Avnet 2008 Annual Report Download - page 66

Table of Contents
AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The Company conducts business globally and consequently files income tax returns in numerous jurisdictions
including those listed in the following table. It is also routinely subject to audit in these and other countries. The
Company is no longer subject to audit in its major jurisdictions for periods prior to fiscal year 1999. The open years,
by major jurisdiction, are as follows:
Pension Plan
The Company’s noncontributory defined benefit pension plan (the “Plan”) covers substantially all domestic
employees. Employees are eligible to participate in the Plan following the first year of service during which they
worked at least 1,000 hours. The Plan provides defined benefits pursuant to a cash balance feature whereby a
participant accumulates a benefit based upon a percentage of current salary, which varies with age, and interest
credits. The Company uses June 30 as the measurement date for determining pension expense and benefit obligations
for each fiscal year.
Not included in the tabulations and discussions that follow are pension plans of certain
non-U.S. subsidiaries, which are not material.
Implementation of SFAS 158
The FASB issued SFAS 158, Employers’ Accounting for Defined Benefit Pension and Other Postretirement
Plans
in September 2006 which requires the Company to recognize the funded status (defined as the difference
between the fair value of the plan assets and the benefit obligation) of its defined benefit pension plan in its
consolidated balance sheet, with a corresponding adjustment to “accumulated other comprehensive income.” The
Company’s pension plan does not take into account projected salary increases; instead, it is a cash balance plan
whereby service costs are based solely on current year salary levels. Prior to SFAS 158, the Company recorded the
accumulated benefit obligation which represents the pension liability for cash balance plans. Under SFAS 158, the
Company will continue to record the accumulated benefit obligation for its cash balance plan.
Upon adoption, SFAS 158 requires an adjustment to “accumulated other comprehensive income” for the net
unrecognized actuarial losses, unrecognized prior service costs and unrecognized transition obligations remaining
from the initial adoption of SFAS 87, Employers’ Accounting for Pensions (“SFAS 87”), which, pursuant to the
provisions of SFAS 87, were previously netted against the pension plans’ funded status in the consolidated balance
sheet. Furthermore, amounts recognized in “accumulated other comprehensive income” will subsequently be
recognized as net periodic pension cost in accordance with the recognition and amortization provisions of SFAS 87.
The adoption of SFAS 158 had no effect on the Company’s consolidated financial statements for the fiscal year end
June 30, 2007, or for any prior period, and it will not affect operating results in future periods.
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Jurisdiction
Fiscal Year
United States (federal and state)
2004
-
2008
Germany
2000
-
2008
United Kingdom
2006
-
2008
Netherlands
2004
-
2008
Belgium
1999
-
2008
Singapore
2001
-
2008
Taiwan
2003
-
2008
Hong Kong
2002
-
2008
10.
Pension and retirement plans