UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
(Mark One)
[ X ] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 [NO FEE REQUIRED].
For the Fiscal year ended December 31, 1999
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 [NO FEE REQUIRED].
For the transition period from to .
------------- ------------------
Commission file number 1-12381
A. Full title of the plan and the address of the plan, if different
from that of the issuer named below:
Deferred Compensation Plan of Linens 'n Things, Inc.
B. Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
Linens 'n Things, Inc.
6 Brighton Road
Clifton, NJ 07015
<PAGE>
DEFERRED COMPENSATION PLAN OF
LINENS 'N THINGS, INC.
Required Information
A. Financial Statements Page No.
--------
Independent Auditors' Report 3
Statements of Financial Condition
as of December 31, 1999 and 1998 4-5
Statements of Income and Changes in Plan Equity, with
Fund Information, for the Years Ended December 31, 1999,
1998 and 1997 6-12
Notes to Financial Statements 13-22
B. Exhibits
23. Independent Accountants' Consent 24
<PAGE>
Independent Auditors' Report
Compensation Committee
Linens 'n Things, Inc.
Deferred Compensation Plan 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, 1999 and 1998, and the related statements of income and changes in plan
equity for each of the years in the three-year period ended December 31, 1999.
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 generally accepted auditing
standards. 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 as of December 31, 1999 and 1998
and the income and changes in plan equity for each of the years in the
three-year period ended December 31, 1999 in conformity with generally accepted
accounting principles.
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 plan 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
May 25, 2000
<PAGE>
<TABLE>
<CAPTION>
Linens 'n Things, Inc.
Deferred Compensation Plan
Statements of Financial Condition
December 31, 1999 December 31, 1998
------------------ ------------------
Assets:
<S> <C> <C>
Alliance Premier Growth A Fund (cost $876,795 in 1999) $ 998,119 $ 0
Davis New York Venture Fund (cost $825,070 in 1999) 930,373 0
Janus Invet 20 Fund (cost $583,362 in 1999) 840,375 0
Dreyfus Appreciation Fund (cost $770,874 in 1999) 821,985 0
American Century Income & Growth Fund (cost $702,912 in 1999) 806,581 0
Baron Asset Fund (cost $460,708 in 1999) 529,298 0
Oakmark Fund (cost $620,995 in 1999) 503,575 0
Franklin Small Cap Growth Fund (cost $170,987 in 1999) 248,135 0
Linens 'n Things, Inc. Common Stock Fund (cost $296,817 in 1999 and $19 in 1998) 194,429 19
Common Stock Fund (cost $67,391 in 1999) 64,724 0
Putnam International Growth Fund (cost $45,079 in 1999) 64,548 0
BT Investment International Equity Fund (cost $37,614 in 1999) 50,800 0
Dreyfus Founders Passport Fund (cost $23,095 in 1999) 32,350 0
Gabelli Growth Fund (cost $21,735 in 1999) 25,722 0
Strong Government Securities Fund (cost $23,775 in 1999 and $42,918 in 1998) 23,806 42,918
Liberty Stein Roe Capital Opportunities Fund (cost $20,574 in 1999) 22,840 0
Prudential Equity Fund (cost $20,874 in 1999) 18,900 0
Stein Roe Growth and Income Fund (cost $15,174 in 1999) 18,704 0
Montgomery Short Duration Government Bond Fund (cost $16,036 in 1999) 16,907 0
American Century Value Fund (cost $13,482 in 1999) 15,975 0
Neuberger & Berman Genesis Fund (cost $11,896 in 1999 and $1,153,484 in 1998) 13,093 1,153,484
Franklin International Fund (cost $9,244 in 1999) 10,964 0
Strong Schafer Value Fund (cost $10,838 in 1999) 10,124 0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Linens 'n Things, Inc.
