Document And Entity Information
Document And Entity Information | 3 Months Ended |
May 27, 2017shares | |
Document Information [Line Items] | |
Entity Registrant Name | BED BATH & BEYOND INC |
Entity Central Index Key | 886,158 |
Trading Symbol | bbby |
Current Fiscal Year End Date | --02-24 |
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) | 144,729,975 |
Document Type | 10-Q |
Document Period End Date | May 27, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | May 27, 2017 | Feb. 25, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 469,320 | $ 488,329 |
Merchandise inventories | 2,962,936 | 2,905,660 |
Other current assets | 217,917 | 197,912 |
Total current assets | 3,650,173 | 3,591,901 |
Long term investment securities | 96,121 | 89,592 |
Property and equipment, net | 1,817,594 | 1,837,129 |
Goodwill | 707,643 | 697,085 |
Other assets | 604,270 | 606,948 |
Total assets | 6,875,801 | 6,822,655 |
Liabilities and Shareholders' Equity | ||
Accounts payable | 1,178,811 | 1,179,088 |
Accrued expenses and other current liabilities | 509,501 | 484,114 |
Merchandise credit and gift card liabilities | 319,496 | 309,478 |
Current income taxes payable | 117,211 | 59,821 |
Total current liabilities | 2,125,019 | 2,032,501 |
Deferred rent and other liabilities | 520,040 | 511,303 |
Income taxes payable | 66,431 | 67,971 |
Long term debt | 1,491,719 | 1,491,603 |
Total liabilities | 4,203,209 | 4,103,378 |
Shareholders' equity: | ||
Preferred stock - $0.01 par value; authorized - 1,000 shares; no shares issued or outstanding | 0 | 0 |
Common stock - $0.01 par value; authorized - 900,000 shares; issued 341,276 and 339,533, respectively; outstanding 144,730 and 146,274 shares, respectively | 3,413 | 3,395 |
Additional paid-in capital | 2,006,939 | 1,974,781 |
Retained earnings | 11,057,826 | 11,003,890 |
Treasury stock, at cost; 196,546 and 193,259 shares, respectively | (10,342,863) | (10,215,539) |
Accumulated other comprehensive loss | (52,723) | (47,250) |
Total shareholders' equity | 2,672,592 | 2,719,277 |
Total liabilities and shareholders' equity | $ 6,875,801 | $ 6,822,655 |
Consolidated Balance Sheets (C3
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares shares in Thousands | May 27, 2017 | Feb. 25, 2017 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 1,000 | 1,000 |
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 | 900,000 |
Common stock, shares issued (in shares) | 341,276 | 339,533 |
Common stock, shares outstanding (in shares) | 144,730 | 146,274 |
Treasury stock, shares (in shares) | 196,546 | 193,259 |
Consolidated Statements of Earn
Consolidated Statements of Earnings (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
May 27, 2017 | May 28, 2016 | |
Net sales | $ 2,742,141 | $ 2,738,084 |
Cost of sales | 1,742,026 | 1,714,492 |
Gross profit | 1,000,115 | 1,023,592 |
Selling, general and administrative expenses | 853,104 | 810,566 |
Operating profit | 147,011 | 213,026 |
Interest expense, net | 16,580 | 16,315 |
Earnings before provision for income taxes | 130,431 | 196,711 |
Provision for income taxes | 55,148 | 74,092 |
Net earnings | $ 75,283 | $ 122,619 |
Net earnings per share - Basic (in dollars per share) | $ 0.53 | $ 0.81 |
Net earnings per share - Diluted (in dollars per share) | $ 0.53 | $ 0.80 |
Weighted average shares outstanding - Basic (in shares) | 141,331 | 152,157 |
Weighted average shares outstanding - Diluted (in shares) | 142,141 | 153,752 |
Dividends declared per share (in dollars per share) | $ 0.15 | $ 0.125 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
May 27, 2017 | May 28, 2016 | |
Net earnings | $ 75,283 | $ 122,619 |
Other comprehensive (loss) income: | ||
Change in temporary impairment of auction rate securities, net of taxes | 166 | (276) |
Pension adjustment, net of taxes | 199 | 241 |
Currency translation adjustment | (5,838) | 7,363 |
Other comprehensive (loss) income | (5,473) | 7,328 |
Comprehensive income | $ 69,810 | $ 129,947 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
May 27, 2017 | May 28, 2016 | |
Cash Flows from Operating Activities: | ||
