Avnet 2011 Annual Report Download - page 78

Table of Contents
AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
18. Summary of quarterly results (unaudited):
72
First
Second
Third
Fourth
Quarter Quarter Quarter Quarter Year(a)
(Millions, except per share amounts)
2011(b)
Sales
$
6,182.4
$
6,767.5
$
6,672.4
$
6,912.1
$
26,534.4
Gross profit
723.1
773.2
786.6
824.9
3,107.8
Net income
138.2
141.0
151.0
238.8
669.1
Diluted earnings per share
0.90
0.91
0.98
1.54
4.34
2010(c)
Sales
$
4,355.0
$
4,834.5
$
4,756.8
$
5,213.8
$
19,160.2
Gross profit
499.7
551.9
582.8
645.8
2,280.2
Net income
50.9
103.9
114.5
141.1
410.4
Diluted earnings per share
0.33
0.68
0.75
0.92
2.68
(a)
Quarters may not add to the year due to rounding.
(b) First quarter of fiscal 2011 results were impacted by restructuring, integration and other charges which totaled $28.1 million pre-
tax, $20.2 after tax and $0.13 per share on a diluted basis. Restructuring charges consisted of severance costs, facility exit costs
and other charges resulting from acquisition related integration activities. Integration costs included professional fees and salary
and benefit costs related primarily to the acquired businesses’
personnel retained by the Company for extended periods to assist
with integrations. Other charges consisted of broker fees, professional fees for legal and accounting and due diligence, and other
related costs associated with the Bell, Tallard and Unidux acquisitions. In addition, the Company recognized a gain on bargain
purchase of $31.0 million pre-
and after tax, and $0.20 per share on a diluted basis in connection with its Unidux acquisition.
Second quarter results were impacted by restructuring, integration and other charges which totaled $29.1 million pre-
tax,
$20.8 million after tax and $0.14 per share on a diluted basis incurred primarily in connection with the acquisitions and
integrations of acquired businesses. The Company also recorded a reversal of $3.5 million pre-
tax primary related to the reversal
of restructuring reserves established in prior years which were no longer needed. Third quarter of fiscal 2011 results were
impacted by restructuring, integration and other charges which totaled $16.3 million pre-
tax, $11.9 million after tax and $0.08
per share on a diluted basis incurred primarily in connection with the acquisitions and integrations of acquired businesses. In
addition, the Company recognized a loss of $6.3 million pre-
tax, $3.9 million after tax and $0.02 per share on a diluted basis
related to the write down of investments in smaller technology start-
up companies. Fourth quarter of fiscal 2011 results were
impacted by restructuring, integration and other charges which totaled $7.3 million pre-
tax, $5.8 million after tax and $0.04 per
share on a diluted basis. The Company also reversed $3.6 million pre-
tax, $2.5 million after tax and $0.02 per share on a diluted
basis for restructuring and purchase accounting reserves determined not to be needed. In addition, fourth quarter results included
a tax benefit of $52.7 million, or $0.34 per share on a diluted basis, primarily related to the release of a tax valuation allowance
for which the tax asset was determined to be realizable.
(c) First quarter of fiscal 2010 results were impacted by restructuring, integration and other charges which totaled $18.1 million pre-
tax, $13.2 million after tax and $0.09 per share on a diluted basis. Restructuring charges consisted of severance costs, facility exit
costs, and fixed asset write-
downs related to previously announced cost reduction actions. The Company recognized a reversal of
excess prior year restructuring reserves and also recognized integration costs associated with acquired businesses and other
charges. In addition, the Company recognized a net increase in taxes of $3.1 million and $0.02 per share on a diluted basis
related an adjustment for a prior year tax return and additional tax reserves, net of a benefit from a favorable income tax audit
settlement. Second quarter results were impacted by a gain on the sale of assets of $5.5 million pre-
tax, $3.4 million after tax and
$0.02 per share on a diluted basis as a result of certain earn-out provisions associated with the earlier sale of the Company’
s
equity investment in Calence LLC. Third quarter of fiscal 2010 results were impacted by restructuring, integration and other
charges of $7.3 million pre-tax, $5.6 million after tax and $0.04 per share on a diluted basis which included (i) $6.5 million pre-
tax for a value-added tax exposure in Europe related to an audit of prior years, (ii) $2.1 million pre-tax related to acquisition-
related costs, and (iii) a credit of $1.3 million pre-
tax related to reversals of restructuring reserves no longer deemed necessary.
In addition, third quarter results were impacted by a gain on the sale of assets of $3.2 million pre-
tax, $1.9 million after tax and
$0.01 per share on a diluted basis as a result of a final earn-out payment associated with the earlier sale of the Company’
s equity
investment in Calence LLC and were impacted by a net tax benefit of $2.3 million and $0.02 per share on a diluted basis related
to adjustments for a prior year tax return and a benefit from a favorable income tax audit settlement partially offset by additional
tax reserves for existing tax positions.