Big Lots 2010 Annual Report Download - page 105

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Cash used in financing activities was $306.9 million, $65.1 million, and $125.2 million in 2010, 2009,
and 2008, respectively. In 2010, cash used in financing activities was principally due to share repurchases
associated with 2010 Repurchase Program, including the ASR, totaling $342.2 million, partially offset by
proceeds from the exercise of stock options and the related tax benefits totaling $46.3 million. In 2009, cash
used in financing activities was principally due to the repayment of borrowings outstanding under our bank
credit facility of $61.7 million and the payment of bank fees of $5.6 million associated with our entry into the
2009 Credit Agreement, partially offset by the proceeds from the exercise of stock options of $4.9 million. In
2008, cash used in financing activities was principally due to net payments on our prior bank credit facility
of $102.0 million and $37.5 million of payments for treasury shares acquired under our November 2007
Repurchase Program, partially offset by proceeds from the exercise of stock options of $10.9 million.
Based on historical and expected financial results, we believe that we have or, if necessary, have the ability
to obtain, adequate resources to fund ongoing and seasonal working capital requirements, proposed capital
expenditures, new projects, and currently maturing obligations.
Contractual Obligations
The following table summarizes payments due under our contractual obligations at January 29, 2011:
Payments Due by Period (1)
Total Less than 1 year 1 to 3 years 3 to 5 years More than 5 years
(In thousands)
Obligations under bank credit facility (2) .... $ — $ — $ — $ — $ —
Operating lease obligations (3) (4) .......... 1,003,071 274,500 425,107 212,558 90,906
Capital lease obligations (4) .............. 2,272 1,377 895 — —
Purchase obligations (4) (5) ................ 870,660 704,319 139,160 27,178 3
Other long-term liabilities (6) . . . . . . . . . . . . . 56,418 11,180 15,031 4,787 25,420
Total contractual obligations (7) ........ $ 1,932,421 $ 991,376 $ 580,193 $ 244,523 $ 116,329
(1) The disclosure of contractual obligations in this table is based on assumptions and estimates that we
believe to be reasonable as of the date of this report. Those assumptions and estimates may prove to be
inaccurate; consequently, the amounts provided in the table may differ materially from those amounts
that we ultimately incur. Variables that may cause the stated amounts to vary from the amounts actually
incurred include, but are not limited to: the termination of a contractual obligation prior to its stated or
anticipated expiration; fees or damages incurred as a result of the premature termination or breach of a
contractual obligation; the acquisition of more or less services or goods under a contractual obligation than
are anticipated by us as of the date of this report; fluctuations in third party fees, governmental charges, or
market rates that we are obligated to pay under contracts we have with certain vendors; and the exercise of
renewal options under, or the automatic renewal of, contracts that provide for the same.
(2) Obligations under the bank credit facility consist of the borrowings outstanding under the 2009 Credit
Agreement. In addition, we had outstanding letters of credit totaling $49.8 million at January 29, 2011.
Approximately $48.4 million of the outstanding letters of credit represent stand-by letters of credit and
we do not expect to meet the conditions requiring significant cash payments on these letters of credit;
accordingly, they have been excluded from this table. The remaining outstanding letters of credit represent
commercial letters of credit whereby the related obligation is included in the purchase obligations. For a
further discussion, see note 3 to the accompanying consolidated financial statements.
(3) Operating lease obligations include, among other items, leases for retail stores, warehouse space, offices,
and certain computer and other business equipment. The future minimum commitments for retail store,
office, and warehouse space operating leases are $751.7 million. For a further discussion of leases, see
note 5 to the accompanying consolidated financial statements. Many of the store lease obligations require
us to pay for our applicable portion of CAM, real estate taxes, and property insurance. In connection with
our store lease obligations, we estimated that future obligations for CAM, real estate taxes, and property
insurance were $238.8 million at January 29, 2011. We have made certain assumptions and estimates in