Lumber Liquidators 2011 Annual Report Download - page 58

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Lumber Liquidators Holdings, Inc.
Notes to Consolidated Financial Statements—(Continued)
(amounts in thousands, except share data and per share amounts)
NOTE 6. LEASES
The Company has operating leases for its stores, Corporate Headquarters, supplemental office and distribution facilities
and certain equipment. The store location leases are operating leases and generally have five-year base periods with one or
more five-year renewal periods.
The Company’s founder has an ownership interest in ANO LLC and certain other entities (collectively, “ANO and
Related Companies”). As of December 31, 2011, 2010 and 2009, the Company leased 25, 27 and 25 of its locations from
ANO and Related Companies representing 9.5%, 12.1% and 13.4% of the total number of store leases in operation,
respectively. In addition, the Company leases the Corporate Headquarters from ANO LLC under an operating lease with a
base term running through December 31, 2019.
Rental expense for 2011, 2010 and 2009 was $16,575, $13,784 and $11,464, respectively, with rental expense
attributable to ANO and Related Companies of $2,718, $2,635 and $2,531, respectively.
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, 2011:
Operating Leases
ANO and Related Companies
Store & Other
Leases
Total
Operating
Leases
Store
Leases
Headquarters
Lease
2012 ........................................... $1,197 $ 1,129 $15,416 $17,742
2013 ........................................... 1,124 1,163 13,024 15,311
2014 ........................................... 774 1,198 11,205 13,177
2015 ........................................... 515 1,234 8,932 10,681
2016 ........................................... 105 1,271 6,102 7,478
Thereafter ...................................... 122 6,823 5,948 12,893
Total minimum lease payments ...................... $3,837 $12,818 $60,627 $77,282
NOTE 7. STOCK-BASED COMPENSATION
Stock-based compensation expense included in SG&A consisted of:
Year Ended December 31,
2011 2010 2009
Stock Options and Restricted Stock Awards ........................ $4,005 $2,962 $2,826
Regional Manager Plan ........................................ — 129 129
Total ....................................................... $4,005 $3,091 $2,955
Overview
On May 6, 2011, the Company’s stockholders approved the Lumber Liquidators Holdings, Inc. 2011 Equity
Compensation Plan (the “2011 Plan”), which succeeded the Lumber Liquidators Holdings, Inc. 2007 Equity Compensation
Plan (the “2007 Plan”). The 2011 Plan is an equity incentive plan for employees, non-employee directors and other service
providers from which the Company may grant stock options, restricted stock awards and other equity awards. The total
number of shares of common stock authorized for issuance under the 2011 Plan is 5.3 million. No further grants will be made
under the 2007 Plan.
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