20230930-DK-Butterfly-1 (BBBYQ) 10-Q 7 Oct 15 2015 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information	6 Months Ended
	Aug. 29, 2015shares
Entity Registrant Name	BED BATH & BEYOND INC
Entity Central Index Key	886,158
Trading Symbol	bbby
Current Fiscal Year End Date	--02-27
Entity Filer Category	Large Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	Yes
Entity Common Stock, Shares Outstanding (in shares)	166,891,718
Document Type	10-Q
Document Period End Date	Aug. 29, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Amendment Flag	false

Consolidated Balance Sheets (Cu

Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Aug. 29, 2015	Feb. 28, 2015
Current assets:
Cash and cash equivalents	$ 667,563,000	$ 875,574,000
Short term investment securities	28,905,000	109,992,000
Merchandise inventories	2,875,417,000	2,731,881,000
Other current assets	426,007,000	366,156,000
Total current assets	3,997,892,000	4,083,603,000
Long term investment securities	70,501,000	97,160,000
Property and equipment, net	1,669,951,000	1,676,700,000
Goodwill	487,139,000	486,279,000
Other assets	425,823,000	415,251,000
Total assets	6,651,306,000	6,758,993,000
Current liabilities:
Accounts payable	1,196,798,000	1,156,368,000
Accrued expenses and other current liabilities	428,464,000	403,547,000
Merchandise credit and gift card liabilities	317,247,000	306,160,000
Current income taxes payable	60,690,000	76,606,000
Total current liabilities	2,003,199,000	1,942,681,000
Deferred rent and other liabilities	492,780,000	493,137,000
Income taxes payable	87,059,000	79,985,000
Long term debt	1,500,000,000	1,500,000,000
Total liabilities	4,083,038,000	4,015,803,000
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 337,560 and 336,667 shares, respectively; outstanding 166,892 and 174,178 shares, respectively	3,376,000	3,367,000
Additional paid-in capital	1,849,677,000	1,796,692,000
Retained earnings	9,913,505,000	9,553,376,000
Treasury stock, at cost; 170,668 and 162,489 shares, respectively	(9,147,228,000)	(8,567,932,000)
Accumulated other comprehensive loss	(51,062,000)	(42,313,000)
Total shareholders' equity	2,568,268,000	2,743,190,000
Total liabilities and shareholders' equity	$ 6,651,306,000	$ 6,758,993,000

Consolidated Balance Sheets (C3

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Aug. 29, 2015	Feb. 28, 2015
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	900,000,000	900,000,000
Common stock, shares issued (in shares)	337,560,000	336,667,000
Common stock, shares outstanding (in shares)	166,892,000	174,178,000
Treasury stock, shares (in shares)	170,668,000	162,489,000

Consolidated Statements of Earn

Consolidated Statements of Earnings (Unaudited) - USD ($) shares in Thousands	3 Months Ended		6 Months Ended
	Aug. 29, 2015	Aug. 30, 2014	Aug. 29, 2015	Aug. 30, 2014
Net sales	$ 2,995,469,000	$ 2,944,905,000	$ 5,733,964,000	$ 5,601,603,000
Cost of sales	1,854,519,000	1,810,860,000	3,548,881,000	3,436,673,000
Gross profit	1,140,950,000	1,134,045,000	2,185,083,000	2,164,930,000
Selling, general and administrative expenses	790,756,000	765,304,000	1,561,620,000	1,495,488,000
Operating profit	350,194,000	368,741,000	623,463,000	669,442,000
Interest expense, net	25,053,000	9,528,000	44,954,000	11,622,000
Earnings before provision for income taxes	325,141,000	359,213,000	578,509,000	657,820,000
Provision for income taxes	123,463,000	135,260,000	218,380,000	246,815,000
Net earnings	$ 201,678,000	$ 223,953,000	$ 360,129,000	$ 411,005,000
Net earnings per share - Basic (in dollars per share)	$ 1.22	$ 1.18	$ 2.16	$ 2.11
Net earnings per share - Diluted (in dollars per share)	$ 1.21	$ 1.17	$ 2.13	$ 2.09
Weighted average shares outstanding - Basic (in shares)	165,024	189,625	166,898	194,622
Weighted average shares outstanding - Diluted (in shares)	166,633	191,496	168,883	196,796

