Avnet 2011 Annual Report Download - page 71

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Table of Contents
AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Employee stock purchase plan
The Company has an Employee Stock Purchase Plan (“ESPP”)
under the terms of which eligible employees of the Company are
offered options to purchase shares of Avnet common stock at a price equal to 95% of the fair market value on the last day of each
monthly offering period. Based on the terms of the ESPP, Avnet is not required to record expense in the consolidated statements of
operations related to the ESPP.
The Company has a policy of repurchasing shares on the open market to satisfy shares purchased under the ESPP, and expects
future repurchases during fiscal 2012 to be similar to the number of shares repurchased during fiscal 2011, based on current estimates
of participation in the program. During fiscal 2011, 2010 and 2009, there were 62,329, 67,168 and 100,206 shares, respectively, of
common stock issued under the ESPP program.
13. Commitments and contingencies
From time to time, the Company may become a party to, or otherwise involved in other pending and threatened litigation, tax,
environmental and other matters arising in the ordinary course of conducting its business. Management does not anticipate that any
contingent matters will have a material adverse effect on the Company’s financial condition, liquidity or results of operations.
14. Earnings per share
Basic earnings per share is computed based on the weighted average number of common shares outstanding and excludes any
potential dilution. Diluted earnings per share reflect potential dilution from the exercise or conversion of securities into common stock.
Options to purchase 238,000 and 700,000 shares of the Company’
s stock were excluded from the calculations of diluted earnings
per shares in fiscal 2011 and 2010, respectively, because the exercise price for those options was above the average market price of the
Company’s stock during those periods. Inclusion of these options in the diluted earnings per share calculation would have had an anti-
dilutive effect.
For fiscal 2009, dilutive effects of stock options, stock awards and shares issuable upon conversion of the Company’
s 2%
Convertible Debentures were excluded from the computation of earnings per diluted share because the Company recognized a net loss
and inclusion of these items would have had an anti-dilutive effect. The Convertible Debentures were repaid in March 2009.
65
Years Ended
July 2,
July 3,
June 27,
2011
2010
2009
(Thousands, except per share data)
Numerator:
Net income (loss) for basic and diluted earnings per share
$
669,069
$
410,370
$
(1,129,712
)
Denominator:
Weighted average common shares for basic earnings (loss) per share
152,481
151,629
150,898
Net effect of dilutive stock options and performance share awards
1,856
1,464
—
Weighted average common shares for diluted earnings per share
154,337
153,093
150,898
Basic earnings (loss) per share
$
4.39
$
2.71
$
(7.49
)
Diluted earnings (loss) per share
$
4.34
$
2.68
$
(7.49
)