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Table of Contents
AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The following is a summary of the changes in non-vested incentive shares for the fiscal year ended July 2, 2011:
As of July 2, 2011, there was $33,961,000 of total unrecognized compensation cost related to non-
vested incentive shares, which
is expected to be recognized over a weighted-
average period of 2.7 years. The total fair values of shares vested during fiscal 2011,
2010 and 2009 were $15,916,000, $14,301,000, $12,588,000, respectively.
Performance shares
Eligible employees, including Avnet’s executive officers, may receive a portion of their long-term equity-
based incentive
compensation through the performance share program, which allows for the award of shares of stock against performance-
based
criteria (“Performance Share Program”).
The Performance Share Program provides for the issuance to each grantee of a number of
shares of Avnet’s common stock at the end of a three-year period based upon the Company’
s achievement of performance goals
established by the Compensation Committee of the Board of Directors for each three-
year period. For the Performance Share Program
granted in fiscal 2009, the performance goals were initially based upon a three-year cumulative increase in the Company’
s absolute
economic profit, as defined, over the prior three-year period and the increase in the Company’
s economic profit relative to the increase
in the economic profit of a group of specific technology companies. During fiscal 2010, these performance goals were modified to
eliminate the absolute economic profit goal; in addition, the fiscal 2009 program was modified to limit the percentage of performance
stock units vesting to a maximum of 100%.
For the Performance Share Program granted in fiscal 2011 and 2010, the performance goals are based upon a three-
year
cumulative increase in the Company’
s economic profit relative to the increase in the economic profit of a group of specific technology
companies.
During fiscal 2011, 2010 and 2009, the Company granted 380,200, 242,390 and 246,650 performance shares, respectively, to be
awarded to participants in the Performance Share Program, of which 22,530 cumulatively have been forfeited. For the Performance
Share Program granted in fiscal 2011 and 2010, the actual amount of performance shares issued at the end of the three-
year period is
determined based upon the level of achievement of the defined performance goals and can range from 0% to 200% of the initial
award. As previously mentioned, the Performance Share Program granted in fiscal 2009 was limited to 100% of the initial award. The
Company anticipates issuing 227,285 shares in the first quarter of fiscal 2012 based upon the goals achieved during the three-
year
performance period which ended July 2, 2011. During fiscal 2011 and 2010, the Company recognized compensation expense
associated with the Performance Share Programs of $7,374,000 and $9,171,000, respectively. During fiscal 2009, the Company
recorded a credit of $1,819,000 in selling, general and administrative expenses associated with the Performance Share Programs based
upon actual performance under the 2007 Performance Share Program and based upon the probability assessment of the remaining
plans.
Outside director equity compensation
Non-employee directors are awarded shares equal to a fixed dollar amount of Avnet common stock upon their re-
election each
year, as part of their director compensation package. Directors may elect to receive this compensation in the form of common stock or
they may elect to defer their compensation to be paid in common stock at a later date. During fiscal 2011, 2010 and 2009,
compensation cost associated with the outside director stock bonus plan was $1,050,000, $1,020,000, $960,000, respectively.
64
Weighted
Average
Grant
-
Date
Shares
Fair Value
Non
-
vested incentive shares at July 3, 2010
1,258,054
$
26.57
Granted
817,965
$
25.40
Vested
(623,333
)
$
25.53
Forfeited
(37,902
)
$
26.24
Non
-
vested incentive shares at July 2, 2011
1,414,784
$
26.47