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Table of Contents
AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The aggregate future minimum operating lease commitments, principally for buildings, in fiscal 2012 through 2016 and
thereafter (through 2028), are as follows (in thousands):
The preceding table includes operating lease commitments that have been reserved for as part of the Company’
s restructuring
activities (see Note 17).
12. Stock-based compensation plans
The Company measures all share-
based payments, including grants of employee stock options, at fair value and recognizes
related expense in the consolidated statement of operations over the service period (generally the vesting period). During fiscal 2011,
2010, 2009, the Company expensed $28,931,000, $28,363,000 and $18,269,000, respectively, for all stock-
based compensation
awards.
In August 2011, the Board of Directors approved the repurchase of up to an aggregate of $500 million of shares of the
Company’s common stock through a share repurchase program.
Stock plan
The Company currently has one stock compensation plan pursuant to which it can issue new awards. The 2010 Stock
Compensation Plan (“2010 Plan”)
was approved by the shareholders in fiscal 2011. The 2010 Plan has a termination date of
November 4, 2020 and 6,694,816 shares were available for grant at July 2, 2011. At July 2, 2011, the Company had 12,074,232 shares
of common stock reserved for stock option and stock incentive programs.
Stock options
Option grants under the 2010 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.
Compensation expense associated with stock options during fiscal 2011, 2010 and 2009 were $3,499,000, $3,558,000 and $4,245,000,
respectively.
The fair value of options granted is estimated on the date of grant using the Black-
Scholes model based on the assumptions in the
following table. The assumption for the expected term is based on evaluations of historical and expected future employee exercise
behavior. The risk-
free interest rate is based on the U.S. Treasury rates at the date 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.
62
2012
$
92,376
2013
73,517
2014
46,800
2015
28,933
2016
20,560
Thereafter
42,421
Total
$
304,607
Years Ended
July 2,
July 3,
June 27,
2011
2010
2009
Expected term (years)
6.0
6.0
5.75
Risk
-
free interest rate
1.8
%
3.0
%
3.4
%
Weighted average volatility
33.7
%
34.3
%
30.7
%
Dividend yield
—
—
—