Avnet 2002 Annual Report Download - page 26

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incurred in connection with certain litigation brought by the Company. The total special charges for 2000
amounted to $49.0 pre-tax, $30.4 after-tax and $0.28 per share on a diluted basis.
(d) Includes the impact of incremental special charges related to the acquisition and integration of Kent,
which was accounted for as a ""pooling-of-interests,'' and other integration, reorganization and cost
cutting initiatives taken in response to business conditions. The special charges amounted to $327.5 pre-
tax ($80.6 included in cost of sales and $246.9 included in operating expenses) and $236.7 after-tax, or
$1.99 per share on a diluted basis for the year ($2.01 per share for the fourth quarter).
(e) Includes the impact of incremental special charges related to the write-down of certain assets acquired in
the 2001 acquisition of Kent, net of certain recoveries of previous write-downs and reserves, and other
charges taken in response to business conditions, including an impairment charge to write-down certain
investments in unconsolidated Internet-related businesses to their fair value and severance charges for
workforce reductions announced during the fourth quarter of 2002. The net special charges amounted to
$79.6 pre-tax ($21.6 included in cost of sales and $58.0 included in operating expenses) and $62.1 after-
tax, or $0.52 per share on a diluted basis.
(f) The 2002 summary Ñnancial data excludes the impact of the Company's adoption of the Financial
Accounting Standards Board's Statement of Financial Accounting Standards No. 142 (""SFAS 142''),
""Goodwill and Other Intangible Assets,'' on June 30, 2001, the Ñrst day of the Company's Ñscal year
2002. SFAS 142, which requires that ratable amortization of goodwill be replaced with periodic tests for
goodwill impairment, resulted in a transition impairment charge recorded by the Company of $580.5, or
$4.90 per share on a diluted basis for the Ñrst quarter and the Ñscal year. This charge is reÖected as
cumulative change in accounting principle in the consolidated statements of operations.
(g) All per share data have been restated to reÖect a two-for-one split of the Company's common stock
approved by the Board of Directors on August 31, 2000. These shares were distributed on September 28,
2000 to shareholders of record on September 18, 2000.
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