Amazon.com 2003 Annual Report Download - page 78

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AMAZON.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Restructuring-related charges were as follows (in thousands):
Years Ended December 31,
2003 2002 2001
Asset impairments ......................................... $— $ 1,182 $ 68,528
Continuing lease obligations ................................. 140 39,563 87,049
Termination benefits ....................................... — — 14,970
Broker commissions, professional fees, and other miscellaneous
restructuring costs ....................................... — 828 11,038
Total restructuring-related charges ........................ $140 $41,573 $181,585
At December 31, 2003, the accrued liability associated with restructuring-related and other charges was $31
million and consisted of the following (in thousands):
Balance at
December 31,
2002
Subsequent
Accruals, Net Payments
Balance at
December 31,
2003
Due Within
12 Months(1)
Due After
12 Months(1)
Lease obligations, net of
estimated sublease income . . $51,216 $ 4,092 $(25,965) $29,343 $ 9,577 $19,766
Broker commissions,
professional fees and other
miscellaneous restructuring
costs ................... 5,625 (3,952) (476) 1,197 897 300
$56,841 $ 140 $(26,441) $30,540 $10,474 $20,066
(1) Restructuring-related liabilities due within 12 months and due after 12 months are classified in “Accrued
expenses and other current liabilities” and “Long-term debt and other,” on the accompanying consolidated
balance sheets.
Restructuring-related lease obligations are as follows (in thousands):
2004 2005 2006 2007 2008 Thereafter Total
Gross lease obligations ........... $13,628 $ 9,199 $ 9,167 $ 9,196 $ 8,226 $ 18,446 $67,862
Estimated sublease income (1) ..... (4,051) (4,201) (5,746) (5,840) (5,535) (13,146) (38,519)
Lease obligations, net ............ $ 9,577 $4,998 $3,421 $3,356 $2,691 $ 5,300 $29,343
(1) At December 31, 2003, we had signed contractual sublease agreements covering $15 million in future
payments.
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