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AVNET INC
FORM 10-K
(Annual Report)
Filed 08/12/16 for the Period Ending 07/02/16
Address 2211 SOUTH 47TH STREET
PHOENIX, AZ 85034
Telephone 4806432000
CIK 0000008858
Symbol AVT
SIC Code
5065 - Electronic Parts and Equipment, Not Elsewhere Classified
Industry Electronic Instr. & Controls
Sector Technology
Fiscal Year 06/28
http://www.edgar-online.com
© Copyright 2016, EDGAR Online, Inc. All Rights Reserved.
Distribution and use of this document restricted under EDGAR Online, Inc. Terms of Use.

Table of contents

  • Page 1
    ... (Annual Report) Filed 08/12/16 for the Period Ending 07/02/16 Address Telephone CIK Symbol SIC Code Industry Sector Fiscal Year 2211 SOUTH 47TH STREET PHOENIX, AZ 85034 4806432000 0000008858 AVT 5065 - Electronic Parts and Equipment, Not Elsewhere Classified Electronic Instr. & Controls Technology...

  • Page 2
    ... transition period from to Commission file number 1-4224 (Exact name of registrant as specified in its charter) New York (State or other jurisdiction of incorporation or organization) 2211 South 47th Street, Phoenix, Arizona (Address of principal executive offices) Avnet, Inc. 11-1890605...

  • Page 3
    ... 40 40 40 40 41 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Item 6. Selected Financial Data Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations Item...

  • Page 4
    ... and software, as received from its suppliers or through a customized solution, and offers assembly and other value-added services. Organizational Structure Avnet has two primary operating groups - Electronics Marketing ("EM") and Technology Solutions ("TS"). Both operating groups have...

  • Page 5
    ...time to market. The extensive product line card EM offers provides customers access to a diverse range of products from a complete spectrum of electronic component manufacturers. EM Supply Chain Solutions EM supply chain support and logistical services provide end-to-end solutions...

  • Page 6
    ...security, big data, aftermarket and IT lifecycle services, and multilingual vendor accredited training. In addition, TS provides the latest hard disk drives and microprocessor, motherboard and DRAM module technologies to personal computing integrators and VARs. Customer partners rely on TS' supplier...

  • Page 7
    ...years ended July 2, 2016, sales of services constituted less than 10% of the Company's total sales. A competitive advantage is the breadth of the Company's supplier product line card. Because of the number of Avnet's suppliers, many customers can simplify their procurement...

  • Page 8
    ... address and telephone number: Avnet, Inc. 2211 South 47 th Street Phoenix, Arizona 85034 (480) 643-2000 Attention: Corporate Secretary The Company also makes these filings available, free of charge, through its website (see "Avnet Website" below). Avnet Website In addition to the information...

  • Page 9
    ...higher financing costs. The Company experiences significant competitive pressure, which may negatively impact its results. The market for the Company's products and services is very competitive and subject to rapid technological advances, new market entrants, non-traditional competitors, changes...

  • Page 10
    ... locations represent a significant portion of its sales and, consequently, the Company is exposed to risks associated with operating internationally. During fiscal 2016, 2015 and 2014 approximately 64%, 64% and 65%, respectively, of the Company's sales came from its operations outside the United...

  • Page 11
    ... not limited to, the following potential restrictions on the Company's ability to repatriate funds from its foreign subsidiaries; foreign currency and interest rate fluctuations and the impact on the Company's results of operations; import and export duties and value-added taxes; compliance with...

  • Page 12
    ...to expanding into emerging markets and business areas, adding additional product lines and services, impacting existing customer and supplier relationships, incurring costs or liabilities associated with the companies acquired and diverting management's attention from existing...

  • Page 13
    ... the Company's inventory or unexpected order cancellations by the Company's customers could adversely affect its business, results of operations, financial condition and liquidity. The electronic components and computer products industries are subject to rapid technological change, new and enhanced...

  • Page 14
    ... financing may not be available on acceptable terms or at all. As of July 2, 2016, Avnet had total debt outstanding of approximately $2.49 billion under various notes, secured borrowings and committed and uncommitted lines of credit with financial institutions. The Company needs cash to make...

  • Page 15
    ... property matters could result in substantial costs and diversion of management and other resources and could have an adverse effect on the Company's operations. Further, the Company may be obligated to indemnify and defend its customers if the products or services the Company sells are alleged to...

