Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Feb. 27, 2016 | Mar. 26, 2016 | Aug. 29, 2015 | |
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) | 155,832,064 | ||
Entity Public Float | $ 9,917,583,923 | ||
Document Type | 10-K | ||
Document Period End Date | Feb. 27, 2016 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Feb. 27, 2016 | Feb. 28, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 515,573,000 | $ 875,574,000 |
Short term investment securities | 86,197,000 | 109,992,000 |
Merchandise inventories | 2,848,119,000 | 2,731,881,000 |
Other current assets | 376,073,000 | 366,156,000 |
Total current assets | 3,825,962,000 | 4,083,603,000 |
Long term investment securities | 71,289,000 | 97,160,000 |
Property and equipment, net | 1,725,043,000 | 1,676,700,000 |
Goodwill | 487,169,000 | 486,279,000 |
Other assets | 389,477,000 | 415,251,000 |
Total assets | 6,498,940,000 | 6,758,993,000 |
Liabilities and Shareholders' Equity | ||
Accounts payable | 1,100,958,000 | 1,156,368,000 |
Accrued expenses and other current liabilities | 409,445,000 | 403,547,000 |
Merchandise credit and gift card liabilities | 297,930,000 | 306,160,000 |
Current income taxes payable | 58,892,000 | 76,606,000 |
Total current liabilities | 1,867,225,000 | 1,942,681,000 |
Deferred rent and other liabilities | 499,368,000 | 493,137,000 |
Income taxes payable | 72,807,000 | 79,985,000 |
Long term debt | 1,500,000,000 | 1,500,000,000 |
Total liabilities | $ 3,939,400,000 | $ 4,015,803,000 |
Commitments and contingencies | ||
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 337,613 and 336,667 shares, respectively; outstanding 156,690 and 174,178 shares, respectively | 3,377,000 | 3,367,000 |
Additional paid-in capital | 1,884,813,000 | 1,796,692,000 |
Retained earnings | 10,394,865,000 | 9,553,376,000 |
Treasury stock, at cost | (9,668,517,000) | (8,567,932,000) |
Accumulated other comprehensive loss | (54,998,000) | (42,313,000) |
Total shareholders' equity | 2,559,540,000 | 2,743,190,000 |
Total liabilities and shareholders' equity | $ 6,498,940,000 | $ 6,758,993,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Feb. 27, 2016 | 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) | 337,613,000 | 336,667,000 |
Common stock, shares outstanding (in shares) | 156,690,000 | 174,178,000 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Feb. 27, 2016 | Feb. 28, 2015 | Mar. 01, 2014 | |
Net sales | $ 12,103,887 | $ 11,881,176 | $ 11,503,963 |
Cost of sales | 7,483,577 | 7,261,397 | 6,938,381 |
Gross profit | 4,620,310 | 4,619,779 | 4,565,582 |
Selling, general and administrative expenses | 3,205,407 | 3,065,486 | 2,950,995 |
Operating profit | 1,414,903 | 1,554,293 | 1,614,587 |
Interest expense, net | 87,458 | 50,458 | 1,140 |
Earnings before provision for income taxes | 1,327,445 | 1,503,835 | 1,613,447 |
Provision for income taxes | 485,956 | 546,361 | 591,157 |
Net earnings | $ 841,489 | $ 957,474 | $ 1,022,290 |
Net earnings per share - Basic (in dollars per share) | $ 5.15 | $ 5.13 | $ 4.85 |
Net earnings per share - Diluted (in dollars per share) | $ 5.10 | $ 5.07 | $ 4.79 |
Weighted average shares outstanding - Basic (in shares) | 163,257 | 186,659 | 210,710 |
Weighted average shares outstanding - Diluted (in shares) | 165,016 | 188,880 | 213,363 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 27, 2016 | Feb. 28, 2015 | Mar. 01, 2014 | |
Net earnings | $ 841,489 | $ 957,474 | $ 1,022,290 |
Other comprehensive (loss) income: | |||
Change in temporary valuation adjustment of auction rate securities, net of taxes | 1,584 | 143 | (792) |
Pension adjustment, net of taxes | (351) | (5,552) | 3,249 |
Currency translation adjustment | (13,918) | (23,057) | (11,984) |
Other comprehensive loss | (12,685) | (28,466) | (9,527) |
Comprehensive income | $ 828,804 | $ 929,008 | $ 1,012,763 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | AOCI Attributable to Parent [Member] | Total |
Balance (in shares) at Mar. 02, 2013 | 332,696 | (111,207) | ||||
Balance at Mar. 02, 2013 | $ 3,327 | $ 1,540,451 | $ 7,573,612 | $ (5,033,340) | $ (4,320) | $ 4,079,730 |
Net earnings | 1,022,290 | 1,022,290 | ||||
Other comprehensive loss | (9,527) | (9,527) | ||||
Shares sold under employee stock option plans, net of taxes (in shares) | 1,375 | |||||
Shares sold under employee stock option plans, net of taxes | $ 14 | 74,766 | 74,780 | |||
Issuance of restricted shares, net (in shares) | 868 | |||||
Issuance of restricted shares, net | $ 9 | (9) | ||||
Stock-based compensation expense, net | 57,842 | 57,842 | ||||
Director fees paid in stock (in shares) | 2 | |||||
Director fees paid in stock | 167 | $ 167 | ||||
Repurchase of common stock, including fees (in shares) | (18,329) | 18,300 | ||||
Repurchase of common stock, including fees | $ (1,283,995) | $ (1,283,995) | ||||
Balance (in shares) at Mar. 01, 2014 | 334,941 | (129,536) | ||||
Balance at Mar. 01, 2014 | $ 3,350 | 1,673,217 | 8,595,902 | $ (6,317,335) | (13,847) | 3,941,287 |
Net earnings | 957,474 | 957,474 | ||||
Other comprehensive loss | (28,466) | (28,466) | ||||
Shares sold under employee stock option plans, net of taxes (in shares) | 1,033 | |||||
Shares sold under employee stock option plans, net of taxes | $ 10 | 54,907 | 54,917 | |||
Issuance of restricted shares, net (in shares) | 691 | |||||
Issuance of restricted shares, net | $ 7 | (7) | ||||
Stock-based compensation expense, net | 68,408 | 68,408 | ||||
Director fees paid in stock (in shares) | 2 | |||||
Director fees paid in stock | 167 | $ 167 | ||||
Repurchase of common stock, including fees (in shares) | (32,953) | 33,000 | ||||
Repurchase of common stock, including fees | $ (2,250,597) | $ (2,250,597) | ||||
Balance (in shares) at Feb. 28, 2015 | 336,667 | (162,489) | ||||
Balance at Feb. 28, 2015 | $ 3,367 | 1,796,692 | 9,553,376 | $ (8,567,932) | (42,313) | 2,743,190 |
Net earnings | 841,489 | 841,489 | ||||
Other comprehensive loss | (12,685) | (12,685) | ||||
Shares sold under employee stock option plans, net of taxes (in shares) | 255 | |||||
Shares sold under employee stock option plans, net of taxes | $ 3 | 18,944 | 18,947 | |||
Issuance of restricted shares, net (in shares) | 590 | |||||
Issuance of restricted shares, net | $ 6 | (6) | ||||
Stock-based compensation expense, net | 69,017 | 69,017 | ||||
Director fees paid in stock (in shares) | 3 | |||||
Director fees paid in stock | 167 | $ 167 | ||||
Repurchase of common stock, including fees (in shares) | (18,434) | 18,400 | ||||
Repurchase of common stock, including fees | $ (1,100,585) | $ (1,100,585) | ||||
Balance (in shares) at Feb. 27, 2016 | 337,613 | (180,923) | ||||
Balance at Feb. 27, 2016 | $ 3,377 | 1,884,813 | $ 10,394,865 | $ (9,668,517) | $ (54,998) | $ 2,559,540 |
Payment and vesting of performance stock units (in shares) | 98 | |||||
Payment and vesting of performance stock units | $ 1 | $ (1) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Feb. 27, 2016 | Feb. 28, 2015 | Mar. 01, 2014 | |
Cash Flows from Operating Activities: | |||
Net earnings | $ 841,489,000 | $ 957,474,000 | $ 1,022,290,000 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 273,947,000 | 239,193,000 | 220,116,000 |
Stock-based compensation | 66,965,000 | 66,539,000 | 56,244,000 |
Excess tax benefit from stock-based compensation | (10,370,000) | (14,561,000) | (19,126,000) |
Deferred income taxes | 56,997,000 | (22,295,000) | 11,729,000 |
Other | 398,000 | (2,244,000) | (1,784,000) |
(Increase) decrease in assets: | |||
Merchandise inventories | (121,748,000) | (161,506,000) | (117,926,000) |
Trading investment securities | (2,270,000) | (9,530,000) | (11,382,000) |
Other current assets | (16,171,000) | 19,012,000 | (5,287,000) |
Other assets | (27,904,000) | (254,000) | (3,812,000) |
(Decrease) increase in liabilities: | |||
Accounts payable | (48,148,000) | 44,563,000 | 179,522,000 |
Accrued expenses and other current liabilities | 6,694,000 | 18,494,000 | (1,336,000) |
Merchandise credit and gift card liabilities | (7,872,000) | 22,520,000 | 33,014,000 |
Income taxes payable | (15,036,000) | 17,656,000 | 15,729,000 |
Deferred rent and other liabilities | 15,213,000 | 3,428,000 | 3,735,000 |
Net cash provided by operating activities | 1,012,184,000 | 1,178,489,000 | 1,381,726,000 |
Cash Flows from Investing Activities: | |||
Purchase of held-to-maturity investment securities | (103,017,000) | (298,094,000) | (1,156,634,000) |
Redemption of held-to-maturity investment securities | 126,875,000 | $ 677,500,000 | $ 1,117,500,000 |
Redemption of available-for-sale investment securities | 28,905,000 | ||
Capital expenditures | $ (328,395,000) | $ (330,637,000) | $ (320,812,000) |
Investment in unconsolidated joint venture | (3,436,000) | ||
Net cash (used in) provided by investing activities | $ (275,632,000) | $ 48,769,000 | (363,382,000) |
Cash Flows from Financing Activities: | |||
Proceeds from Stock Options Exercised | 9,109,000 | 41,197,000 | $ 54,815,000 |
Proceeds from Issuance of Long-term Debt | 0 | 1,500,000,000 | |
Payment of deferred financing costs | 0 | $ (10,092,000) | |
Payment of other liabilities | (7,646,000) | ||
Excess tax benefit from stock-based compensation | 10,370,000 | $ 14,561,000 | $ 19,126,000 |
Repurchase of common stock, including fees | (1,100,585,000) | (2,250,597,000) | (1,283,995,000) |
Net cash used in financing activities | (1,088,752,000) | (704,931,000) | (1,210,054,000) |
Effect of exchange rate changes on cash and cash equivalents | (7,801,000) | (13,269,000) | (6,745,000) |
Net (decrease) increase in cash and cash equivalents | (360,001,000) | 509,058,000 | (198,455,000) |
Cash and cash equivalents: | |||
Beginning of period | 875,574,000 | 366,516,000 | 564,971,000 |
End of period | $ 515,573,000 | $ 875,574,000 | $ 366,516,000 |
Note 1 - Summary of Significant
Note 1 - Summary of Significant Accounting Policies and Related Matters | 12 Months Ended |
Feb. 27, 2016 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RELATED MATTERS A. Nature of Operations Bed Bath & Beyond Inc. and subsidiaries (the “Company”) is a retailer which operates under the names Bed Bath & Beyond (“BBB”), Christmas Tree Shops, Christmas Tree Shops andThat! or andThat! (collectively, “CTS”), Harmon or Harmon Face Values (collectively, “Harmon”), buybuy BABY and World Market, Cost Plus World Market or Cost Plus (collectively, “Cost Plus World Market”). Customers can purchase products from the Company either in-store, online, with a mobile device or through a contact center. The Company generally has the ability to have customer purchases picked up in-store or shipped direct to the customer from the Company’s distribution facilities, stores or vendors. In the second quarter of fiscal 2015, the Company acquired Of a Kind, an e-commerce website that features specially commissioned, limited edition items from emerging fashion and home designers. The Company also operates Linen Holdings, a provider of a variety of textile products, amenities and other goods to institutional customers in the hospitality, cruise line, healthcare and other industries. Additionally, the Company is a partner in a joint venture which operates seven retail stores in Mexico under the name Bed Bath & Beyond. 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 U.S. generally accepted accounting principles and therefore is not a reportable segment. Net sales outside of the U.S. were not material for fiscal 2015, 2014 and 2013. 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 accounted for approximately 35.9% and 64.1% of net sales, respectively, for fiscal 2015 and fiscal 2014, and approximately 36.1% and 63.9% of net sales, respectively, for fiscal 2013. As the Company operates in the retail industry, its results of operations are affected by general economic conditions and consumer spending habits. Since the date of acquisition, Of a Kind’s results of operations, which are not material, have been included in the Company’s results of operations for the fiscal year ended February 27, 2016. B. Fiscal Year The Company’s fiscal year is comprised of the 52 or 53 week period ending on the Saturday nearest February 28. Accordingly, fiscal 2015, fiscal 2014 and fiscal 2013 represented 52 weeks and ended on February 27, 2016, February 28, 2015 and March 1, 2014, respectively. C. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. The Company accounts for its investment in the joint venture under the equity method. Certain reclassifications have been made to the fiscal 2014 and 2013 consolidated statements of cash flows to conform to the fiscal 2015 consolidated statement of cash flows presentation. All significant intercompany balances and transactions have been eliminated in consolidation. D. