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Table of Contents
AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
In June 2006, the Company repurchased $113,640,000 of the $475,000,000 of 9
3
/
4
% Notes and, in connection
with this repurchase, the Company terminated one of the interest rate swaps with a notional amount of $100,000,000
that hedged a portion of the 9
3
/
4
% Notes. The termination of this swap and repurchase of the related hedged notes
resulted in debt extinguishment costs of $10,919,000 pre-tax, $6,601,000 after tax and $0.04 per share on a diluted
basis. As a result of the tender and total repurchases in fiscal 2006 and the termination of interest rate swaps, as
previously discussed, the Company incurred total debt extinguishment costs of $22,585,000 pre-tax, $13,653,000
after tax and $0.09 per share on a diluted basis, relating primarily to premiums and other transaction costs.
The $300,000,000 2% Convertible Senior Debentures due March 15, 2034 (the “Debentures”) are convertible
into Avnet common stock at a rate of 29.5516 shares of common stock per $1,000 principal amount of Debentures.
The Debentures are only convertible under certain circumstances, including if: (i) the closing price of the Company’
s
common stock reaches $45.68 per share (subject to adjustment in certain circumstances) for a specified period of
time; (ii) the average trading price of the Debentures falls below a certain percentage of the conversion value per
Debenture for a specified period of time; (iii) the Company calls the Debentures for redemption; or (iv) certain
corporate transactions, as defined, occur. The Company may redeem some or all of the Debentures for cash any time
on or after March 20, 2009 at the Debentures’ full principal amount plus accrued and unpaid interest, if any. Holders
of the Debentures may require the Company to purchase, in cash, all or a portion of the Debentures on March 15,
2009, 2014, 2019, 2024 and 2029, or upon a fundamental change, as defined, at the Debentures’ full principal
amount plus accrued and unpaid interest, if any. In December 2004, the Company made an irrevocable election to
satisfy the principal portion of the Debentures in cash and settle the remaining obligation with shares of common
stock if and when the Debentures are converted.
Aggregate debt maturities for fiscal 2009 through 2013 and thereafter are as follows (in thousands):
At June 28, 2008, the fair value, generally based upon quoted market prices, of the 5.875% Notes due 2014 was
$289,485,000, the fair value of the 6.00% Notes due 2015 was $245,298,000, the fair value of the 6.625% Notes due
2016 was $294,231,000 and the fair value of the 2% Convertible Senior Debentures due 2034 was $299,813,000.
Accrued expenses and other consist of the following:
59
2009
$
43,804
2010
8,204
2011
2,092
2012
1,290
2013
20,952
Thereafter
1,151,669
Subtotal
1,228,011
Discount on notes
(2,709
)
Total debt
$
1,225,302
8.
Accrued expenses and other
June 28,
June 30,
2008
2007
(Thousands)
Payroll, commissions and related accruals
$
188,995
$
181,483
Income taxes (Note 9)
83,864
157,750
Other
169,686
156,368
$
442,545
$
495,601