-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, WczXZ6XQOZfALjXuWv9XPij2qOAhaytPtN3b/2salquaQa9Gg9IZB4dF1DwCsu9V +lv2GnVjLzDAK39c7Nv0vA== 0000899243-98-001250.txt : 19980630 0000899243-98-001250.hdr.sgml : 19980630 ACCESSION NUMBER: 0000899243-98-001250 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980629 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: KENT ELECTRONICS CORP CENTRAL INDEX KEY: 0000793024 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-ELECTRONIC PARTS & EQUIPMENT, NEC [5065] IRS NUMBER: 741763541 STATE OF INCORPORATION: TX FISCAL YEAR END: 0328 FILING VALUES: FORM TYPE: 11-K SEC ACT: SEC FILE NUMBER: 001-09520 FILM NUMBER: 98657052 BUSINESS ADDRESS: STREET 1: 7433 HARWIN DR CITY: HOUSTON STATE: TX ZIP: 77036-2015 BUSINESS PHONE: 7137807770 MAIL ADDRESS: STREET 1: 7433 HARWIN DRIVE CITY: HOUSTON STATE: TX ZIP: 77036-2015 11-K 1 FORM 11-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 11-K /X/ ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the period ended December 31, 1997 or / / TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to -------- ------- Commission file number: 0-14643 A. Full title of the plan and the address of the plan, if different from that of the issuer named below: KENT ELECTRONICS CORPORATION TAX-DEFERRED SAVINGS AND RETIREMENT PLAN AND TRUST B. Name of issuer of securities held pursuant to the plan and the address of its principal executive office: KENT ELECTRONICS CORPORATION 1111 Gillingham Lane Sugar Land, Texas 77478 TABLE OF CONTENTS -----------------
Page ---- REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS... 3 FINANCIAL STATEMENTS STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS................................... 5 STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS..................... 6 NOTES TO FINANCIAL STATEMENTS..................... 7 SUPPLEMENTAL SCHEDULES ASSETS HELD FOR INVESTMENT........................ 17 TRANSACTIONS IN EXCESS OF FIVE PERCENT OF FAIR VALUE OF PLAN ASSETS............................ 18
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS -------------------------------------------------- To the Plan Committee of the Kent Electronics Corporation Tax-Deferred Savings and Retirement Plan and Trust We have audited the accompanying statements of net assets available for plan benefits of the Kent Electronics Corporation Tax-Deferred Savings and Retirement Plan and Trust (the Plan) as of December 31, 1997 and 1996, and the related statements of changes in net assets available for plan benefits for the years then ended. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Plan's management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for plan benefits of the Plan as of December 31, 1997 and 1996, and the changes in net assets available for plan benefits for the years then ended, in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying supplemental schedules are presented to comply with the Department of Labor Rules and Regulations for Reporting and Disclosure Under the Employee Retirement Income Security Act of 1974 and are not a required part of the basic financial statements. The supplemental schedules have been subjected to the auditing procedures applied in our audits of the basic financial statements and, in our opinion, are fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. Houston, Texas June 19, 1998 4 KENT ELECTRONICS CORPORATION TAX-DEFERRED SAVINGS AND RETIREMENT PLAN AND TRUST STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS December 31,
1997 1996 ----------- ----------- ASSETS Investments: At fair value Cash equivalents $ 214,973 $ 337,732 Corporate stocks 15,528,758 16,431,204 Mutual funds 4,795,494 2,009,434 Participant loans receivable 938,488 587,695 ----------- ----------- 21,477,713 19,366,065 At contract value Investment contracts 1,113,882 881,543 ----------- ----------- Total investments 22,591,595 20,247,608 Employer and participant contributions receivable 270,234 187,583 ----------- ----------- Total assets 22,861,829 20,435,191 LIABILITIES Employer contribution received in advance - 200,000 ----------- ----------- NET ASSETS AVAILABLE FOR PLAN BENEFITS $22,861,829 $20,235,191 =========== ===========
