Big Lots 2007 Annual Report Download - page 163

75
BIG LOTS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 11 — Discontinued operations (Continued)
losses generally related to the periods prior to our sale of KB Toys. During the fourth quarter of 2006, we
reversed prior pretax charges of approximately $4.7 million and net income tax contingencies of approximately
$1.7 million, in income from discontinued operations primarily related to income and sales tax indemnification
contingency reserves. We estimated this reversal of charges based on information that we received as a
result of our settlement discussions with the bankruptcy trust and KB Toys in an attempt to resolve the tax
indemnification claims.
During 2006, we recorded $0.7 million in discontinued operations to reflect the reduction of insurance reserves
specifically identifiable with respect to the KB Toys business.
Note 12 — Business Segment data
We manage our business based on one segment, broadline closeout retailing. During the first quarter of 2007,
in connection with the completion of the internal re-alignment of certain merchandising departments and
classes between our divisional merchandising managers, we determined that the following six merchandise
categories most directly match our internal management and reporting of merchandise net sales results:
Consumables, Home, Furniture, Hardlines, Seasonal, and Other. Effective for the first quarter of 2007, we use
these six categories externally to report net sales information by each merchandise group in accordance with
the requirements of SFAS No. 131, Disclosures about Segments of an Enterprise and Related Information. Prior
period amounts presented have been reclassified to conform to the current year presentation.
2007 2006 2005
(In thousands)
Consumables ............................................. $1,339,433 $ 1,317,095 $ 1,225,798
Home ................................................... 783,047 842,974 785,352
Furniture ................................................ 687,292 681,952 599,664
Hardlines ................................................ 629,119 645,338 587,304
Seasonal ................................................ 597,933 584,762 575,374
Other ................................................... 619,478 670,927 656,413
Net sales ................................. $4,656,302 $4,743,048 $ 4,429,905
The Consumables category includes the food, health and beauty, plastics, paper, and pet departments. The Home
category includes the domestics, stationery, and home decorative departments. The Furniture category includes
the upholstery, mattresses, ready-to-assemble, and case goods departments. Case goods consist of bedroom,
dining room, and living room furniture. The Hardlines category includes the electronics, appliances, tools,
and home maintenance departments. The Seasonal category includes the lawn & garden, Christmas, summer,
and other holiday departments. The Other category includes the toy, jewelry, infant accessories, and apparel
departments. Other also includes the results of certain large closeout deals that are typically acquired through
our alternate product sourcing operations.