Avnet 2012 Annual Report Download - page 31

Table of Contents
Other financing activities, net, in fiscal 2012, 2011 and 2010 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 2012, the Company used $313.2 million of cash for acquisitions, net of cash acquired, and $128.7 million for capital
expenditures primarily related to system development costs and computer hardware and software purchases.
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.
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 June 30, 2012, refer to Note 7 to the consolidated financial statements appearing in Item 15 of this Report.
The following table summarizes the Company’
s capital structure as of the end of fiscal 2012 with a comparison with the end of fiscal
2011:
Financing Transactions
During fiscal 2012, the Company entered into a five-
year $1.0 billion senior unsecured revolving credit facility (the "2012 Credit Facility")
with a syndicate of banks, which expires in November 2016. In connection with the 2012 Credit Facility, the Company terminated its existing
unsecured $500.0 million credit facility (the "2008 Credit Facility") which was to expire in September 2012. Under the 2012 Credit Facility, the
Company may elect from various interest rate options, currencies and maturities. As of the end of fiscal 2012, there were $110.1 million in
borrowings outstanding under the 2012 Credit Facility included in “long-term debt”
in the consolidated financial statements. In addition, there
were $17.2 million in letters of credit issued under the 2012 Credit Facility, which represents a utilization of the 2012 Credit Facility capacity but
are not recorded in the consolidated balance sheet as the letters of credit are not debt. As of July 2, 2011, there were $122.1 million in
borrowings outstanding included in “long-term debt”
in the consolidated financial statements and $16.6 million in letters of credit issued under
the 2008 Credit Facility.
30
June 30,
2012
% of Total
Capitalization
July 2,
2011
% of Total
Capitalization
(Dollars in thousands)
Short-term debt
$
872,404
14.4%
$
243,079
4.4%
Long-term debt
1,271,985
21.0
1,273,509
22.8
Total debt
2,144,389
35.4
1,516,588
27.2
Shareholders’ equity
3,905,732
64.6
4,056,070
72.8
Total capitalization
$
6,050,121
100.0
$
5,572,658
100.0