Avnet 2012 Annual Report Download - page 73

Table of Contents
AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
18. Summary of quarterly results (unaudited):
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70
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Year(a)
(Millions, except per share amounts)
(b)
2012
Sales
$
6,426.0
$
6,693.6
$
6,280.5
$
6,307.4
$
25,707.5
Gross profit
753.6
784.1
753.8
759.0
3,050.5
Net income
139.0
147.0
147.6
133.4
567.0
Diluted earnings per share
0.90
0.98
1.00
0.91
3.79
(c)
2011
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
(a)
Quarters may not add to the year due to rounding.
(b) Second quarter of fiscal 2012 results were impacted by restructuring, integration and other charges of $34.5 million pre-tax,
$23.6 million
after tax and $0.16
per share on a diluted basis. The charges consisted of severance, facility exit costs, integration costs, transaction costs,
other restructuring charges, and a credit to adjust prior year restructuring reserves. During the second quarter, the Company also recorded
$1.4 million pre-tax, $0.9 million after tax and $0.01 per share on a diluted basis related to the write-
down of a small investment and the
write-off of deferred financing costs associated with the early retirement of a credit facility, and an income tax adjustment of
$0.5 million
primarily related to the combination of a favorable audit settlement and release of a valuation allowance on certain deferred tax assets
which were determined to be realizable, mostly offset by changes to existing tax positions primarily for transfer pricing. Third quarter
results were impacted by restructuring, integration and other charges of $18.6 million pre-tax, $13.7 million after tax and $0.10
per share
on a diluted basis. The charges consisted of severance, facility exit costs fixed asset write-
downs, integration costs, transaction costs, other
charges, and a reversal to adjust prior year restructuring reserves. During the third quarter, the Company recognized a gain on the bargain
purchase of $4.5 million pre- and after tax and $0.03
per share on a diluted basis related to the acquisition of Unidux Electronics Limited
(Singapore), and an income tax adjustment of $5.2 million and $0.04
per share on a diluted basis related primarily to the combination of
favorable audit settlements, certain reserve releases and the release of a valuation allowance on deferred tax assets which were determined
to be realizable. Fourth quarter results were impacted by restructuring, integration and other charges of $20.5 million pre-tax,
$15.7 million
after tax and $0.11
per share on a diluted basis. These charges included severance, facility exit costs, integration costs, transaction costs,
other restructuring charges and other charges related to legal claims. During the fourth quarter, the Company recognized a small adjustment
to the gain on bargain purchase related to the business in Japan acquired in the third quarter; and a net tax benefit of $4.0 million and
$0.03
per share on a diluted basis which is comprised of (i) a tax benefit of $26.3 million
for the release of tax reserves against deferred tax assets
that were determined to be realizable during the fourth quarter of fiscal 2012, partially offset by (ii) a tax provision of
$22.3 million
primarily related to the impact of withholding tax related to legal entity reorganizations and the establishment of tax reserves against
deferred tax assets that were determined to be unrealizable during the fourth quarter of fiscal 2012.
(c) First quarter of fiscal 2011 results were impacted by restructuring, integration and other charges which totaled $28.1 million pre-tax,
$20.2
million 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. 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 2012 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.