Lumber Liquidators 2011 Annual Report Download - page 62

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,
2011 2010
Deferred Tax Liabilities:
Prepaid Expenses ........................................................ $ 372 $ 271
Depreciation and Amortization ............................................. 11,629 6,943
Other .................................................................. — 51
Total Deferred Tax Liabilities .................................................. 12,001 7,265
Deferred Tax Assets:
Stock-Based Compensation Expense ......................................... 3,914 3,341
Reserves ............................................................... 2,243 2,032
Employee Benefits ....................................................... 118 316
Inventory Capitalization ................................................... 2,168 1,435
Foreign Operations ....................................................... 728 148
Other .................................................................. 342 —
Total Deferred Tax Assets ..................................................... 9,513 7,272
Net Deferred Tax (Liability) Asset .............................................. $(2,488) $ 7
The Company made income tax payments of $7,067, $14,282 and $15,273 in 2011, 2010 and 2009, respectively.
The Company files income tax returns with the U.S. federal government and various state and foreign jurisdictions. In
the normal course of business, the Company is subject to examination by taxing authorities. The Internal Revenue Service
has completed audits of the Company’s federal income tax returns for years through 2009.
NOTE 9. 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 $620, $520 and $404 in 2011, 2010 and
2009, respectively.
NOTE 10. 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,
2011 2010 2009
Net Income ....................................................... $ 26,256 $ 26,266 $ 26,924
Weighted Average Common Shares Outstanding—Basic ................... 27,706,629 27,384,095 26,983,689
Effect of Dilutive Securities:
Common Stock Equivalents ...................................... 673,064 862,358 700,858
Weighted Average Common Shares Outstanding—Diluted ................. 28,379,693 28,246,453 27,684,547
Net Income per Common Share—Basic ................................ $ 0.95 $ 0.96 $ 1.00
Net Income per Common Share—Diluted ............................... $ 0.93 $ 0.93 $ 0.97
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