Document and Company Informatio
Document and Company Information (USD $) | |||
3 Months Ended
Oct. 03, 2009 | Oct. 23, 2009
| Dec. 27, 2008
| |
Document and Company Information [Abstract] | |||
Entity Registrant Name | AVNET INC | ||
Entity Central Index Key | 0000008858 | ||
Document Type | 10-Q | ||
Document Period End Date | 2009-10-03 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --06-27 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $2,618,350,235 | ||
Entity Common Stock, Shares Outstanding | 151,274,767 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) (USD $) | |||||||||||||||||||
In Thousands | Oct. 03, 2009
| Jun. 27, 2009
| |||||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | $987,296 | $943,921 | |||||||||||||||||
Receivables, less allowances of $90,428 and $85,477, respectively | 2,864,450 | 2,618,697 | |||||||||||||||||
Inventories | 1,567,742 | 1,411,755 | |||||||||||||||||
Prepaid and other current assets | 161,923 | 169,879 | |||||||||||||||||
Total current assets | 5,581,411 | 5,144,252 | |||||||||||||||||
Property, plant and equipment, net | 306,308 | 305,682 | |||||||||||||||||
Goodwill (Notes 2 and 3) | 550,039 | 550,118 | |||||||||||||||||
Other assets | 269,906 | 273,464 | |||||||||||||||||
Total assets | 6,707,664 | 6,273,516 | |||||||||||||||||
Current liabilities: | |||||||||||||||||||
Borrowings due within one year (Note 4) | 50,440 | 23,294 | |||||||||||||||||
Accounts payable | 2,293,149 | 1,957,993 | |||||||||||||||||
Accrued expenses and other | 446,334 | 474,573 | |||||||||||||||||
Total current liabilities | 2,789,923 | 2,455,860 | |||||||||||||||||
Long-term debt (Note 4) | 957,279 | 946,573 | |||||||||||||||||
Other long-term liabilities | 71,822 | 110,226 | |||||||||||||||||
Total liabilities | 3,819,024 | 3,512,659 | |||||||||||||||||
Shareholders' equity (Notes 8 and 9) | |||||||||||||||||||
Common stock $1.00 par; authorized 300,000,000 shares; issued 151,310,000 shares and 151,099,000 shares, respectively | 151,310 | 151,099 | |||||||||||||||||
Additional paid-in capital | 1,194,987 | 1,178,524 | [1] | ||||||||||||||||
Retained earnings | 1,264,966 | 1,214,071 | [1] | ||||||||||||||||
Accumulated other comprehensive income (Note 8) | 278,307 | 218,094 | |||||||||||||||||
Treasury stock at cost, 45,624 shares and 32,306 shares, respectively | (930) | (931) | |||||||||||||||||
Total shareholders' equity | 2,888,640 | 2,760,857 | |||||||||||||||||
Total liabilities and shareholders' equity | $6,707,664 | $6,273,516 | |||||||||||||||||
[1]As adjusted for the retrospective application of an accounting standard. See Note 1 to the consolidated financial statements. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (Unaudited) (USD $) | ||
In Thousands, except Share data | Oct. 03, 2009
| Jun. 27, 2009
|
Current assets: | ||
Allowances for receivable | $90,428 | $85,477 |
Shareholders' equity (Notes 8 and 9) | ||
Common stock, par value | 1 | 1 |
Common stock, share authorized | 300,000,000 | 300,000,000 |
Common stock, share issued | 151,310,000 | 151,099,000 |
Treasury stock, shares | 45,624 | 32,306 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) (USD $) | |||||||||||||||||||
In Thousands, except Per Share data | 3 Months Ended
Oct. 03, 2009 | 3 Months Ended
Sep. 27, 2008 | |||||||||||||||||
Sales | $4,355,036 | $4,494,450 | |||||||||||||||||
Cost of sales | 3,855,298 | 3,910,283 | |||||||||||||||||
Gross profit | 499,738 | 584,167 | |||||||||||||||||
Selling, general and administrative expenses | 392,666 | 419,554 | [1] | ||||||||||||||||
Restructuring, integration and other charges (Note 12) | 18,072 | 9,991 | |||||||||||||||||
Operating income | 89,000 | 154,622 | [1] | ||||||||||||||||
Other income (expense), net | 2,917 | (649) | |||||||||||||||||
Interest expense | (15,282) | (21,003) | [1] | ||||||||||||||||
Income before income taxes | 76,635 | 132,970 | [1] | ||||||||||||||||
Income tax provision | 25,740 | 42,631 | [1] | ||||||||||||||||
Net income | $50,895 | $90,339 | [1] | ||||||||||||||||
Net earnings per share (Note 9): | |||||||||||||||||||
Basic | 0.34 | 0.6 | [1] | ||||||||||||||||
Diluted | 0.33 | 0.59 | [1] | ||||||||||||||||
Shares used to compute earnings per share (Note 9): | |||||||||||||||||||
Basic | 151,276 | 150,561 | |||||||||||||||||
Diluted | 152,635 | 151,930 | |||||||||||||||||
