Name: Bed Bath & Beyond Inc. (NASDAQ:BBBY) | Cash Flow Statement
Creator: Stock Analysis on Net

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.

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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).

The financial trajectory between February 2017 and February 2022 is characterized by a severe deterioration in operational profitability and a heavy reliance on asset monetization to sustain liquidity. While the period began with positive net earnings and robust operating cash flows, the subsequent years show a transition toward systemic losses and a precipitous decline in the ability to generate cash from core business activities.

Operating Cash Flow Trends: Net cash provided by operating activities experienced a consistent downward trend, falling from 1,041,788 thousand US$ in 2017 to a marginal 17,854 thousand US$ by 2022. This decline was driven primarily by a shift from net earnings of 685,108 thousand US$ in 2017 to substantial net losses, reaching 559,623 thousand US$ in 2022. The operating cash flow was temporarily buoyed by significant non-cash charges, specifically impairments which peaked at over 509 million US$ in 2019 and 2020, effectively masking the extent of the operational cash drain.
Investing Activities and Asset Liquidation: Capital expenditures remained substantial throughout the period, generally ranging between 183 million and 375 million US$. To offset these outflows and operational losses, a strategic shift toward asset liquidation is observed in the later years. This is evidenced by the 267,277 thousand US$ gained from sale-leaseback transactions in 2020 and 534,457 thousand US$ from the sale of businesses in 2021. These activities provided critical cash infusions that temporarily stabilized the cash position despite the failing operational core.
Financing Activities and Shareholder Returns: Financing activities were consistently negative, indicating a persistent outflow of capital. A notable pattern is the aggressive continuation of common stock repurchases, which remained high across the entire period, peaking at 589,433 thousand US$ in 2022. This commitment to shareholder returns persisted even as net earnings turned negative and operating cash flows collapsed. Furthermore, dividend payments were significantly reduced from 86,287 thousand US$ in 2019 to only 749 thousand US$ in 2022, signaling an urgent need to preserve remaining liquidity.
Liquidity and Cash Balance Analysis: The cash and restricted cash balance exhibited extreme volatility. After peaking at 1,407,224 thousand US$ in February 2021—driven largely by the sale of businesses and borrowing—the balance plummeted to 470,884 thousand US$ by February 2022. This represents a net decrease of nearly 936 million US$ in a single year, reflecting a critical liquidity contraction as asset sales ceased to offset operational losses and financing obligations.

Overall, the data reveals a company that transitioned from a cash-generative state to one dependent on the sale of its own infrastructure and assets to fund operations and shareholder buybacks. The convergence of escalating net losses, dwindling operating cash flow, and a sharp decline in ending cash balances suggests a state of severe financial instability by the end of the analyzed period.

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