Avnet 2012 Annual Report Download - page 59

Table of Contents
AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Reconciliations of the beginning and ending accrual balances for unrecognized tax benefits are as follows:
The evaluation of income tax positions requires management to estimate the ability of the Company to sustain its position and estimate the
final benefit to the Company. To the extent that these estimates do not reflect the actual outcome there could be an impact on the consolidated
financial statements in the period in which the position is settled, the statute of limitations expire or new information becomes available as the
impact of these events are recognized in the period in which they occur. It is difficult to estimate the period in which the amount of a tax position
will change as settlement may include administrative and legal proceedings whose timing the Company cannot control. The effects of settling tax
positions with tax authorities and statute expirations may significantly impact the accrual for income tax contingencies. Within the next twelve
months, management estimates that approximately $46,965,000
of tax contingencies will be settled primarily through agreement with the tax
authorities for tax positions related to valuation matters and positions related to acquired entities; such matters are common to multinational
companies. The expected cash payment related to the settlement of these contingencies is $12,925,000 .
The Company conducts business globally and consequently files income tax returns in numerous jurisdictions including those listed in the
following table. It is also routinely subject to audit in these and other countries. The Company is no longer subject to audit in its major
jurisdictions for periods prior to fiscal year 2005. The open years, by major jurisdiction, are as follows:
10. Pension and retirement plans
Pension Plan
The Company’s noncontributory defined benefit pension plan (the “Plan”)
covers substantially all domestic employees. Employees are
eligible to participate in the Plan following the first year of service during which they worked at least 1,000
hours. The Plan provides defined
benefits pursuant to a cash balance feature whereby a participant accumulates a benefit based upon a percentage of current salary, which varies
with age, and interest credits. The Company uses June 30 as the measurement date for determining pension expense and benefit obligations for
each fiscal year. Not included in the tabulations and discussions that follow are pension plans of certain non-
U.S. subsidiaries, which are not
material.
56
June 30, 2012
July 2, 2011
(Thousands)
Balance at beginning of year
$
175,151
$
132,828
Additions for tax positions taken in prior periods, including interest
19,262
40,218
Reductions for tax positions taken in prior periods, including interest
(35,898
)
(16,837
)
Additions for tax positions taken in current period
8,179
11,041
Reductions related to cash settlements with taxing authorities
(7,460
)
(616
)
Reductions related to the lapse of statute of limitations
(3,810
)
(1,565
)
Additions (reductions) related to foreign currency translation
(8,798
)
10,082
Balance at end of year
$
146,626
$
175,151
Jurisdiction Fiscal Year
Singapore
2005 –
2012
Hong Kong 2006 –
2012
United States (federal and state), United Kingdom and Taiwan 2007 –
2012
Netherlands 2008 –
2012
Belgium and Germany 2010 –
2012