Big Lots 2013 Annual Report Download - page 203

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In the second quarter of 2013, in connection with his appointment as CEO and President, Mr. Campisi was awarded 37,800
performance share units, which vest based on the achievement of share price performance goals. The performance share units have
a contractual term of seven years. If the performance goals applicable to the performance share units are not achieved prior to
expiration, the awards will be forfeited.
The restricted stock award granted to Mr. Fishman in 2011 vested in 2012 based on achievement of the corporate financial goals for
2011. The nonvested restricted stock award granted to Mr. Fishman in 2012 was forfeited in the first quarter of 2013, because we
failed to achieve a corporate financial goal set for 2012.
In 2013, 2012, and 2011, we granted to each non-employee member of our Board of Directors a restricted stock award. In 2013,
each had a fair value on the grant date of approximately $100,000. These awards vest on the earlier of (1) the trading day
immediately preceding the next annual meeting of our shareholders or (2) the death or disability of the grantee. However, the
restricted stock award will not vest if the non-employee director ceases to serve on our Board of Directors before either vesting
event occurs.
During 2013, 2012, and 2011, the following activity occurred under our share-based compensation plans:
(In thousands) 2013 2012 2011
Total intrinsic value of stock options exercise
d
$2,646 $29,350 $ 8,747
Total fair value of restricted stock vested $2,237 $21,907 $ 11,618
The total unearned compensation cost related to all share-based awards outstanding at February 1, 2014 was approximately $27.6
million. This compensation cost is expected to be recognized through January 2019 based on existing vesting terms with the
weighted-average remaining expense recognition period being approximately 2.5 years from February 1, 2014.
NOTE 8 – EMPLOYEE BENEFIT PLANS
Pension Benefits
We maintain the Pension Plan and Supplemental Pension Plan covering certain employees whose hire date was on or before
April 1, 1994. Benefits under each plan are based on credited years of service and the employee's compensation during the last
five years of employment. The Supplemental Pension Plan is maintained for certain highly compensated executives whose
benefits were frozen in the Pension Plan in 1996. The Supplemental Pension Plan is designed to pay benefits in the same
amount as if the participants continued to accrue benefits under the Pension Plan. We have no obligation to fund the
Supplemental Pension Plan, and all assets and amounts payable under the Supplemental Pension Plan are subject to the claims
of our general creditors.
The components of net periodic pension expense were comprised of the following:
(In thousands) 2013 2012 2011
Service cost -
b
enefits earned in the perio
d
$ 2,086 $2,171 $ 2,211
Interest cost on projected benefit obligation 3,041 3,292 3,496
Expected investment return on plan assets (2,893)(3,089)(4,627)
Amortization of prior service cos
t
(34)(34)(34)
Amortization of transition obligation 12 13 13
Amortization of actuarial loss 1,692 2,345 1,796
Settlement loss 83 298 298
N
et periodic pension cos
t
$ 3,987 $ 4,996 $ 3,153
In 2013, 2012, and 2011, we incurred pretax non-cash settlement charges of $0.1 million, $0.3 million and $0.3 million,
respectively. The settlement charges were caused by lump sum benefit payments made to plan participants in excess of
combined annual service cost and interest cost for each year.