| Consolidated Balance Sheets (USD $) | ||
| In Thousands | Nov. 28, 2009
| Feb. 28, 2009
|
| Current assets: | ||
| Cash and cash equivalents | $854,641 | $668,209 |
| Short term investment securities | 162,934 | 2,000 |
| Merchandise inventories | 1,954,995 | 1,642,339 |
| Other current assets | 353,419 | 250,251 |
| Total current assets | 3,325,989 | 2,562,799 |
| Long term investment securities | 152,248 | 221,134 |
| Property and equipment, net | 1,118,272 | 1,148,435 |
| Other assets | 331,257 | 336,475 |
| Total assets | 4,927,766 | 4,268,843 |
| Current liabilities: | ||
| Accounts payable | 718,921 | 514,734 |
| Accrued expenses and other current liabilities | 281,494 | 247,508 |
| Merchandise credit and gift card liabilities | 162,882 | 165,621 |
| Current income taxes payable | 24,216 | 25,105 |
| Total current liabilities | 1,187,513 | 952,968 |
| Deferred rent and other liabilities | 238,660 | 227,209 |
| Income taxes payable | 103,160 | 88,212 |
| Total liabilities | 1,529,333 | 1,268,389 |
| 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 318,953 and 314,678 shares, respectively; outstanding 262,004 and 259,701 shares, respectively | 3,190 | 3,147 |
| Additional paid-in capital | 963,180 | 878,568 |
| Retained earnings | 4,528,912 | 4,154,921 |
| Treasury stock, at cost; 56,949 and 54,977 shares, respectively | (2,098,275) | (2,031,642) |
| Accumulated other comprehensive income (loss) | 1,426 | (4,540) |
| Total shareholders' equity | 3,398,433 | 3,000,454 |
| Total liabilities and shareholders' equity | $4,927,766 | $4,268,843 |
| Consolidated Balance Sheets (Parenthetical) (USD $) | ||
| Share data in Thousands, except Per Share data | Nov. 28, 2009
| Feb. 28, 2009
|
| Consolidated Balance Sheets | ||
| Preferred stock par value (in dollars per share) | 0.01 | 0.01 |
| Preferred stock authorized (in shares) | 1,000 | 1,000 |
| Preferred stock issued (in shares) | 0 | 0 |
| Preferred stock outstanding (in shares) | 0 | 0 |
| Common stock par value (in dollars per share) | 0.01 | 0.01 |
| Common stock authorized (in shares) | 900,000 | 900,000 |
| Common stock issued (in shares) | 318,953 | 314,678 |
| Common stock outstanding (in shares) | 262,004 | 259,701 |
| Treasury stock shares (in shares) | 56,949 | 54,977 |
| Consolidated Statements of Earnings (USD $) | ||||
| In Thousands, except Per Share data | 3 Months Ended
Nov. 28, 2009 | 3 Months Ended
Nov. 29, 2008 | 9 Months Ended
Nov. 28, 2009 | 9 Months Ended
Nov. 29, 2008 |
| Consolidated Statements of Earnings | ||||
| Net sales | $1,975,465 | $1,782,683 | $5,584,714 | $5,285,066 |
| Cost of sales | 1,163,053 | 1,089,826 | 3,332,091 | 3,196,888 |
| Gross profit | 812,412 | 692,857 | 2,252,623 | 2,088,178 |
| Selling, general and administrative expenses | 566,801 | 556,483 | 1,642,677 | 1,645,564 |
| Operating profit | 245,611 | 136,374 | 609,946 | 442,614 |
| Interest income | 737 | 1,396 | 3,980 | 8,872 |
| Earnings before provision for income taxes | 246,348 | 137,770 | 613,926 | 451,486 |
| Provision for income taxes | 95,060 | 50,070 | 239,935 | 167,741 |
| Net earnings | $151,288 | $87,700 | $373,991 | $283,745 |
| Net earnings per share - Basic (in dollars per share) | 0.59 | 0.34 | 1.45 | 1.11 |
| Net earnings per share - Diluted (in dollars per share) | 0.58 | 0.34 | 1.44 | 1.1 |
| Weighted average shares outstanding - Basic (in shares) | 258,074 | 256,150 | 257,610 | 256,503 |
| Weighted average shares outstanding - Diluted (in shares) | 260,913 | 258,174 | 259,872 | 258,805 |
| Consolidated Statements of Cash Flows (USD $) | ||
| In Thousands | 9 Months Ended
Nov. 28, 2009 | 9 Months Ended
Nov. 29, 2008 |
| Cash Flows from Operating Activities: | ||
| Net earnings | $373,991 | $283,745 |
| Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
| Depreciation | 137,034 | 130,744 |
| Stock-based compensation | 32,809 | 32,352 |
| Tax benefit from stock-based compensation | (1,805) | (890) |
| Deferred income taxes | (16,206) | (23,709) |
| Other | (147) | 311 |
| (Increase) decrease in assets: | ||
| Merchandise inventories | (312,656) | (303,500) |
| Trading investment securities | (4,998) | (62) |
| Other current assets | (83,633) | (69,322) |
| Other assets | 377 | (869) |
| Increase (decrease) in liabilities: | ||
| Accounts payable | 206,883 | 62,914 |
