Amazon.com 2002 Annual Report Download - page 84

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AMAZON.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
of a large portion of its technology infrastructure to a new operating platform, which entails ongoing lease
obligations for technology infrastructure no longer being utilized. Actual employee termination beneÑts
paid were $12 million. The restructuring is complete; however, the Company may adjust its restructuring-
related estimates in the future, if necessary.
During 2002, the Company revised its estimates of ongoing net lease obligations for its facilities in
Seattle, Washington and McDonough, Georgia, primarily due to weakness in these real estate markets;
reached a termination agreement with the landlord of its leased fulÑllment center facility in McDonough,
Georgia; and permanently closed its fulÑllment center in Seattle, Washington.
Restructuring-related charges were as follows (in thousands):
Years Ended December 31,
2002 2001
Asset impairments ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 1,182 $ 68,528
Continuing lease obligations ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 39,563 87,049
Termination beneÑts ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì 14,970
Broker commissions, professional fees and other miscellaneous
restructuring costs ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 828 11,038
$41,573 $181,585
At December 31, 2002, the accrued liability associated with restructuring-related and other charges
was $57 million and consisted of the following (in thousands):
Balance at Balance at
December 31, Subsequent December 31, Due Within Due After
2001 Accruals, Net Payments 2002 12 Months(1) 12 Months(1)
Lease obligations, net of
estimated sublease
income ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $53,187 $39,563 $(41,534) $51,216 $20,903 $30,313
Termination beneÑts ÏÏÏÏÏÏ 61 Ì (61) Ì Ì Ì
Broker commissions,
professional fees and
other miscellaneous
restructuring costs ÏÏÏÏÏÏ 8,190 828 (3,393) 5,625 4,324 1,301
$61,438 $40,391 $(44,988) $56,841 $25,227 $31,614
(1) Restructuring-related liabilities due within 12 months and due after 12 months are classiÑed in
""Accrued expenses and other current liabilities'' and ""Long-term debt and other,'' respectively, on the
accompanying consolidated balance sheets.
75