Avnet 2015 Annual Report Download - page 16

TableofContents
Changes in tax rules and regulations, changes in interpretation of tax rules and regulations, changes in business performance
or unfavorable assessments from tax audits could affect the Company’s effective tax rates, deferred taxes, financial condition
and results of operations.
As a multinational corporation, the Company is subject to the tax laws and regulations of the United States and many
foreign jurisdictions. From time to time, regulations may be enacted that could adversely affect the Company’s tax positions.
TherecanbenoassurancethattheCompany’scashflow,andinsomecasestheeffectivetaxrate,willnotbeadverselyaffected
bythesepotentialchangesinregulationsorbychangesintheinterpretationofexistingtaxlawandregulations.Thetaxlawsand
regulations of the various countries where the Company has operations are extremely complex and subject to varying
interpretations. Although the Company believes that its historical tax positions are sound and consistent with applicable laws,
regulations and existing precedent, there can be no assurance that these tax positions will not be challenged by relevant tax
authoritiesorthattheCompanywouldbesuccessfulindefendingagainstanysuchchallenge.
TheCompany’sfutureincometaxexpensecouldalsobeadverselyaffectedbychangesinthemixofearningsincountries
with differing statutory tax rates, changes in the valuation of deferred tax assets and liabilities and changes to its operating
structure.
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.
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Item 1B. Unresolved Staff Comments
Notapplicable.
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