Lumber Liquidators 2013 Annual Report Download - page 31

Our anti-takeover defense provisions may cause our common stock to trade at market prices lower than it
might absent such provisions.
Our certificate of incorporation and bylaws contain several provisions that may make it more difficult or
expensive for a third party to acquire control of us without the approval of our board of directors. These
provisions include a staggered board, the availability of ‘‘blank check’’ preferred stock, provisions restricting
stockholders from calling a special meeting of stockholders or requiring one to be called or from taking action
by written consent and provisions that set forth advance notice procedures for stockholders’ nominations of
directors and proposals of topics for consideration at meetings of stockholders. Our certificate of incorporation
also provides that Section 203 of the Delaware General Corporation Law, which relates to business
combinations with interested stockholders, applies to us. These provisions may delay, prevent or deter a
merger, acquisition, tender offer, proxy contest or other transaction that might otherwise result in our
stockholders receiving a premium over the market price for their common stock. In addition, these provisions
may cause our common stock to trade at a market price lower than it might absent such provisions.
Risk Related to Accounting Standards
Changes in accounting standards and subjective assumptions, estimates and judgments by management
related to complex accounting matters could significantly affect our financial results.
Generally accepted accounting principles and related accounting pronouncements, implementation
guidelines and interpretations with regard to a wide range of matters that are relevant to our business,
including but not limited to, revenue recognition, stock-based compensation, lease accounting, sales returns
reserves, inventories, self-insurance, income taxes, unclaimed property laws and litigation, etc. are highly
complex and involve many subjective assumptions, estimates and judgments by our management. Changes in
these rules or their interpretation or changes in underlying assumptions, estimates or judgments by our
management could significantly change our reported or expected financial performance.
Item 1B. Unresolved Staff Comments.
None.
Item 2. Properties.
As of February 17, 2014, we operated 325 stores located in 46 states and Canada, including seven
opened since December 31, 2013. In addition to our nine stores in Ontario, Canada, the table below sets forth
the locations (alphabetically by state) of our 316 U.S. stores in operation as of February 17, 2014.
State Stores State Stores State Stores State Stores
Alabama 5 Iowa 3 Nevada 3 Rhode Island 1
Arizona 5 Kansas 3 New Hampshire 5 South Carolina 5
Arkansas 2 Kentucky 4 New Jersey 13 South Dakota 1
California 29 Louisiana 5 New Mexico 1 Tennessee 6
Colorado 6 Maine 3 New York 17 Texas 25
Connecticut 5 Maryland 6 North Carolina 11 Utah 2
Delaware 3 Massachusetts 9 North Dakota 1 Vermont 1
Florida 20 Michigan 8 Ohio 11 Virginia 12
Georgia 10 Minnesota 5 Oklahoma 2 Washington 7
Idaho 2 Mississippi 2 Oregon 3 West Virginia 3
Illinois 15 Missouri 5 Pennsylvania 17 Wisconsin 5
Indiana 7 Nebraska 2
We lease all of our stores and our corporate headquarters located in Toano, Virginia, which includes
our call center, corporate offices, and distribution and finishing facility. Our corporate headquarters has
307,784 square feet, of which approximately 32,000 square feet are office space, and is located on a 74-acre
plot. In addition, we currently lease 753,661 square feet near the port in the Hampton Roads area in Virginia
and 504,016 square feet in Pomona, California as our primary distribution facilities. We own approximately
110 acres of undeveloped land in Henrico County, Virginia where we are constructing a 1.0 million square
foot distribution center.
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