Avnet 2005 Annual Report Download - page 63

Download and view the complete annual report

Please find page 63 of the 2005 Avnet annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 87

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87

AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
7. External financing
Short-term debt consists of the following:
July 2, July 3,
2005 2004
(Thousands)
Bank credit facilities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $60,468 $ 70,096
4.5% Convertible Notes due September 1, 2004 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì 2,956
7
7
/
8
% Notes due February 15, 2005 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì 86,633
Other debt due within one year ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 830 975
Short-term debt ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $61,298 $160,660
The bank credit facilities consist of various committed and uncommitted lines of credit with financial
institutions utilized primarily to support the working capital requirements of foreign operations. The weighted
average interest rates on the bank credit facilities at July 2, 2005 and July 3, 2004 were 4.0% and 2.5%,
respectively.
During fiscal 2005, the Company repaid the remaining $2,956,000 of the 4.5% Convertible Notes that
matured on September 1, 2004 and repaid the remaining $86,633,000 of the 7
7
/
8
% Notes that matured on
February 15, 2005.
Long-term debt consists of the following:
July 2, July 3,
2005 2004
(Thousands)
8.00% Notes due November 15, 2006 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 400,000 $ 400,000
9
3
/
4
% Notes due February 15, 2008 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 475,000 475,000
2% Convertible Senior Debentures due March 15, 2034ÏÏÏÏÏÏÏÏÏÏÏÏÏ 300,000 300,000
Other long-term debtÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 7,285 7,597
SubtotalÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,182,285 1,182,597
Fair value adjustment for hedged 8.00% and 9
3
/
4
% NotesÏÏÏÏÏÏÏÏÏÏÏÏ 910 13,563
Long-term debt ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $1,183,195 $1,196,160
During August 2005, the Company issued $250,000,000 of 6.00% Notes due September 1, 2015 (the
""6% Notes''). The proceeds from the offering, net of discount and underwriting fees, were $246,483,000. Also
during August 2005, the Company made a tender offer to repurchase up to $250,000,000 of the 8.00% Notes
due November 15, 2006 (the ""8% Notes''), at a price of $1,045 per $1,000 principal amount of Notes. The
proceeds of the 6% Notes will be used to repurchase the 8% Notes which will be tendered on September 13,
2005.
In August 2005, the Company amended the Program to, among other things, increase the maximum
amount available for borrowing from $350,000,000 to $450,000,000. In addition, the amended Program now
provides that financing under the Program no longer qualifies as off-balance sheet financing. As a result, the
receivables and related debt obligation will remain on the Company's consolidated balance sheet when
amounts are drawn on the Program. The Program, as amended, has a one year term which expires in August
2006 (see Note 3).
In March 2004, the Company issued $300,000,000 of 2% Convertible Senior Debentures due March 15,
2034 (the ""Debentures''). The Debentures are convertible into Avnet common stock at a rate of
55