Big Lots 2007 Annual Report Download - page 53

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Estimated Payments if Triggering Event Occurred at Fiscal Year End
The amounts in the following tables are approximations based on various assumptions and estimates. The actual
amounts to be paid can only be determined at the time of the change in control or termination of employment,
as applicable. In the tables that follow, we have made the following material assumptions, estimates and
characterizations:
• Amounts are calculated based on compensation levels and benefits effective at February 2, 2008, the
end of fiscal 2007.
• As noted in the “Non-Equity Incentive Plan Compensation” rows in the tables below, the amounts
payable under the 2006 Bonus Plan upon termination: (i) without cause or due to disability or death
are based on the bonus actually earned by the applicable named executive officer for fiscal 2007
performance; and (ii) in connection with a change in control are equal to two times the named executive
officer’s stretch bonus.
• We have not taken into account the possibility that a named executive officer may be eligible to receive
healthcare benefits from another source following his or her termination. Therefore, the amounts shown
in the “Healthcare Coverage” row in the tables below reflect, consistent with the assumptions that would
be used for financial reporting purposes under generally accepted accounting principles, the cost to
provide continued healthcare coverage under the Consolidated Omnibus Budget Reconciliation Act of
1985 (COBRA) throughout the full period provided by (i) the named executive officer’s employment
agreement, if terminated involuntarily without cause or in connection with a change in control, or (ii)
our policy, if terminated upon disability. Included in the amounts shown in the “Healthcare Coverage”
row in the tables below for a named executive officer who receives continued healthcare benefits
following an involuntary termination without cause or a termination in connection with a change in
control are the related Tax Gross-Up Amounts. The Tax Gross-Up Amount would be paid under the
terms of the named executive officer’s employment agreement. No such reimbursement would be due to
a named executive officer whose employment terminates upon disability.
• The amounts shown in the “Long-Term Disability Benefit” row in the tables below represent 67% of
the named executive officer’s monthly salary, up to a maximum of $25,000 per month. This benefit is
payable until the named executive officer is no longer disabled or age 65, whichever occurs earlier. Due
to the speculative nature of estimating the period of time during which a named executive officer may
be disabled, we have presented only one month of disability benefits in the tables below.
• The amounts in the “Accelerated Equity Awards” row in the tables below include the value of all
unvested stock options that were in-the-money at the end of fiscal 2007 (minus the aggregate stock
option exercise prices) and all unvested restricted stock that would have vested on an accelerated basis
had a change in control occurred as the end of fiscal 2007. The closing market price of our common
shares on the final trading day on the NYSE during fiscal 2007 was $17.51 per share. This amount does
not reflect any equity awards that have vested or have been granted in fiscal 2008.