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These excerpts taken from the IM 10-K filed Mar 4, 2009. Reorganization
and Expense-Reduction Program Costs
In 2005, we incurred integration expenses of $12.7 million
related to our acquisition of Tech Pacific, comprised of
$6.7 million of reorganization costs primarily for employee
termination benefits, facility exit costs and other contract
termination costs for associates and facilities of Ingram Micro
made redundant by the acquisition as well as $6.0 million
of other costs charged to SG&A primarily for consulting,
retention and other expenses related to the integration of Tech
Pacific (see Note 3 to our consolidated financial
statements). We substantially completed the integration of the
operations of our pre-existing Asia-Pacific business with Tech
Pacific in the third quarter of 2005. In 2005, we also announced
an outsourcing and optimization plan to improve operating
efficiencies within our North American region. The plan, which
was completed by 2006, included an outsourcing arrangement that
moved transaction-oriented service and support functions in our
North America operations — including selected
functions in finance and shared services, customer service,
vendor management, technical support and inside sales (excluding
field sales and management positions) — to a leading
global business process outsource provider. As part of the plan,
we also restructured and consolidated other job functions within
the North American region. Total costs of the actions, or
major-program costs, incurred in 2005 were $26.6 million
($9.7 million of reorganization costs, primarily for
workforce reductions and facility exit costs, as well as
$16.9 million of other costs charged to SG&A primarily
for consulting, retention and other expenses).
In 2006, we incurred approximately $10.3 million of
incremental technology enhancement costs primarily associated
with our decision to outsource certain IT application
development functions to a leading global IT outsource service
provider, which we believe will improve our capabilities and
more effectively manage costs over the long-term. Most of the
expenses incurred were for separation costs and other transition
expenses, as well as for expenditures related to improving our
existing systems.
Starting in the second quarter of 2008, we announced
cost-reduction programs, resulting in the rationalization and
re-engineering of certain roles and processes primarily at the
regional headquarters in EMEA and targeted reductions of
primarily administrative and back-office positions in North
America. Total costs of the actions incurred in EMEA were
$16.4 million, comprised of $14.9 million of
reorganization costs related to employee termination benefits
for workforce reductions and facility consolidations, as well as
$1.5 million of other costs charged to SG&A expenses,
comprised of consulting, legal and other expenses associated
with implementing the reduction in workforce. In North America,
the net costs of the actions were $1.8 million, all of
which were
Table of Contents
reorganization costs primarily related to employee termination
benefits for workforce reductions and other costs related to
contract terminations for equipment leases. During the third
quarter of 2008, we also announced cost-reduction programs
related to our Asia-Pacific operations, incurring reorganization
costs of $0.3 million, primarily related to employee
termination benefits.
As most economists expect the current economic downturn to last
through most of 2009 and potentially beyond, we continue to make
adjustments to improve profitability and position us for the
future. We are taking additional actions in 2009 to ensure our
expenses remain aligned with declines in sales volume, including
further restructuring actions in Europe and North America. These
actions are expected to generate savings of approximately
$100 million to $120 million annually, reaching the
full run-rate by the time we exit 2009. Total restructuring and
other related costs associated with these actions are expected
to range from approximately $45 million to $65 million.
Reorganization
and Expense-Reduction Program Costs
In 2005, we incurred integration expenses of $12.7 million
related to our acquisition of Tech Pacific, comprised of
$6.7 million of reorganization costs primarily for employee
termination benefits, facility exit costs and other contract
termination costs for associates and facilities of Ingram Micro
made redundant by the acquisition as well as $6.0 million
of other costs charged to SG&A primarily for consulting,
retention and other expenses related to the integration of Tech
Pacific (see Note 3 to our consolidated financial
statements). We substantially completed the integration of the
operations of our pre-existing Asia-Pacific business with Tech
Pacific in the third quarter of 2005. In 2005, we also announced
an outsourcing and optimization plan to improve operating
efficiencies within our North American region. The plan, which
was completed by 2006, included an outsourcing arrangement that
moved transaction-oriented service and support functions in our
North America operations — including selected
functions in finance and shared services, customer service,
vendor management, technical support and inside sales (excluding
field sales and management positions) — to a leading
global business process outsource provider. As part of the plan,
we also restructured and consolidated other job functions within
the North American region. Total costs of the actions, or
major-program costs, incurred in 2005 were $26.6 million
($9.7 million of reorganization costs, primarily for
workforce reductions and facility exit costs, as well as
$16.9 million of other costs charged to SG&A primarily
for consulting, retention and other expenses).
