CompUSA 2007 Annual Report Download - page 93

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50
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 year ended December 31, 2005, 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):
Years ended December 31, 2005
2003 United States warehouse consolidation plan $122
2002 United Kingdom consolidation plan (93)
Litigation settlements 300
Other severance and exit costs 3,822
Total restructuring and other charges $4,151
2003 United States Warehouse Consolidation Plan
In the fourth quarter of 2003, the Company implemented a plan to consolidate the warehousing facilities in its United States
computer supplies business. The Company recorded $122,000 of additional severance costs in 2005 related to this plan.
2002 United Kingdom Consolidation Plan
In 2002 the Company implemented a restructuring plan to consolidate the activities of three United Kingdom locations into
a new facility constructed for the Company. During 2005 the Company recorded $93,000 of gain related to this plan as
actual costs were less than anticipated.
Litigation Settlements
In May 2006, the Company entered into a stipulation of settlement with all of the plaintiffs who had filed derivative
complaints in 2005 alleging misconduct in connection with the Company’s restatement of its 2004 financial results (see
Note 10).
Other Severance and Exit Costs
The Company recorded restructuring costs of $3.8 million during 2005 in Europe in connection with workforce reductions and
facility exit costs. In 2005, these costs were comprised of employee severance costs.
The following table summarizes the components of the accrued restructuring charges and the movements within these
components during 2007, 2006 and 2005 (in thousands). The balance of the restructuring reserves is included in the
Consolidated Balance Sheets within accrued expenses and other current liabilities.
Severance and
Personnel Costs
Other
Exit Costs
Total
Balance as of January 1, 2005 $633 $1,396 $2,029
Charged to expense in 2005 3,945 (93) 3,852
Amounts utilized (4,325) (1,038) (5,363)
Balance at December 31, 2005 253 265 518
Amounts utilized (253) (176) (429)
Balance at December 31, 2006 $0 $89 $89
Amounts utilized (0) (89) (89)
Balance at December 31, 2007 $0 $0 $0