[1]As adjusted for the retrospective application of an accounting standard. See Note 1 to the consolidated financial statements. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) (USD $) | |||||||||||||||||||
In Thousands | 3 Months Ended
Oct. 03, 2009 | 3 Months Ended
Sep. 27, 2008 | |||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||
Net income | $50,895 | $90,339 | [1] | ||||||||||||||||
Non-cash and other reconciling items: | |||||||||||||||||||
Depreciation and amortization | 15,647 | 19,139 | [1] | ||||||||||||||||
Deferred income taxes | 11,757 | (5,757) | [1] | ||||||||||||||||
Stock-based compensation | 15,124 | 11,510 | |||||||||||||||||
Other, net | 4,504 | 6,890 | |||||||||||||||||
Changes in (net of effects from businesses acquired): | |||||||||||||||||||
Receivables | (219,366) | 78,725 | |||||||||||||||||
Inventories | (135,520) | (57,499) | |||||||||||||||||
Accounts payable | 312,827 | (140,428) | |||||||||||||||||
Accrued expenses and other, net | (49,642) | (8,214) | [1] | ||||||||||||||||
Net cash flows provided by (used for) operating activities | 6,226 | (5,295) | |||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||
Proceeds from (repayment of) bank debt, net (Note 4) | 29,349 | (6,696) | |||||||||||||||||
Proceeds from other debt, net (Note 4) | 210 | 2,154 | |||||||||||||||||
Other, net | 1,873 | 756 | |||||||||||||||||
Net cash flows provided by (used for) financing activities | 31,432 | (3,786) | |||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||
Purchases of property, plant and equipment | (10,314) | (27,578) | |||||||||||||||||
Cash proceeds from sales of property, plant and equipment | 1,241 | 788 | |||||||||||||||||
Acquisition of operations, net of cash acquired (Note 2) and other | (476) | (207,384) | |||||||||||||||||
Net cash flows used for investing activities | (9,549) | (234,174) | |||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 15,266 | (10,269) | |||||||||||||||||
Cash and cash equivalents : | |||||||||||||||||||
- increase (decrease) | 43,375 | (253,524) | |||||||||||||||||
- at beginning of period | 943,921 | 640,449 | |||||||||||||||||
- at end of period | $987,296 | $386,925 | |||||||||||||||||
[1]As adjusted for the retrospective application of an accounting standard. See Note 1 to the consolidated financial statements. |
Basis of presentation
Basis of presentation | |
3 Months Ended
Oct. 03, 2009 USD / shares | |
Basis of presentation [Abstract] | |
Basis of presentation | 1. Basis of presentation In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all adjustments necessary to present fairly the Companys financial position, results of operations and cash flows. All such adjustments are of a normal recurring nature, except for (i)the adoption of an accounting standard which changes the accounting for convertible debt that may be settled in cash as discussed below, and (ii)the restructuring, integration and other charges discussed in Note 12. The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Actual results may differ from these estimates. The Company operates on a 52/53week fiscal year, and as a result, the quarter ended October 3, 2009 contained 14weeks while the quarter ended September27, 2008 contained 13weeks. Interim results of operations are not necessarily indicative of the results to be expected for the full fiscal year. The information included in this Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in the Companys Annual Report on Form 10-K for the fiscal year ended June27, 2009. Management has evaluated events and transactions that occurred after the balance sheet date and through the date these consolidated financial statements were issued. Adoption of accounting standard The Financial Accounting Standards Board issued authoritative guidance which requires the issuer of certain convertible debt instruments that may be settled in cash (or other assets) on conversion to separately account for the debt and equity (conversion option) components of the instrument. The standard requires the convertible debt to be recognized at the present value of its cash flows discounted using the non-convertible debt borrowing rate at the date of issuance. The resulting debt discount from this present value calculation is to be recognized as the value of the equity component and recorded to additional paid in capital. The discounted convertible debt is then required to be accreted up to its face value and recorded as non-cash interest expense over the