Avnet 2015 Annual Report Download - page 79
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AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
17. Restructuring, integration and other expenses
Fiscal 2016
During fiscal 2016, the Company took certain actions in an effort to reduce future operating expenses, including the
continuationoftherestructuringactivitiesstartedinthefourthquarteroffiscal2015.Theseactionsincludeactivitiesrelatedto
the Avnet Advantage initiative, which is focused on creating long-term operational efficiencies. In addition, the Company
incurred integration and other costs as discussed further below. The following table presents the restructuring, integration and
otherexpensesrecordedduringfiscal2016:
Year Ended
July 2, 2016
(Thousands,
except per share
data)
Restructuringexpenses $ 52,781
Integrationcosts 10,425
Othercosts,includingacquisitioncosts 19,784
Changesinestimatesforprioryearrestructuringliabilities (3,672)
Restructuring,integrationandotherexpensesbeforetax $ 79,318
Restructuring,integrationandotherexpensesaftertax $ 52,343
Restructuring,integrationandotherexpensespershareonadilutedbasis $ 0.39
Theactivityrelatedtotherestructuringliabilitiesestablishedandotherassociatedexpensesincurredduringfiscal2016is
presentedinthefollowingtable:
Facility Asset
Severance Exit Costs Impairments Other Total
(Thousands)
Fiscal2016restructuringexpenses $ 45,592 $ 5,129 $ 1,254 $ 806 $ 52,781
Cashpayments (31,304) (979) — (267) (32,550)
Non-cashamounts — — (1,254) (378) (1,632)
Other,principallyforeigncurrencytranslation (67) (57) — 62 (62)
BalanceatJuly2,2016 $ 14,221 $ 4,093 $ — $ 223 $ 18,537
Severanceexpenserecordedinfiscal2016relatedtothereduction,orplannedreduction,ofover700employees,primarily
in operations, sales and business support functions, in connection with cost reduction actions taken in both operating groups
includingtheimpactofavoluntaryretirementprogramintheUnitedStates.Facilityexitcostsprimarilyconsistofliabilitiesfor
remainingleaseobligationsforexitedfacilities.Assetimpairmentsrelatetotheimpairmentofproperty,plantandequipmentasa
result of the underlying restructuring actions taken in fiscal 2016. Other restructuring costs related primarily to other
miscellaneous restructuring and exit costs. Of the $52.8 million in restructuring expenses recorded during fiscal 2016, $28.6
millionrelatedtoEM,$21.2millionrelatedtoTSand$3.0millionrelatedtoCorporatebusinesssupportfunctions.TheCompany
expectsthemajorityoftheremainingseveranceandfacilityexitcoststobepaidbytheendoffiscal2017.
Integrationcostsareprimarilyrelatedtotheintegrationofacquiredbusinesses,theintegrationofcertainregionalandglobal
businesses,theintegrationofsignificantinformationtechnologysystemsandincrementalcostsincurredas
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