Circuit City 2011 Annual Report Download - page 49

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Long-term debt consists of (in thousands):
The aggregate maturities of long-term debt outstanding at December 31, 2011 are as follows (in thousands):
The following table details the associated liabilities incurred related to this plan (in thousands):
Audit Committee Investigation and Gilbert Fiorentino’s Resignation and Settlement and Related Matters.
In January and February 2011 the Company received anonymous whistleblower allegations concerning the Company’
s Miami Florida
operations involving the actions of Mr. Gilbert Fiorentino, then the Chief Executive of the Company’
s Technology Products Group. In response
to the allegations, the Company commenced an internal investigation of the whistleblower allegations, which was conducted by the Company’
s
Audit Committee of the Board of Directors with the assistance of independent counsel.
On April 18, 2011, following the independent investigation, the Company delivered a Cause Notice to Mr. Fiorentino pursuant to the terms of
his Employment Agreement dated October 12, 2004. The Cause Notice advised Mr. Fiorentino that the Company intended to terminate him for
“Cause” (
as defined in the Employment Agreement) at a meeting of its Executive Committee scheduled for May 3, 2011, at which meeting Mr.
Fiorentino and his counsel could appear, and that Mr. Fiorentino was being placed on administrative leave pending the outcome of that meeting.
In the Cause Notice, the Company advised Mr. Fiorentino that the Audit Committee investigation had identified grounds to terminate him for
Cause under his Employment Agreement, and set forth the following findings by the Audit Committee constituting such grounds:
Table of Contents
December 31,
2011
2010
Capitalized equipment lease obligations
$
9,685
$
10,041
Less: current portion
2,552
2,655
$
7,133
$
7,386
2012
2013
2014
2015
2016
Maturities
$
2,552
$
2,524
$
2,229
$
1,997
$
383
7.
REORGANIZATION COSTS
In 2010 the Company’s WStore France subsidiary incurred integration related charges of approximately $3.7 million for severances and other
costs related to the merger of its Misco and WStore operations. These costs were recorded in selling, general and administrative expenses within
the Technology Products segment. Other costs totaling $0.3 million were recorded in selling, general and administrative expenses within the
Corporate and other segment.
Severance
and
Personnel
Costs
Other Exit Costs
Total
Balance January 1, 2010
$
-
$
-
$
-
Charged to expense
2,975
1,030
4,005
Paid or otherwise settled
(1,923
)
(946
)
(2,869
)
Balance December 31, 2010
1,052
84
1,136
Charged to expense
-
-
-
Paid or otherwise settled
(1,052
)
(84
)
(1,136
)
Balance December 31, 2011
$
-
$
-
$
-
8
.
SETTLEMENT AGREEMENT
46