Bed, Bath and Beyond 2011 Annual Report Download - page 24

BED BATH & BEYOND 2011 ANNUAL REPORT
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
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 0.9 million, 1.5 million and 9.8 million shares were excluded from the computation of
diluted earnings per share as the effect would be anti-dilutive for fiscal 2011, 2010 and 2009, 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 25, February 26,
(in thousands) 2012 2011
Land and buildings $ 316,953 $ 234,027
Furniture, fixtures and equipment 960,565 892,682
Leasehold improvements 1,024,954 959,427
Computer equipment and software 504,641 452,235
2,807,113 2,538,371
Less: Accumulated depreciation and amortization (1,608,858) (1,422,074)
$ 1,198,255 $ 1,116,297
3. LINES OF CREDIT
At February 25, 2012, the Company maintained two uncommitted lines of credit of $100 million each, with expiration dates of
February 29, 2012 and September 2, 2012, respectively. Subsequent to the end of fiscal 2011, the expiration date on the line of
credit that would have otherwise expired on February 29, 2012 was extended to February 28, 2013. 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 2011
and 2010, the Company did not have any direct borrowings under the uncommitted lines of credit. As of February 25, 2012,
there was approximately $8.5 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 25, 2012,
the Company maintained unsecured standby letters of credit of $61.3 million, primarily for certain insurance programs. As of
February 26, 2011, there was approximately $7.9 million of outstanding letters of credit and approximately $64.5 million of
outstanding unsecured standby letters of credit, primarily for certain insurance programs.