10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended November 1, 2014

or

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission File Number 1-8897

BIG LOTS, INC.

(Exact name of registrant as specified in its charter)

Ohio	06-1119097
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
300 Phillipi Road, P.O. Box 28512, Columbus, Ohio	43228-5311
(Address of principal executive offices)	(Zip Code)

(614) 278-6800

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yesþ     Noo

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yesþ     Noo

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,”  “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer þ Accelerated filer o Non-accelerated filer o Smaller reporting company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes o     Noþ

The number of the registrant’s common shares, $0.01 par value, outstanding as of December 5, 2014, was 53,452,301.

BIG LOTS, INC.

FORM 10-Q

FOR THE FISCAL QUARTER ENDED NOVEMBER 1, 2014

TABLE OF CONTENTS

		Page
Part I.  Financial Information		2
Item 1.	Financial Statements	2
a)	Consolidated Statements of Operations for the Thirteen and Thirty-Nine Weeks Ended November 1, 2014 (Unaudited) and November 2, 2013 (Unaudited)	2
b)	Consolidated Statements of Comprehensive Income for the Thirteen and Thirty-Nine Weeks Ended November 1, 2014 (Unaudited) and November 2, 2013 (Unaudited)	3
c)	Consolidated Balance Sheets at November 1, 2014 (Unaudited) and February 1, 2014	4
d)	Consolidated Statements of Shareholders’ Equity for the Thirty-Nine Weeks Ended November 1, 2014 (Unaudited) and November 2, 2013 (Unaudited)	5
e)	Consolidated Statements of Cash Flows for the Thirty-Nine Weeks Ended November 1, 2014 (Unaudited) and November 2, 2013 (Unaudited)	6
e)	Notes to Consolidated Financial Statements (Unaudited)	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	30
Item 4.	Controls and Procedures	30
Part II.  Other Information		30
Item 1.	Legal Proceedings	30
Item 1A.	Risk Factors	30
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	31
Item 3.	Defaults Upon Senior Securities	31
Item 4.	Mine Safety Disclosures	31
Item 5.	Other Information	31
Item 6.	Exhibits	32
Signature		32

1

Part I. Financial Information

Item 1. Financial Statements

BIG LOTS, INC. AND SUBSIDIARIES
Consolidated Statements of Operations (Unaudited)
(In thousands, except per share amounts)

	Thirteen Weeks Ended						Thirty-Nine Weeks Ended
	November 1, 2014			November 2, 2013			November 1, 2014			November 2, 2013
Net sales	$	1,107,095		$	1,104,918		$	3,583,729		$	3,552,843
Cost of sales (exclusive of depreciation expense shown separately below)	676,153			673,490			2,189,704			2,155,105
Gross margin	430,942			431,428			1,394,025			1,397,738
Selling and administrative expenses	404,732			405,279			1,234,420			1,219,269
Depreciation expense	30,267			29,014			88,535			83,393
Operating (loss) profit	(4,057		)	(2,865		)	71,070			95,076
Interest expense	(756		)	(1,034		)	(1,616		)	(2,490		)
Other income (expense)	—			—			—			(11		)
(Loss) income from continuing operations before income taxes	(4,813		)	(3,899		)	69,454			92,575
Income tax (benefit) expense	(1,698		)	(1,951		)	26,776			35,514
(Loss) income from continuing operations	(3,115		)	(1,948		)	42,678			57,061
Loss from discontinued operations, net of tax benefit of $207, $1,704, $13,003 and $1,846, respectively	(326		)	(7,569		)	(22,833		)	(16,119		)
Net (loss) income	$	(3,441	)	$	(9,517	)	$	19,845		$	40,942
Earnings per common share - basic:
Continuing operations	$	(0.06	)	$	(0.03	)	$	0.77		$	0.99
Discontinued operations	(0.01		)	(0.13		)	(0.41		)	(0.28		)
	$	(0.06	)	$	(0.17	)	$	0.36		$	0.71
Earnings per common share - diluted:
Continuing operations	$	(0.06	)	$	(0.03	)	$	0.76		$	0.98
Discontinued operations	(0.01		)	(0.13		)	(0.41		)	(0.28		)
	$	(0.06	)	$	(0.17	)	$	0.35		$	0.71
Weighted-average common shares outstanding:
Basic	54,850			57,461			55,617			57,383
Dilutive effect of share-based awards	—			—			603			550
Diluted	54,850			57,461			56,220			57,933
Cash dividends declared per common share	$	0.17		$	—		$	0.34		$	—

The accompanying notes are an integral part of these consolidated financial statements.

2

BIG LOTS, INC. AND SUBSIDIARIES
Consolidated Statements of Comprehensive Income (Unaudited)
(In thousands)

	Thirteen Weeks Ended						Thirty-Nine Weeks Ended
	November 1, 2014			November 2, 2013			November 1, 2014			November 2, 2013
Net (loss) income	$	(3,441	)	$	(9,517	)	$	19,845		$	40,942
Other comprehensive (loss) income:
Foreign currency translation	—			(224		)	5,022			(2,189		)
Amortization of pension, net of tax expense of $155, $198, $457, and $535, respectively	208			252			631			751
Valuation adjustment of pension, net of tax benefit (expense) of $198, $(33), $198 and $(33), respectively	(272		)	50			(272		)	50
Total other comprehensive (loss) income	(64		)	78			5,381			(1,388		)
Comprehensive (loss) income	$	(3,505	)	$	(9,439	)	$	25,226		$	39,554

The accompanying notes are an integral part of these consolidated financial statements.

3

BIG LOTS, INC. AND SUBSIDIARIES
Consolidated Balance Sheets

(In thousands, except par value)

	(Unaudited)
	November 1, 2014			February 1, 2014
ASSETS
Current assets:
Cash and cash equivalents	$	62,488		$	68,629
Inventories	1,075,429			914,965
Deferred income taxes	48,553			59,781
Other current assets	126,252			77,686
Total current assets	1,312,722			1,121,061
Property and equipment - net	566,889			569,682
Deferred income taxes	12,512			5,106
Other assets	41,788			43,750
Total assets	$	1,933,911		$	1,739,599
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	529,793		$	365,772
Property, payroll, and other taxes	81,831			73,334
Accrued operating expenses	72,678			57,167
Insurance reserves	38,325			37,607
Accrued salaries and wages	32,829			29,175
Income taxes payable	868			14,392
Total current liabilities	756,324			577,447
Long-term obligations	283,400			77,000
Deferred rent	68,752			76,364
Insurance reserves	57,091			55,755
Unrecognized tax benefits	17,498			17,975
Other liabilities	37,262			33,631
Shareholders’ equity:
Preferred shares - authorized 2,000 shares; $0.01 par value; none issued	—			—
Common shares - authorized 298,000 shares; $0.01 par value; issued 117,495 shares; outstanding 52,996 shares and 57,548 shares, respectively	1,175			1,175
Treasury shares - 64,499 shares and 59,947 shares, respectively, at cost	(1,872,431		)	(1,670,041		)
Additional paid-in capital	571,071			562,447
Retained earnings	2,021,899			2,021,357
Accumulated other comprehensive loss	(8,130		)	(13,511		)
Total shareholders' equity	713,584			901,427
Total liabilities and shareholders' equity	$	1,933,911		$	1,739,599

The accompanying notes are an integral part of these consolidated financial statements.

4

BIG LOTS, INC. AND SUBSIDIARIES
Consolidated Statements of Shareholders’ Equity (Unaudited)
(In thousands)

	Common				Treasury					Additional Paid-In Capital			Retained Earnings			Accumulated Other Comprehensive Loss
	Shares		Amount		Shares		Amount												Total
Balance - February 2, 2013	57,269		$	1,175	60,226		$	(1,677,610	)	$	551,845		$	1,896,062		$	(13,330	)	$	758,142
Comprehensive income	—		—		—		—			—			40,942			(1,388		)	39,554
Purchases of common shares	(6	)	—		6		(214		)	—			—			—			(214		)
Exercise of stock options	184		—		(184	)	5,114			(1,014		)	—			—			4,100
Restricted shares vested	40		—		(40	)	1,109			(1,109		)	—			—			—
Tax benefit from share-based awards	—		—		—		—			248			—			—			248
Share activity related to deferred compensation plan	—		—		—		—			—			—			—			—
Share-based employee compensation expense	—		—		—		—			11,465			—			—			11,465
Balance - November 2, 2013	57,487		1,175		60,008		(1,671,601		)	561,435			1,937,004			(14,718		)	813,295
Comprehensive income	—		—		—		—			—			84,353			1,207			85,560
Purchases of common shares	—		—		—		—			—			—			—			—
Exercise of stock options	30		—		(30	)	835			(51		)	—			—			784
Restricted shares vested	25		—		(25	)	696			(696		)	—			—			—
Tax charge from share-based awards	—		—		—		—			(125		)	—			—			(125		)
Share activity related to deferred compensation plan	6		—		(6	)	29			166			—			—			195
Share-based employee compensation expense	—		—		—		—			1,718			—			—			1,718
Balance - February 1, 2014	57,548		1,175		59,947		(1,670,041		)	562,447			2,021,357			(13,511		)	901,427
Comprehensive income	—		—		—		—			—			19,845			5,381			25,226
Dividends declared	—		—		—		—			—			(19,303		)	—			(19,303		)
Purchases of common shares	(5,896	)	—		5,896		(240,462		)	—			—			—			(240,462		)
Exercise of stock options	1,249		—		(1,249	)	35,378			2,174			—			—			37,552
Restricted shares vested	68		—		(68	)	1,940			(1,940		)	—			—			—
Performance shares vested	25		—		(25	)	716			(716		)	—			—			—
Tax benefit from share-based awards	—		—		—		—			1,076			—			—			1,076
Share activity related to deferred compensation plan	2		—		(2	)	38			24			—			—			62
Share-based employee compensation expense	—		—		—		—			8,006			—			—			8,006
Balance - November 1, 2014	52,996		$	1,175	64,499		$	(1,872,431	)	$	571,071		$	2,021,899		$	(8,130	)	$	713,584

The accompanying notes are an integral part of these consolidated financial statements.

5

BIG LOTS, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows (Unaudited)
(In thousands)

	Thirty-Nine Weeks Ended
	November 1, 2014			November 2, 2013
Operating activities:
Net income	$	19,845		$	40,942
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization expense	78,287			75,466
Deferred income taxes	3,563			(21,688		)
Loss (gain) on disposition of property and equipment	2,033			(3,472		)
Non-cash impairment charge	1,424			—
Non-cash share-based compensation expense	8,006			11,465
Excess tax benefit from share-based awards	(3,582		)	(248		)
Pension expense, net of contributions	1,758			2,402
Change in assets and liabilities, excluding effects of foreign currency adjustments:
Inventories	(160,424		)	(321,859		)
Accounts payable	163,997			190,129
Current income taxes	(59,851		)	(67,415		)
Other current assets	(1,332		)	(8,030		)
Other current liabilities	10,124			16,098
Other assets	1,402			(2,080		)
Other liabilities	(2,872		)	17,192
Net cash provided by (used in) operating activities	62,378			(71,098		)
Investing activities:
Capital expenditures	(74,559		)	(83,706		)
Cash proceeds from sale of property and equipment	2,733			7,084
Other	(82		)	14
Net cash used in investing activities	(71,908		)	(76,608		)
Financing activities:
Net proceeds from borrowings under bank credit facility	206,400			152,800
Payment of capital lease obligations	(703		)	(855		)
Dividends paid	(18,823		)	—
Proceeds from the exercise of stock options	37,552			4,100
Excess tax benefit from share-based awards	3,582			248
Deferred bank credit facility fees paid	—			(895		)
Payment for treasury shares acquired	(229,820		)	(214		)
Other	62			—
Net cash (used in) provided by financing activities	(1,750		)	155,184
Impact of foreign currency on cash	5,139			(333		)
(Decrease) increase in cash and cash equivalents	(6,141		)	7,145
Cash and cash equivalents:
Beginning of period	68,629			60,581
End of period	$	62,488		$	67,726

The accompanying notes are an integral part of these consolidated financial statements.

6

BIG LOTS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Unaudited)

NOTE 1 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

All references in this report to “we,” “us,” or “our” are to Big Lots, Inc. and its subsidiaries.  We are a unique, non-traditional, discount retailer operating in the United States of America (“U.S.”). At November 1, 2014, we operated 1,496 stores in the U.S.  We make available, free of charge, through the “Investor Relations” section of our website (www.biglots.com) under the “SEC Filings” caption, our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended (“Exchange Act”), as soon as reasonably practicable after we file such material with, or furnish it to, the Securities and Exchange Commission (“SEC”).  The contents of our websites are not part of this report.

The accompanying consolidated financial statements and these notes have been prepared in accordance with the rules and regulations of the SEC for interim financial information. The consolidated financial statements reflect all normal recurring adjustments which management believes are necessary to present fairly our financial condition, results of operations, and cash flows for all periods presented. These consolidated financial statements, however, do not include all information necessary for a complete presentation of financial condition, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America (“GAAP”).  Interim results may not necessarily be indicative of results that may be expected for, or actually result during, any other interim period or for the year as a whole.  We have historically experienced, and expect to continue to experience, seasonal fluctuations, with a larger percentage of our net sales and operating profit realized in our fourth fiscal quarter.  The accompanying consolidated financial statements and these notes should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended February 1, 2014 (“2013 Form 10-K”).

Fiscal Periods

Our fiscal year ends on the Saturday nearest to January 31, which results in fiscal years consisting of 52 or 53 weeks.  Unless otherwise stated, references to years in this report relate to fiscal years rather than calendar years.  Fiscal year 2014 (“2014”) is comprised of the 52 weeks that began on February 2, 2014 and will end on January 31, 2015.  Fiscal year 2013 (“2013”) was comprised of the 52 weeks that began on February 3, 2013 and ended on February 1, 2014.  The fiscal quarters ended November 1, 2014 (“third quarter of 2014”) and November 2, 2013 (“third quarter of 2013”) were both comprised of 13 weeks.  The year-to-date periods ended November 1, 2014 (“year-to-date 2014”) and November 2, 2013 (“year-to-date 2013”) were both comprised of 39 weeks. 

Selling and Administrative Expenses

Selling and administrative expenses include store expenses (such as payroll and occupancy costs) and costs related to warehousing, distribution, outbound transportation to our stores, advertising, purchasing, insurance, non-income taxes, and overhead.  Our selling and administrative expense rates may not be comparable to those of other retailers that include distribution and outbound transportation costs in cost of sales.  Distribution and outbound transportation costs included in selling and administrative expenses were $40.9 million and $41.2 million for the third quarter of 2014 and the third quarter of 2013, respectively, and $119.0 million and $117.1 million for the year-to-date 2014 and the year-to-date 2013, respectively.

Advertising Expense

Advertising costs, which are expensed as incurred, consist primarily of television and print advertising, internet marketing and advertising, and in-store presentations.  Advertising expenses are included in selling and administrative expenses.  Advertising expenses were $16.9 million and $18.2 million for the third quarter of 2014 and the third quarter of 2013, respectively, and $57.7 million and $61.2 million for the year-to-date 2014 and the year-to-date 2013, respectively.

7

Foreign Currency Translation

The functional currency of our former international subsidiary was the local currency of the country in which the subsidiary was located. We had one foreign subsidiary domiciled in Canada. 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. 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 in 2013. 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 $0.1 million, $0.1 million, $4.8 million, and $0.4 million for the third quarter of 2014, the third quarter of 2013, the year-to-date 2014, and the year-to-date 2013, respectively. Included in the foreign currency loss in the year-to-date 2014 is a $5.1 million loss related to the realization of the cumulative translation adjustment on our investment in our Canadian operations.

Supplemental Cash Flow Disclosures

The following table provides supplemental cash flow information for the year-to-date 2014 and the year-to-date 2013:

	Thirty-Nine Weeks Ended
(In thousands)	November 1, 2014		November 2, 2013
Supplemental disclosure of cash flow information:
Cash paid for interest, including capital leases	$	825	$	1,858
Cash paid for income taxes, excluding impact of refunds	69,573		122,012
Gross proceeds from borrowings under the bank credit facility	1,131,900		970,000
Gross repayments of borrowings under the bank credit facility	925,500		817,200
Non-cash activity:
Assets acquired under capital leases	11,317		—
Accrued property and equipment	11,557		9,018
Share repurchases payable	$	10,642	$	—

Reclassifications

Wholesale Business

During the fourth quarter of 2013, we executed our wind down plan and ceased the operations of our wholesale business. Therefore, we determined that the results of our wholesale business should be reported as discontinued operations. As such, we have reclassified our results for all periods presented. Please see the Wholesale Business section of note 11 and note 12 to the consolidated financial statements for further discussion of the wind down of our wholesale business and the costs we incurred in connection with the wind down during the year-to-date 2014.

Canadian Operations

During the first quarter of 2014, we executed the remainder of our wind down plan and ceased the operations of our former Canadian segment. Therefore, we determined that the results of our former Canadian segment 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 11 and note 12 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 the year-to-date 2014.

Merchandise Categories

In the fourth quarter of 2013, we realigned select merchandise categories to be consistent with the realignment of our merchandising team and changes to our management reporting. We now use the following merchandise categories, which match our internal management and reporting of merchandise net sales: Food, Consumables, Soft Home, Hard Home, Furniture & Home Décor, Seasonal, and Electronics & Accessories. The Food category includes our beverage & grocery, candy & snacks, and specialty foods departments. The Consumables category includes our health and beauty, plastics, paper, chemical, and pet departments. The Soft Home category includes the fashion bedding, utility bedding, bath, window, decorative textile, and flooring departments. The Hard Home category includes our small appliances, table top, food preparation, stationery, greeting card, tools, paint, and home maintenance departments. The Furniture & Home Décor category includes our upholstery, mattress, ready-to-assemble, case goods, home décor, and frames departments. The Seasonal category includes our lawn & garden, summer, Christmas, toys, books, sporting goods, and other holiday departments. The Electronics & Accessories category includes the electronics, jewelry, apparel, hosiery, and infant accessories departments. In order to provide comparative information, we have reclassified our net sales by merchandise category into the new alignment for all periods presented in note 9 to the consolidated financial statements.

8

We periodically 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 Pronouncements

There are currently no new accounting pronouncements with a future effective date that are of significance, or potential significance, to us.

NOTE 2 – BANK CREDIT FACILITY

On July 22, 2011, we entered into a $700 millionfive-year unsecured credit facility and, on May 30, 2013, we entered into an amendment of the credit facility that extended its expiration from July 22, 2016 to May 30, 2018 (“2011 Credit Agreement”). In connection with our entry into the 2011 Credit Agreement, we paid bank fees and other expenses in the aggregate amount of $3.0 million, which are being amortized over the term of the agreement.  In connection with the amendment of the 2011 Credit Agreement, we paid additional bank fees and other expenses in the aggregate amount of $0.9 million, which are being amortized over the term of the amended agreement.

Borrowings under the 2011 Credit Agreement are available for general corporate purposes and working capital.  The 2011 Credit Agreement includes a $30 million swing loan sublimit and a $150 million letter of credit sublimit.  The interest rates, pricing and fees under the 2011 Credit Agreement fluctuate based on our debt rating.  The 2011 Credit Agreement allows us to select our interest rate for each borrowing from multiple interest rate options.  The interest rate options are generally derived from the prime rate or LIBOR.  We may prepay revolving loans made under the 2011 Credit Agreement.  The 2011 Credit Agreement contains financial and other covenants, including, but not limited to, limitations on indebtedness, liens and investments, as well as the maintenance of two financial ratios – a leverage ratio and a fixed charge coverage ratio.  A violation of any of the covenants could result in a default under the 2011 Credit Agreement that would permit the lenders to restrict our ability to further access the 2011 Credit Agreement for loans and letters of credit and require the immediate repayment of any outstanding loans under the 2011 Credit Agreement.  At November 1, 2014, we had $283.4 million of borrowings outstanding under the 2011 Credit Agreement and $11.2 million was committed to outstanding letters of credit, leaving $405.4 million available under the 2011 Credit Agreement.  

NOTE 3 – FAIR VALUE MEASUREMENTS

In connection with our nonqualified deferred compensation plan, we had mutual fund investments of $16.8 million and $21.2 million at November 1, 2014 and February 1, 2014, respectively, which were recorded in other assets. These investments were classified as trading securities and were recorded at their fair value. The fair values of mutual fund investments were Level 1 valuations under the fair value hierarchy because each fund’s quoted market value per share was available in an active market.

The fair values of our long-term obligations are estimated based on the quoted market prices for the same or similar issues and the current interest rates offered for similar instruments. These fair value measurements are classified as Level 2 within the fair value hierarchy. Given the variable rate features and relatively short maturity of the instruments underlying our long-term obligations, the carrying value of these instruments approximates the fair value.

The carrying value of accounts receivable, accounts payable, and accrued expenses approximates fair value because of the relatively short maturity of these items.

