Avnet 2001 Annual Report Download - page 50

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Avnet, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Continued)
48
5. COMPREHENSIVE INCOME
June 29, June 30, July 2,
Years Ended 2001 2000 1999
(In thousands)
Net income $15,402 $163,392 $174,639
Foreign currency
translation adjustments (1,715) (8,541) (4,237)
Valuation adjustments–
unrealized gain (loss)
on investments in
marketable securities (2,293) 2,293 —
Total comprehensive
income $11,394 $ 157,144 $170,402
Cumulative other comprehensive income (loss) items, consisting of
translation and valuation adjustments, totaled ($56,297,000) and
($52,289,000) at June 29, 2001 and June 30, 2000, respectively. During
2001, the Company sold substantially all of its marketable securities.
Therefore, the previously recorded valuation adjustment was clas-
sified to the consolidated statement of income as part of the realized
gains and losses recorded during the year ended June 29, 2001.
6. PROPERTY, PLANT AND EQUIPMENT, NET
Property, plant and equipment are recorded at cost and consist
of the following:
June 29, June 30,
2001 2000
(In thousands)
Land $ 11,580 $ 15,388
Buildings 70,514 120,659
Machinery, fixtures and equipment 633,295 542,795
Leasehold improvements 29,245 18,843
744,634 697,685
Less accumulated depreciation
and amortization 327,475 352,026
$ 417,159 $345,659
Depreciation and amortization expense related to property, plant
and equipment was $74,342,000, $59,809,000 and $42,547,000 in
2001, 2000 and 1999, respectively.
7. EXTERNAL FINANCING
June 29, June 30,
2001 2000
(In thousands)
7 7/8% Notes due February 15, 2005 $ 360,000 $ 360,000
6 7/8% Notes due March 15, 2004 100,000 100,000
6.45% Notes due August 15, 2003 200,000 200,000
8.20% Notes due October 17, 2003 250,000 —
4.5% Convertible Notes due 2004 207,000 207,000
Commercial paper 122,201 559,395
Bank credit facilities 643,190 689,704
Floating Rate Notes due
October 17, 2001 325,000 —
Other 14,231 37,798
2,221,622 2,153,897
Less borrowings due within one year 1,302,129 503,287
Long-term debt $ 919,493 $1,650,610
In the first quarter of 1998, the Company renegotiated its
revolving credit agreement with a syndicate of banks led by
NationsBank of North Carolina, N.A., which has now merged
with Bank of America. The agreement provides a five-year facility
with a line of credit of up to $700,000,000 of which approximately
$590,000,000 was outstanding at June 29, 2001. This credit facility
is currently being used primarily as a funding vehicle for foreign
currency denominated borrowings at floating rates of interest and
as a backup facility to the Company’s commercial paper program.
The approximate weighted average interest rates on outstanding
commercial paper and foreign currency denominated borrowings
under this facility at June 29, 2001, were 4.3% and 4.6%, respec-
tively, and at June 30, 2000 were 7.0% and 4.5%, respectively. As of
June 29, 2001, the Company was in compliance with the various
covenants contained in the agreement.
As a result of its acquisition of Kent on June 8, 2001, Avnet assumed
Kent’s 4.5% Convertible Notes due 2004 (the “Notes”). Subsequent
to June 29, 2001, virtually all holders of the Notes exercised their
rights to “put” the Notes back to the Company as a result of the
change in control of Kent.
In October 1999, the Company entered into a $500,000,000
364-day credit facility with a syndicate of banks led by Bank of
America in order to partially finance the cash component of the
acquisition of Marshall Industries and to provide additional
working capital capacity. The facility was replaced by another