Avnet 2002 Annual Report Download - page 38

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Cash Öow from Ñnancing activities has declined over the past three years, decreasing by $1.26 billion
from 2001 to 2002 alone, as the cash proceeds from operations were used primarily to pay down debt. Included
in this decline was the repayment of $150 million under the accounts receivable securitization program (see
Note 3 to the consolidated Ñnancial statements in Item 14 of this Report). Cash outÖows for investing
activities have declined over the past two years, most signiÑcantly during 2002, indicative of the fact that no
material capital expenditures or acquisitions of operations have been undertaken during the current market
downturn. This lower level of investing activity is expected to continue in 2003.
COMPARISON OF
CONSOLIDATED STATEMENTS OF CASHFLOWS
Years Ended
June 28, June 29, June 30,
2002 2001 2000
(Thousands)
Cash Flow Provided from (Used for):
Operating Activities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $976,305 $186,200 $(494,382)
Net Change in Working Capital ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 824,794 (150,086) (743,642)
Financing Activities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (809,368) 452,626 1,065,269
Investing Activities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (117,841) (760,837) (810,490)
Net EÅects on Cash from:
Exchange RatesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 12,859 (7,468) (995)
Discontinued Operations ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì (25,073) (11,082)
Over the past three years, cash generated from continuing operations before depreciation, amortization,
deferred taxes and other non-cash items (including provisions for doubtful accounts and non-cash portions of
special charges recorded during those years) totaled $737.0 million. During that period, $68.9 million was used
for working capital (excluding cash and cash equivalents), resulting in net cash Öow from operations of
$668.1 million. In addition, $305.2 million, net, was needed for other normal business operations including
purchases of property, plant and equipment ($301.7 million) and payment of dividends ($72.1 million), oÅset
in part by net cash generated from other items ($68.6 million). This resulted in $362.9 million, net, being
generated by normal business operations. During the same three year period, the Company also used
$1.424 billion, net, for acquisitions of operations in excess of cash acquired and cash received from dispositions
($1.388 billion) and net cash used for discontinued operations ($36.2 million). This overall use of cash of
$1.061 billion was Ñnanced by a net increase in debt ($516.4 million), net proceeds from the asset
securitization program ($200.0 million) and utilization of available cash ($344.3 million).
In 2002, cash Öow from operating activities totaled $976.3 million. During this period, $151.5 million was
generated from continuing operations before depreciation, amortization, deferred taxes and other non-cash
items (principally provisions for doubtful accounts and the non-cash portion of special charges) and
$824.8 million was generated by reductions in working capital (excluding cash and cash equivalents). In
addition, the Company used $73.2 million for normal business operations including dividend payments
($26.5 million), purchases of property plant and equipment ($83.8 million), oÅset in part by net cash
generated from other items ($37.1 million). Combined, the Company generated $903.1 million in net cash
and cash equivalents from normal business operations. The Company also used $34.1 million for acquisitions
of operations and investments during 2002. The combined net cash proceeds discussed above of $869.0 million
along with $394.3 million of cash generated from new long-term debt Ñnancing were used to repay
$150.0 million under the accounts receivable securitization program and to, net, repay debt balances of
$1.051 billion. Finally, cash and cash equivalents increased by $62.0 million for the year.
In 2001, the Company generated $336.3 million from income from continuing operations before
depreciation, amortization, deferred taxes, cash payments related to the acquisition of Kent (included in cash
used for acquisitions in the consolidated statement of cash Öows) and other non-cash items (including the
non-cash portion of special charges). This was oÅset by $150.1 million of cash used for working capital
27