9

NOTE 4 – SHAREHOLDERS’ EQUITY

Earnings per Share

There were no adjustments required to be made to the weighted-average common shares outstanding for purposes of computing basic and diluted earnings per share and there were no securities outstanding at November 1, 2014 or November 2, 2013 which were excluded from the computation of earnings per share other than antidilutive stock options, restricted stock awards, and restricted stock units.  For the third quarter of 2014 and the third quarter of 2013, 0.6 million and 2.4 million, respectively, of the stock options outstanding were antidilutive and excluded from the computation of diluted earnings per share.  For the year-to-date 2014 and the year-to-date 2013, 1.7 million and 2.8 million, respectively, of the stock options outstanding were antidilutive and excluded from the computation of diluted earnings per share. Antidilutive stock options generally consist of outstanding stock options where the exercise price per share is greater than the weighted-average market price per share for our common shares for each period.  Antidilutive stock options, restricted stock awards, and restricted stock units are excluded from the calculation because they decrease the number of diluted shares outstanding under the treasury stock method. The restricted stock awards and restricted stock units that were antidilutive, as determined under the treasury stock method, were immaterial for all periods presented.

Share Repurchase Programs

On March 5, 2014, our Board of Directors authorized a share repurchase program providing for the repurchase of $125 million of our common shares (“March 2014 Repurchase Program”). The March 2014 Repurchase Program was exhausted during the second quarter of 2014.

On August 28, 2014, our Board of Directors authorized a new share repurchase program providing for the repurchase of $125 million of our common shares (“August 2014 Repurchase Program”). Pursuant to the August 2014 Repurchase Program, we may repurchase shares in the open market and/or in privately negotiated transactions at our discretion, subject to market conditions and other factors. Common shares acquired through the August 2014 Repurchase Program will be available to meet obligations under our equity compensation plans and for general corporate purposes.

During the third quarter of 2014, we acquired approximately 2.6 million of our outstanding common shares for $114.8 million. During the year-to-date 2014, we have acquired approximately 5.9 million of our outstanding common shares for $239.8 million, which is comprised of 3.3 million common shares for $125.0 million under the March 2014 Repurchase Program and 2.6 million common shares for $114.8 million under the August 2014 Repurchase Program.

Dividends

In the second quarter of 2014, our Board of Directors commenced a cash dividend program under which we currently expect to pay quarterly dividends on our common shares in the future. The Company declared and paid cash dividends per common share during the periods presented as follows:

	Dividends Per Share		Amount Declared		Amount Paid
2014:			(in thousands)		(in thousands)
Third quarter	$	0.17	$	9,718	$	9,457
Second quarter	0.17		9,585		9,366
Total	$	0.34	$	19,303	$	18,823

The amount of dividends declared may vary from the amount of dividends paid in a period based on certain instruments with restrictions on payment, including restricted stock awards, restricted stock units, and performance share units. Future dividends are subject to declaration by our Board of Directors.

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NOTE 5 – SHARE-BASED PLANS

We have issued nonqualified stock options, restricted stock awards, restricted stock units, and performance share units under our shareholder-approved equity compensation plans.  Our restricted stock awards and restricted stock units, as described below and/or in note 7 to the consolidated financial statements in our 2013 Form 10-K, are expensed and reported as nonvested shares. We recognized share-based compensation expense of $3.0 million and $3.7 million in the third quarter of 2014 and the third quarter of 2013, respectively, and $8.0 million and $11.5 million for the year-to-date 2014 and the year-to-date 2013, respectively.

The weighted-average fair value of stock options granted and assumptions used in the model to estimate the fair value of stock options granted during each of the respective periods were as follows:

	Third Quarter			Year-to-Date
	2013			2013
Weighted-average fair value of stock options granted	$	11.83		$	12.08
Risk-free interest rate	1.1		%	0.7		%
Expected life (years)	4.2			4.2
Expected volatility	39.9		%	42.1		%
Expected annual forfeiture rate	3.0		%	3.0		%

During the year-to-date 2014, we granted no stock options.

The following table summarizes stock option activity for the year-to-date 2014:

	Number of Options		Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (years)	Aggregate Intrinsic Value (000's)
Outstanding stock options at February 1, 2014	3,377,303		$	34.88
Exercised	(243,218	)	26.90
Forfeited	(139,850	)	38.63
Outstanding stock options at May 3, 2014	2,994,235		$	35.35	4.2	$	16,314
Exercised	(464,400	)	36.73
Forfeited	(50,700	)	40.35
Outstanding stock options at August 2, 2014	2,479,135		$	35.00	4.1	$	20,850
Exercised	(541,797	)	25.75
Forfeited	(72,500	)	39.15
Outstanding stock options at November 1, 2014	1,864,838		$	37.52	4.3	$	15,162
Vested or expected to vest at November 1, 2014	1,775,684		$	37.48	4.2	$	14,515
Exercisable at November 1, 2014	895,774		$	36.89	3.5	$	7,845

The stock options granted in prior years vest in equal amounts on the first four anniversaries of the grant date and have a contractual term of seven years.  The number of stock options expected to vest was based on our annual forfeiture rate assumption.

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The following table summarizes the non-vested restricted stock awards and restricted stock units activity for the year-to-date 2014:

	Number of Shares		Weighted Average Grant-Date Fair Value Per Share
Outstanding non-vested restricted stock at February 1, 2014	664,101		$	38.34
Granted	281,056		37.12
Vested	(13,500	)	34.75
Forfeited	(99,200	)	40.19
Outstanding non-vested restricted stock at May 3, 2014	832,457		$	37.77
Granted	32,987		42.86
Vested	(23,776	)	33.65
Forfeited	(22,490	)	39.61
Outstanding non-vested restricted stock at August 2, 2014	819,178		$	38.04
Granted	2,012		43.87
Vested	(31,000	)	34.75
Forfeited	(28,990	)	38.84
Outstanding non-vested restricted stock at November 1, 2014	761,200		$	38.16

The non-vested restricted stock units granted in the year-to-date 2014 generally vest on a ratable basis over three years from the grant date of the award, if certain threshold financial performance objectives are achieved and the grantee remains employed by us through the vesting dates.

The non-vested restricted stock awards granted in prior years vest if certain financial performance objectives are achieved. If we meet a threshold financial performance objective and the grantee remains employed by us, the restricted stock will vest on the opening of our first trading window five years after the grant date of the award. If we meet a higher financial performance objective and the grantee remains employed by us, the restricted stock will vest on the first trading day after we file our Annual Report on Form 10-K with the SEC for the fiscal year in which the higher objective is met. As of February 1, 2014, we estimated a five-year period for vesting of all non-vested restricted stock awards granted in prior years, as we do not anticipate achieving the higher financial performance objective for any outstanding grants.

In 2013, in connection with his appointment as CEO and President, Mr. David J. Campisi was awarded 37,800 performance share units, which vest based on the achievement of share price performance goals, that had a weighted average grant-date fair value per share of $34.68. The performance share units have a contractual term of seven years. In the second quarter of 2014, Mr. Campisi’s first tranche of 12,600 performance share units vested. In the third quarter of 2014, Mr. Campisi’s second tranche of 12,600 performance share units vested. If the performance goals applicable to the remaining performance share units are not achieved prior to expiration, the awards will be forfeited. A total of 12,600 performance share units remain outstanding at November 1, 2014.

In the year-to-date 2014, we issued 434,124 performance share units, net of forfeitures, to certain members of management, which vest if certain financial performance objectives are achieved over a three-year performance period and the grantee remains employed by us during that period. The financial performance objectives for each fiscal year within the three-year performance period are approved by the Compensation Committee of our Board of Directors during the first quarter of the respective fiscal year. As a result of the process used to establish the financial performance objectives, we will only meet the requirements of establishing a grant date for the performance share units when we communicate the financial performance objectives for the third fiscal year of the award to the award recipients, which will then trigger the service inception date, the fair value of the awards, and the associated expense recognition period. Therefore, we have recognized no expense for these issued performance share units in the year-to-date 2014. If we meet the applicable threshold financial performance objectives over the three-year performance period and the grantee remains employed by us through the end of the performance period, the performance share units will vest on the first trading day after we file our Annual Report on Form 10-K three years after the initial issuance of the award.

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In the second quarter of 2014, 23,776 common shares underlying the restricted stock awards granted in 2013 to the non-employee members of our Board of Directors vested on the trading day immediately preceding our 2014 Annual Meeting of Shareholders. These awards were part of the annual compensation granted in 2013 to the non-employee members of the Board of Directors. Additionally, in the second quarter of 2014, each non-employee elected to our Board of Directors at our 2014 Annual Meeting of Shareholders received an annual restricted stock award having a grant date fair value of approximately $110,000.  The 2014 restricted stock awards will vest on the earlier of (1) the trading day immediately preceding our 2015 Annual Meeting of Shareholders, or (2) the non-employee director’s death or disability.  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.

The following activity occurred under our share-based plans during the respective periods shown:

	Third Quarter				Year-to-Date
(In thousands)	2014		2013		2014		2013
Total intrinsic value of stock options exercised	$	11,050	$	625	$	16,980	$	2,414
Total fair value of restricted stock vested	1,325		—		2,736		1,434
Total fair value of performance shares vested	585		—		1,143		—

The total unearned compensation cost related to all share-based awards outstanding at November 1, 2014 was approximately $23.8 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 2.0 years from November 1, 2014.

NOTE 6 – EMPLOYEE BENEFIT PLANS

We maintain a qualified defined benefit pension plan and a nonqualified supplemental defined benefit pension plan covering certain employees whose hire date occurred before April 1, 1994.

The weighted-average assumptions used to determine net periodic pension cost for our plans were as follows:

	2014		2013
Discount rate	5.0	%	4.6	%
Rate of increase in compensation levels	3.0	%	3.5	%
Expected long-term rate of return	6.0	%	5.1	%

The components of combined net periodic pension cost were as follows:

	Third Quarter						Year-to-Date
(In thousands)	2014			2013			2014			2013
Service cost - benefits earned in the period	$	489		$	521		$	1,463		$	1,564
Interest cost on projected benefit obligation	799			761			2,413			2,281
Expected investment return on plan assets	(804		)	(723		)	(2,414		)	(2,170		)
Amortization of actuarial loss	380			423			1,123			1,269
Amortization of prior service cost	(9		)	(9		)	(26		)	(26		)
Amortization of transition obligation	—			3			—			9
Settlement loss	164			83			164			83
Net periodic pension cost	$	1,019		$	1,059		$	2,723		$	3,010

We currently expect no required contributions to the qualified defined benefit pension plan during 2014.  We will contribute to the nonqualified supplemental defined benefit pension plan as benefits are paid to plan participants, if any, because the nonqualified plan is not a funded plan.

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NOTE 7 – INCOME TAXES

In conjunction with the wind down of our former Canadian segment, our Canadian subsidiary was dissolved during the second quarter of 2014 which resulted in a write-off of the net deferred tax assets (including a net operating loss carryforward) for the Canadian jurisdiction and a release of the corresponding valuation allowance.

We have estimated the reasonably possible expected net change in unrecognized tax benefits through October 31, 2015, based on (1) expected cash and noncash settlements or payments of uncertain tax positions, and (2) lapses of the applicable statutes of limitations for unrecognized tax benefits.  The estimated net decrease in unrecognized tax benefits for the next 12 months is approximately $4.0 million.  Actual results may differ materially from this estimate.

NOTE 8 – CONTINGENCIES

On May 21, May 22 and July 2, 2012, three shareholder derivative lawsuits were filed in the U.S. District Court for the Southern District of Ohio against us and certain of our current and former outside directors and executive officers (Jeffrey Berger, David Kollat, Brenda Lauderback, Philip Mallott, Russell Solt, Dennis Tishkoff, Robert Claxton, Joe Cooper, Steven Fishman, Charles Haubiel, Timothy Johnson, John Martin, Norman Rankin, Paul Schroeder, Robert Segal and Steven Smart). The lawsuits were consolidated, and, on August 13, 2012, plaintiffs filed a consolidated complaint, which generally alleges that the individual defendants traded in our common shares based on material, nonpublic information concerning our guidance for fiscal 2012 and the first quarter of fiscal 2012 and the director defendants failed to suspend our share repurchase program during such trading activity. The consolidated complaint asserts claims under Ohio law for breach of fiduciary duty, unjust enrichment, misappropriation of trade secrets and corporate waste and seeks declaratory relief and disgorgement to us of proceeds from any wrongful sales of our common shares, plus attorneys’ fees and expenses. The defendants have filed a motion to dismiss the consolidated complaint, and that motion is fully briefed and awaiting a decision.

We received a letter dated January 28, 2013, sent on behalf of a shareholder demanding that our Board of Directors investigate and take action in connection with the allegations made in the derivative and securities lawsuits described above. The shareholder indicated that he would commence a derivative lawsuit if our Board of Directors failed to take the demanded action. On March 6, 2013, our Board of Directors referred the shareholder’s letter to a committee of independent directors to investigate the matter. That committee, with the assistance of independent outside counsel, investigated the allegations in the shareholder’s demand letter and, on August 28, 2013, reported its findings to our Board of Directors along with its recommendation that the Board reject the shareholder’s demand. Our Board of Directors unanimously accepted the recommendation of the demand investigation committee and, on September 9, 2013, outside counsel for the committee sent a letter to counsel for the shareholder informing the shareholder of the Board’s determination. On October 18, 2013, the shareholder filed a derivative lawsuit in the U.S. District Court for the Southern District of Ohio against us and each of the current and former outside directors and executive officers named in the 2012 shareholder derivative lawsuit. The plaintiff’s complaint generally alleges that the individual defendants traded in our common shares based on material, nonpublic information concerning our guidance for fiscal 2012 and the first quarter of fiscal 2012 and the director defendants failed to suspend our share repurchase program during such trading activity. The complaint asserts claims under Ohio law for breach of fiduciary duty, unjust enrichment, abuse of control, gross mismanagement, corporate waste and misappropriation of trade secrets and seeks damages, injunctive relief and disgorgement to us of proceeds from any wrongful sales of our common shares, plus attorneys’ fees and expenses. The defendants have filed a motion to dismiss the complaint, and that motion is fully briefed and awaiting a decision.

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On February 10, 2014, a shareholder derivative lawsuit was filed in the Franklin County Common Pleas Court in Columbus, Ohio, against us and certain of our current and former outside directors and executive officers (David Campisi, Steven Fishman, Joe Cooper, Charles Haubiel, Timothy Johnson, Robert Claxton, John Martin, Norman Rankin, Paul Schroeder, Robert Segal, Steven Smart, David Kollat, Jeffrey Berger, James Chambers, Peter Hayes, Brenda Lauderback, Philip Mallott, Russell Solt, James Tener and Dennis Tishkoff). The plaintiff’s complaint generally alleges that the individual defendants traded in our common shares based on material, nonpublic information concerning our guidance for fiscal 2012 and the first quarter of fiscal 2012 and the director defendants failed to suspend our share repurchase program during such trading activity. The complaint also alleges that we and various individual defendants made false and misleading statements regarding our Canadian operations prior to our announcement on December 5, 2013 that we were exiting the Canadian market. The complaint asserts claims under Ohio law for breach of fiduciary duty, unjust enrichment, waste of corporate assets and misappropriation of insider information and seeks damages, injunctive relief and disgorgement to us of proceeds from any wrongful sales of our common shares, plus attorneys’ fees and expenses. At the parties’ request, the court has stayed this lawsuit until after the judge in the federal lawsuits discussed in the preceding paragraphs has ruled on the motions to dismiss pending in those federal lawsuits.

On July 9, 2012, a putative securities class action lawsuit was filed in the U.S. District Court for the Southern District of Ohio on behalf of persons who acquired our common shares between February 2, 2012 and April 23, 2012. This lawsuit was filed against us, Lisa Bachmann, Mr. Cooper, Mr. Fishman and Mr. Haubiel. The complaint in the putative class action generally alleges that the defendants made statements concerning our financial performance that were false or misleading. The complaint asserts claims under sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 and seeks damages in an unspecified amount, plus attorneys’ fees and expenses. The lead plaintiff filed an amended complaint on April 4, 2013, which added Mr. Johnson as a defendant, removed Ms. Bachmann as a defendant, and extended the putative class period to August 23, 2012. The defendants have filed a motion to dismiss the putative class action complaint, and that motion is fully briefed and awaiting a decision.

We believe that the shareholder derivative and putative class action lawsuits are without merit, and we intend to defend ourselves vigorously against the allegations levied in these lawsuits. While a loss from these lawsuits is reasonably possible, at this time, we cannot reasonably estimate the amount of any loss that may result or whether the lawsuits will have a material impact on our financial statements.

On June 13, 2013, we received a voluntary document request from the Division of Enforcement of the SEC relating principally to our participation in investor and analyst meetings in the first fiscal quarter of 2012. We have produced documents and are cooperating with the SEC’s investigation, which is ongoing.

On October 1, 2013, we received a subpoena from the District Attorney for the County of Alameda, State of California, seeking information concerning our handling of hazardous materials and hazardous waste in the State of California. We have provided information and are cooperating with the authorities from multiple counties and cities in California in connection with this ongoing matter. While a loss related to this matter is reasonably possible, at this time, we cannot reasonably estimate the possible loss or range of loss that may arise from this matter or whether this matter will have a material impact on our financial statements.

We are involved in other legal actions and claims arising in the ordinary course of business. We currently believe that each such action and claim will be resolved without a material effect on our financial condition, results of operations, or liquidity. However, litigation involves an element of uncertainty. Future developments could cause these actions or claims to have a material effect on our financial condition, results of operations, and liquidity.

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NOTE 9 – BUSINESS SEGMENT DATA

We use the following seven merchandise categories, which match our internal management and reporting of merchandise net sales: Food, Consumables, Soft Home, Hard Home, Furniture & Home Décor, Seasonal, and Electronics & Accessories. The Food category includes our beverage & grocery, candy & snacks, and specialty foods departments. The Consumables category includes our health and beauty, plastics, paper, chemical, and pet departments. The Soft Home category includes the fashion bedding, utility bedding, bath, window, decorative textile, and flooring departments. The Hard Home category includes our small appliances, table top, food preparation, stationery, greeting card, tools, paint, and home maintenance departments. The Furniture & Home Décor category includes our upholstery, mattress, ready-to-assemble, case goods, home décor, and frames departments. The Seasonal category includes our lawn & garden, summer, Christmas, toys, books, sporting goods, and other holiday departments. The Electronics & Accessories category includes the electronics, jewelry, apparel, hosiery, and infant accessories departments.

The following table presents net sales data by merchandise category:

		Third Quarter				Year-to-Date
(In thousands)		2014		2013		2014		2013
	Furniture & Home Décor	$	270,242	$	246,093	$	843,952	$	796,178
	Consumables	230,191		226,420		693,102		671,603
	Food	202,352		185,959		584,762		530,216
	Hard Home	115,414		132,498		338,187		394,542
	Soft Home	110,292		105,286		328,398		305,468
	Seasonal	95,942		106,951		549,200		552,349
	Electronics & Accessories	82,662		101,711		246,128		302,487
Net sales		$	1,107,095	$	1,104,918	$	3,583,729	$	3,552,843

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NOTE 10 – COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE LOSS

The following table summarizes the components of accumulated other comprehensive loss, net of tax, during 2013 and 2014:

(In thousands)	Foreign currency translation			Pension Plan			Total accumulated other comprehensive loss
Balance at February 2, 2013	$	(1,433	)	$	(11,897	)	$	(13,330	)
Other comprehensive income before reclassifications	(2,189		)	50			(2,139		)
Amounts reclassified from accumulated other comprehensive loss	—			751			751
Net period change	(2,189		)	801			(1,388		)
Balance at November 2, 2013	(3,622		)	(11,096		)	(14,718		)
Other comprehensive income before reclassifications	(1,400		)	2,302			902
Amounts reclassified from accumulated other comprehensive loss	—			305			305
Net period change	(1,400		)	2,607			1,207
Balance at February 1, 2014	(5,022		)	(8,489		)	(13,511		)
Other comprehensive income before reclassifications	(39		)	(368		)	(407		)
Amounts reclassified from accumulated other comprehensive loss	5,061			727			5,788
Net period change	5,022			359			5,381
Balance at November 1, 2014	$	—		$	(8,130	)	$	(8,130	)

The following table summarizes the components of accumulated other comprehensive loss, net of tax, during the third quarter of 2013:

(In thousands)	Foreign currency translation			Pension Plan			Total accumulated other comprehensive loss
Balance at August 3, 2013	$	(3,398	)	$	(11,398	)	$	(14,796	)
Other comprehensive income before reclassifications	(224		)	50			(174		)
Amounts reclassified from accumulated other comprehensive loss	—			252			252
Net period change	(224		)	302			78
Balance at November 2, 2013	$	(3,622	)	$	(11,096	)	$	(14,718	)

The following table summarizes the components of accumulated other comprehensive loss, net of tax, during the third quarter of 2014:

(In thousands)	Foreign currency translation		Pension Plan			Total accumulated other comprehensive loss
Balance at August 2, 2014	$	—	$	(8,066	)	$	(8,066	)
Other comprehensive income before reclassifications	—		(368		)	(368		)
Amounts reclassified from accumulated other comprehensive loss	—		304			304
Net period change	—		(64		)	(64		)
Balance at November 1, 2014	$	—	$	(8,130	)	$	(8,130	)

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The amounts reclassified from accumulated other comprehensive income associated with our pension plans have been reclassified to selling and administrative expenses in our statements of operations. Please see note 6 to the consolidated financial statements for further information on our pension plans.

