Bed, Bath and Beyond 2009 Annual Report Download - page 30

BED BATH & BEYOND 2009 ANNUAL REPORT
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
B. In fiscal 2009, 2008 and 2007, the Company leased office and retail space from entities controlled by management of CTS. In
fiscal 2009, 2008 and 2007, the Company leased retail space from entities controlled by management of buybuy BABY. The
Company paid such entities occupancy costs of approximately $6.9 million, $7.1 million and $7.1 million in fiscal 2009, 2008 and
2007, respectively.
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 2009, 2008 and 2007), 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 February 27, 2010, future minimum lease payments under non-cancelable operating leases are as follows:
Amount
Fiscal Year (in thousands)
2010 $ 440,751
2011 415,301
2012 378,101
2013 336,817
2014 289,384
Thereafter 1,195,909
Total future minimum lease payments $ 3,056,263
Expenses for all operating leases were $423.3 million, $405.5 million and $380.5 million for fiscal 2009, 2008 and 2007, respectively.
10. EMPLOYEE BENEFIT PLANS
Defined Contribution Plans
The Company has four defined contribution savings plans covering all eligible employees of the Company (“the Plans”).
Participants of the Plans may defer annual pre-tax compensation subject to statutory and Plan limitations. In addition, a certain
percentage of an employee’s contributions are matched by the Company and vest over a specified period of time, subject to cer-
tain statutory and Plan limitations. The Company’s match was approximately $7.6 million, $6.9 million and $5.9 million for fiscal
2009, 2008 and 2007, 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. Participants of the NQDC may defer annual pre-tax compensation subject to statutory
and plan limitations. In addition, a certain percentage of an employee’s contributions may be matched by the Company and vest
over a specified period of time, subject to certain plan limitations. The Company’s match was approximately $0.4 million,
$0.4 million and $0.7 million for fiscal 2009, 2008 and 2007, 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.