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Table of Contents
AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Fiscal 2010
During fiscal 2010, the Company recognized restructuring, integration and other charges related to remaining cost reduction
actions announced in fiscal 2009 which were taken in response to market conditions as well as integration costs associated with
acquired businesses in addition to a value-added tax exposure and acquisition-
related costs partially offset by a credit related to prior
restructuring reserves.
Restructuring charges incurred in fiscal 2010 consisted of severance, facility exit costs and other charges. Severance charges
were related to personnel reductions of over 150 employees in administrative, finance and sales functions in connection with the cost
reduction actions in all three regions. Facility exit costs consisted of lease liabilities and fixed asset write-
downs associated with seven
vacated facilities in the Americas, one in EMEA and four in the Asia/Pac region. Other charges consisted primarily of contractual
obligations with no on-going benefit to the Company.
During fiscal 2010, the Company incurred integration costs for professional fees, facility moving costs and travel, meeting,
marketing and communication costs that were incrementally incurred as a result of the integration efforts of previously acquired
businesses.
Also during fiscal 2010, the Company recognized a charge for a value-
added tax exposure in Europe related to an audit of prior
years and other charges related primarily to acquisition
-
related costs which would have been capitalized under prior accounting rules.
In addition, the Company recognized a credit to reverse restructuring reserves which were determined to be no longer necessary.
The fiscal 2011 activity related to the restructuring charges is presented in the following table:
As of July 2, 2011, management expects the majority of the remaining severance and other reserves to be utilized by the end of
fiscal 2012 and the remaining facility exit cost reserves to be utilized by the end of fiscal 2013.
70
Year Ended
July 3, 2010
(Thousands)
Restructuring charges
$
15,991
Integration costs
2,931
Value
-
added tax exposure
6,477
Other
3,261
Reversal of excess restructuring reserves recorded in prior periods
(3,241
)
Pre
-
tax restructuring, integration and other charges
$
25,419
After tax restructuring, integration and other charges
$
18,789
Restructuring, integration and other charges per share on a diluted basis
$
0.12
Severance
Facility
Reserves
Exit Costs
Other
Total
(Thousands)
Balance at July 3, 2010
$
539
$
1,405
$
1,836
$
3,780
Cash payments
(400
)
(279
)
(443
)
(1,122
)
Adjustments
(144
)
(903
)
421
(626
)
Other, principally foreign currency translation
22
9
152
183
Balance at July 2, 2011
$
17
$
232
$
1,966
$
2,215