(Mark One):
/x/
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE OF ACT 1934 [NO FEE REQUIRED].
For the fiscal year ended December 31, 2000.
/ /
TRANSACTION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED].
For the transaction period from ________________ to _______________.
Commission file number: 1-12381
Deferred Compensation Plan of Linens ’n Things, Inc.
Linens ’n Things, Inc.
6 Brighton Road
Clifton, NJ 07015
A. Financial Statements Page No.
Independent Auditors' Report
3
Statements of Financial Condition
as of December 31, 2000 and 1999
4-5
Statements of Income and Changes in Plan Equity,
with Fund Information, for the Years Ended
December 31, 2000, 1999 and 1998
6-16
Notes to Financial Statements
17-27
B. Exhibits
23. Independent Accountants' Consent
29
2
Independent Auditors' Report
The Compensation Committee of the
Board of Directors of
Linens ’n Things, Inc.:
We have audited the
accompanying statements of financial condition of the Deferred Compensation Plan
of Linens ’n Things, Inc. (the “Plan”) as of December 31, 2000
and 1999, and the related statements of income and changes in plan equity, with Fund Information for
each of the years in the three-year period ended December 31, 2000. These
financial statements are the responsibility of the Plan’s management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial condition of the Plan as of December 31, 2000 and 1999 and the income and changes in plan equity of the Plan for each of the years in the three-year period ended December 31, 2000 in conformity with accounting principles generally accepted in the United States of America.
Our audits were performed
for the purpose of forming an opinion on the basic financial statements taken as
a whole. The Fund Information in the statements of income and changes in plan
equity is presented for purposes of additional analysis rather than to present
the changes in equity for each fund. The Fund Information has been
subjected to the auditing procedures applied in the audits of the basic
financial statements and, in our opinion, is fairly stated in all material
respects in relation to the basic financial statements taken as a whole.
KPMG LLP
New York, New York
June 29, 2001
Linens 'n Things, Inc.
Deferred Compensation Plan
Statements of Financial Condition
December 31, December 31,
Assets: 2000 1999
------- ---- ----
Davis New York Venture Fund (cost $1,293,315 in 2000 and $825,070 in 1999) $1,432,711 $930,373
Dreyfus Appreciation Fund (cost $913,416 in 2000 and $770,874 in 1999) 951,034 821,985
Alliance Premier Growth A Fund (cost $991,422 in 2000 and $876,795 in 1999) 882,278 998,119
American Century Income & Growth Fund (cost $763,636 in 2000 and $702,912 in 1999) 767,009 806,581
Janus Invest 20 Fund (cost $792,208 in 2000 and $583,362 in 1999) 624,894 840,375
Baron Asset Fund (cost $398,496 in 2000 and $460,708 in 1999) 463,476 529,298
Linens 'n Things, Inc. Common Stock Fund (cost $481,771 in 2000 and $296,817 in 1999) 368,131 194,429
Franklin Small Cap Growth Fund (cost $188,178 in 2000 and $170,987 in 1999) 210,639 248,135
Common Stock Fund (cost $359,604 in 2000 and $67,391 in 1999) 126,363 64,724
Prudential Emerging Growth Fund (cost $103,505 in 2000) 81,049 0
Strong Government Securities Fund (cost $54,651 in 2000 and $23,775 in 1999) 55,896 23,806
American Century Value Fund (cost $37,394 in 2000 and $13,482 in 1999) 48,028 15,975
Deutsche and Investment International Fund (cost $47,315 in 2000 and $37,614 in 1999) 44,808 50,800
Putnam International Growth Fund (cost $36,006 in 2000 and $45,079 in 1999) 39,696 64,548
Montgomery Short Duration Government Bond Fund (cost $29,506 in 2000 and $16,036 in 1999) 30,164 16,907
Gabelli Growth Fund (cost $28,334 in 2000 and $21,735 in 1999) 28,201 25,722
Prudential Equity Fund (cost $30,893 in 2000 and $20,874 in 1999) 27,866 18,900
Liberty Stein Roe Capital Opportunities Fund (cost $28,573 in 2000 and $20,574 in 1999) 26,402 22,840
Franklin International Fund (cost $21,906 in 2000 and $9,244 in 1999) 23,151 10,964
Strong Schafer Value Fund (cost $20,974 in 2000 and $10,838 in 1999) 20,852 10,124
Dreyfus Founders Passport Fund (cost $26,830 in 2000 and $23,095 in 1999) 18,829 32,350
Command Money Market Fund (cost $18,732 in 2000 and $4,985 in 1999) 18,526 4,779
Stein Roe Growth and Income Fund (cost $15,174 in 2000 and $15,174 in 1999) 17,925 18,704
Rainier Small/Mid Cap Equity Fund (cost $14,330 in 2000 and $5,987 in 1999) 14,858 7,899
Neuberger Berman Genesis Fund (cost $8,310 in 2000 and $11,896 in 1999) 10,011 13,093
PBHG Emerging Growth Fund (cost $13,235 in 2000 and $3,186 in 1999) 8,983 5,956
Prudential Jennison Growth Fund (cost $9,821 in 2000 and $6,317 in 1999) 8,440 7,531
Lazard Equity Portfolio Fund (cost $7,612 in 2000 and $1,649 in 1999) 7,106 1,603
4
Linens 'n Things, Inc.
Deferred Compensation Plan
Statements of Financial Condition
December 31, December 31,
Assets: 2000 1999
------- ---- ----
(continued)
Strong International Bond Fund (cost $2,320 in 2000 and $3,134 in 1999) $ 2,321 $ 2,896
Royce Pennsylvania Mutual Investors Fund (cost $2,073 in 2000 and $4,738 in 1999) 2,115 4,870
Van Kampen Comstock Fund (cost $1,250 in 2000) 1,556 0
Prudential Money Market Assets Fund (cost $851 in 2000 and 1999) 851 851
Robertson Stephens Growth & Income Fund (cost $1,229 in 2000) 827 0
Janus Flexible Income Fund (cost $881 in 2000 and $3,133 in 1999) 625 2,982
Target Portfolio Trust (cost $322 in 2000) 321 0
Oakmark Fund (cost $620,995 in 1999) 0 503,575
----------- -----------
Total investments (cost $6,744,073 in 2000 and $5,679,307 in 1999) 6,365,942 6,301,694
Contributions receivable - participants 16,165 9,909
----------- -----------
Total plan equity $ 6,382,107 $ 6,311,603
=========== ===========
The accompanying notes are an integral part of these financial statements.
6
LINENS 'N THINGS, INC.
