Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended |
31-May-14 | |
Document and Entity Information [Abstract] | ' |
Entity Registrant Name | 'BED BATH & BEYOND INC |
Document Type | '10-Q |
Current Fiscal Year End Date | '--02-28 |
Entity Common Stock, Shares Outstanding | 201,953,919 |
Amendment Flag | 'false |
Entity Central Index Key | '0000886158 |
Entity Current Reporting Status | 'Yes |
Entity Voluntary Filers | 'No |
Entity Filer Category | 'Large Accelerated Filer |
Entity Well-known Seasoned Issuer | 'Yes |
Document Period End Date | 31-May-14 |
Document Fiscal Year Focus | '2014 |
Document Fiscal Period Focus | 'Q1 |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | 31-May-14 | Mar. 01, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $536,568 | $366,516 |
Short term investment securities | 176,242 | 489,331 |
Merchandise inventories | 2,699,722 | 2,578,956 |
Other current assets | 422,717 | 379,807 |
Total current assets | 3,835,249 | 3,814,610 |
Long term investment securities | 89,746 | 87,393 |
Property and equipment, net | 1,559,880 | 1,579,804 |
Goodwill | 486,279 | 486,279 |
Other assets | 391,174 | 387,947 |
Total assets | 6,362,328 | 6,356,033 |
Current liabilities: | ' | ' |
Accounts payable | 1,108,449 | 1,104,668 |
Accrued expenses and other current liabilities | 369,039 | 385,954 |
Merchandise credit and gift card liabilities | 290,055 | 284,216 |
Current income taxes payable | 120,039 | 65,121 |
Total current liabilities | 1,887,582 | 1,839,959 |
Deferred rent and other liabilities | 489,334 | 486,996 |
Income taxes payable | 91,065 | 87,791 |
Total liabilities | 2,467,981 | 2,414,746 |
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 335,672 and 334,941 shares, respectively; outstanding 201,954 and 205,405 shares, respectively | 3,357 | 3,350 |
Additional paid-in capital | 1,708,520 | 1,673,217 |
Retained earnings | 8,782,954 | 8,595,902 |
Treasury stock, at cost; 133,718 and 129,536 shares, respectively | -6,590,218 | -6,317,335 |
Accumulated other comprehensive loss | -10,266 | -13,847 |
Total shareholders' equity | 3,894,347 | 3,941,287 |
Total liabilities and shareholders' equity | $6,362,328 | $6,356,033 |
Consolidated_Balance_Sheets_Un1
Consolidated Balance Sheets (Unaudited) (Parentheticals) (USD $) | 31-May-14 | Mar. 01, 2014 |
In Thousands, except Per Share data, unless otherwise specified | ||
Preferred stock par value (in Dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 1,000 | 1,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock par value (in Dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 900,000 | 900,000 |
Common stock, shares issued | 335,672 | 334,941 |
Common stock, shares outstanding | 201,954 | 205,405 |
Treasury stock, shares | 133,718 | 129,536 |
Consolidated_Statements_of_Ear
Consolidated Statements of Earnings (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | 31-May-14 | Jun. 01, 2013 |
Net sales | $2,656,698 | $2,612,140 |
Cost of sales | 1,625,813 | 1,579,169 |
Gross profit | 1,030,885 | 1,032,971 |
Selling, general and administrative expenses | 730,184 | 709,870 |
Operating profit | 300,701 | 323,101 |
Interest expense, net | 2,094 | 225 |
Earnings before provision for income taxes | 298,607 | 322,876 |
Provision for income taxes | 111,555 | 120,386 |
Net earnings | $187,052 | $202,490 |
Net earnings per share - Basic (in Dollars per share) | $0.94 | $0.94 |
Net earnings per share - Diluted (in Dollars per share) | $0.93 | $0.93 |
Weighted average shares outstanding - Basic (in Shares) | 199,619 | 215,451 |
Weighted average shares outstanding - Diluted (in Shares) | 202,096 | 218,335 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | 31-May-14 | Jun. 01, 2013 |
Net earnings | $187,052 | $202,490 |
Other comprehensive income (loss): | ' | ' |
Change in temporary impairment of auction rate securities, net of taxes | 38 | -222 |
Pension adjustment, net of taxes | 72 | 167 |
Currency translation adjustment | 3,471 | -1,633 |
Other comprehensive income (loss) | 3,581 | -1,688 |
Comprehensive income | $190,633 | $200,802 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | 31-May-14 | Jun. 01, 2013 |
Cash Flows from Operating Activities: | ' | ' |
Net earnings | $187,052 | $202,490 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ' | ' |
Depreciation | 58,371 | 52,697 |
Stock-based compensation | 18,162 | 14,803 |
Tax benefit from stock-based compensation | 5,913 | 10,213 |
Deferred income taxes | -21,855 | -17,229 |
Other | -298 | -302 |
Increase in assets, net of effect of acquisitions: | ' | ' |
Merchandise inventories | -120,766 | -74,509 |
