Lumber Liquidators 2014 Annual Report Download - page 65

Lumber Liquidators Holdings, Inc.
Notes to Consolidated Financial Statements
(amounts in thousands, except share data and per share amounts)
Note 5. Stockholders’ Equity − (continued)
The following have been excluded from the computation of Weighted Average Common Shares
Outstanding — Diluted because the effect would be antidilutive:
As of December 31,
2014 2013 2012
Stock Options .......................... 184,252 103,329 16,969
Restricted Shares ........................ 16,699 176 4,261
Stock Repurchase Program
In 2012, the Company’s Board of Directors (‘‘Board’’) authorized the repurchase of up to $100,000 of
the Company’s common stock from time to time on the open market or in privately negotiated transactions.
In January 2014, the Company’s Board authorized the repurchase of up to an additional $50,000 of the
Company’s common stock, bringing the total authorization to $150,000 and at December 31, 2014, the
Company had $14,728 remaining under this authorization. The Company has not purchased any stock through
privately negotiated transactions. Purchases under this program were as follows:
Year Ended December 31,
2014 2013 2012
Shares Repurchased ...................... 671,200 403,630 1,648,777
Average Price per Share ................... $ 77.68 $ 84.40 $ 29.74
Total Aggregate Costs ..................... $ 52,138 $ 34,066 $ 49,068
Note 6. Stock-Based Compensation
Stock-based compensation expense included in SG&A expenses consisted of:
Year Ended December 31,
2014 2013 2012
Stock Options, Restricted Shares and Stock
Appreciation Rights ....................... $5,593 $5,974 $3,997
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 shares, 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, 2014, 1.4 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 shares 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 shares.
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 departure from the Board. A non-employee director may elect to defer up to 100% of his or
her 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 63,279 and 57,724 deferred stock units
outstanding at December 31, 2014 and 2013, respectively.
57