Stamps.com 2002 Annual Report Download - page 62

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Table of Contents
STAMPS.COM INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The total amount of restructuring charges for the years ended December31, 2002, 2001 and 2000 were approximately $0, $26.0million and
$11.5million respectively. A summary of the restructuring and cost cutting efforts for the years ended December31, 2002, 2001 and 2000 is set
forth below (in thousands):
2000 Provision Utilized Adjustment Remaining
Provision
December 31, 2000
Employee severance costs $ 3,093 $ 3,093 $ — $ —
Contract exit fees 6,154 6,154 — —
Fixed asset disposals 1,233 1,233 — —
Facility lease expenses 923 923 — —
Other 72 72 — —
Total $ 11,475 $ 11,475 $ — $ —
December 31, 2001
Employee severance costs $ 4,623 $ 4,650 $ (27 ) $ —
Contract exit fees 4,247 5,975 (1,728 ) —
Fixed asset disposals 7,783 7,783 — —
Facility lease expenses 8,261 5,644 — 2,617
Write-off of investment in EncrypTix 1,000 1,000 — —
Other 60 60 — —
Total $ 25,974 $ 25,112 $ (1,755 ) $ 2,617
December 31, 2002
Employee severance costs $ — $ — $ — $ —
Contract exit fees — — — —
Fixed asset disposals — — — —
Facility lease expenses 2,617 2,329 — 288
Write-off of investment in EncrypTix — — — —
Other — — — —
Total $ 2,617 $ 2,329 $ — $ 288
Total adjustments to the 2001 provision related to cost cutting efforts consisting of a charge of $27,000 in restructuring employee severance,
fixed asset write-offs and lease obligations for discontinued office space, and a credit of $1.7million related to a better-than-expected outcome
on the termination of certain contractual arrangements.
The calculation of the restructuring costs only includes those costs for which the Company will be unable to recognize any future benefit. In
addition, the calculation of the restructuring costs requires management to make estimates and assumptions that affect the amounts reported in
the consolidated financial statements. Actual results could differ from management’ s assumptions and those differences may be material to the
consolidated financial statements.
13.Related Party Transactions
In February 2000, John M. Payne (former Chairman of the Board, Chief Executive Officer and director) purchased 187,000 shares of the
Company’ s common stock on the open market for an aggregate purchase price of approximately $6.0 million. Mr. Payne purchased the shares
on margin and the margin account was secured by a pledge of 1,467,500 shares of the Company’ s common stock held by Mr.Payne. As of
October 31, 2000, Mr.Payne’ s total indebtedness under the margin account was approximately $6.7million, which amount consists
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