The amounts reclassified from accumulated other comprehensive income associated with foreign currency translation have been reclassified to income (loss) from discontinued operations in our statements of operations, as the amounts related to our Canadian operations. Please see note 12 to the consolidated financial statements for further information on our discontinued operations.

NOTE 11 – COSTS ASSOCIATED WITH WIND DOWN ACTIVITIES

Wholesale Business

During the third quarter of 2013, we announced our intention to wind down the operations of our wholesale business during the fourth quarter of 2013. At that time, we recorded a severance charge for this exit activity. During the fourth quarter of 2013, we closed the leased facilities in which we operated our wholesale business, recorded contract termination costs, and fully paid those obligations.

In the fourth quarter of 2013 we established a liability of $0.5 million for severance related cost associated with the wind down of our wholesale business. During the six months ended August 2, 2014 we paid $0.5 million in severance cost reducing the liability to zero at August 2, 2014. We anticipate no additional charges associated with the wind down of the operations of our wholesale business.

As the operations of the wholesale business had ceased as of February 1, 2014, the results of operations of the wholesale business were reclassified to discontinued operations. Please see the Wholesale Business section of note 12 to the consolidated financial statements for further information regarding this discontinued operation.

Canadian Operations

During the fourth quarter of 2013, we announced our intention to wind down the operations of our former Canadian segment. We conducted detailed evaluations of our long range strategic objectives and performed a preliminary review of our 2014 financial plan. As a result of this evaluation and review, we determined our Canadian operations did not fit into our strategic plan for maximizing long-term shareholder returns based on our expectations of the required investments necessary to improve our Canadian operations’ financial performance, both in the near and long-term. During the fourth quarter of 2013, we began a markdown strategy with the intent to liquidate our inventory prior to closing our stores. At February 1, 2014, we revalued our inventory at our net realizable value based on estimated cash proceeds prior to closing, which represents our estimate of its market value. During the fourth quarter of 2013, we also conducted a review of our long lived assets. We determined that the elimination of future cash flows from our operations beyond the first quarter of 2014 resulted in the impairment of our property and equipment and our tradename intangible assets. Additionally, we conducted an impairment review of our goodwill associated with our Canadian operations, determined that the goodwill had been fully impaired, and we recorded an impairment charge.

The wind down of our Canadian operations was separated into two phases: our distribution centers and our stores. During the fourth quarter of 2013, we ceased the operations of our Canadian distribution centers, as receiving, processing, and distributing activities were completed. We recorded a severance charge of approximately $2.7 million relating to the closure of our distribution centers and certain administrative activities. Additionally, with the closure of certain leased distribution centers, we recorded contract termination costs of approximately $1.3 million.

During the first quarter of 2014, we closed all of our stores, ceased their operations, and closed our Canadian corporate office. We recorded severance and contract termination costs of approximately $2.2 million and $23.0 million relating to the closure of our stores and our remaining administrative activities, respectively. In addition, in connection with the substantial completion of the wind down activities, we recorded a foreign currency translation loss of $5.1 million, which related to the realization of the cumulative translation adjustment on our investment in our Canadian operations.

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The following table summarizes the components of our wind down activities associated with our Canadian operations and the activities within the related liabilities during 2014:

(In thousands)	Severance			Contract Termination Costs			Total
Balance at February 1, 2014	$	2,420		$	1,276		$	3,696
Charges	2,206			22,984			25,190
Adjustments	—			553			553
Payments	(3,997		)	(15,577		)	(19,574		)
Foreign currency translation	(38		)	74			36
Period change	(1,829		)	8,034			6,205
Balance at May 3, 2014	$	591		$	9,310		$	9,901
Charges	—			28			28
Adjustments	—			(335		)	(335		)
Payments	(591		)	(7,942		)	(8,533		)
Foreign currency translation	—			95			95
Period change	(591		)	(8,154		)	(8,745		)
Balance at August 2, 2014	$	—		$	1,156		$	1,156
Charges	—			114			114
Adjustments	—			—			—
Payments	—			(1,012		)	(1,012		)
Foreign currency translation	—			(8		)	(8		)
Period change	—			(906		)	(906		)
Balance at November 1, 2014	$	—		$	250		$	250

During February 2014, we closed all of our Canadian stores, terminated all remaining Canadian employees, and accrued an obligation for the associated severance and contract termination costs. As of November 1, 2014, we anticipate any future charges associated with the wind down of our Canadian operations will be immaterial. As our Canadian operations had ceased as of May 3, 2014, the results of our Canadian operations were reclassified to discontinued operations. Please see the Canadian Operations section of note 12 to the consolidated financial statements for further information regarding this discontinued operation.

NOTE 12 – DISCONTINUED OPERATIONS

Our discontinued operations for the third quarter and year-to-date of 2014 and 2013 were comprised of the following:

	Third Quarter						Year-to-Date
(In thousands	2014			2013			2014			2013
Canadian operations	$	(475	)	$	(4,977	)	$	(35,629	)	$	(13,269	)
Wholesale business	(58		)	(4,296		)	(216		)	(4,697		)
KB Toys matters	—			—			9			—
Other	—			—			—			1
Total loss from discontinued operations, pretax	$	(533	)	$	(9,273	)	$	(35,836	)	$	(17,965	)

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Canadian Operations

During the fourth quarter of 2013, we announced our intention to wind down our Canadian operations. We began the wind down activities during the fourth quarter of 2013, which included the closing of our Canadian distribution centers, and completed the wind down activities during the first quarter of 2014, which included the closing of our Canadian stores and corporate offices. Therefore, we determined the results of our Canadian operations should be reported as discontinued operations for all periods presented. The results of our Canadian operations have historically consisted of sales of product to retail customers, the costs associated with those products, and selling and administrative expenses, including personnel, purchasing, warehousing, distribution, occupancy and overhead costs. During the year-to-date 2014, the results of our Canadian operations also included significant contract termination costs associated with the wind down of the operations. Please see the Canadian Operations section of note 11 to the consolidated financial statements for additional details regarding the costs we incurred in connection with the wind down of our Canadian operations during the year-to-date 2014.

In addition to the costs associated with our Canadian operations, we reclassified to discontinued operations the direct expenses incurred by our U.S. operations to facilitate the wind down. These costs primarily consist of professional fees. We also reclassified the income tax benefit that we expect our U.S. operations to generate as a result of the wind down of our Canadian operations, based on our ability to recover a worthless stock deduction in the foreseeable future. During the third quarter of 2014 and the year-to-date 2014, the amount of this income tax benefit that we recognized was approximately $0.2 million and $12.9 million, respectively.

Wholesale Business

During the third quarter of 2013, we announced our intention to wind down the operations of our wholesale business, within our U.S. segment. During the fourth quarter of 2013, we executed our wind down plan and ceased the operations of our wholesale business. Therefore, we determined that the results of our wholesale business should be reported as discontinued operations for all periods presented. The results of operations of our wholesale business primarily consisted of sales of product to wholesale customers, the costs associated with those products, and selling and administrative expenses, including personnel, purchasing, warehousing, distribution, occupancy and overhead costs. Please see the Wholesale Business section of note 11 to the consolidated financial statements for additional details regarding the costs we incurred in connection with the wind down of our wholesale business during the year-to-date 2014.

KB Toys Matters

We acquired the KB Toys business from Melville Corporation (now known as CVS New York, Inc., and, together with its subsidiaries, “CVS”) in May 1996. As part of that acquisition, we provided, among other things, an indemnity to CVS with respect to any losses resulting from KB Toys' failure to pay all monies due and owing under any KB Toys lease or mortgage obligation. While we controlled the KB Toys business, we provided guarantees with respect to a limited number of additional KB Toys store leases. We sold the KB Toys business to KB Acquisition Corp. (“KBAC”), an affiliate of Bain Capital, pursuant to a Stock Purchase Agreement. KBAC similarly agreed to indemnify us with respect to all lease and mortgage obligations. On January 14, 2004, KBAC and certain affiliated entities (collectively referred to as “KB-I”) filed for bankruptcy protection pursuant to Chapter 11 of title 11 of the United States Code. On August 30, 2005, in connection with the acquisition by an affiliate of Prentice Capital Management of majority ownership of KB-I, KB-I emerged from its 2004 bankruptcy (the KB Toys business that emerged from bankruptcy is hereinafter referred to as “KB-II”). On December 11, 2008, KB-II filed for bankruptcy protection pursuant to Chapter 11 of title 11 of the United States Code.

Associated with the KB-I and KB-II bankruptcies, we believed we had exposure to certain lease obligations for which we had recorded estimated liabilities in prior years. During the fourth quarter of 2013, we received a final distribution from the KB-I bankruptcy estate. Additionally, in the fourth quarter of 2013, we reduced the amount of our estimated obligation associated with the KB-II bankruptcy to zero in our consolidated balance sheet. We based this reversal on the following factors: (1) we had not received any new demand letters from landlords during the past two years; (2) all prior demands against us by landlords had been settled or paid or the landlords had stopped pursuing their demands; (3) the KB-II bankruptcy occurred more than five years prior to the end of 2008 and most of the lease rejections occurred more than two years prior to the end of 2013; and (4) we believed that the likelihood of new claims against us was remote and, if incurred, the amount would be immaterial.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS FOR PURPOSES OF THE SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

The Private Securities Litigation Reform Act of 1995 (“Act”) provides a safe harbor for forward-looking statements to encourage companies to provide prospective information, so long as those statements are identified as forward-looking and are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those discussed in the statements. We wish to take advantage of the “safe harbor” provisions of the Act.

Certain statements in this report are forward-looking statements within the meaning of the Act, and such statements are intended to qualify for the protection of the safe harbor provided by the Act. The words “anticipate,” “estimate,” “expect,” “objective,” “goal,” “project,” “intend,” “plan,” “believe,” “will,” “should,” “may,” “target,” “forecast,” “guidance,” “outlook,” and similar expressions generally identify forward-looking statements. Similarly, descriptions of our objectives, strategies, plans, goals or targets are also forward-looking statements. Forward-looking statements relate to the expectations of management as to future occurrences and trends, including statements expressing optimism or pessimism about future operating results or events and projected sales, earnings, capital expenditures and business strategy. Forward-looking statements are based upon a number of assumptions concerning future conditions that may ultimately prove to be inaccurate. Forward-looking statements are and will be based upon management's then-current views and assumptions regarding future events and operating performance, and are applicable only as of the dates of such statements. Although we believe the expectations expressed in forward-looking statements are based on reasonable assumptions within the bounds of our knowledge, forward-looking statements, by their nature, involve risks, uncertainties and other factors, any one or a combination of which could materially affect our business, financial condition, results of operations or liquidity.

Forward-looking statements that we make herein and in other reports and releases are not guarantees of future performance and actual results may differ materially from those discussed in such forward-looking statements as a result of various factors, including, but not limited to, the current economic and credit conditions, the cost of goods, our inability to successfully execute strategic initiatives, competitive pressures, economic pressures on our customers and us, the availability of brand name closeout merchandise, trade restrictions, freight costs, the risks discussed in the Risk Factors section of our most recent Annual Report on Form 10-K, and other factors discussed from time to time in our other filings with the SEC, including Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. This report should be read in conjunction with such filings, and you should consider all of these risks, uncertainties and other factors carefully in evaluating forward-looking statements.

Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made. We undertake no obligation to publicly update forward-looking statements whether as a result of new information, future events or otherwise. Readers are advised, however, to consult any further disclosures we make on related subjects in our public announcements and SEC filings.

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OVERVIEW

The discussion and analysis presented below should be read in conjunction with the accompanying consolidated financial statements and related notes.  Each term defined in the notes has the same meaning in this item and the balance of this report.

The following are the results from the third quarter of 2014 that we believe are key indicators of our operating performance when compared to our operating performance from the third quarter of 2013:

• Net sales increased $2.2 million, or 0.2%.

• Comparable store sales for stores open at least fifteen months increased $14.2 million, or 1.4%.

• Gross margin dollars decreased $0.5 million, and gross margin rate decreased 10 basis points from 39.0% to 38.9% of sales.

• Selling and administrative expenses decreased $0.6 million. As a percentage of net sales, selling and administrative expenses decreased 10 basis points to 36.6% of net sales.

• Operating loss rate increased 10 basis points to 0.4%.

• Diluted loss per share from continuing operations increased from $(0.03) per share to $(0.06) per share.

• Inventory decreased by 13.1% or $162.7 million to $1,075.4 million from the third quarter of 2013.

• We acquired 2.6 million of our outstanding common shares for $114.8 million under our August 2014 Repurchase Program.

• We declared and paid a quarterly cash dividend in the amount of $0.17 per common share.

See the discussion and analysis below for additional details regarding our operating results.

STORES

During the first quarter of 2014, we ceased our Canadian operations and closed all Canadian stores. The following table presents stores opened and closed in the U.S. during the year-to-date 2014 and the year-to-date 2013:

		2014		2013
Stores open at the beginning of the fiscal year		1,493		1,495
Stores opened during the period		24		52
Stores closed during the period		(21	)	(22	)
	Stores open at the end of the period	1,496		1,525

We have opened 24 stores in the year-to-date and do not expect to open any additional stores during the balance of the year. We expect to close 57 stores in the U.S. during 2014, which will result in more than the 20 net closings that we originally anticipated, but is fewer than the 60 to 65 net closings that we anticipated in our Quarterly Report on Form 10-Q for the quarterly period ended August 2, 2014. The increase in net closings from our original expectations is primarily due to (1) fewer anticipated openings driven by both the timing and availability of acceptable locations and (2) more anticipated closings based on management decisions relating to store level performance and renewal option negotiations.

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RESULTS OF OPERATIONS

The following table compares components of our consolidated statements of operations as a percentage of net sales at the end of each period:

	Third Quarter				Year-to-Date
	2014		2013		2014		2013
Net sales	100.0	%	100.0	%	100.0	%	100.0	%
Cost of sales (exclusive of depreciation expense shown separately below)	61.1		61.0		61.1		60.7
Gross margin	38.9		39.0		38.9		39.3
Selling and administrative expenses	36.6		36.7		34.4		34.3
Depreciation expense	2.7		2.6		2.5		2.3
Operating (loss) profit	(0.4	)	(0.3	)	2.0		2.7
Interest expense	(0.1	)	(0.1	)	(0.0	)	(0.1	)
Other income (expense)	0.0		0.0		0.0		(0.0	)
(Loss) income from continuing operations before income taxes	(0.4	)	(0.4	)	1.9		2.6
Income tax (benefit) expense	(0.2	)	(0.2	)	0.7		1.0
(Loss) income from continuing operations	(0.3	)	(0.2	)	1.2		1.6
Loss from discontinued operations	(0.0	)	(0.7	)	(0.6	)	(0.5	)
Net (loss) income	(0.3	)%	(0.9	)%	0.6	%	1.2	%

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THIRD QUARTER OF 2014 COMPARED TO THIRD QUARTER OF 2013

Continuing Operations

Net Sales

Net sales by merchandise category (in dollars and as a percentage of total net sales), net sales change (in dollars and percentage), and the change in comparable store sales for stores open at least fifteen months (“comp” or “comps”) (in percentage) from the third quarter of 2014 compared to the third quarter of 2013 were as follows:

Third Quarter
($ in thousands)	2014				2013				Change					Comps
Furniture & Home Décor	$	270,242	24.4	%	$	246,093	22.3	%	$	24,149		9.8	%	10.2	%
Consumables	230,191		20.8		226,420		20.5		3,771			1.7		3.2
Food	202,352		18.3		185,959		16.8		16,393			8.8		10.3
Hard Home	115,414		10.4		132,498		12.0		(17,084		)	(12.9	)	(11.6	)
Soft Home	110,292		10.0		105,286		9.5		5,006			4.8		5.9
Seasonal	95,942		8.7		106,951		9.7		(11,009		)	(10.3	)	(9.1	)
Electronics & Accessories	82,662		7.4		101,711		9.2		(19,049		)	(18.7	)	(17.3	)
Net sales	$	1,107,095	100.0	%	$	1,104,918	100.0	%	$	2,177		0.2	%	1.4	%

In the fourth quarter of 2013, we realigned select merchandise categories to be consistent with the realignment of our merchandising team and changes to our management reporting. We now use the following merchandise categories, which match our internal management and reporting of merchandise net sales: Food, Consumables, Soft Home, Hard Home, Furniture & Home Décor, Seasonal, and Electronics & Accessories. The Food category includes our beverage & grocery, candy & snacks, and specialty foods departments. The Consumables category includes our health and beauty, plastics, paper, chemical, and pet departments. The Soft Home category includes the fashion bedding, utility bedding, bath, window, decorative textile, and flooring departments. The Hard Home category includes our small appliances, table top, food preparation, stationery, greeting card, tools, paint, and home maintenance departments. The Furniture & Home Décor category includes our upholstery, mattress, ready-to-assemble, case goods, home décor, and frames departments. The Seasonal category includes our lawn & garden, summer, Christmas, toys, books, sporting goods, and other holiday departments. The Electronics & Accessories category includes the electronics, jewelry, apparel, hosiery, and infant accessories departments. Sales results for the third quarter of 2013 have been reclassified to reflect this realignment.

Net sales increased $2.2 million, or 0.2%, to $1,107.1 million in the third quarter of 2014, compared to $1,104.9 million in the third quarter of 2013.  The increase in net sales was principally due to a 1.4% increase in comps, which increased net sales by $14.2 million, partially offset by the net decrease of 29 stores since the end of the third quarter of 2013, which decreased net sales by $12.0 million. The Food category experienced positive comps in nearly all departments due to an improved assortment, which includes more branded product available for our customers, particularly as it relates to our cooler and freezer offerings. During the third quarter of 2014, we continued the roll-out of our coolers and freezers program and, as of the end of third quarter of 2014, we have installed coolers and freezers in approximately 750, or 50%, of our stores. Furniture & Home Décor also experienced improved sales and comps during the third quarter of 2014, as we benefited from our first full quarter since the completion of the roll-out of our lease-to-purchase program. Our upholstery and casegoods departments had the strongest increases in comps and net sales within the Furniture & Home Décor category. Our bedding assortment, which continued to focus on new products and improved quality, was the primary catalyst for improvement in our Soft Home category, which continued to experience net sales and comp increases in most departments. Consumables experienced a comp increase in the departments for which we were able to provide additional branded products. The growth in Consumables’ comps was partially offset by fewer closeout opportunities in our paper department. The negative comps in our Seasonal category were planned and primarily driven by our decision to narrow our Halloween and toys assortments in response to a multi-year trend of lower customer demand for Halloween décor and our expectation of decreased customer demand for toys during the holiday selling season, respectively. We continued to experience negative comps in Hard Home as a result of our decision to narrow the product offerings in this category through “edit” activities in our Edit to Amplify strategy, specifically in our home maintenance, auto, tools, and paint departments. Electronics & Accessories had negative comps, which were primarily driven by lower electronics sales, particularly in tablet, digital camera, gaming and DVD products, as we continue to narrow the merchandise assortment in our electronics department based on our customer’s response to our product offerings, and overall trends for this category in the retail marketplace.

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Gross Margin

Gross margin dollars decreased slightly by $0.5 million to $430.9 million for the third quarter of 2014, compared to $431.4 million for the third quarter of 2013.  The slight decrease in gross margin dollars was primarily due to a lower gross margin rate, which decreased gross margin dollars by approximately $1.3 million, partially offset by an increase in net sales, which increased gross margin dollars by approximately $0.8 million  Gross margin as a percentage of net sales slightly decreased from 39.0% in the third quarter of 2013 to 38.9% in the third quarter of 2014, as a result of a slightly lower initial markup on our merchandise, as we have shifted the composition of our product mix to include more Food and Consumables, partially offset by a lower markdown rate.

Selling and Administrative Expenses

Selling and administrative expenses were $404.7 million for the third quarter of 2014, compared to $405.3 million for the third quarter of 2013. The decrease of $0.6 million, or 0.1%, was primarily due to a decrease in store related payroll of $2.9 million. This decrease was partially offset by an increase in accrued bonus expense of $2.3 million. The decrease in store related payroll resulted from a net decrease of 29 stores compared to the third quarter of 2013. The increase in accrued bonus expense was directly related to better financial performance in the third quarter of 2014 relative to our annual operating plan as compared to our performance during the third quarter of 2013 relative to our 2013 operating plan. As a percentage of net sales, selling and administrative expenses decreased 10 basis points to 36.6% for the third quarter of 2014 compared to 36.7% for the third quarter of 2013.

Depreciation Expense

Depreciation expense increased $1.3 million to $30.3 million in the third quarter of 2014, compared to $29.0 million for the third quarter of 2013. The increase was directly related to capital expenditures associated with the implementation of our coolers and freezers program, store projects, and maintenance of existing stores and distribution centers. Depreciation expense as a percentage of sales increased by 10 basis points in the third quarter of 2014 compared to the third quarter of 2013.

