Bed Bath & Beyond (BBBY)

Selling, General and Administrative expenses

SG&A was $2.199 billion or 30.5% of net sales in fiscal 2008, $2.087 billion or 29.6% of net sales in fiscal 2007 and $1.946 billion or 29.4% of net sales in fiscal 2006.  The increase in SG&A between fiscal 2008 and 2007 as a percentage of net sales is primarily due to the 2.4% decline in comparable store sales, resulting in relative increases in occupancy costs (including rent, depreciation and real estate taxes), as well as relative increases in payroll-related items (including salaries and benefits). Also contributing to the increase in SG&A as a percentage of net sales were relative increases in advertising expenses, including increases in postage, paper and other production costs. The increase in SG&A between fiscal 2007 and 2006 as a percentage of net sales was primarily due to a relative increase in advertising expense as a result of increased distributions of advertising pieces in response to the heightened promotional environment and a relative increase in occupancy costs and other expenses, partially offset by a relative decrease in payroll and payroll related items (including a non-recurring pre-tax charge of $30 million in fiscal 2006 related to the Company’s remediation program intended to protect its employees from certain adverse tax consequences arising pursuant to Internal Revenue Code Section 409A).

Selling, General and Administrative expenses

SG&A was $2.199 billion or 30.5% of net sales in fiscal 2008, $2.087 billion or 29.6% of net sales in fiscal 2007 and $1.946 billion or 29.4% of net sales in fiscal 2006.  The increase in SG&A between fiscal 2008 and 2007 as a percentage of net sales is primarily due to the 2.4% decline in comparable store sales, resulting in relative increases in occupancy costs (including rent, depreciation and real estate taxes), as well as relative increases in payroll-related items (including salaries and benefits). Also contributing to the increase in SG&A as a percentage of net sales were relative increases in advertising expenses, including increases in postage, paper and other production costs. The increase in SG&A between fiscal 2007 and 2006 as a percentage of net sales was primarily due to a relative increase in advertising expense as a result of increased distributions of advertising pieces in response to the heightened promotional environment and a relative increase in occupancy costs and other expenses, partially offset by a relative decrease in payroll and payroll related items (including a non-recurring pre-tax charge of $30 million in fiscal 2006 related to the Company’s remediation program intended to protect its employees from certain adverse tax consequences arising pursuant to Internal Revenue Code Section 409A).

Selling, General and Administrative Expenses

SG&A for the three months ended November 29, 2008 was $556.5 million or 31.2% of net sales compared with $544.7 million or 30.4% of net sales for the three months ended December 1, 2007. SG&A as a percentage of net sales increased for the three months ended November 29, 2008 compared to December 1, 2007 primarily due to the 5.6% decline in comparable store sales, resulting in relative increases in fixed costs, such as occupancy costs (including rent, real estate taxes and depreciation), as well as relative increases in payroll-related items (including salaries and benefits).

SG&A for the nine months ended November 29, 2008 was $1.646 billion or 31.1% of net sales compared with $1.548 billion or 30.3% of net sales for the nine months ended December 1, 2007. This increase in SG&A as a percentage of net sales was primarily due to the 1.7% decline in comparable store sales, resulting in relative increases in occupancy costs (including rent, depreciation and real estate taxes), as well as relative increases in payroll-related items (including salaries and benefits). Also contributing to the increase in SG&A as a percentage of sales were relative increases in advertising expenses, including increases in postage, paper and other production costs.

Selling, General and Administrative Expenses

SG&A for the three months ended August 30, 2008 was $551.9 million or 29.8% of net sales compared with $511.1 million or 28.9% of net sales for the three months ended September 1, 2007. SG&A as a percentage of net sales increased for the three months ended August 30, 2008 compared to September 1, 2007 primarily due to the 0.1% decline in comparable store sales, resulting in relative increases in fixed costs, such as occupancy costs (including rent, real estate taxes and depreciation) and relative increases in payroll and payroll-related items (including salaries, medical insurance and workers’ compensation insurance). Although the number of advertising events was comparable to the prior year, the Company also experienced relative increases in advertising expenses primarily as a result of increases in postage, paper and other production costs.