expected life of the convertible debt. In addition, deferred financing costs associated with the convertible debt are required to be allocated between the debt and equity components based upon relative values. During the first quarter of fiscal 2010, the Company adopted this standard, however, there was no impact to the fiscal 2010 consolidated financial statements because the Companys $300.0million 2% Convertible Senior Debentures (the Debentures), to which this standard applies, were extinguished in fiscal 2009. Due to the required retrospective application of this standard to prior periods, the Company adjusted the prior period comparative consolidated financial statements as summarized in the following tables. June 27, 2009 As Reported Adjustments As Adjusted (Thousands) Additional paid in capital (1) |
Acquisitions
Acquisitions | |
3 Months Ended
Oct. 03, 2009 USD / shares | |
Acquisitions [Abstract] | |
Acquisitions | 2. Acquisitions There were no acquisitions completed during the first quarter of fiscal 2010. During the first quarter of fiscal 2009, the Company completed the following three acquisitions with combined annualized revenues of approximately $500million: Horizon Technology Group plc, Source Electronics Corporation and OnTrack Solutions Pvt. Ltd., which are reported in the TS EMEA, EM Americas and TS Asia reporting units, respectively. Acquisition-related exit activity accounted for in purchase accounting During fiscal 2007 and 2006, the Company recorded certain exit-related liabilities through purchase accounting which consisted of severance for workforce reductions, non-cancelable lease commitments and lease termination charges for leased facilities, and other contract termination costs associated with the exit activities. The following table summarizes the utilization of these reserves during the first three months of fiscal 2010: FY 2007 FY 2006 Total (Thousands) Balance at June27, 2009 $ 698 $ 7,619 $ 8,317 Amounts utilized (172 ) (576 ) (748 ) Other, principally foreign currency translation (8 ) 11 3 Balance at October3, 2009 $ 518 $ 7,054 $ 7,572 As of October3, 2009, the remaining reserves related primarily to facility exit costs and other contractual lease obligations which management expects to be substantially utilized by fiscal 2012. |
Goodwill and intangible assets
Goodwill and intangible assets | |
3 Months Ended
Oct. 03, 2009 USD / shares | |
Goodwill and intangible assets [Abstract] | |
Goodwill and intangible assets | 3. Goodwill and intangible assets The following table presents the carrying amount of goodwill, by reportable segment, for the three months ended October3, 2009: Electronics Technology Marketing Solutions Total (Thousands) Carrying value at June27, 2009 $ 240,388 $ 309,730 $ 550,118 Additions 1,168 1,168 Adjustments (143 ) (143 ) Foreign currency translation (1,118 ) 14 (1,104 ) Carrying value at October3, 2009 $ 240,295 $ 309,744 $ 550,039 As of October3, 2009, Other assets included customer relationship intangible assets with a carrying value of $54,148,000; (consisting of $78,248,000 in original cost value and accumulated amortization and foreign currency translation of $24,100,000). These assets are being amortized over a weighted average life of nine years. Intangible asset amortization expense was $2,175,000 and $5,215,000 for the first quarter of fiscal 2010 and fiscal 2009, respectively. During the first quarter of fiscal 2009, the Company completed the valuation of identifiable intangible assets related to fiscal 2008 acquisitions. As a result, the Company recognized $3,830,000 for cumulative catch up adjustment to amortization expense during the first quarter of fiscal 2009. Amortization expense for the next five years is expected to be approximately $9,000,000 each year. |
External financing
External financing | |
3 Months Ended
Oct. 03, 2009 USD / shares | |
External financing [Abstract] | |
