AVNET INC - FORM 8-K - EX-99.2 - August 9, 2017

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Exhibit 99.2

 

Supplemental and Non-GAAP Financial Information

 

In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in the United States (“GAAP”), the Company also discloses certain non-GAAP financial information including (i) adjusted operating income, (ii) adjusted operating expenses, (iii) adjusted other (expense) income, (iv) adjusted income tax expense, (v) adjusted income from continuing operations, (vi) adjusted diluted earnings per share, and (vii) sales adjusted for the impact of acquisitions and other items (as defined in the Organic Sales section of this document).

 

There are also references to the impact of foreign currency in the discussion of the Company’s results of operations. When the U.S. Dollar strengthens and the stronger exchange rates of the current year are used to translate the results of operations of Avnet’s subsidiaries denominated in foreign currencies, the resulting impact is a decrease in U.S. Dollars of reported results. Conversely, when the U.S. Dollar weakens and the weaker exchange rates of the current year are used to translate the results of operations of Avnet’s subsidiaries denominated in foreign currencies, the resulting impact is an increase in U.S. Dollars of reported results. In the discussion of the Company’s results of operations, results excluding this impact are referred to as “excluding the impact of changes in foreign currency exchange rates” or “constant currency.” Management believes organic sales and sales in constant currency are useful measures for evaluating current period performance as compared with prior periods and for understanding underlying trends. In order to determine the translation impact of changes in foreign currency exchange rates on sales, income or expense items for subsidiaries reporting in currencies other than the U.S. Dollar, the Company adjusts the average exchange rates used in current periods to be consistent with the average exchange rates in effect during the comparative period.

 

Management believes that operating income, operating expenses and other (expense) income adjusted for restructuring, integration and other expenses, including acquisition or divestiture related costs and amortization of acquired intangible assets and other, are useful measures to help investors better assess and understand the Company’s operating performance. This is especially the case when comparing results with previous periods or forecasting performance for future periods, primarily because management views the excluded items to be outside of Avnet’s normal operating results or non-cash in nature. Management analyzes operating income, operating expenses and other (expense) income without the impact of these items as an indicator of ongoing margin performance and underlying trends in the business. Management also uses these non-GAAP measures to establish operational goals and, in many cases, for measuring performance for compensation purposes.

 

Additional non-GAAP metrics management uses are adjusted operating income margin, which is defined as adjusted operating income (as defined above) divided by sales and adjusted operating expense to gross profit ratio, which is defined as adjusted operating expenses (as defined above) divided by gross profit.

 

 

 

 

Management also believes income tax expense, income from continuing operations and diluted earnings per share from continuing operations adjusted for the impact of the items described above and certain items impacting income tax expense are useful to investors because they provide a measure of the Company’s net profitability on a more comparable basis to historical periods and provide a more meaningful basis for forecasting future performance. Additionally, because of management’s focus on generating shareholder value, of which net profitability is a primary driver, management believes income from continuing operations and diluted earnings per share from continuing operations excluding the impact of these items provides an important measure of the Company’s net profitability for the investing public.

 

Other metrics management monitors in its assessment of business performance include return on working capital (ROWC), return on capital employed (ROCE) and working capital velocity (WC velocity).

   

·

ROWC is defined as annualized adjusted operating income (as defined above) divided by the sum of the monthly average balances of receivables and inventories less accounts payable from both continuing and discontinued operations.

 

·

ROCE is defined as annualized, tax effected adjusted operating income (as defined above) divided by the monthly average balances of interest-bearing debt and equity (including the impact of adjustments to operating income discussed above) less cash and cash equivalents from both continuing and discontinued operations.

 

·

WC velocity is defined as annualized adjusted sales divided by the sum of the monthly average balances of receivables and inventories less accounts payable from both continuing and discontinued operations.

