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TableofContents
AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Summary of significant accounting policie s
Principlesofconsolidation—TheaccompanyingconsolidatedfinancialstatementsincludetheaccountsofAvnet,Inc.and
allofitsmajority-ownedandcontrolledsubsidiaries(the“Company”or“Avnet”).Allintercompanyandintracompanyaccounts
andtransactionshavebeeneliminated.
Reclassifications — Certain prior period amounts have been reclassified to conform to the current-period presentation
includingtheimpactoftheadoptionofnewaccountingpronouncements.
Fiscal year — The Company operates on a “52/53 week” fiscal year, which ends on the Saturday closest to June 30th.
Fiscal2016contains53weekscomparedto52weeksinfiscal2015and2014.Unlessotherwisenoted,allreferencesto“fiscal”or
anyother“year”shallmeantheCompany’sfiscalyear.
Management estimates — The preparation of financial statements in conformity with generally accepted accounting
principlesintheUnitedStatesofAmerica(“GAAP”)requiresmanagementtomakeestimatesandassumptionsthataffectcertain
reported amounts of assets and liabilities, reported amounts of sales and expenses and the disclosure of contingent assets and
liabilitiesatthedateoftheconsolidatedfinancialstatements.Actualresultscoulddiffermateriallyfromthoseestimates.
Cash and cash equivalents — The Company considers all highly liquid investments with an original maturity of three
monthsorlesstobecashequivalents.
Inventories — Inventories, comprised principally of finished goods, are stated at cost (first-in, first-out) or market,
whichever is lower. The Company regularly reviews the cost of inventory against its estimated market value, considering
historical experience and any contractual rights of return, stock rotations, or price protections provided by the Company’s
suppliers, and records a lower of cost or market write-down if any inventories have a cost in excess of their estimated net
realizablevalue.TheCompanydoesnotincorporateanynon-contractualprotectionswhenestimatingthenetrealizablevalueof
itsinventories.
Investments—Investmentsinjointventuresandentities(“ventures”)inwhichtheCompanyhasanownershipinterestof
greaterthan50%andexercisescontrolovertheventuresareconsolidatedintheaccompanyingconsolidatedfinancialstatements.
Non-controllinginterestsintheyearspresentedarenotmaterialand,asaresult,areincludedinthecaption“accruedexpensesand
other” in the accompanying consolidated balance sheets. Investments in ventures in which the Company exercises significant
influence but not control are accounted for using the equity method of accounting. Investments in ventures in which the
Company’s ownership interest is less than 20% and over which the Company does not exercise significant influence are
accountedforusingthecostmethodofaccounting.TheCompanymonitorsventuresforeventsorchangesincircumstancesthat
indicate that the fair value of a venture is less than its carrying value, in which case the Company would further review the
venturetodetermineifitisother-than-temporarilyimpaired.Duringfiscal2016,2015and2014theCompanydidnothaveany
materialinvestmentsinanyventures.
Depreciation, amortization and useful lives — The Company reports property, plant and equipment at cost, less
accumulated depreciation. Cost includes the price paid to acquire or construct the assets, required installation costs, interest
capitalizedduringtheconstructionperiod,andanyexpenditurethatsubstantiallyaddstothevalueoforsubstantiallyextendsthe
usefullifeofanexistingasset.Additionally,theCompanycapitalizesqualifiedcostsrelatedto
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