DEFERRED COMPENSATION PLAN
Statement of Income and Changes in Plan Equity,
with Fund Information
Year ended December 31, 2000
Alliance American
Davis Dreyfus Premier Century
New York Appreciation Growth A Income & Janus Invest
Venture Fund Fund Fund Growth Fund 20 Fund
------------------------------------------------------------------------
Additions to plan equity attributed to:
Investment income:
Dividend income .................. $ 12,876 $ 16,211 $ 465 $ 7,169 $ --
Net realized gain (loss) ......... 817 2,082 3,203 115 65,423
Net unrealized appreciation
(depreciation) in fair
value of investments ............ 34,093 (13,493) (230,468) (100,296) (424,327)
Contributions ...................... 96,126 56,809 152,985 47,577 --
Transfers among funds .............. 386,077 80,816 12,553 19,762 346,836
----------- ----------- ----------- ----------- -----------
Total additions ............. 529,989 142,425 (61,262) (25,673) (12,068)
Deductions from plan equity
attributed to:
Distributions ...................... -- -- -- -- --
Transfers among funds .............. (27,651) (13,376) (54,579) (13,899) (203,413)
----------- ----------- ----------- ----------- -----------
Total deductions ............. (27,651) (13,376) (54,579) (13,899) (203,413)
----------- ----------- ----------- ----------- -----------
Net increase (decrease) in
plan equity .......................... 502,338 129,049 (115,841) (39,572) (215,481)
Plan equity at beginning of year ...... 930,373 821,985 998,119 806,581 840,375
----------- ----------- ----------- ----------- -----------
Plan equity at end of year ............ $ 1,432,711 $ 951,034 $ 882,278 $ 767,009 $ 624,894
=========== =========== =========== =========== ===========
Linens 'n Franklin
Things, Inc. Small
Baron Asset Common Stock Cap Growth Common
Fund Fund Fund Stock Fund
--------------------------------------------------------
Additions to plan equity attributed to:
Investment income:
Dividend income .................. $ -- $ -- $ 1,910 $ --
Net realized gain (loss) ......... (8,767) -- 28,311 13,605
Net unrealized appreciation
(depreciation) in fair
value of investments ............ (3,610) (11,252) (54,687) (230,574)
Contributions ...................... 28,997 184,954 57,270 198,973
Transfers among funds .............. 8,541 -- 891 134,875
----------- ----------- ----------- -----------
Total additions ............. 25,161 173,702 33,695 116,879
Deductions from plan equity
attributed to:
Distributions ...................... -- -- -- --
Transfers among funds .............. (90,983) -- (71,191) (55,240)
----------- ----------- ----------- -----------
Total deductions ............. (90,983) -- (71,191) (55,240)
Net increase (decrease) in
plan equity .......................... (65,822) 173,702 (37,496) 61,639
Plan equity at beginning of year ...... 529,298 194,429 248,135 64,724
----------- ----------- ----------- -----------
Plan equity at end of year ............ $ 463,476 $ 368,131 $ 210,639 $ 126,363
=========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements.
7
LINENS 'N THINGS, INC.
DEFERRED COMPENSATION PLAN
Statement of Income and Changes in Plan Equity,
with Fund Information
Year ended December 31, 2000, continued
Montgomery
Deutsche Short
Prudential Strong American and Putnam Duration
Emerging Government Century Investment International Government
Growth Securities Value International Growth Bond
Fund Fund Fund Fund Fund Fund
------ ----------- -------- ------------- ------------ ------------
Additions to plan equity attributed to:
Investment income:
Dividend income .................. $ 1,273 $ 2,434 $ 829 $ 370 $ -- $ 1,465
Net realized gain (loss) ......... -- -- -- 4,399 7,922 --
Net unrealized appreciation
(depreciation) in fair value
of investments .................. (22,456) 1,214 8,141 (15,693) (15,779) (213)
Contributions ...................... 10,070 23,764 15,947 44,808 41,837 7,502
Transfers among funds .............. 92,162 8,382 7,136 2,449 296 4,503
-------- -------- -------- -------- -------- --------
Total additions ............. 81,049 35,794 32,053 36,333 34,276 13,257
Deductions from plan equity
attributed to:
Distributions ...................... -- -- -- -- -- --
Transfers among funds .............. -- (3,704) -- (42,325) (59,128) --
-------- -------- -------- -------- -------- --------
Total deductions ............. -- (3,704) -- (42,325) (59,128) --
-------- -------- -------- -------- -------- --------
Net increase (decrease) in plan equity 81,049 32,090 32,053 (5,992) (24,852) 13,257
Plan equity at beginning of year ...... -- 23,806 15,975 50,800 64,548 16,907
-------- -------- -------- -------- -------- --------
Plan equity at end of year ............ $ 81,049 $ 55,896 $ 48,028 $ 44,808 $ 39,696 $ 30,164
======== ======== ======== ======== ======== ========
Liberty Stein
Gabelli Prudential Roe Capital
Growth Equity Opportunities
Fund Fund Fund
--------- ---------- ----------------
Additions to plan equity attributed to:
Investment income:
Dividend income .................. $ -- $ 314 $ 1,069
Net realized gain (loss) ......... 384 -- 4,488
Net unrealized appreciation
(depreciation) in fair value
of investments .................. (4,120) (1,053) (4,437)
Contributions ...................... 7,984 6,398 33,004
Transfers among funds .............. -- 3,307 4,368
-------- -------- --------
Total additions ............. 4,248 8,966 38,492
Deductions from plan equity
attributed to:
Distributions ...................... -- -- --
Transfers among funds .............. (1,769) -- (34,930)
-------- -------- --------
Total deductions ............. (1,769) -- (34,930)
-------- -------- --------
Net increase (decrease) in plan equity 2,479 8,966 3,562
Plan equity at beginning of year ...... 25,722 18,900 22,840
-------- -------- --------
Plan equity at end of year ............ $ 28,201 $ 27,866 $ 26,402
======== ======== ========
The accompanying notes are an integral part of these financial statements.
8
LINENS 'N THINGS, INC.
DEFERRED COMPENSATION PLAN
Statement of Income and Changes in Plan Equity,
with Fund Information
Year ended December 31, 2000, continued
Strong Dreyfus Command Stein Roe Rainier Neuberger
Franklin Schafer Founders Money Growth and Small/Mid Cap Berman
International Value Passport Market Income Equity Genesis
Fund Fund Fund Fund Fund Fund Fund
------------- ------- -------- ------- ---------- ------------- ----------
Additions to plan equity attributed to:
Investment income:
Dividend income .................. $ 620 $ -- $ 2,497 $ 557 $ -- $ 1,933 $ 280
Net realized gain (loss) ......... 16 -- 4,213 -- -- 17 965
Net unrealized appreciation
(depreciation) in fair value of
investments .................... (475) 592 (17,256) -- (779) (1,384) 504
Contributions ...................... 10,437 6,284 11,402 13,190 -- 6,218 19,579
Transfers among funds .............. 1,836 3,852 117 -- -- 232 2,501
-------- -------- -------- -------- -------- -------- --------
Total additions ............. 12,434 10,728 973 13,747 (779) 7,016 23,829
Deductions from plan equity
attributed to:
Distributions ...................... -- -- -- -- -- -- --
Transfers among funds .............. (247) -- (14,494) -- -- (57) (26,911)
-------- -------- -------- -------- -------- -------- --------
Total deductions ............. (247) -- (14,494) -- -- (57) (26,911)
-------- -------- -------- -------- -------- -------- --------
Net increase (decrease) in plan equity 12,187 10,728 (13,521) 13,747 (779) 6,959 (3,082)
Plan equity at beginning of year ...... 10,964 10,124 32,350 4,779 18,704 7,899 13,093
-------- -------- -------- -------- -------- -------- --------
Plan equity at end of year ............ $ 23,151 $ 20,852 $ 18,829 $ 18,526 $ 17,925 $ 14,858 $ 10,011
======== ======== ======== ======== ======== ======== ========
PBHG Prudential
Emerging Jennison
Growth Growth
Fund Fund
---------- ---------
Additions to plan equity attributable to:
Investment income:
Dividend income .................. $ 212 $ --
Net realized gain (loss) ......... 2,174 194
Net unrealized appreciation
(depreciation) in fair value of
investments .................... (7,022) (2,595)
Contributions ...................... 6,721 3,924
Transfers among funds .............. 4,459 252
-------- --------
Total additions ............. 6,544 1,775
Deductions from plan equity
attributed to:
Distributions ...................... -- --
Transfers among funds .............. (3,517) (866)
-------- --------
Total deductions ............. (3,517) (866)
-------- --------
Net increase (decrease) in plan equity 3,027 909
Plan equity at beginning of year ...... 5,956 7,531
-------- --------
Plan equity at end of year ............ $ 8,983 $ 8,440
======== ========
The accompanying notes are an integral part of these financial statements.
