Ingram Micro 2010 Annual Report Download - page 61

associated with the reorganization actions for both North America and EMEA and costs associated with the
acquisition and integration of VAD and Vantex in Asia Pacific. Our reorganization costs incurred in 2008, which
totaled $17,029 ($1,838 in North America, $14,900 in EMEA and $291 in Asia Pacific) were comprised of:
employee termination benefits for workforce reductions of approximately 555 employees (220 in North America,
280 in EMEA and 55 in Asia Pacific); facility consolidations in EMEA; and other costs related to contract
terminations for equipment leases in North America. In 2008, other costs associated with the reorganization actions
of $1,544 in EMEA charged to SG&A expenses, comprised primarily of consulting, legal and other expenses
associated with the reorganization actions.
The remaining liabilities and 2010 activities associated with these actions are summarized in the table below:
Outstanding
Liability at
January 2,
2010
Amounts Paid
and Charged
Against the
Liability Adjustments
Remaining
Liability at
January 1,
2011
Employee termination benefits ........... $ 1,717 $(1,648) $ (69) $ —
Facility costs ........................ 11,649 (4,721) 1,108 8,036
Other costs .......................... 606 (419) (187) —
$13,972 $(6,788) $ 852 $8,036
Adjustments reflected in the table above include an increase in 2010 to reorganization liabilities recorded in
prior years totaling $1,137, consisting of $1,354 in North America primarily for higher than expected costs
associated with exited facilities, partially offset by $183 in EMEA for lower than expected costs associated with
employee termination benefits and facility consolidations and $34 in Asia Pacific for lower than expected costs
associated with employee termination benefits. Adjustments also include the net foreign currency impact of
weakening foreign currencies, which decreased the U.S. dollar liability by $285. We expect the remaining liabilities
associated with facility costs to be substantially utilized by the end of 2014.
Prior to 2006, we 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
2010 activities associated with these actions are summarized in the table below:
Outstanding
Liability at
January 2,
2010
Amounts Paid
and Charged
Against the
Liability Adjustments
Remaining
Liability at
January 1,
2011
Facility costs ........................ $5,087 $(551) $267 $4,803
Adjustments reflected in the table above includes the net foreign currency impact of strengthening foreign
currencies, which increased the U.S. dollar liability by $267. We expect the remaining liabilities associated with
facility costs to be fully utilized by the end of 2015.
Note 4 — Acquisitions and Dispositions
In 2010, we acquired all of the outstanding shares of interAct BVBA and Albora Soluciones SL in our EMEA
region and the assets and liabilities of Asiasoft Hong Kong Limited in our Asia Pacific region. These acquisitions
further strengthen our capabilities in virtualization, security and middleware solutions and enterprise computing.
These entities were acquired for an aggregate cash price of $8,329, which has been preliminarily allocated to the
assets acquired and liabilities assumed based on their estimated fair values on the transaction dates, including
identifiable intangible assets of $6,044, primarily related to vendor and customer relationships with estimated
useful lives of 10 years and deferred tax liabilities of $1,840 related to the intangible assets, none of which are
deductible for income tax purposes.
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INGRAM MICRO INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)