The accompanying notes are an integral part of these statements. 5 KENT ELECTRONICS CORPORATION TAX-DEFERRED SAVINGS AND RETIREMENT PLAN AND TRUST STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS December 31,
1997 1996 ----------- ------------ Additions to net assets attributed to: Investment income Net appreciation of investments $ 115,985 $ - Interest and dividend income 508,884 160,280 ----------- ----------- 624,869 160,280 Contributions Participant contributions 3,151,384 2,509,568 Employer contributions 1,078,174 783,544 ----------- ----------- 4,229,558 3,293,112 ----------- ----------- Total additions 4,854,427 3,453,392 Deductions from net assets attributed to: Net depreciation of investments - 2,145,246 Benefits paid to participants 2,133,891 2,180,438 Administrative expenses 93,898 97,980 ----------- ----------- Total deductions 2,227,789 4,423,664 ----------- ----------- Net increase (decrease) 2,626,638 (970,272) Net assets available for plan benefits: Beginning of year 20,235,191 21,205,463 ----------- ----------- End of year $22,861,829 $20,235,191 =========== ===========
The accompanying notes are an integral part of these statements. 6 KENT ELECTRONICS CORPORATION TAX-DEFERRED SAVINGS AND RETIREMENT PLAN AND TRUST NOTES TO FINANCIAL STATEMENTS December 31, 1997 and 1996 NOTE A - DESCRIPTION OF PLAN The following brief description of the Kent Electronics Corporation Tax- Deferred Savings and Retirement Plan and Trust (the Plan) is provided for general information purposes only. Participants should refer to the Plan agreement for more complete information. 1. GENERAL ------- The Plan is a 401(k) savings and profit sharing plan which was adopted March 30, 1987 for officers and employees of Kent Electronics Corporation, Inc. and subsidiaries (the Company). The Plan is generally subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). The purpose of the Plan is to allow participants to make elective contributions to be treated as deferred compensation for income tax purposes and for the Company to make elective contributions as a retirement vehicle for employees. 2. ELIGIBILITY ----------- Participation in the Plan is voluntary. Membership in the Plan is available to all employees of the Company who have attained the age of 21 years and have completed six months of service. 3. TRUSTEE ------- The Smith Barney Corporate Trust Company has been designated and appointed as Trustee of the Plan. The Trustee maintains all assets of the Plan in safekeeping. 4. EMPLOYEE ELECTIVE CONTRIBUTIONS ------------------------------- Participants may contribute from 1% up to 12% of their earnings as elective contributions. The maximum amount of employee deferral contribution which may be made by a participant is subject to certain limitations. 5. EMPLOYER THRIFT MATCHING CONTRIBUTIONS -------------------------------------- The Company shall contribute to the Plan's trust (as a thrift contribution) an amount equal to one hundred percent (100%) of the employee elective contribution up to a maximum of three percent (3%) of eligible compensation. Such contribution is invested in the Company's common stock. The maximum amount of employer matching contributions is subject to certain limitations. 7 KENT ELECTRONICS CORPORATION TAX-DEFERRED SAVINGS AND RETIREMENT PLAN AND TRUST NOTES TO FINANCIAL STATEMENTS - CONTINUED December 31, 1997 and 1996 NOTE A - DESCRIPTION OF PLAN - CONTINUED 6. EMPLOYER PROFIT SHARING CONTRIBUTIONS ------------------------------------- The Company may contribute (from its net income or accumulated earnings and profit) to the Plan's trust such amount representing a profit sharing contribution, if any, as determined by the Board of Directors of the employer. Such contribution is invested in the Company's common stock. The maximum amount of employer profit sharing contributions is subject to certain limitations. 7. ALLOCATIONS ----------- Each account that is in existence on the valuation date will be credited or charged with its pro rata portion of the income/loss of the Plan. Profit sharing contributions are to be allocated based upon the ratio of each participant's compensation to total compensation of all eligible participants. 