Avnet 2014 Annual Report Download - page 29

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Liquidity and Capital Resources
Cash Flows
Cash Flows from Operating Activities
The Company generated $237.4 million of cash from its operating activities in fiscal 2014 as compared to a cash generation of
$696.2
million in fiscal 2013 . These operating cash flows are comprised of: (i) cash flows generated from net income, adjusted for the impact of non-
cash and other items, which includes depreciation and amortization expenses, deferred income taxes, stock-
based compensation expense and
other non-
cash items (primarily, provisions for doubtful accounts and periodic pension costs) and (ii) cash flows used for, or generated from,
working capital and other, excluding cash and cash equivalents. Cash used for working capital and other was $564.3 million during fiscal 2014
,
including increases in receivables of $306.9 million , inventories of $226.1 million , and a decrease in accrued expenses and other of
$80.0
million , partially offset by an increase in accounts payable of $48.7 million
. Receivables and inventories days on hand has not changed
significantly from the end of fiscal 2013.
During fiscal 2013 , the Company generated $696.2 million of cash from operating activities as compared with $528.7 million
in fiscal
2012 . Cash generated by working capital and other was $47.5 million during fiscal 2013 , resulting from a decrease in inventories of
$225.7
million , partially offset by a decrease in accounts payable and accrued expenses and other of $78.8 million and $5.2 million
, respectively, and
an increase in receivables of $94.2 million
. During fiscal 2013, net days outstanding and receivables days on hand did not change significantly
from the end of fiscal 2012.
Cash Flows from Financing Activities
During fiscal 2014
, the Company repaid upon maturity the $300.0 million of 5.875% Notes due in March 2014. The Company received
proceeds of $38.8 million and $255.0 million
from net borrowings of bank and other debt, and the accounts receivable securitization program,
respectively. In addition, during fiscal 2014 , the Company used $82.8 million and $8.6 million
of cash to pay quarterly cash dividends on
common stock and to repurchase common stock under the Company's share repurchase program.
During fiscal 2013 , the Company repaid $490.9 million
under the accounts receivable securitization program and its revolving credit
facility. The Company also received net proceeds of $349.3 million from the issuance of $350 million of 4.875% Notes due December 1, 2022.
In addition, during fiscal 2013, the Company used $207.2 million
of cash to repurchase common stock under the Company's share repurchase
program.
During fiscal 2012 , the Company received proceeds of $595.8 million
, primarily from borrowings under the accounts receivable
securitization program and bank credit facilities. In addition, the Company used $318.3 million
of cash to repurchase common stock under the
Company's share repurchase program.
Other financing activities, net, during fiscal 2014 , 2013 and 2012
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 2014 , the Company used $116.9 million of cash for acquisitions, net of cash acquired, and $123.2 million
for capital
expenditures primarily related to information system development costs and computer hardware and software purchases.
During fiscal 2013 , the Company used $262.3 million of cash for acquisitions, net of cash acquired, and $97.4 million
for capital
expenditures primarily related to information system development costs and computer hardware and software purchases.
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 information system development costs and computer hardware and software expenditures.
Capital Structure
The Company uses a variety of financing arrangements, both short-term and long-
term, to fund its operations in addition to cash generated
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 28, 2014 , refer to Note 7 to the consolidated financial statements appearing in Item 15 of this Report.
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