Big Lots 2011 Annual Report Download - page 141

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goods sold in our U.S. segment have been core to our success, and consumers in Canada will respond to our
extreme value proposition. Additionally, many of the vendors with whom we have strong relationships in the
U.S. also have Canadian operations in need of an established closeout partner; therefore, we believe we have
potential access to similar merchandise offerings in order to execute this strategy.
During 2012, we will be focused on: (1) continuing to increase our inventory to the appropriate levels, while
developing a broad assortment of merchandise; (2) building and training our store teams; (3) assessing the real
estate and cost structure elements of our new business as we prepare for new store growth currently planned to
begin in 2013; and (4) executing certain test and learn activities to facilitate key strategic initiatives.
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 13 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. During 2010, we acquired
10.5 million of our outstanding common shares for $342.2 million under the 2010 Repurchase Program. On
May 25, 2011, our Board of Directors authorized a share repurchase program providing for the repurchase of
up to $400.0 million of our common shares. During 2011, we acquired 11.0 million of our outstanding common
shares in the open market for approximately $359.3 million, at a volume weighted average price of $32.79. As a
result of the repurchases in 2011, we exhausted our authorization under the 2010 Repurchase Program and utilized
$301.5 million under the 2011 Repurchase Program.
Our remaining repurchase authorization under the 2011 Repurchase Program was approximately $98.5 million
at January 28, 2012, and is available to be utilized to repurchase shares in the open market and/or in privately
negotiated transactions at our discretion, subject to market conditions and other factors. Common shares
acquired through the 2011 Repurchase Program are held in treasury at cost and are available to meet obligations
under equity compensation plans and for general corporate purposes. The 2011 Repurchase Program has no
scheduled termination date and will be funded with cash and cash equivalents, cash generated from operations
or, if needed, by drawing on our 2011 Credit Agreement.
2011 Compared to 2010
U.S. Segment
Net Sales
Net sales by merchandise category, in dollars and as a percentage of total net sales, and net sales change in
dollars and percentage in 2011 compared to 2010 were as follows:
2011 2010 Change
($ in thousands)
Consumables ................ $1,571,771 30.6% $1,452,783 29.3% $ 118,988 8.2%
Furniture.................... 883,341 17.2 829,725 16.8 53,616 6.5
Home ...................... 799,494 15.5 783,860 15.8 15,634 2.0
Play n’ Wear ................ 776,445 15.1 811,750 16.4 (35,305) (4.3)
Seasonal .................... 683,498 13.3 642,220 13.0 41,278 6.4
Hardlines & Other ............ 425,615 8.3 431,906 8.7 (6,291) (1.5)
Net sales ................. $5,140,164 100.0% $4,952,244 100.0% $ 187,920 3.8%