Avnet 2003 Annual Report Download - page 84
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Please find page 84 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
requirements which are in excess of what is anticipated to be sold or returned ($50,668,000 pre-tax), write-
downs associated with the disposal of Ñxed assets ($15,167,000 pre-tax), lease terminations ($21,065,000 pre-
tax), adjustments to the book value of investments in unconsolidated entities ($42,880,000 pre-tax) and other
items ($2,403,000 pre-tax). The unusually large impact on after-tax income related to this charge is due
primarily to the non-deductibility of certain acquisition-related costs and the impact of tax rates in foreign
jurisdictions.
Of the 2002 and 2001 charges, which totaled $407,108,000 pre-tax, $15,987,000 remains unexpended at
June 27, 2003 which relates primarily to severance, substantially all of which is scheduled to be utilized by the
end of the second quarter of 2004, and contractual lease commitments, substantially all of which is expected to
be utilized by the end of 2007.
18. Summary of quarterly results (unaudited):
First Second Third Fourth
Quarter Quarter Quarter Quarter Year
(Millions, except per share amounts)
2003
Sales ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $2,173.9 $2,346.6 $2,340.5 $2,187.4 $9,048.4
Gross proÑt ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 297.6 315.6 307.1 294.7 1,215.0
Net income (loss) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (0.5) (58.6)(a) 1.5(b) 11.5 (46.1)(a)(b)
Diluted earnings (loss) per shareÏÏÏÏÏÏÏ Ó (0.49)(a) 0.01(b) 0.10 (0.39)(a)(b)
2002
Sales ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $2,201.2 $2,359.8 $2,214.4 $2,144.8 $8,920.2
Gross proÑt ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 310.6 318.6 311.0 282.6 (d) 1,222.8 (d)
Loss before cumulative eÅect of change
in accounting principle ÏÏÏÏÏÏÏÏÏÏÏÏÏ (19.2) (2.6) (1.2) (61.4)(d) (84.4)(d)
Net lossÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (599.7)(c) (2.6) (1.2) (61.4)(d) (664.9)(c)(d)
Diluted loss per share:
Before cumulative eÅect of change in
accounting principleÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (0.16) (0.02) (0.01) (0.51)(d) (0.71)(d)
Net loss per share ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (5.09)(c) (0.02) (0.01) (0.51)(d) (5.61)(c)(d)
(a) Includes the impact of incremental restructuring and other charges associated with the Company's
continuing cost reduction initiatives. The charges related to (a) severance for workforce reductions,
(b) reserves for non-cancelable lease obligations, write-downs of the carrying value of owned facilities
and write-downs of owned assets located in these leased and owned facilities, and (c) costs related to
write-oÅs of certain IT-related initiatives. The charges amounted to $106.8 million pre-tax (all of which
is included in selling, general and administrative expenses), $65.8 million after-tax and $0.55 per share on
a diluted basis for the second quarter and year ended June 27, 2003. See Note 17.
(b) Includes the impact of debt extinguishment costs associated with the Company's cash tender oÅers and
repurchases completed during the third quarter of 2003 for $159.0 million of its 6.45% Notes due
August 15, 2003 and $220.1 million of its 8.20% Notes due October 17, 2003. These charges amounted to
$13.5 million pre-tax, $8.2 million after-tax and $0.07 per share on a diluted basis for the third quarter
and year ended June 27, 2003. See Note 7.
(c) As discussed in Note 6, the Company adopted SFAS 142 on the Ñrst day of 2002 and recorded a
$580.5 million transition impairment charge as a cumulative eÅect of change in accounting principle as of
that date. The transition impairment charge was Ñrst reported by the Company in the second quarter of
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