| Document and Entity Information | ||
| 9 Months Ended
Apr. 03, 2010 | Apr. 23, 2010
| |
| Document and Entity Information [Abstract] | ||
| Entity Registrant Name | AVNET INC | |
| Entity Central Index Key | 0000008858 | |
| Document Type | 10-Q | |
| Document Period End Date | 2010-04-03 | |
| Amendment Flag | false | |
| Document Fiscal Year Focus | 2,010 | |
| Document Fiscal Period Focus | Q3 | |
| Current Fiscal Year End Date | --06-27 | |
| Entity Well-known Seasoned Issuer | Yes | |
| Entity Voluntary Filers | No | |
| Entity Current Reporting Status | Yes | |
| Entity Filer Category | Large Accelerated Filer | |
| Entity Common Stock, Shares Outstanding | 151,825,232 |
| Consolidated Balance Sheets (Unaudited) (USD $) | |||||||||||||||||||
| In Thousands | 9 Months Ended
Apr. 03, 2010 | 12 Months Ended
Jun. 27, 2009 | |||||||||||||||||
| Current assets: | |||||||||||||||||||
| Cash and cash equivalents | $754,574 | $943,921 | |||||||||||||||||
| Receivables, less allowances of $84,747 and $85,477, respectively | 3,323,954 | 2,618,697 | |||||||||||||||||
| Inventories | 1,747,720 | 1,411,755 | |||||||||||||||||
| Prepaid and other current assets | 168,450 | 169,879 | |||||||||||||||||
| Total current assets | 5,994,698 | 5,144,252 | |||||||||||||||||
| Property, plant and equipment, net | 302,597 | 305,682 | |||||||||||||||||
| Goodwill (Notes 2 and 3) | 566,187 | 550,118 | |||||||||||||||||
| Other assets | 294,309 | 273,464 | |||||||||||||||||
| Total assets | 7,157,791 | 6,273,516 | |||||||||||||||||
| Current liabilities: | |||||||||||||||||||
| Borrowings due within one year (Note 4) | 55,088 | 23,294 | |||||||||||||||||
| Accounts payable | 2,534,605 | 1,957,993 | |||||||||||||||||
| Accrued expenses and other | 520,676 | 474,573 | |||||||||||||||||
| Total current liabilities | 3,110,369 | 2,455,860 | |||||||||||||||||
| Long-term debt (Note 4) | 937,518 | 946,573 | |||||||||||||||||
| Other long-term liabilities | 88,898 | 110,226 | |||||||||||||||||
| Total liabilities | 4,136,785 | 3,512,659 | |||||||||||||||||
| Commitments and contingencies (Note 6) | |||||||||||||||||||
| Shareholders' equity (Notes 8 and 9): | |||||||||||||||||||
| Common stock $1.00 par; authorized 300,000,000 shares; issued 151,831,000 shares and 151,099,000 shares, respectively | 151,831 | 151,099 | |||||||||||||||||
| Additional paid-in capital | 1,201,284 | 1,178,524 | [1] | ||||||||||||||||
| Retained earnings | 1,483,322 | 1,214,071 | [1] | ||||||||||||||||
| Accumulated other comprehensive income (Note 8) | 185,259 | 218,094 | |||||||||||||||||
| Treasury stock at cost, 37,701 shares and 32,306 shares, respectively | (690) | (931) | |||||||||||||||||
| Total shareholders' equity | 3,021,006 | 2,760,857 | |||||||||||||||||
| Total liabilities and shareholders' equity | $7,157,791 | $6,273,516 | |||||||||||||||||
| [1]As adjusted for the retrospective application of an accounting standard. See Note 1 to the consolidated financial statements. | |||||||||||||||||||
| Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | ||
| In Thousands, except Share data | Apr. 03, 2010
| Jun. 27, 2009
|
| Current assets: | ||
| Allowances for receivable | $84,747 | $85,477 |
| Shareholders' equity (Notes 8 and 9): | ||
| Common stock, par value | 1 | 1 |
| Common stock, shares authorized | 300,000,000 | 300,000,000 |
| Common stock, shares issued | 151,831,000 | 151,099,000 |
| Treasury stock, shares | 37,701 | 32,306 |
| Consolidated Statements of Operations (Unaudited) (USD $) | |||||||||||||||||||
| In Thousands, except Per Share data | 3 Months Ended
Apr. 03, 2010 | 3 Months Ended
Mar. 28, 2009 | 9 Months Ended
Apr. 03, 2010 | 9 Months Ended
Mar. 28, 2009 | |||||||||||||||
| Consolidated Statements of Operations [Abstract] | |||||||||||||||||||
| Sales | $4,756,786 | $3,700,836 | $13,946,346 | $12,464,464 | |||||||||||||||
| Cost of sales | 4,173,999 | 3,238,366 | 12,311,931 | 10,884,315 | |||||||||||||||
