Bed, Bath and Beyond 2008 Annual Report Download - page 32

BED BATH & BEYOND 2008 ANNUAL REPORT
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11. 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 $6.9 million, $5.9 million and $4.8 million
for fiscal 2008, 2007 and 2006, respectively, which was expensed as incurred.
Nonqualified Deferred Compensation Plan
The Company has a nonqualified deferred compensation plan (“NQDC”) 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
$0.4 million, $0.7 million and $0.4 million for fiscal 2008, 2007 and 2006, respectively, which was expensed as incurred.
Changes in the fair value of the trading securities related to the NQDC and the corresponding change in the associated liability
are included within interest income and selling, general and administrative expenses respectively, in the Consolidated Statements
of Earnings. Historically, these changes have resulted in no impact to the Consolidated Statements of Earnings.
Defined Benefit Plan
The Company has a non-contributory defined benefit pension plan for the CTS employees, hired on or before July 31, 2003, who
meet specified age and length-of-service requirements. The benefits are based on years of service and the employee’s compensa-
tion near retirement. In fiscal 2006, the Company adopted SFAS No. 158, “Employers’ Accounting for Defined Benefit Pension and
Other Postretirement Plans–an Amendment of FASB Statements No. 87, 88, 106 and 132(R),” (“SFAS No. 158”) on a prospective
basis. SFAS No. 158 requires an employer to recognize the overfunded or underfunded status of a defined benefit postretirement
plan as an asset or liability in its statement of financial position and recognize changes in the funded status in the year in which
the changes occur. In addition, SFAS No. 158 requires companies to measure plan assets and benefit obligations utilizing a fiscal
year end measurement date. In fiscal 2008, subsequent to the initial adoption as permitted under SFAS No. 158, the Company
adopted the fiscal year end measurement date and recorded an immaterial adjustment to retained earnings; prior to fiscal 2008,
the Company utilized a December 31 measurement date. For the years ended February28, 2009 and March 1, 2008, the net
periodic pension cost was not material to the Company’s results of operations. The Company has a $7.2 million and $0.7 million
liability, which is included in deferred rent and other liabilities as of February 28, 2009 and March 1, 2008, respectively. In addition,
as of February 28, 2009 and March 1, 2008, the Company recognized a loss of $0.9 million, net of taxes of $0.5 million, and
income of $3.6 million, net of taxes of $2.2 million, respectively, within accumulated other comprehensive loss.
12. COMMITMENTS AND CONTINGENCIES
The Company maintains employment agreements with its Co-Chairmen, which extend through June 2010. The agreements
provide for a base salary(which may be increased by the Boardof Directors), termination payments, post-retirement benefits and
other terms and conditions of employment. In addition, the Company maintains employment agreements with other executives
which provide for severance pay and, in some instances, certain other supplemental retirement benefits.
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.
13. SUPPLEMENTAL CASH FLOW INFORMATION
The Company paid income taxes of $261.3 million, $359.9 million and $388.4 million in fiscal 2008, 2007 and 2006, respectively.
The Company recorded an accrual for capital expenditures of $21.6 million, $36.6 million and $53.9 million as of February 28,
2009, March 1, 2008 and March 3, 2007, respectively.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)