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Table of Contents
AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
reserves amounting to $1,297,000 related primarily to restructuring charges recorded in prior fiscal years in TS
EMEA.
The following table summarizes the activity in the reserve accounts during fiscal 2008:
During fiscal 2008, amounts utilized consisted of $1,304,000 in cash payments and $569,000 in adjustments
related primarily to severance and lease reserves deemed excessive and, therefore, reversed. As of June 28, 2008, the
remaining Memec FY 2006 reserves related to facility exit costs which management expects to utilize by fiscal 2010.
The remaining Other FY 2006 reserves related to facility exit costs which management expects to utilize by fiscal
2013.
76
Memec
Other
Restructuring Charges
FY 2006
FY 2006
Total
(Thousands)
Balance at June 30, 2007
$
637
$
2,115
$
2,752
Amounts utilized
(337
)
(967
)
(1,304
)
Adjustments
(168
)
(401
)
(569
)
Other, principally foreign currency translation
(87
)
47
(40
)
Balance at June 28, 2008
$
45
$
794
$
839
18. Summary of quarterly results (unaudited):
First
Second
Third
Fourth
Quarter
Quarter
Quarter
Quarter
Year(a)
(Millions, except per share amounts)
2008(b)
Sales
$
4,098.7
$
4,753.1
$
4,421.6
$
4,679.2
$
17,952.7
Gross profit
526.5
596.7
578.7
611.8
2,313.7
Net income
105.5
142.2
107.2
144.1
499.1
Diluted earnings per share
0.69
0.93
0.71
0.95
3.27
2007(c)
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
(a)
Quarters may not add to the year due to rounding.
(b) Second quarter results include a gain on sale of assets of $7.5 million pre-tax, $6.3 million after tax and $0.04
per share on a diluted basis related to $3.0 million of contingent purchase price proceeds in connection with a
prior sale of a business and $4.5 million gain on sale of a building which was not taxable. Results for the third
quarter include restructuring, integration and other charges of $10.9 million pre-tax, $7.5 million after tax and
$0.05 per share on a diluted basis. Results for the fourth quarter include restructuring, integration and other
charges of $19.1 million pre-tax, $14.4 million after tax and $0.10 per share on a diluted basis, an
indemnification settlement amounting to $6.0 million pre-tax, $7.7 million after tax and $0.05 per share on a
diluted basis paid to a former executive of an acquired company, environmental costs of $3.0 million pre-tax,
$1.8 million after tax and $0.01 per share on a diluted basis associated with long outstanding environmental
matters, the gain on sale of the Company’s investment in Calence LLC in the fourth quarter amounting to
$42.4 million pre
-
tax, $25.9 million after tax and $0.17 per share on a diluted basis and an income tax net