An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.

Present Value of Future Operating Lease Payments (before Adoption of FASB Topic 842)
Adjustments to Financial Statements for Operating Leases
Adjusted Financial Ratios for Operating Leases (Summary)
Adjusted Total Asset Turnover
Adjusted Debt to Equity
Adjusted Return on Assets (ROA)

Bed Bath & Beyond Inc., future operating lease payments (before adoption of FASB Topic 842)

US$ in thousands

	Feb 26, 2022	Feb 27, 2021	Feb 29, 2020	Mar 2, 2019	Mar 3, 2018	Feb 25, 2017
Total undiscounted future operating lease payments	—	—	—	2,771,196)	3,041,505)	3,326,519)
Discount rate¹	—	—	—	5.68%	5.34%	5.76%

Total present value of future operating lease payments	—	—	—	2,298,308)	2,531,568)	2,702,735)

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).

¹ Weighted-average discount rate, finance leases

2019 Calculations

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at 5.68%
2020	609,613)	2020	609,613)	576,848)
2021	534,055)	2021	534,055)	478,190)
2022	434,908)	2022	434,908)	368,484)
2023	334,587)	2023	334,587)	268,249)
2024	241,863)	2024	241,863)	183,487)
2025 and thereafter	616,170)	2025	241,863)	173,625)
		2026	241,863)	164,293)
		2027	132,444)	85,131)
Total:	2,771,196)		2,771,196)	2,298,308)

Based on: 10-K (reporting date: 2019-03-02).

2018 Calculations

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at 5.34%
2019	612,097)	2019	612,097)	581,068)
2020	558,365)	2020	558,365)	503,189)
2021	477,228)	2021	477,228)	408,269)
2022	379,050)	2022	379,050)	307,839)
2023	282,746)	2023	282,746)	217,987)
2024 and thereafter	732,019)	2024	282,746)	206,936)
		2025	282,746)	196,446)
		2026	166,527)	109,834)
Total:	3,041,505)		3,041,505)	2,531,568)

Based on: 10-K (reporting date: 2018-03-03).

2017 Calculations

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at 5.76%
2018	614,148)	2018	614,148)	580,700)
2019	563,682)	2019	563,682)	503,954)
2020	502,371)	2020	502,371)	424,678)
2021	419,526)	2021	419,526)	335,331)
2022	323,809)	2022	323,809)	244,727)
2023 and thereafter	902,983)	2023	323,809)	231,398)
		2024	323,809)	218,796)
		2025	255,365)	163,151)
Total:	3,326,519)		3,326,519)	2,702,735)

Based on: 10-K (reporting date: 2017-02-25).

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Bed Bath & Beyond Inc., adjustments to financial statements

US$ in thousands

	Feb 26, 2022	Feb 27, 2021	Feb 29, 2020	Mar 2, 2019	Mar 3, 2018	Feb 25, 2017
Adjustment to Total Assets
Total assets (as reported)	5,130,572)	6,456,930)	7,790,515)	6,570,541)	7,040,806)	6,846,029)
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)¹	—)	—)	—)	2,298,308)	2,531,568)	2,702,735)
Total assets (adjusted)	5,130,572)	6,456,930)	7,790,515)	8,868,849)	9,572,374)	9,548,764)
Adjustment to Total Debt
Total debt (as reported)	1,217,717)	1,190,363)	1,592,353)	1,491,734)	1,496,578)	1,496,703)
Add: Operating lease liability (before adoption of FASB Topic 842)²	—)	—)	—)	2,298,308)	2,531,568)	2,702,735)
Add: Current operating lease liabilities	346,506)	360,061)	463,005)	—)	—)	—)
Add: Noncurrent operating lease liabilities	1,508,002)	1,509,767)	1,818,783)	—)	—)	—)
Total debt (adjusted)	3,072,225)	3,060,191)	3,874,141)	3,790,042)	4,028,146)	4,199,438)

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).

^{1, 2} Equal to total present value of future operating lease payments.

Bed Bath & Beyond Inc., Financial Data: Reported vs. Adjusted

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Bed Bath & Beyond Inc., adjusted financial ratios

	Feb 26, 2022	Feb 27, 2021	Feb 29, 2020	Mar 2, 2019	Mar 3, 2018	Feb 25, 2017
Total Asset Turnover¹
Reported total asset turnover	1.53	1.43	1.43	1.83	1.75	1.78
Adjusted total asset turnover	1.53	1.43	1.43	1.36	1.29	1.28
Debt to Equity²
Reported debt to equity	6.99	0.93	0.90	0.58	0.52	0.55
Adjusted debt to equity	17.64	2.40	2.20	1.48	1.39	1.54
Return on Assets³ (ROA)
Reported ROA	-10.91%	-2.34%	-7.88%	-2.09%	6.03%	10.01%
Adjusted ROA	-10.91%	-2.34%	-7.88%	-1.55%	4.44%	7.17%

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).

