Shutterfly 2010 Annual Report Download - page 73

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SHUTTERFLY, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Goodwill
Changes in the carrying amount of goodwill are as follows (in thousands):
Accrued Liabilities
Note 5 — Restructuring
In July 2008, the Company announced that effective in early 2009, it would close its Hayward production facility and begin operations at a
new manufacturing facility to be located in Phoenix, Arizona. At the time of the decision, the Company recorded approximately $80,000 in
contractual lease termination costs. The Company completed its closure of the Hayward facility in the first quarter of fiscal 2009. The Company
paid a total of $827,000 in severance costs, which was recognized ratably over the period from the severance communication date in July 2008
through March 31, 2009. The Company recorded an additional restructuring accrual as of March 31, 2009, for rent and related costs for the
remainder of the leases associated with the Hayward facility. As of December 31, 2009, the Company made all rent payments associated with
the leases and no outstanding restructuring accrual exists.
Balance, December 31, 2007
$
379
Acquisition of business
6,945
Goodwill adjustments
400
Balance, December 31, 2008
7,724
Acquisition of business
544
Goodwill adjustments
-
Balance, December 31, 2009
$
8,268
December 31,
2009
2008
In thousands
Accrued marketing expenses
$
10,548
$
6,697
Accrued production costs
7,241
2,677
Accrued income and sales taxes
5,517
5,923
Accrued compensation
5,227
4,110
Accrued purchases
1,228
952
Accrued consultant expenses
1,112
1,439
Accrued other
1,920
3,004
$
32,793
$
24,802
70