Avnet 2005 Annual Report Download - page 21

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* Income amounts are from continuing operations and net assets from discontinued operations have been
classified as current assets. All amounts for fiscal 2001 have been restated for the acquisition of Kent
Electronics Corporation, which was completed in June 2001 and has been accounted for using the
""pooling-of-interests'' method.
(a) Includes the impact of restructuring and other charges recorded in both the first and second quarters of
fiscal 2004 in connection with cost cutting initiatives and the combination of the Computer Marketing
(""CM'') and Applied Computing (""AC'') operating groups into one operating group now called
Technology Solutions. These charges amounted to $55.6 million (all of which was included in operating
expenses), $38.6 million after-tax and $0.32 per share on a diluted basis. Fiscal 2004 results also include
the impact of debt extinguishment costs associated with the Company's cash tender offer completed
during the third quarter of fiscal 2004 for $273.4 million of the 7
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/
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% Notes due February 15, 2005. These
debt extinguishment costs amounted to $16.4 million pre-tax, $14.2 million after-tax and $0.12 per share
on a diluted basis. The total impact of these charges recorded in fiscal 2004 amounted to $72.0 million
pre-tax, $52.8 million after-tax and $0.44 per share on a diluted basis.
(b) Includes the impact of restructuring and other charges related to certain cost cutting initiatives instituted
during fiscal 2003, including severance costs, charges for consolidation of facilities and write-offs of
certain capitalized IT-related initiatives. These charges totaled $106.8 million pre-tax (all of which was
included in operating expenses), $65.7 million after-tax and $0.55 per share on a diluted basis. Fiscal
2003 results also include the impact of debt extinguishment costs associated with the Company's cash
tender offers and repurchases completed during the third quarter of fiscal 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
debt extinguishment costs amounted to $13.5 million pre-tax, $8.2 million after tax and $0.07 per share
on a diluted basis. The total impact of the charges recorded in fiscal 2003 amounted to $120.3 million
pre-tax, $73.9 million after-tax and $0.62 per share on a diluted basis.
(c) Includes the impact of integration charges related to the write-down of certain assets acquired in the
fiscal 2001 acquisition of Kent, net of certain recoveries of previous write-downs and reserves, and other
restructuring charges taken in response to business conditions, including an impairment charge to write-
down certain investments in unconsolidated Internet-related businesses to their fair value and severance
charges for workforce reductions announced during the fourth quarter of fiscal 2002. The net restructur-
ing and integration charges amounted to $79.6 million pre-tax ($21.6 million included in cost of sales and
$58.0 million included in operating expenses), $62.1 million after- tax and $0.52 per share on a diluted
basis.
(d) The fiscal 2002 selected financial data excludes the impact of the Company's adoption of the Financial
Accounting Standards Board's Statement of Financial Accounting Standards No. 142 (""SFAS 142''),
Goodwill and Other Intangible Assets, on June 30, 2001, the first day of the Company's fiscal 2002.
SFAS 142, which requires that ratable amortization of goodwill, be replaced with periodic tests for
goodwill impairment, resulted in a transition impairment charge recorded by the Company of $580.5 mil-
lion, or $4.90 per share on a diluted basis for the year. This charge is reflected as a cumulative change in
accounting principle in the consolidated statements of operations.
(e) Includes the impact of charges related to the acquisition and integration of Kent, which was accounted
for as a ""pooling-of-interests,'' and other integration, reorganization and cost cutting initiatives taken in
response to business conditions. The charges amounted to $327.5 million pre-tax ($80.6 million included
in cost of sales and $246.9 million included in operating expenses), $236.7 million after-tax and $1.99 per
share on a diluted basis.
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