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Table of Contents AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The activity related to the restructuring liabilities established during fiscal 2014 is presented in the following table:
Severance expense recorded in fiscal 2014 related to the reduction, or planned reduction, of over 1,100
employees, primarily in operations,
sales and business support functions, in connection with cost reduction actions taken in both operating groups, including reductions in recently
acquired or integrated businesses. Facility exit costs primarily consists of liabilities for remaining lease obligations and the impairment of long-
lived assets for facilities and information technology systems the Company has ceased using. Other restructuring costs related primarily to other
miscellaneous restructuring and exit costs. Of the $65.7 million in restructuring expenses recorded during fiscal 2014 , $41.3 million
related to
EM, $23.1 million related to TS and $1.3 million related to corporate business support functions. As of June 28, 2014
, management expects the
majority of the remaining severance, facility exit costs and other liabilities to be paid by the end of fiscal 2015.
Integration costs are primarily related to the integration of acquired businesses, integration of regional business units and incremental costs
incurred as part of the consolidation, relocation and closure of warehouse and office facilities. Integration costs include consulting costs for
information technology system and business operation integration assistance, facility moving costs, legal fees, travel, meeting, marketing and
communication costs that are incrementally incurred as a result of such integration activities. Also included in integration costs are incremental
salary costs specific to integration, consolidation and closure activities. Other costs consists primarily of professional fees incurred for
acquisitions, additional costs incurred for businesses divested or exited in current or prior periods, any ongoing facilities operating costs
associated with the consolidation, relocation and closure of facilities once such facilities have been vacated or substantially vacated, and other
miscellaneous costs that relate to restructuring, integration and other expenses. Integration and other costs in fiscal 2014
were comprised of
many different costs, none of which were individually material.
Fiscal 2013
During fiscal 2013, the Company incurred restructuring expenses related to various restructuring actions intended to reduce costs in
response to the then current market conditions. The following table presents the restructuring, integration and other expenses incurred during
fiscal 2013:
72
Severance
Facility
Exit Costs and
Asset
Impairments
Other
Total
(Thousands)
Fiscal 2014 restructuring expenses
$
53,260
$
11,608
$
881
$
65,749
Cash payments
(29,191
)
(3,028
)
(9
)
(32,228
)
Non-cash amounts
(260
)
(4,906
)
(538
)
(5,704
)
Other, principally foreign currency translation
(65
)
23
10
(32
)
Balance at June 28, 2014
$
23,744
$
3,697
$
344
$
27,785
Year Ended
June 29, 2013
(Thousands)
Restructuring expenses
$
120,048
Integration costs
35,742
Other costs including acquisition costs
(3,224
)
Changes in estimates for prior year restructuring liabilities
(3,065
)
Restructuring, integration and other expenses before tax
$
149,501
Restructuring, integration and other expenses after tax
$
116,382
Restructuring, integration and other expenses per share on a diluted basis
$
0.83