation cost capitalized | $ 0.3 | $ 0.2 |
Stock-Based Compensation - Ince
Stock-Based Compensation - Incentive Compensation Plans Textual (Details) shares in Millions | 3 Months Ended |
May 29, 2021installmentshares | |
2018 Incentive Compensation Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common shares authorized for issuance (in shares) | shares | 4.6 |
2012 Incentive Compensation Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common shares authorized for issuance (in shares) | shares | 43.2 |
Restricted Stock Awards | 2012 and 2018 Incentive Compensation Plans | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Service period from date of grant | 1 year |
Restricted Stock Awards | 2012 and 2018 Incentive Compensation Plans | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period, number of equal annual installments | installment | 5 |
Service period from date of grant | 1 year |
Restricted Stock Awards | 2012 and 2018 Incentive Compensation Plans | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period, number of equal annual installments | installment | 7 |
Service period from date of grant | 3 years |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Textual (Details) - Restricted Stock Awards - 2012 and 2018 Incentive Compensation Plans $ in Millions | 3 Months Ended |
May 29, 2021USD ($)installment | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Service period from date of grant | 1 year |
Unrecognized compensation expense related to unvested restricted stock awards | $ | $ 16.2 |
Period for recognition, weighted average period (in years) | 2 years 8 months 12 days |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period, number of equal annual installments | 5 |
Service period from date of grant | 1 year |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period, number of equal annual installments | 7 |
Service period from date of grant | 3 years |
Stock-Based Compensation - Chan
Stock-Based Compensation - Changes in the Company's Restricted Stock (Details) shares in Thousands | 3 Months Ended |
May 29, 2021$ / sharesshares | |
Restricted Stock Awards | |
Number of Restricted Shares | |
Unvested shares, beginning of period (in shares) | shares | 935 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | (222) |
Forfeited (in shares) | shares | (92) |
Unvested shares, end of period (in shares) | shares | 621 |
Weighted Average Grant-Date Fair Value | |
Unvested shares, Weighted Average Grant Date Fair Value, beginning of period (in dollars per share) | $ / shares | $ 34.34 |
Granted, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 0 |
Vested, Weighted Average Grant Date Fair Value ( in dollars per share) | $ / shares | 42.43 |
Forfeited, Weighted Average Grant-Date Fair Value (in dollars per share) | $ / shares | 28.31 |
Unvested shares, Weighted Average Grant Date Fair Value, end of period (in dollars per share) | $ / shares | $ 32.27 |
Restricted Stock Units (RSUs) [Member] | |
Number of Restricted Shares | |
Unvested shares, beginning of period (in shares) | shares | 2,270 |
Granted (in shares) | shares | 881 |
Vested (in shares) | shares | (142) |
Forfeited (in shares) | shares | (117) |
Unvested shares, end of period (in shares) | shares | 2,892 |
Weighted Average Grant-Date Fair Value | |
Unvested shares, Weighted Average Grant Date Fair Value, beginning of period (in dollars per share) | $ / shares | $ 14.04 |
Granted, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 25.59 |
Vested, Weighted Average Grant Date Fair Value ( in dollars per share) | $ / shares | 8.68 |
Forfeited, Weighted Average Grant-Date Fair Value (in dollars per share) | $ / shares | 23.18 |
Unvested shares, Weighted Average Grant Date Fair Value, end of period (in dollars per share) | $ / shares | $ 17.46 |
Stock-Based Compensation - Re_2
Stock-Based Compensation - Restricted Stock Units Textual (Details) - Restricted Stock Units (RSUs) [Member] $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended |
May 29, 2021USD ($)installment$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | shares | 881 |
Weighted average grant-date fair value (in dollars per share) | $ / shares | $ 25.59 |
2012 and 2018 Incentive Compensation Plans | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense related to unvested restricted stock | $ | $ 42.8 |
Period for recognition, weighted average period (in years) | 2 years 7 months 6 days |
2012 and 2018 Incentive Compensation Plans | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period, number of equal annual installments | 1 |
