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Table of Contents AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
down of the net assets and goodwill associated with the planned exit of a non-
integrated business in the EM Americas region. The
Company also recorded an income tax adjustment of $13.4 million
primarily related to the increase to a valuation allowance against
existing deferred tax assets and increases to tax reserves. Fourth quarter results were impacted by restructuring, integration and other
charges of $59.8 million pre-tax, $43.6 million after tax and $0.31
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. The Company recorded
a small adjustment to the gain on bargain purchase related to the business in Japan acquired in the third quarter. The Company also
recorded a net tax benefit of $34.2 million , which is comprised of (i) a tax benefit of $41.6 million
for the release of valuation allowances
against deferred tax assets that were determined to be realizable during the fourth quarter of fiscal 2013, (ii) a tax benefit of
$6.7 million
related to the release of existing reserves due to audit settlement and statute expiration, partially offset by (iii) a tax provision of
$14.1
million
primarily related to the establishment of tax reserves against deferred tax assets that were determined to be unrealizable during the
fourth quarter of fiscal 2013.
72
(c) Second quarter of fiscal 2012 included 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. 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. The Company also recognized a gain on 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.