Bed, Bath and Beyond 2003 Annual Report Download - page 21

BED BATH& BEYOND ANNUAL REPORT 2003
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included in accrued expenses and other current liabilities.
B. The Company obtained certain payroll services from a related party through August 2001. In fiscal 2003 and 2002,
the Company paid no such fees. The Company paid fees for such services of $203,000 for fiscal 2001.
C. The Company made charitable contributions to the Mitzi and Warren Eisenberg Family Foundation, Inc. (the
”Eisenberg Foundation”) and the Feinstein Family Foundation, Inc. (the ”Feinstein Foundation”) in the aggregate
amounts of $913,000 and $761,000 for fiscal 2002 and 2001, respectively. The Eisenberg Foundation and
the Feinstein Foundation are each not-for-profit corporations of which Messrs. Eisenberg and Feinstein, the
Co-Chairmen of the Company, and their family members are the trustees and officers. The Company made no con-
tributions in fiscal 2003.
D. Since the acquisitions of CTS and Harmon, the Company leased warehouse, office and retail spaces from
entities controlled by senior management of CTS and Harmon and paid occupancy costs of approximately
$4,721,000 in fiscal 2003 and approximately $461,000 in fiscal 2002.
8. LEASES
The Company leases retail stores, as well as warehouses, office facilities and equipment, under agreements
expiring at various dates through 2029. Certain leases provide for contingent rents (which are based upon store
sales exceeding stipulated amounts and are immaterial in fiscal 2003, 2002 and 2001), scheduled rent increases and
renewal options generally ranging from five to twenty years. The Company is obligated under a majority of the
leases to pay for taxes, insurance and common area maintenance charges.
As of February 28, 2004, future minimum lease payments under noncancelable operating leases are as follows:
Fiscal Year (in thousands) Amount
2004 $273,934
2005 285,298
2006 283,051
2007 274,325
2008 265,991
1,344,563
Total future minimum lease payments $2,727,162
Expenses for all operating leases were $251.0 million, $219.8 million and $178.7 million for fiscal 2003, 2002 and
2001, respectively.
9. EMPLOYEE BENEFIT PLANS
Defined Contribution Plans
The Company has three defined contribution 401(k) savings plans (the ”Bed Bath & Beyond Plan”, the ”Harmon Plan”
and the ”Christmas Tree Shops Plan”, collectively the ”Plans”) covering all eligible Bed Bath & Beyond, Harmon
and CTS employees, respectively. Effective December 31, 2003, the Harmon Plan was frozen. Eligible employees of
Harmon can now participate in the Bed Bath & Beyond Plan. Participants may defer annual pre-tax compensation
subject to statutory and Plan limitations. The Company has an option to contribute an amount as determined by the
Board of Directors to the Plans. In addition, each participant in the Bed Bath & Beyond Plan and the Christmas Tree
Shops Plan may elect to make voluntary, non-tax deductible contributions in excess of the pre-tax compensation limit
up to 15% of compensation. The Company has not made a material contribution to any plan for fiscal 2003, 2002
or 2001.
Thereafter