Avnet 2005 Annual Report Download - page 17

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Item 2. Properties
At July 2, 2005, the Company owned and leased approximately 600,000 and 3,392,000 square feet of
space, respectively, of which approximately 50% is located in the United States. The following table
summarizes certain of the Company's key facilities as of July 2, 2005:
Leased or
Location Sq. Footage Owned Primary Use
Phoenix, Arizona ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 176,000 Leased Corporate and EM headquarters
Tempe, Arizona ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 132,000 Leased TS headquarters
Chandler, Arizona ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 395,000 Owned EM warehousing and value-added
operations
Phoenix, Arizona ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 122,000 Leased TS warehousing, integration and
value-added operations
Grapevine, Texas ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 181,000 Leased EM warehousing and value-added
operations
Poing, Germany ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 190,000 Leased EM warehousing and value-added
operations
Tongeren, BelgiumÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 167,000 Owned EM and TS warehousing and
value-added operations
Item 3. Legal Proceedings
As a result primarily of certain former manufacturing operations, Avnet may have liability under various
federal, state and local environmental laws and regulations, including those governing pollution and exposure
to and the handling, storage and disposal of hazardous substances. For example, under the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, as amended (""CERCLA'') and similar
state laws, Avnet may be liable for the costs of cleaning up environmental contamination on or from its current
or former properties, and at off-site locations where the Company disposed of wastes in the past. Such laws
may impose joint and several liability. Typically, however, the costs for cleanup at such sites are allocated
among potentially responsible parties (""PRPs'') based upon each party's relative contribution to the
contamination, and other factors.
In May 1993, the Company and the former owners of a Company-owned site in Oxford, North Carolina
entered into a Settlement Agreement in which the former owners agreed to bear 100% of all costs associated
with investigation and cleanup of soils and sludges remaining on the site and 70% of all costs associated with
investigation and cleanup of groundwater. The Company agreed to be responsible for 30% of the groundwater
investigation and cleanup costs. In October 1993, the Company and the former owners entered into a Consent
Decree and Court Order with the Environmental Protection Agency (the ""EPA'') for the environmental
clean-up of the site, the cost of which, according to the EPA's remedial investigation and feasibility study, was
estimated to be approximately $6.3 million, exclusive of the approximately $1.5 million in EPA past costs paid
by the PRPs. Based on current information, the Company does not anticipate its liability in the matter will be
material to its financial position, cash flow or results of operations.
The Company is a PRP at a manufacturing site in Huguenot, New York, currently under investigation by
the New York State Department of Environmental Conservation (""NYSDEC''), which site the Company
owned from the mid-1960s until the early-1970s. The Company has been engaged in litigation to apportion the
estimated clean-up costs among it and the current and former owners and operators of the site. Subsequent to
fiscal 2005, the Company reached a tentative settlement in this matter, which will, upon payment, relieve the
Company of ongoing liability for the first phase of the environmental clean up (estimated to cost a total of
$2.4 million for all parties to remediate contaminated soils) and for past costs incurred by NYSDEC and the
current owner of the site. This tentative agreement is still subject to finalization, including ratification by all
parties involved and the remediation plan is subject to final approval by NYSDEC. Based on the tentative
settlement arrangement and the expected costs of the remediation efforts, the Company does not anticipate its
liability in the matter will be material to its financial position, cash flow or results of operations.
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