Bed, Bath and Beyond 2001 Annual Report Download - page 15

BED BATH & BEYOND ANNUAL REPORT 2001
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8. EMPLOYEE BENEFIT PLAN
The Company has a defined contribution 401(k) savings plan
(the “Plan”) covering all eligible employees. Participants may
defer between 1% and 15% of annual pre-tax compensation
subject to statutory limitations. The Company has an option to
contribute an amount as determined by the Board of Directors.
In addition, each participant may elect to make voluntary,
non-tax deductible contributions in excess of the pre-tax
compensation limit up to 15% of compensation. As of March 2,
2002, the Company has made no contributions to the Plan.
9. COMMITMENTS AND CONTINGENCIES
The Company maintains employment agreements with its
Co-Chairmen, which extend through 2007. The agreements
provide for a base salary (which may be increased by the Board
of Directors), termination payments, pension benefits and other
terms and conditions of employment.
The Company is involved in various claims and legal actions
arising in the ordinary course of business. In the opinion of
management, the ultimate disposition of these matters will not
have a material adverse effect on the Company’s consolidated
financial position, results of operations or liquidity.
10. SUPPLEMENTAL CASH FLOW INFORMATION
The Company paid income taxes of $89.8 million, $68.0 million
and $67.2 million in fiscal 2001, 2000 and 1999, respectively.
11. STOCK OPTION PLANS
Options to purchase shares of the Company's common stock have
been granted to employees under various stock option plans,
which plans aggregated 64.4 million shares of common stock,
subject to adjustment under certain circumstances. Option
grants, which are issued at market value on the date of grant,
generally become exercisable in five equal installments beginning
one to three years after the date of grant, and in all events,
expire ten years after the date of grant. All option grants
are non-qualified. The following table summarizes stock
option transactions:
NUMBER OF WEIGHTED-AVERAGE
SHARES EXERCISE PRICE
Outstanding at February 27, 1999 23,472,538)$ 6.67
Options granted 5,533,900)15.49
Options exercised (1,975,374) 3.94
Options canceled (807,064) 9.67
Outstanding at February 26, 2000 26,224,000)8.65
Options granted 6,149,700)12.73
Options exercised (7,078,153) 5.33
Options canceled (1,123,562) 12.02
Outstanding at March 3, 2001 24,171,985)10.51
Options granted 3,439,800)23.73
Options exercised (3,550,917) 7.25
Options canceled (943,860) 14.41
Outstanding at March 2, 2002 23,117,008)$12.80
Options exercisable:
At February 26, 2000 7,240,180)$ 4.81
At March 3, 2001 4,904,297)$ 7.12
At March 2, 2002 6,155,914)$ 9.30
The stock option committees determine the number of
shares and the option price per share for all options issued under
the stock option plans.