Restructuring, Integration, and Other Charges

12 Months Ended

Dec. 31, 2018

Restructuring Charges [Abstract]

Restructuring, Integration and Other Charges [Text Block]

Restructuring, Integration, and Other Charges

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. The following table presents the components of the restructuring, integration, and other charges for the years ended December 31:

	2018		2017		2016
Restructuring and integration charges - current period actions	$	23,698	$	46,816	$	32,894
Restructuring and integration charges - actions taken in prior periods	7,517		6,191		3,611
Other charges	29,146		21,581		24,886
	$	60,361	$	74,588	$	61,391

2018 Restructuring and Integration Charge

The following table presents the components of the 2018 restructuring and integration charge of $23,698 and activity in the related restructuring and integration accrual for 2018:

	Personnel Costs			Facilities Costs			Other			Total
Restructuring and integration charge	$	15,323		$	8,240		$	135		$	23,698
Payments	(12,099		)	(3,547		)	(35		)	(15,681		)
Foreign currency translation	(478		)	(177		)	(1		)	(656		)
Balance as of December 31, 2018	$	2,746		$	4,516		$	99		$	7,361

2017 Restructuring and Integration Charge

The following table presents the components of the 2017 restructuring and integration charge of $46,816 and activity in the related restructuring and integration accrual for 2017 and 2018:

	Personnel  Costs			Facilities Costs			Other			Total
Restructuring and integration charge	$	37,615		$	8,192		$	1,009		$	46,816
Payments	(23,384		)	(3,494		)	(926		)	(27,804		)
Foreign currency translation	1,045			176			17			1,238
Balance as of December 31, 2017	15,276			4,874			100			20,250
Restructuring and integration charge	2,456			2,870			61			5,387
Payments	(11,450		)	(2,696		)	(58		)	(14,204		)
Foreign currency translation	(1,550		)	(284		)	(9		)	(1,843		)
Balance as of December 31, 2018	$	4,732		$	4,764		$	94		$	9,590

Restructuring and Integration Accruals Related to Actions Taken Prior to 2017

Included in restructuring, integration, and other charges for 2018 are restructuring and integration charges of $2,130 related to restructuring and integration actions taken prior to 2017. The restructuring and integration charge includes adjustments to personnel costs of $1,131 and facilities costs of $999. The restructuring and integration accruals related to actions taken prior to 2017 of $8,878, include accruals for personnel costs of $8,060, accruals for facilities costs of $688, and accrual for other costs of $130.

Restructuring and Integration Accrual Summary

In summary, the restructuring and integration accruals aggregate $25,829 at December 31, 2018, all of which are expected to be spent in cash, and are expected to be utilized as follows:

• The accruals for personnel costs totaling $15,538 relate to the termination of personnel that have scheduled payouts of $14,299 in 2019 and $1,239 in 2020. 

• The accruals for facilities totaling $9,968 relate to vacated leased properties that have scheduled payments of $4,074 in 2019, $1,954 in 2020, $1,134 in 2021, $781 in 2022, $765 in 2023, and $1,260 thereafter.

• The accruals for other totaling $323 have scheduled payments of $21 in 2019 and $302 in 2020.

Other Charges

Included in restructuring, integration, and other charges for 2018 are other expenses of $29,146. The following items represent other charges and credits recorded to restructuring, integration, and other charges for the year ended December 31, 2018:

• acquisition related charges for 2018 of $10,236 related to professional and other fees directly related to recent acquisition activity as well as contingent consideration for acquisitions completed in prior years; and

• $11,188 in charges related to relocation and infrastructure upgrades of the company’s data centers, and other centralization efforts to maximize operating efficiencies.

Included in restructuring, integration, and other charges for 2017 are other expenses of $21,581. The following items represent other charges and credits recorded to restructuring, integration, and other charges for the year ended December 31, 2017:

• an additional expense of $2,071 to increase its accrual for the Wyle environmental obligation (see Note 15);

• acquisition related charges for 2017 of $7,658 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 and other fees directly related to recent acquisition activity; and

• a net loss on real estate transaction of $3,144.

Included in restructuring, integration, and other charges for 2016 are other expenses of $24,886. The following items represent other charges and credits recorded to restructuring, integration, and other charges for the year ended December 31, 2016:

• an additional expense of $11,771 to increase its accrual for the Wyle environmental obligation (see Note 15);

• acquisition related charges for 2016 of $8,705 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 and other fees directly related to recent acquisition activity;

• a fraud loss, net of insurance recoveries and incremental expenses, of $4,329; and

• a credit related to the release of a $2,376 legal reserve.

In January 2016, the company determined that it was the target of criminal fraud by persons impersonating a company executive, which resulted in unauthorized transfers of cash from a company account in Europe to outside bank accounts in Asia. Legal actions by the company and law enforcement are ongoing. The information gathered by the company indicates that this was an isolated event not associated with a security breach or loss of data. Additionally, no officers or employees of the company were involved in the fraud.