Deferred Compensation Plan
Statements of Financial Condition, continued
December 31, 1999 December 31, 1998
------------------ ------------------
<S> <C> <C>
Rainier Small/Mid Cap Equity Fund (cost $5,987 in 1999) $ 7,899 $ 0
Prudential Jennison Growth Fund (cost $6,317 in 1999) 7,531 0
PBHG Emerging Growth Fund (cost $3,186 in 1999) 5,956 0
Royce Pennsylvania Mutual Investors Fund (cost $4,738 in 1999) 4,870 0
Command Money Market Fund (cost $4,985 in 1999 and $27,087 in 1998) 4,779 27,087
Janus Flexible Income Fund (cost $3,133 in 1999) 2,982 0
Strong International Bond Fund (cost $3,134 in 1999) 2,896 0
Lazard Equity Portfolio Fund (cost $1,649 in 1999) 1,603 0
Prudential Money Mart Assets Fund (cost $851 in 1999) 851 0
T. Rowe Price Blue Chip Growth Fund (cost $2,162,648 in 1998) 0 2,162,648
Scudder Value Fund (cost $1,240,677 in 1998) 0 1,240,677
Warburg Pincus Emerging Growth Fund (cost $431,042 in 1998) 0 431,042
------------------ ------------------
Total investments 6,301,694 5,057,875
Contributions receivable - participants 9,909 10,531
------------------ ------------------
Total plan equity $6,311,603 $5,068,406
================== ==================
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
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 Invet Appreciation Century Income
Growth A Fund Venture Fund 20 Fund Fund & Growth Fund
------------- ------------ ----------- ------------- ----------------
Additions to plan equity attributed to:
<S> <C> <C> <C> <C> <C>
Investment income:
Dividend income ..................... $ 12,553 $ 1,974 $ 1,806 $ 4,145 $ 8,611
Net realized gain (loss) ............ 310 516 -- 185 1,405
Net unrealized appreciation
(depreciation) in fair value
of investments .................... 123,623 89,858 296,021 41,259 79,794
Contributions ......................... 165,049 165,741 104,652 128,524 127,899
Transfers among funds ................. 701,351 677,357 437,896 652,162 606,911
----------- --------- --------- --------- ---------
Total additions ................ 1,002,886 935,446 840,375 826,275 824,620
Deductions from plan equity attributed to:
Distributions ......................... -- -- -- -- --
Transfers among funds ................. (4,767) (5,073) -- (4,290) (18,039)
----------- --------- --------- --------- ---------
Total deductions ................ (4,767) (5,073) -- (4,290) (18,039)
----------- --------- --------- --------- ---------
Net increase (decrease) in plan equity.... 998,119 930,373 840,375 821,985 806,581
Plan equity at beginning of year ......... -- -- -- -- --
----------- --------- --------- --------- ---------
Plan equity at end of year ............... $ 998,119 $ 930,373 $ 840,375 $ 821,985 $ 806,581
=========== ========= ========= ========= =========
<PAGE>
<CAPTION>
Linens 'n
Franklin Small Things, Inc.
Baron Asset Oakmark Cap Growth Common Stock
Fund Fund Fund Fund
----------- ----------- ----------------- ---------------
<S> <C> <C> <C> <C>
Additions to plan equity attributed to
Investment income:
Dividend income ..................... $ -- $ 20,066 $ 238 $ --
Net realized gain (loss) ............ 63 (33,401) 7,771 --
Net unrealized appreciation
(depreciation) in fair value
of investments .................... 50,106 (44,171) 57,425 (102,388)
Contributions ......................... 85,772 104,652 30,477 296,817
Transfers among funds ................. 393,971 553,014 201,204 --
--------- --------- --------- ---------
Total additions ................ 529,912 600,160 297,115 194,429
Deductions from plan equity attributed to:
Distributions ......................... -- -- -- --
Transfers among funds ................. (614) (96,585) (48,980) (19)
--------- --------- --------- ---------
Total deductions ................ (614) (96,585) (48,980) (19)
--------- --------- --------- ---------
Net increase (decrease) in plan equity.... 529,298 503,575 248,135 194,410
Plan equity at beginning of year ......... -- -- -- 19
--------- --------- --------- ---------
Plan equity at end of year ............... $ 529,298 $ 503,575 $ 248,135 $ 194,429
========= ========= ========= =========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
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
Common Inter- Inter- Founders Gabelli
Stock national national Passport Growth
Fund Growth Fund Equity Fund Fund Fund
---- ----------- ----------- -------- -------
Additions to plan equity attributed to:
<S> <C> <C> <C> <C> <C>
Investment income:
Dividend income ..................... $ -- $ 1,111 $ -- $ 1,829 $ 745
Net realized gain (loss) ............ 22,860 9,929 6,622 -- 5,508
Net unrealized appreciation
(depreciation) in fair value
of investments .................... (2,667) 15,134 13,186 13,008 5,805
Contributions ......................... -- 22,720 39,427 11,212 9,857
Transfers among funds ................. 221,928 105,476 128,912 6,301 80,085
--------- --------- --------- -------- ---------
Total additions ................ 242,121 154,370 188,147 32,350 102,000
Deductions from plan equity attributed to:
Distributions ......................... -- -- -- -- --
Transfers among funds ................. (177,397) (89,822) (137,347) -- (76,278)
--------- --------- --------- -------- ---------
