Big Lots 2007 Annual Report Download - page 95

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officer. The Code of Ethics for Financial Professionals, for our Chief Executive Officer and all other Senior
Financial Officers (as that term is defined therein), contains provisions specifically applicable to the individuals
serving in those positions. We intend to post amendments to and waivers from, if any, our Code of Business
Conduct and Ethics (to the extent applicable to our directors and executive officers) and our Code of Ethics
for Financial Professionals in the “Investor Relations” section of our website (www.biglots.com) under the
“Corporate Governance” caption. We will provide any of the foregoing information without charge upon written
request to our Corporate Secretary. The contents of our websites are not part of this report.
ITEM 1A. RISK FACTORS
The statements in this section describe the major risks to our business and should be considered carefully. In addition,
these statements constitute cautionary statements under the Private Securities Litigation Reform Act of 1995.
Our disclosure and analysis in this Form 10-K and in our 2007 Annual Report to Shareholders contain some
forward-looking statements that set forth anticipated results based on management’s plans and assumptions.
From time to time, we also provide forward-looking statements in other materials we release to the public as
well as oral forward-looking statements. Such statements give our current expectations or forecasts of future
events; they do not relate strictly to historical or current facts. We have tried, wherever possible, to identify such
statements by using words such as “anticipate,” “estimate,” “expect,” “objective,” “goal,” “project,” “intend,”
“plan,” “believe,” “will,” “should,” “may,” “target,” “forecast,” “guidance,” “outlook,” and similar expressions
in connection with any discussion of future operating or financial performance. In particular, these include
statements relating to future actions, future performance, or results of current and anticipated products, sales
efforts, expenses, interest rates, the outcome of contingencies, such as legal proceedings, and financial results.
We cannot guarantee that any forward-looking statement will be realized, although we believe we have been
prudent in our plans and assumptions. Achievement of future results is subject to risks, uncertainties, and
potentially inaccurate assumptions. Should known or unknown risks or uncertainties materialize, or should
underlying assumptions prove inaccurate, actual results could differ materially from past results and those
anticipated, estimated, or projected. You should bear this in mind as you consider forward-looking statements.
You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date
thereof. We undertake no obligation to publicly update forward-looking statements, whether as a result of new
information, future events, or otherwise. You are advised, however, to consult any further disclosures we make on
related subjects in our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC.
Also note that we provide the following cautionary discussion of risks, uncertainties, and assumptions relevant
to our businesses. There can be no assurances that we have correctly and completely identified, assessed, and
accounted for all factors that do or may affect our business, financial condition, results of operations, and
liquidity. These are factors that, individually or in the aggregate, we think could cause our actual results to
differ materially from expected and historical results. Additional risks not presently known to us or that we
presently believe to be immaterial also may adversely impact us. Should any risks or uncertainties develop into
actual events, these developments could have material adverse effects on our business, financial condition,
results of operations, and liquidity. Consequently, all of the forward-looking statements are qualified by these
cautionary statements, and there can be no assurance that the results or developments we anticipate will be
realized or that they will have the expected effects on our business or operations. We note these factors for
investors as permitted by the Private Securities Litigation Reform Act of 1995. You should understand that it is
not possible to predict or identify all such factors. Consequently, you should not consider the following to be a
complete discussion of all potential risks or uncertainties.
Our ability to achieve the results contemplated by forward-looking statements is subject to a number of
factors, any one, or a combination, of which could materially affect our business, financial condition, results of
operations, or liquidity. These factors may include, but are not limited to:
If we are unable to continue to successfully execute our operating strategies, our operating performance
could be significantly impacted.
Our operating results have improved in 2006 and 2007. In 2005, we initiated a strategic assessment of our
operations. As part of the initial steps implemented, we closed a significant number of underperforming stores,
executed a series of markdowns to lower in-store inventory levels in certain classifications of merchandise,