8. VESTING SCHEDULE ---------------- A participant's thrift matching and profit sharing accounts vested percentage will be determined in accordance with the following table: Years of Vesting Service Vested Percentage ------------------------ ----------------- Less than 2 years 0% 2 years 40% 3 years 60% 4 years 80% 5 years or more 100% Participant contributions vest immediately. 9. BENEFITS -------- The Plan provides for various benefits to participants who have fulfilled or met the following requirements: Normal Retirement - Participants of the Plan who retire on or after their normal retirement dates (the first day of the month on or after which the participant reaches normal retirement age of 65) will receive the full value of their account in accordance with terms set forth in the Plan. 8 KENT ELECTRONICS CORPORATION TAX-DEFERRED SAVINGS AND RETIREMENT PLAN AND TRUST NOTES TO FINANCIAL STATEMENTS - CONTINUED December 31, 1997 and 1996 NOTE A - DESCRIPTION OF PLAN - CONTINUED Early Retirement - Participants who are fifty-five (55) or more years of age, but who have not attained normal retirement date and who have completed five (5) years of participation in the Plan may retire and receive the full value of their account in accordance with terms as set forth in the Plan. Disability - If participants become totally and permanently disabled, they will be paid the full value of their account in accordance with terms as set forth in the Plan. Death - If participants in the Plan die, their beneficiary will be paid the full value of their account in accordance with terms as set forth in the Plan. Termination - If participants terminate their employment with the Company for any reason other than retirement, total and permanent disability, or death, they will be paid the vested value of their account in accordance with terms as set forth in the Plan. 10. FORFEITURES ----------- Participant's forfeited amounts of employer thrift matching or profit sharing contributions due to termination are used to reduce subsequent employer contributions. 11. ADMINISTRATIVE EXPENSES ----------------------- Administrative expenses are paid directly by the Plan. 12. TOP-HEAVY PLAN PROVISIONS ------------------------- In the event the Plan should be Top-Heavy for any plan year, as defined by Internal Revenue Code Section 401(a), provisions are set forth in the Plan to remedy such condition. 13. PARTICIPANT LOANS RECEIVABLE ---------------------------- Participants may borrow from their fund accounts a minimum of $1,000 up to a maximum equal to the lesser of $50,000 or 50 percent of their vested account balance. Loan transactions are treated as a transfer to (from) the investment fund from (to) the Participant Loans Fund. Loan terms range from 1-5 years or up to 15 years for the purchase of a primary residence. The loans are secured by the balance in the participant's account and bear interest at the prime rate plus one percent as of the beginning of the month in which the loan was made. Principal and interest is paid ratably through equal payroll deductions each pay period. 9 KENT ELECTRONICS CORPORATION TAX-DEFERRED SAVINGS AND RETIREMENT PLAN AND TRUST NOTES TO FINANCIAL STATEMENTS - CONTINUED December 31, 1997 and 1996 NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A summary of the significant accounting policies consistently applied in the preparation of the accompanying financial statements follows. 1. BASIS OF ACCOUNTING ------------------- The accompanying financial statements are presented on the accrual basis of accounting. 2. VALUATION OF INVESTMENTS ------------------------ Investments are stated at their fair market value, as determined by quoted market prices, except for investment contracts, which are valued at contract value (Note B.3). Unrealized appreciation or depreciation of fair market values of investments held at year end and gain or loss on sale of investments during the year are determined using the basis of the applicable investment at the beginning of the year or purchase price, if acquired during the year. 3. INVESTMENT CONTRACTS -------------------- The Plan has invested in a fund, Capital Preservation Fund (named the GIC Income Fund 4 prior to 1997), made up of a portfolio of guaranteed investment contracts with insurance companies, having an average maturity between 2.5 to 3.5 years. The contracts are included in the financial statements at contract value, which approximates fair value, as reported to the Plan by the Trustee. 