Bed, Bath and Beyond 2015 Annual Report Download - page 92

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Revolving Credit Agreement
On August 6, 2014, the Company entered into a $250 million five year senior unsecured revolving credit facility
agreement (“Revolver”) with various lenders. For fiscal 2015 and during the period from August 6, 2014 through
February 28, 2015, the Company did not have any borrowings under the Revolver.
Borrowings under the Revolver accrue interest at either (1) a fluctuating rate equal to the greater of the prime
rate, as defined in the Revolver, the Federal Funds Rate plus 0.50%, or one-month LIBOR plus 1.0% and, in each
case, plus an applicable margin based upon the Company’s leverage ratio which is calculated quarterly, (2) a
periodic fixed rate equal to LIBOR plus an applicable margin based upon the Company’s leverage ratio which is
calculated quarterly or (3) an agreed upon fixed rate. In addition, a commitment fee is assessed, which is
included in interest expense, net in the Consolidated Statement of Earnings. The Revolver contains customary
affirmative and negative covenants and also requires the Company to maintain a minimum leverage ratio. The
Company was in compliance with all covenants related to the Revolver as of February 27, 2016.
Deferred financing costs associated with the Notes and the Revolver of approximately $10.1 million were
capitalized and are included in other assets, net of amortization, in the accompanying Consolidated Balance
Sheets. These deferred financing costs are being amortized over the term of each of the Notes and the term of the
Revolver and such amortization is included in interest expense, net in the Consolidated Statement of Earnings.
Interest expense related to the Notes and the Revolver, including the commitment fee and the amortization of the
deferred financing costs, was approximately $73.0 million for fiscal 2015 and $44.9 million for the period from
July 17, 2014 through February 28, 2015.
Lines of Credit
At February 27, 2016, the Company maintained two uncommitted lines of credit of $100 million each, with
expiration dates of August 31, 2016 and February 26, 2017, respectively. These uncommitted lines of credit are
currently and are expected to be used for letters of credit in the ordinary course of business. During fiscal 2015
and 2014, the Company did not have any direct borrowings under the uncommitted lines of credit. As of
February 27, 2016, there was approximately $9.5 million of outstanding letters of credit. Although no assurances
can be provided, the Company intends to renew both uncommitted lines of credit before the respective expiration
dates. In addition, as of February 27, 2016, the Company maintained unsecured standby letters of credit of $51.2
million, primarily for certain insurance programs. As of February 28, 2015, there was approximately $11.1
million of outstanding letters of credit and approximately $71.7 million of outstanding unsecured standby letters
of credit, primarily for certain insurance programs.
6. PROVISION FOR INCOME TAXES
The components of the provision for income taxes are as follows:
FISCAL YEAR ENDED
(in thousands)
February 27,
2016
February 28,
2015
March 1,
2014
Current:
Federal $389,039 $504,154 $514,818
State and local 39,991 64,486 64,581
429,030 568,640 579,399
Deferred:
Federal 42,592 (18,245) 11,221
State and local 14,334 (4,034) 537
56,926 (22,279) 11,758
$485,956 $546,361 $591,157
80