Big Lots 2009 Annual Report Download - page 170

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BIG LOTS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 1 — Summary of Significant Accounting Policies (Continued)
Fair Value
Effective February 1, 2009, we adopted guidance under ASC 820, Fair Value Measurements and Disclosures,
(FSP SFAS 157-2, Effective Date of SFAS No. 157, Fair Value Measurements). This guidance relates to the
fair value of non-financial assets and liabilities that are recognized or disclosed at fair value in the financial
statements on a non-recurring basis. This guidance addresses how companies should approach measuring fair
value and expands the disclosure requirements applicable to fair value measurements under other accounting
pronouncements that require or permit fair value measurements. The guidance establishes a single definition
of fair value that is to be applied consistently for all accounting applications and also generally describes, and
prioritizes according to reliability, the methods and inputs used in fair value measurements. The guidance
prescribes additional disclosures regarding the extent to which a company includes fair value measurements in
its financial statements and the methods and inputs used to arrive at these values. The adoption of this guidance
relating to fair value of non-financial assets and liabilities did not have a material effect on our financial
condition, results of operations, or liquidity.
In the second fiscal quarter of 2009, we adopted guidance under ASC 820-10, Fair Value Measurements and
Disclosures, (FSP SFAS 157-4, Determining Fair Value When the Volume and Level of Activity for the Asset
or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly). This guidance
provides guidelines for making fair value measurements more consistent with the principles presented in the
previous standard SFAS No. 157, Fair Value Measurements. The adoption of this guidance did not have a
material effect on our financial condition, results of operations, or liquidity.
In the second fiscal quarter of 2009, we adopted guidance under ASC 825-10, Financial Instruments (FSP
FAS 107-1 and Accounting Principles Bulletin (APB) 28-1, Interim Disclosures about Fair Value of Financial
Instruments). The guidance amended SFAS No. 107, Disclosures about Fair Value of Financial Instruments
(SFAS 107), to require disclosures about fair value of financial instruments within the scope of SFAS 107 for
interim reporting periods of publicly traded companies as well as in annual financial statements. See “Fair
Value of Financial Instruments” within note 1 for this disclosure. The adoption of this guidance did not have a
material effect on our financial condition, results of operations, or liquidity.
Other-Than-Temporary Impairments
In the second fiscal quarter of 2009, we adopted guidance under ASC 320, Investments – Debt and Equity
Securities (FSP SFAS 115-2 and FSP SFAS 124-2, Recognition and Presentation of Other-Than-Temporary
Impairments). This guidance is designed to create greater clarity and consistency in accounting for and
presentation of impairment losses on debt and equity securities. As of the beginning of the interim period of
adoption, this guidance requires a cumulative-effect adjustment to reclassify the non-credit component of
previously recognized other-than-temporary impairment losses from retained earnings to the beginning balance
of accumulated other comprehensive income. The adoption of this guidance did not have a material effect on
our financial condition, results of operations, or liquidity.
Employee Benefit Plans
Effective January 30, 2010, we adopted guidance under ASC 715, Compensation-Retirement Benefits (FSP SFAS
132(R)-1, Employers’ Disclosures about Postretirement Benefit Plan Assets). This guidance requires the disclosure
of additional information about an employer’s defined benefit pension plans. The required disclosures include the
major categories of plan assets, fair value measurements for each major category of plan assets segregated by fair
value hierarchy level, investment policies and strategies, significant concentrations of credit risk, and the effect of
fair value measurements, determined by financial models or using unobservable inputs, on changes in plan assets
for the period. The required disclosures under this guidance are included in note 8. The adoption of this guidance
did not have a material effect on our financial condition, results of operations, or liquidity.