13. Restructuring, integration and other expenses

Fiscal 2016

During the first quarter of fiscal 2016, the Company took certain actions in an effort to reduce future operating expenses, including the continuation of the restructuring activities started in the fourth quarter of fiscal 2015. In addition, the Company incurred integration and other costs primarily associated with the integration of certain global and regional businesses and the closure or divestiture of certain businesses. The following table presents the restructuring, integration and other expenses recorded during the first quarter of fiscal 2016:


	Quarter Ended
	October 3, 2015
	(Thousands, except per share data)
Restructuring expenses	$	14,526
Integration costs		1,511
Other costs		11,181
Changes in estimates for prior year restructuring liabilities		(1,260)
Restructuring, integration and other expenses before tax	$	25,958
Restructuring, integration and other expenses after tax	$	17,125
Restructuring, integration and other expenses per share on a diluted basis	$	0.12

The activity related to the restructuring liabilities established and other associated expenses incurred during fiscal 2016 is presented in the following table:


			Facility			Asset
	Severance		Exit Costs		Impairments		Other		Total
	(Thousands)
Fiscal 2016 restructuring expenses	$	10,003	$	3,740	$	538	$	245	$	14,526
Cash payments		(5,254)		(632)		—		(68)		(5,954)
Non-cash amounts		—		479		(538)		—		(59)
Other, principally foreign currency translation		(16)		(2)		—		12		(6)
Balance at October 3, 2015	$	4,733	$	3,585	$	—	$	189	$	8,507

Severance expense recorded in the first quarter of fiscal 2016 related to the reduction of over 250 employees, primarily in operations, sales and business support functions, in connection with cost reduction actions taken in both operating groups including the initiation of a voluntary retirement program in the United States. Facility exit costs primarily consist of liabilities for remaining lease obligations for exited facilities. Asset impairments relate to the impairment of property, plant and equipment as a result of the underlying restructuring actions taken in fiscal 2016. Other restructuring costs related primarily to other miscellaneous restructuring and exit costs. Of the $14.5 million in restructuring expenses recorded during the first quarter of fiscal 2016, $4.2 million related to EM and $10.3 million related to TS. As of October 3, 2015, the Company expects the majority of the remaining severance and facility exit costs to be paid by the end of fiscal 2016.

Integration costs are primarily related to the integration of acquired businesses, integration of regional and global business units and incremental costs incurred as part of the consolidation, relocation and closure of warehouse and office facilities. Integration costs include consulting costs for information technology system and business operation integration assistance, facility moving costs, legal fees, travel, meeting, marketing and communication costs that are incrementally incurred as a result of such integration activities. Also included in integration costs are incremental salary costs specific to integration, consolidation and closure activities. Other costs consists primarily of professional fees incurred for acquisitions, additional costs incurred for businesses divested or closed in current or prior periods, any ongoing facilities operating costs associated with the consolidation, relocation and closure of facilities once such facilities have been vacated or substantially vacated, and other miscellaneous costs that relate to restructuring, integration and other expenses. Included in other costs during the first quarter of fiscal 2016 was $4.3 million of expense associated with a liability established for Avnet’s estimated environmental remediation obligations related to legacy manufacturing operations that were divested several decades ago. The remaining, integration and other costs in the first quarter of fiscal 2016 were comprised of many different costs, none of which were individually material.

Fiscal 2015

During fiscal 2015, 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 three months of fiscal 2016 related to the remaining restructuring liabilities established during fiscal 2015:


			Facility
	Severance		Exit Costs		Other		Total
	(Thousands)
Balance at June 27, 2015	$	11,256	$	3,210	$	—	$	14,466
Cash payments		(3,785)		(454)		—		(4,239)
Changes in estimates, net		(1,423)		(29)		—		(1,452)
Non-cash amounts		—		—		—		—
Other, principally foreign currency translation		2,850		(22)		—		2,828
Balance at October 3, 2015	$	8,898	$	2,705	$	—	$	11,603

As of October 3, 2015, the Company expects the majority of the remaining severance and facility exit cost liabilities to be paid by the end of fiscal 2016.

Fiscal 2014 and prior

As of June 27, 2015, there were $11.8 million of restructuring liabilities remaining related to restructuring actions taken in fiscal years 2014 and prior, the majority of which relates to facility exit costs. The remaining balance for such historical restructuring actions as of October 3, 2015, was $8.3 million, which is expected to be paid by the end of fiscal 2016.