Restructuring expenses

3 Months Ended

Sep. 28, 2019

Restructuring expenses

Restructuring expenses

14. Restructuring expenses

Fiscal 2020

During fiscal 2020, the Company undertook restructuring actions in order to improve operating efficiencies and further integrate the acquisition of Farnell. 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 and assets established during fiscal 2020 is presented in the following table:

			Asset
	Severance		Impairments		Total
	(Thousands)
Fiscal 2020 restructuring expenses	$	11,576	$	6,711	$	18,287
Cash payments		(5,730)		—		(5,730)
Non-cash amounts		—		(6,711)		(6,711)
Other, principally foreign currency translation		(115)		—		(115)
Balance at September 28, 2019	$	5,731	$	—	$	5,731

Severance expense recorded in the first quarter of fiscal 2020 related to the reduction, or planned reduction, of over 200 employees, primarily in executive management, operations, information technology, warehouse, sales and business support functions. Asset impairments relate primarily to software assets that were impaired as a result of the restructuring of information technology operations including the re-prioritization of information technology initiatives and resources. Of the $18.3 million in restructuring expenses recorded during the first quarter of fiscal 2020, $15.1 million related to EC and $3.2 million related to Farnell. The Company expects the majority of the remaining severance amounts to be paid by the end of fiscal 2020.

Fiscal 2019 and prior

During fiscal 2019 and prior, 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 quarter of fiscal 2020 related to the remaining restructuring liabilities from continuing operations established during fiscal 2019 and prior:

			Facility
			and Contract
	Severance		Exit Costs		Total
	(Thousands)
Balance at June 29, 2019	$	21,537	$	5,381	$	26,918
Cash payments		(7,231)		(2,055)		(9,286)
Changes in estimates, net		(1,455)		618		(837)
Other, principally foreign currency translation		(63)		(124)		(187)
Balance at September 28, 2019	$	12,788	$	3,820	$	16,608

The Company expects the majority of the remaining amounts to be paid by the end of fiscal 2020.