 

Any analysis of results and outlook on a non-GAAP basis should be used as a complement to, and in conjunction with, results presented in accordance with GAAP.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year 2017

 

 

 

 

 

 

 

Quarters Ended

 

 

 

    

Fiscal

 

July 1,

    

April 1,

    

December 31,

    

October 1,

 

 

 

 

2017*

 

2017*

 

2017*

 

2016*

 

2016*

 

 

 

 

 

 

 

($ in thousands, except per share amounts)

 

GAAP selling, general and administrative expenses - continuing operations

 

 

$

1,770,627

 

$

495,210

 

$

480,190

 

$

431,555

 

$

363,672

 

Amortization of intangible assets and other - continuing operations

 

 

 

(54,526)

 

 

(19,822)

 

 

(22,497)

 

 

(9,829)

 

 

(2,378)

 

Adjusted operating expenses - continuing operations

 

 

 

1,716,101

 

 

475,388

 

 

457,693

 

 

421,726

 

 

361,294

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP operating income - continuing operations

 

 

$

461,400

 

$

93,373

 

$

114,283

 

$

124,230

 

$

129,514

 

Restructuring, integration and other expenses - continuing operations

 

 

 

137,415

 

 

42,033

 

 

35,513

 

 

30,400

 

 

29,469

 

Amortization of intangible assets and other - continuing operations

 

 

 

54,526

 

 

19,822

 

 

22,497

 

 

9,829

 

 

2,378

 

Adjusted operating income - continuing operations

 

 

 

653,341

 

 

155,228

 

 

172,293

 

 

164,459

 

 

161,361

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP other (expense) income, net - continuing operations

 

 

$

(44,305)

 

$

(13,495)

 

$

19,439

 

$

(36,514)

 

$

(13,734)

 

Unrealized (gain) loss on marketable securities and other - continuing operations

 

 

 

765

 

 

14,624

 

 

(13,859)

 

 

 -

 

 

 -

 

Acquisition related FX hedging and financing costs - continuing operations

 

 

 

43,707

 

 

 -

 

 

 -

 

 

32,700

 

 

11,007

 

Adjusted other (expense) income, net - continuing operations

 

 

 

167

 

 

1,129

 

 

5,580

 

 

(3,814)

 

 

(2,727)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP income before income taxes- continuing operations

 

 

 

310,404

 

 

54,705

 

 

106,188

 

 

60,968

 

 

88,544

 

Restructuring, integration and other expenses - continuing operations

 

 

 

137,415

 

 

42,033

 

 

35,513

 

 

30,400

 

 

29,469

 

Amortization of intangible assets and other - continuing operations

 

 

 

54,526

 

 

19,822

 

 

22,497

 

 

9,829

 

 

2,378

 

Unrealized (gain) loss on marketable securities and other - continuing operations

 

 

 

765

 

 

14,624

 

 

(13,859)

 

 

 -

 

 

 -

 

Acquisition related FX hedging and financing costs - continuing operations

 

 

 

43,707

 

 

 -

 

 

 -

 

 

32,700

 

 

11,007

 

Adjusted income before income taxes - continuing operations

 

 

 

546,817

 

 

131,184

 

 

150,339

 

 

133,897

 

 

131,398

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP income tax expense (benefit) - continuing operations

 

 

$

47,053

 

$

(18,574)

 

$

16,268

 

$

28,503

 

$

20,856

 

Restructuring, integration and other expenses  - continuing operations

 

 

 

45,403

 

 

16,324

 

 

12,455

 

 

7,378

 

 

9,246

 

Amortization of intangible assets and other - continuing operations

 

 

 

14,670

 

 

6,654

 

 

5,077

 

 

2,342

 

 

597

 

Unrealized (gain) loss on marketable securities and other - continuing operations

 

 

 

1,381

 

 

6,812

 

 

(5,431)

 

 

 -

 

 

 -

 

Acquisition related FX hedging and financing costs - continuing operations

 

 

 

6,968

 

 

 -

 

 

 -

 

 

4,230

 

 

2,738

 

Discrete income tax expense (benefit) items - continuing operations

 

 

 

14,695

 

 

14,987

 

 

7,712

 

 

(9,369)

 

 

1,365

 

Adjusted income tax expense - continuing operations

 

 

 

130,170

 

