Big Lots 2007 Annual Report Download - page 62

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As set forth in the table below, the following Awards have been granted under the 2005 Incentive Plan since its
inception to: (i) each named executive officer; (ii) all current executive officers; and (iii) all of our employees who
are not executive officers. All of the outstanding Awards were granted for compensatory purposes.
Name or
Identity of Group
Common Shares Underlying
Stock Option Awards
(#)
Common Shares Underlying
Restricted Stock Awards
(#)
Mr. Fishman (1) 450,000 225,000
Mr. Cooper (1) 78,500 28,500
Mr. Waite (1) 84,000 31,000
Mr. Martin (1) 51,500 18,500
Ms. Bachmann (1) 78,500 28,500
Executive Group 1,005,400 424,200
Non-Executive Director Group (2) — —
Non-Executive Officer Employee Group 1,138,500 191,900
(1) For additional information regarding Awards made to the named executive officers during fiscal 2007 and
each named executive officer’s title, see the Summary Compensation Table and the Grants of Plan-Based
Awards table in this Proxy Statement.
(2) No current outside director has received an Award under the 2005 Incentive Plan. For additional information
regarding the equity awarded to outside directors, see the Director Compensation section of this Proxy
Statement.
Tax Treatment of Awards
The following summary of the United States federal income tax implications of Awards under the 2005 Incentive
Plan is based on the provisions of the IRC (and any relevant rulings and regulations issued under the IRC) as of the
date of this Proxy Statement. The summary is not intended to be a complete description of the United States federal
income tax laws, does not constitute tax advice and does not describe state, local or foreign tax consequences.
Incentive Stock Options
An ISO generally results in no taxable ordinary income to the participant or deduction to us at the time the ISO
is granted or exercised. However, the excess of the fair market value of the common shares acquired over the
stock option exercise price is an item of adjustment in computing the alternative minimum taxable income of the
participant. If the participant holds the common shares received as a result of an exercise of an ISO for at least
two years from the grant date and one year from the exercise date, then the gain realized on disposition of the
common shares is treated as a long-term capital gain. If the common shares are disposed of within either of these
periods (i.e., a “disqualifying disposition”), then the participant will include in income, as compensation for the
year of the disqualifying disposition, an amount equal to the excess, if any, of the fair market value of the common
shares, upon exercise of the stock option over the stock option exercise price (or, if less, the excess of the amount
realized upon disposition over the stock option exercise price). The excess, if any, of the sale price over the fair
market value on the exercise date will be a short-term capital gain. In such case, we will be entitled to a deduction,
generally in the year of such a disposition, for the amount includible in the participant’s income as compensation.
The participant’s basis in the common shares acquired upon exercise of an ISO is equal to the stock option exercise
price paid, plus any amount includible in his or her income as a result of a disqualifying disposition.
Non-Qualified Stock Options
A NQSO results in no taxable income to the participant or deduction to us at the time it is granted. A participant
exercising a NQSO will, at that time, realize taxable compensation in the amount of the difference between the
stock option exercise price and the then-current fair market value of the common shares. Subject to the applicable
provisions of the IRC, a deduction for federal income tax purposes will be allowable to us in the year of exercise in
an amount equal to the taxable compensation recognized by the participant.