Minimum future annual rental payments under non-cancelable operating leases having original
terms in excess of one year are as follows (in thousands):
| |
|
|
|
|
| |
|
Operating |
|
| |
|
Lease |
|
| |
|
Payments |
|
Fiscal year ended December 31, |
|
|
|
|
2010 |
|
$ |
7,225 |
|
2011 |
|
|
3,631 |
|
2012 |
|
|
1,752 |
|
2013 |
|
|
1,071 |
|
2014 |
|
|
180 |
|
Thereafter |
|
|
— |
|
|
|
|
|
Total |
|
$ |
13,859 |
|
|
|
|
|
Minimum rental payments under operating leases are recognized on a straight-line basis over
the term of the lease including any periods of free rent. Total rental expense under operating
leases approximated $10.2 million and $10.8 million for the years ended December 31, 2009 and 2008,
respectively. Certain landlord required deposits are secured by letters of credit.
The Company receives municipal tax abatements in certain locations. During 2004 the Company
received notice from a municipality that it did not satisfy certain criteria necessary to maintain
the abatements. In December 2006 the Company received notice that the municipal authority planned
to make an adjustment to the Company’s tax abatement. The
Company has disputed the adjustment as of December 31, 2009, but
if the dispute is not resolved favorably, additional property taxes of approximately $1.7 million
could be assessed against the Company.
The Company is subject to claims in the ordinary course of business, including claims of
alleged infringement by the Company or its subsidiaries of the patents, trademarks and other
intellectual property rights of third parties. The Company does not believe any of such claims will
materially adversely affect its financial condition or results of operations.
10. Segment and Geographic Information
The Company is organized into three operating segments: PFSweb is an international provider of
integrated eCommerce and business process outsourcing solutions and operates as a service fee
business; Supplies Distributors is a master distributor of primarily IPS products; and eCOST is a
multi-category online discount retailer of new, “close-out” and recertified brand-name merchandise.
| |
|
|
|
|
|
|
|
|
| |
|
Year Ended |
|
|
Year Ended |
|
| |
|
December 31, |
|
|
December 31, |
|
| |
|
2009 |
|
|
2008 |
|
Revenues (in thousands): |
|
|
|
|
|
|
|
|
PFSweb |
|
$ |
92,047 |
|
|
$ |
129,910 |
|
Supplies Distributors |
|
|
183,008 |
|
|
|
230,710 |
|
eCOST |
|
|
84,607 |
|
|
|
99,822 |
|
Eliminations |
|
|
(7,163 |
) |
|
|
(8,599 |
) |
|
|
|
|
|
|
|
|
|
$ |
352,499 |
|
|
$ |
451,843 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations (in thousands): |
|
|
|
|
|
|
|
|
PFSweb |
|
$ |
(7,276 |
) |
|
$ |
(69 |
) |
Supplies Distributors |
|
|
5,365 |
|
|
|
5,866 |
|
eCOST |
|
|
(1,125 |
) |
|
|
(19,087 |
) |
Eliminations |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
$ |
(3,036 |
) |
|
$ |
(13,290 |
) |
|
|
|
|
|
|
|
73