Name: Bed Bath & Beyond Inc. (NASDAQ:BBBY) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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Bed Bath & Beyond Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in thousands

	Feb 26, 2022	Feb 27, 2021	Feb 29, 2020	Mar 2, 2019	Mar 3, 2018	Feb 25, 2017
Accounts payable	872,445)	986,045)	944,194)	1,094,078)	1,197,504)	1,179,088)
Accrued expenses and other current liabilities	526,877)	636,329)	674,235)	623,734)	633,100)	484,114)
Merchandise credit and gift card liabilities	326,465)	312,486)	340,407)	339,322)	335,081)	309,478)
Current operating lease liabilities	346,506)	360,061)	463,005)	—)	—)	—)
Current finance lease liabilities	2,494)	—)	1,541)	—)	—)	—)
Liabilities related to assets held-for-sale	—)	—)	43,144)	—)	—)	—)
Current income taxes payable	—)	—)	—)	20,498)	—)	59,821)
Current liabilities	2,074,787)	2,294,921)	2,466,526)	2,077,632)	2,165,685)	2,032,501)
Other liabilities	66,991)	82,279)	102,514)	391,609)	427,092)	529,577)
Noncurrent operating lease liabilities	1,508,002)	1,509,767)	1,818,783)	—)	—)	—)
Noncurrent finance lease liabilities	35,447)	—)	102,412)	3,800)	4,500)	5,100)
Income taxes payable	91,424)	102,664)	46,945)	49,235)	62,823)	67,971)
Long term debt	1,179,776)	1,190,363)	1,488,400)	1,487,934)	1,492,078)	1,491,603)
Noncurrent liabilities	2,881,640)	2,885,073)	3,559,054)	1,932,578)	1,986,493)	2,094,251)
Total liabilities	4,956,427)	5,179,994)	6,025,580)	4,010,210)	4,152,178)	4,126,752)
Preferred stock, $0.01 par value; no shares issued or outstanding	—)	—)	—)	—)	—)	—)
Common stock, $0.01 par value	3,441)	3,432)	3,436)	3,426)	3,418)	3,395)
Additional paid-in capital	2,235,894)	2,152,135)	2,167,337)	2,118,673)	2,057,975)	1,974,781)
Retained earnings	9,666,091)	10,225,253)	10,374,826)	11,112,887)	11,343,503)	11,003,890)
Treasury stock, at cost	(11,685,267)	(11,048,284)	(10,715,755)	(10,616,045)	(10,467,972)	(10,215,539)
Accumulated other comprehensive loss	(46,014)	(55,600)	(64,909)	(58,610)	(48,296)	(47,250)
Shareholders’ equity	174,145)	1,276,936)	1,764,935)	2,560,331)	2,888,628)	2,719,277)
Total liabilities and shareholders’ equity	5,130,572)	6,456,930)	7,790,515)	6,570,541)	7,040,806)	6,846,029)

Based on: 10-K (reporting date: 2022-02-26), 10-K (reporting date: 2021-02-27), 10-K (reporting date: 2020-02-29), 10-K (reporting date: 2019-03-02), 10-K (reporting date: 2018-03-03), 10-K (reporting date: 2017-02-25).

The balance sheet exhibits a significant deterioration in solvency and capital stability over the period from February 2017 to February 2022. The most prominent trend is the precipitous decline in shareholders' equity, which fell from $2.72 billion in 2017 to $174 million by February 2022, representing a near-total erosion of the company's equity base.

Liability Structure and Trends: Total liabilities peaked in February 2020 at $6.03 billion before trending downward to $4.96 billion by February 2022. A substantial shift occurred in 2020 with the recognition of noncurrent operating lease liabilities, which rose to $1.82 billion, contributing to a spike in noncurrent liabilities from $1.93 billion in 2019 to $3.56 billion in 2020. Current liabilities remained relatively stable across the period, fluctuating between $2.03 billion and $2.47 billion.
Debt and Lease Obligations: Long-term debt remained stagnant at approximately $1.49 billion between 2017 and 2020, followed by a reduction to $1.18 billion by February 2022. Finance lease liabilities showed minimal presence until 2020, after which noncurrent finance lease liabilities fluctuated, ending at $35.45 million in 2022. The overall liability profile shifted toward lease-heavy obligations in the latter half of the analysis period.
Equity Erosion and Capital Allocation: The decline in shareholders' equity is driven by a combination of decreasing retained earnings and aggressive share repurchases. Retained earnings declined from $11.00 billion in 2017 to $9.67 billion in 2022. Simultaneously, the cost of treasury stock increased from $10.22 billion to $11.69 billion, indicating a continuous outflow of capital to buy back shares despite the shrinking equity cushion.
Current Liability Composition: Accounts payable demonstrated a steady downward trend, decreasing from $1.18 billion in 2017 to $872 million in 2022. Merchandise credit and gift card liabilities remained the most stable component of current liabilities, maintaining a range between $309 million and $340 million throughout the six-year period. Accrued expenses and other current liabilities peaked in 2020 at $674 million before declining to $527 million in 2022.

The convergence of declining retained earnings, increasing treasury stock expenditures, and a high liability-to-equity ratio indicates a severely weakened financial position by February 2022, characterized by minimal equity buffer and a reliance on liabilities to fund operations.

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