 

26,203

 

 

36,081

 

 

33,084

 

 

34,802

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP income - continuing operations

 

 

$

263,351

 

$

73,279

 

$

89,920

 

$

32,465

 

$

67,688

 

Restructuring, integration and other expenses (net of tax) - continuing operations

 

 

 

92,012

 

 

25,709

 

 

23,058

 

 

23,022

 

 

20,223

 

Amortization of intangible assets and other (net of tax) - continuing operations

 

 

 

39,856

 

 

13,168

 

 

17,420

 

 

7,487

 

 

1,781

 

Unrealized (gain) loss on marketable securities and other (net of tax) - continuing operations

 

 

 

(616)

 

 

7,812

 

 

(8,428)

 

 

 -

 

 

 -

 

Acquisition related FX hedging and financing costs (net of tax) - continuing operations

 

 

 

36,739

 

 

 -

 

 

 -

 

 

28,470

 

 

8,269

 

Discrete income tax expense (benefit) items - continuing operations

 

 

 

(14,695)

 

 

(14,987)

 

 

(7,712)

 

 

9,369

 

 

(1,365)

 

Adjusted income - continuing operations

 

 

 

416,647

 

 

104,981

 

 

114,258

 

 

100,813

 

 

96,596

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP diluted EPS - continuing operations

 

 

$

2.05

 

$

0.59

 

$

0.69

 

$

0.25

 

$

0.52

 

Restructuring, integration and other expenses (net of tax) - continuing operations

 

 

 

0.73

 

 

0.21

 

 

0.18

 

 

0.18

 

 

0.16

 

Amortization of intangible assets and other (net of tax) - continuing operations

 

 

 

0.32

 

 

0.11

 

 

0.14

 

 

0.06

 

 

0.01

 

Unrealized (gain) loss on marketable securities and other (net of tax) - continuing operations

 

 

 

(0.01)

 

 

0.06

 

 

(0.07)

 

 

 -

 

 

 -

 

Acquisition related FX hedging and financing costs (net of tax) - continuing operations

 

 

 

0.28

 

 

 -

 

 

 -

 

 

0.22

 

 

0.06

 

Discrete income tax expense (benefit) items - continuing operations

 

 

 

(0.13)

 

 

(0.13)

 

 

(0.06)

 

 

0.07

 

 

(0.01)

 

Adjusted diluted EPS - continuing operations

 

 

 

3.24

 

 

0.84

 

 

0.88

 

 

0.77

 

 

0.74

 

* May not foot due to rounding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year 2016

 

 

 

 

 

 

Quarters Ended

 

 

    

Fiscal

 

July 2,

    

April 2,

    

January 2,

    

October 3,

 

 

 

2016*

 

2016*

 

2016*

 

2016*

 

2015*

 

 

 

 

 

 

($ in thousands, except per share amounts)

GAAP selling, general and administrative expenses - continuing operations

 

 

$

1,460,273

 

$

366,291

 

$

362,064

 

$

354,858

 

$

377,060

Amortization of intangible assets and other - continuing operations

 

 

 

(9,784)

 

 

(2,222)

 

 

(2,442)

 

 

(2,272)

 

 

(2,848)

Adjusted operating expenses - continuing operations

 

 

 

1,450,489

 

 

364,069

 

 

359,622

 

 

352,586

 

 

374,212

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP operating income - continuing operations

 

 

$

572,912

 

$

120,180

 

$

150,024

 

$

136,117

 

$

166,591

Restructuring, integration and other expenses - continuing operations

 

 

 

44,761

 

 

9,306

 

 

8,854

 

 

14,083

 

 

12,518

Amortization of intangible assets and other - continuing operations

 

 

 

9,784

 

 

2,222

 

 

2,442

 

 

2,272

 

 

2,848

Adjusted operating income - continuing operations

 

 

 

627,457

 

 

131,708

 

 

161,320

 

 

152,472

 

 

181,957

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP other (expense) income, net - continuing operations

 

 

$

(2,963)

 

$

(3,247)

 

