Lumber Liquidators 2010 Annual Report Download - page 60

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Lumber Liquidators Holdings, Inc.
Notes to Consolidated Financial Statements—(Continued)
(amounts in thousands, except share data and per share amounts)
The tax effects of temporary differences that result in significant portions of the deferred tax accounts are as follows:
December 31,
2010 2009
Deferred Tax Liabilities:
Prepaid Expenses ......................................................... $ 271 $ 209
Depreciation and Amortization .............................................. 6,943 2,146
Total Deferred Tax Liabilities ................................................... 7,214 2,355
Deferred Tax Assets:
Stock-Based Compensation Expense .......................................... 3,341 3,274
Reserves ................................................................ 2,032 1,864
Employee Benefits ........................................................ 316 1,176
Inventory Capitalization .................................................... 1,435 1,402
Other ................................................................... 97 49
Total Deferred Tax Assets ...................................................... 7,221 7,765
Net Deferred Tax Asset ........................................................ $ 7 $5,410
The Company made income tax payments of $14,282, $15,273, and $15,112 in 2010, 2009, and 2008, respectively.
The Company files income tax returns with the U.S. federal government and various state jurisdictions. In the normal
course of business, the Company is subject to examination by federal and state taxing authorities. The Internal Revenue
Service has completed audits of the Company’s federal income tax returns for the years through 2007.
NOTE 8. PROFIT SHARING PLAN
The Company maintains a profit-sharing plan, qualified under Section 401(k) of the Internal Revenue Code, for all
eligible employees. Through 2009, employees were eligible to participate following the completion of one year of service
and attainment of age 21. As of January 1, 2010, employees are eligible to participate following the completion of three
months of service and attainment of age 21. The Company matches 50% of employee contributions up to 6% of eligible
compensation. The Company’s matching contributions, included in SG&A, totaled $520, $404, and $344 in 2010, 2009, and
2008, respectively.
NOTE 9. NET INCOME PER COMMON SHARE
The following table sets forth the computation of basic and diluted net income per common share:
Year Ended December 31,
2010 2009 2008
Net Income ....................................................... $ 26,266 $ 26,924 $ 22,149
Weighted Average Common Shares Outstanding—Basic ................... 27,384,095 26,983,689 26,772,288
Effect of Dilutive Securities:
Common Stock Equivalents ...................................... 862,358 700,858 318,305
Weighted Average Common Shares Outstanding—Diluted ................. 28,246,453 27,684,547 27,090,593
Net Income per Common Share—Basic ................................ $ 0.96 $ 1.00 $ 0.83
Net Income per Common Share—Diluted ............................... $ 0.93 $ 0.97 $ 0.82
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