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Table of Contents AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Avnet, CBP began a compliance audit. The Company evaluated projected duties, interest and penalties that potentially may be imposed as a
result of the audit and recognized a contingent liability of $10,000,000
which was recorded to goodwill in fiscal 2011. Depending on the ultimate
resolution of the matter with CBP, the Company estimates that the range of the potential exposure associated with the liability may be up to
$73,000,000
; however, the Company believes the contingent liability recorded is a reasonable estimate of the liability based upon the facts
currently available at this time.
Other
During fiscal 2012, the Company recorded $6,665,000
for (i) a legal claim associated with an acquired business for a potential royalty
claim related to periods prior to acquisition by Avnet and (ii) a legal claim associated with an indemnification of a prior divested business.
From time to time, the Company may become a party to, or otherwise involved in various lawsuits, claims, investigations and other legal
proceedings arising in the ordinary course of conducting its business. While litigation is subject to inherent uncertainties, management does not
anticipate that any ongoing matters will have a material adverse effect on the Company’s financial condition, liquidity or results of operations.
14. Earnings per share
Basic earnings per share is computed based on the weighted average number of common shares outstanding and excludes any potential
dilution. Diluted earnings per share reflect potential dilution from the exercise or conversion of securities into common stock.
Options to purchase 565,840 shares of the Company's stock for fiscal 2013 and 238,000 shares for both fiscal 2012 and 2011
, were
excluded from the calculations of diluted earnings per shares because the exercise price for those options was above the average market price of
the Company’s stock during those periods. Inclusion of these options in the diluted earnings per share calculation would have had an anti-
dilutive effect.
15. Additional cash flow information
Other non-cash and reconciling items consist of the following:
64
Years Ended
June 29, 2013
June 30, 2012
July 2, 2011
(Thousands, except per share data)
Numerator:
Net income for basic and diluted earnings per share
$
450,073
$
567,019
$
669,069
Denominator:
Weighted average common shares for basic earnings per share
137,951
147,278
152,481
Net effect of dilutive stock options and performance share awards
2,052
2,275
1,856
Weighted average common shares for diluted earnings per share
140,003
149,553
154,337
Basic earnings per share
$
3.26
$
3.85
$
4.39
Diluted earnings per share
$
3.21
$
3.79
$
4.34
Years Ended
June 29,
2013
June 30,
2012
July 2,
2011
(Thousands)
Provision for doubtful accounts
$
30,802
$
35,632
$
39,255
Periodic pension costs (Note 10)
36,993
24,172
17,295
Other, net
7,532
6,459
296
Total
$
75,327
$
66,263
$
56,846