4. TERMINATION OF PLAN ------------------- The Company expects to continue the Plan indefinitely, but reserves the right to change it from time to time, or to terminate it if necessary. A change or termination cannot take away a vested right to Plan benefits resulting from contributions made before the change or termination. 5. USE OF ESTIMATES ---------------- In preparing the financial statements in conformity with generally accepted accounting principles, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting period. Actual results could differ from those estimates. 10 Kent Electronics Corporation TAX-DEFERRED SAVINGS AND RETIREMENT PLAN AND TRUST NOTES TO FINANCIAL STATEMENTS - CONTINUED December 31, 1997 and 1996 NOTE C - INVESTMENT OPTIONS Upon enrollment into the Plan, a participant may direct employee contributions into an investment in Kent Stock, any one of six mutual funds or a fund made up of a portfolio of guaranteed investment contracts with insurance companies. Following are the statements of net assets available for plan benefits and the statements of changes in net assets available for plan benefits by separate optional investment fund program as of December 31, 1997 and 1996, and for the years then ended. Investments that represent 5% or more of the Plan's net assets are separately identified. STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, BY FUND December 31, 1997
Kent Electronics Capital Investment Growth Euro Pacific Corporation Preservation Company of Fund of Growth Common Stock Fund America America Fund Investment Investment Investment Investment Investment Account Account Account Account Account ------------ ------------ ----------- ---------- ------------ ASSETS Investments: At fair value Cash equivalents $ 177,250 $ 8,088 $ 6,824 $ 6,722 $ 3,170 Corporate stocks 15,528,758 - - - - Mutual funds - - 2,652,550 738,552 501,421 Participant loans receivable - - - - - At contract value Investment contracts - 1,113,882 - - - ----------- ---------- ---------- -------- -------- Total investments 15,706,008 1,121,970 2,659,374 745,274 504,591 Employer and participant con- tributions receivable 193,130 14,004 21,978 14,523 11,063 ----------- ---------- ---------- -------- -------- Total assets 15,899,138 1,135,974 2,681,352 759,797 515,654 LIABILITIES Employer contribution received in advance - - - - - ----------- ---------- ---------- -------- -------- NET ASSETS AVAILABLE FOR PLAN BENEFITS $15,899,138 $1,135,974 $2,681,352 $759,797 $515,654 =========== ========== ========== ======== ========
Capital World Bond Income Growth & Fund of Fund of Income America America Investment Investment Investment Participant Account Account Account Loans Total ------------- ---------- --------- ----------- ----------- ASSETS Investments: At fair value Cash equivalents $ 202 $ - $ 12,717 $ - $ 214,973 Corporate stocks - - - - 15,528,758 Mutual funds 432,075 180,179 290,717 - 4,795,494 Participant loans receivable - - - 938,488 938,488 At contract value Investment contracts - - - - 1,113,882 -------- -------- -------- -------- ----------- Total investments 432,277 180,179 303,434 938,488 22,591,595 Employer and participant con- tributions receivable 8,028 3,288 4,220 - 270,234 -------- -------- -------- -------- ----------- Total assets 440,305 183,467 307,654 938,488 22,861,829 LIABILITIES Employer contribution received in advance - - - - - -------- -------- -------- -------- ----------- NET ASSETS AVAILABLE FOR PLAN BENEFITS $440,305 $183,467 $307,654 $938,488 $22,861,829 ======== ======== ======== ======== ===========
