20230930-DK-Butterfly-1 (BBBYQ) 10-Q 8 Jul 15 2015 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - May. 30, 2015 - shares	Total
Document and Entity Information [Abstract]
Entity Registrant Name	BED BATH & BEYOND INC
Trading Symbol	bbby
Document Type	10-Q
Current Fiscal Year End Date	--02-27
Entity Common Stock, Shares Outstanding	169,596,406
Amendment Flag	false
Entity Central Index Key	886,158
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	May 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q1

Consolidated Balance Sheets (Cu

Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	May. 30, 2015	Feb. 28, 2015
Current assets:
Cash and cash equivalents	$ 615,230	$ 875,574
Short term investment securities	76,872	109,992
Merchandise inventories	2,844,361	2,731,881
Other current assets	394,238	366,156
Total current assets	3,930,701	4,083,603
Long term investment securities	100,463	97,160
Property and equipment, net	1,657,119	1,676,700
Goodwill	486,279	486,279
Other assets	424,515	415,251
Total assets	6,599,077	6,758,993
Current liabilities:
Accounts payable	1,133,673	1,156,368
Accrued expenses and other current liabilities	431,216	403,547
Merchandise credit and gift card liabilities	317,899	306,160
Current income taxes payable	90,365	76,606
Total current liabilities	1,973,153	1,942,681
Deferred rent and other liabilities	491,095	493,137
Income taxes payable	82,633	79,985
Long term debt	1,500,000	1,500,000
Total liabilities	4,046,881	4,015,803
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 337,389 and 336,667 shares, respectively; outstanding 169,596 and 174,178 shares, respectively	3,374	3,367
Additional paid-in capital	1,831,657	1,796,692
Retained earnings	9,711,827	9,553,376
Treasury stock, at cost; 167,793 and 162,489 shares, respectively	(8,953,281)	(8,567,932)
Accumulated other comprehensive loss	(41,381)	(42,313)
Total shareholders' equity	2,552,196	2,743,190
Total liabilities and shareholders' equity	$ 6,599,077	$ 6,758,993

Consolidated Balance Sheets (C3

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares shares in Thousands	May. 30, 2015	Feb. 28, 2015
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	337,389	336,667
Common stock, shares outstanding	169,596	174,178
Treasury stock, shares	167,793	162,489

Consolidated Statements of Earn

Consolidated Statements of Earnings (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	May. 30, 2015	May. 31, 2014
Net sales	$ 2,738,495	$ 2,656,698
Cost of sales	1,694,362	1,625,813
Gross profit	1,044,133	1,030,885
Selling, general and administrative expenses	770,864	730,184
Operating profit	273,269	300,701
Interest expense, net	19,901	2,094
Earnings before provision for income taxes	253,368	298,607
Provision for income taxes	94,917	111,555
Net earnings	$ 158,451	$ 187,052
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)	168,772	199,619
Weighted average shares outstanding - Diluted (in Shares)	171,133	202,096

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	May. 30, 2015	May. 31, 2014
Net earnings	$ 158,451	$ 187,052
Other comprehensive income (loss):
Change in temporary impairment of auction rate securities, net of taxes	(36)	38
Pension adjustment, net of taxes	(9)	72
Currency translation adjustment	977	3,471
Other comprehensive income	932	3,581
Comprehensive income	$ 159,383	$ 190,633

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	May. 30, 2015	May. 31, 2014
Cash Flows from Operating Activities:
Net earnings	$ 158,451	$ 187,052
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	62,617	57,964
Stock-based compensation	17,740	18,162
Tax benefit from stock-based compensation	6,978	5,913
Deferred income taxes	(4,234)	(21,823)
Other	(403)	(298)
Increase in assets:
Merchandise inventories	(112,188)	(119,407)
Trading investment securities	(3,363)	(2,293)
Other current assets	(26,846)	(22,240)
Other assets	(6,909)	(1,758)
Increase (decrease) in liabilities:
Accounts payable	7,307	33,417
Accrued expenses and other current liabilities	27,779	(16,940)
Merchandise credit and gift card liabilities	11,718	5,758
Income taxes payable	16,398	58,194
Deferred rent and other liabilities	(1,017)	2,267
Net cash provided by operating activities	154,028	183,968
Cash Flows from Investing Activities:
Purchase of held-to-maturity investment securities	(16,873)	(39,369)
Redemption of held-to-maturity investment securities	50,000	352,500
Capital expenditures	(72,364)	(66,932)
Net cash (used in) provided by investing activities	(39,237)	246,199
Cash Flows from Financing Activities:
Proceeds from exercise of stock options	7,536	9,705
Excess tax benefit from stock-based compensation	2,215	1,087
Repurchase of common stock, including fees	(385,349)	(272,883)
Net cash used in financing activities	(375,598)	(262,091)
Effect of exchange rate changes on cash and cash equivalents	463	1,976
Net (decrease) increase in cash and cash equivalents	(260,344)	170,052
Cash and cash equivalents:
Beginning of period	875,574	366,516
End of period	$ 615,230	$ 536,568

