Bed, Bath and Beyond 2003 Annual Report Download - page 13

BED BATH& BEYOND ANNUAL REPORT 2003
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1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RELATED MATTERS
A. Nature of Operations
and selling predominantly better quality domestics merchandise and home furnishings. As the Company operates in
the retail industry, its results of operations are affected by general economic conditions and consumer spending
habits.
B. Principles of Consolidation
The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries,
all of which are wholly owned.
All significant intercompany balances and transactions have been eliminated in consolidation.
C. 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 2003, 2002 and 2001 represented 52 weeks and ended on February 28, 2004, March 1, 2003, and
March 2, 2002, respectively.
D. Segments
The Company accounts for its operations as one operating segment.
E. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United
States of America 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 rele-
vant 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
the provision for sales returns, inventory valuation, impairment of long-lived assets, goodwill and other indefinitely
lived intangible assets, vendor allowances and accruals for self insurance, litigation and store opening, expansion,
relocation and closing costs. Actual results could differ from these estimates.
F. Recent Accounting Pronouncements
During fiscal 2003, the Company adopted the following pronouncements:
• Statement of Financial Accounting Standards (“SFAS”) No. 143, “Accounting for Asset Retirement Obligations.” The
standard requires entities to record the fair value of a liability for an asset retirement obligation in the period in
which the obligation is incurred. The adoption of SFAS No. 143 did not have a material impact on the Company’s
consolidated financial statements.
• SFAS No. 145, ”Rescission of FASB Statements No. 4, 44, and 64, Amendment of FASB Statement No. 13, and
Technical Corrections.” Among other items, this Standard updates and clarifies existing accounting pronouncements
related to reporting gains and losses from the extinguishment of debt and certain lease modifications that have
economic effects similar to sale-leaseback transactions. The adoption of SFAS No. 145 did not have a material
impact on the Company’s consolidated financial statements.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Bed Bath & Beyond Inc. and Subsidiaries
Bed Bath & Beyond Inc. ( the Company”) operates specialty retail stores nationwide, primarily of a ”big box” format
”