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Table of Contents
AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Basic earnings per share is computed based on the weighted average number of common shares outstanding and
excludes any potential dilution. Diluted earnings per share reflect potential dilution from the exercise or conversion
of securities into common stock.
Shares issuable upon conversion of the 2% Convertible Debentures are excluded from the computation of
earnings per share for fiscal 2006 as a result of the Company’s election to satisfy the principal portion of the
Debentures, if converted, in cash (see Note 7) in combination with the fact that the average stock price for fiscal 2006
was below the conversion price per share of $33.84. Shares issuable for the conversion premium of the
2% Convertible Debentures are included in the computation of earnings per diluted shares for fiscal 2008 and 2007
because the average stock price was above the conversion price per share of $33.84. The number of dilutive shares
for the conversion premium was calculated in accordance with EITF 04-8, The Effect of Contingently Convertible
Instruments on Diluted Earnings per Share.
The effects of certain stock options and restricted stock awards are also excluded from the determination of the
weighted average common shares for diluted earnings per share in each of the periods presented as the effects were
antidilutive or the exercise price for the outstanding options exceeded the average market price for the Company’s
common stock. Accordingly, in fiscal 2008, 2007 and 2006, the effects of approximately 12,000, 89,000 and
2,549,000 shares, respectively, related to stock options are excluded from the computation above, all of which relate
to options for which exercise prices were greater than the average market price of the Company’
s common stock (see
Note 12 for options outstanding and weighted average exercise prices).
70
14.
Earnings per share
Years Ended
June 28,
June 30,
July 1,
2008
2007
2006
(Thousands, except per share data)
Numerator:
Net income for basic and diluted earnings per share
$
499,081
$
393,067
$
204,547
Denominator:
Weighted average common shares for basic earnings per share
150,250
148,032
145,942
Net effect of dilutive stock options and restricted stock awards
1,608
1,197
1,208
Net effect of 2% Convertible Debentures due March 15, 2034
562
384
—
Weighted average common shares for diluted earnings per share
152,420
149,613
147,150
Basic earnings per share
$
3.32
$
2.65
$
1.40
Diluted earnings per share
$
3.27
$
2.63
$
1.39