Note 1 - Basis of Presentation

Note 1 - Basis of Presentation	3 Months Ended
	May. 30, 2015
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 30, 2015 and February 28, 2015 and the results of its operations, comprehensive income and cash flows for the three months ended May 30, 2015 and May 31, 2014, 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 February 28, 2015 for additional disclosures, including a summary of the Company's significant accounting policies, and to subsequently filed Forms 8-K. Certain reclassifications have been made to the fiscal 2014 consolidated statement of cash flows to conform to the fiscal 2015 consolidated statement of cash flows presentation. 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 Measurement

Note 2 - Fair Value Measurements	3 Months Ended
	May. 30, 2015
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 30, 2015, 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, long term debt and certain other liabilities. The Company’s investment securities consist primarily of U.S. Treasury securities, which are stated at amortized cost, and auction rate securities, which are stated at their approximate fair value. The book value of the financial instruments, excluding the Company’s long term debt, is representative of their fair values. The fair value of the Company’s long term debt is approximately $1.544 billion, which is based on quoted prices in active markets for identical instruments (i.e., Level 1 valuation), compared to the carrying value of approximately $1.500 billion.

Note 3 - Cash and Cash Equivale

Note 3 - Cash and Cash Equivalents	3 Months Ended
	May. 30, 2015
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 $94.7 million and $90.3 million as of May 30, 2015 and February 28, 2015, respectively.

Note 4 - Investment Securities

Note 4 - Investment Securities	3 Months Ended
	May. 30, 2015
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 30, 2015 and February 28, 2015 are as follows: (in millions) May 30, 2015 February 28, 2015 Available-for-sale securities: Long term $ 47.9 $ 47.9 Trading securities: Long term 52.6 49.2 Held-to-maturity securities: Short term 76.9 110.0 Total investment securities $ 177.4 $ 207.1 Auction Rate Securities As of May 30, 2015 and February 28, 2015, 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 $3.1 million. 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 30, 2015 and February 28, 2015, the Company’s short term held-to-maturity securities included approximately $76.9 million and approximately $110.0 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 $52.6 million and $49.2 million as of May 30, 2015 and February 28, 2015, respectively.

Note 5 - Property and Equipment

Note 5 - Property and Equipment	3 Months Ended
	May. 30, 2015
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment Disclosure [Text Block]	5) Property and Equipment As of May 30, 2015 and February 28, 2015, included in property and equipment, net is accumulated depreciation of approximately $2.3 billion.