| Gross profit | 582,787 | 462,470 | 1,634,415 | 1,580,149 | |||||||||||||||
| Selling, general and administrative expenses | 408,220 | 374,221 | 1,190,489 | 1,173,949 | |||||||||||||||
| Impairment charges (Note 3) | 1,348,845 | ||||||||||||||||||
| Restructuring, integration and other charges (Note 12) | 7,347 | 32,679 | 25,419 | 55,819 | |||||||||||||||
| Operating income (loss) | 167,220 | 55,570 | 418,507 | (998,464) | |||||||||||||||
| Other income (expense), net | 1,499 | (8,364) | 3,581 | (8,196) | |||||||||||||||
| Interest expense | (15,327) | (21,360) | (45,925) | (64,088) | |||||||||||||||
| Gain on sale of assets (Note 2) | 3,202 | 0 | 8,751 | 0 | |||||||||||||||
| Income (loss) before income taxes | 156,594 | 25,846 | 384,914 | (1,070,748) | |||||||||||||||
| Income tax provision | 42,089 | 10,050 | 115,663 | 28,086 | |||||||||||||||
| Net income (loss) | $114,505 | $15,796 | $269,251 | ($1,098,834) | |||||||||||||||
| Net earnings (loss) per share (Note 9): | |||||||||||||||||||
| Basic | 0.75 | 0.1 | [1] | 1.78 | -7.29 | [1] | |||||||||||||
| Diluted | 0.75 | 0.1 | [1] | 1.76 | -7.29 | [1] | |||||||||||||
| Shares used to compute earnings (loss) per share (Note 9): | |||||||||||||||||||
| Basic | 151,890 | 151,147 | 151,519 | 150,810 | |||||||||||||||
| Diluted | 153,215 | 151,147 | 152,932 | 150,810 | |||||||||||||||
| [1]As adjusted for the retrospective application of an accounting standard. See Note 1 to the consolidated financial statements. | |||||||||||||||||||
| Consolidated Statements of Cash Flows (Unaudited) (USD $) | ||
| In Thousands | 9 Months Ended
Apr. 03, 2010 | 9 Months Ended
Mar. 28, 2009 |
| Cash flows from operating activities: | ||
| Net income (loss) | $269,251 | ($1,098,834) |
| Non-cash and other reconciling items: | ||
| Depreciation and amortization | 46,084 | 50,501 |
| Deferred income taxes | 35,234 | (90,728) |
| Stock-based compensation | 24,007 | 14,416 |
| Impairment charges (Note 3) | 1,348,845 | |
| Gain on sale of assets (Note 2) | (8,751) | 0 |
| Other, net | 11,793 | 29,116 |
| Changes in (net of effects from businesses acquired): | ||
| Receivables | (732,466) | 621,999 |
| Inventories | (356,434) | 247,545 |
| Accounts payable | 583,878 | (483,231) |
| Accrued expenses and other, net | (27,305) | 148,506 |
| Net cash flows (used for) provided by operating activities | (154,709) | 788,135 |
| Cash flows from financing activities: | ||
| Repayment of notes (Note 4) | 0 | (298,059) |
| Proceeds from (repayment of) bank debt, net (Note 4) | 14,909 | (25,185) |
| Repayment of other debt, net (Note 4) | (1,440) | (6,049) |
| Other, net | 3,998 | 1,282 |
| Net cash flows provided by (used for) financing activities | 17,467 | (328,011) |
| Cash flows from investing activities: | ||
| Purchases of property, plant and equipment | (42,905) | (89,252) |
| Cash proceeds from sales of property, plant and equipment | 6,334 | 9,840 |
| Acquisitions of operations and investments, net of cash acquired (Note 2) | (36,361) | (309,864) |
| Cash proceeds from divestiture activities (Note 2) | 11,785 | 0 |
| Net cash flows used for investing activities | (61,147) | (389,276) |
| Effect of exchange rate changes on cash and cash equivalents | 9,042 | (25,561) |
| Cash and cash equivalents: | ||
| - (decrease) increase | (189,347) | 45,287 |
| - at beginning of period | 943,921 | 640,449 |
| - at end of period | $754,574 | $685,736 |
| Basis of presentation | |
| 9 Months Ended
Apr. 03, 2010 | |
| Basis of presentation [Abstract] | |
