Bed, Bath and Beyond 2012 Annual Report Download - page 24

appropriate asset and liability sections of the balance sheet. The Company has not historically recorded any material
impairment to its long-lived assets. In the future, if events or market conditions affect the estimated fair value to the extent
that a long-lived asset is impaired, the Company will adjust the carrying value of these long-lived assets in the period in which
the impairment occurs.
J. Goodwill and Other Indefinite Lived Intangible Assets
The Company reviews goodwill and other intangibles that have indefinite lives for impairment annually or when events or
changes in circumstances indicate the carrying value of these assets might exceed their current fair values. Impairment testing
is based upon the best information available, including estimates of fair value which incorporate assumptions marketplace
participants would use in making their estimates of fair value. The Company has not historically recorded an impairment to its
goodwill and other indefinite lived intangible assets. As of March 2, 2013, for goodwill related to the Institutional Sales
operating segment and certain other indefinite lived intangible assets, the Company assessed qualitative factors in order to
determine whether any events and circumstances existed which indicated that it was more likely than not that the fair value of
these indefinite lived intangible assets did not exceed its carrying value and concluded no such events or circumstances existed
which would require an impairment test being performed. Additionally, the Company completed its annual impairment
testing of goodwill for the North American Retail operating segment, which is the reporting unit, and other indefinite lived
intangible assets, not considered in the qualitative analysis, and determined that, as of March 2, 2013, no impairment existed
because the fair value of these assets substantially exceeded their carrying values. In the future, if events or market conditions
affect the estimated fair value to the extent that an asset is impaired, the Company will adjust the carrying value of these
assets in the period in which the impairment occurs.
Included within other assets in the accompanying consolidated balance sheets as of March 2, 2013 and February 25, 2012 are
$291.4 million and $30.9 million, respectively, for indefinite lived tradenames and trademarks.
K. Self Insurance
The Company utilizes a combination of insurance and self insurance for a number of risks including workers’ compensation,
general liability, automobile liability and employee related health care benefits (a portion of which is paid by its employees).
Liabilities associated with the risks that the Company retains are estimated by considering historical claims experience,
demographic factors, severity factors and other actuarial assumptions. Although the Company’s claims experience has not
displayed substantial volatility in the past, actual experience could materially vary from its historical experience in the future.
Factors that affect these estimates include but are not limited to: inflation, the number and severity of claims and regulatory
changes. In the future, if the Company concludes an adjustment to self insurance accruals is required, the liability will be
adjusted accordingly.
L. Deferred Rent
The Company accounts for scheduled rent increases contained in its leases on a straight-line basis over the term of the lease
beginning as of the date the Company obtained possession of the leased premises. Deferred rent amounted to $80.2 million
and $77.9 million as of March 2, 2013 and February 25, 2012, respectively.
Cash or lease incentives (‘‘tenant allowances’’) received pursuant to certain store leases are recognized on a straight-line basis
as a reduction to rent over the lease term. The unamortized portion of tenant allowances is included in deferred rent and
other liabilities. The unamortized portion of tenant allowances amounted to $126.1 million and $120.1 million as of March 2,
2013 and February 25, 2012, respectively.
M. Treasury Stock
Between December 2004 and December 2012, the Company’s Board of Directors authorized, through share repurchase
programs, the repurchase of $7.450 billion of the Company’s common stock.
During fiscal 2012, the Company repurchased approximately 16.1 million shares of its common stock at a total cost of
approximately $1.001 billion. During fiscal 2011, the Company repurchased approximately 21.5 million shares of its common
stock at a total cost of approximately $1.218 billion. During fiscal 2010, the Company repurchased approximately 15.9 million
shares of its common stock at a total cost of approximately $687.6 million. The Company has approximately $2.4 billion
remaining of authorized share repurchases as of March 2, 2013.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
BED BATH & BEYOND 2012 ANNUAL REPORT
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