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Aug. 29, 2015	Aug. 30, 2014	Aug. 29, 2015	Aug. 30, 2014
Net earnings	$ 201,678,000	$ 223,953,000	$ 360,129,000	$ 411,005,000
Other comprehensive income (loss):
Change in temporary impairment of auction rate securities, net of taxes	1,222,000	(169,000)	1,186,000	(131,000)
Pension adjustment, net of taxes	(432,000)	376,000	(441,000)	448,000
Currency translation adjustment	(10,471,000)	(559,000)	(9,494,000)	2,912,000
Other comprehensive income (loss)	(9,681,000)	(352,000)	(8,749,000)	3,229,000
Comprehensive income	$ 191,997,000	$ 223,601,000	$ 351,380,000	$ 414,234,000

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Aug. 29, 2015	Aug. 30, 2014
Cash Flows from Operating Activities:
Net earnings	$ 360,129,000	$ 411,005,000
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	127,113,000	117,471,000
Stock-based compensation	33,859,000	33,760,000
Excess tax benefit from stock-based compensation	(10,331,000)	(8,081,000)
Deferred income taxes	(10,798,000)	(26,086,000)
Other	1,169,000	(756,000)
Increase in assets:
Merchandise inventories	(147,486,000)	(178,592,000)
Trading investment securities	(2,134,000)	(5,209,000)
Other current assets	(56,272,000)	(28,839,000)
Other assets	(6,782,000)	(2,174,000)
Increase in liabilities:
Accounts payable	81,421,000	195,364,000
Accrued expenses and other current liabilities	18,115,000	21,196,000
Merchandise credit and gift card liabilities	11,356,000	10,373,000
Income taxes payable	1,174,000	1,865,000
Deferred rent and other liabilities	8,800,000	3,683,000
Net cash provided by operating activities	409,333,000	544,980,000
Cash Flows from Investing Activities:
Purchase of held-to-maturity investment securities	(16,873,000)	(84,367,000)
Redemption of held-to-maturity investment securities	126,875,000	513,750,000
Capital expenditures	(160,805,000)	(155,300,000)
Net cash (used in) provided by investing activities	(50,803,000)	274,083,000
Cash Flows from Financing Activities:
Proceeds from exercise of stock options	7,879,000	9,704,000
Proceeds from issuance of senior unsecured notes	0	1,500,000,000
Payment of deferred financing costs	0	(10,157,000)
Prepayment under share repurchase agreement	0	(165,000,000)
Excess tax benefit from stock-based compensation	10,331,000	8,081,000
Repurchase of common stock, including fees	(579,296,000)	(1,303,260,000)
Net cash (used in) provided by financing activities	(561,086,000)	39,368,000
Effect of exchange rate changes on cash and cash equivalents	(5,455,000)	1,680,000
Net (decrease) increase in cash and cash equivalents	(208,011,000)	860,111,000
Cash and cash equivalents:
Beginning of period	875,574,000	366,516,000
End of period	$ 667,563,000	$ 1,226,627,000

Note 1 - Basis of Presentation

Note 1 - Basis of Presentation	6 Months Ended
	Aug. 29, 2015
Notes to Financial Statements
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 August 29, 2015 and February 28, 2015 and the results of its operations and comprehensive income for the three and six months ended August 29, 2015 and August 30, 2014, respectively, and its cash flows for the six months ended August 29, 2015 and August 30, 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. The Company sells a wide assortment of domestics merchandise and home furnishings. Domestics merchandise includes categories such as bed linens and related items, bath items and kitchen textiles. Home furnishings include categories such as kitchen and tabletop items, fine tabletop, basic housewares, general home furnishings, consumables and certain juvenile products. Sales of domestics merchandise and home furnishings for the Company accounted for approximately 39.4% and 60.6% of net sales, respectively, for the three months ended August 29, 2015 and approximately 39.3% and 60.7% of net sales, respectively, for the three months ended August 30, 2014. Sales of domestics merchandise and home furnishings for the Company accounted for approximately 38.1% and 61.9% of net sales, respectively, for the six months ended August 29, 2015 and approximately 37.9% and 62.1% of net sales, respectively, for the six months ended August 30, 2014. Net sales outside of the U.S. were not material for the three and six months ended August 29, 2015 and August 30, 2014.

