Big Lots 2010 Annual Report Download - page 128

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BIG LOTS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 6 — Shareholders’ Equity
Earnings per Share
There were no adjustments required to be made to weighted-average common shares outstanding for purposes
of computing basic and diluted earnings per share and there were no securities outstanding in any year
presented, which were excluded from the computation of earnings per share other than antidilutive employee
and director stock options and non-vested restricted stock awards. At the end of 2010, 2009, and 2008, stock
options outstanding of 0.9 million, 2.9 million, and 2.0 million, respectively, were excluded from the diluted
share calculation because their impact was antidilutive. Antidilutive options are excluded from the calculation
because they decrease the number of diluted shares outstanding under the treasury stock method. Antidilutive
options are generally outstanding options where the exercise price per share is greater than the weighted-
average market price per share for our common shares for each period. The number of shares of non-vested
restricted stock that were antidilutive, as determined under the treasury stock method, is immaterial for all
years presented.
A reconciliation of the number of weighted-average common shares outstanding used in the basic and diluted
earnings per share computations is as follows:
2010 2009 2008
(In thousands)
Weighted-average common shares outstanding:
Basic.......................................................... 77,596 81,619 81,111
Dilutive effect of stock options and restricted common shares . . . . . . . . . . . . . 985 1,062 965
Diluted ........................................................ 78,581 82,681 82,076
Share Repurchase Program
In December 2009, our Board of Directors authorized a share repurchase program providing for the repurchase
of up to $150.0 million of our common shares. On March 2, 2010, our Board of Directors authorized a
$250.0 million increase to our repurchase program bringing the total authorization to $400.0 million
(collectively the “2010 Repurchase Program”).
On March 10, 2010, we used $150.0 million of the authorization under the 2010 Repurchase Program to execute
the ASR which reduced our common shares outstanding by 3.6 million. The ASR called for the total number of
shares repurchased thereunder to be determined at final settlement of the transaction based upon the volume-
weighted average price of our common shares over a predetermined period. The ASR was scheduled to be
completed no later than January 26, 2011, but the counterparty had the option to accelerate the completion date.
The counterparty exercised its acceleration option and the ASR settled on December 30, 2010. On settlement,
we received approximately 0.9 million additional common shares from the counterparty, bringing the total
shares acquired as a result of the ASR to 4.5 million common shares at a weighted average cost of $33.51 per
share. Additionally, with the completion of the ASR, the contractual restriction preventing us from declaring a
dividend lapsed.
In addition to the ASR, during 2010, we acquired approximately 6.0 million of our outstanding common shares
for $192.2 million through opportunistic repurchases under the 2010 Repurchase Program. Our total share
repurchases under the 2010 Repurchase Program, including both the ASR and opportunistic repurchases,
were 10.5 million of our outstanding common shares for $342.2 million in 2010, at an average purchase price
of $32.74.
Our remaining repurchase authorization under the 2010 Repurchase Program was approximately $57.8 million
at January 29, 2011, and is available to be utilized to repurchase shares in the open market and/or in privately
negotiated transactions at our discretion, subject to market conditions and other factors. Common shares
acquired through the 2010 Repurchase Program are held in treasury at cost and are available to meet obligations