11 KENT ELECTRONICS CORPORATION TAX-DEFERRED SAVINGS AND RETIREMENT PLAN AND TRUST NOTES TO FINANCIAL STATEMENTS - CONTINUED December 31, 1997 and 1996 NOTE C - INVESTMENT OPTIONS - CONTINUED STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, BY FUND December 31, 1996
Kent Electronics Investment Growth Euro Pacific Corporation GIC Income Company of Fund of Growth Common Stock Fund 4 America America Fund Investment Investment Investment Investment Investment Account Account Account Account Account ------------ ------------ ---------- ---------- ------------- ASSETS Investments: At fair value Cash equivalents $ 288,387 $ - $ 39,845 $ 6,138 $ 2,514 Corporate stocks 16,431,204 - - - - Mutual funds - - 1,580,339 160,794 78,813 Participant loans receivable - - - - - At contract value Investment contracts - 881,543 - - - ----------- -------- ---------- -------- ------- Total investments 16,719,591 881,543 1,620,184 166,932 81,327 Employer and participant con- tributions receivable 148,351 13,956 16,646 4,043 1,150 ----------- -------- ---------- -------- ------- Total assets 16,867,942 895,499 1,636,830 170,975 82,477 LIABILITIES Employer contribution received in advance (200,000) - - - - ----------- -------- ---------- -------- ------- NET ASSETS AVAILABLE FOR PLAN BENEFITS $16,667,942 $895,499 $1,636,830 $170,975 $82,477 =========== ======== ========== ======== =======
Capital World Bond Income Growth & Fund of Fund of Income America America Investment Investment Investment Participant Account Account Account Loans Total ------------- ---------- ---------- ----------- ----------- ASSETS Investments: At fair value Cash equivalents $ 678 $ 85 $ 85 $ - $ 337,732 Corporate stocks - - - - 16,431,204 Mutual funds 68,852 45,990 74,646 - 2,009,434 Participant loans receivable - - - 587,695 587,695 At contract value Investment contracts - - - - 881,543 ------- ------- ------- -------- ----------- Total investments 69,530 46,075 74,731 587,695 20,247,608 Employer and participant con- tributions receivable 1,125 1,236 1,076 - 187,583 ------- ------- ------- -------- ----------- Total assets 70,655 47,311 75,807 587,695 20,435,191 LIABILITIES Employer contribution received in advance - - - - (200,000) ------- ------- ------- -------- ----------- NET ASSETS AVAILABLE FOR PLAN BENEFITS $70,655 $47,311 $75,807 $587,695 $20,235,191 ======= ======= ======= ======== ===========
12 KENT ELECTRONICS CORPORATION TAX-DEFERRED SAVINGS AND RETIREMENT PLAN AND TRUST NOTES TO FINANCIAL STATEMENTS - CONTINUED December 31, 1997 and 1996 NOTE C - INVESTMENT OPTIONS - CONTINUED STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS, BY FUND December 31, 1997
Kent Electronics Capital Investment Growth Euro Pacific Corporation Preservation Company of Fund of Growth Common Stock Fund America America Fund Investment Investment Investment Investment Investment Account Account Account Account Account ------------ ------------ ----------- ---------- ------------ Additions added to net assets attributed to: Net appreciation (depreciation) of investments $ (213,618) $ 52,876 $ 270,085 $ 19,151 $(21,982) Investment income Interest and dividend income 9,120 - 261,389 78,073 32,471 ----------- ---------- ---------- -------- -------- (204,498) 52,876 531,474 97,224 10,489 Contributions Participant contributions 1,903,143 183,958 357,975 297,955 153,512 Employer contributions 1,078,174 - - - - ----------- ---------- ---------- -------- -------- 2,981,317 183,958 357,975 297,955 153,512 ----------- ---------- ---------- -------- -------- Total additions 2,776,819 236,834 889,449 395,179 164,001 Deductions from net assets attributed to: Benefits paid to participants 1,780,611 120,989 142,946 12,991 4,970 Administrative expenses 79,812 3,657 7,631 1,196 632 ----------- ---------- ---------- -------- -------- Total deductions 1,860,423 124,646 150,577 14,187 5,602 ----------- ---------- ---------- -------- -------- Net increase before inter- fund transfers 916,396 112,188 738,872 380,992 158,399 Interfund transfers (1,685,200) 128,287 305,650 207,830 274,778 ----------- ---------- ---------- -------- -------- Net increase (decrease) (768,804) 240,475 1,044,522 588,822 433,177 Net assets available for plan benefits: Beginning of year 16,667,942 895,499 1,636,830 170,975 82,477 ----------- ---------- ---------- -------- -------- End of year $15,899,138 $1,135,974 $2,681,352 $759,797 $515,654 =========== ========== ========== ======== ========
