Big Lots 2010 Annual Report Download - page 145

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71
BIG LOTS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 12 — Sales of Real Estate
In September 2006, to avoid litigation under the threat of eminent domain, we sold a company-owned and
operated store in California for an approximate gain of $12.8 million. As part of the sale, we entered into a lease
which permitted us to occupy and operate the store through January 2009 in exchange for $1 per year rent plus
the cost of taxes, insurance, and common area maintenance. Subsequently, this lease was modified to allow us
to occupy this space through September 2009 under substantially the same terms. Because of the favorable lease
terms, we deferred recognition of the gain until we no longer held a continuing involvement in the property. As
a result, the gain on the sale was deferred until the end of the lease and the net sales proceeds of approximately
$13.3 million were recorded as a long-term real estate liability included in other liabilities on our consolidated
balance sheet in prior years. In the third fiscal quarter of 2009, after attempts to further extend the lease term
were unsuccessful, we closed the store, ending our continuing involvement with this property, and recognized a
pretax gain on sale of real estate of $13.0 million.
Note 13 — 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, Furniture, Home, Seasonal, Hardlines, and Other. The Consumables category includes the
food, health and beauty, plastics, paper, chemical, and pet 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 Home category includes the domestics, stationery, and home
decorative departments. The Seasonal category includes the lawn & garden, Christmas, summer, and other
holiday departments. The Hardlines category includes the electronics, appliances, tools, and home maintenance
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.
The following table presents net sales data by category:
2010 2009 2008
(In thousands)
Consumables ........................................... $ 1,452,783 $ 1,456,370 $ 1,410,383
Furniture .............................................. 829,725 716,785 698,276
Home ................................................. 783,860 717,744 713,103
Hardlines .............................................. 699,678 677,790 646,563
Seasonal .............................................. 642,220 591,321 585,025
Other ................................................. 543,978 566,762 591,933
Net sales .............................................. $4,952,244 $4,726,772 $4,645,283