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Table of Contents AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the respective acquisition dates
(in thousands):
Goodwill of $62.0 million was assigned to the EM reportable segment and goodwill of $95.5 million
was assigned to the TS reportable
segment. The goodwill recognized is attributable primarily to expected synergies and the assembled workforce of the acquired businesses. The
amount of goodwill that is expected to be deductible for income tax purposes is not significant. The Company periodically adjusts the value of
goodwill to reflect changes that occur as a result of adjustments to the preliminary purchase price allocation during the measurement periods
following the dates of acquisition.
Included in "Other assets" in the above table is $35.2 million
of identifiable intangible assets (see Note 6) substantially all related to
customer relationships.
Supplemental information on an unaudited pro forma basis, as if the fiscal 2013 acquisitions had been consummated as of July 3, 2011, is
presented as follows:
With respect to the businesses acquired during fiscal 2013
, the Company is unable to determine the amount of sales and earnings of each
business subsequent to their respective acquisition dates as each business has been integrated into the Company.
Internix, Inc., a company publicly traded on the Tokyo Stock Exchange, was acquired in the first quarter of fiscal 2013 through a tender
offer. After assessing the fair value of the identifiable assets acquired and liabilities assumed, the consideration paid was below fair value even
though the price paid per share represented a premium to the trading levels at that time. During fiscal 2013, the Company recognized a gain on
bargain purchase related to Internix of $32.7 million before and after tax and $0.23 per share on a diluted basis.
In addition to the acquisitions described above, during fiscal 2013, the Company acquired the remaining non-
controlling interest in a
consolidated subsidiary for a purchase price that was less than its carrying value. The Company has reflected the difference between the
purchase price and the carrying value of the non-controlling interest as additional paid-
in capital in the accompanying consolidated statement of
shareholders' equity for fiscal 2013.
51
Cash
$
29,276
Receivables
226,743
Inventories
91,791
Other current assets
33,689
Property, plant and equipment
25,311
Other assets
47,292
Total identifiable assets acquired
454,102
Accounts payable, accrued liabilities and other current liabilities
(157,986
)
Long-term debt
(66,367
)
Other long-term liabilities
(45,640
)
Total identifiable liabilities assumed
(269,993
)
Net identifiable assets acquired
184,109
Goodwill
157,521
Bargain purchase recognized
(32,679
)
Net assets acquired
$
308,951
Pro Forma Results For Years
Ended
June 29, 2013
June 30, 2012
(Millions)
Sales
$
25,771
$
26,872
Net income
$
454
$
587