Bed, Bath and Beyond 2015 Annual Report Download - page 67

Download and view the complete annual report

Please find page 67 of the 2015 Bed, Bath and Beyond annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 104

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104

• Interest expense was $87.5 million, $50.5 million and $1.1 million in fiscal 2015, 2014 and 2013,
respectively.
• The effective tax rate was 36.6%, 36.3% and 36.6% for fiscal years 2015, 2014 and 2013, respectively.
The tax rate included discrete tax items resulting in net benefits of approximately $14.8 million, $20.0
million and $20.0 million, respectively, for fiscal 2015, 2014 and 2013.
• For the fiscal year ended February 27, 2016, net earnings per diluted share were $5.10 ($841.5 million),
an increase of approximately 1%, as compared with net earnings per diluted share of $5.07 ($957.5
million) for fiscal 2014, which was an increase of approximately 6% from net earnings per diluted
share of $4.79 ($1.022 billion) for fiscal 2013. For the fiscal years ended February 27, 2016 and
February 28, 2015, the increases in net earnings per diluted share are the result of the impact of the
Company’s repurchases of its common stock, partially offset by the decrease in net earnings as a result
of the items described above. Included in net earnings for the fiscal years ended February 27, 2016 and
February 28, 2015, respectively, are net benefits of approximately $0.06 per diluted share for certain
non-recurring items, including a favorable state audit settlement and approximately $0.04 per diluted
share for certain non-recurring items, including a credit card fee litigation settlement.
Capital expenditures for fiscal 2015, 2014 and 2013 were $328.4 million, $330.6 million and $320.8 million,
respectively. A significant portion of the current year capital expenditures were for technology related projects
with the remaining portion for new stores, existing store improvements, the new customer contact center in
Layton, Utah, the new distribution facility in Las Vegas, Nevada and other projects. The Company continues to
review and prioritize its capital needs and remains committed to making the required investments in its
infrastructure to help position the Company for continued growth and success.
Several additional key initiatives include: continuing to add new functionality and assortment to its selling
websites, mobile sites and applications; improving customer data integration and customer relations management
capabilities; continuing to enhance service offerings to its customers; continuing to strengthen and deepen its
information technology, analytics, marketing and e-commerce groups; and creating more flexible fulfillment
options that will improve the Company’s delivery capabilities and lower the Company’s shipping costs. These
and other investments are expected to, among other things, provide a seamless and compelling customer
experience across the Company’s physical and digital shopping environments.
During fiscal 2015, the Company opened a total of 29 new stores, closed 12 stores and opened a new customer
contact center in Layton, Utah and a new distribution facility in Las Vegas, Nevada. The Company plans to
continue to actively manage its real estate portfolio in order to permit store sizes, layouts, locations and offerings
to evolve over time to optimize market profitability and will renovate or reposition stores within markets when
appropriate. In fiscal 2016, the Company expects to open approximately 30 new stores company-wide, most of
which are planned for new markets, close approximately 15 stores and open a new distribution facility.
Additionally, during fiscal 2016, the Company expects to continue to invest in technology related projects,
including the deployment of new systems and equipment in its stores, enhancements to the Company’s digital,
web and mobile capabilities, ongoing investment in data analytics and the continued development and
deployment of a new point of sale system.
During fiscal 2015, 2014 and 2013, including the shares repurchased under an accelerated share repurchase
agreement in fiscal 2014, the Company repurchased 18.4 million, 33.0 million and 18.3 million shares,
respectively, of its common stock at a total cost of approximately $1.101 billion, $2.251 billion and $1.284
billion, respectively.
Subsequent to the end of fiscal 2015, on April 6, 2016, the Company’s Board of Directors authorized a quarterly
dividend program, and declared an initial quarterly dividend of $.125 per share to be paid on July 19, 2016 to
shareholders of record as of June 17, 2016. The Company expects to pay quarterly cash dividends on its common
55