In 2006, we incurred approximately $10.3 million of
incremental technology enhancement costs primarily associated
with our decision to outsource certain IT application
development functions to a leading global IT outsource service
provider, which we believe will improve our capabilities and
more effectively manage costs over the long-term. Most of the
expenses incurred were for separation costs and other transition
expenses, as well as for expenditures related to improving our
existing systems.
Starting in the second quarter of 2008, we announced
cost-reduction programs, resulting in the rationalization and
re-engineering of certain roles and processes primarily at the
regional headquarters in EMEA and targeted reductions of
primarily administrative and back-office positions in North
America. Total costs of the actions incurred in EMEA were
$16.4 million, comprised of $14.9 million of
reorganization costs related to employee termination benefits
for workforce reductions and facility consolidations, as well as
$1.5 million of other costs charged to SG&A expenses,
comprised of consulting, legal and other expenses associated
with implementing the reduction in workforce. In North America,
the net costs of the actions were $1.8 million, all of
which were
Table of Contents
reorganization costs primarily related to employee termination
benefits for workforce reductions and other costs related to
contract terminations for equipment leases. During the third
quarter of 2008, we also announced cost-reduction programs
related to our Asia-Pacific operations, incurring reorganization
costs of $0.3 million, primarily related to employee
termination benefits.
As most economists expect the current economic downturn to last
through most of 2009 and potentially beyond, we continue to make
adjustments to improve profitability and position us for the
future. We are taking additional actions in 2009 to ensure our
expenses remain aligned with declines in sales volume, including
further restructuring actions in Europe and North America. These
actions are expected to generate savings of approximately
$100 million to $120 million annually, reaching the
full run-rate by the time we exit 2009. Total restructuring and
other related costs associated with these actions are expected
to range from approximately $45 million to $65 million.
Reorganization
and Expense-Reduction Program Costs
In 2005, we incurred integration expenses of $12.7 million
related to our acquisition of Tech Pacific, comprised of
$6.7 million of reorganization costs primarily for employee
termination benefits, facility exit costs and other contract
termination costs for associates and facilities of Ingram Micro
made redundant by the acquisition as well as $6.0 million
of other costs charged to SG&A primarily for consulting,
retention and other expenses related to the integration of Tech
Pacific (see Note 3 to our consolidated financial
statements). We substantially completed the integration of the
operations of our pre-existing Asia-Pacific business with Tech
Pacific in the third quarter of 2005. In 2005, we also announced
an outsourcing and optimization plan to improve operating
efficiencies within our North American region. The plan, which
was completed by 2006, included an outsourcing arrangement that
moved transaction-oriented service and support functions in our
North America operations — including selected
functions in finance and shared services, customer service,
vendor management, technical support and inside sales (excluding
field sales and management positions) — to a leading
global business process outsource provider. As part of the plan,
we also restructured and consolidated other job functions within
the North American region. Total costs of the actions, or
major-program costs, incurred in 2005 were $26.6 million
($9.7 million of reorganization costs, primarily for
workforce reductions and facility exit costs, as well as
$16.9 million of other costs charged to SG&A primarily
for consulting, retention and other expenses).
In 2006, we incurred approximately $10.3 million of
incremental technology enhancement costs primarily associated
with our decision to outsource certain IT application
development functions to a leading global IT outsource service
provider, which we believe will improve our capabilities and
more effectively manage costs over the long-term. Most of the
expenses incurred were for separation costs and other transition
expenses, as well as for expenditures related to improving our
existing systems.
Starting in the second quarter of 2008, we announced
cost-reduction programs, resulting in the rationalization and
re-engineering of certain roles and processes primarily at the
regional headquarters in EMEA and targeted reductions of
primarily administrative and back-office positions in North
America. Total costs of the actions incurred in EMEA were
$16.4 million, comprised of $14.9 million of
reorganization costs related to employee termination benefits
for workforce reductions and facility consolidations, as well as
$1.5 million of other costs charged to SG&A expenses,
comprised of consulting, legal and other expenses associated
with implementing the reduction in workforce. In North America,
the net costs of the actions were $1.8 million, all of
which were
Table of Contents
reorganization costs primarily related to employee termination
benefits for workforce reductions and other costs related to
contract terminations for equipment leases. During the third
quarter of 2008, we also announced cost-reduction programs
related to our Asia-Pacific operations, incurring reorganization
costs of $0.3 million, primarily related to employee
termination benefits.