SG&A for the six months ended August 30, 2008 was $1.089 billion or 31.1% of net sales compared with $1.003 billion or 30.2% of net sales for the six months ended September 1, 2007. This increase in SG&A as a percentage of net sales was primarily due to the relatively flat comparable store sales, resulting in relative increases in occupancy costs (including rent, real estate taxes and depreciation). Also contributing to the increase in SG&A as a percentage of net sales were relative increases in advertising expenses (including increases in postage, paper and other production costs) and relative increases in payroll and payroll-related items (including salaries, medical insurance and workers’ compensation insurance).

Selling, General and Administrative Expenses

Selling, general and administrative expenses (“SG&A”) for the three months ended May 31, 2008 was $537.2 million or 32.6% of net sales compared with $491.7 million or 31.7% of net sales for the three months ended June 2, 2007. SG&A as a percentage of net sales increased for the three months ended May 31, 2008 compared to June 2, 2007 primarily due to increases in advertising expense as a result of increased distribution of advertising pieces in response to the heightened promotional environment and relative increases in occupancy costs including rent, real estate taxes and depreciation.

Selling, General and Administrative expenses

Selling, general and administrative expenses (“SG&A”) were $2.087 billion or 29.6% of net sales in fiscal 2007 compared to $1.946 billion or 29.4% of net sales in fiscal 2006. The increase in SG&A as a percentage of net sales is primarily due to a relative increase in advertising expense as a result of increased distributions of advertising pieces in response to the heightened promotional environment and a relative increase in occupancy costs and other expenses, partially offset by a relative decrease in payroll and payroll related items (including a non-recurring pre-tax charge of $30 million in fiscal 2006 related to the Company’s remediation program intended to protect its employees from certain adverse tax consequences arising pursuant to Internal Revenue Code Section 409A).

SG&A was $1.946 billion or 29.4% of net sales in fiscal 2006 compared to $1.607 billion or 27.7% of net sales in fiscal 2005. The increase in SG&A as a percentage of net sales was primarily due to the non-recurring charge referred to above, the expensing of stock options for twelve months in fiscal 2006 versus six months in fiscal 2005, additional stock-based compensation charges primarily related to the revised measurement dates, increased legal and accounting charges associated with the stock option review (see “Review of Equity Grants and Procedures and

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Selling, General and Administrative Expenses

Selling, general and administrative expenses (“SG&A”) for the three months ended December 1, 2007 was $544.7 million or 30.4% of net sales compared to $492.9 million or 30.4% of net sales for the three months ended November 25, 2006. SG&A as a percentage of net sales was relatively flat for the three months ended December 1, 2007 compared to November 25, 2006 primarily due to a relative decrease in payroll and payroll-related items (due to a non-recurring $7.2 million charge in the fiscal third quarter of 2006 related to the review of stock option grants and procedures), offset by a relative increase in advertising expense for the current quarter as a result of increased distribution of advertising pieces in response to a heightened promotional environment.

SG&A for the nine months ended December 1, 2007 was $1.548 billion or 30.3% of net sales compared to $1.393 billion, or 30.1% of net sales for the nine months ended November 25, 2006. SG&A as a percentage of net sales increased for the nine months ended December 1, 2007 compared to November 25, 2006 due to a relative increase in advertising expense as a result

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Selling, General and Administrative Expenses

Selling, general and administrative expenses (“SG&A”) for the three and six months ended September 1, 2007 was $511.1 million and $1.003 billion, or 28.9% and 30.2% of net sales, respectively. SG&A for the three and six months ended August 26, 2006 was $458.6 million and $900.0 million, or 28.5% and 30.0% of net sales, respectively. SG&A as a percentage of net sales increased for the three and six months ended September 1, 2007 compared to August 26, 2006 due primarily to a relative increase in advertising expense. Although the number of advertising events remained relatively consistent, increased distribution resulted in higher postage and paper costs.

Selling, General and Administrative Expenses

Selling, general and administrative expenses (“SG&A”) for the three months ended June 2, 2007 was $491.7 million or 31.7% of net sales compared with $441.3 million or 31.6% of net sales for the three months ended May 27, 2006.  SG&A as a percentage of net sales increased for the three months ended June 2, 2007 compared to May 27, 2006 due primarily to a relative increase in advertising expense, although the number of advertising events remained consistent.  This was partially offset by relative decreases in payroll and payroll-related items, as well as store pre-opening expenses.

