Bbby Analysis

Topics: Depreciation, Finance, Generally Accepted Accounting Principles Pages: 2 (371 words) Published: February 11, 2012
Kelly Niosi
ACC202 – Final Project

I chose Bed Bath & Beyond, Inc. because it is a retail store I frequent quite often. This project provided me the opportunity to research their finances and be able to see and understand as a customer, where my money is going when I shop there or any of their other affiliates, Christmas Tree Shops and Buy Buy Baby. Bed Bath & Beyond, Inc. is a publicly traded company on the stock market under the ticker symbol BBBY.

Under the PP&E section of the balance sheet, as of February 26, 2011 which is their fiscal year-end date, they divulged the following information. (in thousands) Land and buildings| $234,027|

Furniture, fixtures and equipment| $892,682|
Leasehold improvements| $959,427|
Computer equipment and software| $452,235|
Gross Total:| $2,538,371| Less: Accumulated depreciation and amortization| ($1,422,074)| Net Total:| $1,116,297|

The depreciation method primarily used is the straight-line method over the estimated useful lives of the assets. Useful life of buildings is forty years; furniture, fixtures and equipment range from five to twenty years; computer equipment and software between three to seven years. If they were to use the double-declining balance method, the depreciable amount would be higher in the earlier years, therefore, lowering the taxable amount at that time.

Bed Bath and Beyond, Inc. shows no long-term debt on the balance sheet. The current short-term debt is stated at $1,322,440. Selling, general and administrative expenses represents 26.7% of net sales. The weighted average remaining contractual term and aggregate intrinsic value for stock options outstanding as of February 26, 2011 was 2.9 years and 109.4 million dollars. The company has no outstanding bank borrowings and has been able to finance its operations, including their...
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