Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Bed Bath & Beyond Inc., consolidated cash flow statement

US$ in thousands

12 months ended:	Feb 26, 2022	Feb 27, 2021	Feb 29, 2020	Mar 2, 2019	Mar 3, 2018	Feb 25, 2017
Net earnings (loss)	(559,623)	(150,773)	(613,816)	(137,224)	424,858)	685,108)
Depreciation and amortization	293,626)	340,912)	342,511)	338,825)	313,107)	290,914)
Impairments, including on assets held for sale	36,531)	127,341)	509,226)	509,905)	—)	—)
Stock-based compensation	35,061)	31,594)	45,676)	58,514)	70,510)	71,911)
Excess tax benefit from stock-based compensation	—)	—)	—)	—)	—)	(1,483)
Deferred income taxes	125,711)	148,741)	(145,543)	(104,089)	175,351)	24,878)
Loss on sale of businesses	18,221)	1,062)	—)	—)	—)	—)
(Gain) loss on debt extinguishment	376)	(77,038)	—)	(412)	—)	—)
Loss on sale leaseback transaction	—)	—)	27,357)	—)	—)	—)
Gain on sale of building	—)	—)	—)	(29,690)	—)	—)
Other	(8,298)	(396)	(3,446)	(814)	(69)	(1,032)
Merchandise inventories	(53,339)	64,947)	506,334)	106,928)	176,672)	(38,493)
Other current assets	387,746)	(387,172)	(4,781)	269,186)	(258,853)	(18,464)
Other assets	607)	1,519)	239)	86,495)	(20,790)	(33,260)
(Increase) decrease in assets	335,014)	(320,706)	501,792)	462,609)	(102,971)	(90,217)
Accounts payable	(132,785)	168,556)	(124,206)	(90,657)	13,210)	49,458)
Accrued expenses and other current liabilities	(100,356)	15,538)	61,864)	(77,147)	80,375)	(8,586)
Merchandise credit and gift card liabilities	13,981)	(12,110)	1,154)	16,016)	25,510)	11,390)
Income taxes payable	(11,257)	54,958)	(22,783)	8,360)	(64,941)	(8,307)
Operating lease assets and liabilities, net	(14,162)	(32,813)	(2,899)	—)	—)	—)
Other liabilities	(14,186)	(26,758)	14,054)	(35,918)	(75,251)	17,754)
Increase (decrease) in liabilities	(258,765)	167,371)	(72,816)	(179,346)	(21,097)	61,709)
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities	577,477)	418,881)	1,204,757)	1,055,502)	434,831)	356,680)
Net cash provided by operating activities	17,854)	268,108)	590,941)	918,278)	859,689)	1,041,788)
Purchases of held-to-maturity investment securities	(29,997)	—)	(443,500)	(734,424)	(292,500)	—)
Redemption of held-to-maturity investment securities	30,000)	386,500)	545,000)	538,925)	—)	86,240)
Net proceeds from sales of businesses	—)	534,457)	—)	—)	—)	—)
Net proceeds from sales of property	5,000)	—)	—)	—)	—)	—)
Proceeds from sale-leaseback transaction	—)	—)	267,277)	—)	—)	—)
Proceeds from sale of a building	—)	—)	—)	11,183)	—)	—)
Capital expenditures	(354,185)	(183,077)	(277,401)	(325,366)	(375,793)	(373,574)
Investment in unconsolidated joint venture	—)	—)	—)	—)	—)	(3,318)
Payment for acquisitions, net of cash acquired	—)	—)	—)	—)	(6,119)	(201,277)
Net cash (used in) provided by investing activities	(349,182)	737,880)	91,376)	(509,682)	(674,412)	(491,929)
Borrowing of long-term debt	—)	236,400)	—)	—)	—)	—)
Repayments of long-term debt	(11,360)	(457,827)	—)	(4,224)	—)	—)
Repayments of finance leases	(1,033)	—)	—)	—)	—)	—)
Prepayment under share repurchase agreement	—)	(47,550)	—)	—)	—)	—)
Repurchase of common stock, including fees	(589,433)	(332,529)	(99,710)	(148,073)	(252,433)	(547,022)
Excess tax benefit from stock-based compensation	—)	—)	—)	—)	—)	1,483)
Payment of dividends	(749)	(23,108)	(85,482)	(86,287)	(80,877)	(55,612)
Payment of deferred financing fees	(3,443)	(7,690)	—)	—)	(434)	—)
Proceeds from exercise of stock options	—)	—)	2,346)	—)	10,313)	20,424)
Net cash used in financing activities	(606,018)	(632,304)	(182,846)	(238,584)	(323,431)	(580,727)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	1,006)	5,075)	(977)	(7,181)	(4,035)	3,624)
Net increase (decrease) in cash, cash equivalents and restricted cash	(936,340)	378,759)	498,494)	162,831)	(142,189)	(27,244)
Change in cash balances classified as held-for-sale	—)	4,815)	(4,815)	—)	—)	—)
Net increase (decrease) in cash, cash equivalents and restricted cash	(936,340)	383,574)	493,679)	162,831)	(142,189)	(27,244)
Cash, cash equivalents and restricted cash, beginning of period	1,407,224)	1,023,650)	529,971)	367,140)	509,329)	515,573)
Cash, cash equivalents and restricted cash, end of period	470,884)	1,407,224)	1,023,650)	529,971)	367,140)	488,329)