Note 6 - Long Term Debt

Note 6 - Long Term Debt	3 Months Ended
	May. 30, 2015
Disclosure Text Block [Abstract]
Long-term Debt [Text Block]	6) Long Term Debt Senior Unsecured Notes On July 17, 2014, the Company issued $300 million aggregate principal amount of 3.749% senior unsecured notes due August 1, 2024, $300 million aggregate principal amount of 4.915% senior unsecured notes due August 1, 2034 and $900 million aggregate principal amount of 5.165% senior unsecured notes due August 1, 2044 (collectively, the “Notes”). Interest on the Notes is payable semi-annually on February 1 and August 1 of each year, beginning on February 1, 2015. The Notes were issued under an indenture (the “Base Indenture”), as supplemented by a first supplemental indenture (together, with the Base Indenture, the “Indenture”), which contains various restrictive covenants, which are subject to important limitations and exceptions that are described in the Indenture. The Company was in compliance with all covenants related to the Notes as of May 30, 2015. Revolving Credit Agreement On August 6, 2014, the Company entered into a $250 million five year senior unsecured revolving credit facility agreement (“Revolver”) with various lenders. During the three months ended May 30, 2015, the Company did not have any borrowings under the Revolver. The Revolver contains customary affirmative and negative covenants and also requires the Company to maintain a minimum leverage ratio. The Company was in compliance with all covenants related to the Revolver as of May 30, 2015. Deferred financing costs associated with the Notes and the Revolver of approximately $10.1 million were capitalized and are included in other assets, net of amortization, in the accompanying Consolidated Balance Sheets. These deferred financing costs are being amortized over the term of each of the Notes and the term of the Revolver and such amortization is included in interest expense, net in the Consolidated Statement of Earnings. Interest expense related to the Notes and the Revolver, including the commitment fee and the amortization of the deferred financing costs, was approximately $18.7 million for the three months ended May 30, 2015. Lines of Credit At May 30, 2015, the Company maintained two uncommitted lines of credit of $100 million each, with expiration dates of September 1, 2015 and February 28, 2016, respectively.

Note 7 - Shareholders' Equity

Note 7 - Shareholders' Equity	3 Months Ended
	May. 30, 2015
Stockholders' Equity Note [Abstract]
Stockholders' Equity Note Disclosure [Text Block]	7) Shareholders’ Equity Between December 2004 and July 2014, the Company’s Board of Directors authorized, through several share repurchase programs, the repurchase of $9.450 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 acquires shares of its common stock to cover employee related taxes withheld on vested restricted stock and performance stock unit awards. In the first three months of fiscal 2015, the Company repurchased approximately 5.3 million shares of its common stock for a total cost of approximately $385.3 million, bringing the aggregate total of common stock repurchased to approximately 167.8 million shares for a total cost of approximately $9.0 billion since the initial authorization in December 2004. The Company has approximately $0.5 billion remaining of authorized share repurchases as of May 30, 2015.

Note 8 - Stock-Based Compensati

Note 8 - Stock-Based Compensation	3 Months Ended
	May. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	8) 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 stock units. The Company’s restricted stock awards are considered nonvested share awards. Stock-based compensation expense for the three months ended May 30, 2015 and May 31, 2014 was approximately $17.7 million ($11.1 million after tax or $0.06 per diluted share) and approximately $18.2 million ($11.4 million after tax or $0.06 per diluted share), respectively. In addition, the amount of stock-based compensation cost capitalized for the three months ended May 30, 2015 and May 31, 2014 was approximately $0.5 million and $0.4 million, respectively. 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 stock 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 stock units. As of May 30, 2015, unrecognized compensation expense related to the unvested portion of the Company’s stock options, restricted stock awards and performance stock units was $31.6 million, $147.7 million and $34.9 million, respectively, which is expected to be recognized over a weighted average period of 3.4 years, 4.1 years and 2.8 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 was 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) May 30, 2015 May 31, 2014 Weighted Average Expected Life (in years) (2) 6.7 6.6 Weighted Average Expected Volatility (3) 27.59 % 28.31 % Weighted Average Risk Free Interest Rates (4) 1.93 % 2.11 % 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 30, 2015 were as follows: (Shares in thousands) Number of Stock Options Weighted Average Exercise Price Options outstanding, beginning of period 3,682 $ 51.05 Granted 501 70.96 Exercised (215 ) 35.04 Forfeited or expired (91 ) 63.12 Options outstanding, end of period 3,877 $ 54.23 Options exercisable, end of period 2,392 $ 46.83 The weighted average fair value for the stock options granted during the first three months of fiscal 2015 and 2014 was $23.12 and $20.96, respectively. The weighted average remaining contractual term and the aggregate intrinsic value for options outstanding as of May 30, 2015 was 4.4 years and $66.5 million, respectively. The weighted average remaining contractual term and the aggregate intrinsic value for options exercisable as of May 30, 2015 was 3.2 years and $58.6 million, respectively. The total intrinsic value for stock options exercised during the first three months of fiscal 2015 and 2014 was $8.2 million and $6.4 million, respectively. Net cash proceeds from the exercise of stock options for the first three months of fiscal 2015 were $7.5 million and the net associated income tax benefit was $9.2 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 30, 2015 were as follows: (Shares in thousands) Number of Restricted Shares Weighted Average Grant-Date Fair Value Unvested restricted stock, beginning of period 3,592 $ 57.90 Granted 479 71.07 Vested (743 ) 47.81 Forfeited (69 ) 59.47 Unvested restricted stock, end of period 3,259 $ 62.10 Performance Stock Units Performance stock 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 Interest and Taxes (“EBIT”) margin relative to a peer group of the Company. 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 range from a floor of zero to a cap of 150% of target achievement. 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. The Company evaluates the target assumption on a quarterly basis and adjusts compensation expense related to these awards, as appropriate. Changes in the Company’s PSUs for the three months ended May 30, 2015 were as follows: (Shares in thousands) Number of Performance Stock Units Weighted Average Grant-Date Fair Value Unvested performance stock units, beginning of period 391 $ 62.34 Granted 370 70.96 Vested (98 ) 62.34 Forfeited (36 ) 67.15 Unvested performance stock units, end of period 627 $ 67.15

