Bed, Bath and Beyond 2015 Annual Report Download - page 83

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Notes to Consolidated Financial Statements
Bed Bath & Beyond Inc. and Subsidiaries
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RELATED MATTERS
A. Nature of Operations
Bed Bath & Beyond Inc. and subsidiaries (the “Company”) is a retailer which operates under the names Bed
Bath & Beyond (“BBB”), Christmas Tree Shops, Christmas Tree Shops andThat! or andThat! (collectively,
“CTS”), Harmon or Harmon Face Values (collectively, “Harmon”), buybuy BABY and World Market, Cost Plus
World Market or Cost Plus (collectively, “Cost Plus World Market”). Customers can purchase products from the
Company either in-store, online, with a mobile device or through a contact center. The Company generally has
the ability to have customer purchases picked up in-store or shipped direct to the customer from the Company’s
distribution facilities, stores or vendors. In the second quarter of fiscal 2015, the Company acquired Of a Kind,
an e-commerce website that features specially commissioned, limited edition items from emerging fashion and
home designers. The Company also operates Linen Holdings, a provider of a variety of textile products,
amenities and other goods to institutional customers in the hospitality, cruise line, healthcare and other industries.
Additionally, the Company is a partner in a joint venture which operates seven retail stores in Mexico under the
name Bed Bath & Beyond.
The Company accounts for its operations as two operating segments: North American Retail and Institutional
Sales. The Institutional Sales operating segment, which is comprised of Linen Holdings, does not meet the
quantitative thresholds under U.S. generally accepted accounting principles and therefore is not a reportable
segment. Net sales outside of the U.S. were not material for fiscal 2015, 2014 and 2013.
The Company sells a wide assortment of domestics merchandise and home furnishings. Domestics merchandise
includes categories such as bed linens and related items, bath items and kitchen textiles. Home furnishings
include categories such as kitchen and tabletop items, fine tabletop, basic housewares, general home furnishings,
consumables and certain juvenile products. Sales of domestics merchandise and home furnishings accounted for
approximately 35.9% and 64.1% of net sales, respectively, for fiscal 2015 and fiscal 2014, and approximately
36.1% and 63.9% of net sales, respectively, for fiscal 2013. As the Company operates in the retail industry, its
results of operations are affected by general economic conditions and consumer spending habits.
Since the date of acquisition, Of a Kind’s results of operations, which are not material, have been included in the
Company’s results of operations for the fiscal year ended February 27, 2016.
B. Fiscal Year
The Company’s fiscal year is comprised of the 52 or 53 week period ending on the Saturday nearest February 28.
Accordingly, fiscal 2015, fiscal 2014 and fiscal 2013 represented 52 weeks and ended on February 27,
2016, February 28, 2015 and March 1, 2014, respectively.
C. Principles of Consolidation
The accompanying consolidated financial statements include the accounts of the Company and its wholly owned
subsidiaries. The Company accounts for its investment in the joint venture under the equity method.
Certain reclassifications have been made to the fiscal 2014 and 2013 consolidated statements of cash flows to
conform to the fiscal 2015 consolidated statement of cash flows presentation.
All significant intercompany balances and transactions have been eliminated in consolidation.
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