Trading investment securities | -2,293 | -3,911 |
Other current assets | -22,331 | -24,518 |
Other assets | -1,780 | -3,898 |
Increase (decrease) in liabilities, net of effect of acquisitions: | ' | ' |
Accounts payable | 33,712 | 73,497 |
Accrued expenses and other current liabilities | -13,444 | -22,018 |
Merchandise credit and gift card liabilities | 5,839 | 11,464 |
Income taxes payable | 58,192 | 49,151 |
Deferred rent and other liabilities | 2,456 | 4,566 |
Net cash provided by operating activities | 186,930 | 272,496 |
Cash Flows from Investing Activities: | ' | ' |
Purchase of held-to-maturity investment securities | -39,369 | -369,268 |
Redemption of held-to-maturity investment securities | 352,500 | 337,500 |
Capital expenditures | -67,918 | -64,966 |
Net cash provided by (used in) investing activities | 245,213 | -96,734 |
Cash Flows from Financing Activities: | ' | ' |
Proceeds from exercise of stock options | 9,705 | 22,469 |
Excess tax benefit from stock-based compensation | 1,087 | 1,084 |
Repurchase of common stock, including fees | -272,883 | -324,436 |
Net cash used in financing activities | -262,091 | -300,883 |
Net increase (decrease) in cash and cash equivalents | 170,052 | -125,121 |
Cash and cash equivalents: | ' | ' |
Beginning of period | 366,516 | 564,971 |
End of period | $536,568 | $439,850 |
Note_1_Basis_of_Presentation
Note 1 - Basis of Presentation | 3 Months Ended |
31-May-14 | |
Disclosure Text Block [Abstract] | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' |
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 May 31, 2014 and March 1, 2014 and the results of its operations, comprehensive income and cash flows for the three months ended May 31, 2014 and June 1, 2013, 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 Bed Bath & Beyond Inc.'s Annual Report on Form 10-K for the fiscal year ended March 1, 2014 for additional disclosures, including a summary of the Company's significant accounting policies, and to subsequently filed Forms 8-K. | |
The Company accounts for its operations as two operating segments: North American Retail and Institutional Sales. The Institutional Sales operating segment, which is comprised of Linen Holdings, does not meet the quantitative thresholds under GAAP and therefore is not a reportable segment. | |
Note_2_Fair_Value_Measurements
Note 2 - Fair Value Measurements | 3 Months Ended |
31-May-14 | |
Fair Value Disclosures [Abstract] | ' |
Fair Value Disclosures [Text Block] | ' |
2) 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. | |
As of May 31, 2014, the Company’s financial assets utilizing Level 1 inputs include long term trading 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 long term investments in auction rate securities consisting of preferred shares of closed end municipal bond funds (See “Investment Securities,” Note 4). | |
Fair Value of Financial Instruments | |
The Company’s financial instruments include cash and cash equivalents, investment securities, accounts payable and certain other liabilities. The Company’s investment securities consist primarily of U.S. Treasury securities, which are stated at amortized cost, and auction rate securities, which are stated at their approximate fair value. The book value of all financial instruments is representative of their fair values. | |
Note_3_Cash_and_Cash_Equivalen
Note 3 - Cash and Cash Equivalents | 3 Months Ended |
31-May-14 | |
Cash and cash equivalents: [Abstract] | ' |
Cash and Cash Equivalents Disclosure [Text Block] | ' |
3) 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 $93.2 million and $87.4 million as of May 31, 2014 and March 1, 2014, respectively. | |
Note_4_Investment_Securities
Note 4 - Investment Securities | 3 Months Ended | ||||||||
31-May-14 | |||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | ' | ||||||||
4) Investment Securities | |||||||||
The Company’s investment securities as of May 31, 2014 and March 1, 2014 are as follows: | |||||||||
(in millions) | May 31, | March 1, | |||||||
2014 | 2014 | ||||||||
Available-for-sale securities: | |||||||||
Long term | $ | 47.7 | $ | 47.7 | |||||
Trading securities: | |||||||||
Long term | 42 | 39.7 | |||||||
Held-to-maturity securities: | |||||||||
Short term | 176.2 | 489.3 | |||||||
Total investment securities | $ | 265.9 | $ | 576.7 | |||||
Auction Rate Securities | |||||||||
