Bed, Bath and Beyond 2001 Annual Report Download - page 17

BED BATH & BEYOND ANNUAL REPORT 2001
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Independent Auditors’ Report
TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF BED BATH & BEYOND INC.:
We have audited the accompanying consolidated balance sheets of Bed Bath & Beyond Inc. and subsidiaries as of March 2, 2002 and
March 3, 2001, and the related consolidated statements of earnings, shareholders’ equity and cash flows for each of the fiscal years in
the three-year period ended March 2, 2002. These consolidated financial statements are the responsibility of the Company’s
management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position
of Bed Bath & Beyond Inc. and subsidiaries as of March 2, 2002 and March 3, 2001, and the results of their operations and their cash
flows for each of the fiscal years in the three-year period ended March 2, 2002 in conformity with accounting principles generally
accepted in the United States of America.
New York, New York
March 29, 2002
13. ACQUISITION
Subsequent to year end, on March 5, 2002, the Company
consummated the acquisition of Harmon Stores, Inc., a health
and beauty care retailer. The Company believes the acquisition
will not have a material effect on its consolidated results of
operations or financial condition in fiscal 2002.
Effective March 3, 2002, the Company adopted SFAS No.
141, “Business Combinations” and SFAS No. 142, “Goodwill and
Other Intangible Assets.” SFAS No. 141 requires the purchase
method of accounting for business combinations initiated or
completed after June 30, 2001. SFAS No. 142 discontinued the
amortization of goodwill and other intangible assets with
indefinite useful lives and requires periodic goodwill impairment
testing. Consequently, the Company will not amortize any
goodwill recognized as a result of the acquisition and will
perform impairment testing as required. The Company does not
believe that the adoption of SFAS No. 141 and SFAS No. 142 will
have a material impact on the Company’s consolidated financial
statements.