Reorganization Costs

2015 and 2014 Actions

On May 4, 2015, we announced our intention to take certain global actions to further streamline our cost structure. We incurred 3,851 of costs in North America related to this plan during the second quarter of 2015.

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.

As a result of the organizational effectiveness program and continued acquisition integration activities, we recognized reorganization charges of $2,385, net of adjustments, and $23,513 during the thirteen weeks ended July 4, 2015 and June 28, 2014, respectively. During the thirteen weeks ended July 4, 2015, the reorganization charges primarily related to employee termination benefits of $4,562. During the thirteen weeks ended June 28, 2014, the reorganization charges primarily related to $15,978 of employee termination benefits, and $7,528 for a previously acquired trade name that we wrote-off as we integrated certain operations under the Ingram Micro brand.

During the twenty-six weeks ended July 4, 2015 and June 28, 2014, we recognized reorganization charges of $6,425, net of adjustments, and $61,937, respectively. The reorganization charges during the twenty-six weeks ended July 4, 2015 primarily related to employee termination benefits of $7,849. During the twenty-six weeks ended June 28, 2014, the reorganization charges primarily related to $54,553 of employee termination benefits, and $7,528 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 current market environment, 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 July 4, 2015 and June 28, 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 July 4, 2015
North America		$	3,828	$	23		$	3,851	$	(962	)	$	2,889
Europe		4,270		539			4,809		(1,719		)	3,090
Asia-Pacific		158		—			158		—			158
Latin America		134		(35		)	99		—			99
Total	116	$	8,390	$	527		$	8,917	$	(2,681	)	$	6,236

Thirteen weeks ended June 28, 2014
North America		$	994	$	7,528		$	8,522	$	—		$	8,522
Europe		14,194		—			14,194		—			14,194
Asia-Pacific		657		7			664		—			664
Latin America		133		—			133		—			133
Total	103	$	15,978	$	7,535		$	23,513	$	—		$	23,513

A summary of the reorganization and expense-reduction program costs incurred in the twenty-six weeks ended July 4, 2015 and June 28, 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

Twenty-six Weeks Ended July 4, 2015
North America		$	4,617	$	56	$	4,673	$	(962	)	$	3,711
Europe		6,228		760		6,988		(1,719		)	5,269
Asia-Pacific		669		—		669		—			669
Latin America		163		464		627		—			627
Total	187	$	11,677	$	1,280	$	12,957	$	(2,681	)	$	10,276

Twenty-six Weeks Ended June 28, 2014
North America		$	7,426	$	7,528	$	14,954	$	—		$	14,954
Europe		44,514		—		44,514		(36		)	44,478
Asia-Pacific		2,011		7		2,018		(115		)	1,903
Latin America		602		—		602		—			602
Total	825	$	54,553	$	7,535	$	62,088	$	(151	)	$	61,937

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 July 4, 2015
2015 and 2014 reorganization actions
Employee termination benefits	$	24,296	$	9,958		(c)	$	(20,912	)	$	(1,678	)	$	11,664
Facility and other costs	—		893			(d)	(208		)	—			685
Subtotal	24,296		10,851				(21,120		)	(1,678		)	12,349		(a)
2013 and prior reorganization actions
Employee termination benefits	118		—				(6		)	—			112
Facility and other costs	2,496		(575		)	(d)	(233		)	(135		)	1,553
Subtotal	2,614		(575		)		(239		)	(135		)	1,665		(b)
	$	26,910	$	10,276			$	(21,359	)	$	(1,813	)	$	14,014


(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 $1,719 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 $575 to 2014 and 2013 reorganization plan liabilities, respectively, recorded in the prior year in North America for lower than expected facility and other costs.