Avnet 2015 Annual Report Download - page 24

TableofContents
Management believes that providing this additional information is useful to the reader to better assess and understand
operating performance, especially when comparing results with prior periods or forecasting performance for future periods,
primarilybecausemanagementtypicallymonitorsthebusinessbothincludingandexcludingtheseadjustmentstoGAAPresults.
Managementalsousesthesenon-GAAPmeasurestoestablishoperationalgoalsand,inmanycases,formeasuringperformance
forcompensationpurposes.However,anyanalysisofresultsonanon-GAAPbasisshouldbeusedasacomplement to,andin
conjunctionwith,resultspresentedinaccordancewithGAAP.
Results of Operations
Executive Summary
Sales for fiscal 2016 were $26.22 billion, a decrease of 6.1% from fiscal 2015 sales of $27.92 billion. Organic sales in
constant currency decreased 5.3% year over year. EM sales of $16.57 billion decreased 4.5% and organic sales in constant
currency decreased 3.7% year over year. TS sales of $9.65 billion decreased 8.8% and organic sales in constant currency
decreased7.9%yearoveryear.
Gross profit margin of 11.6% increased 16 basis points from fiscal 2015 primarily as a result of gross profit margin
improvementsatTSacrossallregions,partiallyoffsetbydeclinesatEM.
Operating income margin was 3.0% in fiscal 2016 and in fiscal 2015. Excluding restructuring, integration and other
expenses and amortization expense associated with acquired intangible assets from both periods, adjusted operating income
marginwas3.4%infiscal2016ascomparedto3.5%infiscal2015.EMoperatingincomemarginof4.4%decreased 22basis
pointsyearoveryearprimarilyduetodeclinesintheAmericasregion.TSoperatingincomemarginof3.3%increased21basis
pointsyearoveryearprimarilyduetoimprovementsinEMEA.
Three-Year Analysis of Sales: By Region in Each Operating Group and Geography



                   
Years Ended Percent Change 
 July 2, % of June 27, % of June 28, % of 2016 to 2015 to 
2016 Total2015 Total2014 Total2015 2014 
(Dollars in millions)
Sales by Region in Each Operating Group:                    
EMAmericas $ 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  6,810.2  26.0  7,418.0  26.6  6,604.6  24.0 (8.2)12.3 
TotalEM  16,566.8  63.2  17,344.7  62.1  16,544.4  60.1 (4.5)4.8 
            
TSAmericas  5,758.3  21.9  6,221.9  22.3  6,084.6  22.1 (7.5)2.3 
TSEMEA  2,719.7  10.4  2,871.6  10.3  3,151.2  11.5 (5.3)(8.9)
TSAsia  1,174.5  4.5  1,486.5  5.3  1,719.5  6.3 (21.0)(13.6)
TotalTS  9,652.5  36.8  10,580.0  37.9  10,955.3  39.9 (8.8)(3.4)
TotalAvnet $26,219.3   $27,924.7   $27,499.7   (6.1)1.5 
Sales by Geographic Area:             
Americas $10,423.6  39.8 %$11,144.0  39.9 %$10,929.5  39.7 % (6.5)% 2.0 %
EMEA  7,811.0  29.8  7,876.2  28.2  8,246.1  30.0 (0.8)(4.5)
Asia/Pacific  7,984.7  30.4  8,904.5  31.9  8,324.1  30.3 (10.3)7.0 
TotalAvnet $26,219.3   $27,924.7   $27,499.7    

23