9
LINENS 'N THINGS, INC.
DEFERRED COMPENSATION PLAN
Statement of Income and Changes in Plan Equity,
with Fund Information
Year ended December 31, 2000, continued
Royce
Lazard Strong Pennsylvania Prudential Robertson
Equity International Mutual Van Kampen Money Market Stephens
Portfolio Bond Investors Comstock Assets Growth &
Fund Fund Fund Fund Fund Income Fund
--------- -------------- ----------- ---------- --------- -----------
Additions to plan equity attributed to:
Investment income:
Dividend income .................. $ 295 $ -- $ 23 $ 45 $ -- $ 24
Net realized gain (loss) ......... -- (311) 141 -- -- --
Net unrealized appreciation
(depreciation) in fair value of
investments ..................... (460) 239 (90) 306 -- (402)
Contributions ...................... 5,360 3,284 9,500 1,205 -- 1,205
Transfers among funds .............. 308 -- 1,077 -- -- --
--------- --------- --------- --------- --------- ---------
Total additions ............. 5,503 3,212 10,651 1,556 -- 827
Deductions from plan equity
attributed to:
Distributions ...................... -- -- -- -- -- --
Transfers among funds .............. -- (3,787) (13,406) -- -- --
--------- --------- --------- --------- --------- ---------
Total deductions ............. -- (3,787) (13,406) -- -- --
--------- --------- --------- --------- --------- ---------
Net increase (decrease) in plan equity 5,503 (575) (2,755) 1,556 -- 827
Plan equity at beginning of year ...... 1,603 2,896 4,870 -- 851 --
--------- --------- --------- --------- --------- ---------
Plan equity at end of year ............ $ 7,106 $ 2,321 $ 2,115 $ 1,556 $ 851 $ 827
========= ========= ========= ========= ========= =========
Janus
Flexible Target
Income Portfolio Oakmark
Fund Trust Fund
-------- ----- --------
Additions to plan equity attributed to:
Investment income:
Dividend income .................. $ 78 $ 1 $ --
Net realized gain (loss) ......... (181) -- (210,486)
Net unrealized appreciation
(depreciation) in fair value of
investments ..................... (105) (1) 83,134
Contributions ...................... 3,834 321 --
Transfers among funds .............. 1,465 -- 196,275
--------- --------- ---------
Total additions ............. 5,091 321 68,923
Deductions from plan equity
attributed to:
Distributions ...................... -- -- --
Transfers among funds .............. (7,448) -- (572,498)
--------- --------- ---------
Total deductions ............. (7,448) -- (572,498)
--------- --------- ---------
Net increase (decrease) in plan equity (2,357) 321 (503,575)
Plan equity at beginning of year ...... 2,982 -- 503,575
--------- --------- ---------
Plan equity at end of year ............ $ 625 $ 321 $ --
========= ========= =========
The accompanying notes are an integral part of these financial statements.
10
LINENS 'N THINGS, INC.
DEFERRED COMPENSATION PLAN
Statement of Income and Changes in Plan Equity,
with Fund Information
Year ended December 31, 2000
Contributions
receivable-
participants Total Plan Equity
-------------- ----------------
Additions to plan equity attributed to:
Investment income:
Dividend income $ - $ 52,951
Net realized gain (loss) - (81,276)
Net unrealized appreciation
(depreciation) in fair value of
investments - (1,034,805)
Contributions 16,165 1,133,634
Transfers among funds - 1,325,328
----------- --------------
Total additions 16,165 1,395,832
Deductions from plan equity
attributed to:
Distributions - -
Transfers among funds (9,909) (1,325,328)
----------- --------------
Total deductions (9,909) (1,325,328)
----------- --------------
Net increase (decrease) in plan equity 6,256 70,504
Plan equity at beginning of year 9,909 6,311,603
----------- --------------
Plan equity at end of year $ 16,165 $ 6,382,107
=========== ==============
The accompanying notes are an integral part of these financial statements.
11
LINENS 'N THINGS, INC.
DEFERRED COMPENSATION PLAN
Statement of Income and Changes in Plan Equity,
with Fund Information
Year ended December 31, 1999
Alliance Davis Dreyfus American
Premier New York Janus Invest Appreciation Century Income Baron Asset
Growth A Fund Venture Fund 20 Fund Fund & Growth Fund Fund
------------------------------ ----------------------------------------------- ---------------
Additions to plan equity attributed to:
Investment income:
Dividend income .................. $ 12,553 $ 1,974 $ 1,806 $ 4,145 $ 8,611 $ --
Net realized gain (loss) ......... 310 516 -- 185 1,405 63
Net unrealized appreciation
(depreciation) in fair value of
investments .................... 123,623 89,858 296,021 41,259 79,794 50,106
Contributions ...................... 165,049 165,741 104,652 128,524 127,899 85,772
Transfers among funds .............. 701,351 677,357 437,896 652,162 606,911 393,971 ----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
Total additions ............. 1,002,886 935,446 840,375 826,275 824,620 529,912
Deductions from plan equity
attributed to:
Distributions ...................... -- -- -- -- -- --
Transfers among funds .............. (4,767) (5,073) -- (4,290) (18,039) (614)
----------- ----------- ----------- ----------- ----------- -----------
Total deductions ............. (4,767) (5,073) -- (4,290) (18,039) (614)
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in plan equity 998,119 930,373 840,375 821,985 806,581 529,298
Plan equity at beginning of year ...... -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
Plan equity at end of year ............ $ 998,119 $ 930,373 $ 840,375 $ 821,985 $ 806,581 $ 529,298
=========== =========== =========== =========== =========== ===========
Linens 'n
Franklin Small Things, Inc.
Oakmark Cap Growth Common Stock
Fund Fund Fund
-----------------------------------------------
Additions to plan equity attributed to:
Investment income:
Dividend income .................. $ 20,066 $ 238 $ --
Net realized gain (loss) ......... (33,401) 7,771 --
Net unrealized appreciation
(depreciation) in fair value of
investments .................... (44,171) 57,425 (102,388)
Contributions ...................... 104,652 30,477 296,817
Transfers among funds .............. 553,014 201,204 --
----------- ----------- -----------
Total additions ............. 600,160 297,115 194,429
Deductions from plan equity
attributed to:
Distributions ...................... -- -- --
Transfers among funds .............. (96,585) (48,980) (19)
----------- ----------- -----------
Total deductions ............. (96,585) (48,980) (19)
----------- ----------- -----------
Net increase (decrease) in plan equity 503,575 248,135 194,410
Plan equity at beginning of year ...... -- -- 19
----------- ----------- -----------
Plan equity at end of year ............ $ 503,575 $ 248,135 $ 194,429
=========== =========== ===========
The accompanying notes are an integral part of these financial statements.
