Big Lots 2015 Annual Report Download - page 5

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EĂƟŽŶǁŝĚĞŚŝůĚƌĞŶ͛Ɛ,ŽƐƉŝƚĂů͗dŚƌŽƵŐŚƚŚĞĮƌƐƚͲĞǀĞƌ
ŽĨŝƚƐŬŝŶĚĂƚŝŐ>ŽƚƐ͕ŽƵƌĂƐƐŽĐŝĂƚĞƐĂŶĚ:ĞŶŶŝĨĞƌƐĂĐƌŽƐƐ
ƚŚĞĐŽƵŶƚƌLJƉĂƌƟĐŝƉĂƚĞĚŝŶĂEĂƟŽŶĂůWŽŝŶƚŽĨ^ĂůĞ
ŽŶĂƟŽŶĂŵƉĂŝŐŶƚŽƐƵƉƉŽƌƚƚŚĞůŝĨĞͲƐĂǀŝŶŐǁŽƌŬ
ĂŶĚƌĞƐĞĂƌĐŚĂƚEĂƟŽŶǁŝĚĞŚŝůĚƌĞŶ͛Ɛ,ŽƐƉŝƚĂů;E,Ϳ
ůŽĐĂƚĞĚŝŶŽůƵŵďƵƐ͕KŚŝŽ͘E,ŝƐƚŚĞůĂƌŐĞƐƚĐŚŝůĚƌĞŶ͛Ɛ
ŚŽƐƉŝƚĂůŝŶƚŚĞhŶŝƚĞĚ^ƚĂƚĞƐĂŶĚƐĞƌǀĞƐƉĂƟĞŶƚƐ
ĂŶĚĨĂŵŝůŝĞƐĨƌŽŵĂůůϱϬƐƚĂƚĞƐĂŶĚŽǀĞƌϰϬĐŽƵŶƚƌŝĞƐ
ƚŚƌŽƵŐŚŽƵƚƚŚĞǁŽƌůĚ͘ƵƌŝŶŐĂϱͲǁĞĞŬƉĞƌŝŽĚŝŶƚŚĞ
ĨĂůůŽĨϮϬϭϱ͕ŽƵƌĂƐƐŽĐŝĂƚĞƐƌĂůůŝĞĚďĞŚŝŶĚŽƵƌĐĂŵƉĂŝŐŶ
ŽĨ͞'ŝǀĞ/'ĨŽƌ<ŝĚƐ͕͟ƌĂŝƐŝŶŐŽǀĞƌΨϮ͘ϮŵŝůůŝŽŶĚŽůůĂƌƐ͘͘͘
ĂƌĞŵĂƌŬĂďůĞĂĐĐŽŵƉůŝƐŚŵĞŶƚ͘
ර^ŚĂƌĞŚŽůĚĞƌWŝůůĂƌ
dŚĞƚŚŝƌĚĂŶĚĮŶĂůƉŝůůĂƌŽĨƚŚĞ^WWŝƐĨŽĐƵƐĞĚŽŶ
ĚƌŝǀŝŶŐĂƉƉƌŽƉƌŝĂƚĞĮŶĂŶĐŝĂůƌĞƚƵƌŶƐƚŚƌŽƵŐŚ
ŝŵƉƌŽǀĞŵĞŶƚƐŝŶŽƵƌŽƉĞƌĂƟŶŐŵŽĚĞů͕ŵĂdžŝŵŝnjŝŶŐĐĂƐŚ
ŇŽǁ͕ŝŶǀĞƐƟŶŐŝŶŽƵƌďƵƐŝŶĞƐƐ͕ĂŶĚƌĞƚƵƌŶŝŶŐĞdžĐĞƐƐ
ĐĂƐŚƚŽŽƵƌƐŚĂƌĞŚŽůĚĞƌƐ͘
ͻ tĞ͛ǀĞĐŽŶƟŶƵĞĚƚŽŝŵƉƌŽǀĞŽƵƌďƵƐŝŶĞƐƐ
 ŽƉĞƌĂƟŽŶƐĂŶĚĐŽŶƐŝƐƚĞŶĐLJĂƐĞǀŝĚĞŶĐĞĚďLJ
 ĐŽŵƉĂƌĂďůĞƐƚŽƌĞƐĂůĞƐŐƌŽǁƚŚĨŽƌƚŚĞůĂƐƚĞŝŐŚƚ
