Lumber Liquidators 2010 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)
The future minimum rental payments under non-cancellable operating leases, segregating ANO and Related Companies
leases from all other operating leases, were as follows at December 31, 2010:
Operating Leases
ANO and Related Companies
Store & Other
Leases
Total
Operating
Leases
Store
Leases
Headquarters
Lease
2011 ........................................... $1,199 $ 1,096 $12,783 $15,078
2012 ........................................... 1,024 1,129 11,193 13,346
2013 ........................................... 948 1,163 9,525 11,636
2014 ........................................... 620 1,198 7,717 9,535
2015 ........................................... 392 1,233 5,351 6,976
Thereafter ...................................... 171 6,705 7,955 14,831
Total minimum lease payments ...................... $4,354 $12,524 $54,524 $71,402
NOTE 6. STOCK-BASED COMPENSATION
Stock-based compensation expense included in SG&A expenses consisted of:
Year Ended December 31,
2010 2009 2008
Stock Options and Restricted Stock Awards ....................... $2,962 $2,826 $ 2,840
Variable Plan ............................................... — — (2,960)
Regional Manager Plan ....................................... 129 129 129
Total ...................................................... $3,091 $2,955 $ 9
Overview
The Company has an equity incentive plan for employees, non-employee directors and other service providers, the
Lumber Liquidators Holdings, Inc. 2007 Equity Compensation Plan (the “2007 Plan”), from which it grants stock options
and restricted stock awards. The total number of shares of common stock authorized for issuance under the 2007 Plan is
4.3 million. As of December 31, 2010, 1.4 million shares of common stock were available for future grants. 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 issues new shares of common
stock upon exercise of stock options and vesting of restricted stock awards.
The Company also maintains the Lumber Liquidators Holdings, Inc. Outside Directors Deferral Plan (the “Deferral
Plan”) under which each of the Company’s non-employee directors has the opportunity to annually elect to defer certain fees
until his departure from the Board of Directors. A non-employee director may elect to defer up to 100% of his fees and have
such fees invested in deferred stock units. Deferred stock units must be settled in common stock upon the director’s departure
from the Board. There were 22,265 deferred stock units outstanding at December 31, 2010. There were no deferred stock
units outstanding at December 31, 2009.
The Variable Plan
The Company was party to a stock-based agreement between our Company’s founder and his brother, a former regional
manager, accounted for as a variable performance plan (the “Variable Plan”) in accordance with FASB ASC 718. The
Variable Plan awarded the founder’s brother the right to an ownership percentage of common stock (the “Variable Right”),
contributed by the founder. In conjunction with the IPO in November 2007, the Variable Right fully vested and became
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