Circuit City 2009 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, 2009 are as follows (in thousands):
7.
BUSINESS EXIT COSTS
The Company announced plans to exit its Software Solutions segment, in the second quarter of 2009, as the result of economic conditions
and difficulties in marketing the segment’s products successfully. Total charges incurred for the year for severances, estimated lease
termination costs and other costs were $1.2 million, $1.6 million, and $0.1 million, respectively. These costs were recorded in selling,
general and administrative expenses and interest and other income, net in the accompanying condensed consolidated statement of
operations.
The following table reconciles the associated liabilities incurred (in thousands):
8.
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 632,475 options were outstanding under this plan as of December 31, 2009.
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, 2009.
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. In 2009 the Company extended until December 31, 2010
the expiration date under this plan after which no grants shall be made under this plan. The original expiration date was December 31, 2009.
Restricted stock grants and common stock awards reduce stock options otherwise available for future grant. A total of 1,410,984 options and
400,000 restricted stock units were outstanding under this plan as of December 31, 2009.
50
December 31,
2009 2008
Capitalized equipment lease obligations
$
2,223
$
2,184
Less: current portion
1,029
773
$
1,194
$
1,411
2010
2011
2012
2013
2014
Maturities
$
1,029
$
737
$
307
$
150
—
Severance
and
Personnel
Costs
Lease
Termination
Costs
Other Exit Costs Total
Balance, beginning of period
$
—
$
—
$
—
$
—
Charged to expense
1,208
1,644
80
2,932
Paid or otherwise settled
(1,208
)
(697
)
(80
)
(1,985
)
Balance, end of period
$
—
$
947
$
—
$
947