Avnet 2002 Annual Report Download - page 83

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AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
During the second quarter of 2000, the Company recorded $28,030,000 pre-tax and $17,573,000 after-tax
($0.16 per share on a diluted basis) of incremental special charges associated with: (a) the integration of
Marshall Industries into the Company's EM and AC operations ($18,413,000 pre-tax); (b) the reorganization
of the Company's EM Asian operations ($5,409,000 pre-tax); (c) costs related to the consolidation of the
Company's EM European warehousing operations ($1,509,000 pre-tax); and (d) costs incurred in connection
with certain litigation initiated by the Company ($2,699,000 pre-tax). Approximately $17,739,000 of the pre-
tax charge was included in operating expenses and $10,291,000 was included in the cost of sales. The charges
related to the integration of Marshall Industries and the reorganization of the Asian operations are comprised
of severance, inventory reserves required related to supplier terminations, real property lease terminations,
employee and facility relocation costs, special incentive payments and other items. Of the special charges of
$28,030,000 pre-tax, approximately $11,143,000 did not require an outÖow of cash and $16,887,000 required
the use of cash, substantially all of which has been utilized at June 28, 2002.
During the Ñrst quarter of 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 primarily of costs related to the consolidation of warehousing operations.
The entire $6,111,000 pre-tax is included in operating expenses, most of which required an outÖow of cash,
substantially all of which had been utilized at June 28, 2002. These charges included severance, adjustments
of the carrying value of Ñxed assets, real property lease terminations and other items.
The total amount of special charges recorded in 2000 amounted to $48,964,000 pre-tax ($37,177,000 in-
cluded 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.
18. Summary of quarterly results (unaudited):
First Second Third Fourth
Quarter Quarter Quarter Quarter Year
(Millions, except per share amounts)
2002
Sales ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $2,201.2 $2,359.8 $2,214.4 $2,144.8 $ 8,920.2
Gross proÑt ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 310.6 318.6 311.0 282.6 (b) 1,222.8 (b)
Income (loss) from continuing operations (19.2) (2.6) (1.2) (61.4)(b) (84.4)(b)
Income (loss) before cumulative eÅect of
change in accounting principle ÏÏÏÏÏÏÏÏÏ (19.2) (2.6) (1.2) (61.4)(b) (84.4)(b)
Net income (loss) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (599.7)(a) (2.6) (1.2) (61.4)(b) (664.9)(b)
Diluted earnings (loss) per share:
From continuing operations ÏÏÏÏÏÏÏÏÏÏÏ (0.16) (0.02) (0.01) (0.51)(b) (0.71)(b)
Before cumulative eÅect of change in
accounting principleÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (0.16) (0.02) (0.01) (0.51)(b) (0.71)(b)
Net earnings (loss) per shareÏÏÏÏÏÏÏÏÏÏ (5.09)(a) (0.02) (0.01) (0.51)(b) (5.61)(b)
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