Restructuring expenses

12 Months Ended

Jul. 01, 2017

Restructuring expenses

Restructuring expenses

18. Restructuring expenses

Fiscal 2017

During fiscal 2017, the Company took certain actions in an effort to integrate acquisitions and to reduce future operating expenses. Restructuring expenses are included as a component of restructuring, integration and other expenses in the consolidated statements of operations. The activity related to the restructuring liabilities from continuing operations established during fiscal 2017 is presented in the following table:

			Facility			Asset
	Severance		Exit Costs		Impairments		Other		Total
	(Thousands)
Fiscal 2017 restructuring expenses	$	36,073	$	668	$	3,478	$	1,500	$	41,719
Cash payments		(20,118)		(596)		—		(1,500)		(22,214)
Non-cash amounts		(3,939)		—		(3,478)		—		(7,417)
Other, principally foreign currency translation		170		4		—		—		174
Balance at July 1, 2017	$	12,186	$	76	$	—	$	—	$	12,262

Severance expense recorded in fiscal 2017 related to the reduction, or planned reduction, of over 350 employees, primarily in executive 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 of long-lived assets as a result of the underlying restructuring activities. Other restructuring costs related primarily to other miscellaneous restructuring and exit costs. The Company expects the majority of the remaining amounts to be paid by the end of fiscal 2018. Of the $41.7 million in restructuring expenses recorded during fiscal 2017, $28.4 million related to EC, $3.0 million related to PF and $10.3 million related to Corporate executive and business support functions

Fiscal 2016

During fiscal 2016, the Company incurred restructuring expenses related to various restructuring actions intended to reduce future operating expenses. The fiscal 2017 activity related to the restructuring liabilities from continuing operations established during fiscal 2016 is presented in the following table:

			Facility
	Severance		Exit Costs		Other		Total
	(Thousands)
Balance at July 2, 2016	$	9,854	$	1,130	$	3	$	10,987
Cash payments		(5,742)		(289)		(3)		(6,034)
Changes in estimates, net		(1,574)		(550)		—		(2,124)
Non-cash amounts		—		—		—		—
Other, principally foreign currency translation		(37)		(1)		—		(38)
Balance at July 1, 2017	$	2,501	$	290	$	—	$	2,791

As of July 1, 2017, management expects the majority of the remaining severance, and facility exit liabilities related to fiscal 2016 restructuring actions to be utilized by the end of fiscal 2018.

Fiscal 2015 and prior

As of July 2, 2016, there was $4.5 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 liabilities as of July 1, 2017 was $1.9 million, which is expected to be paid by the end of fiscal 2018.