Avnet 2002 Annual Report Download - page 80

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AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
Years Ended
June 28, June 29, June 30,
2002 2001 2000
(Millions)
Sales, by geographic area, are as follows:
AmericasÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $5,295.2 $ 8,746.0 $7,420.9
EMEA (Europe, Middle East and Africa) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2,900.3 3,511.6 2,055.9
Asia/PaciÑc ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 724.7 556.4 438.2
$8,920.2 $12,814.0 $9,915.0
Assets, by geographic area, are as follows:
AmericasÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $2,771.5 $ 3,946.0 $4,486.9
EMEA (Europe, Middle East and Africa) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,460.4 1,532.8 1,165.8
Asia/PaciÑc ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 450.0 385.3 281.7
$4,681.9 $ 5,864.1 $5,934.4
The Company manages its business based upon the operating results of its three operating units before
special charges (see Note 17). In each of the three years presented above, approximate unallocated special
charges related to EM, CM and AC, respectively, were $12,811,000, $31,336,000 and $1,191,000 in 2002,
$96,912,000, $17,062,000 and $5,000,000 in 2001 and $43,119,000, $3,146,000 and $0 in 2000. The remaining
special charges in each year relate to corporate activities.
As a result of the goodwill impairment charge recorded as a cumulative eÅect of change in accounting
principle and the suspension of amortization of goodwill in accordance with SFAS 142 (see Note 6), there is a
signiÑcant decrease in the amount of assets and depreciation and amortization expense recorded at Corporate
in 2002 as compared with 2001. Beginning in 2003, the Company has allocated its remaining goodwill to the
applicable unit level in order to better evaluate and measure performance of its unit and segment operations.
Had this reclassiÑcation been recorded in 2002, the total assets by segment at June 28, 2002 would have been
$2,940,800,000, $888,200,000, $513,800,000 and $339,100,000 for EM, CM, AC and Corporate, respectively.
Similarly, the June 28, 2002 assets by geographic area would have been $2,846,700,000, $1,444,000,000 and
$391,200,000 for the Americas, EMEA and Asia/PaciÑc, respectively.
17. Special charges:
Reorganization and integration charges:
Over the course of the past three years, the Company has recorded a number of special charges which
generally related either to charges stemming from acquisition and integration of newly acquired businesses or
the reorganization of operations in each of the three major regions of the world in which the Company
operates. During that period, the Company has also recorded other non-recurring items, generally taken in
response to business conditions at the time of the charge, including impairments recorded to certain of its
Internet-related investments.
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