Stamps.com 2002 Annual Report Download - page 61

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Table of Contents
STAMPS.COM INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
11.Commitments and Contingencies
Capital and Operating Leases
The Company leases certain equipment under capital lease arrangements expiring on various dates through 2002 (per schedule below). As of
December 31, 2002, the Company does not have any obligation for equipment under capital lease. Included in property and equipment are the
following assets held under capital lease at December31 (in thousands):
2002 2001
Computer equipment $ 1,135 $ 1,135
Accumulated amortization (1,135 ) (972 )
$ — $ 163
Following is a schedule of future minimum lease payments under operating leases at December 31, 2002 (in thousands):
Operating
Years ending December 31:
2003 $ 1,743
2004 632
$ 2,375
Total rent expense from continuing operations for the years ended December31, 2002, 2001 and 2000 were $796,000, $1.1million and
$3.6million, respectively.
The Company continues to sublet building spaces vacated as a result of the reduction in workforce. Management believes that tenants will
reduce operating cash outflow by $1.0 million and $323,000 for years 2003 and 2004, respectively.
12.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-17
2003. EDGAR Online, Inc.