| Basis of presentation | 1. Basis of presentation In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all adjustments necessary to present fairly the Companys financial position, results of operations and cash flows. All such adjustments are of a normal recurring nature, except for (i)the adoption of an accounting standard which changes the accounting for convertible debt that may be settled in cash as discussed below, (ii)the gain on sale of assets discussed in Note 2, (iii)the goodwill and intangible asset impairment charges discussed in Note 3, and (iv) the restructuring, integration and other charges discussed in Note 12. The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Actual results may differ from these estimates. The Company operates on a 52/53week fiscal year, and as a result, the first nine months of fiscal 2010 contained 40weeks (with the extra week falling in the Companys first fiscal quarter) while the first nine months of fiscal 2009 contained 39weeks. Interim results of operations are not necessarily indicative of the results to be expected for the full fiscal year. The information included in this Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in the Companys Annual Report on Form 10-K for the fiscal year ended June27, 2009. Management has evaluated events and transactions that occurred after the balance sheet date and through the date these consolidated financial statements were issued and considered the effect of such events in the preparation of these consolidated financial statements. Adoption of accounting standard The Financial Accounting Standards Board issued authoritative guidance which requires the issuer of certain convertible debt instruments that may be settled in cash (or other assets) on conversion to separately account for the debt and equity (conversion option) components of the instrument. The standard requires the convertible debt to be recognized at the present value of its cash flows discounted using the non-convertible debt borrowing rate at the date of issuance. The resulting debt discount from this present value calculation is to be recognized as the value of the equity component and recorded to additional paid in capital. The discounted convertible debt is then required to be accreted up to its face value and recorded as non-cash interest expense over the expected life of the convertible debt. In addition, deferred financing costs associated with the convertible debt are required to be allocated between the debt and equity components based upon relative values. During the first quarter of fiscal 2010, the Company adopted this standard, however, there was no impact to the fiscal 2010 consolidated financial statements because the Companys $300.0million 2% Convertible Senior Debentures (the Debentures), to which this standard applies, were extinguished in fiscal 2009. Due to the required retrospective applicat |
| Acquisitions | |
| 9 Months Ended
Apr. 03, 2010 | |
| Acquisitions [Abstract] | |
| Acquisitions | 2. Acquisitions and divestitures On March29, 2010, the Company entered into a definitive agreement to acquire Bell Microproducts Inc. (Bell) in an all cash transaction for $7.00 per Bell share. This per share price equates to an equity value of approximately $252million and a transaction value of approximately $594million assuming a net debt position for Bell of $342million at face value as of December31, 2009. The Company expects to utilize a combination of cash on hand and available borrowing capacity to fund the acquisition. The acquisition has been approved by the Boards of Directors of both companies and is subject to the approval of Bells shareholders as well as customary regulatory approvals. The transaction is expected to close in 60 to 90days. Several putative class actions have since been filed by alleged Bell shareholders in various state courts in California, any of which may impact the outcome of the transaction. In addition, subsequent to the third quarter of fiscal 2010, the Company acquired two businesses with aggregate annualized revenues of approximately $72million, which will be reported as part of the TS Asia and TS EMEA regions. During the first nine months of fiscal 2010, the Company completed two acquisitions with combined annualized revenues of approximately $60million. Both acquisitions are