2012 and 2018 Incentive Compensation Plans | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period, number of equal annual installments | 3 |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance Stock Units Textual (Details) - Performance Stock Units $ in Millions | 3 Months Ended |
May 29, 2021USD ($) | |
2012 and 2018 Incentive Compensation Plans | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense | $ 22.5 |
Period for recognition, weighted average period (in years) | 2 years 9 months 18 days |
2019 Fiscal Year | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period (in years) | 3 years |
2019 Fiscal Year | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Target award percentage | 0.00% |
2019 Fiscal Year | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Target award percentage | 150.00% |
2020 Fiscal Year | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period (in years) | 3 years |
2020 Fiscal Year | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Target award percentage | 0.00% |
2020 Fiscal Year | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Target award percentage | 150.00% |
2021 Fiscal Year | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period (in years) | 3 years |
2021 Fiscal Year | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Target award percentage | 0.00% |
2021 Fiscal Year | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Target award percentage | 200.00% |
Stock-Based Compensation - Mont
Stock-Based Compensation - Monte Carlo Simulation Assumptions (Details) - Performance Stock Units | 3 Months Ended |
May 29, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk Free Interest Rate | 0.28% |
Expected Dividend Yield | 0.00% |
Expected Volatility | 52.20% |
Expected Term | 3 years |
Stock-Based Compensation - Ch_2
Stock-Based Compensation - Changes in the Company's Performance Stock Units (Details) - Performance Stock Units shares in Thousands | 3 Months Ended |
May 29, 2021$ / sharesshares | |
Number of Performance Stock Units | |
Unvested shares, beginning of period (in shares) | shares | 1,475 |
Granted (in shares) | shares | 597 |
Vested (in shares) | shares | 0 |
Forfeited or performance condition adjustments, (in shares) | shares | (720) |
Unvested shares, end of period (in shares) | shares | 1,352 |
Weighted Average Grant-Date Fair Value | |
Unvested shares, Weighted Average Grant Date Fair Value, beginning of period (in dollars per share) | $ / shares | $ 14.36 |
Granted, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 29.06 |
Vested, Weighted Average Grant Date Fair Value ( in dollars per share) | $ / shares | 0 |
Forfeited or performance condition adjustments, Weighted Average Grant-Date Fair Value (in dollars per share) | $ / shares | 17.05 |
Unvested shares, Weighted Average Grant Date Fair Value, end of period (in dollars per share) | $ / shares | $ 19.38 |
Stock-Based Compensation - Indu
Stock-Based Compensation - Inducement Awards Textual (Details) - USD ($) $ in Millions | Nov. 04, 2019 | May 29, 2021 |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 881,000 | |
Restricted Stock Units (RSUs) [Member] | Inducement Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 0 | |
Unrecognized compensation expense | $ 3.4 | |
Period for recognition, weighted average period (in years) | 2 years | |
Performance Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 597,000 | |
Performance Stock Units | Inducement Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 273,735 | |
Unrecognized compensation expense | $ 0.8 | |
Period for recognition, weighted average period (in years) | 4 months 24 days |
Stock-Based Compensation - Ch_3
Stock-Based Compensation - Changes in RSUs Granted as Inducement Awards (Details) - Restricted Stock Units (RSUs) [Member] shares in Thousands | 3 Months Ended |
May 29, 2021$ / sharesshares | |
Number of Restricted Stock Units | |
Unvested shares, beginning of period (in shares) | shares | 2,270 |
Granted (in shares) | shares | 881 |
Vested (in shares) | shares | (142) |
Forfeited (in shares) | shares | (117) |
Unvested shares, end of period (in shares) | shares | 2,892 |
Weighted Average Grant-Date Fair Value | |
Unvested shares, Weighted Average Grant Date Fair Value, beginning of period (in dollars per share) | $ / shares | $ 14.04 |
Granted, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 25.59 |
Vested, Weighted Average Grant Date Fair Value ( in dollars per share) | $ / shares | 8.68 |
Forfeited, Weighted Average Grant-Date Fair Value (in dollars per share) | $ / shares | 23.18 |
Unvested shares, Weighted Average Grant Date Fair Value, end of period (in dollars per share) | $ / shares | $ 17.46 |
