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Lumber Liquidators Holdings, Inc.
Notes to Consolidated Financial Statements
(amounts in thousands, except share data and per share amounts)
NOTE 7. STOCK-BASED COMPENSATION − (continued)
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 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, stock
appreciation rights (‘‘SARs’’) and other equity awards. The total number of shares of common stock
authorized for issuance under the 2011 Plan is 5.3 million. As of December 31, 2013, 1.5 million shares of
common stock were available for future grants. Stock options granted under the 2011 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. 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
under which each of the Company’s non-employee directors has the opportunity to elect annually to defer
certain fees until his departure from the Board. 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 57,724 and 47,334 deferred stock units
outstanding at December 31, 2013 and 2012, respectively.
Stock Options
The following table summarizes activity related to stock options:
Shares
Weighted
Average
Exercise
Price
Remaining
Average
Contractual
Term (Years)
Aggregate
Intrinsic
Value
Balance, December 31, 2010 ........ 2,069,517 $10.67 6.6 $29,635
Granted ..................... 557,557 24.64
Exercised .................... (377,775) 8.14
Forfeited .................... (54,952) 19.82
Balance, December 31, 2011 ........ 2,194,347 $14.42 6.6 $12,746
Granted ..................... 182,281 25.73
Exercised .................... (937,048) 11.16
Forfeited .................... (128,203) 19.94
Balance, December 31, 2012 ........ 1,311,377 $17.79 6.5 $45,954
Granted ..................... 214,966 62.52
Exercised .................... (718,665) 14.35
Forfeited .................... (58,188) 29.04
Balance, December 31, 2013 ........ 749,490 $33.04 7.3 $52,358
Exercisable at December 31, 2013 .... 155,627 $13.08 4.5 $13,977
Vested and expected to vest,
December 31, 2013 ............. 713,362 $32.63 7.2 $50,131
The aggregate intrinsic value is the difference between the exercise price and the closing price of the
Company’s common stock on December 31. The intrinsic value of the stock options exercised during 2013,
2012 and 2011 was $49,137, $22,881 and $5,583, respectively.
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