Big Lots 2009 Annual Report Download - page 190

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BIG LOTS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 11 — Discontinued Operations (Continued)
In the fourth fiscal quarter of 2007, we reached agreement with the KB-I bankruptcy trust with respect to all
of our pending claims against the bankruptcy trust. As a result, we received approximately $7.2 million from
the KB-I bankruptcy trust representing payment of our claims. Approximately $5.4 million of these proceeds
related to our HCC Note claim and $1.8 million related principally to our lease indemnification and mortgage
guarantee claims. The HCC Note proceeds were recorded as a $0.2 million payment against the outstanding
note balance and the remaining $5.2 million was recorded as a reduction of selling and administrative expenses
for recovery of the prior partial charge-offs. As of February 2, 2008, we no longer carried a balance on our
consolidated balance sheet for the HCC Note. The lease indemnification and mortgage guarantee proceeds of
$1.8 million were recorded as income from discontinued operations in 2007.
The following table summarizes these charges and reversals during the years 2007, 2008 and 2009:
2009 2008 2007
(In thousands)
Continuing Operations
HCC Note — Partial recovery of prior charges ....................... $ — $ — $ 5,172
Discontinued Operations
Lease indemnifications. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,609) (4,928) 12,787
Tax indemnifications and other — Partial recovery of prior charges ...... — — 125
KB matters pretax income (loss) from discontinued operations . . . . . . . $ (1,609) $(4,928) $12,912
Note 12 — Business Segment Data
We manage our business based on one segment, broadline closeout retailing. We use the following six
merchandise categories, which match our internal management and reporting of merchandise net sales results:
Consumables, Home, Furniture, Hardlines, Seasonal, and Other.
2009 2008 2007
(In thousands)
Consumables ............................................ $1,456,370 $1,410,383 $1,339,433
Home .................................................. 717,744 713,103 783,047
Furniture ............................................... 716,785 698,276 687,292
Hardlines ............................................... 677,790 646,563 629,119
Seasonal ............................................... 591,321 585,025 597,933
Other .................................................. 566,762 591,933 619,478
Net sales ............................................ $4,726,772 $4,645,283 $4,656,302
The Consumables category includes the food, health and beauty, plastics, paper, chemical, and pet departments.
The Home category includes the domestics, stationery, and home decorative departments. The Furniture
category includes the upholstery, mattresses, ready-to-assemble, and case goods departments. Case goods
consist of bedroom, dining room, and occasional furniture. The Hardlines category includes the electronics,
appliances, tools, and home maintenance departments. The Seasonal category includes the lawn & garden,
Christmas, summer, and other holiday departments. The Other category includes the toy, jewelry, infant
accessories, and apparel departments. Other also includes the results of certain large closeout deals that are
typically acquired through our alternate product sourcing operations.