14. Restructuring, integration and other expenses

Fiscal 2017

During the first quarter of fiscal 2017, the Company took certain actions in an effort to reduce future operating expenses including actions related to the Avnet Advantage, which is an initiative focused on creating long-term operational efficiencies. In addition, the Company incurred integration, acquisition/divestiture and other costs as discussed further below. The following table presents the restructuring, integration and other expenses recorded during the first quarter of fiscal 2017:


	Quarter Ended
	October 1, 2016
	(Thousands, except per share data)
Restructuring expenses	$	14,988
Integration costs		2,533
Acquisition and divestiture costs		9,418
Other costs		7,696
Changes in estimates for prior year restructuring liabilities		(942)
Restructuring, integration and other expenses before tax	$	33,693
Less: Restructuring, integration and other expenses - discontinued operations	$	(4,224)
Restructuring, integration and other expenses before tax - continuing operations	$	29,469
Restructuring, integration and other expenses after tax - continuing operations	$	20,223
Restructuring, integration and other expenses per share on a diluted basis	$	0.16

The activity related to the restructuring liabilities established and other associated expenses incurred during fiscal 2017 is presented in the following table:


			Facility			Asset
	Severance		Exit Costs		Impairments		Other		Total
	(Thousands)
Fiscal 2017 restructuring expenses	$	12,046	$	1,375	$	—	$	1,567	$	14,988
Cash payments		(2,634)		(133)		—		(1,529)		(4,296)
Non-cash amounts		—		—		—		—		—
Other, principally foreign currency translation		4		—		—		—		4
Balance at October 1, 2016	$	9,416	$	1,242	$	—	$	38	$	10,696

Severance expense recorded in the first quarter of fiscal 2017 related to the reduction, or planned reduction, of over 100 employees, primarily in senior management, operations, sales and business support functions. Facility exit costs primarily consist of liabilities for remaining lease obligations for exited facilities. Asset impairments relate to the impairment (if any) of property, plant and equipment as a result of the underlying restructuring activities. Other restructuring costs related primarily to other miscellaneous restructuring and exit costs. Of the $15.0 million in restructuring expenses recorded during the first quarter of fiscal 2017, $6.6 million related to EM, $3.2 million related to TS, and $5.2 million related to Corporate. The Company expects the majority of the remaining severance and facility exit costs to be paid by the end of fiscal 2017.

Integration costs are primarily related to the integration of acquired businesses, the integration of certain regional and global businesses including Avnet after the TS divestiture, the integration of significant information technology systems, and incremental costs incurred as part of the consolidation, relocation and closure of warehouse and office facilities. Integration costs include certain consulting costs for significant new information technology systems and business operation integration assistance, facility moving costs, legal fees, travel, meeting, training, marketing and communication costs that are specifically and 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.

Acquisition/divestiture costs consist primarily of professional fees and other costs incurred related to the acquisition, divestiture and closure of businesses including the acquisition of PF and the planned divestiture of TS.

Other costs consist primarily of 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. Included in other costs during the first quarter of fiscal 2017 was $6.4 million of expense associated with the settlement of lawsuits associated with operations of an acquired business prior to Avnet’s acquisition in fiscal 2013. The remaining integration and other costs incurred in the first quarter of fiscal 2017 were comprised of many different costs, none of which were individually material.

Fiscal 2016

During fiscal 2016, the Company incurred restructuring expenses related to various restructuring actions intended to achieve planned synergies from acquired businesses and to reduce future operating expenses. The following table presents the activity during the first three months of fiscal 2017 related to the remaining restructuring liabilities established during fiscal 2016:


			Facility
	Severance		Exit Costs		Other		Total
	(Thousands)
Balance at July 2, 2016	$	14,221	$	4,093	$	223	$	18,537
Cash payments		(5,697)		(577)		(46)		(6,320)
Changes in estimates, net		(479)		(124)		62		(541)
Non-cash amounts		—		—		(60)		(60)
Other, principally foreign currency translation		50		(2)		(55)		(7)
Balance at October 1, 2016	$	8,095	$	3,390	$	124	$	11,609

As of October 1, 2016, the Company expects the majority of the remaining severance and facility exit cost liabilities to be paid by the end of fiscal 2017.

Fiscal 2015 and prior

As of July 2, 2016, there were $7.5 million of restructuring liabilities remaining related to restructuring actions taken in fiscal years 2015 and prior, the majority of which relates to facility exit costs. The remaining balance for such historical restructuring actions as of October 1, 2016, was $6.1 million, which is expected to be paid by the end of fiscal 2017.