As of May 31, 2014 and March 1, 2014, the Company’s available-for-sale investment securities represented approximately $51.0 million par value of auction rate securities, consisting of preferred shares of closed end municipal bond funds, less temporary valuation adjustments of approximately $3.3 million, respectively. Since these valuation adjustments are deemed to be temporary, they are recorded in accumulated other comprehensive loss, net of a related tax benefit, and did not affect the Company’s net earnings. | |||||||||
U.S. Treasury Securities | |||||||||
As of May 31, 2014 and March 1, 2014, the Company’s short term held-to-maturity securities included approximately $176.2 million and approximately $489.3 million, respectively, of U.S. Treasury Bills with remaining maturities of less than one year. These securities are stated at their amortized cost which approximates fair value, which is based on quoted prices in active markets for identical instruments (i.e., Level 1 valuation). | |||||||||
Long Term Trading Investment Securities | |||||||||
The Company’s long term trading investment securities, which are provided as investment options to the participants of the nonqualified deferred compensation plan, are stated at fair market value. The values of these trading investment securities included in the table above are approximately $42.0 million and $39.7 million as of May 31, 2014 and March 1, 2014, respectively. | |||||||||
Note_5_Property_and_Equipment
Note 5 - Property and Equipment | 3 Months Ended |
31-May-14 | |
Property, Plant and Equipment [Abstract] | ' |
Property, Plant and Equipment Disclosure [Text Block] | ' |
5) Property and Equipment | |
As of May 31, 2014 and March 1, 2014, included in property and equipment, net is accumulated depreciation and amortization of approximately $2.1 billion and $2.0 billion, respectively. | |
Note_6_StockBased_Compensation
Note 6 - Stock-Based Compensation | 3 Months Ended | ||||||||
31-May-14 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||
6) Stock-Based Compensation | |||||||||
The Company measures all employee stock-based compensation awards using a fair value method and records such expense, net of estimated forfeitures, in its consolidated financial statements. Currently, the Company’s stock-based compensation relates to restricted stock awards, stock options and performance share units. The Company’s restricted stock awards are considered nonvested share awards. | |||||||||
Stock-based compensation expense for the three months ended May 31, 2014 and June 1, 2013 was approximately $18.2 million ($11.4 million after tax or $0.06 per diluted share) and approximately $14.8 million ($9.3 million after tax or $0.04 per diluted share), respectively. In addition, the amount of stock-based compensation cost capitalized for the three months ended May 31, 2014 and June 1, 2013 was approximately $0.4 million. | |||||||||
Incentive Compensation Plans | |||||||||
The Company currently grants awards under the Bed Bath & Beyond 2012 Incentive Compensation Plan (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 and the ability to grant incentive stock options. Outstanding awards that were covered by the 2004 Plan continue to be in effect under the 2012 Plan. | |||||||||
The 2012 Plan is a flexible compensation plan that enables 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, including cash awards. Under the 2012 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. Awards of performance share units generally vest over a period of four years from the date of grant dependent on the Company’s achievement of performance-based tests and subject, in general, to the executive remaining in the Company's service on specified vesting dates. | |||||||||
The Company generally issues new shares for stock option exercises, restricted stock awards and vesting of performance share units. As of May 31, 2014, unrecognized compensation expense related to the unvested portion of the Company’s stock options, restricted stock awards and performance share units was $33.6 million, $148.0 million and $23.7 million, respectively, which is expected to be recognized over a weighted average period of 3.4 years, 4.1 years and 3.2 years, respectively. | |||||||||
Stock Options | |||||||||
Stock option grants are issued at fair market value on the date of grant and generally become exercisable in either three or five equal annual installments beginning one year from the date of grant for options issued since May 10, 2010, and beginning one to three years from the date of grant for options issued prior to May 10, 2010, in each case, subject, in general to the recipient remaining in the Company’s service on specified vesting dates. Option grants expire eight years after the date of grant for stock options issued since May 10, 2004, and expire ten years after the date of grant for stock options issued prior to May 10, 2004. All option grants are nonqualified. | |||||||||
