Arrow Electronics 2010 Annual Report Download - page 75

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ARROW ELECTRONICS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands except per share data)
73
• The accruals for facilities totaling $7,559 relate to vacated leased properties that have scheduled
payments of $3,754 in 2011, $1,599 in 2012, $1,638 in 2013, $375 in 2014, and $193 in 2015.
• Other accruals of $2,384 are expected to be utilized over several years.
Acquisition-Related Expenses
Included in the restructuring, integration, and other charges for 2010 are $12,412 of acquisition-related
expenses, primarily consisting of professional fees directly related to recent acquisition activity.
Included in the restructuring, integration, and other charges for 2009 are $2,841 of contingent
consideration for an acquisition completed in a prior year which was conditional upon the financial
performance of the acquired company and the continued employment of the selling shareholders and
other acquisition-related expenses of $1,035, primarily consisting of professional fees directly related to
recent acquisition activity.
Preference Claim From 2001
In 2008, an opinion was rendered in a bankruptcy proceeding (Bridge Information Systems, et. anno v.
Merisel Americas, Inc. & MOCA) in favor of Bridge Information Systems ("Bridge"), the estate of a former
global ECS customer that declared bankruptcy in 2001. The proceeding is related to sales made in 2000
and early 2001 by the MOCA division of ECS, a company Arrow purchased from Merisel Americas in the
fourth quarter of 2000. The court held that certain of the payments received by the company at the time
were preferential and must be returned to Bridge. Accordingly, during 2008, the company recorded a
charge of $10,890, in connection with the preference claim from 2001, including legal fees.
10. Shareholders' Equity
The following table sets forth the activity in the number of shares outstanding (in thousands):
Common
Stock
Issued
Treasury
Stock
Common
Stock
Outstanding
Common stock outstanding at December 31, 2007 125,039 2,212 122,827
Shares issued for stock-based compensation awards 9 (313 ) 322
Repurchases of common stock - 3,841 (3,841)
Common stock outstanding at December 31, 2008 125,048 5,740 119,308
Shares issued for stock-based compensation awards 239 (418 ) 657
Repurchases of common stock - 137 (137)
Common stock outstanding at December 31, 2009 125,287 5,459 119,828
Shares issued for stock-based compensation awards 50 (1,070 ) 1,120
Repurchases of common stock - 6,301 (6,301)
Common stock outstanding at December 31, 2010 125,337 10,690 114,647
The company has 2,000,000 authorized shares of serial preferred stock with a par value of one dollar.
There were no shares of serial preferred stock outstanding at December 31, 2010 and 2009.