Avnet 2014 Annual Report Download - page 5

PART I
Item 1. Business
Avnet, Inc., incorporated in New York in 1955, together with its consolidated subsidiaries (the “Company” or “Avnet”), is a global value-
added distributor of electronic components, enterprise computer and storage products, IT solutions and services and embedded subsystems.
Avnet creates a vital link in the technology supply chain that connects the world’
s leading electronic component and computer product
manufacturers and software developers with a global customer base of original equipment manufacturers (“OEMs”),
electronic manufacturing
services (“EMS”) providers, original design manufacturers (“ODMs”),
systems integrators ("SIs"), independent software vendors ("ISVs") and
value-added resellers (“VARs”).
Avnet distributes electronic components, computer products and software, as received from its suppliers or
through a customized solution, and offers assembly and other value-
added services. In addition, Avnet provides engineering design, materials
management and logistics services, system integration and configuration and supply chain services customized to meet specific requirements of
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 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 ("business units") 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 business unit 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 by region are as follows:
A description of each operating group is presented below. Further financial information by operating group and region is provided in Note
16 to the consolidated financial statements appearing in Item 15 of this Report.
Electronics Marketing
EM markets and sells semiconductors, interconnect, passive and electromechanical devices (“IP&E”)
and embedded products for the
world’
s leading electronic component manufacturers. With a global reach that extends to more than 70 countries, EM's products and services
cater to a diverse customer base serving many end-
markets including automotive, communications, computer hardware and peripherals,
industrial and manufacturing, medical equipment, and defense 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, customers and suppliers can accelerate their time to market and realize cost efficiencies in both the design and manufacturing process.
3
Region Fiscal 2014 Sales
Percentage of
Sales
(Billions)
EM Americas
$
4.8
17.6
%
EM EMEA
5.1
18.5
EM Asia
6.6
24.0
Total EM
16.5
60.1
TS Americas
6.1
22.1
TS EMEA
3.2
11.5
TS Asia
1.7
6.3
Total TS
11.0
39.9
Total Avnet
$
27.5
100.0
%