Stamps.com 2001 Annual Report Download - page 60

Download and view the complete annual report

Please find page 60 of the 2001 Stamps.com annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 83

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83

STAMPS.COM INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
Following is a schedule of future minimum lease payments under capital and operating leases at December 31, 2001 (in thousands):
Capital Operating
------- ---------
Years ending December 31:
2002............................................................. $107 $2,924
2003............................................................. -- 2,804
2004............................................................. -- 1,072
---- ------
107 $6,800
======
Less amount representing interest................................... (9)
----
Present value of net minimum capital lease payments ($98
payable currently)......................................... $ 98
====
Total rent expense from continuing operations for the years ended December 31, 2001, 2000 and 1999 were $1,128,000, $3,577,000 and
$751,000, respectively.
The Company continues to sublet building spaces vacated as a result of the reduction in workforce and is currently marketing vacated space.
Management believes that tenants will be secured for unoccupied facilities that will reduce operating lease expenses by $1,523,000, $1,707,000
and $663,000 for years 2002, 2003 and 2004, respectively.
11. Restructuring
In October 2000, the Company's management approved and implemented a restructuring plan as part of a move to streamline operations, reduce
infrastructure and overhead and eliminate excess and duplicative facilities. As a result, the Company went through three rounds of workforce
reductions which reduced its total number of employees by approximately 400 from locations and departments across the Company.
In addition to the reduction of employees, the Company's restructuring plan includes costs associated with the termination of fixed-cost
marketing deals and the redeployment of sales and marketing expenditures to programs that have a higher return on investment, losses on the
disposition and discontinuation of certain fixed assets, the estimated rent and expenses for unoccupied facilities between the reduction in force
date and the estimated date of occupancy by a sublet tenant and the write-off of an investment in EncrypTix.
F-15
2002. EDGAR Online, Inc.