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Table of Contents AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
In addition, the Company recorded $6,665,000
for (i) a legal claim associated with an acquired business and a potential royalty claim
related to periods prior to acquisition by Avnet and (ii) a legal claim associated with an indemnification of a prior divested business.
Fiscal 2011
During fiscal 2011, the Company incurred charges related primarily to the acquisition and integration activities associated with acquired
businesses (see Note 2) and also recorded credits related to prior restructuring reserves and acquisition adjustments.
Severance charges recorded in fiscal 2011 related to personnel reductions of over 550
employees in administrative, finance and sales
functions primarily in connection with the integration of the acquired Bell business into the existing EM Americas, TS Americas and TS EMEA
regions and, to a lesser extent, other cost reduction actions. Facility exit costs consisted of lease liabilities, fixed asset write-
downs and other
related charges associated with 50 vacated facilities: 23 in the Americas, 25 in EMEA and 2 in the Asia/Pac region.
Integration costs incurred related to the integration of acquired businesses and incremental costs incurred as part of the consolidation and
closure of certain office and warehouse locations. Integration costs included IT consulting costs for system integration assistance, facility
moving costs, legal fees, travel, meeting, marketing and communication costs that were incrementally incurred as a result of the integration
activity. Also included in integration costs are incremental salary costs associated with the consolidation and closure activities as well as costs
associated with acquisition activity, primarily related to the acquired businesses' personnel who were retained by Avnet following the close of
the acquisitions solely to assist in the integration of the acquired businesses' IT systems and administrative and logistics operations into those of
Avnet. These identified personnel have no other meaningful day-to-day operational responsibilities outside of the integration effort.
Acquisition costs incurred during fiscal 2011 related primarily to professional fees for advisory and broker services, legal and accounting
due diligence, and other legal costs associated with the acquisition.
During fiscal 2011, the Company recorded credits to restructuring, integration and other charges related to (i) the reversal of restructuring
reserves established in prior years that were deemed to be no longer required, (ii) acquisition adjustments for which the purchase allocation
period had closed and (iii) exit-related reserves originally established through goodwill in prior years that were deemed no longer required.
70
Year Ended
July 2, 2011
(Thousands)
Restructuring charges
$
47,763
Integration costs
25,068
Acquisition costs
15,597
Reversal of excess prior year restructuring reserves
(6,076
)
Prior year acquisition adjustments
(5,176
)
Pre-tax restructuring, integration and other charges
$
77,176
After tax restructuring, integration and other charges
$
56,169
Restructuring, integration and other charges per share on a diluted basis
$
0.36