Big Lots 2009 Annual Report Download - page 148

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Cash used in investing activities was $77.9 million, $88.2 million, and $58.8 million in 2009, 2008, and 2007,
respectively. The 2009 decrease in cash used in investing activities of $10.3 and the 2008 increase in cash used
in investing activities of $29.4 million was principally due to fluctuations in capital expenditures year from
year. The 2009 capital expenditures were driven by the investments in 52 new store openings and the continued
development of our SAP® for Retail system. The 2008 capital expenditures were driven by the investments in
21 new store openings, our SAP® for Retail system, which included development costs and additional payments
for hardware and licensing fees, the completion of the installation of new cash registers in all of our stores,
and the acquisition of two store properties that were previously leased. We expect capital expenditures to be
approximately $115 million in 2010, comprised principally of maintenance capital of approximately $35 million
to $40 million, real estate capital of approximately $35 million to $40 million driven by our plan to open 80 new
stores, and other investments of approximately $40 million which include, among other things, capital to refresh
120 stores, investment in energy management systems for 700 stores, and our continued software development
of the SAP® for Retail system.
Cash used in financing activities was $65.1 million, $125.2 million, and $493.7 million in 2009, 2008, and 2007,
respectively. In 2009, cash used in financing activities was principally due to the repayment of borrowings
outstanding under our bank credit facility of $60.7 million and the payment of bank fees of $5.6 million associated
with our entry into the 2009 Credit Agreement, partially offset by the proceeds from the exercise of stock options of
$4.9 million. In 2008, cash used in financing activities was principally due to net payments on our prior bank credit
facility of $102.0 million and $37.5 million of payments for treasury shares acquired under our November 2007
Repurchase Program, partially offset by proceeds from the exercise of stock options of $10.9 million.
In December 2009, our Board of Directors authorized a share repurchase program providing for the repurchase
of up to $150 million of our common shares. No shares were repurchased under this program in 2009.
On March 2, 2010, our Board of Directors authorized a $250.0 million increase to our $150.0 million program
bringing the total authorization of the 2010 Repurchase Program to $400.0 million. On March 10, 2010, we utilized
$150.0 million of the authorization to execute an accelerated share repurchase transaction which reduced our
common shares outstanding by 3.6 million. The total number of shares repurchased under the ASR will be based
upon the volume weighted average price of our stock over a predetermined period and will not be known until that
period ends and a final settlement occurs. The final settlement could increase or decrease the 3.6 million shares
initially reduced from our outstanding common shares. The terms of the ASR restrict us from declaring a dividend
prior to its completion, which is currently scheduled to be no later than January 26, 2011. The remaining $250 million
will be utilized to repurchase shares in the open market and/or in privately negotiated transactions at our discretion,
subject to market conditions and other factors. Common shares acquired through the 2010 Repurchase Program
will be available to meet obligations under equity compensation plans and for general corporate purposes. The
2010 Repurchase Program will continue until exhausted and will be funded with cash and cash equivalents, cash
generated during fiscal 2010 or, if needed, by drawing on our $500.0 million unsecured credit facility.
Based on historical and expected financial results, we believe that we have or, if necessary, have the ability
to obtain, adequate resources to fund ongoing and seasonal working capital requirements, proposed capital
expenditures, new projects, and currently maturing obligations.