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18. Summary of quarterly results (unaudited):
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter Year
(Millions, except per share amounts)
2007(a)
Sales .......................... $3,648.4 $3,891.2 $3,904.3 $4,237.2 $15,681.1
Gross profit ..................... 468.3 493.9 534.8 551.6 2,048.6
Net income...................... 64.1 99.1 105.2 124.7 393.1
Diluted earnings per share........... 0.44 0.67 0.70 0.81 2.63
2006(b)
Sales .......................... $3,268.3 $3,759.1 $3,614.6 $3,611.6 $14,253.6
Gross profit ..................... 423.2 461.8 472.1 481.9 1,839.0
Net income...................... 24.9 49.6 71.2 58.8 204.5
Diluted earnings per share........... 0.17 0.34 0.48 0.40 1.39
(a) Quarterly results for fiscal 2007 include impacts to net income and diluted earnings per share due to (i) debt
extinguishment costs (impacts first quarter); (ii) restructuring, integration and other items (impacts third and
fourth quarter); (iii) gain on sale of business line (impacts third quarter); and (iv) a benefit related to a prior year
acquisition recorded in the fourth quarter. First quarter results include debt extinguishment costs amounting to
$27.4 million pre-tax, $16.5 million after tax and $0.11 per share. Results for the third quarter include the
impact of restructuring and integration charges of $8.5 million pre-tax, $6.0 million after tax and $0.04 per
share on a diluted basis. Results in the third quarter also include a gain on sale of business lines of $3.0 million
pre-tax, $1.8 million after tax, and $0.01 per share on a diluted basis. Results for the fourth quarter include
restructuring and integration charges which were offset by a prior year acquisition-related pre-tax benefit of
$12.5 million. The combined impact on the fourth quarter for these items amounted to a benefit of $1.2 million
pre-tax, $0.7 million after tax and less than $0.01 per share on a diluted basis. The total impact of these charges
on the twelve months ended June 30, 2007 were $31.7 million pre-tax, $20.0 million after tax and $0.13 per
share on a diluted basis. For further details of the total impact of these charges on the fiscal year, see footnote
(a) to Item 6 of this Form 10-K.
(b) Quarterly results for fiscal 2006 include certain impacts to gross profit, net income and diluted earnings per
share due to (i) restructuring, integration and other items; (ii) incremental stock-based compensation costs;
(iii) debt extinguishments costs (impacts first and fourth quarter); (iv) incremental intangible assets amor-
tization in connection with the acquisition of Memec (impacts third and fourth quarter); and (v) net loss on sale
of business lines divested (impacts third and fourth quarter). The impact of the charges described in (i) through
(v) by quarter in fiscal 2006 was $29.2 million pre-tax, $19.3 million after tax and $0.14 per share on a diluted
basis in the first quarter; $36.4 million pre-tax, $24.0 million after tax and $0.16 per share on a diluted basis in
the second quarter; $12.6 million pre-tax, $8.3 million after tax and $0.05 per share on a diluted basis in the
third quarter; and $37.7 million pre-tax, $32.2 million after tax and $0.22 per share on a diluted basis in the
fourth quarter. The impact of these charges on the twelve months ended July 1, 2006 were $115.9 million pre-
tax, $83.9 million after tax and $0.57 per share on a diluted basis. For further details of the total impact of these
charges on the fiscal year, see footnote (b) to Item 6 of this Form 10-K.
81
AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)