Support.com 2011 Annual Report Download - page 59

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In the third quarter of 2009, we ceased using a portion of our headquarters office in order to align our facilities usage with our current size. As
a result, we impaired approximately 46% of our Redwood City facility. We recorded a restructuring charge of approximately $1.3 million, which
related to the facility impairment and is included in our general and administrative expenses in our consolidated statement of operations. As of
December 31, 2011, the remaining balance on this restructuring obligation was $208,000, which we expect to pay through 2012.
In the first quarter of 2011, we implemented a reduction in our work-from-home workforce impacting a group with a specialized skill-set. We
reduced our workforce by 21 employees, or less than 4% of our agent headcount. All of the affected employees were terminated as of March 17,
2011. As a result, we recorded a restructuring charge of $37,000 for cost of services in the first quarter of 2011. As of December 31, 2011, there was
no remaining balance related to this restructuring obligation. In the third quarter of 2011, we undertook a restructuring of our operations in order to
reduce our ongoing cost structure. We reduced our workforce by eight employees, or less than 1% of our headcount. All of the affected employees
were terminated as of September 27, 2011. As a result, we recorded a restructuring charge of $368,000 in the third quarter of 2011, of which $55,000
was recorded in cost of services, $310,000 in sales and marketing and $3,000 in general and administrative. As of December 31, 2011, the remaining
balance on this restructuring obligation was $2,000, which we expect to pay during the first quarter of 2012.
The following table summarizes activity associated with the restructuring obligation (see also Note 11) and related expenses incurred for the
years ended December 31, 2011 and 2010 (in thousands):
           
Restructuring costs incurred $ 640 $ 1,299 $ 259 $ 2,198
Cash payments (640) (57) — (697)
Non-cash charges — — (259) (259)
Restructuring obligations, December 31, 2009 — 1,242 — 1,242
Restructuring costs incurred — — — —
Cash payments — (581) — (581)
Restructuring obligations, December 31, 2010 — 661 — 661
Restructuring costs incurred 405 65 — 470
Cash payments (403) (518) — (921)
Restructuring obligations, December 31, 2011 $ 2 $ 208 $ — $ 210
(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. No sublease income has been included.
(3) As part of the restructuring costs included in the table above, the Company wrote-off fixed assets related to the facilities that it will no
longer occupy. This was a non-cash charge.
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We adopted the 2000 Omnibus Equity Incentive Plan (the “2000 Plan”). A total of 4,000,000 shares of common stock were initially reserved
for issuance to eligible participants under the 2000 Plan. On January 1 of each year, the number of shares reserved may be increased by the lesser of
2,000,000 shares, 5% of outstanding shares, or an amount determined by the Board of Directors. On January 1, 2010, there were no shares reserved
under the 2000 Plan. In February 2010, this Plan was cancelled and left zero shares available for grant.
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