Avnet 2007 Annual Report Download - page 13

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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 reached a settlement in litigation to apportion the estimated clean-up costs
among it and the current and former owners and operators of the site. Pursuant to the settlement, the Company has paid a
portion of past costs incurred by NYSDEC and the current owner of the site, and will also pay a percentage of the cost of
the environmental clean up of the site (the first phase of which has been estimated to cost a total of $2.4 million for all
parties to remediate contaminated soils). The remediation plan is still subject to final approval by NYSDEC. Based on the
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.
Based on the information known to date, management believes that the Company has appropriately accrued in its
consolidated financial statements for its share of the costs associated with these and other environmental clean up sites.
The Company and/or its subsidiaries are also parties to various other legal proceedings arising from time to
time in the normal course of business. While litigation is subject to inherent uncertainties, management currently
believes that the ultimate outcome of these proceedings, individually and in the aggregate, will not have a material
adverse effect on the Company’s financial position, cash flow or results of operations.
Item 4. Submission of Matters to a Vote of Security Holders
Not applicable.
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