Lumber Liquidators 2009 Annual Report Download - page 56

Lumber Liquidators Holdings, Inc.
Notes to Consolidated Financial Statements—(Continued)
(amounts in thousands, except share data and per share amounts)
Recent Accounting Pronouncements
In February 2008, FASB issued amendments that delayed the effective date of the fair value disclosure requirements for
all nonfinancial assets and nonfinancial liabilities. The Company adopted this standard on January 1, 2009. The adoption of
this standard did not have a material impact on the Company’s consolidated financial statements.
In April 2009, FASB issued an accounting standard regarding interim disclosures about fair value of financial
instruments. This standard requires interim disclosures regarding the fair value of financial instruments that were previously
required only annually and certain additional disclosures regarding the methods and significant assumptions used to estimate
the fair value of financial instruments. The Company adopted this standard on July 1, 2009. The adoption of this standard did
not have a material impact on the Company’s consolidated financial statements.
In June 2009, FASB established the “FASB Accounting Standards Codification” (the “Codification”) and in doing so,
authorized the Codification as the sole source for authoritative U.S. GAAP. Other than resolving certain minor
inconsistencies in current U.S. GAAP, the Codification does not change U.S. GAAP. Instead, it is intended to make it easier
to find and research U.S. GAAP applicable to particular transactions or specific accounting issues by organizing accounting
pronouncements into approximately 90 accounting topics. The Codification is the single source of authoritative U.S. GAAP.
The Codification is effective for financial statements issued for reporting periods ending after September 15, 2009. The
application of the Codification did not have an impact on the Company’s consolidated financial statements, however, all
references to authoritative accounting literature will now be references in accordance with the Codification.
NOTE 2. NOTES RECEIVABLE
As of December 31, 2009, notes receivable from a merchandise vendor had an outstanding balance due to the Company
of $994, of which $315 had been included in other current assets. As of December 31, 2008, the outstanding balance due to
the Company was $1,168, of which $251 had been included in other current assets.
NOTE 3. PROPERTY AND EQUIPMENT
Property and equipment consisted of:
December 31,
2009 2008
Vehicles (including Forklifts) ......................................... $ 9,478 $ 8,984
Finishing Equipment ................................................ 3,566 3,432
Office Equipment ................................................... 1,730 677
Computer Software and Hardware ...................................... 11,330 6,309
Store Fixtures ...................................................... 6,619 4,494
Leasehold Improvements ............................................. 6,005 3,997
38,728 27,893
Less: Accumulated Depreciation and Amortization ........................ 18,237 14,113
Property and Equipment, net ...................................... $20,491 $13,780
Computer software and hardware at December 31, 2009 includes $3,897 related to the Company’s integrated
information technology solution.
NOTE 4. REVOLVING CREDIT AGREEMENT
A revolving credit agreement (the “Revolver”) providing for borrowings up to $25,000 is available to LLI through
expiration on August 10, 2012. During 2009 and 2008, LLI did not borrow against the Revolver and at December 31, 2009
and 2008, there were no outstanding commitments under letters of credit. The Revolver is primarily available to fund
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