Bed, Bath and Beyond 2013 Annual Report Download - page 30

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Auction Rate Securities
As of March 1, 2014 and March 2, 2013, the Company’s available-for-sale investment securities represented approximately
$51.0 million par value of auction rate securities, less temporary valuation adjustments of approximately $3.3 million and
$2.0 million, respectively. Since these valuation adjustments are deemed to be temporary, they are recorded in accumulated
other comprehensive loss, net of a related tax benefit, and did not affect the Company’s net earnings. These securities at par
are invested in preferred shares of closed end municipal bond funds, which are required, pursuant to the Investment Company
Act of 1940, to maintain minimum asset coverage ratios of 200%. All of these available-for-sale investments carried triple-A
credit ratings from one or more of the major credit rating agencies as of March 1, 2014 and March 2, 2013, and none of them
are mortgage-backed debt obligations. As of March 1, 2014 and March 2, 2013, the Company’s available-for-sale investments
have been in a continuous unrealized loss position for 12 months or more, however, the Company believes that the unrealized
losses are temporary and reflect the investments’ current lack of liquidity. Due to their lack of liquidity, the Company classified
approximately $47.7 million and $49.0 million of these investments as long term investment securities at March 1, 2014 and
March 2, 2013, respectively.
U.S. Treasury Securities
As of March 1, 2014 and March 2, 2013, the Company’s short term held-to-maturity securities included approximately
$489.3 million and approximately $449.9 million, respectively, of U.S. Treasury Bills with remaining maturities of less than one
year. These securities are stated at their amortized cost which approximates fair value, which is based on quoted prices in
active markets for identical instruments (i.e., Level 1 valuation).
Long Term Trading Investment Securities
The Company’s long term trading investment securities, which are provided as investment options to the participants of the
nonqualified deferred compensation plan, are stated at fair market value. The values of these trading investment securities
included in the table above are approximately $39.7 million and $28.3 million as of March 1, 2014 and March 2, 2013, respectively.
7. PROVISION FOR INCOME TAXES
The components of the provision for income taxes are as follows:
FISCAL YEAR ENDED
(in thousands)
March 1,
2014
March 2,
2013
February 25,
2012
Current:
Federal $514,818 $522,812 $475,280
State and local 64,581 55,889 74,438
579,399 578,701 549,718
Deferred:
Federal 11,221 15,710 28,695
State and local 537 1,860 1,538
11,758 17,570 30,233
$591,157 $596,271 $579,951
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
BED BATH & BEYOND 2013 ANNUAL REPORT
28