Note 9 - Earnings Per Share

Note 9 - Earnings Per Share	3 Months Ended
	May. 30, 2015
Earnings Per Share [Abstract]
Earnings Per Share [Text Block]	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 months ended May 30, 2015 and May 31, 2014 of approximately 1.5 million and 2.2 million, respectively, were excluded from the computation of diluted earnings per share as the effect would be anti-dilutive.

Note 10 - Supplemental Cash Flo

Note 10 - Supplemental Cash Flow Information	3 Months Ended
	May. 30, 2015
Supplemental Cash Flow Elements [Abstract]
Cash Flow, Supplemental Disclosures [Text Block]	10) Supplemental Cash Flow Information The Company paid income taxes of $71.7 million and $69.9 million in the first three months of fiscal 2015 and 2014, respectively. In addition, the Company had interest payments of approximately $2.3 million in the first three months of fiscal 2015 and 2014. The Company recorded an accrual for capital expenditures of $28.4 million and $20.2 million as of May 30, 2015 and May 31, 2014, respectively.

Note 4 - Investment Securities

Note 4 - Investment Securities (Tables)	3 Months Ended
	May. 30, 2015
Investments, Debt and Equity Securities [Abstract]
Marketable Securities [Table Text Block]	(in millions) May 30, 2015 February 28, 2015 Available-for-sale securities: Long term $ 47.9 $ 47.9 Trading securities: Long term 52.6 49.2 Held-to-maturity securities: Short term 76.9 110.0 Total investment securities $ 177.4 $ 207.1

Note 8 - Stock-Based Compensa18

Note 8 - Stock-Based Compensation (Tables)	3 Months Ended
	May. 30, 2015
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) May 30, 2015 May 31, 2014 Weighted Average Expected Life (in years) (2) 6.7 6.6 Weighted Average Expected Volatility (3) 27.59 % 28.31 % Weighted Average Risk Free Interest Rates (4) 1.93 % 2.11 % 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 3,682 $ 51.05 Granted 501 70.96 Exercised (215 ) 35.04 Forfeited or expired (91 ) 63.12 Options outstanding, end of period 3,877 $ 54.23 Options exercisable, end of period 2,392 $ 46.83
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block]	(Shares in thousands) Number of Restricted Shares Weighted Average Grant-Date Fair Value Unvested restricted stock, beginning of period 3,592 $ 57.90 Granted 479 71.07 Vested (743 ) 47.81 Forfeited (69 ) 59.47 Unvested restricted stock, end of period 3,259 $ 62.10
Share-based Compensation, Performance Shares Award Unvested Activity [Table Text Block]	(Shares in thousands) Number of Performance Stock Units Weighted Average Grant-Date Fair Value Unvested performance stock units, beginning of period 391 $ 62.34 Granted 370 70.96 Vested (98 ) 62.34 Forfeited (36 ) 67.15 Unvested performance stock units, end of period 627 $ 67.15

Note 1 - Basis of Presentation

Note 1 - Basis of Presentation (Details)	3 Months Ended
	May. 30, 2015
Disclosure Text Block [Abstract]
Number of Operating Segments	2