Net earnings | $ 75,283 | $ 122,619 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 74,912 | 70,445 |
Stock-based compensation | 21,490 | 20,748 |
Deferred income taxes | (6,571) | 4,153 |
Other | 555 | (479) |
Increase in assets, net of effect of acquisitions: | ||
Merchandise inventories | (59,916) | (71,933) |
Trading investment securities | (6,256) | (7,515) |
Other current assets | (20,146) | (32,502) |
Other assets | (631) | (11,946) |
Increase (decrease) in liabilities, net of effect of acquisitions: | ||
Accounts payable | 24,567 | 66,260 |
Accrued expenses and other current liabilities | 25,591 | 42,631 |
Merchandise credit and gift card liabilities | 10,172 | 8,319 |
Income taxes payable | 55,805 | (4,932) |
Deferred rent and other liabilities | 9,779 | 3,300 |
Net cash provided by operating activities | 204,634 | 209,168 |
Cash Flows from Investing Activities: | ||
Redemption of held-to-maturity investment securities | 63,742 | |
Capital expenditures | (80,760) | (89,455) |
Payment for acquisition, net of cash acquired | (4,344) | |
Net cash used in investing activities | (85,104) | (25,713) |
Cash Flows from Financing Activities: | ||
Proceeds from exercise of stock options | 10,161 | 19,246 |
Payment of dividends | (18,161) | 0 |
Repurchase of common stock, including fees | (127,324) | (178,124) |
Net cash used in financing activities | (135,324) | (158,878) |
Effect of exchange rate changes on cash and cash equivalents | (3,215) | 4,119 |
Net (decrease) increase in cash and cash equivalents | (19,009) | 28,696 |
Cash and cash equivalents: | ||
Beginning of period | 488,329 | 515,573 |
End of period | $ 469,320 | $ 544,269 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 3 Months Ended |
May 27, 2017 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1 The accompanying consolidated financial statements have been prepared without audit. In the opinion of management, the accompanying consolidated financial statements contain all adjustments (consisting of only normal recurring accruals and elimination of intercompany balances and transactions) necessary to present fairly the financial position of Bed Bath & Beyond Inc. and subsidiaries (the "Company") as of May 27, 2017 February 25, 2017 three May 27, 2017 May 28, 2016, The accompanying unaudited consolidated financial statements are presented in accordance with the requirements for Form 10 not 10 February 25, 2017 8 Certain reclassifications have been made to the fiscal 2016 2017 The Company accounts for its operations as two not not not three May 27, 2017 May 28, 2016. 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 36.2% 63.8% three May 27, 2017 36.6% 63.4% three May 28, 2016. As the Company operates in the retail industry, its results of operations are affected by general economic conditions and consumer spending habits. |
Note 2 - Acquisitions
Note 2 - Acquisitions | 3 Months Ended |
May 27, 2017 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | 2 On June 13, 2016, not no On November 23, 2016, $189.4 not no The following table summarizes the preliminary estimated fair value of the assets acquired and liabilities assumed at the date of acquisition for PMall. The Company is in the process of finalizing the valuation of certain assets acquired and liabilities assumed; thus, the amounts below are subject to change until the anniversary of the acquisition. (in millions) As of November 23, 2016 Current assets $ 15.1 Property and equipment and other non-current assets 9.3 Goodwill 185.5 Intangible assets 10.4 Total assets acquired 220.3 Accounts payable and other liabilities (30.9 ) Total net assets acquired $ 189.4 Included within intangible assets above is approximately $10.0 not On January 27, 2017, not no On March 6, 2017, not three May 27, 2017, no |
Note 3 - Recent Accounting Pron
Note 3 - Recent Accounting Pronouncements | 3 Months Ended |
