Avnet 2014 Annual Report Download - page 32

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COMPARATIVE ANALYSIS — LIQUIDITY
______________________
The Company’s quick assets (consisting of cash and cash equivalents and receivables) increased 4.6% from June 29, 2013 to
June 28, 2014
primarily due to an increase in receivables as a result of the corresponding year-over-
year increase in sales, partially offset by a decrease in cash
and cash equivalents. These factors, when combined with an increase in inventories and prepaid and other current assets, led to an increase in
current assets of 7.1% . Current liabilities increased 3.3% primarily due to an increase in accounts payable, short-
term debt, and accrued
expenses and other. As a result of the factors noted above, total working capital increased by 12.4% during fiscal 2014
. Total debt increased by
1.6% , primarily due to the increase in borrowings under bank credit facilities, total capital increased 10.0%
and the debt to total capital ratio
decreased to 29.8% .
Long
-Term Contractual Obligations
The Company has the following contractual obligations outstanding as of June 28, 2014 (in millions):
______________________
At June 28, 2014 , the Company had an estimated liability for income tax contingencies of $128.2 million
, which is not included in the
above table. Cash payments associated with the settlement of these liabilities that are expected to be paid within the next 12 months is
$7.8
million
. The settlement period for the remaining amount of the unrecognized tax benefits, including related accrued interest and penalties,
cannot be determined and therefore was not included in the table. The Company does not currently have any material long-
term commitments
for purchases of inventories from suppliers or for capital expenditures.
30
Years Ended
June 28,
2014
June 29,
2013
Percentage
Change
(Dollars in millions)
Current Assets
$
8,954.2
$
8,356.9
7.1
%
Quick Assets
6,149.5
5,878.3
4.6
Current Liabilities
4,978.8
4,821.4
3.3
Working Capital
(1)
3,975.4
3,535.4
12.4
Total Debt
2,078.9
2,045.2
1.6
Total Capital (total debt plus total shareholders’ equity)
6,969.1
6,334.3
10.0
Quick Ratio
1.2:1
1.2:1
Working Capital Ratio
1.8:1
1.7:1
Debt to Total Capital
29.8
%
32.3
%
(1)
This calculation of working capital is defined as current assets less current liabilities.
Total
Due in Less
Than 1 Year
Due in
1-3 Years
Due in
4-5 Years
Due After
5 Years
Long-term debt, including amounts due
within one year
(1)
$
2,080.9
$
865.1
$
565.8
$
—
$
650.0
Interest expense on long-term notes
(2)
$
304.5
$
79.7
$
96.5
$
69.4
$
58.9
Operating leases
$
377.5
$
91.3
$
125.0
$
69.2
$
92.0
(1) Excludes discount on long-
term notes.
(2) Represents interest expense due on long-
term notes with fixed interest rates and variable debt assuming the same interest rate as of the end
of fiscal 2014.