Bed, Bath and Beyond 2009 Annual Report Download - page 24

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BED BATH & BEYOND 2009 ANNUAL REPORT
22
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
In April 2009, the FASB issued updated accounting guidance related to financial instruments which requires the annual disclosures
about the fair value of financial instruments to be presented in interim financial statements. During the second quarter of
fiscal 2009, the Company adopted this guidance which did not have a material impact on its consolidated financial statements
(See “Fair Value of Financial Instruments,” Note 1N).
In April 2009, the FASB issued updated accounting guidance related to investments in debt and equity securities which modifies
the recognition requirements for other-than-temporary impairments of debt securities and enhances existing disclosures with
respect to other-than-temporary impairments of debt and equity securities, however, it does not modify existing recognition and
measurement guidance related to other-than-temporary impairments of equity securities. During the second quarter of fiscal
2009, the Company adopted this guidance which did not have a material impact on the Company’s consolidated financial state-
ments (See “Investment Securities,” Note 6).
In April 2009, the FASB issued updated accounting guidance related to fair value measurements and disclosures which provides
guidance for determining fair value when there is no active market or where the price inputs being used represent distressed
sales, and also amends the interim and annual disclosure requirements. During the second quarter of fiscal 2009, the Company
adopted this guidance which did not have a material impact on the Company’s consolidated financial statements (See “Fair Value
Measurements,” Note 5).
In January 2010, the FASB issued updated accounting guidance related to fair value measurements and disclosures which amends
and clarifies existing disclosure requirements. This updated accounting guidance requires new disclosures related to amounts
transferred into and out of Level 1 and 2 fair value measurements as well as separate disclosures of purchases, sales, issuances,
and settlements related to amounts reported as Level 3 fair value measurements. This guidance also clarifies existing fair value
disclosure requirements related to the level of disaggregation and the valuation techniques and inputs used to measure fair value
for both recurring and nonrecurring fair value measurements. This guidance is effective for interim and annual periods beginning
after December 15, 2009, except for the separate disclosures of purchases, sales, issuances, and settlements related to amounts
reported as Level 3 fair value measurements, which is effective for fiscal years beginning after December 15, 2010. The Company
does not believe the adoption of this guidance will have a material impact on its consolidated financial statements.
2. ACQUISITION
On March 22, 2007, the Company completed and announced the acquisition of buybuy BABY, a retailer of infant and toddler
merchandise, for approximately $67 million (net of cash acquired) and repayment of debt of approximately $19 million. Based in
Garden City, New York, buybuy BABY operated a total of 8 stores at the time of acquisition, in Maryland, New Jersey, New York
and Virginia. The stores range in size from approximately 28,000 to 60,000 square feet and offer a broad assortment of premier
infant and toddler merchandise in categories including furniture, car seats, strollers, feeding, bedding, bath, health and safety
essentials, toys, learning and development products, clothing and a unique selection of seasonal and holiday products.
(See “Transactions and Balances with Related Parties,” Note 8).
The results of buybuy BABY’s operations, which are not material, have been included in the consolidated financial statements
since the date of acquisition.
3. PROPERTY AND EQUIPMENT
Property and equipment consist of the following:
February 27, February 28,
(in thousands) 2010 2009
Land and buildings $ 229,954 $ 211,069
Furniture, fixtures and equipment 830,734 774,087
Leasehold improvements 895,581 844,356
Computer equipment and software 401,359 372,720
2,357,628 2,202,232
Less: Accumulated depreciation and amortization (1,238,336) (1,053,797)
$ 1,119,292 $ 1,148,435