Big Lots 2014 Annual Report Download - page 130

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52
Foreign Currency Translation
We had one foreign subsidiary domiciled in Canada, which was closed and dissolved in 2014. The functional currency of our
former international subsidiary was the local currency of the country in which the subsidiary was located. Foreign currency
denominated assets and liabilities are translated into U.S. Dollars using the exchange rate in effect at the consolidated balance
sheet date. Results of operations and cash flows are translated using the average exchange rates throughout the period. In 2012
and 2013, the effect of exchange rate fluctuations on translation of assets and liabilities was included as a component of
shareholders’ equity in accumulated other comprehensive loss. Gains and losses from foreign currency transactions are
included in discontinued operations because our Canadian subsidiary has ceased operations. There were losses from foreign
currency transactions of $5.1 million, $1.2 million, and an immaterial amount for 2014, 2013, and 2012, respectively. Included
in the foreign currency loss in 2014 is a $5.1 million loss related to the realization of the cumulative translation adjustment on
our investment in our Canadian operations.
Other Comprehensive Income
Our other comprehensive income includes the impact of the amortization of our pension actuarial loss, net of tax, the
revaluation of our pension actuarial loss, net of tax, and the impact of foreign currency translation.
Supplemental Cash Flow Disclosures
The following table provides supplemental cash flow information for 2014, 2013, and 2012:
(In thousands) 2014 2013 2012
Supplemental disclosure of cash flow information:
Cash paid for interest, including capital leases $ 1,921 $ 2,687 $ 3,369
Cash paid for income taxes, excluding impact of refunds $ 69,919 $ 122,672 $ 95,596
Gross proceeds from borrowings under the bank credit facility $ 1,550,900 $ 1,330,100 $ 1,448,800
Gross payments of borrowings under the bank credit facility $ 1,565,800 $ 1,424,300 $ 1,343,500
Non-cash activity:
Assets acquired under capital leases $ 20,982 $ — $ 392
Accrued property and equipment $ 10,974 $ 5,296 $ 6,824
Reclassifications
Canadian Operations
During the first quarter of 2014, we executed the remainder of our wind down plan and ceased the operations of Big Lots
Canada, Inc., our former Canadian segment. Therefore, we determined that the results of Big Lots Canada, Inc. should be
reported as discontinued operations. As such, we have reclassified our results for all periods presented. Please see the
Canadian Operations section of note 12 and note 13 to the consolidated financial statements for further discussion of the wind
down of our Canadian operations and the costs we incurred in connection with the wind down during 2013 and 2014.
Merchandise Categories
We periodically assess, and make minor adjustments to, our product hierarchy, which can impact the roll-up of our merchandise
categories. Our financial reporting process utilizes the most current product hierarchy in reporting net sales by merchandise
category for all periods presented. Therefore, there may be minor reclassifications of net sales by merchandise category compared
to previously reported amounts.
Recent Accounting Standards
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09,
Revenue from Contracts with Customers (Topic 606). This update provides a comprehensive new revenue recognition model
that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects
the consideration it expects to receive in exchange for those goods or services. Additionally, this guidance expands related
disclosure requirements. The pronouncement is effective for annual and interim reporting periods beginning after December
15, 2016. Early application is not permitted. This ASU permits the use of either the retrospective or cumulative effect
transition method. The Company is currently evaluating the impact this guidance will have on its consolidated financial
statements as well as the expected adoption method.