NOTE 6 — ACQUISITION, INTEGRATION AND RESTRUCTURING EXPENSES

Acquisition, integration and restructuring expenses are comprised of costs related to the fiscal 2018 acquisition of TS as well as restructuring costs related to the Global Business Optimization Program which was initiated in fiscal 2019.

Acquisition of TS

Acquisition, integration and restructuring expenses related to the acquisition of TS are primarily comprised of restructuring costs, IT related costs, professional services, transaction related costs and other costs. Restructuring costs are comprised of severance and facility exit costs. IT related costs consist primarily of data center and non-ERP application migration and integration costs, as well as, IT related professional services. Professional services are primarily comprised of integration related activities, including professional fees for project management, accounting, tax and other consulting services. Transaction related costs primarily consist of investment banking fees, legal expenses and due diligence costs incurred in connection with the completion of the transaction. Other costs includes payroll related costs including retention, stock compensation, relocation and travel expenses incurred as part of the integration of TS. For the fiscal year ended January 31, 2019, other costs are partially offset by the gain recorded related to the settlement agreement with Avnet (see Note 5 – Acquisitions for further discussion). The Company does not expect to incur additional acquisition, integration and restructuring expenses related to the acquisition of TS.

Acquisition, integration and restructuring expenses for the years ended January 31, 2019, 2018 and 2017 related to the acquisition of TS are comprised of the following:



Year ended January 31:	2019		2018		2017
(in thousands)
Restructuring costs	$	19,846	$	35,070	$	—
IT related costs	13,222		18,260		—
Professional services	5,967		42,588		14,338
Transaction related costs	1,728		20,167		12,083
Other costs	4,616		20,187		2,545
Total	$	45,379	$	136,272	$	28,966

During the years ended January 31, 2019 and 2018, the Company recorded restructuring costs in the Americas of $3.9 million and $16.1 million, respectively. During the years ended January 31, 2019 and 2018, the Company recorded restructuring costs in Europe of $15.9 million and $19.0 million, respectively. The accrued restructuring charges are included in “accrued expenses and other liabilities” in the Consolidated Balance Sheet.

Restructuring activity during the years ended January 31, 2019 and 2018 related to the acquisition of TS is as follows:



	Severance			Facility Exit Costs			Total
(in thousands)
Fiscal 2018 restructuring expenses	$	29,717		$	5,353		$	35,070
Cash payments	(16,830		)	(3,928		)	(20,758		)
Foreign currency translation	479			205			684
Balance at January 31, 2018	13,366			1,630			14,996
Fiscal 2019 restructuring expenses	15,453			4,393			19,846
Cash payments	(22,622		)	(2,008		)	(24,630		)
Foreign currency translation	(952		)	(201		)	(1,153		)
Balance at January 31, 2019	$	5,245		$	3,814		$	9,059

Global Business Optimization Program

On August 29, 2018, the Company's Board of Directors approved the Global Business Optimization Program (the "GBO Program") to increase investment in the Company’s strategic priorities and implement operational initiatives to drive productivity and enhance profitability. Under the GBO Program, the Company expects to incur cash charges of approximately $70 million to $80 million, primarily comprised of $40 million to $45 million of charges in Europe and $30 million to $35 million of charges in the Americas. It is anticipated that the majority of these charges will be incurred prior to the end of fiscal 2020. The charges primarily consist of severance costs, and also include professional services and facility exit costs.

Restructuring expenses for the year ended January 31, 2019 related to the GBO Program are comprised of the following:




	2019
(in thousands)
Severance costs	$	26,427
Professional services and facility exit costs	16,114
Total	$	42,541

During the year ended January 31, 2019, the Company recorded restructuring costs related to the GBO Program of $12.1 million in the Americas, $29.0 million in Europe, and $1.4 million in Asia-Pacific. The accrued restructuring charges are included in “accrued expenses and other liabilities” in the Consolidated Balance Sheet.

Restructuring activity during the year ended January 31, 2019, related to the GBO Program is as follows:




	Severance			Professional Services and Facility Exit Costs			Total
(in thousands)
Fiscal 2019 restructuring expenses	$	26,427		$	16,114		$	42,541
Cash payments	(11,095		)	(15,357		)	(26,452		)
Foreign currency translation	(534		)	(126		)	(660		)
Balance at January 31, 2019	$	14,798		$	631		$	15,429