Big Lots 2010 Annual Report Download - page 79

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The seasonality of our net sales and related merchandise inventory requirements influences our availability of
and demand for cash or access to credit. We historically have drawn upon our credit facility to assist in funding
our working capital requirements, which typically peak near the end of our third fiscal quarter. We historically
have higher net sales, operating profits, and cash flow provided by operations in the fourth fiscal quarter
which allows us to substantially repay our seasonal borrowings. In 2010, our total indebtedness (outstanding
borrowings and letters of credit) peaked at approximately $200 million in November 2010 under our $500.0
million unsecured credit facility entered into in April 2009 (“2009 Credit Agreement”). As of January 29, 2011,
we had no borrowings under the 2009 Credit Agreement. We expect that borrowings will vary throughout
2011 depending on various factors, including our seasonal need to acquire merchandise inventory prior to peak
selling seasons, the timing and amount of sales to our customers and the potential impact of shares repurchased
under our authorized share repurchase program. For additional information on our current share repurchase
program, the 2009 Credit Agreement, and a discussion of our sources and uses of funds, see “Item 5. Market
for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities”
and the discussion under the caption “Capital Resources and Liquidity” in the accompanying MD&A, in this
Form 10-K.
Available Information
We make available, free of charge, through the “Investor Relations” section of our website (www.biglots.com)
under the “SEC Filings” caption, our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current
Reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934, as amended (“Exchange Act”), as soon as reasonably practicable after we file
such material with, or furnish it to, the Securities and Exchange Commission (“SEC”).
In this Form 10-K, we incorporate by reference certain information from parts of our Proxy Statement for our
2011 Annual Meeting of Shareholders (“2011 Proxy Statement”).
In the “Investor Relations” section of our website (www.biglots.com) under the “Corporate Governance”
and “SEC Filings” captions, the following information relating to our corporate governance may be found:
Corporate Governance Guidelines; charters of our Board of Directors’ Audit, Compensation, Nominating/
Corporate Governance, Strategic Planning, and Public Policy and Environmental Affairs Committees; Code
of Business Conduct and Ethics; Code of Ethics for Financial Professionals; Chief Executive Officer and Chief
Financial Officer certifications related to our SEC filings; the means by which shareholders may communicate
with our Board of Directors; and transactions in our securities by our directors and executive officers. The
Code of Business Conduct and Ethics applies to all of our associates, including our directors and our principal
executive officer, principal financial officer, and principal accounting officer. The Code of Ethics for Financial
Professionals applies to our Chief Executive Officer and all other Senior Financial Officers (as that term is
defined therein) and contains provisions specifically applicable to the individuals serving in those positions. We
intend to post amendments to and waivers from, if any, our Code of Business Conduct and Ethics (to the extent
applicable to our directors and executive officers) and our Code of Ethics for Financial Professionals in the
“Investor Relations” section of our website (www.biglots.com) under the “Corporate Governance” caption. We
will provide any of the foregoing information without charge upon written request to our Corporate Secretary.
The contents of our websites are not part of this report.
ITEM 1A. RISK FACTORS
The statements in this section describe the material risks to our business and should be considered carefully. In
addition, these statements constitute cautionary statements under the Private Securities Litigation Reform Act
of 1995.
Our disclosure and analysis in this Form 10-K and in our 2010 Annual Report to Shareholders contain some
forward-looking statements that set forth anticipated results based on management’s plans and assumptions.
From time to time, we also provide forward-looking statements in other materials we release to the public as
well as oral forward-looking statements. Such statements give our current expectations or forecasts of future
events; they do not relate strictly to historical or current facts. We have tried, wherever possible, to identify such
statements by using words such as “anticipate,” “estimate,” “expect,” “objective,” “goal,” “project,” “intend,”