Circuit City 2008 Annual Report Download - page 53

Table of Contents
6.
LONG-TERM DEBT
Long-term debt consists of (in thousands):
The aggregate maturities of long-term debt outstanding at December 31, 2008 are as follows (in thousands):
7.
SHAREHOLDERS’ EQUITY
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 762,688 options were outstanding under this plan as of December 31, 2008.
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, 2008.
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. The Company increased the number of shares that may be granted
under this plan to a maximum of 7.5 million from 5.0 million shares. 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. The Company extended the expiration date under this
plan that no grants shall be granted under this plan after December 31, 2010. The original date was after December 31, 2009. Restricted
stock grants and common stock awards reduce stock options otherwise available for future grant. A total of 1,385,896 options and 600,000
restricted stock units were outstanding under this plan as of December 31, 2008.
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 , 2008.
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 grant-date fair value estimated in accordance with the provisions of SFAS 123(R).
49
December 31,
2008 2007
Capitalized equipment lease obligations
$
2,184
$
703
Less: current portion
773
449
$
1,411
$
254
2009
2010
2011
2012
2013
Maturities
$
773
$
666
$
471
$
152
$
122