Stamps.com 2003 Annual Report Download - page 57

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Table of Contents
STAMPS.COM INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
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.
There were no restructuring charges for the years ended December 31, 2003 and 2002. The total amount of restructuring charges for the year
ended December 31, 2001 was approximately $26.0 million. A summary of the restructuring and cost cutting efforts for the years ended
December 31, 2003, 2002 and 2001 is set forth below (in thousands):
F-18
2001 Provision Utilized Adjustment Remaining Provision
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