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TableofContents
AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
oftheadoptionofASU2016-02onitsconsolidatedfinancialstatements.
InMarch2016,theFASBissuedASU2016-09,Compensation–StockCompensation,whichsimplifiestheaccountingfor
thetaxeffectsrelatedtostockbasedcompensation,includingadjustmentstohowexcesstaxbenefitsandhowtaxwithholdings
andpaymentsforthebenefitofemployeesreceivingstockbasedcompensationshouldbeclassified,amongstotheritems.ASU
2016-09iseffectiveforfinancialstatementsissuedforfiscalyearsbeginningafterDecember15,2016,andinterimperiodswithin
those fiscal years. The Companyearly adopted ASU 2016-09 during the fourthquarter of fiscal 2016.  Thisadoption of ASU
2016-09didnothaveamaterialimpactontheCompany'sconsolidatedfinancialstatementsorfinancialstatementdisclosures.
2. Acquisitions
Fiscal 2016 Acquisitions
During fiscal 2016, the Company acquired two businesses with aggregated annualized sales of approximately $120.0
millionforanaggregatepurchasepriceof$36.4million.TheCompanypaidcashof$19.7million,netofcashacquired,forsuch
acquisitionsinfiscal2016.TheCompanyhasnotdisclosedthepro-formaimpactofthefiscal2016acquisitions,assuchimpact
was not material to the Company’s consolidated financial position or results of operations. During fiscal 2016, there were no
materialmeasurementperiodadjustmentsforsuchacquisitions.
Historical Acquisitions
The Company had no acquisitions in fiscal 2015. During fiscal 2014 , the Company acquired three businesses with
historicalannualizedsalesofapproximately$492.0million(unaudited).Cashpaidforacquisitionsduringfiscal2014was$116.9
million,netofcashacquired.TheCompanyhasnotdisclosedthepro-formaimpactofthefiscal2014acquisitionsassuchimpact
wasnotmaterialtotheCompany’sconsolidatedfinancialpositionorresultsofoperations.Duringfiscal2014andfiscal2015,
therewerenomaterialmeasurementperiodadjustmentsforthefiscal2014acquisitions.
Theaggregateconsideration,excludingcashacquired,forthefiscal2014acquisitionswas$219.7million,whichconsisted
ofthefollowing(inthousands):
 
Cashpaid $ 181,645
Contingentconsideration 38,081
Totalconsideration $ 219,726
The contingent consideration arrangements stipulate that the Company pay up to a maximum of approximately $50.0
millionofadditionalconsiderationtotheformershareholdersoftheacquiredbusinessesbasedupontheachievementofcertain
futureoperatingresults.TheCompanyestimatedthefairvalueofthecontingentconsiderationof$38.1millionattheacquisition
dateusinganincomeapproach,whichisbasedonsignificantinputs,primarilyforecastedfutureoperatingresultsoftheacquired
businesses,notobservableinthemarketandthusrepresentsaLevel3measurementasdefinedinASC820.TheCompanyadjusts
the fair value of contingent consideration through operating expenses if there are changes to the inputs used in the income
approachandasaresultofthepassageoftime.
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