May 27, 2017 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | 3 In November 2015, 2015 17, Income Taxes (Topic 740 2015 17 December 15, 2016, 2015 17 first 2017, $218.8 $23.4 $195.5 February 25, 2017. In March 2016, 2016 09, Compensation - Stock Compensation (Topic 718 2016 09 2016 09 2016 09 December 15, 2016, 2016 09 first 2017. three May 27, 2017, $7.6 2016 09. 2016 09 $1.3 three May 28, 2016 2016 09 no In May 2014, 2014 09, Revenue from Contracts with Customers (Topic 606 July 2015, 2015 14, Revenue from Contracts with Customers (Topic 606 2014 09 one 2014 09 December 15, 2017, 2016, 2014 09 not not not In February 2016, 2016 02, Leases (Topic 842 2016 02 December 15, 2018, 2016 02 In January 2017, 2017 01, Business Combinations (Topic 805 2017 01 not 2017 01 December 15, 2017, not In January 2017, 2017 04, Intangibles – Goodwill and Other (Topic 350 2017 04 second not 2017 04 December 15, 2019, not |
Note 4 - Fair Value Measurement
Note 4 - Fair Value Measurements | 3 Months Ended |
May 27, 2017 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 4 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 three • Level 1 not • Level 2 not • Level 3 As of May 27, 2017, 1 not 2 3 6 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 include auction rate securities, which are stated at their approximate fair value. The book value of the financial instruments, excluding the Company’s long term debt, is representative of their fair values. The fair value of the Company’s long term debt is approximately $1.407 May 27, 2017, 1 $1.500 |
Note 5 - Cash and Cash Equivale
Note 5 - Cash and Cash Equivalents | 3 Months Ended |
May 27, 2017 | |
Notes to Financial Statements | |
Cash and Cash Equivalents Disclosure [Text Block] | 5 Included in cash and cash equivalents are credit and debit card receivables from banks, which typically settle within five $100.6 $86.6 May 27, 2017 February 25, 2017, |
Note 6 - Investment Securities
Note 6 - Investment Securities | 3 Months Ended |
May 27, 2017 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | 6 The Company’s investment securities as of May 27, 2017 February 25, 2017 (in millions) May 27, February 25, Available-for-sale securities: Long term $ 19.5 $ 19.3 Trading securities: Long term 76.6 70.3 Total investment securities $ 96.1 $ 89.6 Auction Rate Securities As of May 27, 2017 February 25, 2017, $20.3 $0.8 $1.0 not 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 $76.6 $70.3 May 27, 2017 February 25, 2017, |
Note 7 - Property and Equipment
Note 7 - Property and Equipment | 3 Months Ended |
May 27, 2017 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 7 As of May 27, 2017 February 25, 2017, $2.9 $2.8 |
Note 8 - Long Term Debt
Note 8 - Long Term Debt | 3 Months Ended |
May 27, 2017 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | 8 Senior Unsecured Notes On July 17, 2014, $300 3.749% August 1, 2024, $300 4.915% August 1, 2034 $900 5.165% August 1, 2044 ( February 1 August 1 The Notes were issued under an indenture (the “Base Indenture”), as supplemented by a first May 27, 2017. Revolving Credit Agreement The Company has a $250 five August 2019, three May 27, 2017, not The Revolver contains customary affirmative and negative covenants and also requires the Company to maintain a minimum leverage ratio. The Company was in compliance with all covenants related to the Revolver as of May 27, 2017. Deferred financing costs associated with the Notes and the Revolver of approximately $10.1 $18.2 $18.7 three May 27, 2017 May 28, 2016, Lines of Credit At May 27, 2017, two $100 August 30, 2017 February 25, 2018, first three 2017, not no |
Note 9 - Shareholders' Equity
Note 9 - Shareholders' Equity | 3 Months Ended |
May 27, 2017 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 9 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 September 2015, $11.950 first three 2017, 3.3 $127.3 196.5 $10.3 December 2004. $1.6 May 27, 2017. During fiscal 2016, $0.125 $0.50 2016 $0.375 2016. April 5, 2017, $0.15 July 18, 2017 June 16, 2017. first 2017, June 22, 2017, $0.15 October 17, 2017 September 15, 2017. Cash dividends, if any, are accrued as a liability on the Company’s consolidated balance sheets and recorded as a decrease to additional paid-in capital when declared. |
