Avnet 2011 Annual Report Download - page 19

Table of Contents
16
(a)
As adjusted for the retrospective application of an accounting standard. The Financial Accounting Standards Board issued
authoritative guidance which requires the issuer of certain convertible debt instruments that may be settled in cash (or other
assets) on conversion to separately account for the debt and equity (conversion option) components of the instrument. The
standard requires the convertible debt to be recognized at the present value of its cash flows discounted using the non-
convertible
debt borrowing rate at the date of issuance. The resulting debt discount from this present value calculation is to be recognized as
the value of the equity component and recorded to additional paid in capital. The discounted convertible debt is then required to
be accreted up to its face value and recorded as non-
cash interest expense over the expected life of the convertible debt. In
addition, deferred financing costs associated with the convertible debt are required to be allocated between the debt and equity
components based upon relative values. During the first quarter of fiscal 2010, the Company adopted this standard, however,
there was no impact to the fiscal 2010 consolidated financial statements because the Company’
s 2% Convertible Senior
Debentures, to which this standard applied, were extinguished in fiscal 2009. Due to the required retrospective application of this
standard to prior periods, the Company adjusted the prior period comparative consolidated financial statements. The following
table summarizes the adjustments to increase (decrease) previously reported balances.
June 27,
June 28,
June 30,
Adjustments
-
increase (decrease)
2009
2008
2007
(Millions, except per share data)
Selling, general and adminstrative expenses
$
(0.3
)
$
(0.4
)
$
(0.4
)
Interest expense
12.2
15.9
14.8
Income tax provision
(4.6
)
(6.0
)
(5.7
)
Net income
(7.3
)
(9.5
)
(8.7
)
Basic EPS
$
(0.05
)
$
(0.06
)
$
(0.05
)
Diluted EPS
$
(0.05
)
$
(0.06
)
$
(0.06
)
Prepaid and other current assets
$
—
$
(
0.3
)
$
(0.7
)
Other assets
—
(
4.6
)
(10.7
)
Long term debt
—
(
12.2
)
(28.1
)
Shareholders
’
equity
$
—
$
7.3
$
16.8
(b) Includes the impact of restructuring, integration and other items which totaled $77.2 million pre-
tax, $56.2 million after tax and
$0.36 per share on a diluted basis, a gain on bargain purchase and other which totaled $22.7 million pre-
tax, $25.7 million after
tax and $0.17 per share on a diluted basis, and a tax benefit of $32.9 million and $0.21 per share on a diluted basis primarily due
to the release of certain tax valuation allowances net of additional tax reserves (see Note 18 in the
Notes to the Consolidated
Financial Statements
contained in Item 15 of this Report for further discussion of these items).
(c) Includes the impact of restructuring, integration and other items which totaled $25.4 million pre-
tax, $18.8 million after tax and
$0.12 per share on a diluted basis and includes gain on sale of assets which totaled $8.8 million pre-
tax, $5.4 million after tax
and $0.03 per share on a diluted basis (see Note 18 in the Notes to the Consolidated Financial Statements
contained in Item 15 of
this Report for further discussion of these items).
(d) Includes goodwill and intangible asset impairment charges of $1.41 billion pre-
tax, $1.38 billion after tax and $9.13 per share
and includes the impact of restructuring, integration and other items which totaled $99.3 million pre-
tax, $34.9 million after tax
and $0.23 per share (see Note 18 in the Notes to the Consolidated Financial Statements
contained in Item 15 of this Report for
further discussion of these items).
(e)
Includes the impact of restructuring, integration and other items, gain on sale of assets and other items which totaled to a gain of
$11.0 million pre
-
tax, $14.7 million after tax and $0.09 per share on a diluted basis.
(f)
Includes the impact of restructuring, integration and other items, gain on sale of assets, debt extinguishment costs and other items
which amounted to charges of $31.7 million pre
-
tax, $20.0 million after tax and $0.13 per share on a diluted basis.
(g)
This calculation of working capital is defined as current assets less current liabilities.