12
LINENS 'N THINGS, INC.
DEFERRED COMPENSATION PLAN
Statement of Income and Changes in Plan Equity,
with Fund Information
Year ended December 31, 1999, continued
BT
Putnam Investment Dreyfus Gabelli Strong
Common Stock International International Founders Growth Government
Fund Growth Fund Equity Fund Passport Fund Fund Securities Fund
------------- ------------- ------------- ------------- ------- ---------------
Additions to plan equity attributed to:
Investment income:
Dividend income .................. $ -- $ 1,111 $ -- $ 1,829 $ 745 $ 1,463
Net realized gain (loss) ......... 22,860 9,929 6,622 -- 5,508 (635)
Net unrealized appreciation
(depreciation) in fair value of
investments .................... (2,667) 15,134 13,186 13,008 5,805 (1,245)
Contributions ...................... -- 22,720 39,427 11,212 9,857 19,564
Transfers among funds .............. 221,928 105,476 128,912 6,301 80,085 21,689
--------- --------- --------- --------- --------- ---------
Total additions ............. 242,121 154,370 188,147 32,350 102,000 40,836
Deductions from plan equity
attributed to:
Distributions ...................... -- -- -- -- -- --
Transfers among funds .............. (177,397) (89,822) (137,347) -- (76,278) (59,948)
--------- --------- --------- --------- --------- ---------
Total deductions ............. (177,397) (89,822) (137,347) -- (76,278) (59,948)
--------- --------- --------- --------- --------- ---------
Net increase (decrease) in plan equity 64,724 64,548 50,800 32,350 25,722 (19,112)
Plan equity at beginning of year ...... -- -- -- -- -- 42,918
--------- --------- --------- --------- --------- ---------
Plan equity at end of year ............ $ 64,724 $ 64,548 $ 50,800 $ 32,350 $ 25,722 $ 23,806
========= ========= ========= ========= ========= =========
Liberty Stein
Roe Capital Prudential Stein Roe
Opportunities Equity Growth and
Fund Fund Income Fund
------------- ---------- -----------
Additions to plan equity attributed to:
Investment income:
Dividend income .................. $ -- $ 250 $ 199
Net realized gain (loss) ......... 2,136 -- 510
Net unrealized appreciation
(depreciation) in fair value of
investments .................... 7,197 173 1,787
Contributions ...................... 11,912 3,822 10,658
Transfers among funds .............. 15,300 14,655 15,364
--------- --------- ---------
Total additions ............. 36,545 18,900 28,518
Deductions from plan equity
attributed to:
Distributions ...................... -- -- --
Transfers among funds .............. (13,705) -- (9,814)
--------- --------- ---------
Total deductions ............. (13,705) -- (9,814)
--------- --------- ---------
Net increase (decrease) in plan equity 22,840 18,900 18,704
Plan equity at beginning of year ...... -- -- --
--------- --------- ---------
Plan equity at end of year ............ $ 22,840 $ 18,900 $ 18,704
========= ========= =========
The accompanying notes are an integral part of these financial statements.
13
LINENS 'N THINGS, INC.
DEFERRED COMPENSATION PLAN
Statement of Income and Changes in Plan Equity,
with Fund Information
Year ended December 31, 1999, continued
Montgomery
Short American Neuberger
Duration Century Berman Franklin Strong Schafer
Government Value Genesis International Value
Bond Fund Fund Fund Fund Fund
------------ ----------- ----------- -------------- -----------
Additions to plan equity attributed to:
Investment income:
Dividend income .................. $ 978 $ 1,483 $ 68 $ 130 $ 102
Net realized gain (loss) ......... (150) 1,495 530 2,959 --
Net unrealized appreciation
(depreciation) in fair value of
investments .................... (407) (2,386) 1,197 1,831 (714)
Contributions ...................... 13,285 16,722 9,204 7,316 5,261
Transfers among funds .............. 12,445 9,421 6,594 15,780 5,475
----------- ----------- ----------- ----------- -----------
Total additions ............. 26,151 26,735 17,593 28,016 10,124
Deductions from plan equity
attributed to:
Distributions ...................... -- -- -- -- --
Transfers among funds .............. (9,244) (10,760) (1,157,984) (17,052) --
----------- ----------- ----------- ----------- -----------
Total deductions ............. (9,244) (10,760) (1,157,984) (17,052) --
----------- ----------- ----------- ----------- -----------
Net increase (decrease) in plan equity 16,907 15,975 (1,140,391) 10,964 10,124
Plan equity at beginning of year ...... -- -- 1,153,484 -- --
----------- ----------- ----------- ----------- -----------
Plan equity at end of year ............ $ 16,907 $ 15,975 $ 13,093 $ 10,964 $ 10,124
=========== =========== =========== =========== ===========
Rainier Prudential
Small/Mid Cap Jennison PBHG Emerging
Equity Fund Growth Fund Growth Fund
----------- ----------- -----------
Additions to plan equity attributed to:
Investment income:
Dividend income .................. $ $ 146 $ --
Net realized gain (loss) ......... -- -- --
Net unrealized appreciation
(depreciation) in fair value of
investments .................... 1,912 1,384 2,962
Contributions ...................... 4,928 1,571 2,464
Transfers among funds .............. 1,059 4,430 530
----------- ----------- -----------
Total additions ............. 7,899 7,531 5,956
Deductions from plan equity
attributed to:
Distributions ...................... -- -- --
Transfers among funds .............. -- -- --
----------- ----------- -----------
Total deductions ............. -- -- --
----------- ----------- -----------
Net increase (decrease) in plan equity 7,899 7,531 5,956
Plan equity at beginning of year ...... -- -- --
----------- ----------- -----------
Plan equity at end of year ............ $ 7,899 $ 7,531 $ 5,956
=========== =========== ===========
The accompanying notes are an integral part of these financial statements.
14
LINENS 'N THINGS, INC.
DEFERRED COMPENSATION PLAN
Statement of Income and Changes in Plan Equity,
with Fund Information
Year ended December 31, 1999, continued
Royce
Pennsylvania Command Strong Lazard Prudential
Mutual Money Janus International Equity Money Market
Investors Market Flexible Bond Portfolio Assets
Fund Fund Income Fund Fund Fund Fund
------------ -------- ----------- ------------- --------- ---------
Additions to plan equity attributed to:
Investment income:
Dividend income .................. $ 125 $ 185 $ 543 $ 142 $ 19 $ 138
Net realized gain (loss) ......... 224 -- (413) (502) 4,906 --
Net unrealized appreciation
(depreciation) in fair value of
investments .................... 313 -- (156) (239) 49 713
Contributions ...................... 3,025 -- 3,497 5,816 6,103 --
Transfers among funds .............. 3,296 959,252 8,493 10,593 66,210 --
--------- --------- --------- --------- --------- ---------
Total additions ............. 6,983 959,437 11,964 15,810 77,287 851
Deductions from plan equity
attributed to:
Distributions ...................... -- (954,469) -- -- -- --
Transfers among funds .............. (2,113) (27,276) (8,982) (12,914) (75,684) --
--------- --------- --------- --------- --------- ---------
Total deductions ............. (2,113) (981,745) (8,982) (12,914) (75,684) --
--------- --------- --------- --------- --------- ---------
Net increase (decrease) in plan equity 4,870 (22,308) 2,982 2,896 1,603 851
Plan equity at beginning of year ...... -- 27,087 -- -- -- --
--------- --------- --------- --------- --------- ---------
Plan equity at end of year ............ $ 4,870 $ 4,779 $ 2,982 $ 2,896 $ 1,603 $ 851
========= ========= ========= ========= ========= =========
Robertson
Stephens Invesco Target
Growth & Select Large Cap
Income Income Value
Fund Fund Fund
--------- ------- --------
Additions to plan equity attributed to:
Investment income:
Dividend income .................. $ -- $ 29 $ 68
Net realized gain (loss) ......... 37 (59) 2,965
Net unrealized appreciation
(depreciation) in fair value of
investments .................... -- -- 630
Contributions ...................... 374 730 3,435
Transfers among funds .............. -- 530 32,338
--------- --------- ---------
Total additions ............. 411 1,230 39,436
Deductions from plan equity
attributed to:
Distributions ...................... -- -- --
Transfers among funds .............. (411) (1,230) (39,436)
--------- --------- ---------
Total deductions ............. (411) (1,230) (39,436)
--------- --------- ---------
Net increase (decrease) in plan equity -- -- --
Plan equity at beginning of year ...... -- -- --
--------- --------- ---------
Plan equity at end of year ............ $ -- $ -- $ --
========= ========= =========
The accompanying notes are an integral part of these financial statements.
