Avnet 2006 Annual Report Download - page 82

AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
Shares issuable upon conversion of the 2% Convertible Debentures are excluded from the computation of
earnings per share for fiscal 2006, 2005 and 2004 because, upon conversion, the Company will deliver cash in
lieu of common stock as the Company made an irrevocable election in December 2004 to satisfy the principal
portion of the Debentures, if converted, in cash (see Note 7).
The effects of certain stock options and restricted stock awards are also excluded from the determination
of the weighted average common shares for diluted earnings per share in each of the periods presented as the
effects were antidilutive or the exercise price for the outstanding options exceeded the average market price for
the Company's common stock. Accordingly, in fiscal 2006, 2005 and 2004, the effects of approximately
2,549,000, 3,805,000 and 4,276,000 shares, respectively, 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 (see Note 12 for options outstanding and weighted average
exercise prices).
15. Additional cash flow information
Other non-cash and reconciling items consist of the following:
Years Ended
July 1, July 2, July 3,
2006 2005 2004
(Thousands)
Provision for doubtful accounts ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $30,737 $33,248 $36,434
Stock-based compensation (Note 12) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 18,096 1,047 Ì
Periodic pension costs (Note 10) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 12,956 11,919 11,309
Loss on sale of business lines (Note 2) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2,601 Ì Ì
Other, netÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,373 901 (94)
Total ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $65,763 $47,115 $47,649
Other, net cash flows from financing activities are comprised primarily of proceeds from the exercise of
stock options (see Note 12).
Interest and income taxes paid (refunded) during the last three years were as follows:
Years Ended
July 1, July 2, July 3,
2006 2005 2004
(Thousands)
Interest ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $95,299 $85,242 $105,773
Income taxes ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $35,724 $19,083 $(59,073)
Non-cash activity during the fiscal 2006 that was a result of the Memec acquisition (see Note 2)
consisted of $418,205,000 of common stock issued as part of the consideration, $447,499,000 of liabilities
assumed and $27,343000 of debt assumed. Other non-cash activities included amounts recorded through
comprehensive income and, therefore, are not included in the consolidated statement of cash flows. Fiscal
2006 included a reversal of a portion of additional minimum pension liabilities (including non-US pension
liabilities) of $32,979,000 which was recorded net of related deferred tax benefit of $13,059,000 in other
comprehensive income (see Notes 4 and 10), and the exercise of a facility lease purchase option through the
assumption of debt in the amount of $3,987,000.
Non-cash activity in fiscal 2005 and 2004 related to the impact of minimum pension liabilities recorded
through other comprehensive income (see Notes 4 and 10). In fiscal 2005, the Company recognized through
other comprehensive income additional minimum pension liabilities or $30,542,000, net of the related deferred
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