$

1,453

 

$

(2,052)

 

$

883

Other expense

 

 

 

(62)

 

 

(62)

 

 

 -

 

 

 -

 

 

 -

Adjusted other (expense) income, net - continuing operations

 

 

 

(3,025)

 

 

(3,309)

 

 

1,453

 

 

(2,052)

 

 

883

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP income before income taxes- continuing operations

 

 

 

478,013

 

 

89,383

 

 

130,089

 

 

113,100

 

 

145,443

Restructuring, integration and other expenses - continuing operations

 

 

 

44,761

 

 

9,306

 

 

8,854

 

 

14,083

 

 

12,518

Amortization of intangible assets and other - continuing operations

 

 

 

9,784

 

 

2,222

 

 

2,442

 

 

2,272

 

 

2,848

Other expense

 

 

 

(62)

 

 

(62)

 

 

 -

 

 

 -

 

 

 -

Adjusted income before income taxes - continuing operations

 

 

 

532,496

 

 

100,849

 

 

141,385

 

 

129,455

 

 

160,809

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP income tax expense - continuing operations

 

 

$

87,104

 

$

17,330

 

$

22,297

 

$

10,959

 

$

36,518

Restructuring, integration and other expenses  - continuing operations

 

 

 

15,463

 

 

3,389

 

 

3,057

 

 

4,570

 

 

4,447

Amortization of intangible assets and other - continuing operations

 

 

 

2,598

 

 

735

 

 

468

 

 

618

 

 

777

Discrete income tax expense (benefit) items - continuing operations

 

 

 

23,692

 

 

4,033

 

 

8,463

 

 

12,048

 

 

(852)

Adjusted income tax expense - continuing operations

 

 

 

128,857

 

 

25,487

 

 

34,285

 

 

28,195

 

 

40,890

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP income - continuing operations

 

 

$

390,909

 

$

72,053

 

$

107,792

 

$

102,141

 

$

108,925

Restructuring, integration and other expenses (net of tax) - continuing operations

 

 

 

29,298

 

 

5,917

 

 

5,797

 

 

9,513

 

 

8,071

Amortization of intangible assets and other (net of tax) - continuing operations

 

 

 

7,186

 

 

1,487

 

 

1,974

 

 

1,654

 

 

2,071

Other expense (net of tax)

 

 

 

(62)

 

 

(62)

 

 

 -

 

 

 -

 

 

 -

Discrete income tax expense (benefit) items - continuing operations

 

 

 

(23,692)

 

 

(4,033)

 

 

(8,463)

 

 

(12,048)

 

 

852

Adjusted income - continuing operations

 

 

 

403,640

 

 

75,362

 

 

107,100

 

 

101,260

 

 

119,919

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP diluted EPS - continuing operations

 

 

$

2.93

 

$

0.56

 

$

0.82

 

$

0.76

 

$

0.79

Restructuring, integration and other expenses (net of tax) - continuing operations

 

 

 

0.22

 

 

0.05

 

 

0.04

 

 

0.07

 

 

0.06

Amortization of intangible assets and other (net of tax) - continuing operations

 

 

 

0.05

 

 

0.01

 

 

0.01

 

 

0.01

 

 

0.02

Discrete income tax expense (benefit) items - continuing operations

 

 

 

(0.18)

 

 

(0.03)

 

 

(0.06)

 

 

(0.09)

 

 

 -

Adjusted diluted EPS - continuing operations

 

 

 

3.02

 

 

0.59

 

 

0.81

 

 

0.75

 

 

0.86

* May not foot due to rounding

 

 

Organic Sales

 

Organic sales is defined as sales adjusted for the impact of significant acquisitions, divestitures and other items by adjusting Avnet’s prior and current (if necessary) periods to include the sales of acquired businesses and exclude the sales of divested businesses as if the acquisitions and divestitures had occurred at the beginning of the earliest period presented. Organic sales is measured on a sales from continuing operations basis. Organic sales in constant currency is defined as organic sales (as defined above) excluding the impact of changes in foreign currency exchange rates.

