Note 1 - Basis of Presentation

6 Months Ended

Aug. 26, 2017

Notes to Financial Statements

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

1

) Basis of Presentation

The accompanying consolidated financial statements have been prepared without audit. In the opinion of management, the accompanying consolidated financial statements contain all adjustments (consisting of only normal recurring accruals and elimination of intercompany balances and transactions) necessary to present fairly the financial position of Bed Bath & Beyond Inc. and subsidiaries (the "Company") as of

August 26, 2017

and

February 25, 2017

and the results of its operations and comprehensive income for the

three

and

six

months ended

August 26, 2017

and

August 27, 2016,

respectively, and its cash flows for the

six

months ended

August 26, 2017

and

August 27, 2016,

respectively.

The accompanying unaudited consolidated financial statements are presented in accordance with the requirements for Form

10

-Q and consequently do

not

include all the disclosures normally required by U.S. generally accepted accounting principles (“GAAP”). Reference should be made to Bed Bath & Beyond Inc.'s Annual Report on Form

10

-K for the fiscal year ended

February 25, 2017

for additional disclosures, including a summary of the Company's significant accounting policies, and to subsequently filed Forms

8

-K.

Certain reclassifications have been made to the fiscal

2016

consolidated balance sheet and statement of cash flows to conform to the fiscal

2017

consolidated balance sheet and statement of cash flows presentation.

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 GAAP and therefore is

not

a reportable segment. Net sales outside of the U.S. for the Company were

not

material for the

three

and

six

months ended

August 26, 2017

and

August 27, 2016.

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

39.1%

and

60.9%

of net sales, respectively, for the

three

months ended

August 26, 2017

and approximately

38.9%

and

61.1%

of net sales, respectively, for the

three

months ended

August 27, 2016.

Sales of domestics merchandise and home furnishings accounted for approximately

37.7%

and

62.3%

of net sales, respectively, for both the

six

months ended

August 26, 2017

and

August 27, 2016.

As the Company operates in the retail industry, its results of operations are affected by general economic conditions and consumer spending habits.