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Table of Contents
AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
benefits included in the benefit obligation. This assumption has been determined by combining expectations
regarding future rates of return for the investment portfolio along with the historical and expected distribution of
investments by asset class and the historical rates of return for each of those asset classes. The mix of equity
securities is typically diversified to obtain a blend of domestic and international investments covering multiple
industries. The Plan assets do not include any material investments in Avnet common stock. The Plan’s investments
in debt securities are also diversified across both public and private fixed income portfolios. The Company’s current
target allocation for the investment portfolio is for equity securities, both domestic and international, to represent
approximately 76% of the portfolio with a policy for minimum investment in equity securities of 60% of the portfolio
and a maximum of 92%. The majority of the remaining portfolio of investments is to be invested in fixed income
securities.
401(k) Plan
The Company has a 401(k) plan that covers substantially all domestic employees. During fiscal 2009, 2008 and
2007, the expense related to the 401(k) plan was not material.
The Company leases many of its operating facilities and is also committed under lease agreements for
transportation and operating equipment. Rent expense charged to operations during the last three years is as follows:
The aggregate future minimum operating lease commitments, principally for buildings, in fiscal 2010 through
2014 and thereafter (through 2019), are as follows (in thousands):
The Company measures all share-based payments, including grants of employee stock options, at fair value and
recognizes related expense in the consolidated statement of operations over the service period (generally the vesting
period). During fiscal 2009, 2008 and 2007, the Company expensed $18,269,000, $25,389,000 and $24,250,000,
respectively, for all stock-based compensation awards.
Stock plan
The Company has one stock compensation plan, the 2006 Stock Compensation Plan (“2006 Plan”) which was
approved by the shareholders in fiscal 2007. The 2006 Plan has a termination date of November 8, 2016 and
64
11.
Long
-
term leases
Years Ended
June 27,
June 28,
June 30,
2009
2008
2007
(Thousands)
Buildings
$
58,213
$
53,377
$
43,063
Equipment
6,169
5,799
5,423
$
64,382
$
59,176
$
48,486
2010
$
77,168
2011
57,750
2012
44,331
2013
33,977
2014
20,523
Thereafter
31,546
Total
$
265,295
12. Stock-based compensation plans