Big Lots 2010 Annual Report Download - page 131

57
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 nonvested restricted stock activity for fiscal years 2008, 2009, and 2010 is as follows:
Number of Shares
Weighted
Average Grant
Date Fair Value
Per Share
Outstanding restricted stock awards at February 2, 2008 ................ 320,900 $ 28.72
Granted ....................................................... 408,000 21.84
Vested ........................................................ (1,800) 26.43
Forfeited ...................................................... (10,825) 28.76
Outstanding restricted stock awards at January 31, 2009 . . . . . . . . . . . . . . . . 716,275 24.81
Granted ....................................................... 471,688 17.91
Vested ........................................................ (327,675) 28.85
Forfeited ...................................................... (10,800) 20.50
Outstanding restricted stock awards at January 30, 2010 . . . . . . . . . . . . . . . . 849,488 19.48
Granted ....................................................... 507,684 35.88
Vested ........................................................ (847,688) 19.46
Forfeited ...................................................... (5,700) 33.44
Outstanding restricted stock awards at January 29, 2011 . . . . . . . . . . . . . . . . 503,784 $35.88
The nonvested restricted stock awards granted to employees in 2010 (other than to Mr. Fishman), 2009, and
2008 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. The
nonvested restricted stock award granted to Mr. Fishman in 2010 vests if we achieve a corporate financial goal
for 2010 and he is employed by us on the anniversary of the grant date of the award. If either of the conditions is
not achieved, the restricted stock award is forfeited. If both of the conditions are achieved, Mr. Fishman’s 2010
restricted stock will vest after we file this Form 10-K with the SEC.
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 vested on the
trading date following the filing of the 2009 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, and
$0.7 million in the first fiscal quarter of 2010.