reported as part of the TS Asia region. During the first nine months of fiscal 2009, the Company acquired five businesses with aggregate annualized revenues of approximately $1.0billion. Acquisition-related exit activity accounted for in purchase accounting During fiscal 2007 and 2006, the Company recorded certain exit-related liabilities through purchase accounting which consisted of severance for workforce reductions, non-cancelable lease commitments and lease termination charges for leased facilities, and other contract termination costs associated with the exit activities. The remaining reserves relate primarily to facility exit costs and other contractual lease obligations which management expects to be substantially utilized by fiscal 2012. The utilization of the remaining reserves during the first nine months of fiscal 2010 is presented in the following table: Total (Thousands) Balance at June27, 2009 $ 8,317 Amounts utilized (2,319 ) Adjustments (190 ) Other, principally foreign currency translation 7 Balance at April3, 2010 $ 5,815 Divestitures During the third quarter and first nine months of fiscal 2010, the Company recognized a gain on the sale of assets as a result of certain earn-out provisions associated with the prior sale of the Companys equity investment in Calence LLC. The gain on sale of assets was $8,751,000 pre-tax, $5,370,000 after tax and $0.03 per share on a diluted basis, of which $5,549,000 pre-tax was recognized in the second quarter and $3,202,000 pre-tax was recognized in the third quarter of fiscal 2010. In addition, the Company sold a cost method investment and received proceeds of approximately $3,034,000 in the second quarter of fiscal 2010. As a result, the Company received a total of $11,785,00 |
| Goodwill and intangible assets | |
| 9 Months Ended
Apr. 03, 2010 | |
| Goodwill and intangible assets [Abstract] | |
| Goodwill and intangible assets | 3. Goodwill and intangible assets The following table presents the carrying amount of goodwill, by reportable segment, for the nine months ended April3, 2010: Electronics Technology Marketing Solutions Total (Thousands) Carrying value at June27, 2009 $ 240,388 $ 309,730 $ 550,118 Additions 11,318 10,861 22,179 Adjustments (142 ) (142 ) Foreign currency translation (5,823 ) (145 ) (5,968 ) Carrying value at April3, 2010 $ 245,741 $ 320,446 $ 566,187 Goodwill additions in EM related to purchase accounting entries during the purchase price allocation period for acquisitions that closed prior to fiscal 2010. Goodwill additions in TS related to two acquisitions in Asia (see Note 2). As of April3, 2010, Other assets included customer relationship intangible assets with a carrying value of $49,569,000; consisting of $78,963,000 in original cost value and $29,394,000 of accumulated amortization and foreign currency translation. These assets are being amortized over a weighted average life of nine years. Intangible asset amortization expense was $2,154,000 and $2,119,000 for the third quarter of fiscal 2010 and 2009, respectively, and $6,488,000 and $10,127,000 for the first nine months of fiscal 2010 and fiscal 2009, respectively. The Company recognized $3,830,000 for a cumulative catch up adjustment to amortization expense during the first nine months of fiscal 2009. Amortization expense for the next five years is expected to be approximately $9,000,000 each year. In the second quarter of fiscal 2009, due to a steady decline in the Companys market capitalization primarily related to the global economic downturn, the Company determined an interim impairment test was necessary. Based on the test results, the Company recognized a non-cash goodwill impairment charge of $1,317,452,000 pre-tax, $1,283,308,000 after tax and $8.51 per share to write off all goodwill related to its EM Americas, EM Asia, TS EMEA and TS Asia reporting units. The Company also evaluated the recoverability of its long-lived assets at each of the four reporting units where goodwill was deemed to be impaired. Based upon this evaluation, the Company recognized a non-cash intangible asset impairment charge of $31,393,000 pre- and after tax and $0.21 per share. The non-cash charges had no impact on the Companys compliance with debt covenants, its cash flows or available liquidity, but did have a material impact on its consolidated financial statements. |
