Big Lots 2009 Annual Report Download - page 178

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BIG LOTS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 7 – Share-Based Plans (Continued)
On the grant date of the 2009 awards, we estimated a three-year period for vesting based on the assumed
achievement of the higher financial performance objective. In the third fiscal quarter of 2009, 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 $0.1 million of incremental expense in the third
fiscal quarter of 2009. In the fourth fiscal quarter of 2009, we changed the estimated achievement date for the
higher financial performance objective from two years to one year due to better operating results than initially
anticipated, 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 $3.2 million in the fourth fiscal quarter of 2009.
In 2009 and 2008, we granted restricted stock awards having a fair value on the grant date of approximately
$75,000 to each of the non-employee members of our Board of Directors. These awards vest on the earlier of 1)
the trading day immediately preceding the next annual meeting of our shareholders; 2) the death of the grantee;
or 3) the disability of the grantee; provided, however, the director’s restricted stock award will be forfeited if he
or she ceases to serve on our Board of Directors before the first of such vesting events occurs.
The non-vested restricted stock awarded to Mr. Fishman upon the commencement of his employment as our
Chairman, Chief Executive Officer and President in 2005 vested in one-third increments upon the attainment
of mutually agreed common share price targets. In 2006, the first common share price target was achieved and
one-third of this award vested. During the first fiscal quarter of 2007, the second and third common share price
targets of this award were met, resulting in the vesting of the remaining 66,667 common shares underlying this
restricted stock award and related expense of $0.7 million.
The non-vested restricted stock awarded in 2004 to certain of our officers as a retention package upon the
transition of the former Chief Executive Officer and President to a different position vested equally over
three years. The 2004 restricted stock grants were forfeited, in whole or in part, as applicable, if the employee
voluntarily terminated his or her employment or if the employee was terminated for cause. Of the 172,000
shares originally underlying these restricted stock awards, 10,000 were forfeited in 2005 and the remaining
162,000 vested equally in January 2006, 2007 and 2008.
During 2009, 2008, and 2007, the following activity occurred under our share-based compensation plans:
2009 2008 2007
(In thousands)
Total intrinsic value of stock options exercised .......................... $ 5,079 $ 13,510 $45,987
Total fair value of restricted stock vested ............................... $6,954 $ 37 $ 11,822
The total unearned compensation cost related to share-based awards outstanding at January 30, 2010, is
approximately $17.8 million. This compensation cost is expected to be recognized through January 2014 based
on existing vesting terms with the weighted average remaining expense recognition period being approximately
1.8 years from January 30, 2010.