The fair value of the stock options granted is estimated on the date of the grant using a Black-Scholes option-pricing model that uses the assumptions noted in the following table. | |||||||||
Three Months Ended | |||||||||
Black-Scholes Valuation Assumptions (1) | 31-May-14 | 1-Jun-13 | |||||||
Weighted Average Expected Life (in years) (2) | 6.6 | 6.6 | |||||||
Weighted Average Expected Volatility (3) | 28.31 | % | 29.27 | % | |||||
Weighted Average Risk Free Interest Rates (4) | 2.11 | % | 1.11 | % | |||||
Expected Dividend Yield | - | - | |||||||
(1) Forfeitures are estimated based on historical experience. | |||||||||
(2) The expected life of stock options is estimated based on historical experience. | |||||||||
(3) Expected volatility is based on the average of historical and implied volatility. The historical volatility is determined by observing actual prices of the Company’s stock over a period commensurate with the expected life of the awards. The implied volatility represents the implied volatility of the Company’s call options, which are actively traded on multiple exchanges, had remaining maturities in excess of twelve months, had market prices close to the exercise prices of the employee stock options and were measured on the stock option grant date. | |||||||||
(4) Based on the U.S. Treasury constant maturity interest rate whose term is consistent with the expected life of the stock options. | |||||||||
Changes in the Company’s stock options for the three months ended May 31, 2014 were as follows: | |||||||||
(Shares in thousands) | Number of Stock Options | Weighted Average | |||||||
Exercise Price | |||||||||
Options outstanding, beginning of period | 4,192 | $ | 46.85 | ||||||
Granted | 523 | 62.34 | |||||||
Exercised | (252 | ) | 38.56 | ||||||
Forfeited or expired | - | - | |||||||
Options outstanding, end of period | 4,463 | $ | 49.13 | ||||||
Options exercisable, end of period | 2,765 | $ | 41.92 | ||||||
The weighted average fair value for the stock options granted during the first three months of fiscal 2014 and 2013 was $20.96 and $22.28, respectively. The weighted average remaining contractual term and the aggregate intrinsic value for options outstanding as of May 31, 2014 was 4.3 years and $62.2 million, respectively. The weighted average remaining contractual term and the aggregate intrinsic value for options exercisable as of May 31, 2014 was 3.1 years and $55.0 million, respectively. The total intrinsic value for stock options exercised during the first three months of fiscal 2014 and 2013 was $6.4 million and $15.5 million, respectively. | |||||||||
Net cash proceeds from the exercise of stock options for the first three months of fiscal 2014 were $9.7 million and the net associated income tax benefit was $7.0 million. | |||||||||
Restricted Stock | |||||||||
Restricted stock awards are issued and measured at fair market value on the date of grant and generally become vested in five equal annual installments beginning one to three years from the date of grant, subject, in general, to the recipient remaining in the Company’s service on specified vesting dates. Vesting of restricted stock awarded to certain of the Company’s executives is dependent on the Company’s achievement of a performance-based test for the fiscal year of grant and, assuming achievement of the performance-based test, time vesting, subject, in general, to the executive remaining in the Company’s service on specified vesting dates. The Company recognizes compensation expense related to these awards based on the assumption that the performance-based test will be achieved. Vesting of restricted stock awarded to the Company’s other employees is based solely on time vesting. | |||||||||
Changes in the Company’s restricted stock for the three months ended May 31, 2014 were as follows: | |||||||||
(Shares in thousands) | Number of Restricted | Weighted Average | |||||||
Shares | Grant-Date Fair | ||||||||
Value | |||||||||
Unvested restricted stock, beginning of period | 3,943 | $ | 53.66 | ||||||
Granted | 505 | 62.47 | |||||||
Vested | (820 | ) | 43.14 | ||||||
Forfeited | (26 | ) | 60.61 | ||||||
Unvested restricted stock, end of period | 3,602 | $ | 57.24 | ||||||
Performance Share Units | |||||||||