| External financing | |
| 9 Months Ended
Apr. 03, 2010 | |
| External financing [Abstract] | |
| External financing | 4. External financing Short-term debt consists of the following: April 3, June 27, 2010 2009 (Thousands) Bank credit facilities $ 53,180 $ 20,882 Other debt due within one year 1,908 2,412 Short-term debt $ 55,088 $ 23,294 Bank credit facilities consist of various committed and uncommitted lines of credit with financial institutions utilized primarily to support the working capital requirements of foreign operations. The weighted average interest rate on the outstanding bank credit facilities was 2.9% at April3, 2010 and 1.8% at June27, 2009. The Company maintains an accounts receivable securitization program (the Program) with a group of financial institutions that allows the Company to sell, on a revolving basis, an undivided interest of up to $450,000,000 in eligible receivables while retaining a subordinated interest in a portion of the receivables. The Program does not qualify for sale treatment and, as a result, any borrowings under the Program are recorded as debt on the consolidated balance sheet. The Program contains certain covenants, all of which the Company was in compliance with as of April3, 2010. The Program has a one year term that expires in August2010. There were no amounts outstanding under the Program at April3, 2010 or June27, 2009. Long-term debt consists of the following: April 3, June 27, 2010 2009 (Thousands) 5.875% Notes due March15, 2014 $ 300,000 $ 300,000 6.00% Notes due September1, 2015 250,000 250,000 6.625% Notes due September15, 2016 300,000 300,000 Other long-term debt 89,569 98,907 Subtotal 939,569 948,907 Discount on notes (2,051 ) (2,334 ) Long-term debt $ 937,518 $ 946,573 The Company has a five-year $500,000,000 unsecured revolving credit facility (the Credit Agreement) with a syndicate of banks which expires in September2012. Under the Credit Agreement, the Company may elect from various interest rate options, currencies and maturities. The Credit Agreement contains certain covenants, all of which the Company was in compliance with as of April 3, 2010. At April3, 2010, there were $85,251,000 in borrowings outstanding under the Credit Agreement included in Other long-term debt in the preceding table. In addition, there were $2,009,000 in letters of credit issued under the Credit Agreement which represent a utilization of the Credit Agreement capacity but are not recorded as borrowings in the consolidated balance sheet as the letters of credit are not debt. At June27, 2009, there were $86,565,000 in borrowings outstanding under the Credit Agreement and $1,511,000 in letters of credit issued under the Credit Agreement. At April3, 2010, the carrying value and fair value of the Companys debt was $992,606,000 and $1,045,685,000, respectively. Fair value was estimated primarily based upon quoted market prices. In the prior year third quarter, substantially all of the 2% Convertible Senior Debentures due March15, 2034 (th |
| Derivative financial instruments | |
| 9 Months Ended
Apr. 03, 2010 | |
| Derivative financial instruments [Abstract] | |
