Avnet 2008 Annual Report Download - page 76

Table of Contents
AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The Company manages its business based upon the operating results of its two operating groups before
restructuring and other charges (see Note 17). In fiscal 2008, 2007 and 2006, presented above, approximate
unallocated pre-tax restructuring, integration and other items related to EM and TS, respectively, were charges of
$12,183,000 and $17,787,000 in fiscal 2008, a benefit of ($5,201,000) and charges of $11,522,000 in fiscal 2007, and
$53,456,000 and $9,529,000 in fiscal 2006. The remaining restructuring, integration and other items in each year
relate to corporate activities.
Fiscal 2008
During fiscal 2008, the Company incurred restructuring, integration and other charges totaling $38,942,000 pre-
tax, $31,469,000 after tax and $0.21 per share on a diluted basis related to cost reductions required to improve the
performance at certain business units and integration costs associated with recently acquired businesses. In addition,
the Company recorded reversals of excess reserves related to prior year restructuring activity and recorded charges
for an indemnification payment related to a prior year acquisition and costs associated with the reassessment of
existing environmental matters. A summary of these charges is presented in the following table:
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(1)
As discussed in Note 1, the Company reviewed its method of recording revenue related to the sales of supplier
service contracts and determined that such sales will now be classified on a net revenue basis rather than on a
gross basis beginning the third quarter of fiscal 2007.
(2)
Included in sales for fiscal years 2008, 2007 and 2006 for the Americas region are $7.8 billion, $7.2 billion and
$6.4 billion, respectively, of sales related to the United States.
(3)
Included in sales for fiscal years 2008, 2007 and 2006 for the EMEA region are $2.2 billion, $1.8 billion and
$1.6 billion, respectively, of sales related to Germany.
(4)
Included in sales for fiscal year 2008 for the Asia/Pacific region are $1.0 billion, $945 million and $895 million
of sales related to Taiwan, Hong Kong and Singapore, respectively. Included in sales for fiscal year 2007 for the
Asia/Pacific region are $864 million, $797 million and $760 million of sales related to Taiwan, Hong Kong and
Singapore, respectively. Included in sales for fiscal year 2006 for the Asia/Pacific region are $688 million,
$850 million and $606 million of sales related to Taiwan, Hong Kong and Singapore, respectively.
(5)
Property, plant and equipment, net, for the Americas region as of the end of fiscal 2008, 2007 and 2006 includes
$145.4 million, $110.0 million and $93.3 million, respectively, related to the United States.
(6)
Property, plant and equipment, net, for the EMEA region as of the end of fiscal 2008, 2007 and 2006 includes
$31.8 million, $26.8 million and $25.9 million, respectively, related to Germany and $16.8 million, $13.4 million
and $13.5 million, respectively, related to Belgium.
17. Restructuring, integration and other charges
Year Ended
June 28, 2008
(Thousands)
Restructuring charges
$
23,286
Integration costs
7,388
Reversal of excess prior year restructuring reserves
(704
)
Sub
-
total
29,970
Indemnification payment
6,005
Environmental costs
2,967
Total restructuring, integration and other charges
$
38,942