20230930-DK-Butterfly-1 (BBBYQ) 10-K 27 Apr 10 2009 FY Annual report Financial data

Consolidated Balance Sheets

Consolidated Balance Sheets (USD $)
In Thousands	12 Months Ended Feb. 27, 2010	12 Months Ended Feb. 28, 2009
Current assets:
Cash and cash equivalents	$1,096,100	$668,209
Short term investment securities	431,476	2,000
Merchandise inventories	1,759,703	1,642,339
Other current assets	276,066	250,251
Total current assets	3,563,345	2,562,799
Long term investment securities	132,860	221,134
Property and equipment, net	1,119,292	1,148,435
Other assets	336,633	336,475
Total assets	5,152,130	4,268,843
Current liabilities:
Accounts payable	611,163	514,734
Accrued expenses and other current liabilities	281,730	247,508
Merchandise credit and gift card liabilities	172,804	165,621
Current income taxes payable	83,857	25,105
Total current liabilities	1,149,554	952,968
Deferred rent and other liabilities	246,273	227,209
Income taxes payable	103,399	88,212
Total liabilities	1,499,226	1,268,389
Commitments and contingencies
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 320,553 and 314,678 shares, respectively; outstanding 262,898 and 259,701 shares, respectively	3,206	3,147
Additional paid-in capital	1,020,515	878,568
Retained earnings	4,754,954	4,154,921
Treasury stock, at cost	(2,126,499)	(2,031,642)
Accumulated other comprehensive income (loss)	728	(4,540)
Total shareholders' equity	3,652,904	3,000,454
Total liabilities and shareholders' equity	$5,152,130	$4,268,843

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) (USD $)
Share data in Thousands, except Per Share data	Feb. 27, 2010	Feb. 28, 2009
Consolidated Balance Sheets
Preferred stock, par value (in dollars per share)	0.01	0.01
Preferred stock, authorized shares	1,000	1,000
Preferred stock, issued shares	0	0
Preferred stock, outstanding shares	0	0
Common stock, par value (in dollars per share)	0.01	0.01
Common stock, authorized shares	900,000	900,000
Common stock, issued shares	320,553	314,678
Common stock, outstanding shares	262,898	259,701

Consolidated Statements of Earn

Consolidated Statements of Earnings (USD $)
In Thousands, except Per Share data	12 Months Ended Feb. 27, 2010	12 Months Ended Feb. 28, 2009	12 Months Ended Mar. 01, 2008
Consolidated Statements of Earnings
Net sales	$7,828,793	$7,208,340	$7,048,942
Cost of sales	4,620,674	4,335,104	4,123,711
Gross profit	3,208,119	2,873,236	2,925,231
Selling, general and administrative expenses	2,227,432	2,199,340	2,087,209
Operating profit	980,687	673,896	838,022
Interest income	4,568	9,412	27,210
Earnings before provision for income taxes	985,255	683,308	865,232
Provision for income taxes	385,222	258,185	302,424
Net earnings	$600,033	$425,123	$562,808
Net earnings per share - Basic (in dollars per share)	2.33	1.66	2.13
Net earnings per share - Diluted (in dollars per share)	2.3	1.64	2.1
Weighted average shares outstanding - Basic (in shares)	257,755	256,410	264,824
Weighted average shares outstanding - Diluted (in shares)	260,375	258,619	268,409

