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Table of Contents
AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
of grant with maturity dates approximately equal to the expected term at the grant date. The historical volatility of
Avnet’s stock is used as the basis for the volatility assumption.
At June 28, 2008, the Company had 9,489,729 shares of common stock reserved for stock option and stock
incentive programs.
Stock plan
The Company has one stock compensation plan, the 2006 Stock Compensation Plan (“2006 Plan”) which was
approved by the shareholders in fiscal 2007. The 2006 Plan has a termination date of November 8, 2016 and
4,007,342 shares were available for grant at June 28, 2008.
Stock options
Option grants under the 2006 Plan have a contractual life of ten years, vest 25% on each anniversary of the grant
date, commencing with the first anniversary, and provide for a minimum exercise price of 100% of fair market value
at the date of grant. Pre-tax compensation expense associated with stock options during fiscal 2008, 2007 and 2006
were $6,155,000, $8,356,000 and $10,011,000, respectively.
The following is a summary of the changes in outstanding options for fiscal 2008:
The weighted-average grant-date fair values of stock options granted during fiscal 2008, 2007, and 2006 were
$14.90, $8.88, and $11.86, respectively. The total intrinsic values of share options exercised during fiscal 2008, 2007
and 2006 was $109,000, $524,000 and $684,000, respectively.
67
Years Ended
June 28,
June 30,
July 1,
2008
2007
2006
Expected term (years)
6.0
6.0
6.0
Risk
-
free interest rate
4.6
%
4.8
%
4.1
%
Weighted average volatility
35.9
%
40.1
%
43.4
%
Dividend yield
—
Weighted
Weighted
Average
Average
Remaining
Exercise
Contractual
Aggregate
Shares
Price
Life
Intrinsic Value
Outstanding at June 30, 2007
3,912,858
$
19.53
68 Months
Granted
259,148
$
34.34
109 Months
Exercised
(389,753
)
$
20.35
44 Months
Forfeited or expired
(196,574
)
$
24.96
47 Months
Outstanding at June 28, 2008
3,585,679
$
20.21
61 Months
$
36,286
Exercisable at June 28, 2008
2,769,138
$
19.01
52 Months
$
36,286