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Restructuring, Integration, and Other Charges
 6 Months Ended
Jun. 28, 2014
Restructuring Charges [Abstract]  
Restructuring, Integration and Other Charges [Text Block]
Restructuring, Integration, and Other Charges

During the second quarters of 2014 and 2013, the company recorded restructuring, integration, and other charges of $9,632 ($7,526 net of related taxes or $.08 and $.07 per share on a basic and diluted basis, respectively) and $30,224 ($20,688 net of related taxes or $.20 per share on both a basic and diluted basis), respectively.

During the first six months of 2014 and 2013, the company recorded restructuring, integration, and other charges of $21,246 ($15,546 net of related taxes or $.16 and $.15 per share on a basic and diluted basis, respectively) and $51,834 ($36,183 net of related taxes or $.35 and $.34 per share on a basic and diluted basis, respectively), respectively.

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

 
 
Quarter Ended
 
Six Months Ended
 
 
June 28,
2014
 
June 29,
2013
 
June 28,
2014
 
June 29,
2013
Restructuring and integration charge - current period actions
 
$
10,993

 
$
27,305

 
$
21,406

 
$
45,864

Restructuring and integration charges (credits) - actions taken in prior periods
 
(513
)
 
711

 
(351
)
 
921

Acquisition-related expenses (credits)
 
(848
)
 
2,208

 
191

 
5,049

 
 
$
9,632

 
$
30,224

 
$
21,246

 
$
51,834











2014 Restructuring and Integration Charge

The following table presents the components of the 2014 restructuring and integration charge of $21,406 and activity in the related restructuring and integration accrual for the first six months of 2014:

 
 
Personnel
Costs
 
Facilities Costs
 
Other
 
Total
Restructuring and integration charge
 
$
18,254

 
$
1,971

 
$
1,181

 
$
21,406

Payments
 
(11,288
)
 
(1,032
)
 
(443
)
 
(12,763
)
Non-cash usage
 
—

 
—

 
(729
)
 
(729
)
Foreign currency translation
 
(48
)
 
(1
)
 
—

 
(49
)
Balance as of June 28, 2014
 
$
6,918

 
$
938

 
$
9

 
$
7,865


 
The restructuring and integration charge of $21,406 for the first six months of 2014 includes personnel costs of $18,254, facilities costs of $1,971, and other costs of $1,181.  The personnel costs are related to the elimination of approximately 150 positions within the global ECS business segment and approximately 140 positions within the global components business segment. The facilities costs are related to exit activities for nine vacated facilities in the Americas and EMEA due to the company's continued efforts to streamline its operations and reduce real estate costs. These restructuring initiatives are due to the company's continued efforts to lower cost and drive operational efficiency. Integration costs are primarily related to the integration of acquired businesses within the company's pre-existing business and the consolidation of certain operations.

2013 Restructuring and Integration Charge

The following table presents the activity in the restructuring and integration accrual for the first six months of 2014 related to the 2013 restructuring and integration:

 
 
Personnel 
Costs
 
Facilities Costs
 
Other
 
Total
Balance as of December 31, 2013
 
$
25,721

 
$
5,808

 
$
208

 
$
31,737

Restructuring and integration charge (credit)
 
(740
)
 
461

 
—

 
(279
)
Payments
 
(20,227
)
 
(3,328
)
 
(90
)
 
(23,645
)
Foreign currency translation
 
(188
)
 
(9
)
 
(2
)
 
(199
)
Balance as of June 28, 2014
 
$
4,566

 
$
2,932

 
$
116

 
$
7,614


Restructuring and Integration Accruals Related to Actions Taken Prior to 2013

The following table presents the activity in the restructuring and integration accruals for the first six months of 2014 related to restructuring and integration actions taken prior to 2013:

 
 
Personnel
Costs
 
Facilities Costs
 
Total
Balance as of December 31, 2013
 
$
1,822

 
$
2,592

 
$
4,414

Restructuring and integration charges (credits)
 
18

 
(90
)
 
(72
)
Payments
 
(794
)
 
(1,355
)
 
(2,149
)
Foreign currency translation
 
(18
)
 
25

 
7

Balance as of June 28, 2014
 
$
1,028

 
$
1,172

 
$
2,200






Restructuring and Integration Accrual Summary

In summary, the restructuring and integration accruals aggregate $17,679 at June 28, 2014, all of which are expected to be spent in cash, and are expected to be utilized as follows:

•
The accruals for personnel costs totaling $12,512 to cover the termination of personnel are primarily expected to be spent within one year. 

•
The accruals for facilities totaling $5,042 relate to vacated leased properties that have scheduled payments of $2,655 in 2014, $1,528 in 2015, $537 in 2016, $133 in 2017, and $189 in 2018.

•
Other accruals of $125 is expected to be spent within one year.

Acquisition-Related Expenses

Included in restructuring, integration, and other charges for the second quarter and first six months of 2014 are acquisition-related expenses (credits) of $(848) and $191, respectively, primarily consisting of professional fees directly related to recent acquisition activity, offset by an insurance recovery related to environmental matters in connection with the Wyle Electronics ("Wyle") acquisition.

Included in restructuring, integration, and other charges for the second quarter and first six months of 2013 are acquisition-related expenses of $2,208 and $5,049, respectively, primarily consisting of charges related to contingent consideration for acquisitions completed in prior years which were conditional upon the financial performance of the acquired companies and the continued employment of the selling shareholders, as well as professional fees directly related to recent acquisition activity.