| Derivative financial instruments | 5. Derivative financial instruments Many of the Companys subsidiaries, on occasion, purchase and sell products in currencies other than their functional currencies. This subjects the Company to the risks associated with fluctuations in foreign currency exchange rates. The Company reduces this risk by utilizing natural hedging (i.e. offsetting receivables and payables) as well as by creating offsetting positions through the use of derivative financial instruments, primarily forward foreign exchange contracts with maturities of less than sixty days. The Company continues to have exposure to foreign currency risks to the extent they are not hedged. The Company adjusts all foreign denominated balances and any outstanding foreign exchange contracts to fair market value through the consolidated statements of operations. Therefore, the market risk related to the foreign exchange contracts is offset by the changes in valuation of the underlying items being hedged. The asset or liability representing the fair value of foreign exchange contracts, based upon level 2 criteria under the fair value measurements standard, is classified in the captions other current assets or accrued expenses and other, as applicable, in the accompanying consolidated balance sheets and were not material. In addition, the Company did not have material gains or losses related to the forward contracts which are recorded in other income (expense), net in the accompanying consolidated statements of operations. The Company generally does not hedge its investment 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. |
| Commitments and contingencies | |
| 9 Months Ended
Apr. 03, 2010 | |
| Commitments and contingencies [Abstract] | |
| Commitments and contingencies | 6. Commitments and contingencies From time to time, the Company may become a party to, or otherwise involved in other pending and threatened litigation, tax, environmental and other matters arising in the ordinary course of conducting its business. Management does not anticipate that any contingent matters will have a material adverse effect on the Companys financial condition, liquidity or results of operations. |
| Pension plan | |
| 9 Months Ended
Apr. 03, 2010 | |
| Pension plan [Abstract] | |
| Pension plan | 7. Pension plan The Companys noncontributory defined benefit pension plan (the Plan) covers substantially all domestic employees. Components of net periodic pension costs during the third quarters and nine months ended April3, 2010 and March28, 2009 were as follows: Third Quarters Ended Nine Months Ended April 3, March 28, April 3, March 28, 2010 2009 2010 2009 (Thousands) Service cost $ $ 4,051 $ $ 12,153 Interest cost 3,937 4,544 11,811 13,632 Expected return on plan assets (7,534 ) (6,363 ) (22,602 ) (19,089 ) Recognized net actuarial loss 1,422 581 4,266 1,743 Amortization of prior service credit (1,221 ) (3,663 ) Net periodic pension costs $ (3,396 ) $ 2,813 $ (10,188 ) $ 8,439 During the first nine months of fiscal 2010, the Company made contributions to the Plan of $7,750,000. Due to the economic downturn and its impact on the business, the Company suspended additional benefits under the Plan; as a result, there is currently no service cost being incurred during the current fiscal year. However, the Company anticipates resuming benefits under the Plan beginning in fiscal 2011. In October2009, the Company agreed to settle a pension litigation matter, which was approved by the court in April2010, which will require a plan amendment to provide retroactive benefits to certain pension plan participants and which will result in additional pension expense to the Company of approximately $3million per year for each of the next 11years. |
| Comprehensive income (loss) | |
| 9 Months Ended
Apr. 03, 2010 | |
| Comprehensive income (loss) [Abstract] | |
| Comprehensive income (loss) | 8. Comprehensive income (loss) Third Quarters Ended Nine Months Ended April 3, March 28, April 3, March 28, 2010 2009(1) 2009 2009(1) (Thousands) Net income (loss) $ 114,505 $ 15,796 $ 269,251 $ (1,098,834 ) Foreign currency translation adjustments (76,127 ) (64,615 ) (32,835 ) (304,599 ) Total comprehensive income (loss) $ 38,378 $ (48,819 ) $ 236,416 $ (1,403,433 ) (1) As adjusted for the retrospective application of an accounting standard. See Note 1. |