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).

Net Earnings (Loss): Net earnings exhibited a significant decline over the periods analyzed, moving from a substantial profit of $685 million in 2017 to losses in subsequent years, including a peak loss exceeding $600 million in 2020 and another notable loss in 2022.
Depreciation and Amortization: This expense showed a general rising trend from 2017 through 2020 peaking near $343 million, followed by a decrease in 2022, indicating fluctuations in asset utilization or capital expenditure patterns.
Impairments: Starting in 2019, large impairments were recognized, especially in 2019 and 2020 with over $500 million recorded, declining substantially by 2022. This likely reflects significant asset write-downs impacting profitability.
Stock-Based Compensation: There was a steady decline in stock-based compensation expenses from approximately $72 million in 2017 to about $31 million in 2021, with a slight increase in 2022, signaling changes in employee compensation or incentive structures.
Deferred Income Taxes: Deferred income taxes fluctuated significantly, with notable negative figures in 2019 and 2020 turning positive again in 2021 and 2022, suggesting changes in tax strategy or the timing of tax liabilities and assets recognition.
Changes in Working Capital: The components of working capital such as merchandise inventories, accounts payable, accrued expenses, and other current liabilities displayed volatile movements over the years, indicating alterations in operational efficiency, supplier relations, and inventory management.
Net Cash Provided by Operating Activities: Cash flow from operations showed a decreasing trend from over $1 billion in 2017 to a minimal $18 million in 2022, reflecting declining cash generation capabilities that could constrain liquidity.
Investing Activities: Investing cash flows were negative in most years except 2020 and 2021, when significant proceeds from sales and investments led to positive cash inflows, demonstrating intermittent divestitures or asset sales.
Financing Activities: Net cash used in financing activities remained negative throughout, with fluctuations in debt repayments and a consistent trend of common stock repurchases and dividend payments, albeit at lower levels in recent years.
Capital Expenditures: Capital investments gradually decreased from $374 million in 2017 to $183 million in 2021, followed by an increase in 2022, signalling shifts in long-term asset investment plans.
Cash and Cash Equivalents: Cash balances demonstrated volatility, with increases in 2020 and 2021 followed by a substantial decrease in 2022, in line with the overall cash flow trends and operational challenges identified.
Overall Financial Trend: The financial data indicates a company encountering operational difficulties, marked by deteriorating profitability, large impairments, reduced cash flow from operations, and fluctuating working capital levels. Capital expenditure patterns and financing activity suggest cautious investment and active liquidity management amidst these challenges.

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Bed Bath & Beyond Inc. (NASDAQ:BBBY)

Cash Flow Statement