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Restructuring, integration and other charges | 6 Months Ended
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Dec. 29, 2012
Restructuring and Related Activities [Abstract] |
Restructuring, integration and other charges | Restructuring, integration and other charges Fiscal 2013 During the second quarter and first half of fiscal 2013, the Company initiated actions to reduce costs in both operating groups in response to continued weakness in business conditions. In addition, the Company incurred acquisition and integration costs associated with recently acquired businesses. The following table presents the restructuring, integration and other charges incurred during the second quarter and first half of fiscal 2013.
| Second Quarter Ended December 29, 2012 |  | Six Months Ended December 29, 2012
| (Thousands, except per share data)
Restructuring charges | $ | 16,109 |  |  | $ | 46,319 |
Integration costs | 7,575 |  |  | 12,624 |
Acquisition costs | 3,012 |  |  | 5,792 |
Reversal of excess prior year restructuring reserves | (1,790 | ) |  | (2,421 | )
Pre-tax restructuring, integration and other charges | $ | 24,906 |  |  | $ | 62,314 |
After tax restructuring, integration and other charges | $ | 19,885 |  |  | $ | 46,986 |
Restructuring, integration and other charges per share on a diluted basis | $ | 0.14 |  |  | $ | 0.33 |
The activity related to the restructuring charges incurred during fiscal 2013 is presented in the following table:
| Severance Reserves |  | Facility Exit Costs |  | Other |  | Total
| (Thousands)
Fiscal 2013 pre-tax charges | $ | 33,195 |  |  | $ | 12,652 |  |  | $ | 472 |  |  | $ | 46,319 |
Cash payments | (23,997 | ) |  | (400 | ) |  | (268 | ) |  | (24,665 | )
Non-cash write-downs | — |  |  | (277 | ) |  | — |  |  | (277 | )
Other, principally foreign currency translation | 114 |  |  | 18 |  |  | 2 |  |  | 134 |
Balance at December 29, 2012 | $ | 9,312 |  |  | $ | 11,993 |  |  | $ | 206 |  |  | $ | 21,511 |
Severance charges recorded in the first half of fiscal 2013 related to over 800 employees in sales, administrative and support functions in connection with the cost reduction actions taken in all three regions in both operating groups with employee reductions of approximately 560 in EM, 225 in TS and the remaining is business support functions. Facility exit costs for vacated facilities related to fourteen facilities in the Americas, ten in EMEA, and five in Asia and consisted of reserves for remaining lease liabilities and the write-down of fixed assets. Other restructuring charges related primarily to other onerous lease obligations that have no on-going benefit to the Company. Of the $46,319,000 pre-tax restructuring charges recorded during the first half of fiscal 2013, $27,163,000 related to EM, $18,422,000 related to TS and the remaining related to corporate. As of December 29, 2012, management expects the majority of the remaining severance and other reserves to be utilized by the end of fiscal 2014 and the remaining facility exit cost reserves to be utilized by the end of fiscal 2016. 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 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 consisted primarily of professional fees for due diligence work and other legal costs associated with the transaction. Fiscal 2012 During fiscal 2012, the Company incurred restructuring charges and integration and other charges related to acquisition and integration activities associated with acquired businesses. The following table presents the activity during the first six months of fiscal 2013 related to the remaining restructuring reserves established during fiscal 2012.
| Severance Reserves |  | Facility Exit Costs |  | Other |  | Total
| (Thousands)
Balance at June 30, 2012 | $ | 9,746 |  |  | $ | 4,544 |  |  | $ | 1,347 |  |  | $ | 15,637 |
Cash payments | (7,018 | ) |  | (1,135 | ) |  | (756 | ) |  | (8,909 | )
Adjustments | (773 | ) |  | (995 | ) |  | (129 | ) |  | (1,897 | )
Other, principally foreign currency translation | 224 |  |  | 63 |  |  | 45 |  |  | 332 |
Balance at December 29, 2012 | $ | 2,179 |  |  | $ | 2,477 |  |  | $ | 507 |  |  | $ | 5,163 |
As of December 29, 2012, management expects the majority of the remaining severance and other reserves to be utilized by the end of fiscal 2015 and the remaining facility exit cost reserves to be utilized by the end of fiscal 2016. Fiscal 2011 During fiscal 2011, the Company incurred restructuring, integration and other charges related to acquisition and integration activities associated with acquired businesses. The following table presents the activity during the first six months of fiscal 2013 related to the remaining restructuring reserves established during fiscal 2011.
| Severance Reserves |  | Facility Exit Costs |  | Other |  | Total
| (Thousands)
Balance at June 30, 2012 | $ | 285 |  |  | $ | 3,271 |  |  | $ | 227 |  |  | $ | 3,783 |
Cash payments | (98 | ) |  | (1,065 | ) |  | (21 | ) |  | (1,184 | )
Adjustments | (158 | ) |  | (398 | ) |  | (51 | ) |  | (607 | )
Other, principally foreign currency translation | 14 |  |  | 105 |  |  | 10 |  |  | 129 |
Balance at December 29, 2012 | $ | 43 |  |  | $ | 1,913 |  |  | $ | 165 |  |  | $ | 2,121 |
As of December 29, 2012, management expects the majority of the remaining severance and other reserves to be utilized by the end of fiscal 2013 and the remaining facility exit cost reserves to be utilized by the end of fiscal 2016. Fiscal 2010 and prior restructuring reserves In fiscal 2010 and prior, the Company incurred restructuring, integration and other charges of which four restructuring plans are remaining. The following table presents the activity during the first six months of fiscal 2013 related to the remaining restructuring reserves that were established during fiscal 2010 and prior.
| Severance Reserves |  | Facility Exit Costs |  | Other |  | Total
| (Thousands)
Balance at June 30, 2012 | $ | 158 |  |  | $ | 1,706 |  |  | $ | 678 |  |  | $ | 2,542 |
Cash payments | (31 | ) |  | (1,173 | ) |  | — |  |  | (1,204 | )
Adjustments | — |  |  | (56 | ) |  | — |  |  | (56 | )
Other, principally foreign currency translation | 8 |  |  | 13 |  |  | 26 |  |  | 47 |
Balance at December 29, 2012 | $ | 135 |  |  | $ | 490 |  |  | $ | 704 |  |  | $ | 1,329 |
As of December 29, 2012, management expects the majority of the remaining severance and other reserves to be utilized by the end of fiscal 2014 and the remaining facility exit cost reserves to be utilized by the end of fiscal 2016.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 5 -Section P -Subsection 3, 4 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 146 -Paragraph 20 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 5.P.4) -URI http://asc.fasb.org/extlink&oid=6394695&loc=d3e140904-122747 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 5.P.3) -URI http://asc.fasb.org/extlink&oid=6394695&loc=d3e140864-122747 + Details
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