Total deductions ................ (177,397) (89,822) (137,347) -- (76,278)
--------- --------- --------- -------- ---------
Net increase (decrease) in plan equity.... 64,724 64,548 50,800 32,350 25,722
Plan equity at beginning of year ......... -- -- -- -- --
--------- --------- --------- -------- ---------
Plan equity at end of year ............... $ 64,724 $ 64,548 $ 50,800 $ 32,350 $ 25,722
========= ========= ========= ======== =========
<PAGE>
<CAPTION>
Liberty
Strong Stein Roe Stein Roe
Government Capital Prudential Growth and
Securities Opportunities Equity Income
Fund Fund Fund Fund
---- ---- ---- ----
Additions to plan equity attributed to:
<S> <C> <C> <C> <C>
Investment income:
Dividend income ..................... $ 1,463 $ -- $ 250 $ 199
Net realized gain (loss) ............ (635) 2,136 -- 510
Net unrealized appreciation
(depreciation) in fair value
of investments .................... (1,245) 7,197 173 1,787
Contributions ......................... 19,564 11,912 3,822 10,658
Transfers among funds ................. 21,689 15,300 14,655 15,364
-------- -------- -------- ---------
Total additions ................ 40,836 36,545 18,900 28,518
Deductions from plan equity attributed to:
Distributions ......................... -- -- -- --
Transfers among funds ................. (59,948) (13,705) -- (9,814)
-------- -------- -------- ---------
Total deductions ................ (59,948) (13,705) -- (9,814)
-------- -------- -------- ---------
Net increase (decrease) in plan equity.... (19,112) 22,840 18,900 18,704
Plan equity at beginning of year ......... 42,918 -- -- --
-------- -------- -------- --------
Plan equity at end of year ............... $ 23,806 $ 22,840 $ 18,900 $ 18,704
======== ======== ======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
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 & Franklin Strong
Duration Century Berman Inter- Schafer
Government Value Genesis national Value
Bond Fund Fund Fund Fund Fund
--------- ---- ---- ---- ----
Additions to plan equity attributed to:
<S> <C> <C> <C> <C> <C>
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
======== ======== =========== ======== =========
<PAGE>
<CAPTION>
Rainier Prudential
Small/Mid Cap Jennison PBHG Emerging
Equity Fund Growth Fund Growth Fund
----------- ----------- -----------
Additions to plan equity attributed to:
<S> <C> <C> <C>
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
======= ======= =======
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
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 Janus Strong
Mutual Money Flexible International Lazard Equity
Investors Fund Market Fund Income Fund Bond Fund Portfolio Fund
-------------- ----------- ----------- --------- --------------
<S> <C> <C> <C> <C> <C>
Additions to plan equity attributed to:
Investment income:
Dividend income ..................... $ 125 $ 185 $ 543 $ 142 $ 19
Net realized gain (loss) ............ 224 -- (413) (502) 4,906
Net unrealized appreciation
(depreciation) in fair value
of investments .................... 313 -- (156) (239) 49
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
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
Plan equity at beginning of year ......... -- 27,087 -- -- --
------- --------- -------- -------- --------
Plan equity at end of year ............... $ 4,870 $ 4,779 $ 2,982 $ 2,896 $ 1,603
======= ========= ======== ======== ========
<PAGE>
<CAPTION>
Robertson
Prudential Stephens Invesco Target Large
Money Mart Growth & Select Cap Value
Assets Fund Income Fund Income Fund Fund
----------- ----------- ----------- -------------
Additions to plan equity attributed to:
<S> <C> <C> <C> <C>
Investment income:
Dividend income ..................... $ 138 $ -- $ 29 $ 68
Net realized gain (loss) ............ -- 37 (59) 2,965
Net unrealized appreciation
(depreciation) in fair value
of investments .................... 713 -- -- 630
Contributions ......................... -- 374 730 3,435
Transfers among funds ................. -- -- 530 32,338
----- ------ --------- ---------
Total additions ................ 851 411 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.... 851 -- -- --
Plan equity at beginning of year ......... -- -- -- --
----- ------ --------- ----------
Plan equity at end of year ............... $ 851 $ -- $ -- $ --
===== ====== ========= ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
LINENS 'N THINGS, INC.
DEFERRED COMPENSATION PLAN
Statement of Income and Changes in Plan Equity, with Fund Information
Year ended December 31, 1999
T. Rowe
Prudential Prudential Prudential Price Scudder
Small Cap Mid Cap Value Emerging Blue Chip Value
Fund Fund Growth Fund Growth Fund Fund
----------- ---------------- ------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
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 ............... $ -- $ -- $ -- $ -- $ --
========= ===== ======== =========== ===========
<PAGE>
<CAPTION>
Warburg Pincus Contributions
Emerging receivable- Total Plan
Growth Fund participants Equity
----------- ------------ ------------
Additions to plan equity attributed to:
<S> <C> <C> <C>
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
========= ======== ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
LINENS 'N THINGS, INC.
