Restructuring, Integration, and Other Charges

6 Months Ended

Jul. 02, 2011

Restructuring Charges [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

Restructuring, Integration, and Other Charges

During the second quarters of 2011 and 2010, the company recorded restructuring, integration, and other charges of $5,221 ($3,584 net of related taxes or $.03 per share on both a basic and diluted basis) and $5,649 ($4,095 net of related taxes or $.03 per share on both a basic and diluted basis), respectively.

During the first six months of 2011 and 2010, the company recorded restructuring, integration, and other charges of $14,828 ($10,783 net of related taxes or $.09 per share on both a basic and diluted basis) and $13,086 ($9,640 net of related taxes or $.08 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
	July 2, 2011			July 3, 2010			July 2, 2011			July 3, 2010
Restructuring charges - current period actions	$	4,277		$	5,798		$	8,632		$	10,987
Restructuring and integration charges (credits) - actions taken in prior periods	(1,287		)	(1,056		)	(1,366		)	1,093
Acquisition-related expenses	2,231			907			7,562			1,006
	$	5,221		$	5,649		$	14,828		$	13,086

2011 Restructuring Charge

The following table presents the components of the 2011 restructuring charge of $8,632 and activity in the restructuring accrual for the first six months of 2011:

	Personnel Costs			Facilities			Other			Total
Restructuring charge	$	5,475		$	2,987		$	170		$	8,632
Payments	(2,846		)	(666		)	(170		)	(3,682		)
Foreign currency translation	77			—			—			77
July 2, 2011	$	2,706		$	2,321		$	—		$	5,027

The restructuring charge of $8,632 for the first six months of 2011 primarily includes personnel costs of $5,475 and facilities costs of $2,987.  The personnel costs are related to the elimination of approximately 100 positions within the global components business segment and approximately 30 positions within the global ECS business segment.  The facilities costs are related to exit activities for 10 vacated facilities in the Americas and Europe due to the company's continued efforts to streamline its operations and reduce real estate costs. These initiatives are due to the company's continued efforts to lower cost and drive operational efficiency, primarily related to the integration of recently acquired businesses.

2010 Restructuring Charge

The following table presents the activity in the restructuring accrual for the first six months of 2011 related to the 2010 restructuring:

	Personnel  Costs			Facilities			Other			Total
December 31, 2010	$	2,084		$	1,322		$	974		$	4,380
Restructuring charge (credit)	13			434			(21		)	426
Payments	(1,713		)	(1,028		)	(1,010		)	(3,751		)
Foreign currency translation	64			(16		)	57			105
July 2, 2011	$	448		$	712		$	—		$	1,160

Restructuring and Integration Accruals Related to Actions Taken Prior to 2010

The following table presents the activity in the restructuring and integration accruals for the first six months of 2011 related to restructuring and integration actions taken prior to 2010:

	Personnel Costs			Facilities			Other			Total
December 31, 2010	$	2,020		$	6,237		$	1,410		$	9,667
Restructuring and integration credits	(525		)	(1,194		)	(73		)	(1,792		)
Payments	(672		)	(1,352		)	—			(2,024		)
Foreign currency translation	80			290			—			370
July 2, 2011	$	903		$	3,981		$	1,337		$	6,221

Restructuring and Integration Accrual Summary

In summary, the restructuring and integration accruals aggregate $12,408 at July 2, 2011, all of which is expected to be spent in cash, and are expected to be utilized as follows:

• The accruals for personnel costs of $4,057 to cover the termination of personnel are primarily expected to be spent within one year.

• The accruals for facilities totaling $7,014 relate to vacated leased properties that have scheduled payments of $1,876 in 2011, $2,922 in 2012, $1,294 in 2013, $478 in 2014, $298 in 2015, and $146thereafter.

• Other accruals of $1,337 are expected to be utilized over several years.

Acquisition-Related Expenses

Included in restructuring, integration, and other charges are acquisition-related expenses of $2,231 and $7,562 for the second quarter and first six months of 2011 and $907 and $1,006 for the second quarter and first six months of 2010, respectively, primarily consisting of professional fees directly related to recent acquisition activity.