Bed, Bath and Beyond 2015 Annual Report Download - page 91

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U.S. Treasury Securities
As of February 27, 2016, and February 28, 2015, the Company’s short term held-to-maturity securities included
approximately $86.2 million and approximately $110.0 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 $51.5 million and $49.2 million as of
February 27, 2016 and February 28, 2015, respectively.
4. PROPERTY AND EQUIPMENT
Property and equipment consist of the following:
(in thousands)
February 27,
2016
February 28,
2015
Land and buildings $ 567,602 $ 557,538
Furniture, fixtures and equipment 1,240,181 1,179,073
Leasehold improvements 1,341,596 1,258,916
Computer equipment and software 1,106,812 940,754
4,256,191 3,936,281
Less: Accumulated depreciation (2,531,148) (2,259,581)
Property and equipment, net $ 1,725,043 $ 1,676,700
5. LONG TERM DEBT
Senior Unsecured Notes
On July 17, 2014, the Company issued $300 million aggregate principal amount of 3.749% senior unsecured
notes due August 1, 2024 (the “2024 Notes”), $300 million aggregate principal amount of 4.915% senior
unsecured notes due August 1, 2034 (the “2034 Notes”) and $900 million aggregate principal amount of 5.165%
senior unsecured notes due August 1, 2044 (the “2044 Notes” and, together with the 2024 Notes and the 2034
Notes, the “Notes”). The aggregate net proceeds from the Notes were approximately $1.5 billion, which was used
for share repurchases of the Company’s common stock and for general corporate purposes. Interest on the Notes
is payable semi-annually on February 1 and August 1 of each year.
The Notes were issued under an indenture (the “Base Indenture”), as supplemented by a first supplemental
indenture (together, with the Base Indenture, the “Indenture”), which contains various restrictive covenants,
which are subject to important limitations and exceptions that are described in the Indenture. The Company was
in compliance with all covenants related to the Notes as of February 27, 2016.
The Notes are unsecured, senior obligations and rank equal in right of payment to any of the Company’s existing
and future senior unsecured indebtedness. The Company may redeem the Notes at any time, in whole or in part,
at the redemption prices described in the Indenture plus accrued and unpaid interest to the redemption date. If a
change in control triggering event, as defined by the Indenture governing the Notes, occurs unless the Company
has exercised its right to redeem the Notes, the Company will be required to make an offer to the holders of the
Notes to purchase the Notes at 101% of their principal amount, plus accrued and unpaid interest.
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