Classmates.com 2007 Annual Report Download - page 124

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UNITED ONLINE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
10. SEGMENT INFORMATION (Continued)
A reconciliation of segment income from operations (which excludes depreciation and amortization of intangible assets) to consolidated
operating income, is as follows for each period presented (in thousands):
The Company has not provided geographic financial information because the vast majority of the Company's revenues and related results of
operations and assets are in the United States and geographic financial information is thus not material nor meaningful.
11. RESTRUCTURING CHARGES
In the year ended December 31, 2007, the Company recorded restructuring charges totaling $3.4 million. In October 2007, the Company
eliminated 69 positions and recorded restructuring charges totaling $3.0 million for employee termination benefits within its Communications
segment to better align the segment's cost structure within a mature business for dial-up Internet access services. All costs related to the
elimination of these positions were recognized and incurred in the December 2007 quarter.
In addition, the Company recognized restructuring charges totaling $0.4 million in the year ended December 31, 2007 for termination
benefits paid to certain employees associated with its Web hosting and photo sharing businesses.
In the year ended December 31, 2006, the Company recorded restructuring charges totaling $0.6 million primarily for lease termination
costs and termination benefits paid to certain employees.
In February 2008, the Company communicated its intentions to close its Orem, Utah facility and consolidate these functions into the
Company's operations at its corporate headquarters. The Company believes these activities will result in restructuring charges, comprised largely
of employee termination benefits, during 2008, of approximately $0.5 million.
Commencing in 2006, the Company began to assess unprofitable operations and all of its other operations in light of the mature dial-up
Internet access industry. The Company's assessment has resulted in the restructuring charges referenced above and may result in additional
restructuring charges.
F-42
Year Ended December 31,
2007
2006
2005
Segment income from operations:
Classmates Media
$
28,177
$
19,938
$
10,399
Communications
97,074
93,011
113,441
Total segment income from operations
125,251
112,949
123,840
Depreciation
(20,150
)
(21,290
)
(15,481
)
Amortization of intangible assets
(12,800
)
(17,640
)
(21,799
)
Consolidated operating income
$
92,301
$
74,019
$
86,560