Avnet 2002 Annual Report Download - page 62

AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
Fiscal year Ì The Company operates on a ""52/53 week'' Ñscal year, which ends on the Friday closest to
June 30th. Fiscal years 2002, 2001 and 2000 all contained 52 weeks. Unless otherwise noted, all references to
the ""year 2002'' or any other ""year'' shall mean the Company's Ñscal year.
Management estimates Ì The preparation of Ñnancial statements in conformity with accounting princi-
ples generally accepted in the United States requires management to make estimates and assumptions that
aÅect certain reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the
date of the Ñnancial statements and the reported amounts of revenues and expenses during the reporting
period. Actual results could diÅer from those estimates.
ReclassiÑcations Ì Certain reclassiÑcations have been made to the prior years' notes to consolidated
Ñnancial statements to conform to the current year presentation.
New accounting standards Ì In June 2001, the FASB issued Statement of Financial Accounting
Standards No. 143 (""SFAS 143''), ""Accounting for Asset Retirement Obligations.'' SFAS 143 addresses the
Ñnancial accounting and reporting for obligations associated with the retirement of tangible long-lived assets
and the associated asset retirement costs. The Company adopted the provisions of SFAS 143 on June 29,
2002, the Ñrst day of the Company's Ñscal 2003, as required. The adoption of SFAS 143 will not have a
material eÅect on the Company's consolidated Ñnancial statements.
In August 2001, the FASB issued Statement of Financial Accounting Standards No. 144 (""SFAS 144''),
""Accounting for the Impairment or Disposal of Long-Lived Assets.'' SFAS 144 addresses the Ñnancial
accounting and reporting for the impairment of long-lived assets and for long-lived assets to be disposed of.
SFAS 144 also amends and supercedes previous guidance on reporting for discontinued operations. The
Company adopted SFAS 144 on June 29, 2002 as required. The adoption of SFAS 144 will not have a
material eÅect on the Company's consolidated Ñnancial statements.
In June 2002, the FASB issued Statement of Financial Accounting Standards No. 146 (""SFAS 146''),
""Accounting for Costs Associated with Exit or Disposal Activities.'' SFAS 146 addresses Ñnancial accounting
and reporting for costs associated with exit or disposal activities and supercedes the former guidance of
Emerging Issues Task Force Issue No. 94-3 (""EITF 94-3''), ""Liability Recognition for Certain Employee
Termination BeneÑts and Other Costs to Exit an Activity (including Certain Costs Incurred in a Restructur-
ing).'' SFAS 146 requires that a liability for a cost associated with an exit or disposal activity be recognized
and measured when the liability is incurred (as opposed to upon the date of an entity's commitment to a plan
as provided for under EITF 94-3). The provisions of SFAS 146 will be eÅective for any exit or disposal
activities that are initiated by the Company after December 31, 2002.
2. Acquisitions and dispositions:
During the last three Ñscal years, the Company has completed sixteen acquisitions Ì six in North
America, six in Europe, three in the Asia/PaciÑc region and one in the Middle East. One of the acquisitions
was completed in 2002, Ñve of the acquisitions were completed in 2001 and ten were completed during 2000.
All acquisitions, except for the acquisition of Kent discussed below and in Note 1, have been accounted for as
purchases.
The Company completed the acquisition of Gamma Optronik AB in March 2002. In addition, during
2002 the Company acquired the remaining 20% interest in Kopp Electronics Limited. The acquisitions
completed in 2001 consisted of Kent, Sunrise Technology Ltd., RDT Technologies Ltd., certain European
operations of the VEBA Electronics Group (consisting of EBV, WBC, Atlas Logistics and RKE Systems,
collectively, the ""VEBA Group'') and Savoir Technology Group, Inc. The acquisitions completed in 2000
consisted of Marshall Industries, Integrand Solutions, Eurotronics B.V., the SEI Macro Group, PCD Italia
S.r.l. and Matica S.p.A. (counted as a single acquisition), Cosco Electronics/Jung Kwang, the remaining 60%
of SEI Nordstar S.p.A and Orange Coast Data Comm, Inc., Orange Coast Cabling, Inc. and Go Telecomm,
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