 ĐŽŶƐĞĐƵƟǀĞƋƵĂƌƚĞƌƐ͘
ͻ tĞĞdžĐĞĞĚĞĚĨƵůůͲLJĞĂƌϮϬϭϱW^ĞƐƟŵĂƚĞƐƉƌŽǀŝĚĞĚ
at the beginning of the year
ʹ
ĂĐƚƵĂůΨϮ͘ϵϳƉĞƌ
 ĚŝůƵƚĞĚƐŚĂƌĞǀĞƌƐƵƐŽƌŝŐŝŶĂůŐƵŝĚĂŶĐĞŝƐƐƵĞĚ
 DĂƌĐŚϮϬϭϱŽĨΨϮ͘ϳϱƚŽΨϮ͘ϵϬƉĞƌĚŝůƵƚĞĚƐŚĂƌĞ͘
ͻ tĞŚĂǀĞƌĞŝŶǀĞƐƚĞĚŝŶŽƵƌďƵƐŝŶĞƐƐ͕ŝŶĐƌĞĂƐŝŶŐĐĂƉŝƚĂů
 ĞdžƉĞŶĚŝƚƵƌĞƐďLJϯϱйůĂƐƚLJĞĂƌǁŝƚŚƐƚƌĂƚĞŐŝĐ
ŝŶǀĞƐƚŵĞŶƚƐƐƵƉƉŽƌƟŶŐƚŚĞ:ĞŶŶŝĨĞƌƉŝůůĂƌ͕ŝŶĐůƵĚŝŶŐ 
 ŶĞǁƌĞŐŝƐƚĞƌƐLJƐƚĞŵƐĨŽƌƐƉĞĞĚŝĞƌĐŚĞĐŬŽƵƚ͕
 ĐŽŵƉůĞƟŽŶŽĨŽƵƌĨƌĞĞnjĞƌͬĐŽŽůĞƌƌŽůůŽƵƚƚŽĞŶŚĂŶĐĞ
 ƚŚĞĐŽŶƐŝƐƚĞŶĐLJŽĨŽƵƌŵĞƌĐŚĂŶĚŝƐĞŽīĞƌŝŶŐ͕
 ĂŶĚƚŚĞƐƵƉƉŽƌƚ͕ďƵŝůĚͲŽƵƚ͕ĂŶĚůĂƵŶĐŚŽĨŽƵƌ
 ĞͲĐŽŵŵĞƌĐĞƉůĂƞŽƌŵ͘
ͻ tĞƌĞƚƵƌŶĞĚΨϮϯϵŵŝůůŝŽŶƚŽŽƵƌƐŚĂƌĞŚŽůĚĞƌƐ
 ƚŚƌŽƵŐŚĂ͞ďĂůĂŶĐĞĚĂƉƉƌŽĂĐŚ͟ŽĨƋƵĂƌƚĞƌůLJĚŝǀŝĚĞŶĚ
 ƉĂLJŵĞŶƚƐĂŶĚƐŚĂƌĞƌĞƉƵƌĐŚĂƐĞƐ͘tĞďĞůŝĞǀĞƚŚŝƐ
 ƐƚƌĂƚĞŐLJĂĚĚƐůŽŶŐͲƚĞƌŵǀĂůƵĞĂŶĚŝƐĂŶŝŵƉŽƌƚĂŶƚ
 ĞŶŚĂŶĐĞŵĞŶƚŽĨŽǀĞƌĂůůƐŚĂƌĞŚŽůĚĞƌƌĞƚƵƌŶ͘
/Ŷ^ĞƉƚĞŵďĞƌϮϬϭϱ͕^ƚĂŶĚĂƌĚΘWŽŽƌ͛ƐZĂƟŶŐ^ĞƌǀŝĐĞƐ
ƌĂŝƐĞĚƚŚĞŝƌĐŽƌƉŽƌĂƚĞĐƌĞĚŝƚƌĂƟŶŐŽŶŽƵƌŽŵƉĂŶLJ
ƚŽ͞͟ǁŝƚŚĂƐƚĂďůĞŽƵƚůŽŽŬ͘tĞďĞůŝĞǀĞƚŚŝƐƵƉŐƌĂĚĞ
ĂĐŬŶŽǁůĞĚŐĞƐŽƵƌ^WWƐƚƌĂƚĞŐŝĞƐĂƌĞǁŽƌŬŝŶŐǁŝƚŚ
:ĞŶŶŝĨĞƌĂŶĚƚŚĞĞŶŚĂŶĐĞĚĐŽŶƐŝƐƚĞŶĐLJŽĨƉĞƌĨŽƌŵĂŶĐĞ
