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Table of Contents
AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Recent accounting pronouncements — In May 2008, the Financial Accounting Standards Board (“FASB”)
issued FSP Accounting Principles Board 14-1 Accounting for Convertible Debt Instruments That May Be Settled in
Cash upon Conversion (Including Partial Cash Settlement) (“FSP APB 14-1”). FSP APB 14-1 requires the issuer of
certain convertible debt instruments that may be settled in cash (or other assets) on conversion to separately account
for the liability (debt) and equity (conversion option) components of the instrument in a manner that reflects the
issuer’s non-convertible debt borrowing rate. FSP APB 14-1 is effective for fiscal years beginning after
December 15, 2008 on a retrospective basis, as such, will be effective beginning in the Company’s fiscal year 2010.
The Company is evaluating the potential impact on its consolidated financial statements.
In March 2008, the FASB issued Statement of Financial Accounting Standards (“SFAS”) No. 161 Disclosures
about Derivative Instruments and Hedging Activities — an amendment of FASB Statement No. 133 (“SFAS 161”).
SFAS 161 requires enhanced disclosures about the objectives of derivative instruments and hedging activities, the
method of accounting for such instruments under SFAS 133 and its related interpretations, and a tabular disclosure of
the effects of such instruments and related hedged items on an entity’s financial position, financial performance and
cash flows. SFAS 161 is effective for fiscal years beginning after November 15, 2008, as such, will be effective
beginning in the Company’s fiscal year 2010. The Company is evaluating the disclosure requirements of SFAS 161;
however, the adoption of SFAS 161 is not expected to have a material impact on the Company’s consolidated
financial statements.
In December 2007, the FASB issued SFAS No. 141 (revised 2007) Business Combinations (“SFAS 141R”).
SFAS 141R establishes the requirements for how an acquirer recognizes and measures the identifiable assets
acquired, the liabilities assumed, any non-controlling interest in the acquiree and the goodwill acquired. SFAS 141R
requires acquisition costs be expensed instead of capitalized as is required currently under SFAS 141 and also
establishes disclosure requirements for business combinations. SFAS 141R applies to business combinations for
which the acquisition date is on or after fiscal years beginning on or after December 15, 2008, as such, SFAS 141R is
effective beginning in the Company’
s fiscal year 2010. Although the Company is still evaluating the potential impact
on its consolidated financial statements upon adoption of SFAS 141R, it does expect that, based upon the Company’
s
level of acquisition activity, there may be an impact to its consolidated statement of operations.
In December 2007, the FASB issued SFAS No. 160 Non-controlling Interests in Consolidated Financial
Statements — an amendment to ARB No. 51 (“SFAS 160”). SFAS 160 will change the accounting and reporting for
minority interests, which will now be termed “non-controlling interests.” SFAS 160 requires non-
controlling interests
to be presented as a separate component of equity and requires the amount of net income attributable to the parent
and to the non-controlling interest to be separately identified on the consolidated statement of operations. SFAS 160
is effective for fiscal years beginning on or after December 15, 2008, as such, will be effective beginning in the
Company’s fiscal year 2010. The adoption of SFAS 160 is not expected to have a material impact on the Company’s
consolidated financial statements.
In September 2006, the FASB issued SFAS No. 157, Fair Value Measurements (“SFAS 157”) , which defines
fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands
disclosures about fair value measurements. SFAS 157 does not require any new fair value measurements, but
provides guidance on how to measure fair value by providing a fair value hierarchy used to classify the source of the
information. In February 2008, the FASB issued FASB Staff Position 157-1, Application of FASB Statement No. 157
to FASB Statement No. 13 and Other Accounting Pronouncements That Address Fair Value Measurements for
Purposes of Lease Classification or Measurement under Statement 13
. (“FSP 157-1”). FSP 157-1
amends SFAS 157
to exclude leasing transactions accounted for under SFAS 13 and related guidance from the scope of SFAS 157. In
February 2008, the FASB issued FASB Staff Position 157-2 (“FSP 175-2”), Effective Date of FASB Statement 157 ,
which delays the effective date of SFAS 157 for all non-financial assets and non-
financial liabilities, except for items
that are recognized or disclosed as fair value in the financial statements on a recurring basis (at least annually).
SFAS 157 is effective for fiscal year 2009, however, FSP 157-2 delays the effective date for certain items
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