Avnet 2001 Annual Report Download - page 60

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58
During the first quarter of fiscal 2000, the Company recorded
$6,111,000 pre-tax and $3,976,000 after-tax ($0.04 per share on a
diluted basis) of incremental special charges associated with the
reorganization of the EM European operations consisting prima-
rily of costs related to the consolidation of warehousing operations.
The entire $6,111,000 is included in operating expenses, most of
which required an outflow of cash. These charges included sever-
ance, adjustments of the carrying value of fixed assets, real property
lease terminations and other items. Substantially all of the cash
associated with this charge had been utilized at June 30, 2000.
The total amount of special charges recorded in fiscal 2000
amounted to $48,964,000 pre-tax ($37,177,000 included in operating
expenses and $11,787,000 included in cost of sales), $30,426,000
after-tax and $0.28 per share on a diluted basis.
During the first quarter of 1999, the Company recorded $26,519,000
pre-tax and $15,740,000 after-tax ($0.16 per share on a diluted basis)
of incremental special charges associated principally with the
reorganization of its EM EMEA operations. These charges include
severance, real property lease termination costs, inventory reserves
required related to supplier terminations and other items.
Approximately $18,613,000 of the pre-tax charge, which required
an outflow of cash, is included in operating expenses and $7,906,000,
which represented a non-cash write-down, is included in cost of
sales. Substantially all of the cash associated with this charge had
been expended at June 29, 2001.
Dispositions and other
In the fourth quarter of 1999, the Company recorded a gain on the
sale of its Allied Electronics business in the amount of $252,279,000
pre-tax, offset somewhat by charges taken in connection with the
intended disposition of the Avnet Setron catalog operation in
Germany amounting to $42,732,000. Approximately $37,492,000 of
the pre-tax charge, consisting principally of the write-off of good-
will, is included in operating expenses and $5,240,000 is included
in cost of sales, while the pre-tax gain on Allied Electronics is shown
separately on the consolidated statement of income. The net effect
of these items is to increase income from continuing operations
before taxes, net income and diluted earnings per share by approx-
imately $209,547,000, $79,709,000 and $0.80 per share for the fourth
quarter, respectively.
In total, the non-recurring items recorded in 1999 as discussed
above positively impacted income from continuing operations
before taxes, net income and diluted earnings per share by
$183,028,000, $63,969,000 and $0.64 per share, respectively.
Avnet, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Continued)
58