Big Lots 2009 Annual Report Download - page 169

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BIG LOTS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 1 — Summary of Significant Accounting Policies (Continued)
Earnings per Share
Basic earnings per share is based on the weighted-average number of shares outstanding during each period.
Diluted earnings per share is based on the weighted-average number of shares outstanding during each period
and the additional dilutive effect of stock options and non-vested restricted stock awards, calculated using the
treasury stock method.
Store Pre-opening Costs
Pre-opening costs incurred during the construction periods for new store openings are expensed as incurred.
Guarantees
We have lease guarantees which were issued prior to January 1, 2003. We record a liability for these lease
guarantees in the period when it becomes probable that the obligor will fail to perform its obligation and if the
amount of our guarantee obligation is estimable.
Other Comprehensive Income
Our Other Comprehensive Income includes principally the impact of the amortization of our pension actuarial
loss, net of tax, and the revaluation of our pension actuarial loss, net of tax.
Recently Adopted Accounting Standards
FASB Codification
In the third fiscal quarter of 2009, we adopted ASC (SFAS No. 168, The FASB Accounting Standards Codification
and the Hierarchy of Generally Accepted Accounting Principles – a replacement of SFAS No. 162). This guidance
is the source of authoritative GAAP for nongovernmental entities. The ASC does not change GAAP but rather
takes the numerous individual pronouncements that previously constituted GAAP and reorganizes them into
approximately 90 accounting topics, and displays all topics using a consistent structure. The adoption of the ASC
did not have a material effect on our financial condition, results of operations, or liquidity.
Subsequent Events
In the second fiscal quarter of 2009, we adopted guidance under ASC 855, Subsequent Events, (SFAS No.
165, Subsequent Events). This guidance established general standards of accounting for, and disclosure of,
events that occur after the balance sheet date but before financial statements are issued or are available to be
issued. The guidance prescribes accounting practices that are similar to those previously prescribed in auditing
literature. However, under this guidance, we were required to provide in each of our periodic filings with the
SEC the date through which we had evaluated subsequent events. The adoption of this guidance did not have a
material effect on our financial condition, results of operations, or liquidity.
In February 2010, the FASB issued Accounting Standard Update (“ASU”) 2010-09, Amendments to Certain
Recognition and Disclosure Requirements, which amends ASC 855, Subsequent Events. This guidance,
effective upon issuance, requires an entity that is an SEC filer to evaluate subsequent events through the date
that the financial statements were issued. For an SEC filer, this guidance also eliminates the required disclosure
of the date through which subsequent events were evaluated. The adoption of this guidance did not have a
material effect on our financial condition, results of operations, or liquidity. See note 14, “Subsequent Events.”