Bed, Bath and Beyond 2003 Annual Report Download - page 19

BED BATH& BEYOND ANNUAL REPORT 2003
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On March 5, 2002, the Company acquired Harmon Stores, Inc. (“Harmon”), a health and beauty care retailer,
which did not have a material effect on its consolidated results of operations or financial condition in fiscal 2003
or 2002.
3. PROPERTY AND EQUIPMENT
Property and equipment consist of the following:
February 28, March 1,
(in thousands) 2004 2003
Land and buildings $28,189)$6,875)
Furniture, fixtures and equipment 387,517)321,507)
Leasehold improvements 333,502)268,493)
Computer equipment and software 146,999)122,896)
896,207)719,771)
Less: Accumulated depreciation and amortization (380,043) (295,864)
$516,164)$423,907)
4. LINES OF CREDIT
At February 28, 2004, the Company maintained two uncommitted lines of credit of $75 million and $50 million,
which expire in September 2004 and November 2004, respectively. These uncommitted lines of credit are currently
used for letters of credit in the ordinary course of business. It is the Company’s intent to maintain an uncommitted
line of credit for these purposes. During fiscal 2003, the Company did not have any direct borrowings under the
uncommitted lines of credit. As of February 28, 2004, there was approximately $15.0 million in outstanding letters of
credit. In addition, at February 28, 2004, the Company maintained unsecured standby letters of credit of $40 million,
primarily for certain insurance programs, of which approximately $35.8 million was outstanding.
The Company maintained an uncommitted line of credit of $75 million at March 1, 2003. This uncommitted line of
credit was utilized for letters of credit in the ordinary course of business. During fiscal 2002, the Company did
not have any direct borrowings under the uncommitted line of credit. At March 1, 2003, there was approximately
$8.5 million of outstanding letters of credit and $16.2 million of standby letters of credit.
5. INVESTMENT SECURITIES
The Company’s investment securities consist of held-to-maturity U.S. Government Agency debt securities and munici-
pal debt securities, which are stated at amortized cost. The Company intends to hold the securities to maturity and
has classified the investments as such. The following table summarizes the Company’s investment securities:
February 28,March 1,
2004 2003
(in thousands) Amortized Cost Fair Value Amortized Cost Fair Value
Debt Securities:
Short term $41.6 $ 41.6 $100.9 $101.8
Long term 210.8 211.4 148.0 148.4
Total investment securities $252.4 $253.0 $248.9 $250.2
The securities with maturity dates within one year are classified as short term investment securities and those with
maturity dates beyond one year are classified as long term investment securities. The maturity dates of long term
investment securities extend to February 2006 based on the current contractual maturities. Actual maturities could
differ from contractual maturities because borrowers have the right to call certain obligations.
The excess of the fair value over the amortized cost is substantially the result of unrecognized gains in fiscal 2003 and
2002. There were no material unrealized losses in fiscal 2003 and 2002.