ŝƐƌĞƐŽŶĂƟŶŐǁŝƚŚĂǀĂƌŝĞƚLJŽĨĐŽŶƐƟƚƵĞŶƚƐŝŶƚŚĞ
ĮŶĂŶĐŝĂůĐŽŵŵƵŶŝƚLJ͘KƵƌƐƵĐĐĞƐƐƌĞŇĞĐƚƐĂƚŽƚĂůƚĞĂŵ
ĞīŽƌƚƚŽŐĞŶĞƌĂƚĞĐŽŶƐŝƐƚĞŶƚƌĞƐƵůƚƐ͕ĮŶĂŶĐŝĂůƐƚĂďŝůŝƚLJ͕
ĂŶĚƐƚƌŽŶŐĐĂƐŚŇŽǁƐǁŚŝůĞƌĞƚƵƌŶŝŶŐĐĂƐŚ
to shareholders.
It is not business as usual at Big Lots
/ŶƚŚŝƐĚĂLJĂŶĚĂŐĞ͕ŵĂŶLJƌĞƚĂŝůĞƌƐĂƌĞůŽƐŝŶŐƚŚĞŝƌ
ŝĚĞŶƟƚLJĂƐĂƌĞƐƵůƚŽĨƚŚĞƉƌĞƐƐƵƌĞƐĨƌŽŵŶĞǁ
ƚĞĐŚŶŽůŽŐŝĞƐŽƌƐŚŝŌƐŝŶƚŚĞĐŽŵƉĞƟƟǀĞůĂŶĚƐĐĂƉĞĂŶĚ
ĐŽŶƐƵŵĞƌďƵLJŝŶŐƚƌĞŶĚƐ͘ĂĐŚŽĨƚŚĞƉŝůůĂƌƐŽĨƚŚĞ^WW͕
ĂŶĚƚŚĞŬĞLJŝŶŝƟĂƟǀĞƐǁŝƚŚŝŶ͕ƐŚĂƌĞƚŚĞŐŽĂůŽĨƐƚĂLJŝŶŐ
relevant by fundamentally improving our business with
ĞǀĞŶŵŽƌĞĨŽĐƵƐŽŶ:ĞŶŶŝĨĞƌ͘
/ƚ͛ƐEKdďƵƐŝŶĞƐƐĂƐƵƐƵĂůĂƚŝŐ>ŽƚƐ͕ĂŶĚ/͛ŵĞĂŐĞƌůLJ
ůŽŽŬŝŶŐĨŽƌǁĂƌĚƚŽƚŚĞƚƌĂŶƐĨŽƌŵĂƟŽŶĂůLJĞĂƌƐƚŚĂƚ
lie ahead.
KŶďĞŚĂůĨŽĨŽƵƌŽĂƌĚŽĨŝƌĞĐƚŽƌƐĂŶĚĂůůŽĨŽƵƌ
ĂƐƐŽĐŝĂƚĞƐ͕/ƚŚĂŶŬLJŽƵĨŽƌLJŽƵƌƐƵƉƉŽƌƚ͘
^ŝŶĐĞƌĞůLJ͕
ĂǀŝĚ:͘ĂŵƉŝƐŝ
ŚŝĞĨdžĞĐƵƟǀĞKĸĐĞƌĂŶĚWƌĞƐŝĚĞŶƚ
Each of the pillars of the SPP share
ƚŚĞŐŽĂůŽĨƐƚĂLJŝŶŐƌĞůĞǀĂŶƚďLJ
ĨƵŶĚĂŵĞŶƚĂůůLJŝŵƉƌŽǀŝŶŐŽƵƌďƵƐŝŶĞƐƐ
ǁŝƚŚĞǀĞŶŵŽƌĞĨŽĐƵƐŽŶ:ĞŶŶŝĨĞƌ͘Η
"
BIG LOTS, INC. 2015 ANNUAL REPORT