In addition, the Company's Board of Directors is reviewing a program intended to protect over 1,600 employees from certain potential adverse tax consequences. These adverse tax consequences arise pursuant to Internal Revenue Code Section 409A as a result of historical issues associated with some of the Company's stock option grants that were disclosed through the Company's stock option review.
Although no final determination has been reached by the Board of Directors, the Company anticipates it will incur a non-recurring charge in the fourth quarter of fiscal 2006 related to this program. The Company anticipates the potential cash payments pursuant to the program to be approximately $40 million.
Bed Bath & Beyond Inc. also announced that its Board of Directors has approved a $1 billion share repurchase program, effective today, which authorizes the Company to repurchase shares of its common stock. The Company intends to fund the program from present and expected future excess cash flows. No date has been established for the completion of the program.
During the fiscal fourth quarter of 2006, the Company plans to open approximately 18 Bed Bath & Beyond stores, one of which has already opened, in both new and existing markets. These additional openings will bring to approximately 72 the total number of new Bed Bath & Beyond stores opened in fiscal 2006 and to approximately 813 the number of Bed Bath & Beyond stores expected to be in operation at fiscal year-end.
marketing@alchempro.com