Note 2 - Fair Value Measurement

Note 2 - Fair Value Measurements	6 Months Ended
	Aug. 29, 2015
Notes to Financial Statements
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 August 29, 2015, the Company’s financial assets utilizing Level 1 inputs included short term available-for-sale securities consisting of preferred shares of closed end municipal bond funds for which a tender offer has been accepted in the second quarter of fiscal 2015 and the 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 $1.462 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	6 Months Ended
	Aug. 29, 2015
Notes to Financial Statements
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 $103.5 million and $90.3 million as of August 29, 2015 and February 28, 2015, respectively.

Note 4 - Investment Securities

Note 4 - Investment Securities	6 Months Ended
	Aug. 29, 2015
Notes to Financial Statements
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]	4) Investment Securities The Company’s investment securities as of August 29, 2015 and February 28, 2015 are as follows: (in millions) August 29, February 28, Available-for-sale securities: Short term $ 28.9 $ - Long term 19.2 47.9 Trading securities: Long term 51.3 49.2 Held-to-maturity securities: Short term - 110.0 Total investment securities $ 99.4 $ 207.1 Auction Rate Securities As of August 29, 2015, the Company’s short term available-for-sale securities of approximately $28.9 million represented approximately $30.7 million par value of auction rate securities at a price of approximately 94% of par value during the second quarter of fiscal 2015. The Company incurred a realized loss on these securities of approximately $1.8 million which is included within interest expense, net in the consolidated statement of earnings for the three and six months ended August 29, 2015. Subsequent to the end of the fiscal second quarter of 2015, the Company redeemed these securities for $28.9 million. As of August 29, 2015 and February 28, 2015, the Company’s long term available-for-sale investment securities represented approximately $20.3 million and $51.0 million par value of auction rate securities, respectively, consisting of preferred shares of closed end municipal bond funds, less temporary valuation adjustments of approximately $1.1 million and $3.1 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 August 29, 2015, the Company had no short term held-to-maturity securities. As of February 28, 2015, the Company’s short term held-to-maturity securities included approximately $110.0 million 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 $51.3 million and $49.2 million as of August 29, 2015 and February 28, 2015, respectively.

Note 5 - Property and Equipment

Note 5 - Property and Equipment	6 Months Ended
	Aug. 29, 2015
Notes to Financial Statements
Property, Plant and Equipment Disclosure [Text Block]	5) Property and Equipment As of August 29, 2015 and February 28, 2015, included in property and equipment, net is accumulated depreciation of approximately $2.4 billion and $2.3 billion, respectively.

Note 6 - Long Term Debt

Note 6 - Long Term Debt	6 Months Ended
	Aug. 29, 2015
Notes to Financial Statements
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 August 29, 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 six months ended August 29, 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 August 29, 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 $18.1 million and $36.8 million for the three and six months ended August 29, 2015, respectively. Lines of Credit At August 29, 2015, the Company maintained two uncommitted lines of credit of $100 million each, with expiration dates of February 28, 2016 and August 31, 2016, 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 six months of fiscal 2015, 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 7 - Shareholders' Equity

Note 7 - Shareholders' Equity	6 Months Ended
	Aug. 29, 2015
Notes to Financial Statements
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 six months of fiscal 2015, the Company repurchased approximately 8.2 million shares of its common stock for a total cost of approximately $579.3 million, bringing the aggregate total of common stock repurchased to approximately 170.7 million shares for a total cost of approximately $9.1 billion since the initial authorization in December 2004. The Company has approximately $304.7 million remaining of authorized share repurchases as of August 29, 2015. In September 2015, subsequent to the fiscal second quarter, the Company’s Board of Directors authorized a new $2.5 billion share repurchase program. The Company is currently planning the new share repurchase program to commence after completion of the existing share repurchase program. The Company currently anticipates this new program will be funded from current cash and future cash flows.

