Avnet 2007 Annual Report Download - page 60

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Program does not qualify as off-balance sheet financing. As a result, the receivables and related debt obligation
remain on the Company’s consolidated balance sheet as amounts are drawn on the Program. The Company
continues servicing the sold receivables and charges the third party conduits a monthly servicing fee at market rates;
accordingly, no servicing asset or liability has been recorded. The Program has a one year term expiring at the end of
August 2007 which the Company has renewed for another year on comparable terms. At June 30, 2007, there were
no amounts outstanding under the Program.
Expenses associated with the Program consisted of program, facility and professional fees of $1,890,000,
$1,678,000 and $2,999,000, respectively, for fiscal 2007, 2006 and 2005. Costs associated with the Program were
recorded in selling, general and administrative expenses in the accompanying consolidated statements of oper-
ations. To the extent there have been drawings under the Program, the Company has historically measured the fair
value of its retained interests at the time of a securitization using a present value model incorporating two key
assumptions: (1) a weighted average life of trade accounts receivable of 45 days and (2) a discount rate of 6.75% per
annum.
4. Comprehensive income
The following table illustrates the balances of comprehensive income items at June 30, 2007, July 1, 2006 and
July 2, 2005:
June 30,
2007
July 1,
2006
July 2,
2005
(Thousands)
Accumulated translation adjustments, net ................. $306,198 $223,104 $179,853
Accumulated pension liability adjustments, net of income
taxes .......................................... (29,689) (36,228) (56,148)
Total .......................................... $276,509 $186,876 $123,705
5. Property, plant and equipment, net
Property, plant and equipment are recorded at cost and consist of the following:
June 30,
2007
July 1,
2006
(Thousands)
Land .................................................... $ 5,118 $ 4,326
Buildings ................................................. 87,323 81,619
Machinery, fixtures and equipment .............................. 519,256 494,660
Leasehold improvements . . . ................................... 44,461 39,750
656,158 620,355
Less — accumulated depreciation and amortization .................. (476,625) (460,922)
$ 179,533 $ 159,433
Depreciation and amortization expense related to property, plant and equipment was $43,734,000,
$55,053,000 and $55,955,000 in fiscal 2007, 2006 and 2005, respectively.
60
AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)