Avnet 2011 Annual Report Download - page 6

Table of Contents
PART I
Avnet, Inc., incorporated in New York in 1955, together with its consolidated subsidiaries (the “Company” or “Avnet”),
is one of
the world’
s largest industrial distributors, based on sales, of electronic components, enterprise computer and storage products and
embedded subsystems. Avnet creates a vital link in the technology supply chain that connects more than 300 of the world’
s leading
electronic component and computer product manufacturers and software developers with a global customer base of more than 100,000
original equipment manufacturers (“OEMs”), electronic manufacturing services (“EMS”)
providers, original design manufacturers
(“ODMs”), and value-added resellers (“VARs”).
Avnet distributes electronic components, computer products and software as received
from its suppliers or with assembly or other value added by Avnet. Additionally, Avnet provides engineering design, materials
management and logistics services, system integration and configuration, and supply chain services that can be customized to meet the
requirements of both customers and suppliers.
Organizational Structure
Avnet has two primary operating groups — Electronics Marketing (“EM”) and Technology Solutions (“TS”).
Both operating
groups have operations in each of the three major economic regions of the world: the Americas; Europe, the Middle East and Africa
(“EMEA”); and Asia/Pacific, consisting of Asia, Australia and New Zealand (“Asia” or “Asia/Pac”).
Each operating group has its own
management team led by a group president and includes regional presidents and senior executives within the operating group who
manage the various functions within the businesses. Each operating group also has distinct financial reporting that is evaluated at the
corporate level on which operating decisions and strategic planning for the Company as a whole are made. Divisions exist within each
operating group that serve primarily as sales and marketing units to further streamline the sales and marketing efforts within each
operating group and enhance each operating group’
s ability to work with its customers and suppliers, generally along more specific
product lines or geographies. However, each division relies heavily on the support services provided by the operating group as well as
centralized support at the corporate level.
Avnet’s operating groups and their sales are as follows:
A description of each operating group and its businesses is presented below. Further financial information by operating group
and geography is provided in Note 16 to the consolidated financial statements appearing in Item 15 of this Report.
Electronics Marketing
EM markets and sells semiconductors and interconnect, passive and electromechanical devices (“IP&E”)
and embedded products
for more than 300 of the world’
s leading electronic component manufacturers. EM markets and sells its products and services to a
diverse customer base serving many end-
markets including automotive, communications, computer hardware and peripheral,
industrial and manufacturing, medical equipment, military and aerospace. EM also offers an array of value-
added services that help
customers evaluate, design-
in and procure electronic components throughout the lifecycle of their technology products and systems.
By working with EM from the design phase through new product introduction and throughout the product lifecycle, customers and
suppliers can accelerate their time to market and realize cost efficiencies in both the design and manufacturing process.
3
Item 1.
Business
Fiscal 2011
Percentage
Region
Sales
of Sales
(Millions)
EM Americas
$
5,113.8
19.3
%
EM EMEA
4,816.3
18.1
EM Asia
5,136.1
19.4
Total EM
15,066.2
56.8
TS Americas
6,404.7
24.1
TS EMEA
3,577.1
13.5
TS Asia
1,486.4
5.6
Total TS
11,468.2
43.2
Total Avnet
$
26,534.4
100.0
%