Ingram Micro 2008 Annual Report Download - page 66

The reorganization costs and related payment activities in 2008, and the remaining liability related to these
detailed actions are summarized as follows:
Reorganization
Costs
Amounts Paid
and Charged
Against the
Liability Adjustments
Remaining
Liability at
January 3,
2009
Employee termination benefits ......... $14,588 $(10,477) $— $4,111
Facility costs ...................... 2,571 (15) — 2,556
Other costs ........................ 400 — — 400
$17,559 $(10,492) $— $7,067
The Company expects the remaining liabilities for the employee termination benefits, facility costs and other
costs to both be substantially utilized by the end of 2018.
Prior to 2006, the Company launched other outsourcing and optimization plans to improve operating
efficiencies and to integrate past acquisitions. While these reorganization actions were completed prior to the
periods included herein, future cash outlays are required for future lease payments related to exited facilities. The
remaining liabilities and payment activities in 2008 are summarized in the table below:
Outstanding
Liability at
December 29,
2007
Amounts Paid
and Charged
Against the
Liability Adjustments
Remaining
Liability at
January 3,
2009
Facility costs ....................... $3,912 $(795) $(530) $2,587
The Company expects the remaining liability for facility costs to be fully utilized by the third quarter of 2015.
Included in the table above is a credit adjustment to reorganization cost of $530 that the Company recorded in
North America for lower than expected costs to settle lease obligations related to previous actions. In 2007, the
Company recorded a credit adjustment to reorganization costs of $1,091 consisting of $1,066 in North America for
lower than expected costs associated with employee termination benefits and facility consolidations related to actions
taken in prior years and $25 in EMEA for lower than expected costs associated with employee termination benefits
related to actions taken in prior years. In 2006, the Company recorded a credit adjustment to reorganization costs of
$1,727, consisting of: (i) $1,676 in North America related to detailed actions taken in prior years for which the
Company reversed remaining reserves for a portion of a restructured leased facility that management elected to
reoccupy during 2006; (ii) $34 in EMEA related to detailed actions taken in prior years for which the Company
incurred lower than expected costs associated with employee termination benefits and facility consolidations; and
(iii) $17 in Asia-Pacific related to detailed actions taken in prior years for which the Company incurred lower than
expected costs associated with a facility consolidation.
Note 4 — Acquisitions and Disposition
In 2008, the Company acquired Eurequat SA in France, Intertrade A.F. AG in Germany, Paradigm Distribution
Ltd. in the United Kingdom and Cantechs Group in China, all distributors offering value-added distribution of
automatic identification and data capture/point of sale (“AIDC/POS”) technologies and/or mobile data to solutions
providers and system integrators. These acquisitions further expand the Company’s value-added distribution of
AIDC/POS solutions in EMEA and in Asia-Pacific. These entities were acquired for an aggregate cash price of
$12,347, including related acquisition costs, plus an estimated earn-out of $882 to be paid in 2009, which has been
preliminarily allocated to the assets acquired and liabilities assumed based on their estimated fair values on the
transaction date, including identifiable intangible assets of $7,586, primarily related to vendor and customer
relationships with estimated useful lives of 10 years. The resulting goodwill recorded was $3,608 and $1,584 in
EMEA and Asia-Pacific, respectively.
56
INGRAM MICRO INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)