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires the Company to establish accounting policies and to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on historical experience and on other assumptions that it believes to be relevant under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. In particular, judgment is used in areas such as inventory valuation, impairment of long-lived assets, impairment of auction rate securities, goodwill and other indefinite lived intangible assets, accruals for self insurance, litigation, store opening, expansion, relocation and closing costs, the provision for sales returns, vendor allowances, stock-based compensation and income and certain other taxes. Actual results could differ from these estimates. E. Cash and Cash Equivalents The Company considers all highly liquid instruments purchased with original maturities of three months or less to be cash equivalents. Included in cash and cash equivalents are credit and debit card receivables from banks, which typically settle within 5 business days, of $89.4 million and $90.3 million as of February 27, 2016 and February 28, 2015, respectively. F. Investment Securities Investment securities consist primarily of U.S. Treasury Bills with remaining maturities of less than one year and auction rate securities, which are securities with interest rates that reset periodically through an auction process. The U.S. Treasury Bills are classified as short term held-to-maturity securities and are stated at their amortized cost which approximates fair value. Auction rate securities are classified as available-for-sale and are stated at fair value, which had historically been consistent with cost or par value due to interest rates which reset periodically, typically every 7, 28 or 35 days. As a result, there generally were no cumulative gross unrealized holding gains or losses relating to these auction rate securities. However, beginning in mid-February 2008 due to market conditions, the auction process for the Company’s auction rate securities failed and continues to fail. These failed auctions result in a lack of liquidity in the securities, and affect their estimated fair values at February 27, 2016 and February 28, 2015, but do not affect the underlying collateral of the securities. (See “Fair Value Measurements,” Note 2 and “Investment Securities,” Note 3). All income from these investments is recorded as interest income. Those investment securities which the Company has the ability and intent to hold until maturity are classified as held-to-maturity investments and are stated at amortized cost. Those investment securities which are bought and held principally for the purpose of selling them in the near term are classified as trading securities and are stated at fair market value. Premiums are amortized and discounts are accreted over the life of the security as adjustments to interest income using the effective interest method. Dividend and interest income are recognized when earned. G. Inventory Valuation Merchandise inventories are stated at the lower of cost or market. Inventory costs are primarily calculated using the weighted average retail inventory method. Under the retail inventory method, the valuation of inventories at cost and the resulting gross margins are calculated by applying a cost-to-retail ratio to the retail values of inventories. The cost associated with determining the cost-to-retail ratio includes: merchandise purchases, net of returns to vendors, discounts and volume and incentive rebates; inbound freight expenses; duty, insurance and commissions. At any one time, inventories include items that have been written down to the Company’s best estimate of their realizable value. Judgment is required in estimating realizable value and factors considered are the age of merchandise and anticipated demand. Actual realizable value could differ materially from this estimate based upon future customer demand or economic conditions. The Company estimates its reserve for shrinkage throughout the year based on historical shrinkage and any current trends, if applicable. Actual shrinkage is recorded at year end based upon the results of the Company’s physical inventory counts for locations at which counts were conducted. For locations where physical inventory counts were not conducted in the fiscal year, an estimated shrink reserve is recorded based on historical shrinkage and any current trends, if applicable. Historically, the Company’s shrinkage has not been volatile. The Company accrues for merchandise in transit once it takes legal ownership and title to the merchandise; as such, an estimate for merchandise in transit is included in the Company’s merchandise inventories. H. Property and Equipment Property and equipment are stated at cost. Depreciation is computed primarily using the straight-line method over the estimated useful lives of the assets (forty years for buildings; five to twenty years for furniture, fixtures and equipment; and three to ten years for computer equipment and software). Leasehold improvements are amortized using the straight-line method over the lesser of their estimated useful life or the life of the lease. Depreciation expense is primarily included within selling, general and administrative expenses. The cost of maintenance and repairs is charged to earnings as incurred; significant renewals and betterments are capitalized. Maintenance and repairs amounted to $130.9 million, $120.3 million and $111.9 million for fiscal 2015, 2014 and 2013, respectively. I. Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment when events or changes in circumstances indicate the carrying value of these assets may exceed their current fair values. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the assets. Assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. The assets and liabilities of a disposal group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet. The Company has not historically recorded any material impairment to its long-lived assets. In the future, if events or market conditions affect the estimated fair value to the extent that a long-lived asset is impaired, the Company will adjust the carrying value of these long-lived assets in the period in which the impairment occurs. J. Goodwill and Other Indefinite Lived Intangible Assets The Company reviews goodwill and other intangibles that have indefinite lives for impairment annually or when events or changes in circumstances indicate the carrying value of these assets might exceed their current fair values. Impairment testing is based upon the best information available, including estimates of fair value which incorporate assumptions marketplace participants would use in making their estimates of fair value. The Company has not historically recorded an impairment to its goodwill and other indefinite lived intangible assets. As of February 27, 2016, for goodwill related to the North American Retail operating segment and the Institutional Sales operating segment and certain other indefinite lived intangible assets, the Company assessed qualitative factors in order to determine whether any events and circumstances existed which indicated that it was more likely than not that the fair value of these indefinite lived intangible assets did not exceed its carrying value and concluded no such events or circumstances existed which would require an impairment test being performed. In the future, if events or market conditions affect the estimated fair value to the extent that an asset is impaired, the Company will adjust the carrying value of these assets in the period in which the impairment occurs. Included within other assets in the accompanying consolidated balance sheets as of February 27, 2016 and February 28, 2015, respectively, are $291.4 million for indefinite lived tradenames and trademarks. K. Self Insurance The Company utilizes a combination of insurance and self insurance for a number of risks including workers’ compensation, general liability, automobile liability and employee related health care benefits (a portion of which is paid by its employees). Liabilities associated with the risks that the Company retains are estimated by considering historical claims experience, demographic factors, severity factors and other actuarial assumptions. Although the Company’s claims experience has not displayed substantial volatility in the past, actual experience could materially vary from its historical experience in the future. Factors that affect these estimates include but are not limited to: inflation, the number and severity of claims and regulatory changes. In the future, if the Company concludes an adjustment to self insurance accruals is required, the liability will be adjusted accordingly. L. Deferred Rent The Company accounts for scheduled rent increases contained in its leases on a straight-line basis over the term of the lease beginning as of the date the Company obtained possession of the leased premises. Deferred rent amounted to $77.3 million and $77.8 million as of February 27, 2016 and February 28, 2015, respectively. Cash or lease incentives (“tenant allowances”) received pursuant to certain store leases are recognized on a straight-line basis as a reduction to rent over the lease term. The unamortized portion of tenant allowances is included in deferred rent and other liabilities. The unamortized portion of tenant allowances amounted to $119.8 million and $121.0 million as of February 27, 2016 and February 28, 2015, respectively. M. Shareholders’ Equity 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. Between December 2004 and September 2015, the Company’s Board of Directors authorized, through several share repurchase programs, the repurchase of $11.950 billion of the Company’s shares of common stock. On July 17, 2014, the Company entered into an accelerated share repurchase agreement (“ASR”) with an investment bank to repurchase an aggregate $1.1 billion of the Company’s common stock. The ASR was completed in December 2014. The total number of shares repurchased under the ASR was 16.8 million shares at a weighted average share price of $65.41. Since 2004 through the end of fiscal 2015, the Company has repurchased approximately $9.7 billion of its common stock through share repurchase programs, which include the shares repurchased under the ASR. During fiscal 2015, the Company repurchased approximately 18.4 million shares of its common stock at a total cost of approximately $1.101 billion. During fiscal 2014, including the shares repurchased under the ASR, the Company repurchased approximately 33.0 million shares of its common stock at a total cost of approximately $2.251 billion. During fiscal 2013, the Company repurchased approximately 18.3 million shares of its common stock at a total cost of approximately $1.284 billion. The Company has approximately $2.3 billion remaining of authorized share repurchases as of February 27, 2016. Subsequent to the end of fiscal 2015, on April 6, 2016, the Company’s Board of Directors authorized a quarterly dividend program, and declared an initial quarterly dividend of $.125 per share to be paid on July 19, 2016 to shareholders of record as of June 17, 2016. Future cash dividends on the Company’s common stock are subject to the determination by the Board of Directors based on an evaluation of the Company’s earnings, financial condition and requirements, business conditions and other factors. N. 