Bed, Bath and Beyond 2008 Annual Report Download - page 25

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BED BATH & BEYOND 2008 ANNUAL REPORT
23
The Company does not believe that the net effect of this adjustment was material, either quantitatively or qualitatively, in any of
the years covered by the review. In reaching that determination, the following quantitative measures were considered:
(in thousands) Net Adjustment, After
Net Adjustment, Net Income Tax as a % of Net
Fiscal Year After Tax As Reported Income As Reported
2005 $ 11,488 $ 572,847 2.01%
2004 12,493 504,964 2.47%
2003 13,607 399,470 3.41%
2002 8,600 302,179 2.85%
2001 7,391 219,599 3.37%
2000 5,272 171,922 3.07%
1999 1,340 131,229 1.02%
1998 923 97,346 0.95%
1997 405 73,142 0.55%
1996 163 55,015 0.30%
1995 56 39,459 0.14%
1994 22 30,013 0.07%
1993 221,887 0.01%
Total $61,762
Rent and Lease Accounting
The Company accounts for scheduled rent increases contained in its leases on a straight-line basis over the term of the lease. In fis-
cal 2004, due to clarification by the Office of the Chief Accountant of the SEC, the Company changed its method of accounting to
define the beginning of the lease term as the date the Company obtained possession of the leased premises. Prior to fiscal 2004,
the Company’s method of accounting defined the beginning of the lease term as the date the Company commenced lease pay-
ments. The Company recorded an adjustment to retained earnings and deferred rent and other liabilities to reflect these accounts
as if the Company had always defined the beginning of the lease termas the date the Company obtained possession of the leased
premises and to correspondingly increase deferred tax assets. The Company does not believe that the net effect of this adjustment
which includes fiscal years 1993 through 2003 was material.
Impact of Adjustments
The impact of each of the items noted above, net of tax, on fiscal 2006 beginning balances are presented below:
Review of Stock
Option Grant Rent &
Practices, Including Lease
(in thousands) Related Tax Items Accounting Total
Other Assets $ 11,273)$ 4,738)$ 16,011)
Income Taxes Payable (34,747) —)(34,747)
Deferred Rent and Other Liabilities —)(15,588) (15,588)
Additional Paid-in Capital (38,288) —)(38,288)
Retained Earnings 61,762)10,850)72,612)
Total $—)$—)$—)
4. PROPERTY AND EQUIPMENT
Property and equipment consist of the following:
February 28, March 1,
(in thousands) 2009 2008
Land and buildings $ 211,069)$ 195,536)
Furniture, fixtures and equipment 774,087)714,974)
Leasehold improvements 844,356)760,335)
Computer equipment and software 372,720)329,340)
2,202,232)2,000,185)
Less: Accumulated depreciation and amortization (1,053,797) (878,279)
$1,148,435)$1,121,906)