Bed Bath & Beyond Inc. (NASDAQ:BBBY)

The data reveals notable fluctuations in the values of property, plant, and equipment over the analyzed periods, highlighting significant changes in asset base composition and net book values.

Land and Buildings

The value decreased sharply from approximately $579.5 million in early 2017 to around $21.6 million by early 2022. The most significant drop occurred between 2019 and 2020, indicating disposals or reclassifications during that period.

Furniture, Fixtures, and Equipment

Initially, there was a moderate upward trend from about $1.33 billion in 2017 to nearly $1.47 billion in 2019. However, a substantial decline occurred in 2020, dropping to approximately $718 million, followed by further reductions in 2021, and a slight recovery in 2022 to around $594 million.

Leasehold Improvements

The figures showed growth from roughly $1.45 billion in 2017 to a peak near $1.62 billion in 2019. Afterward, a marked decline took place, reaching about $746 million by 2022. The sharpest decrease happened between 2019 and 2021, indicating significant impairment or asset write-downs.

Computer Equipment and Software

This category displayed a general upward trend, increasing from around $1.29 billion in 2017 to about $1.66 billion in 2019, then a modest decline in 2020 and 2021, followed by a recovery to approximately $1.49 billion in 2022.

Property and Equipment, Gross

Gross property and equipment increased steadily from about $4.66 billion in 2017 to a peak of $5.34 billion in 2019, before declining sharply to approximately $2.86 billion by 2022. The decrease post-2019 reflects the overall drop in underlying asset categories.

Accumulated Depreciation

Accumulated depreciation steadily increased in absolute terms from negative $2.82 billion in 2017 to negative $3.49 billion in 2019, before decreasing to negative $1.83 billion by 2022. The reduction after 2019 correlates with lowered asset values and possibly accelerated depreciation or disposals.

Property and Equipment, Net

The net book value rose slightly from approximately $1.84 billion in 2017 to $1.91 billion in 2018 but then experienced a downward trend, falling to about $1.85 billion in 2019 and further decreasing sharply to roughly $1.03 billion by 2022. This indicates a significant reduction in net tangible assets over the period.

Overall, the data shows a pattern of asset reduction, particularly in land and buildings, furniture, fixtures, equipment, and leasehold improvements, especially after 2019. Conversely, computer equipment and software assets exhibited relative stability and moderate growth. The declines in gross and net property and equipment highlight a contraction in fixed assets, accompanied by corresponding movements in accumulated depreciation, suggesting asset disposals, impairments, or a shift in investment strategies.

Average Age Ratio

The average age ratio exhibited a fluctuating trend over the six-year period. Starting at 60.55% in early 2017, it rose to a peak of 65.3% by 2019 before declining notably to 58.41% in 2020. Subsequently, it increased again to approximately 64.74% in 2021 and slightly decreased to 64.04% in 2022. These variations suggest alternating cycles of asset aging and renewal activities.

Estimated Total Useful Life

The estimated useful life data is available only for the last three years, indicating a useful life of 10 years in 2020, a reduction to 8 years in 2021, and a return to 10 years in 2022. This variation could indicate adjustments in asset lifespan assumptions or changes in the asset mix.

Estimated Age (Time Elapsed Since Purchase)

The estimated age of property, plant, and equipment remains consistent with minor fluctuations: 6 years in 2020, decreasing to 5 years in 2021, and back to 6 years in 2022. The slight reduction observed in 2021 may imply acquisitions or disposals impacting the average asset age.

Estimated Remaining Life

The estimated remaining useful life followed an inverse pattern relative to the asset age. It was 4 years in 2020, decreased to 3 years in 2021, and increased again to 4 years in 2022. This aligns with the adjustments observed in the estimated total useful life and asset age, reflecting dynamic asset management and lifecycle considerations.

Accumulated Depreciation

The accumulated depreciation exhibited an increasing trend from 2017 through 2019, rising from approximately 2.82 billion US dollars to about 3.49 billion US dollars. However, there was a notable decline in both 2020 and 2021, dropping to approximately 2.01 billion and 1.69 billion US dollars respectively. In 2022, accumulated depreciation showed a modest increase to roughly 1.83 billion US dollars, indicating a partial recovery after the earlier decline.

Property and Equipment, Gross

The gross value of property and equipment initially grew steadily from around 4.66 billion US dollars in 2017 to approximately 5.34 billion US dollars in 2019. Following this peak, the gross value sharply decreased in 2020 to approximately 3.44 billion US dollars and continued to decline through 2021, reaching about 2.60 billion US dollars. In 2022, there was a slight rebound with the value increasing to around 2.86 billion US dollars, suggesting some reinvestment or asset acquisitions.

Average Age Ratio

The average age ratio of property and equipment experienced fluctuations over the observed period. It increased from 60.55% in 2017 to a peak of 65.3% in 2019, indicating an aging asset base during this timeframe. In 2020, the ratio decreased considerably to 58.41%, before rising again to 64.74% in 2021 and slightly decreasing to 64.04% in 2022. This pattern suggests varying asset replacement or disposal activities impacting the average age of the assets.