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity (USD $)
In Thousands	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Income (Loss)	Total
Balance (in shares) at Mar. 03, 2007	309,750			(32,676)
Balance at Mar. 03, 2007	$3,098	$737,209	$3,153,856	($1,249,397)	$4,385	$2,649,151
Adoption of updated accounting guidance related to income taxes			13,102			13,102
Comprehensive Income (Loss):
Net earnings			562,808			562,808
Change in temporary impairment of auction rate securities, net of taxes					(4,516)	(4,516)
Pension adjustment, net of taxes					(736)	(736)
Currency translation adjustment					(171)	(171)
Comprehensive Income						557,385
Shares sold under employee stock option plans, including tax benefit	14	31,367				31,381
Shares sold under employee stock option plans, including tax benefit (in shares)	1,463
Issuance of restricted shares, net	10	(10)
Issuance of restricted shares, net (in shares)	1,016
Stock-based compensation expense, net		45,002				45,002
Repurchase of common stock, including fees				(734,193)		(734,193)
Repurchase of common stock, including fees (in shares)				(20,633)
Balance at Mar. 01, 2008	3,122	813,568	3,729,766	(1,983,590)	(1,038)	2,561,828
Balance (in shares) at Mar. 01, 2008	312,229			(53,309)
Comprehensive Income (Loss):
Net earnings			425,123			425,123
Change in temporary impairment of auction rate securities, net of taxes					(615)	(615)
Unrealized loss included in net earnings, net of taxes					3,528	3,528
Pension adjustment, net of taxes					(4,593)	(4,593)
Currency translation adjustment					(1,822)	(1,822)
Comprehensive Income						421,621
Shares sold under employee stock option plans, including tax benefit	12	19,910				19,922
Shares sold under employee stock option plans, including tax benefit (in shares)	1,218
Issuance of restricted shares, net	13	(13)
Issuance of restricted shares, net (in shares)	1,224
Stock-based compensation expense, net		44,906				44,906
Director fees paid in stock		197				197
Director fees paid in stock (in shares)	7
Repurchase of common stock, including fees				(48,052)		(48,052)
Repurchase of common stock, including fees (in shares)				(1,668)
Effect of change in pension plan measurement date			32			32
Balance at Feb. 28, 2009	3,147	878,568	4,154,921	(2,031,642)	(4,540)	3,000,454
Balance (in shares) at Feb. 28, 2009	314,678			(54,977)
Comprehensive Income (Loss):
Net earnings			600,033			600,033
Change in temporary impairment of auction rate securities, net of taxes					325	325
Pension adjustment, net of taxes					1,260	1,260
Currency translation adjustment					3,683	3,683
Comprehensive Income						605,301
Shares sold under employee stock option plans, including tax benefit	45	96,431				96,476
Shares sold under employee stock option plans, including tax benefit (in shares)	4,503
Issuance of restricted shares, net	14	(14)
Issuance of restricted shares, net (in shares)	1,369
Stock-based compensation expense, net		45,411				45,411
Director fees paid in stock		119				119
Director fees paid in stock (in shares)	3
Repurchase of common stock, including fees				(94,857)		(94,857)
Repurchase of common stock, including fees (in shares)				(2,678)
Balance at Feb. 27, 2010	$3,206	$1,020,515	$4,754,954	($2,126,499)	$728	$3,652,904
Balance (in shares) at Feb. 27, 2010	320,553			(57,655)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (USD $)
In Thousands	12 Months Ended Feb. 27, 2010	12 Months Ended Feb. 28, 2009	12 Months Ended Mar. 01, 2008
Cash Flows from Operating Activities:
Net earnings	$600,033	$425,123	$562,808
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation	184,232	175,601	157,770
Amortization of bond premium			1,538
Stock-based compensation	44,235	43,708	43,755
Tax benefit from stock-based compensation	(5,986)	(1,183)	2,719
Deferred income taxes	(22,811)	(22,325)	2,315
Other	(405)	476
(Increase) decrease in assets, net of effect of acquisition:
Merchandise inventories	(117,364)	(25,358)	(96,673)
Trading investment securities	(5,610)	(17)	(3,020)
Other current assets	(4,397)	(3,065)	(16,217)
Other assets	526	(954)	529
Increase (decrease) in liabilities, net of effect of acquisition:
Accounts payable	96,279	(40,863)	(31,764)
Accrued expenses and other current liabilities	37,905	(13,301)	15,774
Merchandise credit and gift card liabilities	7,183	(5,631)	24,430
Income taxes payable	70,487	24,676	(74,530)
Deferred rent and other liabilities	21,100	27,083	25,102
Net cash provided by operating activities	905,407	583,970	614,536
Cash Flows from Investing Activities:
Purchase of held-to-maturity investment securities	(403,582)
Redemption of held-to-maturity investment securities	30,025		494,526
Purchase of available-for-sale investment securities			(1,495,155)
Redemption of available-for-sale investment securities	38,545	107,550	1,546,430
Capital expenditures	(153,680)	(215,859)	(358,210)
Investment in unconsolidated joint venture, including fees		(4,786)
Payment for acquisition, net of cash acquired			(85,893)
Net cash (used in) provided by investing activities	(488,692)	(113,095)	101,698
Cash Flows from Financing Activities:
Proceeds from exercise of stock options	99,727	17,650	22,672
Excess tax benefit from stock-based compensation	6,306	3,652	5,990
Repurchase of common stock, including fees	(94,857)	(48,052)	(734,193)
Net cash provided by (used in) financing activities	11,176	(26,750)	(705,531)
Net increase in cash and cash equivalents	427,891	444,125	10,703
Cash and cash equivalents:
Beginning of period	668,209	224,084	213,381
End of period	$1,096,100	$668,209	$224,084

