Attached files

file filename
EXCEL - IDEA: XBRL DOCUMENT - BED BATH & BEYOND INCFinancial_Report.xls
10-Q - 10-Q - BED BATH & BEYOND INCa12-18563_110q.htm
XML - IDEA: XBRL DOCUMENT - BED BATH & BEYOND INCR7.htm
XML - IDEA: XBRL DOCUMENT - BED BATH & BEYOND INCR8.htm
XML - IDEA: XBRL DOCUMENT - BED BATH & BEYOND INCR1.htm
XML - IDEA: XBRL DOCUMENT - BED BATH & BEYOND INCR6.htm
XML - IDEA: XBRL DOCUMENT - BED BATH & BEYOND INCR3.htm
XML - IDEA: XBRL DOCUMENT - BED BATH & BEYOND INCR9.htm
XML - IDEA: XBRL DOCUMENT - BED BATH & BEYOND INCR2.htm
XML - IDEA: XBRL DOCUMENT - BED BATH & BEYOND INCR25.htm
XML - IDEA: XBRL DOCUMENT - BED BATH & BEYOND INCR15.htm
XML - IDEA: XBRL DOCUMENT - BED BATH & BEYOND INCR17.htm
XML - IDEA: XBRL DOCUMENT - BED BATH & BEYOND INCR32.htm
XML - IDEA: XBRL DOCUMENT - BED BATH & BEYOND INCR33.htm
XML - IDEA: XBRL DOCUMENT - BED BATH & BEYOND INCR35.htm
XML - IDEA: XBRL DOCUMENT - BED BATH & BEYOND INCR11.htm
XML - IDEA: XBRL DOCUMENT - BED BATH & BEYOND INCR30.htm
XML - IDEA: XBRL DOCUMENT - BED BATH & BEYOND INCR19.htm
XML - IDEA: XBRL DOCUMENT - BED BATH & BEYOND INCR24.htm
XML - IDEA: XBRL DOCUMENT - BED BATH & BEYOND INCR31.htm
XML - IDEA: XBRL DOCUMENT - BED BATH & BEYOND INCR28.htm
XML - IDEA: XBRL DOCUMENT - BED BATH & BEYOND INCR29.htm
XML - IDEA: XBRL DOCUMENT - BED BATH & BEYOND INCR22.htm
XML - IDEA: XBRL DOCUMENT - BED BATH & BEYOND INCR23.htm
XML - IDEA: XBRL DOCUMENT - BED BATH & BEYOND INCR18.htm
EX-32 - EX-32 - BED BATH & BEYOND INCa12-18563_1ex32.htm
EX-31.1 - EX-31.1 - BED BATH & BEYOND INCa12-18563_1ex31d1.htm
XML - IDEA: XBRL DOCUMENT - BED BATH & BEYOND INCR5.htm
XML - IDEA: XBRL DOCUMENT - BED BATH & BEYOND INCR20.htm
XML - IDEA: XBRL DOCUMENT - BED BATH & BEYOND INCR14.htm
XML - IDEA: XBRL DOCUMENT - BED BATH & BEYOND INCR13.htm
XML - IDEA: XBRL DOCUMENT - BED BATH & BEYOND INCR27.htm
XML - IDEA: XBRL DOCUMENT - BED BATH & BEYOND INCR34.htm
XML - IDEA: XBRL DOCUMENT - BED BATH & BEYOND INCR16.htm
XML - IDEA: XBRL DOCUMENT - BED BATH & BEYOND INCR26.htm
XML - IDEA: XBRL DOCUMENT - BED BATH & BEYOND INCR21.htm
XML - IDEA: XBRL DOCUMENT - BED BATH & BEYOND INCR4.htm
XML - IDEA: XBRL DOCUMENT - BED BATH & BEYOND INCR10.htm
EX-31.2 - EX-31.2 - BED BATH & BEYOND INCa12-18563_1ex31d2.htm
v2.4.0.6
Stock-Based Compensation
6 Months Ended
Aug. 25, 2012
Stock-Based Compensation  
Stock-Based Compensation

6) Stock-Based Compensation

 

The Company measures all employee stock-based compensation awards using a fair value method and records such expense, net of estimated forfeitures, in its consolidated financial statements. Currently, the Company’s stock-based compensation relates to restricted stock awards and stock options. The Company’s restricted stock awards are considered nonvested share awards.

 

Stock-based compensation expense for the three and six months ended August 25, 2012 was approximately $11.0 million ($6.7 million after tax or $0.03 per diluted share) and approximately $23.8 million ($15.1 million after tax or $0.07 per diluted share), respectively. Stock-based compensation expense for the three and six months ended August 27, 2011 was approximately $10.6 million ($6.5 million after tax or $0.03 per diluted share) and approximately $24.3 million ($15.1 million after tax or $0.06 per diluted share), respectively. In addition, the amount of stock-based compensation cost capitalized for the six months ended August 25, 2012 and August 27, 2011 was approximately $0.7 million.

