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Restructuring, Integration, and Other Charges
 6 Months Ended
Jun. 30, 2012
Restructuring Charges [Abstract]  
Restructuring, Integration and Other Charges [Text Block]
Restructuring, Integration, and Other Charges

During the second quarters of 2012 and 2011, the company recorded restructuring, integration, and other charges of $13,347 ($9,702 net of related taxes or $.09 per share on both a basic and diluted basis) and $5,221 ($3,584 net of related taxes or $.03 per share on both a basic and diluted basis), respectively.

During the first six months of 2012 and 2011, the company recorded restructuring, integration, and other charges of $21,590 ($15,843 net of related taxes or $.14 per share on both a basic and diluted basis) and $14,828 ($10,783 net of related taxes or $.09 per share on both a basic and diluted basis), respectively.

The following table presents the components of the restructuring, integration, and other charges:

 
 
Quarter Ended
 
Six Months Ended
 
 
June 30,
2012
 
July 2,
2011
 
June 30,
2012
 
July 2,
2011
Restructuring charges - current period actions
 
$
9,430

 
$
4,277

 
$
14,847

 
$
8,632

Restructuring and integration charges (credits) - actions taken in prior periods
 
(60
)
 
(1,287
)
 
427

 
(1,366
)
Acquisition-related expenses
 
3,977

 
2,231

 
6,316

 
7,562

 
 
$
13,347

 
$
5,221

 
$
21,590

 
$
14,828





2012 Restructuring Charge

The following table presents the components of the 2012 restructuring charge of $14,847 and activity in the related restructuring accrual for the first six months of 2012:

 
 
Personnel
Costs
 
Facilities
 
Asset
Write-down
 
Total
Restructuring charge
 
$
10,366

 
$
331

 
$
4,150

 
$
14,847

Payments
 
(5,304
)
 
(115
)
 
—

 
(5,419
)
Non-cash usage
 
—

 
—

 
(4,150
)
 
(4,150
)
Foreign currency translation
 
(6
)
 
—

 
—

 
(6
)
Balance as of June 30, 2012
 
$
5,056

 
$
216

 
$
—

 
$
5,272


 
The restructuring charge of $14,847 for the first six months of 2012 primarily includes personnel costs of $10,366, facilities costs of $331, and asset write-downs of $4,150.  The personnel costs are related to the elimination of approximately 185 positions within the global components business segment and approximately 85 positions within the global ECS business segment. The facilities costs are related to exit activities for six vacated facilities worldwide due to the company's continued efforts to streamline its operations and reduce real estate costs. The asset write-downs resulted from the company's decision to exit certain business activities which causes these assets to become redundant and have no future benefit. These restructuring initiatives are due to the company's continued efforts to lower cost and drive operational efficiency.

2011 Restructuring Charge

The following table presents the activity in the restructuring accrual for the first six months of 2012 related to the 2011 restructuring:

 
 
Personnel 
Costs
 
Facilities
 
Total
Balance as of December 31, 2011
 
$
5,517

 
$
3,190

 
$
8,707

Restructuring charge (credit)
 
2,234

 
(245
)
 
1,989

Payments
 
(5,435
)
 
(1,100
)
 
(6,535
)
Foreign currency translation
 
(50
)
 
4

 
(46
)
Balance as of June 30, 2012
 
$
2,266

 
$
1,849

 
$
4,115


Restructuring and Integration Accruals Related to Actions Taken Prior to 2011

The following table presents the activity in the restructuring and integration accruals for the first six months of 2012 related to restructuring and integration actions taken prior to 2011:

 
 
Personnel
Costs
 
Facilities
 
Other
 
Total
Balance as of December 31, 2011
 
$
511

 
$
3,882

 
$
1,309

 
$
5,702

Restructuring and integration credits
 
(121
)
 
(132
)
 
(1,309
)
 
(1,562
)
Payments
 
(60
)
 
(768
)
 
—

 
(828
)
Foreign currency translation
 
(7
)
 
(9
)
 
—

 
(16
)
Balance as of June 30, 2012
 
$
323

 
$
2,973

 
$
—

 
$
3,296








Restructuring and Integration Accrual Summary

In summary, the restructuring and integration accruals aggregate $12,683 at June 30, 2012, all of which is expected to be spent in cash, and are expected to be utilized as follows:

•
The accruals for personnel costs totaling $7,645 to cover the termination of personnel are primarily expected to be spent within one year. 

•
The accruals for facilities totaling $5,038 relate to vacated leased properties that have scheduled payments of $2,015 in 2012, $1,437 in 2013, $776 in 2014, $346 in 2015, $283 in 2016, and $181 thereafter.

Acquisition-Related Expenses

Included in restructuring, integration, and other charges are acquisition-related expenses of $3,977 and $6,316 for the second quarter and first six months of 2012 and $2,231 and $7,562 for the second quarter and first six months of 2011, respectively, primarily consisting of professional fees directly related to recent acquisition activity.