 

 

 

The following tables present the reconciliation of reported sales to organic sales for the fourth quarters and full years of fiscal 2016 and fiscal 2017.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fourth Quarter Ended

 

Years Ended

 

 

 

Sales as

 

 

 

Organic

 

Sales as

 

 

 

Organic

 

 

 

Reported

 

Sales from

 

Sales

 

Reported

 

Sales From

 

Sales

 

 

    

Fiscal 2017

 

Acquisitions

 

Fiscal 2017

   

Fiscal 2017

 

Acquisitions (1)

 

Fiscal 2017

 

 

 

(in millions)

Avnet

 

$

4,606.4

 

$

 —

 

$

4,606.4

 

$

17,440.0

 

$

378.3

 

$

17,818.3

 

Avnet by region

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

1,332.2

 

$

 —

 

$

1,332.2

 

$

5,163.9

 

$

154.4

 

$

5,318.3

 

EMEA

 

 

1,651.0

 

 

 —

 

 

1,651.0

 

 

5,912.9

 

 

178.9

 

 

6,091.8

 

Asia

 

 

1,623.2

 

 

 —

 

 

1,623.2

 

 

6,363.2

 

 

45.0

 

 

6,408.2

 

Avnet by segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EC

 

$

4,260.7

 

$

 —

 

$

4,260.7

 

$

16,474.1

 

$

 —

 

$

16,474.1

 

PF

 

 

345.7

 

 

 —

 

 

345.7

 

 

965.9

 

 

378.3

 

 

1,344.2

 

(1)

Includes Premier Farnell acquired on October 17, 2016, which has operations in each Avnet region.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fourth Quarter Ended

 

Year Ended

 

 

 

 

 

 

 

 

 

 

Sales from

 

 

 

 

Sales as

 

 

 

Organic

 

Sales as

 

Acquisitions (1) /

 

Organic

 

 

Reported

 

Sales from

 

Sales

 

Reported

 

Estimated

 

Sales

 

    

Fiscal 2016

 

Acquisitions (1)

 

Fiscal 2016

 

Fiscal 2016

 

Extra Week

 

Fiscal 2016

 

 

(in millions)

Avnet

 

$

3,969.0

 

$

345.5

 

$

4,314.5

 

$

16,740.6

 

$

1,061.4

 

$

17,802.0

Avnet by region

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

1,105.0

 

$

137.7

 

$

1,242.7

 

$

4,801.3

 

$

477.9

 

$

5,279.2

EMEA

 

 

1,293.1

 

 

164.6

 

 

1,457.7

 

 

5,103.0

 

 

560.9

 

 

5,663.9

Asia

 

 

1,570.9

 

 

43.2

 

 

1,614.1

 

 

6,836.3

 

 

22.6

 

 

6,858.9

Avnet by segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EC

 

$

3,969.0

 

$

 —

 

$

3,969.0

 

$

16,740.6

 

$

(300.0)

 

$

16,440.6

PF

 

 

 —

 

 

345.5

 

 

345.5

 

 

 —

 

 

1,361.4

 

 

1,361.4

(1)

Includes Premier Farnell acquired on October 17, 2016, which has operations in each Avnet region.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fourth Quarter Ended

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

 

 

 

Organic

 

 

 

 

 

 

 

 

 

 

 

 

As Reported

 

 

 

 

Sales

 

 

 

Sales

 

 

Organic

 

 

Sales

 

Year-Year %

 

Organic

 

Year-Year %

 

 

 

As Reported

 

 

Sales

 

 

As Reported

 

Change in

 

Sales

 

Change in

 

 

 

Q4-Fiscal

 

 

Q4-Fiscal

 

 

Year-Year

 

Constant 

 

Year-Year

 

Constant

 

 

    

2017

    

 

2017

    

    

% Change

    

Currency

    

% Change

    

Currency

 

 

 

(Dollars in millions)

Avnet

 

$

4,606.4

 

$

4,606.4

 

 

16.1

%

 

17.9

%

 

6.8

%

 

