Plan of Restructuring

6 Months Ended

Jul. 01, 2017

Restructuring and Related Activities [Abstract]

Note 8 – Plan of Restructuring

On November 6, 2014, we announced a corporate initiative to rationalize our operations and provide expense efficiencies, which was expected to be completed by the end of fiscal 2015. This initiative originally planned for the elimination of approximately 2% to 3% of our workforce and the closing of certain facilities. We subsequently announced our plan to extend these restructuring activities through the end of 2016 to further implement cost-savings initiatives, which ultimately resulted in the elimination of approximately 900 positions, representing 4% of our workforce. We recorded restructuring costs of $34.9 million pre-tax in fiscal 2015 and $45.9 million pre-tax in fiscal 2016. Our restructuring activities are complete and we do not expect to report any such charges in 2017.

During the six months ended June 25, 2016, we recorded restructuring costs of $24.4 million. The costs associated with this restructuring are included in a separate line item, “Restructuring costs” within our consolidated statements of income.

The following table shows the amounts expensed and paid for restructuring costs that were incurred during the six months ended July 1, 2017 and during our 2016 fiscal year and the remaining accrued balance of restructuring costs as of July 1, 2017, which is included in Accrued expenses: Other and Other liabilities within our consolidated balance sheet:

			Facility
	Severance		Closing
	Costs		Costs		Other		Total
Balance, December 26, 2015	$	9,103	$	2,151	$	811	$	12,065
Provision		40,728		3,587		1,576		45,891
Payments and other adjustments		(27,477)		(3,284)		(1,492)		(32,253)
Balance, December 31, 2016	$	22,354	$	2,454	$	895	$	25,703
Provision		-		-		-		-
Payments		(15,598)		(738)		(823)		(17,159)
Balance, July 01, 2017	$	6,756	$	1,716	$	72	$	8,544

The following table shows, by reportable segment, the amounts expensed and paid for restructuring costs that were incurred during the six months ended July 1, 2017 and the 2016 fiscal year and the remaining accrued balance of restructuring costs as of July 1, 2017:

			Technology and
	Health Care		Value-Added
	Distribution		Services		Total
Balance, December 26, 2015	$	12,062	$	3	$	12,065
Provision		44,082		1,809		45,891
Payments and other adjustments		(30,906)		(1,347)		(32,253)
Balance, December 31, 2016	$	25,238	$	465	$	25,703
Provision		-		-		-
Payments		(16,905)		(254)		(17,159)
Balance, July 01, 2017	$	8,333	$	211	$	8,544