Ingram Micro 2008 Annual Report Download - page 65

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a subsidiary and for the deconsolidation of a subsidiary. FAS 160 also clarifies that changes in a parent’s ownership
interest in a subsidiary that do not result in deconsolidation are equity transactions if the parent retains its
controlling financial interest and requires that a parent recognize a gain or loss in net income when a subsidiary is
deconsolidated. The gain or loss will be measured using the fair value of the noncontrolling equity investment on the
deconsolidation date. Moreover, FAS 160 includes expanded disclosure requirements regarding the interests of the
parent and its noncontrolling interest. FAS 160 is effective for the Company beginning January 4, 2009 (the first day
of fiscal 2009). Early adoption is prohibited, but upon adoption FAS 160 requires the retroactive presentation and
disclosure related to existing minority interests. The Company does not expect the provisions of FAS 160 to have a
material impact on the Company’s consolidated financial position, results of operations or cash flows.
In February 2007, the Financial Accounting Standards Board issued Statement of Financial Accounting
Standards No. 159, “The Fair Value Option for Financial Assets and Liabilities” (“FAS 159”). FAS 159 permits
companies to make an election to carry certain eligible financial assets and liabilities at fair value, even if fair value
measurement has not historically been required for such assets and liabilities under U.S. GAAP. FAS 159 became
effective for the Company beginning December 30, 2007 (the first day of fiscal 2008). The Company did not elect
the fair value option to measure certain financial instruments. The adoption of the provisions of FAS 159 did not
have a material impact on the Company’s consolidated financial position, results of operations or cash flows.
In November 2007, the Emerging Issues Task Force released Issue No. 07-01 “Accounting for Collaborative
Arrangements” (“EITF 07-01”). EITF 07-01 requires collaborators to present the results of activities for which they
act as the principal on a gross basis and report any payments received from (made to) other collaborators based on
other applicable GAAP or, in the absence of other applicable GAAP, based on analogy to authoritative accounting
literature or a reasonable, rational, and consistently applied accounting policy election. EITF 07-01 also clarified
the determination of whether transactions within a collaborative arrangement are part of a vendor-customer (or
analogous) relationship that are subject to EITF Issue No. 01-9 “Accounting for Consideration Given by a Vendor to
a Customer.” EITF 07-01 is effective for the Company beginning January 4, 2009 (the first day of fiscal 2009). The
Company does not expect the provisions of EITF 07-01 to have a material impact on the Company’s consolidated
financial position, results of operations or cash flows.
Note 3 — Reorganization Costs
Starting the second quarter of 2008, the Company announced cost-reduction programs, resulting in the
rationalization and re-engineering of certain roles and processes primarily at the regional headquarters in EMEA
and targeted reductions of primarily administrative and back-office positions in North America. Total costs of the
actions incurred in EMEA were $16,444, comprised of $14,900 of reorganization costs related to employee
termination benefits for workforce reductions of approximately 280 employees and facility consolidations, as well
as $1,544 of other costs charged to SG&A expenses, comprised of consulting, legal and other expenses associated
with implementing the reduction in workforce. In North America, the total costs of the actions were $2,368, all of
which were reorganization costs related to employee termination benefits for workforce reductions of approxi-
mately 220 employees and other costs related to contract terminations for equipment leases. Also during 2008, the
Company announced cost-reduction programs related to its Asia-Pacific operations, incurring reorganization costs
of $291, primarily related to employee termination benefits of approximately 55 employees.
55
INGRAM MICRO INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)