Circuit City 2002 Annual Report Download - page 37

The aggregate maturities of long-term debt outstanding at December 31, 2002 are as follows (in thousands):
2003 2004 2005 2006 2007 After 2007
---- ---- ---- ---- ---- ----------
Maturities $1,250 $1,263 $1,250 $1,248 $1,261 $12,497
7. RESTRUCTURING AND OTHER CHARGES
Severance and Asset Other
Personnel Costs Write-downs exit costs Total
--------------- ------------ ---------- -----
Charged to expense in 2002 $1,870 $525 $1,656 $4,051
Amounts utilized 1,693 525 851 3,069
------- ---- ---- ------ -----
Accrued at December 31, 2002 $177 - $805 $982
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8. SHAREHOLDERS' EQUITY
recognized in the Consolidated Statement of Operations as this hedge was determined to be ineffective. The
Company considers the credit risk related to the interest rate collar to be low because such instrument was
entered into with a financial institution having a high credit rating and is generally settled on a net basis.
In connection with the completion of a new facility in the United Kingdom, during fiscal 2002 the Company
implemented a plan to consolidate the activities of its three United Kingdom locations into the new facility. The
restructuring plan resulted in a pre-tax charge, included in "Restructuring and other charges", of $4.1 million. Of
the total charge, $0.5 million was non-cash for the impairment in carrying value of fixed assets, $1.9 million was
for recruitment, staff relocation costs and severance and benefits for approximately 150 terminated employees
and $1.7 million was for other exit costs, primarily facilities closing costs and lease termination costs. Through
December 31, 2002, cash charges of approximately $2.5 million had been expended.
The following table summarizes the components of the restructurings and other charges, the cash payments, non-
cash activities, and the remaining accrual as of December 31, 2002:
During the second quarter of 2002 the Company recorded a non-recurring write-off of $13.2 million resulting
from the Company's decision to discontinue the development of internal
-
use computer software.
As required by law, certain foreign subsidiaries must retain a percentage of shareholders' capital in the respective
company. Accordingly, a portion of retained earnings is restricted and not available for distribution to
shareholders. Such amount at December 31, 2002 was not material.
In May 1998 the Board of Directors authorized a share repurchase program to acquire up to 1,350,000
(subsequently increased to 4,350,000) common shares on the open market. The Company purchased an aggregate
of 1,133,500 shares during 2000 at an aggregate cost of $9.8 million.
Stock Option Plans - The Company has three fixed option plans which reserve shares of common stock for
issuance to key employees, directors, consultants and advisors to the Company. The following is a description of
these plans:
The 1995 Long-term Stock Incentive Plan - This plan allows the Company to issue qualified, non-
qualified
and deferred compensation stock options, stock appreciation rights, restricted stock and restricted unit grants,
performance unit grants and other stock based awards authorized by the Compensation Committee of the Board
of Directors. Options issued under this plan expire ten years after the options are granted and generally become