Avnet 2001 Annual Report Download - page 48

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In addition, Kent’s balance sheet as of April 1, 2000 has been
combined with Avnet’s balance sheet as of June 30, 2000.
Accordingly, an adjustment was made to retained earnings to
include $8,819,000 of net income for Kent for the three months
ended June 30, 2000. For the same three months, Kent’s sales of
$223,313,000 and Kent’s cash flows (used for) provided from oper-
ating, financing and investing activities of ($26,644,000), $1,443,000
and $8,788,000, respectively, have been excluded from the consoli-
dated statements of income and cash flows, respectively. The
restated financial information includes certain reclassifications to
conform Kent’s financial statement presentation to that of Avnet.
Intercompany transactions between the combined companies are
not material in any of the periods presented. The combination of the
two entities in this document does not give effect to any synergies
that the Company expects to realize from the combined operations
going forward.
The following table is a reconciliation of the results of operations
of the previously separate Avnet and Kent companies to reported
combined results of operations for the most recent interim period
preceding the acquisition, as well as the years ended June 30, 2000
and July 2, 1999.
Avnet, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Continued)
46
Avnet Kent
Before Before Avnet As
(In thousands) Pooling Pooling Restated
Nine months ended March 30, 2001
Sales $ 9,557,204 $ 719,051 $10,276,255
Net income from continuing operations 205,596 25,536 231,132
Net income 205,596 45,952 251,548
Year ended June 30, 2000
Sales 9,172,205 742,837 9,915,042
Net income from continuing operations 145,141 17,423 162,564
Net income 145,141 18,251 163,392
Year ended July 2, 1999
Sales 6,350,042 455,694 6,805,736
Net income from continuing operations 174,457 5,865 180,322
Net income 174,457 182 174,639
June 30, July 2,
Years Ended 2000 1999
(In thousands, except per share amounts)
Sales $10,477,752 $8,520,841
Income from continuing operations before income taxes 296,688 381,434
Net income from continuing operations 169,610 165,392
Net income 170,438 159,709
Diluted earnings per share from continuing operations 1.51 1.50
Diluted net earnings per share 1.52 1.45
The acquisitions completed during 2000 required a total investment
of $1,039,506,000 (net of $1,570,000 of cash on the books of the compa-
nies acquired), of which $675,030,000 was paid in cash, $351,877,000
in Avnet stock, $11,745,000 in Avnet stock options ($6,985,000 net
of related tax benefits) and amounts payable at June 30, 2000 of
$854,000. In the aggregate, the operations acquired during 2000 had
sales totaling approximately $2,852,000,000 during the fiscal year
of each such operation immediately preceding its acquisition.
The following unaudited pro forma results reflect the acquisition
of Marshall Industries (which occurred during 2000) as if it
occurred on July 3, 1999 and June 27, 1998, the first day of the
Company’s 2000 and 1999 fiscal years, respectively, and does not
purport to present what actual results would have been had the
acquisition, in fact, occurred at those dates or to project results for
any future period: