Lumber Liquidators 2007 Annual Report Download - page 62

Download and view the complete annual report

Please find page 62 of the 2007 Lumber Liquidators annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 80

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80

In February 2007, the FASB issued SFAS No. 159, “The Fair Value Option for Financial Assets and
Financial Liabilities” (or “SFAS 159”). SFAS 159 permits entities to choose, at specified election dates, to
measure eligible items at fair value (or “fair value option”) and to report in earnings unrealized gains and losses
on those items for which the fair value option has been elected. SFAS 159 also requires entities to display the fair
value of those assets and liabilities on the face of the balance sheet. SFAS 159 establishes presentation and
disclosure requirements designed to facilitate comparisons between entities that choose different measurement
attributes for similar types of assets and liabilities. SFAS 159 is effective for the Company as of the first quarter
of 2008. Early adoption is permitted. The Company is currently evaluating the impact of this pronouncement on
its financial statements.
NOTE 2. NOTES RECEIVABLE
The Company holds two notes receivable from a merchandise supplier with an outstanding balance due to
the Company of $1,375 at December 31, 2007, of which $519 had been included in other current assets. In June
2007, the Company consolidated two outstanding notes receivable into one note with an aggregate value of $912
maturing in June 2010. A separate note, which matures in August 2009, was not modified. As of December 31,
2006, notes receivable from merchandise vendors had an outstanding balance due to the Company of $1,780, of
which $1,009 had been included in other current assets.
NOTE 3. PROPERTY AND EQUIPMENT
Property and equipment consisted of:
December 31,
2007 2006
Vehicles ................................................................... $ 9,045 $ 7,633
Finishing Equipment ......................................................... 3,171 3,151
Office Equipment and Other ................................................... 5,029 3,053
Store Fixtures .............................................................. 2,413 991
Leasehold Improvements ..................................................... 1,736 817
21,394 15,645
Less: Accumulated Depreciation and Amortization ................................ 9,814 6,313
Property and Equipment, net ............................................. $11,580 $ 9,332
As of December 31, 2007 and 2006, property and equipment, net included assets under capital leases of
$151 and $339, respectively, net of accumulated amortization of $1,598 and $1,410, respectively.
NOTE 4. LONG-TERM DEBT
Long-term debt consisted of the following:
December 31,
2007 2006
Other Notes Payable .......................................................... $ 62 $ 140
Consolidated Term Note ....................................................... — 8,398
Revolving Line of Credit ....................................................... — 745
62 9,283
Less: Current Portions of Long-Term Debt ....................................... 62 2,804
Total Long-Term Debt .................................................. $— $6,479
56