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RELATED MATTERS
	12 Months Ended Feb. 27, 2010
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RELATED MATTERS
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RELATED MATTERS	1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RELATED MATTERS A. Nature of Operations Bed Bath Beyond Inc. and subsidiaries (the Company) is a chain of retail stores, operating under the names Bed Bath Beyond (BBB), Christmas Tree Shops (CTS), Harmon and Harmon Face Values (Harmon) and buybuy BABY, which was acquired on March22, 2007. (See Acquisition, Note 2). In addition, the Company is a partner in a joint venture which operates two stores in the Mexico City market under the name Home More. The Company sells a wide assortment of domestics merchandise and home furnishings, which include food, giftware, health and beauty care items and infant and toddler merchandise. As the Company operates in the retail industry, its results of operations are affected by general economic conditions and consumer spending habits. B. Fiscal Year The Companys fiscal year is comprised of the 52 or 53 week period ending on the Saturday nearest February28. Accordingly, fiscal 2009, 2008, and 2007 represented 52 weeks and ended on February27, 2010, February28, 2009 and March1, 2008, respectively. C. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. All significant intercompany balances and transactions have been eliminated in consolidation. D. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires the Company to establish accounting policies and to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on historical experience and on other assumptions that it believes to be relevant under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. In particular, judgment is used in areas such as impairment of auction rate securities, inventory valuation, impairment of long-lived assets, goodwill and other indefinitely lived intangible assets, accruals for self insurance, litigation, store opening, expansion, relocation and closing costs, the provision for sales returns, vendor allowances, stock-based compensation and income taxes. Actual results could differ from these estimates. E. 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 5 business days, of $56.0 million and $51.8 million as of February27, 2010 and February28, 2009, respectively. F. Investment Securities Investment securities consist primarily of U.S. Treasury Bills with remaining maturities of less than one year and auction rate securities, which are securities

ACQUISITION

ACQUISITION
	12 Months Ended Feb. 27, 2010
ACQUISITION
ACQUISITION	2. ACQUISITION On March22, 2007, the Company completed and announced the acquisition of buybuy BABY, a retailer of infant and toddler merchandise, for approximately $67 million (net of cash acquired) and repayment of debt of approximately $19 million. Based in Garden City, New York, buybuy BABY operated a total of 8 stores at the time of acquisition, in Maryland, New Jersey, New York and Virginia. The stores range in size from approximately 28,000 to 60,000 square feet and offer a broad assortment of premier infant and toddler merchandise in categories including furniture, car seats, strollers, feeding, bedding, bath, health and safety essentials, toys, learning and development products, clothing and a unique selection of seasonal and holiday products. (See Transactions and Balances with Related Parties, Note 8). The results of buybuy BABYs operations, which are not material, have been included in the consolidated financial statements since the date of acquisition.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT
	12 Months Ended Feb. 27, 2010
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT	3. PROPERTY AND EQUIPMENT Property and equipment consist of the following: February27, February28, (in thousands) 2010 2009 Land and buildings $ 229,954 $ 211,069 Furniture, fixtures and equipment 830,734 774,087 Leasehold improvements 895,581 844,356 Computer equipment and software 401,359 372,720 2,357,628 2,202,232 Less: Accumulated depreciation and amortization (1,238,336 ) (1,053,797 ) $ 1,119,292 $ 1,148,435

