Big Lots 2012 Annual Report Download - page 93

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13
store properties for an aggregate purchase price of $8.3 million. Additionally, we closed one owned site in 2012
for which we have not yet completed the sale transaction. Since this owned site is no longer operating as an
active store, it has been excluded from our store counts at February 2, 2013. The 56 owned stores are located in
the following states:
State
Stores
Owned
Arizona.................................... 3
California .................................. 40
Colorado................................... 3
Florida .................................... 3
Louisiana .................................. 1
New Mexico................................ 2
Ohio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Texas ..................................... 3
Total ................................... 56
Store leases generally obligate us for fixed monthly rental payments plus the payment, in most cases, of our
applicable portion of real estate taxes, common area maintenance costs (“CAM”), and property insurance. Some
leases require the payment of a percentage of sales in addition to minimum rent. Such payments generally are
required only when sales exceed a specified level. Our typical store lease is for an initial minimum term of five
to ten years with multiple five-year renewal options. Seventy-four store leases have sales termination clauses
which can result in our exiting a location at our option if certain sales volume results are not achieved.
The following table summarizes the number of store lease expirations in each of the next five fiscal years and
the total thereafter. In addition, as stated above, many of our store leases have renewal options. The table also
includes the number of leases that are scheduled to expire each year that do not have a renewal option. The
information includes stores with more than one lease and leases for stores not yet open. It excludes 17 month-to-
month leases and 56 owned locations.
Fiscal Year:
Expiring
Leases
Leases
Without
Options
2013. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305 55
2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 308 44
2015. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246 37
2016. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249 37
2017. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215 38
Thereafter .................................. 230 17
Warehouse and Distribution
At February 2, 2013, we owned or leased approximately 9.5 million square feet of distribution center and
warehouse space. We own and operate five regional distribution centers strategically placed across the
United States in Ohio, California, Alabama, Oklahoma, and Pennsylvania. We lease and operate two regional
distribution centers in Canada located in British Columbia and Ontario. The regional distribution centers in our
U.S. segment utilize warehouse management technology, which we believe enables high accuracy and efficient
processing of merchandise from vendors to our retail stores. The combined output of our regional distribution
centers was approximately 2.6 million cartons per week in 2012. Certain vendors deliver merchandise directly
to our stores when it supports our operational goal to move merchandise from our vendors to the sales floor in
the most efficient manner.