8.4

%

Avnet by region

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

1,332.2

 

$

1,332.2

 

 

20.6

%

 

 —

 

 

7.2

%

 

 —

 

EMEA

 

 

1,651.0

 

 

1,651.0

 

 

27.7

 

 

32.1

%

 

13.3

 

 

17.2

%

Asia

 

 

1,623.2

 

 

1,623.2

 

 

3.3

 

 

4.0

 

 

0.6

 

 

1.2

 

Avnet by segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EC

 

$

4,260.7

 

$

4,260.7

 

 

7.4

%

 

8.8

%

 

7.4

%

 

8.8

%

PF

 

 

345.7

 

 

345.7

 

 

 —

 

 

 —

 

 

0.1

 

 

4.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal 2017

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

 

 

 

Organic

 

 

 

 

 

 

 

 

 

 

As Reported

 

 

 

 

Sales

 

 

 

Sales

 

Organic

 

Sales

 

Year-Year %

 

Organic

 

Year-Year %

 

 

 

As Reported

 

Sales

 

As Reported

 

Change in

 

Sales

 

Change in

 

 

 

Fiscal

 

Fiscal

 

Year-Year

 

Constant 

 

Year-Year

 

Constant

 

 

    

2017

    

2017

    

% Change

    

Currency

    

% Change

    

Currency

 

 

 

(Dollars in millions)

 

Avnet

 

$

17,440.0

 

$

17,818.3

 

4.2

%

 

5.1

%

 

0.1

%

 

1.0

%

Avnet by region

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

5,163.9

 

$

5,318.3

 

7.6

%

 

 —

 

 

0.7

%

 

 —

 

EMEA

 

 

5,912.9

 

 

6,091.8

 

15.9

 

 

19.3

%

 

7.6

 

 

10.7

%

Asia

 

 

6,363.2

 

 

6,408.2

 

(6.9)

 

 

(7.3)

 

 

(6.6)

 

 

6.9

 

Avnet by segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EC

 

$

16,474.1

 

$

16,474.1

 

(1.6)

%

 

(1.0)

%

 

0.2

%

 

0.8

%

PF

 

 

965.9

 

 

1,344.2

 

 —

 

 

 —

 

 

(1.3)

 

 

2.7

 

 

Historical Segment Financial Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year 2017

 

 

 

 

 

Quarters Ended

 

 

 

 

 

Fourth Quarter

 

Third Quarter

 

Second Quarter

 

First Quarter

 

 

 

Fiscal Year

 

July 1,

 

April 1,

 

December 31,

 

October 1,

 

 

 

2017

 

2017

 

2017

 

2016

 

2016

 

 

 

(in millions)

 

Sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Electronic Components

 

$

16,474.1

 

$

4,260.7

 

$

4,090.9

 

$

4,004.3

 

$

4,118.1

 

Premier Farnell (1)

 

 

965.9

 

 

345.7

 

 

351.0

 

 

269.2

 

 

 -

 

Avnet sales

 

$

17,440.0

 

$

4,606.4

 

$

4,441.9

 

$

4,273.6

 

$

4,118.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Electronic Components

 

$

661.0

 

$

152.4

 

$

156.8

 

$

166.7

 

$

185.1

 

Premier Farnell (1)

 

 

99.8

 

 

35.5

 

 

40.3

 

 

24.0

 

 

 -

 

 

 

 

760.8

 

 

187.9

 

 

197.1

 

 

190.7

 

 

185.1

 

Corporate (2)

 

 

(107.5)

 

 

(32.7)

 

 

(24.9)

 

 

(26.3)

 

 

(23.7)

 

Restructuring, integration and other expenses

 

 

(137.4)

 

 

(42.0)

 

 

(35.5)

 

 

(30.4)

 

 

(29.5)

 

Amortization of acquired intantible assets and other

 

 

(54.5)

 

 

(19.8)

 

 

(22.5)

 

 

(9.8)

 

 

(2.4)

 

Avnet operating income

 

$

461.4

 

$

93.4

 

$

114.3

 

$

124.2

 

