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TableofContents
AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
2015,theCompanyhad$8.7millionand$11.1million,respectively,ofcashequivalentsthatweremeasuredatfairvaluebased
uponLevel1criteria.SeeNote7fordiscussionofthefairvalueoftheCompany’slong-termdebtandNote10foradiscussionof
thefairvalueoftheCompany’spensionplanassets.
Derivativefinancialinstruments—SeeNote3fordiscussionoftheCompany’saccountingpoliciesrelatedtoderivative
financialinstruments.
Accounts receivable securitization — The Company has an accounts receivable securitization program whereby the
Companysellscertainreceivablesandretainsasubordinatedinterestandservicingrightstothosereceivables.Thesecuritization
programdoesnotqualifyforoffbalancesheetsalesaccountingandisaccountedforasasecuredfinancingasdiscussedfurtherin
Note7.
Recentlyissuedaccountingpronouncements—InMay2014,theFinancialAccountingStandardsBoard(“FASB”)issued
AccountingStandardsUpdateNo.2014-09,RevenuefromContractswithCustomers(“ASU2014-09”)asamended,tosupersede
nearly all existing revenue recognition guidance under GAAP. The core principles of ASU 2014-09 are to recognize revenue
whenpromisedgoodsorservicesaretransferredtocustomersinanamountthatreflectstheconsiderationthatisexpectedtobe
received for those goods or services. Application of the guidance in ASU 2014-09 may require more judgment and estimates
withintherevenuerecognitionprocesscompared toexistingGAAP.InJuly2015,theFASBapprovedaone-year delay inthe
effectivedateofASU2014-09,whichmakestheeffectivedatefortheCompanythefirstquarteroffiscal2019.TheCompany
mayadopttherequirementsofASU2014-09usingeitheroftwoacceptableadoptionmethods:(i)retrospectiveadoptiontoeach
prior reporting period presented with the option to elect certain practical expedients as defined within ASU 2014-09; or (ii)
adoptionwiththecumulativeeffectofinitiallyapplyingASU2014-09recognizedatthedateofinitialapplicationandproviding
certain additional disclosures as defined within ASU 2014-09. The Company is currently evaluating the impact of the future
adoptionofASU2014-09onitsconsolidatedfinancialstatements,includingthemethodofadoptiontobeused.
In September 2015, the FASB issued Accounting Standards Update 2015-16, Business Combinations (Topic 805) :
SimplifyingtheAccountingforMeasurement-PeriodAdjustments.Theupdaterequiresthatanacquirerrecognizeadjustmentsto
provisionalamountsthatareidentifiedduringthemeasurementperiodinthereportingperiodinwhichtheadjustmentamounts
aredetermined,includingthecumulativeeffectofthechangeinprovisionalamountasiftheaccountinghadbeencompletedat
theacquisitiondate.TheCompanyearlyadoptedthisupdateinthefirstquarteroffiscal2016,withnoimpacttoitsconsolidated
financialstatements.
InNovember2015,theFASBissuedAccountingStandardsUpdateNo.2015-17,IncomeTaxes(Topic740):BalanceSheet
ClassificationofDeferredTaxes(“ASU2015-17”),tosimplifythepresentationofdeferredincometaxesbyrequiringdeferred
tax liabilities and assets beclassified as noncurrent in a classified balance sheet.In connection with the earlyadoption of this
updateinthefourthquarteroffiscal2016,theCompanyreclassified$57.2millionofdeferredtaxassetsfromcurrentassetsto
long-termnoncurrentassetstoconformwiththecurrentyearpresentation.
InFebruary2016,theFASBissuedAccountingStandardsUpdateNo.2016-02,Leases(Topic842)(“ASU2016-02”).The
updaterequiresalesseetorecognizeassetsandliabilitiesontheconsolidatedbalancesheetsforleaseswithleasetermsgreater
than 12 months. ASU 2016-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after
December15,2018.Earlyadoptionispermitted.TheupdatewillbeeffectivefortheCompanyinthefirstquarteroffiscal2020,
usingamodifiedretrospectiveapproach.TheCompanyiscurrentlyevaluatingtheimpact
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