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The tables below show the breakdown of the cash payments and adjustments made in fiscal
2000 for the three separate restructuring programs.
Fiscal 1999 Restructuring Programs The fourth quarter 1999 restructuring program was
implemented to enhance our worldwide customer support activity and to streamline the
product distribution and warehouse operations in North America. This restructuring
program included a reduction in force of 86 positions and the closure of the North
American distribution warehouse as a result of our decision to outsource our North
American distribution operation and the majority of our customer support services.
The reduction in force primarily affected employees in Seattle, Washington and Santa
Clara, California. We incurred $2.1 million in total charges in the fourth quarter of fi scal
1999 as a result of the restructuring, which included severance and related charges associ-
ated with the reduction in force and charges related to vacating leased facilities. During
fi scal 2000, we paid our remaining obligation, and as of December 1, 2000, no restructuring
liability existed.
The following table depicts the activity for the 1999 fourth-quarter restructuring program
through December 1, 2000:
ACCRUED ACCRUED
BALANCE AT BALANCE AT
DECEMBER 3 CASH DECEMBER 1
1999 PAYMENTS 2000
Severance and related charges $ 1,953 $ (1,953) $ —
Lease termination costs 103 (103) —
$ 2,056 $ (2,056) $ —
The 1999 restructuring program that we implemented throughout the second and third
quarters of fiscal 1999 was directly related to the centralization of our worldwide sales
and administrative organizations and the realignment of our Printing Solutions business.
This program included a reduction in force of 198 positions, two of which were executive
positions. The reduction in force primarily affected our European headquarters in
Edinburgh, Scotland and our North American headquarters in San Jose, California.
In addition to severance and related charges associated with the reduction in force, the
restructuring program included charges for vacating leased facilities. These restructuring
actions in the second and third quarters of fiscal 1999 resulted in total charges of $17.6
million, of which approximately $0.1 million were noncash charges. During fiscal 2000,
we paid our remaining obligation related to this restructuring program, and as of
December 1, 2000, no restructuring liability existed.
The following table depicts the activity for the 1999 second-quarter restructuring program
through December 1, 2000:
ACCRUED ACCRUED
BALANCE AT BALANCE AT
DECEMBER 3 CASH DECEMBER 1
1999 PAYMENTS ADJUSTMENTS 2000
Severance and related charges $ 5,207 $ (4,787) $ (420) $ —
Lease termination costs 435 (426) (9) —
Other charges 205 (205) — —
$ 5,847 $ (5,418) $ (429) $ —