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 (See “Fair Value Measurements,” Note 2). The fair value of the Company’s long term debt is approximately $1.299 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. O. Revenue Recognition Sales are recognized upon purchase by customers at the Company’s retail stores or upon delivery for products purchased from its websites. The value of point-of-sale coupons and point-of-sale rebates that result in a reduction of the price paid by the customer are recorded as a reduction of sales. Shipping and handling fees that are billed to a customer in a sale transaction are recorded in sales. Taxes, such as sales tax, use tax and value added tax, are not included in sales. Revenues from gift cards, gift certificates and merchandise credits are recognized when redeemed. Gift cards have no provisions for reduction in the value of unused card balances over defined time periods and have no expiration dates. Sales returns are provided for in the period that the related sales are recorded based on historical experience. Although the estimate for sales returns has not varied materially from historical provisions, actual experience could vary from historical experience in the future if the level of sales return activity changes materially. In the future, if the Company concludes that an adjustment to the sales return accrual is required due to material changes in the returns activity, the reserve will be adjusted accordingly. P. Cost of Sales Cost of sales includes the cost of merchandise, buying costs and costs of the Company’s distribution network including inbound freight charges, distribution facility costs, receiving costs, internal transfer costs and shipping and handling costs. Q. Vendor Allowances The Company receives allowances from vendors in the normal course of business for various reasons including direct cooperative advertising, purchase volume and reimbursement for other expenses. Annual terms for each allowance include the basis for earning the allowance and payment terms, which vary by agreement. All vendor allowances are recorded as a reduction of inventory cost, except for direct cooperative advertising allowances which are specific, incremental and identifiable. The Company recognizes purchase volume allowances as a reduction of the cost of inventory in the quarter in which milestones are achieved. Advertising costs were reduced by direct cooperative allowances of $31.7 million, $25.6 million and $24.0 million for fiscal 2015, 2014 and 2013, respectively. R. Store Opening, Expansion, Relocation and Closing Costs Store opening, expansion, relocation and closing costs, including markdowns, asset residual values and projected occupancy costs, are charged to earnings as incurred. S. Advertising Costs Expenses associated with direct response advertising are expensed over the period during which the sales are expected to occur, generally four to seven weeks, and all other expenses associated with store advertising are charged to earnings as incurred. Net advertising costs amounted to $338.1 million, $308.4 million and $280.5 million for fiscal 2015, 2014 and 2013, respectively. T. Stock-Based Compensation The Company measures all employee stock-based compensation awards using a fair value method and records such expense in its consolidated financial statements. Currently, the 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. U. Income Taxes The Company files a consolidated Federal income tax return. Income tax returns are also filed with each taxable jurisdiction in which the Company conducts business. The Company accounts for its income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period that includes the enactment date. The Company intends to reinvest the unremitted earnings of its Canadian subsidiary. Accordingly, no provision has been made for U.S. or additional non-U.S. taxes with respect to these earnings. In the event of repatriation to the U.S., in most cases such earnings would be subject to U.S. income taxes. The Company recognizes the tax benefit from an uncertain tax position only if it is at least more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon settlement with the taxing authorities. Judgment is required in determining the provision for income taxes and related accruals, deferred tax assets and liabilities. In the ordinary course of business, there are transactions and calculations where the ultimate tax outcome is uncertain. Additionally, the Company’s tax returns are subject to audit by various tax authorities. Although the Company believes that its estimates are reasonable, actual results could differ from these estimates. V. 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 of approximately 2.6 million, 1.7 million and 1.2 million shares were excluded from the computation of diluted earnings per share as the effect would be anti-dilutive for fiscal 2015, 2014 and 2013, respectively. W. Recent Accounting Pronouncements In May 2014, Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date In April 2015, the FASB issued ASU 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued ASU 2016-02, Leases |
Note 2 - Fair Value Measurement
Note 2 - Fair Value Measurements | 12 Months Ended |
Feb. 27, 2016 | |
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: As of February 27, 2016, 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 3). |
Note 3 - Investment Securities
Note 3 - Investment Securities | 12 Months Ended |
Feb. 27, 2016 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | 3. INVESTMENT SECURITIES The Company’s investment securities as of February 27, 2016 and February 28, 2015 are as follows: (in millions) February 27, February 28, Available-for-sale securities: Long term $ 19.8 $ 47.9 Trading securities: Long term 51.5 49.2 Held-to-maturity securities: Short term 86.2 110.0 Total investment securities $ 157.5 $ 207.1 Auction Rate Securities As of February 27, 2016 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 $0.5 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. In fiscal 2015, approximately $30.7 million of these securities were tendered at a price of approximately 94% of par value for which the Company incurred a realized loss of approximately $1.8 million, which is included within interest expense, net in the consolidated statement of earnings for fiscal 2015. U.S. Treasury Securities As of February 27, 2016, and February 28, 2015, the Company’s short term held-to-maturity securities included approximately $86.2 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 $51.5 million and $49.2 million as of February 27, 2016 and February 28, 2015, respectively. |
Note 4 - Property and Equipment
Note 4 - Property and Equipment | 12 Months Ended |
Feb. 27, 2016 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 4. PROPERTY AND EQUIPMENT Property and equipment consist of the following: (in thousands) February 27, February 28, Land and buildings $ 567,602 $ 557,538 Furniture, fixtures and equipment 1,240,181 1,179,073 Leasehold improvements 1,341,596 1,258,916 Computer equipment and software 1,106,812 940,754 4,256,191 3,936,281 Less: Accumulated depreciation (2,531,148 ) (2,259,581 ) Property and equipment, net $ 1,725,043 $ 1,676,700 |
Note 5 - Long-term Debt
Note 5 - Long-term Debt | 12 Months Ended |
Feb. 27, 2016 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | 5. 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 (the “2024 Notes”), $300 million aggregate principal amount of 4.915% senior unsecured notes due August 1, 2034 (the “2034 Notes”) and $900 million aggregate principal amount of 5.165% senior unsecured notes due August 1, 2044 (the “2044 Notes” and, together with the 2024 Notes and the 2034 Notes, the “Notes”). The aggregate net proceeds from the Notes were approximately $1.5 billion, which was used for share repurchases of the Company’s common stock and for general corporate purposes. Interest on the Notes is payable semi-annually on February 1 and August 1 of each year. 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 February 27, 2016. The Notes are unsecured, senior obligations and rank equal in right of payment to any of the Company’s existing and future senior unsecured indebtedness. The Company may redeem the Notes at any time, in whole or in part, at the redemption prices described in the Indenture plus accrued and unpaid interest to the redemption date. If a change in control triggering event, as defined by the Indenture governing the Notes, occurs unless the Company has exercised its right to redeem the Notes, the Company will be required to make an offer to the holders of the Notes to purchase the Notes at 101% of their principal amount, plus accrued and unpaid interest. 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. For fiscal 2015 and during the period from August 6, 2014 through February 28, 2015, the Company did not have any borrowings under the Revolver. Borrowings under the Revolver accrue interest at either (1) a fluctuating rate equal to the greater of the prime rate, as defined in the Revolver, the Federal Funds Rate plus 0.50%, or one-month LIBOR plus 1.0% and, in each case, plus an applicable margin based upon the Company’s leverage ratio which is calculated quarterly, (2) a periodic fixed rate equal to LIBOR plus an applicable margin based upon the Company’s leverage ratio which is calculated quarterly or (3) an agreed upon fixed rate. In addition, a commitment fee is assessed, which is included in interest expense, net in the Consolidated Statement of Earnings. 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 February 27, 2016. 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 $73.0 million for fiscal 2015 and $44.9 million for the period from July 17, 2014 through February 28, 2015. Lines of Credit At February 27, 2016, the Company maintained two uncommitted lines of credit of $100 million each, with expiration dates of August 31, 2016 and February 26, 2017, respectively. These uncommitted lines of credit are currently and are expected to be used for letters of credit in the ordinary course of business. During fiscal 2015 and 2014, the Company did not have any direct borrowings under the uncommitted lines of credit. As of February 27, 2016, there was approximately $9.5 million of outstanding letters of credit. Although no assurances can be provided, the Company intends to renew both uncommitted lines of credit before the respective expiration dates. In addition, as of February 27, 2016, the Company maintained unsecured standby letters of credit of $51.2 million, primarily for certain insurance programs. As of February 28, 2015, there was approximately $11.1 million of outstanding letters of credit and approximately $71.7 million of outstanding unsecured standby letters of credit, primarily for certain insurance programs. |
Note 6 - Provision for Income T
Note 6 - Provision for Income Taxes | 12 Months Ended |
Feb. 27, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 6. PROVISION FOR INCOME TAXES The components of the provision for income taxes are as follows: FISCAL YEAR ENDED (in thousands) February 27, February 28, March 1, Current: Federal $ 389,039 $ 504,154 $ 514,818 State and local 39,991 64,486 64,581 429,030 568,640 579,399 Deferred: Federal 42,592 (18,245 ) 11,221 State and local 14,334 (4,034 ) 537 56,926 (22,279 ) 11,758 $ 485,956 $ 546,361 $ 591,157 At February 27, 2016, included in other current assets is a net current deferred income tax asset of $201.5 million and included in deferred rent and other liabilities is a net noncurrent deferred income tax liability of $2.4 million. At February 28, 2015, included in other current assets is a net current deferred income tax asset of $207.3 million and included in other assets is a net noncurrent deferred income tax asset of $49.7 million. These amounts represent the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The significant components of the Company’s deferred tax assets and liabilities consist of the following: (in thousands) February 27, February 28, Deferred tax assets: Inventories $ 30,470 $ 35,169 Deferred rent and other rent credits 74,182 77,878 Insurance 51,238 62,668 Stock-based compensation 39,417 35,591 Merchandise credits and gift card liabilities 66,496 65,055 Accrued expenses 46,226 42,328 Obligations on distribution centers 40,704 41,175 Net operating loss carryforwards and other tax credits 22,253 30,453 Other 90,776 89,933 Deferred tax liabilities: Depreciation (104,781 ) (74,051 ) Goodwill (62,252 ) (55,888 ) Intangibles (81,150 ) (80,515 ) Other (14,525 ) (12,780 ) $ 199,054 $ 257,016 At February 27, 2016, the Company has federal net operating loss carryforwards of $11.4 million (tax effected), which will begin expiring in 2025, state net operating loss carryforwards of $5.0 million (tax effected), which will expire between 2015 and 2031, California state enterprise zone credit carryforwards of $4.8 million (tax effected), which will expire in 2023, but require taxable income in the enterprise zone to be realizable and other tax credits of $1.0 million (tax effected). The Company has not established a valuation allowance for the net deferred tax asset as it is considered more likely than not that it is realizable through a combination of future taxable income and the deductibility of future net deferred tax liabilities. The following table summarizes the activity related to the gross unrecognized tax benefits from uncertain tax positions: (in thousands) February 27, February 28, Balance at beginning of year $ 79,985 $ 92,614 Increase related to current year positions 16,662 17,333 Increase related to prior year positions 2,104 6,549 Decrease related to prior year positions (14,698 ) (20,082 ) Settlements (5,865 ) (11,762 ) Lapse of statute of limitations (5,381 ) (4,667 ) Balance at end of year $ 72,807 $ 79,985 At February 27, 2016, the Company has recorded approximately $72.8 million of gross unrecognized tax benefits in non-current income taxes payable on the consolidated balance sheet of which approximately $72.7 million would impact the Company’s effective tax rate. At February 28, 2015, the Company has recorded approximately $80.0 million of gross unrecognized tax benefits in non-current income taxes payable on the consolidated balance sheet of which approximately $79.9 million would impact the Company’s effective tax rate. As of February 27, 2016 and February 28, 2015, the liability for gross unrecognized tax benefits included approximately $10.5 million and $13.0 million, respectively, of accrued interest. The Company recorded a decrease of interest of approximately $2.5 million and $3.9 million, respectively, for the years ended February 27, 2016 and February 28, 2015 for gross unrecognized tax benefits in the consolidated statement of earnings. The Company anticipates that any adjustments to gross unrecognized tax benefits which will impact income tax expense, due to the expiration of statutes of limitations, could be approximately $4 to $5 million in the next twelve months. However, actual results could differ from those currently anticipated. As of February 27, 2016, the Company operated in all 50 states, the District of Columbia, Puerto Rico, Canada and several other international countries and files income tax returns in the United States and various state, local and international jurisdictions. The Company is open to examination for state and local jurisdictions with varying statutes of limitations, generally ranging from three to five years. For fiscal 2015, the effective tax rate is comprised of the Federal statutory income tax rate of 35.00%, the State income tax rate, net of Federal benefit, of 3.07%, provision for uncertain tax positions of .07% and other income tax benefits of 1.53%. For fiscal 2014, the effective tax rate is comprised of the Federal statutory income tax rate of 35.00%, the State income tax rate, net of Federal benefit, of 3.01%, provision for uncertain tax positions of 0.04% and other income tax benefits of 1.72%. For fiscal 2013, the effective tax rate is comprised of the Federal statutory income tax rate of 35.00%, the State income tax rate, net of Federal benefit, of 3.07%, benefit for uncertain tax positions of 0.05% and other income tax benefits of 1.42%. |