Performance share units (“PSUs”) are issued and measured at fair market value on the date of grant. Vesting of PSUs awarded to certain of the Company’s executives is dependent on the Company’s achievement of a performance-based test during a one-year period from the date of grant and during a three-year period from the date of grant and, assuming achievement of the performance-based test, time vesting, subject, in general, to the executive remaining in the Company’s service on specified vesting dates. Performance during the one-year period will be based on Earnings Before Income Tax (“EBIT”) margin relative to a peer group of the Company comprising 50 companies selected within the first 90 days of the performance period. Upon achievement of the one-year performance-based test, the corresponding PSUs will vest annually in substantially equal installments over a three year period starting one year from the date of grant. Performance during the three-year period will be based on Return on Invested Capital (“ROIC”) relative to such peer group. Upon achievement of the three-year performance-based test, the corresponding PSUs will vest on the fourth anniversary date of grant. The awards based on EBIT margin and ROIC are capped at 150% of target achievement, with a floor of zero. 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 assumption that 100% of the target award will be achieved and will evaluate this assumption quarterly and will adjust compensation expense related to these awards, as appropriate. Prior to the first quarter of fiscal 2014, the Company had not granted any PSUs. For the three months ended May 31, 2014, the Company granted 390,803 PSUs with a weighted average grant date fair value of $62.34. | |||||||||
Note_7_Shareholders_Equity
Note 7 - Shareholders' Equity | 3 Months Ended |
31-May-14 | |
Stockholders' Equity Note [Abstract] | ' |
Stockholders' Equity Note Disclosure [Text Block] | ' |
7) Shareholders’ Equity | |
Between December 2004 and December 2012, the Company’s Board of Directors authorized, through several share repurchase programs, the repurchase of $7.450 billion of its shares of common stock. The Company has authorization to make repurchases from time to time in the open market or through other parameters approved by the Board of Directors pursuant to existing rules and regulations. The Company also purchases shares of its common stock to cover employee related taxes withheld on vested restricted stock awards. In the first three months of fiscal 2014, the Company repurchased approximately 4.2 million shares of its common stock for a total cost of approximately $272.9 million, bringing the aggregate total of common stock repurchased to approximately 133.7 million shares for a total cost of approximately $6.6 billion since the initial authorization in December 2004. The Company has approximately $0.9 billion remaining of authorized share repurchases as of May 31, 2014. | |
Note_8_Earnings_Per_Share
Note 8 - Earnings Per Share | 3 Months Ended |
31-May-14 | |
Earnings Per Share [Abstract] | ' |
Earnings Per Share [Text Block] | ' |
8) 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 months ended May 31, 2014 and June 1, 2013 of approximately 2.2 million and 1.5 million, respectively, were excluded from the computation of diluted earnings per share as the effect would be anti-dilutive. | |
Note_9_Lines_of_Credit
Note 9 - Lines of Credit | 3 Months Ended |
31-May-14 | |
Line Of Credit Disclosure [Abstract] | ' |
Line Of Credit Disclosure [Text Block] | ' |
9) Lines of Credit | |
At May 31, 2014, the Company maintained two uncommitted lines of credit of $100 million each, with expiration dates of September 2, 2014 and February 28, 2015, 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 the first three months of fiscal 2014, 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. | |
Note_10_Supplemental_Cash_Flow
Note 10 - Supplemental Cash Flow Information | 3 Months Ended |
31-May-14 | |
Supplemental Cash Flow Elements [Abstract] | ' |
Cash Flow, Supplemental Disclosures [Text Block] | ' |
10) Supplemental Cash Flow Information | |
The Company paid income taxes of $69.9 million and $76.7 million in the first three months of fiscal 2014 and 2013, respectively. In addition, the Company had interest payments of approximately $2.3 million and $2.4 million in the first three months of fiscal 2014 and 2013, respectively. | |
The Company recorded an accrual for capital expenditures of $20.2 million and $27.4 million as of May 31, 2014 and June 1, 2013, respectively. | |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 3 Months Ended |
31-May-14 | |
Accounting Policies [Abstract] | ' |
Fair Value Measurement, Policy [Policy Text Block] | ' |
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. | |
