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TableofContents
AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
wellasbycreating offsettingpositionsthroughtheuseofderivativefinancialinstruments,primarilyforward foreignexchange
contractstypicallywithmaturitiesoflessthan60days(“economichedges”).TheCompanycontinuestohaveexposuretoforeign
currency risks to the extent they are not hedged. The Company adjusts any economic hedges to fair value through the
consolidatedstatementsofoperationsprimarilywithin“otherexpense,net.”Therefore,thechangesinvaluationoftheunderlying
itemsbeingeconomicallyhedgedareoffsetbythechangesinfairvalueoftheforwardforeignexchangecontracts.Thefairvalue
offorwardforeigncurrencyexchangecontracts,whicharebaseduponLevel2criteriaundertheASC820fairvaluehierarchy,
are classified in the captions “other current assets” or “accrued expenses and other,” as applicable, in the accompanying
consolidatedbalancesheetsasofJuly2,2016,andJune27,2015.TheCompany’smasternettingandothersimilararrangements
withvariousfinancialinstitutionsrelatedtoderivativefinancialinstrumentsallowfortherightofoffset.TheCompany’spolicyis
topresent derivative financial instrumentswiththe same counterparty aseither anet assetor liabilitywhentheright of offset
exists.
The Company generally does not hedge its investments in its foreign operations. The Company does not enter into
derivativefinancialinstrumentsfortradingorspeculativepurposesandmonitorsthefinancialstabilityandcreditstandingofits
counterparties.
TheCompany’sforeigncurrencyexposurerelatesprimarilytointernationaltransactionswherethecurrencycollectedfrom
customerscanbedifferentfromthecurrencyusedtopurchasefromsuppliers.TheCompany’sforeignoperationstransactionsare
denominated primarily in the following currencies: U.S. Dollar, Euro, BritishPound, Canadian Dollar, Japanese Yen, Chinese
Yuan, Taiwan Dollar, Australian Dollar and Mexican Peso. The Company also, to a lesser extent, has foreign operations
transactionsinotherEuropean,LatinAmericanandAsianforeigncurrencies.
ThefairvaluesofderivativefinancialinstrumentsintheCompany’sconsolidatedbalancesheetsareasfollows:
July 2,  June 27,
2016 2015
(Thousands)
Forwardforeigncurrencyexchangecontractsnotreceivinghedgeaccountingtreatment
recordedin:   
Othercurrentassets $ 9,681.1  $ 3,517.5
Accruedexpenses 6,655.5  7,192.5
Theamountrecordedtootherexpense,netrelatedtoderivativefinancialinstrumentsareasfollows:
Fiscal Year Ended
July 2,  June 27,
2016 2015
(Thousands)
Netderivativefinancialinstrumentgain(loss) $ (2,338.9) $ (4,478.1)
TheCompany’soutstandingeconomichedgeshadaveragematuritiesof53daysand55daysasofJuly2,2016,andJune
27,2015,respectively.UndertheCompany’seconomichedgingpolicies,gainsandlossesonthederivativefinancialinstruments
aresubstantiallyoffsetbythegainsandlossesontheunderlyingassetsorliabilitiesbeinghedged.
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