Note 2 - Fair Value Measureme20

Note 2 - Fair Value Measurements (Details) $ in Millions	May. 30, 2015USD ($)
Fair Value Disclosures [Abstract]
Long-term Debt, Fair Value	$ 1,544
Long-term Debt	$ 1,500

Note 3 - Cash and Cash Equiva21

Note 3 - Cash and Cash Equivalents (Details) - USD ($) $ in Millions	3 Months Ended
	May. 30, 2015	Feb. 28, 2015
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	$ 94.7	$ 90.3

Note 4 - Investment Securitie22

Note 4 - Investment Securities (Details) - USD ($) $ in Millions	May. 30, 2015	Feb. 28, 2015
Note 4 - Investment Securities (Details) [Line Items]
Held-to-maturity Securities, Current	$ 76.9	$ 110
Deferred Compensation Plan Assets	52.6	49.2
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)	3.1	3.1
US Treasury Securities [Member]
Note 4 - Investment Securities (Details) [Line Items]
Held-to-maturity Securities, Current	76.9	110
Other Trading Investment Securities [Member]
Note 4 - Investment Securities (Details) [Line Items]
Deferred Compensation Plan Assets	$ 52.6	$ 49.2

Note 4 - Investment Securitie23

Note 4 - Investment Securities (Details) - Investment Securities - USD ($) $ in Millions	May. 30, 2015	Feb. 28, 2015
Available-for-sale securities:
Long term	$ 47.9	$ 47.9
Trading securities:
Long term	52.6	49.2
Held-to-maturity securities:
Short term	76.9	110
Total investment securities	$ 177.4	$ 207.1

Note 5 - Property and Equipme24

Note 5 - Property and Equipment (Details) - USD ($) $ in Billions	May. 30, 2015	Feb. 28, 2015
Property, Plant and Equipment [Abstract]
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	$ 2.3	$ 2.3

Note 6 - Long Term Debt (Detail

Note 6 - Long Term Debt (Details)	Aug. 06, 2014USD ($)	Jul. 17, 2014USD ($)	May. 30, 2015USD ($)
Note 6 - Long Term Debt (Details) [Line Items]
Line of Credit Facility, Number Maintained			2
Uncommitted Line of Credit Expiration Date of September 1, 2015 [Member]
Note 6 - Long Term Debt (Details) [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity			$ 100,000,000
Proceeds from Lines of Credit			0
Uncommitted Line of Credit Expiration Date of February 28, 2016 [Member]
Note 6 - Long Term Debt (Details) [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity			100,000,000
Proceeds from Lines of Credit			0
The 2024 Notes [Member] | Senior Unsecured Notes [Member]
Note 6 - Long Term Debt (Details) [Line Items]
Debt Instrument, Face Amount		$ 300,000,000
Debt Instrument, Interest Rate, Stated Percentage		3.749%
Debt Instrument, Maturity Date		Aug. 1, 2024
The 2034 Notes [Member] | Senior Unsecured Notes [Member]
Note 6 - Long Term Debt (Details) [Line Items]
Debt Instrument, Face Amount		$ 300,000,000
Debt Instrument, Interest Rate, Stated Percentage		4.915%
Debt Instrument, Maturity Date		Aug. 1, 2034
The 2044 Notes [Member] | Senior Unsecured Notes [Member]
Note 6 - Long Term Debt (Details) [Line Items]
Debt Instrument, Face Amount		$ 900,000,000
Debt Instrument, Interest Rate, Stated Percentage		5.165%
Debt Instrument, Maturity Date		Aug. 1, 2044
Revolver [Member] | Revolving Credit Facility [Member]
Note 6 - Long Term Debt (Details) [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 250,000,000
Debt Instrument, Term	5 years
Proceeds from Lines of Credit			0
Senior Unsecured Notes and Revolver [Member]
Note 6 - Long Term Debt (Details) [Line Items]
Interest Expense			$ 18,700,000
Senior Unsecured Notes and Revolver [Member] | Other Assets [Member]
Note 6 - Long Term Debt (Details) [Line Items]
Deferred Finance Costs, Gross	$ 10,100,000

