Big Lots 2007 Annual Report Download - page 141

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BIG LOTS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 1 — Summary of Significant Accounting Policies (Continued)
Guarantees
We have guarantees which were issued prior to January 1, 2003. We record a liability for these guarantees in
the period when it becomes probable that the obligor will fail to perform its obligation and if the amount of our
guarantee obligation is estimable.
Other Comprehensive Income
In 2007, we reported Other Comprehensive Income, which includes the impact of the amortization of pension,
net of tax, and the revaluation of pension, net of tax, on our consolidated statement of shareholders’ equity. Prior
to 2007, our comprehensive income was equal to net income.
Recent Accounting Pronouncements
In September 2006, the FASB issued SFAS No. 157, Fair Value Measurements (“SFAS No. 157”). SFAS No. 157
addresses how companies should approach measuring fair value when required by GAAP. SFAS No. 157 does
not create or modify any GAAP requirements to apply fair value accounting. The standard provides a single
definition of fair value that is to be applied consistently for most accounting applications and also generally
describes and prioritizes, according to reliability, the methods and inputs used in valuations. SFAS No. 157
prescribes additional disclosures regarding the extent of fair value measurements included in a company’s
financial statements and the methods and inputs used to arrive at these values. SFAS No. 157 is effective for us
on a prospective basis beginning in the first quarter of 2008, for any financial assets or liabilities that we may
have. In February 2008, the FASB deferred the required application of SFAS No. 157 to non-financial assets
until the beginning of 2009. We expect no significant impact on our financial condition, results of operations, or
liquidity from adopting this statement.
In February 2007, the FASB issued SFAS No. 159, The Fair Value Option for Financial Assets and Financial
Liabilities. SFAS No. 159 permits entities to choose to measure many financial instruments and certain other
items at fair value. SFAS No. 159 will be effective at the beginning of 2008. We expect no significant impact on
our financial condition, results of operations, or liquidity from adopting this statement.
In May 2007, the FASB issued FASB Staff Position (“FSP”) FIN 48-1, Definition of Settlement in FASB
Interpretation No. 48. FSP FIN 48-1 provides guidance on how to determine whether a tax position is effectively
settled for the purpose of recognizing previously unrecognized tax benefits. FSP FIN 48-1 was effective
retroactively to February 4, 2007. The implementation of this standard did not have a material impact on our
financial condition, results of operations, or liquidity.
In December 2007, the FASB issued SFAS No. 141(R), Business Combinations, which changes the accounting
for business combinations and their effects on the financial statements. SFAS No. 141(R) will be effective at
the beginning of fiscal 2009. The adoption of this statement is not expected to have a material impact on our
financial condition, results of operations, or liquidity.
In December 2007, the FASB issued SFAS No. 160, Accounting and Reporting of Noncontrolling Interests in
Consolidated Financial Statements, and amendment of ARB No. 51. SFAS No. 160 requires entities to report
non-controlling interests in subsidiaries as equity in their consolidated financial statements. SFAS No. 160 will
be effective at the beginning of fiscal 2009. The adoption of this statement is not expected to have a material
impact on our financial condition, results of operations, or liquidity.