Bed, Bath and Beyond 2007 Annual Report Download - page 28

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BED BATH& BEYOND ANNUAL REPORT 2007
26
C. On March 22, 2007, the Company acquired buybuy BABY, a retailer of infant and toddler merchandise, for approximately $67
million (net of cash acquired) and repayment of debt of approximately $19 million. buybuy BABY was founded in 1996 by
Richard and Jeffrey Feinstein, both of whom were previously employed by the Company, and are the sons of Leonard Feinstein,
one of the Company’s Co-Chairmen. The aforementioned repayment of approximately $19 million of debt resulted in the
retirement of all indebtedness of buybuy BABY, which debt was held by Richard and Jeffrey Feinstein (approximately $16 mil-
lion) and Leonard Feinstein (approximately $3 million). The Company’s Co-Chairmen, Leonard Feinstein and Warren Eisenberg,
recused themselves from deliberations relating to the transaction.
9. LEASES
The Company leases retail stores, as well as warehouses, office facilities and equipment, under agreements expiring at various
dates through 2041. Certain leases provide for contingent rents (which are based upon store sales exceeding stipulated amounts
and are immaterial in fiscal 2007, 2006 and 2005), scheduled rent increases and renewal options. The Company is obligated under
a majority of the leases to pay for taxes, insurance and common area maintenance charges.
As of March 1, 2008, future minimum lease payments under non-cancelable operating leases are as follows:
Amount
Fiscal Year (in thousands)
2008 $ 404,197
2009 401,271
2010 374,914
2011 340,924
2012 301,134
Thereafter 1,372,926
Total future minimum lease payments $ 3,195,366
Expenses for all operating leases were $380.5 million, $355.7 million and $322.0 million for fiscal 2007, 2006 and 2005, respectively.
10. EMPLOYEE BENEFIT PLANS
Defined Contribution Plans
The Company has two defined contribution savings plans covering all eligible employees of the Company (“the Plans”). During
fiscal 2006, a 401(k) savings plan, which was frozen effective December 31, 2003, was merged into one of the Plans. Participants
of the Plans may defer annual pre-tax compensation subject to statutory and Plan limitations. Effective January 1, 2006, a certain
percentage of an employee’s contributions, will be matched by the Company, subject to certain statutory and Plan limitations.
This match will vest over a specified period of time. The Company’s match was approximately $5.9 million, $4.8 million and
$0.5 million for fiscal 2007, 2006 and 2005, respectively, which was expensed as incurred.
Nonqualified Deferred Compensation Plan
Effective January 1, 2006, the Company adopted a nonqualified deferred compensation plan for the benefit of employees defined
by the Internal Revenue Service as highly compensated. A certain percentage of an employee’s contributions may be matched
by the Company, subject to certain Plan limitations. This match will vest over a specified period of time. The Company’s match
was approximately $0.7 million, $0.4 million and $0.1 million for fiscal 2007, 2006 and 2005, respectively, which was expensed
as incurred.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)