Restructuring, integration and other charges | 9 Months Ended |
Mar. 29, 2014 |
Restructuring and Related Activities [Abstract] | ' |
Restructuring, integration and other charges | ' |
Restructuring, integration and other expenses |
Fiscal 2014 |
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During the third quarter and first nine months of 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. The following table presents the restructuring, integration and other expenses incurred during the third quarter and first nine months of fiscal 2014: |
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| Third Quarter | | Nine Months | | | | | | | | |
Ended | Ended | | | | | | | | |
29-Mar-14 | 29-Mar-14 | | | | | | | | |
| (Thousands, except per share data) | | | | | | | | |
Restructuring expenses | $ | 19,276 | | | $ | 46,180 | | | | | | | | | |
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Integration costs | 3,864 | | | 12,332 | | | | | | | | | |
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Other costs including acquisition costs | 2,329 | | | 6,870 | | | | | | | | | |
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Changes in estimates for prior restructuring liabilities | 614 | | | 1,242 | | | | | | | | | |
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Restructuring, integration and other expenses before tax | $ | 26,083 | | | $ | 66,624 | | | | | | | | | |
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Restructuring, integration and other expenses after tax | $ | 19,275 | | | $ | 49,872 | | | | | | | | | |
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Restructuring, integration and other expenses per share on a diluted basis | $ | 0.14 | | | $ | 0.36 | | | | | | | | | |
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The activity related to the restructuring liabilities established during fiscal 2014 is presented in the following table: |
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| Severance | | Facility | | Other | | Total |
Exit Costs and Asset Impairments |
| (Thousands) |
Fiscal 2014 restructuring expenses | $ | 38,857 | | | $ | 6,442 | | | $ | 881 | | | $ | 46,180 | |
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Cash payments | (13,839 | ) | | (1,630 | ) | | (9 | ) | | (15,478 | ) |
Non-cash amounts | (260 | ) | | (2,591 | ) | | (538 | ) | | (3,389 | ) |
Other, principally foreign currency translation | 19 | | | (6 | ) | | 10 | | | 23 | |
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Balance at March 29, 2014 | $ | 24,777 | | | $ | 2,215 | | | $ | 344 | | | $ | 27,336 | |
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Severance expense recorded in the first nine months of fiscal 2014 related to the reduction, or planned reduction, of over 750 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 businesses. Facility exit costs primarily consists of liabilities for remaining lease obligations and the impairment of long-lived assets for locations and information systems the Company has ceased using. Other restructuring costs related primarily to other miscellaneous restructuring and exit costs. Of the $46.2 million in restructuring expenses recorded during the first nine months of fiscal 2014, $32.0 million related to EM, $13.7 million related to TS and $0.5 million related to corporate business support functions. As of March 29, 2014, management expects the majority of the remaining severance, facility exit costs and other liabilities to be paid by the first quarter of fiscal 2015. During the third quarter of fiscal 2014, the Company incurred $10.3 million of severance and facility exit costs, related to the restructuring activities initiated, during the second and third quarters of fiscal 2014, but not yet completed, and expects to incur up to approximately $10.0 million to $15.0 million of additional restructuring costs through the first quarter of fiscal 2015 for such activities that are not yet completed. |
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Integration costs are primarily related to the integration of acquired businesses and incremental costs incurred as part of the consolidation, relocation and closure of warehouse and office facilities. Integration costs include consulting costs for IT 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 related businesses divested or exited in 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 the first nine months of fiscal 2014 were comprised of many different costs, none of which were individually material. |
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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 activity during the first nine months of fiscal 2014 related to the remaining restructuring liabilities established during fiscal 2013: |
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| Severance | | Facility | | Other | | Total |
Exit Costs and Asset Impairments |
| (Thousands) |
Balance at June 29, 2013 | $ | 25,254 | | | $ | 16,211 | | | $ | 370 | | | $ | 41,835 | |
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Cash payments | (19,501 | ) | | (5,844 | ) | | (1,230 | ) | | (26,575 | ) |
Changes in estimates, net | (2,198 | ) | | (1,285 | ) | | 1,590 | | | (1,893 | ) |
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Non-cash amounts | — | | | 538 | | | (756 | ) | | (218 | ) |
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Other, principally foreign currency translation | 197 | | | 310 | | | 151 | | | 658 | |
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Balance at March 29, 2014 | $ | 3,752 | | | $ | 9,930 | | | $ | 125 | | | $ | 13,807 | |
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As of March 29, 2014, management expects the majority of the remaining severance and other liabilities to be paid by the end of fiscal 2014 and the remaining facility exit cost liabilities to be paid by the end of fiscal 2018. |
Fiscal 2012 and prior |
As of June 29, 2013, there was $4.7 million of restructuring liabilities remaining related to restructuring actions taken in fiscal years 2012 and prior, the majority of which relates to facility exit costs. The remaining balance for such historical restructuring actions as of March 29, 2014 was $1.8 million, which is expected to be paid by the end of fiscal 2016. |