Avnet 2005 Annual Report Download - page 72

Download and view the complete annual report

Please find page 72 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)
The following information relates to options outstanding at July 2, 2005:
Options Outstanding Options Exercisable
Weighted
Weighted Average Weighted
Number of Average Remaining Average
Options Exercise Contractual Number of Exercise
Range of Exercise Prices Outstanding Price Life Options Price
$15.00 and below ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,453,331 $12.83 82 Months 713,792 $12.80
15.00 to 20.00 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4,733,566 17.82 81 Months 2,275,176 17.81
20.00 to 25.00 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,871,597 22.74 39 Months 1,789,222 22.76
25.00 to 30.00 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,262,693 27.86 64 Months 1,223,943 27.94
30.00 to 35.00 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 564,466 31.64 28 Months 564,292 31.64
35.00 and above ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 69,548 47.62 31 Months 69,548 47.62
9,955,201 20.28 68 Months 6,635,973 21.96
Employee stock purchase plan
In October 1995, the Company implemented the Avnet Employee Stock Purchase Plan (""ESPP'').
Under the terms of the ESPP, eligible employees of the Company are offered options to purchase shares of
Avnet common stock at a price equal to 85% of the fair market value on the first or last day, whichever is
lower, of each monthly offering period. A total of 4,000,000 shares of Avnet common stock have been reserved
for sale under the ESPP, including an additional 1,000,000 shares reserved for the ESPP in fiscal 2004. At
July 2, 2005, employees had purchased 3,369,570 shares and 630,430 shares were still available for purchase
under the ESPP.
Incentive stock
The Company has an Incentive Stock Program wherein a total of 1,873,680 shares were still available for
award at July 2, 2005 based upon operating achievements, inclusive of 2,000,000 shares made available for
restricted stock awards under the 2003 Plan as discussed above. Delivery of incentive shares is spread equally
over a five-year period and is subject to the employee's continuance in the Company's employ. As of July 2,
2005, 243,136 shares previously awarded have not yet been delivered. Compensation expense associated with
this program was not material in fiscal 2005, 2004 and 2003.
Outside Director Stock Bonus Plan
The Company has a program whereby non-employee directors are awarded shares equal to $20,000 of
Avnet common stock upon their re-election each year, as part of their director compensation package.
Directors may elect to receive this compensation in the form of common stock under the Outside Director
Stock Bonus Plan or they may elect to defer their compensation to be paid in common stock at a later date.
Shares under this plan are issued in January of each year and the number of shares is calculated by dividing
$20,000 by the average of the high and low price of Avnet common stock on the first business day of January.
As of July 2, 2005, 21,361 shares are reserved for issuance under this plan.
Other stock-based compensation information
At July 2, 2005, there were 16,461,512 common shares reserved for stock options (including the ESPP)
and incentive stock programs (including the director plan).
64