Avnet 2015 Annual Report Download - page 28

TableofContents
Restructuring, Integration and Other Expenses
During fiscal 2016, the Company incurred restructuring expenses related to certain actions intended to reduce future
operatingexpenses.TheseactionsincludeactivitiesrelatedtotheAvnetAdvantageinitiative,whichisfocusedoncreatinglong-
term operational efficiencies. In addition, the Company incurred integration and other costs primarily associated with the
integration of acquired businesses, the integration of certain global and regional businesses, the integration of significant
information technology systems and other costs associated with the acquisition of and the closure or divestiture of certain
businesses.Asaresult,duringfiscal2016theCompanyrecordedrestructuring,integrationandotherexpensesof$79.3million.
TheCompanyrecorded$52.8millionforrestructuringcosts,andexpectstorealizeapproximately$57.0millioninincremental
annualizedoperatingcostssavingsasaresultofsuchrestructuringactions.Theincrementalannualizedcostsavingsareexpected
tobenefitEMbyapproximately$24.0millionandTSbyapproximately$33.0million.Restructuringexpensesconsistedof$45.6
million for severance, $5.1 million for facility exit costs, $1.3 million for asset impairments, and $0.8 million for other
restructuringexpenses.Integrationandothercostsincludingacquisitioncostswere$10.4millionand$19.8million,respectively.
TheCompanyalsorecordedanetbenefitof$3.7millionforchangesinestimatesforrestructuringliabilitiesestablishedinprior
years.Theaftertaximpactofrestructuring,integrationandotherexpenseswere$52.3millionand$0.39pershareonadiluted
basis.
Duringfiscal2015,theCompanytookcertainrestructuringactionsinanefforttoreducefutureoperatingcostsincluding
restructuringactivitiesforcertainregionalandglobalbusinessestobetteralignsuchoperations,productsandserviceswiththe
knownandanticipateddemandsoftheCompany’s suppliersandcustomers. Inaddition,theCompanyincurredintegrationand
other costs primarily associated with acquired businesses and certain global and regional businesses. As a result, duringfiscal
2015theCompanyrecordedrestructuring,integrationandotherexpensesof$90.8million.TheCompanyrecorded$58.7million
forrestructuringcosts,whichconsistedof$25.9millionforseverance,$8.8millionforfacilityexitcosts,$18.2millionforasset
impairments,and$5.8millionforotherrestructuringexpenses.Integrationandothercostsincludingacquisitioncostswere$19.1
millionand $13.7 million, respectively.TheCompany also recorded anetbenefit of $0.7 millionforchanges in estimates for
restructuringliabilitiesestablishedinprioryears.Theaftertaximpactofrestructuring,integrationandotherexpenseswere$65.9
millionand$0.47pershareonadilutedbasis
During fiscal 2014, the Company took certain actions in an effort to reduce future operating costs including activities
necessary to achieve planned synergies from recently acquired businesses. In addition, the Company incurred integration and
othercosts primarily associated with acquired or divestedbusinessesandfortheconsolidation of facilities. As a result,during
fiscal2014theCompanyrecordedrestructuring,integrationandotherexpensesof$94.6million.Restructuringexpensesof$65.7
millionconsistedof$53.3millionforseverance,$11.6millionforfacilityexitcostsandassetimpairments,and$0.9millionfor
other restructuring expenses. Integration and other costs including acquisition costs were $20.5 million and $8.8 million,
respectively. The Company also recorded a net benefit of $0.3 million for changes in estimates for restructuring liabilities
establishedinprioryears.Theaftertaximpactofrestructuring,integrationandotherexpenseswas$70.8millionand$0.50per
shareonadilutedbasis.
SeeNote17,“Restructuring,integrationandotherexpenses”totheCompany’sconsolidatedfinancialstatementsincluded
inItem15ofthisAnnualReportonForm10-Kforadditionalinformationrelatedtorestructuring,integrationandotherexpenses.
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