| Earnings (loss) per share | |
| 9 Months Ended
Apr. 03, 2010 | |
| Earnings (loss) per share [Abstract] | |
| Earnings (loss) per share | 9. Earnings (loss)per share Third Quarters Ended Nine Months Ended April 3, March 28, April 3, March 28, 2010 2009(1) 2010 2009(1) (Thousands, except per share data) Numerator: Net income (loss) $ 114,505 $ 15,796 $ 269,251 $ (1,098,834 ) Denominator: Weighted average common shares for basic earnings (loss)per share 151,890 151,147 151,519 150,810 Net effect of dilutive stock options and performance share awards 1,325 1,413 Weighted average common shares for diluted earnings (loss)per share 153,215 151,147 152,932 150,810 Basic earnings (loss)per share $ 0.75 $ 0.10 $ 1.78 $ (7.29 ) Diluted earnings (loss)per share $ 0.75 $ 0.10 $ 1.76 $ (7.29 ) (1) As adjusted for the retrospective application of an accounting standard. See Note 1. Options to purchase 919,000 and 921,000 shares of the Companys stock were excluded from the calculations of diluted earnings per share for the third quarter and first nine months of fiscal 2010, respectively, and options to purchase 2,184,000 shares were also excluded from the calculation of diluted earnings per share for the third quarter of fiscal 2009 because the exercise price for the options was above the average market price of the Companys stock. Therefore, inclusion of these options in the diluted earnings per share calculation would have had an anti-dilutive effect. Options to purchase shares of the Companys stock as well as contingently issuable shares associated with the performance share program were excluded from the calculations of diluted earnings per share for the first nine months of fiscal 2009, because the Company recognized a net loss and inclusion of these shares in the diluted earnings per share calculation would have had an anti-dilutive effect. |
| Additional cash flow information | |
| 9 Months Ended
Apr. 03, 2010 | |
| Additional cash flow information [Abstract] | |
| Additional cash flow information | 10. Additional cash flow information Interest and income taxes paid in the nine months ended April3, 2010 and March28, 2009, respectively, were as follows: Nine Months Ended April 3, March 28, 2010 2009 (Thousands) Interest $ 58,229 $ 65,476 Income taxes 67,017 57,020 |
| Segment information | |
| 9 Months Ended
Apr. 03, 2010 | |
| Segment information [Abstract] | |
| Segment information | 11. Segment information Third Quarters Ended Nine Months Ended April 3, March 28, April 3, March 28, 2010 2009(1) 2010 2009(1) (Thousands) Sales: Electronics Marketing $ 2,886,547 $ 2,096,595 $ 7,841,828 $ 7,065,391 Technology Solutions 1,870,239 1,604,241 6,104,518 5,399,073 $ 4,756,786 $ 3,700,836 $ 13,946,346 $ 12,464,464 Operating income (loss): Electronics Marketing $ 144,187 $ 59,558 $ 317,792 $ 297,357 Technology Solutions 49,937 42,199 189,484 160,186 Corporate (19,557 ) (13,508 ) (63,350 ) (51,343 ) 174,567 88,249 443,926 406,200 Impairment charges (Note 3) (1,348,845 ) Restructuring, integration and other charges (Note 12) (7,347 ) (32,679 ) (25,419 ) (51,989 ) Incremental intangible asset amortization (3,830 ) $ 167,220 $ 55,570 $ 418,507 $ (998,464 ) Sales, by geographic area: Americas (2) $ 1,982,313 $ 1,712,325 $ 6,090,921 $ 5,846,774 EMEA (3) 1,550,700 1,250,426 4,374,201 4,110,729 Asia/Pacific (4) 1,223,773 738,085 3,481,224 2,506,961 $ 4,756,786 $ 3,700,836 $ 13,946,346 $ 12,464,464 (1) As adjusted for the retrospective application of an accounting standard. See Note 1. (2) Includes sales in the United States of $1.78billion and $1.53billion for the third quarter of fiscal 2010 and 2009, respectively, and sales of $5.51billion and $5.28 billion for the first nine months of fiscal 2010 and 2009, respectively. (3) Includes sales in Germany and the United Kingdom of $574.5million and $260.7 million, respectively, for the third quarter