Circuit City 2004 Annual Report Download - page 51

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2005 2006 2007 2008 2009 After 2009
---- ---- ---- ---- ---- ----------
Maturities $10,271 $565 $494 $334 $229 $7,017
Years ended December 31, 2004 2003 2002
------------------------ ---- ---- ----
2004 United States Streamlining Plan $3,743
54
2003 United States Warehouse Consolidation Plan 642 $713
2002 United Kingdom Consolidation Plan 467 2,173 $4,051
Software development write-off 13,243
Litigation settlement on software development (1,272)
Other severance and exit costs 2,504 112 -
----- --- ------
Total restructuring and other charges $7,356 $1,726 $17,294
====== ====== =======
Severance and Asset Other
Personnel Costs Write-downs Exit Costs Total
--------------- ----------- ---------- -----
Charged to expense in 2004 $3,153 $483 $107 $3,743
Amounts utilized (2,520) (483) (95) (3,098)
accordingly, the aggregate fair value of the collar was recorded as a liability. The changes in the fair value
of this derivative for the years ended December 31, 2004, 2003 and 2002 have been 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.
The aggregate maturities of long
-
term debt outstanding at December 31, 2004 are as follows (in thousands):
8.
RESTRUCTURING AND OTHER CHARGES
The Company periodically assesses its operations to ensure that they are efficient, aligned with market conditions
and responsive to customer needs. During the years ended December 31, 2004, 2003 and 2002, management
approved and implemented restructuring actions which included workforce reductions and facility consolidations.
The following table summarizes the amounts recognized by the Company as restructuring and other charges for
the periods presented (in thousands):
2004 United States Streamlining Plan
In the first quarter of 2004, the Company implemented a plan to streamline the back office and warehousing
operations in its United States computer businesses. The Company recorded $3.7 million of costs related to this
plan, including $3.2 million for severance and benefits for approximately 200 terminated employees and
$483,000 of non
-
cash costs for impairment of the carrying value of fixed assets.
The following table summarizes the components of the restructuring charges, the cash payments, non-cash
activities, and the remaining accrual as of December 31, 2004 (in thousands):