  • Page 16
    ...may not be able to report its financial results accurately or timely, or prevent or detect fraud, which could have an adverse effect on the Company's business or the market price of the Company's securities. Effective internal controls over financial reporting are necessary for the Company...

  • Page 17
    ... table summarizes certain of the Company's key facilities: Location Groveport, Ohio Chandler, Arizona Tongeren, Belgium Poing, Germany Chandler, Arizona Nettetal, Germany Hong Kong, China Duluth, Georgia Phoenix, Arizona Tempe, Arizona Item 3. Legal Proceedings Square Footage 580...

  • Page 18
    ... then current compliance with certain covenants. Record Holders As of July 29, 2016, there were 2,336 registered holders of record of Avnet's common stock. Equity Compensation Plan Information as of July 2, 2016 Plan Category Equity compensation plans approved by security holders Number of...

  • Page 19
    ... International, Inc., Arrow Electronics, Inc., Ingram Micro, Inc., Insight Enterprises, Inc., Scansource, Inc., Synnex Corp. and Tech Data Corp. Avnet, Inc. S&P 500 Peer Group 7/2/2011 $ 100 100 100 6/30/2012 6/29/2013 6/28/2014 6/27/2015...

  • Page 20
    ... Purchases of Equity Securities In August 2015, the Company's Board of Directors amended the Company's existing share repurchase program to authorize the repurchase of up to $1.25 billion of common stock in the open market or through privately negotiated transactions. The timing and actual number...

  • Page 21
    Table of Contents Item 6. Selected Financial Data Income: Sales (a) Gross profit Operating income (b) Income tax expense (c) Net income (d) Financial Position: Working capital (e) Total assets Long-term debt Shareholders' equity Per Share: Basic earnings Diluted earnings Cash dividends ...

  • Page 22
    ... reflect the reclassification of deferred taxes to long term from current as a result of the adoption of a new accounting standard. Summary of quarterly results: 2016 (b) Sales Gross profit Net income Diluted earnings per share 2015 (c) Sales Gross profit Net income Diluted earnings per...

  • Page 23
    ...Contents Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations For an understanding of Avnet and the ...information appearing in Item 15 of this Report. The Company operates on a "52/53 week" fiscal year. Fiscal 2016 contained 53 weeks, fiscal 2015 and 2014...

  • Page 24
    ... Total 2014 Total 2015 2014 2016 Total (Dollars in millions) Sales by Region in Each Operating Group EM Americas $ 4,665.3 17.8 % $ 4,922.1 17.6 % $ 4,844.9 17.6 % (5.2)% 1.6 % EM EMEA 5,091.3 19.4 5,004.6 17.9 5,094.9 18.5 1.7 (1.8) EM Asia...

  • Page 25
    ... Annualized Acquired Business Sales (1) Group & Region Acquisition Date (Millions) Fiscal 2016 ExitCertified TS Americas $ 24 January 2016 95 November 2015 Orchestra Service GmbH TS EMEA 119 Total fiscal 2016 Fiscal 2014 MSC Investoren GmbH EM...

  • Page 26
    ... disruptions in customer delivery and service capabilities resulting from an ERP implementation in the fourth quarter of fiscal 2016. In EMEA, organic sales in constant currency increased 7.8% due to strong demand in the industrial markets served across the region. Asia sales decreased...

  • Page 27
    ... on an organic basis in constant currency primarily resulting from decreases in sales at both operating groups. Gross profit margin of 11.6% increased 16 basis points year over year primarily as a result of increases at TS due to product mix difference between years. Gross profit in fiscal 2015 was...

  • Page 28
    ... businesses to better align such operations, products and services with the known and anticipated demands of the Company's suppliers and customers. In addition, the Company incurred integration and other costs primarily associated with acquired businesses and certain global and regional...

  • Page 29
    ... of acquired intangible assets. Excluding these amounts from both years, adjusted operating income was $972.5 million, or 3.5% of sales, in fiscal 2015 representing a 4.4% increase as compared with $931.3 million, or 3.4% of sales, in fiscal 2014. EM operating...

  • Page 30
    ... in fiscal 2016 as compared with the amount released in fiscal 2015. Avnet's effective tax rate on income before income taxes was 19.8% in fiscal 2015 as compared with an effective tax rate of 22.2% in fiscal 2014. Included in the fiscal 2015 effective tax rate is a net tax benefit of...

