Restructuring, Integration, and Other Charges (Credits)

9 Months Ended

Sep. 26, 2020

Restructuring Charges [Abstract]

Restructuring, Integration and Other Charges (Credits) [Text Block]

Restructuring, Integration, and Other Charges (Credits)

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:

	Quarter Ended				Nine Months Ended
	September 26, 2020		September 28, 2019		September 26, 2020		September 28, 2019
Restructuring and integration charges - current period actions	$	4,161	$	12,484	$	9,150	$	20,562
Restructuring and integration charges (credits) - actions taken in prior periods	(547)		(174)		(1,080)		1,189
Other charges (credits)	(6,454)		30,810		(1,122)		52,941
	$	(2,840)	$	43,120	$	6,948	$	74,692

Restructuring and Integration Accrual Summary

The restructuring and integration accrual was $7,746 and $9,667 at September 26, 2020 and December 31, 2019, respectively. During the third quarter and first nine months of 2020, the company made $3,005 and $9,418 of payments related to restructuring and integration accruals, respectively. Substantially all amounts accrued at September 26, 2020, and all restructuring and integration charges for the first nine months of 2020, relate to the termination of personnel and are expected to be spent in cash within two years.

Other Charges (Credits)

Included in restructuring, integration, and other charges for the third quarter and the first nine months of 2020 are other expenses and credits of $(6,454) and $(1,122), respectively. Other charges and credits include personnel charges of $1,133 and $4,163 for the third quarter and first nine months of 2020, respectively, related to the operating expense reduction program previously disclosed in July 2019. The accrual related to the operating expense reduction program was $16,042 at September 26, 2020, and all accrued amounts are expected to be paid within five years. Other charges and credits also include an insurance recovery related to the Wyle environmental obligation (see Note M).

Included in restructuring, integration, and other charges for the third quarter and first nine months of 2019 are other expenses of $30,810 and $52,941, respectively. Other charges and credits consist primarily of personnel charges for the third quarter and first nine months of $30,906 related to the operating expense reduction program previously disclosed in July 2019, and relocation and other charges (credits) of $(1,039) and $7,694, for the third quarter and first nine months of 2019, respectively, associated with centralization efforts to maximize operating efficiencies.