As of May 31, 2014, the Company’s financial assets utilizing Level 1 inputs include long term trading 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 long term investments in auction rate securities consisting of preferred shares of closed end municipal bond funds (See “Investment Securities,” Note 4). | |
Fair Value of Financial Instruments, Policy [Policy Text Block] | ' |
Fair Value of Financial Instruments | |
The Company’s financial instruments include cash and cash equivalents, investment securities, accounts payable and certain other liabilities. The Company’s investment securities consist primarily of U.S. Treasury securities, which are stated at amortized cost, and auction rate securities, which are stated at their approximate fair value. The book value of all financial instruments is representative of their fair values. |
Note_4_Investment_Securities_T
Note 4 - Investment Securities (Tables) | 3 Months Ended | ||||||||
31-May-14 | |||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||
Marketable Securities [Table Text Block] | ' | ||||||||
(in millions) | May 31, | March 1, | |||||||
2014 | 2014 | ||||||||
Available-for-sale securities: | |||||||||
Long term | $ | 47.7 | $ | 47.7 | |||||
Trading securities: | |||||||||
Long term | 42 | 39.7 | |||||||
Held-to-maturity securities: | |||||||||
Short term | 176.2 | 489.3 | |||||||
Total investment securities | $ | 265.9 | $ | 576.7 |
Note_6_StockBased_Compensation1
Note 6 - Stock-Based Compensation (Tables) | 3 Months Ended | ||||||||
31-May-14 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | ||||||||
Three Months Ended | |||||||||
Black-Scholes Valuation Assumptions (1) | 31-May-14 | 1-Jun-13 | |||||||
Weighted Average Expected Life (in years) (2) | 6.6 | 6.6 | |||||||
Weighted Average Expected Volatility (3) | 28.31 | % | 29.27 | % | |||||
Weighted Average Risk Free Interest Rates (4) | 2.11 | % | 1.11 | % | |||||
Expected Dividend Yield | - | - | |||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||
(Shares in thousands) | Number of Stock Options | Weighted Average | |||||||
Exercise Price | |||||||||
Options outstanding, beginning of period | 4,192 | $ | 46.85 | ||||||
Granted | 523 | 62.34 | |||||||
Exercised | (252 | ) | 38.56 | ||||||
Forfeited or expired | - | - | |||||||
Options outstanding, end of period | 4,463 | $ | 49.13 | ||||||
Options exercisable, end of period | 2,765 | $ | 41.92 | ||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | ' | ||||||||
(Shares in thousands) | Number of Restricted | Weighted Average | |||||||
Shares | Grant-Date Fair | ||||||||
Value | |||||||||
Unvested restricted stock, beginning of period | 3,943 | $ | 53.66 | ||||||
Granted | 505 | 62.47 | |||||||
Vested | (820 | ) | 43.14 | ||||||
Forfeited | (26 | ) | 60.61 | ||||||
Unvested restricted stock, end of period | 3,602 | $ | 57.24 |
Note_1_Basis_of_Presentation_D
Note 1 - Basis of Presentation (Details) | 3 Months Ended |
31-May-14 | |
Disclosure Text Block [Abstract] | ' |
Number of Operating Segments | 2 |
Note_3_Cash_and_Cash_Equivalen1
Note 3 - Cash and Cash Equivalents (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | 31-May-14 | Mar. 01, 2014 |
Cash and cash equivalents: [Abstract] | ' | ' |
Number Of Business Days For Settlement Of Credit And Debit Card Receivables | '5 days | ' |
Credit and Debit Card Receivables, at Carrying Value | $93.20 | $87.40 |
Note_4_Investment_Securities_D
Note 4 - Investment Securities (Details) (USD $) | 31-May-14 | Mar. 01, 2014 |
In Millions, unless otherwise specified | ||
Note 4 - Investment Securities (Details) [Line Items] | ' | ' |
Held-to-maturity Securities, Current | $176.20 | $489.30 |
Deferred Compensation Plan Assets | 42 | 39.7 |
Auction Rate Securities [Member] | ' | ' |
Note 4 - Investment Securities (Details) [Line Items] | ' | ' |
Available For Sale Securities Equity Securities At Par Value | 51 | 51 |
Available For Sale Securities Temporary Impairment Adjustment Accumulated Other Comprehensive Income Loss | 3.3 | 3.3 |
US Treasury Securities [Member] | ' | ' |
Note 4 - Investment Securities (Details) [Line Items] | ' | ' |
Held-to-maturity Securities, Current | 176.2 | 489.3 |
Other Trading Investment Securities [Member] | ' | ' |
Note 4 - Investment Securities (Details) [Line Items] | ' | ' |
Deferred Compensation Plan Assets | $42 | $39.70 |
Note_4_Investment_Securities_D1
Note 4 - Investment Securities (Details) - Investment Securities (USD $) | 31-May-14 | Mar. 01, 2014 |
In Millions, unless otherwise specified | ||
Available-for-sale securities: | ' | ' |
Long term | $47.70 | $47.70 |
Trading securities: | ' | ' |