Interest Expense

Interest expense was $0.8 million in the third quarter of 2014, compared to $1.0 million in the third quarter of 2013.  The decrease was driven by a decrease in borrowings in the third quarter of 2014. We had total average borrowings (including capital leases) of $124.8 million in the third quarter of 2014 compared to total average borrowings of $219.7 million in the third quarter of 2013.

Income Taxes

The effective income tax benefit rate for the third quarter of 2014 and the third quarter of 2013 for income from continuing operations was 35.3% and 50.0%, respectively.  The lower benefit rate was primarily due to the absence of a favorable lapse of the statute of limitations related to federal matters and an increase in the valuation allowance related to state income tax credits due to an anticipated reduction in realizability as a result of anticipated store closings and lower apportioned jurisdictional income.

Discontinued Operations

During the first quarter of 2014, we ceased our Canadian operations by closing all of our stores in Canada. Accordingly, we reclassified the results of our Canadian operations to discontinued operations for all periods presented. We incurred approximately $0.5 million in costs related to our discontinued Canadian operations during the third quarter of 2014, which were primarily associated with professional services.

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YEAR-TO-DATE 2014 COMPARED TO YEAR-TO-DATE 2013

Continuing Operations

Net Sales

Net sales by merchandise category (in dollars and as a percentage of total net sales), net sales change (in dollars and percentage), and the change in comps (in percentage) from the year-to-date2014 compared to the year-to-date2013 were as follows:

Year-to-Date
($ in thousands)	2014				2013				Change					Comps
Furniture & Home Décor	$	843,952	23.6	%	$	796,178	22.4	%	$	47,774		6.0	%	5.7	%
Consumables	693,102		19.3		671,603		18.9		21,499			3.2		4.1
Food	584,762		16.3		530,216		14.9		54,546			10.3		11.1
Seasonal	549,200		15.3		552,349		15.6		(3,149		)	(0.6	)	(2.3	)
Hard Home	338,187		9.4		394,542		11.1		(56,355		)	(14.3	)	(10.9	)
Soft Home	328,398		9.2		305,468		8.6		22,930			7.5		8.0
Electronics & Accessories	246,128		6.9		302,487		8.5		(56,359		)	(18.6	)	(17.7	)
Net sales	$	3,583,729	100.0	%	$	3,552,843	100.0	%	$	30,886		0.9	%	1.3	%

As discussed above in the section “Third Quarter of 2014 Compared to Third Quarter of 2013”, in the fourth quarter of 2013, we realigned select merchandise categories to be consistent with the realignment of our merchandising team and changes to our management reporting. Sales results for the year-to-date 2013 have been reclassified to reflect this realignment.

Net sales increased $30.9 million, or 0.9%, to $3,583.7 million in the year-to-date2014, compared to $3,552.8 million in the year-to-date2013.  The increase in net sales was principally due to a 1.3% increase in comps, which increased net sales by $44.2 million, partially offset by the net decrease of 29 stores since the end of the third quarter of 2013, which decreased net sales by $13.3 million.  The Food category experienced positive comps in all departments due to an improved assortment with more branded products, particularly in our new coolers and freezers, and closeouts. During the year-to-date 2014, we began the roll-out of our coolers and freezers program, and as of the end of third quarter of 2014, we have installed coolers and freezers in approximately 750, or 50%, of our stores. Although many departments in our Soft Home category experienced net sales and comp increases, the increases were primarily driven by our bedding assortment, which focused on new products and improved quality. The Furniture & Home Décor category experienced a positive and improving comp during the year-to-date 2014, primarily as a result of the commencement and completion of the roll-out of our lease-to-purchase program during the second quarter of 2014. Consumables experienced a comp increase, which was driven by growth in nearly all departments, particularly our pet department in the first quarter of 2014, which benefited from a product and space expansion at the end of the first quarter of 2013. The negative comps in our Seasonal category were primarily driven by our decision to narrow our Halloween and toys assortments in response to a multi-year trend of lower customer demand for Halloween décor and our expectation of decreased customer demand for toys during the holiday selling season, respectively. The slightly negative comps in our Seasonal category were also affected by the harsh winter weather experienced in northern sections of the U.S., which we believe delayed sales in our lawn & garden and summer departments, and as a result, we incurred slightly higher markdowns in these departments in the year-to-date 2014 to ensure sell through of the product. Hard Home experienced negative comps as a result of our decision in late 2013 to narrow the product offerings in this category through “edit” activities in our Edit to Amplify strategy, specifically in our home maintenance, auto, tools, and paint departments. The negative comps in Electronics & Accessories were also a result of our “edit” activities in our Edit to Amplify strategy, as we continue to narrow the merchandise assortment in our electronics department, particularly in tablet, digital camera, gaming and DVD products, based on our customer’s response to our product offerings, and overall trends for, this category in the retail marketplace.

Based on our year-to-date 2014 results and trends during November, we expect comparable store sales to be in the low single digits for the fourth quarter of 2014 which includes the holiday selling season.

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Gross Margin

Gross margin dollars decreased $3.7 million, or 0.3%, to $1,394.0 million for the year-to-date2014, compared to $1,397.7 million for the year-to-date2013.  The decrease in gross margin dollars was principally due to a decrease in gross margin rate, which decreased gross margin dollars by approximately $15.8 million, partially offset by the sales increase of $30.9 million, which increased gross margin dollars by approximately $12.1 million. Gross margin as a percentage of net sales decreased 40 basis points to 38.9% in the year-to-date2014, compared to 39.3% in the year-to-date2013.  The gross margin rate decrease was principally due to the impact of a higher markdown rate during the first quarter of 2014 and a shift in merchandise mix with an increase in net sales in categories with lower gross margin rates, as evidenced by comp increases in our Food and Consumables categories. The increase in the markdown rate was primarily driven by higher discounts taken to sell through certain under-performing categories, primarily during the first quarter of 2014, as we narrowed our product assortment as part of our Edit to Amplify merchandising strategy.

In the fourth quarter of 2014, we expect our gross margin rate will be significantly higher than the fourth quarter of 2013, as we expect a substantially lower overall markdown rate in 2014 as compared to 2013, which included significant markdowns from the initial implementation of our Edit to Amplify merchandise strategy.

Selling and Administrative Expenses

Selling and administrative expenses were $1,234.4 million for the year-to-date2014, compared to $1,219.3 million for the year-to-date2013. The increase of $15.1 million, or 1.2%, was primarily due to increases in accrued bonus expense of $10.5 million, store occupancy expenses of $4.6 million, corporate office payroll expenses of $3.2 million, distribution and transportation expenses of $2.7 million, and store utilities expense of $2.1 million. These increases were partially offset by the absence of a non-recurring ligation settlement of $4.4 million and a decrease in share-based compensation expense of $3.5 million. The increase in accrued bonus expense was directly related to better financial performance in the year-to-date 2014 relative to our annual operating plan as compared to our performance during the year-to-date 2013. The increase in store occupancy expense was primarily the result of an increase in store rents from the exercise of lease options and property maintenance costs. The increase in corporate office payroll costs was driven by normal merit increase activity along with investment in our merchandising team and expansion of our marketing team as we develop our omnichannel strategy. The increase in distribution and transportation expenses was primarily due to an increased number of merchandise cartons flowing from our distribution centers to our stores. The increase in utilities expense was primarily attributable to the unseasonably cold weather in many regions of the U.S. during the first quarter of 2014 and our roll-out of our coolers and freezers program, which has gradually increased our energy consumption. The non-recurring litigation settlement was the result of a loss contingency for a legal matter that was recognized in the first quarter of 2013 and finalized in the second quarter of 2013. The decrease in share-based compensation expense was primarily driven by the forfeiture of awards by individuals affected by separation activities and the associated reversal of costs, and the change in the types of equity instruments that were awarded in 2014 compared to 2013, specifically the replacement of stock options with performance share units which have a different expense recognition pattern.

As a percentage of net sales, selling and administrative expenses increased 10 basis points to 34.4% for the year-to-date2014 compared to 34.3% for the year-to-date2013.

For the fourth quarter of 2014, we anticipate that our selling and administrative expenses as a percentage of net sales will increase slightly compared to the fourth quarter of 2013, primarily as a result of the increase that we expect in accrued bonus expense in 2014 as compared to 2013 when there was minimal corporate payout.

Depreciation Expense

Depreciation expense increased $5.1 million to $88.5 million in the year-to-date2014, compared to $83.4 million for the year-to-date2013. The increase was directly related to capital expenditures in both 2013 and 2014 associated with the implementation of our coolers and freezers program, store projects, and maintenance of existing stores and distribution centers. Depreciation expense as a percentage of sales increased by 20 basis points compared to the year-to-date 2013.

We expect that our depreciation expense will increase in the fourth quarter of 2014 as compared to the fourth quarter of 2013 as a result of continued capital expenditures associated with our cooler and freezer program, store projects, and maintenance of existing stores and distribution centers, and our investment in capital leases to update our store asset protection infrastructure. Total capital expenditures are forecasted in the range of $100 million to $105 million for 2014, which is less than initially anticipated primarily due to our decision to open fewer stores than we originally expected and the timing of certain other investments related to our strategic plan.

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Interest Expense

Interest expense was $1.6 million in the year-to-date2014, compared to $2.5 million in the year-to-date2013.  The decrease was driven by lower average borrowings under our bank credit facility. We had total average borrowings (including capital leases) of $82.9 million in the year-to-date2014 compared to total average borrowings of $156.7 million in the year-to-date2013.

Income Taxes

The effective income tax rate for the year-to-date2014 and the year-to-date2013 for income from continuing operations was 38.6% and 38.4%, respectively.  The higher effective income tax rate for year-to-date 2014 was principally driven by the absence of a favorable lapse of the statute of limitations related to federal matters and an increase in the valuation allowance related to state income tax credits due to an anticipated reduction in realizability as a result of anticipated store closings and lower apportioned jurisdictional income offset by the recognition of income tax benefits associated with an update on a state administrative proceeding and increased state settlement activity.

Discontinued Operations

During the first quarter of 2014, we ceased our Canadian operations by closing all of our stores in Canada. Accordingly, we reclassified the results of our Canadian operations to discontinued operations for all periods presented. In conjunction with the wind down of our Canadian operations in the first quarter of 2014, we recorded $23.0 million in contract termination costs, primarily associated with store operating leases, $2.2 million in severance costs associated with our store and corporate office operations in Canada, and $5.1 million in foreign currency losses associated with the reclassification of the cumulative translation adjustment from other comprehensive income. Since the first quarter of 2014, we have incurred approximately $1.5 million in costs associated with the wind down of our Canadian operations, which were primarily associated with professional services and turning over leased facilities to our former landlords.

Additionally, we have elected to classify in discontinued operations the U.S. income tax benefit related to the excess tax basis in the common shares of Big Lots Canada that we should recover as a worthless stock deduction in 2014, as this deduction was generated from our Canadian operations which we have also classified as discontinued operations. During the year-to-date 2014, we recognized a $12.9 million income tax benefit.

Capital Resources and Liquidity

On July 22, 2011, we entered into the 2011 Credit Agreement.  The 2011 Credit Agreement was scheduled to expire on July 22, 2016. On May 30, 2013, we entered into an amendment of the 2011 Credit Agreement that extended its expiration date to May 30, 2018.  Borrowings under the 2011 Credit Agreement are available for working capital and general corporate purposes.  The 2011 Credit Agreement includes a $30 million swing loan sublimit and a $150 million letter of credit sublimit. The interest rates, pricing and fees under the 2011 Credit Agreement fluctuate based on our debt rating.  The 2011 Credit Agreement allows us to select our interest rate for each borrowing from multiple interest rate options.  The interest rate options are generally derived from the prime rate or LIBOR.  We may prepay revolving loans made under the 2011 Credit Agreement.  The 2011 Credit Agreement contains financial and other covenants, including, but not limited to, limitations on indebtedness, liens and investments, as well as the maintenance of two financial ratios – a leverage ratio and a fixed charge coverage ratio.  A violation of any of the covenants could result in a default under the 2011 Credit Agreement that would permit the lenders to restrict our ability to further access the 2011 Credit Agreement for loans and letters of credit and require the immediate repayment of any outstanding loans under the 2011 Credit Agreement.  At November 1, 2014, we were in compliance with the covenants of the 2011 Credit Agreement.

The primary source of our liquidity is cash flows from operations and, as necessary, borrowings under the 2011 Credit Agreement.  Our net income and, consequently, our cash provided by operations are impacted by net sales volume, seasonal sales patterns, and operating profit margins.  Our net sales are typically highest during the nine-week Christmas selling season in our fourth fiscal quarter.  Generally, our working capital requirements peak late in our third fiscal quarter or early in our fourth fiscal quarter.  We have typically funded those requirements with borrowings under our credit facility.  At November 1, 2014, we had $283.4 million in borrowings under the 2011 Credit Agreement and the borrowings available under the 2011 Credit Agreement were $405.4 million, after taking into account the reduction in availability resulting from outstanding letters of credit totaling $11.2 million.

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In March 2014, our Board of Directors authorized us to repurchase up to $125.0 million of our outstanding common shares. During the year-to-date 2014, we exhausted this program by purchasing approximately 3.3 million common shares at an average price of $38.12 per share. In August 2014, our Board of Directors authorized us to repurchase up to an additional $125.0 million of our common shares. During the third quarter of 2014, we purchased approximately $114.8 million of our common shares under the August 2014 Repurchase Program.

In June 2014, we announced that our Board of Directors commenced a cash dividend program. Since the commencement of the program, we have declared and paid two quarterly cash dividends of $0.17 per common share for a total paid amount of approximately $18.8 million. Although it is the present intention of our Board of Directors to continue to pay a quarterly cash dividend in the future, the determination to pay future dividends will be at the discretion of our Board of Directors and will depend on our financial condition, results of operations, capital requirements, compliance with applicable laws and agreements and any other factors deemed relevant by our Board.

The following table compares the primary components of our cash flows from the year-to-date2014 compared to the year-to-date2013:

(in thousands)	2014			2013			Change
Net cash provided by (used in) operating activities	$	62,378		$	(71,098	)	$	133,476
Net cash used in investing activities	(71,908		)	(76,608		)	4,700
Net cash (used in) provided by financing activities	$	(1,750	)	$	155,184		$	(156,934	)

Cash provided by operating activities increased by $133.5 million to $62.4 million in the year-to-date2014 compared to $71.1 million of cash used in operating activities in the year-to-date2013. The increase in cash provided by operating activities was primarily driven by an increase in cash provided by the sale of inventory in the ordinary course of business of $161.5 million partially offset by a decrease in cash used to pay for accounts payable of $26.1 million in the year-to-date2014 as compared to the year-to-date2013. During the year-to-date 2014, we improved our inventory turnover by reducing our existing in-store inventory, primarily in the areas of our stores not used for shopping, including the back room and the top shelf, and purchasing merchandise in volumes that achieved the lower planned in-store inventory levels, which also benefited our accounts payable position. Partially offsetting the improvement in our inventory was a decrease in net income of $21.1 million, which was primarily driven by the increase in losses from discontinued operations associated with the wind down of our Canadian operations.

Cash used in investing activities decreased by $4.7 million to $71.9 million in the year-to-date2014 compared to $76.6 million in the year-to-date2013.  The decrease was primarily driven by a $9.1 million reduction in capital expenditures to $74.6 million in the year-to-date2014 compared to $83.7 million in the year-to-date2013, primarily as we decided to reduce the number of new stores openings in 2014 as compared to 2013. Partially offsetting the decrease in capital expenditures was a decrease of $4.4 million in cash proceeds from the sale of property and equipment to $2.7 million in the year-to-date 2014 compared to $7.1 million in the year-to-date 2013. The decrease in proceeds from the sale of property and equipment was principally the result of our sale of a store property for $5.1 million during the third quarter of 2013 and the absence of any similar transactions in the year-to-date 2014.

Cash used in financing activities increased by $157.0 million to $1.8 million in the year-to-date2014 compared to $155.2 million of cash provided by financing activities in the year-to-date2013. The primary drivers of this increase were the $229.2 million in repurchases of common shares under the March 2014 Repurchase Program and the August 2014 Repurchase Program in the year-to-date2014 and our payment of a two quarterly cash dividends of $0.17 per common share in the second and third quarters of 2014 in an aggregate amount of $18.8 million. Partially offsetting the increase in cash used in financing activities was a $33.5 million increase in proceeds received from the exercise of stock options to $37.6 million in the year-to-date2014 compared to $4.1 million in the year-to-date2013. Lastly, net proceeds from borrowings under the 2011 Credit Agreement increased $53.6 million to $206.4 million in the year-to-date2014 compared to $152.8 million in the year-to-date2013, which we used to partially fund our share repurchases.

On a consolidated basis, we expect cash provided by operating activities less capital expenditures to be approximately $225 million for 2014, which is based on generating $250 million from our continuing operations, while paying approximately $25 million to complete the wind down of our Canadian operations. We increased our estimate from our initial expectations as we have improved our inventory turnover and we have generated greater current year tax benefits than we initially anticipated in connection with the wind down of our Canadian operations.

29

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The preparation of financial statements in conformity with GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period, as well as the related disclosure of contingent assets and liabilities at the date of the financial statements.  On an ongoing basis, management evaluates its estimates, judgments, and assumptions, and bases its estimates, judgments, and assumptions on historical experience, current trends, and various other factors that are believed to be reasonable under the circumstances.  Actual results may differ from these estimates.  See note 1 to our consolidated financial statements included in our 2013 Form 10-K for additional information about our accounting policies.

The estimates, judgments, and assumptions that have a higher degree of inherent uncertainty and require the most significant judgments are outlined in Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in our 2013 Form 10-K.  Had we used estimates, judgments, and assumptions different from any of those discussed in our 2013 Form 10-K, our financial condition, results of operations, and liquidity for the current period could have been materially different from those presented.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are subject to market risk from exposure to changes in interest rates on investments that we make from time to time and on borrowings under the 2011 Credit Agreement. An increase or decrease of 1% in interest rates would not have a material effect on our financial condition, results of operations, or liquidity.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as that term is defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) as of the end of the period covered by this report.  Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have each concluded that such disclosure controls and procedures were effective as of the end of the period covered by this report.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting (as that term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) that occurred during our most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Part II. Other Information

Item 1. Legal Proceedings

Item 103 of SEC Regulation S-K requires that we disclose actual or known contemplated legal proceedings to which a governmental authority and we are each a party and that arise under laws dealing with the discharge of materials into the environment or the protection of the environment, if the proceeding reasonably involves potential monetary sanctions of $100,000 or more. Accordingly, please refer to the discussion in note 8 to the accompanying consolidated financial statements regarding the subpoena we received from the District Attorney for the County of Alameda, State of California.

Aside from this matter, no response is required under Item 103 of Regulation S-K. For a discussion of certain litigated matters, also see note 8 to the accompanying consolidated financial statements.

Item 1A. Risk Factors

For information regarding the most significant risks to us, please see Part I, Item 1A. (Risk Factors) in our 2013 Form 10-K and Part II, Item 1A. (Risk Factors) in our quarterly report on Form 10-Q for the quarter ended August 2, 2014.

30

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

(In thousands, except price per share data)
Period	(a) Total Number of Shares Purchased (1)(2)	(b) Average Price Paid per Share		(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	(d) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
August 3, 2014 - August 30, 2014	—	$	—	—	$	125,000
August 31, 2014 - September 27, 2014	303	44.71		298	111,670
September 28, 2014 - November 1, 2014	2,304	44.05		2,304	10,179
Total	2,607	$	44.13	2,602	$	10,179

(1) The August 2014 Repurchase Program is comprised of an August 28, 2014 authorization by our Board of Directors for the repurchase of up to $125.0 million of our common shares. During the third quarter of 2014, we purchased approximately $114.8 million of our common shares under the August 2014 Repurchase Program. The August 2014 Repurchase Program has no scheduled termination date.

(2) In September 2014, in connection with the vesting of certain outstanding restricted shares, we acquired 4,690 of our common shares, which were withheld to satisfy minimum statutory income tax withholdings.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

None.

Item 5. Other Information

None.

31

Item 6. Exhibits

Exhibits marked with an asterisk (*) are filed herewith. The Exhibit marked with two asterisks (**) is furnished electronically with this Quarterly Report.

Exhibit No.	Document
31.1*	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101**	XBRL Instance Document.

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Dated: December 10, 2014

BIG LOTS, INC.

