Avnet 2000 Annual Report Download

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OFFICERS
AVNET 2000 ANNUAL REPORT
FORGING AVNET’S FUTURE

Table of contents

  • Page 1
    FORGING AVNET'S FUTURE OFFICERS Lorem ipsum dolor sit amet, consectetuer adipiscing elit, sed diam nonummy nibh euismod tincidunt ut laoreet dolore magna aliquam erat AVNET 2000 ANNUAL REPORT volutpat. Ut wLorem ipsum dolor sit amet, consectetuer adipiscing elit, sed diam nonummy nibh euismod ...

  • Page 2
    ... in global supply-chain management for the electronics industry. The Company's three operating groups - Avnet Electronics Marketing (EM), Avnet Computer Marketing (CM) and Avnet Applied Computing (AAC) - continue to execute and innovate within the global technology marketspace. 2000 1999 1998...

  • Page 3
    ... and rising average selling prices are indicative of another robust year. Avnet is the number one valueadded distributor of electronic components in North America - and the number one global value added distributor of IBM mid-range computing products in the world. Phoenix, Arizona, Headquarters 3

  • Page 4
    ... the globalization of our customers and suppliers and our chosen role as industry consolidator, Avnet's acquisition strategy is moving full steam ahead. This year, we've integrated companies in Europe, Asia and the Americas: Integrand Solutions (Australia); SEI Macro Group (UK); Marshall Industries...

  • Page 5
    ... creating new service value propositions that differentiate Avnet in the global technology marketspace. Employees • Attract, retain and continuously develop a highly skilled, disciplined, global workforce. Operational Excellence • Continuously develop and implement world-class business processes...

  • Page 6
    ...s suc h as financ e , inve nto ry management, marketing and logistics, technical support and engineering, Avnet added value to the components and newly added computer products at the core of the Company' s business. Most recently, as the Information Age opened borders and closed distances around the...

  • Page 7
    ... year ended also positioned the C ompany the number one value-added distributor of IBM mid-range computing products globally. By carefully choosing companies and strategies that add to Avnet's value propositions, the Company realizes key benefits - a broader customer base, an extensive line card...

  • Page 8
    ..., that supply-c hain mo de l is c hanging. The line ar nature o f the c hain is e vo lving into a bro ade r, mo re c o mplex struc ture - a value we b c harac te rize d by an inte rc o nne c te d marke tplac e where customers' and suppliers' Avnet embraces the New Economy and its enabling technology...

  • Page 9
    ... and communicate with others to determine the latest information on new products, end-of-life status and more. And Avnet FasTrac is but one part of the package. Demand planning, design and component procurement assistance, information sourcing, logistics, physical value-add, integration, marketing...

  • Page 10
    ...a single, global, multi-currency, multi-lingual information technology enterprise resource planning (ERP) platform that supports the C ompany' s full suite of products and services. Avnet' s conversion to the SAP 4.0 client/ server is complete in Europe and Asia. Planning in the Americas is underway...

  • Page 11
    ... economic value of Avnet's physical, financial and knowledge resources. Differentiation - Creating service-based value propositions IBM disc drives are pre-loaded with the end customer's specific software by technicians in Avnet Computer Marketing's Production Integration Center, Chandler, Arizona...

  • Page 12
    ..., new fee-for-service models and other value propositions will assist with this goal over time. The Company will fund value propositions that achieve its financial targets, and will divest those that do not. As its role as a supply-chain integrator melds with the trends of outsourcing procurement...

  • Page 13
    ... of the Marshall acquisition in North America and part of the Eurotronics B.V. (SEI) and SEI Macro Group acquisitions in Europe. In January, the Personal Computer Components Division/ Europe joined AAC from Avnet Electronics which will quickly become the primary information source for customers who...

  • Page 14
    ... around enterprise servers, software and storage products. CM's mission is to be the global value-added leader in the information technology distribution AVNET COMPUTER MARKETING In his first full year as president, Andy Bryant has driven further expansion and record growth for Avnet Computer...

  • Page 15
    ..., integrators and information technology consultants in North America. Avnet Computer was also named Partner of the Year by Computer Associates International Inc. (CA), based on its significant strides in support of Unicenter TNG, CA's flagship e-business enterprise management solution. AVNET...

  • Page 16
    ... complete product solutions to engineers. With an average of more than 10 years of design experience each, Avnet engineers, located around the world, can assist with a variety of design-related and timeto-market issues. It remains ADS' goal to support customers with the best technology line card in...

  • Page 17
    ... EUROPE, MIDDLE EAST AND AFRICA (EMEA) Avnet EM/ EMEA has a new presence in Eastern Europe, Russia, the Baltic States, Spain, Portugal and the Benelux countries with Avnet's acquisitions of Eurotronics B.V. Machine operator inserts insulators into connectors, another of Avnet's value-added services...