DEFERRED COMPENSATION PLAN
Statement of Income and Changes in Plan Equity, with Fund Information
Year ended December 31, 1998
Neuberger
Linens 'n &
Things, Inc. T. Rowe Price Scudder Berman Warburg Pincus
Common Stock Blue Chip Value Genesis Emerging
Fund Growth Fund Fund Fund Growth Fund
------------------------------ ---------------------------------------------------
<S> <C> <C> <C> <C> <C>
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
=========== =========== =========== =========== ==========
<PAGE>
<CAPTION>
Strong
Government Money Contributions
Securities Market receivable-
Fund Fund participants Total
---------- ----- ------------ -----
Additions to plan equity attributed to:
<S> <C> <C> <C>> <C>
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
========= ============ ========= ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
LINENS 'N THINGS, INC.
DEFERRED COMPENSATION PLAN
Statement of Income and Changes in Plan Equity, with Fund Information
Year ended December 31, 1997
Neuberger
Linens 'n &
Things, Inc. T. Rowe Price Scudder Berman Warburg Pincus
Common Stock Blue Chip Value Genesis Emerging
Fund Growth Fund Fund Fund Growth Fund
------------- --------------- ------------ ------------- --------------
<S> <C> <C> <C> <C> <C>
Additions to plan equity attributed to:
Investment income:
Dividend income ..................... $ -- $ 6,083 $ 10,275 $ -- $ --
Net realized (loss) gain ............ (258) 168,183 70,646 60,188 24,514
Net unrealized appreciation
(depreciation) in fair
value of investments ........... 485,900 186,228 (70,299) 206,292 (46,123)
Contributions ......................... 977,097 1,148,256 60,679 326,167 6,671
Transfers among funds ................. -- 814,450 960,827 608,014 428,392
----------- ------------ ----------- ----------- ---------
Total additions ................ 1,462,739 2,323,200 1,032,128 1,200,661 413,454
Deductions from plan equity attributed to:
Distributions ......................... (13,342) (46,044) -- (10,509) --
Transfers among funds ................. -- (1,044,602) -- (167,923) --
----------- ------------ ----------- ----------- ---------
Total deductions ................ (13,342) (1,090,646) -- (178,432) --
----------- ------------ ----------- ----------- ---------
Net increase in plan equity .............. 1,449,397 1,232,554 1,032,128 1,022,229 413,454
Plan equity at beginning of year ......... -- -- -- -- --
----------- ------------ ----------- ----------- ---------
Plan equity at end of year ............... $ 1,449,397 $ 1,232,554 $ 1,032,128 $ 1,022,229 $ 413,454
=========== ============ =========== =========== =========
<PAGE>
<CAPTION>
Strong
Government Money
Securities Market
Fund Fund Total
---- ---- -----
Additions to plan equity attributed to:
<S> <C> <C> <C>
Investment income:
Dividend income ..................... $ 5,896 $ 30,321 $ 52,575
Net realized (loss) gain ............ 3,745 (2,496) 324,522
Net unrealized appreciation
(depreciation) in fair
value of investments ........... 1,741 -- 763,739
Contributions ......................... 163,084 3,101,951 5,783,905
Transfers among funds ................. 69,939 1,382,681 4,264,303
--------- ----------- ------------
Total additions ................ 244,405 4,512,457 11,189,044
Deductions from plan equity attributed to:
Distributions ......................... (4,125) (1,630,835) (1,704,855)
Transfers among funds ................. (170,156) (2,881,622) (4,264,303)
--------- ----------- ------------
Total deductions ................ (174,281) (4,512,457) (5,969,158)
--------- ----------- ------------
Net increase in plan equity .............. 70,124 -- 5,219,886
Plan equity at beginning of year ......... -- -- --
--------- ----------- ------------
Plan equity at end of year ............... $ 70,124 $ -- $ 5,219,886
========= =========== ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
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 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.
<PAGE>
DEFERRED COMPENSATION PLAN OF
LINENS 'N THINGS, INC.
Notes to Financial Statements, continued
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. Purchases and sales of investments are recorded
on a trade-date basis. Realized gains and losses from security
transactions are reported 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 generally
accepted accounting principles. 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, 1999, 1998 and 1997 are as follows:
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.