As most economists expect the current economic downturn to last
through most of 2009 and potentially beyond, we continue to make
adjustments to improve profitability and position us for the
future. We are taking additional actions in 2009 to ensure our
expenses remain aligned with declines in sales volume, including
further restructuring actions in Europe and North America. These
actions are expected to generate savings of approximately
$100 million to $120 million annually, reaching the
full run-rate by the time we exit 2009. Total restructuring and
other related costs associated with these actions are expected
to range from approximately $45 million to $65 million.
Reorganization and Expense-Reduction Program Costs In 2005, we incurred integration expenses of $12.7 million related to our acquisition of Tech Pacific, comprised of $6.7 million of reorganization costs primarily for employee termination benefits, facility exit costs and other contract termination costs for associates and facilities of Ingram Micro made redundant by the acquisition as well as $6.0 million of other costs charged to SG&A primarily for consulting, retention and other expenses related to the integration of Tech Pacific (see Note 3 to our consolidated financial statements). We substantially completed the integration of the operations of our pre-existing Asia-Pacific business with Tech Pacific in the third quarter of 2005. In 2005, we also announced an outsourcing and optimization plan to improve operating efficiencies within our North American region. The plan, which was completed by 2006, included an outsourcing arrangement that moved transaction-oriented service and support functions in our North America operations — including selected functions in finance and shared services, customer service, vendor management, technical support and inside sales (excluding field sales and management positions) — to a leading global business process outsource provider. As part of the plan, we also restructured and consolidated other job functions within the North American region. Total costs of the actions, or major-program costs, incurred in 2005 were $26.6 million ($9.7 million of reorganization costs, primarily for workforce reductions and facility exit costs, as well as $16.9 million of other costs charged to SG&A primarily for consulting, retention and other expenses). In 2006, we incurred approximately $10.3 million of incremental technology enhancement costs primarily associated with our decision to outsource certain IT application development functions to a leading global IT outsource service provider, which we believe will improve our capabilities and more effectively manage costs over the long-term. Most of the expenses incurred were for separation costs and other transition expenses, as well as for expenditures related to improving our existing systems. Starting in the second quarter of 2008, we announced cost-reduction programs, resulting in the rationalization and re-engineering of certain roles and processes primarily at the regional headquarters in EMEA and targeted reductions of primarily administrative and back-office positions in North America. Total costs of the actions incurred in EMEA were $16.4 million, comprised of $14.9 million of reorganization costs related to employee termination benefits for workforce reductions and facility consolidations, as well as $1.5 million of other costs charged to SG&A expenses, comprised of consulting, legal and other expenses associated with implementing the reduction in workforce. In North America, the net costs of the actions were $1.8 million, all of which were
Table of Contentsreorganization costs primarily related to employee termination benefits for workforce reductions and other costs related to contract terminations for equipment leases. During the third quarter of 2008, we also announced cost-reduction programs related to our Asia-Pacific operations, incurring reorganization costs of $0.3 million, primarily related to employee termination benefits. As most economists expect the current economic downturn to last through most of 2009 and potentially beyond, we continue to make adjustments to improve profitability and position us for the future. We are taking additional actions in 2009 to ensure our expenses remain aligned with declines in sales volume, including further restructuring actions in Europe and North America. These actions are expected to generate savings of approximately $100 million to $120 million annually, reaching the full run-rate by the time we exit 2009. Total restructuring and other related costs associated with these actions are expected to range from approximately $45 million to $65 million. Reorganization and Expense-Reduction Program Costs In 2005, we incurred integration expenses of $12.7 million related to our acquisition of Tech Pacific, comprised of $6.7 million of reorganization costs primarily for employee termination benefits, facility exit costs and other contract termination costs for associates and facilities of Ingram Micro made redundant by the acquisition as well as $6.0 million of other costs charged to SG&A primarily for consulting, retention and other expenses related to the integration of Tech Pacific (see Note 3 to our consolidated financial statements). We substantially completed the integration of the operations of our pre-existing Asia-Pacific business with Tech Pacific in the third quarter of 2005. In 2005, we also announced an outsourcing and optimization plan to improve operating efficiencies within our North American region. The plan, which was completed by 2006, included an outsourcing arrangement that moved transaction-oriented service and support functions in our North America operations — including selected functions in finance and shared services, customer service, vendor management, technical support and inside sales (excluding field sales and management positions) — to a leading global business process outsource provider. As part of the plan, we also restructured and consolidated other job functions within the North American region. Total costs of the actions, or major-program costs, incurred in 2005 were $26.6 million ($9.7 million of reorganization costs, primarily for workforce reductions and facility exit costs, as well as $16.9 million of other costs charged to SG&A primarily for consulting, retention and other expenses). In 2006, we incurred