Lumber Liquidators 2007 Annual Report Download - page 64

The future minimum rental payments under capital leases and non-cancellable operating leases, segregating
ANO and Related Companies leases from all other operating leases, were as follows at December 31, 2007:
Operating Leases
ANO and Related Companies
Capital
Leases
Store
Leases
Headquarters
Lease
Store
Leases
Total
Operating
Leases
2008 ...................................... $ 61 $1,276 $ 1,003 $ 5,701 $ 7,980
2009 ...................................... — 996 1,033 5,197 7,226
2010 ...................................... — 799 1,064 4,555 6,418
2011 ...................................... — 425 1,096 3,705 5,226
2012 ...................................... — 140 1,129 2,398 3,667
Thereafter ................................. — 329 8,911 6,780 16,020
Total minimum lease payments ................ 61 $3,965 $14,236 $28,336 $46,537
Less: amounts representing interest costs ......... (1)
Present value of minimum lease payments ........ 60
Less: current maturities ....................... (60)
Long-term capital lease obligations ............. $—
NOTE 6. STOCK BASED COMPENSATION
Overview
The Company recorded total stock-based compensation expense of $6,211, $1,449 and $3,306 for 2007,
2006 and 2005, respectively.
In August 2007, the Company adopted an equity incentive plan for employees, non-employee directors and
other service providers, the Lumber Liquidators, Inc. 2007 Equity Compensation Plan (the “2007 Plan”), from
which it grants stock options and restricted stock awards. The number of shares of Common Stock authorized for
issuance with respect to awards granted under the 2007 Plan is 4.3 million, reduced by (i) any shares that have
been issued under either the 2004 Stock Option and Grant Plan and the 2006 Equity Plan for Non-Employee
Directors (collectively, the “Prior Plans”), and (ii) any shares that are subject to outstanding awards under the
Prior Plans that have not been forfeited or canceled. No additional options will be issued under the Prior Plans.
Stock options granted under the 2007 Plan expire no later than ten years from the date of grant and the exercise
price shall not be less than the fair market value of the shares on the date of grant. Vesting periods are assigned to
stock options and restricted stock awards on a grant by grant basis at the discretion of the Board of Directors.
The Company recorded stock-based compensation expense related to stock options and restricted stock
awards of $2,733 for 2007, which included $977 related to one-time acceleration of vesting provisions in certain
stock option agreements triggered by the IPO and resulting in the immediate vesting of 261,313 stock options.
The Company recorded stock-based compensation expense related to stock options of $668 for the year ended
December 31, 2006.
The Company is party to a stock-based agreement between the Founder and his brother, Kevin Sullivan, a
regional manager (or “Kevin”), accounted for as a variable performance plan (the “Variable Plan”). The Variable
Plan was established in 1998 and modified in August 2005. The Variable Plan awarded Kevin the right (the
“Variable Right”) to an ownership percentage of Common Stock, contributed by the Founder. The Variable Right
fully vested in conjunction with the IPO. The Company recorded stock-based compensation expense related to
the Variable Plan of $3,220, $1,040 and $3,133 for 2007, 2006 and 2005, respectively.
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