Note 10 - Stock-based Compensat
Note 10 - Stock-based Compensation | 3 Months Ended |
May 27, 2017 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 10 The Company measures all employee stock-based compensation awards using a fair value method and records such expense, net of estimated forfeitures, in its consolidated financial statements. Currently, the Company’s stock-based compensation relates to restricted stock awards, stock options and performance stock units. The Company’s restricted stock awards are considered nonvested share awards. Stock-based compensation expense for the three May 27, 2017 May 28, 2016 $21.5 $12.4 $0.09 $20.7 $12.9 $0.08 three May 27, 2017 May 28, 2016 $0.5 Incentive Compensation Plans The Company currently grants awards under the Bed Bath & Beyond 2012 “2012 2004 “2004 2012 43.2 2004 2012 The 2012 2012 five one three four 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 five one May 10, 2010, one three May 10, 2010, eight May 27, 2017, $25.0 3.7 The fair value of the stock options granted was estimated on the date of the grant using a Black-Scholes option-pricing model that uses the assumptions noted in the following table. Three Months Ended Black-Scholes Valuation Assumptions (1) May 27, 2017 May 28, 2016 Weighted Average Expected Life (in years) (2) 6.7 6.6 Weighted Average Expected Volatility (3) 26.49 % 26.96 % Weighted Average Risk Free Interest Rates (4) 2.17 % 1.46 % Expected Dividend Yield (5) 1.60 % 1.10 % ( 1 ( 2 ( 3 twelve ( 4 ( 5 Changes in the Company’s stock options for the three May 27, 2017 (Shares in thousands) Number of Stock Options Weighted Average Options outstanding, beginning of period 3,906 $ 56.48 Granted 694 37.50 Exercised (359 ) 28.33 Forfeited or expired - - Options outstanding, end of period 4,241 $ 55.76 Options exercisable, end of period 2,441 $ 60.38 The weighted average fair value for the stock options granted during the first three 2017 2016 $9.50 $11.87, May 27, 2017 4.82 $0. May 27, 2017 3.35 $0. first three 2017 2016 $3.9 $8.3 Net cash proceeds from the exercise of stock options for the first three 2017 $10.2 $0.2 Restricted Stock Restricted stock awards are issued and measured at fair market value on the date of grant and generally become vested in five one three May 27, 2017, $160.8 4.9 Changes in the Company’s restricted stock for the three May 27, 2017 (Shares in thousands) Number of Restricted Weighted Average Unvested restricted stock, beginning of period 3,492 $ 58.12 Granted 1,118 37.59 Vested (527 ) 60.96 Forfeited (50 ) 53.16 Unvested restricted stock, end of period 4,033 $ 52.12 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 three four one three zero 150% 100% May 27, 2017, $41.2 2.2 Changes in the Company’s PSUs for the three May 27, 2017 (Shares in thousands) Number of Performance Weighted Average Unvested performance stock units, beginning of period 1,014 $ 55.19 Granted 660 37.50 Vested (322 ) 57.28 Forfeited - - Unvested performance stock units, end of period 1,352 $ 46.06 |
Note 11 - Earnings Per Share
Note 11 - Earnings Per Share | 3 Months Ended |
May 27, 2017 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 11 The Company presents earnings per share on a basic and diluted basis. Basic earnings per share has been computed by dividing net earnings by the weighted average number of shares outstanding. Diluted earnings per share has been computed by dividing net earnings by the weighted average number of shares outstanding, including the dilutive effect of stock-based awards as calculated under the treasury stock method. Stock-based awards for the three May 27, 2017 May 28, 2016 7.2 4.7 |
Note 12 - Supplemental Cash Flo
Note 12 - Supplemental Cash Flow Information | 3 Months Ended |
May 27, 2017 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | 12 The Company paid income taxes of $8.7 $75.2 first three 2017 2016, $2.2 first three 2017 2016. The Company recorded an accrual for capital expenditures of $34.1 $29.1 May 27, 2017 May 28, 2016, $23.6 $19.4 May 27, 2017 May 26, 2016, |