  • Page 31
    ...the Company used $19.7 million of cash for acquisitions, net of cash acquired, and used $147.5 million for capital expenditures primarily related to information system development costs, computer hardware and software purchases and facilities costs. Additionally, the Company received proceeds of $14...

  • Page 32
    ... of Contents 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. Financing Transactions The Company...

  • Page 33
    ... extent the investments strengthen Avnet's competitive position and meet management's return on capital thresholds. See Note 2, "Acquisitions" to the Company's consolidated financial statements included in Item 15 of this Annual Report on Form 10-K for additional information related to a potential...

  • Page 34
    ... at the lower of cost (first in - first out) or estimated market value. The Company's inventories include high-technology components, embedded systems and computing technologies sold into rapidly changing, cyclical and competitive markets wherein such inventories may be subject to...

  • Page 35
    ... of the large number of products and suppliers and the complexity of managing the process around price protections and stock rotations, estimates are made regarding the realizable value of inventories. Additionally, assumptions about future demand, market conditions and decisions to...

  • Page 36
    ... the structure of the Company's reporting units change based upon changes in business strategy or structure, the Company may be required to perform an interim impairment test which may result in goodwill impairment expense. During fiscal 2016, 2015 and 2014, the Company performed its annual goodwill...

  • Page 37
    ...shipment or delivery of products or services to the customer depending upon the underlying sales terms. Accordingly, although management makes certain estimates related to possible returns of products from customers, sales discounts and customer rebates, such amounts do...

  • Page 38
    ...27, Fair Value at at July 2, 2016 2015 June 27, 2015 1,596.9 $ 1,203.9 $ 1,267.4 5.8 1,001.5 $ 779.0 $ 779.0 1.2 % (1) Excludes discounts and issuance costs. Fair value was estimated primarily based upon quoted market prices for the Company's public long...

  • Page 39
    ... quarter of fiscal 2016, the Company implemented an ERP system to support the EM Americas region. This implementation has resulted in changes to certain internal control over financial reporting. The Company performed pre- and post-implementation procedures as part of its assessment...

  • Page 40
    ... in conditions, or the degree of compliance with policies or procedures may deteriorate. Management conducted an evaluation of the effectiveness of the Company's internal control over financial reporting as of July 2, 2016. In making this assessment, management used the 2013...

  • Page 41
    ... relating to the Annual Meeting of Stockholders anticipated to be held on November 10, 2016. Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters The information called for by Item 12 is incorporated in this Report by reference to...

  • Page 42
    ... are filed as part of this Report 1. Consolidated Financial Statements: Report of Independent Registered Public Accounting Firm Avnet, Inc. and Subsidiaries Consolidated Financial Statements: Consolidated Balance Sheets at July 2, 2016 and June 27, 2015 Consolidated...

  • Page 43
    ...Clark /s/ JAMES A. LAWRENCE Director James A. Lawrence /s/ AVID MODJTABAI Director Avid Modjtabai /s/ RAY M. ROBINSON Director Ray M. Robinson /s/ KEVIN MORIARTY Senior Vice President, Chief Financial Officer (Principal Financial and Accounting Officer) Kevin Moriarty...

  • Page 44
    ... Avnet's internal control over financial reporting as of July 2, 2016 , based on the criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Avnet's management...

  • Page 45
    ... loss Treasury stock at cost, 27,314 shares and 31,901 shares, respectively Total shareholders' equity Total liabilities and shareholders' equity See notes to consolidated financial statements. 44 July 2, June 27, 2016 2015 (Thousands, except share amounts...

  • Page 46
    ... AVNET, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS Years Ended July 2, June 27, June 28, 2016 2015 2014 Thousands, except per share amounts) Sales $ 26,219,279 $ 27,924,657 $ 27,499,654 Cost of sales 23,181,768 24,731,537 24,273,923 Gross profit...

  • Page 47
    ...Net income Other comprehensive (loss) income, net of tax: Foreign currency translation adjustments and other Pension adjustments, net Total comprehensive income (loss) Years Ended July 2, June 27, June 28, 2016 2015 2014 (Thousands) $ 506,531 $ 571,913 $ 545,604...

  • Page 48
    Table of Contents AVNET, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY Years Ended July 2, 2016, June 27, 2015 and June 28, 2014 Accumulated Additional Other Total Common Paid-In Retained Comprehensive Treasury Shareholders' Stock Capital Earnings ...

