Big Lots 2010 Annual Report Download - page 3

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The Unaudited Adjusted Results, which include financial measures that are not calculated in accordance with accounting principles generally
accepted in the United States of America ("GAAP"), are presented in order to provide additional meaningful financial information for the period
presented. The Unaudited Adjusted Results should not be construed as an alternative to the reported results determined in accordance with
GAAP. Our definition of adjusted results may differ from similarly titled measures used by other companies. While it is not possible to predict
future results, our management believes that the adjusted non-GAAP information is useful for the assessment of our ongoing operations. The
Unaudited Adjusted Results should be read in conjunction with our Consolidated Financial Statements and the related Notes contained in our
Form 10-K for fiscal year 2010.
The 2009 Unaudited Adjusted Results reflect lower selling and administrative expenses as a result of the adjustment for legal settlement
agreement expense and lower operating profit as a result of the adjustment for gain on sale of real estate, both described and reconciled
below ($ in thousands):
Gain on Sale of Real Estate
In fiscal 2009, we recognized $12,964 gain on sale of real estate ($8,163 net of tax) related to the sale of a company-owned and operated
store in California which resulted in an increase of our operating profit.
Legal Settlement
In fiscal 2009, we recorded $4,000 expense ($2,420 net of tax) related to a legal settlement agreement which resulted in an increase of
selling and administrative expenses.
Financial Highlights
(Unaudited Adjusted Results)
(f) The earnings per share for continuing operations, discontinued operations and net income are separately calculated in accordance with Accounting Standards Codification 260;
therefore, the sum of earnings per share for continuing operations and discontinued operations may differ, due to rounding, from the calculated earnings per share of net income.
Fiscal Year 2009
($ in thousands, except per share amounts)
Net sales $ 4,726,772 100.0 % $ - $ - $ 4,726,722 100.0 %
Cost of sales 2,807,466 59.4 - - 2,807,466 59.4
Gross profit 1,919,306 40.6 - - 1,919,306 40.6
Selling and administrative expenses 1,532,356 32.4 - (4,000) 1,528,356 32.3
Depreciation expense 74,904 1.6 - - 74,904 1.6
Gain on sale of real estate (12,964) (0.3) 12,964 - - -
Operating profit 325,010 6.9 (12,964) 4,000 316,046 6.7
Interest expense (1,840) (0.0) - - (1,840) (0.0)
Interest income 175 0.0 - - 175 0.0
Income from continuing operations
before income taxes 323,345 6.8 (12,964) 4,000 314,381 6.7
Income tax expense 121,975 2.6 (4,801) 1,580 118,754 2.5
Income from continuing operations 201,370 4.3 (8,163) 2,420 195,627 4.1
Loss from discontinued operations (1,001) (0.0) - - (1,001) (0.0)
Net income $ 200,369 4.2 % $ (8,163) $ 2,420 $ 194,626 4.1 %
Earnings per common share - basic:
(
f)
Continuing operations $ 2.47 $ (0.10) $ 0.03 $ 2.40
Discontinued operations (0.01) - - (0.01)
Net income $ 2.45 $ (0.10) $ 0.03 $ 2.38
Earnings per common share - diluted:
(
f)
Continuing operations $ 2.44 $ (0.10) $ 0.03 $ 2.37
Discontinued operations (0.01) - - (0.01)
Net income $ 2.42 $ (0.10) $ 0.03 $ 2.35
Reported (GAAP)
Gain on
Sale of
Real Estate
Legal
Settlement
Unaudited
Adjusted Results
(non-GAAP)