LINES OF CREDIT

LINES OF CREDIT
	12 Months Ended Feb. 27, 2010
LINES OF CREDIT
LINES OF CREDIT	4. LINES OF CREDIT At February27, 2010, the Company maintained two uncommitted lines of credit of $100 million each, with expiration dates of September3, 2010 and February28, 2011, respectively. These uncommitted lines of credit are currently and are expected to be used for letters of credit in the ordinary course of business. During fiscal 2009, the Company did not have any direct borrowings under the uncommitted lines of credit. As of February27, 2010, there was approximately $6.1 million of outstanding letters of credit. Although no assurances can be provided, the Company intends to renew both uncommitted lines of credit before the respective expiration dates. In addition, as of February27, 2010, the Company maintained unsecured standby letters of credit of $55.0 million, primarily for certain insurance programs. At February28, 2009, the Company maintained two uncommitted lines of credit of $100 million each. These uncommitted lines of credit were utilized for letters of credit in the ordinary course of business. During fiscal 2008, the Company did not have any direct borrowings under the uncommitted lines of credit. As of February28, 2009, there was approximately $7.1 million of outstanding letters of credit and approximately $45.5 million of outstanding unsecured standby letters of credit, primarily for certain insurance programs.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS
	12 Months Ended Feb. 27, 2010
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	5. 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 February27, 2010, 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 6). 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 gr

INVESTMENT SECURITIES

INVESTMENT SECURITIES
	12 Months Ended Feb. 27, 2010
INVESTMENT SECURITIES
INVESTMENT SECURITIES	6. INVESTMENT SECURITIES The Companys investment securities as of February27, 2010 and February28, 2009 are as follows: (in millions) February27, 2010 February28, 2009 Available-for-sale securities: Short term $ 15.0 $ 2.0 Long term 120.8 171.4 Trading securities: Short term 40.5 Long term 12.1 47.8 Held-to-maturity securities: Short term 373.6 Long term 0.1 Put option: Short term 2.3 Long term 1.8 Total investment securities $ 564.3 $ 223.1 Auction Rate Securities As of February27, 2010 and February28, 2009, the Companys available-for-sale investment securities represented approximately $137.9 million and approximately $176.0 million par value of auction rate securities, respectively, less temporary valuation adjustments of approximately $2.1 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 February27, 2010 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 February27, 2010 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 $120.8 million and $171.4 million of these investments as long term investment securities at February27, 2010 and February28, 2009, respectively. In addition, the Company classified approximately $15.0 million of these securities as short term investment securities at February27, 2010 due to expected redemptions at par during the first half of fiscal 2010. As of February27, 2010 and February28, 2009, the Companys trading investment securities included approximately $40.5 million at fair value ($42.8 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 February27, 2010 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 February27, 2010 and February28, 2009. During 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 fiscal 2008,

PROVISION FOR INCOME TAXES

PROVISION FOR INCOME TAXES
	12 Months Ended Feb. 27, 2010
PROVISION FOR INCOME TAXES
PROVISION FOR INCOME TAXES	7. PROVISION FOR INCOME TAXES The components of the provision for income taxes are as follows: FISCAL YEAR ENDED (in thousands) February27, 2010 February28, 2009 March1, 2008 Current: Federal $ 346,875 $ 233,216 $ 276,986 State and local 61,080 47,294 23,123 407,955 280,510 300,109 Deferred: Federal (17,851 ) (19,419 ) 5,483 State and local (4,882 ) (2,906 ) (3,168 ) (22,733 ) (22,325 ) 2,315 $ 385,222 $ 258,185 $ 302,424 At February27, 2010 and February28, 2009, included in other current assets and in other assets is a net current deferred income tax asset of $167.2 million and $145.8 million, respectively, and a net noncurrent deferred income tax asset of $96.6 million and $96.2 million, respectively. These amounts represent the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The significant components of the Companys deferred tax assets and liabilities consist of the following: February27, February28, (in thousands) 2010 2009 Deferred tax assets: Inventories $ 34,659 $ 23,904 Deferred rent and other rent credits 64,707 59,785 Insurance 44,386 40,198 Stock-based compensation 60,994 65,081 Merchandise credits and gift card liabilities 27,409 33,539 Accrued expenses 64,388 57,113 Other 25,543 17,637 Deferred tax liabilities: Depreciation (15,593 ) (20,841 ) Goodwill (25,648 ) (20,502 ) Other (17,000 ) (13,918 ) $ 263,845 $ 241,996 The Company has not established a valuation allowance for the net deferred tax asset as it is considered more likely than not that it is realizable through a combination of future taxable income, the deductibility of future net deferred tax liabilities and tax planning strategies. The Company adopted updated accounting guidance related to income taxes on March4, 2007 (Adoption Date). This guidance addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. The Company may recognize the tax benefit from uncertain tax positions only if it is at least more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon settlement with the taxing authorities. This guidance also provided direction on derecognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. Upon adoption of this accounting guidance, the Company recognized a $13.1 million increase to retained earnings to reflect the change to its liability fo