External financing | 4. External financing Short-term debt consists of the following: October 3, June 27, 2009 2009 (Thousands) Bank credit facilities $ 48,532 $ 20,882 Other debt due within one year 1,908 2,412 Short-term debt $ 50,440 $ 23,294 Bank credit facilities consist of various committed and uncommitted lines of credit with financial institutions utilized primarily to support the working capital requirements of foreign operations. The weighted average interest rate on the outstanding bank credit facilities was 1.2% at October3, 2009 and 1.8% at June27, 2009. The Company has an accounts receivable securitization program (the Program) with a group of financial institutions that allows the Company to sell, on a revolving basis, an undivided interest of up to $450,000,000 in eligible receivables while retaining a subordinated interest in a portion of the receivables. The Program does not qualify for sale treatment and, as a result, any borrowings under the Program are recorded as debt on the consolidated balance sheet. The Program contains certain covenants, all of which the Company was in compliance with as of October3, 2009. The Program has a one year term that expires in August2010. There were no amounts outstanding under the Program at October3, 2009. Long-term debt consists of the following: October 3, June 27, 2009 2009 (Thousands) 5.875% Notes due March15, 2014 $ 300,000 $ 300,000 6.00% Notes due September1, 2015 250,000 250,000 6.625% Notes due September15, 2016 300,000 300,000 Other long-term debt 109,514 98,907 Subtotal 959,514 948,907 Discount on notes (2,235 ) (2,334 ) Long-term debt $ 957,279 $ 946,573 The Company has a five-year $500,000,000 unsecured revolving credit facility (the Credit Agreement) with a syndicate of banks which expires in September2012. Under the Credit Agreement, the Company may elect from various interest rate options, currencies and maturities. The Credit Agreement contains certain covenants, all of which the Company was in compliance with as of October3, 2009. At October3, 2009, there were $103,644,000 in borrowings outstanding under the Credit Agreement included in other long-term debt in the preceding table. In addition, there were $2,009,000 in letters of credit issued under the Credit Agreement which represent a utilization of the Credit Agreement capacity but are not recorded in the consolidated balance sheet as the letters of credit are not debt. At June27, 2009, there were $86,565,000 in borrowings outstanding under the Credit Agreement and $1,511,000 in letters of credit issued under the Credit Agreement. At October3, 2009, the carrying value and fair value of the Companys debt was $1,007,719,000 and $1,047,535,000, respectively. Fair value was estimated primarily based upon quoted market prices. |
Derivative financial instrument
Derivative financial instruments | |
3 Months Ended
Oct. 03, 2009 USD / shares | |
Derivative financial instruments [Abstract] | |
Derivative financial instruments | 5. Derivative financial instruments Many of the Companys subsidiaries, on occasion, purchase and sell products in currencies other than their functional currencies. This subjects the Company to the risks associated with fluctuations in foreign currency exchange rates. The Company reduces this risk by utilizing natural hedging (offsetting receivables and payables) as well as by creating offsetting positions through the use of derivative financial instruments, primarily forward foreign exchange contracts with maturities of less than sixty days. The Company continues to have exposure to foreign currency risks to the extent they are not hedged. The Company adjusts all foreign denominated balances and any outstanding foreign exchange contracts to fair market value through the consolidated statements of operations. Therefore, the market risk related to the foreign exchange contracts is offset by the changes in valuation of the underlying items being hedged. The asset or liability representing the fair value of foreign exchange contracts, based upon level 2 criteria under the fair value measurements standard, is classified in the captions other current assets or accrued expenses and other, as applicable, in the accompanying consolidated balance sheets and were not material. In addition, the Company did not have material gains or losses related to the forward contracts which are recorded in other income (expense), net in the accompanying consolidated statements of operations. The Company generally does not hedge its investment in its foreign operations. The Company does not enter into derivative financial instruments for trading or speculative purposes and monitors the financial stability and credit standing of its counterparties. |
Commitments and contingencies
Commitments and contingencies | |
3 Months Ended
Oct. 03, 2009 USD / shares | |
Commitments and contingencies [Abstract] | |
