Reorganization Costs

2015 and 2014 Actions

On February 13, 2014 we announced a plan to proceed with a global organizational effectiveness program that involved aligning and leveraging our infrastructure globally with our evolving businesses, opportunities and resources, and de-layering and simplifying the organization. On May 4, 2015, we announced our intention to take certain global actions to further streamline our cost structure.

As a result of these actions, we recognized net reorganization charges of $18,958, and $17,300 during the thirteen weeks ended October 3, 2015 and September 27, 2014, respectively, which primarily related to employee termination benefits of $18,139 and $17,195 in the respective periods.

During the thirty-nine weeks ended October 3, 2015 and September 27, 2014, we recognized net reorganization charges of $29,234, and $79,237, respectively. The reorganization charges during the thirty-nine weeks ended October 3, 2015 primarily related to employee termination benefits of $29,816. During the thirty-nine weeks ended September 27, 2014, the reorganization charges primarily related to $71,749 of employee termination benefits, and $7,541 for a previously acquired trade name that we wrote-off as we integrated certain operations under the Ingram Micro brand.

2013 and Prior Actions

In 2013, we incurred net reorganization costs primarily relating to a number of key initiatives, including: (a) the integration of BrightPoint operations into Ingram Micro, resulting in headcount reductions and the closure of certain BrightPoint facilities, and the exit of a portion of our Australian offices in Asia-Pacific; (b) headcount reductions in Europe and Asia-Pacific to respond to the market environment at such time, and (c) the transition of certain transaction-oriented service and support functions to shared service centers.

A summary of the reorganization and expense-reduction program costs incurred in the thirteen weeks ended October 3, 2015 and September 27, 2014, are as follows:



	Reorganization Costs
	Headcount Reduction	Employee Termination Benefits		Facility and Other Costs		Total Reorganization Costs		Adjustments to Prior Year Costs			Total Costs

Thirteen weeks ended October 3, 2015
North America		$	8,631	$	—	$	8,631	$	(250	)	$	8,381
Europe		5,663		1,186		6,849		(117		)	6,732
Asia-Pacific		3,315		—		3,315		—			3,315
Latin America		530		—		530		—			530
Total	497	$	18,139	$	1,186	$	19,325	$	(367	)	$	18,958

Thirteen weeks ended September 27, 2014
North America		$	5,289	$	14	$	5,303	$	—		$	5,303
Europe		11,070		—		11,070		—			11,070
Asia-Pacific		322		91		413		—			413
Latin America		514		—		514		—			514
Total	97	$	17,195	$	105	$	17,300	$	—		$	17,300

A summary of the reorganization and expense-reduction program costs incurred in the thirty-nine weeks ended October 3, 2015 and September 27, 2014, are as follows:



	Reorganization Costs
	Headcount Reduction	Employee Termination Benefits		Facility and Other Costs		Total Reorganization Costs		Adjustments to Prior Year Costs			Total Costs

Thirty-nine Weeks Ended October 3, 2015
North America		$	13,248	$	56	$	13,304	$	(1,212	)	$	12,092
Europe		11,891		1,946		13,837		(1,836		)	12,001
Asia-Pacific		3,984		—		3,984		—			3,984
Latin America		693		464		1,157		—			1,157
Total	568	$	29,816	$	2,466	$	32,282	$	(3,048	)	$	29,234

Thirty-nine Weeks Ended September 27, 2014
North America		$	12,714	$	7,541	$	20,255	$	—		$	20,255
Europe		55,584		—		55,584		(36		)	55,548
Asia-Pacific		2,334		98		2,432		(115		)	2,317
Latin America		1,117		—		1,117		—			1,117
Total	922	$	71,749	$	7,639	$	79,388	$	(151	)	$	79,237

The remaining liabilities and 2015 activities associated with the aforementioned actions are summarized in the table below:



	Reorganization Liability
	Remaining Liability at January 3, 2015		Expenses (Income), Net				Amounts Paid and Charged Against the Liability			Foreign Currency Translation			Remaining Liability at October 3, 2015
2015 and 2014 reorganization actions
Employee termination benefits	$	24,296	$	27,980		(c)	$	(30,319	)	$	(2,519	)	$	19,438
Facility and other costs	—		2,079			(d)	(2,079		)	—			—
Subtotal	24,296		30,059				(32,398		)	(2,519		)	19,438		(a)
2013 and prior reorganization actions
Employee termination benefits	118		—				(118		)	—			—
Facility and other costs	2,496		(825		)	(d)	(958		)	(196		)	517
Subtotal	2,614		(825		)		(1,076		)	(196		)	517		(b)
	$	26,910	$	29,234			$	(33,474	)	$	(2,715	)	$	19,955


(a)	We expect the remaining liabilities to be substantially utilized by the end of 2015.


(b)	We expect the remaining liabilities to be substantially utilized by the end of 2016.


(c)	Adjustments reflected in the table above include a reduction of $1,836 to reorganization liabilities recorded in the prior year in Europe for lower than expected employee termination benefits.


(d)	Adjustments reflected in the table above include reductions of $387 and $825 to 2014 and 2013 reorganization plan liabilities, respectively, recorded in the prior year in North America for lower than expected facility and other costs.