¹ See details »

² See details »

³ See details »

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Bed Bath & Beyond Inc. adjusted total asset turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.
Adjusted debt to equity	A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity.	Bed Bath & Beyond Inc. adjusted debt to equity ratio deteriorated from 2020 to 2021 and from 2021 to 2022.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Bed Bath & Beyond Inc. adjusted ROA improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Bed Bath & Beyond Inc., Financial Ratios: Reported vs. Adjusted

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	Feb 26, 2022	Feb 27, 2021	Feb 29, 2020	Mar 2, 2019	Mar 3, 2018	Feb 25, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net sales	7,867,778)	9,233,028)	11,158,580)	12,028,797)	12,349,301)	12,215,757)
Total assets	5,130,572)	6,456,930)	7,790,515)	6,570,541)	7,040,806)	6,846,029)
Activity Ratio
Total asset turnover¹	1.53	1.43	1.43	1.83	1.75	1.78
Adjusted for Operating Leases
Selected Financial Data (US$ in thousands)
Net sales	7,867,778)	9,233,028)	11,158,580)	12,028,797)	12,349,301)	12,215,757)
Adjusted total assets	5,130,572)	6,456,930)	7,790,515)	8,868,849)	9,572,374)	9,548,764)
Activity Ratio
Adjusted total asset turnover²	1.53	1.43	1.43	1.36	1.29	1.28

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).

2022 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 7,867,778 ÷ 5,130,572 = 1.53

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 7,867,778 ÷ 5,130,572 = 1.53

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Bed Bath & Beyond Inc. adjusted total asset turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

	Feb 26, 2022	Feb 27, 2021	Feb 29, 2020	Mar 2, 2019	Mar 3, 2018	Feb 25, 2017
As Reported
Selected Financial Data (US$ in thousands)
Total debt	1,217,717)	1,190,363)	1,592,353)	1,491,734)	1,496,578)	1,496,703)
Shareholders’ equity	174,145)	1,276,936)	1,764,935)	2,560,331)	2,888,628)	2,719,277)
Solvency Ratio
Debt to equity¹	6.99	0.93	0.90	0.58	0.52	0.55
Adjusted for Operating Leases
Selected Financial Data (US$ in thousands)
Adjusted total debt	3,072,225)	3,060,191)	3,874,141)	3,790,042)	4,028,146)	4,199,438)
Shareholders’ equity	174,145)	1,276,936)	1,764,935)	2,560,331)	2,888,628)	2,719,277)
Solvency Ratio
Adjusted debt to equity²	17.64	2.40	2.20	1.48	1.39	1.54

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).

2022 Calculations

¹ Debt to equity = Total debt ÷ Shareholders’ equity
= 1,217,717 ÷ 174,145 = 6.99

² Adjusted debt to equity = Adjusted total debt ÷ Shareholders’ equity
= 3,072,225 ÷ 174,145 = 17.64

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Solvency ratio	Description	The company
Adjusted debt-to-equity	A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity.	Bed Bath & Beyond Inc. adjusted debt-to-equity ratio deteriorated from 2020 to 2021 and from 2021 to 2022.

	Feb 26, 2022	Feb 27, 2021	Feb 29, 2020	Mar 2, 2019	Mar 3, 2018	Feb 25, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net earnings (loss)	(559,623)	(150,773)	(613,816)	(137,224)	424,858)	685,108)
Total assets	5,130,572)	6,456,930)	7,790,515)	6,570,541)	7,040,806)	6,846,029)
Profitability Ratio
ROA¹	-10.91%	-2.34%	-7.88%	-2.09%	6.03%	10.01%
Adjusted for Operating Leases
Selected Financial Data (US$ in thousands)
Net earnings (loss)	(559,623)	(150,773)	(613,816)	(137,224)	424,858)	685,108)
Adjusted total assets	5,130,572)	6,456,930)	7,790,515)	8,868,849)	9,572,374)	9,548,764)
Profitability Ratio
Adjusted ROA²	-10.91%	-2.34%	-7.88%	-1.55%	4.44%	7.17%

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).

2022 Calculations

¹ ROA = 100 × Net earnings (loss) ÷ Total assets
= 100 × -559,623 ÷ 5,130,572 = -10.91%

² Adjusted ROA = 100 × Net earnings (loss) ÷ Adjusted total assets
= 100 × -559,623 ÷ 5,130,572 = -10.91%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Bed Bath & Beyond Inc. adjusted ROA improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Bed Bath & Beyond Inc. (NASDAQ:BBBY)

Analysis of Operating Leases

Present Value of Future Operating Lease Payments (before Adoption of FASB Topic 842)

Adjustments to Financial Statements for Operating Leases

Bed Bath & Beyond Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios for Operating Leases (Summary)

Bed Bath & Beyond Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Debt to Equity

Adjusted Return on Assets (ROA)