Big Lots 2013 Annual Report Download - page 43

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• Any profit or loss attributable to a specified segment as described in ASC 280 – Segment Reporting,
as amended, revised or superseded, acquired during the Performance Period or an entity or entities
acquired during the Performance Period to which the performance goal relates;
• Any tax settlement(s) with a tax authority;
• The relevant tax effect(s) of tax laws or regulations, or amendments thereto, that become effective after
the beginning of the performance period;
• Any extraordinary item, event or transaction as described in ASC 225-20 – Income Statement –
Extraordinary and Unusual Items, as amended, revised or superseded;
• Any unusual in nature, or infrequent in occurrence items, events or transactions (that are not
“extraordinary” items) as described in ASC 225-20 – Income Statement – Extraordinary and Unusual
Items, as amended, revised or superseded;
• Any other non-recurring items, any events or transactions that do not constitute ongoing operations, or
other non-GAAP financial measures (not otherwise listed);
• Any change in accounting principle as described in ASC 250-10 Accounting Changes and Error
Corrections, as amended, revised or superseded;
• Unrealized gains or losses on investments in debt and equity securities as described in ASC 320 –
Investments – Debt and Equity Securities, as amended, revised or superseded;
• Any gain or loss recognized as a result of derivative instrument transactions or other hedging activities
as described in ASC 815 – Derivatives and Hedging, as amended, revised or superseded;
• Shares-based compensation charges as described in ASC 718 – Compensation – Stock Compensation
and ASC 505-50 Equity-Based Payments to Non-Employees, as amended, revised or superseded;
• Any gain or loss as reported as a component of other comprehensive income as described in ASC 220 –
Comprehensive Income, as amended, revised or superseded;
• Any expense (or reversal thereof) as a result of incurring an obligation for a direct or indirect guarantee,
as described in ASC 460 – Guarantees, as amended, revised or superseded;
• Any gain or loss as the result of the consolidation of a variable interest entity as described in ASC 810 -
Consolidation, as amended, revised or superseded;
• Any expense, gain or loss (including, but not limited to, judgments, interest on judgments, settlement
amounts, attorneys’ fees and costs, filing fees, experts’ fees, and damages sustained as a result of
the imposition of injunctive relief) as a result of claims, litigation, judgments or lawsuit settlement
(including collective actions or class action lawsuits); or
• Any charges associated with the early retirement of debt obligations.
The Committee defines the payout percentages at the same time it establishes the performance criteria (and any
equitable adjustments made thereto) and corporate performance amounts. The minimum payout percentages
for target and maximum annual incentive award opportunities for our named executive officers who are party
to an employment agreement with us are set forth in their respective employment agreements, and the payout
percentage for the floor annual incentive award opportunity is set annually by the Committee. For participants
who are not party to an employment agreement with us, the payout percentages approved by the Committee are
set by position level. Subject to the terms of the employment agreements, the Committee has the right to adjust the
payout percentages.
The 2006 Bonus Plan provides for cash compensation to be paid annually when the performance goals are
achieved. No right to a minimum annual incentive award exists under the 2006 Bonus Plan. For each performance
period, the Committee will establish an objective formula for each participant based on the achievement of
the performance goals, the outcomes of which are substantially uncertain at the time they are established. The
Committee derives the corporate performance amounts from our corporate operating plan, which is approved by
the Board at the start of the fiscal year.