Note 7 - Transactions and Balan
Note 7 - Transactions and Balances with Related Parties | 12 Months Ended |
Feb. 27, 2016 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 7. TRANSACTIONS AND BALANCES WITH RELATED PARTIES In fiscal 2002, the Company had an interest in certain life insurance policies on the lives of its Co-Chairmen and their spouses. The Company’s interest in these policies was equivalent to the net premiums paid by the Company. The agreements relating to the Company’s interest in the life insurance policies on the lives of its Co-Chairmen and their spouses were terminated in fiscal 2003. Upon termination in fiscal 2003, the Co-Chairmen paid to the Company $5.4 million, representing the total amount of premiums paid by the Company under the agreements and the Company was released from its contractual obligation to make substantial future premium payments. In order to confer a benefit to its Co-Chairmen in substitution for the aforementioned terminated agreements, the Company has agreed to pay to the Co-Chairmen, at a future date, an aggregate amount of $4.2 million, which is included in accrued expenses and other current liabilities as of February 27, 2016 and February 28, 2015. |
Note 8 - Leases
Note 8 - Leases | 12 Months Ended |
Feb. 27, 2016 | |
Notes to Financial Statements | |
Leases of Lessee Disclosure [Text Block] | 8. LEASES The Company leases retail stores, as well as distribution facilities, offices and equipment, under agreements expiring at various dates through 2042. Certain leases provide for contingent rents (which are based upon store sales exceeding stipulated amounts and are immaterial in fiscal 2015, 2014 and 2013), scheduled rent increases and renewal options. The Company is obligated under a majority of the leases to pay for taxes, insurance and common area maintenance charges. As of February 27, 2016, future minimum lease payments under non-cancelable operating leases were as follows: (in thousands) Operating Fiscal Year: 2016 $ 585,118 2017 538,142 2018 473,163 2019 407,510 2020 325,149 Thereafter 955,643 Total future minimum lease payments $ 3,284,725 Expenses for all operating leases were $568.1 million, $566.0 million and $559.8 million for fiscal 2015, 2014 and 2013, respectively. As of February 27, 2016 and February 28, 2015, the capital lease obligations were approximately $6.5 million and $3.5 million, respectively, for which the current and long-term portions are included within accrued expenses and other current liabilities and deferred rent and other liabilities, respectively, in the consolidated balance sheet. Monthly minimum lease payments are accounted for as principal and interest payments. Interest expense for all capital leases was $0.4 million, $0.5 million and $0.5 million for fiscal 2015, 2014 and 2013, respectively. The minimum capital lease payments, including interest, by fiscal year are: $1.2 million in fiscal 2016, $1.2 million in fiscal 2017, $1.0 million in fiscal 2018, $1.0 million in fiscal 2019, $0.9 million in fiscal 2020 and $3.3 million thereafter. The Company has financing obligations, related to two sale/leaseback agreements, which approximated the discounted fair value of the minimum lease payments, had a residual fair value at the end of the lease term and are being amortized over the term of the respective agreements, including option periods, of 32 and 35 years. As of February 27, 2016 and February 28, 2015, the sale/leaseback financing obligations were approximately $104.0 million and $104.6 million, respectively, for which the current and long-term portions are included within accrued expenses and other current liabilities and deferred rent and other liabilities, respectively, in the consolidated balance sheet. Monthly lease payments are accounted for as principal and interest payments (at approximate annual interest rates of 7.2% and 10.6%). These sale/leaseback financing obligations, excluding the residual fair value at the end of the lease term, mature as follows: $0.7 million in fiscal 2016, $0.8 million in fiscal 2017, $0.8 million in fiscal 2018, $0.8 million in fiscal 2019, $0.9 million in fiscal 2020 and $76.4 million thereafter. |
Note 9 - Employee Benefit Plans
Note 9 - Employee Benefit Plans | 12 Months Ended |
Feb. 27, 2016 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 9. EMPLOYEE BENEFIT PLANS Defined Contribution Plans The Company has five defined contribution savings plans covering all eligible employees of the Company (“the Plans”). Participants of the Plans may defer annual pre-tax compensation subject to statutory and Plan limitations. In addition, a certain percentage of an employee’s contributions are matched by the Company and vest over a specified period of time, subject to certain statutory and Plan limitations. The Company’s match was approximately $13.9 million, $13.2 million and $12.5 million for fiscal 2015, 2014 and 2013, respectively, which was expensed as incurred. Nonqualified Deferred Compensation Plan The Company has a nonqualified deferred compensation plan (“NQDC”) for the benefit of employees who are defined by the Internal Revenue Service as highly compensated. Participants of the NQDC may defer annual pre-tax compensation subject to statutory and plan limitations. In addition, a certain percentage of an employee’s contributions may be matched by the Company and vest over a specified period of time, subject to certain plan limitations. The Company’s match was approximately $0.6 million, $0.7 million and $0.5 million in fiscal 2015, 2014 and 2013, respectively, which was expensed as incurred. Changes in the fair value of the trading securities related to the NQDC and the corresponding change in the associated liability are included within interest income and selling, general and administrative expenses respectively, in the consolidated statements of earnings. Historically, these changes have resulted in no net impact to the consolidated statements of earnings. Defined Benefit Plan The Company has a non-contributory defined benefit pension plan for the CTS employees, hired on or before July 31, 2003, who meet specified age and length-of-service requirements. The benefits are based on years of service and the employee’s compensation up until retirement. The Company recognizes the overfunded or underfunded status of the pension plan as an asset or liability in its statement of financial position and recognizes changes in the funded status in the year in which the changes occur. For the years ended February 27, 2016, February 28, 2015 and March 1, 2014, the net periodic pension cost was not material to the Company’s results of operations. The Company has a $20.4 million and $18.4 million liability, which is included in deferred rent and other liabilities as of February 27, 2016 and February 28, 2015, respectively. In addition, as of February 27, 2016 and February 28, 2015, the Company recognized a loss of $6.5 million, net of taxes of $4.2 million, and a loss of $6.1 million, net of taxes of $4.0 million, respectively, within accumulated other comprehensive loss. |
Note 10 - Commitments and Conti
Note 10 - Commitments and Contingencies | 12 Months Ended |
Feb. 27, 2016 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 10. COMMITMENTS AND CONTINGENCIES The Company maintains employment agreements with its Co-Chairmen, which extend through February 25, 2017. The agreements provide for a base salary (which may be increased by the Board of Directors), termination payments, postretirement benefits and other terms and conditions of employment. In addition, the Company maintains employment agreements with other executives which provide for severance pay and, in some instances, certain other supplemental retirement benefits. The Company records an estimated liability related to its various claims and legal actions arising in the ordinary course of business when and to the extent that it concludes a liability is probable and the amount of the loss can be reasonably estimated. Such estimated loss is based on available information and advice from outside counsel, where appropriate. As additional information becomes available, the Company reassesses the potential liability related to claims and legal actions and revises its estimated liabilities, as appropriate. The Company expects the ultimate disposition of these matters will not have a material adverse effect on the Company’s consolidated financial position, results of operations or liquidity. The Company also cannot predict the nature and validity of claims which could be asserted in the future, and future claims could have a material impact on its earnings. |
Note 11 - Supplemental Cash Flo
Note 11 - Supplemental Cash Flow Information | 12 Months Ended |
Feb. 27, 2016 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | 11. SUPPLEMENTAL CASH FLOW INFORMATION The Company paid income taxes of $442.4 million, $554.4 million and $562.4 million in fiscal 2015, 2014 and 2013, respectively. In addition, the Company had interest payments of approximately $81.5 million, $48.2 million and $9.2 million in fiscal 2015, 2014 and 2013, respectively. The Company recorded an accrual for capital expenditures of $51.7 million, $57.8 million and $50.2 million as of February 27, 2016, February 28, 2015 and March 1, 2014, respectively. |
Note 12 - Stock-based Compensat
Note 12 - Stock-based Compensation | 12 Months Ended |
