Big Lots 2010 Annual Report Download - page 98

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Discontinued Operations
We continue to incur an insignificant amount of costs on the 130 stores we closed in 2005 that we have
classified as discontinued operations. We also report certain activity related to our prior ownership of the KB
Toys business in discontinued operations. See note 11 to the accompanying consolidated financial statements for
a more detailed discussion of all of our discontinued operations.
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.
On March 10, 2010, we utilized $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 shares upon consummation of
the transaction. The total number of shares repurchased under the ASR was based upon the volume weighted
average price per common share of our stock 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, at which time,
we received approximately 0.9 million additional common shares from the counterparty. In total, we received
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 opportunistically acquired in the open market approximately
6.0 million of our outstanding common shares for $192.2 million, at a volume weighted average price of $32.16,
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 $57.8 million
at January 29, 2011, and is available to be used to repurchase shares in the open market and/or in privately
negotiated transactions at our discretion, subject to market conditions and other factors. Common shares
acquired through the 2010 Repurchase Program are held in treasury at cost and are available to meet obligations
under equity compensation plans and for general corporate purposes. The 2010 Repurchase Program has no
scheduled termination date and will be funded with cash and cash equivalents, cash generated from operations
or, if needed, by drawing on our 2009 Credit Agreement.
2010 Compared to 2009
Net Sales
As previously discussed, we manage our business on the basis of one segment: broadline closeout retailing. We
report net sales information for six merchandise categories. Net sales by merchandise category, in dollars and
as a percentage of total net sales, and net sales change in dollars and percentage in 2010 compared to 2009 were
as follows:
2010 2009 Change
($ in thousands)
Consumables ................. $ 1,452,783 29.3% $ 1,456,370 30.8% $ (3,587) (0.2)%
Furniture .................... 829,725 16.8 716,785 15.2 112,940 15.8
Home ....................... 783,860 15.8 717,744 15.2 66,116 9.2
Hardlines .................... 699,678 14.1 677,790 14.3 21,888 3.2
Seasonal ..................... 642,220 13.0 591,321 12.5 50,899 8.6
Other ....................... 543,978 11.0 566,762 12.0 (22,784) (4.0)
Net sales .................. $4,952,244 100.0% $ 4,726,772 100.0% $225,472 4.8%