By: /s/ Timothy A. Johnson

Timothy A. Johnson

Executive Vice President and Chief Financial Officer

(Principal Financial Officer, Principal Accounting Officer and Duly Authorized Officer)

32

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, David J. Campisi, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Big Lots, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated: December 10, 2014

By: /s/ David J. Campisi

David J. Campisi

Chief Executive Officer and President

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Timothy A. Johnson, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Big Lots, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated: December 10, 2014

By: /s/ Timothy A. Johnson

Timothy A. Johnson

Executive Vice President and Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

This certification is provided pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and accompanies the quarterly report on Form 10-Q (the “Report”) for the quarter ended November 1, 2014, of Big Lots, Inc. (the “Company”). I, David J. Campisi, Chief Executive Officer and President of the Company, certify that:

(i) the Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: December 10, 2014

By: /s/ David J. Campisi

David J. Campisi

Chief Executive Officer and President

EX-32.2

EXHIBIT 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

This certification is provided pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and accompanies the quarterly report on Form 10-Q (the “Report”) for the quarter ended November 1, 2014, of Big Lots, Inc. (the “Company”). I, Timothy A. Johnson, Executive Vice President and Chief Financial Officer of the Company, certify that:

(i) the Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: December 10, 2014

By: /s/ Timothy A. Johnson

Timothy A. Johnson

Executive Vice President and Chief Financial Officer

XML

Employee Benefit Plans (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Nov. 01, 2014	Nov. 02, 2013	Nov. 01, 2014	Nov. 02, 2013
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
Discount Rate			5.00%	4.60%
Rate of Increase in Compensation Levels			3.00%	3.50%
Expected Long-term Rate of Return			6.00%	5.10%
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]
Service cost - benefits earned in the period	$ 489	$ 521	$ 1,463	$ 1,564
Interest cost on projected benefit obligation	799	761	2,413	2,281
Expected investment return on plan assets	(804)	(723)	(2,414)	(2,170)
Amortization of actuarial loss	380	423	1,123	1,269
Amortization of prior service cost	(9)	(9)	(26)	(26)
Amortization of transition obligation	0	3	0	9
Settlement loss	164	83	164	83
Net periodic pension cost	1,019	1,059	2,723	3,010
Pension Plans, Defined Benefit [Member]
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]
Defined Benefit Plan, Expected Contributions in Current Fiscal Year			$ 0

XML

Bank Credit Facility (Details) (2011 Credit Agreement [Member], USD $) In Millions, unless otherwise specified	1 Months Ended	9 Months Ended
	May 30, 2013	Nov. 01, 2014	Jul. 21, 2011
2011 Credit Agreement [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 700
Debt Instrument, Term	5 years
Deferred Finance Costs, Gross	0.9		3.0
Line of Credit Facility, Swing Loan Sublimit		30
Line of Credit Facility, Letter of Credit Sublimit		150
Line of Credit Facility, Amount Outstanding		283.4
Line of Credit Facility, Letters of Credit Outstanding		11.2
Line of Credit Facility, Remaining Borrowing Capacity		$ 405.4

XML

Share-Based Plans (Tables)

9 Months Ended

Nov. 01, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

The weighted-average fair value of stock options granted and assumptions used in the model to estimate the fair value of stock options granted during each of the respective periods were as follows:

	Third Quarter			Year-to-Date
	2013			2013
Weighted-average fair value of stock options granted	$	11.83		$	12.08
Risk-free interest rate	1.1		%	0.7		%
Expected life (years)	4.2			4.2
Expected volatility	39.9		%	42.1		%
Expected annual forfeiture rate	3.0		%	3.0		%

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

The following table summarizes stock option activity for the year-to-date 2014:

	Number of Options		Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (years)	Aggregate Intrinsic Value (000's)
Outstanding stock options at February 1, 2014	3,377,303		$	34.88
Exercised	(243,218	)	26.90
Forfeited	(139,850	)	38.63
Outstanding stock options at May 3, 2014	2,994,235		$	35.35	4.2	$	16,314
Exercised	(464,400	)	36.73
Forfeited	(50,700	)	40.35
Outstanding stock options at August 2, 2014	2,479,135		$	35.00	4.1	$	20,850
Exercised	(541,797	)	25.75
Forfeited	(72,500	)	39.15
Outstanding stock options at November 1, 2014	1,864,838		$	37.52	4.3	$	15,162
Vested or expected to vest at November 1, 2014	1,775,684		$	37.48	4.2	$	14,515
Exercisable at November 1, 2014	895,774		$	36.89	3.5	$	7,845

Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units, Activity [Table Text Block]

The following table summarizes the non-vested restricted stock awards and restricted stock units activity for the year-to-date 2014:

	Number of Shares		Weighted Average Grant-Date Fair Value Per Share
Outstanding non-vested restricted stock at February 1, 2014	664,101		$	38.34
Granted	281,056		37.12
Vested	(13,500	)	34.75
Forfeited	(99,200	)	40.19
Outstanding non-vested restricted stock at May 3, 2014	832,457		$	37.77
Granted	32,987		42.86
Vested	(23,776	)	33.65
Forfeited	(22,490	)	39.61
Outstanding non-vested restricted stock at August 2, 2014	819,178		$	38.04
Granted	2,012		43.87
Vested	(31,000	)	34.75
Forfeited	(28,990	)	38.84
Outstanding non-vested restricted stock at November 1, 2014	761,200		$	38.16

Schedule of Share Based Compensation, Additional Information [Table Text Block]

The following activity occurred under our share-based plans during the respective periods shown:

	Third Quarter				Year-to-Date
(In thousands)	2014		2013		2014		2013
Total intrinsic value of stock options exercised	$	11,050	$	625	$	16,980	$	2,414
Total fair value of restricted stock vested	1,325		—		2,736		1,434
Total fair value of performance shares vested	585		—		1,143		—

XML

Business Segment Data (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Nov. 01, 2014	Nov. 02, 2013	Nov. 01, 2014	Nov. 02, 2013
Segment Reporting Information [Line Items]
Net sales	$ 1,107,095	$ 1,104,918	$ 3,583,729	$ 3,552,843
Furniture & Home Decor [Member]
Segment Reporting Information [Line Items]
Net sales	270,242	246,093	843,952	796,178
Consumables [Member]
Segment Reporting Information [Line Items]
Net sales	230,191	226,420	693,102	671,603
Food [Member]
Segment Reporting Information [Line Items]
Net sales	202,352	185,959	584,762	530,216
Hard Home [Member]
Segment Reporting Information [Line Items]
Net sales	115,414	132,498	338,187	394,542
Soft Home [Member]
Segment Reporting Information [Line Items]
Net sales	110,292	105,286	328,398	305,468
Seasonal [Member]
Segment Reporting Information [Line Items]
Net sales	95,942	106,951	549,200	552,349
Electronics & Accessories [Member]
Segment Reporting Information [Line Items]
Net sales	$ 82,662	$ 101,711	$ 246,128	$ 302,487

XML

Shareholders' Equity Shareholders' Equiity - Dividends (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	9 Months Ended		3 Months Ended		9 Months Ended
	Nov. 01, 2014	Nov. 02, 2013	Nov. 01, 2014 Common Stock [Member]	Aug. 02, 2014 Common Stock [Member]	Nov. 01, 2014 Common Stock [Member]
Dividends, Common Stock [Abstract]
Common Stock, Dividends, Per Share, Cash Paid			$ 0.17	$ 0.17	$ 0.34
Amount declared (Dividends)	$ 19,303		$ 9,718	$ 9,585	$ 19,303
Amount paid (Dividends)	$ 18,823	$ 0	$ 9,457	$ 9,366	$ 18,823

XML

Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Nov. 01, 2014	Nov. 02, 2013
Operating activities:
Net income	$ 19,845	$ 40,942
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization expense	78,287	75,466
Deferred income taxes	3,563	(21,688)
Loss (gain) on disposition of property and equipment	2,033	(3,472)
Non-cash impairment charges	1,424	0
Non-cash share-based compensation expense	8,006	11,465
Excess tax benefit from share-based awards, operating activities	(3,582)	(248)
Pension expense, net of contributions	1,758	2,402
Change in assets and liabilities, excluding effects of foreign currency adjustments:
Inventories	(160,424)	(321,859)
Accounts payable	163,997	190,129
Current income taxes	(59,851)	(67,415)
Other current assets	(1,332)	(8,030)
Other current liabilities	10,124	16,098
Other assets	1,402	(2,080)
Other liabilities	(2,872)	17,192
Net cash provided by (used in) operating activities	62,378	(71,098)
Investing activities:
Capital expenditures	(74,559)	(83,706)
Cash proceeds from sale of property and equipment	2,733	7,084
Other	(82)	14
Net cash used in investing activities	(71,908)	(76,608)
Financing activities:
Net proceeds from borrowings under bank credit facility	206,400	152,800
Payment of capital lease obligations	(703)	(855)
Dividends paid	(18,823)	0
Proceeds from the exercise of stock options	37,552	4,100
Excess tax benefit from share-based awards, financing activities	3,582	248
Deferred bank credit facility fees paid	0	(895)
Payment for treasury shares acquired	(229,820)	(214)
Other	62	0
Net cash (used in) provided by financing activities	(1,750)	155,184
Impact of foreign currency on cash	5,139	(333)
(Decrease) increase in cash and cash equivalents	(6,141)	7,145
Cash and cash equivalents:
Beginning of period	68,629	60,581
End of period	$ 62,488	$ 67,726

XML

Components of Accumulated Other Comprehensive Income (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended			9 Months Ended
	Nov. 01, 2014	Feb. 01, 2014	Nov. 02, 2013	Nov. 01, 2014	Nov. 02, 2013
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax	$ 0	$ (3,622)	$ (3,398)	$ (5,022)	$ (1,433)
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax	0	(1,400)	(224)	(39)	(2,189)
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax	0	0	0	5,061	0
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax	0	(1,400)	(224)	5,022	(2,189)
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax	0	(5,022)	(3,622)	0	(3,622)
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax	(8,066)	(11,096)	(11,398)	(8,489)	(11,897)
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Reclassification Adjustments, Net of Tax	(368)	2,302	50	(368)	50
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, Net of Tax	304	305	252	727	751
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax	(64)	2,607	302	359	801
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax	(8,130)	(8,489)	(11,096)	(8,130)	(11,096)
Accumulated Other Comprehensive Income (Loss), Net of Tax	(8,066)	(14,718)	(14,796)	(13,511)	(13,330)
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	(368)	902	(174)	(407)	(2,139)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	304	305	252	5,788	751
Total other comprehensive income (loss)	(64)	1,207	78	5,381	(1,388)
Accumulated Other Comprehensive Income (Loss), Net of Tax	$ (8,130)	$ (13,511)	$ (14,718)	$ (8,130)	$ (14,718)

XML

Costs Associated with Wind Down Activities (Tables) (CANADA)

9 Months Ended

Nov. 01, 2014

CANADA

Restructuring Cost and Reserve [Line Items]

Restructuring and Related Costs [Table Text Block]

The following table summarizes the components of our wind down activities associated with our Canadian operations and the activities within the related liabilities during 2014:

(In thousands)	Severance			Contract Termination Costs			Total
Balance at February 1, 2014	$	2,420		$	1,276		$	3,696
Charges	2,206			22,984			25,190
Adjustments	—			553			553
Payments	(3,997		)	(15,577		)	(19,574		)
Foreign currency translation	(38		)	74			36
Period change	(1,829		)	8,034			6,205
Balance at May 3, 2014	$	591		$	9,310		$	9,901
Charges	—			28			28
Adjustments	—			(335		)	(335		)
Payments	(591		)	(7,942		)	(8,533		)
Foreign currency translation	—			95			95
Period change	(591		)	(8,154		)	(8,745		)
Balance at August 2, 2014	$	—		$	1,156		$	1,156
Charges	—			114			114
Adjustments	—			—			—
Payments	—			(1,012		)	(1,012		)
Foreign currency translation	—			(8		)	(8		)
Period change	—			(906		)	(906		)
Balance at November 1, 2014	$	—		$	250		$	250

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Components of Accumulated Other Comprehensive Income (Tables)

3 Months Ended

9 Months Ended

Nov. 01, 2014

Nov. 02, 2013

Nov. 01, 2014

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME

The following table summarizes the components of accumulated other comprehensive loss, net of tax, during the third quarter of 2014:

(In thousands)	Foreign currency translation		Pension Plan			Total accumulated other comprehensive loss
Balance at August 2, 2014	$	—	$	(8,066	)	$	(8,066	)
Other comprehensive income before reclassifications	—		(368		)	(368		)
Amounts reclassified from accumulated other comprehensive loss	—		304			304
Net period change	—		(64		)	(64		)
Balance at November 1, 2014	$	—	$	(8,130	)	$	(8,130	)

The following table summarizes the components of accumulated other comprehensive loss, net of tax, during the third quarter of 2013:

(In thousands)	Foreign currency translation			Pension Plan			Total accumulated other comprehensive loss
Balance at August 3, 2013	$	(3,398	)	$	(11,398	)	$	(14,796	)
Other comprehensive income before reclassifications	(224		)	50			(174		)
Amounts reclassified from accumulated other comprehensive loss	—			252			252
Net period change	(224		)	302			78
Balance at November 2, 2013	$	(3,622	)	$	(11,096	)	$	(14,718	)

The following table summarizes the components of accumulated other comprehensive loss, net of tax, during 2013 and 2014:

(In thousands)	Foreign currency translation			Pension Plan			Total accumulated other comprehensive loss
Balance at February 2, 2013	$	(1,433	)	$	(11,897	)	$	(13,330	)
Other comprehensive income before reclassifications	(2,189		)	50			(2,139		)
Amounts reclassified from accumulated other comprehensive loss	—			751			751
Net period change	(2,189		)	801			(1,388		)
Balance at November 2, 2013	(3,622		)	(11,096		)	(14,718		)
Other comprehensive income before reclassifications	(1,400		)	2,302			902
Amounts reclassified from accumulated other comprehensive loss	—			305			305
Net period change	(1,400		)	2,607			1,207
Balance at February 1, 2014	(5,022		)	(8,489		)	(13,511		)
Other comprehensive income before reclassifications	(39		)	(368		)	(407		)
Amounts reclassified from accumulated other comprehensive loss	5,061			727			5,788
Net period change	5,022			359			5,381
Balance at November 1, 2014	$	—		$	(8,130	)	$	(8,130	)

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Costs Associated with Wind Down Activities (Details) (USD $)		3 Months Ended			6 Months Ended	3 Months Ended
	Nov. 01, 2014 Wholesale [Member]	Nov. 01, 2014 CANADA	Aug. 02, 2014 CANADA	May 03, 2014 CANADA	Aug. 02, 2014 Employee Severance [Member] Wholesale [Member]	Nov. 01, 2014 Employee Severance [Member] CANADA	Aug. 02, 2014 Employee Severance [Member] CANADA	May 03, 2014 Employee Severance [Member] CANADA	Feb. 01, 2014 Employee Severance [Member] CANADA	Nov. 01, 2014 Contract Termination [Member] CANADA	Aug. 02, 2014 Contract Termination [Member] CANADA	May 03, 2014 Contract Termination [Member] CANADA	Feb. 01, 2014 Contract Termination [Member] CANADA
Restructuring Reserve [Roll Forward]
Restructuring Reserve		$ 1,156,000	$ 9,901,000	$ 3,696,000	$ 500,000	$ 0	$ 591,000	$ 2,420,000		$ 1,156,000	$ 9,310,000	$ 1,276,000
Charges		114,000	28,000	25,190,000		0	0	2,206,000		114,000	28,000	22,984,000
Adjustments		0	(335,000)	553,000		0	0	0		0	(335,000)	553,000
Payments		(1,012,000)	(8,533,000)	(19,574,000)	500,000	0	(591,000)	(3,997,000)		(1,012,000)	(7,942,000)	(15,577,000)
Foreign currency translation		(8,000)	95,000	36,000		0	0	(38,000)		(8,000)	95,000	74,000
Period change		(906,000)	(8,745,000)	6,205,000		0	(591,000)	(1,829,000)		(906,000)	(8,154,000)	8,034,000
Restructuring Reserve		250,000	1,156,000	9,901,000		0	0	591,000	2,420,000	250,000	1,156,000	9,310,000	1,276,000
Restructuring and Related Cost, Expected Cost Remaining	0
Severance Costs								2,200,000	2,700,000
Contract Termination Costs												23,000,000	1,300,000
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax				$ 5,100,000

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Discontinued Operations (Tables)

9 Months Ended

Nov. 01, 2014

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block]

Our discontinued operations for the third quarter and year-to-date of 2014 and 2013 were comprised of the following:

	Third Quarter						Year-to-Date
(In thousands	2014			2013			2014			2013
Canadian operations	$	(475	)	$	(4,977	)	$	(35,629	)	$	(13,269	)
Wholesale business	(58		)	(4,296		)	(216		)	(4,697		)
KB Toys matters	—			—			9			—
Other	—			—			—			1
Total loss from discontinued operations, pretax	$	(533	)	$	(9,273	)	$	(35,836	)	$	(17,965	)

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Basis of Presentation and Summary of Significant Accounting Policies (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended		12 Months Ended
	Nov. 01, 2014	Nov. 02, 2013	Nov. 01, 2014	Nov. 02, 2013	Feb. 01, 2014
Component of Operating Other Cost and Expense [Abstract]
Number of Stores	1,496		1,496
Operating Cycle			52 or 53 weeks
Fiscal Period			P52W		P52W
Current Quarter Period	P13W	P13W
Current Quarter Year To Date Period			P39W	P39W
Distribution and Outbound Transportation Costs	$ 40.9	$ 41.2	$ 119.0	$ 117.1
Advertising Expense	16.9	18.2	57.7	61.2
Foreign Currency Transaction Gain (Loss), before Tax	(0.1)	(0.1)	(4.8)	(0.4)
CANADA
Component of Operating Other Cost and Expense [Abstract]
Foreign Currency Transaction Gain (Loss), before Tax			$ (5.1)

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Consolidated Statements of Shareholders' Equity (Unaudited) (USD $) In Thousands, except Share data, unless otherwise specified	Total	Common Stock [Member]	Treasury Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Loss [Member]
Balance at Feb. 02, 2013	$ 758,142	$ 1,175	$ (1,677,610)	$ 551,845	$ 1,896,062	$ (13,330)
Treasury stock (in shares) at Feb. 02, 2013			60,226,000
Balance (in shares) at Feb. 02, 2013		57,269,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income	39,554	0	0	0	40,942	(1,388)
Purchases of common shares	(214)	0	(214)	0	0	0
Purchases of common shares, (in shares)		(6,000)	6,000
Exercise of stock options	4,100	0	5,114	(1,014)	0	0
Exercise of stock options (in shares)		184,000	(184,000)
Restricted shares vested	0	0	1,109	(1,109)	0	0
Restricted shares vested (in shares)		40,000	(40,000)
Tax benefit (charge) from share-based awards	248	0	0	248	0	0
Share activity related to deferred compensation plan	0	0	0	0	0	0
Share activity related to deferred compensation plan (in shares)		0	0
Share-based employee compensation expense	11,465	0	0	11,465	0	0
Balance at Nov. 02, 2013	813,295	1,175	(1,671,601)	561,435	1,937,004	(14,718)
Treasury stock (in shares) at Nov. 02, 2013			60,008,000
Balance (in shares) at Nov. 02, 2013		57,487,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income	85,560	0	0	0	84,353	1,207
Purchases of common shares	0	0	0	0	0	0
Purchases of common shares, (in shares)		0	0
Exercise of stock options	784	0	835	(51)	0	0
Exercise of stock options (in shares)		30,000	(30,000)
Restricted shares vested	0	0	696	(696)	0	0
Restricted shares vested (in shares)		25,000	(25,000)
Tax benefit (charge) from share-based awards	(125)	0	0	(125)	0	0
Share activity related to deferred compensation plan	195	0	29	166	0	0
Share activity related to deferred compensation plan (in shares)		6,000	(6,000)
Share-based employee compensation expense	1,718	0	0	1,718	0	0
Balance at Feb. 01, 2014	901,427	1,175	(1,670,041)	562,447	2,021,357	(13,511)
Treasury stock (in shares) at Feb. 01, 2014	59,947,000		59,947,000
Balance (in shares) at Feb. 01, 2014	57,548,000	57,548,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income	25,226	0	0	0	19,845	5,381
Dividends declared	(19,303)	0	0	0	(19,303)	0
Purchases of common shares	(240,462)	0	(240,462)	0	0	0
Purchases of common shares, (in shares)		(5,896,000)	5,896,000
Exercise of stock options	37,552	0	35,378	2,174	0	0
Exercise of stock options (in shares)		1,249,000	(1,249,000)
Restricted shares vested	0	0	1,940	(1,940)	0	0
Restricted shares vested (in shares)		68,000	(68,000)
Performance shares vested	0	0	716	(716)	0	0
Performance shares vested (in shares)		25,000	(25,000)
Tax benefit (charge) from share-based awards	1,076	0	0	1,076	0	0
Share activity related to deferred compensation plan	62	0	38	24	0	0
Share activity related to deferred compensation plan (in shares)		2,000	(2,000)
Share-based employee compensation expense	8,006	0	0	8,006	0	0
Balance at Nov. 01, 2014	$ 713,584	$ 1,175	$ (1,872,431)	$ 571,071	$ 2,021,899	$ (8,130)
Treasury stock (in shares) at Nov. 01, 2014	64,499,000		64,499,000
Balance (in shares) at Nov. 01, 2014	52,996,000	52,996,000

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Basis of Presentation and Summary of Significant Accounting Policies - Supplemental Cash Flow Disclosures (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Nov. 01, 2014	Nov. 02, 2013
Supplemental disclosure of cash flow information:
Cash paid for interest, including capital leases	$ 825	$ 1,858
Cash paid for income taxes, excluding impact of refunds	69,573	122,012
Gross proceeds from borrowings under the bank credit facility	1,131,900	970,000
Gross repayments of borrowings under the bank credit facility	925,500	817,200
Non-cash activity:
Assets acquired under capital leases	11,317	0
Accrued property and equipment	11,557	9,018
Share repurchases payable	$ 10,642	$ 0

