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53
BIG LOTS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Recently Adopted Accounting Pronouncements
Fair Value Measurements
Effective February 3, 2008, we adopted SFAS No. 157, Fair Value Measurements (“SFAS No. 157”), for
financial assets and liabilities on a prospective basis. The FASB deferred the effective date of SFAS No.
157 for one year for non-financial assets and liabilities that are recognized or disclosed at fair value in the
financial statements in a non-recurring basis, which we will adopt effective the beginning of 2009. SFAS
No. 157 addresses how companies should approach measuring fair value and expands disclosures about fair
value measurements under other accounting pronouncements that require or permit fair value measurements.
The standard provides a single definition of fair value that is to be applied consistently for most accounting
applications and also generally describes and prioritizes according to reliability the methods and inputs used
in valuations. SFAS No. 157 prescribes additional disclosures regarding the extent of fair value measurements
included in a company’s financial statements and the methods and inputs used to arrive at these values. The
adoption of this statement for financial assets and liabilities did not have any impact on our financial condition,
results of operations, or liquidity. The adoption of this statement for non-financial assets and liabilities in 2009
is not expected to have a material impact on our financial condition, results of operations, or liquidity.
Pension
Effective in 2008, SFAS No. 158 requires us to measure defined benefit plan assets and obligations as of the
date of our year-end consolidated balance sheet. Previously, our pension plans had a measurement date of
December 31. Switching to the new measurement date required one-time adjustments of $0.1 million to retained
earnings and less than $0.1 million to accumulated other comprehensive income in 2008 per the transition
guidance in SFAS No. 158.
Fair Value Option
Effective February 3, 2008, we adopted SFAS No. 159, The Fair Value Option for Financial Assets and
Financial Liabilities. SFAS No. 159 permits us to choose to measure certain financial instruments and other
items at fair value. We did not elect to measure any additional financial assets or liabilities at fair value.
Recent Accounting Pronouncements – Future Adoptions
In December 2007, the FASB issued SFAS No. 141(R), Business Combinations, which changes the accounting
for business combinations and their effects on the financial statements. SFAS No. 141(R) will be effective at
the beginning of fiscal 2009. The adoption of this statement is not expected to have a material impact on our
financial condition, results of operations, or liquidity.
In December 2007, the FASB issued SFAS No. 160, Accounting and Reporting of Noncontrolling Interests in
Consolidated Financial Statements, an amendment of ARB No. 51. SFAS No. 160 requires entities to report
non-controlling interests in subsidiaries as equity in their consolidated financial statements. SFAS No. 160 will
be effective at the beginning of fiscal 2009. The adoption of this statement is not expected to have a material
impact on our financial condition, results of operations, or liquidity.
In December 2008, the FASB issued FSP No. 132(R)-1, Employers’ Disclosure about Postretirement Benefit
Plan Assets, which requires additional disclosures for employers’ pension plan assets. As pension plan assets
were not included within the scope of SFAS No. 157, this FSP requires employers to disclose information about
fair value measurements of plan assets similar to the disclosures required under SFAS No. 157, the investment
policies and strategies for the major categories of plan assets, and significant concentrations of risk within
plan assets. FSP 132(R)-1 will be effective at the end of 2009. Because this FSP provides only disclosure
requirements, it will not have a material impact on our financial condition, results of operations, or liquidity.
Note 1 — Summary of Significant Accounting Policies (Continued)