Feb. 27, 2016 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 12. 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 fiscal year ended February 27, 2016, February 28, 2015 and March 1, 2014 was approximately $67.0 million ($42.4 million after tax or $0.26 per diluted share), $66.5 million ($42.4 million after tax or $0.22 per diluted share) and approximately $56.2 million ($35.6 million after tax or $0.17 per diluted share), respectively. In addition, the amount of stock-based compensation cost capitalized for the years ended February 27, 2016 and February 28, 2015 was approximately $2.1 million and $1.9 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. 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. As of February 27, 2016, unrecognized compensation expense related to the unvested portion of the Company’s stock options was $23.2 million, which is expected to be recognized over a weighted average period of 2.7 years. 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. FISCAL YEAR ENDED Black-Scholes Valuation Assumptions (1) February 27, February 28, March 1, Weighted Average Expected Life (in years) (2) 6.7 6.6 6.6 Weighted Average Expected Volatility (3) 27.59 % 28.31 % 29.27 % Weighted Average Risk Free Interest Rates (4) 1.93 % 2.11 % 1.11 % Expected Dividend Yield - - - (1) Forfeitures are estimated based on historical experience. (2) The expected life of stock options is estimated based on historical experience. (3) Expected volatility is based on the average of historical and implied volatility. The historical volatility is determined by observing actual prices of the Company’s stock over a period commensurate with the expected life of the awards. The implied volatility represents the implied volatility of the Company’s call options, which are actively traded on multiple exchanges, had remaining maturities in excess of twelve months, had market prices close to the exercise prices of the employee stock options and were measured on the stock option grant date. (4) Based on the U.S. Treasury constant maturity interest rate whose term is consistent with the expected life of the stock options. Changes in the Company’s stock options for the fiscal year ended February 27, 2016 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 (255 ) 35.10 Forfeited or expired (90 ) 63.12 Options outstanding, end of period 3,838 $ 54.43 Options exercisable, end of period 2,358 $ 47.06 The weighted average fair value for the stock options granted in fiscal 2015, 2014 and 2013 was $23.12, $20.96 and $22.28, respectively. The weighted average remaining contractual term and the aggregate intrinsic value for options outstanding as of February 27, 2016 was 3.7 years and $19.9 million, respectively. The weighted average remaining contractual term and the aggregate intrinsic value for options exercisable as of February 27, 2016 was 2.4 years and $18.9 million, respectively. The total intrinsic value for stock options exercised during fiscal 2015, 2014 and 2013 was $8.7 million, $33.5 million and $44.6 million, respectively. Net cash proceeds from the exercise of stock options for fiscal 2015 were $9.1 million and the net associated income tax benefit was $10.0 million. Restricted Stock Restricted stock awards are issued and measured at fair market value on the date of grant and generally become vested in five equal annual installments beginning one to three years from the date of grant, subject, in general, to the recipient remaining in the Company’s service on specified vesting dates. Vesting of restricted stock awarded to certain of the Company’s executives is dependent on the Company’s achievement of a performance-based test for the fiscal year of grant and, assuming achievement of the performance-based test, time vesting, subject, in general, to the executive remaining in the Company’s service on specified vesting dates. The Company recognizes compensation expense related to these awards based on the assumption that the performance-based test will be achieved. Vesting of restricted stock awarded to the Company’s other employees is based solely on time vesting. As of February 27, 2016, unrecognized compensation expense related to the unvested portion of the Company’s restricted stock awards was $127.6 million, which is expected to be recognized over a weighted average period of 3.6 years. Changes in the Company’s restricted stock for the fiscal year ended February 27, 2016 were as follows: (Shares in thousands) Number of Weighted Average Unvested restricted stock, beginning of period 3,592 $ 57.90 Granted 792 68.67 Vested (952 ) 49.50 Forfeited (202 ) 62.81 Unvested restricted stock, end of period 3,230 $ 62.71 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, with a floor of zero. PSUs are converted into shares of common stock upon payment following vesting. Upon grant of the PSUs, the Company recognizes compensation expense related to these awards based on the assumption that 100% of the target award will be achieved. The Company evaluates the target assumption on a quarterly basis and adjusts compensation expense related to these awards, as appropriate. As of February 27, 2016, unrecognized compensation expense related to the unvested portion of the Company’s performance stock units was $20.6 million, which is expected to be recognized over a weighted average period of 2.0 years. Changes in the Company’s PSUs for the fiscal year ended February 27, 2016 were as follows: (Shares in thousands) Number of Performance Weighted Average 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 13 - Summary of Quarterly
Note 13 - Summary of Quarterly Results (Unaudited) | 12 Months Ended |
Feb. 27, 2016 | |
Notes to Financial Statements | |
Quarterly Financial Information [Text Block] | 13. SUMMARY OF QUARTERLY RESULTS (UNAUDITED) FISCAL 2015 QUARTER ENDED FISCAL 2014 QUARTER ENDED (in thousands, except per share data) May 30, August 29, November 28, February 27, May 31, August 30, November 29, February 28, Net sales $ 2,738,495 $ 2,995,469 $ 2,952,031 $ 3,417,892 $ 2,656,698 $ 2,944,905 $ 2,942,980 $ 3,336,593 Gross profit 1,044,133 1,140,950 1,115,311 1,319,916 1,030,885 1,134,045 1,128,974 1,325,875 Operating profit 273,269 350,194 292,858 498,582 300,701 368,741 352,683 532,168 Earnings before provision for income taxes 253,368 325,141 274,806 474,130 298,607 359,213 333,114 512,901 Provision for income taxes 94,917 123,463 96,990 170,586 111,555 135,260 107,706 191,840 Net earnings $ 158,451 $ 201,678 $ 177,816 $ 303,544 $ 187,052 $ 223,953 $ 225,408 $ 321,061 EPS-Basic (1) $ 0.94 $ 1.22 $ 1.10 $ 1.93 $ 0.94 $ 1.18 $ 1.24 $ 1.83 EPS-Diluted (1) $ 0.93 $ 1.21 $ 1.09 $ 1.91 $ 0.93 $ 1.17 $ 1.23 $ 1.80 (1) Net earnings per share ("EPS") amounts for each quarter are required to be computed independently and may not equal the amount computed for the total year. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Feb. 27, 2016 | |
Notes to Financial Statements | |
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | Schedule II - Valuation and Qualifying Accounts Fiscal Years Ended February 27, 2016, February 28, 2015 and March 1, 2014 (amounts in millions) Column A Column B Column C Column C Column D Column E Balance at Additions Additions Adjustments Balance at Beginning of Charged to Charged to and/or End of Description Period Income Other Accounts Deductions Period Sales Returns and Allowance Year Ended: February 27, 2016 $ 45.0 $ 693.3 $ - $ 693.8 $ 44.5 February 28, 2015 45.0 715.7 - 715.7 45.0 March 1, 2014 40.0 706.6 - 701.6 45.0 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Feb. 27, 2016 | |
Accounting Policies [Abstract] | |
Fiscal Period, Policy [Policy Text Block] | B. Fiscal Year The Company’s fiscal year is comprised of the 52 or 53 week period ending on the Saturday nearest February 28. Accordingly, fiscal 2015, fiscal 2014 and fiscal 2013 represented 52 weeks and ended on February 27, 2016, February 28, 2015 and March 1, 2014, respectively. |
Consolidation, Policy [Policy Text Block] | C. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. The Company accounts for its investment in the joint venture under the equity method. Certain reclassifications have been made to the fiscal 2014 and 2013 consolidated statements of cash flows to conform to the fiscal 2015 consolidated statement of cash flows presentation. All significant intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates, Policy [Policy Text Block] | D. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires the Company to establish accounting policies and to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on historical experience and on other assumptions that it believes to be relevant under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. In particular, judgment is used in areas such as inventory valuation, impairment of long-lived assets, impairment of auction rate securities, goodwill and other indefinite lived intangible assets, accruals for self insurance, litigation, store opening, expansion, relocation and closing costs, the provision for sales returns, vendor allowances, stock-based compensation and income and certain other taxes. Actual results could differ from these estimates. |
Cash and Cash Equivalents, Policy [Policy Text Block] | E. Cash and Cash Equivalents The Company considers all highly liquid instruments purchased with original maturities of three months or less to be cash equivalents. Included in cash and cash equivalents are credit and debit card receivables from banks, which typically settle within 5 business days, of $89.4 million and $90.3 million as of February 27, 2016 and February 28, 2015, respectively. |
Investment, Policy [Policy Text Block] | F. Investment Securities Investment securities consist primarily of U.S. Treasury Bills with remaining maturities of less than one year and auction rate securities, which are securities with interest rates that reset periodically through an auction process. The U.S. Treasury Bills are classified as short term held-to-maturity securities and are stated at their amortized cost which approximates fair value. Auction rate securities are classified as available-for-sale and are stated at fair value, which had historically been consistent with cost or par value due to interest rates which reset periodically, typically every 7, 28 or 35 days. As a result, there generally were no cumulative gross unrealized holding gains or losses relating to these auction rate securities. However, beginning in mid-February 2008 due to market conditions, the auction process for the Company’s auction rate securities failed and continues to fail. These failed auctions result in a lack of liquidity in the securities, and affect their estimated fair values at February 27, 2016 and February 28, 2015, but do not affect the underlying collateral of the securities. (See “Fair Value Measurements,” Note 2 and “Investment Securities,” Note 3). All income from these investments is recorded as interest income. Those investment securities which the Company has the ability and intent to hold until maturity are classified as held-to-maturity investments and are stated at amortized cost. Those investment securities which are bought and held principally for the purpose of selling them in the near term are classified as trading securities and are stated at fair market value. Premiums are amortized and discounts are accreted over the life of the security as adjustments to interest income using the effective interest method. Dividend and interest income are recognized when earned. |
Inventory, Policy [Policy Text Block] | G. Inventory Valuation Merchandise inventories are stated at the lower of cost or market. Inventory costs are primarily calculated using the weighted average retail inventory method. Under the retail inventory method, the valuation of inventories at cost and the resulting gross margins are calculated by applying a cost-to-retail ratio to the retail values of inventories. The cost associated with determining the cost-to-retail ratio includes: merchandise purchases, net of returns to vendors, discounts and volume and incentive rebates; inbound freight expenses; duty, insurance and commissions. At any one time, inventories include items that have been written down to the Company’s best estimate of their realizable value. Judgment is required in estimating realizable value and factors considered are the age of merchandise and anticipated demand. Actual realizable value could differ materially from this estimate based upon future customer demand or economic conditions. The Company estimates its reserve for shrinkage throughout the year based on historical shrinkage and any current trends, if applicable. Actual shrinkage is recorded at year end based upon the results of the Company’s physical inventory counts for locations at which counts were conducted. For locations where physical inventory counts were not conducted in the fiscal year, an estimated shrink reserve is recorded based on historical shrinkage and any current trends, if applicable. Historically, the Company’s shrinkage has not been volatile. The Company accrues for merchandise in transit once it takes legal ownership and title to the merchandise; as such, an estimate for merchandise in transit is included in the Company’s merchandise inventories. |