15
LINENS 'N THINGS, INC.
DEFERRED COMPENSATION PLAN
Statement of Income and Changes in Plan Equity,
with Fund Information
Year ended December 31, 1999
Prudential Prudential T. Rowe
Prudential Mid Cap Emerging Price Scudder
Small Cap Value Growth Blue Chip Value
Fund Fund Fund Growth Fund Fund
---------------- ---------------- ------------- -------------- -------------
Additions to plan equity attributed to:
Investment income:
Dividend income .................. $ -- $ -- $ -- $ -- $ --
Net realized gain (loss) ......... 5,160 84 7,268 -- --
Net unrealized appreciation
(depreciation) in fair value of
investments .................... -- -- -- -- --
Contributions ...................... 3,051 745 3,052 -- --
Transfers among funds .............. 33,447 -- 32,339 -- --
----------- ----------- ----------- ----------- -----------
Total additions ............. 41,658 829 42,659 -- --
Deductions from plan equity
attributed to:
Distributions ...................... -- -- -- -- --
Transfers among funds .............. (41,658) (829) (42,659) (2,162,648) (1,240,677)
----------- ----------- ----------- ----------- -----------
Total deductions ............. (41,658) (829) (42,659) (2,162,648) (1,240,677)
----------- ----------- ----------- ----------- -----------
Net increase (decrease) in plan equity -- -- -- (2,162,648) (1,240,677)
Plan equity at beginning of year ...... -- -- -- 2,162,648 1,240,677
----------- ----------- ----------- ----------- -----------
Plan equity at end of year ............ $ -- $ -- $ -- $ -- $ --
=========== =========== =========== =========== ===========
Warburg Pincus
Emerging Contributions
Growth receivable- Total Plan
Fund participants Equity
---------------- ------------- ----------------
Additions to plan equity attributed to:
Investment income:
Dividend income .................. $ -- $ -- $ 59,146
Net realized gain (loss) ......... -- -- 48,283
Net unrealized appreciation
(depreciation) in fair value of
investments .................... -- -- 650,994
Contributions ...................... -- 9,909 1,439,243
Transfers among funds .............. -- -- 6,035,808
----------- ----------- -----------
Total additions ............. -- 9,909 8,233,474
Deductions from plan equity
attributed to:
Distributions ...................... -- -- (954,469)
Transfers among funds .............. (431,042) (10,531) (6,035,808)
----------- ----------- -----------
Total deductions ............. (431,042) (10,531) (6,990,277)
----------- ----------- -----------
Net increase (decrease) in plan equity (431,042) (622) 1,243,197
Plan equity at beginning of year ...... 431,042 10,531 5,068,406
----------- ----------- -----------
Plan equity at end of year ............ $ -- $ 9,909 $ 6,311,603
=========== =========== ===========
The accompanying notes are an integral part of these financial statements.
16
LINENS 'N THINGS, INC.
DEFERRED COMPENSATION PLAN
Statement of Income and Changes in Plan Equity,
with Fund Information
Year ended December 31, 1998
Linens 'n Neuberger
Things, Inc. T. Rowe Price Scudder Berman Warburg Pincu
Common Stock Blue Chip Value Genesis Emerging
Fund Growth Fund Fund Fund Growth Fund
------------- ------------- ------- --------- ------------
Additions to plan equity attributed to:
Investment income:
Dividend income .................. $ -- $ 7,916 $ 9,668 $ 9,628 $ 44
Net realized gain (loss) ......... 464,610 622,209 38,450 70,451 (37,438)
Net unrealized (depreciation)
appreciation in fair value of
investments .................... (485,901) (186,228) 70,300 (206,292) 46,123
Contributions ...................... 1,979,735 -- -- -- --
Transfers among funds .............. 22,774 525,775 98,932 296,648 8,859
----------- ----------- ----------- ----------- -----------
Total additions ............. 1,981,218 969,672 217,350 170,435 17,588
Deductions from plan equity
attributed to:
Distributions ...................... (1,733,699) -- -- -- --
Transfers among funds .............. (1,696,897) (39,578) (8,801) (39,180) --
----------- ----------- ----------- ----------- -----------
Total deductions ............. (3,430,596) (39,578) (8,801) (39,180) --
----------- ----------- ----------- ----------- -----------
Net (decrease) increase in plan equity (1,449,378) 930,094 208,549 131,255 17,588
Plan equity at beginning of year ...... 1,449,397 1,232,554 1,032,128 1,022,229 413,454
----------- ----------- ----------- ----------- -----------
Plan equity at end of year ............ $ 19 $ 2,162,648 $ 1,240,677 $ 1,153,484 $ 431,042
=========== =========== =========== =========== ===========
Strong
Government Money Contributions
Securities Market receivable-
Fund Fund participants Total
---------- ------ ------------ -----
Additions to plan equity attributed to:
Investment income:
Dividend income .................. $ 4,156 $ 713 $ -- $ 32,125
Net realized gain (loss) ......... 4,354 -- -- 1,162,636
Net unrealized (depreciation)
appreciation in fair value of
investments .................... (1,741) -- -- (763,739)
Contributions ...................... -- 744,705 10,531 2,734,971
Transfers among funds .............. 22,283 1,583,774 -- 2,559,045
----------- ----------- ----------- -----------
Total additions ............. 29,052 2,329,192 10,531 5,725,038
Deductions from plan equity
attributed to:
Distributions ...................... -- (1,583,774) -- (3,317,473)
Transfers among funds .............. (56,258) (718,331) -- (2,559,045)
----------- ----------- ----------- -----------
Total deductions ............. (56,258) (2,302,105) -- (5,876,518)
----------- ----------- ----------- -----------
Net (decrease) increase in plan equity (27,206) 27,087 10,531 (151,480)
Plan equity at beginning of year ...... 70,124 -- -- 5,219,886
----------- ----------- ----------- -----------
Plan equity at end of year ............ $ 42,918 $ 27,087 $ 10,531 $ 5,068,406
=========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements.
17
DEFERRED COMPENSATION PLAN OF
LINENS ’N THINGS, INC.