TRANSACTIONS AND BALANCES WITH

TRANSACTIONS AND BALANCES WITH RELATED PARTIES
	12 Months Ended Feb. 27, 2010
TRANSACTIONS AND BALANCES WITH RELATED PARTIES
TRANSACTIONS AND BALANCES WITH RELATED PARTIES	8. TRANSACTIONS AND BALANCES WITH RELATED PARTIES A. In fiscal 2002, the Company had an interest in certain life insurance policies on the lives of its Co-Chairmen and their spouses. The Companys interest in these policies was equivalent to the net premiums paid by the Company. The agreements relating to the Companys interest in the life insurance policies on the lives of its Co-Chairmen and their spouses were terminated in fiscal 2003. Upon termination in fiscal 2003, the Co-Chairmen paid to the Company $5.4 million, representing the total amount of premiums paid by the Company under the agreements and the Company was released from its contractual obligation to make substantial future premium payments. In order to confer a benefit to its Co-Chairmen in substitution for the aforementioned terminated agreements, the Company has agreed to pay to the Co-Chairmen, at a future date, an aggregate amount of $4.2 million, which is included in accrued expenses and other current liabilities as of February27, 2010 and February28, 2009. B. In fiscal 2009, 2008 and 2007, the Company leased office and retail space from entities controlled by management of CTS. In fiscal 2009, 2008 and 2007, the Company leased retail space from entities controlled by management of buybuy BABY. The Company paid such entities occupancy costs of approximately $6.9 million, $7.1 million and $7.1 million in fiscal 2009, 2008 and 2007, respectively. C. On March22, 2007, the Company acquired buybuy BABY, a retailer of infant and toddler merchandise, for approximately $67 million (net of cash acquired) and repayment of debt of approximately $19 million. buybuy BABY was founded in 1996 by Richard and Jeffrey Feinstein, both of whom were previously employed by the Company, and are the sons of Leonard Feinstein, one of the Companys Co-Chairmen. The aforementioned repayment of approximately $19 million of debt resulted in the retirement of all indebtedness of buybuy BABY, which debt was held by Richard and Jeffrey Feinstein (approximately $16 million) and Leonard Feinstein (approximately $3 million). The Companys Co-Chairmen, Leonard Feinstein and Warren Eisenberg, recused themselves from deliberations relating to the transaction.

LEASES

LEASES
	12 Months Ended Feb. 27, 2010
LEASES
LEASES	9. LEASES The Company leases retail stores, as well as warehouses, office facilities and equipment, under agreements expiring at various dates through 2041. Certain leases provide for contingent rents (which are based upon store sales exceeding stipulated amounts and are immaterial in fiscal 2009, 2008 and 2007), scheduled rent increases and renewal options. The Company is obligated under a majority of the leases to pay for taxes, insurance and common area maintenance charges. As of February27, 2010, future minimum lease payments under non-cancelable operating leases are as follows: Amount Fiscal Year (in thousands) 2010 $ 440,751 2011 415,301 2012 378,101 2013 336,817 2014 289,384 Thereafter 1,195,909 Total future minimum lease payments $ 3,056,263 Expenses for all operating leases were $423.3 million, $405.5 million and $380.5 million for fiscal 2009, 2008 and 2007, respectively.