Note 2 - Acquisitions (Tables)
Note 2 - Acquisitions (Tables) | 3 Months Ended |
May 27, 2017 | |
Notes Tables | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | (in millions) As of November 23, 2016 Current assets $ 15.1 Property and equipment and other non-current assets 9.3 Goodwill 185.5 Intangible assets 10.4 Total assets acquired 220.3 Accounts payable and other liabilities (30.9 ) Total net assets acquired $ 189.4 |
Note 6 - Investment Securities
Note 6 - Investment Securities (Tables) | 3 Months Ended |
May 27, 2017 | |
Notes Tables | |
Marketable Securities [Table Text Block] | (in millions) May 27, February 25, Available-for-sale securities: Long term $ 19.5 $ 19.3 Trading securities: Long term 76.6 70.3 Total investment securities $ 96.1 $ 89.6 |
Note 10 - Stock-based Compens21
Note 10 - Stock-based Compensation (Tables) | 3 Months Ended |
May 27, 2017 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Three Months Ended Black-Scholes Valuation Assumptions (1) May 27, 2017 May 28, 2016 Weighted Average Expected Life (in years) (2) 6.7 6.6 Weighted Average Expected Volatility (3) 26.49 % 26.96 % Weighted Average Risk Free Interest Rates (4) 2.17 % 1.46 % Expected Dividend Yield (5) 1.60 % 1.10 % |
Share-based Compensation, Stock Options, Activity [Table Text Block] | (Shares in thousands) Number of Stock Options Weighted Average Options outstanding, beginning of period 3,906 $ 56.48 Granted 694 37.50 Exercised (359 ) 28.33 Forfeited or expired - - Options outstanding, end of period 4,241 $ 55.76 Options exercisable, end of period 2,441 $ 60.38 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | (Shares in thousands) Number of Restricted Weighted Average Unvested restricted stock, beginning of period 3,492 $ 58.12 Granted 1,118 37.59 Vested (527 ) 60.96 Forfeited (50 ) 53.16 Unvested restricted stock, end of period 4,033 $ 52.12 |
Share-based Compensation, Performance Shares Award Nonvested Activity [Table Text Block] | (Shares in thousands) Number of Performance Weighted Average Unvested performance stock units, beginning of period 1,014 $ 55.19 Granted 660 37.50 Vested (322 ) 57.28 Forfeited - - Unvested performance stock units, end of period 1,352 $ 46.06 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation (Details Textual) | 3 Months Ended | |
May 27, 2017 | May 28, 2016 | |
Number of Operating Segments | 2 | |
Product Concentration Risk [Member] | Sales Revenue, Net [Member] | Domestic Merchandise [Member] | ||
Concentration Risk, Percentage | 36.20% | 36.60% |
Product Concentration Risk [Member] | Sales Revenue, Net [Member] | Home Furnishings [Member] | ||
Concentration Risk, Percentage | 63.80% | 63.40% |
Note 2 - Acquisitions (Details
Note 2 - Acquisitions (Details Textual) - PersonalizationMall.Com [Member] $ in Millions | Nov. 23, 2016USD ($) |
Business Combination, Consideration Transferred | $ 189.4 |
Trade Names [Member] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | $ 10 |
Note 2 - Acquisitions - Summary
Note 2 - Acquisitions - Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | May 27, 2017 | Feb. 25, 2017 | Nov. 23, 2016 |
Goodwill | $ 707,643 | $ 697,085 | |
PersonalizationMall.Com [Member] | |||
Current assets | $ 15,100 | ||
Property and equipment and other non-current assets | 9,300 | ||
Goodwill | 185,500 | ||
Intangible assets | 10,400 | ||
Total assets acquired | 220,300 | ||
Accounts payable and other liabilities | (30,900) | ||
Total net assets acquired | $ 189,400 |
Note 3 - Recent Accounting Pr25
Note 3 - Recent Accounting Pronouncements (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
May 27, 2017 | May 28, 2016 | |
Income Tax Expense (Benefit) | $ 55,148 | $ 74,092 |
Reclassification of Deferred Tax Assets From Other Current Assets to Other Assets [Member] | February 25, 2017 [Member] | ||
Prior Period Reclassification Adjustment | 218,800 | |
Reclassification of Deferred Tax Liabilities From Deferred Rent and Other Liabilities to Other Assets [Member] | February 25, 2017 [Member] | ||
Prior Period Reclassification Adjustment | 23,400 | |
