Big Lots 2011 Annual Report Download - page 170

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BIG LOTS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 3 — Bank Credit Facility
On July 22, 2011, we entered into a new $700 million five-year unsecured credit facility (“2011 Credit
Agreement”). The 2011 Credit Agreement replaced the $500 million three-year unsecured credit facility we
entered into on April 28, 2009 (“2009 Credit Agreement”). The 2009 Credit Agreement was scheduled to expire
on April 28, 2012, but was terminated concurrently with our entry into the 2011 Credit Agreement. We did not
incur any material termination penalties in connection with the termination of the 2009 Credit Agreement.
The 2011 Credit Agreement expires on July 22, 2016. In connection with our entry into the 2011 Credit
Agreement, we paid bank fees and other expenses in the aggregate amount of $3.0 million, which are being
amortized over the term of the agreement. Borrowings under the 2011 Credit Agreement are available for
general corporate purposes, working capital, and to repay certain of our indebtedness, including amounts due
under the 2009 Credit Agreement. The 2011 Credit Agreement includes a $10 million Canadian swing loan
sublimit, a $30 million U.S. swing loan sublimit, a $150 million letter of credit sublimit and a $200 million
Canadian revolving credit loan subfacility. The interest rates, pricing and fees under the 2011 Credit Agreement
fluctuate based on our debt rating. The 2011 Credit Agreement allows us to select our interest rate for each
borrowing from multiple interest rate options. The interest rate options are generally derived from the
prime rate, LIBOR, or CDOR. We may prepay revolving loans made under the 2011 Credit Agreement. The
2011 Credit Agreement contains financial and other covenants, including, but not limited to, limitations on
indebtedness, liens and investments, as well as the maintenance of two financial ratios – a leverage ratio and a
fixed charge coverage ratio. A violation of any of the covenants could result in a default under the 2011 Credit
Agreement that would permit the lenders to restrict our ability to further access the 2011 Credit Agreement for
loans and letters of credit and require the immediate repayment of any outstanding loans under the 2011 Credit
Agreement. At January 28, 2012, we had borrowings of $65.9 million and $55.2 million was committed to
outstanding letters of credit, leaving $578.9 million available under the 2011 Credit Agreement.
Note 4 — Fair Value Measurements
In connection with our nonqualified deferred compensation plan, we had mutual fund investments of
$19.6 million and $19.2 million at January 28, 2012 and January 29, 2011, respectively, which were recorded in
other assets. These investments were classified as trading securities and were recorded at their fair value. The
fair values of mutual fund investments were Level 1 valuations under the fair value hierarchy because each
fund’s quoted market value per share was available in an active market.
Included in cash and cash equivalents were amounts on deposit with financial institutions totaling $60.3 million
at January 29, 2011, stated at cost, which approximates fair value. We had no such deposits at January 28, 2012.
At January 28, 2012 and January 29, 2011, cash and cash equivalents carried at fair value was comprised of
the following:
January 28, 2012
(In thousands) Total Level 1 Level 2 Level 3
Money market funds ....................................... $ — $ — $ — $—
Variable rate demand notes ................................ — — — —
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $ — $ — $—
January 29, 2011
(In thousands) Total Level 1 Level 2 Level 3
Money market funds ....................................... $40,800 $40,800 $ — $—
Variable rate demand notes ................................ 25,000 — 25,000 —
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $65,800 $40,800 $25,000 $—