| Accrued expenses and other current liabilities | 37,363 | 7,462 |
| Merchandise credit and gift card liabilities | (2,739) | (5,415) |
| Income taxes payable | 10,607 | (20,208) |
| Deferred rent and other liabilities | 15,216 | 13,476 |
| Net cash provided by operating activities | 392,096 | 107,029 |
| Cash Flows from Investing Activities: | ||
| Redemption of available-for-sale investment securities | 33,320 | 95,250 |
| Purchase of held-to-maturity investment securities | (119,950) | |
| Capital expenditures | (108,619) | (162,986) |
| Investment in unconsolidated joint venture, including fees | (4,782) | |
| Net cash used in investing activities | (195,249) | (72,518) |
| Cash Flows from Financing Activities: | ||
| Proceeds from exercise of stock options | 53,190 | 16,172 |
| Excess tax benefit from stock-based compensation | 3,028 | 3,622 |
| Repurchase of common stock, including fees | (66,633) | (45,033) |
| Net cash used in financing activities | (10,415) | (25,239) |
| Net increase in cash and cash equivalents | 186,432 | 9,272 |
| Cash and cash equivalents: | ||
| Beginning of period | 668,209 | 224,084 |
| End of period | $854,641 | $233,356 |
| Basis of Presentation | |
| 9 Months Ended
Nov. 28, 2009 USD / shares | |
| Notes to Consolidated Financial Statements | |
| Basis of Presentation | 1) 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 November28, 2009 and February28, 2009 and the results of its operations for the three and nine months ended November28, 2009 and November29, 2008, respectively, and its cash flows for the nine months ended November28, 2009 and November29, 2008, respectively. The accompanying unaudited consolidated financial statements are presented in accordance with the requirements for Form10-Q and consequently do not include all the disclosures normally required by U.S. generally accepted accounting principles (GAAP). Reference should be made to Bed Bath Beyond Inc.s Annual Report on Form10-K for the fiscal year ended February28, 2009 for additional disclosures, including a summary of the Companys significant accounting policies, and to subsequently filed Forms 8-K. The Company exhibits less seasonality than many other retail businesses, although sales levels are generally higher in August, Novemberand December, and generally lower in Februaryand October. The Company has evaluated subsequent events through January6, 2010, the filing date of this Form10-Q with the Securities and Exchange Commission (SEC). |
| Recent Accounting Pronouncements | |
| 9 Months Ended
Nov. 28, 2009 USD / shares | |
| Notes to Consolidated Financial Statements | |
| Recent Accounting Pronouncements | 2) Recent Accounting Pronouncements In June2009, the Financial Accounting Standards Board (FASB) issued accounting guidance which established the FASB Accounting Standards Codification (ASC or Codification) as the exclusive source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with GAAP. Rulesand interpretive releases of the SEC are also considered sources of authoritative GAAP for SEC registrants. The Codification supersedes all existing non-SEC accounting and reporting standards, however it does not change current GAAP. The Codification is effective for all financial statements issued for interim and annual periods ending after September15, 2009. Accordingly, the Company has reflected all necessary changes in this filing. In December2008, the FASB issued updated accounting guidance related to retirement benefits which requires more detailed disclosures about the assets of a defined benefit pension or other postretirement plan. This guidance is effective for fiscal years ending after December15, 2009. The Company does not believe the adoption of this guidance will have a material impact on its consolidated financial statements. |
| Fair Value Measurements | |
| 9 Months Ended
Nov. 28, 2009 USD / shares | |
| Notes to Consolidated Financial Statements | |
