Classmates.com 2003 Annual Report Download - page 57

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Immediately following the Merger, United Online reduced Juno's workforce by 49 employees and recorded employee termination benefit
charges of $3.8 million. Of the 49 employees terminated, 35 were in general and administrative, 11 were in sales and marketing and the
remaining 3 were in product development functions. Early contract termination fees relate to costs incurred to exit redundant contracts with no
future benefits to the combined operations. At June 30, 2002, all employee termination benefits, investment banking, accounting and legal fees
and contractual termination fees had been paid with no related liabilities remaining.
During fiscal 2002, the Company recorded $4.2 million in restructuring costs, which consisted of $0.8 million in employee termination
benefits, $0.5 million for early contractual termination fees and $2.9 million in lease exit related costs, which included a charge of
approximately $1.4 million to write off leasehold improvements associated with the Company's former offices in New York and Rhode Island.
In an effort to streamline its operations in response to changing market conditions, the Company reduced its workforce by 101 employees
during fiscal 2002. Of the 101 employees terminated, 43 were in sales and marketing, 26 were in general and administrative, 23 were in
product development, 6 employees were at the Company's former RocketCash subsidiary, and 3 were in network operations. In addition, the
Company closed its regional offices in San Francisco, California and Providence, Rhode Island and combined NetZero's and Juno's New York
offices into one facility. At June 30, 2003, all acquisition and restructuring costs were paid.
4. BALANCE SHEET COMPONENTS
Short-Term Investments
Short-term investments consist of the following (in thousands):
F-20
Employee termination benefits
$
3,844
Investment banking, accounting and legal fees
2,301
Early contract termination fees
1,833
Total $
7,978
December 31, 2003
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
U.S. corporate notes
$
39,321
$
917
$
(5
)
$
40,233
Government agencies
91,083
1,183
(10
)
92,256
Total $
130,404
$
2,100
$
(15
) $
132,489
June 30, 2003
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
U.S. corporate notes
$
48,513
$
1,721
$
(41
)
$
50,193
Government agencies
54,441
1,756
—
56,197
Total $
102,954
$
3,477
$
(41
) $
106,390
June 30, 2002
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
U.S. corporate notes
$
35,252
$
398
$
(132
)
$
35,518
Government agencies
61,545
749
—
62,294
Total $
96,797
$
1,147
$
(132
) $
97,812