Avnet 2004 Annual Report Download - page 67

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AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
14. Earnings (Loss) Per Share:
Basic earnings (loss) per share is computed based on the weighted average number of common shares
outstanding and excludes any potential dilution. Diluted earnings (loss) per share reÖect potential dilution
from the exercise or conversion of securities into common stock.
Years Ended
July 3, June 27, June 28,
2004 2003 2002
(Thousands, except per share data)
Numerator:
Income (loss) before cumulative eÅect of change in accounting
principle ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 72,897 $(46,116) $ (84,436)
Cumulative eÅect of change in accounting principle (Note 6)ÏÏÏÏÏÏÏ Ì Ì (580,495)
Net income (loss) for basic earnings (loss) per share ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 72,897 (46,116) (664,931)
Interest on 4.5% Convertible Notes due September 1, 2004 ÏÏÏÏÏÏÏÏÏ 100 Ì Ì
Net income (loss) for diluted earnings (loss) per share ÏÏÏÏÏÏÏÏÏÏÏÏ $ 72,997 $(46,116) $(664,931)
Denominator:
Weighted average common shares for basic earnings (loss) per share 120,086 119,456 118,561
Net eÅect of dilutive stock options and restricted stock awards ÏÏÏÏÏÏ 1,113 Ì Ì
Net eÅect of 4.5% Convertible Notes due September 1, 2004 ÏÏÏÏÏÏÏ 53 Ì Ì
Weighted average common shares for diluted earnings (loss) per
share ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 121,252 119,456 118,561
Basic earnings (loss) per share:
Income (loss) before cumulative eÅect of change in accounting
principle ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 0.61 $ (0.39) $ (0.71)
Cumulative eÅect of change in accounting principle ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì Ì (4.90)
Net earnings (loss) per basic share ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 0.61 $ (0.39) $ (5.61)
Diluted earnings (loss) per share:
Income (loss) before cumulative eÅect of change in accounting
principle ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 0.60 $ (0.39) $ (0.71)
Cumulative eÅect of change in accounting principle ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì Ì (4.90)
Net earnings (loss) per diluted shareÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 0.60 $ (0.39) $ (5.61)
The 4.5% convertible notes are excluded from the computation of loss per share in Ñscal 2003 and 2002 as
the eÅects were antidilutive. Shares issuable upon conversion of the 2% Convertible Debentures are also
excluded from the computation of earnings per share for Ñscal 2004 because the contingent conditions for their
conversion have not been met (see Note 7).
The eÅects of certain stock options and restricted stock awards are also excluded from the determination
of the weighted average common shares for diluted earnings (loss) per share in each of the periods presented
as the eÅects were antidilutive or the exercise price for the outstanding options exceeded the average market
price for the Company's common stock. Accordingly, in Ñscal 2004, the eÅects of approximately
3,159,000 shares related to stock options are excluded from the computation above, all of which relate to
options for which exercise prices were greater than the average market price of the Company's common stock.
In Ñscal 2003 and 2002, the eÅects of approximately 10,682,000 and 9,705,000 shares, respectively, related to
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