Inducement Awards [Member] | |
Number of Restricted Stock Units | |
Unvested shares, beginning of period (in shares) | shares | 949 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | (405) |
Forfeited (in shares) | shares | 0 |
Unvested shares, end of period (in shares) | shares | 544 |
Weighted Average Grant-Date Fair Value | |
Unvested shares, Weighted Average Grant Date Fair Value, beginning of period (in dollars per share) | $ / shares | $ 7.36 |
Granted, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 0 |
Vested, Weighted Average Grant Date Fair Value ( in dollars per share) | $ / shares | 8.72 |
Forfeited, Weighted Average Grant-Date Fair Value (in dollars per share) | $ / shares | 0 |
Unvested shares, Weighted Average Grant Date Fair Value, end of period (in dollars per share) | $ / shares | $ 6.32 |
Earnings per Share (Details Tex
Earnings per Share (Details Textual) - shares shares in Millions | 3 Months Ended | |
May 29, 2021 | May 30, 2020 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive stock-based awards excluded from computation of diluted earnings per share (in shares) | 3.3 | 2.2 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 29, 2021 | May 30, 2020 | |
Supplemental Cash Flow Information [Abstract] | ||
Income taxes paid | $ 1.4 | $ 0.4 |
Interest payments | 3 | 2.3 |
Accrual for capital expenditures | 49.7 | 25.4 |
Accrual for dividends payable | $ 1.3 | $ 5.2 |
Restructuring and Transformat_2
Restructuring and Transformation Initiative Expenses (Details) $ in Millions | 3 Months Ended | 12 Months Ended | 24 Months Ended | |
May 29, 2021USD ($)store | Feb. 26, 2022store | Feb. 27, 2021USD ($)store | Jul. 06, 2022store | |
Fiscal 2021 Restructuring Charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of stores closed | store | 16 | 144 | ||
Fiscal 2021 Restructuring Charges | Restructuring Charges And Transformation Initiative Charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Transformation costs | $ 81 | |||
Fiscal 2021 Restructuring Charges | Forecast | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Stores expected to close | store | 40 | 200 | ||
Fiscal 2021 Restructuring Charges | Other Restructuring | Cost of Sales | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Transformation costs | 47.3 | |||
Fiscal 2021 Restructuring Charges | Other Restructuring | Restructuring Charges And Transformation Initiative Charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Transformation costs | 14.9 | |||
Fiscal 2021 Restructuring Charges | Network Optimization Program | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Lease-related costs | 18.8 | |||
Fiscal 2021 Restructuring Charges | Store Closures and Other Transformation Initiatives | Restructuring Charges And Transformation Initiative Charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Transformation costs | $ 33.7 | |||
Fiscal 2020 Restructuring Charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Pre-tax restructuring charges | $ 149.3 |
Assets Held for Sale and Dive_2
Assets Held for Sale and Divestitures (Details) - USD ($) | Jan. 15, 2021 | May 29, 2021 | Nov. 28, 2020 | May 30, 2020 | Feb. 27, 2021 | Oct. 24, 2020 | Aug. 03, 2020 | Feb. 14, 2020 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Loss on sale of businesses | $ 3,989,000 | $ 0 | ||||||
Cost Plus World Market | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Proceeds from divestiture of business | $ 63,700,000 | |||||||
Loss on sale of businesses | $ 72,000,000 | |||||||
Remeasurement charge | $ 54,000,000 | |||||||
Christmas Tree Shops | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Loss on sale of businesses | $ 53,800,000 | |||||||
Sale price | $ 233,300,000 | |||||||
Linen Holdings | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Loss on sale of businesses | 64,600,000 | |||||||
Sale price | $ 10,100,000 | |||||||
PMall | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Loss on sale of businesses | $ (189,300,000) | |||||||
Sale price | $ 244,600,000 | |||||||
Proposed sale price | $ 245,000,000 | $ 252,000,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | May 12, 2019 | May 29, 2021 | Feb. 27, 2021 | Feb. 29, 2020 | Apr. 21, 2019 |
Related Party Transaction [Line Items] | |||||
Settlement payment | $ 1,500,000 | ||||
Amount to refine compliance program over next 36 months | $ 171,000 | ||||
Co-Founders | |||||
Related Party Transaction [Line Items] | |||||
Supplemental pension payments specified per year | $ 200,000 | ||||
Percentage of base salary | 50.00% | ||||
Payment term (in years) | 10 years | ||||
Transition costs | $ 36,800,000 |