<PAGE>
DEFERRED COMPENSATION PLAN OF
LINENS 'N THINGS, INC.
Notes to Financial Statements, continued
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.
BT Investment International Equity Fund - This 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.
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 Invet 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.
<PAGE>
DEFERRED COMPENSATION PLAN OF
LINENS 'N THINGS, INC.
Notes to Financial Statements, continued
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 Mart Assets Fund - This money market fund seeks
capital preservation and current income.
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.
<PAGE>
DEFERRED COMPENSATION PLAN OF
LINENS 'N THINGS, INC.
Notes to Financial Statements, continued
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.
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.
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.
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.
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.
<PAGE>
DEFERRED COMPENSATION PLAN OF
LINENS 'N THINGS, INC.
Notes to Financial Statements, continued
At December 31, 1999 and 1998, there were 17 and 13 participants in the
Plan, respectively. The following table summarized the number of
participants in each fund at December 31, 1999 and 1998:
<TABLE>
<CAPTION>
Number of Participants
Fund 12/31/99 12/31/98
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Alliance Premier Growth A Fund 16 0
Davis New York Venture Fund 15 0
Janus Invet 20 Fund 1 0
Dreyfus Appreciation Fund 11 0
American Century Income & Growth Fund 11 0
Baron Asset Fund 9 0
Oakmark Fund 1 0
Franklin Small Cap Growth Fund 10 0
Linens 'n Things, Inc. Common Stock Fund 3 1
Common Stock Fund 1 0
Putnam International Growth Fund 16 0
BT Investment International Equity Fund 8 0
Dreyfus Founders Passport Fund 3 0
Gabelli Growth Fund 2 0
Strong Government Securities Fund 3 3
Liberty Stein Roe Capital Opportunities Fund 4 0
Prudential Equity Fund 1 0
Stein Roe Growth and Income Fund 3 0
Montgomery Short Duration Government Bond Fund 1 0
American Century Value Fund 7 0
Neuberger & Berman Genesis Fund 2 9
Franklin International Fund 4 0
Strong Schafer Value Fund 2 0
Rainier Small/Mid Cap Equity Fund 1 0
Prudential Jennison Growth Fund 3 0
PBHG Emerging Growth Fund 1 0
Royce Pennsylvania Mutual Investors Fund 1 0
Command Money Market Fund 11 3
Janus Flexible Income Fund 2 0
Strong International Bond Fund 1 0
Lazard Equity Portfolio Fund 1 0
Prudential Money Mart Assets Fund 1 0
T. Rowe Price Blue Chip Growth Fund 0 11
Scudder Value Fund 0 8
Warburg Pincus Emerging Growth Fund 0 3
</TABLE>
<PAGE>
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, 1999, 1998 and
1997 were as follows:
<TABLE>
<CAPTION>
1999 Dispositions
Net Realized
Fund Cost Proceeds Gain (Loss)
---- ---------------- ---------------- ---------------
<S> <C> <C> <C>
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)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
DEFERRED COMPENSATION PLAN OF
LINENS 'N THINGS, INC.
Notes to Financial Statements, continued
Net Realized
Fund Cost Proceeds Gain (Loss)
---- ---------------- ---------------- ---------------
<S> <C> <C> <C>
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
=========== =========== ==========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
DEFERRED COMPENSATION PLAN OF
LINENS 'N THINGS, INC.
Notes to Financial Statements, continued
1998 Dispositions
Net Realized
Fund Cost Proceeds Gain (Loss)
----
---------------- ---------------- ---------------
<S> <C> <C> <C>
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
================ ================ ===============
</TABLE>
<TABLE>
<CAPTION>
1997 Dispositions
Net Realized
Fund Cost Proceeds Gain (Loss)
----
------------------- ------------------- ------------------
<S> <C> <C> <C>
Linens 'n Things, Inc. Common Stock Fund $ 13,601 $ 13,343 $ (258)
T. Rowe Price Blue Chip Growth Fund 923,477 1,091,660 168,183
Scudder Value Fund - 70,646 70,646
Neuberger & Berman Genesis Fund 130,213 190,401 60,188
Warburg Pincus Emerging Growth Fund - 24,514 24,514
Strong Government Securities Fund 170,534 174,279 3,745
Money Market Fund 2,749,899 2,747,403 (2,496)
------------------- ------------------- ------------------
$3,987,724 $4,312,246 $ 324,522
=================== =================== ==================
</TABLE>
<PAGE>
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
BRIAN D. SILVA
Dated: June 28, 2000 By:_______________________
Brian D. Silva
Senior Vice President, Human Resources
and Corporate Secretary and Member of
the Deferred Compensation Committee
