Bed, Bath and Beyond 2014 Annual Report Download - page 33

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As of February 28, 2015, future minimum lease payments under non-cancelable operating leases were as follows:
Fiscal Year:
Operating Leases
(in thousands)
2015 $ 573,802
2016 530,107
2017 466,517
2018 399,947
2019 333,617
Thereafter 956,177
Total future minimum lease payments $3,260,167
Expenses for all operating leases were $566.0 million, $559.8 million and $536.1 million for fiscal 2014, 2013 and 2012,
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 February 28, 2015 and March 1, 2014, the capital lease obligations
were approximately $3.5 million and $3.9 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 minimum lease payments are accounted for as principal and interest payments. Interest expense for all
capital leases was $0.5 million, $0.5 million and $0.4 million for fiscal 2014, 2013 and 2012, respectively. The minimum capital
lease payments, including interest, by fiscal year are: $0.8 million in fiscal 2015, $0.8 million in fiscal 2016, $0.7 million in fiscal
2017, $0.6 million in fiscal 2018, $0.6 million in fiscal 2019 and $2.0 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 February 28, 2015 and March 1,
2014, the sale/leaseback financing obligations were approximately $104.6 million and $105.3 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: $0.7 million in fiscal 2015, $0.7 million in fiscal
2016, $0.8 million in fiscal 2017, $0.8 million in fiscal 2018, $0.8 million in fiscal 2019 and $77.2 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’’).
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 $13.2 million, $12.5 million and
$10.9 million for fiscal 2014, 2013 and 2012, respectively, which was expensed as incurred.
Nonqualified Deferred Compensation Plan
The Company has a nonqualified deferred compensation plan (‘‘NQDC’’) for the benefit of employees who are 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
$0.7 million, $0.5 million and $0.5 million in fiscal 2014, 2013 and 2012, 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 net impact to the consolidated statements of earnings.
BED BATH & BEYOND 2014 ANNUAL REPORT
31