Note 7 - Shareholders' Equity (

Note 7 - Shareholders' Equity (Details) - USD ($) $ in Thousands, shares in Millions	3 Months Ended		126 Months Ended
	May. 30, 2015	May. 31, 2014	May. 30, 2015	Jul. 31, 2014
Stockholders' Equity Note [Abstract]
Stock Repurchase Program, Authorized Amount				$ 9,450,000
Treasury Stock, Shares, Acquired (in Shares)	5.3		167.8
Payments for Repurchase of Common Stock	$ 385,349	$ 272,883	$ 9,000,000
Stock Repurchase Program, Remaining Authorized Repurchase Amount	$ 500,000		$ 500,000

Note 8 - Stock-Based Compensa27

Note 8 - Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions	3 Months Ended
	May. 30, 2015	May. 31, 2014
Note 8 - Stock-Based Compensation (Details) [Line Items]
Allocated Share-based Compensation Expense (in Dollars)	$ 17,700	$ 18,200
Allocated Share-based Compensation Expense, Net of Tax (in Dollars)	$ 11,100	$ 11,400
Stock Based Compensation Expense Impact On Diluted Earnings Per Share (in Dollars per share)	$ 0.06	$ 0.06
Employee Service Share-based Compensation, Allocation of Recognized Period Costs, Capitalized Amount (in Dollars)	$ 500	$ 400
Proceeds from Stock Options Exercised (in Dollars)	$ 7,536	$ 9,705
The 2012 Plan [Member]
Note 8 - Stock-Based Compensation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares)	43.2
Restricted Stock [Member]
Note 8 - Stock-Based Compensation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	5 years
Share Based Compensation Arrangement By Share Based Payment Award Award Requisite Service Period Minimum	1 year
Share Based Compensation Arrangement By Share Based Payment Award Award Requisite Service Period Maximum	3 years
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars)	$ 147,700
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	4 years 36 days
Restricted Stock [Member] | The 2012 Plan [Member]
Note 8 - Stock-Based Compensation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	5 years
Share Based Compensation Arrangement By Share Based Payment Award Award Requisite Service Period Minimum	1 year
Share Based Compensation Arrangement By Share Based Payment Award Award Requisite Service Period Maximum	3 years
Employee Stock Option [Member]
Note 8 - Stock-Based Compensation (Details) [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars)	$ 31,600
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	3 years 146 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share)	$ 23.12	$ 20.96
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	4 years 146 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value (in Dollars)	$ 66,500
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term	3 years 73 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value (in Dollars)	$ 58,600
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value (in Dollars)	8,200	$ 6,400
Proceeds from Stock Options Exercised (in Dollars)	7,500
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options (in Dollars)	$ 9,200
Employee Stock Option [Member] | The 2012 Plan [Member]
Note 8 - Stock-Based Compensation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	5 years
Share Based Compensation Arrangement By Share Based Payment Award Award Requisite Service Period Minimum	1 year
Share Based Compensation Arrangement By Share Based Payment Award Award Requisite Service Period Maximum	3 years
Performance Share Unit (PSUs) [Member]
Note 8 - Stock-Based Compensation (Details) [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars)	$ 34,900
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	2 years 292 days
Performance Share Unit (PSUs) [Member] | The 2012 Plan [Member]
Note 8 - Stock-Based Compensation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	4 years
Performance Share Unit (PSUs) [Member] | Scenario, Assumption [Member]
Note 8 - Stock-Based Compensation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Target Award, Percentage	100.00%
Performance Share Unit (PSUs) [Member] | One-Year Performance Period Awards [Member]
Note 8 - Stock-Based Compensation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
Share Based Compensation Arrangement By Share Based Payment Award Award Requisite Service Period Minimum	1 year
Employee Stock Option Issued Since May 10, 2010 [Member]
Note 8 - Stock-Based Compensation (Details) [Line Items]
Share Based Compensation Arrangement By Share Based Payment Award Requisite Service Period	1 year
Employee Stock Option Issued Prior to May 10, 2010 [Member]
Note 8 - Stock-Based Compensation (Details) [Line Items]
Share Based Compensation Arrangement By Share Based Payment Award Award Requisite Service Period Minimum	1 year
Share Based Compensation Arrangement By Share Based Payment Award Award Requisite Service Period Maximum	3 years
Employee Stock Option Issued Since May 10, 2004 [Member]
Note 8 - Stock-Based Compensation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	8 years
Employee Stock Option Issued Prior to May 10, 2004 [Member]
Note 8 - Stock-Based Compensation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years
Minimum [Member] | Employee Stock Option [Member]
Note 8 - Stock-Based Compensation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
Minimum [Member] | Performance Share Unit (PSUs) [Member]
Note 8 - Stock-Based Compensation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Target Award, Percentage	0.00%
Maximum [Member] | Employee Stock Option [Member]
Note 8 - Stock-Based Compensation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	5 years
Maximum [Member] | Performance Share Unit (PSUs) [Member]
Note 8 - Stock-Based Compensation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Target Award, Percentage	150.00%

