Avnet 2013 Annual Report Download - page 74

Table of Contents AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Fiscal
2011 and prior reserve activity
In addition to the fiscal 2011 restructuring activity, the Company incurred restructuring charges under prior restructuring plans. The fiscal
2013 activity related to the remaining reserves associated with these restructuring actions is presented in the following table:
As of June 29, 2013
, management expects the majority of the remaining severance and other reserves to be utilized by the end of fiscal
2020 and the remaining facility exit cost reserves to be utilized by the end of fiscal 2016 .
18. Summary of quarterly results (unaudited):
______________________
71
Severance
Reserves
Facility
Exit Costs
Other Total
(Thousands)
Balance at June 30, 2012
$
443
$
4,977
$
905
$
6,325
Cash payments
(138
)
(2,791
)
(120
)
(3,049
)
Adjustments
(158
)
(616
)
(117
)
(891
)
Other, principally foreign currency translation
20
12
(1
)
31
Balance at June 29, 2013
$
167
$
1,582
$
667
$
2,416
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Year(a)
(Millions, except per share amounts)
(b)
2013
Sales
$
5,870.1
$
6,699.5
$
6,298.7
$
6,590.7
$
25,459.0
Gross profit
684.4
768.5
756.0
770.9
2,979.8
Net income
100.3
137.5
86.2
126.1
450.1
Diluted earnings per share
0.70
0.99
0.62
0.91
3.21
(c)
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
(a)
Quarters may not add to the year due to rounding.
(b) First quarter of fiscal 2013, results were impacted by restructuring, integration and other charges of $37.4 million pre-tax,
$27.1 million
after tax and $0.19
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. The Company recognized a gain on bargain purchase of
$31.3 million pre- and after tax and $0.22
per share on a diluted basis related to the acquisition of Internix, Inc., and an income tax
adjustment of $12.2 million
primarily related to a favorable settlement of an income tax audit. Second quarter results were impacted by
restructuring, integration and other charges of $24.9 million pre-tax, $19.9 million after tax and $0.14
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. The Company recorded a net gain of $0.1 million pre-
and after tax share consisting of an
adjustment of $1.7 million pre-
and after tax to increase the gain on bargain purchase recorded in the first quarter of 2013 offset by a loss on
a divestiture related to a small business in TS Asia. The Company also recorded an income tax adjustment of $17.4 million
related to a
favorable audit settlement of a U.S. income tax audit for an acquired company. Third quarter results were impacted by restructuring,
integration and other charges of $27.3 million pre-tax, $25.8 million after tax and $0.18
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. The Company recorded a loss of $8.8 million in integration-related costs due to the exit of two multi-
employer
pension plans associated with acquired entities in Japan, a credit of $11.2 million in acquisition charges related to the reversal of an earn
-
out liability, and $6.6 million in other charges related to the write-