Reclassification of Deferred Tax Assets and Liabilities From Other Current and Deferred Rent and Other Liabilities to Other Assets [Member] | February 25, 2017 [Member] | ||
Prior Period Reclassification Adjustment | 195,500 | |
Accounting Standards Update 2016-09 [Member] | ||
Income Tax Expense (Benefit) | 7,600 | |
Reclassification of Excess Tax Benefits from Financing to Operating Activities [Member] | Three Months Ended May 28, 2016 [Member] | ||
Prior Period Reclassification Adjustment | $ 1,300 |
Note 4 - Fair Value Measureme26
Note 4 - Fair Value Measurements (Details Textual) $ in Millions | May 27, 2017USD ($) |
Long-term Debt, Fair Value | $ 1,407 |
Long-term Debt | $ 1,500 |
Note 5 - Cash and Cash Equiva27
Note 5 - Cash and Cash Equivalents (Details Textual) - USD ($) $ in Millions | 3 Months Ended | |
May 27, 2017 | Feb. 25, 2017 | |
Number of Business Days for Settlement of Credit and Debit Card Receivable | 5 days | |
Credit and Debit Card Receivables, at Carrying Value | $ 100.6 | $ 86.6 |
Note 6 - Investment Securitie28
Note 6 - Investment Securities (Details Textual) - USD ($) $ in Millions | May 27, 2017 | Feb. 25, 2017 |
Auction Rate Securities [Member] | ||
Available-for-sale Securities Temporary Impairment Adjustment Accumulated Other Comprehensive Income (Loss) | $ 0.8 | $ (1) |
Available-for-sale Securities, Long-term Investments, Amortized Cost | 20.3 | 20.3 |
Other Trading Investment Securities [Member] | ||
Deferred Compensation Plan Assets | $ 76.6 | $ 70.3 |
Note 6 - Investment Securitie29
Note 6 - Investment Securities - Summary of Investment Securities (Details) - USD ($) $ in Millions | May 27, 2017 | Feb. 25, 2017 |
Available-for-sale securities: | ||
Long term | $ 19.5 | $ 19.3 |
Trading securities: | ||
Long term | 76.6 | 70.3 |
Total investment securities | $ 96.1 | $ 89.6 |
Note 7 - Property and Equipme30
Note 7 - Property and Equipment (Details Textual) - USD ($) $ in Billions | May 27, 2017 | Feb. 25, 2017 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 2.9 | $ 2.8 |
Note 8 - Long Term Debt (Detail
Note 8 - Long Term Debt (Details Textual) $ in Thousands | Aug. 06, 2014USD ($) | May 27, 2017USD ($) | May 28, 2016USD ($) | Jul. 17, 2014USD ($) |
Line of Credit Facility, Number of Uncommitted Lines of Credit Maintained | 2 | |||
Uncommitted Line of Credit Expiring August 30, 2017 [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 100,000 | |||
Uncommitted Lines of Credit [Member] | ||||
Proceeds from Lines of Credit | 0 | |||
Uncommitted Line of Credit Expiring February 25, 2018 [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 100,000 | |||
Revolver [Member] | Revolving Credit Facility [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 250,000 | |||
Debt Instrument, Term | 5 years | |||
Proceeds from Lines of Credit | 0 | |||
Senior Unsecured Notes and Revolver [Member] | ||||
Interest Expense | $ 18,200 | $ 18,700 | ||
Senior Unsecured Notes and Revolver [Member] | Other Assets [Member] | ||||
Debt Issuance Costs, Gross | $ 10,100 | |||
Senior Unsecured Notes [Member] | The 2024 Notes [Member] | ||||
Debt Instrument, Face Amount | $ 300,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.749% | |||
Senior Unsecured Notes [Member] | The 2034 Notes [Member] | ||||
Debt Instrument, Face Amount | $ 300,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.915% | |||
Senior Unsecured Notes [Member] | The 2044 Notes [Member] | ||||
Debt Instrument, Face Amount | $ 900,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.165% |
Note 9 - Shareholders' Equity (
Note 9 - Shareholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | Jun. 22, 2017 | Apr. 05, 2017 | May 27, 2017 | Feb. 25, 2017 | Nov. 26, 2016 | Aug. 27, 2016 | May 28, 2016 | Feb. 25, 2017 | May 27, 2017 | Sep. 30, 2015 |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.375 | |||||||||
Stock Repurchase Program, Authorized Amount | $ 11,950,000 | |||||||||
Treasury Stock, Shares, Acquired | 3.3 | 196.5 | ||||||||
