Circuit City 2006 Annual Report Download - page 40

Less: current portion 548 574
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$483 $ 8,028
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2007 2008 2009 2010 2011
---- ---- ---- ---- ----
Maturities $548 $385 $78 $10 $10
(a) Mortgage note payable. The Company had a ten year, $8.4 million mortgage loan on its Georgia distribution
facility. The mortgage had monthly principal and interest payments of $62,000 through May 2012, with a final
additional principal payment of $6.4 million at maturity in May 2012. The mortgage bore interest at 7.04% and
was collateralized by the underlying land and building. In March 2006, the Company sold its Georgia
distribution facility and repaid the remaining balance on the mortgage (see Note 14).
The aggregate maturities of long
-
term debt outstanding at December 31, 2006 are as follows (in thousands):
8.
STOCK
-
BASED COMPENSATION PLANS
The Company currently has four equity compensation plans which reserve shares of common stock for issuance to key
employees, directors, consultants and advisors to the Company. The following is a description of these plans:
The 1995 Long-term Stock Incentive Plan — This plan, adopted in 1995, allowed the Company to issue qualified, non-
qualified and deferred compensation stock options, stock appreciation rights, restricted stock and restricted unit grants,
performance unit grants and other stock based awards authorized by the Compensation Committee of the Board of
Directors. Options issued under this plan expire ten years after the options are granted. The ability to grant new awards
under this plan ended on December 31, 2005 but awards granted prior to such date continue until their expiration. A
total of 1,102,955 options were outstanding under this plan as of December 31, 2006. The 1995 Stock Option Plan for
Non
-Employee Directors — This plan, adopted in 1995, provides for automatic awards of non-qualified options to
directors of the Company who are not employees of the Company or its affiliates. All options granted under this plan
will have a ten year term from grant date and are immediately exercisable. A maximum of 100,000 shares may be
granted for awards under this plan. The ability to grant new awards under this plan ended on October 12, 2006 but
awards granted prior to such date continue until their expiration. A total of 39,000 options were outstanding under this
plan as of December 31, 2006.
The
1999 Long
-
term Stock Incentive Plan, as amended (
“
1999 Plan
”
)
—
This plan was adopted on October 25, 1999
with substantially the same terms and provisions as the 1995 Long-term Stock Incentive Plan. A maximum of 5.0
million shares may be granted under this plan. The maximum number of shares granted per type of award to any
individual may not exceed 1,500,000 in any calendar year and 3,000,000 in total. No award shall be granted under this
plan after December 31, 2009. Restricted stock grants and common stock awards reduce stock options otherwise
available for future grant. A total of 1,472,121 options and 900,000 restricted stock units were outstanding under this
plan as of December 31, 2006.
The 2006 Stock Incentive Plan For Non-Employee Directors – This plan, adopted by the Company’s stockholders on
October 11, 2006, replaces the 1995 Stock Option Plan for Non-Employee Directors. The Company adopted the plan
so that it could offer directors of the Company who are not employees of the Company or of any entity in which the
Company has more than a 50% equity interest (“independent directors”) an opportunity to participate in the ownership
of the Company by receiving options to purchase shares of common stock at a price equal to the fair market value at
the date of grant of the option and restricted stock awards. Awards for a maximum of 200,000 shares may be granted
under this plan. A total of 15,000 options were outstanding under this plan as of December 31, 2006.
Shares issued under our share-based compensation plans are usually issued from shares of our common stock held in
the treasury.
Adoption of SFAS 123(R)
Effective January 1, 2006, the Company adopted the provisions of SFAS 123(R), using the modified-prospective-
transition method. Under that transition method, compensation cost recognized for the year ended December 31, 2006
includes: (a) compensation cost for all share-based payments granted prior to, but not yet vested as of January 1, 2006,
based on the grant-date fair value estimated in accordance with the original provisions of SFAS 123, and (b)
compensation cost for the vested portion of share-based payments granted subsequent to January 1, 2006, based on the