Long term | 42 | 39.7 |
Held-to-maturity securities: | ' | ' |
Short term | 176.2 | 489.3 |
Total investment securities | $265.90 | $576.70 |
Note_5_Property_and_Equipment_
Note 5 - Property and Equipment (Details) (USD $) | 31-May-14 | Mar. 01, 2014 |
In Billions, unless otherwise specified | ||
Property, Plant and Equipment [Abstract] | ' | ' |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $2.10 | $2 |
Note_6_StockBased_Compensation2
Note 6 - Stock-Based Compensation (Details) (USD $) | 3 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||||||||||||||||
31-May-14 | Jun. 01, 2013 | 31-May-14 | 31-May-14 | 31-May-14 | 31-May-14 | 31-May-14 | Jun. 01, 2013 | 31-May-14 | 31-May-14 | 31-May-14 | 31-May-14 | Mar. 01, 2014 | 31-May-14 | 31-May-14 | 31-May-14 | 31-May-14 | 31-May-14 | 31-May-14 | 31-May-14 | |
Scenario, Assumption [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Performance Share Unit (PSUs) [Member] | Performance Share Unit (PSUs) [Member] | Performance Share Unit (PSUs) [Member] | Performance Share Unit (PSUs) [Member] | Performance Share Unit (PSUs) [Member] | Performance Share Unit (PSUs) [Member] | Employee Stock Option Issued Since May 10, 2010 [Member] | Employee Stock Option Issued Prior to May 10, 2010 [Member] | Employee Stock Option Issued Since May 10, 2004 [Member] | Employee Stock Option Issued Prior to May 10, 2004 [Member] | The 2012 Plan [Member] | |||
Performance Share Unit (PSUs) [Member] | The 2012 Plan [Member] | The 2012 Plan [Member] | Maximum [Member] | The 2012 Plan [Member] | One-Year Performance Period Awards [Member] | Maximum [Member] | Minimum [Member] | |||||||||||||
Note 6 - Stock-Based Compensation (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocated Share-based Compensation Expense (in Dollars) | $18,200,000 | $14,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocated Share-based Compensation Expense, Net of Tax (in Dollars) | 11,400,000 | 9,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Based Compensation Expense Impact On Diluted Earnings Per Share (in Dollars per share) | $0.06 | $0.04 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs, Capitalized Amount (in Dollars) | 400,000 | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 43,200,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | ' | '5 years | '5 years | '5 years | ' | ' | '5 years | '4 years | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Award Requisite Service Period Minimum | ' | ' | ' | '1 year | '1 year | '1 year | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | '1 year | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Award Requisite Service Period Maximum | ' | ' | ' | '3 years | '3 years | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars) | ' | ' | ' | ' | 148,000,000 | ' | 33,600,000 | ' | ' | ' | ' | 23,700,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | ' | ' | ' | ' | '4 years 36 days | ' | '3 years 146 days | ' | ' | ' | ' | '3 years 73 days | ' | ' | ' | ' | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Requisite Service Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '8 years | '10 years | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | ' | ' | ' | ' | ' | ' | $20.96 | $22.28 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | ' | ' | ' | ' | ' | ' | '4 years 109 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value (in Dollars) | ' | ' | ' | ' | ' | ' | 62,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | ' | ' | ' | ' | ' | ' | '3 years 36 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value (in Dollars) | ' | ' | ' | ' | ' | ' | 55,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value (in Dollars) | ' | ' | ' | ' | ' | ' | 6,400,000 | 15,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Stock Options Exercised (in Dollars) | 9,705,000 | 22,469,000 | ' | ' | ' | ' | 9,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options (in Dollars) | ' | ' | ' | ' | ' | ' | $7,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Target Award, Percentage | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150.00% | 0.00% | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in Shares) | ' | ' | ' | ' | 505,000 | ' | ' | ' | ' | ' | ' | 390,803 | 0 | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | ' | ' | ' | ' | $62.47 | ' | ' | ' | ' | ' | ' | $62.34 | ' | ' | ' | ' | ' | ' | ' | ' |
Note_6_StockBased_Compensation3
Note 6 - Stock-Based Compensation (Details) - Assumptions Used to Estimate the Black-Scholes Fair Value of Stock Options Granted | 3 Months Ended | |||
31-May-14 | Jun. 01, 2013 | |||