Overall Trends and Insights

The data demonstrates an initial phase of asset growth and increasing accumulated depreciation up to 2019, followed by significant reductions in both gross property and equipment value and accumulated depreciation in 2020 and 2021. These shifts coincide with changes in the average age ratio, reflecting alterations in the asset base and its age profile. The partial recovery in 2022 across these metrics may point to renewed investment in property and equipment. The fluctuations suggest strategic asset management responses, possibly influenced by external factors affecting capital expenditure and depreciation practices.

The analysis of the annual property, plant, and equipment data reveals several notable trends and fluctuations over the examined periods.

Property and Equipment, Gross

The gross value of property and equipment showed a general increase from 2017 to 2019, rising from approximately 4.66 billion to over 5.34 billion US dollars. However, a significant decline occurred starting in the fiscal year 2020, dropping sharply to about 3.44 billion US dollars, followed by further reductions in 2021 and 2022, reaching approximately 2.86 billion US dollars in the latter year. This pattern indicates a substantial reduction in the company’s gross investment in property and equipment assets during the latter years of the reported period.

Depreciation Expense

Depreciation expense data is available only for the fiscal years 2020 through 2022. The depreciation expense remained relatively stable between 2020 and 2021, with amounts just under 340 million US dollars, before declining to about 292 million US dollars in 2022. The decrease in depreciation expense in the latest year may reflect the reduced gross property and equipment base or adjustments to depreciation policies.

Estimated Total Useful Life

The estimated useful life of the company's property and equipment records a slight variation during the available years. In 2020, the useful life was estimated at 10 years, dropped to 8 years in 2021, and returned to 10 years in 2022. This fluctuation could suggest changes in asset composition, depreciation methods, or asset management strategies.

In summary, the data indicates a clear contraction in the company's property and equipment assets starting in 2020, accompanied by relatively stable but decreasing depreciation expenses and some fluctuations in estimated asset useful life. These trends may reflect asset disposals, impairments, or strategic shifts affecting the fixed asset base.

Accumulated Depreciation

The accumulated depreciation shows an increasing trend from 2,819,862 thousand USD in February 2017 to a peak of 3,487,032 thousand USD in March 2019. However, after this peak, there is a notable decline, with accumulated depreciation decreasing to 2,008,994 thousand USD by February 2020, followed by further declines to 1,686,088 thousand USD in February 2021 and a slight increase to 1,829,475 thousand USD in February 2022. This pattern suggests significant asset disposals, write-downs, or revaluations occurred after 2019, effectively reducing the accumulated depreciation recorded on the books.

Depreciation Expense

Depreciation expense data is only available from February 2020 onward. The values indicate a slight decrease over the three years reported: 339,000 thousand USD in 2020, a marginal decline to 338,700 thousand USD in 2021, and a more substantial decrease to 292,300 thousand USD in 2022. This downward trend corresponds with the reduced accumulated depreciation levels, possibly reflecting a decrease in depreciable asset base or changes in depreciation methods or estimates.

Time Elapsed Since Purchase

The 'time elapsed since purchase' metric, available from 2020 onward, remains relatively stable between 5 and 6 years (6 years in 2020, 5 years in 2021, and 6 years in 2022). This suggests that the assets depreciated in these periods have a consistent average age, indicating steady asset turnover or replacement policies over recent years.

Property and Equipment, Net

The net value of property and equipment exhibited a declining trend over the analyzed periods. Starting at approximately $1.84 billion in early 2017, the value peaked slightly at around $1.91 billion in early 2018. Thereafter, a gradual decrease was observed, falling to about $1.85 billion in early 2019, followed by a more pronounced decline to approximately $1.43 billion by early 2020. This downward trajectory continued sharply through to early 2021, reaching its lowest at roughly $918 million, and then showed a modest recovery to about $1.03 billion in early 2022.

Depreciation Expense

Data for depreciation expense is available only from early 2020 onward. The depreciation expense remained relatively stable between early 2020 and early 2021, with figures close to $339 million. A reduction was noted in early 2022, with depreciation expense decreasing to approximately $292 million. This decline might indicate lower depreciation charges due to either asset disposals or changes in depreciation policies or estimates.

Estimated Remaining Life

The estimated remaining life of property and equipment, measured in years, was reported starting in early 2020. It decreased from 4 years in early 2020 to 3 years in early 2021, before returning to 4 years in early 2022. This fluctuation suggests adjustments in asset lifespan estimates, possibly reflecting reassessments of asset utility or planned disposals.

Overall Insights

The net property and equipment values have seen a significant decline over the period, particularly between 2019 and 2021, which may reflect asset sales, impairments, or reduced capital investment. The stabilization and slight increase in 2022 could indicate some investment or revaluation activity. The depreciation expense trends align with these changes, showing a reduction that may correspond with the decline in asset base or changing asset lives. The fluctuations in estimated remaining life point to ongoing reevaluations of asset longevity that impact depreciation calculations and book values.