| Fair Value Measurements | 3) Fair Value Measurements The Company adopted the accounting guidance related to fair value measurements and disclosures for financial assets and liabilities on March2, 2008 and for non-financial assets and liabilities on March1, 2009. This guidance defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures about fair value measurements. The adoption of this guidance for financial and non-financial assets and liabilities did not have a material impact on the Companys consolidated financial statements. 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 guidance also established a hierarchy for inputs used in measuring fair value that 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 companys 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. 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. As of November28, 2009, the Companys financial assets utilizing Level 1 inputs include long term investment securities traded on active securities exchanges. The Company did not have any financial assets utilizing Level 2 inputs. Financial assets utilizing Level 3 inputs included short term and long term investments in auction rate securities consisting of preferred shares of closed end municipal bond funds and securities collateralized by student loans, and a related put option (See Investment Securities, Note 5). To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the Companys degree of judgment exercised in determining fair value is grea |
| Cash and Cash Equivalents | |
| 9 Months Ended
Nov. 28, 2009 USD / shares | |
| Notes to Consolidated Financial Statements | |
| Cash and Cash Equivalents | 4) Cash and Cash Equivalents Included in cash and cash equivalents are credit and debit card receivables from banks, which typically settle within five business days, of $144.8 million and $51.8 million as of November28, 2009 and February28, 2009, respectively. |
| Investment Securities | |
| 9 Months Ended
Nov. 28, 2009 USD / shares | |
| Notes to Consolidated Financial Statements | |
| Investment Securities | 5) Investment Securities The Companys investment securities as of November28, 2009 and February28, 2009 are as follows: (in millions) November28, 2009 February28, 2009 Available-for-sale securities: Short term $ $ 2.0 Long term 140.7 171.4 Trading securities: Short term 40.7 Long term 11.5 47.8 Held-to-maturity securities: Short term 119.9 Long term 0.1 0.1 Put option: Short term 2.3 Long term 1.8 Total investment securities $ 315.2 $ 223.1 Auction Rate Securities As of November28, 2009 and February28, 2009, the Companys available-for-sale investment securities represented approximately $142.9 million and approximately $176.0 million par value of auction rate securities, respectively, less temporary valuation adjustments of approximately $2.2 million and $2.6 million, respectively. Since these valuation adjustments are deemed to be temporary, they are recorded in accumulated other comprehensive income (loss), net of a related tax benefit, and did not affect the Companys earnings. These securities at par are invested in preferred shares of closed end municipal bond funds, which are required, pursuant to the Investment Company Act of 1940, to maintain minimum asset coverage ratios of 200%. All of these available-for-sale investments carried triple-A credit ratings from one or more of the major credit rating agencies as of November28, 2009 and February28, 2009, and none of them are mortgage-backed debt obligations. The Company believes that the unrealized losses are temporary and reflect the investments current lack of liquidity. As of November28, 2009 and February28, 2009, the Companys available-for-sale investments have been in a continuous unrealized loss position for 12 months or more. Due to their lack of liquidity, the Company classified $140.7 million and $171.4 million of these investments as long term investment securities at November28, 2009 and February28, 2009, respectively. As of November28, 2009 and February28, 2009, the Companys trading investment securities included approximately $40.7 million at fair value ($43.0 million at par) and $41.4 million at fair value ($43.2 million at par), respectively, of auction rate securities which are invested in securities collateralized by student loans. As of November28, 2009 and February28, 2009, these securities were more than 100% collateralized with approximately 90% of such collateral in the aggregate being guaranteed by the United States government. All of these trading investment securities also carried triple-A ratings from one or more of the major credit rating agencies as of November28, 2009 and February28, 2009. During the first nine months of fiscal 2009, the Company recognized a pre-tax unrealized loss of approximately $0.5 million in the consolidated statement of earnings to reflect the decrease in the fair value of these securities. In the third quarter of fiscal 2008, the Company entered into an agreement (the Agreement) with the investment firm that sold the Company these securities. By entering into the Agreement, the Company (1)rec |
