Bed, Bath and Beyond 2002 Annual Report Download - page 17

BED BATH & BEYOND ANNUAL REPORT 2002
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8. EMPLOYEE BENEFIT PLANS
The Company has two defined contribution 401(k) savings
plans (the “Bed Bath & Beyond Plan” and the “Harmon Plan”)
covering all eligible Bed Bath & Beyond and Harmon employees,
respectively. Participants may defer annual pretax compensation
subject to statutory and Plan limitations. The Company has an
option to contribute an amount as determined by the Board
of Directors to either Plan. In addition, each participant in the
Bed Bath & Beyond Plan 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 1, 2003, the
Company has not made a material contribution to either 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, post-retirement 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 $151.8 million, $89.8 million
and $68.0 million in fiscal 2002, 2001 and 2000, 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 26, 2000 26,224,000)$8.65
Options granted 6,149,700)12.73
Options exercised (7,078,153) 5.33
Options canceled (1,123,562) 12.02
Outstanding at March 3, 2001 24,171,985)10.51
Options granted 3,439,800)23.73
Options exercised (3,550,917) 7.25
Options canceled (943,860) 14.41
Outstanding at March 2, 2002 23,117,008)12.80
Options granted 4,335,000)31.95
Options exercised (2,989,255) 8.09
Options canceled (626,008) 20.45
Outstanding at March 1, 2003 23,836,745)$ 16.66
Options exercisable:
At March 3, 2001 4,904,297)$7.12
At March 2, 2002 6,155,914)$9.30
At March 1, 2003 8,404,205)$ 11.20
The stock option committees determine the number of
shares and the option price per share for all options issued
under the stock option plans.
The following tables summarize information pertaining
to stock options outstanding and exercisable at March 1, 2003:
OPTIONS OUTSTANDING
WEIGHTED-AVERAGE WEIGHTED-
RANGE OF NUMBER REMAINING AVERAGE
EXERCISE PRICES OUTSTANDING CONTRACTUAL LIFE EXERCISE PRICE
$ 2.04 to 10.69 4,029,310 3.69 $ 5.84
10.97 to 11.47 4,649,850 6.99 11.46
11.83 to 14.77 5,160,637 5.79 13.16
14.86 to 23.78 5,635,508 7.38 20.20
23.84 to 36.24 4,361,440 9.07 31.78
$ 2.04 to 36.24 23,836,745 6.65 $16.66
OPTIONS EXERCISABLE
RANGE OF NUMBER WEIGHTED-AVERAGE
EXERCISE PRICES EXERCISABLE EXERCISE PRICE
$ 2.04 to 10.69 3,080,590 $ 5.70
10.97 to 11.47 1,200,010 11.45
11.83 to 14.77 3,051,637 13.74
14.86 to 23.78 1,011,948 18.95
23.84 to 36.24 60,020 29.38
$ 2.04 to 36.24 8,404,205 $11.20