Bed, Bath and Beyond 2015 Annual Report Download - page 96

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 $0.6 million, $0.7 million and $0.5 million in fiscal 2015,
2014 and 2013, 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.
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 up until 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. For the years ended February 27,
2016, February 28, 2015 and March 1, 2014, the net periodic pension cost was not material to the Company’s
results of operations. The Company has a $20.4 million and $18.4 million liability, which is included in deferred
rent and other liabilities as of February 27, 2016 and February 28, 2015, respectively. In addition, as of
February 27, 2016 and February 28, 2015, the Company recognized a loss of $6.5 million, net of taxes of $4.2
million, and a loss of $6.1 million, net of taxes of $4.0 million, respectively, within accumulated other
comprehensive loss.
10. COMMITMENTS AND CONTINGENCIES
The Company maintains employment agreements with its Co-Chairmen, which extend through February 25,
2017. The agreements provide for a base salary (which may be increased by the Board of Directors), termination
payments, postretirement 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 records an estimated liability related to its various claims and legal actions arising in the ordinary
course of business when and to the extent that it concludes a liability is probable and the amount of the loss can
be reasonably estimated. Such estimated loss is based on available information and advice from outside counsel,
where appropriate. As additional information becomes available, the Company reassesses the potential liability
related to claims and legal actions and revises its estimated liabilities, as appropriate. The Company expects 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. The Company also cannot predict the nature and validity of
claims which could be asserted in the future, and future claims could have a material impact on its earnings.
11. SUPPLEMENTAL CASH FLOW INFORMATION
The Company paid income taxes of $442.4 million, $554.4 million and $562.4 million in fiscal 2015, 2014 and
2013, respectively. In addition, the Company had interest payments of approximately $81.5 million, $48.2
million and $9.2 million in fiscal 2015, 2014 and 2013, respectively.
The Company recorded an accrual for capital expenditures of $51.7 million, $57.8 million and $50.2 million as
of February 27, 2016, February 28, 2015 and March 1, 2014, respectively.
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