Payments for Repurchase of Common Stock | $ 127,324 | $ 178,124 | $ 10,300,000 | |||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 1,600,000 | $ 1,600,000 | ||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.15 | $ 0.15 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.50 | |||
Subsequent Event [Member] | ||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.15 |
Note 10 - Stock-based Compens33
Note 10 - Stock-based Compensation (Details Textual) - USD ($) $ / shares in Units, shares in Millions | 3 Months Ended | |
May 27, 2017 | May 28, 2016 | |
Allocated Share-based Compensation Expense | $ 21,500,000 | $ 20,700,000 |
Allocated Share-based Compensation Expense, Net of Tax | $ 12,400,000 | $ 12,900,000 |
Stock Based Compensation Expense, Impact On Diluted Earnings Per Share | $ 0.09 | $ 0.08 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs, Capitalized Amount | $ 500,000 | $ 500,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 4 years 299 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 3 years 127 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 3,900,000 | 8,300,000 |
Proceeds from Stock Options Exercised | 10,161,000 | $ 19,246,000 |
Employee Service Share-based Compensation, Tax Benefit from Exercise of Stock Options | 200,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 25,000,000 | |
Performance Shares [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award Target Award Percentage | 150.00% | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 41,200,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 73 days | |
Employee Stock Option [Member] | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years 255 days | |
Restricted Stock [Member] | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 160,800,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 4 years 328 days | |
The 2012 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 43.2 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 9.50 | $ 11.87 |
The 2012 Plan [Member] | Employee Stock Options and Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | |
Share Based Compensation Arrangement By Share Based Payment Award Award Requisite Service Period Minimum | 1 year | |
Share Based Compensation Arrangement By Share Based Payment Award Award Requisite Service Period Maximum | 3 years | |
The 2012 Plan [Member] | Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |
The 2012 Plan [Member] | Performance Shares [Member] | Scenario Assumption [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award Target Award Percentage | 100.00% | |
The 2012 Plan [Member] | Performance Shares [Member] | One-year Performance Period Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |
Share Based Compensation Arrangement By Share Based Payment Award Award Requisite Service Period Minimum | 1 year | |
Share Based Compensation Arrangement By Share Based Payment Award Award Requisite Service Period Maximum | 3 years | |
The 2012 Plan [Member] | Performance Shares [Member] | Minimum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award Target Award Percentage | 0.00% | |
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 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 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, Expiration Period | 8 years | |
The 2012 Plan [Member] | Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | |
Share Based Compensation Arrangement By Share Based Payment Award Award Requisite Service Period Minimum | 1 year | |
Share Based Compensation Arrangement By Share Based Payment Award Award Requisite Service Period Maximum | 3 years |
Note 10 - Stock-based Compens34
Note 10 - Stock-based Compensation - Assumptions Used to Estimate the Black-scholes Fair Value of Stock Options Granted (Details) - Employee Stock Option [Member] | 3 Months Ended | ||
May 27, 2017 | May 28, 2016 | ||
Weighted Average Expected Life (in years) (Year) | [1],[2] | 6 years 255 days | 6 years 219 days |
Weighted Average Expected Volatility | [1],[3] | 26.49% | 26.96% |
Weighted Average Risk Free Interest Rates | [1],[4] | 2.17% | 1.46% |
Expected Dividend Yield | [1],[5] | 1.60% | 1.10% |
