NOOF » Topics » NOTE 18-RESTRUCTURING COSTS

These excerpts taken from the NOOF 10-K filed Jun 12, 2009.

NOTE 18—RESTRUCTURING COSTS

        As described in Note 5—Goodwill and Other Intangible Assets, the Company restructured the Direct-to-Consumer segment's new product operations including the IPTV set-top box initiative during the fourth quarter of fiscal year 2009 as a result of (a) lower than expected subscriber additions for the IPTV test business model during the second half of fiscal year 2009, (b) the significant downturn in economic conditions and related reduction in consumer spending during the second half of fiscal year 2009, and (c) slower than expected development of new product lines. In connection with this restructuring, the Company incurred approximately $0.2 million of early contract termination fees for consulting contracts. In accordance with SFAS No. 146, Accounting for Costs Associated with Exit or Disposal Activities, these costs are reflected in the charge for restructuring and asset impairments other than goodwill line item in the consolidated statements of operations because the Company terminated the contracts in accordance with the contract terms in the fourth quarter of fiscal year 2009. The Company subsequently paid these fees in April 2009 and does not expect to incur additional restructuring charges in future periods.

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Table of Contents


NEW FRONTIER MEDIA, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 18—RESTRUCTURING COSTS




        As described in Note 5—Goodwill and Other Intangible Assets, the Company restructured the Direct-to-Consumer segment's new product operations
including the IPTV set-top box initiative during the fourth quarter of fiscal year 2009 as a result of (a) lower than expected subscriber additions for the IPTV test business model
during the second half of fiscal year 2009, (b) the significant downturn in economic conditions and related reduction in consumer spending during the second half of fiscal year 2009, and
(c) slower than expected development of new product lines. In connection with this restructuring, the Company incurred approximately $0.2 million of early contract termination fees for
consulting contracts. In accordance with SFAS No. 146,
Accounting for Costs Associated with Exit or Disposal Activities, these costs are
reflected in the charge for restructuring and asset impairments other than goodwill line item in the consolidated statements of operations because the Company terminated the contracts in accordance
with the contract terms in the fourth quarter of fiscal year 2009. The Company subsequently paid these fees in April 2009 and does not expect to incur additional restructuring charges in future
periods.



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HREF="#bg40501a_main_toc">Table of Contents





NEW FRONTIER MEDIA, INC. AND SUBSIDIARIES



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)



EXCERPTS ON THIS PAGE:

10-K (2 sections)
Jun 12, 2009

RELATED TOPICS for NOOF:

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