Bed, Bath and Beyond 2010 Annual Report Download - page 23

BED BATH & BEYOND 2010 ANNUAL REPORT
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temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in
tax rates is recognized in earnings in the period that includes the enactment date.
The Company intends to reinvest the unremitted earnings of its Canadian subsidiary. Accordingly, no provision has been made
for U.S. or additional non-U.S. taxes with respect to these earnings. In the event of repatriation to the U.S., in most cases such
earnings would be subject to U.S. income taxes.
The Company recognizes the tax benefit from an uncertain tax position only if it is at least more likely than not that the tax
position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax
benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a
greater than fifty percent likelihood of being realized upon settlement with the taxing authorities.
Judgment is required in determining the provision for income taxes and related accruals, deferred tax assets and liabilities.
In the ordinary course of business, there are transactions and calculations where the ultimate tax outcome is uncertain.
Additionally, the Company’s tax returns are subject to audit by various tax authorities. Although the Company believes that its
estimates are reasonable, actual results could differ from these estimates.
V. Earnings per Share
The Company presents earnings per share on a basic and diluted basis. Basic earnings per share has been computed by
dividing net earnings by the weighted average number of shares outstanding. Diluted earnings per share has been computed
by dividing net earnings by the weighted average number of shares outstanding including the dilutive effect of stock-based
awards as calculated under the treasury stock method.
Stock-based awards of approximately 1.5 million, 9.8 million and 15.3 million shares were excluded from the computation of
diluted earnings per share as the effect would be anti-dilutive for fiscal 2010, 2009 and 2008, respectively.
W. Segments
The Company accounts for its operations as one operating segment.
2. PROPERTY AND EQUIPMENT
Property and equipment consist of the following:
February 26, February 27,
(in thousands) 2011 2010
Land and buildings $ 234,027 $ 229,954
Furniture, fixtures and equipment 892,682 830,734
Leasehold improvements 959,427 895,581
Computer equipment and software 452,235 401,359
2,538,371 2,357,628
Less: Accumulated depreciation and amortization (1,422,074) (1,238,336)
$ 1,116,297 $ 1,119,292
3. LINES OF CREDIT
At February 26, 2011, the Company maintained two uncommitted lines of credit of $100 million each, with expiration dates
of February 29, 2012 and September 2, 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 2010 and 2009, the Company did not have
any direct borrowings under the uncommitted lines of credit. As of February 26, 2011, there was approximately $7.9 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 26, 2011, the Company maintained unsecured
standby letters of credit of $64.5 million, primarily for certain insurance programs. As of February 27, 2010, there was
approximately $6.1 million of outstanding letters of credit and approximately $55.0 million of outstanding unsecured standby
letters of credit, primarily for certain insurance programs.