Avnet 2008 Annual Report Download - page 15

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Table of Contents
The agreements governing some of the Company
’
s financings contain various covenants and restrictions that
limit the discretion of management in operating its business and could prevent us from engaging in some
activities that may be beneficial to the Company’s business.
The agreements governing the Company’s financing, including its five-year, $500 million credit facility and the
indentures governing the Company’s outstanding notes, contain various covenants and restrictions that, in certain
circumstances, limit the Company’s ability and the ability of certain subsidiaries to:
As a result of these covenants and restrictions, the Company may be limited in how it conducts its business and
may be unable to raise additional debt, compete effectively or make investments.
In addition to the specific factors described above, general economic or business conditions, domestic and
foreign, may be less favorable than management expected and, if such conditions persist in a sustained period of
time, could eventually adversely impact the Company’s sales or the Company’s ability to collect receivables from
some of its customers.
Not applicable.
At June 28, 2008, the Company owned and leased approximately 851,000 and 3,788,000 square feet of space,
respectively, of which approximately 43% is located in the United States. The following table summarizes certain of
the Company’s key facilities as of June 28, 2008.
As a result primarily of certain former manufacturing operations, Avnet has incurred and may have future
liability under various federal, state and local environmental laws and regulations, including those governing
pollution and exposure to, and the handling, storage and disposal of, hazardous substances. For example, under the
Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (“CERCLA”) and
similar state laws, Avnet is and may be liable for the costs of cleaning up environmental contamination on or from
certain of its current or former properties, and at off-
site locations where the Company disposed of wastes in the past.
Such laws may impose joint and several liability. Typically, however, the costs for cleanup at such sites are
12
•
grant liens on assets;
• make restricted payments (including paying dividends on capital stock or redeeming or repurchasing capital
stock);
•
make investments;
•
merge, consolidate or transfer all or substantially all of the Company
’
s assets;
•
incur additional debt; or
•
engage in certain transactions with affiliates.
Item 1B.
Unresolved Staff Comments
Item 2.
Properties
Sq.
Leased or
Location
Footage
Owned
Primary Use
Chandler, Arizona
399,000
Owned
EM warehousing and value
-
added operations
Tongeren, Belgium
244,000
Owned
EM and TS warehousing and value
-
added operations
Grapevine, Texas
181,000
Owned
EM warehousing and value
-
added operations
Poing, Germany
423,000
Leased
EM warehousing, value
-
added operations and offices
Chandler, Arizona
228,000
Leased
TS warehousing, integration and value
-
added operations
Tsuen Wan, Hong Kong
181,000
Leased
EM warehousing and value
-
added operations
Phoenix, Arizona
176,000
Leased
Corporate and EM headquarters
Tempe, Arizona
132,000
Leased
TS headquarters
Item 3.
Legal Proceedings