of fiscal 2010, and $1.56billion and $835.4 million, respectively, for the first nine months of fiscal 2010. Includes sales in Germany and the United Kingdom of $400.8million and $273.7million, respectively, for the third quarter of fiscal 2009 and $1.43billion and $751.4million, respectively, for the first nine months of fiscal 2009. (4) Includes sales in Taiwan, Singapore and Hong Kong of $330.1million, $278.4 million and $408.9million, respectively, for the third quarter of fiscal 2010, and $972.2million, $806.5million and $1.12billion, respectively, for the first nine months of fiscal 2010. Includes sales in Taiwan, Singapore and Hong Kong of $177.1million, $188.6million and $271.0million, respectively, for the third quarter of fiscal 2009, and $745.0million, $653.9million and $872.4million, respectively, for the first nine months of fiscal 2009. April 3, June 27, 2010 2009 (Thousands) Assets: Electronics Marketing $ 4,322,787 $ 3,783 |
| Restructuring, integration and other charges | |
| 9 Months Ended
Apr. 03, 2010 | |
| Restructuring, integration and other charges [Abstract] | |
| Restructuring, integration and other charges | 12. Restructuring, integration and other items Fiscal 2010 During the third quarter of fiscal 2010, the Company recognized charges of $7,347,000 pre-tax, $5,587,000 after tax and $0.04 per share on a diluted basis related to a value-added tax exposure and acquisition-related costs partially offset by a credit related to prior restructuring reserves. During the first nine months of fiscal 2010, the Company recognized restructuring, integration and other charges of $25,419,000 pre-tax, $18,789,000 after tax and $0.12 per share on a diluted basis related to (i)the previously mentioned items recognized during the third quarter and (ii)the remaining cost reduction actions announced in fiscal 2009 which were taken in response to market conditions as well as integration costs associated with acquired businesses. Quarter Nine Months Ended Ended April 3, 2010 April 3, 2010 (Thousands) Restructuring charges $ $ 15,991 Integration costs 2,931 Value-added tax exposure 6,477 6,477 Other 2,157 3,261 Reversal of excess restructuring reserves recorded in prior periods (1,287 ) (3,241 ) Total restructuring, integration and other charges $ 7,347 $ 25,419 The activity related to the restructuring charges incurred during the first nine months of fiscal 2010 is presented in the following table: Severance Facility Reserves Exit Costs Other Total (Thousands) Fiscal 2010 pre-tax charges $ 9,683 $ 3,711 $ 2,597 $ 15,991 Amounts utilized (8,115 ) (2,072 ) (263 ) (10,450 ) Adjustments (138 ) (135 ) (273 ) Other, principally foreign currency translation (75 ) (12 ) (81 ) (168 ) Balance at April3, 2010 $ 1,355 $ 1,627 $ 2,118 $ 5,100 Severance charges recorded in the first quarter of fiscal 2010 were related to personnel reductions of over 150 employees in administrative, finance and sales functions in connection with the cost reduction actions in all three regions. Facility exit costs consisted of lease liabilities and fixed asset write-downs associated with seven vacated facilities in the Americas, one in EMEA and four in the Asia/Pac region. Other charges consisted primarily of contractual obligations with no on-going benefit to the Company. Cash payments of $9,293,000 are reflected in the amounts utilized during the first nine months of fiscal 2010 and the remaining amounts utilized were related to non-cash asset write downs. As of April3, 2010, management expects the majority of the remaining severance and other reserves to be utilized by the end of fiscal 2012 and the remaining facility exit cost reserves to be utilized by the end of fiscal 2013. During the first nine months of fiscal 2010, the Company incurred integration costs for professional fees, facility moving costs and travel, meeting, marketing and communication costs that were incrementally incurred as a |