 

Incentive Compensation Plans

 

During fiscal 2012, the Company adopted the Bed Bath & Beyond 2012 Incentive Compensation Plan (the “2012 Plan”), which amended and restated the Bed Bath & Beyond 2004 Incentive Compensation Plan (the “2004 Plan”). The 2012 Plan generally incorporates the provisions of the 2004 Plan and also includes an increase in the aggregate number of common shares authorized for issuance by 14.3 million shares for a total of 43.2 million shares authorized for issuance and the ability to grant incentive stock options. Outstanding awards that were covered by the 2004 Plan will continue to be in effect under the 2012 Plan.

 

The 2012 Plan is a flexible compensation plan that enables the Company to offer incentive compensation through stock options (whether nonqualified stock options or incentive stock options), restricted stock awards, stock appreciation rights, performance awards and other stock based awards, including cash awards. Under the 2012 Plan, grants are determined by the Compensation Committee for those awards granted to executive officers and by an appropriate committee for all other awards granted. Awards of stock options and restricted stock generally vest in five equal annual installments beginning one to three years from the date of grant.

 

The Company generally issues new shares for stock option exercises and restricted stock awards. As of August 25, 2012, unrecognized compensation expense related to the unvested portion of the Company’s stock options and restricted stock awards was $28.6 million and $136.5 million, respectively, which is expected to be recognized over a weighted average period of 3.3 years and 4.1 years, respectively.

 

Stock Options

 

Stock option grants are issued at fair market value on the date of grant and generally become exercisable in either three or five equal annual installments beginning one year from the date of grant for options issued since May 10, 2010, and beginning one to three years from the date of grant for options issued prior to May 10, 2010, in each case, subject, in general to the recipient remaining in the Company’s employ or service on specified vesting dates. Option grants expire eight years after the date of grant for stock options issued since May 10, 2004, and expire ten years after the date of grant for stock options issued prior to May 10, 2004. All option grants are nonqualified.

 

The fair value of the stock options granted was estimated on the date of the grant using a Black-Scholes option-pricing model that uses the assumptions noted in the following table:

 

 

 

Six Months Ended

 

Black-Scholes Valuation Assumptions (1)

 

August 25,
2012

 

August 27,
2011

 

 

 

 

 

 

 

Weighted Average Expected Life (in years) (2)

 

6.5

 

6.2

 

Weighted Average Expected Volatility (3)

 

31.07

%

30.59

%

Weighted Average Risk Free Interest Rates (4)

 

1.14

%

2.34

%

Expected Dividend Yield

 

 

 

 

(1) Forfeitures are estimated based on historical experience.

(2) The expected life of stock options is estimated based on historical experience.

(3) Expected volatility is based on the average of historical and implied volatility. The historical volatility is determined by observing actual prices of the Company’s stock over a period commensurate with the expected life of the awards. The implied volatility represents the implied volatility of the Company’s call options, which are actively traded on multiple exchanges, had remaining maturities in excess of twelve months, had market prices close to the exercise prices of the employee stock options and were measured on the stock option grant date.

(4) Based on the U.S. Treasury constant maturity interest rate whose term is consistent with the expected life of the stock options.

 

Changes in the Company’s stock options for the six months ended August 25, 2012 were as follows:

 

(Shares in thousands)

 

Number of Stock Options

 

Weighted Average
Exercise Price

 

Options outstanding, beginning of period

 

5,998

 

$

38.96

 

Granted

 

503

 

68.57

 

Exercised

 

(781

)

37.34

 

Forfeited or expired

 

(2

)

35.27

 

Options outstanding, end of period

 

5,718

 

$

41.79

 

Options exercisable, end of period

 

3,867

 

$

38.17

 

 

The weighted average fair value for the stock options granted during the first six months of fiscal 2012 and 2011 was $22.95 and $19.65, respectively. The weighted average remaining contractual term and the aggregate intrinsic value for options outstanding as of August 25, 2012 was 3.5 years and $142.1 million, respectively. The weighted average remaining contractual term and the aggregate intrinsic value for options exercisable as of August 25, 2012 was 2.4 years and $109.2 million, respectively. The total intrinsic value for stock options exercised during the first six months of fiscal 2012 and 2011 was $24.3 million and $44.7 million, respectively.

 

Net cash proceeds from the exercise of stock options for the first six months of fiscal 2012 were $29.2 million and the net associated income tax benefit was $16.5 million.

 

Restricted Stock

 

Restricted stock awards are issued and measured at fair market value on the date of grant and generally become vested in five equal annual installments beginning one to three years from the date of grant, subject, in general, to the recipient remaining in the Company’s employ or service on specified vesting dates. Vesting of restricted stock awarded to certain of the Company’s executives is dependent on the Company’s achievement of a performance-based test for the fiscal year of grant, and assuming achievement of the performance-based test, time vesting, subject, in general, to the executive remaining in the Company’s employ on specified vesting dates. The Company recognizes compensation expense related to these awards based on the assumption that the performance-based test will be achieved. Vesting of restricted stock awarded to the Company’s other employees is based solely on time vesting.

 

Changes in the Company’s restricted stock for the six months ended August 25, 2012 were as follows:

 

(Shares in thousands)

 

Number of Restricted
Shares

 

Weighted Average
Grant-Date Fair
Value

 

Unvested restricted stock, beginning of period

 

4,421

 

$

39.54

 

Granted

 

745

 

68.63

 

Vested

 

(923

)

35.57

 

Forfeited

 

(89

)

42.58

 

Unvested restricted stock, end of period

 

4,154

 

$

45.57