Notes to Financial Statements
1. Description of the Plan
| The following brief description of the Deferred Compensation Plan of Linens ‘n Things, Inc. (the “Plan”) is provided for general information purposes only. Participants should refer to the Plan documents for more complete information. |
General
| The Plan is sponsored by Linens ‘n Things, Inc., (the “Company”). The Plan was established to enable key employees of the Company to defer compensation, including stock and stock denominated awards, for personal income tax purposes. The participant directed, non-qualified Plan was adopted on December 30, 1996 and is treated as a plan maintained for a select group of management or highly compensated individuals under the Employee Retirement Income Security Act of 1974 (“ERISA”). The Plan is not taxable as a separate entity under the Internal Revenue Code. |
Eligibility and Vesting
| The Plan covers key employees, as designated by the Company. Participation is voluntary and participants can elect to make contributions to the Plan. Participants can defer up to 100% of their annual base pay over the Social Security limit of $76,200 for fiscal 2000, all or part of their bonus or part of any vested restricted stock. Participants are 100% vested in their own deferrals to the Plan at all times. |
Participant Accounts
| An account is maintained for each participant in the Plan which shows the participant’s separate interest in each investment fund of the Plan. Each participant shall elect the allocation of contributions to specific funds within the Plan. The participant’s account is credited, as of the end of each month, with the amount of deferred compensation contributed and the appropriate investment income or loss of each fund. |
| Participants are eligible for distribution of their benefits in cash or Company common stock (if the participant has invested in Company common stock) upon retirement, death, termination of service, in the event of a designated change of control of the Company, election (subject to penalty), and in the event of immediate unexpected financial needs of the participant subject to approval of the Compensation Committee, as the Plan is not subject to the hardship rules of Section 401 of the Internal Revenue Code. In the event of a change in control, payments in settlement of a participant’s account shall be made within fifteen business days following such change in control. |
Grantor Trust
| The Plan is intended to constitute an unfunded plan for deferred compensation purposes. Participants rely solely on the unsecured promise of the Company for plan payments. However, the Company established a Grantor (Rabbi) Trust (the “Trust”) to hold assets which may be used to satisfy its obligations under the Plan. The Trust shall be governed by and subject to the terms of a trust agreement entered into between the Company, as grantor, and the trustee, Prudential Trust Company. Effective January 1, 1999, the trustee of the Plan was changed from Bank of New York to Prudential Trust Company and the Plan assets as of December 31, 1998 of $5,068,406 were transferred to Prudential Trust Company. |
18
DEFERRED COMPENSATION PLAN OF
LINENS ’N THINGS, INC.
Notes to Financial Statements, continued
Recent Accounting Pronouncements
| The Plan is required to adopt Statement of Financial Standards (“SFAS”) No. 133 “Accounting for Derivative Instruments and Hedging Activities” (“SFAS No. 133”). This statement is effective with the first quarter of fiscal years beginning after June 15, 2000. For the Plan, implementation is required for the first quarter of fiscal 2001. The Plan has determined that the implementation of SFAS No. 133 will not have a significant effect on the Plan. |
2. Summary of
Significant Accounting Policies
a) Basis of Presentation
The accompanying financial statements of the Plan have been
prepared on the accrual basis of accounting.
b) Investments
| The Plan’s investments consist of mutual funds, money market funds and a Company common stock fund. The Plan’s investments are presented at their fair market values based on quoted market prices of the funds or their underlying securities. Purchases and sales of investments are recorded on a trade-date basis. Realized gains and losses from security transactions are based on the first-in, first out method. |
3. Plan Termination
| Although the Company has not expressed any intent to terminate the Plan, it may do so at any time. In the event the Plan is terminated, all sums credited to individual accounts would be distributed to participants. |
4. Administrative Expenses
All administrative costs of the Plan are borne by the Company.
5. Use of Estimates and Concentration of Risks
| In preparing the Plan’s financial statements, management has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to present these financial statements in conformity with accounting principles generally accepted in the United States of America. Actual results could differ from those estimates. |
| The assets of the Plan are primarily financial instruments, which are monetary in nature. As a result, interest rates have a more significant impact on the Plan’s performance than the effects of general levels of inflation. Interest rates do not necessarily move in the same direction or in the same magnitude as the prices of goods and services as measured by the consumer price index. Investments are subject to risk conditions of the individual fund objectives, the stock market, interest rates, economic conditions and world affairs. |
6. Investments
A description of the Plan’s investments for the years ended December 31, 2000, 1999 and 1998 are as follows:
19
DEFERRED COMPENSATION PLAN OF
LINENS ’N THINGS, INC.
Notes to Financial Statements, continued
| Alliance Premier Growth A Fund – This fund seeks long-term growth of capital. The fund normally invests at least 85% of assets in domestic equities including stocks, convertibles, and warrants. The portfolio typically holds 40 stocks, 25 of which usually constitute approximately 70% of assets. |
| American Century Income & Growth Fund - This fund seeks dividend growth, current income, and capital appreciation. The fund invests primarily in common stocks selected from a universe of the 1,500 largest companies traded in the United States. |
| American Century Value Fund – This fund seeks long-term capital appreciation. Income is secondary. The fund usually invests at least 80% of assets in equity securities issued by well-established medium and large-size companies. |
| Baron Asset Fund – This fund seeks capital appreciation. The fund invests in companies with market capitalizations between $100 million and $2 billion that the advisor believes have undervalued assets or favorable growth prospects. |
| Command Money Market Fund – This money market fund seeks capital preservation and current income. |
| Davis New York Venture Fund – This fund seeks growth of capital. The fund invests primarily in equities issued by companies with market capitalization of at least $250 million, though it may also hold securities of smaller companies. |
| Deutsche and Investment International Fund – This fund, previously called BT Investment International Equity Fund, seeks long-term capital appreciation. The fund normally invests at least 65% of assets in equities issued by companies domiciled in at least three foreign countries. It may invest in securities of emerging market countries. |
| Dreyfus Appreciation Fund – This fund seeks long-term growth consistent with the preservation of capital; current income is secondary. The fund invests primarily in common stocks of domestic and foreign issues, common stocks with warrants attached, and debt securities of foreign governments. |
| Dreyfus Founders Passport Fund – This fund seeks capital appreciation. The fund normally invests at least 65% of assets in equity securities trading on foreign markets and issued by companies that are either domiciled outside the U.S., or that derive at least one third of assets in companies with market capitalizations of $550 million or less. |
| Franklin International Fund – This fund seeks long-term growth of capital. The fund normally invests at least 65% of assets in equity securities trading on foreign markets and issued by companies that are either domiciled outside the U.S., or that derive at least 50% of their revenue or pretax income from activities outside the U.S. |
| Franklin Small Cap Growth Fund – This fund seeks long-term capital appreciation. The fund normally invests at least 65% of assets in equity issues of companies that have market capitalization of less than $1 billion. It seeks to invest at least one third of assets in companies with market capitalizations of $550 million or less. |
| Gabelli Growth Fund – This fund seeks capital appreciation; current income is a secondary consideration. The fund invests in a diversified portfolio of readily marketable common stocks and convertibles. It invests primarily in securities that management believes to be undervalued and have favorable prospects for earnings growth. |
20
DEFERRED COMPENSATION PLAN OF
LINENS ’N THINGS, INC.
