Restructuring expenses

12 Months Ended

Jul. 03, 2021

Restructuring expenses

Restructuring expenses

18. Restructuring expenses

Fiscal 2021

During fiscal 2021, the Company undertook restructuring actions to improve operating efficiencies and reduce 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 associated with restructuring activities established during fiscal 2021 is presented in the following table:

			Facility
			and Contract
	Severance		Exit Costs		Total
	(Thousands)
Fiscal 2021 restructuring expenses	$	54,581	$	4,856	$	59,437
Cash payments		(24,171)		(1,851)		(26,022)
Non-cash amounts		—		(56)		(56)
Other, principally foreign currency translation		426		4		430
Balance at July 3, 2021	$	30,836	$	2,953	$	33,789

Severance expense recorded in fiscal 2021 related to the reduction, or planned reduction, of over 600 employees, primarily in executive management, operations, information technology, warehouse, and business support functions. Of the $59.4 million in restructuring expenses recorded during fiscal 2021, $39.0 million related to EC, $9.1 million related to Farnell, and $11.3 million related to Corporate. The Company expects most of the remaining amounts to be paid by the end of fiscal 2022.

Fiscal 2020 and prior

During fiscal 2020 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 fiscal 2021 related to the restructuring liabilities established during fiscal 2020 and prior:

			Facility
			and Contract
	Severance		Exit Costs		Total
	(Thousands)
Balance at June 27, 2020	$	13,574	$	3,368	$	16,942
Cash payments		(6,711)		(1,467)		(8,178)
Changes in estimates, net		(3,231)		(207)		(3,438)
Other, principally foreign currency translation		631		216		847
Balance at July 3, 2021	$	4,263	$	1,910	$	6,173

The Company expects the majority of the remaining amounts to be paid by the end of fiscal 2022.