Bed, Bath and Beyond 2013 Annual Report Download - page 33

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As of March 1, 2014, future minimum lease payments under non-cancelable operating leases were as follows:
Fiscal Year:
Operating Leases
(in thousands)
2014 $ 563,973
2015 515,364
2016 458,798
2017 390,422
2018 322,970
Thereafter 998,019
Total future minimum lease payments $3,249,546
Expenses for all operating leases were $559.8 million, $536.1 million and $456.2 million for fiscal 2013, 2012 and 2011, respectively.
As a result of the Cost Plus World Market acquisition on June 29, 2012 and in addition to the amounts disclosed above, the
Company assumed various capital lease obligations. As of March 1, 2014 and March 2, 2013, the capital lease obligations were
approximately $3.9 million and $4.4 million, respectively, for which the current and long-term portions are included within
accrued expenses and other current liabilities and deferred rent and other liabilities, respectively, in the consolidated balance
sheet. Monthly minimum lease payments are accounted for as principal and interest payments. Interest expense for all capital
leases was $0.5 million and $0.4 million for fiscal 2013 and 2012, respectively. The minimum capital lease payments, including
interest, by fiscal year are: $0.9 million in fiscal 2014, $0.8 million in fiscal 2015, $0.8 million in fiscal 2016, $0.7 million in fiscal
2017, $0.6 million in fiscal 2018 and $2.6 million thereafter.
As a result of the Cost Plus World Market acquisition on June 29, 2012 and in addition to the amounts disclosed above, the
Company assumed two sale/leaseback agreements and recorded financing obligations, which approximated the discounted
fair value of the minimum lease payments, had a residual fair value at the end of the lease term and are being amortized over
the term of the respective agreements, including option periods, of 32 and 35 years. As of March 1, 2014 and March 2, 2013,
the sale/leaseback financing obligations were approximately $105.3 million and $105.9 million, respectively, for which the
current and long-term portions are included within accrued expenses and other current liabilities and deferred rent and other
liabilities, respectively, in the consolidated balance sheet. Monthly lease payments are accounted for as principal and interest
payments (at approximate annual interest rates of 7.2% and 10.6%). These sale/leaseback financing obligations, excluding the
residual fair value at the end of the lease term, mature as follows: $0.6 million in fiscal 2014, $0.7 million in fiscal 2015,
$0.7 million in fiscal 2016, $0.8 million in fiscal 2017, $0.8 million in fiscal 2018 and $78.1 million thereafter.
10. EMPLOYEE BENEFIT PLANS
Defined Contribution Plans
The Company has five defined contribution savings plans covering all eligible employees of the Company (‘‘the Plans’’). During
fiscal 2011, a 401(k) savings plan was merged into one of 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 $12.5 million, $10.9 million and $9.4 million for fiscal 2013, 2012 and 2011, 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 $0.5 million,
$0.5 million and $0.4 million in fiscal 2013, 2012 and 2011, 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.
BED BATH & BEYOND 2013 ANNUAL REPORT
31