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Income Taxes (Details) (USD $) In Millions, unless otherwise specified	Nov. 01, 2014
Income Tax Contingency [Line Items]
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit	$ 4.0

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Consolidated Statements of Operations (Unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Nov. 01, 2014	Nov. 02, 2013	Nov. 01, 2014	Nov. 02, 2013
Income Statement [Abstract]
Net sales	$ 1,107,095	$ 1,104,918	$ 3,583,729	$ 3,552,843
Cost of sales (exclusive of depreciation expense shown separately below)	676,153	673,490	2,189,704	2,155,105
Gross margin	430,942	431,428	1,394,025	1,397,738
Selling and administrative expenses	404,732	405,279	1,234,420	1,219,269
Depreciation expense	30,267	29,014	88,535	83,393
Operating (loss) profit	(4,057)	(2,865)	71,070	95,076
Interest expense	(756)	(1,034)	(1,616)	(2,490)
Other income (expense)	0	0	0	(11)
(Loss) income from continuing operations before income taxes	(4,813)	(3,899)	69,454	92,575
Income tax (benefit) expense	(1,698)	(1,951)	26,776	35,514
(Loss) income from continuing operations	(3,115)	(1,948)	42,678	57,061
Loss from discontinued operations, net of tax benefit of $207, $1,704, $13,003, and $1,846, respectively	(326)	(7,569)	(22,833)	(16,119)
Net (loss) income	$ (3,441)	$ (9,517)	$ 19,845	$ 40,942
Earnings per common share - basic:
Continuing operations	$ (0.06)	$ (0.03)	$ 0.77	$ 0.99
Discontinued operations	$ (0.01)	$ (0.13)	$ (0.41)	$ (0.28)
Earnings per common share - basic (in dollars per share)	$ (0.06)	$ (0.17)	$ 0.36	$ 0.71
Earnings per common share - diluted:
Continuing operations	$ (0.06)	$ (0.03)	$ 0.76	$ 0.98
Discontinued operations	$ (0.01)	$ (0.13)	$ (0.41)	$ (0.28)
Earnings per common share - diluted (in dollars per share)	$ (0.06)	$ (0.17)	$ 0.35	$ 0.71
Weighted-average common shares outstanding:
Basic	54,850	57,461	55,617	57,383
Dilutive effect of share-based awards	0	0	603	550
Diluted	54,850	57,461	56,220	57,933
Cash dividends declared per common share	$ 0.17	$ 0.00	$ 0.34	$ 0.00

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Discontinued Operations (Details) (USD $)	3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended			3 Months Ended		9 Months Ended
	Nov. 01, 2014	Nov. 02, 2013	Nov. 01, 2014	Nov. 02, 2013	Nov. 01, 2014 CANADA	Nov. 02, 2013 CANADA	Nov. 01, 2014 CANADA	Nov. 02, 2013 CANADA	Nov. 01, 2014 Wholesale [Member]	Nov. 02, 2013 Wholesale [Member]	Nov. 01, 2014 Wholesale [Member]	Nov. 02, 2013 Wholesale [Member]	Nov. 01, 2014 KB Toys [Member]	Nov. 02, 2013 KB Toys [Member]	Nov. 01, 2014 KB Toys [Member]	Nov. 02, 2013 KB Toys [Member]	Feb. 01, 2014 KB-II Bankruptcy [Member]	Nov. 01, 2014 Closed Stores [Member]	Nov. 02, 2013 Closed Stores [Member]	Nov. 01, 2014 Closed Stores [Member]	Nov. 02, 2013 Closed Stores [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total loss from discontinued operations, preax	$ (533,000)	$ (9,273,000)	$ (35,836,000)	$ (17,965,000)	$ (475,000)	$ (4,977,000)	$ (35,629,000)	$ (13,269,000)	$ (58,000)	$ (4,296,000)	$ (216,000)	$ (4,697,000)	$ 0	$ 0	$ 9,000	$ 0		$ 0	$ 0	$ 0	$ 1,000
Discontinued operations, tax expense (benefit)	(207,000)	(1,704,000)	(13,003,000)	(1,846,000)	(200,000)		(12,900,000)
Disposal Group, Including Discontinued Operation, Accrued Liabilities																	$ 0

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Consolidated Balance Sheets (Unaudited) (USD $) In Thousands, unless otherwise specified	Nov. 01, 2014	Feb. 01, 2014
Current assets:
Cash and cash equivalents	$ 62,488	$ 68,629
Inventories	1,075,429	914,965
Deferred income taxes	48,553	59,781
Other current assets	126,252	77,686
Total current assets	1,312,722	1,121,061
Property and equipment - net	566,889	569,682
Deferred income taxes	12,512	5,106
Other assets	41,788	43,750
Total assets	1,933,911	1,739,599
Current liabilities:
Accounts payable	529,793	365,772
Property, payroll, and other taxes	81,831	73,334
Accrued operating expenses	72,678	57,167
Insurance reserves	38,325	37,607
Accrued salaries and wages	32,829	29,175
Income taxes payable	868	14,392
Total current liabilities	756,324	577,447
Long-term obligations	283,400	77,000
Deferred rent	68,752	76,364
Insurance reserves	57,091	55,755
Unrecognized tax benefits	17,498	17,975
Other liabilities	37,262	33,631
Shareholders' equity:
Preferred shares - authorized 2,000 shares; $0.01 par value; none issued	0	0
Common shares - authorized 298,000 shares; $0.01 par value; issued 117,495 shares; outstanding 52,996 shares and 57,548 shares, respectively	1,175	1,175
Treasury shares - 64,499 shares and 59,947 shares, respectively, at cost	(1,872,431)	(1,670,041)
Additional paid-in capital	571,071	562,447
Retained earnings	2,021,899	2,021,357
Accumulated other comprehensive loss	(8,130)	(13,511)
Total shareholders' equity	713,584	901,427
Total liabilities and shareholders' equity	$ 1,933,911	$ 1,739,599

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Shareholders' Equity - Earnings Per Share (Details)	3 Months Ended		9 Months Ended
	Nov. 01, 2014	Nov. 02, 2013	Nov. 01, 2014	Nov. 02, 2013
Earnings Per Share [Abstract]
Weighted Average Number Diluted Shares Outstanding Adjustment	0	0	0	0
Employee Stock Option [Member]
Earnings Per Share [Abstract]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	600,000	2,400,000	1,700,000	2,800,000
Restricted Stock [Member]
Earnings Per Share [Abstract]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0	0	0	0

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Basis of Presentation and Summary of Significant Accounting Policies (Policies)

9 Months Ended

Nov. 01, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Fiscal Period, Policy [Policy Text Block]

Fiscal Periods

Our fiscal year ends on the Saturday nearest to January 31, which results in fiscal years consisting of 52 or 53 weeks.  Unless otherwise stated, references to years in this report relate to fiscal years rather than calendar years.  Fiscal year 2014 (“2014”) is comprised of the 52 weeks that began on February 2, 2014 and will end on January 31, 2015.  Fiscal year 2013 (“2013”) was comprised of the 52 weeks that began on February 3, 2013 and ended on February 1, 2014.  The fiscal quarters ended November 1, 2014 (“third quarter of 2014”) and November 2, 2013 (“third quarter of 2013”) were both comprised of 13 weeks.  The year-to-date periods ended November 1, 2014 (“year-to-date 2014”) and November 2, 2013 (“year-to-date 2013”) were both comprised of 39 weeks. 

Selling, General and Administrative Expenses, Policy [Policy Text Block]

Selling and Administrative Expenses

Selling and administrative expenses include store expenses (such as payroll and occupancy costs) and costs related to warehousing, distribution, outbound transportation to our stores, advertising, purchasing, insurance, non-income taxes, and overhead.  Our selling and administrative expense rates may not be comparable to those of other retailers that include distribution and outbound transportation costs in cost of sales.  Distribution and outbound transportation costs included in selling and administrative expenses were $40.9 million and $41.2 million for the third quarter of 2014 and the third quarter of 2013, respectively, and $119.0 million and $117.1 million for the year-to-date 2014 and the year-to-date 2013, respectively.

Advertising Costs, Policy [Policy Text Block]

Advertising Expense

Advertising costs, which are expensed as incurred, consist primarily of television and print advertising, internet marketing and advertising, and in-store presentations.  Advertising expenses are included in selling and administrative expenses.  Advertising expenses were $16.9 million and $18.2 million for the third quarter of 2014 and the third quarter of 2013, respectively, and $57.7 million and $61.2 million for the year-to-date 2014 and the year-to-date 2013, respectively.

Foreign Currency Transactions and Translations Policy [Policy Text Block]

Foreign Currency Translation

The functional currency of our former international subsidiary was the local currency of the country in which the subsidiary was located. We had one foreign subsidiary domiciled in Canada. 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. 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 in 2013. 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 $0.1 million, $0.1 million, $4.8 million, and $0.4 million for the third quarter of 2014, the third quarter of 2013, the year-to-date 2014, and the year-to-date 2013, respectively. Included in the foreign currency loss in the year-to-date 2014 is a $5.1 million loss related to the realization of the cumulative translation adjustment on our investment in our Canadian operations.

Reclassification, Policy [Policy Text Block]

Reclassifications

Wholesale Business

During the fourth quarter of 2013, we executed our wind down plan and ceased the operations of our wholesale business. Therefore, we determined that the results of our wholesale business should be reported as discontinued operations. As such, we have reclassified our results for all periods presented. Please see the Wholesale Business section of note 11 and note 12 to the consolidated financial statements for further discussion of the wind down of our wholesale business and the costs we incurred in connection with the wind down during the year-to-date 2014.

Canadian Operations

During the first quarter of 2014, we executed the remainder of our wind down plan and ceased the operations of our former Canadian segment. Therefore, we determined that the results of our former Canadian segment 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 11 and note 12 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 the year-to-date 2014.

Merchandise Categories

In the fourth quarter of 2013, we realigned select merchandise categories to be consistent with the realignment of our merchandising team and changes to our management reporting. We now use the following merchandise categories, which match our internal management and reporting of merchandise net sales: Food, Consumables, Soft Home, Hard Home, Furniture & Home Décor, Seasonal, and Electronics & Accessories. The Food category includes our beverage & grocery, candy & snacks, and specialty foods departments. The Consumables category includes our health and beauty, plastics, paper, chemical, and pet departments. The Soft Home category includes the fashion bedding, utility bedding, bath, window, decorative textile, and flooring departments. The Hard Home category includes our small appliances, table top, food preparation, stationery, greeting card, tools, paint, and home maintenance departments. The Furniture & Home Décor category includes our upholstery, mattress, ready-to-assemble, case goods, home décor, and frames departments. The Seasonal category includes our lawn & garden, summer, Christmas, toys, books, sporting goods, and other holiday departments. The Electronics & Accessories category includes the electronics, jewelry, apparel, hosiery, and infant accessories departments. In order to provide comparative information, we have reclassified our net sales by merchandise category into the new alignment for all periods presented in note 9 to the consolidated financial statements.

We periodically 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.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

There are currently no new accounting pronouncements with a future effective date that are of significance, or potential significance, to us.

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Shareholders' Equity - Share Repurchase Programs (Details) (USD $) Share data in Thousands, unless otherwise specified	3 Months Ended	9 Months Ended					3 Months Ended	9 Months Ended
	Feb. 01, 2014	Nov. 01, 2014	Nov. 02, 2013	Nov. 01, 2014 2014 Repurchase Programs [Member]	Nov. 01, 2014 March 2014 Repurchase Program [Member]	Mar. 31, 2014 March 2014 Repurchase Program [Member]	Nov. 01, 2014 August 2014 Repurchase Program [Member]	Nov. 01, 2014 August 2014 Repurchase Program [Member]	Aug. 31, 2014 August 2014 Repurchase Program [Member]
Class of Stock [Line Items]
Stock Repurchase Program, Authorized Amount						$ 125,000,000			$ 125,000,000
Stock Repurchased During Period, Shares				5,900	3,300		2,600	2,600
Stock Repurchased During Period, Value	$ 0	$ 240,462,000	$ 214,000	$ 239,800,000	$ 125,000,000		$ 114,800,000	$ 114,800,000

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Shareholders' Equity (Tables)

9 Months Ended

Nov. 01, 2014

Equity [Abstract]

Dividends Declared [Table Text Block]

The Company declared and paid cash dividends per common share during the periods presented as follows:

	Dividends Per Share		Amount Declared		Amount Paid
2014:			(in thousands)		(in thousands)
Third quarter	$	0.17	$	9,718	$	9,457
Second quarter	0.17		9,585		9,366
Total	$	0.34	$	19,303	$	18,823

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Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) In Thousands, except Per Share data, unless otherwise specified	Nov. 01, 2014	Feb. 01, 2014
Shareholders' equity:
Preferred shares - authorized shares (in shares)	2,000	2,000
Preferred shares - par value (in dollars per share)	$ 0.01	$ 0.01
Preferred shares - shares issued (in shares)	0	0
Common shares - authorized shares (in shares)	298,000	298,000
Common shares - par value (in dollars per share)	$ 0.01	$ 0.01
Common shares - shares issued (in shares)	117,495	117,495
Common shares - outstanding shares (in shares)	52,996	57,548
Treasury shares - shares (in shares)	64,499	59,947

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Consolidated Statements of Operations (Unaudited) (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Nov. 01, 2014	Nov. 02, 2013	Nov. 01, 2014	Nov. 02, 2013
Income Statement [Abstract]
Discontinued operations, tax expense (benefit)	$ (207)	$ (1,704)	$ (13,003)	$ (1,846)

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Contingencies

9 Months Ended

Nov. 01, 2014

Commitments and Contingencies Disclosure [Abstract]

CONTINGENCIES

CONTINGENCIES

On May 21, May 22 and July 2, 2012, three shareholder derivative lawsuits were filed in the U.S. District Court for the Southern District of Ohio against us and certain of our current and former outside directors and executive officers (Jeffrey Berger, David Kollat, Brenda Lauderback, Philip Mallott, Russell Solt, Dennis Tishkoff, Robert Claxton, Joe Cooper, Steven Fishman, Charles Haubiel, Timothy Johnson, John Martin, Norman Rankin, Paul Schroeder, Robert Segal and Steven Smart). The lawsuits were consolidated, and, on August 13, 2012, plaintiffs filed a consolidated complaint, which generally alleges that the individual defendants traded in our common shares based on material, nonpublic information concerning our guidance for fiscal 2012 and the first quarter of fiscal 2012 and the director defendants failed to suspend our share repurchase program during such trading activity. The consolidated complaint asserts claims under Ohio law for breach of fiduciary duty, unjust enrichment, misappropriation of trade secrets and corporate waste and seeks declaratory relief and disgorgement to us of proceeds from any wrongful sales of our common shares, plus attorneys’ fees and expenses. The defendants have filed a motion to dismiss the consolidated complaint, and that motion is fully briefed and awaiting a decision.

We received a letter dated January 28, 2013, sent on behalf of a shareholder demanding that our Board of Directors investigate and take action in connection with the allegations made in the derivative and securities lawsuits described above. The shareholder indicated that he would commence a derivative lawsuit if our Board of Directors failed to take the demanded action. On March 6, 2013, our Board of Directors referred the shareholder’s letter to a committee of independent directors to investigate the matter. That committee, with the assistance of independent outside counsel, investigated the allegations in the shareholder’s demand letter and, on August 28, 2013, reported its findings to our Board of Directors along with its recommendation that the Board reject the shareholder’s demand. Our Board of Directors unanimously accepted the recommendation of the demand investigation committee and, on September 9, 2013, outside counsel for the committee sent a letter to counsel for the shareholder informing the shareholder of the Board’s determination. On October 18, 2013, the shareholder filed a derivative lawsuit in the U.S. District Court for the Southern District of Ohio against us and each of the current and former outside directors and executive officers named in the 2012 shareholder derivative lawsuit. The plaintiff’s complaint generally alleges that the individual defendants traded in our common shares based on material, nonpublic information concerning our guidance for fiscal 2012 and the first quarter of fiscal 2012 and the director defendants failed to suspend our share repurchase program during such trading activity. The complaint asserts claims under Ohio law for breach of fiduciary duty, unjust enrichment, abuse of control, gross mismanagement, corporate waste and misappropriation of trade secrets and seeks damages, injunctive relief and disgorgement to us of proceeds from any wrongful sales of our common shares, plus attorneys’ fees and expenses. The defendants have filed a motion to dismiss the complaint, and that motion is fully briefed and awaiting a decision.

On February 10, 2014, a shareholder derivative lawsuit was filed in the Franklin County Common Pleas Court in Columbus, Ohio, against us and certain of our current and former outside directors and executive officers (David Campisi, Steven Fishman, Joe Cooper, Charles Haubiel, Timothy Johnson, Robert Claxton, John Martin, Norman Rankin, Paul Schroeder, Robert Segal, Steven Smart, David Kollat, Jeffrey Berger, James Chambers, Peter Hayes, Brenda Lauderback, Philip Mallott, Russell Solt, James Tener and Dennis Tishkoff). The plaintiff’s complaint generally alleges that the individual defendants traded in our common shares based on material, nonpublic information concerning our guidance for fiscal 2012 and the first quarter of fiscal 2012 and the director defendants failed to suspend our share repurchase program during such trading activity. The complaint also alleges that we and various individual defendants made false and misleading statements regarding our Canadian operations prior to our announcement on December 5, 2013 that we were exiting the Canadian market. The complaint asserts claims under Ohio law for breach of fiduciary duty, unjust enrichment, waste of corporate assets and misappropriation of insider information and seeks damages, injunctive relief and disgorgement to us of proceeds from any wrongful sales of our common shares, plus attorneys’ fees and expenses. At the parties’ request, the court has stayed this lawsuit until after the judge in the federal lawsuits discussed in the preceding paragraphs has ruled on the motions to dismiss pending in those federal lawsuits.

On July 9, 2012, a putative securities class action lawsuit was filed in the U.S. District Court for the Southern District of Ohio on behalf of persons who acquired our common shares between February 2, 2012 and April 23, 2012. This lawsuit was filed against us, Lisa Bachmann, Mr. Cooper, Mr. Fishman and Mr. Haubiel. The complaint in the putative class action generally alleges that the defendants made statements concerning our financial performance that were false or misleading. The complaint asserts claims under sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 and seeks damages in an unspecified amount, plus attorneys’ fees and expenses. The lead plaintiff filed an amended complaint on April 4, 2013, which added Mr. Johnson as a defendant, removed Ms. Bachmann as a defendant, and extended the putative class period to August 23, 2012. The defendants have filed a motion to dismiss the putative class action complaint, and that motion is fully briefed and awaiting a decision.

We believe that the shareholder derivative and putative class action lawsuits are without merit, and we intend to defend ourselves vigorously against the allegations levied in these lawsuits. While a loss from these lawsuits is reasonably possible, at this time, we cannot reasonably estimate the amount of any loss that may result or whether the lawsuits will have a material impact on our financial statements.

On June 13, 2013, we received a voluntary document request from the Division of Enforcement of the SEC relating principally to our participation in investor and analyst meetings in the first fiscal quarter of 2012. We have produced documents and are cooperating with the SEC’s investigation, which is ongoing.

On October 1, 2013, we received a subpoena from the District Attorney for the County of Alameda, State of California, seeking information concerning our handling of hazardous materials and hazardous waste in the State of California. We have provided information and are cooperating with the authorities from multiple counties and cities in California in connection with this ongoing matter. While a loss related to this matter is reasonably possible, at this time, we cannot reasonably estimate the possible loss or range of loss that may arise from this matter or whether this matter will have a material impact on our financial statements.

We are involved in other legal actions and claims arising in the ordinary course of business. We currently believe that each such action and claim will be resolved without a material effect on our financial condition, results of operations, or liquidity. However, litigation involves an element of uncertainty. Future developments could cause these actions or claims to have a material effect on our financial condition, results of operations, and liquidity.

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Document And Entity Information	9 Months Ended
	Nov. 01, 2014	Dec. 05, 2014
Document and Entity Information [Abstract]
Entity Registrant Name	BIG LOTS INC
Entity Central Index Key	0000768835
Current Fiscal Year End Date	--01-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		53,452,301
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q3
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Nov. 01, 2014

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Business Segment Data

9 Months Ended

Nov. 01, 2014

Segment Reporting [Abstract]

BUSINESS SEGMENT DATA

BUSINESS SEGMENT DATA

We use the following seven merchandise categories, which match our internal management and reporting of merchandise net sales: Food, Consumables, Soft Home, Hard Home, Furniture & Home Décor, Seasonal, and Electronics & Accessories. The Food category includes our beverage & grocery, candy & snacks, and specialty foods departments. The Consumables category includes our health and beauty, plastics, paper, chemical, and pet departments. The Soft Home category includes the fashion bedding, utility bedding, bath, window, decorative textile, and flooring departments. The Hard Home category includes our small appliances, table top, food preparation, stationery, greeting card, tools, paint, and home maintenance departments. The Furniture & Home Décor category includes our upholstery, mattress, ready-to-assemble, case goods, home décor, and frames departments. The Seasonal category includes our lawn & garden, summer, Christmas, toys, books, sporting goods, and other holiday departments. The Electronics & Accessories category includes the electronics, jewelry, apparel, hosiery, and infant accessories departments.