Notes to Financial Statements, continued
| Invesco Select Income Fund – This fund seeks a high level of current income. The fund normally invests at least 90% of assets in bonds and marketable debt of established companies, and in government and municipal issues. It normally invests at least 50% of assets in investment-grade securities. |
| Janus Flexible Income Fund – This fund seeks total return, primarily through income, consistent with capital preservation. The fund ordinarily invests at least 80% of assets in income-producing securities. It may purchase domestic and foreign corporate or government securities of any credit rating or maturity. |
| Janus Invest 20 Fund – This fund seeks capital appreciation consistent with preservation of capital. The fund invests primarily in a concentrated portfolio of between 20 and 30 stocks. The fund is non-diversified. |
| Lazard Equity Portfolio Fund – This fund seeks capital appreciation. The fund normally invests at least 65% of assets in equity securities. It typically invests in companies with market capitalizations of at least $250 million that management judges to be undervalued relative to the productivity of their equity and/or assets. |
| Liberty Stein Roe Capital Opportunities Fund – This fund seeks long-term capital appreciation. The fund invests primarily in equity securities, though it may put up to 35% of assets in debt securities. It may invest in securities of established companies, as well as those of smaller companies that may benefit from new products, technological developments, or management changes. |
| Linens ’n Things, Inc. Common Stock Fund -- This fund consists of the Company's common stock. |
| Montgomery Short Duration Government Bond Fund – This fund seeks total return consistent with capital preservation. The fund normally invests at least 65% of assets in U.S. government obligations. |
| Neuberger Berman Genesis Fund – This fund seeks capital appreciation. The fund invests primarily in common stocks of companies with market capitalizations less than $1.5 billion at the time of purchase. |
| Oakmark Fund – This fund seeks long-term capital appreciation. The fund principally invests in United States securities. It may invest up to 25% of assets in foreign securities. |
| PBHG Emerging Growth Fund – This fund seeks long-term growth of capital. The fund normally invests at least 65% of assets in common stocks of U.S. companies with capitalizations or revenues of up to $500 million. |
| Prudential Emerging Growth Fund – This fund seeks long-term capital appreciation. The fund normally invests at least 65% of assets in equities issued by small and mid-sized U.S. companies, with market capitalizations ranging between $500 million and $4.5 billion. |
| Prudential Equity Fund – This fund seeks long-term growth of capital. The fund invests primarily of common stocks of major, established companies. It may also invest in preferred stocks, convertibles, and debt securities. |
| Prudential Jennison Growth Fund – This fund seeks long-term growth of capital. The fund normally invests at least 65% of assets in equities issued by companies with market capitalizations exceeding $1 billion. |
| Prudential Mid Cap Value Fund – This fund seeks long-term capital growth. The fund normally invests at least 65% of assets in equity securities of mid capitalization companies that the advisor believes to be undervalued. |
Prudential Money Market Assets Fund – This money market fund seeks capital preservation and current income.
21
DEFERRED COMPENSATION PLAN OF
LINENS ’N THINGS, INC.
Notes to Financial Statements, continued
| Prudential Small Cap Fund – This fund seeks capital growth. The fund invests primarily in common stocks selected for their low valuations relative to the companies’ earnings, assets, cash flow, and dividends. Although the fund may invest in companies of any size, it typically focuses on companies with market capitalizations of less than $1.5 billion. |
| Putnam International Growth Fund – This fund seeks capital appreciation. The fund normally invests at least 65% of assets in equity securities of companies located outside of the United States. It may invest in companies of any size that it judges to be in a strong growth trend or that it believes to be undervalued. |
| Rainier Small/Mid Cap Equity Fund – This fund seeks long-term capital appreciation. The fund normally invests at least 65% of assets in equities issued by companies with small and medium market capitalizations. |
| Robertson Stephens Growth & Income Fund – This fund seeks long-term total return. The fund invests primarily in equity and debt securities. Management intends to focus on common stocks issued by companies with market capitalizations of $3 billion or less, but may also invest in larger companies. Investments may include preferred stocks, convertible securities, bonds, and notes. |
| Royce Pennsylvania Mutual Investors Fund – This fund seeks long-term growth of capital; income is incidental. The fund normally invests at least 65% of assets in common stocks and convertible securities issued by companies with market capitalizations under $1 billion. |
| Scudder Value Fund -- The fund seeks long-term growth of capital through investment in equity securities that the fund considers undervalued in the marketplace. The fund invests in common stocks, preferred stocks, and securities convertible into common stocks. It invests primarily in the equity securities of medium-to-large-sized U.S. companies with annual revenues or market capitalization of at least $600 million. |
| Stein Roe Growth and Income Fund – This fund seeks capital growth and current income. The fund invests primarily in equity securities issued by companies with market capitalizations in excess of $1 billion. Its investments may include common stocks, preferred stocks, convertible securities, and warrants or rights to purchase common stocks. |
| Strong Government Securities Fund -- The fund seeks total return by investing for a high level of current income with a moderate degree of share-price fluctuation. The fund invests primarily in higher quality bonds issued by the U.S. government or its agencies. |
| Strong International Bond Fund – This fund seeks total return. The fund normally invests at least 65% of assets in investment-grade debt securities of issuers in at least three foreign countries. It may invest up to 35% of assets in securities rated below investment-grade, but no lower than C. |
| Strong Schafer Value Fund – This fund seeks long-term capital appreciation; current income is a secondary consideration. The fund invests primarily in common stocks of established companies. In selecting securities, management focuses on companies that it believes to have strong financial positions and low stock market valuations relative to their intrinsic investment values. |
| Target Large Cap Value Fund – This fund seeks total return consisting of capital appreciation and dividend income. The fund normally invests at least 80% of assets in common stocks and convertible securities; it invests at least 65% of assets in dividend-paying common stocks. It invests at least 65% of assets in common stocks issued by companies with large market capitalizations. |
Target Portfolio Trust – This money market fund seeks capital preservation and current income.
| T. Rowe Price Blue Chip Growth Fund -- The fund’s objective is long-term capital growth. The fund’s strategy is to invest primarily in common stocks of large and medium-sized blue chip companies that have the potential for above-average growth in earnings and are well established in their respective industries. |
22
DEFERRED COMPENSATION PLAN OF
LINENS ’N THINGS, INC.
Notes to Financial Statements, continued
Van Kampen Comstock Fund – This fund seeks capital growth and income. Investments are primarily in common stocks, but the fund may invest up to 10% of its assets in high quality short-term debt or investment grade corporate or government bonds.
Warburg Pincus Emerging Growth Fund -- The fund seeks maximum capital appreciation. The fund invests in U.S. equity securities of emerging growth companies. Emerging growth companies are small or medium sized companies that have passed their start-up phase, show positive earnings, and offer the potential for accelerated earnings growth.
23
DEFERRED COMPENSATION PLAN OF
LINENS ’N THINGS, INC.