Commitments and contingencies | 6. Commitments and contingencies From time to time, the Company may become a party to, or otherwise involved in pending and threatened litigation, tax, environmental and other matters arising in the ordinary course of conducting its business. Management does not anticipate that any contingent matters will have a material adverse impact on the Companys financial condition, liquidity or results of operations. |
Pension plan
Pension plan | |
3 Months Ended
Oct. 03, 2009 USD / shares | |
Pension plan [Abstract] | |
Pension plan | 7. Pension plan The Companys noncontributory defined benefit pension plan (the Plan) covers substantially all domestic employees. Components of net periodic pension costs during the quarters ended October 3, 2009 and September27, 2008 were as follows: First Quarters Ended October 3, September 27, 2009 2008 (Thousands) Service cost $ $ 4,051 Interest cost 3,937 4,544 Expected return on plan assets (7,534 ) (6,363 ) Recognized net actuarial loss 1,422 581 Amortization of prior service credit (1,221 ) Net periodic pension cost (income) $ (3,396 ) $ 2,813 During the first quarter of fiscal 2010, the Company made contributions to the Plan of $4,750,000. In October2009, the Company agreed to settle a pension litigation matter, subject to court approval, which will require a plan amendment to provide retroactive benefits to certain pension plan participants and which will result in additional pension expense to the Company of approximately $3million per year for each of the next 11years. |
Comprehensive income
Comprehensive income (loss) | |
3 Months Ended
Oct. 03, 2009 USD / shares | |
Comprehensive income (loss) [Abstract] | |
Comprehensive income (loss) | 8. Comprehensive income (loss) First Quarters Ended October 3, September 27, 2009 2008 (Thousands) Net income $ 50,895 $ 90,339 Foreign currency translation adjustments 60,213 (151,664 ) Total comprehensive income (loss) $ 111,108 $ (61,325 ) |
Earnings per share
Earnings per share | |
3 Months Ended
Oct. 03, 2009 USD / shares | |
Earnings per share [Abstract] | |
Earnings per share | 9. Earnings per share First Quarters Ended October 3, September 27, 2009 2008 (1) (Thousands, except per share data) Numerator: Net income $ 50,895 $ 90,339 Denominator: Weighted average common shares for basic earnings per share 151,276 150,561 Net effect of dilutive stock options and performance share awards 1,359 1,369 Weighted average common shares for diluted earnings per share 152,635 151,930 Basic earnings per share $ 0.34 $ 0.60 Diluted earnings per share $ 0.33 $ 0.59 (1) As adjusted for the retrospective application of an accounting standard. See Note 1. Options to purchase 1,635,000 and 1,007,000 shares of the Companys stock were excluded from the calculations of diluted earnings per share for the quarters ended October3, 2009 and September 27, 2008, respectively, because the exercise price for those options was above the average market price of the Companys stock. Therefore, inclusion of these options in the diluted earnings per share calculation would have had an anti-dilutive effect. |
Additional cash flow informatio
Additional cash flow information | |
3 Months Ended
Oct. 03, 2009 USD / shares | |
Additional cash flow information [Abstract] | |
Additional cash flow information | 10. Additional cash flow information Interest and income taxes paid in the three months ended October3, 2009 and September27, 2008 were as follows: First Quarters Ended October 3, September 27, 2009 2008 (Thousands) Interest $ 27,181 $ 31,224 Income taxes 26,710 34,849 |
Segment information
Segment information | |
3 Months Ended
Oct. 03, 2009 USD / shares | |
Segment information [Abstract] | |
Segment information | 11. Segment information First Quarters Ended October 3, September 27, 2009 2008 (1) (Thousands) Sales: Electronics Marketing $ 2,438,081 $ 2,701,479 Technology Solutions 1,916,955 1,792,971 $ 4,355,036 $ 4,494,450 Operating income (loss): Electronics Marketing $ 81,411 $ 138,706 Technology Solutions 51,398 51,107 Corporate (25,737 ) (25,200 ) 107,072 164,613 Restructuring, integration and other charges (Note 12) (18,072 ) (6,161 ) Incremental intangible asset amortization (Note 3) (3,830 ) $ 89,000 $ 154,622 Sales, by geographic area: Americas (2) $ 1,919,127 $ 2,017,171 EMEA (3) 1,347,315 1,496,472 Asia/Pacific (4) 1,088,594 980,807 $ 4,355,036 $ 4,494,450 (1) As adjusted for the retrospective application of an