Big Lots 2007 Annual Report Download - page 153

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65
BIG LOTS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 8 — Employee Benefit Plans (Continued)
The following table sets forth certain information for the Pension Plan and the Supplemental Pension Plan at
December 31:
Pension Plan
Supplemental
Pension Plan
2007 2006 2007 2006
(In thousands)
Projected benefit obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $49,324 $50,258 $4,135 $4,442
Accumulated benefit obligation ............................... 43,575 44,148 3,693 3,977
Fair market value of plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $48,208 $53,065 $ — $ —
Savings Plans
We have a savings plan with a 401(k) deferral feature and a nonqualified deferred compensation plan with a
similar deferral feature for eligible employees. We contribute a matching percentage of employee contributions
and, beginning with calendar year 2006, our matching contribution was funded in cash. Prior matching
contributions were funded by us with our common shares. Our matching contributions are subject to Internal
Revenue Service (“IRS”) regulations. For 2007, 2006, and 2005, we expensed $5.3 million, $5.1 million, and
$5.5 million, respectively, related to our matching contributions. In connection with our nonqualified deferred
compensation plan, we had mutual fund investments of $13.0 million and $10.8 million at February 2, 2008
and February 3, 2007, respectively, which were recorded in other assets. These investments were classified
as trading securities and were recorded at their fair value. We held treasury shares with historical cost of
$0.3 million at February 2, 2008 and $1.1 million at February 3, 2007, in connection with the nonqualified
deferred compensation plan. We had a liability of $13.9 million and $14.2 million at February 2, 2008 and
February 3, 2007, respectively, in connection with the nonqualified deferred compensation plan.
Note 9 — Income Taxes
The provision for income taxes from continuing operations was comprised of the following:
2007 2006 2005
(In thousands)
Federal — current .............................................. $80,988 $ 66,243 $ 12,512
State and local — current ........................................ 6,325 5,044 (577)
Deferred — federal, state and local . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 (13,415) (6,746)
Net tax expense recognized for FIN 48 uncertainties .................. 685 — —
Income tax provision .......................................... $88,023 $ 57,872 $ 5,189
The deferred income tax expense (benefit) from discontinued operations was $4.3 million for 2007, $9.1 million
for 2006 and $(3.7) million for 2005. Deferred tax assets increased by a net $3.3 million in 2007 due to the
adoption of FIN No. 48, and by $0.4 million in 2007 and $3.9 million in 2006 due to pension-related charges
recorded in accumulated other comprehensive income.