Note 8 - Stock-Based Compensati

Note 8 - Stock-Based Compensation	6 Months Ended
	Aug. 29, 2015
Notes to Financial Statements
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 and six months ended August 29, 2015 was approximately $16.1 million ($10.0 million after tax or $0.06 per diluted share) and approximately $33.9 million ($21.1 million after tax or $0.12 per diluted share), respectively. Stock-based compensation expense for the three and six months ended August 30, 2014 was approximately $15.6 million ($9.7 million after tax or $0.05 per diluted share) and approximately $33.8 million ($21.1 million after tax or $0.11 per diluted share), respectively. In addition, the amount of stock-based compensation cost capitalized for the six months ended August 29, 2015 and August 30, 2014 was approximately $1.0 million and $0.9 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 August 29, 2015, unrecognized compensation expense related to the unvested portion of the Company’s stock options, restricted stock awards and performance stock units was $28.8 million, $148.9 million and $30.1 million, respectively, which is expected to be recognized over a weighted average period of 3.2 years, 4.1 years and 2.5 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. 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. Six Months Ended Black-Scholes Valuation Assumptions (1) August 29, August 30, 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 six months ended August 29, 2015 were as follows: (Shares in thousands) Number of Stock Options Weighted Average Options outstanding, beginning of period 3,682 $ 51.05 Granted 501 70.96 Exercised (221 ) 35.62 Forfeited or expired (91 ) 63.12 Options outstanding, end of period 3,871 $ 54.22 Options exercisable, end of period 2,392 $ 46.85 The weighted average fair value for the stock options granted during the first six 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 August 29, 2015 was 4.2 years and $42.6 million, respectively. The weighted average remaining contractual term and the aggregate intrinsic value for options exercisable as of August 29, 2015 was 2.9 years and $40.6 million, respectively. The total intrinsic value for stock options exercised during the first six 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 six months of fiscal 2015 were $7.9 million and the net associated income tax benefit was $10.2 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 six months ended August 29, 2015 were as follows: (Shares in thousands) Number of Restricted Weighted Average Unvested restricted stock, beginning of period 3,592 $ 57.90 Granted 709 70.36 Vested (907 ) 48.89 Forfeited (134 ) 61.47 Unvested restricted stock, end of period 3,260 $ 62.97 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 six months ended August 29, 2015 were as follows: (Shares in thousands) Number of Performance Stock Units Weighted Average Grant-Date Fair 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	6 Months Ended
	Aug. 29, 2015
Notes to Financial Statements
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 and six months ended August 29, 2015 of approximately 2.7 million and 2.1 million, respectively, and August 30, 2014 of approximately 1.8 million and 2.0 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	6 Months Ended
	Aug. 29, 2015
Notes to Financial Statements
Cash Flow, Supplemental Disclosures [Text Block]	10) Supplemental Cash Flow Information The Company paid income taxes of $226.2 million and $269.8 million in the first six months of fiscal 2015 and 2014, respectively. In addition, the Company had interest payments of approximately $40.8 million and $4.5 million in the first six months of fiscal 2015 and 2014, respectively. The Company recorded an accrual for capital expenditures of $18.1 million and $8.4 million as of August 29, 2015 and August 30, 2014, respectively.

Note 4 - Investment Securities

Note 4 - Investment Securities (Tables)	6 Months Ended
	Aug. 29, 2015
Notes Tables
Marketable Securities [Table Text Block]	(in millions) August 29, February 28, Available-for-sale securities: Short term $ 28.9 $ - Long term 19.2 47.9 Trading securities: Long term 51.3 49.2 Held-to-maturity securities: Short term - 110.0 Total investment securities $ 99.4 $ 207.1

Note 8 - Stock-Based Compensa18

Note 8 - Stock-Based Compensation (Tables)	6 Months Ended
	Aug. 29, 2015
Notes Tables
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	Six Months Ended Black-Scholes Valuation Assumptions (1) August 29, August 30, 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 Options outstanding, beginning of period 3,682 $ 51.05 Granted 501 70.96 Exercised (221 ) 35.62 Forfeited or expired (91 ) 63.12 Options outstanding, end of period 3,871 $ 54.22 Options exercisable, end of period 2,392 $ 46.85
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block]	(Shares in thousands) Number of Restricted Weighted Average Unvested restricted stock, beginning of period 3,592 $ 57.90 Granted 709 70.36 Vested (907 ) 48.89 Forfeited (134 ) 61.47 Unvested restricted stock, end of period 3,260 $ 62.97
Share-based Compensation, Performance Shares Award Unvested Activity [Table Text Block]	(Shares in thousands) Number of Performance Stock Units Weighted Average Grant-Date Fair 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 Textual)	3 Months Ended		6 Months Ended
	Aug. 29, 2015	Aug. 30, 2014	Aug. 29, 2015	Aug. 30, 2014
Product Concentration Risk [Member] | Domestic Merchandise [Member] | Sales Revenue, Net [Member]
Concentration Risk, Percentage	39.40%	39.30%	38.10%	37.90%
Product Concentration Risk [Member] | Home Furnishings [Member] | Sales Revenue, Net [Member]
Concentration Risk, Percentage	60.60%	60.70%	61.90%	62.10%
Number of Operating Segments	2		2