Selling, General and Administrative expenses

Selling, general and administrative expenses (“SG&A”) were $1.946 billion or 29.4% of net sales in fiscal 2006 compared to $1.607 billion or 27.7% of net sales in fiscal 2005.  The increase in SG&A as a percentage of net sales is primarily due to a non-recurring charge relating to the Company’s remediation program intended to protect its employees from certain potential adverse tax consequences arising pursuant to  Internal Revenue Code Section 409A, the expensing of stock options for twelve months in fiscal 2006 versus six months in fiscal 2005, additional stock-based compensation charges primarily related to the revised measurement dates, increased legal and accounting charges associated with the stock option review (see “Review of Equity Grants and Procedures and Related Matters”) and an increase in advertising, which includes higher paper costs and postal rates.  Lastly, there were one-time benefits experienced in fiscal 2005, such as settlement of credit card litigation and certain insurance recoveries, which the Company did not have in fiscal 2006.

SG&A as a percentage of net sales increased to 27.7% in fiscal 2005 from  27.1% in fiscal 2004, primarily due to the expensing of stock options and related changes in the compensation program reflecting the early adoption of Statement of Financial Accounting Standards (“SFAS”) No. 123 (revised 2004), “Share-Based Payment” (“SFAS No. 123R”). SG&A in fiscal 2005 was $1.607 billion as compared to $1.394 billion in fiscal 2004.

Selling, General and Administrative Expenses

Selling, general and administrative expenses (“SG&A”) for the three months ended November 25, 2006 was $492.9 million or 30.4% of net sales compared to $409.9 million or 28.3% of net sales for the three months ended November 26, 2005. SG&A as a percentage of net sales increased due to the year-to-date $7.2 million additional charge in stock-based compensation (primarily related to the impact of the revised measurement dates), increases in legal and accounting charges related to the stock option review and an increase in advertising (which includes higher paper costs and postal rates).  In addition, there were one-time benefits experienced in the prior year period for settlement of credit card litigation and certain insurance recoveries, which were not experienced in the current year period.

SG&A for the nine months ended November 25, 2006 was $1.393 billion or 30.1% of net sales compared to $1.164 billion or 28.2% of net sales for the nine months ended November 26, 2005.  SG&A as a percentage of net sales increased primarily due to increases in payroll and payroll related items due to (i) the expensing of stock options for the nine month period in fiscal 2006 compared to a three month period in fiscal 2005 due to the timing of adoption of SFAS 123R at the beginning of the third quarter of fiscal 2005; (ii) changes related to the Company’s compensation program; and (iii) the $7.2 million additional stock-based compensation charge as described above.  In addition, there were increases in occupancy costs (including common area maintenance charges and depreciation), advertising (which includes higher paper costs and postal rates) and legal and accounting charges related to the stock option review.

Selling, General and Administrative Expenses

Selling, general and administrative expenses (“SG&A”) for the three and six months ended August 26, 2006 was $458.6 million and $900.0 million, or 28.5% and 30.0% of net sales, respectively.  SG&A for the three and six months ended August 27, 2005 was $383.9 million and $753.8 million, or 26.8% and 28.2% of net sales, respectively.  SG&A as a percentage of net sales increased due to the expensing of stock options and the related changes in our employee compensation program, as well as increased occupancy costs (including utilities and depreciation) and increased litigation expense (due to a prior year reduction of the estimated amounts required for outstanding litigation in the comparable periods in 2005).

Selling, General and Administrative Expenses

Selling, general and administrative expenses (“SG&A”) for the three months ended May 27, 2006 was $441.3 million or 31.6% of net sales compared with $369.9 million or 29.7% of net sales for the three months ended May 28, 2005. SG&A as a percentage of net sales increased for the three months ended May 27, 2006 compared to May 28, 2005 due primarily to the expensing of stock options and the related changes in our employee compensation programs. Also contributing to the SG&A deleveraging were occupancy costs (including real estate and other taxes, depreciation and utilities), advertising expenses (which include increases in paper costs and postal rates) and preopening expenses (primarily due to the changes in lease accounting rules).

Selling, general and administrative expenses

Selling, general and administrative expenses (“SG&A”) were $1.607 billion or 27.7% of net sales in fiscal 2005 compared to $1.394 billion or 27.1% of net sales in fiscal 2004. The increase in SG&A as a percentage of net sales is primarily due to the expensing of stock options and related changes in the compensation program, reflecting the early adoption of Statement of Financial Accounting Standards (“SFAS”) No. 123 (revised 2004), “Share-Based Payment” (“SFAS No. 123R”).

