Avnet 2009 Annual Report Download - page 74

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
impairment charges (see Note 6) and restructuring, integration and other charges (see Note 17). In fiscal 2009, 2008
and 2007, presented above, approximate unallocated pre-tax impairment charges and restructuring, integration and
other items related to EM and TS, respectively, were charges of $1,116,335,000 and $389,561,000 in fiscal 2009,
charges of $12,183,000 and $17,787,000 in fiscal 2008, and a benefit of ($5,201,000) and charges of $11,522,000 in
fiscal 2007. The remaining restructuring, integration and other items in each year relate to corporate activities.
Fiscal 2009
In response to the decline in sales and gross profit margin, the Company initiated significant cost reduction
actions over the past four quarters in order to realign its expense structure with market conditions. As a result, the
Company incurred restructuring, integration and other charges totaling $99,342,000 pre-tax, $65,310,000 after tax
and $0.43 per share during fiscal 2009 related to the cost reductions as well as integration costs associated with
recently acquired businesses. The Company also recorded a reversal of $2,514,000 severance, lease and other
reserves that were deemed excessive and credited to “restructuring, integration and other charges.” Integration costs
of $11,160,000 included professional fees, facility moving costs, travel, meeting, marketing and communication
71
Years Ended
June 27,
June 28,
June 30,
2009
2008
2007
(Millions)
Property, plant and equipment, net, by geographic area:
Americas(5)
$
183.9
$
148.9
$
112.5
EMEA(6)
101.3
64.9
55.3
Asia/Pacific
20.5
13.4
11.7
$
305.7
$
227.2
$
179.5
(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)
Includes sales in the United States of $6.8 billion, $7.8 billion and $7.2 billion for fiscal year 2009, 2008 and
2007, respectively.
(3)
Includes sales in Germany and the United Kingdom of $1.8 billion and $1.0 billion, respectively, for fiscal 2009.
Includes sales in Germany of $2.2 billion and $1.8 billion for fiscal 2008 and 2007, respectively. Sales in the
United Kingdom in fiscal year 2008 and 2007 were not a significant component of consolidated sales.
(4)
Includes sales of $990 million, $1.2 billion and $862 million in Taiwan, Hong Kong and Singapore, respectively,
for fiscal 2009. Includes sales of $1.0 billion, $945 million and $895 million in Taiwan, Hong Kong and
Singapore, respectively, for fiscal 2008. Includes sales of $864 million, $797 million and $760 million in Taiwan,
Hong Kong and Singapore, respectively, for fiscal 2007.
(5)
Includes property, plant and equipment, net, of $179.6 million, $145.4 million and $110.0 million in the United
States for fiscal 2009, 2008 and 2007, respectively.
(6)
Includes property, plant and equipment, net, of $41.4 million, $24.2 million and $26.8 million in Germany,
Belgium and the United Kingdom, respectively, for fiscal 2009. Fiscal 2008 and 2007 includes property, plant
and equipment, net, of $31.8 million and $26.8 million, respectively, in Germany, and $16.8 million and
$13.4 million, respectively, in Belgium. Property, plant and equipment, net, in the United Kingdom were not a
significant component of consolidated property, plant and equipment, net.
17.
Restructuring, integration and other charges