| Property and Equipment | |
| 9 Months Ended
Nov. 28, 2009 USD / shares | |
| Notes to Consolidated Financial Statements | |
| Property and Equipment | 6) Property and Equipment As of November28, 2009 and February28, 2009, included in property and equipment, net is accumulated depreciation and amortization of $1.2 billion and $1.1 billion, respectively. |
| Stock-Based Compensation | |
| 9 Months Ended
Nov. 28, 2009 USD / shares | |
| Notes to Consolidated Financial Statements | |
| Stock-Based Compensation | 7) Stock-Based Compensation The Company measures all employee stock-based compensation awards using a fair value method and records such expense in its consolidated financial statements. Currently, the Companys stock-based compensation relates to restricted stock awards and stock options. The Companys restricted stock awards are considered nonvested share awards. Stock-based compensation expense for the three and nine months ended November28, 2009 was approximately $10.7 million ($6.6million after tax or $0.03 per diluted share) and approximately $32.8 million ($20.0 million after tax or $0.08 per diluted share), respectively. Stock-based compensation expense for the three and nine months ended November29, 2008 was approximately $10.7million ($6.8 million after tax or $0.03 per diluted share) and approximately $32.4 million ($20.3 million after tax or $0.08 per diluted share), respectively. In addition, the amount of stock-based compensation cost capitalized for the nine months ended November28, 2009 and November29, 2008 was approximately $0.9 million. Incentive Compensation Plans The Company currently grants awards under the Bed Bath Beyond 2004 Incentive Compensation Plan (the 2004 Plan). The 2004 Plan is a flexible compensation plan that enables the Company to offer incentive compensation through stock options, restricted stock awards, stock appreciation rights and performance awards, including cash awards. Under the 2004 Plan, grants are determined by the Compensation Committee for those awards granted to executive officers and by an appropriate committee for all other awards granted. Awards of stock options and restricted stock generally vest in five equal annual installments beginning one to three years from the date of grant. The Company generally issues new shares for stock option exercises and restricted stock awards. As of November28, 2009, unrecognized compensation expense related to the unvested portion of the Companys stock options and restricted stock awards was $30.2 million and $104.8 million, respectively, which is expected to be recognized over a weighted average period of 2.8 years and 4.6 years, respectively. Stock Options Stock option grants are issued at fair market value on the date of grant and generally become exercisable in five equal annual installments beginning one to three years from the date of grant. Option grants for stock options issued prior to May10, 2004 expire ten years after the date of grant. Option grants for stock options issued since May10, 2004 expire eight years after the date of grant. All option grants are nonqualified. The fair value of the stock options granted was estimated on the date of the grant using a Black-Scholes option-pricing model that uses the assumptions noted in the following table. During the first quarter of fiscal 2009, the Company granted approximately 0.7 million stock options. No stock options were granted during the second or third quarters of fiscal 2009. Nine Months Ended Black-Scholes Valuation Assumptions (1) November28, 2009 November29, 2008 Weighted Average Expected Life (in years) (2) 6.3 6.1 Weighted Average |
| Shareholders' Equity | |
| 9 Months Ended
Nov. 28, 2009 USD / shares | |
| Notes to Consolidated Financial Statements | |