  • Page 49
    ...AVNET, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS Years Ended July 2, June 27, June 28, 2016 2015 2014... investing activities Purchases of property, plant and equipment (147,548) (174,374) (123,242) Acquisitions of businesses, net of cash acquired (Note ...

  • Page 50
    ... fiscal 2016, 2015 and 2014 the Company did not have any material investments in any ventures. Depreciation, amortization and useful lives - The Company reports property, plant and equipment at cost, less accumulated depreciation. Cost includes the price paid to acquire or...

  • Page 51
    ... Contents AVNET, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) software obtained or developed for internal use. Software obtained for internal use has generally been enterprise-level business operations, logistics and finance software that is customized to...

  • Page 52
    Table of Contents AVNET, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Significant management judgment is required when estimating the fair value of the Company's reporting units from a market participant perspective including the forecasting of ...

  • Page 53
    ... the sales terms. A majority of the Company's product sales come from products Avnet purchases from a supplier and holds in inventory. A portion of the Company's sales of products are shipped directly from its suppliers to its customers ("drop-ship"). In such drop-ship arrangements, Avnet negotiates...

  • Page 54
    ... former owner as part of the purchase price if specified future events occur or conditions are met, is accounted for at the acquisition date fair value either as a liability or as equity depending on the terms of the acquisition agreement. Concentration of credit risk - Financial instruments that...

  • Page 55
    ... had been completed at the acquisition date. The Company early adopted this update in the first quarter of fiscal 2016, with no impact to its consolidated financial statements. In November 2015, the FASB issued Accounting Standards Update No. 2015-17, Income Taxes (Topic 740): Balance Sheet...

  • Page 56
    ... no material measurement period adjustments for such acquisitions. Historical Acquisitions The Company had no acquisitions in fiscal 2015. During fiscal 2014 , the Company acquired three businesses with historical annualized sales of approximately $492.0 million (unaudited). Cash...

  • Page 57
    Table of Contents AVNET, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) The following table presents the purchase price allocation for fiscal 2014 acquisitions: Cash Receivables Inventories Other current assets Property, plant and equipment and other non-...

  • Page 58
    ...purposes and monitors the financial stability and credit standing of its counterparties. The Company's foreign currency exposure relates primarily to international transactions where the currency collected from customers can be different from the currency used to purchase from suppliers. The Company...

  • Page 59
    ... in the open market or through privately negotiated transactions. The timing and actual number of shares repurchased will depend on a variety of factors such as share price, corporate and regulatory requirements, and prevailing market conditions. During fiscal 2016, the...

  • Page 60
    ... of fiscal 2016, 2015 and 2014, there was no impairment of goodwill in the respective fiscal years. The goodwill impairment testing requirements and related assumptions used are described further in Note 1. 59 Electronics Technology Total Marketing Solutions...

  • Page 61
    ... AVNET, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) The following table presents the Company's acquired identifiable intangible assets: Customer related Trade name Other July 2, 2016 June 27, 2015...

  • Page 62
    Table of Contents AVNET, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Long-term debt consists of the following: Revolving credit facilities: Accounts receivable securitization program Credit Facility Notes due: September 2016 June 2020 December 2022 ...

  • Page 63
    Table of Contents AVNET, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) June 27, 2015. Interest on borrowings is calculated using a base rate or a commercial paper rate plus a spread of 0.38%. The facility fee is 0.38%. Aggregate debt ...

  • Page 64
    ... $532.3 million and $465.7 million in fiscal 2016, 2015 and 2014, respectively. Reconciliations of the federal statutory tax rate to the effective tax rates are as follows: Years Ended June 27, 2015 June 28, 2014 July 2, 2016 U.S. federal statutory rate 35.0 % 35.0 % 35...

  • Page 65
    Table of Contents AVNET, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) effective tax rate primarily due to a lesser tax benefit from the valuation allowance released in fiscal 2016 as compared with the amount released in fiscal 2015. The Company applies the ...

  • Page 66
    Table of Contents AVNET, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) The change in valuation allowances in fiscal 2016 from fiscal 2015 was primarily due to (i) a net reduction of $7.9 million due to the release of valuation allowances, (ii) a $4.1 million ...

