Big Lots 2011 Annual Report Download - page 172

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BIG LOTS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 6 — Shareholders’ Equity
Earnings per Share
There were no adjustments required to be made to weighted-average common shares outstanding for purposes
of computing basic and diluted earnings per share and there were no securities outstanding in any year
presented, which were excluded from the computation of earnings per share other than antidilutive employee
and director stock options and non-vested restricted stock awards. At the end of 2011, 2010, and 2009, stock
options outstanding of 1.5 million, 0.9 million, and 2.9 million, respectively, were excluded from the diluted
share calculation because their impact was antidilutive. Antidilutive options are excluded from the calculation
because they decrease the number of diluted shares outstanding under the treasury stock method. Antidilutive
options are generally outstanding options where the exercise price per share is greater than the weighted-
average market price per share for our common shares for each period. The number of shares of non-vested
restricted stock that were antidilutive, as determined under the treasury stock method, is immaterial for all
years presented.
A reconciliation of the number of weighted-average common shares outstanding used in the basic and diluted
earnings per share computations is as follows:
2011 2010 2009
(in thousands)
Weighted-average common shares outstanding:
Basic ....................................................... 68,316 77,596 81,619
Dilutive effect of stock options and restricted common shares .......... 1,103 985 1,062
Diluted ..................................................... 69,419 78,581 82,681
Share Repurchase Programs
In December 2009, our Board of Directors authorized a share repurchase program providing for the repurchase
of up to $150.0 million of our common shares. On March 2, 2010, our Board of Directors authorized a $250.0
million increase to our repurchase program bringing the total authorization to $400.0 million (collectively, the
“2010 Repurchase Program”). On May 25, 2011, our Board of Directors authorized a share repurchase program
providing for the repurchase of up to an additional $400.0 million of our common shares (“2011 Repurchase
Program”).
During 2011, we acquired approximately 11.0 million of our outstanding common shares for $359.3 million,
which exhausted the authorization under the 2010 Repurchase Program and also included repurchases under the
2011 Repurchase Program.
Our remaining repurchase authorization under the 2011 Repurchase Program was approximately $98.5
million at January 28, 2012, and is available to be utilized in the open market and/or in privately negotiated
transactions at our discretion, subject to market conditions and other factors. Common shares acquired
through the repurchase programs are held in treasury at cost and are available to meet obligations under equity
compensation plans and for general corporate purposes. The 2011 Repurchase Program has no scheduled
termination date and will be funded with cash and cash equivalents, cash generated from operations or, if
needed, by drawing on the 2011 Credit Agreement.
Note 7 — Share-Based Plans
Our shareholders initially approved our existing equity compensation plan, the Big Lots 2005 Long-Term
Incentive Plan (“2005 LTIP”) in May 2005, approved an amendment in May 2008, and approved the amended
and restated 2005 LTIP effective May 27, 2010. The 2005 LTIP authorizes the issuance of incentive and
nonqualified stock options, restricted stock, restricted stock units, performance units, and stock appreciation