approximately $10.3 million of incremental technology enhancement costs primarily associated with our decision to outsource certain IT application development functions to a leading global IT outsource service provider, which we believe will improve our capabilities and more effectively manage costs over the long-term. Most of the expenses incurred were for separation costs and other transition expenses, as well as for expenditures related to improving our existing systems. Starting in the second quarter of 2008, we announced cost-reduction programs, resulting in the rationalization and re-engineering of certain roles and processes primarily at the regional headquarters in EMEA and targeted reductions of primarily administrative and back-office positions in North America. Total costs of the actions incurred in EMEA were $16.4 million, comprised of $14.9 million of reorganization costs related to employee termination benefits for workforce reductions and facility consolidations, as well as $1.5 million of other costs charged to SG&A expenses, comprised of consulting, legal and other expenses associated with implementing the reduction in workforce. In North America, the net costs of the actions were $1.8 million, all of which were
Table of Contentsreorganization costs primarily related to employee termination benefits for workforce reductions and other costs related to contract terminations for equipment leases. During the third quarter of 2008, we also announced cost-reduction programs related to our Asia-Pacific operations, incurring reorganization costs of $0.3 million, primarily related to employee termination benefits. As most economists expect the current economic downturn to last through most of 2009 and potentially beyond, we continue to make adjustments to improve profitability and position us for the future. We are taking additional actions in 2009 to ensure our expenses remain aligned with declines in sales volume, including further restructuring actions in Europe and North America. These actions are expected to generate savings of approximately $100 million to $120 million annually, reaching the full run-rate by the time we exit 2009. Total restructuring and other related costs associated with these actions are expected to range from approximately $45 million to $65 million. Reorganization and Expense-Reduction Program Costs In 2005, we incurred integration expenses of $12.7 million related to our acquisition of Tech Pacific, comprised of $6.7 million of reorganization costs primarily for employee termination benefits, facility exit costs and other contract termination costs for associates and facilities of Ingram Micro made redundant by the acquisition as well as $6.0 million of other costs charged to SG&A primarily for consulting, retention and other expenses related to the integration of Tech Pacific (see Note 3 to our consolidated financial statements). We substantially completed the integration of the operations of our pre-existing Asia-Pacific business with Tech Pacific in the third quarter of 2005. In 2005, we also announced an outsourcing and optimization plan to improve operating efficiencies within our North American region. The plan, which was completed by 2006, included an outsourcing arrangement that moved transaction-oriented service and support functions in our North America operations — including selected functions in finance and shared services, customer service, vendor management, technical support and inside sales (excluding field sales and management positions) — to a leading global business process outsource provider. As part of the plan, we also restructured and consolidated other job functions within the North American region. Total costs of the actions, or major-program costs, incurred in 2005 were $26.6 million ($9.7 million of reorganization costs, primarily for workforce reductions and facility exit costs, as well as $16.9 million of other costs charged to SG&A primarily for consulting, retention and other expenses). In 2006, we incurred approximately $10.3 million of incremental technology enhancement costs primarily associated with our decision to outsource certain IT application development functions to a leading global IT outsource service provider, which we believe will improve our capabilities and more effectively manage costs over the long-term. Most of the expenses incurred were for separation costs and other transition expenses, as well as for expenditures related to improving our existing systems. Starting in the second quarter of 2008, we announced cost-reduction programs, resulting in the rationalization and re-engineering of certain roles and processes primarily at the regional headquarters in EMEA and targeted reductions of primarily administrative and back-office positions in North America. Total costs of the actions incurred in EMEA were $16.4 million, comprised of $14.9 million of reorganization costs related to employee termination benefits for workforce reductions and facility consolidations, as well as $1.5 million of other costs charged to SG&A expenses, comprised of consulting, legal and other expenses associated with implementing the reduction in workforce. In North America, the net costs of the actions were $1.8 million, all of which were
Table of Contentsreorganization costs primarily related to employee termination benefits for workforce reductions and other costs related to contract terminations for equipment leases. During the third quarter of 2008, we also announced cost-reduction programs related to our Asia-Pacific operations, incurring reorganization costs of $0.3 million, primarily related to employee termination benefits. As most economists expect the current economic downturn to last through most of 2009 and potentially beyond, we continue to make adjustments to improve profitability and position us for the future. We are taking additional actions in 2009 to ensure our expenses remain aligned with declines in sales volume, including further restructuring actions in Europe and North America. These actions are expected to generate savings of approximately $100 million to $120 million annually, reaching the full run-rate by the time we exit 2009. Total restructuring and other related costs associated with these actions are expected to range from approximately $45 million to $65 million. | EXCERPTS ON THIS PAGE:
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