Avnet 2003 Annual Report Download - page 59
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Please find page 59 of the 2003 Avnet annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì Continued
arrangements, the Company recognizes the fee associated with serving as an agent in sales with no associated
cost of sales.
Revenues and anticipated proÑts under long-term contracts are recorded on the percentage of completion
basis, under which a portion of the total contract price is accrued based on the ratio of costs incurred to
estimated costs at completion. Revenues from maintenance contracts are recognized ratably over the life of
the contracts, ranging from one to three years. Revenues are recorded net of discounts, rebates and estimated
returns.
Shipping and handling fees and costs Ì The Company recognizes amounts billed to a customer in a sale
transaction related to shipping and handling as revenue. The costs incurred by the Company for shipping and
handling are classiÑed as cost of sales.
Comprehensive income (loss) Ì Comprehensive income (loss) represents net income (loss) for the year
adjusted for changes in shareholders' equity from non-shareholder sources. Cumulative comprehensive
income (loss) items consist of currency translation, valuation adjustments for marketable securities and the
impact of the Company's additional minimum pension liability, net of tax (see Note 4).
Stock-based compensation Ì The Company accounts for its stock based compensation plans using the
intrinsic value method initially prescribed by Accounting Principles Board Opinion No. 25 (""APB 25''),
""Accounting for Stock Issued to Employees.'' In applying APB 25, no expense is recognized upon grant of
stock under the Company's various stock option plans, except in the rare circumstances where the exercise
price is less than the fair market value on the grant date, nor is expense recognized in connection with shares
purchased by employees under the Employee Stock Purchase Plan (see Note 12).
No expense was recognized for options granted under the various stock option plans as the options
granted during the periods presented had exercise prices equal to the market value of the underlying stock on
the date of the grants. Statement of Financial Accounting Standards No. 148, ""Accounting for Stock-Based
Compensation Ì Transition and Disclosure Ì An Amendment of FASB Statement No. 123,'' requires
certain disclosures of the pro forma impact on net income (loss) and earnings (loss) per share as if a fair
value-based method of measuring stock-based compensation, as deÑned by Statement of Financial Account-
ing Standards No. 123, ""Accounting for Stock-Based Compensation,'' had been applied.
Reported and pro forma net income (loss) and earnings (loss) per share are as follows:
Years Ended
June 27, June 28, June 29,
2003 2002 2001
(Thousands, except per share amounts)
Net income (loss), as reported ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $(46,116) $(664,931) $15,402
Less: Fair value impact of employee stock compensation, net
of tax ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (8,953) (10,459) (8,452)
Pro forma net income (loss) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $(55,069) $(675,390) $ 6,950
Earnings (loss) per share:
Basic Ì as reported ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ (0.39) $ (5.61) $ 0.13
Basic Ì pro forma ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ (0.46) $ (5.70) $ 0.06
Diluted Ì as reportedÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ (0.39) $ (5.61) $ 0.13
Diluted Ì pro formaÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ (0.46) $ (5.70) $ 0.06
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