Notes to Financial Statements, continued
| At December 31, 2000 and 1999, there were 18 and 17 participants in the Plan, respectively. The following table summarizes the number of participants in each fund at December 31, 2000 and 1999: |
Number of Participants
Fund 12/31/00 12/31/99
-----------------------------------------------------------------------------------------
Davis New York Venture Fund 16 15
Dreyfus Appreciation Fund 10 11
Alliance Premier Growth A Fund 17 16
American Century Income & Growth Fund 13 11
Janus Invest 20 Fund 2 1
Baron Asset Fund 10 9
Linens 'n Things, Inc. Common Stock Fund 4 3
Franklin Small Cap Growth Fund 10 10
Common Stock Fund 1 1
Prudential Emerging Growth Fund 2 0
Strong Government Securities Fund 4 3
American Century Value Fund 7 7
Deutsche and Investment International Fund 9 8
Putnam International Growth Fund 6 16
Montgomery Short Duration Government Bond Fund 2 1
Gabelli Growth Fund 3 2
Prudential Equity Fund 1 1
Liberty Stein Roe Capital Opportunities Fund 7 4
Franklin International Fund 5 4
Strong Schafer Value Fund 3 2
Dreyfus Founders Passport Fund 5 3
Command Money Market Fund 17 11
Stein Roe Growth and Income Fund 3 3
Rainier Small/Mid Cap Equity Fund 1 1
Neuberger Berman Genesis Fund 2 2
PBHG Emerging Growth Fund 1 1
Prudential Jennison Growth Fund 4 3
Lazard Equity Portfolio Fund 2 1
Strong International Bond Fund 1 1
Royce Pennsylvania Mutual Investors Fund 2 1
Van Kampen Comstock Fund 1 0
Prudential Money Market Assets Fund 1 0
Robertston Stephens Growth & Income Fund 1 0
Janus Flexible Income Fund 1 2
Target Portfolio Trust 2 0
Oakmark Fund 0 1
24
DEFERRED COMPENSATION PLAN OF
LINENS ’N THINGS, INC.
Notes to Financial Statements, continued
| The aggregate costs, aggregate proceeds from sales and the net realized gains (losses) by fund for the years ended December 31, 2000, 1999 and 1998 were as follows: |
2000 Dispositions
-----------------
Net Realized Gain
Fund Cost Proceeds (Loss)
--------------------------------------------------- ------------------- -------------------- ----------------------
Oakmark Fund $782,984 $572,498 $(210,486)
Janus Invest 20 Fund 137,990 203,413 65,423
Baron Asset Fund 99,750 90,983 (8,767)
Alliance Premier Growth A Fund 51,376 54,579 3,203
Putnam International Growth Fund 51,206 59,128 7,922
Franklin Small Cap Growth Fund 42,880 71,191 28,311
Common Stock Fund 41,635 55,240 13,605
Deutsche & Investment International Fund 37,926 42,325 4,399
Liberty Stein Roe Capital Opportunities Fund 30,442 34,930 4,488
Davis New York Venture Fund 26,834 27,651 817
Neuberger Berman Genesis Fund 25,946 26,911 965
American Century Income & Growth Fund 13,784 13,899 115
Royce Pennsylvania Mutual Investors Fund 13,265 13,406 141
Dreyfus Appreciation Fund 11,294 13,376 2,082
Dreyfus Founders Passport Fund 10,281 14,494 4,213
Janus Flexible Income Fund 7,629 7,448 (181)
Strong International Bond Fund 4,098 3,787 (311)
Strong Government Securities Fund 3,704 3,704 0
Gabelli Growth Fund 1,385 1,769 384
PBGH Emerging Growth Fund 1,343 3,517 2,174
Prudential Jennison Growth Fund 672 866 194
Franklin International Fund 231 247 16
Rainer Small/Mid Cap Equity Fund 40 57 17
------------------- -------------------- ----------------------
$1,396,695 $1,315,419 $(81,276)
=================== ==================== ======================
25
DEFERRED COMPENSATION PLAN OF
LINENS ’N THINGS, INC.
Notes to Financial Statements, continued
1999 Dispositions
-----------------
Net Realized
Fund Cost Proceeds Gain (Loss)
--------------------------------------------------- ----------------- ----------------- ------------------
T. Rowe Price Blue Chip Growth Fund $2,162,648 $2,162,648 $ 0
Scudder Value Fund 1,240,677 1,240,677 0
Neuberger Berman Genesis Fund 1,157,454 1,157,984 530
Warburg Pincus Emerging Growth Fund 431,042 431,042 0
BT Investment International Equity Fund 130,725 137,347 6,622
Oakmark Fund 129,986 96,585 (33,401)
Common Stock Fund 154,537 177,397 22,860
Putnam International Growth Fund 79,893 89,822 9,929
Lazard Equity Portfolio Fund 70,778 75,684 4,906
Gabelli Growth Fund 70,770 76,278 5,508
Franklin Small Cap Growth Fund 41,209 48,980 7,771
Prudential Small Cap Fund 36,498 41,658 5,160
Target Large Cap Value Fund 36,470 39,435 2,965
Prudential Emerging Growth Fund 35,391 42,659 7,268
Command Money Market Fund 27,277 27,277 0
Strong Government Securities Fund 60,583 59,948 (635)
American Century Income & Growth Fund 16,634 18,039 1,405
Franklin International Fund 14,093 17,052 2,959
Liberty Stein Roe Capital Opportunities Fund 11,569 13,705 2,136
Strong International Bond Fund 13,416 12,914 (502)
26
DEFERRED COMPENSATION PLAN OF
LINENS ’N THINGS, INC.
Notes to Financial Statements, continued
1999 Dispositions, continued
Net Realized
Fund Cost Proceeds Gain (Loss)
------------------------------------------------------- ---------------- ---------------- ---------------
Janus Flexible Income Fund $ 9,395 $ 8,982 $ (413)
Montgomery Short Duration Government Bond Fund 9,394 9,244 (150)
Stein Roe Growth and Income Fund 9,304 9,814 510
American Century Value Fund 9,265 10,760 1,495
Davis New York Venture Fund 4,557 5,073 516
Alliance Premier Growth A Fund 4,457 4,767 310
Dreyfus Appreciation Fund 4,105 4,290 185
Royce Pennsylvania Mutual Investors Fund 1,889 2,113 224
Invesco Select Income Fund 1,287 1,228 (59)
Prudential Mid Cap Value Fund 745 829 84
Baron Asset Fund 551 614 63
Robertson Stephens Growth & Income Fund 374 411 37
Linens 'n Things, Inc. Common Stock Fund 19 19 0
---------------- ---------------- -----------------
$5,976,992 $6,025,275 $48,283
================ ================ =================
27
DEFERRED COMPENSATION PLAN OF
LINENS ’N THINGS, INC.
Notes to Financial Statements, continued
1998 Dispositions, Continued
Net Realized
Fund Cost Proceeds Gain (Loss)
-------------------------------------------- ---------------- ---------------- -----------------
Linens 'n Things, Inc. Common Stock Fund $2,966,260 $3,430,870 $464,610
T. Rowe Price Blue Chip Growth Fund 1,607,073 2,229,282 622,209
Scudder Value Fund 1,256,095 1,294,545 38,450
Neuberger Berman Genesis Fund 1,149,039 1,219,490 70,451
Warburg Pincus Emerging Growth Fund 468,436 430,998 (37,438)
Strong Government Securities Fund 95,705 100,059 4,354
Money Market Fund 27,086 27,086 -
---------------- ---------------- -----------------
$7,569,694 $8,732,330 $1,162,636
================ ================ =================
28
SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of 1934, the members of the Deferred Compensation Committee (which is the administrative committee for the Compensation Committee of the Board of Directors of the Company) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.
Deferred Compensation Plan of
Linens ’n Things, Inc.
Deferred Compensation Committee
By: BRIAN D. SILVA
Brian D. Silva
Senior Vice President, Human Resources
and Corporate Secretary and Member of
the Deferred Compensation Committee
Dated: June 29, 2001
Exhibit No Description
23 Consent of KPMG, LLP