Avnet 2002 Annual Report Download - page 76

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AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
Incentive stock:
The Company has an Incentive Stock Program wherein a total of 157,890 shares were still available for
award at June 28, 2002 based upon operating achievements. Delivery of incentive shares is spread equally over
a four-year period and is subject to the employee's continuance in the Company's employ. As of June 28,
2002, 149,302 shares previously awarded have not yet been delivered. The program will terminate on
December 31, 2004.
Other stock-based compensation information:
In February 2000, the Company issued Ñve-year warrants at the exercise price of $26.22 for the purchase
of 261,000 shares of the Company's common stock in conjunction with the award from a customer of a three-
year manufacturing contract. As of the eÅective date of the sale of K*TEC, the warrants were immediately
vested. The estimated fair value of the warrants was recorded in additional paid-in capital and the related
expense was recorded against the gain on the sale of K*TEC.
At June 28, 2002, there were 13,137,709 common shares reserved for stock options (including the ESPP)
and incentive stock programs.
Pro forma information:
The Company follows Accounting Principles Board Opinion No. 25 (""APB 25''), ""Accounting for Stock
Issued to Employees,'' in accounting for its stock-based compensation plans. In applying APB 25, no expense
was recognized for options granted under the various stock option plans (except in the rare circumstances
where the exercise price was less than the fair market value on the date of the grant) nor was expense
recognized in connection with shares purchased by employees under the ESPP. Statement of Financial
Accounting Standards No. 123, ""Accounting for Stock-Based Compensation,'' requires disclosure of pro
forma net income as if a fair value-based method of measuring stock-based compensation had been applied.
Reported and pro forma net income (loss) and diluted earnings (loss) per share are as follows:
Years Ended
June 28, June 29, June 30,
2002 2001 2000
(Thousands, except per share amounts)
Net income (loss):
As reported ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $(664,931) $15,402 $163,392
Pro formaÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (675,390) 6,950 153,805
Diluted earnings (loss) per share:
As reported ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ (5.61) $ 0.13 $ 1.51
Pro formaÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (5.70) 0.06 1.42
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