accounting standard. See Note 1. (2) Includes sales in the United States of $1.7billion and $1.8billion for the quarters ended October3, 2009 and September27, 2008, respectively. (3) Includes sales in Germany and United Kingdom of $466.1million and $284.8 million, respectively, for the quarter ended October3, 2009, and $555.5million and $250.0million, respectively, for the quarter ended September27, 2008. (4) Includes sales in Taiwan, Hong Kong and Singapore of $325.5million, $353.3 million and $259.2million, respectively, for the quarter ended October3, 2009 and $333.0million, $298.3million and $249.7million, respectively, for the quarter ended September27, 2008. October 3, June 27, 2009 2009 (Thousands) Assets: Electronics Marketing $ 3,792,309 $ 3,783,364 Technology Solutions 2,261,978 2,036,832 Corporate 653,377 453,320 $ 6,707,664 $ 6,273,516 Property, plant, and equipment, net, by geographic area Americas (5) $ 180,669 $ 183,937 EMEA (6) 106,910 101,261 Asia/Pacific 18,729 20,484 $ 306,308 $ 305,682 (5) Includes property, plant and equipment, net, of $176.2million and $179.6 million as of October3, 2009 and June27, 2009, respectively, in the United States. (6) Includes property, plant and equipment, net, of $42.4million, $24.7million and $26.3million in Germany, Belgium and the United Kingdom, respectively, as of October 3, 2009 and $41.4million, $24.2million and $26.8million, respectively, as of June27, 2009. |
Restructuring, integration and
Restructuring, integration and other charges | |
3 Months Ended
Oct. 03, 2009 USD / shares | |
Restructuring, integration and other charges [Abstract] | |
Restructuring, integration and other charges | 12. Restructuring, integration and other charges Fiscal 2010 During the first quarter of fiscal 2010, the Company incurred restructuring, integration and other charges related to the remaining cost reduction actions announced in fiscal 2009 which were taken in response to market conditions as well as integration costs associated with acquired businesses. Quarter ended October 3, 2009 (Thousands) Restructuring charges $ 15,991 Integration costs 2,931 Other 1,104 Reversal of excess prior year restructuring reserves (1,954 ) Total restructuring, integration and other charges $ 18,072 The activity related to the restructuring charges incurred during the first quarter of fiscal 2010 is presented in the following table: Severance Facility Reserves Exit Costs Other Total (Thousands) Fiscal 2010 pre-tax charges $ 9,683 $ 3,711 $ 2,597 $ 15,991 Amounts utilized (2,934 ) (1,171 ) (13 ) (4,118 ) Other, principally foreign currency translation 2 (15 ) (13 ) Balance at October3, 2009 $ 6,751 $ 2,540 $ 2,569 $ 11,860 Severance charges recorded in the first quarter of fiscal 2010 related to personnel reductions of over 150 employees in administrative, finance and sales functions in connection with the cost reduction actions in all three regions. Facility exit costs consisted of lease liabilities and fixed asset write-downs associated with seven vacated facilities in the Americas, one in EMEA and four in the Asia/Pac region. Other charges consisted primarily of contractual obligations with no on-going benefit to the Company. Cash payments of $2,961,000 are reflected in the amounts utilized during the first quarter of fiscal 2010 and the remaining amounts were related to non-cash asset write downs. As of October3, 2009, management expects the majority of the remaining severance and other reserves to be utilized by the end of fiscal 2012 and the remaining facility exit cost reserves to be utilized by the end of fiscal 2013. During the first quarter of fiscal 2010, the Company incurred integration costs for professional fees, facility moving costs, travel, meeting, marketing and communication costs that were incrementally incurred as a result of the integration efforts of previously acquired businesses. Fiscal 2009 During fiscal 2009, the Company incurred restructuring, integration and other charges related to cost reduction actions, costs for integration activity for acquired business and other items. The following table presents the activity during the first quarter of fiscal 2010 related to the remaining restructuring reserves established during fiscal 2009. Severance Facility Reserves Exit Costs Other Total (Thousands) Balance at June27, 2009 $ 19,471 $ 26,678 $ 2,458 $ 48,607 Amounts utilized (8,159 ) (2,343 ) (34 ) (10,536 ) Ad |