Restructuring, Integration, and Other Charges

12 Months Ended

Dec. 31, 2019

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:

	2019		2018		2017
Restructuring and integration charges - current period actions	$	22,256	$	23,698	$	46,816
Restructuring and integration charges - actions taken in prior periods	636		7,517		6,191
Other charges	66,893		29,146		21,581
	$	89,785	$	60,361	$	74,588

Restructuring and Integration Accrual Summary

The restructuring and integration accrual was $9,667 and $25,829 at December 31, 2019 and December 31, 2018, respectively. A transition adjustment of $9,968 was recorded on January 1, 2019 to reclassify restructuring and integration accruals for facilities costs by adjusting the related lease right-of-use assets recorded upon adoption of ASU No. 2016-02, Topic 842. During the year ended December 31, 2019, the company made $28,936 of payments related to restructuring and integration accruals. Substantially all amounts accrued at December 31, 2019 and all restructuring and integration charges for the year ending December 31, 2019 relate to the termination of personnel. Substantially all amounts accrued at December 31, 2019 are expected to be spent in cash within two years.

Other Charges

Included in restructuring, integration, and other charges for 2019 are other expenses of $66,893. The following items represent other charges and credits recorded to restructuring, integration, and other charges for the year ended December 31, 2019:

• acquisition-related charges of $1,790 for professional and other fees directly related to recent acquisition activity as well as contingent consideration for acquisitions completed in prior years; and

• relocation and other charges associated with centralization efforts to maximize operating efficiencies of $8,959; and

• personnel charges of $45,951 related to the operating expense reduction program previously disclosed in July 2019. The accrual related to the operating expense reduction program was $24,252 at December 31, 2019, and all accrued amounts are expected to be paid within one year.

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 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 16);

• 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.