Avnet 2011 Annual Report Download - page 33

Table of Contents
Cash Flows from Financing Activities
During fiscal 2011, the Company received proceeds of $160.0 million from borrowings under the accounts receivable
securitization program and repaid $109.6 million for the 3.75% Notes acquired in the Bell acquisition which were tendered during
fiscal 2011. The Company also received proceeds of $8.9 million, net of repayments, related to bank credit facilities and other debt.
During fiscal 2010, the Company received proceeds of $291.9 million from the issuance of notes, net of repayments for bank and
other debt. In June 2010, the Company issued $300.0 million 5.875% Notes due June 2020 and received proceeds of $296.5 million,
net of discount and underwriting fees.
During fiscal 2009, the Company utilized cash of $406.8 million related to net repayments of notes and bank credit facilities,
$300 million of which related to the extinguishment of the 2% Convertible Senior Debentures due March 15, 2034 (the “Debentures”
).
In March 2009, $298.1 million of the Debentures were put back to the Company and the remaining $1.9 million was repaid in April
2009. As a result of the substantial cash generation from operating activities during fiscal 2009, the Company was able to use cash on
hand to settle the $300 million of Debentures’ principal plus accrued interest.
Other financing activities, net, in fiscal 2011, 2010 and 2009 were primarily a result of cash received for the exercise of stock
options and the associated excess tax benefit.
Cash Flows from Investing Activities
During fiscal 2011, the Company used $691.0 million of cash for acquisitions, net of cash acquired, and $148.7 million for
capital expenditures primarily related to system development costs and computer hardware and software expenditures. Also during
fiscal 2011, the Company received $19.1 million of proceeds associated with a divestiture and $10.6 million of proceeds from the sale
of fixed assets.
During fiscal 2010, the Company used $112.4 million of cash for investing activities, of which $69.3 million related to
acquisitions and investments. The Company also received proceeds of $11.8 million related to earn-
out provisions from the prior sale
of an equity method investment as well as the sale of a small cost method investment. The Company used $66.9 million for capital
expenditures related to building and leasehold improvements, system development costs, computer hardware and software and
received $12.0 million in proceeds primarily related to the sale of properties.
The Company used $314.9 million of cash related to acquisitions during fiscal 2009. The Company also received $14.3 million
in proceeds related to earn-out provisions associated with the prior sale of the Company’s equity investment (see
Results of
Operations — Gain on Sale of Assets).
In addition, the Company utilized $110.2 million of cash for capital expenditures related to
system development costs, computer hardware and software as well as expenditures related to warehouse construction costs.
Capital Structure
The Company uses a variety of financing arrangements, both short-term and long-
term, to fund its operations in addition to funds
generated from cash flow from operations. The Company also uses diversified sources of funding so that it does not become overly
dependent on one source and to achieve lower cost of funding through these different alternatives. These financing arrangements
include public bonds, short-term and long-
term bank loans and an accounts receivable securitization program. For a detailed
description of the Company’
s external financing arrangements outstanding at July 2, 2011, refer to Note 7 to the consolidated financial
statements appearing in Item 15 of this Report.
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