Note 2 - Fair Value Measureme20

Note 2 - Fair Value Measurements (Details Textual) $ in Millions	Aug. 29, 2015USD ($)
Long-term Debt, Fair Value	$ 1,462
Long-term Debt	$ 1,500

Note 3 - Cash and Cash Equiva21

Note 3 - Cash and Cash Equivalents (Details Textual) - USD ($) $ in Millions	6 Months Ended
	Aug. 29, 2015	Feb. 28, 2015
Number of Business Days for Settlement of Credit and Debit Card Receivable	5 days
Credit and Debit Card Receivables, at Carrying Value	$ 103.5	$ 90.3

Note 4 - Investment Securitie22

Note 4 - Investment Securities (Details Textual) - USD ($)	1 Months Ended	3 Months Ended	6 Months Ended
	Oct. 07, 2015	Aug. 29, 2015	Aug. 29, 2015	Feb. 28, 2015
Auction Rate Securities [Member] | Interest Expense [Member]
Available-for-sale Securities, Gross Realized Gain (Loss)		$ (1,800,000)	$ (1,800,000)
Auction Rate Securities [Member]
Available-for-sale Securities, Current		28,900,000	28,900,000
Available-for-sale Securities, Short-term Investments, Amortized Cost		$ 30,700,000	$ 30,700,000
Available-for-Sale Securities, Current, Percentage of Par Value		94.00%	94.00%
Proceeds from Maturities, Prepayments and Calls of Available-for-sale Securities	$ 28,900,000
Available-for-sale Securities, Long-term Investments, Amortized Cost		$ 20,300,000	$ 20,300,000	$ 51,000,000
Available-for-sale Securities Temporary Impairment Adjustment Accumulated Other Comprehensive Income (Loss)		1,100,000	1,100,000	3,100,000
US Treasury Securities [Member]
Held-to-maturity Securities, Current		0	0	110,000,000
Other Trading Investment Securities [Member]
Deferred Compensation Plan Assets		$ 51,300,000	$ 51,300,000	49,200,000
Held-to-maturity Securities, Current				110,000,000
Available-for-sale Securities, Current		$ 28,900,000	$ 28,900,000	0
Deferred Compensation Plan Assets		$ 51,300,000	$ 51,300,000	$ 49,200,000

Note 4 - Investment Securitie23

Note 4 - Investment Securities - Investment Securities (Details) - USD ($)	Aug. 29, 2015	Feb. 28, 2015
Available-for-sale securities:
Available-for-sale Securities, Current	$ 28,900,000	$ 0
Long term	19,200,000	47,900,000
Trading securities:
Deferred Compensation Plan Assets	$ 51,300,000	49,200,000
Held-to-maturity securities:
Short term		110,000,000
Total investment securities	$ 99,400,000	$ 207,100,000

Note 5 - Property and Equipme24

Note 5 - Property and Equipment (Details Textual) - USD ($) $ in Billions	Aug. 29, 2015	Feb. 28, 2015
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	$ 2.4	$ 2.3

