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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.
Fiscal 2010 and prior year reserve activity
In addition to the fiscal 2010 restructuring activity, the Company incurred restructuring charges under separate restructuring plans. The
fiscal 2012 activity related to the remaining reserves associated with these restructuring actions is presented in the following table:
As of June 30, 2012, management expects the majority of the remaining severance and other reserves to be utilized by the end of fiscal
2014 and the remaining facility exit cost reserves to be utilized by the end of fiscal 2016 .
69
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
Reserves
Facility
Exit Costs
Other
Total
(Thousands)
Balance at July 2, 2011
$
316
$
6,632
$
1,966
$
8,914
Cash payments
(91
)
(4,183
)
(1,096
)
(5,370
)
Adjustments
(36
)
(664
)
(59
)
(759
)
Other, principally foreign currency translation
(31
)
(79
)
(133
)
(243
)
Balance at June 30, 2012
$
158
$
1,706
$
678
$
2,542