Avnet 2007 Annual Report Download - page 75

Shares issuable upon conversion of the 2% Convertible Debentures are excluded from the computation of
earnings per share for fiscal 2006 and 2005 as a result of the Company’s election to satisfy the principal portion of
the Debentures, if converted, in cash (see Note 7) in combination with the fact that the average stock price for fiscal
2006 and 2005 was below the conversion price per share of $33.84. Shares issuable for the conversion premium of
the 2% Convertible Debentures are included in the computation of earnings per diluted shares for fiscal 2007
because the average stock price for the fourth quarter of fiscal 2007 was above the conversion price per share of
$33.84. The number of dilutive shares for the conversion premium was calculated in accordance with EITF 04-8,
The Effect of Contingently Convertible Instruments on Diluted Earnings per Share.
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 2007, 2006 and 2005, the effects of approximately 89,000, 2,549,000 and
3,805,000 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:
June 30,
2007
July 1,
2006
July 2,
2005
Years Ended
(Thousands)
Provision for doubtful accounts ........................... $17,389 $30,737 $33,248
Periodic pension costs (Note 10) .......................... 12,779 12,956 11,919
(Gain) loss on sale of business lines (Note 2) ................. (3,000) 2,601 —
Other, net ........................................... (827) 1,373 813
Total ............................................. $26,341 $47,667 $45,980
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 during the last three years were as follows:
June 30,
2007
July 1,
2006
July 2,
2005
Years Ended
(Thousands)
Interest ............................................. $82,621 $95,299 $85,242
Income taxes . . ....................................... $67,576 $35,724 $19,083
Non-cash activity during fiscal 2007 resulting from the acquisition of Access (see Note 2) consisted of
$344,132,000 of assumed liabilities. Other non-cash activities included amounts recorded through comprehensive
income and, therefore, are not included in the consolidated statement of cash flows. Fiscal 2007 included an
adjustment to reduce to pension liabilities (including non-US pension liabilities) of $10,720,000 which was
recorded net of related deferred tax benefit of $4,181,000 in other comprehensive income (see Notes 4 and 10).
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
$27,343,000 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
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AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)