Acquisition, Integration and Restructuring Expenses (Notes)

3 Months Ended

Apr. 30, 2020

Acquisition, Integration and Restructuring Expenses [Abstract]

Business Acquisition, Integration, Restructuring and Other Related Costs [Text Block]

NOTE 4 — ACQUISITION, INTEGRATION AND RESTRUCTURING EXPENSES

Acquisition, integration and restructuring expenses are primarily comprised of costs related to the Global Business Optimization Program which was initiated in fiscal 2019, the proposed Merger and the fiscal 2020 acquisition of DLT.

Global Business Optimization Program

In fiscal 2019, 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 cumulative cash charges through fiscal 2021 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. The cash charges primarily consist of severance costs, and also include professional services and other costs.

Restructuring costs related to the GBO Program are comprised of the following:



	Three months ended April 30,				Cumulative Amounts Incurred to Date
	2020		2019		Cumulative Amounts Incurred to Date
(in thousands)
Severance costs	$	1,379	$	4,147	$	39,773
Professional services and other costs	290		2,074		21,808
Total	$	1,669	$	6,221	$	61,581

Restructuring costs related to the GBO Program by segment are as follows:



	Three months ended April 30,					Cumulative Amounts Incurred to Date
	2020			2019		Cumulative Amounts Incurred to Date
(in thousands)
Americas	$	1,017		$	2,911	$	20,994
Europe	(251		)	3,024		37,165
Asia-Pacific	903			286		3,422
Total	$	1,669		$	6,221	$	61,581

Restructuring activity during the three months ended April 30, 2020 related to the GBO Program is as follows:



	Three months ended April 30, 2020
	Severance			Professional services and other costs			Total
(in thousands)
Balance at January 31, 2020	$	8,718		$	17		$	8,735
Fiscal 2021 restructuring expenses	1,379			290			1,669
Cash payments	(4,187		)	(302		)	(4,489		)
Foreign currency translation	(165		)	(1		)	(166		)
Balance at April 30, 2020	$	5,745		$	4		$	5,749

Pending Merger and DLT Acquisition

During the three months ended April 30, 2020, the Company incurred professional services and other transaction related costs of $15.1 million related to the proposed Merger and $0.9 million related to the acquisition of DLT. The costs are primarily related to professional services fees for operational, tax, legal and other consulting services.

TECH DATA CORP 10-Q