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Table of Contents
SUPPORTSOFT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
of $600,000 were made against those obligations in 2008. We expect to pay $1.0 million of the remaining balance in the first quarter of 2009, and to pay the
remaining balance of $0.3 million through the second quarter of 2010.
In 2007, the Company reduced its workforce by 41 employees, or approximately 12% of its workforce at that time. As a result, the Company recorded a
restructuring charge of $1.2 million in 2007. The restructuring charge was primarily comprised of severance costs and other personnel-related termination costs.
Restructuring expenses included in the Consolidated Statements of Operations were $82,000 for cost of maintenance, $240,000 for cost of services, $160,000 for
research and development, $679,000 for sales and marketing and $28,000 for general and administrative. Cash payments of $741,000 were made against those
obligations in 2007. The remaining balance of $577,000 was paid in 2008.
In 2006, the Company reduced its workforce by 25 employees, or approximately 10% of its workforce at that time. As a result, the Company recorded a
restructuring charge of $817,000 in 2006. The restructuring charge was comprised of severance costs and other personnel-related termination costs. Restructuring
expenses included in the Consolidated Statements of Operations were $33,000 for cost of maintenance, $163,000 for cost of services, $40,000 for research and
development, $386,000 for sales and marketing and $195,000 for general and administrative. Cash payments of $689,000 were made against those obligations in
2006. The remaining balance of $128,000 was paid in 2007.
The following table summarizes activity associated with the restructuring and related expenses incurred for the years ended December 31, 2008, 2007 and
2006 (in thousands):
Severance (1) Facilities (2) Impairment (3) Total
Restructuring costs incurred in 2005 $ 456 $ 189 $ — $ 645
Cash payments (346) (34) — (380)
Restructuring obligations, December 31, 2005 $ 110 $ 155 — $ 265
Restructuring costs incurred in 2006 817 — — 817
Cash payments (799) (155) — (954)
Restructuring obligations, December 31, 2006 $ 128 $ — — $ 128
Restructuring costs incurred in 2007 1,179 11 — 1,190
Cash payments (731) (10) — (741)
Restructuring obligations, December 31, 2007 576 1 — 577
Restructuring costs incurred in 2008 1,432 360 105 1,897
Cash payments (1,043) (29) — (1,072)
Non-cash charges — — (105) (105)
Restructuring obligations, December 31, 2008 $ 965 $ 332 $ — $ 1,297
(1) Severance costs include those expenses related to severance pay and related employee benefit obligations.
(2) Facilities costs include obligations under non-cancelable leases for facilities that we will no longer occupy, as well as penalties associated with early
terminations of leases and disposal of fixed assets. The related leases are short term in nature expiring in less than one year. No sublease income has been
included.
(3) As part of the 2008 restructuring costs included in the table above, the Company wrote-off $0.1 million in leasehold improvements related to the facilities
that it will no longer occupy. This is a non-cash charge.
72
Source: SUPPORTSOFT INC, 10-K, March 11, 2009