Big Lots 2008 Annual Report Download - page 132

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64
BIG LOTS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
The following table sets forth certain information for the Pension Plan and the Supplemental Pension Plan at
January 31, 2009 and December 31, 2007:
Pension Plan Supplemental Pension Plan
January 31, 2009 December 31, 2007 January 31, 2009 December 31, 2007
(In thousands)
Projected benefit obligation .......... $48,549 $49,324 $5,051 $4,135
Accumulated benefit obligation ....... 43,170 43,575 4,058 3,693
Fair market value of plan assets ....... $42,297 $48,208 $ — $ —
Using the same assumptions as those used to measure our benefit obligations, the Pension Plan and the
Supplemental Pension Plan benefits expected to be paid in each of the following fiscal years are as follows:
Fiscal Year
(In thousands)
2009 ...................................... $ 4,578
2010 ....................................... 4,652
2011 ....................................... 4,853
2012 ....................................... 5,054
2013 ....................................... 5,291
2014 — 2018 ................................ $28,352
Savings Plans
We have a savings plan with a 401(k) deferral feature and a nonqualified deferred compensation plan with a
similar deferral feature for eligible employees. We contribute a matching percentage of employee contributions
and, beginning with calendar year 2006, our matching contribution was funded in cash. Prior matching
contributions were funded by us with our common shares. Our matching contributions are subject to Internal
Revenue Service (“IRS”) regulations. For 2008, 2007, and 2006, we expensed $5.4 million, $5.3 million, and
$5.1 million, respectively, related to our matching contributions. In connection with our nonqualified deferred
compensation plan, we had liabilities of $11.0 million and $13.9 million at January 31, 2009 and February 2,
2008, respectively, and we held treasury shares with historical cost of $0.3 million at January 31, 2009 and
February 2, 2008, respectively.
Note 9 — Income Taxes
The provision for income taxes from continuing operations was comprised of the following:
2008 2007 2006
(In thousands)
Federal — current .............................................. $72,068 $80,988 $ 66,243
State and local — current ........................................ 10,667 6,325 5,044
Deferred — federal, state and local................................. 13,518 25 (13,415)
Net tax expense (benefit) recognized for FIN 48 uncertainties ........... (1,345) 685 —
Income tax provision ......................................... $94,908 $88,023 $ 57,872
The deferred income tax expense (benefit) from discontinued operations was $(2.0) million for 2008, $4.3
million for 2007 and $9.1 million for 2006. Deferred tax assets increased by $5.8 million in 2008, $0.4 million
in 2007 and $3.9 million in 2006, principally due to pension-related charges recorded in accumulated other
comprehensive income. Deferred tax assets also increased by a net $3.3 million in 2007 due to the adoption of
FIN No. 48.
Note 8 — Employee Benefit Plans (Continued)