Avnet 2013 Annual Report Download - page 49

Table of Contents AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
to disclose both gross information and net information about both instruments and transactions eligible for offset in the statement of financial
position and instruments and transactions subject to an agreement similar to a master netting arrangement. In January 2013, the FASB issued
ASU No. 2013-01, Scope Clarification of Disclosures about Offsetting Assets and Liabilities, ("ASU 2013-
01"), which was issued to limit the
scope of the new balance sheet offsetting disclosure requirements as prescribed by ASU 2011-11. ASU 2011-11 and ASU 2013-
01 are effective
for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. Retrospective disclosure is
required for all comparative periods presented. The adoption of ASU 2011-11 and ASU 2013-
01 are not expected to have a material impact on
the Company’s consolidated financial statements.
In February 2013, the FASB issued ASU No. 2013-
02, Comprehensive Income (Topic 220), Reporting of Amounts Reclassified Out of
Accumulated Other Comprehensive Income, (“ASU 2013-02”). ASU 2013-
02 requires entities to report information about reclassifications out
of accumulated other comprehensive income ("AOCI") and changes in AOCI balances by component. For significant items reclassified out of
AOCI to net income in their entirety in the same reporting period, reporting is required about the effect of the reclassifications on the respective
line items in the statement where net income is presented (either on the face of the statement where net income is presented or in the notes). For
items that are not reclassified to net income in their entirety in the same reporting period (e.g., pension amounts that are included in inventory), a
cross reference to other disclosures is required in the notes. ASU 2013-
02 is effective for annual periods and interim periods within those annual
periods beginning after December 15, 2012. This ASU is to be applied prospectively and early adoption is permitted. The adoption of ASU
2013-02 will not have a material impact on the Company’
s consolidated financial statements, as it only represents a modification of disclosure
requirements within the financial statements.
In February 2013, the FASB issued ASU No. 2013-
04, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability
Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date (“ASU 2013-04”). ASU 2013-
04 provides guidance
for the recognition, measurement and disclosure of obligations resulting from joint and several liability arrangements for which the total amount
of the obligation within the scope of this ASU is fixed at the reporting date. The guidance requires an entity to measure those obligations as the
sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-
obligors as well as any additional amount the
reporting entity expects to pay on behalf of its co-obligors. ASU 2013-
04 also requires an entity to disclose the nature and amount of those
obligations. The amendments in this ASU are effective for reporting periods beginning after December 15, 2013, with early adoption permitted.
Retrospective application is required. The adoption of ASU 2013-
04 is not expected to have a material impact on the Company's consolidated
financial statements.
In March 2013, the FASB issued Accounting Standards Update No. 2013-
05, Parent's Accounting for the Cumulative Translation
Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity
("ASU No. 2013-
05"), which clarifies preexisting guidance regarding the treatment of cumulative translation adjustments when a parent either
sells a part or all of its investment in a foreign entity. ASU No. 2013-
05 is effective for fiscal years beginning after December 2014, and interim
and annual periods thereafter. The Company has reviewed the main provisions of ASU No. 2013-
05 and believes that adoption of this update
will not have a material impact on the Company's financial position or results of operations.
2. Acquisitions and divestitures
2013 Acquisitions
During fiscal 2013 , the Company acquired 12 businesses with aggregate annualized revenue of approximately $1.18 billion
for a total
consideration of $308,951,000 , which consisted of the following (in thousands):
The contingent consideration arrangements stipulate the Company pay up to a maximum of approximately $22,150,000
of additional
consideration to the former shareholders of the acquired businesses upon the achievement of certain operating results. The Company estimated
the fair value of the contingent consideration using an income approach which is based on significant inputs not observable in the market and
thus represents a Level 3 measurement as defined in ASC 820. The Company adjusts the contingent consideration periodically based on changes
to the inputs used in the income approach and the accretion of interest associated with the discounted liability.
46
Cash
$
297,484
Contingent consideration
11,467
Total
$
308,951