Big Lots 2009 Annual Report Download - page 177

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BIG LOTS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 7 – Share-Based Plans (Continued)
The number of stock options expected to vest was based on our annual forfeiture rate assumption.
A summary of the non-vested restricted stock activity for fiscal years 2007, 2008, and 2009 is as follows:
Number of Shares
Weighted
Average Grant
Date Fair Value
Nonvested restricted stock at February 3, 2007 ....................... 408,671 $12.37
Granted ...................................................... 325,400 28.73
Vested ....................................................... (406,871) 12.34
Forfeited ..................................................... (6,300) 26.45
Nonvested restricted stock at February 2, 2008 ....................... 320,900 28.72
Granted ...................................................... 408,000 21.84
Vested ....................................................... (1,800) 26.43
Forfeited ..................................................... (10,825) 28.76
Nonvested restricted stock at January 31, 2009 ....................... 716,275 24.81
Granted ...................................................... 471,688 17.91
Vested ....................................................... (327,675) 28.85
Forfeited ..................................................... (10,800) 20.50
Nonvested restricted stock at January 30, 2010 ....................... 849,488 $19.48
The non-vested restricted stock awards granted to employees in 2009, 2008, and 2007 vest if certain financial
performance objectives are achieved. If we meet a threshold financial performance objective and the grantee
remains employed by us, the restricted stock will vest on the opening of our first trading window five years
after the grant date of the award. If we meet a higher financial performance objective and the grantee remains
employed by us, the restricted stock will vest on the first trading day after we file our Annual Report on Form
10-K with the SEC for the fiscal year in which the higher objective is met.
On the grant date of the 2007 awards, we estimated a three-year period for vesting based on the assumed
achievement of the higher financial performance objective. In the second fiscal quarter of 2007, we changed
the estimated achievement date from three years to two years as a result of our performance being better than
expected, resulting in $1.6 million and $1.1 million of incremental expense in 2008 and 2007, respectively.
We achieved the higher financial performance objective for the 2007 awards based on the 2008 results, and
accordingly these awards vested on March 30, 2009, the first trading date following the filing of our Annual
Report on Form 10-K for 2008.
On the grant date of the 2008 awards, we estimated a three-year period for vesting based on the assumed
achievement of the higher financial performance objective. In the second fiscal quarter of 2008, we changed
the estimated achievement date for the higher financial performance objective from three years to two years
due to better operating results than initially anticipated, resulting in $0.8 million of incremental expense in
2008. In the fourth fiscal quarter of 2008, we changed the estimated achievement date for the higher financial
performance objective from two years to three years due to our declining net sales results which were in part
due to the general economic conditions in the United States. In the third fiscal quarter of 2009, we changed
the estimated achievement date for the higher financial performance objective for the restricted stock awards
granted during 2008 from three years to two years. Based on our 2009 results, we achieved the higher financial
performance objective for restricted stock awards granted in 2008, and accordingly these awards will vest on
the trading date following the filing of this Form 10-K. As a result of this change, we recorded incremental
expense of $0.5 million and $1.3 million in the third and fourth fiscal quarters of 2009, respectively.