Property, Plant and Equipment, Policy [Policy Text Block] | H. Property and Equipment Property and equipment are stated at cost. Depreciation is computed primarily using the straight-line method over the estimated useful lives of the assets (forty years for buildings; five to twenty years for furniture, fixtures and equipment; and three to ten years for computer equipment and software). Leasehold improvements are amortized using the straight-line method over the lesser of their estimated useful life or the life of the lease. Depreciation expense is primarily included within selling, general and administrative expenses. The cost of maintenance and repairs is charged to earnings as incurred; significant renewals and betterments are capitalized. Maintenance and repairs amounted to $130.9 million, $120.3 million and $111.9 million for fiscal 2015, 2014 and 2013, respectively. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | I. Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment when events or changes in circumstances indicate the carrying value of these assets may exceed their current fair values. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the assets. Assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. The assets and liabilities of a disposal group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet. The Company has not historically recorded any material impairment to its long-lived assets. In the future, if events or market conditions affect the estimated fair value to the extent that a long-lived asset is impaired, the Company will adjust the carrying value of these long-lived assets in the period in which the impairment occurs. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | J. Goodwill and Other Indefinite Lived Intangible Assets The Company reviews goodwill and other intangibles that have indefinite lives for impairment annually or when events or changes in circumstances indicate the carrying value of these assets might exceed their current fair values. Impairment testing is based upon the best information available, including estimates of fair value which incorporate assumptions marketplace participants would use in making their estimates of fair value. The Company has not historically recorded an impairment to its goodwill and other indefinite lived intangible assets. As of February 27, 2016, for goodwill related to the North American Retail operating segment and the Institutional Sales operating segment and certain other indefinite lived intangible assets, the Company assessed qualitative factors in order to determine whether any events and circumstances existed which indicated that it was more likely than not that the fair value of these indefinite lived intangible assets did not exceed its carrying value and concluded no such events or circumstances existed which would require an impairment test being performed. In the future, if events or market conditions affect the estimated fair value to the extent that an asset is impaired, the Company will adjust the carrying value of these assets in the period in which the impairment occurs. Included within other assets in the accompanying consolidated balance sheets as of February 27, 2016 and February 28, 2015, respectively, are $291.4 million for indefinite lived tradenames and trademarks. |
Self-Insurance [Policy Text Block] | K. Self Insurance The Company utilizes a combination of insurance and self insurance for a number of risks including workers’ compensation, general liability, automobile liability and employee related health care benefits (a portion of which is paid by its employees). Liabilities associated with the risks that the Company retains are estimated by considering historical claims experience, demographic factors, severity factors and other actuarial assumptions. Although the Company’s claims experience has not displayed substantial volatility in the past, actual experience could materially vary from its historical experience in the future. Factors that affect these estimates include but are not limited to: inflation, the number and severity of claims and regulatory changes. In the future, if the Company concludes an adjustment to self insurance accruals is required, the liability will be adjusted accordingly. |
Deferred Charges, Policy [Policy Text Block] | L. Deferred Rent The Company accounts for scheduled rent increases contained in its leases on a straight-line basis over the term of the lease beginning as of the date the Company obtained possession of the leased premises. Deferred rent amounted to $77.3 million and $77.8 million as of February 27, 2016 and February 28, 2015, respectively. Cash or lease incentives (“tenant allowances”) received pursuant to certain store leases are recognized on a straight-line basis as a reduction to rent over the lease term. The unamortized portion of tenant allowances is included in deferred rent and other liabilities. The unamortized portion of tenant allowances amounted to $119.8 million and $121.0 million as of February 27, 2016 and February 28, 2015, respectively. |
Stockholders' Equity, Policy [Policy Text Block] | M. Shareholders’ Equity 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. Between December 2004 and September 2015, the Company’s Board of Directors authorized, through several share repurchase programs, the repurchase of $11.950 billion of its shares of common stock. On July 17, 2014, the Company entered into an accelerated share repurchase agreement (“ASR”) with an investment bank to repurchase an aggregate $1.1 billion of the Company’s common stock. The ASR was completed in December 2014. The total number of shares repurchased under the ASR was 16.8 million shares at a weighted average share price of $65.41. Since 2004 through the end of fiscal 2015, the Company has repurchased approximately $9.7 billion of its common stock through share repurchase programs, which include the shares repurchased under the ASR. During fiscal 2015, the Company repurchased approximately 18.4 million shares of its common stock at a total cost of approximately $1.101 billion. During fiscal 2014, including the shares repurchased under the ASR, the Company repurchased approximately 33.0 million shares of its common stock at a total cost of approximately $2.251 billion. During fiscal 2013, the Company repurchased approximately 18.3 million shares of its common stock at a total cost of approximately $1.284 billion. The Company has approximately $2.3 billion remaining of authorized share repurchases as of February 27, 2016. Subsequent to the end of fiscal 2015, on April 6, 2016, the Company’s Board of Directors authorized a quarterly dividend program, and declared an initial quarterly dividend of $.125 per share to be paid on July 19, 2016 to shareholders of record as of June 17, 2016. Future cash dividends on the Company’s common stock are subject to the determination of the Board of Directors based on an evaluation of the Company’s earnings, financial condition and requirements, business conditions and other factors. |
Fair Value Measurement, Policy [Policy Text Block] | N. 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 (See “Fair Value Measurements,” Note 2). The fair value of the Company’s long term debt is approximately $1.299 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. |
Revenue Recognition, Policy [Policy Text Block] | O. Revenue Recognition Sales are recognized upon purchase by customers at the Company’s retail stores or upon delivery for products purchased from its websites. The value of point-of-sale coupons and point-of-sale rebates that result in a reduction of the price paid by the customer are recorded as a reduction of sales. Shipping and handling fees that are billed to a customer in a sale transaction are recorded in sales. Taxes, such as sales tax, use tax and value added tax, are not included in sales. Revenues from gift cards, gift certificates and merchandise credits are recognized when redeemed. Gift cards have no provisions for reduction in the value of unused card balances over defined time periods and have no expiration dates. Sales returns are provided for in the period that the related sales are recorded based on historical experience. Although the estimate for sales returns has not varied materially from historical provisions, actual experience could vary from historical experience in the future if the level of sales return activity changes materially. In the future, if the Company concludes that an adjustment to the sales return accrual is required due to material changes in the returns activity, the reserve will be adjusted accordingly. |
Cost of Sales, Policy [Policy Text Block] | P. Cost of Sales Cost of sales includes the cost of merchandise, buying costs and costs of the Company’s distribution network including inbound freight charges, distribution facility costs, receiving costs, internal transfer costs and shipping and handling costs. |
Cost of Sales, Vendor Allowances, Policy [Policy Text Block] | Q. Vendor Allowances The Company receives allowances from vendors in the normal course of business for various reasons including direct cooperative advertising, purchase volume and reimbursement for other expenses. Annual terms for each allowance include the basis for earning the allowance and payment terms, which vary by agreement. All vendor allowances are recorded as a reduction of inventory cost, except for direct cooperative advertising allowances which are specific, incremental and identifiable. The Company recognizes purchase volume allowances as a reduction of the cost of inventory in the quarter in which milestones are achieved. Advertising costs were reduced by direct cooperative allowances of $31.7 million, $25.6 million and $24.0 million for fiscal 2015, 2014 and 2013, respectively. |
Store Opening, Expansion, Relocation, and Closing Costs [Policy Text Block] | R. Store Opening, Expansion, Relocation and Closing Costs Store opening, expansion, relocation and closing costs, including markdowns, asset residual values and projected occupancy costs, are charged to earnings as incurred. |
Advertising Costs, Policy [Policy Text Block] | S. Advertising Costs Expenses associated with direct response advertising are expensed over the period during which the sales are expected to occur, generally four to seven weeks, and all other expenses associated with store advertising are charged to earnings as incurred. Net advertising costs amounted to $338.1 million, $308.4 million and $280.5 million for fiscal 2015, 2014 and 2013, respectively. |
Income Tax, Policy [Policy Text Block] | U. Income Taxes The Company files a consolidated Federal income tax return. Income tax returns are also filed with each taxable jurisdiction in which the Company conducts business. The Company accounts for its income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period that includes the enactment date. The Company intends to reinvest the unremitted earnings of its Canadian subsidiary. Accordingly, no provision has been made for U.S. or additional non-U.S. taxes with respect to these earnings. In the event of repatriation to the U.S., in most cases such earnings would be subject to U.S. income taxes. The Company recognizes the tax benefit from an uncertain tax position only if it is at least more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon settlement with the taxing authorities. Judgment is required in determining the provision for income taxes and related accruals, deferred tax assets and liabilities. In the ordinary course of business, there are transactions and calculations where the ultimate tax outcome is uncertain. Additionally, the Company’s tax returns are subject to audit by various tax authorities. Although the Company believes that its estimates are reasonable, actual results could differ from these estimates. |
Earnings Per Share, Policy [Policy Text Block] | V. 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 of approximately 2.6 million, 1.7 million and 1.2 million shares were excluded from the computation of diluted earnings per share as the effect would be anti-dilutive for fiscal 2015, 2014 and 2013, respectively. |
New Accounting Pronouncements, Policy [Policy Text Block] | W. Recent Accounting Pronouncements In May 2014, Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date In April 2015, the FASB issued ASU 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued ASU 2016-02, Leases |
Note 3 - Investment Securities
Note 3 - Investment Securities (Tables) | 12 Months Ended |
Feb. 27, 2016 | |
Notes Tables | |
Marketable Securities [Table Text Block] | (in millions) February 27, February 28, Available-for-sale securities: Long term $ 19.8 $ 47.9 Trading securities: Long term 51.5 49.2 Held-to-maturity securities: Short term 86.2 110.0 Total investment securities $ 157.5 $ 207.1 |
Note 4 - Property and Equipme24
Note 4 - Property and Equipment (Tables) | 12 Months Ended |
Feb. 27, 2016 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | (in thousands) February 27, February 28, Land and buildings $ 567,602 $ 557,538 Furniture, fixtures and equipment 1,240,181 1,179,073 Leasehold improvements 1,341,596 1,258,916 Computer equipment and software 1,106,812 940,754 4,256,191 3,936,281 Less: Accumulated depreciation (2,531,148 ) (2,259,581 ) Property and equipment, net $ 1,725,043 $ 1,676,700 |
Note 6 - Provision for Income25
Note 6 - Provision for Income Taxes (Tables) | 12 Months Ended |
