Special Charges

The Company’s North America Technology Products Group (“NATG”) segment incurred special charges of approximately $2.6 million in the third quarter of 2015 relating to the exit from the retail store business and continued transition of its operations to focus on its business to business (“B2B”) operations and public sector marketplace, as well as, professional costs and net recoveries related to asset impairment charges. Charges incurred included approximately $2.2 million related to updating our future lease cash flows of our exited distribution facility and retail stores (present value of contractual gross lease payments net of sublease rental income, or settlement amount), $0.1 million for consulting and severance expenses and net recoveries related to asset impairment charges of $0.1 million. For the nine month periods ended September 30, 2015, NATG incurred special charges of approximately $35.0 million. Charges incurred included approximately $26.4 million for lease termination costs, $2.9 million in workforce reductions, $2.5 million in consulting expenses and net asset impairment charges of $0.1 million. Amounts related to this exit activity that are unpaid at September 30, 2015 are recorded in Accounts payable, Accrued expenses and other current liabilities and other liabilities in the accompanying Condensed Consolidated Balance Sheets. The Company believes that substantially all of the restructuring costs related to the NATG exit from the retail store business and transition of its operations to focus on its B2B operations and public sector marketplace have been incurred as of September 30, 2015.

Additionally, in the third quarter, NATG incurred $0.4 million of professional costs, net of $0.2 million from a recovery settlement related to the investigation, settlement, prosecution, and restitution proceedings related to the former NATG executives; and professional costs related to the investigation conducted at the request of the US Attorney for the Southern District of Florida. Year to date costs incurred for these matters totaled $3.1 million.

EMEA Technology Products Group (“EMEA”) segment incurred special charges of approximately $0.7 million in the second quarter of 2015 related to the previously disclosed exit of the Chief Executive of the EMEA Technology operations. Amounts related to this action that are unpaid at September 30, 2015 are recorded in Accrued expenses and other current liabilities in the accompanying Condensed Consolidated Balance Sheets.

The following table details the associated liabilities related to the Technology Products segments special charges (in millions):

	EMEA -Workforce reductions and personnel costs			NATG – Workforce reductions			NATG – Lease liabilities and other exit costs			Total
Balance January 1, 2015	$	4.7		$	-		$	-		$	4.7
Charged to expense		0.5			2.9			29.1			32.5
Paid or otherwise settled		(4.0	)		(2.6	)		(11.2	)		(17.8	)
Balance September 30, 2015	$	1.2		$	0.3		$	17.9		$	19.4

The Company conducted an evaluation of its long-lived assets in its Germany operations, in the first quarter of 2015, and as a result of negative cash flows in 2015 and a forecast for continued cash use, concluded that those assets were impaired. As a result, an impairment charge of approximately $0.3 million was recorded in the first quarter of 2015 to adjust the long- lived assets to fair market value.

IPG incurred special charges of approximately $0.4 million in the first quarter of 2015 related to severance costs associated with the integration of P.E.G. The unpaid severance cost is included in the Condensed Consolidated Balance Sheet within accrued expenses and will be settled within the year.