Note 8 - Stock-Based Compensa28

Note 8 - Stock-Based Compensation (Details) - Assumptions Used to Estimate the Black-Scholes Fair Value of Stock Options Granted		3 Months Ended
		May. 30, 2015	May. 31, 2014
Assumptions Used to Estimate the Black-Scholes Fair Value of Stock Options Granted [Abstract]
Weighted Average Expected Life (in years) (2)	[1],[2]	6 years 255 days	6 years 219 days
Weighted Average Expected Volatility (3)	[1],[3]	27.59%	28.31%
Weighted Average Risk Free Interest Rates (4)	[1],[4]	1.93%	2.11%
Expected Dividend Yield	[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 pricesof the Company's stock over a period commensurate with the expected life of the awards. The implied volatility represents the implied volatility ofthe Company's call options, which are actively traded on multiple exchanges, had remaining maturities in excess of twelve months, had marketprices 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 8 - Stock-Based Compensa29

Note 8 - Stock-Based Compensation (Details) - Changes in the Company’s Stock Options - May. 30, 2015 - Employee Stock Option [Member] - $ / shares shares in Thousands	Total
Note 8 - Stock-Based Compensation (Details) - Changes in the Company’s Stock Options [Line Items]
Options outstanding, beginning of period	3,682
Options outstanding, beginning of period	$ 51.05
Granted	501
Granted	$ 70.96
Exercised	(215)
Exercised	$ 35.04
Forfeited or expired	(91)
Forfeited or expired	$ 63.12
Options outstanding, end of period	3,877
Options outstanding, end of period	$ 54.23
Options exercisable, end of period	2,392
Options exercisable, end of period	$ 46.83

Note 8 - Stock-Based Compensa30

Note 8 - Stock-Based Compensation (Details) - Changes in the Company's Restricted Stock - 3 months ended May. 30, 2015 - Restricted Stock [Member] - $ / shares shares in Thousands	Total
Note 8 - Stock-Based Compensation (Details) - Changes in the Company's Restricted Stock [Line Items]
Unvested shares	3,592
Unvested shares	$ 57.90
Granted	479
Granted	$ 71.07
Vested	(743)
Vested	$ 47.81
Forfeited	(69)
Forfeited	$ 59.47
Unvested shares	3,259
Unvested shares	$ 62.10

Note 8 - Stock-Based Compensa31

Note 8 - Stock-Based Compensation (Details) - Changes in the Company's Performance Stock Units - 3 months ended May. 30, 2015 - Performance Shares [Member] - $ / shares shares in Thousands	Total
Note 8 - Stock-Based Compensation (Details) - Changes in the Company's Performance Stock Units [Line Items]
Unvested shares	391
Unvested shares	$ 62.34
Granted	370
Granted	$ 70.96
Vested	(98)
Vested	$ 62.34
Forfeited	(36)
Forfeited	$ 67.15
Unvested shares	627
Unvested shares	$ 67.15

Note 9 - Earnings Per Share (De

Note 9 - Earnings Per Share (Details) - shares shares in Millions	3 Months Ended
	May. 30, 2015	May. 31, 2014
Earnings Per Share [Abstract]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1.5	2.2

Note 10 - Supplemental Cash F33

Note 10 - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions	3 Months Ended
	May. 30, 2015	May. 31, 2014
Supplemental Cash Flow Elements [Abstract]
Income Taxes Paid	$ 71.7	$ 69.9
Interest Paid	2.3	2.3
Capital Expenditures Incurred but Not yet Paid	$ 28.4	$ 20.2