Feb. 27, 2016 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | FISCAL YEAR ENDED (in thousands) February 27, February 28, March 1, Current: Federal $ 389,039 $ 504,154 $ 514,818 State and local 39,991 64,486 64,581 429,030 568,640 579,399 Deferred: Federal 42,592 (18,245 ) 11,221 State and local 14,334 (4,034 ) 537 56,926 (22,279 ) 11,758 $ 485,956 $ 546,361 $ 591,157 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | (in thousands) February 27, February 28, Deferred tax assets: Inventories $ 30,470 $ 35,169 Deferred rent and other rent credits 74,182 77,878 Insurance 51,238 62,668 Stock-based compensation 39,417 35,591 Merchandise credits and gift card liabilities 66,496 65,055 Accrued expenses 46,226 42,328 Obligations on distribution centers 40,704 41,175 Net operating loss carryforwards and other tax credits 22,253 30,453 Other 90,776 89,933 Deferred tax liabilities: Depreciation (104,781 ) (74,051 ) Goodwill (62,252 ) (55,888 ) Intangibles (81,150 ) (80,515 ) Other (14,525 ) (12,780 ) $ 199,054 $ 257,016 |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | (in thousands) February 27, February 28, Balance at beginning of year $ 79,985 $ 92,614 Increase related to current year positions 16,662 17,333 Increase related to prior year positions 2,104 6,549 Decrease related to prior year positions (14,698 ) (20,082 ) Settlements (5,865 ) (11,762 ) Lapse of statute of limitations (5,381 ) (4,667 ) Balance at end of year $ 72,807 $ 79,985 |
Note 8 - Leases (Tables)
Note 8 - Leases (Tables) | 12 Months Ended |
Feb. 27, 2016 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | (in thousands) Operating Fiscal Year: 2016 $ 585,118 2017 538,142 2018 473,163 2019 407,510 2020 325,149 Thereafter 955,643 Total future minimum lease payments $ 3,284,725 |
Note 12 - Stock-based Compens27
Note 12 - Stock-based Compensation (Tables) | 12 Months Ended |
Feb. 27, 2016 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | FISCAL YEAR ENDED Black-Scholes Valuation Assumptions (1) February 27, February 28, March 1, Weighted Average Expected Life (in years) (2) 6.7 6.6 6.6 Weighted Average Expected Volatility (3) 27.59 % 28.31 % 29.27 % Weighted Average Risk Free Interest Rates (4) 1.93 % 2.11 % 1.11 % Expected Dividend Yield - - - |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | (Shares in thousands) Number of Stock Options Weighted Average Options outstanding, beginning of period 3,682 $ 51.05 Granted 501 70.96 Exercised (255 ) 35.10 Forfeited or expired (90 ) 63.12 Options outstanding, end of period 3,838 $ 54.43 Options exercisable, end of period 2,358 $ 47.06 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | (Shares in thousands) Number of Weighted Average Unvested restricted stock, beginning of period 3,592 $ 57.90 Granted 792 68.67 Vested (952 ) 49.50 Forfeited (202 ) 62.81 Unvested restricted stock, end of period 3,230 $ 62.71 |
Share-based Compensation, Performance Shares Award Unvested Activity [Table Text Block] | (Shares in thousands) Number of Performance Weighted Average 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 13 - Summary of Quarterl28
Note 13 - Summary of Quarterly Results (Unaudited) (Tables) | 12 Months Ended |
Feb. 27, 2016 | |
Notes Tables | |
Quarterly Financial Information [Table Text Block] | FISCAL 2015 QUARTER ENDED FISCAL 2014 QUARTER ENDED (in thousands, except per share data) May 30, August 29, November 28, February 27, May 31, August 30, November 29, February 28, Net sales $ 2,738,495 $ 2,995,469 $ 2,952,031 $ 3,417,892 $ 2,656,698 $ 2,944,905 $ 2,942,980 $ 3,336,593 Gross profit 1,044,133 1,140,950 1,115,311 1,319,916 1,030,885 1,134,045 1,128,974 1,325,875 Operating profit 273,269 350,194 292,858 498,582 300,701 368,741 352,683 532,168 Earnings before provision for income taxes 253,368 325,141 274,806 474,130 298,607 359,213 333,114 512,901 Provision for income taxes 94,917 123,463 96,990 170,586 111,555 135,260 107,706 191,840 Net earnings $ 158,451 $ 201,678 $ 177,816 $ 303,544 $ 187,052 $ 223,953 $ 225,408 $ 321,061 EPS-Basic (1) $ 0.94 $ 1.22 $ 1.10 $ 1.93 $ 0.94 $ 1.18 $ 1.24 $ 1.83 EPS-Diluted (1) $ 0.93 $ 1.21 $ 1.09 $ 1.91 $ 0.93 $ 1.17 $ 1.23 $ 1.80 |
Schedule II - Valuation and Q29
Schedule II - Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Feb. 27, 2016 | |
Notes Tables | |
Summary of Valuation Allowance [Table Text Block] | Column A Column B Column C Column C Column D Column E Balance at Additions Additions Adjustments Balance at Beginning of Charged to Charged to and/or End of Description Period Income Other Accounts Deductions Period Sales Returns and Allowance Year Ended: February 27, 2016 $ 45.0 $ 693.3 $ - $ 693.8 $ 44.5 February 28, 2015 45.0 715.7 - 715.7 45.0 March 1, 2014 40.0 706.6 - 701.6 45.0 |
Note 1 - Summary of Significa30
Note 1 - Summary of Significant Accounting Policies and Related Matters (Details Textual) $ / shares in Units, shares in Millions | Apr. 06, 2016$ / shares | Dec. 31, 2014$ / sharesshares | Feb. 27, 2016USD ($)shares | Feb. 28, 2015USD ($)shares | Mar. 01, 2014USD ($)shares | Feb. 27, 2016USD ($) |
MEXICO | ||||||
Number of Stores | 7 | 7 | ||||
Product Concentration Risk [Member] | Domestic Merchandise [Member] | Sales Revenue, Net [Member] | ||||||
Concentration Risk, Percentage | 35.90% | 35.90% | 36.10% | |||
Product Concentration Risk [Member] | Home Furnishings [Member] | Sales Revenue, Net [Member] | ||||||
Concentration Risk, Percentage | 64.10% | 64.10% | 63.90% | |||
Building [Member] | ||||||
Property, Plant and Equipment, Useful Life | 40 years | |||||
Furniture and Fixtures [Member] | Minimum [Member] | ||||||
Property, Plant and Equipment, Useful Life | 5 years | |||||
Furniture and Fixtures [Member] | Maximum [Member] | ||||||
Property, Plant and Equipment, Useful Life | 20 years | |||||
Computer Equipment and Software [Member] | Minimum [Member] | ||||||
Property, Plant and Equipment, Useful Life | 3 years | |||||
Computer Equipment and Software [Member] | Maximum [Member] | ||||||
Property, Plant and Equipment, Useful Life | 10 years | |||||
Minimum [Member] | ||||||
Direct Response Advertising Expenses Recognized Over Expected Sales Period | 28 days | |||||
Maximum [Member] | ||||||
Direct Response Advertising Expenses Recognized Over Expected Sales Period | 49 days | |||||
ASR [Member] | ||||||
Treasury Stock, Shares, Acquired | shares | 16.8 | |||||
Treasury Stock Acquired, Average Cost Per Share | $ / shares | $ 65.41 | |||||
Subsequent Event [Member] | ||||||
Common Stock, Dividends, Per Share, Declared | $ / shares | $ 0.125 | |||||
Number of Operating Segments | 2 | |||||
Number of Weeks in Each Period | 1 year | 1 year | ||||
Number Of Business Days For Settlement Of Credit And Debit Card Receivables | 5 | |||||
Credit and Debit Card Receivables, at Carrying Value | $ 89,400,000 | $ 90,300,000 | $ 89,400,000 | |||
U.S. Treasury Bills Maximum Remaining Maturity Period | 1 year | |||||
Auction Market Securities Series Rate Setting Interval Period, One | 7 days | |||||
Auction Market Securities Series Rate Setting Interval Period, Two | 28 days | |||||
Auction Market Securities Series Rate Setting Interval Period, Three | 35 days | |||||
Cost of Property Repairs and Maintenance | $ 130,900,000 | 120,300,000 | $ 111,900,000 | |||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 291,400,000 | |||||
Deferred Rent Credit, Noncurrent | 77,300,000 | 77,800,000 | 77,300,000 | |||
Incentive from Lessor | 119,800,000 | $ 121,000,000 | 119,800,000 | |||
Stock Repurchase Program, Authorized Amount | $ 11,950,000,000 | 11,950,000,000 | ||||
Treasury Stock, Shares, Acquired | shares | 18.4 | 33 | 18.3 | |||
Payments for Repurchase of Common Stock | $ 1,100,585,000 | $ 2,250,597,000 | $ 1,283,995,000 | 9,700,000,000 | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 2,300,000,000 | 2,300,000,000 | ||||
Long-term Debt, Fair Value | 1,299,000,000 | 1,299,000,000 | ||||
Long-term Debt | 1,500,000,000 | $ 1,500,000,000 | ||||
Cooperative Advertising Amount | 31,700,000 | 25,600,000 | 24,000,000 | |||
Advertising Expense | $ 338,100,000 | $ 308,400,000 | $ 280,500,000 | |||
Income Tax Examination Likelihood of Tax Benefits Realization Upon Settlement Minimum, Percent | 50.00% | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares | 2.6 | 1.7 | 1.2 |
Note 3 - Investment Securitie31
Note 3 - Investment Securities (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 27, 2016 | Feb. 28, 2015 | |
Auction Rate Securities [Member] | Interest Expense [Member] | ||
Available-for-sale Securities, Gross Realized Gain (Loss) | $ (1.8) | |
Auction Rate Securities [Member] | ||
Available-for-sale Securities, Long-term Investments, Amortized Cost | 20.3 | $ 51 |
Available-for-sale Securities Temporary Impairment Adjustment Accumulated Other Comprehensive Income (Loss) | 0.5 | 3.1 |
Available-for-sale Securities, Sold at Less than Par | $ 30.7 | |
Available-for-sale Securities, Selling Price, Percentage of Par Value | 94.00% | |
US Treasury Securities [Member] | ||
Held-to-maturity Securities, Current | $ 86.2 | 110 |
Other Trading Investment Securities [Member] | ||
Deferred Compensation Plan Assets | 51.5 | 49.2 |
Deferred Compensation Plan Assets | $ 51.5 | $ 49.2 |
Note 3 - Investment Securitie32
Note 3 - Investment Securities (Details) - USD ($) $ in Millions | Feb. 27, 2016 | Feb. 28, 2015 |
Available-for-sale securities: | ||
Long term | $ 19.8 | $ 47.9 |
Trading securities: | ||
Deferred Compensation Plan Assets | 51.5 | 49.2 |
Held-to-maturity securities: | ||
Short term | 86.2 | 110 |
Total investment securities | $ 157.5 | $ 207.1 |
Note 4 - Property and Equipme33
Note 4 - Property and Equipment (Details) - USD ($) $ in Thousands | Feb. 27, 2016 | Feb. 28, 2015 |
Land and Building [Member] | ||
Property and equipment, gross | $ 567,602 | $ 557,538 |
Furniture and Fixtures [Member] | ||
Property and equipment, gross | 1,240,181 | 1,179,073 |
Leasehold Improvements [Member] | ||
Property and equipment, gross | 1,341,596 | 1,258,916 |
Computer Equipment and Software [Member] | ||
Property and equipment, gross | 1,106,812 | 940,754 |
Property and equipment, gross | 4,256,191 | 3,936,281 |
Less: Accumulated depreciation | (2,531,148) | (2,259,581) |
Property and equipment, net | $ 1,725,043 | $ 1,676,700 |
Note 5 - Long-term Debt (Detail
Note 5 - Long-term Debt (Details Textual) | Aug. 06, 2014USD ($) | Jul. 17, 2014USD ($) | Feb. 28, 2015USD ($) | Feb. 27, 2016USD ($) | Feb. 28, 2015USD ($) | Mar. 01, 2014USD ($) |
Senior Unsecured Notes [Member] | The 2024 Notes [Member] | ||||||
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, Face Amount | $ 300,000,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.915% | |||||
Senior Unsecured Notes [Member] | The 2044 Notes [Member] | ||||||
Debt Instrument, Face Amount | $ 900,000,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.165% | |||||
Senior Unsecured Notes [Member] | ||||||
Proceeds from Issuance of Long-term Debt | $ 1,500,000,000 | |||||
Debt Instrument Change in Control Offer to Purchase Principal Amount, Percentage | 101.00% | |||||
Revolver [Member] | Revolving Credit Facility [Member] | Federal Funds Rate [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||||
Revolver [Member] | Revolving Credit Facility [Member] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 250,000,000 | |||||
Debt Instrument, Term | 5 years | |||||
Senior Unsecured Notes and Revolver [Member] | Other Assets [Member] | ||||||
Debt Issuance Costs, Gross | $ 10,100,000 | |||||
Senior Unsecured Notes and Revolver [Member] | ||||||
Interest Expense | $ 44,900,000 | $ 73,000,000 | ||||
Uncommitted Line of Credit Expiration Date of February 28, 2016 [Member] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 100,000,000 | |||||
Line of Credit Facility, Number Maintained | 2 | |||||
Proceeds from Issuance of Long-term Debt | $ 0 | $ 1,500,000,000 | ||||
Letters of Credit Outstanding, Amount | 11,100,000 | 9,500,000 | 11,100,000 | |||
Unsecured Stand-by Letters of Credit, Amount | $ 71,700,000 | $ 51,200,000 | $ 71,700,000 |
Note 6 - Provision for Income35
Note 6 - Provision for Income Taxes (Details Textual) $ in Millions | 12 Months Ended | |||
Feb. 27, 2016USD ($) | Feb. 28, 2015USD ($) | Mar. 01, 2014 | Feb. 27, 2015USD ($) | |
Internal Revenue Service (IRS) [Member] | ||||
Operating Loss Carryforwards, Net of Tax | $ 11.4 | |||
State and Local Jurisdiction [Member] | ||||
Operating Loss Carryforwards, Net of Tax | 5 | |||
Expiration Of Statutes Of Limitations [Member] | Minimum [Member] | ||||
Increase in Unrecognized Tax Benefits is Reasonably Possible | 4 | |||
Expiration Of Statutes Of Limitations [Member] | Maximum [Member] | ||||
Increase in Unrecognized Tax Benefits is Reasonably Possible | $ 5 | |||
Minimum [Member] | ||||
Income Tax Examination Number of Years Under Examination | 3 years | |||
Maximum [Member] | ||||
Income Tax Examination Number of Years Under Examination | 5 years | |||
Deferred Tax Assets, Net of Valuation Allowance, Current | $ 201.5 | $ 207.3 | ||
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 2.4 | $ 49.7 | ||
Tax Credit Carryforward Amount,Net of Tax | 4.8 | |||
Other Tax Carryforward Gross Amount, Net of Tax | 1 | |||
Liability for Uncertainty in Income Taxes, Noncurrent | 72.8 | $ 80 | ||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 72.7 | 79.9 | ||
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | 10.5 | 13 | ||
Unrecognized Tax Benefits, Interest on Income Taxes Expense | $ 2.5 | $ 3.9 | ||