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS
	12 Months Ended Feb. 27, 2010
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS	10. EMPLOYEE BENEFIT PLANS Defined Contribution Plans The Company has four defined contribution savings plans covering all eligible employees of the Company (the Plans). Participants of the Plans may defer annual pre-tax compensation subject to statutory and Plan limitations. In addition, a certain percentage of an employees contributions are matched by the Company and vest over a specified period of time, subject to certain statutory and Plan limitations. The Companys match was approximately $7.6 million, $6.9 million and $5.9 million for fiscal 2009, 2008 and 2007, respectively, which was expensed as incurred. Nonqualified Deferred Compensation Plan The Company has a nonqualified deferred compensation plan (NQDC) for the benefit of employees defined by the Internal Revenue Service as highly compensated. Participants of the NQDC may defer annual pre-tax compensation subject to statutory and plan limitations. In addition, a certain percentage of an employees contributions may be matched by the Company and vest over a specified period of time, subject to certain plan limitations. The Companys match was approximately $0.4 million, $0.4 million and $0.7 million for fiscal 2009, 2008 and 2007, respectively, which was expensed as incurred. Changes in the fair value of the trading securities related to the NQDC and the corresponding change in the associated liability are included within interest income and selling, general and administrative expenses respectively, in the consolidated statements of earnings. Historically, these changes have resulted in no impact to the consolidated statements of earnings. Defined Benefit Plan The Company has a non-contributory defined benefit pension plan for the CTS employees, hired on or before July31, 2003, who meet specified age and length-of-service requirements. The benefits are based on years of service and the employees compensation near retirement. The Company recognizes the overfunded or underfunded status of the pension plan as an asset or liability in its statement of financial position and recognizes changes in the funded status in the year in which the changes occur. In fiscal 2008, the Company adopted a fiscal year end measurement date and recorded an immaterial adjustment to retained earnings; prior to fiscal 2008, the Company utilized a December31 measurement date. For the years ended February27, 2010, February28, 2009 and March1, 2008, the net periodic pension cost was not material to the Companys results of operations. The Company has a $6.8 million and $7.2 million liability, which is included in deferred rent and other liabilities as of February27, 2010 and February28, 2009, respectively. In addition, as of February27, 2010 and February28, 2009, the Company recognized a gain of $0.3 million, net of taxes of $0.2 million, and a loss of $0.9 million, net of taxes of $0.5 million, respectively, within accumulated other comprehensive income (loss).

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES
	12 Months Ended Feb. 27, 2010
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	11. COMMITMENTS AND CONTINGENCIES The Company maintains employment agreements with its Co-Chairmen, which extend through June2010. The agreements provide for a base salary (which may be increased by the Board of Directors), termination payments, postretirement benefits and other terms and conditions of employment. In addition, the Company maintains employment agreements with other executives which provide for severance pay and, in some instances, certain other supplemental retirement benefits. The Company is involved in various claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Companys consolidated financial position, results of operations or liquidity.

SUPPLEMENTAL CASH FLOW INFORMAT

SUPPLEMENTAL CASH FLOW INFORMATION
	12 Months Ended Feb. 27, 2010
SUPPLEMENTAL CASH FLOW INFORMATION
SUPPLEMENTAL CASH FLOW INFORMATION	12. SUPPLEMENTAL CASH FLOW INFORMATION The Company paid income taxes of $338.9 million, $261.3 million and $359.9 million in fiscal 2009, 2008 and 2007, respectively. The Company recorded an accrual for capital expenditures of $21.7 million, $21.6 million and $36.6 million as of February27, 2010, February28, 2009 and March1, 2008, respectively.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION
	12 Months Ended Feb. 27, 2010
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION	13. 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 fiscal year ended February27, 2010, February28, 2009 and March1, 2008 was approximately $44.2 million ($26.9 million after tax or $0.10 per diluted share), approximately $43.7 million ($27.2 million after tax or $0.11 per diluted share) and approximately $43.8 million ($28.4 million after tax or $0.11 per diluted share), respectively. In addition, the amount of stock-based compensation cost capitalized for each of the years ended February27, 2010 and February28, 2009 was approximately $1.2 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. Prior to fiscal 2004, the Company had adopted various stock option plans (the Prior Plans), all of which solely provided for the granting of stock options. Upon adoption of the 2004 Plan, the common stock available under the Prior Plans become available for issuance under the 2004 Plan. No further option grants may be made under the Prior Plans, although outstanding awards under the Prior Plans will continue to be in effect. Under the 2004 Plan and the Prior Plans, an aggregate of 83.4 million shares of common stock were authorized for issuance. The Company generally issues new shares for stock option exercises and restricted stock awards. As of February27, 2010, unrecognized compensation expense related to the unvested portion of the Companys stock options and restricted stock awards was $25.9 million and $96.9 million, respectively, which is expected to be recognized over a weighted average period of 2.5 years and 4.3 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 th

