Bed, Bath and Beyond 2009 Annual Report Download - page 10

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BED BATH & BEYOND 2009 ANNUAL REPORT
8
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(continued)
During fiscal 2009 and 2008, approximately $38.5 million and $107.6 million, respectively, of auction rate securities were
redeemed at par. Subsequent to the end of fiscal 2009 through April 22, 2010, the Company additionally redeemed approximate-
ly $14.1 million at par.
Other Fiscal 2009 Information
At February 27, 2010, the Company maintained two uncommitted lines of credit of $100 million each, with expiration dates of
September 3, 2010 and February 28, 2011, respectively. These uncommitted lines of credit are currently and are expected to be
used for letters of credit in the ordinary course of business. During fiscal 2009, the Company did not have any direct borrow-
ings under the uncommitted lines of credit. As of February 27, 2010, there was approximately $6.1 million of outstanding letters
of credit. Although no assurances can be provided, the Company intends to renew both uncommitted lines of credit before the
respective expiration dates. In addition, as of February 27, 2010, the Company maintained unsecured standby letters of credit of
$55.0 million, primarily for certain insurance programs.
Between December 2004 and September 2007, the Company’s Board of Directors authorized, through several share repurchase
programs, the repurchase of $2.950 billion of its shares of common stock. The Company was authorized to make repurchases from
time to time in the open market or through other parameters approved by the Board of Directors pursuant to existing rules and
regulations. The Company has approximately $824 million remaining of authorized share repurchases as of February 27, 2010. The
execution of the Company’s current share repurchase program will consider current business and market conditions.
The Company has contractual obligations consisting mainly of operating leases for stores, offices, warehouse facilities
and equipment, purchase obligations and other long-term liabilities which the Company is obligated to pay as of
February 27, 2010 as follows:
(in thousands) Total Less than 1 year 1 – 3 years 4 – 5 years After 5 years
Operating lease obligations (1) $ 3,056,263 $ 440,751 $ 793,402 $ 626,201 $ 1,195,909
Purchase obligations (2) 701,919 701,919 — — —
Other long-term liabilities (3) 349,672 — — — —
Total contractual obligations $ 4,107,854 $ 1,142,670 $ 793,402 $ 626,201 $ 1,195,909
(1) The amounts presented represent the future minimum lease payments under non-cancelable operating leases. In addition to minimum
rent, certain of the Company’s leases require the payment of additional costs for insurance, maintenance and other costs. These additional
amounts are not included in the table of contractual commitments as the timing and/or amounts of such payments are not known.
As of February 27, 2010, the Company has leased sites for 21 new stores planned for opening in fiscal 2010 or 2011, for which aggregate
minimum rental payments over the term of the leases are approximately $121.1 million and are included in the table above.
(2) Purchase obligations primarily consist of purchase orders for merchandise.
(3) Amounts recorded as deferred rent and other liabilities and income taxes payable in the Consolidated Balance Sheet as of February 27, 2010
have been reflected only in the Total column in the table above as the timing and/or amount of any cash payment is uncertain.
Deferred rent and other liabilities are primarily comprised of deferred rent, workers’ compensation and general liability reserves and
various other accruals.
SEASONALITY
The Company exhibits less seasonality than many other retail businesses, although sales levels are generally higher in the calendar
months of August, November and December, and generally lower in February.
INFLATION
The Company does not believe that its operating results have been materially affected by inflation during the past year. There
can be no assurance, however, that the Company’s operating results will not be affected by inflation in the future.