Bed, Bath and Beyond 2010 Annual Report Download - page 28

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BED BATH & BEYOND 2010 ANNUAL REPORT
26
B. In fiscal 2009 and 2008, the Company leased office and retail space from entities controlled by management of CTS. In fiscal
2009 and 2008, 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 and $7.1 million in fiscal 2009 and 2008, respectively.
8. 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 2010, 2009 and 2008), 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 26, 2011, future minimum lease payments under non-cancelable operating leases are as follows:
Amount
Fiscal Year (in thousands)
2011 $ 457,676
2012 431,112
2013 388,840
2014 341,115
2015 298,481
Thereafter 1,186,362
Total future minimum lease payments $ 3,103,586
Expenses for all operating leases were $442.2 million, $423.3 million and $405.5 million for fiscal 2010, 2009 and 2008,
respectively.
9. 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
certain statutory and Plan limitations. The Company’s match was approximately $8.6 million, $7.6 million and $6.9 million for
fiscal 2010, 2009 and 2008, 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
for fiscal 2010, 2009 and 2008 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
compensation near retirement. The Company recognizes the overfunded or underfunded status of the pension plan as an asset
or liability in its statement of financial position and recognizes changes in the funded status in the year in which the changes
occur. In fiscal 2008, the Company adopted a fiscal year end measurement date and recorded an immaterial adjustment to
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)