Avnet 2014 Annual Report Download - page 14

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If the Company fails to maintain effective internal controls, it may not be able to report its financial results accurately or timely, or prevent
or detect fraud, which could have an adverse effect on the Company’s business or the market price of the Company's securities.
Effective internal controls over financial reporting are necessary for the Company to provide reasonable assurance with respect to its
financial reports and to effectively prevent or detect fraud. If the Company cannot provide reasonable assurance with respect to its financial
reports and effectively prevent or detect fraud, its brand and operating results could be harmed. Internal controls over financial reporting may not
prevent or detect misstatements because of its inherent limitations, including the possibility of human error, the circumvention or overriding of
controls, or fraud. Therefore, even effective internal controls cannot provide absolute assurance with respect to the preparation and fair
presentation of financial statements. In addition, projections of any evaluation of effectiveness of internal controls over financial reporting to
future periods are subject to the risk that the internal controls may become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate. If the Company fails to maintain the adequacy of its internal controls, including any
failure to implement required new or improved internal controls, or if the Company experiences difficulties in their implementation, the
Company's business and operating results could be harmed, the Company may be subject to sanctions or investigations by regulatory authorities,
and the Company could fail to meet its reporting obligations, which could have an adverse effect on its business or the market price of the
Company's securities.
Item 1B. Unresolved Staff Comments
Not applicable.
Item 2. Properties
The Company owns and leases approximately 1.7 million and 7.1 million square feet of space, respectively, of which approximately
37%
is located in the United States. The following table summarizes certain of the Company’s key facilities.
Item 3. Legal Proceedings
As a result primarily of certain former manufacturing operations, Avnet has incurred and may have future liability under various federal,
state and local environmental laws and regulations, including those governing pollution and exposure to, and the handling, storage and disposal
of, hazardous substances. For example, under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as
amended (“CERCLA”)
and similar state laws, Avnet is and may be liable for the costs of cleaning up environmental contamination on or from
certain of its current or former properties, and at off-
site locations where the Company disposed of wastes in the past. Such laws may impose
joint and several liability. Typically, however, the costs for cleanup at such sites are allocated among potentially responsible parties based upon
each party’s relative contribution to the contamination, and other factors.
Pursuant to SEC regulations, including but not limited to Item 103 of Regulation S-
K, the Company regularly assesses the status of and
developments in pending environmental legal proceedings to determine whether any such proceedings should be identified specifically in this
discussion of legal proceedings, and has concluded that no particular pending environmental legal
12
Location
Sq.
Footage
Leased
or
Owned
Primary Use
Groveport, Ohio
580,000
Leased
TS warehousing, integration and value-added operations
Chandler, Arizona
400,000
Owned
EM warehousing and value-added operations
Tongeren, Belgium
390,000
Owned
EM and TS warehousing and value-added operations
Poing, Germany
370,000
Leased
EM warehousing, value-added operations and offices
Poing, Germany
300,000
Owned
EM warehousing, value-added operations and offices
Chandler, Arizona
230,000
Leased
EM warehousing, integration and value-added operations
Nettetal, Germany
200,000
Owned
EM and TS warehousing and value-added operations
Hong Kong, China
180,000
Leased
EM warehousing and value-added operations
Duluth, Georgia
180,000
Leased
TS warehousing, integration and value-added operations
Phoenix, Arizona
180,000
Leased
Corporate and EM headquarters
Tempe, Arizona
130,000
Leased
TS headquarters