| Shareholders' Equity | 8) Shareholders Equity Between December2004 and September2007, the Companys Board of Directors authorized, through several share repurchase programs, the repurchase of $2.950 billion of its shares of common stock. The Company was authorized to make repurchases from time to time in the open market or through other parameters approved by the Board of Directors pursuant to existing rulesand regulations. The Company also purchases shares of its common stock to cover employee related taxes withheld on vested restricted stock awards. In the first nine months of fiscal 2009, the Company repurchased approximately 2.0 million shares of its common stock for a total cost of approximately $66.6 million, bringing the aggregate total of common stock repurchased to approximately 56.9million shares for a total cost of approximately $2.1 billion since the initial authorization in December2004. |
| Earnings Per Share | |
| 9 Months Ended
Nov. 28, 2009 USD / shares | |
| Notes to Consolidated Financial Statements | |
| Earnings Per Share | 9) Earnings Per Share The Company presents earnings per share on a basic and diluted basis. Basic earnings per share is computed by dividing net earnings by the weighted average number of shares outstanding. Diluted earnings per share is computed by dividing net earnings by the weighted average number of shares outstanding including the dilutive effect of stock-based awards as calculated under the treasury stock method. Stock-based awards for the three and nine months ended November28, 2009 of approximately 8.4 million and 12.1 million shares, respectively, and for the three and nine months ended November29, 2008 of approximately 15.5 million and 15.2 million shares, respectively, were excluded from the computation of diluted earnings per share as the effect would be anti-dilutive. |
| Lines of Credit | |
| 9 Months Ended
Nov. 28, 2009 USD / shares | |
| Notes to Consolidated Financial Statements | |
| Lines of Credit | 10) Lines of Credit At November28, 2009, the Company maintained two uncommitted lines of credit of $100 million each, with expiration dates of February26, 2010 and September3, 2010, respectively. These uncommitted lines of credit are currently and are expected to be used for letters of credit in the ordinary course of business. As of November28, 2009, the Company did not have any direct borrowings under the uncommitted lines of credit. Although no assurances can be provided, the Company intends to renew both uncommitted lines of credit before the respective expiration dates. |
| Supplemental Cash Flow Information | |
| 9 Months Ended
Nov. 28, 2009 USD / shares | |
| Notes to Consolidated Financial Statements | |
| Supplemental Cash Flow Information | 11) Supplemental Cash Flow Information The Company paid income taxes of $246.1 million and $214.4 million in the first nine months of fiscal 2009 and 2008, respectively. The Company recorded an accrual for capital expenditures of $18.9 million and $16.3 million as of November28, 2009 and November29, 2008, respectively. |
| Document and Entity Information (USD $) | |||||||||||||||||||
| 9 Months Ended
Nov. 28, 2009 | Aug. 30, 2008
| ||||||||||||||||||
| Document and Entity Information | |||||||||||||||||||
| Entity Registrant Name | BED BATH & BEYOND INC | ||||||||||||||||||
| Entity Central Index Key | 0000886158 | ||||||||||||||||||
| Document Type | 10-Q | ||||||||||||||||||
| Document Period End Date | 2009-11-28 | ||||||||||||||||||
| Amendment Flag | false | ||||||||||||||||||
| Current Fiscal Year End Date | --02-27 | ||||||||||||||||||
| Entity Well-known Seasoned Issuer | Yes | ||||||||||||||||||
| Entity Voluntary Filers | No | ||||||||||||||||||
| Entity Current Reporting Status | Yes | ||||||||||||||||||
| Entity Filer Category | Large Accelerated Filer | ||||||||||||||||||
| Entity Public Float | $7,430,283,934 | [1] | |||||||||||||||||
| Entity Common Stock, Shares Outstanding | 262,004,495 | ||||||||||||||||||
| [1]For purposes of this calculation, all outstanding shares of common stock have been considered held by non-affiliates other than the 17,353,465 shares beneficially owned by directors and executive officers, including in the case of the Co-Chairmen trusts and foundations affiliated with them. In making such calculation, the Registrant does not determine the affiliate or non-affiliate status of any shares for any other purpose. | |||||||||||||||||||