Number of States in which Entity Operates | 50 | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 35.00% | 35.00% | |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent | 3.07% | 3.01% | 3.07% | |
Effective Income Tax Rate Reconciliation, Tax Contingency, Percent | 0.07% | 0.04% | 0.05% | |
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent | 1.53% | 1.72% | 1.42% |
Note 6 - Components of Provisio
Note 6 - Components of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 27, 2016 | Nov. 28, 2015 | Aug. 29, 2015 | May. 30, 2015 | Feb. 28, 2015 | Nov. 29, 2014 | Aug. 30, 2014 | May. 31, 2014 | Feb. 27, 2016 | Feb. 28, 2015 | Mar. 01, 2014 | |
Current: | |||||||||||
Federal | $ 389,039 | $ 504,154 | $ 514,818 | ||||||||
State and local | 39,991 | 64,486 | 64,581 | ||||||||
Total Current | 429,030 | 568,640 | 579,399 | ||||||||
Deferred: | |||||||||||
Federal | 42,592 | (18,245) | 11,221 | ||||||||
State and local | 14,334 | (4,034) | 537 | ||||||||
Total Deferred | 56,926 | (22,279) | 11,758 | ||||||||
Total | $ 170,586 | $ 96,990 | $ 123,463 | $ 94,917 | $ 191,840 | $ 107,706 | $ 135,260 | $ 111,555 | $ 485,956 | $ 546,361 | $ 591,157 |
Note 6 - Deferred Tax Assets an
Note 6 - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Feb. 27, 2016 | Feb. 28, 2015 |
Deferred tax assets: | ||
Inventories | $ 30,470 | $ 35,169 |
Deferred rent and other rent credits | 74,182 | 77,878 |
Insurance | 51,238 | 62,668 |
Stock-based compensation | 39,417 | 35,591 |
Merchandise credits and gift card liabilities | 66,496 | 65,055 |
Accrued expenses | 46,226 | 42,328 |
Obligations on distribution centers | 40,704 | 41,175 |
Net operating loss carryforwards and other tax credits | 22,253 | 30,453 |
Other | 90,776 | 89,933 |
Deferred tax liabilities: | ||
Depreciation | (104,781) | (74,051) |
Goodwill | (62,252) | (55,888) |
Intangibles | (81,150) | (80,515) |
Other | (14,525) | (12,780) |
Total Deferred Taxes | $ 199,054 | $ 257,016 |
Note 6 - Unrecognized Tax Benef
Note 6 - Unrecognized Tax Benefit Roll Forward (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 27, 2016 | Feb. 28, 2015 | |
Balance at beginning of year | $ 79,985 | $ 92,614 |
Increase related to current year positions | 16,662 | 17,333 |
Increase related to prior year positions | 2,104 | 6,549 |
Decrease related to prior year positions | (14,698) | (20,082) |
Settlements | (5,865) | (11,762) |
Lapse of statute of limitations | (5,381) | (4,667) |
Balance at end of year | $ 72,807 | $ 79,985 |
Note 7 - Transactions and Bal39
Note 7 - Transactions and Balances with Related Parties (Details Textual) - Co-Chairmen [Member] - USD ($) $ in Millions | 12 Months Ended | |
Feb. 28, 2004 | Feb. 27, 2016 | |
Proceeds Received on Termination of Life Insurance Policy Agreement | $ 5.4 | |
Benefits Payable on Termination of Life Insurance Policy Agreement | $ 4.2 |
Note 8 - Leases (Details Textua
Note 8 - Leases (Details Textual) $ in Millions | 12 Months Ended | ||
Feb. 27, 2016USD ($) | Feb. 28, 2015USD ($) | Mar. 01, 2014USD ($) | |
Sales Leaseback Agreement One [Member] | |||
Sale Leaseback Transaction Lease Amortization Period | 32 years | ||
Sale Leaseback Transaction, Imputed Interest Rate | 7.20% | ||
Sales Leaseback Agreement Two [Member] | |||
Sale Leaseback Transaction Lease Amortization Period | 35 years | ||
Sale Leaseback Transaction, Imputed Interest Rate | 10.60% | ||
Operating Leases, Rent Expense | $ 568.1 | $ 566 | $ 559.8 |
Capital Lease Obligations | 6.5 | 3.5 | |
Capital Leases, Income Statement, Interest Expense | 0.4 | 0.5 | $ 0.5 |
Capital Leases, Future Minimum Payments Due, Next Twelve Months | 1.2 | ||
Capital Leases, Future Minimum Payments Due in Two Years | 1 | ||
Capital Leases, Future Minimum Payments Due in Three Years | 1 | ||
Capital Leases, Future Minimum Payments Due in Four Years | 0.9 | ||
Capital Leases, Future Minimum Payments Due in Five Years | $ 3.3 | ||
Number of Sale Lease Back Agreements | 2 | ||
Sale Leaseback Transaction, Amount Due under Financing Arrangement | $ 104 | $ 104.6 | |
Sale Leaseback Principal Payments Within One Year | 0.7 | ||
Sale Leaseback Principal Payments Within Two Years | 0.8 | ||
Sale Leaseback Principal Payments Within Three Years | 0.8 | ||
Sale Leaseback Principal Payments Within Four Years | 0.8 | ||
Sale Leaseback Principal Payments Within Five Years | 0.9 | ||
Sale Leaseback Principal Payments Thereafter | $ 76.4 |
Note 8 - Future Minimum Payment
Note 8 - Future Minimum Payments (Details) $ in Thousands | Feb. 27, 2016USD ($) |
Fiscal Year: | |
2,016 | $ 585,118 |
2,017 | 538,142 |
2,018 | 473,163 |
2,019 | 407,510 |
2,020 | 325,149 |
Thereafter | 955,643 |
Total future minimum lease payments | $ 3,284,725 |
Note 9 - Employee Benefit Pla42
Note 9 - Employee Benefit Plans (Details Textual) $ in Millions | 12 Months Ended | ||
Feb. 27, 2016USD ($) | Feb. 28, 2015USD ($) | Mar. 01, 2014USD ($) | |
Number of Defined Contribution Plans | 5 | ||
Defined Contribution Plan, Cost Recognized | $ 13.9 | $ 13.2 | $ 12.5 |
Nonqualified Deferred Compensation Plan Cost Recognized | 0.6 | 0.7 | $ 0.5 |
Defined Benefit Pension Plan, Liabilities, Noncurrent | 20.4 | 18.4 | |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | 6.5 | 6.1 | |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Tax | $ 4.2 | $ 4 |
Note 11 - Supplemental Cash F43
Note 11 - Supplemental Cash Flow Information (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 27, 2016 | Feb. 28, 2015 | Mar. 01, 2014 | |
Income Taxes Paid | $ 442.4 | $ 554.4 | $ 562.4 |
Interest Paid | 81.5 | 48.2 | 9.2 |
Capital Expenditures Incurred but Not yet Paid | $ 51.7 | $ 57.8 | $ 50.2 |
Note 12 - Stock-based Compens44
Note 12 - Stock-based Compensation (Details Textual) - USD ($) $ / shares in Units, shares in Millions | 12 Months Ended | ||
Feb. 27, 2016 | Feb. 28, 2015 | Mar. 01, 2014 | |
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 | $ 22.28 |
The 2012 Plan [Member] | Performance Share Units [Member] | Minimum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award Target Award Percentage | 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% | ||
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% | ||
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 | ||
Employee Stock Option [Member] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 23,200,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 255 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 3 years 255 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 19,900,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 2 years 146 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 18,900,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 8,700,000 | $ 33,500,000 | $ 44,600,000 |
Proceeds from Stock Options Exercised | 9,100,000 | ||
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options | 10,000,000 | ||
Restricted Stock [Member] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 127,600,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years 219 days | ||
Phantom Share Units (PSUs) [Member] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 20,600,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years | ||
Allocated Share-based Compensation Expense | $ 67,000,000 | 66,500,000 | 56,200,000 |
Allocated Share-based Compensation Expense, Net of Tax | $ 42,400,000 | $ 42,400,000 | $ 35,600,000 |
Stock Based Compensation Expense Impact On Diluted Earnings Per Share | $ 0.26 | $ 0.22 | $ 0.17 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs, Capitalized Amount | $ 2,100,000 | $ 1,900,000 | |
Proceeds from Stock Options Exercised | $ 9,109,000 | $ 41,197,000 | $ 54,815,000 |
Note 12 - Assumptions Used to E
Note 12 - Assumptions Used to Estimate the Black-Scholes Fair Value of Stock Options Granted (Details) | 12 Months Ended | |||
Feb. 27, 2016 | Feb. 28, 2015 | Mar. 01, 2014 | ||
Weighted Average Expected Life (in years) | [1],[2] | 6 years 255 days | 6 years 219 days | 6 years 219 days |
Weighted Average Expected Volatility | [1],[3] | 27.59% | 28.31% | 29.27% |
Weighted Average Risk Free Interest Rates | [1],[4] | 1.93% | 2.11% | 1.11% |
Expected Dividend Yield | [1] | 0.00% | 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 12 - Changes in the Compan
Note 12 - Changes in the Company's Stock Options (Details) - Employee Stock Option [Member] shares in Thousands | 12 Months Ended |
Feb. 27, 2016$ / sharesshares | |
Options outstanding, beginning of period (in shares) | shares | 3,682 |
Options outstanding, beginning of period (in dollars per share) | $ / shares | $ 51.05 |
Granted (in shares) | shares | 501 |
Granted (in dollars per share) | $ / shares | $ 70.96 |
Exercised (in shares) | shares | (255) |
Exercised (in dollars per share) | $ / shares | $ 35.10 |
Forfeited or expired (in shares) | shares | (90) |
Forfeited or expired (in dollars per share) | $ / shares | $ 63.12 |
Options outstanding, end of period (in shares) | shares | 3,838 |
Options outstanding, end of period (in dollars per share) | $ / shares | $ 54.43 |
Options exercisable, end of period (in shares) | shares | 2,358 |
Options exercisable, end of period (in dollars per share) | $ / shares | $ 47.06 |
Note 12 - Changes in the Comp47
Note 12 - Changes in the Company's Restricted Stock (Details) - Restricted Stock [Member] shares in Thousands | 12 Months Ended |
Feb. 27, 2016$ / sharesshares | |
Unvested restricted stock, beginning of period (in shares) | shares | 3,592 |
Unvested restricted stock, beginning of period (in dollars per share) | $ / shares | $ 57.90 |
Granted (in shares) | shares | 792 |
Granted (in dollars per share) | $ / shares | $ 68.67 |
Vested (in shares) | shares | (952) |
Vested (in dollars per share) | $ / shares | $ 49.50 |
Forfeited (in shares) | shares | (202) |
Forfeited (in dollars per share) | $ / shares | $ 62.81 |
Unvested restricted stock, end of period (in shares) | shares | 3,230 |
Unvested restricted stock, end of period (in dollars per share) | $ / shares | $ 62.71 |
Note 12 - Changes in the Comp48
Note 12 - Changes in the Company's Performance Stock Units (Details) - Performance Shares [Member] shares in Thousands | 12 Months Ended |
Feb. 27, 2016$ / sharesshares | |
Unvested restricted stock, beginning of period (in shares) | shares | 391 |
Unvested restricted stock, beginning of period (in dollars per share) | $ / shares | $ 62.34 |
Granted (in shares) | shares | 370 |
Granted (in dollars per share) | $ / shares | $ 70.96 |
Vested (in shares) | shares | (98) |
Vested (in dollars per share) | $ / shares | $ 62.34 |
Forfeited (in shares) | shares | (36) |
Forfeited (in dollars per share) | $ / shares | $ 67.15 |
Unvested restricted stock, end of period (in shares) | shares | 627 |
Unvested restricted stock, end of period (in dollars per share) | $ / shares | $ 67.15 |
Note 13 - Summary of Quarterl49
Note 13 - Summary of Quarterly Results (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Feb. 27, 2016 | Nov. 28, 2015 | Aug. 29, 2015 | May. 30, 2015 | Feb. 28, 2015 | Nov. 29, 2014 | Aug. 30, 2014 | May. 31, 2014 | Feb. 27, 2016 | Feb. 28, 2015 | Mar. 01, 2014 | |||||||||
Net sales | $ 3,417,892 | $ 2,952,031 | $ 2,995,469 | $ 2,738,495 | $ 3,336,593 | $ 2,942,980 | $ 2,944,905 | $ 2,656,698 | $ 12,103,887 | $ 11,881,176 | $ 11,503,963 | ||||||||
Gross profit | 1,319,916 | 1,115,311 | 1,140,950 | 1,044,133 | 1,325,875 | 1,128,974 | 1,134,045 | 1,030,885 | 4,620,310 | 4,619,779 | 4,565,582 | ||||||||
Operating profit | 498,582 | 292,858 | 350,194 | 273,269 | 532,168 | 352,683 | 368,741 | 300,701 | 1,414,903 | 1,554,293 | 1,614,587 | ||||||||
Earnings before provision for income taxes | 474,130 | 274,806 | 325,141 | 253,368 | 512,901 | 333,114 | 359,213 | 298,607 | 1,327,445 | 1,503,835 | 1,613,447 | ||||||||
Provision for income taxes | 170,586 | 96,990 | 123,463 | 94,917 | 191,840 | 107,706 | 135,260 | 111,555 | 485,956 | 546,361 | 591,157 | ||||||||
Net earnings | $ 303,544 | $ 177,816 | $ 201,678 | $ 158,451 | $ 321,061 | $ 225,408 | $ 223,953 | $ 187,052 | $ 841,489 | $ 957,474 | $ 1,022,290 | ||||||||
EPS-Basic (in dollars per share) | $ 1.93 | [1] | $ 1.10 | [1] | $ 1.22 | [1] | $ 0.94 | [1] | $ 1.83 | [1] | $ 1.24 | [1] | $ 1.18 | [1] | $ 0.94 | [1] | $ 5.15 | $ 5.13 | $ 4.85 |
EPS-Diluted (in dollars per share) | $ 1.91 | [1] | $ 1.09 | [1] | $ 1.21 | [1] | $ 0.93 | [1] | $ 1.80 | [1] | $ 1.23 | [1] | $ 1.17 | [1] | $ 0.93 | [1] | $ 5.10 | $ 5.07 | $ 4.79 |
[1] | Net earnings per share ("EPS") amounts for each quarter are required to be computed independently and may not equal the amount computed for the total year. |
Schedule II - Valuation and Q50
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 27, 2016 | Feb. 28, 2015 | Mar. 01, 2014 | |
Beginning Balance | $ 45 | $ 45 | $ 40 |
Additions Charged to Income | $ 693.3 | $ 715.7 | $ 706.6 |
Additions Charged to Other Accounts | |||
Adjustments and/or Deductions | $ 693.8 | $ 715.7 | $ 701.6 |
Ending Balance | $ 44.5 | $ 45 | $ 45 |