Avnet 2007 Annual Report Download - page 64

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Aggregate debt maturities for fiscal 2008 through 2012 and thereafter are as follows (in thousands):
2008 .............................................................. $ 53,367
2009 .............................................................. 1,744
2010 .............................................................. 1,795
2011 .............................................................. 1,923
2012 .............................................................. 1,112
Thereafter .......................................................... 1,152,499
Subtotal . . ........................................................ 1,212,440
Discount on notes .................................................... (3,083)
Total debt ........................................................ $1,209,357
At June 30, 2007, the fair value, generally based upon quoted market prices, of the 5.875% Notes due 2014 is
$293,400,000, the fair value of the 6.00% Notes due 2015 is $236,405,000, the fair value of the 6.625% Notes due
2016 is $304,308,000 and the fair value of the 2% Convertible Senior Debentures due 2034 is $372,000,000.
8. Accrued expenses and other
Accrued expenses and other consist of the following:
June 30,
2007
July 1,
2006
(Thousands)
Payroll, commissions and related accruals .......................... $181,483 $153,041
Income taxes................................................ 157,750 137,995
Other ..................................................... 156,368 177,118
$495,601 $468,154
At June 30, 2007 and July 1, 2006, accruals for income tax contingencies of $104,216,000 and $90,119,000,
respectively, are included in accrued income taxes. These contingency reserves relate to various tax matters and
result from dealing with uncertainties in the application of complex tax regulations in the large number of global tax
jurisdictions in which the Company operates. In accordance with Statement of Financial Accounting Standard No. 5,
Accounting for Contingencies, the Company recognizes these tax liabilities based upon best estimates of whether,
and the extent to which, additional taxes and interest may be due. These reserves are adjusted as facts and
circumstances change. During fiscal 2007, Avnet recorded additional tax contingency reserves for exposures in the
EMEA and Asia regions which were partially offset with a favorable audit settlement. During fiscal 2006, Avnet
acquired income tax contingency reserves as a result of the Memec acquisition and recorded additional contingency
reserves for tax exposures in the EMEA and Asia regions, partially offset by the favorable settlement of a European
audit.
9. Income taxes
The components of the provision for income taxes are indicated in the table below. The tax provision for
deferred income taxes results from temporary differences arising principally from inventory valuation, accounts
receivable valuation, net operating losses, certain accruals and depreciation, net of any changes to the valuation
allowance.
64
AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)