Avnet 2012 Annual Report Download - page 53

Download and view the complete annual report

Please find page 53 of the 2012 Avnet annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 140

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140

Table of Contents
AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
6. Goodwill and intangible assets
The following table presents the carrying amount of goodwill, by reportable segment, for the periods presented:
The goodwill additions are a result of businesses acquired during fiscal 2012 (see Note 2) and purchase accounting adjustments during the
purchase price allocation period. The adjustment to goodwill is a result of the transfer of previously acquired businesses from TS Americas to
EM Americas.
The following table presents the gross amount of goodwill and accumulated impairment as of July 2, 2011 and June 30, 2012
. All of the
accumulated impairment was recognized in fiscal 2009.
The Company performs its annual goodwill impairment test on the first day of its fiscal fourth quarter. In addition, if and when events or
circumstances change that would more likely than not reduce the fair value of any of its reporting units below its carrying value, an interim test
would be performed. Based upon the Company’s annual impairment tests performed for fiscal 2012 , 2011 and 2010 , there was no
impairment
of goodwill in the respective fiscal years.
Intangible assets
As of June 30, 2012 , “Other assets” included customer relationship and other intangible assets with a carrying value of $181,339,000
;
consisting of $260,667,000 in original cost value and $79,328,000
of accumulated amortization and foreign currency translation. These assets are
being amortized over a weighted average life of eight years. During fiscal 2012 , the Company recognized $93,291,000
in intangible assets
associated with acquisitions completed during fiscal 2012 . Intangible asset amortization expense was $27,717,000 , $21,240,000 and
$8,629,000
in fiscal 2012 , 2011 and 2010 , respectively. Amortization expense for the next five years is expected to be approximately $32,000,000
each
year for fiscal 2013 and 2014,
$30,000,000 for 2015, $25,000,000 for fiscal 2016 and $23,000,000 for 2017.
51
Electronics
Marketing
Technology
Solutions
Total
(Thousands)
Carrying value at July 2, 2011
$
352,870
$
532,202
$
885,072
Additions
180,757
74,486
255,243
Adjustments
27,312
(27,312
)
—
Foreign currency translation
(15,630
)
(24,064
)
(39,694
)
Carrying value at June 30, 2012
$
545,309
$
555,312
$
1,100,621
Electronics
Marketing
Technology
Solutions
Total
(Thousands)
Gross goodwill at July 2, 2011
$
1,397,980
$
866,826
$
2,264,806
Accumulated impairment
(1,045,110
)
(334,624
)
(1,379,734
)
Carrying value at July 2, 2011
$
352,870
$
532,202
$
885,072
Gross goodwill at June 30, 2012
$
1,590,419
$
889,936
$
2,480,355
Accumulated impairment
(1,045,110
)
(334,624
)
(1,379,734
)
Carrying value at June 30, 2012
$
545,309
$
555,312
$
1,100,621