Lumber Liquidators 2015 Annual Report Download - page 29

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.
Failure to maintain effective systems of internal and disclosure control could have a material adverse effect
on our results of operation and financial condition.
Effective internal and disclosure controls are necessary for us to provide reliable financial reports and
effectively prevent fraud, and to operate successfully as a public company. If we cannot provide reliable
financial reports or prevent fraud, our reputation and operating results would be harmed. As part of our
ongoing monitoring of internal control, we may discover material weaknesses or significant deficiencies in
internal control that require remediation. A ‘‘material weakness’’ is a deficiency, or a combination of
deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a
material misstatement of a company’s annual or interim financial statements will not be prevented or detected
on a timely basis.
We have in the past discovered, and may in the future discover, areas of its internal controls that need
improvement. Even so, we continue to work to improve our internal controls. We cannot be certain that these
measures will ensure that we implement and maintain adequate controls over our financial processes and
reporting in the future. Any failure to maintain effective controls or to timely implement any necessary
improvement of our internal and disclosure controls could, among other things, result in losses from fraud or
error, harm our reputation, or cause investors to lose confidence in the reported financial information, all of
which could have a material adverse effect on our results of operation and financial condition.
Item 1B. Unresolved Staff Comments.
None.
Item 2. Properties.
As of February 25, 2016, we operated 375 stores located in 46 states and Canada, including one opened
since December 31, 2015. In addition to our eight stores in Ontario, Canada, the table below sets forth the
locations (alphabetically by state) of our 367 U.S. stores in operation as of February 25, 2016.
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 8
Arkansas 2 Kentucky 4 New Jersey 13 South Dakota 1
California 40 Louisiana 5 New Mexico 1 Tennessee 6
Colorado 7 Maine 3 New York 19 Texas 30
Connecticut 8 Maryland 10 North Carolina 12 Utah 2
Delaware 3 Massachusetts 10 North Dakota 1 Vermont 1
Florida 26 Michigan 10 Ohio 13 Virginia 13
Georgia 10 Minnesota 6 Oklahoma 3 Washington 7
Idaho 2 Mississippi 2 Oregon 5 West Virginia 3
Illinois 16 Missouri 5 Pennsylvania 20 Wisconsin 5
Indiana 8 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. We
own approximately 110 acres of land in Henrico County, Virginia where we constructed a million square foot
distribution center that became fully operational in January 2015. We lease a 504,016 square feet facility in
Pomona, California, which, along with our new facility in Virginia, serve as our primary distribution facilities.
As of February 25, 2016, our Toano facility, which includes a store location, a warehouse and 30 of our
store locations are leased from related parties. See discussion of properties leased from related parties in Note
5 to the consolidated financial statements included in Item 8 of this report and within Certain Relationships
and Related Transactions, and Director Independence in Item 13 of this report.
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