The following table presents net sales data by merchandise category:

		Third Quarter				Year-to-Date
(In thousands)		2014		2013		2014		2013
	Furniture & Home Décor	$	270,242	$	246,093	$	843,952	$	796,178
	Consumables	230,191		226,420		693,102		671,603
	Food	202,352		185,959		584,762		530,216
	Hard Home	115,414		132,498		338,187		394,542
	Soft Home	110,292		105,286		328,398		305,468
	Seasonal	95,942		106,951		549,200		552,349
	Electronics & Accessories	82,662		101,711		246,128		302,487
Net sales		$	1,107,095	$	1,104,918	$	3,583,729	$	3,552,843

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Consolidated Statements of Comprehensive Income (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Nov. 01, 2014	Nov. 02, 2013	Nov. 01, 2014	Nov. 02, 2013
Net (loss) income	$ (3,441)	$ (9,517)	$ 19,845	$ 40,942
Other comprehensive (loss) income:
Foreign currency translation	0	(224)	5,022	(2,189)
Amortization of pension, net of tax expense of $155,$198, $457, and $535, respectively	208	252	631	751
Valuation adjustment of pension, net of tax benefit (expense) of $198, $(33), $198, and $(33), respectively	(272)	50	(272)	50
Total other comprehensive (loss) income	(64)	78	5,381	(1,388)
Comprehensive (loss) income	$ (3,505)	$ (9,439)	$ 25,226	$ 39,554

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Fair Value Measurements

9 Months Ended

Nov. 01, 2014

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

In connection with our nonqualified deferred compensation plan, we had mutual fund investments of $16.8 million and $21.2 million at November 1, 2014 and February 1, 2014, respectively, which were recorded in other assets. These investments were classified as trading securities and were recorded at their fair value. The fair values of mutual fund investments were Level 1 valuations under the fair value hierarchy because each fund’s quoted market value per share was available in an active market.

The fair values of our long-term obligations are estimated based on the quoted market prices for the same or similar issues and the current interest rates offered for similar instruments. These fair value measurements are classified as Level 2 within the fair value hierarchy. Given the variable rate features and relatively short maturity of the instruments underlying our long-term obligations, the carrying value of these instruments approximates the fair value.

The carrying value of accounts receivable, accounts payable, and accrued expenses approximates fair value because of the relatively short maturity of these items.

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Bank Credit Facility

9 Months Ended

Nov. 01, 2014

Debt Disclosure [Abstract]

BANK CREDIT FACILITY

BANK CREDIT FACILITY

On July 22, 2011, we entered into a $700 millionfive-year unsecured credit facility and, on May 30, 2013, we entered into an amendment of the credit facility that extended its expiration from July 22, 2016 to May 30, 2018 (“2011 Credit Agreement”). In connection with our entry into the 2011 Credit Agreement, we paid bank fees and other expenses in the aggregate amount of $3.0 million, which are being amortized over the term of the agreement.  In connection with the amendment of the 2011 Credit Agreement, we paid additional bank fees and other expenses in the aggregate amount of $0.9 million, which are being amortized over the term of the amended agreement.

Borrowings under the 2011 Credit Agreement are available for general corporate purposes and working capital.  The 2011 Credit Agreement includes a $30 million swing loan sublimit and a $150 million letter of credit sublimit.  The interest rates, pricing and fees under the 2011 Credit Agreement fluctuate based on our debt rating.  The 2011 Credit Agreement allows us to select our interest rate for each borrowing from multiple interest rate options.  The interest rate options are generally derived from the prime rate or LIBOR.  We may prepay revolving loans made under the 2011 Credit Agreement.  The 2011 Credit Agreement contains financial and other covenants, including, but not limited to, limitations on indebtedness, liens and investments, as well as the maintenance of two financial ratios – a leverage ratio and a fixed charge coverage ratio.  A violation of any of the covenants could result in a default under the 2011 Credit Agreement that would permit the lenders to restrict our ability to further access the 2011 Credit Agreement for loans and letters of credit and require the immediate repayment of any outstanding loans under the 2011 Credit Agreement.  At November 1, 2014, we had $283.4 million of borrowings outstanding under the 2011 Credit Agreement and $11.2 million was committed to outstanding letters of credit, leaving $405.4 million available under the 2011 Credit Agreement.  

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Basis of Presentation and Summary of Significant Account Policies (Tables)

9 Months Ended

Nov. 01, 2014

Other Significant Noncash Transactions [Line Items]

Schedule of Other Significant Noncash Transactions [Table Text Block]

The following table provides supplemental cash flow information for the year-to-date 2014 and the year-to-date 2013:

	Thirty-Nine Weeks Ended
(In thousands)	November 1, 2014		November 2, 2013
Supplemental disclosure of cash flow information:
Cash paid for interest, including capital leases	$	825	$	1,858
Cash paid for income taxes, excluding impact of refunds	69,573		122,012
Gross proceeds from borrowings under the bank credit facility	1,131,900		970,000
Gross repayments of borrowings under the bank credit facility	925,500		817,200
Non-cash activity:
Assets acquired under capital leases	11,317		—
Accrued property and equipment	11,557		9,018
Share repurchases payable	$	10,642	$	—

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Components of Accumulated Other Comprehensive Income

9 Months Ended

Nov. 01, 2014

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME

COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE LOSS

The following table summarizes the components of accumulated other comprehensive loss, net of tax, during 2013 and 2014:

(In thousands)	Foreign currency translation			Pension Plan			Total accumulated other comprehensive loss
Balance at February 2, 2013	$	(1,433	)	$	(11,897	)	$	(13,330	)
Other comprehensive income before reclassifications	(2,189		)	50			(2,139		)
Amounts reclassified from accumulated other comprehensive loss	—			751			751
Net period change	(2,189		)	801			(1,388		)
Balance at November 2, 2013	(3,622		)	(11,096		)	(14,718		)
Other comprehensive income before reclassifications	(1,400		)	2,302			902
Amounts reclassified from accumulated other comprehensive loss	—			305			305
Net period change	(1,400		)	2,607			1,207
Balance at February 1, 2014	(5,022		)	(8,489		)	(13,511		)
Other comprehensive income before reclassifications	(39		)	(368		)	(407		)
Amounts reclassified from accumulated other comprehensive loss	5,061			727			5,788
Net period change	5,022			359			5,381
Balance at November 1, 2014	$	—		$	(8,130	)	$	(8,130	)

The following table summarizes the components of accumulated other comprehensive loss, net of tax, during the third quarter of 2013:

(In thousands)	Foreign currency translation			Pension Plan			Total accumulated other comprehensive loss
Balance at August 3, 2013	$	(3,398	)	$	(11,398	)	$	(14,796	)
Other comprehensive income before reclassifications	(224		)	50			(174		)
Amounts reclassified from accumulated other comprehensive loss	—			252			252
Net period change	(224		)	302			78
Balance at November 2, 2013	$	(3,622	)	$	(11,096	)	$	(14,718	)

The following table summarizes the components of accumulated other comprehensive loss, net of tax, during the third quarter of 2014:

(In thousands)	Foreign currency translation		Pension Plan			Total accumulated other comprehensive loss
Balance at August 2, 2014	$	—	$	(8,066	)	$	(8,066	)
Other comprehensive income before reclassifications	—		(368		)	(368		)
Amounts reclassified from accumulated other comprehensive loss	—		304			304
Net period change	—		(64		)	(64		)
Balance at November 1, 2014	$	—	$	(8,130	)	$	(8,130	)

The amounts reclassified from accumulated other comprehensive income associated with our pension plans have been reclassified to selling and administrative expenses in our statements of operations. Please see note 6 to the consolidated financial statements for further information on our pension plans.

The amounts reclassified from accumulated other comprehensive income associated with foreign currency translation have been reclassified to income (loss) from discontinued operations in our statements of operations, as the amounts related to our Canadian operations. Please see note 12 to the consolidated financial statements for further information on our discontinued operations.

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Employee Benefit Plans

9 Months Ended

Nov. 01, 2014

Compensation and Retirement Disclosure [Abstract]

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS

We maintain a qualified defined benefit pension plan and a nonqualified supplemental defined benefit pension plan covering certain employees whose hire date occurred before April 1, 1994.

The weighted-average assumptions used to determine net periodic pension cost for our plans were as follows:

	2014		2013
Discount rate	5.0	%	4.6	%
Rate of increase in compensation levels	3.0	%	3.5	%
Expected long-term rate of return	6.0	%	5.1	%

The components of combined net periodic pension cost were as follows:

	Third Quarter						Year-to-Date
(In thousands)	2014			2013			2014			2013
Service cost - benefits earned in the period	$	489		$	521		$	1,463		$	1,564
Interest cost on projected benefit obligation	799			761			2,413			2,281
Expected investment return on plan assets	(804		)	(723		)	(2,414		)	(2,170		)
Amortization of actuarial loss	380			423			1,123			1,269
Amortization of prior service cost	(9		)	(9		)	(26		)	(26		)
Amortization of transition obligation	—			3			—			9
Settlement loss	164			83			164			83
Net periodic pension cost	$	1,019		$	1,059		$	2,723		$	3,010

We currently expect no required contributions to the qualified defined benefit pension plan during 2014.  We will contribute to the nonqualified supplemental defined benefit pension plan as benefits are paid to plan participants, if any, because the nonqualified plan is not a funded plan.

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Shareholders' Equity

9 Months Ended

Nov. 01, 2014

Equity [Abstract]

SHAREHOLDERS' EQUITY

SHAREHOLDERS’ EQUITY

Earnings per Share

There were no adjustments required to be made to the weighted-average common shares outstanding for purposes of computing basic and diluted earnings per share and there were no securities outstanding at November 1, 2014 or November 2, 2013 which were excluded from the computation of earnings per share other than antidilutive stock options, restricted stock awards, and restricted stock units.  For the third quarter of 2014 and the third quarter of 2013, 0.6 million and 2.4 million, respectively, of the stock options outstanding were antidilutive and excluded from the computation of diluted earnings per share.  For the year-to-date 2014 and the year-to-date 2013, 1.7 million and 2.8 million, respectively, of the stock options outstanding were antidilutive and excluded from the computation of diluted earnings per share. Antidilutive stock options generally consist of outstanding stock options where the exercise price per share is greater than the weighted-average market price per share for our common shares for each period.  Antidilutive stock options, restricted stock awards, and restricted stock units are excluded from the calculation because they decrease the number of diluted shares outstanding under the treasury stock method. The restricted stock awards and restricted stock units that were antidilutive, as determined under the treasury stock method, were immaterial for all periods presented.

Share Repurchase Programs

On March 5, 2014, our Board of Directors authorized a share repurchase program providing for the repurchase of $125 million of our common shares (“March 2014 Repurchase Program”). The March 2014 Repurchase Program was exhausted during the second quarter of 2014.

On August 28, 2014, our Board of Directors authorized a new share repurchase program providing for the repurchase of $125 million of our common shares (“August 2014 Repurchase Program”). Pursuant to the August 2014 Repurchase Program, we may repurchase shares in the open market and/or in privately negotiated transactions at our discretion, subject to market conditions and other factors. Common shares acquired through the August 2014 Repurchase Program will be available to meet obligations under our equity compensation plans and for general corporate purposes.

During the third quarter of 2014, we acquired approximately 2.6 million of our outstanding common shares for $114.8 million. During the year-to-date 2014, we have acquired approximately 5.9 million of our outstanding common shares for $239.8 million, which is comprised of 3.3 million common shares for $125.0 million under the March 2014 Repurchase Program and 2.6 million common shares for $114.8 million under the August 2014 Repurchase Program.

Dividends

In the second quarter of 2014, our Board of Directors commenced a cash dividend program under which we currently expect to pay quarterly dividends on our common shares in the future. The Company declared and paid cash dividends per common share during the periods presented as follows:

	Dividends Per Share		Amount Declared		Amount Paid
2014:			(in thousands)		(in thousands)
Third quarter	$	0.17	$	9,718	$	9,457
Second quarter	0.17		9,585		9,366
Total	$	0.34	$	19,303	$	18,823

The amount of dividends declared may vary from the amount of dividends paid in a period based on certain instruments with restrictions on payment, including restricted stock awards, restricted stock units, and performance share units. Future dividends are subject to declaration by our Board of Directors.

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Share-Based Plans

9 Months Ended

Nov. 01, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

SHARE-BASED PLANS

SHARE-BASED PLANS

We have issued nonqualified stock options, restricted stock awards, restricted stock units, and performance share units under our shareholder-approved equity compensation plans.  Our restricted stock awards and restricted stock units, as described below and/or in note 7 to the consolidated financial statements in our 2013 Form 10-K, are expensed and reported as nonvested shares. We recognized share-based compensation expense of $3.0 million and $3.7 million in the third quarter of 2014 and the third quarter of 2013, respectively, and $8.0 million and $11.5 million for the year-to-date 2014 and the year-to-date 2013, respectively.

The weighted-average fair value of stock options granted and assumptions used in the model to estimate the fair value of stock options granted during each of the respective periods were as follows:

	Third Quarter			Year-to-Date
	2013			2013
Weighted-average fair value of stock options granted	$	11.83		$	12.08
Risk-free interest rate	1.1		%	0.7		%
Expected life (years)	4.2			4.2
Expected volatility	39.9		%	42.1		%
Expected annual forfeiture rate	3.0		%	3.0		%

During the year-to-date 2014, we granted no stock options.

The following table summarizes stock option activity for the year-to-date 2014:

	Number of Options		Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (years)	Aggregate Intrinsic Value (000's)
Outstanding stock options at February 1, 2014	3,377,303		$	34.88
Exercised	(243,218	)	26.90
Forfeited	(139,850	)	38.63
Outstanding stock options at May 3, 2014	2,994,235		$	35.35	4.2	$	16,314
Exercised	(464,400	)	36.73
Forfeited	(50,700	)	40.35
Outstanding stock options at August 2, 2014	2,479,135		$	35.00	4.1	$	20,850
Exercised	(541,797	)	25.75
Forfeited	(72,500	)	39.15
Outstanding stock options at November 1, 2014	1,864,838		$	37.52	4.3	$	15,162
Vested or expected to vest at November 1, 2014	1,775,684		$	37.48	4.2	$	14,515
Exercisable at November 1, 2014	895,774		$	36.89	3.5	$	7,845

The stock options granted in prior years vest in equal amounts on the first four anniversaries of the grant date and have a contractual term of seven years.  The number of stock options expected to vest was based on our annual forfeiture rate assumption.

The following table summarizes the non-vested restricted stock awards and restricted stock units activity for the year-to-date 2014:

	Number of Shares		Weighted Average Grant-Date Fair Value Per Share
Outstanding non-vested restricted stock at February 1, 2014	664,101		$	38.34
Granted	281,056		37.12
Vested	(13,500	)	34.75
Forfeited	(99,200	)	40.19
Outstanding non-vested restricted stock at May 3, 2014	832,457		$	37.77
Granted	32,987		42.86
Vested	(23,776	)	33.65
Forfeited	(22,490	)	39.61
Outstanding non-vested restricted stock at August 2, 2014	819,178		$	38.04
Granted	2,012		43.87
Vested	(31,000	)	34.75
Forfeited	(28,990	)	38.84
Outstanding non-vested restricted stock at November 1, 2014	761,200		$	38.16

The non-vested restricted stock units granted in the year-to-date 2014 generally vest on a ratable basis over three years from the grant date of the award, if certain threshold financial performance objectives are achieved and the grantee remains employed by us through the vesting dates.

The non-vested restricted stock awards granted in prior years vest if certain financial performance objectives are achieved. If we meet a threshold financial performance objective and the grantee remains employed by us, the restricted stock will vest on the opening of our first trading window five years after the grant date of the award. If we meet a higher financial performance objective and the grantee remains employed by us, the restricted stock will vest on the first trading day after we file our Annual Report on Form 10-K with the SEC for the fiscal year in which the higher objective is met. As of February 1, 2014, we estimated a five-year period for vesting of all non-vested restricted stock awards granted in prior years, as we do not anticipate achieving the higher financial performance objective for any outstanding grants.

In 2013, in connection with his appointment as CEO and President, Mr. David J. Campisi was awarded 37,800 performance share units, which vest based on the achievement of share price performance goals, that had a weighted average grant-date fair value per share of $34.68. The performance share units have a contractual term of seven years. In the second quarter of 2014, Mr. Campisi’s first tranche of 12,600 performance share units vested. In the third quarter of 2014, Mr. Campisi’s second tranche of 12,600 performance share units vested. If the performance goals applicable to the remaining performance share units are not achieved prior to expiration, the awards will be forfeited. A total of 12,600 performance share units remain outstanding at November 1, 2014.

In the year-to-date 2014, we issued 434,124 performance share units, net of forfeitures, to certain members of management, which vest if certain financial performance objectives are achieved over a three-year performance period and the grantee remains employed by us during that period. The financial performance objectives for each fiscal year within the three-year performance period are approved by the Compensation Committee of our Board of Directors during the first quarter of the respective fiscal year. As a result of the process used to establish the financial performance objectives, we will only meet the requirements of establishing a grant date for the performance share units when we communicate the financial performance objectives for the third fiscal year of the award to the award recipients, which will then trigger the service inception date, the fair value of the awards, and the associated expense recognition period. Therefore, we have recognized no expense for these issued performance share units in the year-to-date 2014. If we meet the applicable threshold financial performance objectives over the three-year performance period and the grantee remains employed by us through the end of the performance period, the performance share units will vest on the first trading day after we file our Annual Report on Form 10-K three years after the initial issuance of the award.

In the second quarter of 2014, 23,776 common shares underlying the restricted stock awards granted in 2013 to the non-employee members of our Board of Directors vested on the trading day immediately preceding our 2014 Annual Meeting of Shareholders. These awards were part of the annual compensation granted in 2013 to the non-employee members of the Board of Directors. Additionally, in the second quarter of 2014, each non-employee elected to our Board of Directors at our 2014 Annual Meeting of Shareholders received an annual restricted stock award having a grant date fair value of approximately $110,000.  The 2014 restricted stock awards will vest on the earlier of (1) the trading day immediately preceding our 2015 Annual Meeting of Shareholders, or (2) the non-employee director’s death or disability.  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.

The following activity occurred under our share-based plans during the respective periods shown:

	Third Quarter				Year-to-Date
(In thousands)	2014		2013		2014		2013
Total intrinsic value of stock options exercised	$	11,050	$	625	$	16,980	$	2,414
Total fair value of restricted stock vested	1,325		—		2,736		1,434
Total fair value of performance shares vested	585		—		1,143		—

The total unearned compensation cost related to all share-based awards outstanding at November 1, 2014 was approximately $23.8 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 2.0 years from November 1, 2014.

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Income Taxes

9 Months Ended

Nov. 01, 2014

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

In conjunction with the wind down of our former Canadian segment, our Canadian subsidiary was dissolved during the second quarter of 2014 which resulted in a write-off of the net deferred tax assets (including a net operating loss carryforward) for the Canadian jurisdiction and a release of the corresponding valuation allowance.

We have estimated the reasonably possible expected net change in unrecognized tax benefits through October 31, 2015, based on (1) expected cash and noncash settlements or payments of uncertain tax positions, and (2) lapses of the applicable statutes of limitations for unrecognized tax benefits.  The estimated net decrease in unrecognized tax benefits for the next 12 months is approximately $4.0 million.  Actual results may differ materially from this estimate.

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Fair Value Measurements (Details) (Fair Value, Measurements, Recurring [Member], Level 1 [Member], USD $) In Millions, unless otherwise specified	Nov. 01, 2014	Feb. 01, 2014
Fair Value, Measurements, Recurring [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities, Fair Value Disclosure	$ 16.8	$ 21.2

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Discontinued Operations

9 Months Ended

Nov. 01, 2014

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

Our discontinued operations for the third quarter and year-to-date of 2014 and 2013 were comprised of the following:

	Third Quarter						Year-to-Date
(In thousands	2014			2013			2014			2013
Canadian operations	$	(475	)	$	(4,977	)	$	(35,629	)	$	(13,269	)
Wholesale business	(58		)	(4,296		)	(216		)	(4,697		)
KB Toys matters	—			—			9			—
Other	—			—			—			1
Total loss from discontinued operations, pretax	$	(533	)	$	(9,273	)	$	(35,836	)	$	(17,965	)

Canadian Operations

During the fourth quarter of 2013, we announced our intention to wind down our Canadian operations. We began the wind down activities during the fourth quarter of 2013, which included the closing of our Canadian distribution centers, and completed the wind down activities during the first quarter of 2014, which included the closing of our Canadian stores and corporate offices. Therefore, we determined the results of our Canadian operations should be reported as discontinued operations for all periods presented. The results of our Canadian operations have historically consisted of sales of product to retail customers, the costs associated with those products, and selling and administrative expenses, including personnel, purchasing, warehousing, distribution, occupancy and overhead costs. During the year-to-date 2014, the results of our Canadian operations also included significant contract termination costs associated with the wind down of the operations. Please see the Canadian Operations section of note 11 to the consolidated financial statements for additional details regarding the costs we incurred in connection with the wind down of our Canadian operations during the year-to-date 2014.