  • Page 67
    ... States (Federal and state) Taiwan Hong Kong and Germany Netherlands and Singapore Belgium United Kingdom 10. Pension and retirement plans Fiscal Year 2012 - 2016 2011 - 2016 2010 - 2016 2008 - 2016 2014 - 2016 2009 - 2016 Pension Plan The Company's noncontributory defined...

  • Page 68
    ...of Contents AVNET, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) The following table outlines changes in benefit obligations, plan assets and the funded status of the Plan as of the end of fiscal 2016 and 2015: July 2, June 27, 2016 2015 Thousands...

  • Page 69
    ... debt securities 40 % 23 % Cash and cash equivalents - % 1 % The general investment objectives of the Plan are to maximize returns through a diversified investment portfolio in order to earn annualized returns that meet the long-term cost of funding the Plan's pension obligations...

  • Page 70
    ... international investments covering multiple industries. The Plan's assets do not include any material investments in Avnet common stock. The Plan's investments in debt securities are also diversified across both public and private fixed income securities with varying maturities. As of July 2, 2016...

  • Page 71
    Table of Contents 11. Operating leases AVNET, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) The Company leases many of its operating facilities and is also committed under lease agreements for transportation and operating equipment. Rent expense charged to ...

  • Page 72
    ..., and require an exercise price of 100% of the fair market value of common stock at the date of grant. Stock-based compensation expense associated with stock options during fiscal 2016, 2015 and 2014 was $4.2 million, $3.6 million and $4.7 million, respectively . The fair value of...

  • Page 73
    ..., $50.5 million and $34.4 million for fiscal years 2016, 2015 and 2014, respectively. The following is a summary of the changes in non-vested restricted stock units during fiscal 2016: Weighted Average Grant-Date Shares Fair Value Non-vested restricted stock...

  • Page 74
    Table of Contents AVNET, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Performance share units Certain eligible employees, including Avnet's executive officers, may receive a portion of their long-term stock-based compensation through the performance...

  • Page 75
    ... with the acquisition of Bell Microproducts Inc. During the fourth quarter of fiscal 2016, the Company held settlement discussions with CBP and submitted an $8.5 million offer-in-compromise ("OIC") to CBP in order to resolve this long-standing compliance investigation. During fiscal 2014, the...

  • Page 76
    ... years were as follows: Interest Income taxes July 2, 2016 $ 119,941 $ 92,993 June 27, June 28, 2015 2014 (Thousands) $ 113,476 $ 111,608 $ 125,403 $ 181,117 The Company includes book overdrafts as part of accounts payable on its consolidated balance...

  • Page 77
    ... 16. Segment information Electronics Marketing ("EM") and Technology Solutions ("TS") are the Company's two reportable segments ("operating groups"). EM markets and sells semiconductors and interconnect, passive and electromechanical devices and embedded products to a diverse customer base serving...

  • Page 78
    ... sales in Germany and the United Kingdom of $3.31 billion and $1.36 billion, respectively, for fiscal 2014. (3) Includes sales of $2.86 billion, $2.70 billion and $1.13 billion in Taiwan, China (including Hong Kong) and Singapore, respectively, for fiscal 2016. Includes sales...

  • Page 79
    ..., or planned reduction, of over 7 00 employees, primarily in operations, sales and business support functions, in connection with cost reduction actions taken in both operating groups including the impact of a voluntary retirement program in the United States. Facility exit costs...

  • Page 80
    ... Contents AVNET, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) part of the consolidation, relocation and closure of warehouse and office facilities. Integration costs include certain consulting costs for significant new information technology...

  • Page 81
    ... to EM, $31.9 million related to TS and $0.8 million related to Corporate business support functions. As of July 2, 2016, management expects the majority of the remaining severance, facility exit and other liabilities to be utilized by the first half of fiscal 2017. Fiscal 2014...

  • Page 82
    ... of Contents SCHEDULE II AVNET, INC. AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS Years Ended July 2, 2016, June 27, 2015 and June 28, 2014 Account Description Fiscal 2016 Allowance for doubtful accounts Valuation allowance on tax loss carryforwards Fiscal 2015 Allowance for doubtful...

  • Page 83
    ....2). Form of Change of Control Agreement between the Company and Richard Hamada, Michael Buseman, Gerry Fay, Erin Lewin, MaryAnn Miller, Kevin Moriarty, Steve Phillips and Patrick Zammit (incorporated herein by reference to the Company's Current Report on Form 8-K dated February 14, 2011, Exhibit 10...