Capital World Bond Income Growth & Fund of Fund of Income America America Investment Investment Investment Participant Account Account Account Loans Total ------------- ---------- ---------- ----------- ----------- Additions added to net assets attributed to: Net appreciation (depreciation) of investments $ (316) $ 1,919 $ 7,870 $ - $ 115,985 Investment income Interest and dividend income 32,527 7,560 31,770 55,974 508,884 -------- -------- -------- -------- ----------- 32,211 9,479 39,640 55,974 624,869 Contributions Participant contributions 107,469 47,982 99,390 - 3,151,384 Employer contributions - - - - 1,078,174 -------- -------- -------- -------- ----------- 107,469 47,982 99,390 - 4,229,558 -------- -------- -------- -------- ----------- Total additions 139,680 57,461 139,030 55,974 4,854,427 Deductions from net assets attributed to: Benefits paid to participants 21,005 1,881 3,981 44,517 2,133,891 Administrative expenses 377 163 430 - 93,898 -------- -------- -------- -------- ----------- Total deductions 21,382 2,044 4,411 44,517 2,227,789 -------- -------- -------- -------- ----------- Net increase before inter- fund transfers 118,298 55,417 134,619 11,457 2,626,638 Interfund transfers 251,352 80,739 97,228 339,336 - -------- -------- -------- -------- ----------- Net increase (decrease) 369,650 136,156 231,847 350,793 2,626,638 Net assets available for plan benefits: Beginning of year 70,655 47,311 75,807 587,695 20,235,191 -------- -------- -------- -------- ----------- End of year $440,305 $183,467 $307,654 $938,488 $22,861,829 ======== ======== ======== ======== ===========
13 KENT ELECTRONICS CORPORATION TAX-DEFERRED SAVINGS AND RETIREMENT PLAN AND TRUST NOTES TO FINANCIAL STATEMENTS - CONTINUED December 31, 1997 and 1996 NOTE C - INVESTMENT OPTIONS - CONTINUED STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS, BY FUND December 31, 1996
Kent Electronics Investment Growth Euro Pacific Corporation GIC Income Company of Fund of Growth Common Stock Fund 4 America America Fund Investment Investment Investment Investment Investment Account Account Account Account Account ------------ ------------ ---------- ---------- ------------ Additions added to net assets attributed to: Investment income Interest and dividend income $ 4,381 $ 19,576 $ 97,056 $ 8,949 $ 2,231 Contributions Participant contributions 1,868,958 248,726 306,204 34,018 11,260 Employer contributions 783,544 - - - - ----------- -------- ---------- -------- ------- 2,652,502 248,726 306,204 34,018 11,260 ----------- -------- ---------- -------- ------- Total additions 2,656,883 268,302 403,260 42,967 13,491 Deductions from net assets attributed to: Net depreciation (appreciation) of investments 2,353,365 (20,407) (159,497) (13,511) (4,422) Benefits paid to participants 1,941,539 92,895 107,904 1,274 373 Administrative expenses 86,151 4,126 7,033 167 123 ----------- -------- ---------- -------- ------- Total deductions 4,381,055 76,614 (44,560) (12,070) (3,926) ----------- -------- ---------- -------- ------- Net (decrease) increase before interfund transfers (1,724,172) 191,688 447,820 55,037 17,417 Interfund transfers (595,312) (147,754) (177,462) 115,938 65,060 ----------- -------- ---------- -------- ------- Net (decrease) increase (2,319,484) 43,934 270,358 170,975 82,477 Net assets available for plan benefits: Beginning of year 18,987,426 851,565 1,366,472 - - ----------- -------- ---------- -------- ------- End of year $16,667,942 $895,499 $1,636,830 $170,975 $82,477 =========== ======== ========== ======== =======