[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. | ||
[5] | Expected dividend yield is estimated based on anticipated dividend payouts. |
Note 10 - Stock-based Compens35
Note 10 - Stock-based Compensation - Changes in the Company's Stock Options (Details) shares in Thousands | 3 Months Ended |
May 27, 2017$ / sharesshares | |
Options outstanding, beginning of period (in shares) | shares | 3,906 |
Options outstanding, weighted average exercise price, beginning of period (in dollars per share) | $ / shares | $ 56.48 |
Options granted (in shares) | shares | 694 |
Options granted, weighted average exercise price (in dollars per share) | $ / shares | $ 37.50 |
Options exercised (in shares) | shares | (359) |
Options exercised, weighted average exercise price (in dollars per share) | $ / shares | $ 28.33 |
Options forfeited or expired (in shares) | shares | |
Options outstanding, weighted average exercise price, end of period (in dollars per share) | $ / shares | $ 55.76 |
Options exercisable, end of period (in shares) | shares | 2,441 |
Options forfeited or expired, weighted average exercise price (in dollars per share) | $ / shares | |
Options outstanding, end of period (in shares) | shares | 4,241 |
Options exercisable, weighted average exercise price, end of period (in dollars per share) | $ / shares | $ 60.38 |
Note 10 - Stock-based Compens36
Note 10 - Stock-based Compensation - Changes in the Company's Restricted Stock (Details) - Restricted Stock [Member] shares in Thousands | 3 Months Ended |
May 27, 2017$ / sharesshares | |
Unvested shares, beginning of period (in shares) | shares | 3,492 |
Unvested shares, weighted average grant date fair value, beginning of period (in dollars per share) | $ / shares | $ 58.12 |
Unvested shares, granted (in shares) | shares | 1,118 |
Unvested shares, weighted average grant date fair value, granted (in dollars per share) | $ / shares | $ 37.59 |
Unvested shares, vested (in shares) | shares | (527) |
Unvested shares, weighted average grant date fair value, vested (in dollars per share) | $ / shares | $ 60.96 |
Unvested shares, forfeited (in shares) | shares | (50) |
Unvested shares, weighted average grant date fair value, forfeited (in dollars per share) | $ / shares | $ 53.16 |
Unvested shares, end of period (in shares) | shares | 4,033 |
Unvested shares, weighted average grant date fair value, end of period (in dollars per share) | $ / shares | $ 52.12 |
Note 10 - Stock-based Compens37
Note 10 - Stock-based Compensation - Changes in the Company's Performance Stock Units (Details) - Performance Shares [Member] shares in Thousands | 3 Months Ended |
May 27, 2017$ / sharesshares | |
Unvested shares, beginning of period (in shares) | shares | 1,014 |
Unvested shares, weighted average grant date fair value, beginning of period (in dollars per share) | $ / shares | $ 55.19 |
Unvested shares, granted (in shares) | shares | 660 |
Unvested shares, weighted average grant date fair value, granted (in dollars per share) | $ / shares | $ 37.50 |
Unvested shares, vested (in shares) | shares | (322) |
Unvested shares, weighted average grant date fair value, vested (in dollars per share) | $ / shares | $ 57.28 |
Unvested shares, forfeited (in shares) | shares | |
Unvested shares, weighted average grant date fair value, forfeited (in dollars per share) | $ / shares | |
Unvested shares, end of period (in shares) | shares | 1,352 |
Unvested shares, weighted average grant date fair value, end of period (in dollars per share) | $ / shares | $ 46.06 |
Note 11 - Earnings Per Share (D
Note 11 - Earnings Per Share (Details Textual) - shares shares in Millions | 3 Months Ended | |
May 27, 2017 | May 28, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 7.2 | 4.7 |
Note 12 - Supplemental Cash F39
Note 12 - Supplemental Cash Flow Information (Details Textual) - USD ($) $ in Millions | 3 Months Ended | ||
May 27, 2017 | May 28, 2016 | May 26, 2016 | |
Income Taxes Paid | $ 8.7 | $ 75.2 | |
Capital Expenditures Incurred but Not yet Paid | 34.1 | 29.1 | |
Dividends Payable | 23.6 | $ 19.4 | |
Interest Paid | $ 2.2 | $ 2.2 |