$

129.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales by geographic area:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

5,163.9

 

$

1,332.2

 

$

1,328.6

 

$

1,252.6

 

$

1,250.5

 

EMEA

 

 

5,912.9

 

 

1,651.0

 

 

1,615.9

 

 

1,380.7

 

 

1,265.3

 

Asia/Pacific

 

 

6,363.2

 

 

1,623.2

 

 

1,497.4

 

 

1,640.3

 

 

1,602.3

 

Avnet sales

 

$

17,440.0

 

$

4,606.4

 

$

4,441.9

 

$

4,273.6

 

$

4,118.1

 

(1)

Premier Farnell was acquired on October 17, 2016.

(2)

Prior to the divestiture of the Technology Solutions business in Q3 FY17, a portion of Corporate support expenses were classified within discontinued operations.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year 2016

 

 

 

 

Quarters Ended

 

 

 

 

Fourth Quarter

 

Third Quarter

 

Second Quarter

 

First Quarter

 

 

Fiscal Year

 

July 2,

 

April 2,

 

January 2,

 

October 3,

 

    

2016

 

2016

 

2016

 

2016

 

2015

 

 

(in millions)

Sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Electronic Components

 

$

16,740.6

 

$

3,969.0

 

$

4,081.9

 

$

4,161.1

 

$

4,528.6

Premier Farnell (1)

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

Avnet sales

 

$

16,740.6

 

$

3,969.0

 

$

4,081.9

 

$

4,161.1

 

$

4,528.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Electronic Components

 

$

728.7

 

$

154.7

 

$

184.1

 

$

176.3

 

$

213.6

Premier Farnell

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 

728.7

 

 

154.7

 

 

184.1

 

 

176.3

 

 

213.6

Corporate (2)

 

 

(101.3)

 

 

(23.0)

 

 

(22.8)

 

 

(23.8)

 

 

(31.7)

Restructuring, integration and other expenses

 

 

(44.8)

 

 

(9.3)

 

 

(8.9)

 

 

(14.1)

 

 

(12.5)

Amortization of acquired intantible assets and other

 

 

(9.7)

 

 

(2.2)

 

 

(2.4)

 

 

(2.3)

 

 

(2.8)

Avnet operating income

 

$

572.9

 

$

120.2

 

$

150.0

 

$

136.1

 

$

166.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales by geographic area:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

4,801.3

 

$

1,105.0

 

$

1,227.2

 

$

1,165.8

 

$

1,303.3

EMEA

 

 

5,103.0

 

 

1,293.1

 

 

1,330.7

 

 

1,141.1

 

 

1,338.1

Asia/Pacific

 

 

6,836.3

 

 

1,570.9

 

 

1,524.0

 

 

1,854.2

 

 

1,887.2

Avnet sales

 

$

16,740.6

 

$

3,969.0

 

$

4,081.9

 

$

4,161.1

 

$

4,528.6

(1)

Premier Farnell was acquired on October 17, 2016.

(2)

Prior to the divestiture of the Technology Solutions business in Q3 FY17, a portion of Corporate support expenses were classified within discontinued operations.

 

 

Guidance Reconciliation

 

The following table presents the reconciliation of non-GAAP adjusted diluted earnings per share guidance to the expected GAAP diluted earnings per share guidance for the first quarter of fiscal 2018.

 

 

 

 

 

 

 

 

 

 

 

Low End of

 

High End of

 

 

    

Guidance Range

    

Guidance Range

    

 

 

 

 

 

 

 

 

Adjusted diluted earnings per share guidance

 

$

0.67

 

$

0.77

 

Restructuring, integration and other expense (net of tax) (1)

 

 

(0.22)

 

 

(0.14)

 

Amortization of intangibles and other (net of tax)

 

 

(0.12)

 

 

(0.11)

 

Income tax expense adjustments

 

 

(0.04)

 

 

0.04

 

GAAP diluted earnings per share guidance

 

$

0.29

 

$

0.56

 

(1)

Included accelerated depreciation.

 

 

 

 

 

 

 

 

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