Big Lots 2007 Annual Report Download - page 43

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(2) The amounts in this column reflect the compensation expense calculated in accordance with FAS 123R
for fiscal 2007 and fiscal 2006, disregarding any estimate of forfeitures related to service-based vesting
conditions, and may include amounts from stock awards granted in and prior to fiscal 2007 and fiscal
2006 pursuant to the Big Lots, Inc. 1996 Performance Incentive Plan (“1996 Incentive Plan”) and the 2005
Incentive Plan. The FAS 123R compensation expense reflected in this column is based on the number of
shares of restricted stock granted and the fair value of the restricted stock on the grant date, and the expense
is amortized from the grant date to the estimated vesting date (i.e., the estimated achievement date of the
second trigger in the case of performance-based restricted stock). In applying FAS 123R, the estimated
achievement date is determined at the time the restricted stock is granted based on historical and forecasted
performance of similar measures, and prospective adjustments to the estimated vesting periods are made
when performance factors indicate that the estimated achievement date differs from the date being used to
amortize expense. On the grant date of the unvested restricted stock awarded in fiscal 2007, we estimated a
three-year vesting period for these awards based on the assumed achievement of the second trigger. In the
second quarter of fiscal 2007, we changed the estimated achievement date to two years as a result of our
performance being better than expected. The amounts in this column also reflect the acceleration of the FAS
123R expense for the performance-based restricted stock granted in fiscal 2006, and restricted stock granted
prior to fiscal 2006 that fully vested in fiscal 2007.
(3) The amounts in this column reflect the compensation expense calculated in accordance with FAS 123R
for fiscal 2007 and fiscal 2006, disregarding any estimate of forfeitures related to service-based vesting
conditions, and thus may include amounts from option awards granted in and prior to fiscal 2007 and fiscal
2006 pursuant to the 1996 Incentive Plan and the 2005 Incentive Plan. See Note 7 (Share-Based Plans) to
the consolidated financial statements and the Critical Accounting Policies and Estimates – Share-Based
Compensation section of MD&A in our Form 10-K regarding the assumptions underlying the valuation of
stock option awards.
(4) The amounts in this column reflect cash bonuses earned for fiscal 2007 and fiscal 2006 performance
pursuant to the 2006 Bonus Plan. A portion of the cash bonuses earned by Mr. Cooper and Mr. Martin for
fiscal 2006 performance and included in this column was deferred into the Supplemental Savings Plan upon
the payment of such amounts in fiscal 2007. The Supplemental Savings Plan is described in the narrative
disclosure accompanying the Nonqualified Deferred Compensation table below.
(5) The amounts in this column reflect the actuarial increase in the present value of Mr. Waite’s benefits under
the Pension Plan and the Supplemental Pension Plan determined from December 31, 2006 to December 31,
2007 and from December 31, 2005 to December 31, 2006, respectively, the plans’ measurement dates for
financial statement reporting purposes. See Note 8 (Employee Benefit Plans) to the consolidated financial
statements and the Critical Accounting Policies and Estimates – Pension section of MD&A in our Form 10-K
regarding the interest rate, mortality rate and other assumptions underlying the actuarial calculations.
(6) For fiscal 2007, the amounts in this column include the following compensation for the named executive
officers, as more fully described in the tables included with this footnote:
i. The reimbursement of taxes related to our payment of healthcare costs covered by the Executive Benefit
Plan, long-term disability insurance coverage, and taxable moving expenses;
ii. Big Lots matching contributions made pursuant to the Savings Plan and the Supplemental Savings
Plan, both of which are described in the narrative disclosure accompanying the Nonqualified Deferred
Compensation table below;
iii. The reimbursement of healthcare costs covered by the Executive Benefit Plan, which is described in the
“Overview of our Executive Compensation Program – Elements of In-Service Compensation – Personal
Benefits/Perquisites” section of the CD&A;
iv. Big Lots paid premiums for life insurance, which is generally available to all full-time employees;
v. Big Lots paid premiums for long-term disability insurance, which is described in the “Overview of
our Executive Compensation Program – Elements of In-Service Compensation – Personal Benefits/
Perquisites” section of the CD&A; and
vi. The cost associated with the use of an automobile or the receipt of a cash allowance in lieu of an
automobile.