  • Page 84
    ...to the Company's Current Report on Form 8-K dated August 13, 2010, Exhibit 10.5). Avnet, Inc. 2006 Stock Compensation Plan: (a) Form of nonqualified stock option agreement (b) Form of nonqualified stock option agreement for non-employee director (c) Form of performance stock unit term sheet (revised...

  • Page 85
    ... the Company's Annual Report on Form 10-K for the fiscal year ended June 27, 2015, Exhibit 10.21(j)). (k) Second Amended and Restated Receivables Purchase Agreement dated as of August 26, 2010 among Avnet Receivables Corporation, as Seller, Avnet, Inc., as Servicer, the Financial Institutions party...

  • Page 86
    ... Amended and Restated Receivables Purchase Agreement (incorporated herein by reference to the Company's Quarterly Report on Form 10-Q for the period ended April 2, 2016, Exhibit 10.1). Credit Agreement dated as of July 9, 2014, among Avnet, Inc., each other subsidiary of the Company party thereto...

  • Page 87
    Avnet, Inc. Computation of Ratios of Earnings to Fixed Charges Fiscal Years Ended July 2 June 27, June 28, June 29, 2016 2015 2014 2013 in ...Exhibit 12.1 Earnings: Income from continuing Operations before tax Add fixed charges Total Earnings Fixed charges: Interest on...

  • Page 88
    ... GmbH Avnet EMG France Jurisdiction United Kingdom United Kingdom United Kingdom United Kingdom Hong Kong Australia United Kingdom New Zealand China China Hong Kong Switzerland Singapore Israel Netherlands Chile Brazil Israel Hong Kong Hong Kong Macao Croatia Serbia Mexico Puerto Rico Delaware...

  • Page 89
    ... South Africa United Kingdom United Kingdom Delaware Spain India Canada Delaware Virgin Islands, British Singapore Hong Kong Malaysia Singapore Thailand Japan Korea, Republic of Ireland Belgium Brazil Germany United Kingdom Germany Germany Malaysia Denmark Sweden Norway Finland Malaysia Mexico...

  • Page 90
    ...GmbH Nettetal Czech Republic Singapore Malaysia South Africa Poland Hong Kong Thailand Taiwan Hong Kong Singapore Australia China India Malaysia Singapore Thailand China Vietnam Argentina Netherlands Brazil Chile Colombia Ecuador Germany Austria Hungary United Kingdom Romania Slovakia Turkey France...

  • Page 91
    ...Limited Memec Holdings Limited Hong Kong Germany Denmark Serbia Bulgaria Germany Germany Hungary Hong Kong Russian Federation Estonia Italy Romania Slovakia France Poland Spain Czech Republic Turkey Ukraine Slovenia Portugal Germany Austria South Africa United Kingdom Mexico Germany Canada Delaware...

  • Page 92
    ... Ltd YEL Electronics Sdn Bhd ZWEITE TENVA Property GmbH Im Technologiepark Australia California Netherlands Malta Germany Germany Germany Netherlands Virgin Islands, British Indonesia Hong Kong Hong Kong New Hampshire China France Mexico Hong Kong China Hong Kong United Kingdom Delaware Belgium...

  • Page 93
    ... period ended July 2, 201 6 , the related financial statement schedule, and the effectiveness of internal control over financial reporting as of July 2, 201 6 , which report appears in the July 2, 201 6 , annual report on Form 10-K of Avnet, Inc. /s/ KPMG LLP Phoenix, Arizona August 12 , 201 6

  • Page 94
    ... material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: August 12, 2016 /s/ WILLIAM J. AMELIO William J. Amelio Interim Chief Executive Officer The registrant's other certifying...

  • Page 95
    ... financial information; and any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: August 12, 2016 /s/ KEVIN MORIARTY Kevin Moriarty Chief Financial Officer

  • Page 96
    ..., of the Securities Exchange Act of 1934; and The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. Date: August 12, 2016 /s/ WILLIAM J. AMELIO William J. Amelio Interim Chief Executive Officer 2.

  • Page 97
    ..., of the Securities Exchange Act of 1934; and The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. Date: August 12 , 201 6 /s/ KEVIN MORIARTY Kevin Moriarty Chief Financial Officer