Assumptions Used to Estimate the Black-Scholes Fair Value of Stock Options Granted [Abstract] | ' | ' | ||
Weighted Average Expected Life (in years) (2) | '6 years 219 days | [1],[2] | '6 years 219 days | [1],[2] |
Weighted Average Expected Volatility (3) | 28.31% | [1],[3] | 29.27% | [1],[3] |
Weighted Average Risk Free Interest Rates (4) | 2.11% | [1],[4] | 1.11% | [1],[4] |
Expected Dividend Yield | ' | [1] | ' | [1] |
[1] | Forfeitures are estimated based on historical experience. | |||
[2] | The expected life of stock options is estimated based on historical experience. | |||
[3] | Expected volatility is based on the average of historical and implied volatility. The historical volatility is determined by observing actual prices of the Company's stock over a period commensurate with the expected life of the awards. The implied volatility represents the implied volatility of the Company's call options, which are actively traded on multiple exchanges, had remaining maturities in excess of twelve months, had market prices close to the exercise prices of the employee stock options and were measured on the stock option grant date. | |||
[4] | Based on the U.S. Treasury constant maturity interest rate whose term is consistent with the expected life of the stock options. |
Note_6_StockBased_Compensation4
Note 6 - Stock-Based Compensation (Details) - Changes in the Companybs Stock Options (Employee Stock Option [Member], USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | 31-May-14 |
Employee Stock Option [Member] | ' |
Note 6 - Stock-Based Compensation (Details) - Changes in the Companybs Stock Options [Line Items] | ' |
Options outstanding, beginning of period | 4,192 |
Options outstanding, beginning of period | $46.85 |
Granted | 523 |
Granted | $62.34 |
Exercised | -252 |
Exercised | $38.56 |
Forfeited or expired | 0 |
Forfeited or expired | ' |
Options outstanding, end of period | 4,463 |
Options outstanding, end of period | $49.13 |
Options exercisable, end of period | 2,765 |
Options exercisable, end of period | $41.92 |
Note_6_StockBased_Compensation5
Note 6 - Stock-Based Compensation (Details) - Changes in the Companybs Restricted Stock (Restricted Stock [Member], USD $) | 3 Months Ended |
31-May-14 | |
Restricted Stock [Member] | ' |
Note 6 - Stock-Based Compensation (Details) - Changes in the Companybs Restricted Stock [Line Items] | ' |
Unvested restricted stock, beginning of period | 3,943,000 |
Unvested restricted stock, beginning of period | $53.66 |
Granted | 505,000 |
Granted | $62.47 |
Vested | -820,000 |
Vested | $43.14 |
Forfeited | -26,000 |
Forfeited | $60.61 |
Unvested restricted stock, end of period | 3,602,000 |
Unvested restricted stock, end of period | $57.24 |
Note_7_Shareholders_Equity_Det
Note 7 - Shareholders' Equity (Details) (USD $) | 3 Months Ended | 109 Months Ended | ||
31-May-14 | Jun. 01, 2013 | Dec. 31, 2013 | Mar. 01, 2014 | |
Stockholders' Equity Note [Abstract] | ' | ' | ' | ' |
Stock Repurchase Program, Authorized Amount | ' | ' | $7,450,000,000 | ' |
Treasury Stock, Shares, Acquired (in Shares) | 4,200,000 | ' | ' | ' |
Payments for Repurchase of Common Stock | 272,883,000 | 324,436,000 | ' | ' |
Treasury Stock, Shares (in Shares) | 133,718,000 | ' | ' | 129,536,000 |
Treasury Stock, Value | 6,590,218,000 | ' | ' | 6,317,335,000 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $900,000,000 | ' | ' | ' |
Note_8_Earnings_Per_Share_Deta
Note 8 - Earnings Per Share (Details) | 3 Months Ended | |
In Millions, unless otherwise specified | 31-May-14 | Jun. 01, 2013 |
Earnings Per Share [Abstract] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2.2 | 1.5 |
Note_9_Lines_of_Credit_Details
Note 9 - Lines of Credit (Details) (USD $) | 31-May-14 |
In Millions, unless otherwise specified | |
Note 9 - Lines of Credit (Details) [Line Items] | ' |
Line Of Credit Facility Number Maintained | 2 |
Uncommitted Line of Credit Expiration Date of September 2, 2014 [Member] | ' |
Note 9 - Lines of Credit (Details) [Line Items] | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 100 |
Uncommitted Line of Credit Expiration Date of February 28, 2015 [Member] | ' |
Note 9 - Lines of Credit (Details) [Line Items] | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 100 |
Note_10_Supplemental_Cash_Flow1
Note 10 - Supplemental Cash Flow Information (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | 31-May-14 | Jun. 01, 2013 |
Supplemental Cash Flow Elements [Abstract] | ' | ' |
Income Taxes Paid | $69.90 | $76.70 |
Interest Paid | 2.3 | 2.4 |
Capital Expenditures Incurred but Not yet Paid | $20.20 | $27.40 |