Big Lots 2011 Annual Report Download - page 147

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increase was partially offset by the return of our $8.0 million deposit with an insurance carrier from a restricted
account in the second quarter of 2011 that was initially deposited in the second quarter of 2010; therefore
generating a $16.0 million change in cash flow from 2010 to 2011.
Cash used in financing activities decreased by $0.6 million to $306.3 million in 2011 compared to $306.9 million
in 2010. The primary driver of cash used in financing activities in 2011 and 2010 was our share repurchase
activities. In 2011, we acquired $359.3 million of our common shares ($57.8 million under the 2010 Repurchase
Program and $301.5 million under the 2011 Repurchase Program), as compared to the $342.2 million of our
common shares we acquired in 2010 under the 2010 Repurchase Program. In addition, during the second
quarter of 2011, we used $16.7 million to repay the outstanding notes payable we assumed in connection with
our acquisition of Liquidation World Inc. In 2011 and 2010, we received proceeds from the exercise of stock
options of $10.4 million and $32.5 million, respectively, which also generated excess tax benefits of $2.7 million
and $13.8 million, respectively. Lastly, in 2011, we borrowed $65.9 million under the 2011 Credit Agreement to
partially fund our share repurchases.
Based on historical and expected financial results, we believe that we have or, if necessary, have the ability
to obtain, adequate resources to fund ongoing and seasonal working capital requirements, proposed capital
expenditures, new projects, and currently maturing obligations.
Contractual Obligations
The following table summarizes payments due under our contractual obligations at January 28, 2012:
Payments Due by Period (1)
Total Less than 1 year 1 to 3 years 3 to 5 years More than 5 years
(In thousands)
Obligations under bank credit facility (2) .... $ 65,975 $ 75 $ — $ 65,900 $ —
Operating lease obligations (3) (4) . . . . . . . . . . 1,208,513 311,751 481,978 257,859 156,925
Capital lease obligations (4) . . . . . . . . . . . . . . 3,162 1,340 1,791 31 —
Purchase obligations (4) (5) ................ 815,971 713,495 84,932 17,544 —
Other long-term liabilities (6) ............. 48,190 5,307 5,391 11,017 26,475
Total contractual obligations (7) . . . . . . . . $2,141,811 $1,031,968 $574,092 $352,351 $183,400
(1) The disclosure of contractual obligations in this table is based on assumptions and estimates that we
believe to be reasonable as of the date of this report. Those assumptions and estimates may prove to be
inaccurate; consequently, the amounts provided in the table may differ materially from those amounts
that we ultimately incur. Variables that may cause the stated amounts to vary from the amounts actually
incurred include, but are not limited to: the termination of a contractual obligation prior to its stated or
anticipated expiration; fees or damages incurred as a result of the premature termination or breach of a
contractual obligation; the acquisition of more or less services or goods under a contractual obligation than
are anticipated by us as of the date of this report; fluctuations in third party fees, governmental charges, or
market rates that we are obligated to pay under contracts we have with certain vendors; and the exercise of
renewal options under, or the automatic renewal of, contracts that provide for the same.
(2) Obligations under the bank credit facility consist of the borrowings outstanding under the 2011 Credit
Agreement, and the associated accrued interest of $0.1 million. In addition, we had outstanding letters
of credit totaling $55.2 million at January 28, 2012. Approximately $51.3 million of the outstanding
letters of credit represent stand-by letters of credit and we do not expect to meet the conditions requiring
significant cash payments on these letters of credit; accordingly, they have been excluded from this table.
The remaining outstanding letters of credit represent commercial letters of credit whereby the related
obligation is included in the purchase obligations. For a further discussion, see note 3 to the accompanying
consolidated financial statements.
(3) Operating lease obligations include, among other items, leases for retail stores, warehouse space, offices,
and certain computer and other business equipment. The future minimum commitments for retail store,
office, and warehouse space operating leases are $927.4 million. For a further discussion of leases, see