CompUSA 2008 Annual Report Download - page 84

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6. LONG-TERM DEBT
Long-term debt consists of (in thousands):
December 31,
2008 2007
Capitalized equipment lease obligations $2,184 $703
Less: current portion 773 449
$1,411 $254
The aggregate maturities of long-term debt outstanding at December 31, 2008 are as follows (in thousands):
2009 2010 2011 2012 2013
Maturities $773 $666 $471 $152 $122
7. SHAREHOLDERS’ EQUITY
Stock based compensation plans
The Company currently has four equity compensation plans which reserve shares of common stock for issuance to key
employees, directors, consultants and advisors to the Company. The following is a description of these plans:
The 1995 Long-term Stock Incentive Plan - This plan, adopted in 1995, allowed the Company to issue qualified, non-
qualified and deferred compensation stock options, stock appreciation rights, restricted stock and restricted unit grants,
performance unit grants and other stock based awards authorized by the Compensation Committee of the Board of
Directors. Options issued under this plan expire ten years after the options are granted. The ability to grant new awards
under this plan ended on December 31, 2005 but awards granted prior to such date continue until their expiration. A total
of 762,688 options were outstanding under this plan as of December 31, 2008.
The 1995 Stock Option Plan for Non-Employee Directors - This plan, adopted in 1995, provides for automatic awards of
non-qualified options to directors of the Company who are not employees of the Company or its affiliates. All options
granted under this plan will have a ten year term from grant date and are immediately exercisable. A maximum of 100,000
shares may be granted for awards under this plan. The ability to grant new awards under this plan ended on October 12,
2006 but awards granted prior to such date continue until their expiration. A total of 39,000 options were outstanding under
this plan as of December 31, 2008.
The 1999 Long-term Stock Incentive Plan, as amended (“1999 Plan”) - This plan was adopted on October 25, 1999 with
substantially the same terms and provisions as the 1995 Long-term Stock Incentive Plan. The Company increased the
number of shares that may be granted under this plan to a maximum of 7.5 million from 5.0 million shares. The maximum
number of shares granted per type of award to any individual may not exceed 1,500,000 in any calendar year and 3,000,000
in total. The Company extended the expiration date under this plan that no grants shall be granted under this plan after
December 31, 2010. The original date was after December 31, 2009. Restricted stock grants and common stock awards
reduce stock options otherwise available for future grant. A total of 1,385,896 options and 600,000 restricted stock units
were outstanding under this plan as of December 31, 2008.
The 2006 Stock Incentive Plan For Non-Employee Directors – This plan, adopted by the Company’ s stockholders on
October 11, 2006, replaces the 1995 Stock Option Plan for Non-Employee Directors. The Company adopted the plan so
that it could offer directors of the Company who are not employees of the Company or of any entity in which the Company
has more than a 50% equity interest (“independent directors”) an opportunity to participate in the ownership of the
Company by receiving options to purchase shares of common stock at a price equal to the fair market value at the date of
grant of the option and restricted stock awards. Awards for a maximum of 200,000 shares may be granted under this plan.
A total of 15,000 options were outstanding under this plan as of December 31, 2008.
Shares issued under our share-based compensation plans are usually issued from shares of our common stock held in the
treasury.
Adoption of SFAS 123(R)
Effective January 1, 2006, the Company adopted the provisions of SFAS 123(R), using the modified-prospective-transition
method. Under that transition method, compensation cost recognized for the year ended December 31, 2006 includes: (a)
compensation cost for all share-based payments granted prior to, but not yet vested as of January 1, 2006, based on the
grant-date fair value estimated in accordance with the original provisions of SFAS 123, and (b) compensation cost for the
vested portion of share-based payments granted subsequent to January 1, 2006, based on the grant-date fair value estimated
in accordance with the provisions of SFAS 123(R).