SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) July 21, 2004
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LINENS 'N THINGS, INC.
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(Exact Name of Registrant as Specified in Charter)
Delaware 1-12381 22-3463939
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(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification No.)
6 Brighton Road, Clifton, New Jersey 07015
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (973) 778-1300
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INFORMATION TO BE INCLUDED IN THE REPORT
ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
Attached and being furnished hereby as Exhibit 99.1 is a copy of a press release
of Linens 'n Things, Inc. (the "Company") dated July 21, 2004, reporting the
Company's sales and earnings results for the second quarter of 2004.
The discussion of the Company's 2004 second quarter results and its commentary
regarding expected future results include and, where indicated, exclude the
impact of EITF 02-16, "Accounting by a Customer (Including a Reseller) for
Certain Consideration Received from a Vendor" (EITF 02-16). The Company
commenced implementation of EITF 02-16 during the first quarter of fiscal 2004.
EITF 02-16 is effective for vendor contracts initiated or modified in fiscal
2004 or thereafter. Following the initial implementation impact, subsequent
fiscal years will reflect vendor allowances on a consistent basis other than for
any net changes in such vendor allowances. The Company's EITF 02-16 pre-tax
adjustment represents those allowances reflected as a reduction of the cost of
inventory, which historically would have been treated as a reduction of cost of
sales or selling, general and administrative expenses ("SG&A"). Beginning in
fiscal 2004, due to the Company's changes to its vendor agreements and the
requirements of EITF 02-16, the Company no longer records advertising allowances
as a reduction to SG&A. The Company has allocated the EITF 02-16 pre-tax
adjustment to SG&A based on the previous year ratio of vendor advertising
allowances recorded within SG&A to sales. The remaining portion of the total
EITF 02-16 pre-tax adjustment was allocated to cost of sales.
The impact of EITF 02-16 is detailed in, and reconciled to generally accepted
accounting principles (GAAP) as part of, the Company's discussion of its 2004
second quarter results. In the Company's view, in discussing its historical and
expected future results and financial condition, in order to better measure and
to assist the analysis of the Company's period to period operating performance
it is important for management and investors to be provided operating
performance measures which identify the impact of the EITF 02-16 accounting
change on operating results and financial condition. In addition, management
feels that is important for investors to understand the manner in which
management evaluates the Company's period to period operating performance, thus
the inclusion of these non-GAAP measures is intended to provide an additional
metric for reviewing performance that management internally uses to evaluate
performance on a comparative period-to-period basis in terms of absolute
performance and trend performance. Such information is supplemental to
information presented in accordance with GAAP, is not intended to represent a
presentation in accordance with GAAP, and should not be considered as a
substitute for, or superior to, measures of financial performance prepared and
presented in accordance with GAAP.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
LINENS 'N THINGS, INC.
Dated: July 21, 2004 By:
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Name: William T. Giles
Title: Executive Vice President,
Chief Financial Officer
EXHIBIT INDEX
Exhibit No. Description
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99.1 Press Release of Linens 'n Things, Inc., dated July 21, 2004.