In addition to the costs associated with our Canadian operations, we reclassified to discontinued operations the direct expenses incurred by our U.S. operations to facilitate the wind down. These costs primarily consist of professional fees. We also reclassified the income tax benefit that we expect our U.S. operations to generate as a result of the wind down of our Canadian operations, based on our ability to recover a worthless stock deduction in the foreseeable future. During the third quarter of 2014 and the year-to-date 2014, the amount of this income tax benefit that we recognized was approximately $0.2 million and $12.9 million, respectively.

Wholesale Business

During the third quarter of 2013, we announced our intention to wind down the operations of our wholesale business, within our U.S. segment. During the fourth quarter of 2013, we executed our wind down plan and ceased the operations of our wholesale business. Therefore, we determined that the results of our wholesale business should be reported as discontinued operations for all periods presented. The results of operations of our wholesale business primarily consisted of sales of product to wholesale customers, the costs associated with those products, and selling and administrative expenses, including personnel, purchasing, warehousing, distribution, occupancy and overhead costs. Please see the Wholesale Business section of note 11 to the consolidated financial statements for additional details regarding the costs we incurred in connection with the wind down of our wholesale business during the year-to-date 2014.

KB Toys Matters

We acquired the KB Toys business from Melville Corporation (now known as CVS New York, Inc., and, together with its subsidiaries, “CVS”) in May 1996. As part of that acquisition, we provided, among other things, an indemnity to CVS with respect to any losses resulting from KB Toys' failure to pay all monies due and owing under any KB Toys lease or mortgage obligation. While we controlled the KB Toys business, we provided guarantees with respect to a limited number of additional KB Toys store leases. We sold the KB Toys business to KB Acquisition Corp. (“KBAC”), an affiliate of Bain Capital, pursuant to a Stock Purchase Agreement. KBAC similarly agreed to indemnify us with respect to all lease and mortgage obligations. On January 14, 2004, KBAC and certain affiliated entities (collectively referred to as “KB-I”) filed for bankruptcy protection pursuant to Chapter 11 of title 11 of the United States Code. On August 30, 2005, in connection with the acquisition by an affiliate of Prentice Capital Management of majority ownership of KB-I, KB-I emerged from its 2004 bankruptcy (the KB Toys business that emerged from bankruptcy is hereinafter referred to as “KB-II”). On December 11, 2008, KB-II filed for bankruptcy protection pursuant to Chapter 11 of title 11 of the United States Code.

Associated with the KB-I and KB-II bankruptcies, we believed we had exposure to certain lease obligations for which we had recorded estimated liabilities in prior years. During the fourth quarter of 2013, we received a final distribution from the KB-I bankruptcy estate. Additionally, in the fourth quarter of 2013, we reduced the amount of our estimated obligation associated with the KB-II bankruptcy to zero in our consolidated balance sheet. We based this reversal on the following factors: (1) we had not received any new demand letters from landlords during the past two years; (2) all prior demands against us by landlords had been settled or paid or the landlords had stopped pursuing their demands; (3) the KB-II bankruptcy occurred more than five years prior to the end of 2008 and most of the lease rejections occurred more than two years prior to the end of 2013; and (4) we believed that the likelihood of new claims against us was remote and, if incurred, the amount would be immaterial.

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Employee Benefit Plans (Tables)

9 Months Ended

Nov. 01, 2014

Compensation and Retirement Disclosure [Abstract]

Schedule of Assumptions Used [Table Text Block]

The weighted-average assumptions used to determine net periodic pension cost for our plans were as follows:

	2014		2013
Discount rate	5.0	%	4.6	%
Rate of increase in compensation levels	3.0	%	3.5	%
Expected long-term rate of return	6.0	%	5.1	%

Schedule of Net Benefit Costs [Table Text Block]

The components of combined net periodic pension cost were as follows:

	Third Quarter						Year-to-Date
(In thousands)	2014			2013			2014			2013
Service cost - benefits earned in the period	$	489		$	521		$	1,463		$	1,564
Interest cost on projected benefit obligation	799			761			2,413			2,281
Expected investment return on plan assets	(804		)	(723		)	(2,414		)	(2,170		)
Amortization of actuarial loss	380			423			1,123			1,269
Amortization of prior service cost	(9		)	(9		)	(26		)	(26		)
Amortization of transition obligation	—			3			—			9
Settlement loss	164			83			164			83
Net periodic pension cost	$	1,019		$	1,059		$	2,723		$	3,010

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Contingencies (Details) (Pending Litigation [Member])	9 Months Ended
	Nov. 01, 2014
Pending Litigation [Member]
Loss Contingencies [Line Items]
Number of Shareholder Derivative Lawsuits	3

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Consolidated Statements of Comprehensive Income (Unaudited) (Parentheticals) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Nov. 01, 2014	Nov. 02, 2013	Nov. 01, 2014	Nov. 02, 2013
Other comprehensive income (loss)
Amortization of pension, tax expense (benefit)	$ (155)	$ (198)	$ (457)	$ (535)
Valuation adjustment of pension, tax expense (benefit)	$ 198	$ (33)	$ 198	$ (33)

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Basis of Presentation and Summary of Significant Accounting Policies

9 Months Ended

Nov. 01, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

All references in this report to “we,” “us,” or “our” are to Big Lots, Inc. and its subsidiaries.  We are a unique, non-traditional, discount retailer operating in the United States of America (“U.S.”). At November 1, 2014, we operated 1,496 stores in the U.S.  We make available, free of charge, through the “Investor Relations” section of our website (www.biglots.com) under the “SEC Filings” caption, our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended (“Exchange Act”), as soon as reasonably practicable after we file such material with, or furnish it to, the Securities and Exchange Commission (“SEC”).  The contents of our websites are not part of this report.

The accompanying consolidated financial statements and these notes have been prepared in accordance with the rules and regulations of the SEC for interim financial information. The consolidated financial statements reflect all normal recurring adjustments which management believes are necessary to present fairly our financial condition, results of operations, and cash flows for all periods presented. These consolidated financial statements, however, do not include all information necessary for a complete presentation of financial condition, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America (“GAAP”).  Interim results may not necessarily be indicative of results that may be expected for, or actually result during, any other interim period or for the year as a whole.  We have historically experienced, and expect to continue to experience, seasonal fluctuations, with a larger percentage of our net sales and operating profit realized in our fourth fiscal quarter.  The accompanying consolidated financial statements and these notes should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended February 1, 2014 (“2013 Form 10-K”).

Fiscal Periods

Our fiscal year ends on the Saturday nearest to January 31, which results in fiscal years consisting of 52 or 53 weeks.  Unless otherwise stated, references to years in this report relate to fiscal years rather than calendar years.  Fiscal year 2014 (“2014”) is comprised of the 52 weeks that began on February 2, 2014 and will end on January 31, 2015.  Fiscal year 2013 (“2013”) was comprised of the 52 weeks that began on February 3, 2013 and ended on February 1, 2014.  The fiscal quarters ended November 1, 2014 (“third quarter of 2014”) and November 2, 2013 (“third quarter of 2013”) were both comprised of 13 weeks.  The year-to-date periods ended November 1, 2014 (“year-to-date 2014”) and November 2, 2013 (“year-to-date 2013”) were both comprised of 39 weeks. 

Selling and Administrative Expenses

Selling and administrative expenses include store expenses (such as payroll and occupancy costs) and costs related to warehousing, distribution, outbound transportation to our stores, advertising, purchasing, insurance, non-income taxes, and overhead.  Our selling and administrative expense rates may not be comparable to those of other retailers that include distribution and outbound transportation costs in cost of sales.  Distribution and outbound transportation costs included in selling and administrative expenses were $40.9 million and $41.2 million for the third quarter of 2014 and the third quarter of 2013, respectively, and $119.0 million and $117.1 million for the year-to-date 2014 and the year-to-date 2013, respectively.

Advertising Expense

Advertising costs, which are expensed as incurred, consist primarily of television and print advertising, internet marketing and advertising, and in-store presentations.  Advertising expenses are included in selling and administrative expenses.  Advertising expenses were $16.9 million and $18.2 million for the third quarter of 2014 and the third quarter of 2013, respectively, and $57.7 million and $61.2 million for the year-to-date 2014 and the year-to-date 2013, respectively.

Foreign Currency Translation

The functional currency of our former international subsidiary was the local currency of the country in which the subsidiary was located. We had one foreign subsidiary domiciled in Canada. 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. 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 in 2013. 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 $0.1 million, $0.1 million, $4.8 million, and $0.4 million for the third quarter of 2014, the third quarter of 2013, the year-to-date 2014, and the year-to-date 2013, respectively. Included in the foreign currency loss in the year-to-date 2014 is a $5.1 million loss related to the realization of the cumulative translation adjustment on our investment in our Canadian operations.

Supplemental Cash Flow Disclosures

The following table provides supplemental cash flow information for the year-to-date 2014 and the year-to-date 2013:

	Thirty-Nine Weeks Ended
(In thousands)	November 1, 2014		November 2, 2013
Supplemental disclosure of cash flow information:
Cash paid for interest, including capital leases	$	825	$	1,858
Cash paid for income taxes, excluding impact of refunds	69,573		122,012
Gross proceeds from borrowings under the bank credit facility	1,131,900		970,000
Gross repayments of borrowings under the bank credit facility	925,500		817,200
Non-cash activity:
Assets acquired under capital leases	11,317		—
Accrued property and equipment	11,557		9,018
Share repurchases payable	$	10,642	$	—

Reclassifications

Wholesale Business

During the fourth quarter of 2013, we executed our wind down plan and ceased the operations of our wholesale business. Therefore, we determined that the results of our wholesale business should be reported as discontinued operations. As such, we have reclassified our results for all periods presented. Please see the Wholesale Business section of note 11 and note 12 to the consolidated financial statements for further discussion of the wind down of our wholesale business and the costs we incurred in connection with the wind down during the year-to-date 2014.

Canadian Operations

During the first quarter of 2014, we executed the remainder of our wind down plan and ceased the operations of our former Canadian segment. Therefore, we determined that the results of our former Canadian segment 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 11 and note 12 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 the year-to-date 2014.

Merchandise Categories

In the fourth quarter of 2013, we realigned select merchandise categories to be consistent with the realignment of our merchandising team and changes to our management reporting. We now use the following merchandise categories, which match our internal management and reporting of merchandise net sales: Food, Consumables, Soft Home, Hard Home, Furniture & Home Décor, Seasonal, and Electronics & Accessories. The Food category includes our beverage & grocery, candy & snacks, and specialty foods departments. The Consumables category includes our health and beauty, plastics, paper, chemical, and pet departments. The Soft Home category includes the fashion bedding, utility bedding, bath, window, decorative textile, and flooring departments. The Hard Home category includes our small appliances, table top, food preparation, stationery, greeting card, tools, paint, and home maintenance departments. The Furniture & Home Décor category includes our upholstery, mattress, ready-to-assemble, case goods, home décor, and frames departments. The Seasonal category includes our lawn & garden, summer, Christmas, toys, books, sporting goods, and other holiday departments. The Electronics & Accessories category includes the electronics, jewelry, apparel, hosiery, and infant accessories departments. In order to provide comparative information, we have reclassified our net sales by merchandise category into the new alignment for all periods presented in note 9 to the consolidated financial statements.

We periodically 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 Pronouncements

There are currently no new accounting pronouncements with a future effective date that are of significance, or potential significance, to us.

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Business Segment Data (Tables)

9 Months Ended

Nov. 01, 2014

Segment Reporting [Abstract]

Schedule of Net Sales by Category [Table Text Block]

The following table presents net sales data by merchandise category:

		Third Quarter				Year-to-Date
(In thousands)		2014		2013		2014		2013
	Furniture & Home Décor	$	270,242	$	246,093	$	843,952	$	796,178
	Consumables	230,191		226,420		693,102		671,603
	Food	202,352		185,959		584,762		530,216
	Hard Home	115,414		132,498		338,187		394,542
	Soft Home	110,292		105,286		328,398		305,468
	Seasonal	95,942		106,951		549,200		552,349
	Electronics & Accessories	82,662		101,711		246,128		302,487
Net sales		$	1,107,095	$	1,104,918	$	3,583,729	$	3,552,843

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Share-Based Plans (Details) (USD $)	3 Months Ended				9 Months Ended
	Nov. 01, 2014	Aug. 02, 2014	May 03, 2014	Nov. 02, 2013	Nov. 01, 2014	Nov. 02, 2013	Feb. 01, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	$ 3,000,000			$ 3,700,000	$ 8,000,000	$ 11,500,000
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Weighted-average fair value of stock options granted				$ 11.83		$ 12.08
Risk-free interest rate				1.10%		0.70%
Expected life (years)				4 years 2 months 12 days		4 years 2 months 12 days
Expected volatility				39.90%		42.10%
Expected annual forfeiture rate				3.00%		3.00%
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding stock options	2,479,135	2,994,235	3,377,303		3,377,303
Granted					0
Exercised	(541,797)	(464,400)	(243,218)
Forfeited	(72,500)	(50,700)	(139,850)
Outstanding stock options	1,864,838	2,479,135	2,994,235		1,864,838
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Options, Vested and Expected to Vest, Outstanding, Number	1,775,684				1,775,684
Options, Exercisable, Number	895,774				895,774
Options, Outstanding, Weighted Average Exercise Price	$ 37.52	$ 35.00	$ 35.35		$ 37.52		$ 34.88
Options, Exercises in Period, Weighted Average Exercise Price	$ 25.75	$ 36.73	$ 26.90
Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price	$ 39.15	$ 40.35	$ 38.63
Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price	$ 37.48				$ 37.48
Options, Exercisable, Weighted Average Exercise Price	$ 36.89				$ 36.89
Options, Outstanding, Weighted Average Remaining Contractual Term	4 years 3 months 18 days	4 years 1 month	4 years 2 months 18 days
Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term	4 years 2 months 12 days
Options, Exercisable, Weighted Average Remaining Contractual Term	3 years 6 months
Options, Outstanding, Intrinsic Value	15,162,000	20,850,000	16,314,000		15,162,000
Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value	14,515,000				14,515,000
Options, Exercisable, Intrinsic Value	7,845,000				7,845,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Total intrinsic value of stock options exercised	11,050,000			625,000	16,980,000	2,414,000
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized	23,800,000				23,800,000
Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition	2 years 0 months 2 days
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period					4 years
Share Based Compensation Arrangement By Share Based Payment Award, Award Expiration Period From Grant Date					7 years
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period					4 years
Share Based Compensation Arrangement By Share Based Payment Award, Award Expiration Period From Grant Date					7 years
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Nonvested, beginning balance	819,178	832,457	664,101		664,101
Granted	2,012	32,987	281,056
Vested	(31,000)	(23,776)	(13,500)
Forfeited	(28,990)	(22,490)	(99,200)
Nonvested, ending balance	761,200	819,178	832,457		761,200
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Nonvested, Weighted Average Grant Date Fair Value	$ 38.16	$ 38.04	$ 37.77		$ 38.16		$ 38.34
Grants in Period, Weighted Average Grant Date Fair Value	$ 43.87	$ 42.86	$ 37.12
Vested in Period, Weighted Average Grant Date Fair Value	$ 34.75	$ 33.65	$ 34.75
Forfeited in Period, Weighted Average Grant Date Fair Value	$ 38.84	$ 39.61	$ 40.19
Restricted Stock [Member] | Nonemployee Board of Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Vested		(23,776)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Deferred Compensation Arrangement, Fair Value of Shares Issued to Each Director		110,000
Restricted Stock Awards (RSAs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period					5 years
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period					5 years
Total fair value of equity instrument other than options vested	1,325,000			0	2,736,000	1,434,000
Restricted Stock Awards (RSAs) [Member] | Current [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period					5 years
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period					5 years
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period					3 years
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period					3 years
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense					0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period					3 years
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period					434,124
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period					3 years
CEO Performance Share Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Share Based Compensation Arrangement By Share Based Payment Award, Award Expiration Period From Grant Date					7 years
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Nonvested, beginning balance			37,800		37,800
Vested	(12,600)	(12,600)
Nonvested, ending balance	12,600				12,600
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Nonvested, Weighted Average Grant Date Fair Value							$ 34.68
Share Based Compensation Arrangement By Share Based Payment Award, Award Expiration Period From Grant Date					7 years
Total fair value of equity instrument other than options vested	$ 585,000			$ 0	$ 1,143,000	$ 0

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Costs Associated with Wind Down Activities

9 Months Ended

Nov. 01, 2014

Restructuring and Related Activities [Abstract]

COSTS ASSOCIATED WITH WIND DOWN ACTIVITIES

COSTS ASSOCIATED WITH WIND DOWN ACTIVITIES

Wholesale Business

During the third quarter of 2013, we announced our intention to wind down the operations of our wholesale business during the fourth quarter of 2013. At that time, we recorded a severance charge for this exit activity. During the fourth quarter of 2013, we closed the leased facilities in which we operated our wholesale business, recorded contract termination costs, and fully paid those obligations.

In the fourth quarter of 2013 we established a liability of $0.5 million for severance related cost associated with the wind down of our wholesale business. During the six months ended August 2, 2014 we paid $0.5 million in severance cost reducing the liability to zero at August 2, 2014. We anticipate no additional charges associated with the wind down of the operations of our wholesale business.

As the operations of the wholesale business had ceased as of February 1, 2014, the results of operations of the wholesale business were reclassified to discontinued operations. Please see the Wholesale Business section of note 12 to the consolidated financial statements for further information regarding this discontinued operation.

Canadian Operations

During the fourth quarter of 2013, we announced our intention to wind down the operations of our former Canadian segment. We conducted detailed evaluations of our long range strategic objectives and performed a preliminary review of our 2014 financial plan. As a result of this evaluation and review, we determined our Canadian operations did not fit into our strategic plan for maximizing long-term shareholder returns based on our expectations of the required investments necessary to improve our Canadian operations’ financial performance, both in the near and long-term. During the fourth quarter of 2013, we began a markdown strategy with the intent to liquidate our inventory prior to closing our stores. At February 1, 2014, we revalued our inventory at our net realizable value based on estimated cash proceeds prior to closing, which represents our estimate of its market value. During the fourth quarter of 2013, we also conducted a review of our long lived assets. We determined that the elimination of future cash flows from our operations beyond the first quarter of 2014 resulted in the impairment of our property and equipment and our tradename intangible assets. Additionally, we conducted an impairment review of our goodwill associated with our Canadian operations, determined that the goodwill had been fully impaired, and we recorded an impairment charge.

The wind down of our Canadian operations was separated into two phases: our distribution centers and our stores. During the fourth quarter of 2013, we ceased the operations of our Canadian distribution centers, as receiving, processing, and distributing activities were completed. We recorded a severance charge of approximately $2.7 million relating to the closure of our distribution centers and certain administrative activities. Additionally, with the closure of certain leased distribution centers, we recorded contract termination costs of approximately $1.3 million.

During the first quarter of 2014, we closed all of our stores, ceased their operations, and closed our Canadian corporate office. We recorded severance and contract termination costs of approximately $2.2 million and $23.0 million relating to the closure of our stores and our remaining administrative activities, respectively. In addition, in connection with the substantial completion of the wind down activities, we recorded a foreign currency translation loss of $5.1 million, which related to the realization of the cumulative translation adjustment on our investment in our Canadian operations.

The following table summarizes the components of our wind down activities associated with our Canadian operations and the activities within the related liabilities during 2014:

(In thousands)	Severance			Contract Termination Costs			Total
Balance at February 1, 2014	$	2,420		$	1,276		$	3,696
Charges	2,206			22,984			25,190
Adjustments	—			553			553
Payments	(3,997		)	(15,577		)	(19,574		)
Foreign currency translation	(38		)	74			36
Period change	(1,829		)	8,034			6,205
Balance at May 3, 2014	$	591		$	9,310		$	9,901
Charges	—			28			28
Adjustments	—			(335		)	(335		)
Payments	(591		)	(7,942		)	(8,533		)
Foreign currency translation	—			95			95
Period change	(591		)	(8,154		)	(8,745		)
Balance at August 2, 2014	$	—		$	1,156		$	1,156
Charges	—			114			114
Adjustments	—			—			—
Payments	—			(1,012		)	(1,012		)
Foreign currency translation	—			(8		)	(8		)
Period change	—			(906		)	(906		)
Balance at November 1, 2014	$	—		$	250		$	250

During February 2014, we closed all of our Canadian stores, terminated all remaining Canadian employees, and accrued an obligation for the associated severance and contract termination costs. As of November 1, 2014, we anticipate any future charges associated with the wind down of our Canadian operations will be immaterial. As our Canadian operations had ceased as of May 3, 2014, the results of our Canadian operations were reclassified to discontinued operations. Please see the Canadian Operations section of note 12 to the consolidated financial statements for further information regarding this discontinued operation.