Bed, Bath and Beyond 2000 Annual Report Download - page 18

Notes to Consolidated Financial Statements
(Continued)
BED BATH & BEYOND ANNUAL REPORT 2000
16
2. PROPERTY AND EQUIPMENT
Property and equipment consist of the following:
March 3, February 26,
(in thousands) 2001 2000
Furniture, fixtures and equipment $ 219,243)$ 162,061)
Leasehold improvements 168,370)114,549)
Computer equipment 73,535)44,143)
461,148)320,753)
Less: Accumulated depreciation
and amortization (158,492) (111,842)
$ 302,656)$ 208,911)
3. CREDIT AGREEMENT
Under the Company’s revolving Credit Agreement (the “Credit
Agreement”) concluded in November 1994, and as subsequently
amended, the Company may borrow up to $25.0 million for
loans and letters of credit. The Credit Agreement matures in
October 2001. Interest on all borrowings is determined based
upon several alternative rates as stipulated in the Credit
Agreement.
The Credit Agreement contains certain covenants which, among
other things, place limitations on payment of dividends, capital
expenditures and certain expenses. Additionally, there are
restrictions on additional borrowings and a requirement that the
Company maintain certain financial ratios. The Company does
not believe that any of these covenants have materially affected
its business. Under the terms of these covenants, approximately
$86.0 million was available for the payment of dividends at
March 3, 2001.
The Company did not borrow under the Credit Agreement
during fiscal 2000 or fiscal 1999. As of March 3, 2001 and
February 26, 2000, there were approximately $2.9 million and
$5.3 million in outstanding letters of credit, respectively.
4. PROVISION FOR INCOME TAXES
The components of the provision for income taxes are as
follows:
FISCAL YEARS
(in thousands) 2000 1999 1998
Current:
Federal $ 102,178)$ 82,652)$ 61,098)
State and local 11,678)9,446)8,291)
113,856)92,098)69,389)
Deferred:
Federal (3,535) (7,356) (4,549)
State and local (404) (841) (617)
(3,939) (8,197) (5,166)
$ 109,917)$ 83,901)$ 64,223)
Included in prepaid expenses and other current assets and in
deferred rent and other liabilities are deferred income taxes of
$35.4 million and $2.2 million, respectively, which reflect 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:
March 3, February 26,
(in thousands) 2001 2000
Deferred Tax Assets:
Inventories $ 13,729)$ 11,332)
Deferred rent 9,103)7,789)
Other 21,684)14,678)
Deferred Tax Liability:
Depreciation (11,279) (4,501)
$ 33,237)$ 29,298)
For fiscal 2000 and fiscal 1999, the effective tax rate is comprised
of the Federal statutory income tax rate of 35.00% and the State
income tax rate, net of Federal benefit, of 4.00%. For fiscal 1998,
the effective tax rate is comprised of the Federal statutory
income tax rate of 35.00% and the State income tax rate, net of
Federal benefit, of 4.75%.