  • Page 18
    .... EM is in the process of rolling out Avnet Design Centers throughout Asia. It is opening an RF/ Wireless Design Center in Singapore to complement existing Design Centers in Bangalore, India; Auckland, New Zealand and Hong Kong. Avnet Asia aims to be the preferred provider of global supply-chain...

  • Page 19
    ... Marketing ("CM"). EM focuses on the global distribution of and value-added services associated with electronic components. CM focuses on middle- to high-end valueadded computer products distribution and related services. In addition, the Company has a third operating group - Avnet Applied Computing...

  • Page 20
    ...EM's European operations consisted primarily of costs related to the centralization of warehousing operations into the Company's new facility in Tongeren, Belgium. These charges were for severance, adjustment of the carrying value of fixed assets, real property lease terminations, duplicate employee...

  • Page 21
    ...currently being used to finance real estate, computer equipment, infrastructure and project consultancy costs related to the new European distribution center. The Company also has a five-year facility with a syndicate of banks led by Bank of America which expires in September 2002 and which provides...

  • Page 22
    ..., both value-added technical distributors of enterprise computing systems based in Milan, Italy, and in July, 1999, completed the acquisition of Integrand Solutions, the largest computer solutions integrator in Australia. In addition, on July 3, 2000 the Company acquired the Savoir T echnology Group...

  • Page 23
    ...397,608 $ 2,984,697 All share and per share data indicated above have been restated to reflect a two-for-one split of the Company's common stock approved by the Board of Directors on August 31, 2000. These shares are to be distributed on September 28, 2000 to shareholders of record on September 18...

  • Page 24
    ... income Translation adjustments Valuation adjustments (net of tax of $1,562) Comprehensive income Dividends, $0.30 per share Acquisitions of operations Two-for-one stock split (Note 1) Other, net, principally stock option and incentive programs 45,378 $ 44,032 Retained Earnings $ 1,215,550 151,424...

  • Page 25
    ...with quality financial institutions. The Company sells electronic components and computer products primarily to original equipment manufacturers including military contractors and the military, throughout North and South America, Europe and the Asia/ Pacific region. To reduce credit risk, management...

  • Page 26
    ... the two-for-one stock split to be distributed on September 28, 2000) of Avnet common stock. Savoir T echnology Group, Inc. reported 1999 revenues of $767,000,000. The Company has also entered into an agreement to purchase part of the VEBA Electronics Group from Germany-based E.On AG (formerly...

  • Page 27
    .... 6. Accrued expenses and other: (Thousands) Payroll, commissions and related Insurance Income taxes Dividends payable (Note 12) Other June 30, 2000 $ 91,853 14,478 40,964 6,626...of goodwill related to Allied Electronics and Avnet Setron which was not tax benefited (See note 14.) The components of the...

  • Page 28
    ... based upon a percentage of current salary, which varies with age, and interest credits. At June 30, 2000, the market value of the pension plan assets was $201,721,000. These assets were comprised of common stocks (72%), U.S. Government securities (5%), corporate debt obligations (21%), and money...

  • Page 29
    ... grant: Employee stock purchase plan: In October 1995, the Company implemented the Avnet Employee Stock Purchase Plan (ESPP). Under the terms of the ESPP, eligible employees of the Company are offered options to purchase shares of Avnet common stock at a price equal to 85% of the fair market value...

  • Page 30
    ... Americas and Europe prior to those dates are included in EM and CM as the results of the operating groups have not been restated. EM focuses on the global distribution of and value-added services associated with electronics components; CM focuses on middle-to-high-end, value-added computer products...

  • Page 31
    ...: Electronics Marketing Computer Marketing Avnet Applied Computing Corporate $ Depreciation & amortization expense: Electronics Marketing Computer Marketing Avnet Applied Computing Corporate $ Sales, by geographic area, are as follows: Americas EMEA (Europe, Middle East and Africa) Asia/ Pacific...

  • Page 32
    ... sum of the applicable amounts for each of the quarters due to the impact on the weighted average number of shares outstanding of the issuance of shares in connection with the acquisition of Marshall Industries and Electronics B.V. (SEI) in 2000 and the effect of the stock repurchase program in 1999...

  • Page 33
    ... Scarna, Investor Relations Coordinator, at the executive offices address. *Dividends Declared: Cash Dividends on the Company's common stock were 7.5 cents per share during each quarter of fiscal years 2000 and 1999. Auditors: Arthur Andersen LLP, Phoenix, Arizona Transfer Agent: Wells Fargo...