SUMMARY OF QUARTERLY RESULTS

SUMMARY OF QUARTERLY RESULTS (UNAUDITED)
	12 Months Ended Feb. 27, 2010
SUMMARY OF QUARTERLY RESULTS (UNAUDITED)
SUMMARY OF QUARTERLY RESULTS (UNAUDITED)	14. SUMMARY OF QUARTERLY RESULTS (UNAUDITED) FISCAL 2009 QUARTER ENDED FISCAL 2008 QUARTER ENDED (in thousands, except per share data) May30, 2009 August29, 2009 November28, 2009 February27, 2010 May31, 2008 August30, 2008 November29, 2008 February28, 2009 Net sales $ 1,694,340 $ 1,914,909 $ 1,975,465 $ 2,244,079 $ 1,648,491 $ 1,853,892 $ 1,782,683 $ 1,923,274 Gross profit 666,818 773,393 812,412 955,496 656,000 739,321 692,857 785,058 Operating profit 142,304 222,031 245,611 370,741 118,819 187,421 136,374 231,282 Earnings before provision for income taxes 144,071 223,507 246,348 371,329 123,349 190,367 137,770 231,822 Provision for income taxes 56,899 87,976 95,060 145,287 46,572 71,099 50,070 90,444 Net earnings $ 87,172 $ 135,531 $ 151,288 $ 226,042 $ 76,777 $ 119,268 $ 87,700 $ 141,378 EPS-Basic (1) $ 0.34 $ 0.53 $ 0.59 $ 0.88 $ 0.30 $ 0.46 $ 0.34 $ 0.55 EPS-Diluted (1) $ 0.34 $ 0.52 $ 0.58 $ 0.86 $ 0.30 $ 0.46 $ 0.34 $ 0.55 (1)Net earnings per share (EPS) amounts for each quarter are required to be computed independently and may not equal the amount computed for the total year.

Schedule II - Valuation and Qua

Schedule II - Valuation and Qualifying Accounts
	12 Months Ended Feb. 27, 2010
Schedule II - Valuation and Qualifying Accounts
Schedule II - Valuation and Qualifying Accounts	Bed Bath Beyond Inc. and Subsidiaries Schedule II - Valuation and Qualifying Accounts Fiscal Years Ended February27, 2010, February28, 2009, and March1, 2008 (amounts in millions) Column A Column B Column C Column C Column D Column E Balance at Additions Additions Adjustments Balance at Beginning of Charged to Charged to and/or End of Description Period Income Other Accounts Deductions Period Sales Returns and Allowance Year Ended: February27, 2010 $ 17.8 $ 504.7 $ $ 493.5 $ 29.0 February28, 2009 14.5 446.7 443.4 17.8 March1, 2008 15.1 382.2 382.8 14.5

Document and Entity Information

Document and Entity Information (USD $)
	12 Months Ended Feb. 27, 2010	Mar. 27, 2010	Aug. 29, 2009
Document and Entity Information
Entity Registrant Name	BED BATH & BEYOND INC
Entity Central Index Key	0000886158
Document Type	10-K
Document Period End Date	2010-02-27
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			$9,193,094,656	[1]
Entity Common Stock, Shares Outstanding		263,260,391
Document Fiscal Year Focus	2,009
Document Fiscal Period Focus	FY
[1]For purposes of this calculation, all outstanding shares of common stock have been considered held by non-affiliates other than the 15,160,275 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.