Capital World Bond Income Growth & Fund of Fund of Income America America Investment Investment Investment Participant Account Account Account Loans Total ------------- ---------- ---------- ----------- ----------- Additions added to net assets attributed to: Investment income Interest and dividend income $ 3,082 $ 1,310 $ 5,507 $ 18,188 $ 160,280 Contributions Participant contributions 5,017 29,954 5,431 - 2,509,568 Employer contributions - - - - 783,544 ------- ------- ------- -------- ----------- 5,017 29,954 5,431 - 3,293,112 ------- ------- ------- -------- ----------- Total additions 8,099 31,264 10,938 18,188 3,453,392 Deductions from net assets attributed to: Net depreciation (appreciation) of investments (6,433) (1,253) (2,596) - 2,145,246 Benefits paid to participants 84 83 101 36,185 2,180,438 Administrative expenses 132 114 134 - 97,980 ------- ------- ------- -------- ----------- Total deductions (6,217) (1,056) (2,361) 36,185 4,423,664 ------- ------- ------- -------- ----------- Net (decrease) increase before interfund transfers 14,316 32,320 13,299 (17,997) (970,272) Interfund transfers 56,339 14,991 62,508 605,692 - ------- ------- ------- -------- ----------- Net (decrease) increase 70,655 47,311 75,807 587,695 (970,272) Net assets available for plan benefits: Beginning of year - - - - 21,205,463 ------- ------- ------- -------- ----------- End of year $70,655 $47,311 $75,807 $587,695 $20,235,191 ======= ======= ======= ======== ===========
14 KENT ELECTRONICS CORPORATION TAX-DEFERRED SAVINGS AND RETIREMENT PLAN AND TRUST NOTES TO FINANCIAL STATEMENTS - CONTINUED December 31, 1997 and 1996 NOTE D - INSURANCE The Plan is categorized as a defined contribution plan under the Internal Revenue Code and, accordingly, the Plan is not insured by the Pension Benefit Guaranty Corporation. NOTE E - INCOME TAX STATUS The Internal Revenue Service has determined and informed the Company by a letter dated September 28, 1995, that the Plan is designed in accordance with applicable sections of the Internal Revenue Code (IRC). The Plan has been amended since receiving the determination letter. However, the Plan administrator believes that the Plan is designed and is currently being operated in compliance with the applicable requirements of the IRC. 15 SUPPLEMENTAL SCHEDULES 16 Kent Electronics Corporation TAX-DEFERRED SAVINGS AND RETIREMENT PLAN AND TRUST ASSETS HELD FOR INVESTMENT December 31, 1997 Number of Cost at Current value units December 31, 1997 December 31, 1997 --------- ----------------- ----------------- Smith Barney Money Funds Cash Portfolio 214,973 $ 214,973 $ 214,973 Kent Electronics Corporation Common Stock 618,060 6,002,837 15,528,758 Capital Preservation Fund 80,204 1,048,851 1,113,882 Investment Company of America 93,896 2,120,670 2,652,550 Growth Fund of America 39,326 708,853 738,552 Euro Pacific Growth Fund 19,271 519,733 501,421 Capital World Growth & Income 17,629 429,356 432,075 Bond Fund of America 12,870 177,397 180,179 Income Fund of America 16,360 281,108 290,717 Participant Loans 938,488 938,488 938,488 ----------- ----------- $12,442,266 $22,591,595 =========== =========== 17 KENT ELECTRONICS CORPORATION TAX-DEFERRED SAVINGS AND RETIREMENT PLAN AND TRUST TRANSACTIONS IN EXCESS OF FIVE PERCENT OF FAIR VALUE OF PLAN ASSETS Year ended December 31, 1997 Purchase Selling Cost of Net Identity Shares price price asset gain/loss -------- --------- ---------- ---------- ---------- --------- Smith Barney Money Funds Cash Portfolio Purchases (311 transactions) 5,490,239 $5,490,239 $ - $ - $ - Sales (293 transactions) 5,612,998 - 5,612,998 5,612,998 - 18 SIGNATURES The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized. KENT ELECTRONICS CORPORATION TAX-DEFERRED SAVINGS AND RETIREMENT PLAN AND TRUST (Name of Plan) Date: June 29, 1998 /s/ Stephen J. Chapko -------------------------------- Stephen J. Chapko Secretary of the Plan Administration Committee EX-23.1 2 CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS EXHIBIT 23.1 CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS --------------------------------------------------- We have issued our report dated June 15, 1998, accompanying the financial statements and schedules included in the Kent Electronics Corporation Tax- Deferred Savings and Retirement Plan and Trust's Form 11-K for the year ended December 31, 1997. We hereby consent to the incorporation by reference of said report in the Registration Statement of Kent Electronics Corporation on Form S-8 (File No. 33-18527). GRANT THORNTON LLP Houston, Texas June 29, 1998 -----END PRIVACY-ENHANCED MESSAGE-----