Bed, Bath and Beyond 2014 Annual Report Download - page 14

the shares repurchased under the ASR. The Company has approximately $884 million remaining of authorized share
repurchases as of February 28, 2015. The Company’s share repurchase program could change, and would be influenced by
several factors, including business and market conditions.
The Company has contractual obligations consisting mainly of principal and interest related to the Notes, operating leases for
stores, offices, distribution facilities and equipment, purchase obligations, long-term sale/leaseback and capital lease
obligations and other long-term liabilities which the Company is obligated to pay as of February 28, 2015 as follows:
(in thousands) Total Less than 1 year 1 − 3 years 4 − 5 years After 5 years
Senior unsecured notes
(1)
$1,500,000 $ — $ — $ — $1,500,000
Interest on senior unsecured notes
(1)
1,765,682 72,477 144,954 144,954 1,403,297
Operating lease obligations
(2)
3,260,167 573,802 996,624 733,564 956,177
Purchase obligations
(3)
1,209,051 1,209,051 — — —
Long-term sale/leaseback and capital lease
obligations
(4)
332,559 9,863 19,921 20,164 282,611
Other long-term liabilities
(5)
466,174 — — — —
Total Contractual Obligations $8,533,633 $1,865,193 $1,161,499 $898,682 $4,142,085
(1) On July 17, 2014, the Company issued $300 million aggregate principal amount of 3.749% senior unsecured notes due August 1, 2024,
$300 million aggregate principal amount of 4.915% senior unsecured notes due August 1, 2034 and $900 million aggregate principal
amount of 5.165% senior unsecured notes due August 1, 2044.
(2) The amounts presented represent the future minimum lease payments under non-cancelable operating leases. In addition to minimum
rent, certain of the Company’s leases require the payment of additional costs for insurance, maintenance and other costs. These
additional amounts are not included in the table of contractual commitments as the timing and/or amounts of such payments are not
known. As of February 28, 2015, the Company has leased sites for 43 new or relocated locations planned for opening in fiscal 2015 or
2016, for which aggregate minimum rental payments over the term of the leases are approximately $199.5 million and are included in
the table above.
(3) Purchase obligations primarily consist of purchase orders for merchandise.
(4) Long-term sale/leaseback and capital lease obligations represent future minimum lease payments under the sale/leaseback agreements
and capital lease agreements.
(5) Other long-term liabilities are primarily comprised of income taxes payable, deferred rent, workers’ compensation and general liability
reserves and various other accruals and are recorded as Deferred Rent and Other Liabilities and Income Taxes Payable in the Consolidated
Balance Sheet as of February 28, 2015. The amounts associated with these other long-term liabilities have been reflected only in the Total
Column in the table above as the timing and/or amount of any cash payment is uncertain.
SEASONALITY
The Company’s sales exhibit seasonality with sales levels generally higher in the calendar months of August, November and
December, and generally lower in February.
INFLATION
The Company does not believe that its operating results have been materially affected by inflation during the past year. There
can be no assurance, however, that the Company’s operating results will not be affected by inflation in the future.
CRITICAL ACCOUNTING POLICIES
The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires
the Company to establish accounting policies and to make estimates and judgments that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the
reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on historical
experience and on other assumptions that it believes to be relevant under the circumstances, the results of which form the
basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources.
In particular, judgment is used in areas such as inventory valuation, impairment of long-lived assets, goodwill and other
indefinite lived intangible assets, accruals for self insurance, litigation, store opening, expansion, relocation and closing costs,
stock-based compensation and income and certain other taxes. Actual results could differ from these estimates.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(continued)
BED BATH & BEYOND 2014 ANNUAL REPORT
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