Note 6 - Long Term Debt (Detail

Note 6 - Long Term Debt (Details Textual)	Aug. 06, 2014USD ($)	Jul. 17, 2014USD ($)	Aug. 29, 2015USD ($)	Aug. 29, 2015USD ($)
Senior Unsecured Notes [Member] | The 2024 Notes [Member]
Debt Instrument, Maturity Date		Aug. 1, 2024
Debt Instrument, Face Amount		$ 300,000,000
Debt Instrument, Interest Rate, Stated Percentage		3.749%
Senior Unsecured Notes [Member] | The 2034 Notes [Member]
Debt Instrument, Maturity Date		Aug. 1, 2034
Debt Instrument, Face Amount		$ 300,000,000
Debt Instrument, Interest Rate, Stated Percentage		4.915%
Senior Unsecured Notes [Member] | The 2044 Notes [Member]
Debt Instrument, Maturity Date		Aug. 1, 2044
Debt Instrument, Face Amount		$ 900,000,000
Debt Instrument, Interest Rate, Stated Percentage		5.165%
Revolver [Member] | Revolving Credit Facility [Member]
Proceeds from Lines of Credit			$ 0	$ 0
Line of Credit Facility, Maximum Borrowing Capacity	$ 250,000,000
Debt Instrument, Term	5 years
Senior Unsecured Notes [Member] | Other Assets [Member]
Deferred Finance Costs, Gross			10,100,000	10,100,000
Senior Unsecured Notes [Member]
Interest Expense			18,100,000	36,800,000
Uncommitted Line of Credit, Expiration Date of August 31, 2016 [Member]
Proceeds from Lines of Credit			0
Line of Credit Facility, Maximum Borrowing Capacity			100,000,000	100,000,000
Uncommitted Line of Credit Expiration Date of February 28, 2016 [Member]
Proceeds from Lines of Credit			0
Line of Credit Facility, Maximum Borrowing Capacity			$ 100,000,000	$ 100,000,000
Line of Credit Facility, Number Maintained			2	2

Note 7 - Shareholders' Equity (

Note 7 - Shareholders' Equity (Details Textual) - USD ($) shares in Millions	6 Months Ended		129 Months Ended
	Aug. 29, 2015	Aug. 30, 2014	Aug. 29, 2015	Sep. 30, 2015	Jul. 31, 2014
The 2015 Share Repurchase Program [Member] | Subsequent Event [Member]
Stock Repurchase Program, Authorized Amount				$ 2,500,000,000
Stock Repurchase Program, Authorized Amount					$ 9,450,000,000
Treasury Stock, Shares, Acquired	8.2		170.7
Payments for Repurchase of Common Stock	$ 579,296,000	$ 1,303,260,000	$ 9,100,000,000
Stock Repurchase Program, Remaining Authorized Repurchase Amount	$ 304,700,000		$ 304,700,000

Note 8 - Stock-Based Compensa27

Note 8 - Stock-Based Compensation (Details Textual) - USD ($) $ / shares in Units, shares in Millions	3 Months Ended		6 Months Ended
	Aug. 29, 2015	Aug. 30, 2014	Aug. 29, 2015	Aug. 30, 2014
The 2012 Plan [Member] | Restricted Stock [Member]
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
The 2012 Plan [Member] | Employee Stock Option [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			3 years
The 2012 Plan [Member] | Employee Stock Option [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			5 years
The 2012 Plan [Member] | Employee Stock Option [Member]
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
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value			$ 23.12	$ 20.96
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term			4 years 73 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value	$ 42,600,000		$ 42,600,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term			2 years 328 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value	$ 40,600,000		$ 40,600,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value			8,200,000	$ 6,400,000
Proceeds from Stock Options Exercised			7,900,000
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options			$ 10,200,000
The 2012 Plan [Member] | Performance Share Units [Member] | Minimum [Member]
Share Based Compensation Arrangement By Share Based Payment Award Target Award Percentage	0.00%		0.00%
The 2012 Plan [Member] | Performance Share Units [Member] | Maximum [Member]
Share Based Compensation Arrangement By Share Based Payment Award Target Award Percentage	150.00%		150.00%
The 2012 Plan [Member] | Performance Share Units [Member] | One-year Performance Period Awards [Member]
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
The 2012 Plan [Member] | Performance Share Units [Member] | Scenario Assumption [Member]
Share Based Compensation Arrangement By Share Based Payment Award Target Award Percentage	100.00%		100.00%
The 2012 Plan [Member] | Performance Share Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			4 years
The 2012 Plan [Member] | Employee Stock Option Issued Since May 10, 2010 [Member]
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
The 2012 Plan [Member] | Employee Stock Option Issued Prior To May 10, 2010 [Member]
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
The 2012 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	43.2		43.2
Restricted Stock [Member]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 148,900,000		$ 148,900,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition			4 years 36 days
Employee Stock Option [Member]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	28,800,000		$ 28,800,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition			3 years 73 days
Performance Share Units [Member]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	30,100,000		$ 30,100,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition			2 years 182 days
Allocated Share-based Compensation Expense	16,100,000	$ 15,600,000	$ 33,900,000	33,800,000
Allocated Share-based Compensation Expense, Net of Tax	$ 10,000,000	$ 9,700,000	$ 21,100,000	$ 21,100,000
Stock Based Compensation Expense Impact On Diluted Earnings Per Share	$ 0.06	$ 0.05	$ 0.12	$ 0.11
Employee Service Share-based Compensation, Allocation of Recognized Period Costs, Capitalized Amount			$ 1,000,000	$ 900,000
Proceeds from Stock Options Exercised			$ 7,879,000	$ 9,704,000

