Avnet 2001 Annual Report Download - page 37

(including the non-cash portion of special charges) amounted to
$638.0 million. During that period, $848.3 million was used for
working capital (excluding cash), resulting in $210.3 million of net
cash flows used for operations. In addition, $333.3 million, net, was
needed for other normal business operations including purchases of
property, plant and equipment ($297.0 million) and dividends ($72.3
million), offset by cash generated from other items ($36.0 million).
This resulted in $543.6 million being used for normal business
operations. During that three-year period, the Company also used
$1.117 billion, net, for the repurchase of its common stock ($70.1
million), the net cash used for acquisitions of operations in excess of
the cash provided from dispositions ($1.012 billion) and net cash used
for discontinued operations ($35.2 million). This overall use of cash
of $1.661 billion was financed by a net increase in debt ($1.162 billion),
the proceeds from the asset securitization program ($350.0 million)
and the utilization of available cash ($148.8 million).
In 2001, the Company generated $336.3 million from income before
depreciation, amortization, deferred taxes, cash payments related
to the acquisition of Kent (included in cash used for acquisitions in
the Statement of Cash Flows) and other non-cash items (including
the non-cash portion of special charges). This was offset by $150.1
million of cash used for working capital (excluding cash), resulting
in $186.2 million of net cash flows provided from operations. In
addition, the Company used $149.4 million for other normal business
operations including purchases of property, plant and equipment
($125.4 million) and dividends ($27.4 million), offset by cash
generated from other items ($3.4 million). This resulted in $36.8
million being generated from normal business operations. The
Company also used $660.5 million for acquisitions, net of cash
received from dispositions, and the net cash used for discontinued
operations. This overall use of cash of $623.7 million was financed
by a $119.2 million net increase in debt, $350.0 million of proceeds
from the asset securitization program and the utilization of $154.5
million of available cash.
In 2000, the Company generated $249.3 million from income before
depreciation, amortization, deferred taxes and other non-cash
items, and used $743.7 million for working capital (excluding cash),
resulting in $494.4 million of net cash flows being used for operating
activities. In addition, the Company used $82.5 million for other
normal business operations including purchases of property, plant
and equipment ($92.5 million) and dividends ($18.2 million), offset
by cash generated from other items ($28.2 million). This resulted
in $576.9 million being used for normal business operations. The
Company also used $729.1 million for acquisitions and the net cash
used for discontinued operations. This overall use of cash of $1.306
billion was financed by a $1.054 billion net increase in debt and the
utilization of $251.7 million of available cash.
The Company’s quick assets at June 29, 2001 totaled $1.727 billion
as compared with $2.168 billion at June 30, 2000. This decrease in
quick assets was due to the utilization of cash available at June 30,
2000 to partially paydown outstanding debt and to the reduction of
receivables outstanding due to the decrease of sales during the
fourth quarter of 2001 as compared with the fourth quarter of 2000
and the impact of the Company’s accounts receivable securitization
program as described below. At June 29, 2001, quick assets were
less than the Company’s current liabilities by $843.2 million as
compared with an excess of $131.1 million at the end of 2000.
Working capital at June 29, 2001 was $1.177 billion as compared
with $2.369 billion at June 30, 2000. At June 29, 2001, to support
each dollar of current liabilities, the Company had $0.67 of quick
assets and $0.79 of other current assets, for a total of $1.46 as
compared with $2.16 at the end of the prior year. However, the
above balance sheet amounts at June 29, 2001 were significantly
impacted by the reclassification from long-term of a total $796.8
million of debt related to both the Kent 4.5% Convertible Notes
due 2004, which were “put” back to the Company subsequent to
year-end, and amounts outstanding under a long-term bank facility,
which facility the Company is in the process of renegotiating. As
indicated below, during 2001 the Company entered into a $1.25
billion syndicated credit facility, which at June 29, 2001 was used
to back-up a portion of its outstanding commercial paper. These
short-term borrowings were the principal reason for the decline
in the working capital ratio and the decrease in the quick ratio
indicated above.
In June 2001, the Company entered into a five-year $350 million
accounts receivable securitization program whereby it sells, on a
revolving basis, an undivided interest in a pool of its trade accounts
receivables. Under the program, the Company sells receivables in
securitization transactions and retains a subordinated interest and
servicing rights to those receivables. At June 29, 2001, the Company
had sold $350 million of receivables under the program which is
reflected as a reduction of receivables in the accompanying balance
sheet. The cash received from the sale of receivables was used
primarily to pay down outstanding short-term borrowings.
In October 2000, the Company issued $250.0 million of 8.20% Notes
due October 17, 2003 (the “8.20% Notes”) and $325.0 million of
Floating Rate Notes due October 17, 2001 (the “Floating Rate
Notes”). The proceeds from the sale of the 8.20% Notes and the
Floating Rate Notes were approximately $572.4 million after
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