eTrade 2002 Annual Report Download - page 162

Table of Contents
Index to Financial Statements
Other Liabilities: Original 2001 Facility Restructuring Reserves Rollforward
The rollforward of our original 2001 facility restructuring reserve, which is reflected in accounts payable, accrued and other liabilities, is
presented below (in thousands):
Facility Consolidation Asset Write-Off Other Total
2001 original facility restructuring and other nonrecurring charges
recorded in August 2001
$ 131,755 $ 49,442 $ 15,844 $ 197,041
Adjustments and additional charges (3,286 ) 3,090 5,920 5,724
Total 2001 facility restructuring and other nonrecurring charges
recorded in fiscal 2001
128,469 52,532 21,764 202,765
Cash payments (7,534 ) (49 ) (8,846 ) (16,429 )
Non-cash charges (38,570 ) (52,483 ) (5,740 ) (96,793 )
Restructuring liabilities at December 31, 2001 82,365 — 7,178 89,543
2002 activity on original 2001 facility restructuring reserve:
Adjustments and additional charges recorded in fiscal 2002 7,345 488 3,552 11,385
Cash payments (17,894 ) (18 ) (9,627 ) (27,539 )
Non-cash charges (2,693 ) (470 ) (70 ) (3,233 )
Restructuring liabilities at December 31, 2002 $ 69,123 $ — $ 1,033 $ 70,156
Facility Consolidation
The 2001 original facility restructuring charge included $128.5 million related to facility consolidation, representing the undiscounted value of
ongoing lease commitments offset by anticipated third party sublease revenues. The charge also includes a pre-tax write-off (non-cash charges)
of leasehold improvements and furniture and fixtures totaling $38.6 million. The charge did not include relocation costs to be incurred over the
next 12 months and expensed as incurred.
In fiscal 2002, the Company recognized an additional $7.3 million facility consolidation expense as a result of updated estimates of sublease
income and sublease start dates, driven by economic circumstances. The overall fiscal 2002 net increase in the facility consolidation reserve
reflects lower than estimated sublease rental income combined with longer than estimated periods to sublet vacated facilities. The increase also
reflects the Company’ s negotiations in fiscal 2002 with a lessor on a significant contractual lease obligation that calls for a one time $30.0
million payment by the Company in fiscal 2003 to facilitate the sale by the lessor of the property. In exchange, the Company expects to receive
full release from its future lease obligations. The net increase in the facility consolidation reserve is partially offset by the decision to retain
usage of certain facilities, resulting in the elimination of the facility obligation originally estimated for these facilities as well as the
corresponding estimated sublease income.
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2003. EDGAR Online, Inc.