SG&A as a percentage of net sales decreased to 27.1% in fiscal 2004 from 27.6% in fiscal 2003 primarily as a result of a relative decrease in payroll and payroll related items, occupancy costs and other expenses, which primarily resulted from the comparable store sales increase. These relative decreases were partially offset by a relative increase in net advertising costs. SG&A in fiscal 2004 was $1.394 billion as compared to $1.237 billion in fiscal 2003.

Selling, General and Administrative Expenses

Selling, general and administrative expenses (“SG&A”) for the three and nine months ended November 26, 2005 was $409.9 million and $1.164 billion, or 28.3% and 28.2% of net sales, respectively.  SG&A for the three and nine months ended November 27, 2004 was $357.2 million and $1.027 billion, or 27.4% and 27.9% of net sales, respectively.  SG&A as a percentage of net sales increased for the three months ended November 26, 2005 compared to November 27, 2004 primarily due to payroll and payroll related items, mostly from the expensing of stock options in connection with the adoption of the revised stock option accounting rules, preopening expenses (due to an increase in the number of new store openings) and rent and lease expenses (including changes required by certain accounting clarifications as issued by the Office of the Chief Accountant of the SEC), partially offset by settlement of credit card litigation and certain insurance recoveries. SG&A as a percentage of net sales increased for the nine months ended November 26, 2005 compared to

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Selling, General and Administrative Expenses

Selling, general and administrative expenses (“SG&A”) for the three and six months ended August 27, 2005 was $383.9 million and $753.8 million, or 26.8% and 28.2% of net sales, respectively.  SG&A for the three and six months ended August 28, 2004 was $341.7 million and $669.8 million, or 26.8% and 28.2% of net sales, respectively.  SG&A as a percentage of net sales were the same for the three and six months ended August 27, 2005 and August 28, 2004. Increased expenses due to payroll and payroll related items (caused in part by additional store payroll hours incurred for certain store remodels and restricted share expense in conjunction with changes to the Company’s overall compensation plan), rent and lease expense (including changes required by recent accounting

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Selling, General and Administrative Expenses

SG&A was $369.9 million in the first quarter of 2005, compared with $328.1 million in the corresponding quarter last year and as a percentage of net sales was 29.7% and 29.8%, respectively.  The decrease in SG&A as a percentage of net sales was primarily attributable to an improvement in payroll and payroll related items as a percentage of net sales which primarily resulted from increases in store sales.

Selling, general and administrative expenses

Selling, general and administrative expenses (“SG&A”) were $1.394 billion or 27.1% of net sales in fiscal 2004 compared to $1.237 billion or 27.6% of net sales in fiscal 2003.  The decrease in SG&A as a percentage of net sales primarily reflects a relative decrease in payroll and payroll related items, occupancy costs and other expenses, which primarily resulted from the comparable store sales increase.  The above relative decreases were partially offset by a relative increase in net advertising costs.

SG&A as a percentage of net sales decreased to 27.6% in fiscal 2003 from 28.3% in fiscal 2002 primarily as a result of a relative decrease in occupancy costs, other store expenses and costs associated with new store openings, partially offset by a relative increase in litigation expense and net advertising costs. SG&A in fiscal 2003 was $1.237 billion as compared to $1.038 billion in fiscal 2002.

Selling, General and Administrative Expenses

SG&A for the three and nine months ended November 27, 2004 was $357.2 million and $1.027 billion, or 27.4% and 27.9% of net sales, respectively.  SG&A for the three and nine months ended November 29, 2003 was $325.5 million and $905.5 million, or 27.7% and 28.5% of net sales, respectively.  The decrease in SG&A as a percentage of net sales for the quarter was primarily attributable to a decrease in payroll and payroll related items and occupancy costs, which primarily resulted from the comparable store sales increase.   Also contributing to the decrease in SG&A as a

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Selling, General and Administrative Expenses

SG&A for the three and nine months ended November 27, 2004 was $357.2 million and $1.027 billion, or 27.4% and 27.9% of net sales, respectively.  SG&A for the three and nine months ended November 29, 2003 was $325.5 million and $905.5 million, or 27.7% and 28.5% of net sales, respectively.  The decrease in SG&A as a percentage of net sales for the quarter was primarily attributable to a decrease in payroll and payroll related items and occupancy costs, which primarily resulted from the comparable store sales increase.  Also contributing to the decrease in SG&A as a

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