Note 8 - Stock-Based Compensa28

Note 8 - Stock-Based Compensation - Assumptions Used to Estimate the Black-Scholes Fair Value of Stock Options Granted (Details)		6 Months Ended
		Aug. 29, 2015	Aug. 30, 2014
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]	0.00%	0.00%
[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 8 - Stock-Based Compensa29

Note 8 - Stock-Based Compensation - Changes in the Company's Stock Options (Details) - Employee Stock Option [Member] shares in Thousands	6 Months Ended
	Aug. 29, 2015$ / sharesshares
Options outstanding, beginning of period (in shares)	3,682
Options outstanding, beginning of period (in dollars per share) | $ / shares	$ 51.05
Granted (in shares)	501
Granted (in dollars per share) | $ / shares	$ 70.96
Exercised (in shares)	(221)
Exercised (in dollars per share) | $ / shares	$ 35.62
Forfeited or expired (in shares)	(91)
Forfeited or expired (in dollars per share) | $ / shares	$ 63.12
Options outstanding, end of period (in shares)	3,871
Options outstanding, end of period (in dollars per share) | $ / shares	$ 54.22
Options exercisable, end of period (in shares)	2,392
Options exercisable, end of period (in dollars per share) | $ / shares	$ 46.85

Note 8 - Stock-Based Compensa30

Note 8 - Stock-Based Compensation - Changes in the Company's Restricted Stock (Details) - Restricted Stock [Member] shares in Thousands	6 Months Ended
	Aug. 29, 2015$ / sharesshares
Unvested restricted stock, beginning of period (in shares)	3,592
Unvested restricted stock, beginning of period (in dollars per share) | $ / shares	$ 57.90
Granted (in shares)	709
Granted (in dollars per share) | $ / shares	$ 70.36
Vested (in shares)	(907)
Vested (in dollars per share) | $ / shares	$ 48.89
Forfeited (in shares)	(134)
Forfeited (in dollars per share) | $ / shares	$ 61.47
Unvested restricted stock, end of period (in shares)	3,260
Unvested restricted stock, end of period (in dollars per share) | $ / shares	$ 62.97

Note 8 - Stock-Based Compensa31

Note 8 - Stock-Based Compensation - Changes in the Company's Performance Stock Units (Details) - Performance Shares [Member] shares in Thousands	6 Months Ended
	Aug. 29, 2015$ / sharesshares
Unvested restricted stock, beginning of period (in shares)	391
Unvested restricted stock, beginning of period (in dollars per share) | $ / shares	$ 62.34
Granted (in shares)	370
Granted (in dollars per share) | $ / shares	$ 70.96
Vested (in shares)	(98)
Vested (in dollars per share) | $ / shares	$ 62.34
Forfeited (in shares)	(36)
Forfeited (in dollars per share) | $ / shares	$ 67.15
Unvested restricted stock, end of period (in shares)	627
Unvested restricted stock, end of period (in dollars per share) | $ / shares	$ 67.15

Note 9 - Earnings Per Share (De

Note 9 - Earnings Per Share (Details Textual) - shares shares in Millions	3 Months Ended		6 Months Ended
	Aug. 29, 2015	Aug. 30, 2014	Aug. 29, 2015	Aug. 30, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	2.7	1.8	2.1	2

Note 10 - Supplemental Cash F33

Note 10 - Supplemental Cash Flow Information (Details Textual) - USD ($) $ in Millions	6 Months Ended
	Aug. 29, 2015	Aug. 30, 2014
Income Taxes Paid	$ 226.2	$ 269.8
Interest Paid	40.8	4.5
Capital Expenditures Incurred but Not yet Paid	$ 18.1	$ 8.4