Avnet 2005 Annual Report Download - page 74

AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
15. Additional cash flow information
Other non-cash and reconciling items consist of the following:
Years Ended
July 2, July 3, June 27,
2005 2004 2003
(Thousands)
Provision for doubtful accounts ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $33,248 $36,434 $46,664
Other, net Ì primarily net periodic pension cost (Note 10)ÏÏÏÏÏ 13,867 11,215 3,120
Total ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $47,115 $47,649 $49,784
In fiscal 2005 and 2003, the Company recognized through other comprehensive income (loss) additional
minimum pension liabilities of $30,542,000 and $42,939,000, respectively, net of the related deferred tax
benefit of $11,877,000 and $19,988,000, respectively. In fiscal 2004, the Company reversed through other
comprehensive income (loss) a portion of the additional minimum pension liability amounting to
$4,169,000 net of the related deferred taxes of $1,651,000. These are non-cash reconciling items. See Note 10
for discussion of the Company's pension plan.
Interest and income taxes paid (refunded) during the last three years were as follows:
Years Ended
July 2, July 3, June 27,
2005 2004 2003
(Thousands)
Interest ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $85,242 $105,773 $95,306
Income taxes ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 19,083 (59,073) (195,994)
16. Segment information
During the first quarter of fiscal 2004, the Company combined its Computer Marketing (""CM'') and
Applied Computing (""AC'') operating groups into one computer products and services business called
Technology Solutions (""TS''). This combination was part of the Company's continued efforts to strengthen its
market leadership position, streamline the business and further leverage cost synergies resulting from the
combination. In light of the similarities of the logistics operations and related functions of CM and AC, the
consolidation of certain of the units' operating facilities, equipment and processes has yielded cost savings
while also stimulating new market opportunities for the combined group.
As a result of the formation of TS, Electronics Marketing (""EM'') and TS are the overall segments upon
which management primarily evaluates the operations of the Company and upon which it based its operating
decisions during fiscal 2004. Therefore, the segment data that follows reflects the two segments subsequent to
the formation of TS. Data for fiscal 2003 has been restated to present segment data on a consistent basis with
fiscal 2005 and 2004.
EM markets and sells semiconductors, interconnect, passive and electromechanical devices, and radio
frequency/microwave components. EM markets and sells its products to a diverse customer base spread across
end-markets including communications, computer hardware and peripheral, industrial and manufacturing,
medical equipment and military and aerospace. EM also offers an array of value-added services to its
customers such as supply-chain management, engineering design, inventory replenishment systems, connector
and cable assembly and semiconductor programming.
TS markets and sells mid- to high-end servers, data storage, software and networking solutions, and the
services required to implement these solutions, to the value-added reseller channel and enterprise computing
customers. TS also focuses on the worldwide original equipment manufacturers (""OEM'') market for
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